HomeMy WebLinkAbout06-25-18-RAPPROVAL OF AGENDA
RESPONSE TO PUBLIC INQUIRIES
PUBLIC INQUIRIES/INFORMATIONAL
This is an opportunity for citizens to bring to the Council ’s attention any items not
currently on the agenda which are relevant to the City. In addressing the Council, you
must first state your name and address for the record. To allow adequate time for each
person wishing to address the Council, speakers must limit their comments to three
(3) minutes. Written documents may be distributed to the Council prior to the meeting
to allow a more timely presentation. Speakers should not use obscene, profane, or
threatening language, or make personal attacks. The Council may not respond to
speaker comments, engage in a debate, or take any action on the issues raised by
citizens, but may direct City staff to research or follow up on an issue, if desired by
Council. If Council directs further review by staff, the results of that review will be
presented at a following regular Council meeting.
PUBLIC PRESENTATIONS
2017 Financial Statements
Aaron Nielsen / MMKR
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
ATTACHMENT C.PDF
STAFF COMMENTS
Rice Creek Commons (TCAAP) And Joint Development Authority (JDA) Update
Dave Perrault, City Administrator
MEMO.PDF
Transportation Update
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
Night To Unite Update
Julie Hanson, City Clerk
MEMO.PDF
APPROVAL OF MINUTES
May 22, 2018 Special City Council Work Session
05 -22 -18 -SWS.PDF
May 29, 2018 Regular City Council
05 -29 -18 -R.PDF
CONSENT CALENDAR
Those items listed under the Consent Calendar are considered to be routine by the
City Council and will be enacted by one motion under a Consent Calendar format.
There will be no separate discussion of these items, unless a Councilmember so
requests, in which event, the item will be removed from the general order of business
and considered separately in its normal sequence on the agenda.
Motion To Approve Claims And Payroll
Gayle Bauman, Finance Director
Pang Silseth, Accounting Analyst
MEMO.PDF
Motion To Approve 2017 City Financial Statements And Audit
Gayle Bauman, Finance Director
MEMO.PDF
Motion To Accept Proposal For Design Services –Bolton & Menk -Colleen
Avenue Drainage Improvements
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
Motion To Authorize Posting For Senior Engineering Tech Position
Dave Perrault, City Administrator
MEMO.PDF
Motion To Approve Payment No. 1 –Northwest Asphalt, Inc. -2018 Street And
Utility Improvement Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
Motion To Approve Payment No. 2 –Sunram Construction, Inc. -Old Snelling Trail
And Watermain Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
PULLED CONSENT ITEMS
Those items that are pulled from the Consent Calendar will be removed from the
general order of business and considered separately in its normal sequence on the
agenda.
PUBLIC HEARINGS
NEW BUSINESS
Construction Waiver For June 26 Through August 15, 2018 –County Road F
Improvement Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
ATTACHMENT C.PDF
UNFINISHED BUSINESS
Resolution 2018 -045 Authorizing The Issuance And Awarding The Sale Of 2018A
General Obligation Utility Revenue Bonds
Gayle Bauman, Finance Director
MEMO.PDF
ATTACHMENT A.PDF
COUNCIL COMMENTS
ADJOURN
Mayor:
David Grant
Councilmembers:
Brenda Holden
Fran Holmes
Dave McClung
Steve Scott
Regular City Council
Agenda
June 25, 2018
7:00 p.m.
City Hall
Address:
1245 W Highway 96
Arden Hills MN 55112
Phone:
651 -792 -7800
Website :
www.cityofardenhills.org
City Vision
Arden Hills is a strong community that values its unique environmental setting, strong residential
neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our
long -standing tradition as a desirable City in which to live, work, and play.
CALL TO ORDER
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APPROVAL OF AGENDARESPONSE TO PUBLIC INQUIRIESPUBLIC INQUIRIES/INFORMATIONALThis is an opportunity for citizens to bring to the Council ’s attention any items not currently on the agenda which are relevant to the City. In addressing the Council, you must first state your name and address for the record. To allow adequate time for each person wishing to address the Council, speakers must limit their comments to three (3) minutes. Written documents may be distributed to the Council prior to the meeting to allow a more timely presentation. Speakers should not use obscene, profane, or threatening language, or make personal attacks. The Council may not respond to speaker comments, engage in a debate, or take any action on the issues raised by citizens, but may direct City staff to research or follow up on an issue, if desired by Council. If Council directs further review by staff, the results of that review will be presented at a following regular Council meeting.PUBLIC PRESENTATIONS2017 Financial StatementsAaron Nielsen / MMKR MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFATTACHMENT C.PDFSTAFF COMMENTS
Rice Creek Commons (TCAAP) And Joint Development Authority (JDA) Update
Dave Perrault, City Administrator
MEMO.PDF
Transportation Update
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
Night To Unite Update
Julie Hanson, City Clerk
MEMO.PDF
APPROVAL OF MINUTES
May 22, 2018 Special City Council Work Session
05 -22 -18 -SWS.PDF
May 29, 2018 Regular City Council
05 -29 -18 -R.PDF
CONSENT CALENDAR
Those items listed under the Consent Calendar are considered to be routine by the
City Council and will be enacted by one motion under a Consent Calendar format.
There will be no separate discussion of these items, unless a Councilmember so
requests, in which event, the item will be removed from the general order of business
and considered separately in its normal sequence on the agenda.
Motion To Approve Claims And Payroll
Gayle Bauman, Finance Director
Pang Silseth, Accounting Analyst
MEMO.PDF
Motion To Approve 2017 City Financial Statements And Audit
Gayle Bauman, Finance Director
MEMO.PDF
Motion To Accept Proposal For Design Services –Bolton & Menk -Colleen
Avenue Drainage Improvements
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
Motion To Authorize Posting For Senior Engineering Tech Position
Dave Perrault, City Administrator
MEMO.PDF
Motion To Approve Payment No. 1 –Northwest Asphalt, Inc. -2018 Street And
Utility Improvement Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
Motion To Approve Payment No. 2 –Sunram Construction, Inc. -Old Snelling Trail
And Watermain Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
PULLED CONSENT ITEMS
Those items that are pulled from the Consent Calendar will be removed from the
general order of business and considered separately in its normal sequence on the
agenda.
PUBLIC HEARINGS
NEW BUSINESS
Construction Waiver For June 26 Through August 15, 2018 –County Road F
Improvement Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
ATTACHMENT C.PDF
UNFINISHED BUSINESS
Resolution 2018 -045 Authorizing The Issuance And Awarding The Sale Of 2018A
General Obligation Utility Revenue Bonds
Gayle Bauman, Finance Director
MEMO.PDF
ATTACHMENT A.PDF
COUNCIL COMMENTS
ADJOURN
Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungSteve Scott Regular City Council AgendaJune 25, 20187:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.2.3.4.4.A.Documents:5.
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APPROVAL OF AGENDARESPONSE TO PUBLIC INQUIRIESPUBLIC INQUIRIES/INFORMATIONALThis is an opportunity for citizens to bring to the Council ’s attention any items not currently on the agenda which are relevant to the City. In addressing the Council, you must first state your name and address for the record. To allow adequate time for each person wishing to address the Council, speakers must limit their comments to three (3) minutes. Written documents may be distributed to the Council prior to the meeting to allow a more timely presentation. Speakers should not use obscene, profane, or threatening language, or make personal attacks. The Council may not respond to speaker comments, engage in a debate, or take any action on the issues raised by citizens, but may direct City staff to research or follow up on an issue, if desired by Council. If Council directs further review by staff, the results of that review will be presented at a following regular Council meeting.PUBLIC PRESENTATIONS2017 Financial StatementsAaron Nielsen / MMKR MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFATTACHMENT C.PDFSTAFF COMMENTSRice Creek Commons (TCAAP) And Joint Development Authority (JDA) UpdateDave Perrault, City Administrator MEMO.PDFTransportation UpdateSue Polka, Public Works Director/City Engineer MEMO.PDFNight To Unite UpdateJulie Hanson, City Clerk MEMO.PDFAPPROVAL OF MINUTESMay 22, 2018 Special City Council Work Session05-22 -18 -SWS.PDFMay 29, 2018 Regular City Council05-29 -18 -R.PDFCONSENT CALENDARThose items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar format. There will be no separate discussion of these items, unless a Councilmember so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda.Motion To Approve Claims And PayrollGayle Bauman, Finance DirectorPang Silseth, Accounting Analyst MEMO.PDFMotion To Approve 2017 City Financial Statements And Audit
Gayle Bauman, Finance Director
MEMO.PDF
Motion To Accept Proposal For Design Services –Bolton & Menk -Colleen
Avenue Drainage Improvements
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
Motion To Authorize Posting For Senior Engineering Tech Position
Dave Perrault, City Administrator
MEMO.PDF
Motion To Approve Payment No. 1 –Northwest Asphalt, Inc. -2018 Street And
Utility Improvement Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
Motion To Approve Payment No. 2 –Sunram Construction, Inc. -Old Snelling Trail
And Watermain Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
PULLED CONSENT ITEMS
Those items that are pulled from the Consent Calendar will be removed from the
general order of business and considered separately in its normal sequence on the
agenda.
PUBLIC HEARINGS
NEW BUSINESS
Construction Waiver For June 26 Through August 15, 2018 –County Road F
Improvement Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
ATTACHMENT C.PDF
UNFINISHED BUSINESS
Resolution 2018 -045 Authorizing The Issuance And Awarding The Sale Of 2018A
General Obligation Utility Revenue Bonds
Gayle Bauman, Finance Director
MEMO.PDF
ATTACHMENT A.PDF
COUNCIL COMMENTS
ADJOURN
Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungSteve Scott Regular City Council AgendaJune 25, 20187:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.2.3.4.4.A.Documents:5.5.A.Documents:5.B.Documents:5.C.Documents:6.6.A.Documents:6.B.Documents:7.7.A.Documents:7.B.
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APPROVAL OF AGENDARESPONSE TO PUBLIC INQUIRIESPUBLIC INQUIRIES/INFORMATIONALThis is an opportunity for citizens to bring to the Council ’s attention any items not currently on the agenda which are relevant to the City. In addressing the Council, you must first state your name and address for the record. To allow adequate time for each person wishing to address the Council, speakers must limit their comments to three (3) minutes. Written documents may be distributed to the Council prior to the meeting to allow a more timely presentation. Speakers should not use obscene, profane, or threatening language, or make personal attacks. The Council may not respond to speaker comments, engage in a debate, or take any action on the issues raised by citizens, but may direct City staff to research or follow up on an issue, if desired by Council. If Council directs further review by staff, the results of that review will be presented at a following regular Council meeting.PUBLIC PRESENTATIONS2017 Financial StatementsAaron Nielsen / MMKR MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFATTACHMENT C.PDFSTAFF COMMENTSRice Creek Commons (TCAAP) And Joint Development Authority (JDA) UpdateDave Perrault, City Administrator MEMO.PDFTransportation UpdateSue Polka, Public Works Director/City Engineer MEMO.PDFNight To Unite UpdateJulie Hanson, City Clerk MEMO.PDFAPPROVAL OF MINUTESMay 22, 2018 Special City Council Work Session05-22 -18 -SWS.PDFMay 29, 2018 Regular City Council05-29 -18 -R.PDFCONSENT CALENDARThose items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar format. There will be no separate discussion of these items, unless a Councilmember so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda.Motion To Approve Claims And PayrollGayle Bauman, Finance DirectorPang Silseth, Accounting Analyst MEMO.PDFMotion To Approve 2017 City Financial Statements And AuditGayle Bauman, Finance DirectorMEMO.PDFMotion To Accept Proposal For Design Services –Bolton & Menk -Colleen Avenue Drainage Improvements Sue Polka, Public Works Director/City Engineer MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFMotion To Authorize Posting For Senior Engineering Tech PositionDave Perrault, City Administrator MEMO.PDFMotion To Approve Payment No. 1 –Northwest Asphalt, Inc. -2018 Street And Utility Improvement ProjectSue Polka, Public Works Director/City Engineer MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFMotion To Approve Payment No. 2 –Sunram Construction, Inc. -Old Snelling Trail And Watermain ProjectSue Polka, Public Works Director/City Engineer MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFPULLED CONSENT ITEMSThose items that are pulled from the Consent Calendar will be removed from the general order of business and considered separately in its normal sequence on the agenda.PUBLIC HEARINGSNEW BUSINESS
Construction Waiver For June 26 Through August 15, 2018 –County Road F
Improvement Project
Sue Polka, Public Works Director/City Engineer
MEMO.PDF
ATTACHMENT A.PDF
ATTACHMENT B.PDF
ATTACHMENT C.PDF
UNFINISHED BUSINESS
Resolution 2018 -045 Authorizing The Issuance And Awarding The Sale Of 2018A
General Obligation Utility Revenue Bonds
Gayle Bauman, Finance Director
MEMO.PDF
ATTACHMENT A.PDF
COUNCIL COMMENTS
ADJOURN
Mayor:David Grant Councilmembers:Brenda Holden Fran HolmesDave McClungSteve Scott Regular City Council AgendaJune 25, 20187:00 p.m. City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play.CALL TO ORDER1.2.3.4.4.A.Documents:5.5.A.Documents:5.B.Documents:5.C.Documents:6.6.A.Documents:6.B.Documents:7.7.A.Documents:7.B.Documents:7.C.Documents:7.D.Documents:7.E.Documents:7.F.Documents:8.9.10.
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PUBLIC PRESENTATION – 4A
MEMORANDUM
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
Dave Perrault, City Administrator
FROM: Gayle Bauman, Finance Director
SUBJECT: 2017 City Financial Statements
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Background/Discussion
The City’s 2017 Financial Statements have been completed and will be submitted to both the
State Auditor and the GFOA. The City’s auditor, Aaron Nielsen from MMKR, will be present at
the June 25, 2018, City Council meeting to give an overview and answer questions. The auditors
have issued an unmodified (“clean”) opinion on our financial statements for the year ended
December 31, 2017. The total general fund balance at December 31, 2017 was $3,639,317 with
$3,065,250 of unassigned balance; the new balance equates to an increase in the General Fund
balance of $694,504. The ending unassigned General Fund balance makes up approximately 64
percent of next year’s budgeted expenditures. The City’s total net position increased by
$278,782. The combined ending fund balances for governmental funds was $10,709,962; the
combined ending unrestricted net position for the enterprise funds was $1,298,744, and internal
service funds was $333,069.
We have completed the report in the form prescribed by the Government Finance Officers
Association of United States and Canada (GFOA) for their Certificate of Achievement for
Excellence in Financial Reporting. In order to qualify for this, the report has to be published in
an easily readable and efficiently organized Comprehensive Annual Financial Report (CAFR)
that satisfies both accounting principles generally accepted in the United States of America and
applicable legal requirements.
As a note of information, the Auditing Standards are constantly increasing and changing. With
these changes, you may see increased findings. This does not mean that the City has done
anything wrong compared to previous years, only that the reporting requirements have become
much stricter. Many cities are experiencing these findings, and the findings are expected to
increase for all cities as these standards become stricter. One finding was noted in the report
related to Segregation of Duties. We are pleased with the outcome of the audit.
Attachments
A. Management Report
B. Comprehensive Annual Financial Report
C. Special Purpose Audit Report
Management Report
for
City of Arden Hills, Minnesota
December 31, 2017
THIS PAGE INTENTIONALLY LEFT BLANK
To the City Council and Management
City of Arden Hills, Minnesota
We have prepared this management report in conjunction with our audit of the City of Arden Hills,
Minnesota’s (the City) financial statements for the year ended December 31, 2017. We have organized
this report into the following sections:
•Audit Summary
•Governmental Funds Overview
•Enterprise Funds Overview
•Government-Wide Financial Statements
•Legislative Updates
•Accounting and Auditing Updates
We would be pleased to further discuss any of the information contained in this report or any other
concerns that you would like us to address. We would also like to express our thanks for the courtesy and
assistance extended to us during the course of our audit.
The purpose of this report is solely to provide those charged with governance of the City, management,
and those who have responsibility for oversight of the financial reporting process comments resulting
from our audit process and information relevant to city finances in Minnesota . Accordingly, this report is
not suitable for any other purpose.
Minneapolis, Minnesota
June 7, 2018
THIS PAGE INTENTIONALLY LEFT BLANK
-1-
AUDIT SUMMARY
The following is a summary of our audit work, key conclusions, and other information that we consider
important or that is required to be communicated to the City Council, administration, or those charged
with governance of the City.
OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED
STATES OF AMERICA AND GOVERNMENT AUDITING STANDARDS
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 as of and for the year ended
December 31, 2017, and the related notes to the financial statements. Professional standards require that
we provide you with information about our responsibilities under auditing standards generally accepted in
the United States of America and Government Auditing Standards, as well as certain information related
to the planned scope and timing of our audit. We have communicated such information to you verbally
and in our audit engagement letter. Professional standards also require that we communicate the following
information related to our audit.
PLANNED SCOPE AND TIMING OF THE AUDIT
We performed the audit according to the planned scope and timing previously discussed and coordinated
in order to obtain sufficient audit evidence and complete an effective audit.
AUDIT OPINION AND FINDINGS
Based on our audit of the City’s financial statements for the year ended December 31, 2017:
• We have issued an unmodified opinion on the City’s basic financial statements.
• We reported one matter involving the City’s internal control over financial reporting that we
consider to be a material weakness as detailed in the Special Purpose Audit Reports. Due to the
limited size of the City’s office staff, the City has limited segregation of duties in certain areas.
• The results of our testing disclosed no instances of noncompliance required to be reported under
Government Auditing Standards.
• We reported no findings based on our testing of the City’s compliance with Minnesota laws and
regulations.
FUND BALANCE/NET POSITION DEFICITS
As reported in the City’s Comprehensive Annual Financial Report (CAFR), the Equipment, Building, and
Replacement Fund; Parks Fund; TCAAP Fund; Engineering Fund; Central Garage Fund; and Technology
Fund had year-end deficit equity balances of $259,269, $29,516, $150,362, $7,020, $26,797, and $31,790,
respectively. Management has disclosed that these deficits will be eliminated with future contributions,
grants, and internal fund transfers, if needed.
-2-
SIGNIFICANT ACCOUNTING POLICIES
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 of the notes to basic financial statements.
No new accounting policies were adopted and the application of existing policies was not changed during
the year ended December 31, 2017; however, the City implemented the following governmental
accounting standards during the fiscal year:
• Governmental Accounting Standards Board (GASB) Statement No. 79, Certain External
Investment Pools and Pool Participants, which enhanced disclosures regarding investments.
• GASB Statement No. 82, Pension Issues, an amendment of GASB Statements No. 67, No. 68, and
No. 73, which addressed certain issues related to pension reporting and disclosures.
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 AND MANAGEMENT JUDGMENTS
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 the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
• Depreciation – Management’s estimates of depreciation expense are based on the estimated
useful lives of the assets.
• Compensated Absences – Management’s estimate is based on current rates of pay and unused
compensated absences balances.
• Pension Benefits – The City has recorded amounts and activities for pension benefits. Actuarial
estimates of the net pension balances are calculated using actuarial methodologies described in
GASB Statement No. 68. The actuarial calculations include significant assumptions, including
projected changes, investment returns, retirement ages, proportionate share, and employee
turnover.
We evaluated the key factors and assumptions used by management to develop these estimates in
determining that they are reasonable in relation to the basic financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
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. Where applicable, management has corrected all such misstatements. In addition, none of
the misstatements detected as a result of audit procedures and corrected by management, when applicable,
were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as
a whole.
-3-
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this report, 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 June 7, 2018.
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.
OTHER MATTERS
We applied certain limited procedures to the management’s discussion and analysis (MD&A) and the
remaining 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 the RSI.
We were engaged to report on the supplemental information accompanying the financial statements
which are not RSI. With respect to this supplemental 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
supplemental 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 or statistical sections, 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.
-4-
GOVERNMENTAL FUNDS OVERVIEW
This section of the report provides you with an overview of the financial trends and activities of the City’s
governmental funds, which includes the General, special revenue, debt service, and capital project funds.
These funds are used to account for the basic services the City provides to all of its citizens, which are
financed primarily with property taxes. The governmental fund information in the City’s financial
statements focuses on budgetary compliance and the sufficiency of each governmental fund’s current
assets to finance its current liabilities.
PROPERTY TAXES
Minnesota cities rely heavily on local property tax levies to support their governmental fund activities.
For the 2016 fiscal year, local ad valorem property tax levies provided 39.8 percent of the total
governmental fund revenues for cities over 2,500 in population, and 36.4 percent for cities under 2,500 in
population.
The total market value of property in Minnesota cities increased about 5.6 percent for the 2017 levy year,
which followed an increase of 5.7 percent for levy year 2016. T he market values used for levying
property taxes are based on the previous fiscal year (e.g., market values for taxes levied in 2017 were
based on assessed values as of January 1, 2016), so the trend of change in these market values lags
somewhat behind the housing market and economy in general.
The City’s estimated market value increased by 1.9 percent for 2016 and increased 2.5 percent for taxes
payable in 2017. The following graph shows the City’s changes in estimated market value over the past
10 years:
$–
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Estimated Market Value
-5-
Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s
property classification system to each property’s market value. Each property classification, such as
commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total
tax capacity will change at a different rate than its total market value, as tax capacity is affected by the
proportion of the City’s tax base that is in each property classification from year-to-year, as well as
legislative changes to tax rates. The City’s tax capacity increased 1.5 percent for taxes payable in 2016,
and increased 2.3 percent for taxes payable in 2017.
The following graph shows the City’s change in tax capacities over the past 10 years:
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Local Tax Capacity
The following table presents the average tax rates applied to city residents for each of the last three levy
years, along with comparative state-wide and metro area average rates from the two most recent years for
which the information is available:
2015 2016 2015 2016 2015 2016 2017
Average tax rate
City 46.9 46.5 43.4 43.0 27.3 26.5 27.2
County 44.7 44.1 42.9 42.3 58.9 58.9 55.9
School 27.1 27.5 28.3 28.6 27.4 26.2 25.3
Special taxing 6.9 6.9 8.8 8.7 9.2 9.1 8.6
Total 125.6 125.0 123.4 122.6 122.8 120.7 117.0
Note: State-wide and metro area average tax rates are not available for 2017.
Rates Expressed as a Percentage of Net Tax Capacity
All Cities
State-Wide
Seven-County
Metro Area
City of
Arden Hills
There are a number of reasons contributing to the change in the average total tax rate. The City’s portion
of the tax capacity rates for its residents has historically been well below the average for Minnesota cities
state-wide and for cities in the seven-county metro area because of the City’s high property values and
strong commercial tax base. The City does not have any outstanding debt levy requirements, which also
contributes to the lower than average city tax rate.
-6-
GOVERNMENTAL FUND BALANCES
The following table summarizes the changes in the fund balances of the City’s governmental funds during
the year ended December 31, 2017, presented both by fund balance classification and by fund:
Increase
2017 2016
(Decrease)
Fund balances of governmental funds
Total by classification
Nonspendable 289,183$ 26,485$ 262,698$
Restricted 898,739 786,678 112,061
Committed 471,996 450,433 21,563
Assigned 6,423,941 4,130,709 2,293,232
Unassigned 2,626,103 2,443,164 182,939
Total governmental funds 10,709,962$ 7,837,469$ 2,872,493$
Total by fund
General 3,639,317$ 2,944,813$ 694,504$
EDA Operating 303,058 283,647 19,411
Equipment, Building, and Replacement (259,269) (37,102) (222,167)
Permanent Improvement Revolving 6,080,457 3,739,379 2,341,078
Other governmental funds 946,399 906,732 39,667
Total governmental funds 10,709,962$ 7,837,469$ 2,872,493$
as of December 31,
Governmental Fund Change in Fund Balance
Fund Balance
In total, the fund balances of the City’s governmental funds increased by $2,872,493 during the year
ended December 31, 2017. The majority of the increase was in assigned fund balance in the Permanent
Improvement Revolving Fund, due to a one-time reimbursement from the county for its share of a joint
street project.
-7-
GOVERNMENTAL FUND REVENUES
The following table presents the per capita revenue of the City’s governmental funds for the past
three years, along with state-wide averages.
We have included the most recent comparative state-wide averages available from the Office of the State
Auditor to provide a benchmark for interpreting the City’s data. The amounts received from the typical
major sources of governmental fund revenue will naturally vary between cities based on factors such as a
city’s stage of development, location, size and density of its population, property values, servic es it
provides, and other attributes. It will also differ from year-to-year, due to the effect of inflation and
changes in its operation. Also, certain data in these tables may be classified differently than how they
appear in the City’s financial statements in order to be more comparable to the state-wide information,
particularly in separating capital expenditures from current expenditures.
We have designed this section of our management report using per capita data in order to better identify
unique or unusual trends and activities of the City. We intend for this type of comparative and trend
information to complement, rather than duplicate, information in the MD&A. An inherent difficulty in
presenting per capita information is the accuracy of the population count, which for most years is based
on estimates.
Year 2015 2016 2017
Population 2,500–10,000 10,000–20,000 20,000–100,000 9,847 9,966 10,066
Property taxes 460$ 432$ 455$ 325$ 327$ 352$
Tax increments 26 26 42 71 24 29
Franchise and other taxes 35 43 45 7 13 11
Special assessments 59 44 59 92 37 31
Licenses and permits 35 33 42 53 60 72
Intergovernmental revenues 313 275 152 142 40 211
Charges for services 110 92 103 50 58 59
Other 91 57 54 71 40 45
Total revenue 1,129$ 1,002$ 952$ 811$ 599$ 810$
City of Arden Hills
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
State-Wide
December 31, 2016
The City’s governmental funds have generated significantly less revenue per capita in total than other
Minnesota cities in its population class. A city’s stage of development, along with the way a city finances
various capital projects, will impact the mix of revenue sources it receives.
The City generated $8,155,546 of total revenue in its governmental funds in 2017, an increase of
$2,175,696 (36.4 percent) from the prior year. The City’s per capita governmental fund revenues for 2017
were $810, an increase of $211 (35.2 percent) per capita from the prior year. Intergovernmental revenues
increased $171 per capita, due to a one-time reimbursement from the county for its share of a joint street
project, as previously discussed. Property tax revenues increased $25 per capita, due to the increased
general property tax levy.
-8-
GOVERNMENTAL FUND EXPENDITURES
The expenditures of governmental funds will also vary from state -wide averages and from year-to-year,
based on the City’s circumstances. Expenditures are classified into three types as follows:
• Current – These are typically the general operating type expenditures occurring on an annual
basis, and are primarily funded by general sources such as taxes and intergovernmental revenues.
• Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more
typically fluctuating significantly from year-to-year. Many of these expenditures are
project-oriented, and are often funded by specific sources that have benefited from the
expenditure, such as special assessment improvement projects.
• Debt Service – Although the expenditures for debt service may be relatively consistent over the
term of the respective debt, the funding source is the important factor. Some debt may be repaid
through specific sources such as special assessments or redevelopment funding, while other debt
may be repaid with general property taxes.
The City’s expenditures per capita of its governmental funds for the past three years, together with
state-wide averages, are presented in the following table:
Year 2015 2016 2017
Population 2,500–10,000 10,000–20,000 20,000–100,000 9,847 9,966 10,066
Current
145$ 114$ 97$ 116$ 120$ 118$
263 250 273 195 199 204
126 123 95 34 48 44
93 109 95 58 62 61
74 77 91 25 23 26
701 673 651 428 452 453
Capital outlay
and construction 381 370 301 686 99 117
Debt service
196 163 115 28 – –
48 38 34 – – –
244 201 149 28 – –
Total expenditures 1,326$ 1,244$ 1,101$ 1,142$ 551$ 570$
Interest and fiscal
General government
Public safety
Public works
Parks and recreation
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
City of Arden HillsState-Wide
All other
Principal
December 31, 2016
Total expenditures in the City’s governmental funds for 2017 were $5,754,643, an increase of $261,165
(4.8 percent). The City’s per capita governmental funds current expenditures for 2017 were $453,
consistent with the $452 per capita in the prior year.
Capital outlay and construction increased by $18 per capita, with increased activity in the City’s
Equipment, Building, and Replacement Fund.
-9-
GENERAL FUND
The City’s General Fund accounts for the financial activity of the basic services provided to the
community. The primary services included within this fund are the administration of the municipal
operation, police and fire protection, building inspection, street maintenance, and parks and recreation.
The graph below illustrates the change in the General Fund financial position over the last five years. We
have also included a line representing annual expenditures and transfers out to reflect the change in the
size of the General Fund operation over the same period.
2013 2014 2015 2016 2017
Fund Bal $2,365,706 $2,345,942 $3,082,410 $2,944,813 $3,639,317
Cash Bal $2,960,646 $2,734,366 $3,752,294 $3,506,967 $3,906,088
Exp & Trans Out $4,086,640 $4,324,507 $3,926,100 $4,940,586 $4,536,636
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
General Fund Financial Position
Year Ended December 31,
The City’s General Fund cash and investments balance at December 31, 2017 was $3,906,088 (net of
borrowing), an increase of $399,121 from the previous year. Total fund balance at December 31, 2017
was $3,639,317, an increase of $694,504 from the prior year. This fund balance level represents
approximately 87 percent of the City’s annual General Fund expenditures, based on 2017 expenditure
levels, which compares to a prior year fund balance level of 71 percent. The overall impact of operations
on fund balance was $890,459 better than anticipated in the final budget.
As the graph illustrates, the City has generally been able to maintain stable cash and fund balance levels
as the volume of financial activity has fluctuated. This is an important factor because a government, like
any organization, requires a certain amount of equity to operate. A healthy financial position allows the
City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the
adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in determining
the City’s bond rating and resulting interest costs. Maintaining an adequate fund balance has become
increasingly important given the fluctuations in state funding for cities in recent years.
A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the
unusual cash flow experienced throughout the year. The City’s General Fund cash disbursements are
made fairly evenly during the year other than the impact of seasonal services, such as snowplowing, street
maintenance, and park activities. Cash receipts of the General Fund are quite a different story. Property
taxes comprise approximately 68 percent of the fund’s total annual revenue. Approximately half of these
revenues are received by the City in July and the rest in December. Consequently, the City needs to have
adequate cash reserves to finance its everyday operations between these payments.
-10-
GENERAL FUND REVENUES
The following graph reflects the City’s General Fund revenues, budget and actual, for 2017:
Other
Charges for Services
Intergovernmental
Licenses and Permits
Taxes
General Fund Revenue
Budget to Actual
Budget Actual
Total General Fund revenues for 2017 were $5,231,140, which was $370,843 (7.6 percent) over the final
budget. Licenses and permits ($381,867) and charges for services ($167,276) were over budget, related to
increased development, building activity, and conservative budgeting for these sources. Taxes were
$129,685 below anticipated levels, due to abatements and lower collection rates than expected.
The following graph presents the City’s General Fund revenues by source for the last five years. The
graph reflects the City’s reliance on property taxes and other local sources of revenue:
Taxes Licenses and
Permits Intergovernmental
Charges for
Services Other
2013 $3,086,064 $382,039 $120,811 $410,995 $101,518
2014 $3,210,025 $327,727 $136,249 $400,224 $230,518
2015 $3,203,004 $518,846 $130,023 $496,908 $313,787
2016 $3,260,537 $598,686 $131,914 $577,041 $234,811
2017 $3,541,705 $729,197 $151,425 $590,141 $218,672
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
General Fund Revenue by Source
Year Ended December 31,
Total General Fund revenues for 2017 were $428,151 (8.9 percent) more than prior year. Property tax
revenue increased $281,168, due to the increased levy in the current year. Licenses and permits and
charges for services increased $130,511 and $13,100, respectively, due to greater levels of building
activity.
-11-
GENERAL FUND EXPENDITURES
The following graph reflects the City’s General Fund expenditures, budget and actual, for 2017:
Parks and Recreation
Public Works
Public Safety
General Government
General Fund Expenditures
Budget Actual
Total General Fund expenditures for 2017 were $4,196,636, which was $519,616 (11.0 percent) under the
final budget. As presented in the budgetary comparison schedule (within the City’s CAFR), expenditure
variances were both favorable and unfavorable within the various functions and departments while
overall, they remained within total appropriations approved by the City Council. The general government
function was $262,992 under budget, mainly in planning and zoning ($129,359) and TCAAP ($88,272)
within personal services. The parks and recreation function was under budget by $119,165, mainly in
personal services. Public works was under budget by $95,116.
The following graph presents the City’s General Fund expenditures by function for the last five years:
General
Government Public Safety Public Works Parks and
Recreation
2013 $970,307 $1,779,549 $391,711 $675,073
2014 $1,056,906 $1,826,098 $580,872 $648,214
2015 $1,015,835 $1,920,280 $336,398 $573,587
2016 $1,082,313 $1,981,506 $479,814 $621,832
2017 $1,076,352 $2,058,037 $443,633 $618,614
$–
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
General Fund Expenditures by Function
Year Ended December 31,
Overall, General Fund expenditures increased $31,171 (0.7 percent) from the prior year. The largest
increase was in public safety ($76,531) offset by a decrease in public works ($36,181).
-12-
ENTERPRISE FUNDS OVERVIEW
The City maintains enterprise funds to account for services the City provides that are financed primarily
through fees charged to those utilizing the service. This section of the report provides you with an
overview of the financial trends and activities of the City’s enterprise funds, which include the Water,
Sewer, Surface Water Management, and Recycling Funds.
The utility funds comprise a considerable portion of the City’s activities. These funds help to defray
overhead and administrative costs and provide additional support to general government operations by
way of annual transfers. We understand that the City is proactive in reviewing these activities on an
ongoing basis and we want to reiterate the importance of continually monitoring these operations. Over
the years, we have emphasized to our city clients the importance of these utility operations being
self-sustaining, preventing additional burdens on general government funds. This would include the
accumulation of net assets for future capital improvements and to provide a cushion in the event of a
negative trend in operations.
ENTERPRISE FUNDS FINANCIAL POSITION
The following table summarizes the changes in the financial position of the City’s enterprise funds during
the year ended December 31, 2017, presented both by classification and by fund:
Increase
2017 2016 (Decrease)
Net position of enterprise funds
Total by classification
Investment in capital assets 16,292,000$ 16,306,381$ (14,381)$
Unrestricted 1,298,744 1,116,957 181,787
Total enterprise funds 17,590,744$ 17,423,338$ 167,406$
Total by fund
Water 7,519,127$ 7,597,937$ (78,810)$
Sewer 5,765,055 5,845,684 (80,629)
Surface Water Management 4,175,003 3,877,304 297,699
Nonmajor Recycling 131,559 102,413 29,146
Total enterprise funds 17,590,744$ 17,423,338$ 167,406$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
In total, the net position of the City’s enterprise funds increased by $167,406 during the year ended
December 31, 2017. This increase was mainly in unrestricted net position, which increased $181,787, due
to positive operating results in the enterprise funds.
-13-
WATER FUND
The following graph presents five years of operating results for the Water Fund:
2013 2014 2015 2016 2017
Oper Rev $2,271,072 $2,132,191 $2,099,242 $2,165,773 $2,127,452
Oper Exp, Excl Dep $1,679,255 $1,711,191 $1,579,215 $1,601,171 $1,921,138
Oper Inc Before Dep $591,817 $421,000 $520,027 $564,602 $206,314
$–
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
$2,400,000
Water Fund
Year Ended December 31,
The Water Fund ended 2017 with a net position of $7,519,127, a decrease of $78,810 from the prior year.
Of total net position, $6,719,621 represents the investment in capital assets, leaving $799,506 of
unrestricted net position.
Water Fund operating revenues were $2,127,452 for 2017, a decrease of $38,321. Operating expenses
(excluding depreciation of $238,736) were $1,921,138, which represents an increase of $319,967.
Expenses were up largely due to an increase in other services and charges and additional supplies and
maintenance.
Consumption will fluctuate from year-to-year based on many factors, including weather patterns and
number of utility customers.
-14-
SEWER FUND
The following graph presents five years of operating results for the Sewer Fund:
2013 2014 2015 2016 2017
Oper Rev $1,798,889 $1,857,272 $1,855,802 $1,989,066 $1,796,144
Oper Exp, Excl Dep $1,434,271 $1,367,820 $1,438,589 $1,362,274 $1,615,427
Oper Inc Before Dep $364,618 $489,452 $417,213 $626,792 $180,717
$–
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Sewer Fund
Year Ended December 31,
The Sewer Fund ended 2017 with a net position of $5,765,055, a decrease of $80,629 from the prior year.
Of total net position, $5,859,306 represents the investment in capital assets, leaving a deficit $94,251 of
unrestricted net position.
Sewer Fund operating revenues for 2017 were $1,796,144, a decrease of $192,922 compared to last year.
Operating expenses for 2017 (excluding depreciation of $164,833) were $1,615,427, an increase of
$253,153 from the prior year, with increases in sewer charges and other services and charges.
-15-
SURFACE WATER MANAGEMENT FUND
The following graph presents five years of operating results for the Surface Water Management Fund:
2013 2014 2015 2016 2017
Oper Rev $639,747 $762,884 $782,501 $812,044 $834,973
Oper Exp, Excl Dep $397,240 $370,747 $416,945 $390,935 $395,715
Oper Inc Before Dep $242,507 $392,137 $365,556 $421,109 $439,258
$–
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Surface Water Management Fund
Year Ended December 31,
The Surface Water Management Fund ended 2017 with a net position of $4,175,003, an increase of
$297,699 from the prior year. Of this, $3,713,073 represents the investment in capital assets, leaving
$461,930 of unrestricted net position.
Surface Water Management Fund operating revenues for 2017 were $834,973, an increase of $22,929
from last year. Operating expenses for 2017 (excluding depreciation of $85,311) were $395,715, or
$4,780, more than the prior year.
-16-
RECYCLING FUND
The following graph presents five years of operating results for the Recycling Fund:
2013 2014 2015 2016 2017
Oper Rev $122,666 $130,369 $129,030 $134,739 $151,272
Oper Exp $144,541 $150,417 $239,727 $141,190 $147,919
Oper Inc (Loss)$(21,875)$(20,048)$(110,697)$(6,451)$3,353
$(125,000)
$(75,000)
$(25,000)
$25,000
$75,000
$125,000
$175,000
$225,000
$275,000
Recycling Fund
Year Ended December 31,
The Recycling Fund ended 2017 with an unrestricted net position of $131,559, an increase of $29,146
from the prior year.
Recycling Fund operating revenues for 2017 were $151,272, an increase of $16,533 from the prior year.
Operating expenses for 2017 were $147,919, an increase of $6,729 from the prior year.
The Recycling Fund also received $24,441 of nonoperating intergovernmental revenues that are available
for the operation of the City’s Recycling Program.
In 2015, intergovernmental revenues included $100,000 received from Ramsey County as a grant to
upgrade city residents’ recycling receptacles. This intergovernmental revenue is not reflected in the graph
above; however, the expenses related to this grant are included in the operating results prese nted by the
graph above. This one-time grant accounts for the increase in operating expenses in the 2015 fiscal year.
-17-
GOVERNMENT-WIDE FINANCIAL STATEMENTS
In addition to fund-based information, the current reporting model for governmental entities also requires
the inclusion of two government -wide financial statements designed to present a clear picture of the City
as a single, unified entity. These government-wide financial statements provide information on the total
cost of delivering services, including capital assets and long-term liabilities.
STATEMENT OF NET POSITION
The Statement of Net Position essentially tells you what your city owns and owes at a given point in time,
the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
use for providing services after its debts are settled. However, those resources are not always in spendable
form, or there may be restrictions on how some of those resources can be used. Therefore, net position is
divided into three components: investment in capital assets, restricted, and unrestricted.
The following table presents the components of the City’s net position as of December 31, 2017 and 2016
for governmental activities and business-type activities (utility fund operations):
Increase
2017 2016 (Decrease)
Net position
Governmental activities
Investment in capital assets 22,750,377$ 25,178,721$ (2,428,344)$
Restricted 898,739 786,678 112,061
Unrestricted 10,678,219 8,249,560 2,428,659
Total governmental activities 34,327,335 34,214,959 112,376
Business-type activities
Investment in capital assets 16,292,000 16,306,381 (14,381)
Unrestricted 1,298,744 1,116,957 181,787
Total business-type activities 17,590,744 17,423,338 167,406
Total net position 51,918,079$ 51,638,297$ 279,782$
As of December 31,
Net position for governmental activities increased by $112,376 in 2017, as presented above. The
investment in capital assets decreased $2,428,344 this year, mainly due to the contribution of capital
assets to the county for a multi-year street project accumulated by the City. The remaining change in this
category of net position typically depends on the relationship of the rate at which the City is adding
capital assets, the rate capital assets are being depreciated, and how the City finances the purchase and
construction of capital assets. The restricted portion of net position increased $112,061, due to increases
in amounts restricted for tax increment purposes and cable television. The increase in unrestricted net
position is due to positive operating results in the current year.
The change in net position for business-type activities is consistent with our earlier discussion for the
utility operations, which are presented under the same, full accrual, basis of accounting.
-18-
STATEMENT OF ACTIVITIES
The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other
transactions that increase or reduce total net position. These amounts represent the full cost of providing
services. The Statement of Activities provides a more comprehensive measure than just the amount of
cash that changed hands, as reflected in the fund-based financial statements. This statement includes the
cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses.
