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HomeMy WebLinkAbout05-28-24-RMayor: Address: David Grantlt 1245 W Highway 96 Arden Hills MN 55112 -A HILLS Councilmembers: EN Phone: Brenda Holden 651-792-7800 Emily Rousseau Regular City Council Tena Monson Website: Tom Fabel Agenda www.cityofardenhills.org May 28, 2024 7:00 p.m. City Hall 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. Members of the public may attend a meeting in -person at City Hall or they may view the meeting remotely on the City's website using the below link. Meetings are also broadcast on Cable Channel 16 for those that live in Arden Hills. https://cityofardenhills.orci/320/Watch-Cit -- Meetings This meeting will be streamed live on local Cable Channel 16 and available for playback on our website. CALL TO ORDER 1. APPROVAL OF AGENDA 2. TCAAP/Rice Creek Commons Update Dave Perrault 3. PUBLIC INQUIRIES/INFORMATIONAL This is an opportunity for citizens to respectfully bring to the Council's attention any items which are relevant to the City. In addressing the Council, you must first state your name and address for the record. Comments shall be limited to three (3) minutes or less. Written documents or other materials should be handed to the City Clerk for distribution to the Council prior to or during the meeting. Council will generally not respond at the same meeting where an issue is initially raised by a member of the public but the Council may refer the issue to staff for further research and possible report or action at a future Council meeting. 4. RESPONSE TO PUBLIC INQUIRIES 5. PUBLIC PRESENTATIONS 5.A. 2023 Financial Statements Aaron Nielsen, MMKR Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF 6. STAFF COMMENTS 6.A. Transportation Update David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF 7. APPROVAL OF MINUTES 7.A. May 13, 2024 City Council Work Session Documents: 05-13-24-WS.PDF 7.B. May 13, 2024 Regular City Council Documents: 05-13-24-R.PDF 8. 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. 8.A. Motion To Approve Claims And Payroll Joua Yang, Finance Director Pang Silseth, Accounting Analyst Documents: MEMO.PDF 8.B. Motion To Approve First Quarter Financials Joua Yang, Finance Director Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF 8.C. Motion To Approve 2023 City Financial Statements And Audit Joua Yang, Finance Director Documents: MEMO.PDF 8.D. Motion To Approve Professional Services Agreement For Zoning And Subdivision Ordinance Revisions With HGKi Jessica Jagoe, Community Development Director Documents: MEMO.PDF ATTACHMENT A.PDF 8.E. Motion To Approve A 6 Month Extension Until November 22, 2024 For A Variance At 1475 Dawn Circle - Planning Case 23-008 Jessica Jagoe, Community Development Director Documents: MEMO.PDF ATTACHMENT A.PDF 8.F. Motion To Adopt Resolution 2024-029 Approving Variance At 1511 Dawn - Planning Case 24-008 Jessica Jagoe, Community Development Director Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF ATTACHMENT E.PDF ATTACHMENT F.PDF ATTACHMENT G.PDF ATTACHMENT H.PDF ATTACHMENT I.PDF ATTACHMENT J.PDF 8.G. Motion To Approve Purchase Of 2024 Capital Equipment Replacements (Trailer And Roller) David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF ATTACHMENT E.PDF 8.H. Motion To Approve Ramsey County Fleet Service Invoice For Annual Arden Hills Public Works Equipment Fleet Repairs David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF 8.1. Motion To Approve Purchase Of Hydrant Mod Kits David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF 8.J. Motion To Authorize The Hiring Of A Temporary Office Assistant Dave Perrault, City Administrator Documents: MEMO.PDF 9. 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. 10. PUBLIC HEARINGS 10.A. Special Assessment Hearing - 1370 Colleen Avenue - 2024 PMP Street And Utility Improvements Project David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF 11. NEW BUSINESS 11.A. Resolution 2024-028 Adopting Special Assessment Roll For The 2024 PMP Street And Utility Improvements Project - 1370 Colleen Avenue David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 12. UNFINISHED BUSINESS 13. COUNCIL/STAFF COMMENTS ADJOURN PUBLIC PRESENTATION — 5A It "ENILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Joua Yang, Finance Director SUBJECT: 2023 City Financial Statements Budgeted Amount: Actual Amount N/A Background/Discussion N/A Funding Source: N/A The City's auditor, Aaron Nielsen from MMKR, will be present at the May 28, 2024 City Council meeting to give an overview and answer questions. The auditors have issued an unmodified ("clean") opinion on the City's financial statements for the year ended December 31, 2023. The total general fund balance at December 31, 2023 was $3,205,735 with $2,878,628 of unassigned balance; the new balance equates to a decrease in the General Fund balance of $160,502. The ending unassigned General Fund balance makes up approximately 47.4 percent of next year's budgeted expenditures. The City's total net position increased by $2,192,189. The combined ending fund balances for governmental funds was $12,164,527; the combined ending unrestricted net position for the enterprise funds was $6,079,346, and internal service funds was $185,186. 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 Annual Comprehensive Financial Report 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. One finding was noted in the report related to Segregation of Duties. This finding was downgraded in 2020, from a material weakness to a significant deficiency, due to improvements made in the internal controls over financial reporting. We are pleased with the outcome of the audit. Attachments A. PowerPoint presentation B. Management Report C. Annual Comprehensive Financial Report D. Special Purpose Audit Report Page 1 of 1 ti���J rfrl I '• NI � � 4 F� ;� ■ AP-� ' • �-'!-�� -;k- T CITY OF ARDEN HILLS, MINNESOTA Audit Report for Year Ended December 31, 2023 Aaron J. Nielsen, CPA AUDITOR'S ROLE � Statements are fairly in accordance with principles generally the United States of financial Statement Audit IN Legal Compliance Audit AUDIT RESULTS � • Unmodified Opinions on Basic Financial Statements • Internal control over financial reporting Finding 2023-001 - Limited Segregation of Duties • No instances of noncompliance AUDIT RESULTS (CONTINUED) • No instances of noncompliance with Minnesota laws and regulations reported in the current year. • Rai011V11201V!