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04-28-2020 Council Packet
CITY OF OAK PARK HEIGHTS TUESDAY, APRIL 28, 2020 CITY COUNCIL MEETING AGENDA 6:00 PM This meeting will be conducted by video/telephone conference due to the ongoing COVID-19 health pandemic. The meeting will follow the provisions of Minnesota Statute § 13D.021. If practical, members of the public may be permitted to remotely listen to the meeting as provided in 13D.021, Subd. 3, subject to such person paying for any added cost incurred by the City as a result of the additional connection. The open meeting can be viewed remotely online at https://us02web.zoom.us/i/82848531300 or by calling (312- 626-6799) and entering meeting ID 82848531300#. There is no participant ID needed. Please contact the City at 651-439-4439 or jpinski@cityofoakparkheights.com in advance of April 28, 2020 if you have any questions about access. 6:00 p.m. I. Call to Order/Pledge of Allegiance/Approval of Agenda Estimated times 6:00 p.m. II. Council/Staff Reports A. Mayor McComber B. Councilmember Dougherty C. Councilmember Johnson D. Councilmember Liljegren E. Councilmember Runk F. Staff • Recycling Award (pg. 3) 6:05 p.m. III. Public Comment This is an opportunity for the public to address the Council with questions or concerns on issues not part of the regular agenda (Please limit comments to 3 minutes in length). 6:10 p.m. IV. Consent Agenda (Roll Call Vote) A. Approve Bills & Investments B. Approve City Council Minutes — March 24, 2020 (pg. 7) C. Approve Acceptance of the 2019 City Annual Financial Statement and Related Reports (pg. 11) D. Designate the Finance Director as the "Business Administrator" for electronic fund transfers (pg. 181) E. Approve LMCIT Waiver of Statutory Tort Limits — Liability Coverage (pg. 183) F. Approve Renewal of Consumption and Display Permit for St. Croix Yacht Club (pg. 187) 6:10 p.m. V. Public Hearings 6:10 p.m. VI. Old Business 6:10 p.m. VII. New Business A. Menards — Extension Request Amended Conditional Use Permit — Yard Entrance Please mute or silence any cell phones, computers or other devices during meeting — Thank You. Page 1 of 284 Agenda April 28, 2020 Page 2 (pg. 189) B. Zephyr Group LLP (Pony Express Car Wash) 5970 Neal Ave Site Guidelines and Site Plan Review (pg. 195 ) C. Approve Letter of Support for the Center for Energy and Environment (CEE) to Just Transition Fund (JTF) (pg. 245) D. Manning & STH 36 SOUTH Frontage Road (pg. 247) E. Consider Resolution Outlining Possible City COVID-19 Responses to Aid: Convention and Visitors' Bureau and Temp. Suspension of Banner Regulations & Actions Related to Liquor Licensing (pg. 249) F. Rate Increase Request — Tennis Sanitation (pg. 253) G. Consider Appointments to Xcel Energy Advisory Panel (pg. 257) H. 2020 Party in the Park (pg. 281) I. 2020 Goal Setting (pg. 283) 6:45 p.m. VIII. Other Council Items or Announcements 6:45 p.m. IX. Closed Session A. Discussion on Land Acquisition for Backage Road Project (closed pursuant to MN Stat. 13d.05, Subd. 3(c)(3)) 7:00 p.m. X. Adj ournment Page 2 of 284 Meeting Date Agenda Item Time Req. 0 Agenda Placement SO - Oak Park Heights Request for Council Action April 28, 2020 Award Staff Originating Department/Requestor Requester's Signature Action Requested Administration/Jennifer Pinski Receive Information Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). See attached. Page 3 of 284 City of Oak Park Heights 14168 Oak Park Blvd. N • Oak Park Heights, MN 55082 • Phone (651) 439-0439. Fax (651) 439-0574 March 27, 2020 Joseph Allenspach 5472 Stagecoach Trail N Oak Park Heights, MN 55082 Dear Mr. Allenspach: Thank you for participating in the City's recycling program. As an incentive to recycle and to increase fire prevention awareness, the City rewards two residents each month with their choice of an award of $25.00 or a fire extinguisher and/or smoke detector(s). Your residence was checked on Thursday, March 26, 2020, to determine if you had your recycling bin out with your regular garbage. Your recycling was out and ready for collection; therefore, you are one of this month's winners. Please contact me via phone at 439-4439 or email at jpinski@cityofoakparkheights.com to let me know your choice of award. On behalf of the Oak Park Heights City Council, thank you for participating in the City's recycling program. Congratula ' s! J ifer Pinski City Clerk TREE CITY U.S.A. Page 4 of 284 City of Oak Park Heights 14168 Oak Park Blvd. N . Oak Park Heights, MN 55082 • Phone (651) 439-4439 • Fax (651) 439-0574 April 9, 2020 Julie McPherson 14452 571h St N Oak Park Heights, MN 55082 Dear Ms. McPherson: Thank you for participating in the City's recycling program. As an incentive to recycle and to increase fire prevention awareness, the City rewards two residents each month with their choice of an award of $25.00 or a fire extinguisher and/or smoke detector(s). Your residence was checked on Thursday, April 9, 2020, to determine if you had your recycling bin out with your regular garbage. Your recycling was out and ready for collection; therefore, you are one of this month's winners. Please contact me via phone at 439-4439 or email at jpinsl<i@cityofoakparkheights.com to let me know your choice of award. On behalf of the Oak Park Heights City Council, thank you for participating in the City's recycling program. Congratulations! Jenn er Pinski City Clerk TREE CITY U.S.A. Page 5 of 284 THIS PAGE INTENTIONALLY LEFT BLANK Page 6 of 284 Meeting Date SO - Oak Park Heights Request for Council Action April 28, 2020 Agenda Item Approve City Council Meeting Minutes — March 24, 2020 Time Req. 0 Agenda Placement Consent Originating Department/Requestor Requester's Signature Action Requested Approve Administration/Jennifer Pinski Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). See attached. Page 7 of 284 CITY OF OAK PARK HEIGHTS TUESDAY, MARCH 24, 2020 CITY COUNCIL MEETING MINUTES HELD TELEPHONICALLY PER MN STAT. 13D.021 L Call to Order/Approval of Agenda: Mayor McComber called the meeting to order at 6:11 p.m. Present: Councilmembers Dougherty, Liljegren and Runk. Staff present: City Administrator Johnson, City Clerk Pinski, City Attorney Kevin Sandstrom, City Planner Richards and City Engineer Mann. Absent: None. Mayor McComber moved Consent Agenda Item M to New Business as Item B, and added New Business Item C: "Consider Resolution Outlining Possible City COVID-19 Responses to Aid Residents and Businesses" to the agenda. Councilmember Liljegren, seconded by Councilmember Johnson, moved to approve the Agenda. Roll call vote taken. Carried 5-0. II. Council/Staff Reports: A. Mayor McComber: She reported she attended an event with Valley Access with representatives from other cities and the Chamber outlining community responses to the pandemic, she testified regarding the energy renewable grant, attended the MN Mayor's Association meeting and the League of Minnesota Board of Directors Meeting via conference call, and participated in a webinar on COVID-19. B. Councilmember Dougherty: No report. C. Councilmember Johnson: She reported she attended the NLC Conference in Washington, D.C., and the Parks and Trails Commission meeting for March was cancelled. D. Councilmember Liljegren: He reported the Joint Airport Zoning Board meeting in March was cancelled and rescheduled for June 11 from 3:30 — 5:00 p.m. at the Baytown Community Center. E. Councilmember Runk: He reported the Middle St. Croix Watershed Organization made an appointment recommendation for the King Plant Advisory Panel at their last meeting. F. Staff: City Clerk Pinski reported that Kristina Gitner of 5335 O'Brien Avenue North was chosen as the recycling award winner. III. Visitors/Public Comment: None IV. Consent Agenda: Page 8 of 284 City Council Meeting Minutes March 24, 2020 Page 2 of 3 A. Approve Bills & Investments B. Approve City Council Minutes — February 25, 2020 C. Approve Proclamation for April 24, 2020 as Arbor Day and May 2020 as Arbor Month D. Approve Resolution Granting the Application of White Tails Unlimited Metro Area to Conduct a One -Day Raffle at Heights Hall & Club on September 12, 2020 E. Approve Consumption and Display Permit for LRS Enterprises, Inc. dba Sodie's Cigar and Pipe F. Approve Proclamation for May as Pony Pride Month G. Authorize Staff to Enter into Agreement with St. Croix Sweeping for City Sweeping Services through 2020 H. Authorize Staff to Extend Valdes Lawn Care and Snow Removal LLC Contract for Lawn Care Services I. Approve Beginning Hiring Process for Replacement Officer/Creation of List J. Approve Second Extension to the SRO Service Agreement with the ISD 9834 K. Approve Resolution Outlining Approval with Conditions — Related to Twin Cities Orthopedics — Design Guidelines/Site Plan Review, Conditional Use Permit and Vacation of Easement located at 5715 Memorial Ave L. Approve Resolution Outlining Approval with Conditions — Related to OPC Properties — Sign Replacement at 5991 Norwich Ave M. MOVED TO NEW BUSINESS AS ITEM Councilmember Runk, seconded by Councilmember Dougherty, moved to approve the Consent Agenda. Roll call vote taken. Carried 5-0. V. Public Hearings: None VI. Old Business: None VII. New Business: A. Reschedule Goal Setting and nd April 2020 Meetings: Councilmember Liljegren, seconded by Councilmember Johnson, moved to tentatively schedule the City Council goal setting meeting for April 28 at 5:00 p.m. Roll call vote taken. Carried 5-0. Councilmember Liljegren, seconded by Councilmember Dougherty, moved to cancel the first meeting in April. Roll call vote taken. Carried 5- 0. Page 9 of 284 City Council Meeting Minutes March 24, 2020 Page 3 of 3 B. Annrove Resolution Continuiniz Mavoral Declaration of Emerizencv 20 03-01 Related to Coronavirus — COVID-19: Councilmember Dougherty, seconded by Councilmember Johnson, moved approve the Resolution extending until such time as the City Council chooses to discontinue. Roll call vote taken. Carried 5-0. C. Consider Resolution Outlining Possible City COVID-19 Responses to Aid City Residents and Businesses: Councilmember Dougherty, seconded by Councilmember Liljegren, moved to adopt the Resolution as revised by staff. Roll call vote taken. Carried 5-0. VIII. Other Council Items or Announcements: The Mayor and Council thanked staff for their hard work during the pandemic. Mayor McComber reminded residents that there were two vacancies on the City's Planning Commission. IX. Adiourn: Councilmember Liljegren, seconded by Councilmember Runk, moved to adjourn at 6:35 p.m. Roll call vote taken. Carried 5-0. Respectfully submitted, Approved as to Content and Form, Jennifer Pinski City Clerk Mary McComber Mayor Page 10 of 284 01 - Oak Park Heights Request for Council Action Meeting Date Aril 28 2020 Time Required: 1 Minutes Agenda Item Title: Acceptance of the 2019 — City Annual Financial Statement Agenda Placement Consent Originating Department/Requestor Betty Caruso Finance Director Requester's Signature Action Requested Acceptance of the 2019 Financials and Related Re orts Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Mr. David Mol, Senior Partner with Redpath and Co. Ltd.(the City's Auditing firm) has submitted the City's 2019 Annual Financial Statements, the Internal Control Report, Legal Compliance Report and the Management Report. They are included electronically at this time with hard copies in the future. Page 11 of 284 IIIIIIIIIII IIVVI�VIVIVI�I�IIIVU�Iu�. ,,-� III " � IIIIIIIIIII � ANDICOMPANY April 23, 2020 To the Honorable Mayor and Members of the City Council City of Oak Park Heights We have completed the 2019 audit of the City of Oak Park Heights, Minnesota and have issued the following reports: ➢ Annual Financial Report ("audit report") ➢ Management Report ➢ Minnesota Legal Compliance Report ➢ Report on Internal Control over Financial Reporting Below is a brief summary of the reports that were issued Report Name Elements of Report Overview Annual Financial Report (AFR) • Financial statements • Unmodified (`clean") opinion on • Footnotes the Financial Statements • Required supplementary information • Statistical information Report on Internal Control and Results of testing • No findings of noncompliance on Compliance and Other • Internal controls over financial reporting • No internal control findings. Matters • Compliance with laws, regulations, contracts and rants State Legal Compliance Report • Results of testing certain provisions of Minnesota • No findings of noncompliance Statutes Audit Management Letter Intended to be a working tool for City Council • Comparisons and trend analysis • Outside factors influencing City financial reporting • Policies and procedures Thank you for the opportunity to serve the City. We are available to discuss this report with you. Sincerely, REDPATH AND COMPANY, LTD. David J. Mol, CPA DJM/aj f 55 5` Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com Page 12 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA ANNUAL FINANCIAL REPORT December 31, 2019 Page 13 of 284 - This page intentionally left blank - Page 14 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Reference No. INTRODUCTORY SECTION Elected and Appointed Officials 3 FINANCIAL SECTION Independent Auditor's Report 7 Management's Discussion and Analysis 11 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position Statement 1 25 Statement of Activities Statement 2 26 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 28 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Statement 4 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement 5 32 Statement of Net Position - Proprietary Funds Statement 6 33 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 36 Statement of Cash Flows - Proprietary Funds Statement 8 37 Notes to Financial Statements 37 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 66 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 10 70 Schedule of Pension Contributions - General Employees Retirement Fund Statement 11 71 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 12 72 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 13 73 Notes to RSI 74 Page 15 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Nonmajor Fund Financial Statements: Combining Balance Sheet - Nonmajor Governmental Funds Statement 14 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 15 81 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 16 82 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 17 83 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 18 84 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 19 85 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 20 86 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 21 88 STATISTICAL SECTION (UNAUDITED) Financial Trends Net Position by Component - Last Ten Fiscal Years Table 1 92 Changes in Net Position - Last Ten Fiscal Years Table 2 94 Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 98 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 4 100 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 102 Direct and Overlapping Property Tax Capacity Rates Table 6 104 Principal Property Taxpayers Table 7 105 Property Tax Levies and Collections Table 8 106 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 107 Direct and Overlapping Governmental Activities Debt Table 10 108 Legal Debt Margin Information Table 11 109 Pledged Revenue Coverage Table 12 110 Demographic and Economic: Demographic and Economic Statistics Table 13 111 Principal Employers Table 14 113 Operating Information: Full -Time Equivalent City Government Employees By Function/Program Table 15 114 Operating Indicators by Function/Program Table 16 116 Capital Asset Statistics by Function/Program Table 17 118 Page 16 of 284 INTRODUCTORY SECTION Page 17 of 284 - This page intentionally left blank - Page 18 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA ELECTED AND APPOINTED OFFICIALS December 31, 2019 Mayor: Term Expires Mary McComber December 31, 2020 Councilmembers: Chuck Dougherty December 31, 2020 Mike Liljegren December 31, 2022 Mike Runk December 31, 2020 Carly Johnson December 31, 2022 Administrator: Eric Johnson Appointed Finance Director: Betty Caruso Appointed Page 19 of 284 - This page intentionally left blank - Page 20 of 284 FINANCIAL SECTION Page 21 of 284 - This page intentionally left blank - Page 22 of 284 "RC1 DX INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Oak Park Heights, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Oak Park Heights, Minnesota, as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City of Oak Park Heights, Minnesota's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 55 511' Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com Page 23 of 284 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Oak Park Heights, Minnesota, as of December 31, 2019, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited the City of Oak Park Heights, Minnesota's 2018 financial statements, and we expressed an unmodified audit opinion on the respective financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information in our report dated March 27, 2018. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2018 is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, the budgetary comparison information, the schedules of pension contributions and the schedules of proportionate share of pension liability, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Oak Park Heights, Minnesota's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Page 24 of 284 The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 23, 2020, on our consideration of the City of Oak Park Heights, Minnesota's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Oak Park Heights, Minnesota's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Oak Park Heights, Minnesota's internal control over financial reporting and compliance. REDPATH AND COMPANY LTD. St. Paul, Minnesota April 23, 2020 Page 25 of 284 - This page intentionally left blank - Page 26 of 284 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Oak Park Heights, Minnesota (the City) we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2019. Financial Highlights The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $48,425,474 (net position). Of this amount, $21,207,149 (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City's total net position increased by $1,517,941. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $22,109,562, an increase of $1,572,401. The increase is the net result of the favorable budget variances in the General Fund of $748,026, and transfers in from the Enterprise Funds of $655,484. At the end of the current fiscal year the General Fund balance was $5,512,634, of which $80,898 is nonspendable, $307,000 is assigned, and $5,124,736 is unassigned. The unassigned fund balance is 88% of the total subsequent year General Fund budgeted expenditures. The General Fund balance increased by $415,360. The increase is a result of favorable budget variances for revenue and expenditures of $369,171 for 2019 and additional transfers in of $392,167. The City's transfers out of the General Fund were $609,812 from the General Fund to the Budgeted Projects Fund for capital improvements for streets, parks, public safety, public works, and general government; $149,000 from the General Fund to the G.O. Capital Improvement Bonds of 2014A; $397,900 from the General Fund to the Street Reconstruction Fund; and $523,000 from the General Fund to the Non -major Governmental Funds. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Page 27 of 284 Management's Discussion and Analysis Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works and parks and recreation. The business -type activities of the City include water, sanitary sewer and storm sewer. The government -wide financial statements are statements 1 and 2 of this report. Fund Financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the City's near term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures and change in fund balance provide a Page 28 of 284 Management's Discussion and Analysis reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains seven individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balance for the following major funds: • General Fund • Economic Development — Special Revenue Fund • TIF District #2 — Special Revenue Fund • Budgeted Projects and Equipment Revolving — Capital Project Fund • G.O. Capital Improvement Bonds of 2014A — Debt Service Fund • Street Reconstruction Fund — Capital Project Fund • Renewal and Replacement Fund — Capital Project Fund Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of subcombining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for this fund to demonstrate compliance with this budget — see Statement 9. The basic governmental fund financial statements are statements 3 through 5 of this report. Proprietary funds. The City maintains three enterprise funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its water, sanitary sewer and storm sewer operations. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the following funds: Enterprise funds: Water Sanitary Sewer Storm Sewer Internal service funds are used to report activities that provide services for the City's other departments, such as pension benefits. The internal service fund is reported with governmental activities in the government -wide financial statements. The basic proprietary fund financial statements are statements 6 through 8 of this report. Page 29 of 284 Management's Discussion and Analysis Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected by the government -wide financial statements because the resources of those funds are not available to support the City's own programs. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government—wide and fund financial statements. The notes to the financial statements can be found following Statement 9. Other information. The combining statements referred to earlier in connection with non - major governmental funds are presented immediately following the required supplementary information on budgetary comparisons. Combining and individual fund statements and schedules are presented as Statements 14 through 21. Government -Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $48,425,474 at the close of the most recent fiscal year. The largest portion of the City's net position ($25,569,607 or 53%) reflects its investment in capital assets (e.g. land, improvements, buildings and structures, machinery and equipment, and furniture and fixtures) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Page 30 of 284 Management's Discussion and Analysis Assets: Current and other assets Capital assets Total assets Total deferred outflows of resources Liabilities: Long-term liabilities outstanding Other liabilities Total liabilities Total deferredinflows ofresources Net position: Net investment in capital assets Restricted Unrestricted Total net position City of Oak Park Heights' Net Position Governmental Activities Business -Type Activities Totals 2019 2018 2019 2018 2019 2018 $23,359,398 $21,620,736 $2,748,285 $2,646,387 $26,107,683 $24,267,123 20,073,550 20,583,967 11,831,175 12,159,769 31,904,725 32,743,736 $43,432,948 $42,204,703 $14,579,460 $14,806,156 $58,012,408 $57,010,859 $1,265,820 $1,512,111 $0 $0 $1,265,820 $1,512,111 $7,453,838 $8,201,954 $51,719 $46,869 $7,505,557 $8,248,823 1,520,398 1,202,497 19,457 51,713 1,539,855 1,254,210 $8,974,236 $9,404,451 $71,176 $98,582 $9,045,412 $9,503,033 $1,807,342 $2,112,404 $0 $0 $1,807,342 $2,112,404 $13,738,432 $13,494,510 $11,831,175 $12,159,769 $25,569,607 $25,654,279 1,648,718 1,576,498 - - 1,648,718 1,576,498 18,530,040 17,128,951 2,677,109 2,547,805 21,207,149 19,676,756 $33,917,190 $32,199,959 $14,508,284 $14,707,574 $48,425,474 $46,907,533 A portion of the City's net position ($21,207,149) is its unrestricted net position which may be used to meet the City's ongoing obligations to citizens and creditors. The remaining balance of $1,648,718 represents resources that are subject to external restrictions on how they may be used. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. Governmental Activities Governmental activities increased the City's net position by $1,717,231 during 2019. Key elements of this increase are due to reductions in the expenses for government activities and favorable investment earnings in revenues are due to increases in investment rates for 2019. The City also received a capital asset contribution of $291,700 related to the donation of infrastructure. Page 31 of 284 Management's Discussion and Analysis City of Oak Park Heights' Changes in Net Position Re,xnues: Program rexnues: Charges for services Operating grants and contributions Capital grants and contributions General re xnues: General property taxes Tax increment Grants and contributions not restricted to specific programs Other re xnue Unrestricted imxstment earnings Total revenues Expenses: General government Public safety Public works Parks and recreation Interest on long-term debt Water Sanitary sewer Storm sewer Total expenses Increase in net position before transfers Transfers Change in net position Net position - January 1 Net position - December 31 Governmental Activities Business -Type Activities Totals 2019 2018 2019 2018 2019 2018 $372,949 $727,578 $1,900,401 $1,924,692 $2,273,350 $2,652,270 139,503 163,896 139,503 163,896 310,010 443,362 310,010 443,362 5,122,379 5,366,791 5,122,379 5,366,791 237,217 226,985 237,217 226,985 14,053 15,558 - - 14,053 15,558 3,320 6,925 133 360,190 3,453 367,115 587,106 281,466 72,190 28,038 659,296 309,504 6,786,537 7,232,561 1,972,724 2,312,920 8,759,261 9,545,481 2,111,354 1,872,995 456,144 861,470 2,111,3 54 1,872,995 1,920,902 1,789,330 (655,434) 74,695 1,920,902 1,789,330 1,252,994 1,978,571 1,252,994 1,978,571 308,870 379,258 (199,290) 936,165 308,870 379,258 130,620 153,860 - - 130,620 153,860 - - 594,178 579,384 594,178 579,384 $33,917,190 $32,199,959 850,706 797,431 850,706 797,431 - - 71,696 74,635 71,696 74,635 5,724,740 6,174,014 1,516,580 1,451,450 7,241,320 7,625,464 1,061,797 1,058,547 456,144 861,470 1,517,941 1,920,017 655,434 (74,695) (655,434) 74,695 - - 1,717,231 983,852 (199,290) 936,165 1,517,941 1,920,017 32,199,959 31,216,107 14,707,574 13,771,409 46,907,533 44,987,516 $33,917,190 $32,199,959 $14,508,284 $14,707,574 $48,425,474 $46,907,533 Page 32 of 284 Management's Discussion and Analysis Below are specific graphs which provide comparisons of the governmental activities revenues and expenditures: Governmental Activities - Revenues Ulla: r.'. ': Lest 11rau 1 :::J tis il,::•."u. i.,•1 r:vtnc0.�.i f. .aYiz .u•.<,c•.uu[ c.'MhIgs. Gpeatatg grtults mxi "nuibutians 3% General properly taxes 74% Governmental Activities - Expenses Public 22' .....,, .illi! rccreallon l.nlel'e51 on 1, : -I'enn debt General govenifilear 3741 t mm.. 34% Page 33 of 284 Management's Discussion and Analysis Business -Type Activities Business -type activities net position decreased by $199,290 during 2019. Below are graphs showing the business -type activities revenue and expense comparisons: Business -Type Activities - Expenses Storm sewer 5% Water ;qo/ Sanitvv sewer .`+G°'o Page 34 of 284 Management's Discussion and Analysis Financial Analysis of the Government's Funds Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $22,109,562. The General Fund increased by $415,360 in 2019. This is a result of favorable budget variances of revenues exceeding the budget by $151,784, and expenditures under budget by $217,387. An additional transfer in of $392,167 was made to close the Revolving Capital Project Fund. The Economic Development fund increased by $1,013. This fund was established to account for the activity of the Oak Park Heights Economic Development Authority. The fund presently accounts for land purchased and held for resale or future development. The TIF District # 2 fund decreased by $314. This fund was established for possible development within the city which would require expenditures for street and utility infrastructure. Preliminary expenses of $406,067 including the purchase of property were incurred during 2013-2015. The Budgeted Projects and Equipment Revolving Fund increased by $679,647. This fund receives annual transfers from the General Fund and the Proprietary Funds to fund current and future capital purchases and major expenses. Expenditures from the fund includes the completion of the Comprehensive Plan and the capital improvement to the City's security system. The G.O. Capital Improvement Bonds of 2014 decreased by $55,274. The bonds were issued for partial financing of the 2014-2015 Street and Utility Reconstruction Project. The decrease is the result of using the assessments that were prepaid in addition to the amount levied and collected for the repayment of the bonds principal and interest of $432,800. The Street Reconstruction Capital Project Fund increased by $245,046 during 2019. Annual transfers from the General Fund are made to the fund to pay for future and current capital improvements. Capital Improvements of $265,136 were funded in 2019. The Renewal and Replacement Capital Project Fund increased by $397,974 during 2019. This fund receives an annual transfer from the proprietary funds in an amount equal to depreciation expense on capital assets to help fund future and current proprietary type capital improvements. Capital Improvements of $10,050 were funded in 2019. Page 35 of 284 Management's Discussion and Analysis The nonmajor special revenue funds increased by $58,105 during 2019 generally due to collections of tax revenues from the TIF #1. The nonmajor debt service funds increased by $1,606 during 2019 The nonmaj or capital project funds decreased by $170,762 during 2019 due to the transfer of $392,167 made for the closing of the Capital Revolving Fund to the General Fund and the transfer of $86,412 to close the City Hall Improvement Fund to the Budgeted Projects and Equipment Revolving Fund. Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Bud2etary Highlights Budget Amendments: An amendment to the original budget was made to fund major expenditures incurred in excess of the budget due to unforeseen events. The original budget includes the possibility of this with a reserve of unassigned fund balance. The adjustment increased the budget for an additional $129,000 utilizing this reserve of fund balance. Budget to Actual: Revenues: In 2019, the General Fund exceeded the original budgeted revenues by $151,784. This was combination of some of the following variances: • Property Taxes - Collections of taxes exceeded the budget by $16,887. This includes current and delinquent taxes. The city received $7,254 of excess TIF revenue in 2019. • Intergovernmental Revenue — The positive budget variance of $27,586 was largely due to an increase in Police Aid received from the State. • Licenses and permits and Charges for Services — These revenues had a combined negative variance of $29,013. This was due to a decrease in building activity and development in 2019. • Investment income — This positive variance of $119,277 is due to investment income is not a budgeted item due to the fluctuation from year to year. Change in market value in individual investments can vary and impact this revenue. It is the practice of the City to hold all investments to maturity. Actual earnings were $85,805, while change in market value was $33,472. Expenditures: In 2019 General funds actual expenditures were less than expected by $217,387. The largest budget savings related to public safety police expenditures, $116,598. Labor costs were less than budget due to overtime and comp time budgets being greater than the actual. Finance had a favorable variance of $27,531 due to hiring of the replacement accountant at a later date than budgeted for. Other financing sources: The Capital Revolving Fund was closed in 2019 and the balance of $392,167 was transferred to the General Fund. Page 36 of 284 Management's Discussion and Analysis Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental and business - type activities as of December 31, 2019, amounts to $31,904,725 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, buildings and structures, other improvements, infrastructure, machinery and equipment and furniture and fixtures. City of Oak Park Heights' Capital Assets (Net of Depreciation) Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $2,313,494 $8,200 $ - $2,321,694 Construction in progress 264,435 (264,435) - Total capital assets, not being depreciated 2,577,929 8,200 (264,435) 2,321,694 Capital assets, being depreciated: Buildings and structures Other improvements Machinery and equipment Furniture and fixtures Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings and structures Other improvements Machinery and equipment Furniture and fixtures Infrastructure Total accumulated depreciation Total capital assets being depreciated - net Governmental activities capital assets - net Business -type activities: Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and structures Machinery and equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings and structures Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated - net Business -type activities capital assets - net 8,122,134 108,203 8,230,337 1,730,282 - 1,730,282 694,196 - 694,196 528,243 19,549 547,792 18,417,733 548,636 18,966,369 29,492,588 676,388 0 30,168,976 1,570,585 203,156 1,773,741 553,272 55,512 608,784 404,169 49,651 453,820 346,164 31,413 377,577 8,612,360 590,838 9,203,198 11,486,550 930,570 0 12,417,120 18,006,038 (254,182) 0 17,751,856 $20,583,967 ($245,982) ($264,435) $20,073,550 Beginning Ending Balance Increases Decreases Transfers Balance $939,921 $500 $ $ - $940,421 939,921 500 0 0 940,421 2,748,251 45,242 54,000 2,847,493 688,393 13,274 - 701,667 13,077,164 2 (54,000) 13,023,166 16,513,808 58,518 0 0 16,572,326 1,157,976 86,596 19,443 1,264,015 332,291 36,831 - 369,122 3,803,693 264,155 (19,413) 4,048,435 5,293,960 387,582 0 30 5,681,572 11,219,848 (329,064) 0 (30) 10,890,754 $12,159,769 ($328,564) $0 ($30 $11,831,175 Page 37 of 284 Management's Discussion and Analysis Additional information on the City's capital assets can be found in Note 5. Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $6,355,118. Additional long-term liabilities in the amount of $335,106 for compensated absences and $1,631,417 for net pension liability was also outstanding at the end of 2019. City of Oak Park Heights' Outstanding Debt General obligation bonds, compensated absences and unamortized bond premium: State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total estimated market value. The current debt limitation for the City is $25,105,377. The 2012 General Obligation Bonds for a total of $4,175,000 counted within the statutory limitation. Additional information on the City's long-term debt can be found in Note 6. Requests for information. This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 14168 Oak Park Boulevard, Oak Park Heights, Minnesota 55082-2007. Page 38 of 284 Governmental Activities Business -Type Activities Totals 2019 2018 2019 2018 2019 2018 General obligation bonds $6,210,000 $6,925,000 $ - $ - $6,210,000 $6,925,000 Compensated absences 279,173 261,592 55,933 53,708 335,106 315,300 Net pension liability 1,631,417 1,597,086 - - 1,631,417 1,597,086 Bond premium 145,118 164,456 - - 145,118 164,456 Total $8,265,708 $8,948,134 $55,933 $53,708 $8,321,641 $9,001,842 State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total estimated market value. The current debt limitation for the City is $25,105,377. The 2012 General Obligation Bonds for a total of $4,175,000 counted within the statutory limitation. Additional information on the City's long-term debt can be found in Note 6. Requests for information. This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 14168 Oak Park Boulevard, Oak Park Heights, Minnesota 55082-2007. Page 38 of 284 BASIC FINANCIAL STATEMENTS Page 39 of 284 - This page intentionally left blank - Page 40 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF NET POSITION December 31, 2019 With Comparative Amounts for The Year Ended December 31, 2018 Assets: Cash and investments Accrued interest receivable Accounts receivable - net Internal balances Due from other governmental units Prepaid items Taxes receivable Special assessments receivable - net Land held for resale Capital assets (net of accumulated depreciation): Land Building and structures Other improvements Machinery and equipment Furniture and fixtures Infrastructure Construction in progress Total assets Deferred outflows of resources: Related to pensions Liabilities: Accounts payable Salaries payable Contracts payable Due to other governmental units Accrued interest payable Deposits payable Unearned revenue Compensated absences payable: Due within one year Due in more than one year Bonds payable: Due within one year Due in more than one year Net pension liability: Due in more than one year Total liabilities Deferred inflows of resources: Related to pensions Net position: Net investment in capital assets Restricted for: Debt service Park improvements Other purposes Unrestricted Total net position Statement 1 Primary Government Governmental Business -Type Totals 3,253,415 Activities Activities 2019 2018 $22,524,638 $2,245,002 $24,769,640 $23,283,819 127,009 15,936 142,945 112,493 33,211 453,790 487,001 573,637 32,516 (32,516) - - 46,677 8,760 55,437 114,845 80,898 57,313 138,211 82,767 26,085 - 26,085 32,839 319,846 - 319,846 403,547 168,518 168,518 168,518 2,321,694 940,421 3,262,115 3,253,415 6,456,596 1,583,478 8,040,074 8,141,824 1,121,498 - 1,121,498 1,177,010 240,376 332,545 572,921 646,129 170,215 - 170,215 182,079 9,763,171 8,974,731 18,737,902 19,078,844 - - - 264,435 43,432,948 14,579,460 58,012,408 57,516,201 1,265,820 1,265,820 1,512,111 427,508 10,458 437,966 210,216 4,046 452 4,498 3,732 - - - 236,401 320 4,333 4,653 30,908 5,657 - 5,657 6,252 270,997 270,997 515,282 - - - 3,742 76,870 4,214 81,084 38,019 202,303 51,719 254,022 277,281 735,000 - 735,000 715,000 5,620,118 5,620,118 6,374,456 1,631,417 1,631,417 1,597,086 8,974,236 71,176 9,045,412 10,008,375 1,807,342 1,807,342 2,112,404 13,738,432 11,831,175 25,569,607 25,654,279 1,356,577 - 1,356,577 1,299,343 34,019 34,019 47,468 258,122 - 258,122 229,687 18,530,040 2,677,109 21,207,149 19,676,756 $33,917,190 $14,508,284 $48,425,474 $46,907,533 The accompanying notes are an integral part of these financial statements Page 41 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2019 With Comparative Amounts for The Year Ended December 31, 2018 Functions/Programs Primary government: Governmental activities: General government Public safety Public works Parks and recreation Interest and fees on long-term debt Total governmental activities Business -type activities: Water Sanitary sewer Storm sewer Total business -type activities Total primary government Expenses $2,111,354 1,920,902 1,252,994 308,870 130,620 5.724.740 594,178 850,706 71,696 L516.580 Program Revenues Charges For Services $150,790 172,358 49,801 372,949 827,292 988,931 84,178 1900.401 $7,241,320 $2,273,350 The accompanying notes are an integral part of these financial statements. Page 42 of 284 Statement 2 The accompanying notes are an integral part of these financial statements. Page 43 of 284 Net (Expense) Revenue and Program Revenues Changes in Net Position Operating Capital Primary Government Grants and Grants and Governmental Business -Type Totals Contributions Contributions Activities Activities 2019 2018 ($1,960,564) $ - ($1,960,564) ($1,495,105) 116,473 - (1,632,071) - (1,632,071) (1,467,471) 23,030 310,010 (870,153) - (870,153) (1,343,484) - - (308,870) - (308,870) (379,258) - - (130,620) - (130,620) (153,860) 139,503 310,010 (4,902,278) 0 (4,902,278) (4,839,178) - - - 233,114 233,114 306,199 - - - 138,225 138,225 157,054 - - - 12,482 12,482 9,989 0 0 0 383,821 383,821 473,242 $139,503 $310,010 (4,902,278) 383,821 (4,518,457) (4,365,936) General revenues: General property taxes 5,122,379 - 5,122,379 5,366,791 Tax increment 237,217 - 237,217 226,985 Grants and contributions not restricted to specific programs 14,053 - 14,053 15,558 Unrestricted investment earnings 587,106 72,190 659,296 309,504 Other revenue 3,320 133 3,453 367,115 Transfers 655,434 (655,434) - - Total general revenues and transfers 6,619,509 (583,111) 6,036,398 6,285,953 Change in net position 1,717,231 (199,290) 1,517,941 1,920,017 Net position - January 1 32,199,959 14,707,574 46,907,533 44,987,516 Net position - December 31 $33,917,190 $14,508,284 $48,425,474 $46,907,533 The accompanying notes are an integral part of these financial statements. Page 43 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA BALANCESHEET GOVERNMENTALFUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Assets Cash and investments Accrued interest receivable Accounts receivable - net Due from other governmental units Due from other funds Prepaid items Delinquent taxes receivable Special assessments receivable Land held for resale Total assets Liabilities, Deferred Inflows of Resources, and Fund Balances 401 Budgeted Projects and 204 Economic 206 TIF District Equipment General Fund Development #2 Revolving $5,510,422 $35,291 $2,114 $4,200,584 25,185 225 14 23,728 33,211 - - - 46,231 - 410,000 320 80,898 - 410,000 26,085 436,798 - Unearned revenue 168,518 - Total liabilities 593,313 0 410,000 14,671 $6,132,032 $204,034 $2,128 $4,224,312 Liabilities: Accounts payable $152,149 $ $ $14,671 Salaries payable 4,046 - Contracts payable - Due to other governmental units 320 Due to other funds - 410,000 Deposits payable 436,798 - Unearned revenue - - - Total liabilities 593,313 0 410,000 14,671 Deferred inflows of resources: Unavailable revenue 26,085 168,518 - - Fund balance: Nonspendable Restricted Assigned Unassigned Total fund balance Total liabilities, deferred inflows of resources, and fund balance 80,898 307,000 35,516 4,209,641 5,124,736 - (407,872) 5,512,634 35,516 (407,872) 4,209,641 $6,132,032 $204,034 $2,128 $4,224,312 The accompanying notes are an integral part of these financial statements. Page 44 of 284 Statement 3 710 Renewal and 529 G.O. Capital Replacement Other Improvement 565 Street Capital Project Governmental Intra -Activity Bonds of 2014A Reconstruction Fund Funds Eliminations Total Governmental Funds - - - - 4,716,864 4,257,110 722,286 3,066,047 5,139,343 3,831,967 0 22,109,562 20,537,161 $22,109,562 2019 2018 $716,641 $3,047,686 $5,108,416 $3,903,484 $ - $22,524,638 $21,144,024 5,199 18,361 30,927 23,370 reported as unavailable revenues in the funds. 127,009 100,277 - - - - (6,355,118) 33,211 99,287 446 (261,592) Accrued interest payable (5,657) (6,252) 46,677 114,040 - The assets and liabilities are included in the governmental activities on the Statement of Net Position. (2,140,423) (2,168,773) (410,000) - - $33,917,190 $32,199,959 80,898 34,940 - 26,085 32,839 319,846 319,846 403,547 - 168,518 168,518 $1,042,132 $3,066,047 $5,139,343 $3,926,854 ($410,000) $23,326,882 $22,097,472 $ $ $ $94,887 $ $261,707 $196,930 - 4,046 1,982 - 236,401 320 1,070 (410,000) - - 436,798 515,282 - - 3,742 0 0 0 94,887 (410,000) 702,871 955,407 319,846 - 514,449 604,904 - - 80,898 34,940 722,286 - - 411,983 1,134,269 1,172,951 - 3,066,047 5,139,343 3,419,984 16,177,531 15,072,160 - - - - 4,716,864 4,257,110 722,286 3,066,047 5,139,343 3,831,967 0 22,109,562 20,537,161 $1,042,132 $3,066,047 $5,139,343 $3,926,854 ($410,000) $23,326,882 $22,097,472 Recociliation of fund balance to Net Position: Fund balance reported above $22,109,562 $20,537,161 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 20,073,550 20,583,967 Other long-term assets are not available to pay for current -period expenditures and, therefore, are reported as unavailable revenues in the funds. 514,449 604,904 Long-term liabilities, are not due and payable in the current period and, therefore, are not reported in the funds: Bonds payable (6,355,118) (7,089,456) Compensated absences payable (279,173) (261,592) Accrued interest payable (5,657) (6,252) An internal service fund is used by management to charge the costs of pension benefits to individual funds. The assets and liabilities are included in the governmental activities on the Statement of Net Position. (2,140,423) (2,168,773) Net position of governmental activities $33,917,190 $32,199,959 The accompanying notes are an integral part of these financial statements. Page 45 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2019 With Comparative Totals For December 31, 2018 Revenues: General property taxes Tax increment Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Refunds and reimbursements Donations and contributions Total revenues Expenditures: Current: General government Public safety Public works Parks and recreation Capital outlay Debt service: Principal Interest Total expenditures Revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 401 Budgeted Projects and 204 Economic 206 TIF District Equipment General Fund Development #2 Revolving $5,129,133 124,372 - - - 130,982 - - - 37,195 - - - 48,477 - - - 119,277 1,013 64 107,286 110,570 - - - - - - 100 5,700,006 1,013 64 107,386 1,437,796 - 378 22,465 1,803,708 - - 92,821 602,162 - - 35,028 150,435 - - 2,934 3,000 - - 101,209 0 378 3,997,101 254,457 1,702,905 1,013 (314) (147,071) 392,167 - - 836,351 (1,679,712) - - (9,633) (1,287,545) 0 0 826,718 415,360 1,013 (314) 679,647 5,097,274 34,503 (407,558) 3,529,994 $5,512,634 $35,516 ($407,872) $4,209,641 The accompanying notes are an integral part of these financial statements. Page 46 of 284 Statement 4 516 - 710 Renewal and 193,989 - 1,655,144 529 G.O. Capital - Replacement Other - - Improvement 565 Street Capital Project Governmental Intra -Activity 59,070 - Bonds of 2014A Reconstruction Fund Funds Eliminations Total Governmental Funds - 1,523 - 154,892 2019 2018 $ - $ - $ - $ - $ - $5,129,133 $5,370,520 - - - 237,217 - 237,217 226,985 101,911 - - - - 101,911 147,715 - - - - - 124,372 224,186 - - 8,521 - - 139,503 187,282 - - - 44,905 - 82,100 334,456 - - - 10,099 - 58,576 53,128 23,131 82,956 138,832 114,547 - 587,106 281,466 - - - 651 - 111,221 122,733 - - - - - 100 5,000 125,042 82,956 147,353 407,419 0 6,571,239 6,953,471 516 - - 193,989 - 1,655,144 1,677,124 - - - - - 1,896,529 1,812,530 - - 59,070 - - 696,260 1,417,430 - - - 1,523 - 154,892 224,367 - 265,136 10,050 16,549 - 395,944 994,514 375,000 - - 340,000 - 715,000 1,010,000 57,800 - - 92,753 - 150,553 174,219 433,316 265,136 69,120 644,814 0 5,664,322 7,310,184 (308,274) (182,180) 78,233 (237,395) 0 906,917 (356,713) 253,000 427,226 365,512 634,249 (2,243,021) 665,484 706,489 - - (45,771) (507,905) 2,243,021 - - 253,000 427,226 319,741 126,344 0 665,484 706,489 (55,274) 245,046 397,974 (111,051) 0 1,572,401 349,776 777,560 2,821,001 4,741,369 3,943,018 - 20,537,161 20,187,385 $722,286 $3,066,047 $5,139,343 $3,831,967 $0 $22,109,562 $20,537,161 The accompanying notes are an integral part of these financial statements. Page 47 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2019 With Comparative Amounts for The Year Ended December 31, 2018 2019 2018 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds (Statement 4) $1,572,401 $349,776 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Depreciation (930,570) (930,549) Capital outlay 395,944 994,514 Other various transactions relating to capital assets: Transfer of capital assets to business -type activities (10,050) (781,184) Prior year capital outlay not capitalized in the current year (257,441) - Contribution of capital assets 291,700 379,675 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds: Change in delinquent taxes receivable (6,754) (3,729) Change in deferred special assessments receivable (83,701) (112,490) Change in delinquent special assessments receivable - 2,669 The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. The amount of this difference is: Principal payments on bonds payable 715,000 1,010,000 Amortization of bond premium 19,338 19,338 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Expenses reported in the statement of activities include the effects of the changes in these expense accruals as follows: Change in compensated absences payable (17,581) (27,600) Change in accrued interest payable 595 1,021 An internal service fund is used by management to charge pension costs to individual funds. This amount is the portion of net revenue attributable to governmental activities. 28,350 82,411 Change in net position of governmental activities (Statement 2) $1,717,231 $983,852 The accompanying notes are an integral part of these financial statements. Page 48 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2019 With Comparative Totals For Enterprise Funds For December 31, 2018 Statement 6 Liabilities: Current liabilities Accounts payable 5,239 1,227 3,992 10,458 13,286 Governmental Salaries payable 226 Business -Type Activities Enterprise Funds - Activities 1,750 Due to other governmental units 707 Storm - - 4,333 29,838 705 Water 706 Sewer Sewer Utility 1,508 294 Internal Service 6,839 Utility Fund Utility Fund Fund Totals 4,286 Fund 51,713 0 Noncurrent liabilities: 2019 2018 2019 Assets: Compensated absences payable - noncurrent portion 29,605 18,505 3,609 51,719 Current assets: - Net pension liability - - - - Cash and cash equivalents $960,317 $1,105,257 $179,428 $2,245,002 $2,139,795 $ Accrued interest receivable 7,003 7,762 1,171 15,936 12,216 71,176 Accounts receivable: 1,631,417 Deferred inflows of resources: Customers 163,203 221,859 20,936 405,998 436,730 Certified to County 19,932 25,085 2,775 47,792 37,620 Due from other governmental units 8,760 - - 8,760 805 Prepaid items 8,110 49,190 13 57,313 47,827 Total current assets 1,167,325 1,409,153 204,323 2,780,801 2,674,993 0 Noncurrent assets: Capital assets: Land 939,169 1,252 940,421 939,921 Buildings and structures 2,024,079 823,414 2,847,493 2,748,250 Machinery and equipment 557,616 144,051 701,667 688,392 Distribution and collection system 7,381,060 5,642,106 13,023,166 13,077,166 Total capital assets 10,901,924 6,610,823 0 17,512,747 17,453,729 0 Less: Allowance for depreciation (3,528,766) (2,152,806) (5,681,572) (5,293,960) Net capital assets 7,373,158 4,458,017 0 11,831,175 12,159,769 0 Total noncurrent assets 7,373,158 4,458,017 11,831,175 12,159,769 Total assets 8,540,483 5,867,170 204,323 14,611,976 14,834,762 0 Deferred outflows of resources: Related to pensions - - - - - 1,265,820 Liabilities: Current liabilities Accounts payable 5,239 1,227 3,992 10,458 13,286 Total net position $8,498,668 $5,845,704 Salaries payable 226 226 - 452 1,750 Due to other governmental units 4,333 - - 4,333 29,838 $14,707,574 Compensated absences payable - current portion 2,412 1,508 294 4,214 6,839 Total current liabilities 12,210 2,961 4,286 19,457 51,713 0 Noncurrent liabilities: Compensated absences payable - noncurrent portion 29,605 18,505 3,609 51,719 46,869 - Net pension liability - - - - - 1,631,417 Noncurrent liabilities 29,605 18,505 3,609 51,719 46,869 1,631,417 Total liabilities 41,815 21,466 7,895 71,176 98,582 1,631,417 Deferred inflows of resources: Related to pensions - 1,807,342 Net position Net investment in capital assets 7,373,158 4,458,017 - 11,831,175 12,159,769 Unrestricted 1,125,510 1,387,687 196,428 2,709,625 2,576,411 (2,172,939) Total net position $8,498,668 $5,845,704 $196,428 $14,540,800 $14,736,180 ($2,172,939) Net position reported above $14,540,800 $14,736,180 Adjustment to report the cumulative internal balance for the net effect of activity between the internal service fund and the enterprise funds over time. (32,516) (28,606) Net position of business -type activities $14,508,284 $14,707,574 The accompanying notes are an integral part of these financial statements. Page 49 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2019 With Comparative Totals For Enterprise Funds For December 31, 2018 Statement 7 Operating expenses Personal services 238,668 161,023 29,105 428,796 402,039 Governmental Contractual services 82,401 Business -Type Activities Enterprise Funds 34,449 Activities 207,576 - MCES charges 707 Storm 445,828 - 445,828 421,608 705 Water 706 Sewer Sewer Utility 7,553 2,360 Internal Service 34,727 Utility Fund Utility Fund Fund Totals 5,500 Fund 5,350 Repairs and maintenance - 2019 2018 2019 Operating revenues: Depreciation 248,272 139,340 387,612 Customer billings $802,956 $974,950 $83,469 $1,861,375 $1,884,072 $ Penalties 7,247 11,684 842.00 19,773 15,873 387,864 Meter charges 6,158 - - 6,158 5,266 Charges for services 2,025 700 31,964 2,725 1,555 232,038 Grants and contributions 8,700 - - 8,700 - 14,053 Refunds and reimbursements 206 1,597 - 1,803 17,926 - Total operating revenues 827,292 988,931 84,311 1,900,534 1,924,692 246,091 Operating expenses Personal services 238,668 161,023 29,105 428,796 402,039 221,651 Contractual services 82,401 95,554 34,449 212,404 207,576 - MCES charges - 445,828 - 445,828 421,608 Materials and supplies 22,617 7,553 2,360 32,530 34,727 Administrative and personnel charges - - 5,500 5,500 5,350 Repairs and maintenance - - - - 76 Depreciation 248,272 139,340 387,612 375,864 - Total operating expenses 591,958 849,298 71,414 1,512,670 1,447,240 221,651 Operating income (loss) 235,334 139,633 12,897 387,864 477,452 24,440 Nonoperating revenues (expenses): Earnings on investments 31,964 35,066 5,160 72,190 28,038 - Other income (expense) - - - 352,155 - Total nonoperating revenues (expenses) 31,964 35,066 5,160 72,190 380,193 0 Income (loss) before contributions and transfers 267,298 174,699 18,057 460,054 857,645 24,440 Capital contributions 9,800 250 - 10,050 781,184 - Transfers: Transfers from other funds 7,050 - 2,583 9,633 - Transfers to other funds (438,506) (230,861) (5,750) (675,117) (706,489) - Total transfers and contributions (421,656) (230,611) (3,167) (655,434) 74,695 0 Change in net position (154,358) (55,912) 14,890 (195,380) 932,340 24,440 Net position - January 1 8,653,026 5,901,616 181,538 14,736,180 13,803,840 (2,197,379) Net position - December 31 $8,498,668 $5,845,704 $196,428 $14,540,800 $14,736,180 ($2,172,939) Change in Net Capital Position Contributions Transfers Reconciliation to Statement of Activities: Amounts reported above ($195,380) $10,050 ($665,484) Amounts reported for business -type activities in the Statement of Activities are different because: Transfer in of capital assets from governmental activities (10,050) 10,050 Adjustment to reflect the consolidation of Internal Service Fund activities (3,910) Amounts reported on the Statement of Activities ($199,290) $0 ($655,434) The accompanying notes are an integral part of these financial statements. Page 50 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2019 With Comparative Totals For Enterprise Funds For December 31, 2018 Statement 8 Cash flows from noncapital financing activities: 14,342 1,172 12,605 (16,053) (3,497) Governmental 7,050 14,280 Business -Type Activities Enterprise Funds Transfer to other funds Activities (230,861) (5,750) (675,117) 707 Storm Net cash flows provided by (used in) noncapitaI financing activities (431,456) (230,861) (3,167) 705 Water 706 Sewer Sewer Utility 237,124 121,462 Internal Service 399,453 Utility Fund Utility Fund Fund Totals Fund Acquisition of capital assets (3,725) (45,243) 2019 2018 2019 Cash flows from operating activities: Other income (expense) Receipts from customers and users $815,683 $1,003,273 $85,483 $1,904,439 $1,908,639 $ Receipts from interfund charges for pension benefits - 68,470 - - 30,847 232,038 Grants and contributions 8,700 383,085 0 Net increase (decrease)in cash and cash equivalents 8,700 17,508 14,053 Payment to suppliers (114,305) (581,144) (38,632) (734,081) (633,194) - Payment to employees (237,620) (161,034) (29,215) (427,869) (398,540) (246,091) Net cash flows provided by (used in) operating activities 472,458 261,095 17,636 751,189 876,905 0 Cash flows from noncapital financing activities: 14,342 1,172 12,605 (16,053) (3,497) Transfer from other funds 7,050 14,280 2,583 9,633 Transfer to other funds (438,506) (230,861) (5,750) (675,117) (706,489) 0 Net cash flows provided by (used in) noncapitaI financing activities (431,456) (230,861) (3,167) (665,484) (706,489) Cash flows from capital and related 237,124 121,462 4,739 363,325 399,453 (24,440) financing activities: Acquisition of capital assets (3,725) (45,243) (48,968) (20,628) 0 Cash flows from investing activities: Other income (expense) - - - - 360,191 Investment income 30,847 32,517 5,106 68,470 22,894 Net cash flows provided by (used in) investing activities 30,847 32,517 5,106 68,470 383,085 0 Net increase (decrease)in cash and cash equivalents 68,124 17,508 19,575 105,207 532,873 0 Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation Changes in assets and liabilities: Decrease (increase) in receivables Decrease (increase)in prepaid expenses Decrease (increase) in deferred outflows of resources Increase (decrease) in payables Increase (decrease) in deferred inflows of resources Total adjustments Net cash provided by (used in) operating activities 892,193 1,087,749 159,853 2,139,795 1,606,922 $960,317 $1,105,257 $179,428 $2,245,002 $2,139,795 $0 $235,334 $139,633 $12,897 $387,864 $477,452 $24,440 248,272 139,340 387,612 375,864 (2,909) 14,342 1,172 12,605 (16,053) (3,497) (5,989) - (9,486) 14,280 - - - 246,291 (4,742) (26,231) 3,567 (27,406) 25,362 34,331 - - - - - (305,062) 237,124 121,462 4,739 363,325 399,453 (24,440) $472,458 $261,095 $17,636 $751,189 $876,905 $0 Noncash investing, capital and financing activities: Water utility assets in the amount of $9,800 were contributed to the Water Utility Fund in 2018. Sewer utility assets in the amount of $250 and $781,184 were contributed to the Sewer Utility Fund in 2019 and 2018. The accompanying notes are an integral part of these financial statements. Page 51 of 284 - This page intentionally left blank - Page 52 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Oak Park Heights, Minnesota operates under the State of Minnesota Statutory Plan A form of government. The governing body consists of a five member City council elected by voters of the City. The financial statements of the City of Oak Park Heights, Minnesota have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City (the primary government) and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and therefore data from these units are combined with data of the primary government. BLENDED COMPONENT UNIT The EDA of the City of Oak Park Heights, Minnesota is a separate legal entity. The EDA board members are substantially the same as the City council in that four of the five board members are council members and the fifth board member is the City mayor. Separate financial statements are not prepared by the EDA. B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The government -wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or business -type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business -type activity. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business -type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business -type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Page 53 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Economic Development Fund is used to account for the activity of the Oak Park Heights Economic Development Authority. The TIF District #2 Special Revenue Fund is used to account for all the activity within that district The Budgeted Projects and Equipment Revolving Fund is used to account for monies set aside for various capital improvements. The G. 0. Capital Improvement Bonds of 2014A Debt Service Fund is used to account for the accumulation of resources for debt service payments on the 2014A bonds. The Street Reconstruction Capital Project Fund accounts for the accumulation of funds to be used for future street reconstruction projects. The Renewal and Replacement Capital Project Fund is used to account for assets depreciated from the utility fund and water and sanitary sewer departments. Funds are used to renew or replace water and sanitary sewer system assets. Page 54 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The City reports the following major proprietary funds: The Water Utility Fund accounts for assets, liabilities, revenues and expenditures for water utility operations. The Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for sewer utility operations. The Storm Sewer Utility Fund accounts for assets, liabilities, revenues and expenditures for storm sewer utility operations. Additionally, the City reports the following fund type: Internal Service Fund — this pension benefit fund is used to provide pension benefits to other funds of the City on a cost reimbursement basis. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, which are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETS Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General Fund, but not for Special Revenue Funds. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. Page 55 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution on a departmental basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts. 4. The department heads are authorized to transfer appropriations under $500 within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may be authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 7. A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services; material and supplies; contractual services; capital outlay) within each department. All amounts over budget have been approved by the City council through the disbursement approval process. 9. The City Council may authorize transfer of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. Page 56 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Investments are stated at fair value, except for investments in external investment pools that meet GASB 79 requirements, which are stated at amortized cost. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows the Enterprise Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Enterprise Funds have original maturities of 90 days or less. Therefore the entire balance in the fund is considered cash equivalents. G. RECEIVABLES AND PAYABLES Property taxes and special assessments (see notes 1H and 11) have been reported net of estimated uncollectible accounts. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Government -Wide Financial Statements The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. Governmental Fund Financial Statements The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflows of resources because they are not available to finance current expenditures. L SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as Page 57 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the County's costs of administering all tax forfeit properties. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. Government -Wide Financial Statements The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. Governmental Fund Financial Statements Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. All remaining delinquent and deferred assessments receivable in governmental funds are offset by deferred inflows of resources. J. INVENTORIES The original cost of materials and supplies has been recorded as expenditures at the time of purchase. The City does not maintain material amounts of inventories of goods and supplies. K. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditure/expense at time of consumption. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include all such items regardless of their acquisition date. These assets are reported at historical cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Page 58 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business -type activities is included as part of the capitalized value of the assets constructed. For the year ended December 31, 2019, no interest was capitalized in connection with construction in progress. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives: Buildings and structures 20 - 50 years Machinery and equipment 3 - 20 years Distribution and collection systems 50 years Streets 25 years Storm sewers 50 years Pathways 20 years M. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay and accumulated vested sick leave benefits is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. N. LONG-TERM OBLIGATIONS In the government -wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of the bond. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. O. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Page 59 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Committed - consists of internally imposed constraints. These constraints are established by Resolution of City Council. Assigned - consists of internally imposed constraints for the specific purpose of the City's intended use. Pursuant to the City's Fund Balance Policy, the Finance Director and/or City Administrator have been authorized to assign fund balance that reflects the City's intended use of those funds. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City's policy to use resources in the following order; 1) committed 2) assigned and 3) unassigned. P. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. Q. RECLASSIFICATIONS Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. R. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. S. COMPARATIVE TOTALS The basic financial statements and combining and individual fund financial statements include certain prior -year summarized comparative information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City's financial statements for the year ended December 31, 2018, from which the summarized information was derived. Page 60 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 T. DEFERRED OUTFLOWSANFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item that qualifies for reporting in this category. It is the pension related deferred outflows of resources reported in the government -wide Statement of Net Position and the Proprietary Funds Statement of Net Position. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has pension related deferred inflows of resources reported in the government -wide Statement of Net Position and the proprietary funds Statement of Net Position. The City also has a type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, land held for resale, and unavailable grant revenue. U. PENSION PLANS COST SHARING MULTIPLE — EMPLOYER PLANS For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury notes, treasury bonds; Page 61 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; d) Unrated general obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc. or Standard & Poor's Corporation; and f) Time deposits that are fully insured by any Federal agency. At December 31, 2019 the carrying amount of the City's deposits with financial institutions was $8,832,311. Custodial credit risk — Deposits. Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned to it. State statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. As of December 31, 2019, the bank balance of the City's deposits was $8,960,295, all of which was either insured by the Federal Deposit Insurance Corporation (FDIC) or covered by perfected pledged collateral held in the City's name. B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities or organizations created by an act of Congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. c) Obligations of the State of Minnesota or any of its municipalities as follows: 1) any security which is a general obligation of any state or local government with taxing powers which is rated "A" or better by a national bond rating service; 2) any security which is a revenue obligation of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; and 3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated "A" or better by a national bond rating agency. d) Bankers' acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. Page 62 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U. S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.6 1, subdivision 6. As of December 31, 2019 the City had the following investments and maturities: Investment Maturities (in Years) Fair Less Investment Type Rating Value Thant 1-5 6-10 Federal National Mortgage Assn. Notes Aaa $500,035 $500,035 $ - $ Federal Home Loan Mortgage Corp. Aaa 1,797,553 - 1,797,553 Federal Home Loan Bank Notes Aaa 350,014 350,014 Federal Farm Credit Bonds Aaa 992,665 - 992,665 Brokered certificates of deposit NR 8,933,961 5,003,569 3,930,392 External investment pool - 4M Fund NR 3,363,001 3,363,001 Total $15,937,229 $8,866,605 $7,070,624 $0 NR - Not Rated Total investments $15,937,229 Deposits 8,83 2,311 Petty cash 100 Total cash and investments $24,769,640 The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3 investments are valued using inputs that are unobservable. The City has the following recurring fair value measurements as of December 31, 2019: Investments not categorized: External investment pool - 4M Fund 3,363,001 Total $15,93729 Yu The City's external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated pool and the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to Page 63 of 284 Fair Value Measurement Using Investment Type 12/31/2019 Level 1 Level 2 Level 3 Investments at fair value: Federal National Mortgage Assn. Notes $500,035 $ $500,035 $ Federal Home Loan Mortgage Corp. 1,797,553 1,797,553 Federal Home Loan Bank Notes 350,014 350,014 Federal Farm Credit Bonds 992,665 992,665 Brokered certificates of deposit 8,933,961 8,933,961 Total/Subtotal 12,57428 $0 $12,574,228 Investments not categorized: External investment pool - 4M Fund 3,363,001 Total $15,93729 Yu The City's external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated pool and the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to Page 63 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1. The pool measures their investments in accordance with Government Accounting Standards Board Statement No. 79, at amortized cost. The 4M Liquid Asset Fund has no redemption requirements. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14 -day restriction period are subject to a penalty equal to 7 days interest on the amount withdrawn. Following is a summary of the City's cash and investment balances as of December 31, 2019: Cash and investments - primary government: Governmental and business -type (Statement 1) $24,769,640 C. INVESTMENT RISKS Custodial credit risk — investments — For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside parry. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City's investment policy does not address custodial risk. However, investments in securities are held by the City's broker-dealer of which $2,000,000 is insured through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker -dealer's accounts. Interest rate risk — Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City's investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. Credit risk — Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. Minnesota Statutes limit the City's investments to direct obligations or obligations under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less; shares of a Minnesota joint powers investment trust whose investments are restricted to securities described in 118.04; general obligations of any state or local government with taxing powers which is rated "A" or better; revenue obligations of any state or local government with taxing powers which is rated "AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or better; bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; guaranteed investment contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank or a United States insurance company, and with the credit quality in one of the top two highest categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota Page 64 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 securities brokers -dealers. The City's investment policy does not place further restrictions on investment options. Concentration of credit risk — Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government's investment in a single issuer. The City places no limit on the amount the City may invest in any one issuer. As of December 31, 2019, more than 5% of the City's cash and investments are in the following governmental agency: Federal Home Loan Mortgage Corporation: (7.3%) Note 3 RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2019 are as follows: Delinquent property taxes Deferred special assessments Total Note 4 UNAVAILABLE REVENUE GO Capital Improvement Bonds General of 2014A Total $14,901 $ - $14,901 251,507 251,507 $14,901 $251,507 $266,408 Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. As of the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Major funds: General Fund Economic Development Capital Improvement Bonds of 2014A Total unavailable revenue Property Special Land Held Taxes Assessments for Resale $26,085 $ - - 319,846 $26,085 $319,846 168,518 $16x,518 $26,085 168,518 319,846 $514,449 Page 65 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2019 was as follows: Governmental activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and structures Other improvements Machinery and equipment Furniture and fixtures Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings and structures Other improvements Machinery and equipment Furniture and fixtures Infrastructure Total accumulated depreciation Total capital assets being depreciated - net Governmental activities capital assets - net Business -type activities: Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings and structures Machinery and equipment Infrastructure Total capital assets, being depreciated Less accumulated depreciation for: Buildings and structures Machinery and equipment Infrastructure Total accumulated depreciation Beginning 86,596 Ending Ending Balance Increases Decreases Balance $ $ - $940,421 939,921 500 0 0 940,421 $2,313,494 $8,200 $ - $2,321,694 264,435 - 701,667 (264,435) - 2,577,929 8,200 (264,435) 2,321,694 8,122,134 108,203 8,230,337 1,730,282 - 1,730,282 694,196 - 694,196 528,243 19,549 547,792 18,417,733 548,636 18,966,369 29,492,588 676,388 0 30,168,976 1,570,585 203,156 1,773,741 553,272 55,512 608,784 404,169 49,651 453,820 346,164 31,413 377,577 8,612,360 590,838 9,203,198 11,486,550 930,570 0 12,417,120 18,006,038 (254,182) 0 17,751,856 $20,583,967($245,982) ($264,435) $20,073,550 Beginning 86,596 Ending Balance Increases Decreases Transfers Balance $939,921 $500 $ $ - $940,421 939,921 500 0 0 940,421 2,748,251 45,242 54,000 2,847,493 688,393 13,274 - 701,667 13,077,164 2 (54,000) 13,023,166 16,513,808 58,518 0 0 16,572,326 1,157,976 86,596 332,291 36,831 3,803,693 264,155 5,293,960 387,582 Total capital assets being depreciated - net 11,219,848 (329,064) Business -type activities capital assets - net $12,159,769($328,564) 19,443 - (19,413) 1,264,015 369,122 4,048,435 0 30 5,681,572 0 (30) 10,890,754 $0 ($30) $11,831,175 Page 66 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities General government $197,988 Public safety 23,476 Public works 556,056 Recreation 153,050 Total depreciation expense - governmental activities $930,570 Business -type activities: Water $248,272 Sewer 139,310 Total depreciation expense - business -type activities $387,582 Note 6 LONG-TERM DEBT The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. The reporting entity's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. As of December 31, 2019, the long-term debt of the financial reporting entity consisted of the following: Governmental activities: Improvement bonds: G.O. CIP Refunding Bonds, Series 2012A G.O. Capital Improvement Bonds, Series 2014A Bond premium Compensated absences payable Total governmental activities Business -type activities: Compensated absences payable Total City indebtedness Final Authorized Issue Maturity Interest and Outstanding Date Date Rate Issued 12/31/19 12/01/12 12/15/28 2.0 - 2.15 06/05/14 12/15/25 2.0-3.0 5,140,000 $ 4,175,000 3,775,000 2,035,000 145,118 279,173 6,634,291 55,933 $6,690,224 Page 67 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Annual debt service requirements to maturity are as follows: Year Ending December 31, Governmental Activities 2012A G.O. CII' Ref. Bonds 2014A G.O. Cap Imp Bonds Total Principal Interest Principal Interest Principal Tntoro ct 2020 $360,000 $85,458 $375,000 $50,300 $735,000 $135,758 2021 380,000 78,258 350,000 42,800 730,000 121,058 2022 400,000 70,658 350,000 35,800 750,000 106,458 2023 430,000 62,658 325,000 28,800 755,000 91,458 2024 455,000 54,058 325,000 19,050 780,000 73,108 2025 495,000 44,958 310,000 9,300 805,000 54,258 2026 525,000 35,058 - - 525,000 35,058 2027 545,000 24,295 - - 545,000 24,295 2028 585,000 12,578 - - 585,000 12,578 Total $4,175,000 $467,979 $2,035,000 $186,050 $6,210,000 $654,029 It is not practicable to determine the specific year for payment of accrued compensated absences. Change in Long -Term Liabilities Long-term liability activity for the year ended December 31, 2019, was as follows: Balance Balance Due Within 01/01/19 Additions Reductions 12/31/19 One Year Governmental Activities: Bonded debt: Improvement bonds $2,410,000 $ ($375,000) $2,035,000 $375,000 CIP refunding bonds 4,515,000 (340,000) 4,175,000 360,000 Bond premium 164,456 (19,338) 145,118 - Compensated absences 261,592 105,726 (88,145) 279,173 76,870 Total governmental activities $7,351,048 $105,726 ($822,483) $6,63491 $811,870 Business -Type Activities: Compensated absences $53,708 $19,534 ($17,309) $55,933 $4,214 Total business -type activities $49,926 $19,534 ($17,309) $55,933 $4,214 For governmental activities, compensated absences are generally liquidated by the General Fund. All long- term bonded indebtedness outstanding at December 31, 2019 is backed by the full faith and credit of the City, including improvement bond issues. Delinquent taxes receivable at December 31, 2019 were $26,085. Page 68 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Revenues Pledged Note 7 DEFINED BENFIT PENSION PLANS A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. Page 69 of 284 Revenue Pledged Current Year Percent of Principal Pledged Remaining Use of Total Term of Principal and Interest Revenue Bond Issue Proceeds Type Debt Service Pledge and Interest Paid Received Refunding of 2008A capital improvement 2012A bonds Property taxes 100% 2017-2028 $4,642,979 $432,753 $430,000 Special assessments 62% Water fund contribution 27% 2014A Street reconstruction Property taxes 11% 2015 -2025 $2,221,050 $432,800 $354,911 Note 7 DEFINED BENFIT PENSION PLANS A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. Page 69 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 1. GERF Benefits Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of method 1 or method 2 formulas. Only method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for a Coordinated Plan members is 1.2% of average salary for each of the first ten years and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7% of average salary for all years of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be equal to 50 percent of the cost -of - living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. Page 70 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 1. GERF Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2019. The City was required to contribute 7.50% for Coordinated Plan members. The City's contributions to the GERF for the year ended December 31, 2019, were $63,361. The City's contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. The City's contributions to the PEPFF for the year ended December 31, 2019 were $168,677. The City's contributions were equal to the required contributions as set by state statute. D. PENSION COSTS 1. GERF Pension Costs At December 31, 2019, the City reported a liability of $641,338 for its proportionate share of the GERF's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million to the fund in 2019. The State of Minnesota is considered a non -employer contributing entity and the state's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $19,999. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019 the City's proportionate share was .01160% which was a decrease of .0003% from its proportionate share measured as of June 30, 2018. City's proportionate share of the net pension liability $641,338 State of Minnesota's proportionate share of the net pension liability associated with the City 19,999 Total $661,337 For the year ended December 31, 2019, the City recognized pension expense of $71,892 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $1,498 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. At December 31, 2019, the City reported its proportionate share of the GERF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Page 71 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Differences between expected and actual economic experience Changes in actuarial assumptions Net collective difference between projected and actual investment earnings Changes in proportion Contributions paid to PERA subsequent to the measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources $17,670 50,091 - 65,049 8,820 15,733 31,999 - $58,489 $130,873 $31,999 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2019. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2. PEPFF Pension Costs At December 31, 2019, the City reported a liability of $990,079 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2018, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the City's proportionate share was .0930%, which was an increase of .0051% from its proportionate share measured as of June 30, 2018. The City also recognized $12,555 for the year ended December 31, 2019, as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whoever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. Page 72 of 284 Pension Year Ended Expense December 31, Amount 2020 ($36,333) 2021 (51,596) 2022 (17,486) 2023 1,032 Thereafter - 2. PEPFF Pension Costs At December 31, 2019, the City reported a liability of $990,079 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2018, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the City's proportionate share was .0930%, which was an increase of .0051% from its proportionate share measured as of June 30, 2018. The City also recognized $12,555 for the year ended December 31, 2019, as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whoever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. Page 72 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 For the year ended December 31, 2018, the City recognized pension expense of $148,261 for its proportionate share of the PEPFF's pension expense. At December 31, 2019, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Net collective difference between projected and actual investment earnings Changes in proportion Contributions paid to PERA subsequent to the measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources $42,277 $158,843 858,050 1,126,217 - 202,811 219,103 188,598 87,901 - $1,207,331 $1,676,469 $87,901 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2019 actuarial valuation was determined using an individual entry -age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50 percent per year Active Member Payroll Growth 3.25 percent per year Investment Rate of Return 7.50 percent Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after Page 73 of 284 Pension Year Ended Expense December 31, Amount 2020 ($65,560) 2021 (139,631) 2022 (404,614) 2023 23,955 2024 28,811 Thereafter - E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2019 actuarial valuation was determined using an individual entry -age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50 percent per year Active Member Payroll Growth 3.25 percent per year Investment Rate of Return 7.50 percent Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after Page 73 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 retirement for retirees are assumed to be 1.25 percent per year for the General Employees Plan, 1.0 percent per year for the Police and Fire Plan. Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The most recent four-year experience study for Police and Fire Plan was completed in 2016. The following changes in actuarial assumptions and plan provisions occurred in 2019: General Employees Fund Changes in Actuarial Assumptions: • The mortality projection scale was changed from MP -2017 to MP -2018. Changes in Plan Provisions: • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. Police and Fire Fund Changes in Actuarial Assumptions • The mortality projection scale was changed from MP -2017 to MP -2018 Changes in the Plan Provisions • There have been no changes since the prior valuation. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long -Term Expected Asset Class Allocation Real Rate of Return Domestic Equity 35.5% 5.10% Private Markets 25.0% 5.90% Fixed Income 20.0% 0.75% International Equity 17.5% 5.90% Cash Equivalents 2.0% 0.00% Total 100% Page 74 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 F. DISCOUNT RATE The discount rate used to measure the total pension liability in 2019 was 7.50%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund and the Police and Fire Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY SENSITIVITY The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1%Decrease in 1% Increase in Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate City's proportionate share of the GERF net pension liability $1,054,325 $641,338 $300,335 City's proportionate share of the PEPFF net pension liability $2,164,129 $ 990,079 $19 The net pension liability is generally liquidated by the Employee Benefits Internal Service Fund. H. PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.nmpera.org. I. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2019 is as follows: GERF $73,390 PEPFF 148,261 Total $221,651 Note 8 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS The City does not provide post employment benefits other than permitting retired employees to continue in the City's group health insurance plan, as required by Minnesota Statutes. The retiree is required to pay 100% of Page 75 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 the premium. The premium charged is age adjusted, so there is not an implicit rate subsidy for retirees who continue on the plan. The City is also required by State Statute to provide post -employment health care benefits for retired employees disabled in the line of duty. The City hired an actuary and determined the liability resulting from disability is not material and therefore not included in these financial statements. Note 9 INTERFUND TRANSFERS During 2019, the City made routine interfund transfers to accumulate resources to be used for capital improvements and to fund debt service expenditures. Note 10 CONTINGENCIES AND COMMITMENTS A. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2019. B. FIRE PROTECTION AND EMERGENCY SERVICES The City contracts with the City of Bayport to provide fire protection and emergency services. During 2015, the City entered into an additional agreement with the City of Bayport for a new fire station. The cost-sharing method for financing the fire station project is based on the "fair share formula" currently used to calculate the annual operating cost that the City of Bayport charges the City for fire protection and emergency services. The total amount expended for each the years ended December 31, 2019 and 2018 was $92,821. The remaining commitment is $1,021,037 and is to be paid in annual installments of $92,821 for the next 11 years. Page 76 of 284 Major Funds Renewal and Budgeted Capital Street Replacement Nonmajor Projects and Improvement Reconstruction Capital Water Utility Storm Sewer Governmental General Fund Equpiment Bonds of 2014A Fund Project Fund Fund Utility Fund Funds Total Transfers out: Governmental activities: General Fund $ - $609,812 $149,000 $397,900 $ - $ - $ - $523,000 $1,679,712 Budgeted Projects and Equipment - - - - - 7,050 2,583 - 9,633 Renewal and Replacement Capital Project Fund - - - - - - - 45,771 45,771 Nonmajor Governmental Funds 392,167 86,412 - 29,326 - - - - 507,905 Business -type activities: Water Utility Fund - 86,600 104,000 - 200,341 - - 47,565 438,506 Sewer Utility Fund - 47,777 - - 165,171 - - 17,913 230,861 Storm Sewer Utility Fund - 5,750 - - - - - - 5,750 Total transfers $392,167 $836,351 $253,000 $427,226 $365,512 $7,050 $2,583 $634,249 $2,918,138 During 2019, the City made routine interfund transfers to accumulate resources to be used for capital improvements and to fund debt service expenditures. Note 10 CONTINGENCIES AND COMMITMENTS A. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2019. B. FIRE PROTECTION AND EMERGENCY SERVICES The City contracts with the City of Bayport to provide fire protection and emergency services. During 2015, the City entered into an additional agreement with the City of Bayport for a new fire station. The cost-sharing method for financing the fire station project is based on the "fair share formula" currently used to calculate the annual operating cost that the City of Bayport charges the City for fire protection and emergency services. The total amount expended for each the years ended December 31, 2019 and 2018 was $92,821. The remaining commitment is $1,021,037 and is to be paid in annual installments of $92,821 for the next 11 years. Page 76 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 11 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance coverage is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess various amounts. The City retains risk for deductible portions. These deductibles are considered immaterial to the financial statements. Employee health and disability insurance is provided through commercial insurance. The City does not have a deductible or yearly maximum on this insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. Note 12 FUND BALANCE A. CLASSIFICATIONS Definitions of fund balance classifications are included in Note 1.0. At December 31, 2019, a summary of the governmental fund balance classifications are as follows: Nonspendable: Prepaid items Restricted for: Law enforcement Tax increment Debt service Small cities grant Moelter Park improvements Total restricted Assigned for: Compensated absences Ensuing year's budget Capital purposes Street reconstruction Economic development Total assigned Unassigned Total Budgeted Renewal and Projects and G.O. Capital Replacement Other Economic TIF Equipment Improvement Street Capital Project Governmental General Fund Development District #2 Revolving Bonds of 2014 Reconstruction Fund Funds Total $80,898 $ $ $ $ $ $ $ $80,898 722,286 - 22,426 22,426 - 235,696 235,696 - 119,842 842,128 _ 34,019 34,019 0 0 0 0 722,286 0 0 411,983 1,134,269 207,000 - - - - - - - 207,000 100,000 - - - - - - - 100,000 - - - 4,209,641 - - 5,139,343 3,419,984 12,768,968 - - - - - 3,066,047 - - 3,066,047 35,516 35,516 307,000 35,516 0 4,209,641 0 3,066,047 5,139,343 3,419,984 16,177,531 5,124,736 (407,872) 4,716,864 $5,512,634 $35,516 ($407,872) $4,209,641 $722,286 $3,066,047 $5,139,343 $3,831,967 $22,109,562 Page 77 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 B. MINIMUM UNASSIGNED FUND BALANCE POLICY The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the General Fund. The most significant revenue source of the General Fund is property taxes. This revenue source is received in two installments during the year — June and December. As such, it is the City's goal to begin each fiscal year with sufficient working capital to fund operations between each semi-annual receipt of property taxes. The policy states the City will maintain an unassigned fund balance in the General Fund for the following purposes and in the following amounts: • For cash flow needs — an amount should be established equal to 45-55% of the subsequent year's budgeted operating expenditures. • For emergencies or contingencies (such as revenue shortfalls or unexpected budget over runs) — an amount should be established equal to 10 — 15% of the ensuing year's General Fund operating expenditures. At December 31, 2019, the unassigned fund balance of the General Fund was $5,124,736, which sufficiently meets the cash flow and emergency needs described above. Note 13 MAJOR TAXPAYER The City has one major taxpayer, Xcel Energy. The total tax capacity value for this taxpayer represented approximately 39.32% of the City's total tax capacity value for taxes payable in 2019. Note 14 TAX ABATEMENTS — PAY-AS-YOU-GO TAX INCREMENT The City provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage private development, redevelopment, renovation and renewal, growth in low -to -moderate -income housing, and economic development within the City. TIF captures the increase in tax capacity and property taxes from development or redevelopment to provide funding for the related project. The City has two tax increment pay-as-you-go agreements. The agreements are not a general obligation of the City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the City. Details of the pay-as-you-go notes are as follows: TIF District #1-1, Oakgreen Project: Issued in 2010 in the principal sum of $1,200,000 with an interest rate of 6.90% per annum. Principal and interest shall be paid on February 1, 2011, and each February 1 and August 1 thereafter to and including February 1, 2026. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 80% of all tax increment received in the prior six months. The payment reimburses the developer for certain public improvements. Principal and interest payments will be completed February 1, 2026. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2026. The abatements (TIF note payments) for the years ended December 31, 2019 and 2018 were $189,774 and $181,588. At December 31, 2019 and 2018, the principal amount outstanding on the note was $915,640 and $1,089,189. Page 78 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 TIF District #1-3, Green Twig Villas Project: Issued in 2018 in the principal sum of $50,000 with an interest rate of 5% per annum. Principal and interest shall be paid on August 1, 2021 and each February 1 and August 1 thereafter to and including August 1, 2023. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for certain public improvements. Principal and interest payments will be completed August 1, 2023. The City shall have no obligation to pay any unpaid balance of principal of principal or accrued interest that may remain after the final payment on August 1, 2023. There were no abatements (TIF note payments) for the year ended December 31, 2019. Note 15 CONDUIT DEBT OBLIGATIONS From time to time, the City has issued Rental Housing or Industrial Revenue Bonds to provide financial assistance to private -sector entities for the acquisition and construction of rental housing, office space or a clinic deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2019, there were three series of Industrial Revenue Bonds outstanding. The principal amount payable at December 31, 2019 was $68,930,000. Note 16 PRESENTATION OF PERFORMANCE DEPOSITS For the year ended December 31, 2019, the City implemented GASB Statement No. 84, Fiduciary Activities. Based on the guidance provided by GASB 84, the City's performance deposits no longer meet the definition of a fiduciary activity. Therefore, the amounts and activity previously reported in fiduciary funds are now reported in the general fund. GASB 84 also requires that changes resulting from the statement be applied retroactively. As such, $454,983 of Cash and Investments, $50,359 Account Receivable, $9,060 Account Payable, and $496,282 Deposits Payable previously presented in fiduciary funds of the City's 2018 financial statements are now presented in the 2018 comparative column of the General Fund of the City's 2019 financial statements. This reclassification did not have an effect on beginning net position or fund balance. Page 79 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 17 OPERATING LEASES The City leases space in and above its water tower. The space is used for antennas and other equipment necessary to provide radio communications. Lease terms are as follows: Location Lessee 2019 Lease Amount Annual Lease Expiration Adjustment Factor* Date 58th and Norrell Sprint PCS $47,148 Greater of CPI or 5% 9/20/2019 *Amounts for future lease receipts are unavailable because they are based on the Consumer Price Index. Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Board (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 89 Accounting for Interest Cost Incurred before the End of a Construction Period. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting periods beginning after December 15, 2020. Statement No. 92 Replacement of Inter bank Offered Rates. The provisions of this Statement are effective for reporting periods beginning after December 31, 2021. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statement No. 87 may have a material impact. Note 19 SUBSEQUENT EVENTS AND UNCERTAINTIES The COVID-19 pandemic continues to cause rapidly changing disruptions world-wide. Management has evaluated these conditions and believes that it is not possible to reasonably estimate the financial impact, if any, of COVID-19 on the City's financial statements at December 31, 2019. Page 80 of 284 REQUIRED SUPPLEMENTARY INFORMATION Page 81 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Statement 9 Page 1 of 4 Total revenues 5,597,222 5,548,222 5,700,006 Variance 6,159,882 Expenditures: with Final General government: Budget - Mayor and city council: 2019 Actual Positive 2018 Actual Current: Budgeted Amounts Amounts (Negative) Amounts Personal services Original Final 66,356 (536) 59,307 Revenues: 500 500 447 53 1,221 Property taxes $5,090,246 $5,090,246 $5,111,060 $20,814 $5,352,546 Abatement of property taxes - (49,000) (48,882) 118 (54,056) Payment in lieu of taxes 71,000 71,000 66,955 (4,045) 72,030 Total property taxes 5,161,246 5,112,246 5,129,133 16,887 5,370,520 Intergovernmental: 240,225 240,225 239,075 1,150 232,454 PERA aid 2,040 2,040 2,040 - 2,040 Police aid 80,000 80,000 101,537 21,537 96,571 Recycling grant 14,356 14,356 14,514 158 14,356 Safe and Sober grant 7,000 7,000 2,689 (4,311) 4,305 Small Cities grant - - - - 31,721 Other public works grants - - 10,202 10,202 1,088 Total intergovernmental 103,396 103,396 130,982 27,586 150,081 Licenses and permits 130,280 130,280 124,372 (5,908) 224,186 Charges for services: 7,996 7,996 7,944 52 10,846 General government 14,800 14,800 20,561 5,761 50,400 Administrative - Enterprise Fund 5,500 5,500 5,500 - 5,350 Development charge 40,000 40,000 11,134 (28,866) 133,225 Total charges for services 60,300 60,300 37,195 (23,105) 188,975 Fines and forfeits 40,000 40,000 48,477 8,477 48,768 Investment income - - 119,277 119,277 55,410 Refunds and reimbursements 102,000 102,000 110,570 8,570 121,942 Total revenues 5,597,222 5,548,222 5,700,006 151,784 6,159,882 Expenditures: General government: Mayor and city council: Current: Personal services 65,820 65,820 66,356 (536) 59,307 Materials and supplies 500 500 447 53 1,221 Other services and charges 42,167 42,167 36,112 6,055 30,064 Total mayor and city council 108,487 108,487 102,915 5,572 90,592 City administration: Current: Personal services 240,225 240,225 239,075 1,150 232,454 Materials and supplies 1,600 1,600 1,730 (130) 1,968 Other services and charges 48,895 48,895 50,124 (1,229) 47,868 Total City administration 290,720 290,720 290,929 (209) 282,290 Legal: Current: Personal services 27,000 27,000 21,315 5,685 26,770 General management and building: Current: Materials and supplies 7,996 7,996 7,944 52 10,846 Other services and charges 157,620 157,620 163,407 (5,787) 152,370 Total general management and building 165,616 165,616 171,351 (5,735) 163,216 Page 82 of 284 See accompanying notes to the required supplementary information. CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Expenditures: (continued) General government: (continued) Elections: Current: Personal services Materials and supplies Other services and charges Total elections Finance: Current: Personal services Materials and supplies Other services and charges Total finance Computer system: Current: Materials and supplies Other services and charges Total computer system Audit: Current: Personal services Insurance: Current: Other services and charges Assessing: Current: Personal services Planning and zoning: Current: Personal services Other services and charges Total planning and zoning Engineering: Current: Other services and charges General contingency: Current: Other services and charges Total general government Budgeted Amounts Original Final Statement 9 Page 2 of 4 Variance with Final Budget - 2019 Actual Positive 2018 Actual Amounts (Negative) Amounts $ $ $ $ $3,129 272 830 830 830 850 830 830 830 0 4,251 216,000 216,000 193,301 22,699 175,055 1,600 1,600 1,496 104 1,736 37,105 37,105 32,377 4,728 27,706 254,705 254,705 227,174 27,531 204,497 2,000 2,000 3,995 (1,995) 1,986 42,000 42,000 30,423 11,577 32,268 44,000 44,000 34,418 9,582 34,254 35,000 35,000 32,900 2,100 33,200 468,205 468,205 453,003 15,202 419,765 26,000 26,000 25,670 330 25,107 30,000 30,000 23,725 6,275 29,725 1,100 1,100 750 350 1,050 31,100 31,100 24,475 6,625 30,775 25,000 25,000 22,988 2,012 29,471 15,000 30,000 29,828 172 6,464 1,491,663 1,506,663 1,437,796 68,867 1,350,652 Page 83 of 284 See accompanying notes to the required supplementary information. CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Expenditures: (continued) Public safety: Police department: Current: Personal services Materials and supplies Other services and charges Capital outlay Total police department Building inspections: Current: Personal services Materials and supplies Other services and charges Total building inspections Fire protection: Current: Materials and supplies Other services and charges Total fire protection Civil defense: Current: Other services and charges Animal control: Current: Materials and supplies Other services and charges Total animal control Total public safety Statement 9 Page 3 of 4 Variance with Final Budget - 2019 Actual Positive 2018 Actual Budgeted Amounts Amounts (Negative) Amounts Original Final $1,196,690 $1,196,690 $1,124,316 $72,374 $1,081,908 49,800 49,800 37,620 12,180 41,057 281,060 281,060 246,016 35,044 237,766 - - 3,000 (3,000) - 1,527,550 1,527,550 1,410,952 116,598 1,360,731 14,200 14,200 10,341 90,610 90,610 88,905 1,705 86,527 950 950 696 254 649 16,455 16,455 13,937 2,518 14,349 108,015 108,015 103,538 4,477 101,525 Current: 2,000 2,000 - 2,000 - 261,200 261,200 290,660 (29,460) 251,417 263,200 263,200 290,660 (27,460) 251,417 Total snow removal 153,000 1,120 1,120 1,060 60 95 200 200 76 124 238 500 500 422 78 1,020 700 700 498 202 1,258 1,900,585 1,900,585 1,806,708 93,877 1,715,026 Public works: Street maintenance: Current: Personal services 29,160 29,160 25,751 3,409 24,584 Materials and supplies 14,200 14,200 10,341 3,859 14,714 Other services and charges 38,310 38,310 26,980 11,330 29,160 Total street maintenance 81,670 81,670 63,072 18,598 68,458 Snow removal: Current: Materials and supplies 1,000 1,000 1,426 (426) 361 Other services and charges 152,000 217,000 216,470 530 193,893 Total snow removal 153,000 218,000 217,896 104 194,254 Sanitation: Current: Other services and charges 222,600 222,600 223,352 (752) 213,892 Street lighting: Current: Other services and charges 66,000 66,000 61,850 4,150 64,077 Page 84 of 284 See accompanying notes to the required supplementary information. CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Expenditures: (continued) Public works: (continued) Arborist: Current: Materials and supplies Other services and charges Total arborist Tree removal and planting: Current: Other services and charges Total public works Parks and recreation: Parks, playgrounds and rinks: Current: Personal services Materials and supplies Other services and charges Total parks and recreation Total expenditures Revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 Statement 9 Page 4 of 4 Variance with Final Budget - 2019 Actual Positive 2018 Actual Budgeted Amounts Amounts (Negative) Amounts Original Final $150 $150 $148 $2 $84 705 705 844 (139) 792 855 855 992 (137) 876 35,000 35,000 35,000 - 31,855 559,125 624,125 602,162 21,963 573,412 71,190 71,190 65,942 5,248 62,182 31,600 31,600 26,240 5,360 28,813 80,325 80,325 58,253 22,072 77,468 183,115 183,115 150,435 32,680 168,463 4,134,488 4,214,488 3,997,101 217,387 3,807,553 1,462,734 1,333,734 1,702,905 369,171 2,352,329 - - 392,167 392,167 - (1,666,400) (1,666,400) (1,679,712) (13,312) (2,097,503) (1,666,400) (1,666,400) (1,287,545) 378,855 (2,097,503) ($203,666) ($332,666) 415,360 $748,026 254,826 5,097,274 4,842,448 $5,512,634 $5,097,274 Page 85 of 284 See accompanying notes to the required supplementary information. CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31. 2019 Statement 10 * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 86 of 284 State's City's Proportionate Proportionate Share of the Net City's City's City's Share (Amount) Pension Liability and Proportionate Share Proportionate Proportionate of the Net the State's Proportionate of the Net Pension Plan Fiduciary Share Share (Amount) Pension Share of the Net Liability as a Net Position as Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its a Percentage Date Ending the Net Pension Pension Associated with Associated with Covered Covered of the Total June 30 December 31 Liability Liability (a) City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Pension Liability 2015 2015 0.0121% $627,085 $ - $627,085 $710,898 88.2% 78.2% 2016 2016 0.0118% 958,101 12,561 970,662 733,895 132.3% 68.9% 2017 2017 0.0116% 740,536 9,331 749,867 748,855 100.1% 75.9% 2018 2018 0.0119% 660,163 21,672 681,835 798,381 85.4% 79.5% 2019 2019 0.0116% 641,338 19,999 661,337 823,712 80.3% 80.2% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 86 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF PENSION CONTRIBUTIONS* - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2019 * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 87 of 284 Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered Ending (a) Contribution (b) (a -b) (c) Payroll (b/c) December 31, 2015 $54,492 $54,492 $ - $726,554 7.5% December 31, 2016 54,655 54,655 - 728,742 7.5% December 31, 2017 58,553 58,553 - 780,704 7.5% December 31, 2018 60,679 60,679 - 809,051 7.5% December 31, 2019 63,361 63,361 - 844,814 7.5% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 87 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY* - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2019 Statement 12 * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 88 of 284 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as (Percentage) of of the Net Percentage of its a Percentage Measurement Fiscal Year the Net Pension Pension Covered Covered of the Total Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability June 30, 2015 December 31, 2015 0.0920% $1,045,335 $841,195 124.3% 86.6% June 30, 2016 December 31, 2016 0.0910% 3,651,988 879,643 415.2% 63.9% June 30, 2017 December 31, 2017 0.0850% 1,147,601 875,089 131.1% 85.4% June 30, 2018 December 31, 2018 0.0879% 936,923 926,115 101.2% 88.8% June 30, 2019 December 31, 2019 0.0930% 990,079 981,741 100.8% 89.3% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 88 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS* - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2019 * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 89 of 284 Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered Ending (a) Contribution (b) (a -b) (c) Payroll (b/c) December 31, 2015 $143,144 $143,144 $ - $883,608 16.20% December 31, 2016 139,111 139,111 - 858,712 16.20% December 31, 2017 146,925 146,925 - 906,946 16.20% December 31, 2018 155,119 155,119 - 957,525 16.20% December 31, 2019 168,677 168,677 - 995,142 16.95% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. Page 89 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 Note A LEGAL COMPLIANCE — BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the department level for the General Fund. Note B PENSION INFORMATION PERA — General Emolovees Retirement Fund 2019 Changes Changes in Actuarial Assumptions - The mortality projection scale was changed from MP -2017 to MP -2018 Changes in the Plan Provisions - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes is Actuarial Assumptions: - The mortality projection scale was changed from MP -2015 to MP -2017. - The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes Changes is Actuarial Assumptions: - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non -vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non - vested deferred member liability. - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 Changes Changes in Actuarial Assumptions: - The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. - The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. - Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Page 90 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 PERA — Public Emulovees Police and Fire Fund 2019 Changes Changes in Actuarial Assumptions - The mortality projection scale was changed from MP -2017 to MP -2018 Changes in the Plan Provisions - There have been no changes since the prior valuation. 2018 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP -2016 to MP -2017. 2017 Changes Changes in Actuarial Assumptions: - The single discount rate was changed from 5.6% to 7.5%. - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. - Assumed rates of retirement were changed, resulting in fewer retirements. - The Combined Service Annuity (CSA) load was 30 percent for vested and non -vested deferred members. The CSO has been changed to 33 percent for vested members and 2 percent for non -vested members. - The base mortality table for healthy annuitants was changed from the RP -2000 fully generational table to the RP -2014 fully generational table (with a base year for 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale 1\4P-2016. The base mortality table for disabled annuitants was changed from the RP -2000 disabled mortality table to the mortality tables assumed for healthy retirees. - Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the selection period of three years were adjusted, resulting in more expected terminations overall. - Assumed percentage of married female members decreased from 65 percent to 60 percent. - Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. - The assumed percentage of female members electing Joint and Survivor annuities was increased. - The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. 