The following table presents the change in the net position of the City for t he years ended December 31,
2017 and 2016:
2016
Program
Expenses Revenues Net Change Net Change
Governmental activities
1,322,106$ 451,414$ (870,692)$ (943,475)$
2,158,835 1,034,424 (1,124,411) (1,212,122)
3,512,218 2,190,730 (1,321,488) (276,443)
759,737 164,228 (595,509) (607,355)
276,841 – (276,841) (361,029)
Business-type activities
2,159,874 2,127,525 (32,349) 333,289
1,780,260 1,796,228 15,968 536,225
481,026 835,030 354,004 343,849
147,919 175,713 27,794 16,988
Total net (expense) revenue 12,598,816$ 8,775,292$ (3,823,524) (2,170,073)
General revenues
Property taxes 3,526,347 3,278,287
Tax increment collections 295,788 242,544
Franchise taxes 109,070 132,548
Unrestricted investment earnings 172,101 173,026
Total general revenues 4,103,306 3,826,405
Change in net position 279,782$ 1,656,332$
2017
Net (expense) revenue
General government
Public safety
Parks and recreation
Public works
Water
Recycling
Economic development
Sewer
Surface water management
One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the
way the City’s governmental and business-type operations are financed. The table clearly illustrates the
dependence of the City’s governmental operations on general revenues, such as property taxes and
unrestricted investment earnings. It also shows that, for the most part, the City’s business-type activities
are generating sufficient program revenues (service charges and program-specific grants) to cover
expenses. This is critical given the current downward pressures on the general revenue sources.
-19-
LEGISLATIVE UPDATES
The 2017 legislative session began with a full agenda, which included adopting a fiscal year 2018–2019
biennial state budget. The February 2017, state budget forecast projected that the state General Fund
would end the 2016–2017 biennium with a surplus of $743 million, eliminating the need for budget cuts
or transfers to balance the fund. However, the Legislature was expected to address several significant
spending areas for which successful funding appropriations had not been passed in recent legislative
sessions. The 2017 regular legislative session ended with four omnibus budget bills being vetoed,
potentially leaving a number of these same areas without appropriations. After a three-day special session,
the Governor and Legislature were able to agree on budget and appropriation bills addressing most of the
state budgetary needs for the upcoming biennium, albeit not without several line item vetoes invoked by
the Governor, including striking the appropriations for operating the House and Senate from the bills.
The following is a summary of recent legislation affecting Minnesota cities:
Omnibus Bonding Bill – The omnibus bonding bill authorizes financing for approximately $1.1 billion
in capital improvements. Included in the approved funding was $255 million for transportation
infrastructure, $83 million for economic development, $116 million for Public Financing Agency water
infrastructure loans and grants to municipalities, and $4 million for Metropolitan Council inflow and
infiltration improvement grants to metro area cities.
Omnibus Transportation Bill – The omnibus transportation bill appropriates $2.95 billion in fiscal 2018
and $2.87 billion in fiscal 2019, for a wide variety of transportation related projects. Included in the
appropriations are approximately $191 million and $198 million for municipal state aid street fund
purposes in fiscal 2018 and fiscal 2019, respectively.
Property Tax Relief – The omnibus tax bill contained a number of property tax relief measures,
including:
• Elimination of the implicit price deflator annual increase for the state general property tax
levy, effectively freezing it at the payable 2018 level for many property classes;
• Exempting the first $100,000 of each commercial-industrial parcel’s tax capacity from the
state general property tax levy;
• Expanding eligibility for homestead or agricultural property classification exemptions for
certain types of resort and conservation property for general property taxes; and
• Increasing the minimum value for a storage shed, deck, or similar structure on a leased
mobile home to be considered taxable from $1,000 to $10,000.
Local Government Aid – The annual appropriation for Local Government Aid (LGA) for cities was
increased $15.0 million to $534.4 million for aid payable in 2018 and thereafter, and the LGA payment
schedule was accelerated for fiscal 2019 only. Several corrections were also made to the city LGA
formula calculation, and a sparsity adjustment was incorporated for certain medium and small cities
beginning in 2018.
Minnesota Investment Fund – The omnibus jobs and economic growth bill appropriates $12.5 million
for each year of the biennium for the Minnesota Investment Fund, which is available for municipalities to
provide loans to assist with the expansion of local businesses.
Electronic Funds Transfers – Effective August 1, 2017, home rule charter cities of the second, third, or
fourth class are added to the list of local government entities allowed to pay certai n claims using
electronic funds transfers. To be eligible, local governments must enact specified policy controls
governing the initiation, authorization, and documentation of electronic funds transfers.
Claims Declaration – The requirement to obtain a specific form of written claim declaration was also
repealed based on the understanding that by making the claim, the party making the claim is declaring
that the claim is just and correct and has not been paid previously.
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City E-mail Address Required to Receive State Aid – Effective for state aids payable in 2018 and
thereafter, cities will be required to register an official e-mail address with the Commissioner of the state
Department of Revenue in order to receive state aid payments.
Workforce Housing Tax Increment Financing – The omnibus tax bill created a new authorized use of
tax increment financing (TIF), for workforce housing in cities located outside of the statutorily defined
metropolitan area that meet certain criteria.
Tax Increment Financing Interfund Loans – Interfund loan provisions for TIF were amended to make
it easier for cities and development authorities to make and document interfund loans. Loans may now be
made or documented up to 60 days after the actual transfer or expenditure occurs. Interfund loan
resolutions may now be passed prior to the final approval of the related TIF plan. Loan terms may be
amended after the loan has been made if the TIF district has not been decertified.
Public Debt – The Legislature passed several amendments to statutes governing public debt that took
effect on July 1, 2017, including:
• Allowing both home rule charter and statutory cities to issue 20-year capital notes for projects
to eliminate R-22 Freon-based refrigerant;
• Increasing the maximum dollar limit on Housing and Redevelopment Authority general
obligation bond issues from $3 million to $5 million; and
• Modifying the requirements for street reconstruction bonds to be approved by a two -thirds
majority of the governing body rather than requiring unanimous approval.
Local Housing Trust Funds – The omnibus jobs and economic growth appropriations bill established
authority for cities to create a local housing trust fund by ordinance, or to participate in a joint powers
agreement to establish a regional housing trust fund. The funds, which may be financed from sources such
as local government appropriations or housing and redevelopment authority levies, may be used for grants
or loans for development, rehabilitation, financing of housing to match federal or state or private funds for
housing, down payment assistance, rental assistance, or homebuyer counseling.
Long-Term Equity Investment Authority – Effective July 1, 2017, cities with a population of more
than 100,000 or those that had their most recently issued general obligation bonds rated in the highest
category, are authorized to invest in an expanded list of authorized investments that includes certain
equity-based investments. The amount invested in equity-based investments cannot exceed 15 percent of
the sum of a city’s assigned cash, cash equivalents, deposits, and investments. Before investing in the
expanded list of authorized investments, the governing body of the municipality must adopt a resolution
acknowledging the risks assumed.
Border-to-Border Broadband Grants – The Legislature appropriated $20 million in fiscal 2018 for the
Border-to-Border Broadband Grant Program. The grants, available through the Office of Broadband
Development in the Department of Employment and Economic Development, provide funding to help
communities meet state goals for the development of state-wide, high-speed broadband access, focusing
on areas currently considered to be underserved or with a high concentration of low-income households.
Elections – An omnibus elections law was passed making several modifications to election
administration, including: requiring special elections conducted by local governments be held on one of
five uniform election dates, clarifying the timeline for municipalities to change from o dd to even-year
election cycles or vise-versa, allowing municipalities to canvass the results of a primary election on the
second or third day after the primary, and appropriating $7 million for grants to replace aging election
equipment or purchase electronic poll books.
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Workers’ Compensation and PERA Retirement Benefits – A statutory change was adopted based on
the results of recent court rulings that Public Employees Retirement Association (PERA) retirement
benefits should not be offset against workers’ compensation permanent total disability benefits. Under the
new law, claimants would receive all past and future permanent and total disability benefits without a
PERA retirement offset.
Notice of Proposed Ordinances – A new statute was created requiring cities to provide a 10-day notice
prior to a scheduled final vote on most new proposed ordinances or amendments to ordinances, and
specifying the various acceptable means of providing the required notification.
State Building Code Applicability – Construction, additions, and alterations to places of public
accommodation; defined as publicly or privately-owned facilities designed for occupancy by 200 or more
people as a sports or entertainment arena, stadium, theater, community or convention hall, special event
center, indoor amusement facility or water park, or indoor swimming pool; must comply with the state
building code.
Sunday Liquor Sales – Minnesota Statutes were amended to allow for the sale of intoxicating liquor on
Sundays between the hours of 11:00 a.m. and 6:00 p.m. by off-sale licensees, effective July 1, 2017.
REAL ID Act – Minnesota Statutes were amended to make the state compliant with federal REAL ID
Act requirements, which will change identity verification and security related to state-issued identification
cards and driver’s licenses.
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ACCOUNTING AND AUDITING UPDATES
GASB STATEMENT NO. 75, ACCOUNTING AND FINANCIAL REPORTING FOR POSTEMPLOYMENT
BENEFITS OTHER THAN PENSIONS
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions, establishes new accounting and financial reporting requirements for governments whose
employees are provided with other post-employment benefits (OPEB), as well as for certain nonemployer
governments that have a legal obligation to provide financial support for OPEB provided to the
employees of other entities. This statement replaces the requirements of GASB Statement Nos. 45 and 57.
This statement establishes standards for recognizing and measuring liabilities, deferred outflows of
resources, deferred inflows of resources, and expense/expenditures. Similar to changes implemented for
pensions, this statement requires the liability of employer and nonemployer contributing entities to
employees for defined benefit OPEB (net OPEB liability) to be measured as the portion of the present
value of projected benefit payments to be provided to current active and inactive employees that is
attributed to those employees’ past periods of service (total OPEB liability), less th e amount of the OPEB
plan’s fiduciary net position. Note disclosure and RSI requirements about defined benefit OPEB also are
addressed.
The requirements for this statement are effective for fiscal years beginning after June 15, 2017. Earlier
application is encouraged.
GASB STATEMENT NO. 83, CERTAIN ASSET RETIREMENT OBLIGATIONS
This statement addresses accounting and financial reporting for certain asset retirement obligations
(ARO), which are legally enforceable liabilities associated with the retirement of a tangible capital asset.
This statement establishes criteria for determining the timing and pattern of recognition of a liability and a
corresponding deferred outflow of resources for ARO. A government that has legal obligations to perform
future asset retirement activities related to its tangible capital assets should recognize a liability when it is
both incurred and reasonably estimable. The measurement of an ARO is required to be based on the best
estimate of the current value of outlays expected to be incurred, and a deferred outflow of resources
associated with an ARO is required to be measured at the amount of the corresponding liability upon
initial measurement.
This statement requires the current value of a government’s AROs to be adjusted for the effects of general
inflation or deflation at least annually, and a government to evaluate all relevant factors at least annually
to determine whether the effects of one or more of the factors are expected to significantly change the
estimated asset retirement outlays. A government should remeasure an ARO only when the result of the
evaluation indicates there is a significant change in the estimated outlays. Deferred outflows of resources
should be reduced and recognized as outflows of resources in a systematic and rational manner over the
estimated useful life of the tangible capital asset.
If a government owns a minority interest in a jointly owned tangible asset where a nongovernmental
entity is the majority owner or has operational responsibility for the jointly owned asset, the government’s
minority share of an ARO should be reported using the measurement produced by the nongovernmental
majority owner or the nongovernmental minority owner that has operational responsibility, without
adjustment to conform to the liability measurement and recognition requirements of this statement.
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The statement also requires disclosures of any funding or financial assurance requirements a government
has related to the performance of asset retirement activities, along with any assets restricted for the
payment of the government’s AROs. This statement also requires disclosure of information about the
nature of a government’s AROs, the methods and assumptions used for the estimates of the liabilities, and
the estimated remaining useful life of the associated tangible capital assets. If an ARO (or portions
thereof) has been incurred by a government but is not yet recognized because it is not reasonably
estimable, the government is required to disclose that fact and the reasons therefor. This statement
requires similar disclosures for a government’s minority shares of AROs.
The requirements of this statement are effective for reporting periods beginning after June 15, 2018.
Earlier application is encouraged.
GASB STATEMENT NO. 84, FIDUCIARY ACTIVITIES
This statement establishes criteria for identifying fiduciary activities of all state and local governments.
The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary
activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included
to identify fiduciary component units and post-employment benefit arrangements that are fiduciary
activities.
An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements,
which should present a statement of fiduciary net position and a statement of changes in fiduciary net
position. This statement describes four fiduciary funds that should be reported, if applicable: (1) pension
(and other employee benefit) trust funds, (2) investment trust funds, (3) private -purpose trust funds, and
(4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust
or equivalent arrangement that meets specific criteria.
A fiduciary component unit, when reported in the fiduciary fund financial statements of a primary
government, should combine its information with its component units that are fiduciary component units
and aggregate that combined information with the primary government’s fiduciary funds.
This statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when an
event has occurred that compels the government to disburse fiduciary resources, defined as when a
demand for the resources has been made or when no further action, approval, or condition is required to
be taken or met by the beneficiary to release the assets.
The requirements of this statement are effective for reporting periods beginning after December 15, 2018.
Earlier application is encouraged.
GASB STATEMENT NO. 85, OMNIBUS 2017
The objective of this statement is to address issues that have been identified during implementation and
application of certain GASB statements. The statement addresses a variety of topics, including issues
related to blending component units, goodwill, fair value measurement and application, and
post-employment benefits (pensions and OPEB). The statement is meant to enhance consistency in the
application of recent accounting and financial reporting standards. The requirements of this statement are
effective for reporting periods beginning after June 15, 2017.
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GASB STATEMENT NO. 86, CERTAIN DEBT EXTINGUISHMENT ISSUES
Current GASB guidance requires that debt be considered defeased in substance when the debtor
irrevocably places cash or other monetary assets acquired with refunding debt proceeds in a trust to be
used solely for satisfying scheduled payments of both principal and interest of the defeas ed debt. This
new standard establishes essentially the same requirements for when a government places cash and other
monetary assets acquired with only existing resources in an irrevocable trust to extinguish the debt.
The primary objective of this statement is to improve consistency in accounting and financial reporting
for in-substance defeasance of debt by providing guidance for transactions in which cash and other
monetary assets acquired with only existing resources—resources other than the proceeds of refunding
debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This statement also
improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes
to financial statements for debt that is defeased in substance. The requirements of this statement are
effective for reporting periods beginning after June 15, 2017.
GASB STATEMENT NO. 87, LEASES
A lease is a contract that transfers control of the right to use another entity’s nonfinanci al asset as
specified in the contract for a period of time in an exchange or exchange -like transaction. Examples of
nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this
definition should be accounted for under the leases guidance, unless specifically excluded in this
statement.
Governments enter into leases for many types of assets. Under the previous guidance, leases were
classified as either capital or operating depending on whether the lease met any of four tests. In many
cases, the previous guidance resulted in reporting lease transactions differently than similar nonlease
financing transactions.
The goal of this statement is to better meet the information needs of users by improving accounting and
financial reporting for leases by governments. It establishes a single model for lease accounting based on
the principle that leases are financings of the right to use an underlying asset. This statement increases the
usefulness of financial statements by requiring recognition of certain lease assets and liabilities for leases
that previously were classified as operating leases and recognized as inflows of resources or outflows of
resources based on the payment provisions of the contract.
Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease
asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby
enhancing the relevance and consistency of information about governments’ leasing activities.
To reduce the cost of implementation, this statement includes an exception for short -term leases, defined
as a lease that, at the commencement of the lease term, has a maximum possible term under the lease
contract of 12 months (or less), including any options to extend, regardless of their probability of being
exercised. Lessees and lessors should recognize short-term lease payments as outflows of resources or
inflows of resources, respectively, based on the payment provisions of the lease contract. The
requirements of this statement are effective for reporting periods beginning after December 15, 2019.
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CITY OF ARDEN HILLS
RAMSEY COUNTY, MINNESOTA
Comprehensive Annual Financial Report
Year Ended
December 31, 2017
FINANCE DEPARTMENT
Page
Letter of Transmittal i–iv
GFOA Certificate of Achievement v
City Council and Appointed Officials vi
Organization Chart vii
INDEPENDENT AUDITOR’S REPORT 1–3
MANAGEMENT’S DISCUSSION AND ANALYSIS 4–13
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 14
Statement of Activities 15–16
Fund Financial Statements
Governmental Funds
Balance Sheet 17–18
Statement of Revenues, Expenditures, and Changes in Fund Balances 19–20
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities 21
Proprietary Funds
Statement of Net Position 22
Statement of Revenues, Expenses, and Changes in Net Position 23
Statement of Cash Flows 24
Notes to Basic Financial Statements 25–46
REQUIRED SUPPLEMENTARY INFORMATION
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 47
Schedule of City Contributions 47
Budgetary Comparison Schedule
General Fund 48–50
EDA Operating Fund 51
Notes to Required Supplementary Information 52–53
SUPPLEMENTAL INFORMATION
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 54
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 55
INTRODUCTORY SECTION
FINANCIAL SECTION
CITY OF ARDEN HILLS
Table of Contents
RAMSEY COUNTY, MINNESOTA
Page
SUPPLEMENTAL INFORMATION (CONTINUED)
Combining and Individual Fund Statements and Schedules (continued)
Nonmajor Special Revenue Funds
Subcombining Balance Sheet 56
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 57
Nonmajor Capital Project Funds
Subcombining Balance Sheet 58
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances 59
Special Revenue Funds
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual
Cable Fund 60
EDA Revolving Fund 61
EDA TIF District No. 3 Fund 62
EDA TIF District No. 4 Fund 63
Internal Service Funds
Combining Statement of Net Position 64
Combining Statement of Revenues, Expenses, and Changes in Net Position 65
Combining Statement of Cash Flows 66
Net Position by Component 67–68
Changes in Net Position 69–72
Governmental Activities Tax Revenues by Source 73
Fund Balances of Governmental Funds 74–75
Changes in Fund Balances of Governmental Funds 76–77
General Governmental Tax Revenues by Source 78
Tax Capacity Value and Estimated Market Value of Taxable Property 79–80
Property Tax Rates – Direct and Overlapping Governments 81
Principal Property Taxpayers 82
Property Tax Levies and Collections 83
Ratios of Outstanding Debt by Type 84
Direct and Overlapping Governmental Activities Debt 85
Legal Debt Margin Information 86–87
Demographic and Economic Statistics 88
Principal Employers 89
Operating Indicators by Function 90–91
Full-Time Equivalent City Government Employees by Function 92–93
Capital Asset Statistics by Function 94–95
STATISTICAL SECTION (UNAUDITED)
CITY OF ARDEN HILLS
Table of Contents (continued)
RAMSEY COUNTY, MINNESOTA
INTRODUCTORY SECTION
TAB
June 7, 2018
To the Honorable Mayor,
Members of the City Council,
and Citizens of the City of Arden Hills, Minnesota
State law requires that every general purpose local government publish a complete set of audited financial
statements. This report is published to fulfill that requirement for the fiscal year ended December 31,
2017.
Management assumes full responsibility for the completeness and reliability of the information contained
in this report, based upon a comprehensive framework of internal control that it has established for this
purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to
provide reasonable, rather than absolute assurance that the financial statements are free of any material
misstatements.
Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR), Certified Public Accountants, have
issued an unmodified (“clean”) opinion on the City of Arden Hills, Minnesota’s (the City) financial
statements for the year ended December 31, 2017. The independent auditor’s report is located at the front
of the financial section of this report.
The management’s discussion and analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis of the basic financial statements . The
MD&A complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
The City, incorporated in 1951, is a northern suburb of the Minneapolis/St. Paul metropolitan area,
situated in Ramsey County. The City occupies 9.65 square miles and serves an estimated population of
10,066. The City is empowered to levy a property tax on both real and personal property located within its
boundaries.
The City operates under the “Optional Plan A” form of government as defined in Minnesota Statutes.
Under this plan, the government of the City is directed by a City Council composed of an elected mayor
and four elected councilmembers. The City Council exercises legislative authority and determines all
matters of policy. The City Council appoints personnel responsible for the proper administration of all
affairs relating to the City. Councilmembers serve four-year terms, with two members elected every
two years. The mayor is elected for a four-year term. The mayor and members of the City Council are
elected at large.
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-ii-
The City provides a full range of services: the construction and maintenance of streets and other
infrastructure; recreational and cultural activities; water, sewer, surface water management, and recycling
systems; community development, building inspection, and planning; and general government operations,
including administration, finance/accounting, information systems, community information (newsletter),
and general government buildings. The City contracts with Ramsey County for police services and
Lake Johanna Fire Department for fire services.
The City Council is required to adopt a final budget by late December for the subsequent year. The
budget is prepared by fund, function (e.g., public safety), and department (e.g., police). Transfers of
appropriations between funds require the approval of the City Council. The legal level of budgetary
control is the fund level. Budgeted amounts may be amended by the City Council.
The City’s capital improvement program (covering five years), the pavement management plan (covering
five years), and the Twin Cities Army Ammunition Plant (TCAAP) development plan , along with the
annual budget, serve as the foundation for the City’s financial planning, and the annual budget serves as
the budget control.
LOCAL ECONOMY
A number of high-profile leaders in the medical, technology, and business sectors, including Boston
Scientific, Land O’ Lakes, IntriCon, Gradient Financial, International Paper, Delkor, and Presbyterian
Homes are located within the City. These leaders of industry provide high -paying jobs to skilled
employees, which in turn creates a strong base for economic diversity, quality housing, and an involved
citizenry.
Because of its location in a region with a varied economic base, unemployment is relatively stable .
During the past 10 years, the unemployment rate has fluctuated from a high of 7.6 percent in 2009 to the
current low of 3.3 percent. Unemployment is expected to remain at or below the regional and national
average.
During the past 10 years, property taxes have remained a stable and significant source of total General
Fund and special revenue fund revenues. Intergovernmental revenues have declined over this same time
period and now make up less than 3 percent of total revenues in the General Fund and special revenue
funds for the current fiscal year.
LONG-TERM FINANCIAL PLANNING
The unassigned General Fund balance of $3,065,250 (64.4 percent of total subsequent year General Fund
expenditures budgeted) meets the 50 percent target set by the City Council for budgetary and planning
purposes. The total General Fund balance also includes $288,519 of nonspendable equity for prepaid
items, $48,323 of assigned equity for compensated absences, and $237,225 assigned equity for
subsequent year’s budget.
The City’s five-year capital improvement program and pavement management plan serve as the
foundation for the City’s long-term financial planning. To ensure the timely replacement of infrastructure,
the City prepares long-term cost projections for the replacement of all city assets. Funding needs for
capital replacements are reflected in tax levies and special assessments for capital assets, and are reflected
in user fees established for the Water, Sewer, Surface Water Management, and Recycling Funds.
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Projections for the next 10 years indicate that property tax contributions, user fees, and investment
income will need to be reevaluated to support scheduled replacements. In 2007, the City established a
citizen committee, called the Financial Planning and Analysis Committee, to work on establishing fund
balance policies and where future tax rates should be set. A 10-year financial plan has been completed. In
2012, the City entered into a Joint Powers Agreement with Ramsey County to form a Joint Development
Authority (JDA) to acquire and develop a portion of the Army property, formerly known as TCAAP. The
county officially acquired this property April 15, 2013 and has cleaned it to residential standards. This
development is expected to add to the City’s tax base and includes commercial/industrial, residential, and
civic uses. The site is approximately 430 acres.
RELEVANT FINANCIAL POLICIES
Trends of the past decade, changes in state tax law, and recent legislation indicate that the City will have a
greater reliance on property taxes as a source of financing for city operations in the future and less
reliance on intergovernmental revenues (federal and state). Changes in state tax law over the past few
years have resulted in funding changes for both schools and local governments. The elimination of the
homestead and agricultural credit aids program, and large cuts in both local government aid and the
market value homestead credit programs resulted in revenue losses to the City. In addition, as the TCAAP
project progresses the City can expect to see an increase in building permit revenues in the next few
years.
MAJOR INITIATIVES
As previously mentioned, the development of the TCAAP property is a major project for the City. This
project also drives transportation issues as the site will increase traffic flows and require access.
Currently, the City has U.S. Highway 10, Interstate Highway 694, and Ramsey County 96 as major
corridors running through the City. All of these highways border the TCAAP property and present
transportation issues within the City; the City has a vested interest in improvements to these corridors and
is working cooperatively with the state, county, and federal transportation authorities and legislators.
ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report (CAFR) for
the fiscal year ended December 31, 2016. This is the eleventh year that the City has received this
prestigious award. In order to be awarded a Certificate of Achievement, the City had to publis h an easily
readable and efficiently organized CAFR that satisfied both accounting principles generally accepted in
the United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the
GFOA to determine its eligibility for another certificate.
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The preparation of this report would not have been possible without the efficient and dedicated service of
the entire staff of the finance department, and through the helpful guidance and assistance from our
auditing firm, MMKR. We wish to express our appreciation to all members of the department who
assisted and contributed to the preparation of this report. Credit also must be given to the mayor, City
Council, and city administrator for their unfailing support in maintaining the highest standards of
professionalism in the management of the City’s finances.
Respectfully submitted,
Dave Perrault
City Administrator
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Term Expires
David Grant Mayor December 31, 2018
Brenda Holden Councilmember December 31, 2020
Fran Holmes Councilmember December 31, 2018
Dave McClung Councilmember December 31, 2020
Steve Scott Councilmember December 31, 2018
William Joynes Interim City Administrator
Dave Perrault Interim Director of Finance and
Administrative Services/Treasurer
Julie Hanson City Clerk
Joel Jamnik City Attorney
CITY COUNCIL
APPOINTED OFFICIALS
CITY OF ARDEN HILLS
RAMSEY COUNTY, MINNESOTA
City Council and Appointed Officials
December 31, 2017
2017 City of Arden Hills
Organization Chart
Customer Service
Specialist
Assistant City
Engineer
Deputy Clerk Building Inspector Senior Planner
Public Works
Maintenance
Workers (8)
Public Works Director/
City Engineer
Finance Analyst City Clerk Building Official City Planner Public Works
Superintendent Recreation Coordinator
City Attorney
Ramsey County
Sheriff
Lake Johanna Fire
Department
Director of Finance and
Administrative Services
Community Development
Director
Emergency
Management
Accounting
Analyst
Accounting
Clerk
City Administrator
Public Safety
Office Support
Specialist
Communications
Coordinator -vii-
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FINANCIAL SECTION
TAB
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Arden Hills, 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 Arden Hills,
Minnesota (the City) as of and for the year ended December 31, 2017, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as list ed 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 statemen ts, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City’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 City’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 opinions.
(continued)
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OPINIONS
In our opinion, the financial statements referred to on the previous page 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 as of December 31, 2017, 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.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United Stat es of America require that the management’s
discussion and analysis and the required supplementary information (RSI), 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 RSI 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 statemen ts,
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’s basic financial statements. The introductory section, supplemental information, and
statistical section, as listed in the table of contents, are presented for purposes of additional analysis and
are not required parts of the basic financial statements.
The supplemental information is the responsibility of management and was derived from and relates
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 a ccordance with auditing
standards generally accepted in the United States of America. In our opinion, the supplemental
information is 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.
(continued)
-3-
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 7, 2018
on our consideration of the City’s internal control over financial reporting an d on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters .
The purpose of that report is 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’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’s internal control over financial reporting and compliance.
Minneapolis, Minnesota
June 7, 2018
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ARDEN HILLS
Management’s Discussion and Analysis
Year Ended December 31, 2017
-4-
As the management of the City of Arden Hills, Minnesota (the City), we offer readers of the City’s
Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial
activities of the City for the fiscal year ended December 31, 2017. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished in our letter
of transmittal, which is presented in the introductory section of this report.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the City exceeded liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $51,918,079 (net position). Of
this amount, $11,976,963 (unrestricted net position) may be used to meet the City’s ongoing
obligations to citizens and creditors.
• The City’s total net position increased by $279,782 in 2017.
• As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $10,709,962. Of this total amount, $289,183 is nonspendable and
$898,739 is restricted, leaving an unrestricted balance of $9,522,040.
• At the end of the current fiscal year, the General Fund has a total fund balance of $3,639,317. At
December 31, 2017, the unassigned fund balance of the General Fund was, $3,065,250 or
64.4 percent, of the subsequent year’s budgeted expenditures.
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 include three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
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, liabilities, and deferred
inflows/outflows of resources, with the difference 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 rep orted 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).
-5-
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 use r fees and charges (business-type
activities). The governmental activities of the City include general government, public safety, public
works, parks and recreation, and economic development. The business-type activities of the City include
water, sewer, surface water management, and recycling.
The government-wide financial statements can be found in the financial section following 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 functi ons
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental funds 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 City’s near-term financing
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 government’s near-term financing
decisions. Both the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and
Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
The City maintains four individual major governmental funds. Information is presented separately in the
governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund
Balances for the General; EDA Operating; Equipment, Building, and Replacement; and Permanent
Improvement Revolving Funds, which are considered to be major funds.
Data from all 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 combining statements
elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and special revenue funds. A
budgetary comparison schedule has been provided for these funds to demonstrate compliance with this
budget.
The basic governmental funds financial statements can be found in the financial section of this report
immediately following the government-wide financial statements.
-6-
Proprietary Funds – The City maintains two different types of proprietary funds. Proprietary funds
provide the same type of information as the government-wide financial statements, only in more detail.
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, sewer,
surface water management, and recycling operations. Water, sewer, and surface water management are
considered to be major funds of the City.
Internal service funds are an accounting device used to accumulate and allocate costs internally among
the City’s various functions. The City maintains internal service funds for risk management, engineering,
central garage, and technology. Because these services predominately benefit governmental rather than
business-type functions, they have been included within governmental activities in the government-wide
financial statements.
The proprietary funds financial statements can be found in the financial section of this report immediately
following the governmental funds statements.
Notes to Basic Financial Statements – The notes to basic financial statements 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 basic financial statements can be found following the proprietary funds
statements within the financial section of this report.
Other Information – In addition to the basic financial statements and accompanying notes, the financial
section also presents required supplementary information, and the combining and individual fund
statements and schedules (presented as supplemental information) referred to earlier in connection with
nonmajor governmental funds and internal service funds, which are presented immediately following the
basic financial statements.
Further, a statistical section has been included as part of the CAFR to facilitate additional analysis, and is
the third and final section of the report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
An analysis of the City’s financial position begins with a review of the Statement of Net Position and the
Statement of Activities. These two statements report the City’s net position and changes in net position. It
should be noted that the financial position can also be affected by nonfinancial factors, including
economic conditions, population growth, and new regulations.
As noted earlier, net position may serve over time as a useful indicator of the City’s financial position. As
presented in the following condensed version of the Statement of Net Position, the City’s assets and
deferred outflows of resources exceeded liabilities and deferred inflows of resources by $51,918,079 at
December 31, 2017.
The largest portion of the City’s net position, $39,042,377, or 75.2 percent, reflects its investment in
capital assets (e.g., land, construction in progress, buildings and structures, infrastructure and
improvements, distribution and collection systems, machinery and equipment, office furniture and
equipment, and vehicles) net of accumulated depreciation. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending.
-7-
The following table provides the City’s Summary of Net Position:
2017 2016 2017 2016 2017 2016
Assets
Current and other assets 14,155,756$ 12,385,881$ 2,312,905$ 2,290,327$ 16,468,661$ 14,676,208$
Capital assets 22,750,377 25,178,721 16,292,000 16,306,381 39,042,377 41,485,102
Total assets 36,906,133$ 37,564,602$ 18,604,905$ 18,596,708$ 55,511,038$ 56,161,310$
Deferred outflows of resources
Pension plan deferments – PERA 311,733$ 583,538$ 129,205$ 311,390$ 440,938$ 894,928$
Liabilities
Long-term liabilities
outstanding 1,020,742$ 1,454,178$ 541,973$ 830,729$ 1,562,715$ 2,284,907$
Other liabilities 1,204,043 1,763,108 387,738 539,337 1,591,781 2,302,445
Total liabilities 2,224,785$ 3,217,286$ 929,711$ 1,370,066$ 3,154,496$ 4,587,352$
Deferred inflows of resources
Pension plan deferments – PERA 353,646$ 206,006$ 213,655$ 114,694$ 567,301$ 320,700$
State aid received for subsequent years 312,100 509,889 – – 312,100 509,889
Total deferred inflows of resources 665,746$ 715,895$ 213,655$ 114,694$ 879,401$ 830,589$
Net position
Investment in capital assets 22,750,377$ 25,178,721$ 16,292,000$ 16,306,381$ 39,042,377$ 41,485,102$
Restricted 898,739 786,678 – – 898,739 786,678
Unrestricted 10,678,219 8,249,560 1,298,744 1,116,957 11,976,963 9,366,517
Total net position 34,327,335$ 34,214,959$ 17,590,744$ 17,423,338$ 51,918,079$ 51,638,297$
Summary of Net Position
as of December 31, 2017 and 2016
Table 1
Activities Activities Total
Governmental Business-Type
Restricted net position of $898,739 comprises 1.7 percent of net position at the close of the fiscal year
ended December 31, 2017. These assets are subject to external restrictions on how they may be used.
The balance of unrestricted net position, $11,976,963, or approximately 23.1 percent, may be used to
meet the City’s ongoing obligations to citizens and creditors. Certain balances within unrestricted net
position may have internally imposed commitments or limitations, which may further limit the purpose
for which such net position may be used.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of
net position, both for the government as a whole, as well as for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
Both governmental activities and business-type activities experienced changes in deferred outflows of
resources, deferred inflows of resources, and long-term liabilities as a result of the City’s participation in
a state-wide defined benefit pension plan.
-8-
The following table provides a condensed version of the Statement of Activities for the year ended
December 31, 2017 with comparative amounts for the year ended December 31, 2016:
2017 2016 2017 2016 2017 2016
Revenues
Program revenues
Charges for services 1,360,377$ 1,174,536$ 4,909,841$ 5,101,622$ 6,270,218$ 6,276,158$
Operating grants and contributions 2,031,474 308,900 24,655 26,323 2,056,129 335,223
Capital grants and contributions 448,945 462,105 – 59,248 448,945 521,353
General revenues
Property taxes 3,526,347 3,278,287 – – 3,526,347 3,278,287
Tax increment collections 295,788 242,544 – – 295,788 242,544
Franchise taxes 109,070 132,548 – – 109,070 132,548
Unrestricted investment earnings 139,347 155,191 32,754 17,835 172,101 173,026
Total revenues 7,911,348 5,754,111 4,967,250 5,205,028 12,878,598 10,959,139
Expenses
General government 1,322,106 1,384,908 – – 1,322,106 1,384,908
Public safety 2,158,835 2,047,961 – – 2,158,835 2,047,961
Public works 3,512,218 800,157 – – 3,512,218 800,157
Parks and recreation 759,737 751,910 – – 759,737 751,910
Economic development 276,841 361,029 – – 276,841 361,029
Water – – 2,159,874 1,833,468 2,159,874 1,833,468
Sewer – – 1,780,260 1,513,219 1,780,260 1,513,219
Surface water management – – 481,026 468,965 481,026 468,965
Recycling – – 147,919 141,190 147,919 141,190
Total expenses 8,029,737 5,345,965 4,569,079 3,956,842 12,598,816 9,302,807
Increase (decrease) in net position
before transfers (118,389) 408,146 398,171 1,248,186 279,782 1,656,332
Transfers 230,765 230,765 (230,765) (230,765) – –
Increase (decrease) in net position 112,376 638,911 167,406 1,017,421 279,782 1,656,332
Net position – beginning 34,214,959 33,576,048 17,423,338 16,405,917 51,638,297 49,981,965
Net position – ending 34,327,335$ 34,214,959$ 17,590,744$ 17,423,338$ 51,918,079$ 51,638,297$
Activities Activities Total
Table 2
Changes in Net Position
Years Ended December 31, 2017 and 2016
Governmental Business-Type
Governmental Activities – Current year operating results of governmental activities increased net
position by $112,376, compared to an increase of $638,911 in the prior year. Changes from the prior year
included the following:
• Operating grants and contributions were up due to a one-time reimbursement from the county for
its share of a joint street project.
• Public works spending was up in the current year, due to the contribution of capital assets to the
county for a multi-year street project accumulated by the City as part of the joint street project.
Business-Type Activities – Current year operating results of business-type activities increased net
position by $167,406, due to positive results of the utility operations of the City. Program revenues
exceeded program expenses for each of the City’s business-type activities, except water.
-9-
Below are specific graphs that provide comparisons of the governmental activities revenue and expenses:
-10-
Below are specific graphs that provide comparisons of the business-type activities revenue and expenses:
-11-
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
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, unassigned fund balance may serve as a useful measure
of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $10,709,962, an increase of $2,872,493 in comparison with the prior year. Committed,
assigned, and unassigned fund balance, which are available for spending at the government’s discretion,
have a total balance of $9,522,040 at year-end. The remainder of fund balance is nonspendable or
restricted to indicate that it is not available for new spending because it has already been obligated : 1) for
tax increment purposes ($616,829), 2) for cable TV purposes ($281,910), or 3) is not in spendable form
for prepaid items ($289,183).
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
fund balance of the General Fund was $3,065,250, while total fund balance equaled $3,639,317. As a
measure of the General Fund’s liquidity, it may be useful to compare the unassigned fund balance to
expenditures. Unassigned fund balance represents 64.4 percent of the total subsequent year General Fund
expenditures.
The City’s General Fund equity increased by $694,504 during the current fiscal year, compared to a
$195,955 decrease approved in the final budget; this was due to favorable revenue and expenditure
variances, with several departments spending less than amounts approved in the budget mainly in
personal services. Conservative budgeting for less predictable sources such as licenses and permits and
charges for services contributed to the favorable revenue variance.
Fund balance in the EDA Operating Fund increased by $19,411, which compares to an anticipated fund
balance reduction of $83,599. Tax increment collections and earnings on investments were $3,709 more
than expected in the final budget, while expenditures were $99,301 below appropriations.
Equity in the Equipment, Building, and Replacement Fund decreased by $222,167 as expenditures
exceeded revenues and transfers in the current year. The General Fund, Water Fund, Sewer Fund, and
Surface Water Management Fund made transfers of $280,765 to this fund in the current year.
Fund balance in the Permanent Improvement Revolving Fund increased by $2,341,078 in the current
year. Total revenues and transfers from the General Fund, Water Fund, Sewer Fund, and Surface Water
Management Fund exceeded current year expenditures based on the timing of projects.
Proprietary Funds – The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net position in the respective proprietary funds includes: $799,506 for water, negative
($94,251) for sewer, $461,930 for surface water management, and $131,559 for recycling. Water net
position decreased $78,810, sewer net position decreased $80,629, surface water management net position
increased $297,699, and recycling net position increased $29,146 during the year.
-12-
GENERAL FUND BUDGETARY HIGHLIGHTS
Total General Fund revenues were $370,843 more than estimated in the budget. Licenses and permits and
charges for services revenue surpassed budgeted levels by $381,867 and $167,276, respectively, due to
development activity surpassing expected amounts. An unfavorable variance in property taxes partially
offset the favorable variances previously discussed. Expenditures within the General Fund were less than
budget by $519,616 spread across several functions, but most noticeably in general government and parks
and recreation, mainly in personal services.
During the year, there were no budget amendments in the General Fund approved by City Council.
CAPITAL ASSETS AND LONG-TERM DEBT
Capital Assets – The City’s investment in capital assets for its governmental and business-type activities
as of December 31, 2017 amounts to $39,042,377 (net of accumulated depreciation). This investment in
capital assets includes items such as land, construction in progress, buildings and structures, infrastructure
and improvements, distribution and collection systems, machinery and equipment, office furniture and
equipment, and vehicles. The total decrease in the City’s investment in capital assets for the current fiscal
year was 5.9 percent (a decrease of 9.6 percent for governmental activities and a decrease of 0.1 percent
for business-type activities).
2017 2016 2017 2016 2017 2016
Land 2,679,818$ 2,679,818$ –$ –$ 2,679,818$ 2,679,818$
Construction in progress 552,481 7,315,839 324,945 2,075,734 877,426 9,391,573
Buildings and structures 3,594,986 3,514,527 704,778 746,320 4,299,764 4,260,847
Infrastructure and improvements 14,242,467 10,349,148 – – 14,242,467 10,349,148
Distribution and collection systems – – 15,173,947 13,384,114 15,173,947 13,384,114
Machinery and equipment 300,958 208,687 88,330 100,213 389,288 308,900
Office furniture and equipment 57,236 71,460 – – 57,236 71,460
Vehicles 1,322,431 1,039,242 – – 1,322,431 1,039,242
Total 22,750,377$ 25,178,721$ 16,292,000$ 16,306,381$ 39,042,377$ 41,485,102$
Table 3
Capital Assets
(Net of Depreciation)
Total
Business-Type
Activities
Governmental
Activities
Decreases in the current year included the contribution of capital assets to the county for a multi-year
street project accumulated by the City.
Additional information on the City’s capital assets can be found in Note 3 of the notes to basic financial
statements.