\■21]L1I Governmental Fund Change in Fund Balance Fund balances of governmental funds Total by classification Nonspendable Restricted Committed Assigned Unassigned Total governmental funds Total by fund General Permanent Improvement Revolving Other governmental funds Total governmental funds Fund Balance as of December 31, 2023 2022 Change $ 43,847 $ 38,579 $ 5,268 2,103,255 1,641,192 462,063 713,987 658,457 55,530 6,644,390 5,471,259 1,173,131 2,659,048 2,854,218 (195,170) $ 12,164,527 $ 10,663,705 $ 1,500,822 $ 3,205,735 $ 3,366,237 $ (160,502) 5,605,205 4,702,027 903,178 3,353,587 2,595,441 758,146 $ 12,164,527 $ 10,663,705 $ 1,500,822 IR GENERAL FUND � FINANCIAL POSITION -TREND ANALYSIS General Fund Financial Position Year Ended December 11. $ 5. 5 00,000 $5,000,000 4,500,000 4,000,000 $3,500.000 $3,000.000 $2.,500.000 $,000.000 $1.500.000 $1.000.000 500.000 T2023 2019 2020 2021 2022 FuudBalance $3,2.15,583 $3,380,506 $3,19,812. $3,3,2.37 $3,2.05,735 0 Cash Balance $3,94,2.78 $4,032,832 $5,194,930 $,7,878 $4,2.53,31 — Exg & Trans Out $5,549, 91 $5,0 4, 18 $ ,515,2 4 $5,305,552. $5,51 ,, 77 GENERAL FUND REVENUE � Taxes Licenses and Peiinits Inter ov-ermnenta1 Charges for ei--ic.� Other General Fund Revenue Budget to Actual Sp Sp z o o moo° ° 61 moo° ° 0 Budget 0 Actual GERERAL FIRDEXPErADITIRD....MMKR A r m General Government Public Safety Public Works Parks and Recreation General Fwid Expeliditlu Budget to Acami o Budget 0 Actual ;JURMAk"IM2110I1 Enterprise Funds Change in Financial Position Net position of enterprise funds Total by classification Net investment in capital assets Unrestricted Total enterprise funds Total by fund Water Sewer Surface Water Management Nonmajor Recycling Total enterprise funds Net Position as of December 31, 2023 2022 Change $ 18,887,277 $ 18,960,842 $ (73,565) 6,079,346 4,679,804 1,399,542 $ 24,966,623 $ 23,640,646 $ 1,325,977 $ 10,824,360 $ 10,350,785 $ 473,575 8,110,877 7,544,199 566,678 51790,963 51539,163 251,800 240,423 206,499 33,924 $ 24,966,623 $ 23,640,646 $ 1,325,977 IR WATER FUND � Water Fund Year Ended December 31, $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $- 2019 2020 2021 2022 2023 0 Opel Rev $2,286,542 $2,316,891 $2,789,472 $2,823,414 $3,054,674 � Oper Exp Excl Dep $1,945,021 $1,619,171 $1,749,217 $2,065,899 $2,264,263 Oiler Inc Before Dep $341,521 $697,720 $1,040,255 $757,515 $790,411 SEWER FUND � Sewer Fund Year Ended December 31, $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500.000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $- 2019 2020 2021 2022 2023 o OperRev $1,892,740 $1,870,850 $2,110,766 $2,209,253 $2,394,498 Oper Exp Excl Dep $1,442,919 $1,466,453 $1,552,274 $1,612,677 $1,637,590 Oper Inc Before Dep $449,821 $404,397 $558,492 $596,576 $756,908 SURFACE WATER MANAGEMENT FUND Surface Neater Management Fund Year Ended December 31, p1,VLJV,VLJV $900.000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- 2023 2020 F 2019 2021 2022 0 Dger Rev $850,971 $876,527 $902,044 $937,652 $958,807 � Dger Exg Excl Deg $405,042 $439,066 $454,076 $459,172 $510,119 — Qger Inc Before Deg 1 $445,929 1 $437,461 1 $447,968 $478,480 $448,688 RECYCLING FUND � Recycling Fmid Year Ended Decembef 31. .RLVV,V Vu $175,000 $150,000 $125,000 $100,000 $75, 000 $50,000 $25, 000 $_ . $(25, 000) $(50,000) 2019 2020 2021 2022 2023 o QgerRev $140,149 $136,865 $177,057 $169,905 $151,340 Oger Exg $172,232 $139,840 $154,611 $173,092 $154,519 — Oger Inc (Lass) $(32,083) $(2,975) $22,446 $(3,187) $(3,179) MARY C POSITIO Net position Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities Business -type activities Net investment in capital assets Unrestricted Total business -type activities Total net position As of December 31, 2023 2022 $ 28,247,394 2,103,290 10,499,248 40,849,932 18,887,277 6,079,346 24,966,623 $ 65,816,555 $ 28,318,503 1,641,206 10,0241011 39,983,720 18,960,842 4,679,804 23,640,646 $ 63,624,366 Change $ (71,109) 462,084 475,237 866,212 (73,565) 1,399,542 1,325,977 $ 2,192,189 IR Attachment B Management Report for City of Arden Hills, Minnesota December 31, 2023 THIS PAGE INTENTIONALLY LEFT BLANK M 6KR CERTIFIED PUBLIC ACCOUNTANTS To the City Council and Management City of Arden Hills, Minnesota PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA 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, 2023. We have organized this report into the following sections: • Audit Summary • Governmental Funds Overview • Enterprise Funds Overview • Government -Wide Financial Statements • 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. 0 Minneapolis, Minnesota May 6, 2024 Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com THIS PAGE INTENTIONALLY LEFT BLANK 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, 2023. 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 OPINIONS AND FINDINGS Based on our audit of the City's financial statements for the year ended December 31, 2023: 0 We have issued unmodified opinions 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 significant deficiency, 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 Annual Comprehensive Financial Report (ACFR), the EDA TIF District No. 5 Special Revenue Fund and the TCAAP Capital Project Fund had year-end deficit equity balances of $24,701 and $194,879, respectively. Management has disclosed that these deficits will be eliminated with future contributions, grants, and internal fund transfers, if needed. -1- 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. 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. • Pension Benefits — The City has recorded liabilities and activity for pension benefits. Actuarial estimates of the net pension balances are calculated using actuarial methodologies described in Governmental Accounting Standards Board Statement No. 68. The actuarial calculations include significant assumptions, including projected changes, investment returns, retirement ages, proportionate share, and employee turnover. Compensated Absences — Management's estimate is based on current rates of pay, unused compensated absence balances, and the likelihood that unused balances will ultimately be paid out at termination. We evaluated the key factors and assumptions used by management to develop these accounting estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex estimates involved in determining the disclosures. The financial statement disclosures are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. -2- 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 May 6, 2024. 