2016 Changes Changes in Actuarial Assumptions: - The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. Page 91 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 - The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. - The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Page 92 of 284 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS Page 93 of 284 - This page intentionally left blank - Page 94 of 284 NONMAJOR GOVERNMENTAL FUNDS Page 95 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Assets Cash and investments Accrued interest receivable Accounts receivable - net Total assets Liabilities and Fund Balance Liabilities: Accounts payable Contracts payable Unearned revenue Total liabilities Fund balance: Restricted Assigned Total fund balance Total liabilities and fund balance Special Debt Capital Revenue Service Project $351,539 $118,810 $3,433,135 1,470 1,032 20,868 Statement 14 Totals Nonmajor Governmental Funds 2019 2018 $3,903,484 $4,021,213 23,370 16,341 - 180 $353,009 $119,842 $3,454,003 $3,926,854 $4,037,734 $94,887 $ - $ - $94,887 $90,974 - - - - 3,742 94,887 0 0 94,887 94,716 258,122 119,842 34,019 411,983 365,721 - - 3,419,984 3,419,984 3,577,297 258,122 119,842 3,454,003 3,831,967 3,943,018 $353,009 $119,842 $3,454,003 $3,926,854 $4,037,734 Page 96 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 15 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Revenues: Intergovernmental Tax increment Charges for services Fines and forfeits Investment income Refunds and reimbursements Total revenues Expenditures: Current: General government Public safety Public works Parks and recreation Capital outlay Debt service: Principal Interest Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 Totals Special Debt Capital Nonmajor Governmental Funds Revenue Service Project 2019 2018 $ - $ - $ - $ - $13,816 237,217 - - 237,217 226,985 - - 44,905 44,905 145,481 10,099 - - 10,099 4,360 7,174 4,359 103,014 114,547 73,176 651 - - 651 791 255,141 4,359 147,919 407,419 464,609 193,936 - 53 193,989 221,586 - - - - 4,682 - - 1,523 1,523 - 3,100 - 13,449 16,549 - - 340,000 - 340,000 610,000 - 92,753 - 92,753 108,419 197,036 432,753 15,025 644,814 944,687 58,105 (428,394) 132,894 (237,395) (480,078) - 430,000 204,249 634,249 1,891,163 - - (507,905) (507,905) (2,359,504) 0 430,000 (303,656) 126,344 (468,341) 58,105 1,606 (170,762) 200,017 118,236 3,624,765 (111,051) 3,943,018 (948,419) 4,891,437 $258,122 $119,842 $3,454,003 $3,831,967 $3,943,018 Page 97 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Assets Cash and investments Accrued interest receivable Accounts receivable Total assets Liabilities and Fund Balance Liabilities: Accounts payable Total liabilities Fund balance: Restricted Assigned Total fund balance Total liabilities and fund balance 202 Forfeiture 205 TIF District #3 District #1 Oakgreen V Statement 16 Totals Nonmajor Special Revenue Funds $22,296 $329,243 $ $351,539 $289,731 130 1,340 1,470 1,080 - - - 180 $22,426 $330,583 $0 $353,009 $290,991 $ - $94,887 0 94,887 22,426 235,696 $ $94,887 $90,974 0 94,887 90,974 258,122 200,017 $22,426 $330,583 $0 $353,009 $290,991 Page 98 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, Statement 17 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Revenues: Intergovernmental Tax increment Fines and forfeits Investment income Refunds and reimbursements Total revenues Expenditures: Current: General government Public safety Capital outlay Total expenditures Net change in fund balance Fund balance - January 1 Fund balance - December 31 207 TIF 202 Forfeiture 205 TIF District #3 and Seizure District #I Oakgreen V 237,217 10,099 - 556 6,618 651 - 11,306 243,835 Totals Nonmajor Special Revenue Funds 2019 2018 $ $ - $13,816 237,217 226,985 10,099 4,360 7,174 2,368 651 - 0 255,141 247,529 Page 99 of 284 193,936 193,936 218,864 - - - 4,682 3,100 - 3,100 - 3,100 193,936 0 197,036 223,546 8,206 49,899 0 58,105 23,983 14,220 185,797 200,017 176,034 $22,426 $235,696 $0 $258,122 $200,017 Page 99 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 Assets Cash and investments Accrued interest receivable Total assets Liabilities and Fund Balance Liabilities Fund balance: Restricted 528 G.O. CIP Refunding Bonds of 2012A 2019 $118,810 1,032 $119,842 Statement 18 Total Nonmajor Debt Service Funds 2018 $117,324 912 $118,236 119,842 118,236 Total liabilities and fund balance $119,842 $118,236 Page 100 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, Statement 19 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Revenues: Investment income Expenditures: Debt service: Principal Interest Total expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance - January 1 Fund balance - December 31 528 G.O. CIP Refunding Bonds of 2012A Total Nonmajor Debt Service Funds 2019 2018 $4,359 $4,359 $2,803 340,000 340,000 610,000 92,753 92,753 108,419 432,753 432,753 718,419 (428,394) (428,394) (715,616) 430,000 430,000 700,949 430,000 430,000 700,949 1,606 1,606 (14,667) 118,236 118,236 132,903 $119,842 $119,842 $118,236 Page 101 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2019 With Comparative Totals For December 31, 2018 712 Storm Sewer Renewal 405 Park 407 Moelter / Replacement Development Park Fund Assets Cash and investments $525,662 $95,123 $1,863,471 Accrued interest receivable 3,355 676 11,332 Total assets $529,017 $95,799 $1,874,803 Liabilities and Fund Balance Liabilities Accounts payable - Contracts payable - - - Unearned revenue - - - Total liabilities 0 0 0 Fund balance Restricted - 34,019 - Assigned 529,017 61,780 1,874,803 Total fund balance 529,017 95,799 1,874,803 Total liabilities and fund balance $529,017 $95,799 $1,874,803 Page 102 of 284 Statement 20 734 Water Tower 735 Well 736 Sewer Totals Nonmajor Capital Project Rehabilitation Rehabilitation Rehabilitation Funds 2019 2018 $717,848 $150,334 $80,697 $3,433,135 $3,614,158 4,192 913 400 20,868 14,349 $722,040 $151,247 $81,097 $3,454,003 $3,628,507 Page 103 of 284 - - - - 3,742 0 0 0 0 3,742 - - - 34,019 47,468 722,040 151,247 81,097 3,419,984 3,577,297 722,040 151,247 81,097 3,454,003 3,624,765 $722,040 $151,247 $81,097 $3,454,003 $3,628,507 Page 103 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Other financing sources (uses) Transfers in - - - - 712 Storm Transfers out - - (392,167) (86,412) Sewer Total other financing sources (uses) 0 0 500 Capital (86,412) Renewal / Net change in fund balance 405 Park 407 Moelter Revolving 572 City Hall Replacement Fund balance - January 1 Development Park Fund Improvements Fund Revenues: $529,017 $95,799 $0 $0 $1,874,803 Charges for services: Rents $ - $ - $ - $ - $ - Connection charges - - - - - Park dedication fees - - - - - Investment income 15,111 3,041 7,778 1,715 50,963 Refunds and reimbursements - - - - - Total revenues 15,111 3,041 7,778 1,715 50,963 Expenditures: Current: General government - - - 53 - Public works - - - - - Parks and recreation 1,523 - - - - Capital outlay - 13,449 - - - Total expenditures 1,523 13,449 0 53 0 Revenues over (under) expenditures 13,588 (10,408) 7,778 1,662 50,963 Other financing sources (uses) Transfers in - - - - 138,771 Transfers out - - (392,167) (86,412) (29,326) Total other financing sources (uses) 0 0 (392,167) (86,412) 109,445 Net change in fund balance 13,588 (10,408) (384,389) (84,750) 160,408 Fund balance - January 1 515,429 106,207 384,389 84,750 1,714,395 Fund balance - December 31 $529,017 $95,799 $0 $0 $1,874,803 Page 104 of 284 Statement 21 734 Water Tower 735 Well 736 Sewer Totals Nonmajor Capital Project Rehabilitation Rehabilitation Rehabilitation Funds 2019 2018 $44,905 $ - $ - $44,905 $42,767 - - - - 102,714 18,572 4,044 1,790 103,014 68,005 - - - - 791 63,477 4,044 1,790 147,919 214,277 - - - 53 2,722 - - - 1,523 - - - - 13,449 - 0 0 0 15,025 2,722 63,477 4,044 1,790 132,894 211,555 40,479 7,086 17,913 204,249 1,190,214 - - - (507,905) (2,359,504) 40,479 7,086 17,913 (303,656) (1,169,290) 103,956 11,130 19,703 (170,762) (957,735) 618,084 140,117 61,394 3,624,765 4,582,500 $722,040 $151,247 $81,097 $3,454,003 $3,624,765 Page 105 of 284 - This page intentionally left blank - Page 106 of 284 STATISTICAL SECTION (UNAUDITED) Page 107 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) Governmental activities: Net investment in capital assets Restricted Unrestricted Total governmental activities net position Business -type activities: Net investment in capital assets Unrestricted Total business -type activities net position Primary government: Net investment in capital assets Restricted Unrestricted Total primary government net position 2010 2011 2012 2013 $11,519,528 $11,381,436 $11,172,202 $11,849,446 1,234,835 1,152,789 1,007,208 842,210 13,308,712 13,958,689 15,242,157 15,826,327 $26,063,075 $26,492,914 $27,421,567 $28,517,983 $6,752,968 $6,964,787 $6,746,344 $6,604,514 1,166,853 1,135,679 1,279,874 1,448,788 $7,919,821 $8,100,466 $8,026,218 $8,053,302 $18,272,496 $18,346,223 $17,918,546 $18,453,960 1,234,835 1,152,789 1,007,208 842,210 14,475,565 15,094,368 16,522,031 17,275,115 $33,982,896 $34,593,380 $35,447,785 $36,571,285 Note: GASB 68 was implemented in 2015, net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2015 was not restated. Page 108 of 284 Table 1 2014 2015 2016 2017 2018 2019 $11,756,453 $14,030,120 $11,918,132 $12,802,720 $13,494,510 $13,738,432 1,355,960 2,464,368 2,353,250 1,916,158 1,576,498 1,648,718 17,258,019 13,890,903 15,317,945 16,497,229 17,128,951 18,530,040 $30,370,432 $30,385,391 $29,589,327 $31,216,107 $32,199,959 $33,917,190 $6,774,330 $8,069,044 $12,010,748 $11,741,857 $12,159,769 $11,831,175 1,746,016 1,923,277 1,948,701 2,029,552 2,547,805 2,677,109 $8,520,346 $9,992,321 $13,959,449 $13,771,409 $14,707,574 $14,508,284 $18,530,783 $22,099,164 $23,928,880 $24,544,577 $25,654,279 $25,569,607 1,355,960 2,464,368 2,353,250 1,916,158 1,576,498 1,648,718 19,004,035 15,814,180 17,266,646 18,526,781 19,676,756 21,207,149 $38,890,778 $40,377,712 $43,548,776 $44,987,516 $46,907,533 $48,425,474 Page 109 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) Expenses Governmental activities: General government Public safety Public works Parks and recreation Interest on long-term debt Total governmental activities expenses Business -type activities: Water Sanitary sewer Storm sewer Total business -type activities expenses Total primary government expenses Program revenues Governmental activities: Charges for services: Licenses and permits Administrative - Enterprise Fund Direct charges to developers Connection charges Park fees Refunds and reimbursements Other activities Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Water Sanitary sewer Storm sewer Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total primary government program revenues 2010 2011 2012 2013 66,420 $1,575,297 $1,381,589 $1,455,359 $1,601,402 1,407,161 1,411,6 90 1,431,594 1,497,765 980,630 999,473 1,128,249 1,080,437 201,716 239,100 248,243 269,929 280,548 275,196 377,713 463,537 4,445,352 4,307,048 4,641,158 4,913,070 15,943 466,218 472,040 470,266 468,932 740,184 746,656 668,588 695,817 108,467 48,360 43,904 58,239 1,314,869 1,267,056 1,182,758 1,222,988 $5,760,221 $5,574,104 $5,823,916 $6,136,058 $197,181 $131,081 $163,986 $90,910 66,420 69,425 3,830 4,180 147,098 18,824 - - 241,440 - - - 117,735 114,847 125,243 108,838 180,639 107,860 102,320 390,340 145,048 96,402 112,912 99,171 76,970 15,943 24,131 341,991 1,172,531 554,382 532,422 1,035,430 565,859 648,663 714,660 720,590 749,378 782,266 800,281 833,063 75,698 66,740 83,762 88,063 - 4,594 - - - - - 23,234 1,390,935 1,502,263 1,598,703 1,664,950 $2,563,466 $2,056,645 $2,131,125 $2,700,380 Page 110 of 284 Table 2 Page 1 of 2 2014 2015 2016 2017 2018 2019 4,248 $1,663,866 $1,685,452 $1,708,148 $1,788,767 $1,872,995 $2,111,354 1,565,544 1,564,058 2,226,491 1,909,268 1,789,330 1,920,902 1,020,664 903,858 1,548,584 1,417,236 1,978,571 1,252,994 285,877 315,390 373,279 319,576 379,258 308,870 463,217 406,215 394,165 174,158 153,860 130,620 4,999,168 4,874,973 6,250,667 5,609,005 6,174,014 5,724,740 105,231 477,771 496,607 614,628 611,185 579,384 594,178 694,406 749,937 909,565 855,051 797,431 850,706 46,393 60,081 64,321 55,576 74,635 71,696 1,218,570 1,306,625 1,588,514 1,521,812 1,451,450 1,516,580 $6,217,738 $6,181,598 $7,839,181 $7,130,817 $7,625,464 $7,241,320 $137,543 $125,704 $214,182 $172,736 $224,186 $124,372 4,248 4,242 4,400 5,350 5,350 5,500 - 109,365 41,938 51,370 133,225 11,134 - 215,962 9,080 101,731 102,714 - - - 16,783 43,280 - - 90,109 105,206 166,633 113,056 115,808 107,250 178,687 139,148 132,974 133,342 146,295 479,322 101,443 105,231 109,101 139,695 163,896 163,896 1,121,174 1,209,432 75,110 87,983 443,362 443,362 1,633,204 2,014,290 770,201 848,543 1,334,836 1,334,836 657,286 781,537 781,892 805,201 885,583 827,292 927,129 881,428 924,105 1,007,834 954,485 988,931 82,452 82,881 83,278 83,887 84,624 84,178 - 7,930 1,382 - - - 1,248 516 - - - - 1,668,115 1,754,292 1,790,657 1,896,922 1,924,692 1,900,401 $3,301,319 $3,768,582 $2,560,858 $2,745,465 $3,259,528 $3,235,237 Page 111 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) Net (expense) revenue: Governmental activities Business -type activities Total primary government net (expense) revenue General revenues and other changes in net position: Governmental activities: General property taxes and tax increment Unrestricted grants and contributions Investment earnings Gain on sale of property Miscellaneous Transfers Total governmental activities Business -type activities: Investment earnings Unrestricted grants and contributions Loss on sale of capital assets Other Transfers Total business -type activities Total primary government Change in net position: Governmental activities Business -type activities Total primary government 2010 2011 2012 2013 ($3,272,821) ($3,752,666) ($4,108,736) ($3,877,640) 76,066 235,207 415,945 441,962 (3,196,755) (3,517,459) (3,692,791) (3,435,678) 3,692,127 3,934,309 4,289,566 4,541,103 104,987 2,040 2,040 2,040 320,183 239,763 204,422 (85,474) - 8,960 7,950 1,956 16,588 17,718 29,172 26,526 261,212 (20,285) 504,239 406,380 4,395,097 4,182,505 5,037,389 4,892,531 22,934 17,780 14,046 (7,026) - - - (1,472) (261,212) 20,285 (504,239) (406,380) (238,278) 38,065 (490,193) (414,878) $4,156,819 $4,220,570 $4,547,196 $4,477,653 $1,122,276 $429,839 $928,653 $1,014,891 (162,212) 273,272 (74,248) 27,084 $960,064 $703,111 $854,405 $1,041,975 Note: GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated. Page 112 of 284 Table 2 Page 2 of 2 2014 2015 2016 2017 2018 2019 ($3,365,964) ($2,860,683) ($5,480,466) ($4,760,462) ($4,839,178) ($4,880,756) 449,545 447,667 202,143 375,110 473,242 383,821 (2,916,419) (2,413,016) (5,278,323) (4,385,352) (4,365,936) (4,496,935) 4,706,974 5,289,030 5,504,099 5,503,870 5,593,776 5,359,596 2,040 10,320 13,975 10,320 15,558 14,053 421,387 154,098 202,911 236,128 281,466 587,111 44,198 - - - - - 31,644 22,655 36,354 49,687 6,925 3,320 12,170 (1,012,761) (1,072,937) 587,237 (74,695) 655,434 5,218,413 4,463,342 4,684,402 6,387,242 5,823,030 6,619,514 29,669 11,547 17,091 24,087 28,038 72,190 - - 2,674,692 - - - - - 265 - 360,190 133 (12,170) 1,012,761 1,072,937 (587,237) 74,695 (655,434) 17,499 1,024,308 3,764,985 (563,150) 462,923 (583,111) $5,235,912 $5,487,650 $8,449,387 $5,824,092 $6,285,953 $6,036,403 $1,852,449 $1,602,659 ($796,064) $1,626,780 $983,852 $1,738,758 467,044 1,471,975 3,967,128 (188,040) 936,165 (199,290) $2,319,493 $3,074,634 $3,171,064 $1,438,740 $1,920,017 $1,539,468 Page 113 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Page 114 of 284 2010 2011 2012 2013 General Fund: Nonspendable $ - $2,057 $4,609 $5,201 Restricted - - - - Assigned for: Employee benefits 172,000 179,000 165,000 173,000 Ensuing year's budget 100,000 - - - Unassigned: Cash flow reserve 1,593,000 1,911,000 2,060,000 2,125,000 General contingency reserve 554,000 698,000 734,000 777,000 Snow plow reserve - - - - Tax petition adjustments - - - - Revolving Capital King plant Remaining unassigned balance 554,797 471,504 706,024 434,170 Total general fund $2,973,797 $3,261,561 $3,669,633 $3,514,371 All other governmental funds: Restricted for: Debt service $97,296 $112,571 $5,309,831 $5,192,539 Park improvements - 913,170 870,864 815,549 Law enforcement - 8,155 6,923 7,330 Tax increment - - 4,604 19,331 Unspent bond proceeds - - - - Small cities grant - - - - Assigned, reported in: Special revenue funds 88,471 31,198 31,627 31,324 Capital projects funds 11,188,968 10,704,782 11,645,003 12,100,258 Unassigned - - - - Total all other governmental funds $11,374,735 $11,769,876 $17,868,852 $18,166,331 Page 114 of 284 Table 3 2014 2015 2016 2017 2018 2019 $80,806 $57,602 $63,813 $71,178 $34,940 $80,898 - 54,188 - - - - 159,000 165,000 140,000 171,000 194,000 207,000 - - - - 203,666 100,000 21293,000 2,370,000 2,365,000 2,426,000 2,300,000 2,379,000 810,000 847,000 846,000 871,000 870,000 871,000 - - 137,000 140,000 140,000 141,000 - - - 65,000 65,000 141,000 $19,329,534 $17,487,362 $14,222,368 $15,344,937 $15,439,887 292,000 100,000 560,001 1,138,743 1,458,519 1,098,270 1,289,668 1,200,736 $3,902,807 $4,632,533 $5,010,332 $4,842,448 $5,097,274 $5,512,634 $5,393,708 $6,222,184 $1,186,205 $1,094,681 $895,796 $842,128 664,792 544,506 351,899 47,468 47,468 34,019 13,304 9,096 7,368 10,037 14,220 22,426 49,860 86,341 122,058 165,997 185,797 235,696 1,118,479 - - - - - - - - 32,974 29,670 - 32,019 33,252 33,568 33,999 34,503 35,516 12,434,638 10,998,026 12,927,234 14,367,375 14,639,991 15,835,015 (377,266) (406,043) (405,964) (407,594) (407,558) (407,872) $19,329,534 $17,487,362 $14,222,368 $15,344,937 $15,439,887 $16,596,928 Page 115 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues: General property taxes Tax increment Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Investment income Direct charges to developers Refunds and reimbursements Donations and contributions Total revenues Expenditures: Current: General government Public safety Public works Parks and recreation Capital outlay Debt service: Principal retirement Interest and other Bond issuance costs Total expenditures Revenues over (under) expenditures Other financing sources (uses): Sale of capital assets Bonds issued Premium on bonds issued Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Debt service as a percentage of noncapital expenditures Debt service as percentage of total expenditures 2010 2011 2012 2013 $3,697,809 $3,984,389 $4,245,360 $4,433,202 - - 26,583 106,924 28,583 22,952 21,906 20,731 197,181 131,081 163,986 90,910 282,551 97,442 114,952 102,211 561,411 134,237 49,441 337,912 73,761 60,822 56,709 56,608 320,183 239,763 204,422 (85,474) 134,323 132,565 154,415 135,364 2,184 12,500 400 500 5,297,986 4,815,751 5,038,174 5,198,888 1,370,381 1,178,710 1,195,121 1,378,891 1,312,335 1,351,567 1,394,586 1,449,103 592,897 605,955 737,001 805,776 125,414 129,327 132,497 152,061 3,583,666 767,988 160,856 1,103,309 250,000 255,000 275,000 295,000 272,000 266,675 260,680 362,436 - - 103,854 - 7,506,693 4,555,222 4,259,595 51546,576 (2,208,707) 260,529 778,579 (347,688) 425 10,010 24,418 2,000 - - 5,140,000 - - - 155,137 - 397,589 412,366 408,914 2,274,540 - - - (1,868,160) 398,014 422,376 5,728,469 408,380 ($1,810,693) $682,905 $6,507,048 $60,692 13.3% 13.8% 13.4% 14.8% 7.0% 11.5% 12.6% 11.9% Page 116 of 284 Table 4 2014 2015 2016 2017 2018 2019 $4,620,521 $5,104,956 $5,347,035 $5,286,120 $5,370,520 $5,129,133 125,120 184,251 185,539 215,197 226,985 237,217 237,636 381,071 220,052 142,146 147,715 101,911 137,543 125,704 214,182 172,736 224,186 124,372 453,283 165,950 491,141 160,252 187,282 139,503 120,050 292,182 94,715 234,139 201,231 82,100 62,885 67,170 51,739 58,083 53,128 58,576 421,387 153,792 202,911 236,128 281,466 587,106 - 109,365 41,938 50,020 133,225 - 106,553 594,254 235,466 113,056 122,733 111,221 200 4,550 16,783 25,948 5,000 100 6,285,178 7,183,245 7,101,501 6,693,825 6,953,471 6,571,239 1,445,480 1,519,783 1,383,243 1,577,002 1,677,124 1,655,144 1,535,387 1,620,793 1,734,623 1,748,641 1,812,530 1,896,529 601,870 482,846 582,368 861,459 1,417,430 696,260 162,892 176,416 244,052 173,776 224,367 154,892 4,540,043 4,111,439 661,984 1,040,791 994,514 395,944 315,000 500,000 5,615,000 835,000 1,010,000 715,000 396,195 426,133 422,650 194,252 174,219 150,553 80,533 - - - - - 9,077,400 8,837,410 10,643,920 6,430,921 7,310,184 5,664,322 (2,792,222) (1,654,165) (3,542,419) 262,904 (356,713) 906,917 44,400 - 3,690 8,188 - - 3,775,000 - - - - - 111,689 - - - - - 4,081,662 2,992,208 7,952,645 3,547,542 5,163,496 665,484 (3,668,890) (2,450,489) (7,301,111) (2,863,949) (4,457,007) - 4,343,861 541,719 655,224 691,781 706,489 665,484 $1,551,639 ($1,112,446) ($2,887,195) $954,685 $349,776 $1,572,401 16.0% 19.6% 60.5% 19.1% 18.8% 16.4% 7.8% 10.5% 56.7% 16.0% 16.2% 15.3% Page 117 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Fiscal Year Commercial/ Ended Residential Industrial Public December 31, Property Property Utility 2009 $3,483,726 $3,952,523 $3,568,957 2010 3,304,110 3,869,568 3,311,716 2011 3,202,613 3,676,985 3,454,880 2012 2,928,514 3,567,196 3,599,104 2013 2,736,977 3,528,330 3,990,896 2014 2,834,815 3,424,868 3,904,920 2015 3,280,449 3,286,102 4,148,063 2016 3,465,171 3,279,638 4,228,710 2017 3,880,886 3,076,463 4,401,366 2018 3,682,177 3,604,989 4,714,385 2019 4,094,677 3,809,352 4,673,520 Source: Washington County Certificate as to Taxes and Taxable Property All Other $93,832 87,480 92,822 91,665 96,104 96,659 91,068 118,877 149,210 104,320 105,046 Total Tax Capacity $11,099,038 10,572,874 10,427,300 10,186,479 10,352,307 10,261,262 10,805,682 11,092,396 11,507,925 12,105,871 12,682,595 Page 118 of 284 Less: Fiscal Disparity Contribution Less: Tax Increment Captured $2,177,678 $ - 2,492,111 - 2,117,456 - 2,336,411 26,913 2,346,765 108,254 2,467,230 126,677 2,214,196 185,870 2,292,994 187,846 2,485,407 217,872 2,570,152 229,810 2,813,728 240,168 Less: Power Adjusted Total Estimated Line Tax Capacity Direct Tax Market Credit Value Rate Value $ - $8,921,360 38.732 $718,753,400 - 8,080,763 43.845 682,742,100 - 8,309,844 45.028 669,938,700 - 7,823,155 51.710 643,608,300 - 7,897,288 54.898 641,169,000 - 7,667,355 59.641 640,880,100 - 8,405,616 56.804 689,680,000 58 8,611,498 57.725 710,998,000 60 8,804,586 56.143 739,385,400 62 9,305,847 56,143 790,434,200 61 9,628,638 50.031 836,845,900 Table 5 Adjusted Tax Capacity as a Percent of Total Tax Capacity 80.4% 76.4% 79.7% 76.8% 76.3% 74.7% 77.8% 77.6% 76.5% 76.9% 75.9% Page 119 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Last Ten Fiscal Years Table 6 Source: Washington County website Page 120 of 284 City Overlapping Rates Fiscal Direct School Other Year Rate County District Districts Total 2010 43.845 27.775 19.734 5.107 96.461 2011 45.027 29.772 20.302 5.537 100.637 2012 51.710 31.939 22.334 6.250 112.232 2013 54.898 34.225 22.018 6.983 118.123 2014 59.641 32.811 23.150 6.538 122.140 2015 56.804 30.186 21.124 5.884 113.997 2016 57.725 30.564 19.849 4.568 112.706 2017 56.143 30.448 20.390 4.345 111.326 2018 54.462 29.983 19.349 4.175 107.969 2019 50.031 29.682 18.442 3.994 102.149 Source: Washington County website Page 120 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago 2019 Source: Washington County 2010 Rank 1 2 3 4 6 7 8 5 9 10 Table 7 Percentage of Total City Capacity Value Page 121 of 284 35.50% 5.22% 2.53% 2.83% 2.15% 1.98% 1.81% 2.41% 1.29% 1.07% 56.77% Percentage Taxable of Total City Taxable Capacity Capacity Capacity Taxpayer Value Rank Value Value Xcel Energy $4,987,263 1 39.32% $3,553,044 VSSA Boutwells Landing LLC 797,411 2 6.29% 531,172 OPH Pat LLC & OPH Val LLC 308,964 3 2.44% 321,428 Wal-Mart Real Estate Bus Trust 302,986 4 2.39% 300,856 Oak Park Ponds LLC 196,146 5 1.53% 223,960 Menard Inc. 193,802 7 1.53% 217,848 Lowe's Home Centers, Inc. 178,146 6 1.40% 198,814 SC Mall LLC 165,720 8 1.31% 251,250 W.A.T.E. Enterprises Inc. 131,536 9 1.04% 137,680 Oakgreen Commons 167,588 10 1.32% - Raduenz Dealership - - 0.00% 125,476 Total $7,429,562 58.56% $5,861,528 Total All Property $12,105,871 $10,572,874 Source: Washington County 2010 Rank 1 2 3 4 6 7 8 5 9 10 Table 7 Percentage of Total City Capacity Value Page 121 of 284 35.50% 5.22% 2.53% 2.83% 2.15% 1.98% 1.81% 2.41% 1.29% 1.07% 56.77% CITY OF OAK PARK HEIGHTS, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Table 8 Fiscal Taxes (2) Collected Within The Collections - 5,304,541 99.55% Year Levied (2) Fiscal Year of the Levy in Total Collections to Date Ended For The Percentage Subsequent Percentage December 31, Fiscal Year Amount of Levy Years Amount of Levy 2009 $3,574,828 (1) $3,417,601 95.60% $74,664 $3,492,265 97.69% 2010 3,662,455 (1) 3,584,027 97.86% (20,983) 3,563,044 97.29% 2011 3,870,770 (1) 3,819,220 98.67% (40,889) 3,778,331 97.61% 2012 4,229,924 (2) 4,176,125 98.73% (80,122) 4,096,003 96.83% 2013 4,549,431 (2) 4,457,886 97.99% (43,325) 4,414,561 97.04% 2014 4,803,959 (2) 4,730,343 98.47% (12,962) 4,717,381 98.20% 2015 5,022,731 (2) 5,029,814 100.14% 7,762 5,037,576 100.30% 2016 5,191,593 (2)'(3) 5,196,758 100.10% 7,210 5,203,968 100.24% 2017 5,193,661 (2)'(3) 5,198,633 100.10% 1,066 5,199,699 100.12% 2018 5,328,501 (2) 5,304,541 99.55% - 5,304,541 99.55% 2019 5,090,246 (2) 5,049,639 99.20% - 5,049,639 99.20% (1) The levy amount presented is after deduction for Market Value Homestead Credit. (Z) The levy amount presented includes excess TIF Tax. (3) Net of green acres collections Source: City Finance Department. Page 122 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Fiscal General Obligation Bonds Governmental Activities Percentage Improvement of Tax Bonds Total Capacity 2010 $7,110,000 - $7,110,000 67.25% 2011 6,855,000 - 6,855,000 65.74% 2012 11,720,000 (1) - 11,720,000 115.05% 2013 11,425,000 - 11,425,000 110.36% 2014 14,885,000 - 14,885,000 145.06% 2015 14,385,000 - 14,385,000 133.12% 2016 8,770,000 - 8,770,000 79.06% 2017 7,935,000 - 7,935,000 68.95% 2018 6,925,000 - 6,925,000 57.20% 2019 6,210,000 - 6,210,000 48.96% Notes: (1) Details regarding the City's outstanding debt can be found in the notes to the financial statements. There is no business -type activity long-term debt. In 2012, the City issued the $5,140,000 Crossover Refunding Bonds to refund $4,860,000 of the 2008 GO Improvement Bonds. The 2008 Bonds were called for prepayment in 2016. Table 9 Per Capita Page 123 of 284 1,639 1,580 2,637 2,455 3,202 3,057 1,861 1,684 1,460 1,293 CITY OF OAK PARK HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2019 Governmental Unit Debt repaid with property taxes: Independent School District No. 834 Washington County Metro Transit Metropolian Council Subtotal - overlapping debt City direct debt Total direct and overlapping debt Sources: Northland Securities, Inc Debt Outstanding $93,370,000 136,685,000 182,390,000 2,950,000 Estimated Percentage Applicable Table 10 Estimated Share of Overlapping Dobt 9.38% $8,758,106 3.18% 4,346,583 0.29% 528,931 0.24% 7,080 13,640,700 100.00% 5,455,000 $19,095,700 Page 124 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2019 Market value Debt limit (3% of market value) Debt applicable to limit: Debt Applicable to Limit Legal debt margin Legal Debt Margin Calculation for Fiscal Years 2010 Through 2019 $836,845,900 25,105,377 4,175,000 $20,930,377 Net Debt Fiscal Debt Applicable to Year Limit Limit Legal Debt Margin Table 11 Amount of Debt Applicable to Debt Limit 2010 $20,482,263 $7,110,000 $13,372,263 34.71% 2011 20,098,161 6,855,000 13,243,161 34.11% 2012 19,308,249 6,860,000 12,448,249 35.53% 2013 19,235,070 6,565,000 12,670,070 34.13% 2014 19,991,982 6,250,000 13,741,982 31.26% 2015 21,366,828 5,915,000 15,451,828 27.68% 2016 22,008,489 5,560,000 16,448,489 25.26% 2017 22,773,432 5,125,000 17,648,432 22.50% 2018 23,713,026 4,515,000 19,198,026 19.04% 2019 25,105,377 4,175,000 20,930,377 16.63% Page 125 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA PLEDGED REVENUE COVERAGE Table 12 Last Ten Fiscal Years Improvement Bonds Property Special Property Tax Transfer From Property Tax Fiscal Tax Assessment Transfer From Water Revenue Transfer From Debt Service Year Collections(" Collections General Fun d(2) Fund General Fun d(2) Principal Interest Coverage 2010 $392,805 $ $ $ $122,000 $250,000 $272,000 0.986 2011 400,902 134,000 255,000 266,675 1.025 2012 - 536,000 275,000 260,680 1.001 2013 108,831 548,000 295,000 362,436 0.999 2014 217,836 104,758 559,000 315,000 369,195 1.289 2015 379,964 104,758 100,000 608,000 500,000 426,134 1.288 2016 220,052 4,973,557 101,000 620,000 5,615,000 534,591 0.962 2017 142,146 - 102,000 677,100 835,000 192,673 0.896 2018 126,426 103,000 739,949 1,010,000 172,974 0.819 2019 80,658 104,000 579,000 715,000 150,058 0.883 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1,2) Capital Improvement Bonds were issued during 2008 and 2009 to finance construction of City Hall. The debt service payments, which began in 2009, are funded by property tax collections and transfers from the General Fund. (Z)Debt service payments on Improvement Bonds of 1998 ended in 2008 when the bond was paid off. Special assessment collections, as well as transfers from the connection charge funds, were used to make the debt service payments. Page 126 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Table 13 Sources: Metropolitan Council (population), Continuing Disclosure Document or County Records (unemployment rate) (')Information Not Available Page 127 of 284 Per Capita Fiscal Unemployment Personal Personal Year Population Rate Income(') Income(') 2010 4,339 6.9% 2011 4,339 6.1% 2012 4,445 5.3% 2013 4,654 4.6% 2014 4,648 3.8% Information Not Avaliable 2015 4,706 3.1% 2016 4,712 3.4% 2017 4,776 2.2% 2018 4,742 2.5% 2019 4,801 2.9% Sources: Metropolitan Council (population), Continuing Disclosure Document or County Records (unemployment rate) (')Information Not Available Page 127 of 284 - This page intentionally left blank - Page 128 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA I PRINCIPAL EMPLOYERS Current Year and Nine Years Ago Employer Andersen Corporation VSSA - Boutwell's Landing/McKean Square State of Minnesota Correctional Facility Wal-Mart Stores, Inc. ISD No. 834, Stillwater Menard's Inc. Kowalski's Lowe's Stillwater Motors Xcel Energy Kohl's Total Product Service Window Manufacturer Senior Community Housing Government Correctional Institution Retail Public Education Retail Lumber/Hardware Retail/Grocery Retail Auto Dealership/Service Repair Electric Utility Retail Table 14 2019 2010 Employees Employees 795 584 415 445 347 353 275 350 242 180 149 124 135 85 115 115 96 86 90 - - 161 2,659 2,483 Page 129 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Full -Time Equivalent Employees as of December 31, Function/Program 2010 2011 2012 2013 General government: Administration 2 2 2 3 Finance 3 3 3 3 Building inspections 2 2 1 1 Public safety 10 10 10 11 Public works 3 4 4 4 Total 20 21 20 22 Source: City Finance Department Page 130 of 284 Table 15 Full -Time Equivalent Employees as of December 31, 2014 2015 2016 2017 2018 2019 3 3 3 3 3 3 3 2 2 2 2 2 1 1 1 1 1 1 11 11 11 11 11 11 22 21 21 21 21 21 Page 131 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program Police: Physical arrests Parking violations Traffic violations Fire: Fire and related calls Medical calls Building inspection: Permits issued: Residential Commercial Total permit valuation Water: Connections Average daily demand (thousands of gallons) Sewer: Connections Sources: Various City departments. (1) Connection for Irrigation accounts removed from the total Fiscal Year 2010 2011 2012 2013 176 151 151 148 171 155 99 91 1,240 874 1,126 1,081 110 83 107 170 260 306 451 546 1 - 2 - 1 3 2 1 $10,955,024 $1,828,000 $8,776,295 $4,781,710 1,317 1,321 (1)1,273 (1)1,274 576,085 593,496 667,835 626,000 1,268 1,278 1,286 1,280 Page 132 of 284 Fiscal Year 2014 2015 2016 169 115 122 86 88 78 1,283 1,270 1,070 183 172 151 576 596 632 1 5 1 1 1 6 $4,781,710 $7,000,000 $13,613,536 ")1,274 1,281 1,281 608,216 573,463 565,658 1,280 1,287 1,287 Table 16 2017 2018 2019 172 156 223 124 81 40 1,356 1,056 961 148 143 105 676 600 635 1 4 2 2 1 $3,320,000 $15,626,288 $1,127,228 1,291 ")1285 1,298 603,332 590,764 588,340 1,306 1,294 1,300 Page 133 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Sources: Various City departments Page 134 of 284 Fiscal Year Function/Program 2010 2011 2012 2013 Police: Stations 1 1 1 1 Squad cars 6 6 6 6 Fire stations Other public works: Miles of paved streets 22.0 22.0 22.0 22.0 Streetlights 396 396 396 396 Traffic signals 2 2 2 2 Parks and recreation: Parkland acreage 104 104 104 104 Number of parks 5 5 5 5 Water: Water mains (miles) 27.1 27.1 27.1 27.1 Fire hydrants 265 265 265 265 Storage capacity (thousands of gallons) 750 750 750 750 Wastewater: Sanitary sewers (miles) 24.9 24.9 24.9 24.9 Storm sewers (miles) 12.6 12.6 12.6 12.6 Sources: Various City departments Page 134 of 284 Table 17 Fiscal Year 2014 2015 2016 2017 2018 2019 6 6 6 6 6 6 22.0 22.0 22.0 22.0 22.3 22.3 396 396 396 396 396 396 2 2 2 2 2 2 104 104 104 104 104 104 5 5 5 5 5 5 27.1 27.1 27.1 28.0 28.0 28.0 267 270 301 301 301 301 750 750 750 750 750 750 24.9 24.9 24.9 25.0 25.0 25.0 12.6 12.6 12.6 29.0 29.0 29.0 Page 135 of 284 - This page intentionally left blank - Page 136 of 284 REGI DX INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS To the Honorable Mayor, Members of the City Council and Management City of Oak Park Heights, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Oak Park Heights, Minnesota as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City of Oak Park Heights, Minnesota's basic financial statements, and have issued our report thereon dated April 23, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Oak Park Heights, Minnesota's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Oak Park Heights, Minnesota's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Oak Park Heights, Minnesota's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com Page 137 of 284 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Page 2 our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Oak Park Heights, Minnesota's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Oak Park Heights, Minnesota's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Oak Park Heights, Minnesota's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota April 23, 2020 Page 138 of 284 REGI DX MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of Oak Park Heights, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Oak Park Heights, Minnesota as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City of Oak Park Heights, Minnesota's basic financial statements, and have issued our report thereon dated April 23, 2020. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that City of Oak Park Heights, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City of Oak Park Heights, Minnesota's noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota April, 23 2020 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com Page 139 of 284 CITY OF OAK PARK HEIGHTS, MINNESOTA AUDIT MANAGEMENT LETTER December 31, 2019 Page 140 of 284 - This page intentionally left blank - Page 141 of 284 REGI DX To the Honorable Mayor and Members of the City Council City of Oak Park Heights, Minnesota We have completed the 2019 audit of the City of Oak Park Heights, Minnesota and have issued our report thereon. Our Independent Auditor's Report is included in the City's Annual Financial Report. This Management Letter provides a summary of audit results along with comparisons and trend analysis of financial results. Thank you for the opportunity to serve the City. We are available to discuss this report with you. V07 11`7 LIP REDPATH AND COMPANY, LTD. St. Paul, Minnesota April 23, 2020 55 5"' Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com Page 142 of 284 - This page intentionally left blank - Page 143 of 284 Audit Management Letter Report Summary Report Summary Several reports are issued in conjunction with the audit. A brief summary is as follows: Report Name Elements of Report Overview • Unmodified ("clean") Annual Financial Report (AIR) • Financial statements • Footnotes opinion on the Financial • Required supplementary Statements information • Statistical information Report on Internal Control and on Results of testing • No findings of Compliance and Other Matters • Internal controls over financial noncompliance reporting • No internal control findings. • Compliance with laws, regulations, contracts and grants State Legal Compliance Report • Results of testing certain • No findings of provisions of Minnesota noncompliance Statutes Audit Management Letter Intended to be a working tool for City Council • Comparisons and trend analysis • Outside factors influencing City financial reporting • Policies and procedures Page 144 of 284 Audit Management Letter Analysis of Selected Accounts ANALYSIS OF SELECTED ACCOUNTS Summary of Financial Activity The schedule below presents a condensed financial summary of all funds: Page 145 of 284 Fund Revenue and Other Sources Expenditures and Other Uses Transfers Net Increase (Decrease) in Fund Balance/ Net Position Fund Balance/ Net Position 12/31/19 1 General $5,700,006 $3,997,101 $1,287,545 $415,360 $5,512,634 Special Revenue Funds: 2 Forfeiture and Seizure 11,306 3,100 8,206 22,426 3 Economic Development 1,013 - 1,013 35,516 4 TIF District#1 243,835 193,936 49,899 235,696 5 TIF District#2 64 378 314 407,872 Debt Service Funds: 6 G.O. CIP Refunding Bonds of 2012A 4,359 432,753 430,000 1,606 119,842 7 G.O. Capital Improvement Bonds of 2014A 125,042 433,316 253,000 55,274 722,286 Capital Project Funds: 8 Capital Revolving 7,778 - (392,167) (384,389) - 9 Budgeted Projects and Equipment Revolving 107,386 254,457 826,718 679,647 4,209,641 101 Street Reconstruction 82,956 265,136 427,226 245,046 3,066,047 11 Cit Hall hn rovements 1,715 53 86,412 84,750 - 12 Park Development 15,111 1,523 13,588 529,017 13 Moelter Park 3,041 13,449 - (10,408) 95,799 14 Renewal and Replacement 147,353 69,120 319,741 397,974 5,139,343 15 Storm Sewer Renewal/Replacement 50,963 - 109,445 160,408 1,874,803 16 Water Tower Rehabilitation 63,477 40,479 103,956 722,040 17 Well Rehabilitation 4,044 - 7,086 11,130 151,247 18 Sewer Rehabilitation 1,790 17,913 19,703 81,097 Enterprise Funds: 19 Water 869,056 591,958 (431,456) (154,358) 8,498,668 20 Sanitary Sewer 1,024,247 849,298 230,861 55,912 5,845,704 21 Storm Sewer 89,471 1 71,414 3,167 14,890 1 196,428 'total $8,554,013 $7,176,992 $0 $1,377,021 $36,650,362 Page 145 of 284 Audit Management Letter Analysis of Selected Accounts Property Taxes A summary of property tax activity for the past five years is as follows: Tax levy certified Plus excess tax increment Net levy Receipts: Current property taxes and excess TIF Delinquent property taxes Total receipts Adjustments Increase (decrease) in delinquent taxes receivable Delinquent taxes - January 1 Delinquent taxes - December 31 Current collection as apercent of current levy Total collections as apercent of current levy 2015 2016 2017 2018 2019 $5,022,731 $5,191,593 $5,193,661 $5,328,501 $5,090,246 22,148 24,007 24,860 19,872 20,624 5,044,879 5,215,600 5,218,521 5,348,373 5,110,870 5,029,814 5,242,860 5,198,633 5,304,541 5,093,804 (6,734) 23,803 14,090 (6,817) 10,481 5,023,080 5,266,663 5,212,723 5,297,724 5,104,285 ($21,976) $22,588 ($3,245) ($54,378) ($13,339) (177) (28,475) 2,553 (3,729) (6,754) 62,667 62,490 34,015 36,568 32,839 $62,490 $34,015 $36,568 $32,839 $26,085 99.7% 100.5% 99.6% 99.2% 99.7% 99.6% 101.0% 99.9% 99.1% 99.9% Page 146 of 284 Audit Management Letter Analysis of Selected Accounts Tax Levies, Tax Rates and Tax Capacity A comparison of values for taxes payable in 2016 through 2020 is as follows: Taxable market value Tax capacity values: Real estate Personal property Subtotal Tax increment Fiscal disparity contribution Fiscal disparity distribution Total Tax capacity rates Taxlevy 2016 2017 2018 2019 2020 $710,998,000 $739,385,400 $785,193,200 $850,890,200 $859,249,400 $10,998,502 $11,409,785 $12,001,551 $12,577,549 $12,959,554 93,894 98,140 104,320 105,046 105,622 11,092,396 11,507,925 12,105,871 12,682,595 13,065,176 (187,904) (217,932) (229,872) (240,229) (269,438) (2,292,994) (2,485,407) (2,570,152) (2,813,728) (2,829,544) 388,319 434,020 463,704 501,199 524,717 $8,999,817 $9,238,606 $9,769,551 $10,129,837 $10,490,911 57.725 56.217 54.482 50.031 48.877 $5,191,593 $5,193,661 $5,328,501 $5,090,246 $5,263,194 Page 147 of 284 Audit Management Letter Analysis of Selected Accounts A schedule of tax capacity by classification is as follows: CITY OF OAK PARK HEIGHTS Amount 2018 2019 Percent of City Total Amount Percent of City Total Real estate: Agricultural $ - 0.0% $ - 0.0% Seasonal 2,006 0.0% 2,006 0.0% Residential homestead 2,057,535 17.0% 2,268,389 17.9% Residential nonhomestead 1,624,642 13.4% 1,826,288 14.4% Commercial/industrial 3,593,439 29.7% 3,799,588 30.0% Public utility 4,714,385 38.9% 4,673,520 36.8% Railroad 9,544 0.1% 7,758 0.1% Total real estate 12,001,551 99.1% 12,577,549 99.2% Personal property 104,320 0.9% 105,046 0.8% Total tax capacity $12,105,871 100% $12,682,595 100% As shown above, the City's major taxpayer classification (public utility) is 36.8% of total tax capacity. Tax Capacity by Property Class Public Utility 36.M All Other 30.006 J ' iau r10111MI a 7.9-6 Page 148 of 284 Audit Management Letter General Fund Pension Liability In 2015, the City implemented GASB Statement No. 68, which required the reporting of the City of Oak Park Heights' proportionate share of the PERA Net Pension Liability (NPL). During 2019, the City's share of PERA's NPL increased. The schedule below presents the components of the change in NPL. During 2019, the City paid it's required contribution to the Plan. The required contribution is a percentage of eligible wages. Net pension liability - December 31, 2018 Net pension liability - December 31, 2019 660,000 936,000 1,596,000 $640,000 $990,000 $1,630,000 Page 149 of 284 General Police Employees and Fire Plan Plan Total Change in net pension liability: Change in actuarial assumptions ($10,000) ($15,000) ($25,000) Change in proportion (13,000) 45,000 32,000 Experience difference 9,000 11,000 20,000 Earnings difference 4,000 13,000 17,000 OakPark Heights' share of 2019 pension expense 52,000 174,000 226,000 Contributions to the plan by City of Oak Park Heights (62,000) (162,000) (224,000) Contributions to the plan by State of Minnesota - (12,000) (12,000) Unallocated Contributions - - - Increase (decrease) in net pension liability (20,000) 54,000 34,000 Net pension liability - December 31, 2018 Net pension liability - December 31, 2019 660,000 936,000 1,596,000 $640,000 $990,000 $1,630,000 Page 149 of 284 Audit Management Letter GENERAL FUND General Fund The General Fund of the City is maintained to account for expenditures common to all cities (general government, public safety, public works, and parks and recreation). A ten- year history of major revenue sources that support the General Fund are as follows: Major Revenue Sources - 2019 Slate Aids Pi opera Taxes 90°0 Page 150 of 284 Property Taxes(t) State Aids All Other Total Revenue Year Amount Percent Amount Percent Amount Percent Amount Percent 2010 3,305,004 79% 180,174 4% 673,969 17% 4,159,147 100% 2011 3,583,487 87% 75,860 2% 468,768 11% 4,128,115 100% 2012 4,245,360 90% 69,677 1% 423,580 9% 4,738,617 100% 2013 4,433,202 87% 86,775 2% 568,367 11% 5,088,344 100% 2014 4,620,521 89% 79,354 2% 481,640 9% 5,181,515 100% 2015 5,104,956 89% 135,133 2% 492,192 9% 5,732,281 100% 2016 5,347,035 89% 87,542 2% 549,159 9% 5,983,736 100% 2017 5,286,120 89% 115,868 2% 506,802 9% 5,908,790 100% 2018 5,370,520 87% 130,332 2% 659,030 11% 6,159,882 100% 2019 5,129,133 90% 106,266 2% 464,607 8% 5,700,006 100% Since 2010, the General Fund has levied property taxes which have been transferred out to Debt Service Funds. Those levies were $683,000, $603,000, and $603,000 for the years ended December 31, 2019, 2018, and 2017, respectively. Major Revenue Sources - 2019 Slate Aids Pi opera Taxes 90°0 Page 150 of 284 Audit Management Letter General Fund A graph of property taxes, state aids, and other revenue for the General Fund is as follows: �S.GOO.Oriii � t)i1.00i� 5.000.0 Gl i 4, 800,OD<! 