-13-
Long-Term Debt – At the end of the current fiscal year, the City had no bonded debt outstanding.
Remaining long-term debt includes the net pension liability and compensated absences payable.
2017 2016 2017 2016 2017 2016
Compensated absences
payable 49,694$ 64,277$ 44,716$ 52,721$ 94,410$ 116,998$
Net pension liability 971,048 1,389,901 497,257 778,008 1,468,305 2,167,909
Total 1,020,742$ 1,454,178$ 541,973$ 830,729$ 1,562,715$ 2,284,907$
Table 4
Outstanding Debt
Summary of Long-Term Debt
Total
Governmental Business-Type
Activities Activities
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3 percent of total
estimated market value.
As previously discussed, the net pension liability decreased from the prior year for the change in the
City’s proportionate share of pension obligations for the Public Employees Retirement Association –
General Employees Retirement Fund state-wide pension plan.
Additional information on the City’s long-term liabilities can be found in Note 4 of the notes to basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
• Dramatic increases in local government aids and other state sources are not anticipated based on
legislation at the time of writing this report.
• Property tax collection rates are expected to remain strong, at or near the 2017 level.
All of these factors were considered in preparing the City’s budget for the 2018 fiscal year.
REQUESTS FOR INFORMATION
This CAFR is designed to provide a general overview of the City’s finances for all those with an interest
in the City’s finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the finance department, 1245 West Highway 96,
Arden Hills, Minnesota 55112.
BASIC FINANCIAL STATEMENTS
TAB
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 9,981,271$ 1,380,385$ 11,361,656$
Accrued interest receivable 49,686 8,041 57,727
Accounts receivable 110,377 1,206,113 1,316,490
Taxes receivable 63,604 – 63,604
Special assessments receivable 1,565,721 – 1,565,721
Internal balances 291,870 (291,870) –
Due from other governmental units 1,804,021 – 1,804,021
Prepaid items 289,206 945 290,151
Inventory – 9,291 9,291
Capital assets
Nondepreciable 3,232,299 324,945 3,557,244
Depreciable, net of accumulated depreciation 19,518,078 15,967,055 35,485,133
Total assets 36,906,133 18,604,905 55,511,038
Deferred outflows of resources
Pension plan deferments – PERA 311,733 129,205 440,938
Liabilities
Accounts payable 472,954 78,783 551,737
Salaries payable 23,213 12,628 35,841
Deposits payable 485,695 – 485,695
Due to other governmental units 173,099 296,327 469,426
Unearned revenue 49,082 – 49,082
Compensated absences payable
Due within one year 37,270 33,537 70,807
Due in more than one year 12,424 11,179 23,603
Net pension liability
Due in more than one year 971,048 497,257 1,468,305
Total liabilities 2,224,785 929,711 3,154,496
Deferred inflows of resources
Pension plan deferments – PERA 353,646 213,655 567,301
State aid received for subsequent years 312,100 – 312,100
Total deferred inflows of resources 665,746 213,655 879,401
Net position
Investment in capital assets 22,750,377 16,292,000 39,042,377
Restricted for
Tax increment purposes 616,829 – 616,829
Cable TV 281,910 – 281,910
Unrestricted 10,678,219 1,298,744 11,976,963
Total net position 34,327,335$ 17,590,744$ 51,918,079$
CITY OF ARDEN HILLS
Statement of Net Position
as of December 31, 2017
See notes to basic financial statements -14-
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/programs
Primary government
Governmental activities
General government 1,322,106$ 314,166$ 137,248$ –$
Public safety 2,158,835 915,632 97,254 21,538
Public works 3,512,218 7,029 1,796,972 386,729
Parks and recreation 759,737 123,550 – 40,678
Economic development 276,841 – – –
Total governmental activities 8,029,737 1,360,377 2,031,474 448,945
Business-type activities
Water 2,159,874 2,127,452 73 –
Sewer 1,780,260 1,796,144 84 –
Surface water management 481,026 834,973 57 –
Recycling 147,919 151,272 24,441 –
Total business-type activities 4,569,079 4,909,841 24,655 –
Total primary government 12,598,816$ 6,270,218$ 2,056,129$ 448,945$
General revenues
Property taxes
Tax increment collections
Franchise taxes
Unrestricted investment earnings
Transfers
Total general revenues and transfers
Change in net position
Net position – beginning
Net position – ending
CITY OF ARDEN HILLS
Statement of Activities
Year Ended December 31, 2017
Program Revenues
See notes to basic financial statements -15-
Governmental Business-Type
Activities Activities Total
(870,692)$ –$ (870,692)$
(1,124,411) – (1,124,411)
(1,321,488) – (1,321,488)
(595,509) – (595,509)
(276,841) – (276,841)
(4,188,941) – (4,188,941)
– (32,349) (32,349)
– 15,968 15,968
– 354,004 354,004
– 27,794 27,794
– 365,417 365,417
(4,188,941) 365,417 (3,823,524)
3,526,347 – 3,526,347
295,788 – 295,788
109,070 – 109,070
139,347 32,754 172,101
230,765 (230,765) –
4,301,317 (198,011) 4,103,306
112,376 167,406 279,782
34,214,959 17,423,338 51,638,297
34,327,335$ 17,590,744$ 51,918,079$
Changes in Net Position
Net (Expense) Revenue and
-16-
Equipment,Permanent
EDA Building, and Improvement
General Operating Replacement Revolving
Cash and investments 3,906,088$ 304,102$ –$ 4,156,811$
Accrued interest receivable 17,577 1,541 – 23,262
Accounts receivable 83,009 – – –
Taxes receivable 62,238 1,366 – –
Special assessments receivable 8,784 – – 1,556,937
Interfund receivable – – – 747,009
Due from other governmental units 81,298 – – 1,722,723
Prepaid items 288,519 450 – –
Total assets 4,447,513$ 307,459$ –$ 8,206,742$
Liabilities
Accounts payable 89,092$ 1,977$ –$ 247,136$
Salaries payable 21,256 382 – –
Deposits payable 485,695 – – –
Interfund payable – – 259,269 –
Due to other governmental units 121,761 – – 15,190
Unearned revenue 49,082 – – –
Total liabilities 766,886 2,359 259,269 262,326
Deferred inflows of resources
Unavailable revenue – taxes 32,526 2,042 – –
Unavailable revenue – special assessments 8,784 – – 1,551,859
State aid received for subsequent years – – – 312,100
Total deferred inflows of resources 41,310 2,042 – 1,863,959
Fund balances (deficits)
Nonspendable 288,519 450 – –
Restricted – – – –
Committed – 302,608 – –
Assigned 285,548 – – 6,080,457
Unassigned 3,065,250 – (259,269) –
Total fund balances (deficits)3,639,317 303,058 (259,269) 6,080,457
Total liabilities, deferred inflows of
resources, and fund balances 4,447,513$ 307,459$ –$ 8,206,742$
Fund balances reported above
Amounts reported for governmental activities in the Statement of Net Position are different because:
Nondepreciable
Depreciable
Due within one year
Due in more than one year
Deferred outflows – pension plans
Deferred inflows – pension plans
Deferred inflows – unavailable revenues
Net position of governmental activities
The recognition of certain revenues and expenses/expenditures differ between the full accrual governmental activities financial statements and the modified
accrual governmental fund financial statements.
as of December 31, 2017
Assets
CITY OF ARDEN HILLS
Balance Sheet
Governmental Funds
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Internal service funds are used to allocate costs to individual funds. Net position is included in governmental activities in the Statement of Net Position.
Long-term liabilities are not payable with current financial resources and,therefore,are not reported in governmental funds (see Note 4 for more details on
components of long-term liabilities).
See notes to basic financial statements -17-
Other Total
Governmental Intra-Activity Governmental
Funds Eliminations Funds
1,192,810$ –$ 9,559,811$
5,710 – 48,090
27,368 – 110,377
– – 63,604
– – 1,565,721
– (439,147) 307,862
– – 1,804,021
214 – 289,183
1,226,102$ (439,147)$ 13,748,669$
98,857$ –$ 437,062$
968 – 22,606
– – 485,695
179,878 (439,147) –
– – 136,951
– – 49,082
279,703 (439,147) 1,131,396
– – 34,568
– – 1,560,643
– – 312,100
– – 1,907,311
214 – 289,183
898,739 – 898,739
169,388 – 471,996
57,936 – 6,423,941
(179,878) – 2,626,103
946,399 – 10,709,962
1,226,102$ (439,147)$ 13,748,669$
10,709,962$
3,232,299
19,518,078
333,069
(36,242)
(983,129)
311,733
(353,646)
1,595,211
34,327,335$
-18-
Equipment,Permanent
EDA Building, and Improvement
General Operating Replacement Revolving
Revenues
Taxes
General property taxes 3,541,705$ –$ –$ –$
Tax increments – 4,729 – –
Special assessments 1,265 – – 307,725
Licenses and permits 729,197 – – –
Intergovernmental 151,425 – – 1,972,989
Charges for services 590,141 – – –
Fines and forfeits 29,989 – – –
Earnings on investments 36,012 4,580 – 75,249
Franchise taxes – – – –
Antenna rental fees 128,765 – – –
Miscellaneous reimbursements 18,374 – – –
Other 4,267 – 36,500 77,077
Total revenues 5,231,140 9,309 36,500 2,433,040
Expenditures
Current
General government 1,076,352 – – –
Public safety 2,058,037 – – –
Public works 443,633 – – –
Parks and recreation 618,614 – – –
Economic development – 78,251 – –
Capital outlay
Public safety – – – –
Public works – – 461,483 272,928
Parks and recreation – – 77,949 259,859
Economic development – 1,647 – –
Total expenditures 4,196,636 79,898 539,432 532,787
Revenues over (under) expenditures 1,034,504 (70,589) (502,932) 1,900,253
Other financing sources (uses)
Transfers in – 90,000 280,765 440,825
Transfers out (340,000) – – –
Total other financing sources (uses)(340,000) 90,000 280,765 440,825
Net changes in fund balances 694,504 19,411 (222,167) 2,341,078
Fund balances (deficits) – beginning 2,944,813 283,647 (37,102) 3,739,379
Fund balances (deficits) – ending 3,639,317$ 303,058$ (259,269)$ 6,080,457$
Year Ended December 31, 2017
CITY OF ARDEN HILLS
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
See notes to basic financial statements -19-
Other Total
Governmental Intra-Activity Governmental
Funds Eliminations Funds
–$ –$ 3,541,705$
291,059 – 295,788
– – 308,990
– – 729,197
– – 2,124,414
– – 590,141
– – 29,989
17,390 – 133,231
109,070 – 109,070
– – 128,765
– – 18,374
28,038 – 145,882
445,557 – 8,155,546
113,148 – 1,189,500
– – 2,058,037
– – 443,633
– – 618,614
186,654 – 264,905
100,215 – 100,215
– – 734,411
– – 337,808
5,873 – 7,520
405,890 – 5,754,643
39,667 – 2,400,903
– (340,000) 471,590
– 340,000 –
– – 471,590
39,667 – 2,872,493
906,732 – 7,837,469
946,399$ –$ 10,709,962$
-20-
THIS PAGE INTENTIONALLY LEFT BLANK
Net changes in fund balances – total governmental funds 2,872,493$
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.
Capital outlay 1,087,523
Depreciation expense (697,992)
Contributions of capital assets to other governmental entities are not a use of current financial
resources and, therefore, not reported in governmental funds.(2,577,050)
Contributions of capital assets to enterprise funds are not a use of current financial resources and,
therefore, not reported in governmental funds.(240,825)
Adjustments are made between the governmental funds and the Statement of Activities for the
long-term liability activity of the net pension liability.418,853
The recognition of certain revenues and expenses/expenditures differ between the full accrual
governmental activities financial statements and the modified accrual governmental fund financial
statements.
Deferred outflows – pension plans (271,805)
Deferred inflows – pension plans (147,640)
Deferred inflows – unavailable revenues (250,634)
Internal service funds are used to allocate costs to individual funds.The net revenue of the Internal
Service Fund is reported with governmental activities in the government-wide financial statements.(94,040)
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.
Compensated absences 13,493
Change in net position of governmental activities 112,376$
Amounts reported for governmental activities in the Statement of Activities are different because:
CITY OF ARDEN HILLS
Reconciliation of the Statement of
Revenues, Expenditures, and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
Year Ended December 31, 2017
See notes to basic financial statements -21-
Surface Internal
Water Nonmajor Service
Water Sewer Management Recycling Totals Funds
Assets
Current assets
Cash and investments 823,235$ –$ 412,478$ 144,672$ 1,380,385$ 421,460$
Accrued interest receivable 4,689 – 2,640 712 8,041 1,596
Accounts receivable
Customers 460,718 455,780 217,312 – 1,133,810 –
Customer accounts certified to county 29,041 32,042 7,606 3,614 72,303 –
Prepaid items 315 315 315 – 945 23
Inventory 9,291 – – – 9,291 –
Total current assets 1,327,289 488,137 640,351 148,998 2,604,775 423,079
Noncurrent assets
Capital assets
Buildings and structures 818,476 16,564 – – 835,040 –
Distribution and collection systems 9,581,089 9,430,330 4,258,519 – 23,269,938 –
Machinery and equipment 315,109 634,405 1,187 – 950,701 –
Office furniture and equipment 6,951 5,024 – – 11,975 –
Vehicles 91,238 45,421 – – 136,659 –
Construction in progress 181,402 54,393 89,150 – 324,945 –
Total capital assets 10,994,265 10,186,137 4,348,856 – 25,529,258 –
Less accumulated depreciation (4,274,644) (4,326,831) (635,783) – (9,237,258) –
Total capital assets
(net of accumulated depreciation)6,719,621 5,859,306 3,713,073 – 16,292,000 –
Total assets 8,046,910 6,347,443 4,353,424 148,998 18,896,775 423,079
Deferred outflows of resources
Pension plan deferments – PERA 44,057 50,314 34,834 – 129,205 –
Liabilities
Current liabilities
Accounts payable 24,863 38,730 8,080 7,110 78,783 35,892
Salaries payable 4,067 5,250 2,953 358 12,628 607
Interfund payable – 291,870 – – 291,870 15,992
Due to other governmental units 284,833 2,460 – 9,034 296,327 36,148
Compensated absences payable 11,164 12,576 9,094 703 33,537 1,028
Total current liabilities 324,927 350,886 20,127 17,205 713,145 89,667
Noncurrent liabilities
Compensated absences payable
(net of current portion)3,722 4,192 3,031 234 11,179 343
Net pension liability 170,133 193,882 133,242 – 497,257 –
Total noncurrent liabilities 173,855 198,074 136,273 234 508,436 343
Total liabilities 498,782 548,960 156,400 17,439 1,221,581 90,010
Deferred inflows of resources
Pension plan deferments – PERA 73,058 83,742 56,855 – 213,655 –
Net position
Investment in capital assets 6,719,621 5,859,306 3,713,073 – 16,292,000 –
Unrestricted 799,506 (94,251) 461,930 131,559 1,298,744 333,069
Total net position 7,519,127$ 5,765,055$ 4,175,003$ 131,559$ 17,590,744$ 333,069$
Business-Type Activities – Enterprise Funds
CITY OF ARDEN HILLS
Statement of Net Position
Proprietary Funds
as of December 31, 2017
See notes to basic financial statements -22-
Surface Internal
Water Nonmajor Service
Water Sewer Management Recycling Totals Funds
Operating revenues
Charges for services 2,124,379$ 1,792,719$ 834,765$ 127,816$ 4,879,679$ 798,741$
Permit fees 515 2,645 – – 3,160 –
Miscellaneous 2,558 780 208 23,456 27,002 6,711
Total operating revenues 2,127,452 1,796,144 834,973 151,272 4,909,841 805,452
Operating expenses
Personal services 282,634 340,181 199,350 17,793 839,958 29,544
Supplies and maintenance 93,436 11,190 1,683 – 106,309 148,129
Other services and charges 433,523 374,373 90,189 7,940 906,025 108,947
Rent 26,821 26,551 11,800 – 65,172 –
Insurance 25,799 25,799 25,799 – 77,397 –
Utilities 13,552 17,468 – – 31,020 –
Purchased services 79,889 79,447 66,894 9,678 235,908 618,988
Purchased water 965,484 – – – 965,484 –
Recycling charges – – – 112,508 112,508 –
Sewer charges – 740,418 – – 740,418 –
Depreciation 238,736 164,833 85,311 – 488,880 –
Total operating expenses 2,159,874 1,780,260 481,026 147,919 4,569,079 905,608
Operating income (loss)(32,422) 15,884 353,947 3,353 340,762 (100,156)
Nonoperating revenues
Intergovernmental revenue 73 84 57 24,441 24,655 –
Earnings on investments 21,935 273 9,194 1,352 32,754 6,116
Total nonoperating revenues 22,008 357 9,251 25,793 57,409 6,116
Income before
contributions and transfers (10,414) 16,241 363,198 29,146 398,171 (94,040)
Capital contributions 67,000 42,000 131,825 – 240,825 –
Transfers out (135,396) (138,870) (197,324) – (471,590) –
Change in net position (78,810) (80,629) 297,699 29,146 167,406 (94,040)
Net position
Beginning of year 7,597,937 5,845,684 3,877,304 102,413 17,423,338 427,109
End of year 7,519,127$ 5,765,055$ 4,175,003$ 131,559$ 17,590,744$ 333,069$
Business-Type Activities – Enterprise Funds
CITY OF ARDEN HILLS
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
Year Ended December 31, 2017
See notes to basic financial statements -23-
Surface Nonmajor Internal
Water Service
Water Sewer Management Recycling Totals Funds
Cash flows from operating activities
Receipts from customers and users 2,157,750$ 1,979,821$ 827,381$ 150,885$ 5,115,837$ 805,452$
Payments to suppliers (1,552,264) (1,258,347) (234,444) (125,264) (3,170,319) (813,008)
Payments to employees (286,291) (345,204) (202,166) (17,628) (851,289) (30,776)
Payments for interfund services used (55,802) (57,399) (38,852) (4,172) (156,225) –
Net cash flows from operating activities 263,393 318,871 351,919 3,821 938,004 (38,332)
Cash flows from noncapital financing activities
Grants received 73 84 57 24,441 24,655 –
Cash paid to other funds – (133,652) – – (133,652) (27,404)
Transfers out (135,396) (138,870) (197,324) – (471,590) –
Net cash flows from noncapital
financing activities (135,323) (272,438) (197,267) 24,441 (580,587) (27,404)
Cash flows from capital and related
financing activities
Acquisition and construction of capital assets (123,886) (46,706) (63,082) – (233,674) –
Cash flows from investing activities
Earnings on investments 20,792 273 8,091 1,111 30,267 6,056
Net change in cash and cash equivalents 24,976 – 99,661 29,373 154,010 (59,680)
Cash and cash equivalents – beginning 798,259 – 312,817 115,299 1,226,375 481,140
Cash and cash equivalents – ending 823,235$ –$ 412,478$ 144,672$ 1,380,385$ 421,460$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss)(32,422)$ 15,884$ 353,947$ 3,353$ 340,762$ (100,156)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation 238,736 164,833 85,311 – 488,880 –
Decrease (increase) in customer receivables 30,298 183,677 (7,592) (387) 205,996 –
Decrease (increase) in prepaid items (290) 61,412 (290) – 60,832 26,869
Decrease (increase) in inventory 743 – – – 743 –
Decrease (increase) in deferred outflows 62,287 71,594 48,304 – 182,185 –
Increase (decrease) in accounts payable (57,039) (37,904) (76,641) (830) (172,414) 18,542
Increase (decrease) in salaries payable (1,238) (1,600) (994) 111 (3,721) (142)
Increase (decrease) in due to other governments 87,024 (64,008) – 1,520 24,536 17,645
Increase (decrease) in net pension liability (95,986) (110,327) (74,438) – (280,751) –
Increase (decrease) in compensated absences
payable (2,554) (3,579) (1,926) 54 (8,005) (1,090)
Increase (decrease) in deferred inflows 33,834 38,889 26,238 – 98,961 –
Total adjustments 295,815 302,987 (2,028) 468 597,242 61,824
Net cash flows from operating activities 263,393$ 318,871$ 351,919$ 3,821$ 938,004$ (38,332)$
Noncash investing, capital,
and financing activities
Capital contributions 67,000$ 42,000$ 131,825$ –$ 240,825$ –$
Business-Type Activities – Enterprise Funds
CITY OF ARDEN HILLS
Statement of Cash Flows
Proprietary Funds
Year Ended December 31, 2017
See notes to basic financial statements -24-
CITY OF ARDEN HILLS
Notes to Basic Financial Statements
December 31, 2017
-25-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The City of Arden Hills, Minnesota (the City) was incorporated in 1951 and operates under the “Optional
Plan A” form of government as defined in Minnesota Statutes. Under this plan, the government of the
City is directed by a council composed of an elected mayor and four elected councilmembers. The City
Council exercises legislative authority and determines all matters of policy. The City Council appoints
personnel responsible for the proper administration of all affairs relating to the City.
The City provides the following municipal services: public safety (police, fire, civil defense, and animal
control), highways and streets, sanitation and health, parks and recreation, public improvements,
community development, and general administrative services.
The accounting policies of the City conform to accounting principles generally accepted in the United
States of America as applicable to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
B. Reporting Entity
As required by accounting principles generally accepted in the United States of America, these financial
statements include the City (the primary government) and its component unit. Component units are
legally separate entities for which the primary government is financially accountable, or for which the
exclusion of the component unit would render the financial statements of the primary government
misleading. The criteria used to determine if the primary government is financially accountable for a
component unit includes whether or not the primary government appoints the voting majority of the
potential component unit’s board, is able to impose its will on the potential component unit, is in a
relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon
by the potential component unit.
Blended component units, although legally separate entities, are, in substance, part of the City’s
operations; therefore, data from these units are combined with data of the City. The City’s blended
component unit has a December 31 year-end. The City has the following component unit:
Arden Hills Economic Development Authority (EDA) – The EDA of the City was created
pursuant to Minnesota Statutes § 469.090–469.108 to carryout economic and industrial development
and redevelopment consistent with policies established by the City Council . It is composed of the
members of the City Council and the City has operational responsibility for the component unit. The
EDA’s activities are blended and reported in separate special revenue funds . Separate financial
statements are not issued for this component unit.
-26-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Government-Wide Financial Statement Presentation
The government-wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all of the
financial activities of the City. Governmental activities, which are normally supported by taxes and
intergovernmental revenues, are reported separately from business -type activities, which significantly
rely upon sales, fees, and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. 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
segment, 2) operating grants and contributions, and 3) capital grants and contributio ns, including special
assessments that are restricted to meeting the operational or capital requirements of a p articular function
or segment. Taxes and other internally directed revenues are reported as general revenues.
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Property taxes and special
assessments are recognized as revenues in the fiscal year for which they are certified for levy. Grants and
similar items are recognized when all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. However, charges between the City’s enterprise funds and other functions are not eliminated,
as that would distort the direct costs and program revenues reported in thos e functions. Depreciation
expense is included in the direct expenses of each function. Interest on long-term debt is considered an
indirect expense and is reported separately on the Statement of Activities.
D. Fund Financial Statement Presentation
Separate fund financial statements are provided for governmental and proprietary funds. Major individual
governmental and enterprise funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor governmental funds is reported in a single column in
the fund financial statements.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under this basis of accounting transactions are
recorded in the following manner:
1. Revenue Recognition – Revenue is recognized when it becomes measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days after year-end. 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.
Grants and similar items are recognized when all eligibility requirements imposed by the
provider have been met. Proceeds of long-term debt and acquisitions under capital leases are
reported as other financing sources.
Major revenue that is susceptible to accrual includes property taxes, special assessments,
intergovernmental revenue, charges for services, and interest earned on invest ments. Major
revenue that is not susceptible to accrual includes licenses and permits, fees, and miscellaneous
revenue. Such revenue is recorded only when received because it is not measurable until
collected.
-27-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. Recording of Expenditures – Expenditures are generally recorded when a liability is incurred,
except for principal and interest on long-term debt and other long-term obligations, which are
recognized as expenditures to the extent they have matured. Capital asset acquisitions are
reported as capital outlay expenditures in the governmental funds.
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. 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 City’s enterprise
funds and internal service funds are charges to customers for sales and services. The operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition
are reported as nonoperating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the proprietary
fund financial statements. Because the principal user of the internal services is the City’s governmental
activities, the financial statements of the internal service funds are consolidated into the governmental
column when presented in the government-wide financial statements. The cost of these services is
reported in the appropriate functional activity.
Description of Funds
The City reports the following major governmental funds:
General Fund – 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.
EDA Operating Fund – The EDA Operating Fund (special revenue fund) accounts for revenue
sources, including tax increments and other sources, that are legally restricted or committed to
expenditures for specified purposes (not including major capital projects).
Equipment, Building, and Replacement Fund – The Equipment, Building, and Replacement Fund
(capital project fund) was established for resources designated to be used for the purchase of capital
equipment and building repairs.
Permanent Improvement Revolving Fund – The Permanent Improvement Revolving Fund (capital
project fund) accounts for the acquisition of capital assets or construction for major capital project s
not being financed by proprietary funds.
The City reports the following major proprietary funds:
Water Fund – The Water Fund accounts for the water service charges, which are used to finance the
water system operations.
Sewer Fund – The Sewer Fund accounts for the sewer service charges, which are used to finance the
sanitary sewer system operations.
Surface Water Management Fund – The Surface Water Management Fund accounts for the
surface water charges, which are used to finance the surface water system operations.
-28-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The City reports the following nonmajor proprietary fund:
Recycling Fund – The Recycling Fund accounts for the recycling service charges, which are used to
finance the City’s recycling operations.
Additionally, the City reports the following fund type:
Internal Service Fund – The Internal Service Fund accounts for the financing of goods or services
provided by one department or agency to other departments or agencies of the City, or to other
governments on a cost reimbursement basis. The City’s internal service funds account for risk
management, engineering, central garage, and technology services.
E. Budgets and Budgetary Accounting
Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the
United States of America. Annual appropriated budgets are legally adopted for the General Fund and all
special revenue funds. Budgeted expenditure appropriations lapse at year-end, but may be adopted in the
subsequent year.
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. The appropriated budget is
prepared by fund, function, and department. The City’s department heads, with the approval of
the city administrator, may make transfers of appropriations within a department. Transfers of
appropriations between funds require the approval of the City Council . The legal level of
budgetary control is the fund level. Budgeted amounts are as amended by the City Council.
4. The city administrator is authorized to transfer appropriations within any fund budget.
Adjustments to appropriations between funds, and budget additions and deletions must be
authorized by the City Council.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund and special revenue funds.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for
the Debt Service Fund (if necessary). 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.
For the year ended December 31, 2017, actual expenditures exceeded budgeted expenditures in the EDA
TIF District No. 4 Fund by $45,580. This variance was financed by revenues in excess of budget and
available fund balance.
-29-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. Cash and Investments
Cash and investments include balances that are combined and invested to the extent available in various
securities as authorized by state law. Allocations of pooled investment earnings to the respective funds is
based on participation by each fund.
For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with
an original maturity from the time of purchase by the City of three months or less to be cash equivalents.
The proprietary funds’ portion in the government-wide cash and investment management pool is
considered to be cash equivalent.
The City generally reports investments at fair value. The Minnesota Municipal Money Market (4M) Fund
is an external investment pool regulated by Minnesota Statutes that is not registered with the Securities
and Exchange Commission (SEC), but follows the same regulatory rules of the SEC. The City’s
investment in investment pools/mutual funds are presented at amortized cost.
The City categorizes its fair value measurements within the fair value hierarchy established by
accounting principles generally accepted in the United States of America. The hierarchy is based on the
valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are
significant unobservable inputs.
Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing
technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark
quoted prices.
See Note 2 for the City’s recurring fair value measurements as of year-end.
G. Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Short-term interfund loans are classified as “interfund
receivables/payables.” All short-term interfund receivables and payables at year-end are planned to be
eliminated in the subsequent year. Long-term interfund loans are classified as “advances
receivable/payable.” Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements as “internal balances.”
H. Receivables
Property taxes and special assessments receivable have been reported net of estimated uncollectible
accounts (see Note 1 I. and J.). 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. The only receivables not expected to be collected within one year are property
taxes and special assessments receivable.
-30-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. Property Taxes
Property tax levies are set by the City Council in December of each year, and are certified to Ramsey
County for collection in the following year. In Minnesota, counties act as collection agents for all
property taxes. The county spreads the levies over all taxable property. Such taxes become a lien on
January 1 and are recorded as receivables by the City on that date. Real property taxes may be paid by
taxpayers in two equal installments on May 15 and October 15. Personal property taxes are due in full on
May 15. The county provides tax settlements to cities and other taxi ng districts three times a year: in
July, December, and January.
Property taxes are recognized as revenue in the year levied in the government-wide financial statements
and proprietary fund financial statements. In the governmental fund financial statements, taxes are
recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain
unpaid on December 31 are classified as delinquent taxes receivable , and are offset by a deferred inflow
of resources in the governmental fund financial statements.
J. Special Assessments
Special assessments primarily represent the financing for public improvements paid for by benefiting
property owners. As previously mentioned under receivables, the City is also generally able to certify
delinquent amounts to the county for collection as special assessments. Special assessments are recorded
as receivables upon certification to the county. Special assessments are recognized as revenue in the year
levied in the government-wide financial statements and proprietary fund financial statements. In the
governmental fund financial statements, special assessments are recognized as revenue when received in
cash or within 60 days after year-end. Governmental fund special assessments receivable which remain
unpaid on December 31 are offset by a deferred inflow of resources in the governmental fund financi al
statements.
K. Inventories
The original cost of materials and supplies has been recorded as expenses/expenditures at the time of
purchase for both the governmental and proprietary funds with the exception of water meters in the
Water Fund. These funds do not maintain material amounts of materials and supplies. The water meter
inventory in the Water Fund is stated at the lower of cost or market on the first -in, first-out method.
L. 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 expenses/expenditures at the time of consumption.
M. 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. Such assets are capitalized at historical cost, or
estimated historical cost for assets where actual historical cost is not available. Donated assets are
recorded as capital assets at their estimated acquisition value on the date of donation. The City defines
capital assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of
one year. 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.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In the case of the initial capitalization of general infrastructure assets (i.e., those reported by
governmental activities), the City chose to include items dating back to June 30, 1980. These assets are
reported at historical cost. The City estimated historical cost for the initial reporting of these assets
through back trending (estimating the current replacement cost and utilizing an appropriate price -level
index to deflate the cost to the acquisition year). As the City constructs or acquires additional
infrastructure assets each period, they will be capitalized and reported at historical cost.
Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not
reported in the governmental fund financial statements. 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, 2017, no interest was capitalized in connection with
construction in progress.
Property, plant, and equipment of the City is depreciated using the straight-line method over the
following estimated useful lives:
Buildings and structures 7–40 years
Infrastructure and improvements 15–50 years
Distribution and collection systems 15–50 years
Machinery and equipment 5–15 years
Office furniture and equipment 5–10 years
Vehicles 7–20 years
Land and construction in progress are not depreciated.
N. Compensated Absences
It is the City’s policy to permit employees to accumulate earned, but unused annual leave and sick pay
benefits called personal time off (PTO). All PTO is accrued when incurred in the government-wide and
proprietary fund financial statements. PTO is payable when used or upon termination of employment. A
liability for these amounts is reported in the governmental funds only if they have matured, for example,
as a result of employee resignations and retirements. A liability is recognized for that portion of
accumulated PTO benefits that is vested as severance pay. PTO is payable when used and, in some cases,
upon termination of employment. For regular employees, PTO is payable upon retirement or involuntary
termination up to the amount accrued, not to exceed 240 hours, who have served at least 12 consecutive
months prior to separation, and have given the City at least two weeks’ notice prior to the effective date
of such separation. The recorded portion of PTO (compensated absences) represents the estimated
amount expected, based on previous years’ history and those eligible for retirement, to be paid at
separation.
O. Pensions
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 the PERA’s fiduciary net position have been determined on the
same basis as they are reported by the PERA, except that the 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.
The PERA has a special funding situation created by a direct aid contribution made by the state of
Minnesota. The direct aid is a result of the merger of the Minneapolis Employees Retirement Fund into
the PERA on January 1, 2015.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, statements of financial position or balance sheets will sometimes
report separate sections for deferred outflows or inflows of resources. These separate financial statement
elements represent a consumption or acquisition of net position that applies to a future period and so will
not be recognized as an outflow of resources (expense/expenditure) or an inflow of financial resources
(revenue) until then.
The City reports deferred outflows and inflows of resources related to pensions in the government -wide
and enterprise funds Statement of Net Position. These deferred outflows and inflows result from
differences between expected and actual experi ence, changes in proportion, changes of assumptions,
differences between projected and actual earnings on pension plan investments, and contributions to the
plan subsequent to the measurement date and before the end of the reporting period. These amounts a re
deferred and amortized as required under pension standards.
Unavailable revenue, arises only under the modified accrual basis of accounting and, therefore, is
reported only in the governmental funds Balance Sheet. The governmental funds report unavailable
revenue from two sources: property taxes and special assessments. These amounts are deferred and
recognized as an inflow of resources in the period that the amounts become available.
The City also reports deferred inflows of resources related to state aid entitlements received for
subsequent years in the government-wide and governmental funds Balance Sheet. This item is deferred
and recognized as an inflow of resources in the period that the resources are appropriated.
Q. Net Position Classifications and Flow Assumptions
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position
is displayed in three components:
• Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation.
• Restricted Net Position – Consists of net position restricted when there are limitations imposed
on its use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.
• Unrestricted Net Position – All other elements of net position that do not meet the definition of
“restricted” or “investment in capital assets.”
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
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NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
R. Fund Balance Classifications and Flow Assumptions
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,
inventory, and other long-term assets.
• Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
• Committed – Consists of internally imposed constraints that are established by resolution of the
City Council. Those committed amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts.
• Assigned – Consists of internally imposed constraints for amounts intended to be used by the
City for specific purposes but do not meet the criteria to be classified as restricted or committed .
In governmental funds, assigned amounts represent intended uses established by the governing
body itself or by an official to which the governing body delegates the authority. Pursuant to City
Council resolution, the director of finance and administrative services and/or the city
administrator is authorized to establish assignments of fund balance.
• Unassigned – The residual classification for the General Fund, which 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, 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.
S. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements. Actual results could differ from those
estimates.
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NOTE 2 – DEPOSITS AND INVESTMENTS
A. Components of Cash and Investments
The City had the following cash and investments at year-end:
Fair Value
Measurements Less Than 1 to 5 6 to 10 Greater Than
Investment Type Rating Agency Using 1 Year Years Years 10 Years Total
Federal National Mortgage Association AA S&P Level 2 –$ –$ 99,742$ 248,270$ 348,012$
Federal Home Loan Bank AA S&P Level 2 – 368,272 – – 368,272
Municipal bonds AAA S&P Level 2 199,342 147,762 – – 347,104
Municipal bonds AA S&P Level 2 253,470 882,236 814,200 – 1,949,906
Municipal bonds AA Moody’s Level 2 – – 1,173,091 – 1,173,091
Municipal bonds A S&P Level 2 – 313,219 – – 313,219
Municipal bonds A Moody’s Level 2 150,377 – – – 150,377
Commercial paper A-1 S&P Level 3 100,600 – – – 100,600
Negotiable certificates of deposit N/R N/A Level 2 3,166,383 1,536,329 141,231 145,382 4,989,325
Investment pools/mutual funds
External investment pool – 4M Fund N/R N/A N/A 1,402,382 – – – 1,402,382
Wells Fargo Money Market Advantage AAA S&P Level 1 51,181 – – – 51,181
Total investments 5,323,735$ 3,247,818$ 2,228,264$ 393,652$ 11,193,469
Deposits 167,687
Petty cash 500
Total cash and investments 11,361,656$
N/R – Not Rated
N/A – Not Applicable
Interest Risk –
Maturity Duration in Years
Credit Risk
B. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council, including checking accounts and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a failure, the
City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corpora te
surety bond, or collateral. The market value of collateral pledged must equal 110 percent of the
deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral
includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations
rated “A” or better; revenue obligations rated “AA” or better; irrevocable standard letters of credit
issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that
securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve
Bank or in an account at a trust department of a commercial bank or other financial institution that is
not owned or controlled by the financial institution furnishing the collateral. The City has no
additional deposit policies addressing custodial credit risk.
At year-end, the carrying amount of the City’s deposits and the bank balance was $167,687. The
entire bank balance was covered by federal depository insurance, surety bonds, or by collateral held
by the City’s agent in the City’s name.
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NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
C. Investments
Investments are subject to various risks, the following of which are considered the most significant:
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker -dealer), the City would not be able to
recover the value of its investments or collateral securities that are in the poss ession of an outside
party. The City’s investment policies do not further address this risk, but typically limits its exposure
by purchasing insured or registered investments, or by the control of who holds the securities.
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies regi stered 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 13 months or less; general obligations rated “A” or better; revenue obligations 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 ma turing in
270 days or less; Guaranteed Investment Contracts guarantee d by a United States commercial bank,
domestic branch of a foreign bank, or a United States insurance company, and with a 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
$10,000,000; that are a primary reporting dealer in U.S. government securities to the F ederal Reserve
Bank of New York; or certain Minnesota securities broker -dealers. The City’s investment policies do
not further address credit risk.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The City’s investment policies do not mandate a limit on the duration of
investments.
Concentration Risk – This is the risk associated with investing a significant portion of the City’s
investment (considered 5 percent or more) in the securities of a single issuer, excluding United States
guaranteed investments (such as treasuries), investment pools, and mutual funds . The City’s
investment policies state that no more than 5 percent of the overall portfolio may be invested in the
securities of a single issuer, except for the securities of the United States government, or a maximum
of 25 percent with any individual counterparty in an external investment pool. At year-end, the City’s
investments in the City of Minneapolis, Minnesota (municipal bonds) represented 5 percent, and in
the City of Oshkosh, Wisconsin (municipal bonds) represented 5 percent.
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NOTE 3 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2017 was as follows:
A. Governmental Activities
Beginning Completed Ending
Balance Increases Decreases Construction Balance
Primary government
Governmental activities
Capital assets, not being depreciated
Land 2,679,818$ –$ –$ –$ 2,679,818$
Construction in progress 7,315,839 272,485 (2,577,050) (4,458,793) 552,481
Total capital assets, not being depreciated 9,995,657 272,485 (2,577,050) (4,458,793) 3,232,299
Capital assets, being depreciated
Buildings and structures 6,447,692 258,270 – – 6,705,962
Infrastructure and improvements 13,461,178 – – 4,217,968 17,679,146
Machinery and equipment 852,295 137,259 (5,685) – 983,869
Office furniture and equipment 153,553 – – – 153,553
Vehicles 1,605,441 419,509 (35,659) – 1,989,291
Total capital assets, being depreciated 22,520,159 815,038 (41,344) 4,217,968 27,511,821
Less accumulated depreciation for
Buildings and structures 2,933,165 177,811 – – 3,110,976
Infrastructure and improvements 3,112,030 324,649 – – 3,436,679
Machinery and equipment 643,608 44,988 (5,685) – 682,911
Office furniture and equipment 82,093 14,224 – – 96,317
Vehicles 566,199 136,320 (35,659) – 666,860
Total accumulated depreciation 7,337,095 697,992 (41,344) – 7,993,743
Total capital assets being depreciated – net 15,183,064 117,046 – 4,217,968 19,518,078
Governmental activities capital assets – net 25,178,721$ 389,531$ (2,577,050)$ (240,825)$ 22,750,377$
B. Business-Type Activities
Beginning Completed Ending
Balance Increases Decreases Construction Balance
Primary government
Business-type activities
Capital assets, not being depreciated
Construction in progress 2,075,734$ 193,093$ –$ (1,943,882)$ 324,945$
Capital assets, being depreciated
Buildings and structures 835,040 – – – 835,040
Distribution and collection systems 21,044,650 40,581 – 2,184,707 23,269,938
Machinery and equipment 950,701 – – – 950,701
Office furniture and equipment 11,975 – – – 11,975
Vehicles 186,292 – (49,633) – 136,659
Total capital assets, being depreciated 23,028,658 40,581 (49,633) 2,184,707 25,204,313
Less accumulated depreciation for
Buildings and structures 88,720 41,542 – – 130,262
Distribution and collection systems 7,660,536 435,455 – – 8,095,991
Machinery and equipment 850,488 11,883 – – 862,371
Office furniture and equipment 11,975 – – – 11,975
Vehicles 186,292 – (49,633) – 136,659
Total accumulated depreciation 8,798,011 488,880 (49,633) – 9,237,258
Total capital assets, being depreciated – net 14,230,647 (448,299) – 2,184,707 15,967,055
Business-type activities capital assets – net 16,306,381$ (255,206)$ –$ 240,825$ 16,292,000$
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NOTE 3 – CAPITAL ASSETS (CONTINUED)
C. Depreciation Expense by Function
Depreciation expense was charged to the following functions:
Governmental activities
General government 123,202$
Public safety 2,964
Public works 427,960
Parks and recreation 137,493
Economic development 6,373
697,992$
Business-type activities
Water 238,736$
Sewer 164,833
Surface water management 85,311
488,880$
D. Construction Commitments
At December 31, 2017, the City had the following construction project commitments:
Project Amount
Water Fund – Water Tower Rehabilitation 519,800$
Sewer Fund – Sewer Lining Project 197,398
717,198$
NOTE 4 – LONG-TERM LIABILITIES
Long-term debt outstanding at year-end includes compensated absences payable and net pension liability,
which are described elsewhere in these notes. For the governmental activities, compensated absences and
the net pension liability are generally liquidated by the General Fund and special revenue funds.