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 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 combining and individual fund statements and schedules, reported as supplementary information, as described in the table of contents, which accompany the financial statements, but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section and the statistical section, which accompany the financial statements, but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. -3- THIS PAGE INTENTIONALLY LEFT BLANK 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 projects 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 2021 fiscal year (the most recent comparative state-wide data available), local ad valorem property tax levies provided 44.0 percent of the total governmental fund revenues for cities over 2,500 in population, and 35.5 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2023 increased 4.2 percent compared to the prior year, and 7.5 percent for taxes payable in 2024. The taxable net tax capacity value of property in Minnesota cities increased about 17.7 percent for the 2023 levy year. The tax capacity values used for levying property taxes are based on the assessed market values for the previous fiscal year (e.g., tax capacity values for taxes levied in 2023 were based on assessed market values as of January 1, 2022), so the trend of change in these tax capacity values lags somewhat behind the housing market and economy in general. The City's estimated market value increased 0.2 percent for taxes payable in 2022 and increased 13.1 percent for taxes payable in 2023. The following graph shows the City's changes in estimated market value over the past 10 years: $1,800,000,000 $1,600,000,000 $1,400,000,000 $1,200,000, 000 $1,000,000, 000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $- Estimated Market Value 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -4- 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 its 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 0.1 percent for 2022 and increased 12.9 percent for 2023. The following graph shows the City's change in tax capacities over the past 10 years: Total Tax Capacity $25,000,000 $20,000,000 $15, 000,000 $10,000,000 $5,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 The following table presents the average tax rates applied to city residents for each of the last three levy years: Rates Expressed as a Percentage of Net Tax Capacity City of Arden Hills 2021 2022 2023 Average tax rate City 25.1 26.5 23.6 County 47.7 48.1 44.9 School 23.9 23.4 25.5 Special taxing 7.8 10.0 8.8 Total 104.5 108.0 102.8 The overall decrease in the average tax rate was spread across most of the taxing authorities as presented in the table above, with a slight increase in the school portion. Increases in property valuations contributed to the change in the average tax rate. -5- 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, 2023, presented both by fund balance classification and by fund: Governmental Fund Change in Fund Balance Fund Balance as of December 31, 2023 2022 Change Fund balances of governmental funds Total by classification Nonspendable $ 43,847 $ 38,579 $ 5,268 Restricted 2,103,255 1,641,192 462,063 Committed 713,987 658,457 55,530 Assigned 6,644,390 5,471,259 1,173,131 Unassigned 2,659,048 2,854,218 (195,170) Total governmental funds $ 12,164,527 $ 10,663,705 $ 1,500,822 Total by fund General $ 3,205,735 $ 3,366,237 $ (160,502) Permanent Improvement Revolving 5,605,205 4,702,027 903,178 Other governmental funds 3,353,587 2,595,441 758,146 Total governmental funds $ 12,164,527 $ 10,663,705 $ 1,500,822 In total, the fund balances of the City's governmental funds increased by $1,500,822 during the year ended December 31, 2023. The largest increases were in amounts restricted for public safety and tax increment purposes, along with increases in amounts assigned for capital improvements and public safety capital equipment. W GOVERNMENTAL FUNDS REVENUE 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, services 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. Governmental Funds Revenue per Capita With State -Wide Averages by Population Class State -Wide City of Arden Hills Year December 31, 2021 2021 2022 2023 Population 2,500-10,000 10,000-20,000 20,000-100,000 9,897 9,682 9,706 Property taxes $ 560 $ 529 $ 557 $ 433 $ 455 $ 472 Tax increments 38 36 49 40 35 4 Franchise and other taxes 52 66 53 10 10 9 Special assessments 59 41 56 67 45 37 Licenses and permits 45 46 53 76 86 49 Intergovernmental revenues 421 293 202 51 56 113 Charges for services 135 ill 110 46 49 35 Other (charges) 60 39 26 62 (5) 106 Total revenue $ 1,370 $ 1,161 $ 1,106 $ 785 $ 731 $ 825 The City's governmental funds revenue for 2023 was $8,007,697, an increase of $938,272 from the prior year. On a per capita basis, the City received $825 in governmental funds revenue for 2023, an increase of $94 from the prior year. 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. Property taxes increased as anticipated with the change in the adopted levy. A new state public safety grant increased the amount of intergovernmental revenues in the current year. The largest change in the table above was the increase in the "Other" category, which includes investment earnings. Shifts in interest rates between fiscal years has had a significant impact on the fair value on certain investments held by the City. Required fair value adjustments on investments was a significant factor in the increase in investment earnings compared to the prior year. There was less development activity in the current year accounting for the decrease in tax increments, licenses and permits, and charges for services. -7- 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 comparative state-wide averages, are presented in the following table: Governmental Funds Expenditures per Capita With State -Wide Averages by Population Class State -Wide City of Arden Hills Year December 31, 2021 2021 2022 2023 Population 2,500-10,000 10,000-20,000 20,000-100,000 9,897 9,682 9,706 Current General government $ 168 $ 131 $ 116 $ 115 $ 124 $ 143 Public safety 327 296 327 274 263 279 Public works 144 124 112 62 94 70 Parks and recreation 108 124 107 63 69 74 All other 101 79 77 35 14 8 Total current 848 754 739 549 564 574 Capital outlay and construction 525 407 317 255 237 128 Debt service Principal 168 161 110 Interest and fiscal 48 41 34 — — — Total debt service 216 202 144 Total expenditures $ 1,589 $ 1,363 $ 1,200 $ 804 $ 801 $ 702 Total expenditures in the City's governmental funds for 2023 were $6,818,600, a decrease of $940,539 (12.1 percent). The City's total per capita governmental funds expenditures for 2023 were $702, a decrease from the per capita expenditures total of $801 in the prior year. Capital outlay and construction decreased by $109 per capita, with a decrease in the amount of street improvements compared to the prior year. This also impacted current expenditures for public works, which were down by $24 per capita. 