4.60M(k 4,400,000:. 4.2WO i 4.000.ON ) 3. 500.0 f i( i ICIQ,O(!(i �. 200,00( i 3,000.0N) 2. SOO,C D ) 2.600,004; 1406,O0s; 2,200,000 2000000 I, 500.00: i 1600'0W i 1.406,00+; 1,200.00) 1.00O,ow 800.00(: 600,0[x: 400.000 200.000 0 2010 2011 2012 2015 2014 2U 15 2016 201- 2015 2019 Page 151 of 284 Audit Management Letter General Fund Budget Versus Actual Comparison The General Fund balance increased by $415,000. Charges for services revenue and licenses and permits revenue exceeding budget resulted in higher than anticipated revenue. Expenditures in most City departments were also less than budgeted. During 2019, the City closed the Capital Revolving Fund into the General Fund, those remaining assets $392,000 contributed to the increase in fund balance. A summary is as follows: Budget Actual Variance Revenue 5,548,000 $5,700,000 $152,000 Expenditures 4,214,000 3,997,000 (217,000) Revenue over expenditures 1,334,000 1,703,000 369,000 Other financing sources (uses): Transfers in - 392,000 392,000 Transfers out (1,667,000) (1,680,000) (13,000) Net change in fund balance ($333,000) $415,000 $748,000 Page 152 of 284 Audit Management Letter General Fund General Fund Reserves The fund balance of the General Fund increased in 2019. The schedule below reflects the General Fund balance for the past five years: $6,000.000 $5.000.000 $4.000.000 $3,000.000 $2.000.0aa $1.000.000 $o Year Ended Fund Increase December 31, Balance (Decrease) 2015 4,632,533 729,726 2016 5,010,332 377,799 2017 4,842,448 (167,884) 2018 5,097,274 254,826 2019 5,512,634 415,360 Fund Balance 2015 2016 2017 2018 2018 —$--Actual Fund Balance —b -Minimum Fwd Bal aace per policy Page 153 of 284 Audit Management Letter General Fund Reserve balances are an important component of City financial management. When evaluating the adequacy of reserve balances, there are a number of important factors that must be considered. Several areas to consider are illustrated as follows: EEFM Need for Reserve lances enefits Cash Flow Timing Difference Favorable bond rating indicator Intergovernmental Capital Outlay Revenue Cutbacks Replacement Provides resources for minor projects or feasibility reports Ae ` Provides the City Emergency or greater options to deal Unanticipated Special with unexpected events Expenditures Projects I Page 154 of 284 Audit Management Letter General Fund The City's current fund balance policy was adopted on November 15, 2011. The purpose of the policy is to establish appropriate fund balance levels for each fund that is primarily supported by property tax revenues or user fees. The City's fund balance policy states the City will maintain funds for the following: • Compensated absences • Cash flow • Contingencies • Snow Plowing Compensated Absenses The compensated absences reserve is an amount equal to 50% of accumulated vacation leave and 100% of that portion of sick leave that would be payable under the City's severance pay policy. Assigned Fund Balance For Employee Benefits December 31, Employee Benefit 2018 2019 Vacation leave carryover (50%) Severance Total Rounded amount $55,513 $60,175 138,985 146,924 $194,498 $207,099 $207,000 Page 155 of 284 Audit Management Letter General Fund Cash Flow Reserve Property taxes and related state aids have accounted for 80% to 85% of the revenue of the General Fund in recent years. Property taxes and the majority of state aid are not received until July and December of each year (i.e., the second half of the year). As a result, the City is required to have sufficient reserves at the beginning of the year to fund operations of the first half of the year. The City's fund balance policy states that its cash flow reserve should be equal to 45-55% of the subsequent year's budgeted operating expenditures. The recommended cash flow reserve is $2,379,000, computed as follows: Cash Flow Reserve 2020 tax levy Less transfers out which occur after taxes are received Reserve amount (d 50% $5,263,194 (505,170) $4,758,024 $2,379,000 Page 156 of 284 Audit Management Letter General Fund The following graph of monthly General Fund cash balances illustrates the impact of receiving property taxes and state aids in the second half of the year: .►r rrr Balances rr rrr rr rrr ► r rrr �rr rr► .r r rr rrr rr rrr ►rr rrr ►r rrr .rr rrr rr rrr err r •,.rr r rr ., r ► r r As shown above, the cash balance decreased $1,688,000 between January 1 and June 30, illustrating the need for the cash flow reserve. Page 157 of 284 Audit Management Letter General Fund General Contin2ency Reserve The amount of General Fund reserve required to meet emergency and/or unanticipated expenditures is not readily quantifiable. Rather, the level of this requirement must be established by the City based on the history of the City and the philosophy of "adequate" reserve coverage. The City's fund balance policy states this amount should be 10-15% of the subsequent year's General Fund budgeted expenditures, computed as follows: General Contingency Reserve Description Ensuing year's budget Reserve amount A 15% December 31, 2018 2019 $5,800,888 $5,803,520 $870,000 $871,000 Page 158 of 284 Audit Management Letter General Fund General Fund Balance Summary In summary, the fund balance of the General Fund at December 31, 2019, was as follows: General Fund Balance Constraint Nonspendable: Prepaid items Assigned for: Employee benefits Ensuing year's budget Subtotal - assigned Unassigned: Cash flow reserve General contingency reserve Snow Plow reserve Tax petition adjustments Revolving Capital King Plant Remaining balance Subtotal - unassigned Total fund balance December 31, M19 MIq $34,940 $80,898 194,000 203,666 397,666 2,300,000 870,000 140,000 65,000 1,289,668 4,664,668 $5,097,274 207,000 100,000 307,000 2,379,000 871,000 141,000 100,000 292,000 100,000 1,241,736 5,124,736 $5,512,634 Page 159 of 284 Audit Management Letter SPECIAL REVENUE FUNDS Special Revenue Funds Special Revenue Funds are a classification of funds to account for revenues (and expenditures related thereto) segregated by City policy, Federal or State statutes for specific purposes. The City maintained four Special Revenue Funds during 2019. Forfeiture and Seizure Fund This fund was established in 1991 to account for property forfeited pursuant to MS 609.531. A summary of the financial activity of this fund from inception is as follows: The use of these funds is restricted by MS 609.531 subd. 5 to "supplement the agency's operating fund or similar fund for use in law enforcement." Page 160 of 284 Prior Years 2019 Total Revenue: Intergovernmental $14,141 $ - $14,141 Earnings on investments 16,832 556 17,388 Reimbursements 9,022 651 9,673 Confiscated property 205,476 10,099 215,575 Sale of municipal property 5,046 - 5,046 Transfer from General Fund 3,000 - 3,000 Total revenue $253,517 $11,306 $264,823 Expenditures: Public safety: Materials and supplies $109,183 $ - $109,183 Contractual services 28,998 - 28,998 Capital outlay 101,116 3,100 104,216 Total expenditures $239,297 $3,100 $242,397 Fund balance - December 31, 2019 $22,426 The use of these funds is restricted by MS 609.531 subd. 5 to "supplement the agency's operating fund or similar fund for use in law enforcement." Page 160 of 284 Audit Management Letter Special Revenue Funds Economic Development Fund This fund was established in 1998 to account for the activity of the Oak Park Heights Economic Development Authority. A summary of the financial activity of this fund is as follows: Prior Years 2019 Total Revenue: Earnings on investments $37,472 $1,013 $38,485 Interfund loan interest 1,113 - 1,113 Refunds and reimbursements 3,532 - 3,532 Sale of municipal property 76 - 76 Transfer from Capital Revolving Fund 410,000 - 410,000 Total revenue $452,193 $1,013 $453,206 Expenditures: Community development: Materials and supplies $645 $ - $645 Contractual services 45,914 - 45,914 Interfund loan interest 70,000 - 70,000 Capital outlay 290,018 - 290,018 Transfer to Capital Revolving Fund 11,113 - 11,113 Total expenditures $417,690 $0 $417,690 Fund balance - December 31, 2019 $35,516 During 1998, the City purchased the Bell property and demolished the building in 1999. In prior years, this fund had a deficit that was funded by a $260,000 interfund loan from the Capital Revolving Fund. This fund did not have the resources to repay the interfund loan. Therefore, the interfund loan was forgiven. If a sale of the Bell property occurs, the proceeds should be receipted in the General Fund (the Capital Revolving Fund was closed to the General Fund in 2019). During 2010, the City purchased property on Osgood Avenue, with the intent to resell the property. The purchase was funded by a $150,000 transfer from the Capital Revolving Fund. Page 161 of 284 Audit Management Letter Special Revenue Funds This was not a loan from the Capital Revolving Fund, but the intent is to transfer back sales proceeds to the Capital Revolving Fund (now the General Fund) once the property is sold. TIF District #1 Fund This fund was established in 2012 to account for Tax Increment District 1-1 (Oakgreen Commons). A summary of the financial activity of this fund from inception is as follows: The City issued a TIF Note in the principal sum of $1,200,000. The TIF Note is payable solely from "available" tax increment revenue. Available tax increment revenue is an amount equal to 80% of tax increment revenue received by the City. The City has no obligation on the note after February 21, 2026. The principal amount outstanding was $915,640 at December 31, 2019. (after payment of increment receivable in the December, 2019 Tax Settlement). Page 162 of 284 Prior Years 2019 Total Revenue: Tax increment $1,070,599 $237,217 $1,307,816 Investment income 5,298 6,618 11,916 Intergovernmental 9,500 - 9,500 Transfer in from TIF #2 5,049 - 5,049 Total revenue $1,090,446 $243,835 $1,334,281 Expenditures: General government: TIF note payment $855,950 $189,774 $1,045,724 Other 48,699 4,162 52,861 $904,649 $193,936 $1,098,585 Fund balance - December 31, 2019 $235,696 The City issued a TIF Note in the principal sum of $1,200,000. The TIF Note is payable solely from "available" tax increment revenue. Available tax increment revenue is an amount equal to 80% of tax increment revenue received by the City. The City has no obligation on the note after February 21, 2026. The principal amount outstanding was $915,640 at December 31, 2019. (after payment of increment receivable in the December, 2019 Tax Settlement). Page 162 of 284 Audit Management Letter Special Revenue Funds TIF District #2 Fund This fund was established in 2014. A summary of the financial activity is as follows: Prior Years 2019 Total Revenue: Investment income $190 $64 $254 Refunds and reimbursements 1,000 - 1,000 Total revenue $1,190 $64 $1,254 Expenditures: Land purchase $341,710 $ - $341,710 Other 61,989 378 62,367 Transfer to TIF # 1 5,049 - 5,049 Total expenditures $408,748 $378 $409,126 Fund balance - December 31, 2019 ($407,872) The fund deficit was financed by an internal loan from the General Fund. The district was formally established in 2017 and is located at Osgood and 60th Street. Page 163 of 284 Audit Management Letter DEBT SERVICE FUNDS Debt Service Funds Debt Service Funds are a type of governmental fund used to account for the accumulation of resources for the payment of interest and principal on debt (other than Enterprise Fund debt). The City maintained three Debt Service Funds during 2019. Financial projections for each fund/bond issue are presented on the following pages. Page 164 of 284 Audit Management Letter Debt Service Funds Capital Improvement Bonds of 2OO8/2O12A The bond was issued to finance construction of City Hall. The repayment of the bond issue is being funded by property tax levies. Taxes for 2009-2011 were levied in the Debt Service Fund. Since 2012, property taxes have been levied in the General Fund and transferred into the Debt Service Fund. In 2012, the Crossover Refunding Bonds of 2O12A were issued to refund the 2008 Bonds on December 15, 2016. The refunding resulted in a debt service savings of $404,000. A schedule of actual and projected tax levies (per the bond resolution) and debt payments are as follows: Page 165 of 284 City of Oak Park Heights, Minnesota Projection of Cashflow Capital Im rovement Bonds of 2008/2012A Cash and Current Total Cash and Current Assets Balance Property Bond Investment Projected Debt Assets Balance Year January 1 Taxes Proceeds Interest Receipts Payments December 31 2008 $ - $ - $242,303 $7,457 $249,760 $122,513 $127,247 2009 127,247 336,292 - 3,250 339,542 380,025 86,764 2010 86,764 392,805 1,656 394,461 391,650 89,575 2011 89,575 400,902 - 1,556 402,458 392,525 99,508 2012 99,508 400,000 5,191,283 5,197 5,596,480 403,030 5,292,958 2013 5,292,958 410,000 - (7,988) 402,012 521,677 5,173,293 2014 5,173,293 420,000 45,662 465,662 526,776 5,112,179 2015 5,112,179 430,000 30,720 460,720 535,175 5,037,724 2016 5,037,724 440,000 48,601 488,601 5,412,052 114,273 2017 114,273 410,000 1,003 411,003 410,252 115,024 2018 115,024 420,000 2,365 422,365 419,153 118,236 2019 118,236 430,000 4,359 434,359 432,753 119,842 2020 119,842 440,000 863 440,863 445,458 115,247 2021 115,247 460,000 862 460,862 458,258 117,851 2022 117,851 475,000 892 475,892 470,658 123,085 2023 123,085 490,000 944 490,944 492,658 121,371 2024 121,371 505,000 963 505,963 509,058 118,276 2025 118,276 520,000 984 520,984 539,958 99,302 2026 99,302 535,000 919 535,919 560,058 75,163 2027 75,163 550,000 819 550,819 569,294 56,688 2028 56,688 575,000 765 575,765 597,576 34,877 Total $9,039,999 $5,433,586 $151,849 $14,625,434 $14,590,557 Assumptions Property tax collection rate ..................................... 100% Investment interest rate ........................................... 0.50% Negative interest char ed to funds? ..................... no Page 165 of 284 Audit Management Letter Debt Service Funds Capital Improvement Bonds of 2014A The bond was issued as financing for the 2015 street reconstruction project. The repayment of the bond is being funded by property tax levies and special assessments. Taxes are levied in the General Fund and then transferred into the Debt Service Fund. Assessments are levied in the Debt Service Fund. A schedule of actual and projected tax and assessment levies (per the bond resolution) and debt payments are as follows: Page 166 of 284 City of Oak Park Heights, Minnesota Projection of Cashflow Capital Improvement Bonds of 2014A Bond Cash and Current Transfers/ Proceeds Total Cash and Current Assets Balance Property Special and Other Investment Projected Debt Assets Balance Year January 1 Taxes Assessments Receipts Interest Receipts Payments December 31 2014 $ - $ - $218,041 $87,054 $2,021 $307,116 $45,859 $261,257 2015 261,257 411,314 381,071 359,012 2,165 1,153,562 250,100 1,164,719 2016 1,164,719 139,000 220,052 - 11,586 370,638 482,425 1,052,932 2017 1,052,932 226,100 142,146 14,991 383,237 474,391 961,778 2018 961,778 142,000 125,263 14,876 282,139 466,357 777,560 2019 777,560 253,000 101,911 23,131 378,042 433,316 722,286 2020 722,286 139,000 73,303 7,273 219,576 425,300 516,562 2021 516,562 147,000 70,766 5,276 223,042 392,800 346,804 2022 346,804 149,000 68,004 3,600 220,604 385,800 181,608 2023 181,608 150,000 65,354 1,988 217,342 353,800 45,151 2024 45,151 152,000 62,672 654 215,326 344,050 (83,573) 2025 (83,573) 153,000 1,908 154,908 319,300 (247,966) Total $2,061,414 $1,530,491 $446,066 $87,561 $4,125,532 $4,373,498 Assumptions Special assessment collection rate .................... 100% Property tax collection rate ................................ 100% Investment interest rate .................................... 1.00% Negative interest charged to funds? .................. no Page 166 of 284 Audit Management Letter CAPITAL PROJECT FUNDS Capital Project Funds A summary of the financial activity of the Capital Project Funds for the year ended December 31, 2019 is as follows: Fund Revenues Expenditures Interfu nd Transfers Increase in Fund Balance Fund Balance 12/31/2019 Comments Capital Revolving $7,778 $ - ($392,167) ($384,389) $ - Closed tothe General fund in 2019 Budgeted Projects and Equipment Revolving 107,386 254,457 826,718 679,647 Received transfers from General, Water, Sewer and 4,209,641 Storm Sewer funds. Street Reconstruction 82,956 265,136 427,226 245,046 Received transfers from General fund. 2019 3,066,047 expenditures were for 58th and Stillwater Blvd. City Hall Improvements 1,715 53 (86,412) (84,750) - Park Development 15,111 1,523 - 13,588 529,017 Moelter Park 3,041 13,449 - (10,408) 95,799 Renewal and Replacement 147,353 69,120 319,741 397,974 Received transfers from General, Water, Sewer, Water 5,139,343 Connection, and Sanitary Sewer Connection funds. Storm Sewer Renewal/Replacement 50,963 1 - 109,445 160,408 1 Received transfer from General fund and Storm Sewer 1,874,803 Connection fund Water Tower Rehabilitation 63,477 1 40,479 103,956 722,040 Received transfer from Water fund Well Rehabilitation 4,044 1 7,086 11,130 151,247 Received transferfrom Waterfund Sewer Rehabilitation 1,790 - 17,913 19,703 81,097 Totals $485,614 $603,738 $1,270,029 $1,151,905 $15,869,034 Page 167 of 284 Audit Management Letter Capital Project Funds Budgeted Proiects and Equipment Revolving Fund The Budgeted Projects and Equipment Revolving Fund (formerly Capital Improvements Fund) was established in 1978 to account for monies set aside for various capital improvements. This fund is budgeted annually by the City Council in conjunction with the City's budget process. As part of such process, the City allocates the monies in this fund to specific projects and/or programs. Such allocation/designations were as follows at December 31, 2019: Page 168 of 284 Audit Management Letter Capital Project Funds Page 169 of 284 Purpose Fund Balance 12/31/18 Revenues and Transfers Expenditures Fund Balance 12/31/19 1 Sealcoat/crackseal $233,338 $100,000 $ - $333,338 2 Mill and overlay 514,950 200,000 30,035 684,915 3 Small City Grant 29,670 - - 29,670 4 City sign 6 6,158 6,164 - 5 Fire station 114,536 93,000 92,821 114,715 6 City Hall arkin lot - - - - 7 Municipal building 110,253 101,412 95,045 116,620 8 Recreation: - - 9 Park and trail improvements 351,154 50,000 - 401,154 10 Trail maintenance 51,070 20,000 - 71,070 11 Park building maintenance 308,948 - 2,934 306,014 12 Brekke Park memorial fund 394 - - 394 13 Compute s 78,195 25,200 5,428 97,967 14 CHIP digital maps 4,017 - - 4,017 15 Vehicles: - - 16 Police 214,703 62,500 - 277,203 17 Public works 218,619 55,175 - 273,794 18 Building official 238 - - 238 19 Furniture and equipment: - - 20 General 5,000 - - 5,000 21 Building inspections - - - - 22 Police 2,225 100 - 2,325 23 Trees 82,594 - 4,993 77,601 24 Emeraldashborer 120,000 - - 120,000 25 Public works equipment 219,915 19,000 - 238,915 26 Police radio e ui ment 50,080 5,000 - 55,080 27 Police computer equipment 32,612 6,000 - 38,612 28 Police Equipment - - - - 29 Backup software 9,388 - - 9,388 30 Coalition of utility cities 16,000 - - 16,000 31 Civil defense 26,134 3,000 - 29,134 32 Meter chane out 355,600 79,100 - 434,700 33 Generator replacement 21,000 3,500 - 24,500 34 Comprehensive plan 13,205 3,832 17,037 - 35 Tennis court resurface 20,000 - - 20,000 36 Council travel 4,000 - - 4,000 37 Unallocated 1 322,150 101,127 - 423,277 Totals L $3,529,994 $934,104 $254,457 $4,209,641 Page 169 of 284 Audit Management Letter ENTERPRISE FUNDS Enterprise Funds Enterprise funds account for water, sanitary sewer and storm sewer operations. Water Utility Fund A chart of income from operations for the past eight years is as follows: S1.200000 51.000,000 $800.000 $600,000 $400.000 $200,000 s - 'ill; IoI [ '01; IoIG ':It Rater Operating Revenue & Expense 'u18 2019. o T—fa Oa — cd.eed w AePr � cano-amd sm,m �P—A S—it. f OpeYimg F��e Page 170 of 284 Audit Management Letter Sewer Utility Fund A chart of income from operations for the past seven years is as follows: $1,200,000 51,000,000 $800,000 $600,000 sao0.000 $200,000 S- 2013 2014 2015 2016 Enterprise Funds Sewer Operating Revenue & Lxpeuse 2018 2019 Also during 2018, The City received $360,000 from Metropolitan Council for overcharges of sewer services from 2013 through 2017. OIYaras&r Out not related to Deer Dcprr =DD �w�Pawnal Serctices M 01her Expenses O MCES ....-w....... Page 171 of 284 Audit Management Letter Enterprise Funds The City's water and sewer rates for the past seven years are as follows: Page 172 of 284 Quarterly Rate Effective Effective Effective Effective Effective Effective Effective Type of Charge 01/01/13 01/01/14 01/01/15 01/01/16 01/01/17 01/01/18 01/01/19 Water: Base fee $30.70 $30.70 $38.19 $38.19 $38.19 $40.00 $40.00 Charge per 1,000 gallons for: Usage between 15,000 and 50,000 gallons $2.55 $2.55 $3.05 $3.05 $3.05 $3.35 $3.35 Usage between 50,000 and 99,000 gallons $3.05 $3.05 $3.55 $3.55 $3.55 $3.90 $3.90 Usage between 99,000 and 200,000 gallons $3.92 $3.92 $4.42 $4.42 $4.42 $4.86 $4.86 Usage in excess of 200,000 gallons $4.74 $4.74 $5.24 $5.24 $5.24 $5.78 $5.78 Sewer: Base fee $66.00 $66.00 $66.00 $70.50 $78.50 $81.00 $78.50 Charge per 1,000 gallons for: Usage between 15,000 and 50,000 gallons $4.60 $4.80 $4.90 $5.20 $5.40 $5.70 $5.70 Usage in excess of 50,000 gallons $4.90 $5.20 $5.30 $5.60 $5.75 $5.95 $5.95 Page 172 of 284 Audit Management Letter Enterprise Funds Storm Sewer Utility Fund The City created the stormwater utility during 1999. A monthly fee (effective October 1, 1999) was established at $1 per household and $10 per acre for commercial properties. The fee for vacant residential property is 50 cents per month and undeveloped commercial property is $1.50 an acre per month. A chart of income from operation for the past seven years is as follows: S1 m During 2018, The city transferred $36,000 from the Storm Sewer Utility Fund to the Budgeted Projects Fund for the Comprehensive Plan. Page 173 of 284 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 transfer for comprehensive plan Storm Revi S1 m During 2018, The city transferred $36,000 from the Storm Sewer Utility Fund to the Budgeted Projects Fund for the Comprehensive Plan. Page 173 of 284 Audit Management Letter Communication With Those Charged With Governance COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE We have audited the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of the City of Oak Park Heights, Minnesota (the City) for the year ended December 31, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated September 17, 2018. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City implemented GASB Statement No. 84, Fiduciary Activtites, for the year ended December 31, 2019. This new standard required activtiy that was previously reported as an Agency Fund, to now be reported within the General Fund. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of Page 174 of 284 Audit Management Letter Communication With Those Charged With Governance the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was management's estimate of pension related deferred inflows and outflows of resources, and pension expense. The estimate related to these items was based on actuarial studies. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements are Note 7 — Defined Benefit Pension Plans, and Note 18 — Subsequent Events and Uncertainties. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There are no uncorrected misstatements that have an effect on our opinion on the financial statements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Page 175 of 284 Audit Management Letter Communication With Those Charged With Governance Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 23, 2020. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Page 176 of 284 Audit Management Letter Communication With Those Charged With Governance Other Matters We applied certain limited procedures to the management's discussion and analysis, the budgetary comparison information, the schedules of proportionate share of pension liability, and the schedules of pension contributions, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on that RSI. We were engaged to report on the combining and individual nonmajor fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section, statistical section and other information section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Page 177 of 284 Audit Management Letter Communication With Those Charged With Governance Restriction on Use This information is intended solely for the information and use of the City Council and Management of the City of Oak Park Heights, Minnesota and is not intended to be, and should not be, used by anyone other than these specified parties. Page 178 of 284 - This page intentionally left blank - Page 179 of 284 THIS PAGE INTENTIONALLY LEFT BLANK Page 180 of 284 Oak Park Heights Request for Council Action Meeting Date Aril 28 2020 Time Required: 1 min Agenda Item Title: Business Administrator designation for Electronic Funds transfers Agenda Placement Consent Originating Department/Requestor Finance,— Betty Caruso Requester's Signature Action Requested Designate the Finance Director as the "Business Administrator" for PlPvtrnnir iilnrl tr- ,"ofn. „, r . , ...7 il_ ii_ _ __. ) — i — — Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): In accordance with the legal compliance for claims and disbursements and as referenced in the city's purchasing policy there needs to be an annual designation by the council of the financial officer to have the authority to make electronic funds transfers. This is referenced in our purchasing policy as the "Business Administrator". Electronic funds transfers are used in the city for payments of payroll and related benefits and a vendor payment for our utility payment processing service. Finance Policies and Procedures are developed and practiced to insure that the City is in compliance with the MN Statutes and for guidelines in order to protect internal controls. Both of these areas are reviewed by the Auditors every year with the legal compliance audit and a test of internal controls. Therefore, please designate the Finance Officer, Betty Caruso as the Business Administrator as defined in the purchasing policy and giving authority to make electronic funds transfers. Page 181 of 284 THIS PAGE INTENTIONALLY LEFT BLANK Page 182 of 284 Oak Park Heights Request for Council Action Meeting Date Aril 28 2020 Time Required: 1 min Agenda Item Title: Liability Coverage — LMCIT Waiver of Statutory Tort Limits Agenda Placement Consent Originating Department/Requester Finance —Betty Caruso Requester's Signature- (�, . Action Requested Waive the statutory tort limits for City liability insurance as offered by the LMCIT for 2020-2021. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): The City's statutory tort limits for liability are $500,000 per individual, $1,500,000 per occurrence/aggregate. If the City chooses to "waive the tort limits to the extent of the insurance coverage purchased" the limits would then become $2,000,000 per individual and $2,000,000 per occurrence/aggregate. The increase in premium cost to the city for "waiving the limits" is estimated to be $1,500. In effect, the City is purchasing increased insurance coverage. The City has typically made this choice of "waiving the limits" and acquiring more coverage. Staff does recommend the "waiving of the limits" as expressed above as it provides addition liability coverages for minimal cost. Page 183 of 284 D LMCLAGUE MINNESOTA CITIES LIABILITY COVERAGE — WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before the member's effective date of coverage. Return completed form to your underwriter or email to Dsteehnlme.oro_ The decision to waive or not waive the statutory= tort limits must be made annually by the member's governing body, in consultation with its attorney if necessary. Members who obtain liability coverage fi-om LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: • If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. • If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. LEAGUE OF MINNESOTA CITIES 145 University Avenue West d: (6S1) 281-1200 INSURANCE TRUST �"s (GS1) 281-1298 St. Paul, Minnesota 55103 =: (800) 925-7122 Page 184 I c.org w0H LMCIT Member Name: Check one.- The ne:The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. ' 466.04. The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. & 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member's governing body meeting: Signature: K, Position: Page 185 of 284 THIS PAGE INTENTIONALLY LEFT BLANK Page 186 of 284 Meeting Date SO - Oak Park Heights Request for Council Action April 28, 2020 Agenda Item Approve Renewal of Consumption and Display Permit for St. Croix Yacht Club Time Req. 0 Agenda Placement Consent Originating Department/Requestor Requester's Signature Action Requested Approve Administration/Jennifer Pinski Background/Justification (Please indicate any previous action has been taken or if other public bodies have been advised). Consumption and Display Permits are issued by the State of Minnesota but require local approval (MN Stat 304A.414, Subd. 5). This permit allows for a business to allow consumption but not sell alcohol. Staff has reviewed the permit and is recommending approval by the City Council. Page 187 of 284 Iden: 68321 St. Croix Yacht Club Minnesota Department of Public Safety Alcohol & Gambling Enforcement Division 445 Minnesota Street St Paul , Minnesota 55101 651-201-7507 RENEWAL OF CONSUMPTION AND DISPLAY PERMIT Permit Fee $250 (Renewal Date: April 1) License Code: CDPRV Business Phone: 6128896581 DBA: - 6413 St. Croix Trail N Oak Park Heights, MN 55082��`l'Crtt P d�tE`a5 Worker's Comp. Ins. Name Policy No. Policy Period City/County where permit approved Licensee Name IF NAME AND ADDRESS SHOWN ARE NOT CORRECT, MAKE CHANGES BELOW Address, City, State, Zip PQkCA\t �v,\ .W d �.fess V_*�10 �6(rd oZ� l ( �i k4 c o �kji,u q Ni N Business Phone Email -SC-:LU_--7--L"v( -1 t C- LC, -T -A iAcItT Cti�,E� .6DW*\ By signing this renewal application, applicant certifies that there has been no change in ownership, corporate officers, bylaws, membership, partners, home addresses, or telephone numbers. If changes have occurred during the past 12 months, please give details on the back of this renewal, then sign below. Applicant's signature on this renewal confirms the following: Failure to report any of the following will result in fines. 1. Applicant confirms that it has never had a liquor license rejected by any city/township/county in the state of Minnesota. If ever rejected, please give details on the back of this renewal, then sign below. 2. Applicant confirms that for the past five years it has not had a liquor license revoked for any liquor law violation (state or local). If a revocation has occurred, please give details on the back of this renewal, then sign below. 3. Applicant confirms that during the past five years it or its employees have not been cited for any civil or criminal liquor law violations. If violations have occurred, please give details on the back of this renewal, then sign below. 4. Applicant confirms that workers compensation insurance is in effect for the full license period. 5. Applicant confirms, no club on -sale intoxicating liquor license is held. 6. Applicant confirms business premises are separate from any other business establishment. Additional information to be provided as is necessary - Indicate (on back of page) changes of corporate officers, partners, home addresses or telephone numbers: Report (on back of page) details of liquor law violations (civil or criminal) that have occurred within the last five years. (Dates, offenses fines or other penalties, including alcohol penalties): Report(on back of page)any license rejections or revocations: Cit ounty Comments: Licensee Signature Date (Signature certifies all application information to be correct and permit has been approved by city/county.) City Clerk/County Signature Date (Signature certifies that a consumptions and display permit has been approved by the city/county as stated above.) MAKE CHECKS PAYABLE TO: DIRECTOR ALCOHOL AND GAMBLING ENFORCEMENT AND RETURN WITH APPLICATION. Amount Received Page 188 of 284 Oak Park Heights Request for Council Action Meeting Date April, 28t1'. 2020 Time Required: 5 Minutes Agenda Item Title: MENARDS - EXTENSION REQUEST AMENDED CONDITIONAL USE PERMIT — YARD ENTRANCE Agenda Placement New Business Originating Department/Requestor: Eric Johnson, City Administrator Requester's Signature Action Requested Discussion, Possible Action Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Menards has requested a one-year extension to the approvals granted by the City on April 23rd, 2019 This would take their approval date through April 2021.See the attached letter. In general, these approvals once issued lapse after 12 months. That approval resolution is attached. Extensions may of course be granted by the Council, but is more specifically outlined in City Ordinance 401.03.C.4 (attached). This process relates to Conditional Use Permits specifically. Also, there have not been any zoning or planned land use changes anticipated with the City's 2018 Comprehensive Plan for this area. Therefore, the proposed use to the site remains generally acceptable for the area. Staff does not anticipate any practical difficulties with some extension, and would recommend to the Council to support an extension, but that the project commences actual construction by October lst, 2020. This is in essence a six-month extension. The thought being that if they are not under construction by then, the winter season will not allow project to begin prior to the April 2021 timeline and such deadline would come due again. Enclosures: 1. Menards letter -dated April 3rd, 2020. 2. City Ord. 401.03.C.4 3. Copy of Issued Amended CUP Resolution - from April 2019. Page 189 of 284 �L�, INC. April 3, 2020 VIA Email City of Oak Park Heights Attn: Julie Hultman 14168 Oak Park Blvd N Oak Park Heights, MN 55082 RE: Menards Conditional Use Permit Extension Dear Ms. Hultman, Menard, Inc. is requesting a one year extension to the Conditional Use Permit issued by the Oak Park Heights City Council on 4/23/19 for the yard gate expansion project. Menards fully intends to proceed with the project as it was originally designed and approved. However constructing this gate addition at all store locations across the country is a large task and some projects have been pushed back to the 2020 construction season. Please let members of the staff and Council know that there are no changes being made to the plans they reviewed. If you have any questions please feel free to reach out to me directly. Thank you. Sincerely, Menard, Inc. ✓ yIer Edwards Real Estate Representative Menard, Inc. 5101 Menard Drive Eau Claire, WI 54703 0:715.876.2143 C: 715.579.6699 tedwards@menard-inc.com Page 190 of 284 5101 MENARD DRIVE EAU CLAIRE, WI 54703-9625 PHONE (715) 876-5911 FAX (715) 876-2868 4. Lapse of Approval. a. Unless the City Council specfficaliy approves a different time when actiion i officially taken an the request, the conditicmal use permit shall became null and void twelve ( 1 2) months after the date of approval, unless the property owner or applicant tray substantially started the Mnstruchon of any building, structure, addition or alteration, or use requesled as part of the conditional use_ The property owner or applicant shall have the right to submit an applicabon for time extension in accordance with this section. b. An application to extend the approval of a conditional use penult shall be submitted to the Zoning Administrator not less than thirty (00) days before the expiration of said approval- Such an application shall state the facts of the request, showing a good faith attempt to utilize the permit, and it shall state the additional tirne being requested to begin the proposed oonsWiction. The application shall be hearts and decided by the City Council prior to the iapse of approval of the original request. C. In making its determination on whether an applicant has made a good faith attempt to utilize the conditional use permit, the City Council shall consider such factors as the type, design, and size of the proposed construction, any applicable restrictions on financing, or special andlor unique circumstances beyond the control of the applicant which have caused the delay - Page 191 of 284 RESOLUTION ND.19_ 04.23 CITY COUNCIL CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ESTABLISHING FINDINGS OF FACT AND RESOLUTION OF THE CITY COUNCIL THAT THE REQUEST BY MENARDS FOR CONDITIONAL USE PERMITS AND DESIGN GUIDELINES/SITE PLAN REVIEW FOR AN ADDITION TO THE GATE BUILDING AND SITE CHANGES AT 5800 KRUEGER LANE NORTH BE APPROVED WITH CONDITIONS WHEREAS, the City of Oak Park Heights has received a request from Menards for Conditional Use Permits for setback and parking and Design Guidelines. Site flan review for an addition to the gate building and site changes at 5800 Krueger Lane North; and after having conducted a public hearing relati\ e thereto, the Planning Commission of Oak Park Heights recommended that the request be approved with conditions. The City Council of the City of Oak Park Heights makes the following findings of fact and resolution: 1. The real property affected by said application is legally described as follows, to wit: S1'1- .,\-1,"1.