Long-term liability activity for the year ended December 31, 2017 was as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities
Compensated absences payable 64,277$ 155,324$ 169,907$ 49,694$ 37,270$
Net pension liability 1,389,901 131,721 550,574 971,048 –
Total governmental activities
long-term liabilities 1,454,178$ 287,045$ 720,481$ 1,020,742$ 37,270$
Business-type activities
Compensated absences payable 52,721$ 2,705$ 10,710$ 44,716$ 33,537$
Net pension liability 778,008 88,290 369,041 497,257 –
Total business-type activities
long-term liabilities 830,729$ 90,995$ 379,751$ 541,973$ 33,537$
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NOTE 5 – FUND BALANCES
A. Classifications
At December 31, 2017, a summary of the City’s governmental fund balance classifications are as
follows:
Equipment,Permanent Other
EDA Building, and Improvement Governmental
General Operating Replacement Revolving Funds Total
Nonspendable
Prepaid items 288,519$ 450$ –$ –$ 214$ 289,183$
Restricted for
Tax increment purposes – – – – 616,829 616,829
Cable TV – – – – 281,910 281,910
Total restricted – – – – 898,739 898,739
Committed for
Economic development authority – 302,608 – – 169,388 471,996
Assigned for
Compensated absences 48,323 – – – – 48,323
Subsequent year’s budget 237,225 – – – – 237,225
Capital improvements – – – 6,080,457 – 6,080,457
Public safety capital equipment – – – – 57,936 57,936
Total assigned 285,548 – – 6,080,457 57,936 6,423,941
Unassigned 3,065,250 – (259,269) – (179,878) 2,626,103
Total 3,639,317$ 303,058$ (259,269)$ 6,080,457$ 946,399$ 10,709,962$
B. Minimum Unassigned Fund Balance Policy
The City Council has formally adopted a fund balance policy regarding the minimum unassigned fund
balance for the General Fund. The policy establishes the City will strive to maintain an unassigned
General Fund balance of 50.0 percent of the subsequent year’s General Fund budgeted expenditures. At
December 31, 2017, the unassigned fund balance of the General Fund was 64.4 percent of the subsequent
year’s budgeted expenditures.
NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE
A. Plan Description
The City participates in the following cost-sharing, multiple-employer defined benefit pension plans
administered by the PERA of Minnesota. The PERA’s defined benefit pension plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit
pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the GERF. The GERF
members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new
members in 1967. All new members must participate in the Coordinated Plan.
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NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED)
B. Benefits Provided
The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statutes and can only be modified by the State Legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding
ratio of the plan. Members in plans that are at least 90.0 percent funded for two consecutive years are
given 2.5 percent increases. Members in plans that have not exceeded 90.0 percent funded, or have fallen
below 80.0 percent, are given 1.0 percent increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply
to active plan participants. 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.
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 the PERA’s Coordinated and Basic Plan members. The retiring member receives the higher of a
step-rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1,
the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first
10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and
1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of
average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year
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 age 66.
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the State Legislature.
GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.10 percent and
6.50 percent, respectively, of their annual covered salary in calendar year 2017. The City was
required to contribute 11.78 percent of pay for Basic Plan members and 7.50 percent for Coordinated
Plan members in calendar year 2017. The City’s contributions to the GERF for the year ended
December 31, 2017 were $106,513. The City’s contributions were equal to the required contributions
as set by state statutes.
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NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED)
D. Pension Costs
GERF Pension Costs
At December 31, 2017, the City reported a liability of $1,468,305 for its proportionate share of the
GERF’s net pension liability. The net pension liability was measured as of June 30, 2017, 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 lia bility was based on the City’s
contributions received by the PERA during the measurement period for employer payroll paid dates
from July 1, 2016 through June 30, 2017, relative to the total employer contributions received from
all of the PERA’s participating employers. The City’s proportionate share was 0.0230 percent at the
end of the measurement period and 0.0267 percent for the beginning of the period.
The City’s net pension liability reflected a reduction due to the state of Minnesota’s contribution o f
$6 million to the fund. The state of Minnesota is considered a nonemployer contributing entity and
the state’s contribution meets the definition of a special funding situation. The amount recognized by
the City as its proportionate share of the net pensi on liability, the direct aid, and total portion of the
net pension liability that was associated with the City were as follows:
City’s proportionate share of net pension liability 1,468,305$
State’s proportionate share of the net pension liability
associated with the City 18,435$
For the year ended December 31, 2017, the City recognized pension expense of $109,723 for its
proportionate share of the GERF’s pension expense. In addition, the Cit y recognized an additional
$533 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s
contribution of $6 million to the GERF.
At December 31, 2017, the City reported its proportionate share of the GERF’s deferred o utflows of
resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 48,391$ 111,049$
Changes in actuarial assumptions 282,985 147,198
Difference between projected and actual investment earnings 55,039 –
Changes in proportion – 309,054
Contributions paid to the PERA subsequent to the
measurement date 54,523 –
Total 440,938$ 567,301$
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NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED)
Deferred outflows of resources reported $54,523 related to pensions resulting from city contributions
subsequent to the measurement date that will be recognized as a reduction of the net pension liability
in the year ending December 31, 2018. Other amounts reported as deferred outflows and deferred
inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2018 (46,712)$
2019 20,213$
2020 (92,059)$
2021 (62,328)$
E. Actuarial Assumptions
The total pension liability in the June 30, 2017 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active member payroll growth 3.25% per year
Investment rate of return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants were based on RP-2014 tables for all plans for males or females, as
appropriate, with slight adjustments to fit the PERA’s experience. Cost of living benefit increases for
retirees are assumed to be 1.0 percent per year for the GERF through 2044, and then 2.5 percent
thereafter.
Actuarial assumptions used in the June 30, 2017 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the GERF was completed in 2015.
The following changes in actuarial assumptions occurred in 2017:
GERF
• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members
and 60.0 percent for vested and nonvested deferred members. The revised CSA loads are now
zero percent for active member liability, 15.0 percent for vested deferred member liability, and
3.0 percent for nonvested 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.
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NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE (CONTINUED)
The State Board of Investment, which manages the investments of the PERA, prepares an analysis of the
reasonableness of the long-term expected rate of return on a regular basis 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:
Asset Class
Domestic stocks 39 % 5.10 %
International stocks 19 5.30 %
Bonds 20 0.75 %
Alternative assets 20 5.90 %
Cash 2 – %
Total 100 %
Allocation
Target
Real Rate of Return
Long-Term Expected
F. Discount Rate
The discount rate used to measure the total pension liability in 2017 was 7.50 percent. 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 GERF 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 Discount Rate Discount Rate
6.50%7.50%8.50%
The City’s proportionate share of the
GERF net pension liability 2,277,450$ 1,468,305$ 805,873$
H. Pension Plan Fiduciary Net Position
Detailed information about the GERF’s fiduciary net position is available in a separately issued PERA
financial report. That report may be obtained on the PERA website at www.mnpera.org; by writing to the
PERA at 60 Empire Drive, Suite 200, St. Paul, Minnesota 55103; or by calling (651) 296 -7460 or
(800) 652-9026.
-43-
NOTE 7 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
A. Interfund Receivable and Payable
Interfund receivable and payable balances at December 31, 2017 are as follows:
Fund Receivable Payable
Governmental funds
Permanent Improvement Revolving 747,009$ –$
Equipment, Building, and Replacement – 259,269
Nonmajor – other governmental – 179,878
Intra-activity eliminations (439,147) (439,147)
Total governmental funds 307,862 –
Proprietary funds
Enterprise funds
Sewer – 291,870
Internal service funds – 15,992
Total proprietary funds – 307,862
Total all funds 307,862$ 307,862$
Interfund receivables and payables are used for temporary cash deficits. These balances will be
eliminated with park dedication fees, other reimbursements, future charges for services, grants, and other
internal fund transfers if needed.
B. Transfers In and Transfers Out
Equipment,Permanent
EDA Building, and Improvement
Transfers Out Operating Replacement Revolving Total
Governmental funds
General Fund 90,000$ 50,000$ 200,000$ 340,000$
Proprietary funds
Water – 68,396 67,000 135,396
Sewer – 96,870 42,000 138,870
Surface Water Management – 65,499 131,825 197,324
Total 90,000$ 280,765$ 440,825$ 811,590$
Transfers In
Governmental Funds
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit s from
services provided by another fund. All of the City’s interfund transfers fall under that category. All of the
2017 transfers are considered routine and consistent with previous practices.
-44-
NOTE 8 – DEFICIT FUND BALANCES/NET POSITION
The City had deficit fund balances/net position at December 31, 2017 as follows:
Amount
Governmental funds
Equipment, Building, and Replacement 259,269$
Nonmajor – Parks 29,516
Nonmajor – TCAAP 150,362
Proprietary funds
Internal service funds – Engineering 7,020
Internal service funds – Central Garage 26,797
Internal service funds – Technology 31,790
504,754$
These fund deficits will be eliminated with future contributions, grants, and internal fund transfers, if
needed.
NOTE 9 – TAX ABATEMENT AGREEMENTS
The City, in order to spur economic development and redevelopment will enter into private development
and redevelopment agreements to encourage a developer to construct, expand, or improve new or existing
properties and buildings or clean-up and redevelop blighted areas. These agreements may in substance be
a tax abatement, but will depend on their individual circumstances. The City currently has two
agreements that would be considered a tax abatement under GASB Statement No. 77.
In 2013, the City entered into a development agreement with Presbyterian Homes of Arden Hills, Inc. to
aid in financing certain public development costs and administrative costs of a project undertaken. For
this agreement, the City used an economic development vehicle known as tax increment financing
whereby tax increment revenue is generated on the incremental increase in value above a base value
established on the date that the tax increment district is created. The City will abate 90 percent of the
incremental taxes received through February 2019, and 75 percent of the incremental taxes received
through February 2028, through execution of a tax increment revenue note to be retired in 2028. The
outstanding principal balance as of December 31, 2017, was $865,947 and the City rebated $183,598 in
the current year.
In 2016, the City entered into an abatement agreement with Land O’Lakes, Inc. The City did not have
any collections or rebate of property tax increment in the current year.
-45-
NOTE 9 – TAX ABATEMENT AGREEMENTS (CONTINUED)
The City is authorized to create a tax increment financing plan under Minnesota Statutes,
Chapter 469.175. The criteria that must be met under the statute are that, in the opinion of the
municipality:
• The proposed development or redevelopment would not reasonably be expected to occur solely
through private investment within the reasonably foreseeable future;
• The increased market value of the site that could reasonably be expected to occur without the use
of tax increment financing would be less than the increase in the market value estimated to result
from the proposed development after subtracting the present value of the projected ta x
increments for the maximum duration of the district permitted by the plan. The requirements of
this item do not apply if the district is a housing district;
• The tax increment financing plan conforms to the general plan for the development or
redevelopment of the municipality as a whole; and
• The tax increment financing plan will afford maximum opportunity, consistent with the sound
needs of the municipality as a whole, for the development or redevelopment of the project by
private enterprise.
NOTE 10 – COMMITMENTS AND CONTINGENCIES
A. 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 for which the City carrie s insurance.
The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust
(LMCIT), which is a risk-sharing pool with other governmental units. The City pays an annual premium
to the LMCIT for its workers’ compensation and property and casualty insurance. The LMCIT is
self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount
for each insurance event. There were no significant reductions in insurance from the previous year or
settled claims in excess of insurance coverage for any of the past three fiscal years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be
reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred, but not
reported. The City’s management is not aware of any incurred, but unreported claims.
B. Litigation
The city attorney has indicated that existing and pending lawsuits, claims, and other actions in which the
City is a defendant are either covered by insurance, of an immaterial amount, or, in the judgment of the
city attorney, remotely recoverable by plaintiffs. No loss has been recorded on the City’s financial
statements relating to these claims.
-46-
NOTE 10 – COMMITMENTS AND CONTINGENCIES (CONTINUED)
C. Federal and State Funds
Amounts recorded or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot
be determined at this time, although the City expects such amounts, if any, to be immaterial.
D. Tax Increment Districts
The City’s tax increment districts are subject to review by the Minnesota Office of the State Auditor .
Any disallowed claims or misuse of tax increments could become a liability of the applicable fund .
Management has indicated that they are not aware of any instances of noncomplia nce which would have
a material effect on the financial statements.
E. Lake Johanna Volunteer Fire Department, Inc.
The City receives fire protection under a contract with the Lake Johanna Volunteer Fire Department, Inc .
The current contract calls for annual payments and expires December 31, 2018. The contract cost will be
based on the budget submitted by the fire department and approved by the City. Capital costs are billed
separately in addition to the contract rate. The amount expended under the contract was $514,468 in
2017.
NOTE 11 – CONDUIT DEBT OBLIGATION
The City has issued private activity bonds to provide financial assistance to private sector entities for the
acquisition and construction of industrial and commercial facilities deemed to be in th e public interest.
The bonds constitute special obligations of the City, payable solely from revenues of the projects pledged
to the payment thereof. The bonds do not constitute a debt of the City and the City has no obligation for
repayment. Accordingly, the bonds are not reported as liabilities in the City’s financial statements. Bonds
outstanding at December 31, 2017 could not be determined; however, their original issue amounts are as
follows:
Amount
Bond Description Issued
Commercial Facilities Revenue Note, Series 2008 Office facilities 5,500,000$
Senior Housing Revenue Note, Series 2011A Senior housing 10,000,000
Senior Housing Revenue Note, Series 2012A Senior housing 10,000,000
Senior Housing Revenue Note, Series 2015A Senior housing 10,000,000
Total 35,500,000$
NOTE 12 – SUBSEQUENT EVENT
In May 2018, the City authorized the sale of $2,680,000 General Obligation Utility Revenue Bonds,
Series 2018A.
REQUIRED SUPPLEMENTARY INFORMATION
TAB
Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.0283% 1,466,653$ –$ 1,466,653$ 1,662,826$ 88.20%78.20%
06/30/2016 0.0267% 2,167,909$ 28,367$ 2,196,276$ 1,669,147$ 129.88%68.90%
06/30/2017 0.0230% 1,468,305$ 18,435$ 1,486,740$ 1,479,483$ 99.24%75.90%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
129,774$ 129,774$ –$ 1,731,651$ 7.49%
115,814$ 115,814$ –$ 1,553,950$ 7.45%
106,513$ 106,513$ –$ 1,420,174$ 7.50%
Note:
CITY OF ARDEN HILLS
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
PERA – General Employees Retirement Fund
Schedule of City Contributions
Year-End Date
City Fiscal
12/31/2016
12/31/2015
Year Ended December 31, 2017
12/31/2017
Year Ended December 31, 2017
12/31/2017
The City implemented GASB Statement No.68 in fiscal 2015 (using a June 30,2015 measurement date).This schedule is intended to present 10-year
trend information. Additional years will be added as they become available.
Year-End Date
City Fiscal
12/31/2016
12/31/2015
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Actual Variance With
Original Budget Final Budget Amounts Final Budget
Revenues
General property taxes 3,671,390$ 3,671,390$ 3,541,705$ (129,685)$
Special assessments 3,000 3,000 1,265 (1,735)
Licenses and permits
Business 55,150 55,150 60,071 4,921
Nonbusiness 292,180 292,180 669,126 376,946
Total licenses and permits 347,330 347,330 729,197 381,867
Intergovernmental
State
Road maintenance 88,000 88,000 88,042 42
PERA aid 5,179 5,179 5,179 –
Police aid 52,609 52,609 58,204 5,595
Total intergovernmental 145,788 145,788 151,425 5,637
Charges for services
General government 18,800 18,800 18,764 (36)
Public safety 92,000 92,000 254,463 162,463
Parks and recreation 120,530 120,530 123,550 3,020
Administrative charges 191,535 191,535 193,364 1,829
Total charges for services 422,865 422,865 590,141 167,276
Fines and forfeits 36,500 36,500 29,989 (6,511)
Earnings on investments 65,000 65,000 36,012 (28,988)
Antenna rental fees 150,000 150,000 128,765 (21,235)
Miscellaneous reimbursements 10,274 10,274 18,374 8,100
Other 8,150 8,150 4,267 (3,883)
Total revenues 4,860,297 4,860,297 5,231,140 370,843
Expenditures
Current
General government
City Council
Personal services 31,211 31,211 31,165 46
Other services and charges 35,197 35,197 25,349 9,848
Total City Council 66,408 66,408 56,514 9,894
Elections
Other services and charges 23,000 23,000 21,137 1,863
Administration
Personal services 197,567 197,567 83,422 114,145
Materials and supplies – – 448 (448)
Other services and charges 110,348 110,348 176,434 (66,086)
Total administration 307,915 307,915 260,304 47,611
CITY OF ARDEN HILLS
Required Supplementary Information
Budgetary Comparison Schedule – General Fund
Year Ended December 31, 2017
-48-(continued)
Actual Variance With
Original Budget Final Budget Amounts Final Budget
Expenditures (continued)
Current (continued)
General government (continued)
Finance
Personal services 68,176 68,176 66,311 1,865
Materials and supplies 24,100 24,100 19,000 5,100
Other services and charges 93,400 93,400 107,350 (13,950)
Total finance 185,676 185,676 192,661 (6,985)
TCAAP
Personal services 120,653 120,653 43,725 76,928
Materials and supplies 1,000 1,000 – 1,000
Other services and charges 65,500 65,500 55,156 10,344
Total TCAAP 187,153 187,153 98,881 88,272
Planning and zoning
Personal services 174,535 174,535 40,044 134,491
Materials and supplies 200 200 – 200
Other services and charges 152,600 152,600 157,932 (5,332)
Total planning and zoning 327,335 327,335 197,976 129,359
General government buildings
Personal services 39,140 39,140 42,719 (3,579)
Materials and supplies 7,000 7,000 4,426 2,574
Other services and charges 195,717 195,717 201,734 (6,017)
Total general government buildings 241,857 241,857 248,879 (7,022)
Total general government 1,339,344 1,339,344 1,076,352 262,992
Public safety
Police and animal control
Other services and charges 1,179,773 1,179,773 1,177,494 2,279
Dispatch
Other services and charges 68,832 68,832 68,832 –
Fire protection
Other services and charges 514,468 514,468 514,468 –
Emergency management
Personal services 2,879 2,879 30 2,849
Other services and charges 10,850 10,850 3,336 7,514
Total emergency management 13,729 13,729 3,366 10,363
CITY OF ARDEN HILLS
Required Supplementary Information
Budgetary Comparison Schedule – General Fund (continued)
Year Ended December 31, 2017
-49-(continued)
Actual Variance With
Original Budget Final Budget Amounts Final Budget
Expenditures (continued)
Current (continued)
Public safety (continued)
Protective inspections
Personal services 261,992 261,992 218,542 43,450
Materials and supplies 3,046 3,046 171 2,875
Other services and charges 58,540 58,540 75,164 (16,624)
Total protective inspections 323,578 323,578 293,877 29,701
Total public safety 2,100,380 2,100,380 2,058,037 42,343
Public works
Street maintenance
Personal services 207,085 207,085 171,591 35,494
Materials and supplies 72,625 72,625 47,424 25,201
Other services and charges 259,039 259,039 224,618 34,421
Total public works 538,749 538,749 443,633 95,116
Parks and recreation
Park maintenance
Personal services 215,361 215,361 183,905 31,456
Materials and supplies 36,000 36,000 26,384 9,616
Other services and charges 189,950 189,950 157,427 32,523
Total park maintenance 441,311 441,311 367,716 73,595
Recreation
Personal services 225,202 225,202 163,331 61,871
Materials and supplies 16,275 16,275 19,223 (2,948)
Other services and charges 54,991 54,991 68,344 (13,353)
Total recreation 296,468 296,468 250,898 45,570
Total parks and recreation 737,779 737,779 618,614 119,165
Total expenditures 4,716,252 4,716,252 4,196,636 519,616
Revenues over expenditures 144,045 144,045 1,034,504 890,459
Other financing sources (uses)
Transfers out (340,000) (340,000) (340,000) –
Net change in fund balance (195,955)$ (195,955)$ 694,504 890,459$
Fund balance – beginning 2,944,813
Fund balance – ending 3,639,317$
Budgetary Comparison Schedule – General Fund (continued)
Year Ended December 31, 2017
CITY OF ARDEN HILLS
Required Supplementary Information
-50-
Actual Variance With
Original Budget Final Budget Amounts Final Budget
Revenues
Taxes – tax increments –$ –$ 4,729$ 4,729$
Earnings on investments 5,600 5,600 4,580 (1,020)
Total revenues 5,600 5,600 9,309 3,709
Expenditures
Economic development
Current
Personal services 72,301 72,301 33,610 38,691
Materials and supplies 650 650 290 360
Other services and charges 61,248 61,248 44,351 16,897
Capital outlay 45,000 45,000 1,647 43,353
Total expenditures 179,199 179,199 79,898 99,301
Revenues over (under) expenditures (173,599) (173,599) (70,589) 103,010
Other financing sources
Transfers in 90,000 90,000 90,000 –
Net change in fund balances (83,599)$ (83,599)$ 19,411 103,010$
Fund balance – beginning 283,647
Fund balance – ending 303,058$
CITY OF ARDEN HILLS
Required Supplementary Information
Budgetary Comparison Schedule – EDA Operating Fund
Year Ended December 31, 2017
-51-
CITY OF ARDEN HILLS
Notes to Required Supplementary Information
December 31, 2017
-52-
NOTE 1 – LEGAL COMPLIANCE – BUDGETS
The General Fund and EDA Operating Fund budgets are 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 fund level for these funds. Budgeted appropriations lapse at year -end.
NOTE 2 – PERA – GENERAL EMPLOYEES RETIREMENT FUND
2017 CHANGES
CHANGES IN ACTUARIAL ASSUMPTIONS:
• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and
60 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent
for active member liability, 15.0 percent for vested deferred member lia bility, and 3.0 percent for
nonvested 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 percent per year through
2035, and 2.5 percent per year thereafter, to 1.0 percent per year for all years.
• The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate
was changed from 7.9 percent to 7.5 percent.
• 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 percent to 3.25 percent
for payroll growth, and 2.50 percent for inflation.
CITY OF ARDEN HILLS
Notes to Required Supplementary Information (continued)
December 31, 2017
-53-
NOTE 2 – PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
2015 CHANGES
CHANGES IN PLAN PROVISIONS:
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Retirement Fund, which increased the total pension liability by $1.1 billion and increased
the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions
were revised.
CHANGES IN ACTUARIAL ASSUMPTIONS:
• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through
2030, and 2.5 percent per year thereafter, to 1.0 percent per year through 2035, and 2.5 percent per
year thereafter.
SUPPLEMENTAL INFORMATION
TAB
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds – Special revenue funds are used to account for revenues derived from specific
taxes or other earmarked revenue sources. They are usually required by statute, local ordinance, and/or
resolution to finance particular functions, activities, or governments.
Capital Project Funds – Capital project funds account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by proprietary funds).
Total
Nonmajor
Governmental
Special Revenue Capital Project Funds
Assets
Cash and investments 1,131,593$ 61,217$ 1,192,810$
Accrued interest receivable 5,420 290 5,710
Accounts receivable 26,846 522 27,368
Prepaid items 214 – 214
Total assets 1,164,073$ 62,029$ 1,226,102$
Liabilities
Accounts payable 94,764$ 4,093$ 98,857$
Salaries payable 968 – 968
Interfund payable – 179,878 179,878
Total liabilities 95,732 183,971 279,703
Fund balances (deficits)
Nonspendable 214 – 214
Restricted 898,739 – 898,739
Committed 169,388 – 169,388
Assigned – 57,936 57,936
Unassigned – (179,878) (179,878)
Total fund balances (deficits)1,068,341 (121,942) 946,399
Total liabilities and fund balances 1,164,073$ 62,029$ 1,226,102$
CITY OF ARDEN HILLS
Nonmajor Governmental Funds
Combining Balance Sheet
as of December 31, 2017
-54-
Total
Nonmajor
Governmental
Special Revenue Capital Project Funds
Revenues
Taxes
Tax increments 291,059$ –$ 291,059$
Earnings on investments 14,336 3,054 17,390
Franchise taxes 109,070 – 109,070
Other – 28,038 28,038
Total revenues 414,465 31,092 445,557
Expenditures
Current
General government 113,148 – 113,148
Economic development 186,654 – 186,654
Capital outlay
Public safety – 100,215 100,215
Economic development – 5,873 5,873
Total expenditures 299,802 106,088 405,890
Net change in fund balances 114,663 (74,996) 39,667
Fund balances (deficits) – beginning 953,678 (46,946) 906,732
Fund balances (deficits) – ending 1,068,341$ (121,942)$ 946,399$
CITY OF ARDEN HILLS
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2017
-55-
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NONMAJOR SPECIAL REVENUE FUNDS
The City had the following nonmajor special revenue funds during the year:
Cable Fund – This fund was established to account for transactions associated with cable television in
the City. Revenues are franchise fees from Comcast. Expenditures include the operation of the North
Suburban Cable Commission and other costs relating to cable television activity, internet, and other
forms of communication.
EDA Revolving Fund – This fund was established to help businesses develop and grow with the
expectation to pay back the City. Once the funds are replaced, those funds are available to be loaned out
to another business.
EDA TIF District No. 3 Fund – This fund was established as a Housing District in 1993. The revenue is
derived from tax increment and expenditures are for developer reimbursements and administrative
expenses.
EDA TIF District No. 4 Fund – This fund was established as a redevelopment plan for Presbyterian
Homes of Arden Hills, Inc. in 2010. The revenue is derived from tax increment and expenditures are for
developer reimbursements and administrative expenses.
Total
EDA EDA Nonmajor
TIF TIF Special
EDA District District Revenue
Cable Revolving No. 3 No. 4 Funds
Assets
Cash and investments 257,606$ 168,588$ 561,805$ 143,594$ 1,131,593$
Accrued interest receivable 1,274 800 2,665 681 5,420
Accounts receivable 26,846 – – – 26,846
Prepaid items 214 – – – 214
Total assets 285,940$ 169,388$ 564,470$ 144,275$ 1,164,073$
Liabilities
Accounts payable 2,848$ –$ 58$ 91,858$ 94,764$
Salaries payable 968 – – – 968
Total liabilities 3,816 – 58 91,858 95,732
Fund balances
Nonspendable 214 – – – 214
Restricted 281,910 – 564,412 52,417 898,739
Committed – 169,388 – – 169,388
Total fund balances 282,124 169,388 564,412 52,417 1,068,341
Total liabilities and fund balances 285,940$ 169,388$ 564,470$ 144,275$ 1,164,073$
CITY OF ARDEN HILLS
Nonmajor Special Revenue Funds
Subcombining Balance Sheet
as of December 31, 2017
-56-
Total
EDA EDA Nonmajor
TIF TIF Special
EDA District District Revenue
Cable Revolving No. 3 No. 4 Funds
Revenues
Taxes
Tax increments –$ –$ 87,062$ 203,997$ 291,059$
Earnings on investments 4,436 2,602 7,024 274 14,336
Franchise taxes 109,070 – – – 109,070
Total revenues 113,506 2,602 94,086 204,271 414,465
Expenditures
Current
General government 113,148 – – – 113,148
Economic development – – 1,549 185,105 186,654
Total expenditures 113,148 – 1,549 185,105 299,802
Net changes in fund balances 358 2,602 92,537 19,166 114,663
Fund balances – beginning 281,766 166,786 471,875 33,251 953,678
Fund balances – ending 282,124$ 169,388$ 564,412$ 52,417$ 1,068,341$
CITY OF ARDEN HILLS
Nonmajor Special Revenue Funds
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2017
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NONMAJOR CAPITAL PROJECT FUNDS
The City had the following nonmajor capital project funds during the year:
Parks Fund – This fund was established for park/trail acquisition and development. Revenue for this
fund comes from developer park dedication fees, contributions, state grants, and investment interest.
Public Safety Capital Equipment Fund – This fund was established to account for resources
designated to be used for the City’s share of public safety equipment through contracts with the Lake
Johanna Volunteer Fire Department, Inc. and Ramsey County Sheriff’s Department.
TCAAP Fund – This fund was established to account for resources designated to be used for the City’s
share of capital costs related to the approximately 430-acre TCAAP site purchased by Ramsey County.
Total
Public Safety Nonmajor
Capital Capital
Parks Equipment TCAAP Project Funds
Assets
Cash and investments –$ 61,217$ –$ 61,217$
Accrued interest receivable – 290 – 290
Accounts receivable – 522 – 522
Total assets –$ 62,029$ –$ 62,029$
Liabilities
Accounts payable –$ 4,093$ –$ 4,093$
Interfund payable 29,516 – 150,362 179,878
Total liabilities 29,516 4,093 150,362 183,971
Fund balances (deficits)
Assigned – 57,936 – 57,936
Unassigned (29,516) – (150,362) (179,878)
Total fund balances (deficits)(29,516) 57,936 (150,362) (121,942)
Total liabilities and fund balances –$ 62,029$ –$ 62,029$
CITY OF ARDEN HILLS
Nonmajor Capital Project Funds
Subcombining Balance Sheet
as of December 31, 2017
-58-
Total
Public Safety Nonmajor
Capital Capital
Parks Equipment TCAAP Project Funds
Revenues
Earnings on investments –$ 3,054$ –$ 3,054$
Other 6,500 21,538 – 28,038
Total revenues 6,500 24,592 – 31,092
Expenditures
Capital outlay
Public safety – 100,215 – 100,215
Economic development – – 5,873 5,873
Total expenditures – 100,215 5,873 106,088
Net changes in fund balances 6,500 (75,623) (5,873) (74,996)
Fund balances (deficits) – beginning (36,016) 133,559 (144,489) (46,946)
Fund balances (deficits) – ending (29,516)$ 57,936$ (150,362)$ (121,942)$
CITY OF ARDEN HILLS
Nonmajor Capital Project Funds
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances
Year Ended December 31, 2017
-59-
Variance With
Original Budget Final Budget Actual Amounts Final Budget
Revenues
Earnings on investments 6,000$ 6,000$ 4,436$ (1,564)$
Franchise taxes 94,000 94,000 109,070 15,070
Total revenues 100,000 100,000 113,506 13,506
Expenditures
Current
General government
Personal services 50,410 50,410 47,964 2,446
Other services and charges 98,948 98,948 65,184 33,764
Capital outlay
General government 2,000 2,000 – 2,000
Total expenditures 151,358 151,358 113,148 38,210
Net change in fund balances (51,358)$ (51,358)$ 358 51,716$
Fund balances – beginning 281,766
Fund balances – ending 282,124$
CITY OF ARDEN HILLS
Special Revenue Fund – Cable Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2017
-60-
Variance With
Original Budget Final Budget Actual Amounts Final Budget
Revenues
Earnings on investments 3,000$ 3,000$ 2,602$ (398)$
Net change in fund balances 3,000$ 3,000$ 2,602 (398)$
Fund balances – beginning 166,786
Fund balances – ending 169,388$
CITY OF ARDEN HILLS
Special Revenue Fund – EDA Revolving Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2017
-61-
Variance With
Original Budget Final Budget Actual Amounts Final Budget
Revenues
Taxes
Tax increments 65,000$ 65,000$ 87,062$ 22,062$
Earnings on investments 7,000 7,000 7,024 24
Total revenues 72,000 72,000 94,086 22,086
Expenditures
Current
Economic development
Other services and charges 4,725 4,725 1,549 3,176
Net change in fund balances 67,275$ 67,275$ 92,537 25,262$
Fund balances – beginning 471,875
Fund balances – ending 564,412$
CITY OF ARDEN HILLS
Special Revenue Fund – EDA TIF District No. 3 Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2017
-62-
Variance With
Original Budget Final Budget Actual Amounts Final Budget
Revenues
Taxes
Tax increments 150,000$ 150,000$ 203,997$ 53,997$
Earnings (charges) on investments 650 650 274 (376)
Total revenues 150,650 150,650 204,271 53,621
Expenditures
Current
Economic development
Other services and charges 139,525 139,525 185,105 (45,580)
Net change in fund balances 11,125$ 11,125$ 19,166 8,041$
Fund balances – beginning 33,251
Fund balances – ending 52,417$
CITY OF ARDEN HILLS
Special Revenue Fund – EDA TIF District No. 4 Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2017
-63-
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INTERNAL SERVICE FUNDS
The City had the following internal service funds during the year:
Risk Management Fund – This fund was established to account for the payment of property, liability,
and workers’ compensation insurance deductibles and funds wellness activities for all departments.
Engineering Fund – This fund was established to account for the costs related to engineering services.
All costs are compiled in this fund and charged out to the departments based on usage.
Central Garage Fund – This fund was established to account for certain public works department costs
related to streets, parks, water, sanitary sewer, and surface water management . All costs are compiled in
this fund and charged out to the departments based on usage.
Technology Fund – This fund was established to account for costs related to technology. All costs are
compiled in this fund and charged out to the departments based on usage.
Total
Risk Central Internal
Management Engineering Garage Technology Service Funds
Assets
Current assets
Cash and investments 397,865$ 6,761$ 16,834$ –$ 421,460$
Accrued interest receivable 1,445 58 93 – 1,596
Prepaid items – – 23 – 23
Total assets 399,310 6,819 16,950 – 423,079
Liabilities
Current liabilities
Accounts payable – 13,559 13,580 8,753 35,892
Salaries payable 190 117 199 101 607
Interfund payable – – – 15,992 15,992
Due to other governmental units – – 29,555 6,593 36,148
Compensated absences payable 333 122 310 263 1,028
Total current liabilities 523 13,798 43,644 31,702 89,667
Noncurrent liabilities
Compensated absences payable
(net of current portion)111 41 103 88 343
Total liabilities 634 13,839 43,747 31,790 90,010
Net position
Unrestricted 398,676$ (7,020)$ (26,797)$ (31,790)$ 333,069$
CITY OF ARDEN HILLS
Combining Statement of Net Position
Internal Service Funds
as of December 31, 2017
-64-
Total
Risk Central Internal
Management Engineering Garage Technology Service Funds
Operating revenues
Charges for services 334,983$ 71,719$ 244,883$ 147,156$ 798,741$
Miscellaneous 6,536 175 – – 6,711
Total operating revenues 341,519 71,894 244,883 147,156 805,452
Operating expenses
Personal services 8,650 5,063 9,137 6,694 29,544
Supplies and maintenance – – 138,052 10,077 148,129
Other services and charges 5,452 5,440 92,340 5,715 108,947
Purchased services 340,818 137,505 11,319 129,346 618,988
Total operating expenses 354,920 148,008 250,848 151,832 905,608
Operating income (loss)(13,401) (76,114) (5,965) (4,676) (100,156)
Nonoperating revenues (expenses)
Earnings (charges) on investments 4,797 1,499 (180) – 6,116
Change in net position (8,604) (74,615) (6,145) (4,676) (94,040)
Net position – beginning 407,280 67,595 (20,652) (27,114) .427,109
Net position – ending 398,676$ (7,020)$ (26,797)$ (31,790)$ 333,069$
CITY OF ARDEN HILLS
Combining Statement of Revenues, Expenses,
and Changes in Net Position
Internal Service Funds
Year Ended December 31, 2017
-65-
Total
Risk Central Internal
Management Engineering Garage Technology Service Funds
Cash flows from operating activities
Receipts from customers and users 341,519$ 71,894$ 244,883$ 147,156$ 805,452$
Payments to suppliers (346,270) (135,303) (216,539) (114,896) (813,008)
Payments to employees (9,072) (5,611) (9,262) (6,831) (30,776)
Net cash flows from operating activities (13,823) (69,020) 19,082 25,429 (38,332)
Cash flows from noncapital financing activities
Cash paid to other funds – – (1,975) (25,429) (27,404)
Cash flows from investing activities
Earnings (charges) on investments 4,564 1,765 (273) – 6,056
Net change in cash and cash equivalents (9,259) (67,255) 16,834 – (59,680)
Cash and cash equivalents – beginning 407,124 74,016 – – 481,140
Cash and cash equivalents – ending 397,865$ 6,761$ 16,834$ –$ 421,460$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss)(13,401)$ (76,114)$ (5,965)$ (4,676)$ (100,156)$
Adjustments to reconcile operating income
(loss) to net cash provided (used) by
operating activities
Decrease (increase) in prepaid items – – 227 26,642 26,869
Increase (decrease) in accounts payable – 7,642 7,545 3,355 18,542
Increase (decrease) in salaries payable 11 (243) (11) 101 (142)
Increase (decrease) in due to other
governments – – 17,400 245 17,645
Increase (decrease) in compensated
absences payable (433) (305) (114) (238) (1,090)
Total adjustments (422) 7,094 25,047 30,105 61,824
Net cash flows from operating activities (13,823)$ (69,020)$ 19,082$ 25,429$ (38,332)$
CITY OF ARDEN HILLS
Combining Statement of Cash Flows
Internal Service Funds
Year Ended December 31, 2017
-66-
STATISTICAL SECTION (UNAUDITED)
TAB
STATISTICAL SECTION
(UNAUDITED)
This part of the City’s Comprehensive Annual Financial Report (CAFR) presents detailed information as
a context for understanding this year’s financial statements, note disclosures, and supplementary
information. This information has not been audited by the independent auditor.
The contents of the statistical section include:
Financial Trends – These tables contain trend information that may assist the reader in assessing the
City’s current financial performance by placing it in historical perspective.
Revenue Capacity – These schedules contain information to assist the reader in assessing the City’s
most significant local revenue source—property taxes.
Debt Capacity – These tables present information that may assist the reader in analyzing the
affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future.
Demographic and Economic Information – These tables offer economic and demographic
indicators that are commonly used for financial analysis and that can assist the reader in
understanding the City’s present and ongoing financial status.
Operating Information – These tables contain service and infrastructure indicators that can assist
the reader in understanding how the information in the City’s financial report relates to the services
the City provides and the activities it performs.
Source – Unless otherwise noted, the information in these tables is derived from the CAFR for the
relevant year.
2008 2009 2010 2011
Governmental activities
Investment in capital assets 13,859,332$ 14,789,291$ 16,341,354$ 17,498,478$
Restricted 836,195 1,060,973 1,329,092 1,694,212
Unrestricted 9,304,608 9,176,652 9,008,528 9,133,279
Total governmental activities net position 24,000,135$ 25,026,916$ 26,678,974$ 28,325,969$
Business-type activities
Investment in capital assets 10,449,932$ 10,507,344$ 10,530,204$ 10,961,855$
Unrestricted 1,977,168 2,171,942 2,621,579 3,248,534
Total business-type activities net position 12,427,100$ 12,679,286$ 13,151,783$ 14,210,389$
Primary government
Investment in capital assets 24,309,264$ 25,296,635$ 26,871,558$ 28,460,333$
Restricted 836,195 1,060,973 1,329,092 1,694,212
Unrestricted 11,281,776 11,348,594 11,630,107 12,381,813
Total primary government net position 36,427,235$ 37,706,202$ 39,830,757$ 42,536,358$
Note:The City implemented GASB Statement No.68 in fiscal 2015.The City reported a change in accounting principle as a
result of implementing this standard that decreased unrestricted net position. Prior year information has not been restated.