10 GENERAL FUND FINANCIAL POSITION 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. General Fund Financial Position Year Ended December 31, ,0U,VVV,VVV $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2019 2020 2021 2022 2023 Fund Balance $3,215,583 $3,380,506 $3,169,812 $3,366,237 $3,205,735 o Cash Balance $3,946,278 $4,032,832 $5,194,930 $5,667,878 $4,253,316 Exp & Trans Out.1 $5,549,691 $5,064,618 $5,515,284 $5,305,552 $5,514,657 The City's General Fund cash and investments balance on December 31, 2023, was $4,253,316, a decrease of $1,414,562 from the prior year. Total fund balance on December 31, 2023, was $3,205,735, a decrease of $160,502 from the prior year. This fund balance level represents approximately 60.0 percent of the City's annual General Fund expenditures based on 2023 expenditure levels, which compares to a prior year fund balance level of 64.7 percent. The overall impact of operations on fund balance was $232,388 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 governments, like any organization, requires a certain amounts 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. 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 74.0 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. In GENERAL FUND REVENUES The following graph reflects the City's General Fund revenues, budget and actual, for 2023: Taxes Licenses and Permits Intergovernmental Charges for Services Other General Fund Revenue Budget to Actual I goo Ih n ,n goo° I� n ,n too tX1 ■ Budget O Actual Total General Fund revenues for 2023 were $5,354,155, which was $15,265 (0.3 percent) under the final budget. Other sources exceeded budget by $183,931, largely due to fair value changes, which increased investment earnings and conservative estimates anticipated for various other miscellaneous sources in the current year. The favorable variance in other sources nearly offset the shortfall in other areas presented in the above graph. 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: $4,51 $4,01 $3,51 $3,01 $2,51 $2,01 $1,51 $1,01 $51 $(5( General Fund Revenue by Source Year Ended December 31, �,—v 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 $ 0,000) Taxes Licenses and Permits Intergovernmental Charges for Services — Other 02019 $3,795,624 $714,530 $162,041 $440,616 $312,094 02020 $3,629,819 $431,628 $629,432 $215,918 $322,744 02021 $3,763,384 $752,532 $160,279 $459,638 $168,757 02022 $3,829,079 1 $830,866 1 $174,405 1 $476,574 1 $(4,488) 02023 $3,963,077 1 $471,742 1 $167,376 1 $342,339 1 $409,621 Total General Fund revenues for 2023 were $47,719 more than prior year. Taxes were up in the General Fund, due to an increase in the tax levy. Licenses and permits and charges for services were down in the current year, with less projects occurring in the community. Intergovernmental revenues were also slightly down compared to amounts reported last year. Remaining revenue sources of the General Fund were $414,109 more than 2022, with an increase in investment earnings, due to fair value adjustments in the current year. -10- GENERAL FUND EXPENDITURES The following graph reflects the City's General Fund expenditures, budget and actual, for 2023: General Government Public Safety Public Works Parks and Recreation General Fund Expenditures Budget to Actual oo° oo° oo° oo° oo° oo° oo° oo° oo° oo° oo° 1 C3 ■ Budget ❑ Actual Total General Fund expenditures for 2023 were $5,343,517, which was $247,653 (4.4 percent) under the final budget. As presented in the budgetary comparison schedule (within the City's ACFR), 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 functions for general government, public works, and parks and recreation were under budget, largely in personal services and other services and charges. The public safety function was $48,212 over budget, mainly in other services and charges for police and animal control and for protective inspections. The following graph presents the City's General Fund expenditures by function for the last five years: $3,0 $2,75 $2,5 $2,25 $2,0 $1,75 $1,5 $1,25 $1,0 $75 $50 $25 General Fund Expenditures by Function Year Ended December 31, 00 00 00 00 00,000 0,000 ,000 0,000 ,000 0,000 ,000 0,000 ,000 0,000 0,000 0,000 General Public Safety Public Works Parks and Government Recreation ■2019 $1,058,275 $2,399,296 $632,531 $679,589 ■2020 $927,319 $2,435,773 $675,739 $547,787 02021 $1,014,282 $2,708,137 $618,236 $626,629 ■2022 $1,077,037 $2,546,051 $914,148 $665,776 IN20231 $1,235,704 1 $2,704,012 1 $682,510 1 $721,291 Overall, General Fund expenditures increased $140,505 (2.7 percent) from the prior year. The largest increases were in general government and public safety, these increases were partially offset by a decrease in public works spending compared to budget. -11- Overall, General Fund expenditures increased $140,505 (2.7 percent) from the prior year. The largest increases were in general government and public safety, these increases were partially offset by a decrease in public works spending compared to budget. -11- 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. 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 position 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, 2023, presented both by classification and by fund: Enterprise Funds Change in Financial Position Net Position as of December 31, 2023 2022 Change Net position of enterprise funds Total by classification Net investment in capital assets $ 18,887,277 $ 18,960,842 $ (73,565) Unrestricted 6,079,346 4,679,804 1,399,542 Total enterprise funds $ 24,966,623 $ 23,640,646 $ 1,325,977 Total by fund Water $ 10,824,360 $ 10,350,785 $ 473,575 Sewer 8,110,877 7,544,199 566,678 Surface Water Management 5,790,963 5,539,163 251,800 Nonmajor Recycling 240,423 206,499 33,924 Total enterprise funds $ 24,966,623 $ 23,640,646 $ 1,325,977 In total, the net position of the City's enterprise funds increased by $1,325,977 during the year ended December 31, 2023. The increase in net position is primarily related to positive operating results and capital contributions for connection fees and capital grants recognized in the current year. -12- WATER FUND The following graph presents five years of operating results for the Water Fund: Water Fund Year Ended December 31, $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 2019 2020 2021 2022 2023 O Oper Rev $2,286,542 $2,316,891 $2,789,472 $2,823,414 $3,054,674 � OperExp Excl Dep $1,945,021 $1,619,171 $1,749,217 $2,065,899 $2,264,263 Oper Inc Before Dep $341,521 $697,720 $1,040,255 $757,515 $790,411 The Water Fund ended 2023 with a net position of $10,824,360, an increase of $473,575, from the prior year. Of total net position, $7,397,458 represents the net investment in capital assets, leaving $3,426,902 of unrestricted net position. Water Fund operating revenues were $3,054,674 for 2023, an increase of $231,260, due to increased consumption. Operating expenses (excluding depreciation of $376,642) were $2,264,263, which represents an increase of $198,364. Expenses increased largely due to an increase in the amount for water purchased from the City of Roseville. Consumption will fluctuate from year-to-year based on many factors, including weather patterns and number of utility customers. -13- SEWER FUND The following graph presents five years of operating results for the Sewer Fund: Sewer Fund Year Ended December 31, $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 2019 2020 2021 2022 2023 O OperRev $1,892,740 $1,870,850 $2,110,766 $2,209,253 $2,394,498 � OperExp Excl Dep $1,442,919 $1,466,453 $1,552,274 $1,612,677 $1,637,590 Oper Inc Before Dep $449,821 $404,397 $558,492 $596,576 $756,908 The Sewer Fund ended 2023 with a net position of $8,110,877, an increase of $566,678 from the prior year. Of total net position, $6,487,665 represents the net investment in capital assets, leaving $1,623,212 of unrestricted net position. Sewer Fund operating revenues for 2023 were $2,394,498, an increase of $185,245 compared to last year, largely due to rate and consumption increases. Operating expenses for 2023 (excluding depreciation of $221,567) were $1,637,590, an increase of $24,913 from the prior year. The largest increase was in sewer charges. -14- SURFACE WATER MANAGEMENT FUND The following graph presents five years of operating results for the Surface Water Management Fund: Surface Water Management Fund Year Ended December 31, 0, - - $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $— 2019 2020 2021 2022 2023 = Oper Rev $850,971 $876,527 $902,044 $937,652 $958,807 � OperExp Excl Dep $405,042 $439,066 $454,076 $459,172 $510,119 Oper Inc Before Dep $445,929 $437,461 $447,968 $478,480 $448,688 The Surface Water Management Fund ended 2023 with a net position of $5,790,963, an increase of $251,800 from the prior year. Of this, $5,002,154 represents the net investment in capital assets, leaving $788,809 of unrestricted net position. Surface Water Management Fund operating revenues for 2023 were $958,807, an increase of $21,155 from last year. Operating expenses for 2023 (excluding depreciation of $163,437) were $510,119, or $50,947 more than the prior year. The largest increase was in personal services, which includes the impact of changes in pension cost allocations. -15- RECYCLING FUND The following graph presents five years of operating results for the Recycling Fund: Recycling Fund Year Ended December 31, ,P4VV,VVV $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $(25,000) $(50,000) 2019 2020 2021 2022 2023 O OperRev $140,149 $136,865 $177,057 $169,905 $151,340 � OperExp $172,232 $139,840 $154,611 $173,092 $154,519 —OperInc (Loss) $(32,083) $(2,975) $22,446 $(3,187) $(3,179) The Recycling Fund ended 2023 with an unrestricted net position of $240,423, an increase of $33,924 from the prior year. Recycling Fund operating revenues for 2023 were $151,340, a decrease of $18,565 from the prior year. Operating expenses for 2023 were $154,519, a decrease of $18,537 from the prior year. The Recycling Fund also received $26,670 of nonoperating intergovernmental revenues that are available for the operation of the City's Recycling Program. -16- THIS PAGE INTENTIONALLY LEFT BLANK 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, 2023 and 2022, for governmental activities and business -type activities (utility fund operations): Net position Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities Business -type activities Net investment in capital assets Unrestricted Total business -type activities Total net position As of December 31, 2023 2022 Change $ 28,247,394 $ 28,318,503 $ (71,109) 2,103,290 1,641,206 462,084 10,499,248 10,024,011 475,237 40,849,932 39,983,720 866,212 18,887,277 18,960,842 (73,565) 6,079,346 4,679,804 1,399,542 24,966,623 23,640,646 1,325,977 $ 65,816,555 $ 63,624,366 $ 2,192,189 Net position for governmental activities increased by $866,212 in 2023, as presented above. The investment in capital assets decreased $71,109 this year, mainly due to depreciation activity in the current year. The 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 $462,084, due to increases in the amounts restricted for public safety and tax increment purposes. The increase in unrestricted net position is due to operating results in the current year. The change in net position for business -type activities is consistent with our earlier discussion of the utility operations, which are presented under the same, full accrual basis of accounting. -17- 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 the years ended December 31, 2023 and 2022: 2023 2022 Program Expenses Revenues Net Change Net Change Net (expense) revenue Governmental activities General government $ 1,505,270 $ 422,902 $ (1,082,368) $ (906,002) Public safety 2,889,826 1,019,754 (1,870,072) (1,581,282) Public works 1,327,617 680,242 (647,375) (840,391) Parks and recreation 1,136,248 93,721 (1,042,527) (862,109) Economic development 140,255 323 (139,932) (196,488) Business -type activities Water 2,677,247 3,093,292 416,045 647,413 Sewer 1,864,808 2,488,391 623,583 665,805 Surface water management 673,556 958,828 285,272 409,496 Recycling 154,519 178,010 23,491 23,623 Total net (expense) revenue $ 12,369,346 $ 8,935,463 (3,433,883) (2,639,935) General revenues General property taxes 4,570,332 4,404,477 Tax increments 36,365 338,899 Franchise taxes 92,096 94,320 Unrestricted investment earnings (charges) 927,279 (560,873) Gain on sale of capital assets — 197,910 Total general revenues 5,626,072 414741733 Change in net position $ 2,192,189 $ 1,834,798 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 taxes and unrestricted grants. It also shows that 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. As previously discussed in this report, changes in the investment market, contributed