\C'l IMI N 1- :\ and 2. '111e allplicant has submitted an application and supporting documentation to the Community De. elopment Department consisting of the following items: SEE ATTACHMENT B and 3. 1 11c l)rnl)ert\ is zoned B-2 General Business District in which retail uses are a permitted use: ,incl 4. A Conditional [?se Permit is required to reduce the front yard setback to Krueger Lane; and 5. The front yard setback requirement in the B-2 District is 40 feet. The current gate buildinL is setback 40 feet 11-011, the° rid 1t of wat line of Krueger Lane, but the expansion of the rate budding will result in a setback ot'22 feet; and Page 192 of 284 6. A Conditional I ,C Permit is required to allow a redtictioii in parking from the approved parkin, requirements liar the site; and 7. 1n NIarch of 19'25. 11cnards \\ its grarited a parking, \"arlaiice Ii)r a reduction in the regtllred num 1.1Ci- f',paces. .'1I the timk:c 461 — sTLICCS \oc1'e regtlired, and the \"II-Iall CC aII()%iCd t()I the Site ti) he constrticted N�itli 405 ;paces. Cul'1-CnII\ there are 402 spaccs on the site. Ft'�c e spaces \i III he renim ed NN ith the proposed gate htiIIdIlig addition resui1111�1, in a tot,li Of' '',, -?5 parkin. ,paces on Sitc. I lie /onili Ordill111ce nowa]Io\\s i reduction in req uirctl p,lrking spaces hr CondiIil7nal I'se IlerniIi: ,,Iicl 8. Change to the exterior of'tht htlilciin` and site Chan' -'Cs rccluirc DCsi(n Guideiines,Site Plan review; and `�. The request includes a request for the addition A' an atno)nlated e\llres lane 1() t1iC -,atc huildin?. I he ne\N lane r'` -ill be co\ercd by an c.m nsion ti)filie (•\istilik' CaMTN Lirld the ]ic`.\ f,ll;crl ils will match the stcCI fr[)lit Ili7d ]i 11C stec roof'materialsofthe e\i stinc, canopti. Parking spaces \\-ill he rcniox-ed. the fence II he replaced, and landscaping \N ill he removed and replaced: and 10. ('itv staff, prepared a planning' report dated March ?H. 101 ) the request; and 11. Said report recommended approval of the Conditional l se Permits and Design Guidelines :Site 1'lali rc`, lc�' in that the project is in conformance \\ itll the Criteria for Conditiomil t'sc Permit alid I)CSi�,'n GL11dehI1e,'SI1e Plan appro%al. ')aid i'CC[lniiliell�I',ttlt)II %4a1 tit11))CCt 10 the i�ullilltilcnt of conditions; and I lie Plannlm'y C onirnission held a public hearing at their April f I . M 9 meetinL . tt)Ok ccininie its from the applicants and public. cl()sccl the public hearing. and reccmimended that the application be approN ed with eonditinlls. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITYOF ()AK PARK HEIGHTS THAT THE CITY COUNCIL APPROVES THE F0 1.I.0"-IlliG: A. I lie application submitted by Menards t()r Conditional t se Permits for setback amid parkinL� and Design Guidelines/Site Plan rex icx� for an addition to the gate building and site chanes for at 5800 Krueger Lane and affectin�- the real property as follows: SEE ATTACHMENT A Be and the same as hereby approved by the City Council of the City of Oak Park Heights for appro%al \. ith the I'e71im\ in- conditions: All 114dht lirtureti shall he I'ull cut off and he consistent with Section 401.15.B.7 Of 111e r'onin4= ()1'(1Il1illiLL a, it reI'Lite, t[) 112111111`,! r -e Lllllrciliclits. Page 193 of 284 2. ,111 1 rl, Shall lac d sigi-icd to compl\ with the tonin., Ordinance requirements for SI/C. rtun`Iher. placement and internal illumination. Staff will apl71-o%e the lighting specific rtions for the signs at the time of per-mittinu, Fhe sitpi li�i�tin� should be designed such that only the text and 1OLo portions OF the sitrns ar-e to he lit at night. The sign background %gill need to be dark. 3. Hie CM Council approves the building design and building materials. 4. "l lie drainage and utilit% plans shall be subject to review and approval of the Cm l.ii.:ineer and the Bro\\ ns 0 -eek Wam-shed District. �. l lie landscape flan shall be subject to 111e re\ ic\\ "end approval of the City "1rK)rist. Menards shall remoN c and replace the trees alone; Krueger Lane as 1'cccrn1I11cr7ded bti the 0t%- Arborist- The trees �\ould need to be guaranteed for Urle 'Cl!' a11e]' 0 �'plcrcen7enl or 11 the} are moN ed. Approm cd bN the Cit% Council of the Citi of oak Park llci�,hts this 23�d Day of April 2019. 3 Page 194 of 284 Oak Park Heights Request for Council Action Meeting Date April 28th, 2020 Time Required: 5 Minutes Agenda Item Title: Zephyrp LLP, (Pony Express Car Wash) 5970 Neal Ave. Site Guidelines and Site Plan Review. Agenda Placement New Business Originating Department/Requestor: Eric Johnson, City Administrator Requester's Signature Action Requested _Discussion, Possible Action Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Please see the following from Scott Richards, City Planning Consultant 1. Staff Report dated 4/15/20 as presented to the Planning Commission; 2. Planning Commission Resolution (unsigned) 3. Proposed City Council Resolution. Page 195 of 284 TPC3601 Thurswn Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231.5840 Facsimile: 763.427.0520 TPC@PlanningCo.com PLANNING REPORT TO: Eric Johnson FROM: Scott Richards DATE: April 15, 2020 &dmw , 2, RE: Oak Park Heights — Pony Express/Sudz Car Wash — Amended Conditional Use Permit for Site Changes and Design Standards Review for Building — 5970 Neal Avenue North TPC FILE: BACKGROUND 236.02 — 20.04 Mark Fuhr of Zephyr Group, LLP has made application to make site plan and building changes at the Pony Express Car Wash at 5970 Neal Avenue North. The car wash will be rebranded as Sudz Car Wash. The application consists of a request for an Amended Conditional Use Permit to allow changes to a car wash in the B-2 General Business District, and Site Plan/Design Guidelines review. The changes will consist of changes to the building materials on the exterior of the site, addition of outdoor vacuum stations, an increase in size of the parking lot, and changes to the signage. EXHIBITS The review is based upon the following submittals: Exhibit 1: Project Narrative Exhibit 2: Email from John Hanson, Valley Branch Watershed District Exhibit 3: Site Plan — Al Exhibit 4: Survey/Existing Conditions —1 Exhibit 5: Grading and Erosion Control — 2 Exhibit 6: Aerial Photo of Site Exhibit 7: North and South Building Elevations Exhibit 8: East and West Building Elevations Exhibit 9: West Elevation Sign Plan Exhibit 10: North and South Elevations Sign Plan Page 196 of 284 Exhibit 11: Monument Sign — Sign Face Plan and Sign with Monument Exhibit 12: Pay Canopy Elevation Exhibit 13: Vacuum Canopy Elevation Exhibit 14: Pictures of Vacuum Stations and Canopy (2 pictures) Exhibit 15: Specifications for Vacuum Unit Exhibit 16: Entrance Doors with Signage Exhibit 17: Lighting Plan (2 sheets) Exhibit 18: NV Series Parking Lot Light Picture Exhibit 19: NV -W Wall Pack Light Picture Exhibit 20: Down Arrow Light Picture Exhibit 21: Report of the City Engineer PROJECT DESCRIPTION The project narrative provides the following description: We are excited to work with you to reimage the Pony Express Car Wash into its next era. Please review our application to install vacuum stations and change the curb line. These changes are extremely important to the viability of the business and the timeliness to get the project completed. The main change in the business is the addition of the express lane with unlimited monthly memberships and the free vacuum islands. This is the model of all new express car washes being built today. We need to add a canopy over the pay station with approved shielded lighting. Directional information lighted signs above the three entrance doors for each lane with a green arrow or red X to indicate lane open or closed. The signs are to say: Bay 1 Full Service Bay 2 Full Service Bay 3 Exterior Express New garbage enclosure with siding that is to match the new building exterior. A lighted menu sign between Bay 9 and 2 for the Full -Service customers. I have provided noise decibel spec sheets on the vacuum unit. 2 Page 197 of 284 The building is to be completely reimaged on the exterior. We are framing out all of the exterior walls of the building so that insulation can be added to the entire building and improve the energy efficiency. Installing all new exterior lighting with some architectural lights per city approval and codes. The reimagined building will also include changing the name from Pony Express Car Wash to Sudz Car Wash. The exterior colors are shown. The steel is made by Firestone with a 20 -year warranty on the finish. The multiple color is a product made by Nichila with a 10 year warranty. We will submit and apply for lighting and signage application as soon as we have it finalized. John P. Hanson from Valley Branch Watershed District has indicated no permit will be required since the project will have an impact less than 6000 square feet. I have sent a copy of his email also. ISSUES ANALYSIS Comprehensive Plan. The property is designated as Commercial on the Proposed Land Use Map. The car wash is consistent with that land use designation. Zoning. The property is zoned B-2 General Business District and a Conditional Use Permit is required to allow car washes in this District. The original Conditional Use Permit for the Pony Express Car Wash was approved in February of 2001. An Amended Conditional Use Permit will be required for the changes to the site. Design Standards/Site Plan review is also required. Section 401.30.E.2 of the Zoning Ordinance lists the criteria for review of a car wash. A review of those criteria is included in this report. The District requires a 40 -foot front yard setback,10-foot side yard setback and 20 -foot rear yard setback. The building meets or exceeds these requirements and no changes are being made that would expand the building. The building height maximum in the 13- 2 District is 35 feet. At its highest point, the building will be within the building height maximum. Access. The site is currently accessed by one curb cut from Neal Avenue North. The access is not changing with this request. Parking. Section 401.15.F.9 of the Zoning Ordinance requires eight parking spaces and one additional space for each 800 square feet of floor area over 1,000 square feet. The parking calculation for this site is as follows: Page 198 of 284 8 parking spaces 8 spaces 8882 square feet x .9 = 7,993 / 800 = 10 spaces Total Requirement 18 spaces The site plan indicates that 10 parking spaces will be added along the entrance driveway into the site. That is in addition to the existing 10 parking stalls that will be vacuum stations. The 20 stalls with one disability accessible stall will satisfy the requirements. There are an additional seven stalls on the north side of the building. The site plan indicated that the parking stall stripes will be removed. These stalls are not required for the parking requirement. Grading/Drainage/Utilities. Grading and drainage plans for the expansion of the parking area have been provided by the Applicant. The parking area will extend into the existing drainage easement by 512 square feet. The City Engineer has provided a report. There are no changes to the utilities as part of this project. John Hanson of the Valley Branch Watershed District has indicated that no permit will be required from their agency in that the impact is less than 6,000 square feet. Trash and Vacuum Enclosure. A trash enclosure is shown on the site plan and will be located near the west side of the building. The plans also indicate the location of the vacuum system. Both the trash and the vacuum will be provided enclosures that will utilize the same metal material and colors as the building. A spec sheet for the vacuum system has been provided. At 10 feet the sound will be 79 decibels and at 100 feet, 59 decibels. The proposed enclosure should provide some sound mitigation for the system. If the vacuum system creates issues for surrounding businesses, the City Council may require the Applicant to take additional sound dampening measures. Vacuum Canopy. The plans indicate that the vacuum units will be covered with a canopy structure. The structure will also be lit with LED fixtures. The light fixtures will need to be fully cut off with all light directed toward the ground. No light shall shine through the canopy cover. Pay Station Canopy. A canopy will also be added above the existing pay station. Directional signage will be added that will not be lit. As with the vacuum canopy, the pay station canopy will be lit and be required to be fully cut off with all light directed toward the ground. Lighting Plans. Fixtures. The lighting plan indicates that the parking lot lighting will be replaced in the same locations with full cut off fixtures. The specifications do not indicate a height of the pole and base. The Zoning Ordinance specifies a total height of not more than 25 feet. The specifications also indicate full cut off building mounted light fixtures. 4 Page 199 of 284 Photometrics. The photometric plan only indicates the light intensity on the paved areas, although the light will extend beyond those curb lines. A revised photometric plan will be required showing the light intensity at all property lines. The light intensity is required to be less than one -foot candle at the centerline of adjacent streets and 0.4 - foot candles at the property line. Hours. Outdoor lighting for parking lots shall be turned off one hour after closing, except for approved security lighting. Landscaping. There are no changes proposed within the existing green area setbacks or landscaping for the building. Mechanical Screening. The plans do not indicate any changes to the existing mechanical equipment. Any exterior mechanical equipment, either on the roof or ground mounted will need to be screened in accordance with Section 401.15.E.10.e. of the Zoning Ordinance. Signage. Freestanding Sign. The plans indicate that the existing freestanding sign will be updated with a new face and electronic reader board. The sign is proposed to be less than seven feet in height. The sign face will be approximately 77.8 square feet and the reader board 30 square feet or 38 percent of the total size of the sign. The sign regulations require the reader board sign to be no more than 35 percent of the total sign area. Additionally, the message is not allowed to change any more than every 10 seconds. The Zoning Ordinance allows for one freestanding sign not exceeding 20 feet in height and 100 square feet in sign area. Wall Signage. The Zoning Ordinance allows for a total of three wall signs, each on separate facades. The proposed sign plan indicates three wall signs, one on the west, one on the south and a third on the north elevation. Total Allowable Signage. The site is within the Destination Retail Sign District. The total square footage of signage shall not exceed 500 square feet of wall signs for the site and each of the signs cannot exceed 250 square feet each or 10 percent of the wall area. The proposed wall signs are as follows: Sin Square Feet Total No. of Signs Total Square Feet North Elevation: 112 1 112 South Elevation: 84 1 84 West Elevation: 84 1 84 5 Page 200 of 284 TOTAL 1 1 3 1 280 As indicated above, the three wall signs are compliant with the overall square foot allowance and what is allowed per building elevation. There will be three above door directional signs at the car wash entrance with down arrow signage below. These signs are directional and do not count toward the sign totals. There are directional signs on the pay canopy. Sign Illumination. The wall signs, monument signs and directional signs are to be internally lit. The wall signs are individual channel letters with internal LED illumination which is compliant. The monument sign is to be back lit as are the directional signs. The sign lighting should be designed such that only the text and logo portions of the signs are to be lit at night. The sign background will need to be dark. Staff will approve the lighting specifications for the signs at the time of permitting. Design Guidelines. Architectural Guidelines. Fagade Treatments The building will have a definite base, middle and top on all facades. Note that Exhibits 7 and 8 indicate the proposed building elevations. These differ from Exhibit 9 and 10 that represent only the sign locations and size. Ground Level Expression This is a one-story building with a raised roof feature near the center of the south elevation and varying roof lines. Some of the doors and windows are highlighted by a metal awning structure. Transparency The building uses glass on all of the facades. The Design Guidelines requires at least a 20 percent transparency on ground floor, street facing facades. The transparency of the building is existing and additional glass area is not being altered. Entries The building features the main entrance and exit for vehicles on the west and east elevations. The entry doors are prominent as one enters the site. Roof Design The roofline is broken by a varying roof line and a gable roof on the south elevation. 6 Page 201 of 284 Building Colors The Design Guidelines indicate that building materials should accent, blend with, or complement the surroundings. Warm toned colors are encouraged. The primary colors are gray and blue. The Planning Commission should comment. Building Materials and Colors The applicant has provided elevations color elevations for review. The facades will be a finished metal wall panel with two shades of gray to add contrast and a blue accent material. The Planning Commission should comment on the acceptability of this building material. Building material samples will be available at the Planning Commission meeting. Franchise Architecture The building is not a franchise design. Site Design Guidelines Building Placement The proposed building has the main entrance facing the access driveway. Parking Areas The parking area is landscaped with perimeter plantings. Stormwater Stormwater will be addressed in the City Engineer's report. Pedestrian and Common Space Currently, there is a trail adjacent to the subject property on County Rd 15. Landscaping The site has been landscaped. Trees/Shrubs No changes are proposed to the existing landscaping. Fencing No fencing is proposed. Utilites/Service/Loading/Drive-Throuqh/Storage Areas Addressed elsewhere in the planning report. Lighting Addressed elsewhere in the planning report. Signage Addressed elsewhere in the planning report. 7 Page 202 of 284 Pedestrian/ Bicycle Routes As indicated, a trail is located along County Road 15 adjacent to the site. Conditional Use Permit Review Criteria. The CUP criteria found in Section 401.30.E.2. for review are found as follows with staff comments: 2. Car washes (drive through, mechanical and self-service) provided that: a. The architectural appearance and functional plan of the building and site shall not be dissimilar to the existing buildings or area as to cause impairment in property values or constitute a blighting influence within a reasonable distance of the lot. Comment: The building exterior finish will be changed to a metal panel system. The Planning Commission should comment. b. Magazining or stacking space is constructed to accommodate that number of vehicles which can be washed during a maximum thirty (30) minute period and shall be subject to the approval of the City Engineer. Comment: There is adequate stacking space for vehicles. C. At the boundaries of a residential district, a strip of not less than five (5) feet shall be landscaped and screened in compliance with Section 401.15.E. of this Ordinance. Comment: The site is not adjacent to a residential use and the setbacks exceed five feet. d. Parking or car magazining storage space shall be screened from view of abutting residential districts in compliance with Section 401.15.E. of this Ordinance. Comment: There is no residential use that is impacted by this use. e. The entire area other than occupied by the building or plantings shall be surfaced with material which will control dust and drainage which is subject to the approval of the City Engineer. Comment: The driveways and parking areas are paved. f. The entire area shall have a drainage system which is subject to the approval of the City Engineer. Comment: A stormwater drainage system is installed. 8 Page 203 of 284 g. Al! lighting shall be hooded and so directed that the light source is not visible from the public right-of-way or from an abutting residence and shall be in compliance with Section 409.95.8.7 of this Ordinance. Comment: All lighting will be required to be in compliance with the Zoning Ordinance. h. Vehicular access points shall be limited, shall create a minimum of conflict with through traffic movement and shall be subject to the approval of the City Engineer. Comment: There is one vehicle access point and traffic movements were addressed when the car wash was first constructed. All signing and informational or visual communication devices shall be in compliance with Section 409.95. G. of this Ordinance. Comment: The signs will be required to be in compliance with the Zoning Ordinance. Provisions are made to control and reduce noise. Comment: The vacuum system will be screened. The City Council may require the Applicant to take additional sound dampening measures if noise from the vacuum system is an issue. k. The provisions of Section 409.03.A.8 of this Ordinance are considered and satisfactorily met. Comment: The provisions of Section 401.03.A.8 of the Zoning Ordinance have been reviewed and City Staff and has determined that there are no conflicts with the criteria. The Planning Commission should review the criteria as part of making their findings. CONCLUSION / RECOMMENDATION Upon review of the requests for site plan and building changes at the Pony Express Car Wash at 5970 Neal Avenue North including an Amended Conditional Use Permit to allow changes to a car wash in the B-2 General Business District and Site Plan/Design Guidelines review, City Staff would recommend the project with the conditions as follows: The grading and drainage plans shall be subject to the review and approval of the City Engineer. 9 Page 204 of 284 2. If the vacuum system creates noise issues for surrounding businesses, the City Council may require the Applicant to take additional sound dampening measures. 3. The light fixtures for the vacuum canopy shall be fully cut off with all light directed toward the ground. No light shall shine through the canopy cover. 4. The light fixtures for the pay station shall be fully cut off with all light directed toward the ground. No light shall shine through the canopy cover. 5. All lighting fixtures shall be full cut off and installed in compliance with the lighting standards of the Zoning Ordinance. The total height of the ground mounted light fixtures shall not exceed 25 feet. A revised photometric plan shall be required indicating the light intensity to all property lines. 6. The outdoor lighting shall be turned off one hour after closing, except for approved security lighting. 7. Mechanical equipment that is located on the roof or visible from street level or from neighborhood properties shall be screened with materials that blend harmoniously with the building fagade materials. 8. The monument sign plan shall be revised so that the reader board sign is no more than 35 percent of the total sign face. 9. All signage shall be subject to final review and approval of City Staff for conformance with Zoning Ordinance standards. The sign lighting should be designed such that only the text and logo portions of the signs are to be lit at night. Staff shall approve the lighting specifications for signs at the time of permitting. 10. The Planning Commission should comment on the building material selection and colors. Pc: Julie Hultman 10 Page 205 of 284 Zephyr Group LLP 322 19th Street SW Forest Lake, MN 55025 Phone: 651-272-5459 Fax: 651-272-54560 March 25, 2020 Dear Oak Park Heights, We are excited to work with you to re image the Pony Express Car Wash into its next aria. Please review our application to install vacuum stations, change the curb line. These changes are extremely important to the viability of the business and the timeliness to get the project completed. The main change in the business is the addition ofthe express lane with unlimited monthly memberships and the free vacuum islands. This is the model of all new express car washes being built today. We need to add a canopy over the pay station with approved shielded lighting. Directional information lighted signs above the 3 entrance doors for each lane with a green arrow or red X to indicate lane open or closed The signs are to say Bay 1 Full Service Bay 2 Full Service Bay 3 Exterior Express New garbage encloser with siding that is a match to the new building exterior. A lighted menu sign between bay 1&2 for the Full Service customers. I have provided noise decibel spec sheets on the vacuum unit. The building is to be completely reimage on the exterior. We are framing out all of the exterior walls of the building so that insulation can be added to the entire Page 206 of 284 building and improve the energy efficiency. Installing all new exterior lighting with some architectural lights per city approval and codes. The reimagined building will also include changing the name from Pony Express Car Wash to Sudz Car Wash. The exterior buildings colors are shown.The steel is made by Firestone with a 20 year warranty on the finish. The multiple color is a product made by Nichiha with a 10 year warranty. We will submit and apply for lighting and signage application as soon as we have it Finalized, they are still working on it as of this. John P Hanson from Valley Branch Watershed has indicated no permit will be required since the project will have a impact less than 6000 square feet. I have sent ! a copy of his email also. Matt Kind from M&P has reviewed the plan and is in the process of updating the drawing and getting the survey completed. They are on a limited office access so he is doing the best he can for me. His calculations also show the impacted area less then 6000 square feet. Mark Fuhr Vice President Zephyr Group LLP Page 207 of 284 Grp il 4 Mark Fuhr <mark@fuhrent.com> i Fwd: Car Wash, Oak Park Heights/Valley Branch Watershed District 1 message Mark Fuhr <mark@fuhrent.com> To: Mark Fuhr < mark@fu h rent. com> Mark Fuhr Fuhr Enterprises Inc. Car Wash Technologies Main 612-408-9010 Cell 612-791-4909 www.carwashtechnologiesmn.com Begin forwarded message: Tue, Mar 24, 2020 at 12:18 PM l From: Matthew Kind <mkind@mpasso.com> Date: March 24, 2020 at 11:52:51 AM CDT To: Mark Fuhr <mark@fuhrent.com> Subject: FW: Car Wash, Oak Park Heights/Valley Branch Watershed District From: John P. Hanson <JHanson@barr.com> Sent: Tuesday, March 24, 2020 11:49 AM To: Matthew Kind <mkind@mpasso.com> Subject: Car Wash, Oak Park HeightsNalley Branch Watershed District Hi Matt, It might be easier to communicate via email. If the project will create 6,000 square feet of new or fulling reconstructed impervious surfaces, it requires a Valley Branch Watershed District permit. There are other permit triggers, but that one seems the most applicable. Valley Branch Watershed District permit application materials are rules are here: https://vbwd.org/permitting/vbwd_permit_information_and_ forms/index.php Page 208 of 284 If 6,000 square feet of new or fully reconstructed impervious surfaces are created, stormwater runoff needs to controlled. It's complicated in Oak Park Heights because I understand that the city might not allow infiltration of stormwater. However, this site drains to a lake that is currently at its 100 -year flood level and several residents are very concerned about flooding— so the Valley Branch Watershed District Board will unlikely allow a permit that does not control its runoff volume. John John P. Hanson, PE Valley Branch Watershed District Engineer Barr Engineering Co. 4300 MarketPointe Drive I Bloomington, MN 55435 office: 952.832.2622 cell: 612.590.1785 JHanson@barr.com I www.barr.com I www.vbwd.org cid: 1 682f6e06504cff31 1 Page 209 of 284 TO T4 3 e10sauulyy 'jaaeMipS 'N OAV IeBN 0L6S j z H S V M O1nV E S S 3 21 d X 3 A N 0 d��' =<- eall Page 210 of 284 WdOWH�pi'1 an�o��. SZOSS NW 'a�lDl }s3jo3 NW 'say !aH Hood �Io0 'N 'IV pp i1lQiihl��•W MN }98J}5 4}6l ZZf 110ON OL6S F HStlM 21tlO SS321dX3 ANOd i 8 N • „� "° =- dii `dnodo LLkHd3Z NOLMOW30 � : a " NMO SNOLLIONOO ONLLSIX3 '�a s a A3A8ns 30 31tlO13LLa3O 1 V IF Z $ Z to :m U mitis o).,9 t Page 211 of 284 WaflYttlW7W '\ ...,.. SZOSS NW 'a�lol lsaJoj NW '914 !9H TIIDGNod X00 LIWW.M;1_ MN laaJ1S 4161 ZZ£ M •any SS38 3 ), HSVM 21V0 55321dX3 ),Nod W19SM1�dI�S d-1- 'dnoO jo d),Hd3Za N W:�575RWWi1 • �' sou LI3NM0 NV -Id 311S v e LO " fill C. 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J LL w� z W u 3 zl W 2 0 z E w Page 2 1- A C: ✓D� .1A, L to - 0 V W, :L. 10 A ++ C DUAL POSTIC-70URVED PAS $1A I i,Uh a�A.,NQr - 0 I . z S-Zill TOPIVESSAW MAXIMUM VT LENGYN WOW - Imffu 04--a *w -mm Smpm WRAPPIEDWMi RAKED ENAMEL AUMMMUM �'J, 4 1 Z- 2� vru. m LIGHT WriAl TA WIV- FLA� SpecuWadora COmhlcflM NWWWd ftd - Top is heo%-.,, "X 4"x IV mopped vv; -.r t num. Pods cA* h" steel A fi"D*Pott -mwq0*- 2CNC cut bars 3/8"x3l/2 FeaWras 4"x 318" crm boom. Top' s -� ,-�Otecft YoLreVensive oM sepsifive ee.-tron cs tubbv2"x4x2W-wropm • Posts elbe %Wcq3ed vAth YOLT ChOlCe Of baked durrinum. Posts ore twovv r=_emmel Cokhred Wrin= Vater/Amp 100-271VAC 10.8 AMP CPSM N' CF" RMY 0* WW hd Cwmd Pav S*aqw Conoft 4MP DUALA Gmwa iftd }J4nCti0e AWanblyfor dud poo CWMPY W. AUWrwr.- bottom corxW com Specuy cda www.tsscws.com ph -586-427-W70 104 Page 219 of 284 p k44 13 z Ld Page 220 of 284 I I Page 222 of 284 4!5 CLEAN AIR 3 TECHNOL®GIES EuRovAc z TEL. 1-800-265-3878 WWW.EUROVAC.COM z PRODUCT SPECIFICATIONS D O a PRODUCT: I PART N0. JDATE n\ 40 HP MULTI -STAGE CENTRIFUGAL EXHAUSTER I 40HP-40E-07504036 I 12/15/2018 / OUTLET WITH ANSI o e tier ung m e —1— INTLET—\ �-- 28 1/8" —� 69 9/16" 69 9/16" N 65 15/16" 1 3/4" (TYP.) (TYP.) ro-----------------------------------ai PUMP FRAME l I CL OF PUMP 03/4" (TYP.) PUMP BASE OUTLINE �— 26" - - 040 3/4"- 1/2"-13UNC x 2 1/2" HEX. BOLT WITH WASHER (TYP. OF 4) 1/2" DROP-IN CONC. ANCHOR (TYP. OF 4) 3/4"x3"x 3" VIBRATION PAD (TYP. OF 4) SECTION DETAIL NOTE: DO NOT TIGHTEN BOLT. WASHER MUST BE ABLE TO SPIN FREELY AFTER INSTALLATION. CATALOGUE POWER MOTOR MAX VACUUM VOLT/PHASE/FREQ. NUMBER INLET OUTLET APPROX. HEAT SOUND DISTANCE NUMBER HP RPM VOLUME IN Hg FLA OF O.D. O.D. WT. lb RATE LEVEL IF (KW) CFM (IN Wg) STAGES IN(mm) IN(mm) (kg) (BTU/Hr) (dBA) 423B40 40 3600 1145 7.5 460/3/60 45A 4 8(200) 8(200) 1071 13648 3 89 575/3/60 37A 10 79 (29.8) (102) (486) 50 65 100 59 150 53 NOTES: 1. ALL DIMENSIONS SHOWN ARE FOR REFERENCE PURPOSES ONLY, NOT FOR CONSTRUCTION USE. 2. HEIGHT OF UNIT DOES NOT INCLUDE VIBRATION ISOLATOR. 3. NO SPECIAL FOUNDATION IS REQUIRED FOR EXHAUSTERS; DO NOT FASTEN DOWN TO CONCRETE FLOOR. 4. STANDARD ROTATION IS CW WHEN VIEWED FROM MOTOR END. 5. INLET FURNISHED STANDARD WITH BUTTERFLY THROTTLING VALVE. 6. SPECIFICATIONS SUBJECT TO CHANGE WITHOUT NOTICE. NOTE: ALL DIMENSIONS ARE IN INCHES. �I z a x U t - J U lal. Page 2! 6x. 4 i(o z+ e 'E9 O �N y N Z tN O Q00 LQ W$ 0 I Z i ul 2 ■ a J N O M' Cdi x } 1 � 4 of 284 WX A� 40, IBM UGUMM -a HSVMHVO SS32ldX3 ANOd IY 11 TAOMEW. ..... ... Page 225 of 284 � 1Z O N O N N Cl) Page 226 of 284 Page 227 of 284 NV SERIES AREA LIGHTING FORM AND FUNCTION • Sleek, low profile housing • Spec grade performance • Engineered for optimum thermal management • Low depreciation rateµ • Reduces energy consumption and costs up to 65% • Exceeds IES foot candle levels utilizing the least number of poles and fixtures per project • Optical system designed for: P Y 9 ' - Parking Lots- - Auto Dealerships ,'Ili` , �, C f '; - General Area Lighting CONSTRUCTION • Die Cast Aluminum • External cooling fins, Finite Element Analysis (FEA) designed • Corrosion resistant external hardware • One-piece silicone gasket ensures IP -65 seal for a m electronics compartment • One-piece Optics Plate' mounting silicone Micro Optics • Twc-piece silicone Micro Optic system ensures IP -67 LISTINGS Certified to UL 1598 level seal around each PCB UL 8750 • Grade 2 Clear Anodized Optics Plate' standard CSA C22.2 No. 250.0 FINISH DesignLights Consortium®(DLC) ` • 3-5 mils electrostatic powder coat DesignLights Consortium Premium® (DLCP) • NLS` standard high-quality finishes prevent corrosion IP65/ IP67 Rated protects against and extreme environmental conditions " 3G Vibration Rated per ANSI C135.31-2010 ro WARRANTY r�10410W---� a All", Im Five- ear limited warrantyfor drivers and LEDs. Five-year LED WATTAGE CHART 350 milliamps law 530 milliamps 28w i 700 mllhamps 38w 71w 104w 136w 168w 200w 243w 285w 1050 mffliamps 5ew 106w 156w 205w 263w 316w 386w 409w NV -11 NV4 Project Name: Type: NV Type 2 NYU 350 3000K 120-277: Direct Pole Bronze Bird Deterrent (BD) Size 1 (T2) 16 (16L) (85) (30K) (UNV) For V-1): Single. D1 An (BRZ) Marine Grade Finish (MOF) (NV -1) -NV--7 only : 32 (32L) Type 3 4000K t 3" (DPS3) nn White Optic Plate Painted to Match Fixture (OPP) : 347-480: NV (T3) 48 (48L) 530 (40K) (HV) For (NV�)- Dl To0J1�. WHT 7' (DP87) ( ) Mounting Painted to Match Fixture (MP) Nema 7 -Pin Receptacle (PE7) Size 2 64 (64L) (53) EQr (,NY=4;Single- D780 Silver Photocell + Receptacle (PCR) (NV -2) Type 4 *NV -1 only : 5000K ; 6' (DP36) (SVR) Receptacle + Shorting Cap (PER) (T4) NV_9 (50K) 80 80L 700 ( ) Far(�V 11^MO.T00-T12D. DD Black 11' (DPS71) (BL� FSP -271 with Motion Sensor UNV Voltage) ( 9 ) (FSP -20) *g'-20" Heights Type 5 96 (96L) �) (T5 ) 112 Knuckle Mount (KM) rapphhlite (FSP-40)'21'40'Heights Surge 128 (128L) ; 1050 Sweep Arm (SA) Protector (10K) Quick Mount Bracket (QMB) Nema 2 (1) 24' Narrow Wall Mount (WM) GreyRetrofit Mount Bracket (RQMB) Beam Truhnion Mount (TM) (CR) Round Pole Adaptor 3'- 4' Pole (RPA4) *N(N Only *Can dbe a painted is match stainless steel Custom Round Pole Adaptor 5'- 6' Pole (RPAS) Rotated Optic Left (ROL) Nema 3 Tennis Arm (TA) (CS) Rotated Optic Right (ROR) 30' Narrow : *See next page for Arm Configurations ; *For House Side Shield (HSS) *HSS N2 NEMA 24' Optics Beam (N3) Round Pole, please specify RPA4 or RPA5 not applicable with - *HSS not applicable with N3 - NEMA 30' Optica Page 227 of 284 FORM AND FUNCTION • Sleek, low profile housing • Spec grade performance • Engineered for optimum thermal management • L70 480,000 • Reduces energy consumption and costs up to 65% CONSTRUCTION • Die Cast Aluminum • Internal cooling fins, Finite Element Analysis (FEA) designed • Corrosion resistant external hardware • One-piece silicone gasket ensures IP -65 seal for electronics compartment • Two-piece silicone Micro Optic system ensures IP -67 level seal around each PC6 • S€licone Micro Optics: Recessed, full cutoff, vandal resistant and non -yellowing FINISH • 3-5 mils elect-ostatic powder coat. • NLS` standard high-quality finishes prevent corrosion protects against and extreme environmental conditions WARRANTY Five-year standard warranty NV -W HIGH PERFORMANCE FULL CUT OFF WALL PACK LISTINGS • Certified to UL 1598 • UL 8750 • CSA C22.2 No. 250.0 • DesignLights Consortium®(DLC) • DesignLights Consortium Premium® (DLCP) • IP65/IP67 Rated t�rowae<MCEMOUS 1 coAho• 56 Page 228 of 284 LED WATTAGE CHART 350 mflilamps 19w - 530 mflllamps 29w - 700 milliamps 37w 71w 7060 mH 56x Project Name: Type: NV -W Type 2 16 (16L) 350 3000K : 120-277: Wall Mount : Bronze 'Marine Grade Finish (MGF) Housing Extension (HE) (NV -M9 (T2) 32 (32L) (35) (30K) ; (UNV) (WM) (BRZ) Rimming Control with Motion To match EM Extension Box Type 3 *700mA only : ; ; : 4000K : 347-480: ;Sensor White : *B' Heights and Below (DCS) Button Photo Cell (PC universfI ypltgge 720-27 � (T3) 530 (53) (40K) ; (HV) (WHn : *9'-20' Heights (DC20) Req alres Deep Beacek 8oacle (PE7) Type 4 5000K ; Silver ' *21'-40' Heights (DC40) (SVR) Surge Protector (10K) Vanity Plate 16' So (VP) (T4) (50K) ; Uplight (UP) " (OT)0 Black ; Emergency Battery 4W (EM4) * (BLK) • 516 -364 Lumens, Certified CA Title 26. 1050 (1) : Graphite' (GPH) ; Em0eepen2� Battery 8W (EMB) urn Certified CA Title 20. Grey Bme2045nsy 16W (EM16) (GR1) 6922y Certified CA Title 20. Custom : (CS) : Emergency Cold Pk Battery (EMCP) *14 Watt * 7806 - 1974 Lumens, Certified CA Title 20. 