Fiscal Year
CITY OF ARDEN HILLS
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-67-
2012 2013 2014 2015 2016 2017
17,167,531$ 17,435,976$ 18,837,904$ 24,909,453$ 25,178,721$ 22,750,377$
1,788,007 896,106 917,300 675,052 786,678 898,739
9,738,832 10,274,835 11,472,102 8,765,793 8,249,560 10,678,219
28,694,370$ 28,606,917$ 31,227,306$ 34,350,298$ 34,214,959$ 34,327,335$
12,360,674$ 14,356,782$ 14,464,713$ 16,167,536$ 16,306,381$ 16,292,000$
2,403,645 1,158,470 1,793,112 238,381 1,116,957 1,298,744
14,764,319$ 15,515,252$ 16,257,825$ 16,405,917$ 17,423,338$ 17,590,744$
29,528,205$ 31,792,758$ 33,302,617$ 41,076,989$ 41,485,102$ 39,042,377$
1,788,007 896,106 917,300 675,052 786,678 898,739
12,142,477 11,433,305 13,265,214 9,004,174 9,366,517 11,976,963
43,458,689$ 44,122,169$ 47,485,131$ 50,756,215$ 51,638,297$ 51,918,079$
-68-
2008 2009 2010 2011
Expenses
Governmental activities
General government 1,640,599$ 1,622,425$ 1,232,225$ 1,199,609$
Public safety 1,582,531 1,648,349 1,585,447 1,736,422
Public works 538,869 436,200 636,406 614,761
Parks and recreation 710,298 734,148 732,824 811,533
Economic development 43,791 48,322 3,311 6,862
Interest on long-term debt 60,233 53,496 46,470 39,146
Total governmental activities 4,576,321 4,542,940 4,236,683 4,408,333
Business-type activities
Water 1,510,998 1,648,815 1,678,954 1,573,669
Sewer 1,143,557 1,268,018 1,367,429 1,454,302
Surface water management 219,483 269,562 321,693 353,330
Recycling 113,709 118,197 129,139 137,622
Total business-type activities 2,987,747 3,304,592 3,497,215 3,518,923
Total primary government 7,564,068$ 7,847,532$ 7,733,898$ 7,927,256$
Program revenues
Governmental activities
Charges for services
General government 298,395$ 341,736$ 271,972$ 353,224$
Public safety 221,614 307,306 207,876 385,133
Public works – – – –
Parks and recreation 94,293 91,305 98,395 110,830
Operating grants and contributions 599,862 210,140 275,869 410,228
Capital grants and contributions 141,325 705,858 1,171,451 946,122
Total governmental activities 1,355,489 1,656,345 2,025,563 2,205,537
Business-type activities
Charges for services
Water 1,327,075 1,709,639 1,824,086 1,950,932
Sewer 1,121,188 1,313,897 1,574,493 1,852,364
Surface water management 473,856 503,070 518,672 531,845
Recycling 83,235 87,700 121,892 142,858
Operating grants and contributions 20,301 19,866 20,114 20,846
Capital grants and contributions – – – 140,428
Total business-type activities 3,025,655 3,634,172 4,059,257 4,639,273
Total primary government 4,381,144$ 5,290,517$ 6,084,820$ 6,844,810$
Fiscal Year
CITY OF ARDEN HILLS
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-69-
2012 2013 2014 2015 2016 2017
1,186,404$ 1,133,379$ 1,294,830$ 1,281,557$ 1,384,908$ 1,322,106$
1,900,443 1,956,260 1,887,877 1,978,210 2,047,961 2,158,835
894,954 944,104 852,109 194,667 800,157 3,512,218
838,138 807,363 711,174 711,181 751,910 759,737
61,770 403,143 522,193 733,528 361,029 276,841
31,287 25,767 11,004 817 – –
4,912,996 5,270,016 5,279,187 4,899,960 5,345,965 8,029,737
1,983,200 1,843,530 1,893,217 1,803,405 1,833,468 2,159,874
1,595,379 1,560,796 1,506,927 1,587,808 1,513,219 1,780,260
388,406 453,727 432,788 489,377 468,965 481,026
142,114 144,541 150,417 239,727 141,190 147,919
4,109,099 4,002,594 3,983,349 4,120,317 3,956,842 4,569,079
9,022,095$ 9,272,610$ 9,262,536$ 9,020,277$ 9,302,807$ 12,598,816$
377,621$ 338,546$ 275,735$ 271,991$ 299,692$ 314,166$
376,576 341,114 366,452 628,573 735,730 915,632
– – 4,973 5,205 4,535 7,029
118,179 113,374 116,951 119,338 134,579 123,550
291,712 343,486 300,536 389,219 308,900 2,031,474
134,710 326,213 2,302,439 3,080,749 462,105 448,945
1,298,798 1,462,733 3,367,086 4,495,075 1,945,541 3,840,796
2,285,161 2,271,072 2,132,191 2,099,242 2,165,773 2,127,452
1,739,123 1,798,889 1,857,272 1,855,802 1,989,066 1,796,144
567,361 639,747 762,884 782,501 812,044 834,973
121,688 122,666 130,369 129,030 134,739 151,272
19,802 19,694 19,611 124,228 26,323 24,655
25,506 156,585 – – 59,248 –
4,758,641 5,008,653 4,902,327 4,990,803 5,187,193 4,934,496
6,057,439$ 6,471,386$ 8,269,413$ 9,485,878$ 7,132,734$ 8,775,292$
(continued)
-70-
2008 2009 2010 2011
Net (expense) revenue
Governmental activities (3,220,832)$ (2,886,595)$ (2,211,120)$ (2,202,796)$
Business-type activities 37,908 329,580 562,042 1,120,350
Total primary government (3,182,924)$ (2,557,015)$ (1,649,078)$ (1,082,446)$
General revenues and other changes in
net position
Governmental activities
Taxes
Property taxes 2,727,372$ 2,860,820$ 2,836,982$ 2,920,078$
Tax increment collections 506,808 540,408 566,725 342,109
Franchise taxes 60,520 104,148 85,131 90,123
Unrestricted investment earnings 433,894 275,500 231,340 307,769
Gain on sale of capital assets – – – 46,712
Transfers – 132,500 143,000 143,000
Total governmental activities 3,728,594 3,913,376 3,863,178 3,849,791
Business-type activities
Unrestricted investment earnings 72,307 55,106 53,455 81,256
Transfers – (132,500) (143,000) (143,000)
Total business-type activities 72,307 (77,394) (89,545) (61,744)
Total primary government 3,800,901$ 3,835,982$ 3,773,633$ 3,788,047$
Change in net position
Governmental activities 507,762$ 1,026,781$ 1,652,058$ 1,646,995$
Business-type activities 110,215 252,186 472,497 1,058,606
Total primary government 617,977$ 1,278,967$ 2,124,555$ 2,705,601$
Fiscal Year
CITY OF ARDEN HILLS
Changes in Net Position
Last Ten Fiscal Years (continued)
(Accrual Basis of Accounting)
-71-
2012 2013 2014 2015 2016 2017
(3,614,198)$ (3,807,283)$ (1,912,101)$ (404,885)$ (3,400,424)$ (4,188,941)$
649,542 1,006,059 918,978 870,486 1,230,351 365,417
(2,964,656)$ (2,801,224)$ (993,123)$ 465,601$ (2,170,073)$ (3,823,524)$
3,095,488$ 3,094,036$ 3,182,331$ 3,191,426$ 3,278,287$ 3,526,347$
431,060 466,280 565,422 697,898 242,544 295,788
94,532 96,820 103,711 72,837 132,548 109,070
218,519 (168,071) 450,261 245,540 155,191 139,347
– – – – – –
143,000 230,765 230,765 230,765 230,765 230,765
3,982,599 3,719,830 4,532,490 4,438,466 4,039,335 4,301,317
47,388 (24,361) 54,360 35,857 17,835 32,754
(143,000) (230,765) (230,765) (230,765) (230,765) (230,765)
(95,612) (255,126) (176,405) (194,908) (212,930) (198,011)
3,886,987$ 3,464,704$ 4,356,085$ 4,243,558$ 3,826,405$ 4,103,306$
368,401$ (87,453)$ 2,620,389$ 4,033,581$ 638,911$ 112,376$
553,930 750,933 742,573 675,578 1,017,421 167,406
922,331$ 663,480$ 3,362,962$ 4,709,159$ 1,656,332$ 279,782$
-72-
THIS PAGE INTENTIONALLY LEFT BLANK
Tax
Property Increment Franchise
Fiscal Year Taxes Collections Taxes Total
2008 2,727,372$ 506,808$ 60,520$ 3,294,700$
2009 2,860,820 540,408 104,148 3,505,376
2010 2,836,982 566,725 85,131 3,488,838
2011 2,920,078 342,109 90,123 3,352,310
2012 3,095,488 431,060 94,532 3,621,080
2013 3,094,036 466,280 96,820 3,657,136
2014 3,182,331 565,422 103,711 3,851,464
2015 3,191,426 697,898 72,837 3,962,161
2016 3,278,287 242,544 132,548 3,653,379
2017 3,526,347 295,788 109,070 3,931,205
CITY OF ARDEN HILLS
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(Accrual Basis of Accounting)
-73-
2008 2009 2010 2011
General Fund
Reserved 16,586$ 24,304$ 32,587$ –$
Unreserved 1,834,179 1,797,956 1,730,605 –
Nonspendable – – – 29,063
Assigned – – – 106,592
Unassigned – – – 2,015,680
Total General Fund 1,850,765$ 1,822,260$ 1,763,192$ 2,151,335$
All other governmental funds
Reserved 838,308$ 1,063,087$ 1,331,259$ –$
Unreserved, reported in
Special revenue funds 765,771 733,626 468,786 –
Capital project funds 7,773,523 7,242,406 7,212,442 –
Nonspendable – – – –
Restricted – – – 1,696,379
Committed – – – 264,016
Assigned – – – 6,993,767
Unassigned – – – (542,821)
Total all other governmental funds 9,377,602$ 9,039,119$ 9,012,487$ 8,411,341$
Note: The City implemented GASB Statement No. 54 in fiscal 2011. Prior year information has not been restated.
Fiscal Year
CITY OF ARDEN HILLS
Fund Balances of Governmental Funds
Last Ten Fiscal Years
-74-
2012 2013 2014 2015 2016 2017
–$ –$ –$ –$ –$ –$
– – – – – –
22,326 22,754 21,059 23,983 26,271 288,519
126,134 119,440 139,721 251,497 257,771 285,548
2,202,459 2,223,512 2,185,162 2,806,930 2,660,771 3,065,250
2,350,919$ 2,365,706$ 2,345,942$ 3,082,410$ 2,944,813$ 3,639,317$
–$ –$ –$ –$ –$ –$
– – – – – –
– – – – – –
628 910 395 845 214 664
1,799,380 888,707 917,300 675,052 786,678 898,739
452,496 421,989 471,161 449,898 450,433 471,996
6,863,115 7,111,210 7,346,178 3,902,898 3,872,938 6,138,393
(303,339) (134,316) (150,893) (216,521) (217,607) (439,147)
8,812,280$ 8,288,500$ 8,584,141$ 4,812,172$ 4,892,656$ 7,070,645$
-75-
Revenues
Taxes
General property tax
Tax increments
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Earnings on investments
Franchise taxes
Antenna rental fees
Miscellaneous/other
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Economic development
Capital outlay
General government
Public safety
Public works
Parks and recreation
Economic development
Debt service
Principal
Interest and paying agent fees
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures 6.56 %6.52 %7.12 %6.99 %
2011
2,913,248$
342,109
561,238
566,725
388,768
2,867,028$
2010
(66,044)
143,000
–
156,543
1,526,819
282,019
(677,121)
809,621
53,425
1,088,586
5,683,868
–
128,037
6,035,747 5,831,818
1,063,181
64,923
245,000
39,325
123,668$
(576,791)
46,712
189,712
(85,700)$
–
143,000
(228,700)
719,791
661,746
6,862
684,492
91,579
–
410,585$
–
–
4,799,281
220,000
(366,988)$
132,500
–
(499,488)
60,520 104,148
5,209,866
519,154
5,184,380
(1,045,100)
1,045,100
410,585
331,650
1,504,149
1,420,785
157,451
72,784
43,791
562,283
265,448
–
110,544
123,080
60,100
606,822
285,028
48,322
225,000
429,991
246,416
419,197
65,759
322,978
27,013
231,340
29,593
296,249
90,123
72,351
365,259
5,765,774
85,131
118,096
5,807,047
147,187
63,009
1,283,267
46,525
1,561,046
322,793
605,210
–
865,334
1,141,300
235,000
18,927
108,575
3,311
1,060,744
1,640,801
1,127,726
273,165
2009
275,500
26,111
332,358
130,622
318,849
2,706,745$
228,776
145,288
282,553
30,189
433,894
2,835,253$
223,155
506,808
410,935
540,408
255,265
878,944
Fiscal Year
2008
CITY OF ARDEN HILLS
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
-76-
6.21 % 5.82 % 5.73 %6.20 %– %– %
20152014
3,210,025$
565,422
304,315
2013
3,086,064$
466,280
1,017,328
68,493
2012
3,087,160$
431,060
252,879
5,312,405
90,222
9,545
170,511
94,532
75,745
113,974 43,777
382,366
382,039
5,129,294
1,054,852
6,982,261
1,054,662
1,728,669
377,101
679,282
391,711
675,073
89,482
275,877$
231,025
270,000
14,773
6,937,149
45,112
230,765
–
–
230,765
5,559
66,079
1,833,535
18,883
1,826,098
580,872
648,214
286,991
1,155,120
316,859
410,995
1,408,240
400,224
29,569
433,402
103,711
327,727
32,055
(164,535)
96,820
76,574 110,144
1,779,549
255,000
457,523
143,000
–
–
143,000
600,523$
8,847
169,894
376,872
109,761
31,698
4,854,882
5,330
57,766
260,000
23,520
5,869,052
328,248
(739,758)
230,765
–
–
230,765
(508,993)$
189,534
241,463
7,995,462
1,143,037
1,920,280
336,398
573,587
249,484
3,203,004$
697,898
908,964
518,846
1,396,269
496,908
32,792
236,947
72,837
–
230,765
(3,035,501)$
–
52,936
6,198,264
–
502,842
280,000
4,900
11,261,728
(3,266,266)
230,765
–
–
230,765
717,137$
–
47,880
786,873
–
151,306
–
–
5,493,478
486,372
230,765
–
132,548
123,815
94,442
5,979,850
1,194,579
1,981,506
479,814
621,832
229,688
2016
3,260,537$
242,544
373,415
598,686
396,275
590,141
29,989
133,231
577,041
31,868
148,679
415,070
143,085
450,589
33,192
215,119
–
471,590
2,872,493$
–
100,215
734,411
337,808
7,520
–
–
5,754,643
2,400,903
471,590
–
109,070
128,765
164,256
8,155,546
1,189,500
2,058,037
443,633
618,614
264,905
2017
3,541,705$
295,788
308,990
729,197
2,124,414
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Fiscal Year General Tax Increment Franchise Tax Total
2008 2,706,745$ 506,808$ 60,520$ 3,274,073$
2009 2,835,253 540408 104,148 3,479,809
2010 2,867,028 566,725 85,131 3,518,884
2011 2,913,248 342,109 90,123 3,345,480
2012 3,087,160 431,060 94,532 3,612,752
2013 3,086,064 466,280 96,820 3,649,164
2014 3,210,025 565,422 103,711 3,879,158
2015 3,203,004 697,898 72,837 3,973,739
2016 3,260,537 242,544 132,548 3,635,629
2017 3,541,705 295,788 109,070 3,946,563
CITY OF ARDEN HILLS
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Property Tax
-78-
Fiscal Year Less Tax
Ended Real Personal Total Increment
December 31,Property Property Tax Capacity District
2008 16,215,348$ *140,000$ 16,355,348$ 562,501$
2009 16,414,454 *153,000 16,567,454 583,017
2010 15,659,356 164,655 15,824,011 590,269
2011 14,606,183 178,841 14,785,024 531,415
2012 13,848,510 190,989 14,039,499 436,893
2013 13,262,619 213,949 13,476,568 438,897
2014 13,413,316 216,679 13,629,995 510,906
2015 14,162,432 224,125 14,386,557 684,465
2016 14,364,828 236,271 14,601,099 207,526
2017 14,671,678 262,904 14,934,582 256,243
CITY OF ARDEN HILLS
Tax Capacity Value and Estimated Market Value of Taxable Property
Last Ten Fiscal Years
Source: Ramsey County Assessor
* The breakdown between Real and Personal Property was estimated for 2008 and 2009.
-79-
Less Fiscal Adjusted Estimated
Disparity Tax Capacity Market
Contribution (ATC) Value Value (EMV)
1,555,117$ 14,237,730$ 19.59 %1,232,098,300$ 1.16 %
2,865,756 13,118,681 20.53 1,229,529,900 1.07
3,096,380 12,137,362 22.67 1,171,068,100 1.04
2,921,351 11,332,258 24.19 1,109,327,600 1.02
2,505,319 11,097,287 25.54 1,043,419,700 1.06
2,474,502 10,563,169 27.93 1,035,471,700 1.02
2,375,745 10,743,344 27.95 1,055,153,800 1.02
2,303,582 11,398,510 27.29 1,122,428,000 1.02
2,280,682 12,112,891 26.54 1,144,221,600 1.06
2,365,021 12,313,318 27.21 1,173,397,600 1.05
Direct Tax Rate
Total
of EMV
ATC as a
Percentage
-80-
19.585 %44.023 %20.030 %– %83.638 %
20.534 46.546 22.937 – 90.017
22.672 50.248 24.560 7.953 105.433
24.187 54.678 25.573 8.354 112.792
25.544 61.316 29.044 9.955 125.859
27.931 65.240 29.444 10.200 132.815
27.950 63.735 29.734 9.825 131.244
27.294 58.922 27.378 9.179 122.773
26.539 58.885 26.245 9.052 120.721
27.211 55.850 25.305 8.558 116.924
(1)
Note:
Source:Ramsey County Assessor
School
Rate
2008
Fiscal Year
Rates for special taxing districts were not readily available prior to 2010.
CITY OF ARDEN HILLS
Property Tax Rates
Last Ten Fiscal Years
Direct and Overlapping (1) Governments
Special
Ramsey
Districts
Overlapping RatesDirect Rate
Operating Taxing
City
Overlapping rates are those of local and county governments that apply to property owners within the City.Not all
overlapping rates apply to all city property owners (e.g., the rates for special districts apply only to the proportion of
the City’s property owners whose property is located within the geographic boundaries of the special district).
County
2010
2009
2016
2017
2013
2015
Total
2011
2012
District
2014
-81-
Taxable Taxable
Capacity Value Rank Capacity Value Rank
Cardiac Pacemakers, Inc.1,153,472$ 1 7.72 %1,699,250$ 1 10.39 %
Space Center Arden Hills, LLC 381,454 2 2.55 – – –
St. Paul Fire and Marine Insurance Company 371,272 3 2.49 – – –
NSP 361,208 4 2.42 303,250 9 1.85
Land O’Lakes, Inc.360,146 5 2.41 368,728 5 2.25
Presbyterian Homes, Inc.293,845 6 1.97 – – –
CSM Corporation 234,878 7 1.57 471,218 2 2.88
LSREF4 BISON LLC 184,002 8 1.23 – – –
RAM Development, LLC 166,286 9 1.11 – – –
Arden Hills Industrial, LLC 132,608 10 0.89 407,634 3 2.49
Mutual Service Insurance Company – – – 399,138 4 2.44
St. Paul Properties, Inc.– – – 349,956 6 2.14
Inland Shannon Square Cub, LLC – – – 346,252 7 2.12
IRET Properties, LP – – – 325,250 8 1.99
Pharmacia Deltec, Inc.– – – 265,040 10 1.62
Total 3,639,171$ 24.37 %4,935,716$ 30.18 %
Total capacity value 14,934,582$ 16,355,348$
Source:Ramsey County Assessor
Taxpayer
Percentage
of Total City
Value
Percentage
of Total City
Value
Capacity
CITY OF ARDEN HILLS
Principal Property Taxpayers
Current Year and Nine Years Ago
2017
Capacity
2008
-82-
Taxes Collections
Fiscal Year Levied in
Ended for the Additions/Subsequent
December 31,Fiscal Year Amount (Abatements)Years Amount
2008 2,744,767$ 2,709,036$ 98.70 %(24,859)$ 10,872$ 2,744,767$ 100.00 %
2009 2,892,774 2,829,900 97.83 (47,523) 15,351 2,892,774 100.00
2010 2,953,128 2,890,946 97.89 (29,095) 33,087 2,953,128 100.00
2011 3,040,964 3,008,068 98.92 (2,326) 28,973 3,039,367 99.95
2012 3,096,994 3,045,572 98.34 (11,376) 38,642 3,095,590 99.95
2013 3,191,230 3,117,083 97.68 (38,542) 35,605 3,191,230 100.00
2014 3,257,456 3,219,641 98.84 (19,251) 17,175 3,256,067 99.96
2015 3,359,775 3,295,723 98.09 (75,019) (13,321) 3,357,421 99.93
2016 3,478,775 3,408,642 97.98 (79,442) (11,060) 3,477,024 99.95
2017 3,641,290 3,562,166 97.83 (66,924) – 3,629,090 99.66
Source: Ramsey County Assessor
CITY OF ARDEN HILLS
Last Ten Fiscal Years
Property Tax Levies and Collections
Collected Within the
Fiscal Year of the Levy
Percentage
of Levy
Percentage
of Levy
Total Collections to Date
-83-
Governmental
Activities
General
Obligation
TIF Bonds Per Capita (1)
1,770,000$ 0.52 %181$
1,545,000 0.40 152
1,310,000 0.37 137
1,065,000 0.30 114
810,000 0.24 84
550,000 0.17 59
280,000 0.08 29
(2)– – –
(2)– – –
(2)– – –
(1)
(2)
Note:
Percentage
Fiscal Year
CITY OF ARDEN HILLS
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Personal Income (1)
of
2010
2009
2008
2015
2014
2013
See the Schedule of Demographic and Economic Statistics for personal income and population data.
The City made the final bond payment in 2015. There is no outstanding bonded debt as of year-end.
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
2012
2011
2016
2017
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Estimated
Net Debt Share of
Governmental Unit Outstanding Overlapping Debt
Debt repaid with property taxes
Ramsey County 96,894,334$ 2.47 %2,398,130$
County library 29,071,681 4.90 1,423,602
Independent School District No. 621 86,370,055 13.45 11,617,247
Independent School District No. 623 44,445,765 0.78 344,694
Intermediate School District No. 916 76,887,597 4.98 3,825,254
Metropolitan Council 1,308,024,397 0.36 4,744,441
Total overlapping debt 24,353,368
City of Arden Hills – – –
Total direct and overlapping debt 24,353,368$
(1)
Note:
Source:
The percentage of overlapping debt applicable is estimated using taxable assessed property values.Applicable
percentages were estimated by determining the portion of the county’s taxable assessed value that is within the
City’s boundaries and dividing it by the county’s total taxable assessed value.
Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City.This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
residents and businesses of the City.This process recognizes that,when considering the City’s ability to issue and
repay long-term debt,the entire debt burden borne by the residents and businesses should be taken into account.
However,this does not imply that every taxpayer is a resident and,therefore,responsible for repaying the debt of
each overlapping government.
Assessed value data used to estimate applicable percentages provided by the Ramsey County Assessor.Debt
outstanding data provided by the county.
CITY OF ARDEN HILLS
Direct and Overlapping Governmental Activities Debt
as of December 31, 2017
Estimated
Percentage
Applicable (1)
-85-
Fiscal Year
2008 2009 2010 2011
36,962,949$ 36,885,897$ 35,132,043$ 33,279,828$
– – – –
36,962,949$ 36,885,897$ 35,132,043$ 33,279,828$
Total net debt applicable to limit
– – – –
Note:
Debt limit
Total net debt applicable to limit
Legal debt margin
CITY OF ARDEN HILLS
Legal Debt Margin Information
Last Ten Fiscal Years
as a percentage of debt limit
Under state finance law,the City’s outstanding general obligation debt should not exceed 3 percent of total market value.
By law,the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general
obligation bonds. Tax increment bonds are not subject to the debt limit; therefore, they are not included.
-86-
2012 2013 2014 2015 2016 2017
31,302,591$ 31,064,151$ 31,654,614$ 33,672,840$ 34,326,648$ 35,201,928$
– – – – – –
31,302,591$ 31,064,151$ 31,654,614$ 33,672,840$ 34,326,648$ 35,201,928$
– – – – – –
Total estimated market value 1,173,397,600$
Debt limit (3% of market value)35,201,928
Debt applicable to limit
General obligation bonds –
Less amount set aside for repayment
of general obligation debt –
Total net debt applicable to limit –
Legal debt margin 35,201,928$
Legal Debt Margin Calculation for Fiscal Year 2017
-87-
Per Capita Arden Hills
Personal Total Personal Median School
Population (1)Income (3)Income (4)Age (6)Enrollment (5)
9,796 34,691$ 339,833,036$ 35.0 10,136 5.3 %
10,137 37,918 384,374,766 35.0 10,071 7.6
9,552 36,806 351,570,912 36.2 10,032 7.5
9,381 37,371 350,577,351 34.8 10,090 6.6
9,597 35,375 339,493,875 34.8 10,234 5.7
9,359 33,688 315,285,992 34.8 10,480 4.9
9,652 34,481 332,810,612 36.9 10,734 4.0
9,847 35,222 346,831,034 36.0 11,011 3.6
9,966 35,994 358,716,204 36.0 11,401 3.6
10,066 36,714 369,549,433 36.3 11,556 3.3
Sources:
(1)
(2)
(3)
(4)
(5)
(6)
Enrollment numbers are based off of Independent School District No.621,Mounds View,from
the Minnesota Department of Education’s website.
Median age is from www.city-data.com website.
Per capita personal income is obtained from the Metropolitan Council website. 2017 is estimated by city staff.
Rate (2)
Population data is obtained from the Metropolitan Council website. 2017 is estimated by city staff.
2013
Personal income is calculated based on the population and per capita personal income.
Fiscal Year
2014
Unemployment rate information is from DEED for Ramsey County.
2010
2008
2011
2012
2017
2015
CITY OF ARDEN HILLS
Demographic and Economic Statistics
Last Ten Fiscal Years
2016
2009
Unemployment
-88-
Employees Rank Employees Rank
Boston Scientific 2,200 1 19.5 %2,000 1 14.1 %
Bethel University 970 2 8.6 – – –
University of Northwestern 960 3 8.5 – – –
Land O’Lakes, Inc.850 4 7.5 800 2 5.6
Presbyterian Homes of Arden Hills 500 5 4.4 500 5 3.5
Delkor 160 6 1.4 – – –
International Paper 120 7 1.1 – – –
Country and MSI Insurance – – – 640 3 4.5
Celestica – – – 600 4 4.2
Fair Isaac & Co.– – – 500 5 3.5
Smiths Medical M.D., Inc.– – – 500 5 3.5
Total 5,760 51.1 %5,540 39.1 %
Total city employees 11,275 14,173
(1) Information only readily available for the top seven employers.
Source:City staff research.
2017 (1)
CITY OF ARDEN HILLS
Principal Employers
Current Year and Nine Years Ago
Employees
of Total City
2008 (1)
Percentage
of Total City
Percentage
Employer Employees
-89-
2008 2009 2010 2011
Function
Towed vehicles – – 2 3
145 117 138 96
Driving impaired/alcohol 29 21 9 13
Traffic stops 144 281 332 328
Traffic investigations 22 19 11 24
Number of calls answered N/A N/A N/A N/A
Fire
228 214 452 559
– 1.40 1.80 1.93
200 250 325 250
Sanitation (residential)
Refuse collected (tons/day)7.21 8.05 7.95 7.85
Recyclables collected (tons/day)2.68 2.05 2.34 2.01
Parks and recreation
Athletic field permits issued 30 25 25 20
Water
New connections – 3 3 2
Water main breaks 7 5 7 2
Average daily consumption
(thousands of gallons)1,029 1,323 1,162 1,135
Note 1:Indicators are not available for the general city functions.
Note 2:
Note 3:
Note 4:
Source:Various city departments
Refuse approximation provided by BFI/Allied Waste (approximately 38 pounds per household per week –
3,236 households (City Planner)–converted to tons.Recyclables –numbers based off of yearly tonnage total
divided into 365 days in the year.
Fire information provided by Lake Johanna Fire Department, which is contracted out by the City.
Street resurfacing (miles)
Number of calls answered
Potholes repaired
Highways and streets
Information provided by the Ramsey County Sheriff’s Department.Starting in 2015,the Sheriff changed reporting
standards, and information is no longer easily broken down. Total number of calls is now provided.
Last Ten Fiscal Years
Operating Indicators by Function
CITY OF ARDEN HILLS
Traffic accidents
Police (see Note 2)
Fiscal Year
-90-
2012 2013 2014 2015 2016 2017
7 2 1 N/A N/A N/A
140 149 144 N/A N/A N/A
15 23 18 N/A N/A N/A
17 78 20 N/A N/A N/A
33 78 40 N/A N/A N/A
N/A N/A N/A 4,892 4,370 6,092
522 561 651 804 930 986
5.20 4.40 – 2.84 0.25 0.20
250 250 250 600 600 700
7.90 8.05 8.65 8.76 8.75 8.80
2.20 2.20 2.21 2.16 2.06 2.22
19 30 22 22 22 30
31 10 2 7 8 8
12 6 2 10 6 7
1,269 1,162 983 857 812 853
-91-
Fiscal Year
2008 2009 2010 2011
Function
General government 6.40 6.57 7.18 6.89
Public safety
General public safety 2.70 2.72 2.72 2.74
Highways and streets
General highways and streets 2.30 2.39 2.44 2.20
Community development 1.60 0.02 – –
Parks and recreation 7.50 8.32 6.95 8.88
Water 3.40 3.40 3.29 3.50
Sewer 3.90 4.01 3.91 4.05
Recycling 0.10 0.14 0.17 0.21
Surface water management 1.80 1.57 2.25 2.54
Total 29.70 29.14 28.90 31.01
Note:
Source:Finance and Administration
Seasonal staff are calculated by total hours worked (2,080 hours per year),added together to total an equivalent.
Seasonal hours fluctuate throughout the year.
CITY OF ARDEN HILLS
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
-92-
2012 2013 2014 2015 2016 2017
7.47 7.50 6.73 6.76 5.00 4.08
2.70 2.66 2.61 2.74 2.42 2.34
2.72 2.04 3.11 2.93 2.42 2.41
– – – – – –
6.51 6.92 7.77 7.31 6.78 6.52
3.67 4.42 4.18 4.07 3.56 3.62
4.42 4.92 5.06 4.85 4.31 4.30
0.21 0.21 0.20 0.19 0.17 0.21
2.66 2.56 3.01 2.95 2.64 2.70
30.36 31.22 32.67 31.80 27.30 26.18
-93-
2008 2009 2010 2011
57 57 57 57
250 250 250 250
18 18 18 18
111 111 111 111
14 14 14 14
52 53 54 54
11 13 15 15
4 4 4 4
6 6 6 6
10 10 10 10
5 5 5 5
2 2 3 3
43 43 43 43
520 520 520 520
1,500 1,500 1,500 1,500
42 44 44 44
20 20 20 20
*
Note:
Source:
Sewer
Sanitary sewers (miles)
Storm sewers (miles)
No capital asset indicators are available for the general city functions.
Information used for the parks and recreation section was taken from the Arden Hills Parks and Trails Guide from the Parks and
Recreation Department.
Water
Water mains (miles)
Fire hydrants
Maximum daily capacity
(thousands of gallons)
Tennis courts
Softball/baseball fields
Basketball courts
Hockey/skating rinks
Permanent restrooms
Parks and recreation*
Parks acreage
Parks
Trails acreage
Trails (miles)
Various city departments
CITY OF ARDEN HILLS
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
Function
Highways and streets
Streets (miles)
Streetlights
Traffic signals
-94-
2012 2013 2014 2015 2016 2017
57 57 57 57 57 57
250 250 250 250 250 252
18 18 18 18 18 18
111 111 111 111 111 111
14 14 14 14 14 14
54 54 54 54 54 54
15 15 21 21 21 21
4 5 6 6 5 5
6 8 8 8 8 7
10 10 10 10 10 10
5 6 6 6 6 6
3 2 3 3 3 3
43 43 43 43 43 43
520 537 537 537 537 537
1,500 1,500 1,500 1,500 1,500 1,500
44 49 52 52 52 52
20 20 25 25 25 25
-95-
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CITY OF ARDEN HILLS
RAMSEY COUNTY, MINNESOTA
Special Purpose Audit Reports
Year Ended
December 31, 2017
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Page
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 1–2
Independent Auditor’s Report on Minnesota Legal Compliance 3
Schedule of Findings and Responses 4
Table of Contents
CITY OF ARDEN HILLS
Year Ended December 31, 2017
RAMSEY COUNTY, MINNESOTA
Special Purpose Audit Reports
THIS PAGE INTENTIONALLY LEFT BLANK
-1-
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
To the City Council and Management
City of Arden Hills, 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 Arden Hills, Minnesota (the City) as of and for the year ended December 31, 2017, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated June 7, 2018.
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered the City’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’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’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 City’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 mi ght be material
weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may
exist that have not been identified. We did identify one deficiency in internal control, described in the
accompanying Schedule of Findings and Responses as item 2017-001, which we consider to be a material
weakness.
(continued)
-2-
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City’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 opi nion 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.
CITY’S RESPONSE TO FINDING
The City’s response to the finding identified in our audit is described in the accompanying Schedule of
Findings and Responses. The City’s response was not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on it.
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’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’s internal control and compliance. Accordingly,
this report is not suitable for any other purpose.
Minneapolis, Minnesota
June 7, 2018
-3-
INDEPENDENT AUDITOR’S REPORT
ON MINNESOTA LEGAL COMPLIANCE
To the City Council and Management
City of Arden Hills, 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 Arden Hills, Minnesota (the City) as of and for the year ended December 31, 2017, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated June 7, 2018.
MINNESOTA LEGAL COMPLIANCE
The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to
Minnesota Statutes § 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 be lieve that the City 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’s
noncompliance with the above referenced provisions.
PURPOSE OF THIS REPORT
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 report is not suitable for any
other purpose.
Minneapolis, Minnesota
June 7, 2018
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CITY OF ARDEN HILLS
Schedule of Findings and Responses
Year Ended December 31, 2017
-4-
FINDINGS – MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL
REPORTING
2017-001 SEGREGATION OF DUTIES
Criteria – Internal control over financial reporting.
Condition – The City of Arden Hills, Minnesota (the City) has limited segregation of duties
in a number of areas.
Context – This is a current year finding.
Cause – The limited segregation of duties is primarily caused by the limited size of the City’s
finance department staff.
Effect – One important element of internal accounting controls is an adequate segregation of
duties such that no one individual has responsibility to execute a transaction, have physical
access to the related assets, and have responsibility or authority to record the transaction. A
lack of segregation of duties subjects the City to a higher risk that errors or fraud could occur
and not be detected in a timely manner in the normal course of business.
Recommendation – This condition is common to organizations of your size. We recommend
that the City segregate duties as best it can within the limits of the staff available. Any
modifications in internal control in this area should be viewed from a cost/benefit
perspective.
Management Response – There is no disagreement with the audit finding. The City reviews
and makes improvements to its internal control structure on an ongoing basis and attempts to
maximize the segregation of duties in all areas within the limits of the staff available.
However, the City does not consider it cost beneficial at this time to increase the size of its
staff in order to further segregate accounting functions.
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Page 1 of 1
STAFF COMMENTS – 5A
MEMORANDUM
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
FROM: Dave Perrault, City Administrator
SUBJECT: Rice Creek Commons (TCAAP) and Joint Development Authority (JDA) Update
Budgeted Amount: Actual Amount: Funding Source:
$ $ $
A verbal update will be provided at the City Council meeting.
Page 1 of 1
STAFF COMMENTS – 5B
MEMORANDUM
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
Dave Perrault, City Administrator
FROM: Sue Polka, Public Works Director/City Engineer
SUBJECT: Transportation Update
Budgeted Amount: Actual Amount: Funding Source:
$ $ $
A verbal update will be provided at the City Council meeting.
Page 1 of 1
STAFF COMMENTS – 5C
MEMORANDUM
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
Dave Perrault, City Administrator
FROM: Julie Hanson, City Clerk
SUBJECT: Night to Unite
Budgeted Amount: Actual Amount: Funding Source:
$ $ $
Background/Discussion
The 2018 Night to Unite will be held Tuesday, August 7 from 5:00 to 9:00 p.m.
Those interested in hosting should register their party with the Ramsey County Sheriff’s Office
by Friday, July 20, 2018, in order to ensure a deputy visit. Registration information and forms
are available on the Ramsey County Sheriff’s Office website or by calling the Crime Prevention
Unit at 651-266-7339. We also have a link to this information on the City’s website.
Those who are registered to host a neighborhood gathering will be visited by community
officials, fire departments, and Ramsey County Sheriff’s Office representatives.
A list of neighborhoods participating in Night to Unite will be sent to the City Council when it
becomes available.
Approved: June 25, 2018
CITY OF ARDEN HILLS, MINNESOTA
SPECIAL CITY COUNCIL WORK SESSION
MAY 22, 2018
6:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, Mayor Grant called to order the Special City
Council Work Session at 6:00 p.m.
Present: Mayor David Grant; Councilmembers Brenda Holden, Dave McClung and
Steve Scott
Absent: Councilmember Fran Holmes (Excused)
Also present: City Administrator Dave Perrault; Public Works Director/City Engineer Sue
Polka; City Planner Matthew Bachler; and City Clerk Julie Hanson
1. AGENDA ITEMS
A. Civic Site Task Force
Mayor Grant provided background information regarding the 1.6 acre parcel in the Rice Creek
Commons/TCAAP redevelopment area that has been designated for “civic use”. He indicated that
while the formation of a Civic Site Task Force was initially discussed approximately a year ago,
the City had been waiting for the project to move forward to a certain point before progressing
with the Civic Site Task Force.
Mayor Grant asked the Council to review the proposed Civic Site Task Force members for later
comment.
City Administrator Perrault indicated that current members of the City’s commissions and
committees were invited to participate.
A discussion ensued and the Council was in agreement as to make up of the Civic Site Task Force.
It agreed that the Civic Site Task Force members visit other communities to gather information
regarding potential uses for the site.
Mayor Grant recommended Councilmembers Holden and Holmes be appointed as liaisons to
the Civic Site Task Force, with Councilmember Scott followed by Councilmember McClung or
Mayor Grant designated as alternate liaisons.
ARDEN HILLS CITY COUNCIL SPECIAL WORK SESSION – MAY 22, 2018 2
Councilmember Holden asked about parking options.
A discussion ensued regarding parking at the civic site.
City Administrator Perrault stated that City Attorney Jamnik suggested a formal vision
statement be provided to the Civic Site Task Force.
City Administrator Perrault suggested the following vision statement for the Civic Site Task
Force: To work with the City’s consultant, the public, and the City Council and to conduct
research and propose potential options regarding the civic site property.
City Administrator Perrault stated the Civic Site Task Force’s goal is not to make a
recommendation necessarily but rather to conduct research as to the different types of uses for the
site and in turn present their findings to the City Council.
Mayor Grant reminded the group that there is a two-year deadline.
A discussion ensued regarding the proposed civic site parcel as well as the parcel where the current
City Hall is located, which included parking, lot dimensions, setbacks, and building square
footage.
A discussion ensued regarding the space study and resale options of the current City Hall.
Rich Straumann, PTRC Chair, requested that he be appointed as an alternate PTRC member to
the Civic Site Task Force.
Mayor Grant stated this was fine but indicated that continuity was important.
The Council agreed to appoint City Administrator Dave Perrault or his designee as the staff
liaison.
A discussion ensued regarding when the first meeting should take place, the goal of the first
meeting, and the frequency of the meetings.
City Administrator Perrault stated that HGA will be available for three meetings with the Civic
Site Task Force, three meetings that will serve as open houses, and three meetings with the City
Council.
Mayor Grant suggested that the Civic Site Task Force not be overly concerned if a couple of the
members cannot attend a particular meeting. He stated that it is better to still meet as a group so
that this project can move forward and the deadline can be met.
A discussion ensued regarding selection of a Chair for the committee and what the first meeting
should entail.
The Council agreed that the first meeting should be for the Civic Site Task Force members in
order to familiarize themselves with the project and process, and the second meeting would
include HGA.
ARDEN HILLS CITY COUNCIL SPECIAL WORK SESSION – MAY 22, 2018 3
Councilmember Holden stated she would work with Councilmember Holmes to select a date for
the first meeting.
Councilmember McClung suggested setting a deadline for the Civic Site Task Force to report
back to the Council.
Mayor Grant suggested the Task Force report back to the Council at the end of July.
City Administrator Perrault asked who the City Council would like to receive future reports
from.
Mayor Grant stated that the updates should come from City staff or possibly the Civic Site Task
Force Chair.
The Council was in agreement with this suggestion.
2. COUNCIL COMMENTS
None.
ADJOURN
Mayor Grant adjourned the Special City Council Work Session at 6:45 p.m.
__________________________ __________________________
Julie Hanson David Grant
City Clerk Mayor
Approved: June 25, 2018
CITY OF ARDEN HILLS, MINNESOTA
REGULAR CITY COUNCIL MEETING
MAY 29, 2018
7:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, Mayor David Grant called to order the regular
City Council meeting at 7:00 p.m.
Present: Mayor David Grant, Councilmembers Brenda Holden, Fran Holmes, Dave
McClung and Steve Scott
Absent: None
Also present: City Administrator Dave Perrault; Public Works Director/City Engineer
Sue Polka; City Planner Matthew Bachler; Finance Director Gayle Bauman; City
Attorney Joel Jamnik; and City Clerk Julie Hanson
PLEDGE OF ALLEGIANCE
1.APPROVAL OF AGENDA
Mayor Grant requested Item 7P be removed from the Consent Agenda for discussion as Item
8A.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to approve the meeting agenda as amended. The motion carried
unanimously (5-0).
2.RESPONSE TO PUBLIC INQUIRIES
None.
3.PUBLIC INQUIRIES/INFORMATIONAL
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 2
Gregg Larson, 3377 North Snelling Avenue, discussed a letter he received last week from the
City of Arden Hills. He noted the letter was written by a private company but was signed by the
City. He expressed frustration with the fact the City allowed its logo to be used by a company
that was peddling warranties for water lines. He questioned if this company was investigated by
the City or if the Council just took the word of Metro Cities. He asked if the City was receiving
a kick back for the warranties and noted other municipalities have rescinded the ability to send
out these types of letters. He encouraged the City Council to not jeopardize the public’s trust and
to not allow mass mailings to be sent out again with City logos. He explained that unless a
resident knows their water or sewer line was failing, an extended warranty was not necessary. He
indicated most consumer advocates including Consumer Reports discourages extended
warranties, whether or homes, cars or electronics. He recommended the Council acknowledge
their mistake, apologize to the City’s residents, and break the contract with this outside company.