to the increase in current year investment earnings. -18- ACCOUNTING AND AUDITING UPDATES The following is a summary of Governmental Accounting Standards Board (GASB) standards expected to be implemented in the next few years. GASB STATEMENT No. 100, ACCOUNTING CHANGES AND ERROR CORRECTIONS - AN AMENDMENT OF GASB STATEMENT NO. 62 The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections. The requirements of this statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. GASB STATEMENT NO.101, COMPENSATED ABSENCES The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used, but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. This statement requires that a liability for certain types of compensated absences —including parental leave, military leave, and jury duty leave —not be recognized until the leave commences. This statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. This statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. A liability for leave that has been used, but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary -related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. The requirements of this statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. Earlier application is encouraged. -19- GASB STATEMENT No. 102, CERTAINRisKDIsCLosuREs The objective of this statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities, due to certain concentrations or constraints. This statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision -making authority. Concentrations and constraints may limit a government's ability to acquire resources or control spending. A government will be required to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, a government must assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information (as outlined in the standard) in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government's vulnerability to the risk of a substantial impact. The requirements of this statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Earlier application is encouraged. -20- Attachment C CITY OF SILLS ARDEN HILLS, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Annual Comprehensive Financial Report Year Ended December 31, 2023 REPORT PREPARED BY FINANCE DEPARTMENT THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Table of Contents INTRODUCTORY SECTION Page Letter of Transmittal ii i i GFOA Certificate of Achievement iv City Council and Appointed Officials v Organization Chart vi FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 1-4 MANAGEMENT'S DISCUSSION AND ANALYSIS 5-14 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Governmental Funds Balance Sheet 17 Statement of Revenues, Expenditures, and Changes in Fund Balances 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 19 Proprietary Funds Statement of Net Position 20 Statement of Revenues, Expenses, and Changes in Net Position 21 Statement of Cash Flows 22 Notes to Basic Financial Statements 23-45 REQUIRED SUPPLEMENTARY INFORMATION PERA — General Employees Retirement Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability 46 Schedule of City Contributions 46 Budgetary Comparison Schedule General Fund 47-49 Notes to Required Supplementary Information 5053 SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules Nonmaj or Governmental Funds Combining Balance Sheet 54 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 55 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Table of Contents (continued) Page SUPPLEMENTARY INFORMATION (CONTINUED) Combining and Individual Fund Statements and Schedules (continued) Nonmajor Special Revenue Funds Combining Balance Sheet 5657 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 5859 Nonmajor Capital Project Funds Combining Balance Sheet 60 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 61 Nonmajor Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual Cable Fund 62 EDA Operating Fund 63 EDA TIF District No. 3 Fund 64 EDA TIF District No. 4 Fund 65 EDA TIF District No. 5 Fund 66 Internal Service Funds Combining Statement of Net Position 67 Combining Statement of Revenues, Expenses, and Changes in Net Position 68 Combining Statement of Cash Flows 69 STATISTICAL SECTION (UNAUDITED) Net Position by Component 70-71 Changes in Net Position 72-75 Governmental Activities Tax Revenues by Source 76 Fund Balances of Governmental Funds 77-78 Changes in Fund Balances of Governmental Funds 79-80 General Governmental Tax Revenues by Source 81 Tax Capacity Value and Estimated Market Value of Taxable Property 82-83 Property Tax Rates — Direct and Overlapping Governments 84 Principal Property Taxpayers 85 Property Tax Levies and Collections 86 Ratios of Outstanding Debt by Type 87 Direct and Overlapping Governmental Activities Debt 88 Legal Debt Margin Information 89-90 Pledged Revenue Coverage 91 Demographic and Economic Statistics 92 Principal Employers 93 Operating Indicators by Function 94-95 Full -Time Equivalent City Government Employees by Function 96-97 Capital Asset Statistics by Function 98-99 INTRODUCTORY SECTION (TAB) It' -A D�EN,HILLS May 6, 2024 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, 2023. 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, 2023. 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 9,706. 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. 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, community information (newsletter), and general government buildings. The City contracts with Ramsey County for police services, Lake Johanna Fire Department for fire services, and Metro-INET for information services. -I- City of A rd ea HIL1 % # 1245 Wesr Highway 96 0 Arden HIT, 11N 0 5511 z-5743 rhone 651.79?.7800 0 FRKWAUi 5W 4p w++W_d_Hr1Jea=h111&Inn_U3 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. Governmental funds with annually adopted budgets include the General Fund and most special revenue funds. A budget was not legally adopted for the two special revenue funds established for specific short-term projects: Karth Lake Improvement District and American Rescue Plan Act Funds. 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, Delkor, Venture Solutions, Colder Products Company, 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 7.0 percent in 2020, to a low of 2.6 percent in 2022. The current rate is 2.7 percent. During the past 10 years, property taxes have remained a stable and significant source of total General Fund and special revenue fund revenues. Intergovernmental makes up approximately 2.9 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 $2,878,628 (47.4 percent of total subsequent year General Fund expenditures budgeted) does not meet the 50.0 percent target set by the City Council for budgetary and planning purposes. The total General Fund balance also includes $39,554 of nonspendable equity for prepaid items, $105,483 of assigned equity for compensated absences, and $182,070 assigned equity for the 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. 