56 Page 228 of 284 NiSIGNS, 7625 Birkmire Drive Fairview, PA 16415 P: (866) 437-3040 - F: (814) 835-7057 www.isignsled.com SOLD Car Wash Technologies TO 322 19th Street SW Forest Lake, MN 55025 ATTN: Mark Fuhr PACKING SLIP 84551 Quote #: 278944 i Customer #: 538500 Cust'Phone #: Order Date: Salesperson: SHIP Car Wash Technologies TO 322 19th Street SW Forest Lake, MN 55025 ATTN: Mark Fuhr ' I (812) 408F9010 } 11/25/2C11� Bill Burrows j (888) 437,«3040 WIIbQIsI0n4lod.a VBL -Mark 7x7 X I DOWN ARROW Signs UPS 12/412019 Prepay: #CXy. Ordered 01y. Shipped Product 1 (3) Signs item: X I DOWN ARROW TCL77RG-175 , Size: H 7.000011 x L 7.0000" x D 2.5000" Size:1 Packing Slip Notes i Date Name Paddng Slip Cnecldist 1 # Packa es Notes Customer service is our primary goal. In an effort to provide you with the best service possible, please inpect your shipment upon arrival, notate any obvious damages on the freight bill, and contact your sales re resentative for further instruction. Thank ouill All exposed sign surfaces should be cleaned with an ammonia and alcohol -free mild detergent. Cleaning with these agents will void your warranty. Page 229 of 284 Julie Hultman From: Mann, Lee <Lee.Mann@stantec.com> Sent: Friday, April 17, 2020 12:18 PM To: Scott Richards; Julie Hultman Cc: Eric Johnson; Andrew Kegley Subject: RE: Pony express Attachments: 5155-001 PLANS.pdf Hi Scott and Julie, My comments on the submitted plans are as follows: 1. The silt fence shown along the southwesterly edge of the property is shown within the modeled normal water elevation of the pond (937.2). It will need to be installed above the water in the pond to be effective, whatever that level is during construction of the improvements. 2. Erosion control blankettmat should be used on the proposed new slope in the area of the new parking spaces, not mulch. The City reserves the right to require additional erosion control measures on the site as it deems necessary. 3. The grading in the area of the new parking spaces will result in reducing the 100 -year high water level volume of the pond. Confirm the watershed's acceptance of this volume reduction. 4. The modeled 100 -yr highwater lever of the pond is 943.8. Insure that the top of curb along the new spaces is installed at 944 or above. 5. The watershed's review of the project needs to be submitted to the City. 6. The new parking spaces along the driveway end approximately 140 -feet from the intersection with Neal Avenue. A note should be put in the file that further expansion of parking towards Neal Avenue is unlikely to be recommended. Space needs to be maintained leading up to the intersection so that cars leaving the parking spots do not conflict with any queue of cars that may form at the intersection with Neal Avenue. Let me know if you have any questions. MN, WI, CA Principal Direct: 612-712-2085 Mobile: 651 775-5956 Lee.Mann@stantec.com Stantec 733 Marquette Avenue Suite 1000 Minneapolis MN 55402-2309 211 Stantec The content of this email is the confidential property of Stantec and should not be copied, modified, retransmitted, or used for any purpose except with Stanteds written authorization. If you are not the intended recipient, please delete all copies and notify us immediately. From: Scott Richards <scott@planningco.com> Sent: Wednesday, April 15, 2020 9:49 AM To: Mann, Lee <Lee.Mann@stantec.com> Cc: 'Julie Hultman'<jhultman@cityofoakparkheights.com> Subject: FW: Pony express Lee: Page 230 of 284 Here are the grading and erosion control plans for the Pony Express Car Wash. The Planning Commission meeting is next Thursday, and I will have my report finalized tomorrow morning. Let me know if you are going to do a separate letter or I if can incorporate your comments in my memo. Scott D. Richards The Planning Company LLC 3601 Thurston Avenue N, Suite 100 Anoka, MN 55303 Mobile: 952.221.0547 Phone: 763.231.5840 Facsimile: 763.427.0520 Email: Sc ott(a)PlanningCo,com From: Julie Hultman<jhultman@cityofoakparkheights.com> Sent: Wednesday, April 15, 2020 8:59 AM To: Scott Richards <scotteplanningco.com> Cc: Mark Fuhr <rnark@fuhrent.com> Subject: FW: Pony express This is what you should have gotten Scott. -------- Original message -------- From: Mark Fuhr <rnark@fuhrent.com> Date: 4/15/20 8:22 AM (GMT -06:00) To: Julie Hultman <'ha ultman@cityofoakparkheights.com>, Julie Scott <iulie.scott@movement.com> Subject: Pony express Julie This should be the last piece you need hopefully. Mark Fuhr Fuhr Enterprises Inc. 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Y' O \ $ • ; I y T r. .i \a �\ a\` 1 'I a I Page 233 of 284 A RECOMMENDING RESOLUTION OF THE PLANNING COMMISSION CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ESTABLISHING FINDINGS OF FACT AND RECOMMENDING TO THE CITY COUNCIL THAT THE REQUEST BY MARK FUHR OF ZEPHYR GROUP, LLP FOR SITE PLAN AND BUILDING ELEVATION CHANGES AT THE PONY EXPRESS CAR WASH AT 5970 NEAL AVENUE NORTH REQUIRING AN AMENDED CONDITIONAL USE PERMIT FOR A CAR WASH IN THE B-2 GENERAL BUSINESS DISTRICT AND DESIGN STANDARDS/SITE PLAN REVIEW SHOULD BE APPROVED WITH CONDITIONS WHEREAS, the City of Oak Park Heights has received a request from Mark Fuhr of Zephyr Group, LLP for site plan and building elevation changes at the Pony Express Car Wash at 5970 Neal Avenue North requiring an Amended Conditional Use Permit for a car wash in the B-2 District and Design Standards/Site Plan review; and after having conducted a public hearing relative thereto, the Planning Commission of Oak Park Heights makes the following findings of fact: The real property affected by said application is legally described as follows, to wit: SEE ATTACHMENT A and 2. The applicant has submitted an application and supporting documentation to the Community Development Department consisting of the following items: SEE ATTACHMENT B and 3. The property is zoned B-2, General Business District in which car washes are a conditional use; and 4. The changes to the car wash shall require an Amended Conditional Use Permit and Site Plan/Design Guidelines review in that the building materials on the exterior of the building will be changed, outdoor vacuum stations will be added, the parking lot will be increased in size, and changes will be made to the lighting and signage; and 5. City staff prepared a planning report dated April 15, 2020 reviewing the request and the Conditional Use Permit criteria; and Page 234 of 284 6. Said report recommended approval of the Amended Conditional Use Permit, and Design Standards/Site Plan review for the building and site improvements subject to the fulfillment of conditions; and 7. The Planning Commission held a public hearing at their April 23, 2020 meeting, took comments from the applicants and public, closed the public hearing, and made the following recommendation: NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING COMMISSION FOR THE CITY OF OAK PARK HEIGHTS THAT THE PLANNING COMMISSION RECOMMENDS THE FOLLOWING: A. The application submitted by Mark Fuhr of Zephyr Group, LLP for site plan and building elevation changes at the Pony Express Car Wash at 5970 Neal Avenue North requiring an Amended Conditional Use Permit for a car wash in the B-2 District and Design Standards/Site Plan review affecting the real property as follows: SEE ATTACHMENT A Be and the same as hereby recommended to the City Council of the City of Oak Park Heights the following, subject to the conditions as follows: Amended Conditional use permit (CUP) for the building and site improvements. Design Standards/Site Plan Review. 1. The grading and drainage plans shall be subject to the review and approval of the City Engineer. Wetland mitigation plans shall be submitted and completed by the Applicant subject to the approval of the Valley Branch Watershed District. 2. If the vacuum system creates noise issues for surrounding businesses, the City Council may require the Applicant to take additional sound dampening measures. 3. The light fixtures for the vacuum canopy shall be fully cut off with all light directed toward the ground. No light shall shine through the canopy cover. 4. The light fixtures for the pay station shall be fully cut off with all light directed toward the ground. No light shall shine through the canopy cover. 5. All lighting fixtures shall be full cut off and installed in compliance with the lighting standards of the Zoning Ordinance. The total height of the ground mounted light fixtures shall not exceed 25 feet. A revised photometric plan shall be required indicating the light intensity to all property lines. 6. The outdoor lighting shall be turned off one hour after closing, except for approved security lighting. Page 235 of 284 7. Mechanical equipment that is located on the roof or visible from street level or from neighborhood properties shall be screened with materials that blend harmoniously with the building fagade materials. 8. The monument sign plan shall be revised so that the reader board sign is no more than 35 percent of the total sign face. 9. All signage shall be subject to final review and approval of City Staff for conformance with Zoning Ordinance standards. The sign lighting should be designed such that only the text and logo portions of the signs are to be lit at night. Staff shall approve the lighting specifications for signs at the time of permitting. 10. The Planning Commission was favorable of the building material selection and colors. Recommended by the Planning Commission of the City of Oak Park Heights this 23rd day of April 2020. Timothy Freeman, Chair ATTEST: Eric A. Johnson, City Administrator Page 236 of 284 ATTACHMENT A Design Guidelines /Site Plan Review Conditional Use Permit Amendment For Mark Fuhr of Zephyr Group, LLP For Proposed Site & Building Design Changes At Pony Express Auto Wash Washington County Property Identification Number: 06.029.20.11.0020 Legal Description: Lot 2, Block 1, Jacob 2nd Addition Physical Address: 5970 Neal Ave. N. Page 237 of 284 ATTACHMENT B Design Guidelines /Site Plan Review Conditional Use Permit Amendment For Mark Fuhr of Zephyr Group, LLP For Proposed Site & Building Design Changes At Pony Express Auto Wash - 5970 Neal Ave. N. Application Materials • Application Form • Fees • Plan Sets • Written Narrative and Graphic Materials Explaining Proposal • Mailing List from Washington County (350'/150' from subject property) • Proof of Ownership or Authorization to Proceed Planning Commission Public Hearing & Recommendation: April 23, 2020 Required Approvals: CUP Amendment City Council 4/5 Conditional Use Permit - Lapse of Approval: Unless the City Council specifically approves a different time when action is officially taken on the request, the conditional use permit shall become null and void twelve (12) months after the date of approval, unless the property owner or applicant has substantially started the construction of any building, structure, addition or alteration, or use requested as part of the conditional use. An application to extend the approval of a conditional use permit shall be submitted to the Zoning Administrator not less than thirty (30) days before the expiration of said approval. (401.03.C.4.a and b) CUP Amendment: An amended conditional use permit may be applied for and administered in a manner similar to that required for a new conditional use permit. Amended conditional use permits shall include reapplication for permits that have been denied, requests for substantial changes in conditions or expansions of use, and as otherwise described in City of Oak Park Heights Zoning Ordinance 401. (401.03.C.5) Page 238 of 284 RESOLUTION NO. CITY COUNCIL CITY OF OAK PARK HEIGHTS WASHINGTON COUNTY, MINNESOTA A RESOLUTION ESTABLISHING FINDINGS OF FACT AND RESOLUTION OF THE CITY COUNCIL THAT THE REQUEST BY MARK FUHR OF ZEPHYR GROUP, LLP FOR SITE PLAN AND BUILDING ELEVATION CHANGES AT THE PONY EXPRESS CAR WASH AT 5970 NEAL AVENUE NORTH REQUIRING AN AMENDED CONDITIONAL USE PERMIT FOR A CAR WASH IN THE B-2 GENERAL BUSINESS DISTRICT AND DESIGN STANDARDS/SITE PLAN REVIEW BE APPROVED WITH CONDITIONS WHEREAS, the City of Oak Park Heights has received a request from Mark Fuhr of Zephyr Group, LLP for site plan and building elevation changes at the Pony Express Car Wash at 5970 Neal Avenue North requiring an Amended Conditional Use Permit for a car wash in the B-2 District and Design Standards/Site Plan review; and after having conducted a public hearing relative thereto, the Planning Commission of Oak Park Heights recommended that the request be approved with conditions. The City Council of the City of Oak Park Heights makes the following findings of fact and resolution: The real property affected by said application is legally described as follows, to wit: SEE ATTACHMENT A and 2. The applicant has submitted an application and supporting documentation to the Community Development Department consisting of the following items: SEE ATTACHMENT B and 3. The property is zoned B-2, General Business District in which car washes are a conditional use; and 4. The changes to the car wash shall require an Amended Conditional Use Permit and Site Plan/Design Guidelines review in that the building materials on the exterior of the building will be changed, outdoor vacuum stations will be added, the parking lot will be increased in size, and changes will be made to the lighting and signage; and 5. City staff prepared a planning report dated April 15, 2020 reviewing the request and the Conditional Use Permit criteria; and Page 239 of 284 6. Said report recommended approval of the Amended Conditional Use Permit, and Design Standards/Site Plan review for the building and site improvements subject to the fulfillment of conditions; and 7. The Planning Commission held a public hearing at their April 23, 2020 meeting, took comments from the applicants and public, closed the public hearing, and recommended the application with conditions. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF OAK PARK HEIGHTS THAT THE CITY COUNCIL APPROVES THE FOLLOWING: A. The application submitted by Mark Fuhr of Zephyr Group, LLP for site plan and building elevation changes at the Pony Express Car Wash at 5970 Neal Avenue North requiring an Amended Conditional Use Permit for a car wash in the B-2 District and Design Standards/Site Plan review affecting the real property as follows: SEE ATTACHMENT A Be and the same as hereby approved by the City Council of the City of Oak Park Heights the following, subject to the conditions as follows: • Amended Conditional use permit (CUP) for the building and site improvements. • Design Standards/Site Plan Review. 1. The grading and drainage plans shall be subject to the review and approval of the City Engineer. Wetland mitigation plans shall be submitted and completed by the Applicant subject to the approval of the Valley Branch Watershed District. 2. If the vacuum system creates noise issues for surrounding businesses, the City Council may require the Applicant to take additional sound dampening measures. 3. The light fixtures for the vacuum canopy shall be fully cut off with all light directed toward the ground. No light shall shine through the canopy cover. 4. The light fixtures for the pay station shall be fully cut off with all light directed toward the ground. No light shall shine through the canopy cover. 5. All lighting fixtures shall be full cut off and installed in compliance with the lighting standards of the Zoning Ordinance. The total height of the ground mounted light fixtures shall not exceed 25 feet. A revised photometric plan shall be required indicating the light intensity to all property lines. 6. The outdoor lighting shall be turned off one hour after closing, except for approved security lighting. Page 240 of 284 7. Mechanical equipment that is located on the roof or visible from street level or from neighborhood properties shall be screened with materials that blend harmoniously with the building fagade materials. 8. The monument sign plan shall be revised so that the reader board sign is no more than 35 percent of the total sign face. 9. All signage shall be subject to final review and approval of City Staff for conformance with Zoning Ordinance standards. The sign lighting should be designed such that only the text and logo portions of the signs are to be lit at night. Staff shall approve the lighting specifications for signs at the time of permitting. 10. The Planning Commission recommends, and the City Council approves the building material selection and colors. Approved by the City Council of the City of Oak Park Heights this 28th day of April 2020. Mary McComber, Mayor ATTEST: Eric A. Johnson, City Administrator Page 241 of 284 ATTACHMENT A Design Guidelines /Site Plan Review Conditional Use Permit Amendment For Mark Fuhr of Zephyr Group, LLP For Proposed Site & Building Design Changes At Pony Express Auto Wash Washington County Property Identification Number: 06.029.20.11.0020 Legal Description: Lot 2, Block 1, Jacob 2nd Addition Physical Address: 5970 Neal Ave. N. Page 242 of 284 ATTACHMENT B Design Guidelines /Site Plan Review Conditional Use Permit Amendment For Mark Fuhr of Zephyr Group, LLP For Proposed Site & Building Design Changes At Pony Express Auto Wash - 5970 Neal Ave. N. Application Materials • Application Form • Fees • Plan Sets • Written Narrative and Graphic Materials Explaining Proposal • Mailing List from Washington County (350'/150' from subject property) • Proof of Ownership or Authorization to Proceed Planning Commission Public Hearing & Recommendation: April 23, 2020 Required Approvals: CUP Amendment City Council 4/5 Conditional Use Permit - Lapse of Approval: Unless the City Council specifically approves a different time when action is officially taken on the request, the conditional use permit shall become null and void twelve (12) months after the date of approval, unless the property owner or applicant has substantially started the construction of any building, structure, addition or alteration, or use requested as part of the conditional use. An application to extend the approval of a conditional use permit shall be submitted to the Zoning Administrator not less than thirty (30) days before the expiration of said approval. (401.03.C.4.a and b) CUP Amendment: An amended conditional use permit may be applied for and administered in a manner similar to that required for a new conditional use permit. Amended conditional use permits shall include reapplication for permits that have been denied, requests for substantial changes in conditions or expansions of use, and as otherwise described in City of Oak Park Heights Zoning Ordinance 401. (401.03.C.5) Page 243 of 284 THIS PAGE INTENTIONALLY LEFT BLANK Page 244 of 284 Oak Park Heights Request for Council Action Meeting Date April 281h, 2020 Time Required: 5 minutes Agenda Item Title: Approve Letter of Support for the Center for Energy and Environment (CEE) to Just Transition Fund (JTF). Agenda Placement New Business Originating Department/Requestor Mary McComber, Mayor Requester's Signature Action Requested Discussion, Possible Action. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): I would like the Council to consider the crafting of a LETTER OF SUPPORT from the City for a grant application by the Minnesota Center for Energy and Environment to the Just Transition Fund to provide funding and resources for further studies of two communities and their transition away from being a power plant host; these being Oak Park Heights and Cohasset. The general scope of the study to engage impacts and the transition process related to workforce, economic development, and local industries/economy and would seek to off -set costs of the $37,500 commitment made by Oak Park Heights. Please see the short summary from the Center for Energy and Environment as attached. Page 245 of 284 In 250 words or less, please provide a summary of your request to the JTF, referring to the list of eligible activities in the RFP. Be as specific as possible regarding how your proposal aligns with the goals of the Fund. Specifically, state how you intend to use JTF support. CEE requests JTF support for phase one of a community-based stakeholder process for each of two Minnesota coal -plant communities, that previously participated in the Minnesota host community study (partially funded by JTF), to develop community -driven, actionable recommendations for a transition plan. This work will build upon findings of the previous study and bring together key stakeholders to focus on critical issue areas for the community transition. The stakeholder process will take place in stages to allow stakeholders to deeply engage on each of the key areas of impact identified: workforce, local economy, economic development, local government, land use, environment, and community social structure. The first phase of the process will focus on issues of the local workforce, local economy and industry clusters, and local economic development efforts and opportunities. The stakeholder process will employ a scenario planning model. CEE has applied this model to a wide range of issues and has found it helpful in solving large problems that affect a diverse range of stakeholders and multiple societal systems. The stakeholder process will: • increase stakeholders' shared understanding and knowledge of the current state and potential impacts of a plant retirement; • increase stakeholders understanding of local and regional interconnections and economic interdependencies; • develop a set of potential future scenarios; and • develop recommendations for individual and collective action to aid in a successful community transition by advancing key local industries and businesses, supporting and preparing the local workforce, and driving strategic economic development efforts and investments. In bullet form, please provide detail about the reasonably optimistic impact of your proposal if it is successful (e.g. workers trained, community members reached, jobs created, private investment leveraged). Please indicate the scope of your project's reach (e.g. local, regional, national). Through this proposed process, critical stakeholders will jointly and collaboratively: • Gain greater knowledge and understanding of other affected stakeholders' perspectives and incorporate that new understanding into their individual actions and advocacy related to the transition. • Gain greater understanding of the multiple interconnected systems and policies related to workforce, local industries, and economic development efforts that will be affected by a transition and affect the outcome of that transition. • Find common ground and opportunities for collective action and advocacy to enhance positive outcomes. • Develop a set of agreed-upon, actionable steps related to workforce, local industries, and economic development efforts that actors can and will take to contribute to a successful, just, equitable, and sustainable community transition throughout and after a plant closure. • Feel a sense of empowerment to affect outcomes of their community's transition away from a reliance on coal; and • Will implement the recommendations through individual and collective action on an agreed upon time- table. Page 246 of 284 Oak Park Heights Request for Council Action Meeting Date April 28t1, 2020 Time Required: 5 Minutes Agenda Item Title MANNING & STH 36 SOUTH FRONTAGE ROAD Agenda Placement New Business Originating Department/Requestor: Mike Runk, Council Member Requester's Signature Action Requested: Discussion — Possible Action. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): We know that Washington County has pursued the interchange project at MANNING AND & STH 36 for some time and the City has offered letters of support for that. However, it now appears that despite their earlier position that the Concept South Frontage road would be "in the future", I understand it is now slated for possible construction in 2022? City Staff has also been requested to participate in a Local Advisory Team (LAT) that is solely intended to develop this project — BUT without the County first requesting if the City even supports the concept. Properly, City staff has participated to date but has sent letters requesting information about impacts, traffic counts and project rationale. These were in Weekly Notes. My concerns at this time are: 1. What are the anticipated impacts to traffic through our City? 2.If constructed what are the anticipated impacts to the City's current tax base as a result of the connection? 3. Total project costs and potential costs suggested to be paid by the City? 4. What were the alternatives considered and why were these dismissed and/or without public dialogue? I would like to know the pros and cons with some details so the Council may better formulate a position and offer Staff additional guidance. We also know Washington County will need to seek a more formal position on Municipal Consent and I would like to be ready for that. To accomplish this, I would like the City Council to consider two things: 1. Enable STANTEC to continue to discuss the Project with Washington County but ALSO have STANTEC develop an analysis report of pros and cons, understanding of costs, roadway options and the possible fiscal impacts to our City including conversations with retailers — provide mid -Summer. 2. So to offer a clear City position to the County, send a letter to Washington County from the Council outlining such concerns and that as of "this date" the City has not yet taken any specific position on the Concept and will await more information from the City Engineer as to his report and findings. Page 247 of 284 15 '� Future Development o r All Ramp Spacing ■,>vu' I ME - ... _ 2.600" 1,620' 136 2,600- f,7 ,600 , _ n ■ r r • i to & .; ..,. .,,... w. .'. b IYfd',., ,M _... � ,...,.d Advantages: Conce� {.. •y. .„.., \`ref ` -` Concept Concept p g Disadvantages: <' • Reduced crash severity • Short auxiliarylanes on Hwy 36 ` iso' • Flexible for frontage rd y f • 5-legged/multi-lane RAB's connections More vehicle/vehicle conflicts • SE frontage rd might attract €utureDeuel ;,.;; ;;, Impacts all 4 quadrants more local trips I Potential sight distance issues Avoids transmission towers • Retaining wails needed Oak Park Heights Request for Council Action Meeting Date April 28h, 2020 Time Required: 5 minutes Agenda Item Title: Consider Resolution Outlining Possible City COVID-19 Responses to Aid: Convention and Visitor's Bureau and Temp. Suspension of Banner Regulations & Actions Related to Liquor Licensing Agenda Placement NEW BUSINESS Originating Department/Requestor Mayor M. McComber & M. Runk Council Member Requester's Signature Action Requested Consider Resolution Outlining Additional City COVID-19 Responses to Aid Citv Residents and Businesses. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): The City received the attached request from the Convention and Visitor's Bureau related to the delay of payment of lodging tax. To respond to that request, I would like the City Council to please consider the attached resolution outlining some possible steps to support them as well as an item to suspend City ordinances related to banner restrictions and partial refunds of ON - SALE Liquor Licenses. Perhaps this needs draft resolution requires some editing and/or additions or deletions of various ideas. Page 249 of 284 April 4, 2020 Honorable Mayor Mary 1VMcComber And Oak Park Heights City Council, On Friday, April 3rd, the Stillwater / Oak Park Heights Convention and Visitor's Bureau Executive Board met via conference call. We reviewed our changing budget calculations for the year and made adjustments to our planned expenses and advertising for the next few months as we try to figure out what the future will be for this year. We feel we have put a good plan together and we will be revisiting it often. One other item we did discuss is the lodging tax payments for first quarter that our member properties are to make by April 30th. We would ask that the Cities of Stillwater and Oak Park Heights would move to have this payment postponed until June 30th of this year to help out our local lodging properties that have seen their businesses decline dramatically during this time due to the Covid-19 pandemic. We would still like to have people file their report so we have some gauge as to where things are, just postpone the payment due date. Thank you for your consideration. If you have any questions, please feel free to call me. Sincerely, Ch c Doughe ,�4 President of,$tillwater / Oak Park Heights CVB cc. Eric Johnson, City Administrator Mike Runk, CVB Rep. Page 250 of 284 RESOLUTION A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF OAK PARK HEIGHTS OUTLINING FURTHER POLICIES AND REQUESTS RELATED TO ASSISTING IN ECONOMIC RECOVERY FOLLOWING THE COVID-19 OUTBREAK. Whereas, the State of Minnesota and numerous communities have been impacted by the outbreak of COVID-19 virus forcing the slow down and, in some cases, shuttering of businesses creating significant unemployment; and, Whereas, many individuals have also been impacted by the COVID-19 outbreak with the loss of employment and critical income; and, Whereas, the State and Federal Governments have begun to implement various tools to aid in the recovery of businesses and employment; the City of Oak Park Heights may also consider responsible actions to aid effected businesses and their staff as well as its general population; and, Whereas, the City has previously approved a resolution outlining certain City responses, it has continued to evaluate its options related to any continued assistance it may be able to offer as well as explore other public-private partnerships to advance solutions to address these matters stemming from COVID-19 matter. NOW, THEREFORE, BE IT RESOLVED that the City Council for the City of Oak Park Heights enacts the following actions and requests: 1. Except in cases where any such signage creates a public safety concern and/or substantial nuisance as defined by the City, the City shall suspend the enforcement of temporary signage ordinances generally found in City Ord. 401.15.G.7 Special Events through October 31St, 2020. The City shall delay collection of Lodging Tax - City Ord 1411 - with 1St and 2nd Qtr. billings being due on Oct 31St, 2020 and the City shall waive any related late fees; the City shall continue to require that lodging -use data be reported to the City if possible. The City shall implement a partial refund of ON -SALE liquor/beer licenses calculated as 100 percent refund (prorated daily) for those dates duly closed as a result of the Governor's Executive Orders; and, the City affirms and supports recent legislation that permits qualifying ON -SALE firms to additionally offer OFF -SALE products as adopted by the Minnesota Legislature effective on 4/18/20. Be It Further Resolved, that City Staff shall actively implement these goals to the extent authorized under Minnesota law and provide the necessary communications to related offices and entities. The Resolution has been duly considered and adopted by the City Council this day of , 2020. Mayor Mary McComber Attest: Eric Johnson, City Administrator Page 251 of 284 THIS PAGE INTENTIONALLY LEFT BLANK Page 252 of 284 Oak Park Heights Request for Council Action Meeting Date April 281h, 2020 Time Required: 1 Minutes Agenda Item Title: Rate Increase Request — TENNIS SANITATION Agenda Placement New Business Originating Department/Request�or Eric Johnson, City Administrator Requester's Signature ez: " " Action Requested Discussion, Possible Action. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Please see the attached memo and related data. Page 253 of 284 City of Oak Park Heights 14168 Oak Park Blvd. N • Box 2007 • Oak Park Heights, MN 55082 • Phone (651) 439-4439 • Fax (651) 439-0574 April 15, 2020 — MEMO TO: Mayor and City Council Members FROM: Eric Johnson, City Administrator RE: Tennis Sanitation Request — Recycling Fee Rate Increase Request. Tennis Sanitation has proposed a rate increase of $1.07 per month per unit related to the Recycling Fee portion of the City's bill - from $2.55 per unit per month to $3.62. This would result in a $13,800+/- annual rate increase to the City. Generally, the Recycling Fee pays for the collection, sorting and processing of recyclables. To consider this please understand the following: Any increases / decrease requests must be requested consistent with the timelines found Agreement- which must be done On April 11t of each year with any agreed upon elements coming into effect on July 1. This is the contract language -> Ur i1pril 1 st of tach year, ciLcr party may nxpmt adjustor nts to the collection and�g fee of the Contracts base dwelling emit rates on the basis of 75% of the percent increase or decrease in the Private TransportaUpn Consumer Price Index (CPI) Minnespoli�St. Paul, for the twelve (12) month period Ending the prervious calendar year. Such changes shall be effective jhdx2t of the yeev requested and when only agreed upon in writirrg by both parties. The City's current fee structure is outlined on a large chart on the attached page with the current rates shown in yellow and proposed rates shown in blue. NOTE: The rate structures are AUTOMATICALLY adjusted for the DISPOSAL COSTS based on the County tipping fee rates and these are not costs associated with TENNIS these have risen considerably since 2015 by more than 44 percent. 3. Except for DISPOSAL COSTS, the City nor Tennis is OBLIGATED to provide any rate increase or decrease; rather, either party may request an adjustment consistent with the application of the CPI- Private Market Transportation Rates (CPI -PT) and capped at 75% of such data. In looking at that data; despite decades long trends upward; since the inception of the Agreement between the City and Tennis of 1/1/15, this rate has been largely flat and in -some years, even saw a decline — suggesting the City could seek a cost reduction. Not including this request, the City has agreed to a total increase of 3.84% cost increase over 2015 rates; or about .77% annually. This is higher than the CPI -PT rate of (-.87%). This trend data however can be difficult to interpret or isolate as to when or what year should be included as there are delays in reporting and/or when Tennis' submitted its bids and its rationale. But, on average it is reasonably close and with small differences. HOWEVER, if implemented as requested this would result in a 17.5% total rate increase for the City or approximately 3.5% annually — which exceeds the CPI -PT by a more significant margin. 4. The Cit has not received a RECYCLING REBATE sale of commodities since �� Fees eels not exceed edis t per ton solely materials. Y ( ) the gross comamoditty vvaaiuee.. Noother tees, ttaaxs, c aargdeducted tcc. may 2017 as noted in TENNIS' submission. However, the Agreement stipulates that es TENNIS may only charge u to $60 per ton for processing AND only from the net pr °o ld City for , the groccs ss r recyc(s) be Y Y 9 p p p 9 Y processing. should at any time, the guess camornodity vah�e(s) be commodity values. They may request, but may not bill the City for such rates less dhan rhe Processing fens, the Contractor shall be solely when these values are reduced or otherwise severe) limited See Section M >. responsiblequesadditional co pay for sn from he Ptuceasing &t8,but may y request addirivnal assistance form the City. 5. The Agreement does not outline a specific rate of return to Tennis and in most respects benefits the City with price stability as a result of the BIDDING PROCESS. In other words, Tennis should have considered all of these elements at the time it submitted a bid and which "out- bid" its competitors. The fact that the CPI -PT has essentially remained flat for the first time in decades has helped the City save money and is contractually defensible- but doesn't help Tennis. 6. This increase as proposed would consume most of the savings the City generated with the 95 -gallon container switch. Possible Action: All this said, the City has not rejected all increases as requested and has allowed some minor adjustments- see the Chart. Moreover, Tennis did perform well to implement recent cart switches without issues and in most respects they have performed well. Staff would offer that some increase is reasonable, but perhaps should be AT MOST - 50% of their ask at this time or only a $0.53 increase to be put into effect July 1st ,2020 as called for in the Agreement— This would cost the City $6,500 +/-. FURTHER NOTE: Given the fiscal situation the City maybe placed in for 2021 (or beyond) due to the COVID-19 the City may need to consider offering either NO INCREASE AT THIS TIME, OR perhaps a small adjustment in an amount less than $.53 Page 254 of 284 Extras - Per Bag City Rates for 1/1/2015 City Rates for 1/1/2016 City Rates for 1/1/2017 City Rates for 1/1/2018 City Rates for 1/1/2019 City Rates for 1/1/2020 Change since Commence ment 1.50 Proposed Rates for 7/1/2020 Change since 2015 if Implemented $ 1.75 16.67% Extras - Per Yard - Construction $ 35 gallon $ 13.00 $ 13.00 $ 13.00 $ 13.00 $ 13.00 0.00% Disposal Fee (COUNTY) $ 3.07 $ 3.13 $ 3.51 $ 3.51 $ 3.73 $ 4.43 44.30% $ 4.43 44.30% Collection Fee $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 4.00 0.00% $ 4.00 0.00% Recycling Fee $ 2.55 $ 2.55 $ 2.55 $ 2.55 $ 2.55 $ 2.55 0.00% $ 3.62 41.96916 Yard Waste $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 0.00% $ 1.00 0.00% Appliance Fee $ 0.26 $ 0.41 $ 0.41 $ 0.41 $ 0.56 $ 0.56 115.38% $ 0.56 115.38% Total $ 10.88 $ 11.09 $ 11.47 $ 11.47 $ 11.84 $ 12.54 15.26% $ 13.61 25.09% RATES NOT INCL> Disposal Fee $ 7.81 $ 7.96 $ 7.96 $ 7.96 $ 8.11 $ 8.11 3.84% $ 9.18 17.54% Total Disposal Fees Only - >> $ 3.07 $ 3.13 $ 3.51 $ 3.51 $ 3.73 $ 4.43 44.30% $ 4.43 44.30% 65 gallon Disposal Fee (COUNTY) $ 4.89 $ 4.99 $ 5.59 $ 5.59 $ 5.93 $ 7.05 44.17% $ 7.05 44.17% Collection Fee $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 4.00 0.00% $ 4.00 0.00% Recycling Fee $ 2.55 $ 2.55 $ 2.55 $ 2.55 $ 2.55 $ 2.55 0.00% $ 3.62 41.96916 Yard Waste $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 0.00% $ 1.00 0.00% Appliance Fee $ 0.26 $ 0.41 $ 0.41 $ 0.41 $ 0.56 $ 0.56 115.38% $ 0.56 115.38% Total $ 12.70 $ 12.95 $ 13.55 $ 13.55 $ 14.04 $ 15.16 19.37% $ 16.23 27.80% RATES NOT INCL> Disposal Fee $ 7.81 $ 7.96 $ 7.96 $ 7.96 $ 8.11 $ 8.11 3.84% $ 9.18 17.54% Total Disposal Fees Only - >> $ 4.89 $ 4.99 $ 5.59 $ 5.59 $ 5.93 $ 7.05 44.17% $ 7.05 44.17% 95 gallon Disposal Fee (COUNTY) $ 7.33 $ 7.48 $ 8.39 $ 8.39 $ 8.90 $ 10.58 44.34% $ 10.58 44.34% Collection Fee $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 4.00 $ 4.00 0.00% $ 4.00 0.00% Recycling Fee $ 2.55 $ 2.55 $ 2.55 $ 2.55 $ 2.55 $ 2.55 0.00% $ 3.62 41.96916 Yard Waste $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 0.00% $ 1.00 0.00% Appliance Fee $ 0.26 $ 0.41 $ 0.41 $ 0.41 $ 0.56 $ 0.56 115.38% $ 0.56 115.38% Total $ 15.14 $ 15.44 $ 16.35 $ 16.35 $ 17.01 1 $ 18.69 1 23.45%1 1 $ 19.76 1 30.52% RATES NOT INCL> Disposal Fee $ 7.81 $ 7.96 $ 7.96 $ 7.96 1 $ 8.11 $ 8.11 1 3.84%1 1$ 9.18 1 17.54% Total Disposal Fees Only - >> $ 7.33 $ 7.48 $ 8.39 $ 8.39 $ 8.90 $ 10.58 44.34% $ 10.58 44.34% Extras - Per Bag $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 1.75 16.67% $ 1.75 16.67% Extras - Per Yard - Construction $ 13.00 $ 13.00 $ 13.00 $ 13.00 $ 13.00 $ 13.00 0.00% $ 1 13.00 0.009/C Extras - Mattresses (PER UNIT) $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 25.00 NA $ 25.00 NA City Also has paid --Unpaid Extras Cityhas paid about $600 annually to benefit TENNIS... -but is NOTrequired to- It prevents TENNIS BILLING the resident; the Clty may bill the resident but has not.. Not worth complication. Page 255 of 284 Search FRED Categories > U.S. Regional Data > States > Minnesota > CPI for MSAs and Consolidated MSAs > Minneapolis -St. Paul, MN -WI (MSA) * Consumer Price Index for All Urban Consumers: Private transportation in Minneapolis- St.PauI-Bloomington, MN -WI (CBSA) (cuusA211sAT1) observation: Unica: Freqy: 2018: 188.024 (+ mare) Index 1482-1484-100, Arlual lY 1 5Y I l0Y I Max. 1984-01-01 tc 201s-01-31 Updated: ]an 11, 2019 Not Seasonally Adjusted FRED-� — Consumer Price Index for al Urban Consumers Private transportation in Minneapolis-SLP-14Bloomington, MNAM (COSA) 220 200 180 s a 160 m P 140 v C 20 00 80 1486 1988 1990 1992 1994 1996 1998 20017 2002 2004 21106 2008 2010 2012 2014 2016 2018 Hi 1w5 _-- Shaded areas mdx,te U..5, recessiarrs Source: U.S. Bureau of Labor Statistics fred.sdouisiecl FRED Graph Observations Federal Reserve Economic Data Link: https://fred.stiouisfed.org Help: https://fred.stiouisfed.org/help-faq Economic Research Division Federal Reserve Bank of St. Louis CUUSA211 SAT1 Consumer Price Index for All Urban Consumers: Private transportatio Frequency: Annual TRENDS All Average 1.86% Avg. Since Start of Contract 1/1/15 -0.87% 3 Year Average 1.84% Page 256 of 284 Oak Park Heights Request for Council Action Meeting Date April 281h, 2020 Time Required: 5 Minutes Agenda Item Title: Consider Appointments to Xcel Energy Advisory Panel Agenda Placement New Business Originating Department/Request�or Eric Johnson, City Administrator Requester's Signature ez: " " Action Requested Discussion, Possible Action. Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Please see the attached memo and related data. Page 257 of 284 City of Oak Park Heights 14168 Oak Park Blvd. N • Oak Park Heights, MN 55082 • Phone (651) 439-4439 • Fax (651) 439-0574 4/21/20 MEMO TO: Mayor and City Council Members FROM: Eric Johnson, City Administrator RE: Allen S. King Plant - Advisory Panel Appointments The City has received a number of responses to its inquiry to be appointed to serve on the Advisory Panel. I have broken these down into TWO GROUPS, However, in both cases, if these persons and organizations remain acceptable to the Council, the Council — consistent with the established Advisory Panel Policy, may approve such appointments — all appointments must be by unanimous consent. ATTACHED IS THE LISTING. GROUP - Directly Invited ORGANIZATIONAL Groups: The City has received a number of nomination forms for the Advisory Panel; each of these are attached. The attached page includes a listing of those Nomination Forms received and those remaining absent. GROUP - Citizen Members - Applications: • As of 4/16/20 the City has received seven (7) applications from City residents. Each of which outline valuable rationale for their service and offer quality backgrounds. The Council did initially outline that it shall appoint three (3) persons to this Panel. Conceivably the Council could hold interviews with each person and/or seek additional data - interviews would not be unlike what occurs at the Planning and Parks Commission when new members are considered. • Alternatively, the Council may appoint all of these persons as it will add a negligible number of people to the Panel and not over -burden the City's consultant. This possibility was contemplated for in the approved Policy — item #20. Moreover, not all entities responded to the invitation in the Group above. 26. 17iree (.i) At -Large Members (may be either City residents, or business ok*-ners) may be invited to senve on the Panel. Interested individuals shall subntit a letter and application to the Council explaining their role in the connnuility and intcresl in scr%,in on lite Aldvisory, Panel. Dcpendine. nn lite level of i.ntcn'st, lite Couneil nun- choosc to decrease; or increase the number ofat-large ntcnthcrs. • Or, if the Council desires to randomly select from this pool of persons it could certainly do that too. Co -Chairs of Advisory Panel: Lastly, there was discussion of appointing Tim Freeman and Gina Zeuli as participating CO -Chairs. The Council should take affirmative action on this matter. Page 258 of 284 UPDATED 4/21/20 Organization NOMINATED PERSON NOTES City of OPH Planning Commission (1 member) David White Jennifer Van Dyke is Alternate City of OPH Parks Commission (1 member) Judith Chrihart Randy Thoreson is Alternate Xcel Energy Collette Jurek & Brain Behm Brian Behm is Plant Manager Washington County CDA Chris Eng The St. Croix River Association Deb Ryun Watershed District- MSCWMO Brian Zeller Andersen Corporation HAVE NOT HAD A RESPONSE YET City of Bayport— MUST BE A NON — ELECTED OFFICIAL HAVE NOT HAD A RESPONSE YET City of Stillwater - MUST BE A NON — ELECTED OFFICIAL Tom McCarty Minnesota Department of Natural Resources Jim Levitt Minnesota Department of Transportation Adam Josephson Greater Stillwater Area Chamber of Commerce Robin Anthony National Park Service Julie Galonska Stillwater Area School District Denise Pontrelli Still waiting Student Member data Coalition of Utility Cities HAVE NOT HAD A RESPONSE YET Sierra Club HAVE NOT HAD A RESPONSE YET Center for Environmental Advocacy Kathryn Hoffman Union Pacific Railroad HAVE NOT HAD A RESPONSE YET Minnesota Commerical Assoc. of Realtors HAVE NOT HAD A RESPONSE YET Citizen Members / Applications Received Citizen Application Tim Axel Citizen Application Jim Kremer Citizen Application Tim Holden Citizen Application AJ Paron Citizen Application John Regal Citizen Application Larry Schneider Citizen Application Kate Hanson Page 259 of 284 t-% LJ llr I LV L1 L.I/LV 0 CITY OF OAK PARK HEIGHTS POLICIES RELATING TO THE ALLEN S. KING PLANT DECOMMISSIONING AND REUSE ADVISORY PANEL — APPOINTMENTS AND ROLES PURPOSE: The City Council desires to appoint an Advisory Panel to inform and support the City Council's decision making regarding the future of the Allen S. King Plant. The following policy shall govern the formulation of this group, describes its role and relationship with the Council and what the expectations are from participating members. Invitation to Serve on the Advisory Panel: The City desires participation from a number of parties generally known in the community with an apparent stake or clear interest in such dialogue and which includes the organizations listed below. These entities will be sent a Letter of Invitation to participate in the City's process and such invitation shall be signed by the Mayor and every Council member. Each group, or organization if they desire to participate shall nominate a SINGLE representative, who is expected to be available to attend 10-12 monthly meetings. The City's desire is that such person would generally relay the views of the organization they represent where possible. All members so appointed shall be reviewed and approved by unanimous consent of the City Council. 1. City of OPH Planning Commission (1 member) 2. City of OPH Parks Commission (1 member) 3. Xcel Energy 4. Washington County CDA 5. The St. Croix River Association 6. Watershed District - MSCWMO 7. Andersen Corporation 8. The City of Bayport — MUST BE A NON — ELECTED OFFICIAL 9. The City of Stillwater - MUST BE A NON — ELECTED OFFICIAL 10. Minnesota Department of Natural Resources 11. Minnesota Department of Transportation 12. Greater Stillwater Area Chamber of Commerce 13. National Park Service 14. Greater Stillwater Area School District - MUST BE A NON — ELECTED OFFICIAL- (2 seats one must be a HIGH SCHOOL STUDENT expected to be able to serve through the term of the discussions) 15. Coalition of Utility Cities 16. Sierra Club 17. Center for Environmental Advocacy 18. Union Pacific Railroad 19. Real Estate Group — TBD (such as the SPAAR ... https:Hspaar.com/ ) St. Paul Area Association of Realtors 20. Three (3) At -Large Members (may be either City residents, or business owners) may be invited to serve on the Panel. Interested individuals shall submit a letter and application to the Council explaining their role in the community and interest in serving on the Advisory Panel. Depending on the level of interest, the Council may choose to decrease or increase the number of at -large members. Locally Elected Officials are precluded from serving on this Panel where they directly represent a given city, school district, county's interest. In the case of these public organizations the appointment of staff, volunteers, or other appointed officials to their respective bodies is requested. For example: The City of Stillwater may appoint their Planning Commission Chair who is a non -elected person but is appointed by the City Council. In circumstances where there is a "joint -powers" organization such as the MSCWMO or WCCDA, appointment of Staff or Non -elected officials is preferred. However, this may result on overtime expenses or budgetary constraints that may preclude participation. If such staff or other volunteer is not available and if such JPA board members are elected individuals and are available, the City Council may evaluate these on a case-by-case basis so as to ascertain their underlying entity and relationships. Any person so appointed would be expe@vM UQW" represent the joint -powers entity, not their primary jurisdiction. Appointment of Co -Chairs: The City Council also desires the appointment of CO-CHAIRS positions so as to better ensure continuity of the process in the event one person cannot attend. The role of the "co-chair" is to ensure the meetings move forward and to facilitate the discussion and presentations and in allotted time. In all respects, the CO-CHAIR position acts only as manager to ensure the process remains vital and fluid and not to advocate for any given position. The Mayor or a Council Member may nominate and the Council shall appoint up to two co-chairs, any such appointment shall be by unanimous vote of the City Council. If no chair(s) can be determined, the Panel shall be managed by City Staff or City Consultant until such time as a CO CHAIR can be found. A CO-CHAIR may be removed from the Panel by simple majority of the Council. The appointed CO -Chair individuals may or may not be otherwise listed in the invited participation listing stated above, if not listed they shall become full members of the Panel once appointed. Further Expectations of the Advisory Panel: The meetings are generally anticipated to be a method by which Panel Member can avail themselves of the best available information regarding the many facets of regulations, challenges and opportunities related to this site. Fundamentally, few — if any, decisions are expected to be made by the Panel itself. As the discovery process unfolds, all members of the Advisory Panel are expected to follow a Code of Conduct that will be provided by the City and which will outline rules of discussion and how any collective recommendations might be made. All members serve at the pleasure of the City Council and the City Council may amend the number of participants or which participants at any time at its sole discretion. Guests & Public Visibility: The City would expect to invite elected or appointed officials to attend the meetings — not as a panelist, but instead offer them an opportunity to listen and gain more information as to what is being accomplished. These guests would include: Metropolitan Council Sector 12 - Board Member Local legislators, MPCA, and other governmental organization representatives. Guests will be welcomed at meetings and materials will be shared with them, as supplies permit. Otherwise copies will be available for download from the City Website. The general public is also welcome to view and listen to these meetings as space allows, but such meetings are not PUBLIC HEARINGS and data presented and dialogue held is for the primary benefit and consumption of the Panel Members. City Council Role: Oak Park Heights elected officials may not serve on the Advisory Panel as the work of the Advisory Panel is intended to support the Council in its decision making regarding the future of this property. The Council will be fully briefed by the Consultant, following every working meeting. The Council will have the opportunity to either accept and embrace Panel recommendations, or direct course corrections, as needed. As it relates to City Council general interface with City Consultants, these communications should be channeled through City Staff similar to current City protocols. Page 261 of 284 IXGUT li►"Il[We afflAl dI City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel. Name of Organization: n T) o 7` Nominee of Organization: AD.4yv\ o S 1� Sea Role of Nominee in Organization: AE - 1)1.4.,V,46,gZ Number of years in such Role: /0f Contact Information of Nominee: Address: /5-66 ` Email:+� ,y� l 1 Scr t• � ,, n -w Phone: ) 1 Z3 41 — 77 ! y By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant Decommissioning and Reuse Advisory Panel that will act as a general guide. Please complete this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention of. Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnson@cityofoakparkheights.com Should you have any questions please reach out to Eric Johnson, City Administrator at 651-439-4439. Page 262 of 284 NON-UNATION ION f+t`ERM City of Oak Park Heigbts Allen l Prot I) ccunuuis6)ninr and Reim, :' dvisur�' Panel. Name of Organization' Nominee of Organization: Role o1'1'ticawhiec iLn org ar-], a!1011, '-K-cc . `x Number of years in such Role: I �- Contact Information of Nominee: Address: -?n ,,, V5 Email: rulan ' r7Criiyytic�V6.t Phone: By submission t)f fhisT-(-)RM yOur (Ii-ganizatlon is oftring il" NILp otl Irl. ilia: ];1cii, idulil it) Iili1111'a 'ly represUnt the ?'CLIc ill goals and of such 01, anizatio n 1hi-OULIlWHI SLWiL Please review the attached City 1 e lit~ - L'clatuc to [lie =Alar S. King Planl g .atyci lel USk; Advisory Panel tliat v:'id „cf a-,. a 6?er]cy al guldu. Please compictu this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention of: I.: IG.?:�h;pti4ln, 010 ALllll_lii,411'JLor 1 11O,: DA Piirl; RI-aal N. on,, Pl -k I IL_Whi;, \IN 55082. OR tneajohnson'i4;eityo fcaL-parlcbeights_com Shot�lcl you have anv qULSIJUMa Plea;e reach out to Eric Tohnsoa, City Administrator at 651-439-4439. Page 263 of 284 NOMINATION FORM City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel. Name of Organization: Minnesota DNR Nominee of Organization: Jim Levitt Role of Nominee in Organization: Assistant Area Fisheries Supervisor - East Metro Number of years in such Role: 6 years in current role Contact Information of Nominee: Address: 1200 Warner Road Saint Paul, MN 55106 Email: jim.levitt@state.mn.us Phone: 651-259-5819 By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant Decommissioning and Reuse Advisory Panel that will act as a general guide. Please complete this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention of: Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnson@cityofoakparkheights.com Should you have any questions please reach out to Eric Johnson, City Administrator at 651-439-4439. Page 264 of 284 NOMINATION FORM City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel. Name of Organization: PA'ES tf' SE. Cno tx W 0Ay Nominee of Organization: 6 c t -t, F-ite-r- Role of Nominee in Organization: Number of years in such Role: Contact Information of Nominee: Address: , Vjr*'s Email• 6 7.L�� P� l� CL � M� , rt �,` Phone: (9 (7— sD ?�>K By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant Decommissioning and Reuse Advisory Panel that will act as a general guide. Please complete this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention of: Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnson@cityofoakparkheights.com Should you have any questions please reach out to Eric Johnson, City Administrator at 651-439-4439. Page 265 of 284 NOMINATION FORM City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel. Name of Organization: Nominee of Organization: LD-e,nis.e, T6-,--t9t W Role of Nominee in Organization: Number of years in such Role: Contact Information of Nominee: Address: t6 l Email: Phone: (.6 _ 35i _ T,30l By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant Decommissioning and Reuse Advisory Panel that will act as a general guide. Please complete this NOMINATION FORM and return it to the City not later than April 10th, 2020 to the Attention o£ Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnson@cityofoakparkheights.com Should you have any questions please reach out to Eric Johnson, City Administrator at 651-439-4439. Page 266 of 284 E71 NOMINATION FORM City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel. Name of Organization: 6"Cc-fel- C;7 -k I LLP r inee of Organization: Role of Nominee in Organization: Number of years in such Role: `4rs Contact Information of Nominee: Address: 0v Lo s4 r) tc+ �L 'x)u P Y- Email:-kt(Q{2c+C'�S7j�WGI Chu rr'-bg Phone: 131—!Y00 j By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant 1 _ c ,i it ,, issioning and Reuse Advisory Panel that will act as a gencral guide. Please complete this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention of. Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnsonCcityofoakparkheights.com Should you have any questions please reach out to Eric Johnson, City Administrator at 651-439-4439. Page 267 of 284 NOMINATION FORM City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel. Name of Organization: A" / W -e4Z1-1Ak�� Nominee of Organization: --Tr—,nt Rd &U* Pole of Nominee in Organization: i Number of years in such Role: Contact Information of Nominee: Address: L� I�� `T ick. A Email: % f'n ai p- &, � • /� �'�' Phone: w S z130 -Q&,0 By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant Decommissioning and Reuse Advisory Panel that will act as a general guide. Please complete this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention o£ Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnson@cityofoakparkheights.com Should you have any questions please reach out to Eric Johnson, City Administrator at 651-439-4439. Page 268 of 284 NOMINATION FORM City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel. Name of Organization: Ala -Nona ( 1 --?rk S P rvo're. S -f- CG i y f Je4-'tonctS Cf'%1 r `G r VP! WrL� Nominee of Organization: C zlonSlc� Role of Nominee in Organization: S& ker,,n fen dee f Number of years in such Role: Contact Information of Nominee: Address: 4/01 pl. Ma M r,1 S 0-dix Fos w) 5gvz . Email: U e-- c{ionS kt n Phone: / 5y 3 70 By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant Decommissioning and Reuse Advisory Panel that will act as a general guide. Please complete this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention of: Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnson@cityofoakparkheights.com Should you have any questions please reach out to Eric Johnson, City Administrator at 651-439-4439. Page 269 of 284 NOMINATION FORM C.'i1v of flak Park, 1Ieiglitr Allen S. Kim, Plaw Deconimis6oning and Reuse Advisory Panel Name of Organization: 4 Nominee o`-Ortanixaiicyn Role of Nominee in Organization: Number of years in sueh Role: Contact Information of Nominee: Address: f fl'f'f IV, ��1 r Vo/a/',, a r t ' Email: , phone. (d'1 fiiti FOR VT yourorgan:zatluri is offering; its suppoil for the named individual to fiu lAlly r'Gj)1-4.5c:711 11i;: t :: ia;rE„ "-oak .end interests ofsuch organization througliout such praccs$. 1'iti7sc rcviti,4 ?Tri;7111.ic'f;cd ('ilp M`r;i(:ics rc kited to the Allen S. King Plant Decommissioning and Reuse Advisory F;wc:l 11:771 w!11 ;wz <-s ,i-vr,cs-al cuitie. Please corn plete this NOMINATION FORM and return it to the City not later than April 10, 2020 to the Attention of Eric lc)hrnsnn, City Adminiso-ator 14168 flak Park Blvd N. Oak Park Heights, DVEN 55082 OR Lo: ea�ohnson(ci}cityoiirakpt�il i c:it�l t ,�.. ati� Should you have any questlors -C'11-11 0111 111 ["FIC 141111 u, L'11 -y Adi-i Mn!�h:�rCca; tial 65 1-130-11 3Q. Page 270 of 284 NONUNA City of Oak Park Heights Allen S. King Name of Organization: Nomineeof Or am dation: C.ole*e- �wyr- and Y! Cs" ��hm. KinA Plan+ biYLe:Ior Role of Nominee in Organization: Maw er — I-OCaI AoveYnwer& a "dn5 ancT EConomi C✓ v<<epr►�nt Number of years in such Role: /, � .'- Contact Information of Nominee: Address: //OJT Kiina Plan+ Ro-aA Email: bYian. behm@ Xce)mn my, 0-0 W) Phone: and Reuse Adviso anel. By submission of this FORM your organization is offering its support for the named individual to faithfully represent the general goals and interests of such organization throughout such process. Please review the attached City Policies related to the Allen S. King Plant Decommissioning an Reuse Advisory Panel that will act as a general guide. Please complete this NOMINATION FORM and return it to the City not later ril 1 Attention of Eric Johnson, City Administrator 14168 Oak Park Blvd N. Oak Park Heights, MN 55082 OR to: eajohnson@cityofoakparkhei ts.co Should you have any questions please reach out to Eric Johnson, City Administr or at -439-4439. l , DP f `U Page 1 of 28 Newsletter Page 19 City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel APPLICATION PAGE NAM E DATE Lr, L/`fD A 9-' NceAk- ADDRESS PHONE E-MAIL To provide the City Council with an understanding of you, your Background and your interests, please an wer the following questions (you may attach an extra sheet if necessary):�"I .-5 HOW LONG HAVE YOU LIVED IN OAK PAR HEIGHTS? OCCUPATION: po PRIOR EXPERI ON CITY COMMISSIONS, CITY BOARDS, ETC: Baa 't- N)(e," �- GkT-j(.19- �-- a, --CMV---X \ lv7 C k U I t-1yl v tlrz0sS PLEASE PROVIDE A SUMMARY OF WHY YOU WOULD LIKE TO BE APPOINTED TO THE ADVISORY PANEL? u i`'l- w rnfry, l% " Q- k 0J f3 I.S�TfH�ERE ANY OTHER INFORMATION YOUWOULD `L'IKEIUS TO ONSIDER REGARDING THIS fAPPOINTMENT? Yy o pe VN 1 fa[? i` Please return to by Aoril 102020 Eric Johnson, City Administrator City of Oak Park Heights 14168 Oak Park Blvd N Stillwater, MN 55082 Page 272 of 284 Newsletter Page 19 City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel APPLICATION PAGE NAME, ..._. ..._ _ ..- • - •---••- •--•- ADDRESS PHONE E-MAIL 3 DATE To provide the City Council with an understanding of you, your background and your interests, please answer the following questions (you may attach an extra sheet if necessary): HOW LONG HAVE YOU LIVED IN OAK PARK HEIGHTS?�� OCCUPATION: _.._ 4 -t 7-01cle-llfY,MD. r, �� �2f� PRIOR EXPERIENCE ON CITY COMMISSIONS, CITY BOARDS, ETC-. iv� 64 014) iE_-V,/4J 14-,o A/ 41-6 CAW PLEASE PROVIDE A SUMMARY OF WHY YOU WOULD LIKE TO BE APPOINTED TO THE ADVISORY PANEL? cr. Y ,v'/ L ilk IS THERE ANY OTHER INFORMATION YOU WOULD LIKE US TO CONSIDER REGARDING/THIS APPOINTMENT? /e e Please return to by Aoril 10. 2020 Eric Johnson, City Administrator City of Oak Park Heights 14168 Oak Park Blvd N Stillwater, MN 55082 Page 273 of 284 NewsIetter Page 19 NAME &= 5at 3 . ADDRESS ixk Heights ig Plant teuse Advisory Panel ►N PAGE PHONE E-MAIL '3 1 ) . U f L�" - DATE To provide the City Council with an understanding of you, your background and your interests, please answer the following questions (you may attach an extra sheet if necessary): HOW LONG HAVE YOU LIVED IN OAK PARK HEIGHTS?4- OCCUPATION:t PRIOR EXPERIENCE ON CITY COMMISSIONS, CITY BOARDS, ETC: A. r PLEASE PROVIDE A SUMMARY OF WHY YOU WOULD LIKE TO BE APPOI _;I_ TO PANEL? !N1 =' M IS THERE ANY OTHER INFORMATION YOU WOULD LIKE US TO CONSIDER REGARDING THIS APPOINTMENT? Please. return to by Aoril 10. 2020 Eric Johnson, City Administrator City of Oak Park Heights 14168 Oak Park Blvd N Stillwater, MN 55082 Page 274 of 284 lie" stetter Page 19 City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel APPLICATION PAGE - - A:: aN-, - —z It, /-��� C3 NAME DATE ADDRESS [� n PHONE E -MAI To provide the City Council with an understanding of you, your background and your interests, please answer the following questions (you may attach an extra sheet if necessary): HOW LONG HAVE YOU LIVED IN OAK PARK HEIGHTS? OCCUPATION:-:v�tz�,�' PRIOR EXPERIENCE ON CITY COMMISSIONS, CITY BOARDS, ETC: -\J h? y��Z.(L'� PLEASE PROVIDE A SUMMARY OF WHY YOU WOULD LIKE TO BE APPOINTED TO THE ADVISORY PANEL? IS THERE ANY OTHER INFORMATION YOU WOULD LIKE US TO CONSIDER REGARDING THIS APPOINTMENT? ✓ L� i w�`� ' �i�i N'�- l,� � �`� `��I� L' �L-'?Sj�`•"� , �L—%'Stn(\ /�1s�jp Please return to by April 10, 2020 Eric Johnson, City Administrator City of Oak Park Heights 14168 Oak Park Blvd N Stillwater, MN 55082 Page 275 of 284 City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel 1. Name/address/contact: John Regal 5690 Newberry Ave N Oak Park Heights MN 55082 651-260-1363 johnre ag ll3gicloud.com 2. My wife Barb and I have lived in our current house in Oak Park Heights for seven years. 3. I am Senior Director of Public Affairs for Securian Financial in downtown St. Paul (see attached bio). 4. I served 12 years on the board of the St. Paul Port Authority, including two years as Board Chair. The SPPA was formed over 90 years ago to manage the Mississippi River harbor in St. Paul. Now, the SPPA manages four ports and 17 inland business centers. The SPPA is St. Paul's pre -imminent economic development agency. I also served on the board for the St. Paul Riverfront Corporation. Our task was to carry out the vision of making the 26 miles of the Mississippi River in St. Paul an excellent "working river" but also more accommodating to the public for living & recreation. Please see attached bio for other board service. The completion of the St. Croix bridge crossing in 2017 was monumental for the entire St. Croix Valley. I would argue that the decommissioning and reuse of the Allen S. King plant site is equally, if not more, impactful for the Valley....it certainly is for Oak Park Heights. Oak Park Heights and other communities continue to thrive because they grow and evolve with the appropriate balance of industrial/light industrial, commercial and residential tax bases. Successfully re -purposing a large industrial site is not easy. When it's located on a pristine river, it becomes really complex. But if done correctly with the proper vision and execution, they can be transformative. I've experienced this in St. Paul. I'd like to learn more, provide assistance and hopefully experience this in Oak Parks Heights too. 6. I've been employed with Securian Financial for 21 years. Previously, I spent 10+ years with the City of St. Paul working with three Mayors. Each had visions for the River. I've done my time in the Public Sector! 7. Please contact former SPPA President Louie Jambois (651-295-3596) or current SPPA President Lee Krueger (651-204-6226) for references. Page 276 of 284 oX0 securian FINANCIAL John D. Regal Senior Director, Public Affairs John is the Senior Director of Public Affairs for Securian Financial. He currently serves on the Minnesota Insurance and Financial Services Council Board of Directors. Experience Previously, John was Director of Risk Management, Business Continuity and Local Public Affairs for Securian. Prior to joining Securian in 1998, John spent over 10 years in various capacities within the City of St. Paul Department of Finance. Education • Bachelor's degree, Carlson School of Management at the University of Minnesota • Master of Business Administration, University of St. Thomas • Associate in Risk Management, Insurance Institute of America Community John is the past chair and current board member of Sargasso Mutual Insurance Company, a Bermuda -domiciled group insurance captive. He was a member of the Risk Management Committee that advised the 2018 Super Bowl Host Committee and is a two -term past president of the Minnesota Chapter of the Risk and Insurance Management Society (RIMS). John is a member of both the University of Minnesota's Leadership Council and the President's Club. He is past chair of the St. Paul Area Chamber of Commerce board of directors, the Chamber's political action committee and past chair and board member of the St. Paul Port Authority. Securian Financial is the marketing name for Securian Financial Group, Inc., and its affiliates. Securian Financial Group, Inc. securian.com 400 Robert Street North, St. Paul, MN 55101-2098 ©2019 Securian Financial Group, Inc. All rights reserved. F72427-30 5-2019 DOFU 8-2018 836600 0 Office: 651-665-3467 Mobile: 651-260-1363 john.regal@securian.com Page 277 of 284 NI TtwsSetter Page 14 J c"3 APPLICATION PAGE NAME f DATE y ADDRESS PIC I PHONE E-MAIL To provide the City Council with an understanding of you, your background and your interests, please answer the following questions (you may attach an extra sheet if necessary): HOW LONG HAVEYOULIVED IN OAK OCCUPATION: PRIOR EXPERIENCE ON CITY COMMISSIONS, CITY BOARDS, ETC.- Aft TC:Aft e - PLEASE PROVIDE A SUMMARY OF WHY YOU WOUL9 LIKE TO BE APPOINTED TO THE ADVISORY PANEL? 1 V-1 epi % - tt"Af-1 cam' IS TH9E ANY OTHER/INFORMATION YOU WOULD LIKE 9TO NSIDER REGARDING THIS APPOINTMENT? i hL'�V�1 t1L�r'L i 1�J.Ti�- G•�L. 1 CCf��// %"tJ Please return to by April J.O. 2020 Eric Johnson, City Administrator City of Oak Park Heights 14168 Oak Park Blvd N Stillwater, MN 55082 Page 278 of 284 r Newsletter NAME ADDRESS City of Oak Park Heights Allen S. King Plant Decommissioning and Reuse Advisory Panel APPI.IC-ATION RkGE DATE -7-5 74: le- � 2 PHONE E-MAIL I?age 19 To provide the City Council with an understanding of you, your background and your interests, please answer the following questions (you may attach an extra sheet if necessary):���/` HOW LONG HAVE YOU LIVED IN OAK PARK HEIGHTS? r 6�y���/� OCCUPATION: PRIOR EXPERIENCE ON CITY COMMISSIONS, CITY BOARDS, ETC: PL SE PROVIQ�ASUMMARY OF WHY YOU WgULD LI�O BE APPOINTED TO THE ADVI r 0 a s% e'.^ V4 Q RY ANEF�%�� " IS THERE ANY OTHER INFORMATION YOU WOULD LIKE US TO CONSIDER REGARDING THIS APPOINTMENT? Please return to by Agril 10, 2020 � Eric Johnson, City Administrator City of Oak Park Heights 14168 Oak Park Blvd N Stillwater, MN 55082 Page 279 of 284 Kate Hanson 5841 Oakgreen Ct. N. Oak Park Heights National Park Service Experience St. Croix National Scenic Riverway • Chief of Resource Management • Chaired Lower St. Croix River Planning Task Force (interagency, public, private) • Represented NPS with groups such as MNDOT/WISDOT St. Croix Bridge Crossing Advisory Committee, Upper and Lower St. Croix Planning Commissions, Indian Fish & Game Commission, St. Croix Watrshed Research Group, various meetings with local governments regarding NPS interests. Mississippi National River and Recreation Area • Chief of Resource Management • implemented Comprehensive Management Plan, working with Met Council and local governments, and private and nonprofit groups along 52 miles of the Mississippi through the Twin Cities Metro Area. • Represented NPS in interactions with a variety of groups. Southern Nevada Agency Partnership • Executive Director of Southern Nevada Agency Partnership, comprised of National Park Service, US Fish &Wildlife Service, US Forest Service, and Bureau of Land Management. Reported to Executive Committee made up of agency heads. • Ensured implementation of multi-million dollar interagency projects being carried out by agency staff, • Oversight of funding provided to the agencies from the sale of BLM lands surrounding Las Vegas (to accommodate growth of Las Vegas), with legislative accountability. • Supervised contracts and cooperative agreements with nonprofit agencies and University of Nevada to carry out projects. • Oversaw the work of interagency teams addressing projects involving law enforcement, cultural resource protection, environmental education, vegetation management, fisheries management. • Developed partnerships to continue projects when funding was no longer available. Page 280 of 284 Oak Park Heights Request for Council Action Meeting Date April 281h, 2020 Time Required: 5 minutes Agenda Item Title: 2020 Party in the Park- Agenda ark Agenda Placement New Business Originating Department/Requestor Jenni Pinski, Cil, Clerk Requester's Signature Action Requested Discussion, Possible Action Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): Party in the Park is set for June 4. As we know, the news and updates on the COVID-19 pandemic change daily, or even hourly. We do not know how long we will be required to limit gatherings. Additionally, even if we are allowed to have gatherings by June 4, many of our Oak Park Heights' businesses are currently closed or offering limited services during this pandemic, and it may be difficult for them to take part in the event, and I will need time to work with them and with other vendors to organize the event. I also believe it may take time for people to feel comfortable in large groups. My recommendation is for the City Council to consider cancelling the 2020 Party in the Park, or alternatively, tentatively rescheduling the 2020 Party in the Park for National Night Out or another day later in the year. It is being recommended that National Night Out celebrations be rescheduled from the first Tuesday in August to the first Tuesday in October (October 6). Page 281 of 284 THIS PAGE INTENTIONALLY LEFT BLANK Page 282 of 284 Oak Park Heights Request for Council Action Meeting Date April 281h, 2020 Time Required: 5 minutes Agenda Item Title: 2020 Goal Setting Agenda Placement New Business Originating Department/Requestor Eric Johnson, City Administrator Requester's Signature Action Requested Discussion, Possible Action Background/Justification (Please indicate if any previous action has been taken or if other public bodies have advised): The Council did desire to hold a 2020 goal setting session and was initially slated to be held in April, but has been delayed due to the COVID-19 happenings. Enclosed is the listing of issues and items received to date and/or are estimated to be necessary to discuss. This list can certainly be amended or added to. The Council could discuss a timeline for these and/or address each individually over time. However, I would offer that dedicating a specific meeting for these conversations would be more valuable. The question of course is when or how? Page 283 of 284 DRAFT LIST... Subject to change! City of Oak Park Heights - 2020 Goal Setting Update for April 28th 2020 Requestor Discussion Item Short Summary McComber / C. Last update was several years ago, update names, pronouns, update for Johnson Update to City Ordinance Codes Book law changes. The last comprehensive update was 8-10 years ago. Options incl ude a complete re -codification or Chapter by chapter refinement? Discuss the request to insert data from STATE/FEDERAL Elected Officials - Runk Create Weekly Notes Policy on Incl usion of Elected Officials Materials These can be partisan and perhaps consider NOT putting these in weekly notes The City was asked by the WCHS about a contribution to their proposed STAFF Washington County Historical Society -Contribution CENTER; a follow-up was made to the City after the first of the year. The City's Agreement with Raleigh expires at the end April 2021, if the City has concerns about the stability and operational capacity they City must Dougherty Snow Plowing- Future Options have alternatives. This could be the solicitation of an RFP and/or the examination of it being done in-house. Also consider an update to 2" Snow plowing rules - maybe STAFF/ Discuss amendment to BYLAWS that may allow some extended tenures - Planning Tenure of Planning Commissioner - Bylaw Updates beyond two terms or special one year extension. Commission Council discussed the possibility of pursuing a subdivision of the COUNCIL Bel I Property -Design Options property for 2- 3 Single family units- Develop concept plans City might consider development of some form of decal messaging for McComber Public Safety Decals - Signage for Doors/ Windows homes that can convey information to POLICE/FIRE/EMS/ETC How can the City Council and staff better fami I iari ze themselves with Dougherty Employee ID Book or Photos for wa I I? each other - possible Photo book or other ideas - Remember the wall portraits! With the pending decommissioning of the King plant, what happens to the OH POWER LINES. Should the City consider an "OVERLAY" zoning Dougherty Ordinance Draft for Areas under Transmission lines district or land use plan for these areas. Total areas can be 75 acres in the City as a whole. Dougherty Empty Retail/Restaurant Structures Discuss these parcels and again think about what role the City can play to fill these. Discuss if there is a possibility of a revenue stream coming from the McComber Cha ri to bl e Ga mbl i ng securing of a small percentage of the gambling receipts. Perhaps Explore what other cities have done. The City has completed the jurisdictional transfer and the Municipal- Turnback Agreement and we expect to see a $1.1 Mi I I ion check i n StaffMNDOT Lookout Tra -NEXT STEPS the coming weeks. If the next step is a 2021 construction ti mel i ne..., if so... this design and process should begin this summer. Staff has requested more information and had some meetings with the County; However at some point the City will need to take some official Staff Washington County- South Frontage Road position on the matter- MUNICIPAL CONSENT. Concerns relate to impact to City taxpayers (retailers); City cost share and traffic impacts. Staff needs clear direction as the County plans to construct in 2022. Staff NorelIAve- SouthFrontageRoad- UPDATE General update- Discuss Funding from State orMNDOTgrant-Timelines Staff COVID -19 Update - Response and Post Incident Review & BUDGET Assuming it ends... what went well, what did not, anticipated aftermath - IMPACTS budgets, funding, new mandates? Page 284 of 284