4. PUBLIC PRESENTATIONS
A. Proclamation in Recognition of Robert Thompson’s Years of Service on the
Planning Commission and Parks, Trails and Recreation Committee
Mayor Grant read a proclamation in full for the record recognizing Roberta Thompson for her
years of service on the Planning Commission and Parks Trails and Recreation Committee. He
noted Ms. Thompson was in the process of moving and therefore could no longer serve on these
groups.
5. STAFF COMMENTS
A. Rice Creek Commons (TCAAP) and Joint Development Authority (JDA) Update
City Administrator Perrault provided an update on TCAAP stating the JDA has not met since
the last Council meeting, but would be meeting next on Monday, June 4.
Councilmember Holden asked if the Master Development Agreement would be completed by
August.
City Administrator Perrault stated the County and developer were shooting to have the Master
Development Agreement completed by the end of summer.
B. Transportation Update
Public Works Director/City Engineer Polka reported the 2018 Street and Utility Improvement
project would begin on Monday, June 4.
Public Works Director/City Engineer Polka explained the County Road F preconstruction
meeting would be held on Wednesday, May 30. She noted a link to the Ramsey County
Transportation webpage was available on the City’s website.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 3
6. APPROVAL OF MINUTES
A. April 23, 2018, Regular City Council
Councilmember Scott requested an addition to the minutes on Page 11, under Item 11 noting his
statement regarding the Ramsey County Sheriff’s Open House should note City Administrator
Perrault was also in attendance.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to approve the April 23, 2018, Regular City Council meeting minutes
as amended. The motion carried unanimously (5-0).
7. CONSENT CALENDAR
A. Motion to Approve Consent Agenda Item - Claims and Payroll
B. Motion to Approve First Quarter Financials
C. Motion to Approve Council Technology Reimbursement Policy
D. Motion to Approve City Planner Out of Class Pay
E. Motion to Approve Planning Case 18-009 – 1290 County Road F – Site Plan
Review
F. Motion to Approve Resolution 2018-029 Authorizing the Release of the Draft
2040 Comprehensive Plan Update to Neighboring Jurisdictions and Affected
Governing Bodies for Review
G. Motion to Approve Request for Proposals for On-Call Planning Services
H. Motion to Approve Planning Case 18-007 – 4535 Lakeshore Place – Variance
I. Motion to Approve Planning Case 18-008 – 1275 Nursery Hill Court – Variance
J. Motion to Approve Authorization of Special Assessment Agreements – Land O
Lakes and Boston Scientific
K. Motion to Approve Resolution 2018-037 Approving MnDOT Zero Dollar Permit
to Construct I-35W MnPASS Project
L. Motion to Approve Resolution 2018-039 Providing for the Sale of General
Obligation Utility Revenue Bonds
M. Motion to Approve Proposal for Engineering Services – County Road F
Watermain Relocation – TKDA
N. Motion to Approve Resolution 2018-038 Establishing and Appointing Members
to a Civic Space Task Force for Rice Creek Commons
O. Motion to Authorize City Staff to Hire Part-Time Communications Intern
P. Motion to Authorize Purchase of Ford F-450 Truck with Plow and Sander
Q. Motion to Approve Proposal for Professional Services – TCAAP Related
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to approve the Consent Calendar as amended removing Item 7P and
to authorize execution of all necessary documents contained therein. The
motion carried unanimously (5-0).
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 4
8. PULLED CONSENT ITEMS
A. Motion to Authorize Purchase of Ford F-450 Truck with Plow and Sander
Mayor Grant asked why this item was not on the 2019 State contract.
Public Works Director/City Engineer Polka explained the 2018 contract for this type of
vehicle expires at the end of October. She noted the issue was the 2018 trucks were no longer
available. She estimated this vehicle was $2,000 higher than the State contract rate, but noted
this was a 2019 vehicle and not a 2018 vehicle.
Mayor Grant questioned if the Council wanted to go outside of the State contract to purchase
this item, or wait until November to try and purchase the truck under the State contract.
Councilmember Scott stated he supported the Council waiting for this purchase until November
when the vehicle could be bid under the State contract.
Councilmember Holmes explained the existing plow was not useable for the coming winter and
the new plow would not be ready if the City waits to purchase off of the State contract in
November.
Councilmember Holden commented staff has been really good about only bringing purchases
forwarded when they were really needed. For this reason, she supported the purchase of the truck
now.
Councilmember McClung asked if delaying action on this item for one meeting would impact
the City’s ability to plow snow this coming winter.
Public Works Director/City Engineer Polka reported she was uncertain.
Councilmember McClung commented he agreed with Councilmember Holden and stated he
supported the purchase of the truck and plow at this time.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to Authorize Purchase of Ford F-450 Truck with Plow and Sander.
The motion carried 4-1 (Councilmember Scott opposed).
9. PUBLIC HEARINGS
A. Planning Case 18-013 – 3246 New Brighton Road Public Hearing
City Planner Bachler stated Journey Home Minnesota is a non-profit organization with a
mission to create affordable housing for disabled military veterans in safe cities served by high
quality school systems. The organization has developed housing projects in surrounding
communities, including Shoreview, New Brighton, and Mounds View. Journey Home purchased
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 5
the Lake Johnna Fire Station No. 1 property at 3246 New Brighton Road in September 2017 and
is requesting approval for a project to redevelop the property for three single-family residential
homes. The existing fire station building, garage, and parking areas on the property would all be
removed as part of the redevelopment.
City Planner Bachler reported the existing property at 3246 New Brighton Road is
approximately 2.8 acres in size and is comprised of the decommissioned Lake Johanna Fire
Station No. 1 building, a detached garage, and parking areas. The two existing structures are
located along New Brighton Road and there are multiple curb cuts currently providing access to
the property. The topography of the lot is relatively flat along New Brighton Road, but slopes
down significantly to a pond located on the easterly half of the property. The elevation change
from New Brighton Road to the pond edge is roughly 15 feet. The pond occupies approximately
1.3 acres of the site leaving 1.5 acres of developable land.
City Planner Bachler explained the applicant has proposed a subdivision of the existing
property that would create three single-family residential lots. Each of the lots would have
frontage on New Brighton Road and the property lines would extend to the eastern boundary of
the site. The size of the lots would be 29,723 square feet, 41,802 square feet, and 53,593 square
feet. The lots are expected to be developed with similarly sized homes. Each lot would have a
private driveway on New Brighton Road.
City Planner Bachler stated a Comprehensive Plan Amendment is required to change the
designation of the property to Very Low Density Residential from its current designation as
Public and Institutional. The Very Low Density Residential classification allows for single-
family residential development at a density of 1.5 to 3 units per acre. To summarize, Planning
Case 18-013 includes the following requests:
• Preliminary and Final Plat to subdivide property into three single-family residential lots.
• Comprehensive Plan Amendment to change future land use classification from Public
and Institutional to Very Low Density Residential.
City Planner Bachler reviewed the site data, Plan Evaluation and offered a detailed summary of
the Zoning Regulations review. Staff requested the Council hold a public hearing for Planning
Case 18-013.
Councilmember Holden asked if any environmental studies had been completed on this
property.
City Planner Bachler indicated he was not aware of any environmental studies that have been
completed for this property.
Councilmember Holmes requested further information regarding the Comprehensive Plan
Amendment.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 6
City Planner Bachler reported the Applicant was proposing to change the future land use
designation from Public and Institutional to Very Low Density Residential. He provided further
comment on how the City defined Very Low Density Residential.
Councilmember Holmes asked if the zoning of this property was R-2 and inquired if this would
remain the same.
City Planner Bachler stated the property was zoned R-2 District and the proposal did not
require a change to the zoning.
Councilmember McClung questioned what the City had planned for this site in the 2040
Comprehensive Plan.
City Planner Bachler stated the draft 2040 Comprehensive Plan has the property designated as
Very Low Density Residential but noted this would not come into effect until the Met Council
approves the City’s plan.
Mayor Grant opened the public hearing at 7:47 p.m.
Tracy Timp, 1901 Jerrold, stated she appreciated the fact the Council had pressed this issue and
was changing this development from four houses to three.
With no one coming forward to speak, Mayor Grant closed the public hearing at 7:49 p.m.
10. NEW BUSINESS
A. Planning Case 18-013 – Comprehensive Plan Amendment and Preliminary
and Final Plat – 3246 New Brighton Road
City Planner Bachler stated the Staff Report for this item was presented to the Council under
Item 9A. It was noted the City Council must make a finding as to whether or not the proposed
application would adversely affect the surrounding neighborhood or the community as a whole
based on the aforementioned factors. Staff offers the following findings for consideration:
1. The property at 3246 New Brighton Road is located in the R-2 – Single and Two-Family
Residential Zoning District.
2. The subject property is 125,118 square feet, or approximately 2.8 acres, in size.
3. The subject property is currently comprised of the former Lake Johanna Fire Station 1
building, a detached garage, and parking areas.
4. The Johanna Station 1 subdivision is proposed as R-2 – Single and Two-Family
Residential District.
5. The R-2 – Single and Two Family Residential District permits up to five (5) residential
units per acre.
6. The applicant has requested a Preliminary and Final Plat in order to subdivide the
property into three (3) single-family residential lots.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 7
7. The proposed Lake Johanna Station 1 development is proposed at approximately 2.01
units per net acre.
8. The Arden Hills 2030 Comprehensive Plan designates the future land use of the subject
property as Public and Institutional.
9. The applicant has requested a Comprehensive Plan Amendment to change the future land
use designation of the property to Very Low Density Residential.
10. The Arden Hills 2030 Comprehensive Plan defines Very Low Density Residential as,
“traditional single-family residential land use category. A density range of 1.5 to 3 units
per acre.”
11. The adjacent properties to the north, east, west and south are zoned R-2 District and are
guided for Low Density Residential uses in the Arden Hills 2030 Comprehensive Plan.
12. The proposed Comprehensive Plan Amendment would be consistent with adjacent land
uses and the goals included in the Land Use chapter of the Arden Hills 2030
Comprehensive Plan.
13. The proposed Johanna Station 1 subdivision meets the Minimum Subdivision Design
requirements included in Section 1130 of the City Code.
14. The proposed Johanna Station 1 subdivision meets or will be required to meet the
Required Improvements for subdivisions included in Section 1140 of the City Code.
15. The proposed development requires public use dedication, as required in Section 1130.08
of the City Code.
16. The park dedication requirement for this application is ten (10) percent of the buildable
land area in the subdivision or a park development fee of $6,500 per unit. Ten percent of
the development would be 0.28 acres which would not allow for a feasible park area. The
park development fee of $6,500 per unit will be applied in this case.
17. The proposed development meets the minimum district requirements for the R-2 Zoning
District.
City Planner Bachler stated that if a motion to approve is made, staff would recommend that
the following eighteen (18) conditions be included in the motion:
1. The project shall be completed in accordance with the submitted plans as amended by the
conditions of approval. Any significant changes to these plans, as determined by the City
Planner, shall require review and approval by the Planning Commission and City
Council.
2. The execution of the Final Plat shall be contingent upon the Metropolitan Council’s
approval of the Comprehensive Plan Amendment.
3. A Development Agreement shall be prepared by the City Attorney and subject to City
Council approval. The Development Agreement shall be executed prior to the execution
of the Final Plat.
4. The applicant shall submit a park dedication fee in the amount of $19,500, subject to the
approval of the City Council. The park dedication fee shall be submitted prior to the
execution of the Final Plat.
5. The applicant shall file the Final Plat with the Ramsey County Recorder and provide the
City with a recorded copy within sixty (60) days of approval.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 8
6. The applicant shall address all comments included in the memo provided by the Public
Works Director/City Engineer dated May 22, 2018 prior to the issuance of any
development permits.
7. The applicant shall provide the City with a copy of the approved Rice Creek Watershed
District Permit prior to the issuance of any development permits.
8. Final grading and drainage plans shall be subject to approval by the City Engineer prior to
the commencement of any construction on the site.
9. The applicant shall provide a minimum of three (3) trees in the front yard of each lot.
Coniferous trees must be at least six (6) feet in height and deciduous trees a diameter of
two and one-half (2.5) inches.
10. The applicant shall provide a Tree Preservation Plan that provides for the required 82
caliper inches of replacement trees on site. If the City determines that there is not
sufficient space on site for the replacement tree plantings, the applicant shall work with
the City to find an alternative off-site location or a fee in lieu of the replacement tress will
be required equaling the cost of materials and installation plus ten percent, as determined
by the City Council.
11. Before construction, grading, or land clearing begins, trees or tree areas that are to be
preserved shall be visibly marked and city-approved tree protection fencing or other
method shall be installed and maintained at the critical root zones of the trees to be
protected.
12. A Letter of Credit in the amount of 125 percent of the cost of materials and installation
for the required replacement tree plantings shall be provided prior to the issuance of any
development permits. The Letter of Credit shall be valid for two full years from the date
of installation of the replacements trees.
13. Survey monuments shall be placed and installed at all block corners, angle points, points
of curves in streets, and at intermediate points as shown on the Final Plat. Pipes or streel
rods shall be placed at the corners of each lot.
14. Wetland monument signs will be required to adequately define the wetland buffer area,
subject to the approval of the Public Works Director.
15. Sewer and water for the subdivision shall be obtained by connections to the City water
and sewer systems. Extension of City services shall be subject to review and approval by
the City Engineer and all associated costs shall be the responsibility of the developer.
16. A grading as-built and utility as-built plan shall be provided to the City upon completion
of grading and utility work.
17. The project may require permits, including, but not limited to, MPCA-NPDES, Rice
Creek Watershed District, Minnesota Department of Health, MPCA- Sanitary Sewer
Extension, Ramsey County and City Right of Way, and City Grading and Erosion Control
permits. Copies of al issued permits shall be provided to the City prior to the issuance of
any development permits.
18. The developer shall comply with all other applicable provisions of the City Code and its
related Ordinances.
MOTION: Councilmember Holden moved and Councilmember McClung seconded a
motion to approve Planning Case 18-013 for a Preliminary Plat, Final Plat,
and Comprehensive Plan Amendment at 3246 New Brighton Road, based on
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 9
the findings of fact and the submitted plans, as amended by the eighteen (18)
conditions in the May 29, 2018 Report to the City Council.
Councilmember Scott asked how the reduced density would impact the affordability for these
homes.
Councilmember Holden indicated the Council was being asked to approve a lot split and land
use change. She commented the affordability factor for these homes was not under
consideration.
Blake Huffman, Journey Home representative, reported the economics of the project did change
when the number of homes was reduced from four to three. However, it was his hope the three
homes would remain affordable.
The motion carried (5-0).
B. Planning Case 18-010 – 4061 Lexington Avenue North – Site Plan Review
City Planner Bachler stated Primrose Schools is a national system of accredited private
preschools that provide child care and early education. There are currently over 300 centers
nationally, including 17 locations in the Minneapolis-St. Paul metro area. Primrose is considering
purchasing the property located at 4061 Lexington Avenue North for a new daycare center and
has requested a Site Plan Review in order to complete site modifications. The subject property is
currently owned by Bremer Bank and includes an approximately 18,000 gross square foot, two-
story bank and office building. The site also has a teller drive-up lane on the south side of the
building and a drive-up ATM located on the north side of the parking lot.
City Planner Bachler reported Primrose would complete extensive renovations to the interior of
the building for the daycare center. This would include constructing seven rooms for young
infants, toddlers, and early preschool on the first floor and five rooms for preschool, pre-
kindergarten, and explorers (school-aged children) on the second. The basement floor would be
utilized for food preparation, staff space, a conference room, and storage. The design capacity
would be for up to 176 children. No additions to the existing structure are proposed at this time
and Primrose would only be completing minor modifications to the building’s exterior, such as
installing new doors.
City Planner Bachler commented in terms of the exterior of the site, the most significant change
would be the replacement of the parking stalls and drive lanes on the west and south side of the
building with an approximately 13,500 square foot playground area. The proposed playground
would include a variety of different types of equipment for different age groups, including play
structures, swing sets, and a basketball hoop.
City Planner Bachler explained the parking area on the north side of the building would be
modified to include two one-way drive lanes with diagonal parking stalls. Two new parking lot
islands would also be added to help better define the central row of parking. Six new parking
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 10
stalls would be constructed on the eastern side of the site directly south of the Lexington Avenue
driveway.
City Planner Bachler stated the site currently has access driveways on County Road F and
Lexington Avenue and no modifications are proposed to these driveways at this time. The
County Road F driveway has full access and the entrance on Lexington Avenue only allows right
turns in and out of the site. Both roadways are owned and managed by Ramsey County. Ramsey
County has recommended that the Lexington Avenue driveway be removed due to proximity to
the County Road F intersection. As a recommended condition of approval, the applicant would
be required to work with the County to resolve this issue.
City Planner Bachler indicated an expanded sidewalk is proposed to provide safe pedestrian
access to the center from the parking lot. Additionally, a new sidewalk would be constructed to
connect the site to the existing sidewalk along Lexington Avenue. Other site modifications would
include a new trash enclosure with brick veneer and a metal gate adjacent to the building within
the northern parking area.
City Planner Bachler reported new tree plantings would be added within the parking area on the
north side of the building and along Lexington Avenue. A portion of the parking area on the
south side of the building would be converted to turf grass and include tree plantings. Outside of
the existing developed area, the majority of the property is forested with extensive tree coverage.
The proposal would not impact this area except for the removal of five trees at the southeast
corner of the development area.
City Planner Bachler reviewed the Plan Evaluation and offered the following findings of fact
for consideration:
1. The property located at 4061 Lexington Avenue North is located in the I-1 – Limited
Industrial Zoning District and within Sign District 6.
2. The applicant has submitted a Site Plan Review application for modifications to the site
for a new daycare facility serving more than 10 individuals with care.
3. The proposed daycare facility is a permitted use in the I-1 District.
4. The proposal does not include any additions or modifications to the footprint of the
existing principal structure on the property.
5. The proposed exterior playground equipment is in conformance with the I-1 District
Requirements for accessory structures.
6. The proposed site plan would be in conformance with the lot coverage requirements for
the I-1 District.
7. The proposal is generally in conformance with the design standard requirements included
in Section 1325.05 of the Zoning Code.
8. The existing parking lot does not include planting islands and the proposed site plan
would increase the area of the parking lot occupied by planting islands to approximately
4.6 percent. The Zoning Code requires that 10 percent of the parking area be occupied by
parking islands.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 11
9. The proposed site plan meets the minimum requirements for parking, loading, and
circulation in Section 1325.06 of the Zoning Code.
10. The applicant has proposed to retain and resurface the existing legal nonconforming
freestanding sign at the intersection of Lexington Avenue and County Road F.
11. The proposal is not expected to adversely affect the surrounding area of the community as
a whole.
City Planner Bachler stated the Planning Commission recommended approval (4-0) of Planning
Case 18-010 for a Site Plan Review at 4061 Lexington Avenue North, based on the findings of
fact and the submitted plans in the May 29, 2018 Report to the City Council, as amended by the
following ten (10) conditions:
1. The project shall be completed in accordance with the plans submitted as amended by the
conditions of approval. Any significant changes to the plans, as determined by the City
Planner, shall require review and approval by the Planning Commission and City
Council.
2. A Grading and Erosion Control Permit shall be required prior to the commencement of
the site modifications.
3. A Building Permit shall be required for the interior improvements and the trash enclosure.
4. A Zoning Permit shall be required for the fencing within the playground area.
5. A Sign Permit shall be required for any wall signage.
6. The existing pylon sign at the intersection of County Road F and Lexington Avenue may
remain in place. The applicant shall work with staff to utilize the sign in conformance
with the Sign Code.
7. The applicant shall work with Ramsey County to address the Lexington Avenue access
driveway.
8. A Ramsey County Right-of-Way Permit shall be required for any work being completed
in the County Road F or Lexington Avenue right-of-way.
9. A Letter of Credit in the amount of 125 percent of the cost of materials and installation of
the landscaping improvements shall be provided prior to the issuance of any development
permits. The Letter of Credit shall be valid for two full years from the date of installation
of the landscaping improvements.
10. Before construction, grading, or land clearing begins, trees or tree areas that are to be
preserved shall be visibly marked and city-approved tree protection fencing or other
method shall be installed and maintained at the critical root zones of the trees to be
protected.
Councilmember Holden asked why the school would be called Primrose School of Shoreview.
City Planner Bachler stated he believed the applicant was using Shoreview for marketing
purposes even though it was located in Arden Hills.
Councilmember McClung expressed concern with the ability to get fire trucks in and around
this property. He feared the current circulation route would be problematic and inquired if this
has been addressed by staff.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 12
City Planner Bachler reported he had provided the site plan to the Fire Marshall and noted staff
had not received any comments or concerns to date. He reported the plans would be further
reviewed by staff and the Lake Johanna Fire Department when the applicant applies for a
building permit.
Mayor Grant invited the applicant to come forward.
Josh McKinney, Sambatek, reported he would be more than willing to work with staff to ensure
that the site had proper fire access. He addressed the sign question noting the applicant had done
some market research and would prefer to have Shoreview on the sign versus Arden Hills for
name recognition purposes.
Councilmember Holden stated she was disturbed by the fact the sign would be labeled
Shoreview and not Arden Hills.
Mayor Grant commented the City could not require the applicant to place specific words on
their sign, but he agreed this was an unfortunate situation.
Councilmember Scott indicated the City operates one of its voting precincts in Shoreview.
Councilmember Holmes stated it was not out of the ordinary for businesses to have a name for
recognition purposes.
Councilmember McClung explained the sign was insulting to the City of Arden Hills and
reported he may now support a gateway sign at this corner.
Councilmember Holden questioned if the City could ask for an easement for a gateway sign.
City Attorney Jamnik reported the City could ask for an easement for a gateway sign.
Mayor Grant anticipated Boston Scientific and Land O’Lakes would support a gateway sign at
this corner.
MOTION: Councilmember Holmes moved and Councilmember Holden seconded a
motion to approve Planning Case 18-010 for a Site Plan Review at 4061
Lexington Avenue North, based on the findings of fact and the submitted
plans, as amended by the ten (10) conditions in the May 29, 2018 Report to
the City Council.
Further discussion ensued regarding the proposed signage for Primrose School of Shoreview.
Mayor Grant questioned if the Primrose School property had right-of-way available for a
gateway sign.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 13
City Planner Bachler reviewed an aerial of the property and noted the right-of-way available
was County property. He explained the City would have to receive approval from the County to
place a gateway sign within the right-of-way. He reported he would have to investigate this
matter further before determining where a gateway sign could be located.
Councilmember Holden asked where the Primrose monument sign would be located.
City Planner Bachler clarified Primrose would not be pursuing a monument sign, but rather
would be repurposing the existing pylon sign.
Mayor Grant questioned if the Council could ask the applicant to move their pylon sign further
to the south to make room for a gateway sign.
City Attorney Jamnik advised the Council could make this request.
Councilmember McClung inquired how precise a condition had to be worded and questioned if
relocation of the pylon sign to the south in coordination with City staff would be sufficient.
City Attorney Jamnik stated it would be best if the City knew the footprint for the easement on
this corner for a gateway sign and where the pylon sign would be relocated.
Councilmember McClung asked how much square footage the City would need for a gateway
sign on this corner.
Mayor Grant questioned what the approval timeline was for this Planning Case.
City Planner Bachler stated the 60-day review deadline was June 22. He explained he would
need to report back to the Council with more information on the approximate easement area
along with the proposed size for this gateway sign.
Mayor Grant believed the gateway sign at this corner should be rather sizeable, like the gateway
sign on the triangle property with proper landscaping.
Councilmember McClung agreed and stated he would like to see the Council review this matter
further.
Councilmember Holden questioned what the timeframe was for the applicant to complete this
project.
Mr. McKinney explained he would be revising his construction plans in order to address the fire
lane concerns and was hoping to apply for a building permit as soon as possible in order to begin
construction yet this summer. He asked that he be allowed to work with staff in order to
determine a proper location for the gateway and pylon signs. He indicated he would be more
than happy to speak with the franchisee about a name change.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 14
Mayor Grant commented that even if a name change were made to the pylon sign, this was still
a prime corner for a gateway sign for the City of Arden Hills.
Councilmember Holmes stated she was quite disturbed by the fact the Council was discussing a
gateway sign at this intersection. She questioned why this was being discussed out of the blue.
Mayor Grant explained Arden Hills had three gateway signs at this time and was working
towards having eight. While this corner was not previously recommended for a gateway sign, he
reported this was a major intersection or corner that could benefit from having a gateway sign.
Mr. McKinney commented his client had completed market research and this research
recommended the franchise reference Shoreview and not Arden Hills. He stated he was simply
presenting the wishes of his client.
Mayor Grant indicated another intersection considered for a gateway sign was Lexington
Avenue and County Road E. However, a gateway sign was not doable at this intersection due to
the utilities at this corner. He stated the next best option would be this intersection.
Councilmember Holmes suggested the gateway sign portion of this discussion be moved to a
future worksession meeting.
Mayor Grant agreed it would be difficult for the Council to design a gateway sign from the
bench. For this reason, he supported this item being discussed at a future worksession meeting as
well.
Councilmember McClung supported the Council not making a decision on the gateway sign
this evening. He suggested this Planning Case be delayed in order to provide the Council with an
adequate amount of time to further consider the gateway sign location at an upcoming
worksession meeting.
Mayor Grant commented if the City were not to get an easement for a gateway sign at this time,
while the property was being redeveloped, the opportunity would be lost.
Councilmember Holden stated the reason the applicant may be keeping the pylon sign was for
increased visibility. She noted the applicant could always reconsider their monument sign
request.
Mr. McKinney commented on the findings from a visibility study and discussed how moving
the pylon sign from its current location would impact the visibility from the two major County
roads. He explained he had concerns with relocating the pylon sign given the location of the
overhead power lines. In addition, he feared it would be difficult to receive approval from the
County to install a monument sign at this intersection due to visibility concerns.
Mayor Grant asked if the existing pylon sign was located in County right-of-way.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 15
City Planner Bachler reported the pylon sign was not within County right-of-way.
Councilmember Holmes questioned if the Council would require the current pylon sign to be
moved.
Mayor Grant commented this would be required if a gateway sign were pursued.
Councilmember Holmes inquired if the City could require the pylon sign to be moved given the
fact it was already non-conforming.
City Planner Bachler stated the property owner could not relocate the sign given the fact that it
was non-conforming. However, whether the City could require this was a question for the City
Attorney.
City Attorney Jamnik advised this was a site plan review. He reported the applicant was
making substantial changes to the property noting changes were also being made to the parking
lot. For this reason, it would not be unreasonable to impose requirements.
Mr. McKinney commented that movement of the pylon sign would be something he would have
to discuss with his client. He stated the current location was something the client liked about this
property. He anticipated a monument sign may be pursued by his client if the City were to
require the pylon sign to be moved.
Mayor Grant supported this item going back to staff for further work with the applicant to
address the signage concerns and a potential gateway sign.
Councilmember Holden stated she did not have a problem with the existing pylon sign location.
She indicated it would be quite a burden for the applicant to relocate the sign and move the
electricity. She questioned what direction the Council was trying to provide to staff.
Mayor Grant commented he did not want to see the City pursue a gateway sign for this
intersection and have it be crowded by the existing pylon sign. He stated he would like staff to
investigate the potential for a gateway sign at this intersection further prior to the Council taking
action on this Planning Case.
City Planner Bachler summarized the direction from Council noting he would be willing to
work with the applicant and investigate the amount of space that would be needed for a gateway
sign similar to the one located on the triangle property.
Mr. McKinney asked if the Council would be having the same discussion if he would have
walked in to the meeting and called this business Primrose at Arden Hills. He stated he did not
believe the gateway sign issue would have been discussed.
Councilmember Holden commented she believed the conversation would have come up
because the redevelopment of this corner created an opportunity for the City to consider a
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 16
gateway sign. She discussed how important Land O’Lakes and Boston Scientific were to the
City and noted both were located adjacent to this intersection.
Mr. McKinney reported his client would be coming into the City and would be spending
millions of dollars to renovate this property, bringing it to a better and higher use. In addition,
the new business would be drawing people from all over the community to Arden Hills.
Councilmember Holmes commented she was of the opinion if the sign had stated Primrose of
Arden Hills, the Council would not be discussing a gateway sign. However, she noted that the
applicant would not be responsible for building the gateway sign, but rather would only be
providing the City with an easement.
Mc. McKinney stated he would support considering an easement with his client and City staff.
He requested the Council not hold up this project based on an idea that had not been considered
by the Council until this evening. He suggested the Council create a condition for approval that
would direct staff to create an easement for the property and that construction not be further
delayed.
Mayor Grant indicated he still supported the Council delaying action on this item to the June 11
City Council meeting. He stated he would like the City to better define the easement prior to
granting approval of the Planning Case.
Councilmember Holmes did not agree.
Councilmember McClung commented the 60-day deadline of June 22 was the first 60 days and
noted this could be extended an additional 60 days by the City if deemed necessary. He stated he
was not encouraging this but explained the City did have time to do their due diligence.
Mayor Grant asked if staff believed they would have enough time to come back to the Council
with a recommendation on the gateway sign easement by June 11.
City Planner Bachler stated staff could complete the work on their end and would have to
ensure the applicant was in agreement with the direction the City was heading.
Mr. McKinney commented he would be willing to work with the City to resolve this matter.
Councilmember Holmes requested staff speak with the Fire Marshall regarding access in and
around the site and have a report regarding this matter at the June 11 meeting.
Councilmember Holden indicated she could support approval of this Planning Case tonight
with conditions addressing the fire lane concerns and the easement for a gateway sign being
addressed by staff and the applicant.
Mayor Grant recommended that the item be delayed in order to provide staff with an adequate
amount of time to review the issues.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 17
MOTION: Mayor Grant moved and Councilmember McClung seconded a motion to
table action on Planning Case 18-010 to the June 11, 2018 City Council
meeting.
The motion carried 4-1 (Councilmember Holmes opposed).
11. UNFINISHED BUSINESS
None.
12. COUNCIL COMMENTS
Councilmember Scott thanked Roberta Thompson for her 12 years of dedicated service on the
Planning Commission and PTRC. He noted Ms. Thompson was a pleasure to work with and
wished her well in her move. He explained the Planning Commission had several vacant seats at
this time and encouraged those interested in serving with this group to contact City Hall for
further information.
Councilmember Scott reported the month of May was Military Appreciation Month. He
discussed a Military Appreciation event that was held in Arden Hills and thanked all who were
able to attend this wonderful event.
Councilmember Scott noted he recently visited the Minnesota History Center and encouraged
the public to visit this valuable local attraction.
Councilmember Scott indicated he attended the Public Works recognition luncheon last week,
along with Councilmembers Holden and Councilmember Holmes.
Councilmember Scott stated he completed a shift at Feed my Starving Children last Friday. He
thanked all of the students who were able to volunteer at this event.
Councilmember Scott reported he attended the Memorial Day events put on by Fort Snelling
National Cemetery on Sunday afternoon.
Councilmember McClung stated he served with Roberta Thompson for a number of years and
he explained the Planning Commission would greatly miss her contributions. He wished her
well in her move to Wisconsin.
Councilmember McClung thanked the first responders for the great service they provided at a
recent drowning at Tony Schmidt Park. He encouraged the public to thank its First Responders
for the great service they provide to the community.
Councilmember Holmes thanked Roberta Thompson for her dedicated service to the City of
Arden Hills.
ARDEN HILLS CITY COUNCIL – MAY 29, 2018 18
Councilmember Holmes stated she had a nice time at the Public Works recognition luncheon
and thanked the Public Works crew for all of their hard work.
Councilmember Holden thanked Roberta Thompson for the wonderful work she provided the
City on the Planning Commission and PTRC over the years and wished her well.
Councilmember Holden questioned if the Planning Commission minutes needed to state the
findings and conditions for approval. She indicated this was a duplication given the fact this
information was available within the Staff Report.
Mayor Grant commented the Council could discuss this matter at a future worksession meeting.
Mayor Grant stated he has been on the City Council since 2000 and has served with Roberta
Thompson through a variety of committees. He explained he appreciated Ms. Thompson’s
professionalism, willingness to serve and dedication to the City.
Mayor Grant discussed the event that occurred at Tony Schmidt Park and commented on an
exciting opportunity (Pulse Point) that would be coming to the City.
Mayor Grant commented on the trees that had been lost along County Road 96 and requested
the City require more from the contractors to ensure trees are properly maintained.
Mayor Grant explained Hot Dog with a Deputy would be held on Wednesday, May 30 from
11:30 a.m. to 12:30 p.m. for the City Council.
Mayor Grant noted he received an invitation to the 147th Financial Management Support
Detachment Deployment Ceremony on Saturday, June 16. He encouraged the entire City
Council to attend this event.
ADJOURN
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to adjourn. The motion carried unanimously (5-0).
Mayor Grant adjourned the Regular City Council Meeting at 9:23 p.m.
__________________________ __________________________
Julie Hanson David Grant
City Clerk Mayor
Page 1 of 1
CONSENT ITEM 7A
MEMORANDUM
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
Dave Perrault, City Administrator
FROM: Gayle Bauman, Finance Director
Pang Silseth, Accounting Analyst
SUBJECT: Claims & Payroll
Budgeted Amount: Actual Amount: Funding Source:
NA NA NA
Council Should Consider the Following Options:
A.Approve Claims and Payroll
Or
B.Reject Claims and Payroll
Supporting Documents:
Payroll
2018 Payroll #12 ....................................................................................... $ 81,469.68
Total Payroll ....................... $ 81,469.68
Accounts Payable Claims Through 06/22/2018
Paid Claims
(MN Dept. of Revenue) ............................................................................ $ 16.00
Paid Claims---06/09/2018 thru 06/22/2018
(Check No 47599 – 47633 and ACH Checks) .......................................... $ 520,068.22
Total Accounts Payable ..... $ 520,084.22
Total Claims ..... $ 601,553.90
CITY OF ARDEN HILLS
PAYROLL # 10
CHECKS DATED: 06/15/18
Biweekly: 05/26/18 - 06/08/18
EMPLOYEE DEDUCTIONS AMT.Payment Method
FIT 5,725.34 EFT
SIT 2,880.02 EFT
FICA Oasdi 4,264.57 EFT
FICA Medicare 997.36 EFT
TOTAL TAXES 13,867.29
Health Premium 1,460.91 A/P Check*
Dental Premium 243.53 A/P Check*
FSA Health Care Reimb. 0.00 A/P Check*
FSA Dependent Care Reimb. 208.33 A/P Check*
TOTAL FLEXIBLE SPENDING 1,912.77
HSA Health Saving 175.00
Health Care Savings Plan-Retirement EFT
Health Care Savings Plan-2% 385.41 EFT
Health Care Savings Plan-4% 515.44 EFT
TOTAL HEALTH SAVINGS 1,075.85
PERA 3,788.07 EFT
ICMA 3,788.07 EFT
Central Pension Fund-Union 614.40 A/P Check*
MN State Retirement System EFT
TOTAL RETIREMENT 8,190.54
IUOE 49 Dues (Union) 138.00 A/P Check*
LTD/STD Insurance 0.00 A/P Check*
PERA Life Insurance 24.00 A/P Check*
Life/Addl/Dep Life 78.00 A/P Check*
UNUM 19.51 A/P Check*
AFLAC 64.56 EFT
TOTAL VOLUNTARY 324.07
Total Employee Deductions 25,370.52
Net Payroll 0.00
Direct Deposit 48,718.00 EFT
Gross Payroll Tie-Out 71,488.90
STD/LTD Gross - Up
Plus City Paid Benefit 9,980.78
ICMA Benefit Held 0.00
TOTAL PAYROLL COST 81,469.68
FICA TIE-OUT
Gross Payroll 71,488.90
Less Total FSA 1,912.77
Plus Employer Match ICMA 0.00
Plus ICMA Benefit Held 0.00
Net P/R Subject to FICA 69,576.13
FICA Oasdi @ 6.20% 4,264.57
FICA Medicare @ 1.45% 997.36
Note: Federal and State Payroll Tax obligations are satisfied by means
of utilizing the "Taxtel" Electronic Tax Deposit Service. Trans-
fers are typically made two business days after the payroll date.
* A/P Checks can be found on the ACCOUNTS PAYABLE Check Approval report.
Checks may be paid this week or the following week.
0.00
4,718.85
0.00
4,370.85
348.00
0.00
0.00
CITY BENEFIT
4,264.57
997.36
5,261.93
Accounts Payable
User:
Printed:
pang.silseth
6/21/2018 10:05 AM
Checks by Date - Summary by Check Date
Check No Check DateVendor NameVendor No Check Amount
0602 US BANK 06/13/2018 3,855.28ACH
3,855.28Total for 6/13/2018:
0230 MTI Distributing Co.06/14/2018 206.51ACH
0292 Oxygen Service Company, Inc.06/14/2018 47.12ACH
0319 City of Roseville 06/14/2018 622.00ACH
0382 ICMA Retirement Trust - 106944 06/14/2018 649.60ACH
0387 ICMA Retirement Trust- #302482 06/14/2018 886.85ACH
11025 Kyle Mork 06/14/2018 240.00ACH
11027 David Seeba 06/14/2018 240.00ACH
11030 Ted Jewell 06/14/2018 144.00ACH
11033 Aaron Walton 06/14/2018 120.00ACH
1110 Pitney Bowes 06/14/2018 1,000.00ACH
1330 MN CLN SERVICES LLC 06/14/2018 4,651.58ACH
2645 Federal Signal Corporation 06/14/2018 350.00ACH
4889 Community Footworks 06/14/2018 280.00ACH
5596 Jamar Company 06/14/2018 20.09ACH
7025 On Site Companies -OSSTC 06/14/2018 70.00ACH
7501 Kelly & Lemmons, P.A.06/14/2018 3,495.99ACH
8870 Chet's Shoes 06/14/2018 375.00ACH
JOHC Johnson Controls 06/14/2018 1,868.04ACH
5359 American Soccer Company, Inc.06/14/2018 397.5047599
0131 Beisswenger's How-To Store 06/14/2018 95.6947600
0376 FSSolutions 06/14/2018 337.5047601
1119 Gertens 06/14/2018 1,698.0047602
6694 Gopher Sport 06/14/2018 753.7547603
0390 INT'L Union Operating Engineers-Union Dues06/14/2018 276.0047604
1440 Lan, Hongyi 06/14/2018 480.0047605
8170 Michels Pipe Services 06/14/2018 44,642.0047606
1058 MIDC Enterprises 06/14/2018 263.3847607
1900 Mounds View Public School District 06/14/2018 59.4047608
10202 Murlowski Properties Inc 06/14/2018 603.0047609
10214 Charlie Pederson 06/14/2018 35.3447610
1208 Premium Waters, Inc 06/14/2018 367.1447611
0925 T-Mobile 06/14/2018 28.7047612
65,304.18Total for 6/14/2018:
0192 Grainger, Inc 06/22/2018 192.21ACH
0210 Kath Fuel Oil Service 06/22/2018 55.50ACH
0230 MTI Distributing Co.06/22/2018 413.64ACH
0242 Met Council Environ. Service-SAC 06/22/2018 4,920.30ACH
0285 Xcel Energy 06/22/2018 1,788.34ACH
0320 Health Partners 06/22/2018 12,782.25ACH
0549 Able Hose & Rubber 06/22/2018 60.22ACH
0576 TimeSaver Off Site Secretarial 06/22/2018 722.25ACH
Page 1AP Checks by Date - Summary by Check Date (6/21/2018 10:05 AM)
Check No Check DateVendor NameVendor No Check Amount
0750 Verizon Wireless 06/22/2018 1,018.20ACH
0922 North Suburban Access Corporation 06/22/2018 257.40ACH
1363 Water Conservation Service, Inc.06/22/2018 979.06ACH
3698 Shaila Cunningham 06/22/2018 976.00ACH
5180 Tessman Seed Co.06/22/2018 476.00ACH
5596 Jamar Company 06/22/2018 435.50ACH
5665 Metering & Technology Solution 06/22/2018 2,023.80ACH
6129 Fast Signs 06/22/2018 40.90ACH
7506 Presbyterian Homes of Arden Hills, LLC 06/22/2018 15,000.00ACH
8870 Chet's Shoes 06/22/2018 125.00ACH
ALPI Allegra Print & Imaging 06/22/2018 1,547.47ACH
CANON Canon Financial Services 06/22/2018 1,429.50ACH
0243 Metropolitan Council-Waste Water 06/22/2018 66,192.79ACH
1252 Campbell Knutson - Attorneys at Law 06/22/2018 7,748.40ACH
8029 MMKR & Co, PA 06/22/2018 20,520.00ACH
toii Tokle Inspections, Inc 06/22/2018 8,641.60ACH
FPTC Flexible Pipe Tool Company 06/22/2018 452.55ACH
4050 Advanced Engineering and Enivornmental Services06/22/2018 1,800.0047613
0131 Beisswenger's How-To Store 06/22/2018 22.9947614
10201 Carmichael Decorating, Inc 06/22/2018 5,905.0047615
0651 CDW Government, Inc.06/22/2018 612.2047616
0154 Cemstone Products Co.06/22/2018 2,398.0047617
6482 Chuckwagon Catering 06/22/2018 500.0047618
1033 Comcast 06/22/2018 6.2947619
0841 Ehlers & Associates, Inc.06/22/2018 2,400.0047620
1193 Further 06/22/2018 51.7047621
IDAI Ideal Advertising, Inc 06/22/2018 248.5047622
0879 Lexington Floral, Inc.06/22/2018 91.2247623
0778 MCFOA 06/22/2018 90.0047624
10204 Midwest Safety Counselors, Inc 06/22/2018 560.2847625
10202 Murlowski Properties Inc 06/22/2018 450.0047626
6252 Office Depot 06/22/2018 134.5947627
0383 Pitney Bowes Inc 06/22/2018 19.5447628
6748 Reliance Standard 06/22/2018 1,375.7747629
5031 S & S Worldwide 06/22/2018 858.8747630
0327 Staples Business Advantage 06/22/2018 519.9347631
0841 Ehlers & Associates, Inc.06/22/2018 13,233.7547632
0495 Lake Johanna Fire Department Inc.06/22/2018 270,831.2547633
450,908.76Total for 6/22/2018:
Report Total (79 checks): 520,068.22
Page 2AP Checks by Date - Summary by Check Date (6/21/2018 10:05 AM)
CONSENT ITEM – 7B
MEMORANDUM
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
Dave Perrault, City Administrator
FROM: Gayle Bauman, Finance Director
SUBJECT: Approve 2017 City Financial Statements & Audit
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Council Should Consider
Motion to accept the 2017 City of Arden Hills financial report and audit results as presented.