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 2012, the City entered into a Joint Powers Agreement with Ramsey County to form a Joint Development Authority to acquire and develop a portion of the Army property, formerly known as TCAAP. Ramsey County officially acquired this property April 15, 2013, and has cleaned it to residential standards. The City completed the TCAAP Redevelopment Code in late 2016, which guides the land use on the site. In 2019, Ramsey County brought litigation against the City; however, that litigation was resolved in 2021 in the City's favor. The land remains shovel ready, pending future development agreements; any future development on the site is expected to add to the City's tax base and could include commercial/industrial, residential, and civic uses. The site is approximately 430 acres. RELEVANT FINANCIAL POLICIES The City utilizes various financial and budget policies to guide the City Council and staff when making financial decisions. The primary objective of these policies is to guarantee effective delivery of city services to residents and businesses, and to ensure protection of the City's financial strength and flexibility through a revenue structure and long-term planning effort that is consistent with City Council goals and working capital targets. The City uses a conservative approach in making ongoing revenue assumptions by utilizing growth patterns and knowledge of the developing areas. As part of the annual budget process, the City reviews its financial and budget policies. There have been no significant changes to these policies from the previous year. MAJOR INITIATIVES The largest initiative on the City's horizon is the TCAAP project, as previously mentioned. This project is a joint effort between the City, Ramsey County, and a master developer. When completed, this project will represent almost a 40 percent population increase to the City, as well as a significant increase to the commercial and industrial sectors. City representatives are working hard to ensure the development is a long-term, sustainable project that adds to the City's diverse residents, businesses, and open space without burdening the existing city taxpayer. The TCAAP project is expected to be a destination site for the region and serve as a model for future developments. ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended December 31, 2022. This is the 17th year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the City had to publish an easily readable and efficiently organized ACFR 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 ACFR 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. 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 and City Council for their unfailing support in maintaining the highest standards of professionalism in the management of the City's finances. Respectfully submitted, �L/YlJ �j Dave Perrault Joua Yang City Administrator Finance Director -III- Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Arden Hills Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 Executive Director/CEO RAMSEY COUNTY, MINNESOTA City Council and Appointed Officials December 31, 2023 CITY COUNCIL David Grant Mayor Thomas Fabel Councilmember Brenda Holden Councilmember Tena Monson Councilmember Emily Rousseau Councilmember APPOINTED OFFICIALS Dave Perrault City Administrator Joua Yang Finance Director Julie Hanson City Clerk Joel Jamnik City Attorney Term Expires December 31, 2026 December 31, 2024 December 31, 2024 December 31, 2026 December 31, 2026 -v- j U E / % � U ( � [ 3 : $ / w 2 A k 0 \ _ / ° / f § J � Ln [ / \ � \ � � G 2 0 / \ ± 4 \ t ° / k < \ G k 77 °< a 3 3 I ƒ A § 2 � J G / § 0 Vol ± t \ \ /ul w 2 m u \ ° o � LP R G R= { u j 2 § f % \ 2 a ta o ƒ t $ CL CL I- m � § \ � / —M : d 7 . 3 2G L CO 0 w / G t t G n § /u Fie & 2 \ / � \ ai V \ 2 0 E 0 \ � C t \ � \ � S < H < < FINANCIAL SECTION (TAB) M 6KR CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the City Council and Management City of Arden Hills, Minnesota REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OPINIONS PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA 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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2023, 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. BASIS FOR OPINIONS 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. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. (continued) -I- Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com RESPONSIBILITIES OF MANAGEMENT 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; and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for 12 months beyond the financial statements date, including any currently known information that may raise substantial doubt shortly thereafter. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. (continued) -2- REQUIRED SUPPLEMENTARY INFORMATION Accounting principles generally accepted in the United States 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 is the responsibility of management and, 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 statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. SUPPLEMENTARY 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 accompanying combining and individual fund financial statements and schedules, as listed in the table of contents, are presented for the purpose of additional analysis and are not a required part of the basic financial statements. Such 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. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. OTHER INFORMATION Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections, but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (continued) S11 OTHER REPORTING REQUIRED BY GOVERNMENTAUDITINGSTANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 6, 2024 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City'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. eo Minneapolis, Minnesota May 6, 2024 M CITY OF ARDEN HILLS Management's Discussion and Analysis Year Ended December 31, 2023 As the management of the City of Arden Hills, Minnesota (the City), we offer readers of the City's Annual Comprehensive Financial Report (ACFR) this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2023. 