Background/Discussion
The 2017 financial statements and audit results are completed and a presentation is scheduled to
be made to the City Council by the City’s auditor, Aaron Neilson of MMKR, as previously noted
in a preceding agenda item.
Page 1 of 2
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
David Perrault, City Administrator
FROM: Sue Polka, Public Works Director/City Engineer
SUBJECT: Colleen Avenue Drainage Improvements
Proposal for Preliminary and Final Design Services
Budgeted Amount: Actual Amount: Funding Source:
N/A $42,142.00 Surface Water Fund
Council Should Consider
Accept proposal for design services from Bolton & Menk for design of the Colleen Avenue
Drainage Improvements in the amounts not to exceed $42,142.00.
Background/Discussion
During the design of the 2018 Street and Utility Improvement project, particularly Indian Oaks
Court and Indian Oaks Trail, it was determined that additional storm water modeling was
necessary to solve potential neighborhood flooding during the 100-year storm event. The City
Council authorized WSB to complete the study (Attachment A). The report recommends
installation of the following improvements:
• 21” RCP outfall with outlet control structure from the Indian Oaks Wetland (pond located
south of Indian Oaks Court)
• Upsize the existing 12” pipe from Indian Oaks Court that connects to the existing storm
sewer catch basin in Colleen Avenue with a 24” HDPE pipe.
• Upsizing the existing 15” storm pipe in Colleen Avenue with a 24” inch pipe
• Directionally drill an 18” HDPE adjacent to the existing 15” outfall. Due to the
condition of the 15” pipe, this entire portion of pipe will have to be replaced.
• Replace the outlet control structure at the wetland north of Colleen with a 27” discharge
pipe and 24” culvert.
CONSENT ITEM – 7C
MEMORANDUM
Page 2 of 2
Staff requested proposals for design from two firms. Staff has reviewed the proposals and is
recommending that the City Council accept the proposal as presented by Bolton & Menk. A
summary of the proposals is shown in the following table:
FIRM Design Services
Bolton & Menk $42,142.00
WSB $44,350.00
Funding for this project is proposed to be paid for from the Surface Water Fund.
Attachments
Attachment A: WSB Drainage Report
Attachment B: Bolton & Menk Proposal – Colleen Avenue Drainage Improvements
701 Xenia Avenue South | Suite 300 | Minneapolis, MN 55416 | (763) 541-4800
Building a legacy – your legacy.
Equal Opportunity Employer | wsbeng.com
Memorandum
To: Sue Polka, PE, City of Arden Hills
From: Matt Schulz, EIT, WSB & Associates, Inc.
Jake Newhall, PE, WSB & Associates, Inc.
Jim Stremel, PE, WSB & Associates, Inc.
Date: March 12, 2018
Re: City of Arden Hills - 2018 Street and Utility Improvement Project (2018 PMP Project)
Indian Oaks Area Downstream Drainage Review
WSB Project No. 010111-000
WSB & Associates, Inc. has completed the initial drainage investigation downstream of the Indian Oaks
wetland for the Arden Hills 2018 PMP project.
I. PURPOSE AND H&H MODELING
The City of Arden Hills is planning to reconstruct Indian Oaks Court and Indian Oaks Trail during the 2018
construction season. HydroCAD analysis completed during the project design phase shows the existing
condition 100-year storm event will likely result in flooding to properties adjacent to the wetland south of
Indian Oaks Court, here-in referred to as “IOC Wetland”, and will likely result in flooding to properties
adjacent to the rock landscape ponding area along the IOC Wetland’s outlet between Indian Oaks Court
and Colleen Avenue, here-in referred to as “Ponding Area”. See Attachment A for a location map or
Figure 1.
This drainage review was authorized by the City to evaluate increased peak flow rates downstream of the
IOC Wetland and Ponding Area to further reduce the flooding risks to the adjacent residents. The analysis
determined if increasing peak discharge rates leaving the IOC Wetland would cause any detrimental
impacts downstream. Modifications to downstream drainage systems, in order to accommodate an
increase in peak discharge rate, were also explored. This memorandum addresses a feasibility level
study and does not include design level planning and analysis.
IOC Wetland
The IOC Wetland has been previously observed to overflow its banks and inundate the adjacent
properties as well as Indian Oaks Court. Flooding risks are proposed to be reduced by lowering the
Wetland outlet, reducing the permanent water level, and increasing available live storage area. This
improvement will reduce flooding risks but when coupled with maintaining existing peak discharge rates,
does not provide adequate capacity to provide any freeboard between the 100-year flood level and the
low opening elevation of the home at 1416 Indian Oak Court.
Ponding Area
As part of the initial Arden Hills 2018 PMP project stormwater analysis, it was discovered that the Ponding
Area is also susceptible to flooding. Reduction of flooding risk at this area was also evaluated as part of
this drainage study. The Arden Hills 2018 PMP project currently proposes to reconstruct the storm sewer
through this location and install additional inlets to reduce flooding potential. These improvements would
also keep stormwater in the pipes instead of daylighting to the surface as it does today.
City of Arden Hills - Indian Oaks Area Downstream Drainage Review
March 12, 2018
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II. STUDY AREA
The study area is generally defined as the area along Colleen Avenue between James Avenue and
Norma Avenue and the downstream flow path area bound by the Townhomes at Arden Hills, Colleen
Ave, McClung Dr, Snelling Ave, Royal Hills Dr, and Arden View Dr. The downstream study area,
Ponding Area, and IOC Wetland are illustrated Figure 1 in red, green, and blue, respectively.
Figure 1. Downstream Study Area
III. MODELING AND FINDINGS
Stormwater modeling was completed using XP-SWMM and HydroCAD software. All drainage areas
tributary to the study area were evaluated during modeling. The extents of the drainage area tributary to
the downstream study area and upstream drainage patters are shown in Figure 2. Analysis was
completed on feasibility analysis scale focusing on key discharge points, ponding areas, and conveyance
systems. Field survey of some critical downstream locations was completed, including cross sections of
the downstream channel between Arden Vista Ct/ Royal Hills Dr and Colleen Ct/ McClug Drive,
emergency overflows, house low opening elevations, downstream storm sewer sizes and inverts
including along Colleen Avenue and near the Royal Hills Drive and Snelling Ave intersection, etc.
City of Arden Hills - Indian Oaks Area Downstream Drainage Review
March 12, 2018
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Figure 2. Tributary Drainage Area
An XP-SWMM model of the downstream drainage system and entire tributary drainage area was
compiled to investigate the effects of increasing discharge rates from the IOC Wetland. The model
indicated that downstream highwater levels adjacent to residential properties may be affected by
increasing rates. 15”, 18”, and 21”/24” combination discharge pipe sizes were used to evaluate increasing
peak discharge rates from the IOC Wetland. Analysis of larger diameter pipes was determined to
increase downstream discharge rates too substantially to the downstream system to be considered for a
design option.
Through evaluation of the downstream flow path, we determined that increased discharge rates could be
mitigated in the wetland located just north of Colleen Avenue, here-in referred to as “Colleen Wetland”.
The Colleen Wetland sits substantially lower than the adjacent properties. A bituminous trail from Colleen
Avenue and Arden View Drive traverses the downstream flow path with an 18” culvert as the outlet. The
existing condition models indicate that stormwater overtops the trail during the 10-year and 100-year
storm event. The Colleen Wetland and trail crossing provide an opportunity for potential improvements to
temporarily detain stormwater to reduce discharge rates. See Figure 3 for the location of the Colleen
Wetland and trail crossing. HydroCAD was utilized to analyze this area and upstream drainage.
City of Arden Hills - Indian Oaks Area Downstream Drainage Review
March 12, 2018
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Figure 3. Colleen Wetland and Trail Crossing
IV. DOWNSTREAM DRAINAGE IMPROVEMENTS
A 15”, 18”, and 21”/24” combination discharge pipe from the IOC Wetland and Ponding Area was
analyzed and considered in evaluating the necessary downstream improvements. The 2-, 10-, and 100-
year NOAA Atlas-14 storm events were analyzed. The proposed improvements necessary to increase
peak discharge rates from the IOC Wetland to provide additional protection are described below.
Attachment A shows the location of the proposed improvements for the 18” and 21”/24” discharge pipe
options. A summary table of the analysis results is provided in Attachment B showing the highwater
levels and peak discharge rates at key locations. This table also lists the critical elevations where flooding
of adjacent properties would potentially occur.
15” Option
The following summarizes the proposed 15” discharge pipe improvements:
- Install 15” HDPE pipe from Indian Oaks Court to Colleen Avenue. Connect to the existing
manhole in Colleen Avenue.
- Re-establish the emergency overflow (EOF) between the Ponding Area and Colleen Avenue and
EOF north of the Colleen Avenue sag to 1’ below the adjacent house low opening.
The 15” discharge pipe option results in a 100-year high water level elevation in the IOC Wetland and
Ponding Area of 962.52 and 961.71, respectively. The 15” option provides similar discharge results to
existing and does not warrant additional downstream improvements.
18” Option
The following summarizes the proposed 18” discharge pipe improvements:
City of Arden Hills - Indian Oaks Area Downstream Drainage Review
March 12, 2018
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- 18” RCP outfall with outlet control structure from IOC Wetland
- 18” HDPE pipe from Indian Oaks Court to Colleen Avenue
- 18” RCP along Colleen Avenue
- Install Additional Inlet at Colleen Avenue Sag for revised sewer configuration and to improve
roadway ponding.
- Directional drill 12” DR-17 HDPE parallel to existing 15” RCP. Directional drilling new storm sewer
will minimize disturbance to adjacent properties and avoid excavation conflicts with utilities and
timber retaining wall. See Figure 4 (below).
- Re-establish the emergency overflow (EOF) between the Ponding Area and Colleen Avenue and
EOF north of the Colleen Avenue sag to 1’ below the adjacent house low opening.
- Provide additional riprap at storm sewer outfall to Colleen Wetland.
- Raise bituminous trail grade adjacent to the Colleen Wetland to 932.80 at EOF (Approximately
200ft of trail improvements).
- Outlet control structure with 27” discharge pipe for Colleen Wetland rate control and 18” culvert
- Pavement removal/replacement and other associated work.
The 18” discharge pipe option results in a 100-year high water level elevation in the IOC Wetland and
Ponding Area of 962.20 and 959.47, respectively.
Figure 4. Colleen Avenue Sag Improvements
21”/24” Option
The following summarizes the proposed 21”/24” discharge pipe improvements:
- 21” RCP outfall with outlet control structure from IOC Wetland
City of Arden Hills - Indian Oaks Area Downstream Drainage Review
March 12, 2018
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- 24” HDPE pipe from Indian Oaks Court to Colleen Avenue
- 24” RCP along Colleen Avenue
- Install Additional Inlet at Colleen Avenue Sag for revised sewer configuration and improve
roadway ponding.
- Directional drill 18” DR-17 HDPE parallel to existing 15” RCP. Directional drilling new storm sewer
will minimize disturbance to adjacent properties and avoid excavation conflicts with utilities and
timber retaining wall. See Figure 4.
- Re-establish the emergency overflow (EOF) between the Ponding Area and Colleen Avenue and
EOF north of the Colleen Avenue to 1’ below the adjacent house low opening.
- Provide additional riprap at storm sewer outfall to Colleen Wetland.
- Raise bituminous trail grade adjacent to the Colleen Wetland to 933.10 at EOF (Approximately
200ft of trail improvements).
- Outlet control structure with 27” discharge pipe for Colleen Wetland rate control and 24” culvert
- Pavement removal/replacement and other associated work.
The 21”/24” discharge pipe option results in a 100-year high water level elevation in the Wetland and
Ponding Area of 961.52 and 957.80, respectively.
Phased Plan
We propose that these drainage improvements should be installed as part of a phased plan. Phase 1 will
be constructed with the Arden Hill 2018 PMP Project and includes all improvements between the IOC
Wetland and the existing manhole on Colleen Avenue. Phase 2 construction will include the other
drainage improvements and have the option to be included as part of a future City project with additional
improvements.
Orifice plates located in the storm sewer structures may be necessary to maintain peak discharge rates
leaving the Wetland and Ponding Area to at or below existing conditions until the downstream
improvements are complete
Increased Inundation
The HydroCAD analysis indicates the existing condition 100-year highwater level in the Colleen Wetland
encroaches onto the property of 1457 Colleen Avenue, past the easement. Increasing pipe sizes and
mitigating the increased peak flow rates at the trail crossing to will raise 100-year highwater levels and
cause additional encroach onto private properties. Figure 5 shows the increase in highwater level for the
18” option and 21”/24” option in the Colleen Wetland. The 21”/24” option results in an estimated 4’
additional encroachment on the 1457 Colleen Avenue property and 25’ of encroachment on the 1449
Colleen Avenue property. The 18” options results in slightly less encroachment than the 21”/24” option.
The highwater bounce area of additional inundation is located along a steep wooded slope on the low
side of a retaining wall. The amount of inundation will be confirmed based on final design, refined
analysis, and design-level survey.
City of Arden Hills - Indian Oaks Area Downstream Drainage Review
March 12, 2018
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Figure 5. Colleen Wetland 100-yr Highwater Level
Anticipated Costs
A feasibility level Opinion of Probable Construction Costs was prepared as part of this drainage study for
the 18” and 21”/24” option. The environmental review of the Colleen Wetland has not been completed at
this time. It should be anticipated that purchasing wetland credits or wetland mitigation will likely be
necessary for encroachment from the trail improvements. A line item estimate for phase 2 improvement
costs is provided in Attachment C. A phase 1 construction cost estimate was not prepared since the cost
difference is expected to only include the pipe costs. Orifice plates for phase 1 construction are included
in the estimate. This estimate does not include any potential private utility adjustments. The 18” and
21”/24” options are estimated to have a total cost approximately $229,000 and $252,000.
The phase 2 construction may have wetland impacts pending environmental review and design grading.
We anticipate a wetland mitigation credits to cost around $4000 to $7000.
V. RECOMMENDATIONS
While lowering the IOC Wetland outlet provides additional flood protection, restricting peak flow rates to at
or below existing conditions does not provide freeboard below the low opening elevation of the home at
1416 Indian Oak Court. Based on the findings of this drainage review and evaluation of potential
downstream improvements and costs we offer the following recommendations:
City of Arden Hills - Indian Oaks Area Downstream Drainage Review
March 12, 2018
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- Implement the 21”/24” option described in Section IV for phase 1 and 2 construction.
o This option provides a high water level in the IOC Wetland of approximately 1 foot from
the low opening of the home 1416 Indian Oak Court and 0.5-foot freeboard from the
Indian Oaks Court roadway.
o HDPE pipe can be installed within the drainage easement between Indian Oaks Court
and Colleen Avenue to minimize equipment use between homes.
o This option costs roughly $23,000 more than the 18” option and results in additional
freeboard.
- Orifice plates will be necessary inside manholes to temporary reduce peak discharge rates until
downstream improvements to accommodate the rate increase can occur.
- Advanced the design of phase 2 and construct the improvements to provide flood protection as
soon as feasible.
VI. NEXT STEPS
If the City of Arden Hills wishes to pursue the phased approach described in this memorandum, the
following tasks will need to be completed:
- Adjust the 2018 PMP Project (Phase 1) construction documents to reflect the desired
downstream improvements option.
- Environmental review and wetland delineation of the Colleen Wetland and drainage channel.
- Complete a design-level survey of the trail improvements area
- Refine the existing and proposed condition stormwater models and analysis with an advanced
design and detailed topographic survey data.
- Coordination with Rice Creek Watershed District including preliminary meetings and permitting
- Easement Acquisition Coordination (If necessary)
- Final phase 2 design and construction document preparation.
Please let WSB know if you have any questions or would like to sit down to discuss further.
Attachment A
Exhibits
16"4"12"6"16"14"12"13"16"18"12"12"14"6"16"10"24"8"16"POND20.0010.00DRAINAGE ESM'TDRAINAGE ESM'TCENTERLINE SEWER ESM'T DOC. NO. 1793293UTILITY ESM'TWALKWAY2"2"2"24"16"16"20"8"21"14"14"16"18"16"IOCWETLAND1414 COLLEEN AVELOW OPENING 962.44INDIAN OAKS COURTCOLLEEN AVELOW OPENING 963.181416 INDIAN OAKS COURTLOW OPENING 962.55 PONDING AREAEXISTING: 15" RCPPROPOSED: 18" RCP or 24" RCPEXISTING: 15" RCPPROPOSED: DIRECTIONAL DRILL 12" HDPEor 18" HDPE ADDITIONAL INLET AT SAGAPPROXIMATE GARAGE FLOOR 956.90EXISTING: 12" PVCPROPOSED: 18" HDPE or 24" HDPECOLLEENWETLANDNORMA AVE
JAMES AVE COLLEEN COURTTIMBER RETAINING WALLEXISTING: 12" RCPPROPOSED: 18" HDPE or 24" HDPEEXISTING: STORM SEWER DAYLIGHTED TO SURFACEPROPOSED: AREA INLETS WITH 18" HDPE or 24" HDPEEXISTING: 12" RCPPROPOSED: 18" RCP or 21" RCPPROPOSED: RE-ESTABLISH EOFPROPOSED: RE-ESTABLISH EOFEND PHASE 1 CONSTRUCTIONPROPOSED TRAIL IMPROVEMENTSDOWNSTREAM CHANNELSCALE IN FEET02550NWSBWSB PROJECT NO.:010111-000SCALE:PLAN BY:DESIGN BY:CHECK BY:I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION,
OR REPORT WAS PREPARED BY ME OR UNDER MY
DIRECT SUPERVISION AND THAT I AM A DULY
LICENSED PROFESSIONAL ENGINEER UNDER THE
LAWS OF THE STATE OF MINNESOTA.
LIC. NO:DATE:7
REVISIONS
NO.DATE DESCRIPTION
K:\010111-000\Admin\Docs\Downstream Drainage Study Memo\Figures\DOWNSTREAM IMPROVEMENTS.dwg
2018 PAVEMENT MANAGEMENT PROJECT
DOWNSTREAM DRAINAGE IMPROVEMENTS
CITY OF ARDEN HILLS, MINNESOTA
Attachment B
Analysis Results Summary
Preliminary Analysis Results SummaryDischarge OptionDesign Storm EventIOC Wetland High Water Elevation (ft)Ponding Area High Water Elevation (ft) Colleen Ave High Water Elevation (ft)Colleen Wetland High Water Elevation (ft)Ponding Area Peak Discharge Rate (cfs)Colleen Avenue Peak Discharge Rate (cfs)Colleen Wetland Peak Discharge Rate (cfs)Proposed Improvements2-year - - - 930.50 3.418.329.2910-year 961.69 960.22 953.72 931.36 5.1313.0025.99100-year 963.03 932.43 955.52 931.71 12.6715.2466.692-year----3.47--10-year960.16957.23--6.15--100-year962.52961.71--10.87--2-year---930.403.978.939.3210-year959.97956.60951.81931.846.8715.8125.71100-year962.20959.47955.23933.0913.5423.1666.382-year---930.154.128.929.2610-year959.75956.34950.68931.678.9215.8924.39100-year961.52957.80954.97933.1917.9130.3266.68962.55 962.44 956.9 (APPROX.) NAFlooding Elevation18" HDPE18" HDPE onsite and along Colleen, Re-establish both EOF's off Colleen Ave, Directional Drill 12" DR-17 HDPE Pipe, Raise Trail to 932.80 (Est. 200 LF of Grade Raise), 18" Culvert, and 27" Culvert with Outlet Control Structure21" RCP & 24" HDPE21" outlet from pond, 24" HDPE from Indian Oaks Court to Colleen 24" RCP along Colleen, Re-establish both EOF's off Colleen Ave, Directional Drill 18" DR-17 HDPE pipe, Raise Trail to 933.10 (Est. 200 LF of Grade Raise), 24" Culvert, and 27" Culvert with Outlet Control StructureExisting ConditionsNA15" HDPERe-establish EOF's off Colleen Ave, Install 15" HDPE on site
Attachment C
Cost Estimates
WSB Project:Arden Hills 2018 PMP Downstream Drainage Improvements Design By:MJS
Project Location:City of Arden Hills Checked By:JLS
WSB Project No:010111-000 Date:3/12/2018
Item No. Description Unit
Estimated
Total
Quantity
Estimated Unit
Price
Estimated Total
Cost
1 MOBILIZATION LUMP SUM 1 $7,580.00 $7,580.00
2 CLEARING TREE 25 $300.00 $7,500.00
3 GRUBBING TREE 25 $300.00 $7,500.00
4 REMOVE SEWER PIPE (STORM)LIN FT 280 $15.00 $4,200.00
5 REMOVE CONCRETE CURB AND GUTTER LIN FT 330 $5.00 $1,650.00
6 REMOVE DRAINAGE STRUCTURE EACH 2 $300.00 $600.00
7 REMOVE BITUMINOUS WALK SQ FT 1,600 $1.75 $2,800.00
8 REMOVE BITUMINOUS PAVEMENT SQ YD 655 $6.00 $3,930.00
9 SAWING PAVEMENT (FULL DEPTH)LIN FT 400 $5.00 $2,000.00
10 SALVAGE AND REINSTALL MAILBOX EACH 2 $100.00 $200.00
11 COMMON EMBANKMENT (CV)CU YD 160 $30.00 $4,800.00
12 SUBGRADE EXCAVATION CU YD 430 $15.00 $6,450.00
13 SELECT GRANULAR BORROW (CV)CU YD 130 $24.00 $3,120.00
14 GEOTEXTILE FABRIC TYPE V SQ YD 1,050 $1.75 $1,837.50
15 SUBGRADE PREPARATION ROAD STA 4 $180.00 $720.00
16 AGGREGATE BASE CLASS 5 TON 160 $20.00 $3,200.00
17 BITUMINOUS WALK SQ YD 180 $25.00 $4,500.00
18 BITUMINOUS ROADWAY PAVMENT TON 50 $120.00 $6,000.00
19 UTILITY COORDINATION LUMP SUM 1 $1,000.00 $1,000.00
20 CONCRETE CURB & GUTTER LIN FT 330 $22.00 $7,260.00
21 DEWATERING LUMP SUM 1 $1,000.00 $1,000.00
22 12" GS PIPE APRON EACH 1 $250.00 $250.00
23 24" GS PIPE APRON EACH 1 $350.00 $350.00
24 CONNECT TO EXISTING STORM SEWER EACH 4 $850.00 $3,400.00
25 15" RC PIPE SEWER LIN FT 20 $45.00 $900.00
26 12" HDPE (DIRECTIONAL DRILL)LIN FT 130 $120.00 $15,600.00
27 24" CP PIPE CULVERT LIN FT 10 $42.00 $420.00
28 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4020 LIN FT 16 $400.00 $6,400.00
29 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL EACH 1 $9,000.00 $9,000.00
30 RANDOM RIPRAP CLASS IV CU YD 40 $100.00 $4,000.00
31 CASTING ASSEMBLY EACH 3 $750.00 $2,250.00
32 4" PERF PE PIPE DRAIN LIN FT 100 $9.00 $900.00
33 18" GS PIPE APRON EACH 2 $300.00 $600.00
34 27" RC PIPE APRON EACH 1 $950.00 $950.00
35 18" CP PIPE CULVERT LIN FT 20 $40.00 $800.00
36 18" RC PIPE SEWER LIN FT 250 $55.00 $13,750.00
37 27" RC PIPE CULVERT LIN FT 25 $90.00 $2,250.00
38 ORIFICE PLATES EACH 2 $900.00 $1,800.00
39 TRAFFIC CONTROL LUMP SUM 1 $2,000.00 $2,000.00
40 STREET SWEEPER (WITH PICKUP BROOM) HOUR 20 $115.00 $2,300.00
41 WATER (DUST CONTROL)MGAL 10 $45.00 $450.00
42 SILT FENCE, TYPE MACHINE SLICED LIN FT 500 $3.00 $1,500.00
43 SEDIMENT CONTROL LOG LIN FT 500 $4.00 $2,000.00
44 SODDING TYPE LAWN SQ YD 350 $7.00 $2,450.00
45 HYDRO-SEEDING SQ YD 400 $3.50 $1,400.00
Opinion of Probable Cost
PHASE 2 - DOWNSTREAM DRAINAGE IMPROVMENTS: 18" OPTION
K:\010111-000\Admin\Docs\Downstream Drainage Study Memo\Estimate and Information\Opinion of Probable Cost
WSB Project:Arden Hills 2018 PMP Downstream Drainage Improvements Design By:MJS
Project Location:City of Arden Hills Checked By:JLS
WSB Project No:010111-000 Date:3/12/2018
Item No. Description Unit
Estimated
Total
Quantity
Estimated Unit
Price
Estimated Total
Cost
Opinion of Probable Cost
PHASE 2 - DOWNSTREAM DRAINAGE IMPROVMENTS: 18" OPTION46 STORM DRAIN INLET PROTECTION EACH 3 $150.00 $450.00
47 STABILIZED CONSTRUCTION EXIT LUMP SUM 1 $1,500.00 $1,500.00
48 COMMON TOPSOIL BORROW CU YD 70 $35.00 $2,450.00
49 WATER (TURF ESTABLISHMENT)MGAL 20 $60.00 $1,200.00
18" OPTION CONSTRUCTION TOTAL $159,167.50
CONTINGENCY TOTAL (15%) $23,875.13
SUBTOTAL TOTAL $183,042.63
INDIRECT COST TOTAL (25%) $45,760.66
TOTAL - 18" OPTION DRAINAGE IMPROVEMENTS $229,000.00
1 MOBILIZATION LUMP SUM 1 $8,340.00 $8,340.00
2 CLEARING TREE 25 $300.00 $7,500.00
3 GRUBBING TREE 25 $300.00 $7,500.00
4 REMOVE SEWER PIPE (STORM)LIN FT 280 $15.00 $4,200.00
5 REMOVE CONCRETE CURB AND GUTTER LIN FT 330 $5.00 $1,650.00
6 REMOVE DRAINAGE STRUCTURE EACH 2 $300.00 $600.00
7 REMOVE BITUMINOUS WALK SQ FT 1,600 $1.75 $2,800.00
8 REMOVE BITUMINOUS PAVEMENT SQ YD 655 $6.00 $3,930.00
9 SAWING PAVEMENT (FULL DEPTH)LIN FT 400 $5.00 $2,000.00
10 SALVAGE AND REINSTALL MAILBOX EACH 2 $100.00 $200.00
11 COMMON EMBANKMENT (CV)CU YD 180 $30.00 $5,400.00
12 SUBGRADE EXCAVATION CU YD 430 $15.00 $6,450.00
13 SELECT GRANULAR BORROW (CV)CU YD 130 $24.00 $3,120.00
14 GEOTEXTILE FABRIC TYPE V SQ YD 1,050 $1.75 $1,837.50
15 SUBGRADE PREPARATION ROAD STA 4 $180.00 $720.00
16 AGGREGATE BASE CLASS 5 TON 160 $20.00 $3,200.00
17 BITUMINOUS WALK SQ YD 180 $25.00 $4,500.00
18 BITUMINOUS ROADWAY PAVMENT TON 50 $120.00 $6,000.00
19 UTILITY COORDINATION LUMP SUM 1 $1,000.00 $1,000.00
20 CONCRETE CURB & GUTTER LIN FT 330 $22.00 $7,260.00
21 DEWATERING LUMP SUM 1 $1,000.00 $1,000.00
22 18" GS PIPE APRON EACH 1 $300.00 $300.00
23 CONNECT TO EXISTING STORM SEWER EACH 4 $850.00 $3,400.00
24 15" RC PIPE SEWER LIN FT 20 $45.00 $900.00
25 18" HDPE (DIRECTIONAL DRILL)LIN FT 130 $155.00 $20,150.00
26 CONSTRUCT DRAINAGE STRUCTURE DESIGN 60-4020 LIN FT 16 $520.00 $8,320.00
27 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL EACH 1 $11,000.00 $11,000.00
28 RANDOM RIPRAP CLASS IV CU YD 50 $100.00 $5,000.00
29 CASTING ASSEMBLY EACH 3 $750.00 $2,250.00
30 4" PERF PE PIPE DRAIN LIN FT 100 $9.00 $900.00
31 24" GS PIPE APRON EACH 3 $350.00 $1,050.00
32 27" RC PIPE APRON EACH 1 $950.00 $950.00
33 24" CP PIPE CULVERT LIN FT 35 $45.00 $1,575.00
34 24" RC PIPE SEWER LIN FT 250 $70.00 $17,500.00
35 27" RC PIPE CULVERT LIN FT 25 $90.00 $2,250.00
36 ORIFICE PLATES EACH 2 $900.00 $1,800.00
PHASE 2 - DOWNSTREAM DRAINAGE IMPROVMENTS: 21"/24" OPTION
K:\010111-000\Admin\Docs\Downstream Drainage Study Memo\Estimate and Information\Opinion of Probable Cost
WSB Project:Arden Hills 2018 PMP Downstream Drainage Improvements Design By:MJS
Project Location:City of Arden Hills Checked By:JLS
WSB Project No:010111-000 Date:3/12/2018
Item No. Description Unit
Estimated
Total
Quantity
Estimated Unit
Price
Estimated Total
Cost
Opinion of Probable Cost
PHASE 2 - DOWNSTREAM DRAINAGE IMPROVMENTS: 18" OPTION37 TRAFFIC CONTROL LUMP SUM 1 $2,000.00 $2,000.00
38 STREET SWEEPER (WITH PICKUP BROOM) HOUR 20 $115.00 $2,300.00
39 WATER (DUST CONTROL)MGAL 10 $45.00 $450.00
40 SILT FENCE LIN FT 500 $3.00 $1,500.00
41 SEDIMENT CONTROL LOG LIN FT 500 $4.00 $2,000.00
42 SODDING TYPE LAWN SQ YD 350 $7.00 $2,450.00
43 HYDRO-SEEDING SQ YD 450 $3.50 $1,575.00
44 STORM DRAIN INLET PROTECTION EACH 3 $150.00 $450.00
45 STABILIZED CONSTRUCTION EXIT LUMP SUM 1 $1,500.00 $1,500.00
46 COMMON TOPSOIL BORROW CU YD 80 $35.00 $2,800.00
47 WATER (TURF ESTABLISHMENT)MGAL 25 $60.00 $1,500.00
21"/24" OPTION CONSTRUCTION TOTAL $175,077.50
CONTINGENCY TOTAL (15%) $26,261.63
SUBTOTAL TOTAL $201,339.13
INDIRECT COST TOTAL (25%) $50,334.78
TOTAL - 21"/24" OPTION DRAINAGE IMPROVEMENTS $252,000.00
K:\010111-000\Admin\Docs\Downstream Drainage Study Memo\Estimate and Information\Opinion of Probable Cost
June 20, 2018
Ms. Sue Polka, P.E.
City of Arden Hills
Public Works Director/City Engineer
1245 West Highway 96
Arden Hills, MN 55112
RE: Colleen Avenue Drainage Improvements
Proposal for Preliminary and Final Design Services
Dear Ms. Polka:
We are pleased to provide you with this proposal for professional engineering and surveying services in
support of the Colleen Avenue Drainage Improvement project. Our project understanding and scope of
work have been crafted based on our recent conversations, a site meeting with the neighbors and a
review of the March 12, 2018 “Indian Oaks Area Downstream Drainage Review” and feasibility report.
For this scope of work outlined herein, Bolton & Menk proposes to provide an estimated 335 hours of
surveying and engineering professional services for a total estimated, not-to-exceed, fee of $42,142.
We understand portions of the drainage improvements identified in the report have been included in
the recently awarded 2018 Street & Utility Construction, which is currently under construction. This
proposal is for the design of the Colleen Avenue drainage improvements as outlined in the report. We
believe the City will find outstanding service and value in our approach to the Colleen Avenue Drainage
Improvements project as a result of our client focus, relevant project experience, and our dedication to
effective communication with the City and the neighboring property owner partners.
Client Focus –A successful project comes from a thorough understanding of your expectations. As an
extension of city staff, our staff actively works to understand City and project needs through meaningful
communications. We understand the importance of communicating expectations and goals to project
stakeholders (residents and staff) and will exceed your expectation to ensure a successful project.
Project Experience –Our strength in municipal engineering is derived from our talented and
experienced staff, extensive project and design experience, and our dedication to maintaining a
relationship with city staff and residents. Our team has provided a high level of engineering service on a
variety of City roadway and drainage projects, similar in scope, size and complexity. We are confident
our project experience will translate well to the Colleen Avenue Drainage Project for the City.
Ms. Sue Polka
June 20, 2018
Page 2
Effective Project Communication –We deliver sound engineering solutions and provide quality
design and surveying efforts, but also believe in making communication a priority. We intend to work
closely with City staff developing design options and effectively communicating with neighbors effected
by the project. Close coordination with City staff, as well as regular communication with residents will
be essential for the success of this project. Like you, Bolton & Menk, Inc. takes great pride in providing
engineering solutions that are safe, sustainable, and beautiful. We understand design needs and
challenges and with inclusive communications, implement solutions that work for the City of Arden Hills.
In service to City of Arden Hills, we appreciate the City’s consideration of our proposal to design the
Colleen Avenue Drainage Improvement project. If the City is agreeable with our proposal, Bolton &
Menk is ready to enter into an agreement to perform the work. Please contact me at 763-710-1514 or
johnmo@bolton-menk.com if you have any questions regarding our proposal.
Respectfully submitted,
Accepted by
John W. Morast, P.E.
Senior Project Manager ____________________________
Date: _______________________
Submitted by Bolton & Menk, Inc.Colleen Avenue Drainage Improvements | City of Arden Hills, Minnesota 3
Proposal for
Colleen Avenue Drainage Improvements
City of Arden Hills, Minnesota
Project Understanding
The City of Arden Hills designed the 2018 Street and Utility Improvement Project which is currently under construction.
The project includes storm drainage improvements that tie into the existing system on Colleen Avenue. Further
investigation into the Colleen Avenue drainage connections, outflows, ponding areas and wetlands was performed by
WSB & Associates and summarized in the “Indian Oaks Area Downstream Drainage Review” Report dated March 12,
2018. This report is intended for use as the basis of final design.
The report identifies several areas of concern for the Colleen Avenue drainage area, in regards to storm drainage,
wetlands, conveyance and flooding. Per our discussions, the City desires to take action and design Colleen Avenue
improvements identified in the Report. For the Colleen Avenue Drainage area, the report recommends:
Upgrading the stormwater outlet into the Colleen Avenue wetland with a directionally drilled 18” HDPE pipe
Replacing catch basins and connections to the outlet pipe
Delineating the Colleen Wetland
Securing permits for the drainage work
Redesigning the bituminous trail downstream of the Colleen Wetland to provide a new outlet elevation
Reestablishing an EOF north of Colleen Avenue to 1-foot below adjacent house openings
Providing an outlet control structure for the Colleen Wetland
Associated pavement repairs necessary for completion of the drainage improvements
Detailed Work Plan
Bolton & Menk understands the importance of not only achieving the desired outcome of each of the following tasks but
also completing them on time and within budget, while developing an engineering solution that work for both the City
and the residents. It is our commitment to facilitate a successful project for the City of Arden Hills. We will put special
emphasis on working with city staff and affected residents to assure the project’s success. A summary of our approach
to key project elements is outlined below.
Task 1: Survey Services
Project survey work includes a topographic survey to support the stormwater analysis and design of the recommended
improvements on Colleen Avenue, the connection route to the Colleen Wetland and downstream of the Colleen
Wetland, including the bituminous trail. A Gopher State One Call process for locating private utilities will be undertaken
and marked utilities will be included in the project base mapping.
Topographic survey work will be completed in around the properties at 1441, 1449, and 1457 Colleen Avenue where
storm sewer improvements are planned. Topographic work will also be completed within 15 feet of each side of the
existing trail. We understand some topographic survey work was completed for the City’s adjacent 2018 Street & Utility
Improvements project. Prior to initiation of our survey activities, Bolton & Menk would request this information be
provided to us so we may investigate opportunities for project savings by minimizing duplication of survey efforts.
Some areas adjacent to the project area are rolling, heavily wooded terrain and/or are wetlands which are not to be
impacted. LiDAR data will be relied upon for these areas to reduce costs of survey to the City, for which there would be
limited benefit during design. Topographic survey data compiled by us, data compiled by others, and wetland
delineation data will be combined with available LiDAR data over such areas to create the project base survey files.
There are potential changes in the modeled surface water elevations following the project, and the impact on adjacent
properties is not precisely known. Existing property easements from the area plats and nine O&E reports to be secured
Submitted by Bolton & Menk, Inc.Colleen Avenue Drainage Improvements | City of Arden Hills, Minnesota 4
Proposal for
Colleen Avenue Drainage Improvements
City of Arden Hills, Minnesota
by Bolton & Menk will be drafted within the project existing conditions drawings and will be reviewed against proposed
100 year water surface elevations to determine if additional drainage easements will be necessary.
Upon review of existing easements in comparison to the identified HWL from the previous report, Bolton & Menk will
determine where any additional easements will be required for storm drainage changes, research and develop the
easement documents, and stake easement locations. Easement acquisition services are not included in the proposal. If
the City desires Bolton & Menk to assist further in easement acquisition, this additional service can be specifically
scoped once details are better known.
Task 2: Wetland Delineation & Permit Coordination
The existing drainage system discharges into the Colleen Wetland, with work activities anticipated to occur in or around
the wetland. Bolton & Menk will visit the site to delineate all wetland boundaries above the banks of the ditch within
the designated study area. The delineation will include performing transects and sampling in the vicinity of the identified
wetlands, placing 3-foot pin flags at the limits of any wetlands found, using a sub-meter GPS unit to accurately locate
and map each point, and preparing a written report of our findings. BMI will submit the report to the appropriate
reviewing agencies for approval. We will also collect and review for any existing information regarding this wetland, such
as current and historical aerial photography, Ramsey County LIDAR maps, NWI maps, DNR data and the Ramsey County
soils maps
Bolton & Menk will use the wetland delineation to avoid impacts to the wetland, but also identify any impacts that
cannot be reasonably avoided and prepare the appropriate permit applications. Permit application preparation will
include GIS based figures and sequencing analysis, permit narrative and project plan set.
Our proposal for a wetland impact permitting for the above mentioned project includes the following:
Background Information Search and GIS Mapping
Wetland Delineation
Wetland Replacement Plan
Coordination of the following permits:
o US Army Corps Section 404 Permit
o Wetland Conservation Act (WCA) Replacement Plan Permitting
o Rice Creek Watershed District Permitting
o NPDES Construction Stormwater Permitting
Reviewing agencies often request additional information and/or a meeting during the review process. We have assumed
three such meetings. If our attendance is requested at any additional meetings to discuss the acceptance of the
submitted application or the agencies request additional information, our participation will be provided on an hourly
basis.
Please note that the WCA permit review process can take up to 60 days and the Corps review process can take as long as
180 days. It is our intent to organize project activities to minimize the impact of such permit review timelines on the
project schedule.
Submitted by Bolton & Menk, Inc.Colleen Avenue Drainage Improvements | City of Arden Hills, Minnesota 5
Proposal for
Colleen Avenue Drainage Improvements
City of Arden Hills, Minnesota
Task 3: Project Design, Plans, & Specifications
From the storm water model prepared by others and determination of HWL and EOF elevations, Bolton & Menk will
develop final plans and specifications for the storm sewer, raising the bituminous trail prescribed 932.80 elevation, and
associated restoration efforts.
Up to three alternatives will be considered and reviewed with the City for installation of storm sewer between Colleen
Avenue and the wetland. Should a trenchless method be preferred consistent with the preliminary design
recommendation, we would recommend geotechnical work be completed to identify potential risks during construction
and enable proper bidding of trenchless work by contractors. Recommendations regarding the necessity of geotechnical
work, or lack thereof depending on review of installation alternatives, will be made as part of our final design efforts.
Geotechnical efforts are not included in this proposed scope.
Final plans for the project will be completed to meet City Standards. The plans will be developed in Civil 3D software and
are anticipated to include the following sections:
Plan and profiles sheets of the storm drainage system including drainage structures and pipe discharge
Plan and profiles, as well as cross sections at 25’ intervals, for the bituminous path
Roadway patching/partial reconstruction for storm sewer installation.
Title sheet, legend, removals/existing conditions, construction details, and SWPPP sheets
60% and 90% plan sets will be developed for City review and comment. Project specifications and construction estimates
will also be developed utilizing Bolton & Menk’s standard format for the final bid package.
Bolton and Menk will assist the City in advertising the project for competitive bidding, reviewing and responding to any
bidder questions, developing and issuing any addenda necessary, reviewing the bids, and making a recommendation for
award. If the City desires construction phase services, Bolton & Menk can provide such efforts under a separate
proposal.
Task 4: Project Management and Meetings
Bolton & Menk’s project manager will manage and coordinate the project progress, milestones, and schedule.
Anticipated project meetings include two neighborhood and stakeholder meetings; three wetland coordination and
review meetings; three City staff project update/review meetings, and one City Council or Advisory Commission
meeting.
Submitted by Bolton & Menk, Inc.Colleen Avenue Drainage Improvements | City of Arden Hills, Minnesota 6
Proposal for
Colleen Avenue Drainage Improvements
City of Arden Hills, Minnesota
Fees
The following tables summarize the estimated hours and cost breakdown for each major work task item.
The estimated fee includes labor, general business, and other normal and customary expenses associated with operating
a professional business.No separate charge will be applied for routine expenses, such as:
Vehicle and personal expenses and mileage
Telephone, computer, CAD, or other software usage
Routine expendable supplies
Printing project plans, specifications, memoranda, or other project documentation
Expenses beyond the agreed scope of services and non-routine expenses, such as large quantities of prints (other than
those for public notifications within the project area), out-sourced graphics and photographic reproductions, document
recording fees, outside professional and technical assistance, permit fees, wetland banking credits, and other items of
this general nature will be invoiced separately.
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
FROM: Dave Perrault, City Administrator
SUBJECT: Authorize to Post for Senior Engineering Technician Position
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Council Should Consider
The Council should consider authorizing City Staff to post for a Senior Engineering Technician
position. This position is non-supervisory and hourly.
Background
City Staff and the Personnel Committee have discussed and are supportive of moving forward
with a Senior Engineering Technician position.
Anticipated process:
-Council approves authorization to post
-Staff advertises job opening
-Staff reviews applications, interviews candidates, and selects a finalist
-Staff will add their recommendation to the consent calendar of a future meeting
This position will not be brought forward to the Personnel Committee or City Council for future
consideration, except for final approval at a City Council meeting.
Attachment
N/A
CONSENT ITEM – 7D
MEMORANDUM
Page 1 of 1
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
David Perrault, City Administrator
FROM: Sue Polka, Public Works Director/City Engineer
SUBJECT: 2018 Street and Utility Improvement Project – Payment No. 1
Budgeted Amount: Actual Amount: Funding Sources:
$3,300,000 $2,491,595.86 PIR, Special Assessments,
Utility Funds
Council Should Consider
The City Council is requested to approve Payment No. 1 for the 2018 Street and Utility
Improvement Project to Northwest Asphalt, Inc.in the amount of $83,641.23.
Discussion
On March 26, 2018, the City Council adopted Resolution 2018-034 Awarding the 2018 Street
and Utility Improvement Project to Northwest Asphalt, Inc. in the amount of $2,491,595.86.
The project is approximately 3.5% complete with the reclamation area ready for paving,
watermain in the Floral neighborhood is underway, storm sewer installation and grading
underway. Five percent is being withheld from the work completed in accordance with the
contract documents. The first payment is in the amount of $83,641.23. WSB has provided a
recommendation to pay the first voucher (Attachment A). Staff recommends that Council
approve Payment No. 1.
Attachments
Attachment A: WSB Letter
Attachment B: Payment No. 1
CONSENT ITEM – 7E
MEMORANDUM
701 Xenia Avenue South | Suite 300 | Minneapolis, MN 55416 | (763) 541-4800
Building a legacy – your legacy.
Equal Opportunity Employer | wsbeng.com
K:\010111-000\Admin\Construction Admin\Pay Vouchers\R-010111-000 CST LTR VO 1 CTY-s polka-062018.docx
June 20, 2018
Ms. Sue Polka, PE
Public Works Director/City Engineer
City of Arden Hills
1245 West Highway 96
Arden Hills, MN 55112
Re: Construction Pay Voucher No. 1
2018 Street and Utility Improvement Project
City Project No. PW-17-0102
City of Arden Hills, MN
WSB Project No. R-010111-000
Dear Ms. Polka:
Please find enclosed Construction Pay Voucher No. 1 in the amount of $83,641.23 for the above-
referenced project. The quantities completed to date have been reviewed and agreed upon by the
contractor, and we hereby recommend that the City of Arden Hills approve Construction Pay Voucher No.
1 in the amount of $83,641.23 for Northwest Asphalt, Inc. Once processed, please keep one copy for
your records and return two copies to our office, one for the contractor and one for our files.
If you have any questions or comments regarding the enclosed, please contact me at (763) 287-7191.
Sincerely,
WSB & Associates, Inc.
Andrew J. Brotzler, PE
Project Manager
Enclosures
srb
Page 1 of 1
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
David Perrault, City Administrator
FROM: Sue Polka, Public Works Director/City Engineer
SUBJECT: Old Snelling Trail and Watermain – Payment No. 2
Budgeted Amount: Actual Amount: Funding Sources:
$2,977,000 $3,376,269.85 Ramsey County/MSAS, PIR,
Development Reimbursement,
Water Utility
Council Should Consider
The City Council is requested to approve Payment No. 2 for the Old Snelling Trail and
Watermain Improvements Contract to Sunram Construction, Inc. in the amount of $582,541.66.
Discussion
On March 26, 2018, the City Council adopted Resolution 2018-022 Awarding the Old Snelling
Trail and Watermain Improvements to Sunram Construction, Inc. in the amount of
$3,376,269.85. Council approved Payment #1 in the amount of $270,512.93 on June 11, 2018.
The project is approximately 25.6% complete with the watermain portion of the project almost
completed and retaining walls under construction. Five percent is being withheld from the work
completed in accordance with the contract documents. The second payment is in the amount of
$582,541.66. WSB has provided a recommendation to pay the second voucher (Attachment A).
Staff recommends that Council approve Payment No. 2.
Attachments
Attachment A: WSB Letter
Attachment B: Payment No. 2
CONSENT ITEM – 7F
MEMORANDUM
701 Xenia Avenue South | Suite 300 | Minneapolis, MN 55416 | (763) 541-4800
Building a legacy – your legacy.
Equal Opportunity Employer | wsbeng.com
\\gvfiles01\projects\03455-140\Admin\Construction Admin\Pay Vouchers\3455-140 CST LTR VO 2 CTY-s polka-062018.docx
June 20, 2018
Ms. Sue Polka, PE
Public Works Director/City Engineer
City of Arden Hills
1245 West Highway 96
Arden Hills, MN 55112
Re: Construction Pay Voucher No. 2
Old Snelling Trail Extension & Watermain Improvements
City Project No. PW -17-0100
S.A.P. 187-020-021 / 187-020-022 / 187-020-023
City of Arden Hills, MN
WSB Project No. 3455-140
Dear Ms. Polka:
Please find enclosed Construction Pay Voucher No. 2 in the amount of $582,541.66 for the above-
referenced project. The quantities completed to date have been reviewed and agreed upon by the
contractor, and we hereby recommend that the City of Arden Hills approve Construction Pay Voucher No.
2 in the amount of $582,541.66 for Sunram Construction, Inc. Once processed, please keep one copy for
your records and return two copies to our office, one for the contractor and one for our files.
If you have any questions or comments regarding the enclosed, please contact me at (763) 286-6141.
Sincerely,
WSB & Associates, Inc.
Craig Alberg, PE
Project Manager
Enclosures
srb
Page 1 of 2
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
David Perrault, City Administrator
FROM: Sue Polka, Public Works Director
SUBJECT: Night Work Construction Activity Waiver
County Road F Improvements
Requested Action
Approve the Night Time Construction Activity Waiver for the County Road F Improvement
Project between Tuesday, June 26 and Wednesday, August 15, 2018.
Background/Discussion
C. S. McCrossan, the Contractor for the County Road F Improvement Project, has requested the
ability to complete portions of the construction in the early morning beginning at 6:00 a.m.
Monday through Friday and 7:00 a.m. on Saturday, Sunday and holidays. This request is being
made to lessen traffic impacts and improve scheduling of various construction activities. C. S.
McCrossan has requested that early morning work be allowed throughout the project duration.
City Ordinance does allow for a Waiver to the Ordinance to allow night time operations. The
specific wording of the Ordinance is reproduced below:
Section 630 - Construction Activities
630.01 Prohibited Activities.
No person shall engage in or permit construction activities involving the use of any kind of
electric, diesel or gas powered machine or other power equipment except between the hours of
7:00 a.m. and 9:00 p.m. on any weekday or between the hours of 8:00 a.m. and 9:00 p.m. on any
weekend or holiday.
NEW BUSINESS – 10A
MEMORANDUM
Page 2 of 2
630.10 Prohibited Activities.
Except as allowed by permit of the City Council, no person shall engage in or permit
construction activities involving the use of any kind of electric, diesel or gas powered machine or
other power equipment except between the hours of 7:00 a.m. and 9:00 p.m. on any weekday or
between the hours of 8:00 a.m. and 9:00 p.m. on any weekend or holiday. Upon application for a
waiver and notification to all properties within 500 feet from the property line at least ten days
prior to the City Council meeting, the City Council may grant a permit waiving the requirements
of this Section for maintenance activities and may impose reasonable conditions to it.
C.S. McCrossan’s request is attached. Also attached is the letter City staff sent to properties
within 500 feet of County Road F as required by the Ordinance. Finally, attached is a map
showing the properties that were notified.
As of the preparation of this memo, one response was received by the owner of Arden Flats
located at 1290 West County Road F. They are requesting denial of the waiver.
Attachments
Attachment A: Night Time Construction Activity Request
Attachment B: Letter of notification to surrounding properties
Attachment C: Map of properties notified
Attachment D: Email from Sand Companies – Arden Flats
City of Arden Hills ▪1245 West Highway 96 ▪ Arden Hills Minnesota 55112
Phone 651.792.7800 ▪ Fax 651.634.5137 ▪ www.cityofardenhills.org
June 8, 2018
To Whom It May Concern
RE: County Road F Improvements
C. S. McCrossan, the Contractor for the County Road F Improvement Project, has requested the ability to
complete portions of the construction in the early morning. This request is being made to lessen traffic
impacts and improve scheduling of various construction activities. C. S. McCrossan has requested that
early morning work be allowed throughout the project duration.
The City of Arden Hills has working restrictions that prevent construction activities before 7:00 am
Monday through Friday and before 8:00 am on Saturday, Sunday and holidays. There is a process that
allows the City Council to grant a waiver from these restrictions. C. S. McCrossan has requested a
waiver from the City to allow construction activities to start at 6:00 am Monday through Friday and 7:00
am on Saturdays. This notification is being provided to inform you that the City Council will be
considering the issue of granting a waiver to C.S. Mc Crossan for morning work from June 26th through
the duration of the project which is scheduled for substantial completion by August 15, 2018. The City
Council will be considering the issue at their meeting on Monday, June 25, 2018 at 7:00 pm.
If you have any comments on this request please forward them to:
Sue Polka, P.E.
Public Works Director/City Engineer
City of Arden Hills
1245 West Highway 96
Arden Hills, MN 55112
(651) 792-7846
spolka@cityofardenhills.org
Notification Letters
Legend
Municipal Boundary
City Mask
June 18, 2018
Map Powered by DataLink from WSB & Associates
1 in = 752 ft
±
Page 1 of 1
UNFINISHED BUSINESS – 11A
MEMORANDUM
DATE: June 25, 2018
TO: Honorable Mayor and City Councilmembers
Dave Perrault, City Administrator
FROM: Gayle Bauman, Finance Director
SUBJECT: Resolution Authorizing the Issuance and Awarding the Sale of 2018A General
Obligation Utility Revenue Bonds
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Council Should Consider
Motion to adopt the attached Resolution 2018-045 awarding the sale of General Obligation
Utility Revenue Bonds, Series 2018A. Pending a favorable recommendation from Ehlers &
Associates. Authorize the Finance Director to make all necessary budget adjustments to account
for the new bonds.
Background
On May 29, 2018, the Council gave preliminary approval for the sale of $2,600,000 of General
Obligation Utility Revenue Bonds.
Discussion
Ehlers & Associates has solicited proposals for the sale of the bonds and on June 25, 2018, bids
will be opened and a tabulation of the proposals will be presented. The lowest bid will be
recommended to the Council for approval.
Attachment
Attachment A: Resolution 2018-045
1
Extract of Minutes of Meeting
of the City Council of the City of
Arden Hills, Ramsey County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Arden Hills, Minnesota, was duly held in the City Hall in said City on Monday, June 25,
2018, commencing at 7:00 P.M.
The following members were present:
and the following were absent:
* * * * * * * * *
The Mayor announced that the next order of business was consideration of the proposals
which had been received for the purchase of the City's General Obligation Utility Revenue
Bonds, Series 2018A, to be issued in the original aggregate principal amount of $_________.
The City Administrator presented a tabulation of the proposals that have been received in
the manner specified in the Terms of Proposal for the Bonds. The proposals are as set forth in
Exhibit A attached.
After due consideration of the proposals, Member ____________________ then
introduced the following resolution, the reading of which was dispensed with by unanimous
consent, and moved its adoption:
2
RESOLUTION NO. 2018-045
A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION
UTILITY REVENUE BONDS, SERIES 2018A, IN THE ORIGINAL
AGGREGATE PRINCIPAL AMOUNT OF $________; FIXING THEIR
FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND
DELIVERY; AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council (the “Council”) of the City of Arden Hills,
Ramsey County, Minnesota (the “City”) as follows:
Section 1. Sale of Bonds.
1.01 Authority. It is hereby determined that:
(a) The City engineer has recommended the construction of various improvements to
the City’s water and sewer systems (collectively, the “Utility Improvements”), pursuant to
Minnesota Statutes, Chapters 444 and 475, as amended (collectively, the “Act”).
(b) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its General Obligation Utility Revenue Bonds, Series 2018A (the “Bonds”), in
the original aggregate principal amount of $_________, pursuant to the Act, to provide financing
for the Utility Improvements.
(c) The City is authorized by Section 475.60, subdivision 2(9), of the Act to negotiate
the sale of the Bonds, it being determined that the City has retained an independent municipal
advisor in connection with such sale. The actions of the City staff and the City’s municipal
advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects.
1.02. Award to the Purchaser and Interest Rates. The proposal of
__________________________________ (the “Purchaser”) to purchase the Bonds of the City is
hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being
to purchase the Bonds at a price of $_______ (par amount of $_________, plus original issue
premium of $_______, less original issue discount of $_______, less underwriter’s discount of
$_______), plus accrued interest to date of delivery, if any, for Bonds bearing interest as follows:
Year Interest Rate Year Interest Rate
2020 2025
2021 2026
2022 2027
2023 2028
2024 2029
True interest cost: _________%
3
1.03. Purchase Contract. The amount proposed by the Purchaser in excess of the
minimum bid shall be credited to the Debt Service Fund hereinafter created or deposited in the
Construction Fund hereinafter created, as determined by the City Finance Director in
consultation with the City’s municipal advisor. The City Finance Director is directed to deposit
the good faith check or deposit of the Purchaser, pending completion of the sale of the Bonds,
and to return the good faith deposits of the unsuccessful proposers. The Mayor and City
Administrator are directed to execute a contract with the Purchaser on behalf of the City.
1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and
sell the Bonds pursuant to the Act in the total principal amount of $_________, originally dated
July 18, 2018, in the denomination of $5,000 each or any integral multiple thereof, numbered
No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the
years and amounts as follows:
Year Amount Year Amount
2020 2025
2021 2026
2022 2027
2023 2028
2024 2029
1.05. Optional Redemption. The City may elect on February 1, 2027, and on any day
thereafter to prepay Bonds due on or after February 1, 2028. Redemption may be in whole or in
part and if in part, at the option of the City and in such manner as the City will determine. If less
than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in
Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine
by lot the amount of each participant’s interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be
redeemed. Prepayments will be at a price of par plus accrued interest.
[1.06. Term Bonds. To be completed if Term Bonds are requested by the Purchaser.]
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by
check or draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest
payment date preceding the date of authentication to which interest on the Bond has been paid or
made available for payment, unless (i) the date of authentication is an interest payment date to
which interest has been paid or made available for payment, in which case the Bond will be
dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest
payment date, in which case the Bond will be dated as of the date of original issue. The interest
on the Bonds will be payable on February 1 and August 1 of each year, commencing February 1,
4
2019, to the registered owners of record thereof as of the close of business on the fifteenth day of
the immediately preceding month, whether or not that day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating
agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of
the City and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a
bond register in which the Registrar provides for the registration of ownership of Bonds
and the registration of transfers and exchanges of Bonds entitled to be registered,
transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed
by the registered owner thereof or accompanied by a written instrument of transfer, in
form satisfactory to the Registrar, duly executed by the registered owner thereof or by an
attorney duly authorized by the registered owner in writing, the Registrar will
authenticate and deliver, in the name of the designated transferee or transferees, one or
more new Bonds of a like aggregate principal amount and maturity, as requested by the
transferor. The Registrar may, however, close the books for registration of any transfer
after the fifteenth day of the month preceding each interest payment date and until that
interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner
for exchange the Registrar will authenticate and deliver one or more new Bonds of a like
aggregate principal amount and maturity as requested by the registered owner or the
owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be
promptly cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is
satisfied that the endorsement on the Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar will incur no
liability for the refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person
in whose name a Bond is registered in the bond register as the absolute owner of the
Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on
account of, the principal of and interest on the Bond and for all other purposes, and
payments so made to a registered owner or upon the owner's order will be valid and
effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or
sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the
5
owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar
for any tax, fee or other governmental charge required to be paid with respect to the
transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated
or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount,
number, maturity date and tenor in exchange and substitution for and upon cancellation
of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost,
upon the payment of the reasonable expenses and charges of the Registrar in connection
therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the
Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of
the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or
indemnity in form, substance and amount satisfactory to it and as provided by law, in
which both the City and the Registrar must be named as obligees. Bonds so surrendered
to the Registrar will be cancelled by the Registrar and evidence of such cancellation must
be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured
or been called for redemption in accordance with its terms it is not necessary to issue a
new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption,
notice thereof identifying the Bonds to be redeemed will be given by the Registrar by
mailing a copy of the redemption notice by first class mail (postage prepaid) to the
registered owner of each Bond to be redeemed at the address shown on the registration
books kept by the Registrar and by publishing the notice if required by law. Failure to
give notice by publication or by mail to any registered owner, or any defect therein, will
not affect the validity of the proceedings for the redemption of Bonds. Bonds so called
for redemption will cease to bear interest after the specified redemption date, provided
that the funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints Bond Trust Services
Corporation, Roseville, Minnesota, as the initial Registrar. The Mayor and the City
Administrator are authorized to execute and deliver, on behalf of the City, a contract with the
Registrar. Upon merger or consolidation of the Registrar with another corporation, if the
resulting corporation is a bank or trust company authorized by law to conduct such business, the
resulting corporation is authorized to act as successor Registrar. The City agrees to pay the
reasonable and customary charges of the Registrar for the services performed. The City reserves
the right to remove the Registrar upon thirty (30) days’ notice and upon the appointment of a
successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in
its possession to the successor Registrar and must deliver the bond register to the successor
Registrar. On or before each principal or interest due date, without further order of the City
Council, the City Finance Director must transmit to the Registrar money sufficient for the
payment of all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the
direction of the City Administrator and executed on behalf of the City by the signatures of the
Mayor and the City Administrator, provided that those signatures may be printed, engraved or
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lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that
signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the
officer had remained in office until delivery. Notwithstanding such execution, a Bond will not
be valid or obligatory for any purpose or entitled to any security or benefit under this resolution
unless and until a certificate of authentication on the Bond has been duly executed by the manual
signature of an authorized representative of the Registrar. Certificates of authentication on
different Bonds need not be signed by the same representative. The executed certificate of
authentication on a Bond is conclusive evidence that it has been authenticated and delivered
under this resolution. When the Bonds have been so prepared, executed and authenticated, the
City Administrator will deliver the same to the Purchaser upon payment of the purchase price in
accordance with the contract of sale heretofore made and executed, and the Purchaser is not
obligated to see to the application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive
Bonds one or more typewritten temporary Bonds in substantially the form set forth in EXHIBIT
B such changes as may be necessary to reflect more than one maturity in a single temporary
bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be
exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially
the form as attached hereto as EXHIBIT B.
3.02. Approving Legal Opinion. The City Administrator is directed to obtain a copy of
the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis,
Minnesota, and to cause the opinion to be printed on or accompany each Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds will be payable from the General Obligation
Utility Revenue Bonds, Series 2018A Debt Service Fund (the “Debt Service Fund”) hereby
created. The Debt Service Fund shall be administered and maintained by the City Finance
Director as a bookkeeping account separate and apart from all other funds maintained in the
official financial records of the City. The City will continue to maintain and operate its Water
Fund and Sewer Fund to which will be credited all gross revenues of the water system and sewer
system, respectively, and out of which will be paid all normal and reasonable expenses of current
operations of such systems. Any balances therein are deemed net revenues (the “Net Revenues”)
and will be transferred, from time to time, to the Debt Service Fund, which Debt Service Fund will
be used only to pay principal of and interest on the Bonds and any other bonds similarly
authorized. There will always be retained in the Debt Service Fund a sufficient amount to pay
principal of and interest on all the Bonds, and the City Finance Director must report any current
or anticipated deficiency in the Debt Service Fund to the City Council. There is also appropriated
to the Debt Service Fund (i) capitalized interest financed with proceeds of the Bonds, if any; and
(ii) amounts over the minimum purchase price paid by the Purchaser, to the extent designated for
7
deposit in the Debt Service Fund in accordance with Section 1.03 hereof.
4.02. Construction Fund. The City hereby creates the General Obligation Utility
Revenue Bonds, Series 2018A Construction Fund (the “Construction Fund”). Proceeds of the
Bonds, less the appropriations made in Section 4.01 hereof, will be deposited in the Construction
Fund to be used solely to defray expenses of the Utility Improvements. When the Utility
Improvements are completed and the cost thereof paid, the Construction Fund is to be closed and
any funds remaining may be deposited in the Debt Service Fund.
4.03. City Covenants. The City Council covenants and agrees with the holders of the
Bonds that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce
the following covenants and agreements:
(a) The City will continue to maintain and efficiently operate the water system
and sewer system as public utilities and conveniences free from competition of other like
municipal utilities and will cause all revenues therefrom to be deposited in bank accounts
and credited to the Water Fund and the Sewer Fund, respectively, as hereinabove
provided, and will make no expenditures from those accounts except for a duly
authorized purpose and in accordance with this resolution.
(b) The City will also maintain the Debt Service Fund as a separate account
and will cause money to be credited thereto from time to time, out of Net Revenues in
sums sufficient to pay principal of and interest on the Bonds when due.
(c) The City will keep and maintain proper and adequate books of records and
accounts separate from all other records of the City in which will be complete and correct
entries as to all transactions relating to the water system and sewer system, and which will
be open to inspection and copying by any Bondholder, or the Bondholder’s agent or
attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon
request and upon payment of a reasonable fee therefor, and said account will be audited
at least annually by a qualified public accountant and statements of such audit and report
will be furnished to all Bondholders upon request.
(d) The City Council will cause persons handling revenues of the water system
and sewer system to be bonded in reasonable amounts for the protection of the City and
the Bondholders and will cause the funds collected on account of the operations of such
systems to be deposited in a bank whose deposits are guaranteed under the Federal
Deposit Insurance Act.
(e) The City Council will keep the water system and sewer system insured at
all times against loss by fire, tornado and other risks customarily insured against with an
insurer or insurers in good standing, in such amounts as are customary for like plants, to
protect the holders, from time to time, of the Bonds and the City from any loss due to any
such casualty and will apply the proceeds of such insurance to make good any such loss.
8
(f) The City and each and all of its officers will punctually perform all duties
with reference to the water system and sewer system as required by law.
(g) The City will impose and collect charges of the nature authorized by
Section 444.075 of the Act, at the times and in the amounts required to produce Net
Revenues adequate to pay all principal and interest when due on the Bonds and to create
and maintain such reserves securing said payments as may be provided herein.
(h) The City Council will levy general ad valorem taxes on all taxable
property in the City when required to meet any deficiency in Net Revenues.
4.04. General Obligation Pledge. For the prompt and full payment of the principal of
and interest on the Bonds, as the same respectively become due, the full faith, credit, and taxing
powers of the City are irrevocably pledged. If a payment of principal of or interest on the Bonds
becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the
City Finance Director is directed to pay such principal or interest from the general fund of the
City, and the general fund will be reimbursed for those advances out of the proceeds of Net
Revenues when collected.
4.05. Debt Service Coverage. It is hereby determined that the estimated collection of
the Net Revenues for the payment of principal of and interest on the Bonds will produce at least
five percent (5%) in excess of the amount needed to meet, when due, the principal and interest
payments on the Bonds and that no tax levy is needed at this time.
4.06. Certificate of Director of Property Records and Revenue as to Registration. The
City Administrator is authorized and directed to file a certified copy of this resolution with the
Director of Property Records and Revenue of Ramsey County, Minnesota and to obtain the
certificate required by Section 475.63 of the Act.
Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are authorized and directed
to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies
of proceedings and records of the City relating to the Bonds and to the financial condition and
affairs of the City, and such other certificates, affidavits and transcripts as may be required to
show the facts within their knowledge or as shown by the books and records in their custody and
under their control, relating to the validity and marketability of the Bonds, and such instruments,
including any heretofore furnished, may be deemed representations of the City as to the facts
stated therein.
5.02. Certification as to Official Statement. The Mayor, the City Administrator, and the
City Finance Director are authorized and directed to certify that they have examined the Official
Statement prepared and circulated in connection with the issuance and sale of the Bonds and that
to the best of their knowledge and belief the Official Statement is a complete and accurate
representation of the facts and representations made therein as of the date of the Official
Statement.
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5.03. Other Certificates. The Mayor, the City Administrator, and the City Finance
Director are hereby authorized and directed to furnish to the Purchaser at the closing such
certificates as are required as a condition of sale. Unless litigation shall have been commenced
and be pending questioning the Bonds or the organization of the City or incumbency of its
officers, at the closing the Mayor, the City Administrator, and the City Finance Director shall
also execute and deliver to the Purchaser a suitable certificate as to absence of material litigation,
and the City Finance Director shall also execute and deliver a certificate as to payment for and
delivery of the Bonds.
5.04. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the
amount of Bond proceeds allocable to the payment of issuance expenses to KleinBank, Chaska,
Minnesota, on the closing date for further distribution as directed by the City’s municipal
advisor, Ehlers & Associates, Inc.
Section 6. Tax Covenant.
6.01. Tax-Exempt Bonds. The City covenants and agrees with the holders from time to
time of the Bonds that it will not take or permit to be taken by any of its officers, employees or
agents any action which would cause the interest on the Bonds to become subject to taxation
under the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury
Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or
cause its officers, employees or agents to take, all affirmative action within its power that may be
necessary to ensure that such interest will not become subject to taxation under the Code and
applicable Treasury Regulations, as presently existing or as hereafter amended and made
applicable to the Bonds.
6.02. No Rebate Required.
(a) The City will comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income of the interest on the Bonds
under Section 103 of the Code, including without limitation requirements relating to
temporary periods for investments, limitations on amounts invested at a yield greater than
the yield on the Bonds, and the rebate of excess investment earnings to the United States,
if the Bonds (together with other obligations reasonably expected to be issued in calendar
year 2018) exceed the small-issuer exception amount of $5,000,000.
(b) For purposes of qualifying for the small issuer exception to the federal
arbitrage rebate requirements, the City finds, determines and declares that the aggregate
face amount of all tax-exempt bonds (other than private activity bonds) issued by the City
(and all subordinate entities of the City) during the calendar year in which the Bonds are
issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all
within the meaning of Section 148(f)(4)(D) of the Code.
6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of
the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the
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Bonds to be “private activity bonds” within the meaning of Sections 103 and 141 through 150 of
the Code.
6.04. Qualified Tax-Exempt Obligations. In order to qualify the Bonds as “qualified
tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code, the City makes the
following factual statements and representations:
(a) the Bonds are not “private activity bonds” as defined in Section 141 of the
Code;
(b) the City hereby designates the Bonds as “qualified tax-exempt
obligations” for purposes of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than
any private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by
the City (and all subordinate entities of the City) during calendar year 2018 will not
exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during
calendar year 2018 have been designated for purposes of Section 265(b)(3) of the Code.
6.05. Procedural Requirements. The City will use its best efforts to comply with any
federal procedural requirements which may apply in order to effectuate the designations made by
this section.
Section 7. Book-Entry System; Limited Obligation of City.
7.01. DTC. The Bonds will be initially issued in the form of a separate single
typewritten or printed fully registered Bond for each of the maturities of the Bonds as described
in Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in
the registration books kept by the Registrar in the name of Cede & Co., as nominee for The
Depository Trust Company, New York, New York, and its successors and assigns (“DTC”).
Except as provided in this section, all of the outstanding Bonds will be registered in the
registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC.
7.02. Participants. With respect to Bonds registered in the registration books kept by
the Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the
Paying Agent will have no responsibility or obligation to any broker dealers, banks and other
financial institutions from time to time for which DTC holds Bonds as securities depository (the
“Participants”) or to any other person on behalf of which a Participant holds an interest in the
Bonds, including but not limited to any responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a
registered owner of Bonds, as shown by the registration books kept by the Registrar) of any
notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any
Participant or any other person, other than a registered owner of Bonds, of any amount with
11
respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the
Paying Agent may treat and consider the person in whose name each Bond is registered in the
registration books kept by the Registrar as the holder and absolute owner of such Bond for the
purpose of payment of principal, premium and interest with respect to such Bond, for the
purpose of registering transfers with respect to such Bonds, and for all other purposes. The
Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on
the order of the respective registered owners, as shown in the registration books kept by the
Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the
City’s obligations with respect to payment of principal of, premium, if any, or interest on the
Bonds to the extent of the sum or sums so paid. No person other than a registered owner of
Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond
evidencing the obligation of this resolution. Upon delivery by DTC to the City Administrator of
a written notice to the effect that DTC has determined to substitute a new nominee in place of
Cede & Co., the words “Cede & Co.” will refer to such new nominee of DTC; and upon receipt
of such a notice, the City Administrator will promptly deliver a copy of the same to the Registrar
and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (the “Representation Letter”) which shall govern
payment of principal of, premium, if any, and interest on the Bonds and notices with respect to
the Bonds. Any Paying Agent or Registrar subsequently appointed by the City with respect to
the Bonds will agree to take all action necessary for all representations of the City in the
Representation Letter with respect to the Registrar and Paying Agent, respectively, to be
complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the
City Council, determines that it is in the best interests of the persons having beneficial interests
in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon
DTC will notify the Participants, of the availability through DTC of Bond certificates. In such
event the City will issue, transfer and exchange Bond certificates as requested by DTC and any
other registered owners in accordance with the provisions of this resolution. DTC may
determine to discontinue providing its services with respect to the Bonds at any time by giving
notice to the City and discharging its responsibilities with respect thereto under applicable law.
In such event, if no successor securities depository is appointed, the City will issue and the
Registrar will authenticate Bond certificates in accordance with this resolution and the provisions
hereof will apply to the transfer, exchange and method of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution
to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC,
payments with respect to principal of, premium, if any, and interest on the Bond and notices with
respect to the Bond will be made and given, respectively in the manner provided in DTC’s
Operational Arrangements, as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. Limited Continuing Disclosure. In order to qualify the Bonds for limited
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continuing disclosure under paragraph (d)(2) of Securities and Exchange Commission Rules,
Section 15c2-12 (the SEC Rule), the City makes the following factual statement and
representation: As of the date of delivery of the Bonds, the City will not be an obligated person
(as defined in paragraph (f) of the SEC Rule) with respect to more than $10,000,000 in aggregate
amount of outstanding municipal securities, including the Bonds and excluding municipal
securities that were exempt from the SEC Rule pursuant to paragraph (d)(1) thereof.
8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City
hereby covenants and agrees that it will comply with and carry out all of the provisions of the
Continuing Disclosure Certificate. “Continuing Disclosure Certificate” means that certain
Continuing Disclosure Certificate executed by the Mayor and City Administrator and dated the
date of issuance and delivery of the Bonds, as originally executed and as it may be amended
from time to time in accordance with the terms thereof. Notwithstanding any other provision of
this resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to
be considered an event of default with respect to the Bonds; however, any Bondholder may take
such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the City to comply with its obligations under this section.
Section 9. Defeasance. When all Bonds and all interest thereon have been discharged
as provided in this section, all pledges, covenants and other rights granted by this resolution to the
holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the
prompt and full payment of the principal of and interest on the Bonds will remain in full force and
effect. The City may discharge all Bonds which are due on any date by depositing with the
Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should
not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum
sufficient for the payment thereof in full with interest accrued to the date of such deposit.
(The remainder of this page is intentionally left blank.)
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The motion for the adoption of the foregoing resolution was duly seconded by Member
_________________________, and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
A-1
EXHIBIT A
PROPOSALS
B-1
EXHIBIT B
FORM OF BOND
No. R-_____ $________
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF RAMSEY
CITY OF ARDEN HILLS
GENERAL OBLIGATION UTILITY REVENUE BOND
SERIES 2018A
Rate
Maturity
Date of
Original Issue
CUSIP
% February 1, 20__ July 18, 2018
Registered Owner: Cede & Co.
The City of Arden Hills, Minnesota, a duly organized and existing municipal corporation
in Ramsey County, Minnesota (the “City”), acknowledges itself to be indebted and for value
received hereby promises to pay to the Registered Owner specified above or registered assigns,
the principal sum of $__________ on the maturity date specified above, with interest thereon
from the date hereof at the annual rate specified above (calculated on the basis of a 360 day year of
twelve 30 day months), payable February 1 and August 1 in each year, commencing February 1,
2019, to the person in whose name this Bond is registered at the close of business on the fifteenth
day (whether or not a business day) of the immediately preceding month. The interest hereon
and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of
the United States of America by check or draft by Bond Trust Services Corporation, Roseville,
Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its
designated successor under the Resolution described herein. For the prompt and full payment of
such principal and interest as the same respectively become due, the full faith and credit and
taxing powers of the City have been and are hereby irrevocably pledged.
The City may elect on February 1, 2027, and on any day thereafter to prepay Bonds due on
or after February 1, 2028. Redemption may be in whole or in part and if in part, at the option of the
City and in such manner as the City will determine. If less than all Bonds of a maturity are called
for redemption, the City will notify The Depository Trust Company (“DTC”) of the particular
amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant’s
interest in such maturity to be redeemed and each participant will then select by lot the beneficial
ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus
accrued interest.
This Bond is one of an issue in the aggregate principal amount of $_________ all of like
original issue date and tenor, except as to number, maturity date, redemption privilege, and
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interest rate, all issued pursuant to a resolution adopted by the City Council on June 25, 2018
(the “Resolution”), for the purpose of providing money to defray the expenses incurred and to be
incurred in making improvements to the City’s water system and sewer system, pursuant to and in
full conformity with the Constitution and laws of the State of Minnesota, including Minnesota
Statutes, Chapters 444 and 475, as amended, and the principal hereof and interest hereon are
payable from net revenues of the water system and sewer system of the City, as set forth in the
Resolution to which reference is made for a full statement of rights and powers thereby
conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond
and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the
City in the event of any deficiency in net revenues pledged, which taxes may be levied without
limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds
in denominations of $5,000 or any integral multiple thereof of single maturities.
The City Council has designated the issue of Bonds of which this Bond forms a part as
“qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the “Code”) relating to disallowance of interest expense for
financial institutions and within the $10 million limit allowed by the Code for the calendar year
of issue.
IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City has
covenanted and agreed that it will continue to own and operate the water system and sewer
system free from competition by other like municipal utilities; that adequate insurance on said
systems and suitable fidelity bonds on employees will be carried; that proper and adequate books
of account will be kept showing all receipts and disbursements relating to the Water Fund and
Sewer Fund into which it will pay all of the gross revenues from the water system and sewer
system, respectively; that it will also create and maintain a General Obligation Utility Revenue
Bonds, Series 2018A Debt Service Fund, into which it will pay, out of the net revenues from the
water system and sewer system, a sum sufficient to pay principal of the Bonds and interest on the
Bonds when due; and that it will provide, by ad valorem tax levies, for any deficiency in required
net revenues of the water system and sewer system.
As provided in the Resolution and subject to certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by
the registered owner hereof in person or by the owner’s attorney duly authorized in writing, upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
duly executed by the registered owner or the owner’s attorney; and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City
will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of
the same aggregate principal amount, bearing interest at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond
is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose
of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will
be affected by any notice to the contrary.
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IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the home rule charter of the City and the Constitution and laws
of the State of Minnesota, to be done, to exist, to happen and to be performed preliminary to and
in the issuance of this Bond in order to make it a valid and binding general obligation of the City
in accordance with its terms, have been done, do exist, have happened and have been performed
as so required, and that the issuance of this Bond does not cause the indebtedness of the City to
exceed any constitutional or statutory limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit
under the Resolution until the Certificate of Authentication hereon has been executed by the
Bond Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Arden Hills, Ramsey County, Minnesota, by its
City Council, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the Mayor and City Administrator and has caused this Bond to be dated as of the
date set forth below.
Dated: July 18, 2018
CITY OF ARDEN HILLS, MINNESOTA
(Facsimile) (Facsimile)
Mayor City Administrator
_________________________________
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
BOND TRUST SERVICES
CORPORATION
By
Authorized Representative
_________________________________
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will
be construed as though they were written out in full according to applicable laws or regulations:
B-4
TEN COM -- as tenants in common UNIF GIFT MIN ACT
_________ Custodian _________
(Cust) (Minor)
TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to
Minors Act, State of _______________
JT TEN -- as joint tenants with right of
survivorship and not as tenants in
common
Additional abbreviations may also be used though not in the above list.
________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________ the within Bond and all rights thereunder, and
does hereby irrevocably constitute and appoint _________________________ attorney to
transfer the said Bond on the books kept for registration of the within Bond, with full power of
substitution in the premises.
Dated:
Notice: The assignor’s signature to this assignment must correspond with the
name as it appears upon the face of the within Bond in every particular,
without alteration or any change whatever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion
Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program
(“MSP”) or other such “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities
Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below is provided.
Name and Address:
B-5
(Include information for all joint owners if this
Bond is held by joint account.)
Please insert social security or other
identifying number of assignee
_________________________________
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on
the books of the Registrar in the name of the person last noted below.
Date of Registration
Registered Owner
Signature of
Officer of Registrar
Cede & Co.
Federal ID #13-2555119
STATE OF MINNESOTA
COUNTY OF RAMSEY
CERTIFICATE OF DIRECTOR OF
PROPERTY RECORDS AND REVENUE
AS TO REGISTRATION WHERE NO AD
VALOREM TAX LEVY
I, the undersigned Director of Property Records and Revenue of Ramsey County,
Minnesota, hereby certify that a resolution adopted by the City Council of the City of Arden
Hills, Minnesota, on June 25, 2018, relating to General Obligation Utility Revenue Bonds, Series
2018A, the amount of $__________, dated July 18, 2018, has been filed in my office and said
obligations have been registered on he register of obligations in my office.
WITNESS My hand and official seal this _____ day of _______________, 2018.
Director of Property Records and Revenue
Ramsey County, Minnesota
(SEAL)
Deputy
STATE OF MINNESOTA )
)
COUNTY OF RAMSEY ) SS.
)
CITY OF ARDEN HILLS )
I, the undersigned, being the duly qualified and City Clerk of the City of Arden Hills,
Minnesota (the “City”), do hereby certify that I have carefully compared the attached and
foregoing extract of minutes of a regular meeting of the City Council of the City held on June 25,
2018, with the original minutes on file in my office and the extract is a full, true and correct copy
of the minutes insofar as they relate to the issuance and sale of the City’s General Obligation
Utility Revenue Bonds, Series 2018A, in the original aggregate principal amount of $________.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this
______ day of ___________________, 2018.
City Clerk
City of Arden Hills, Minnesota
(SEAL)