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. 101 QF.Wrej 10 A:1 1e4110 [ef:ylki • 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 $65,816,555 (net position). Of this amount, $16,578,594 (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 $2,192,189 in 2023. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $12,164,527. Of this total amount, $43,847 is nonspendable and $2,103,255 is restricted, leaving an unrestricted (committed, assigned, and unassigned) balance of $10,017,425. • At the end of the current fiscal year, the General Fund has a total fund balance of $3,205,735. At December 31, 2023, the unassigned fund balance of the General Fund was $2,878,628, or 47.4 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 reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused vacation leave). Irbil Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, 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 functions 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 reports two 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 Fund and Permanent Improvement Revolving Fund, 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 most special revenue funds. A budget was not legally adopted for the two special revenue funds established for specific short-term projects: Karth Lake Improvement District and American Rescue Plan Act Funds. A budgetary comparison schedule has been provided for these remaining special revenue funds to demonstrate compliance with the budget. The basic governmental funds financial statements can be found in the financial section of this report immediately following the government -wide financial statements. INS 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 supplementary 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 ACFR 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 $65,816,555 at December 31, 2023. The largest portion of the City's net position, $47,134,671, or 71.6 percent, reflects its net 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) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources; since the capital assets themselves cannot be used to liquidate these liabilities. ere The following table provides the City's Summary of Net Position: Table 1 Summary of Net Position as of December 31, 2023 and 2022 Governmental Business -Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Assets Current and other assets $ 16,187,151 $ 17,097,598 $ 7,147,691 $ 5,696,668 $ 23,334,842 $ 22,794,266 Capital assets 28,274,898 28,400,370 20,526,445 20,840,566 48,801,343 49,240,936 Total assets $ 44,462,049 $ 45,497,968 $ 27,674,136 $ 26,537,234 $ 72,136,185 $ 72,035,202 Deferred outflows of resources $ 260,510 $ 320,433 $ 199,510 $ 245,804 $ 460,020 $ 566,237 Liabilities Other liabilities $ 1,620,818 $ 3,155,831 $ 376,534 $ 356,573 $ 1,997,352 $ 3,512,404 Long-term liabilities outstanding 903,488 1,142,549 2,314,462 2,758,202 3,217,950 3,900,751 Total liabilities $ 2,524,306 $ 4,298,380 $ 2,690,996 $ 3,114,775 $ 5,215,302 $ 7,413,155 Deferred inflows of resources $ 1,348,321 $ 1,536,301 $ 216,027 $ 27,617 $ 1,564,348 $ 1,563,918 Net position Net investment in capital assets $ 28,247,394 $ 28,318,503 $ 18,887,277 $ 18,960,842 $ 47,134,671 $ 47,279,345 Restricted 2,103,290 1,641,206 — — 2,103,290 1,641,206 Unrestricted 10,499,248 10,024,011 6,079,346 4,679,804 16,578,594 14,703,815 Total net position $ 40 849,932 $ 39,983,720 $ 24,966,623 $ 23,640,646 $ 65,816,555 $ 63,624,366 Restricted net position of $2,103,290 comprises 3.2 percent of net position at the close of the fiscal year ended December 31, 2023. These resources are subject to external restrictions on how they may be used. The balance of unrestricted net position, $16,578,594, or approximately 25.2 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. Positive operating results in the City's utility operations also increased current and other assets in the current year. Other liabilities were down compared to the prior year, primarily due to less ongoing construction in the current year and a reduction in both contract -related payables and escrow deposits. The following table provides a condensed version of the Statement of Activities for the year ended December 31, 2023, with comparative amounts for the year ended December 31, 2022: Table 2 Changes in Net Position Years Ended December 31, 2023 and 2022 Governmental Business -Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Revenues Program revenues Charges for services $ 814,081 $ 1,307,456 $ 6,559,319 $ 6,140,224 $ 7,373,400 $ 7,447,680 Operating grants and contributions 805,615 375,965 29,253 30,323 834,868 406,288 Capital grants and contributions 597,246 902,926 129,949 651,490 727,195 1,554,416 General revenues General property taxes 4,570,332 4,404,477 - - 4,570,332 4,404,477 Tax increments 36,365 338,899 - - 36,365 338,899 Franchise taxes 92,096 94,320 - - 92,096 94,320 Earnings on investments (charges) 649,693 (460,213) 277,586 (100,660) 927,279 (560,873) Gain on sale of capital assets - 197,910 - - - 197,910 Total revenues 7,565,428 7,161,740 6,996,107 6,721,377 14,561,535 13,883,117 Expenses General government 1,505,270 1,299,419 - - 1,505,270 1,299,419 Public safety 2,889,826 2,663,521 - - 2,889,826 2,663,521 Public works 1,327,617 1,796,184 - - 1,327,617 1,796,184 Parks and recreation 1,136,248 1,013,507 - - 1,136,248 1,013,507 Economic development 140,255 199,988 - - 140,255 199,988 Water - - 2,677,247 2,473,906 2,677,247 2,473,906 Sewer - - 1,864,808 1,817,972 1,864,808 1,817,972 Surface water management - - 673,556 610,730 673,556 610,730 Recycling - - 154,519 173,092 154,519 173,092 Total expenses 6,999,216 6,972,619 5,370,130 5,075,700 12,369,346 12,048,319 Increase in net position before transfers 566,212 189,121 1,625,977 1,645,677 2,192,189 1,834,798 Transfers 300,000 300,000 (300,000) (300,000) - - Increase in net position 866,212 489,121 1,325,977 1,345,677 2,192,189 1,834,798 Netposition- beginning 39,983,720 39,494,599 23,640,646 22,294,969 63,624,366 61,789,568 Net position - ending $ 40,849,932 $ 39,983,720 $ 24,966,623 $ 23,640,646 $ 65,816,555 $ 63,624,366 Governmental Activities - Current year operating results of governmental activities increased net position by $866,212, compared to an increase of $489,121 in the prior year. Revenues were up in the current year, largely with more operating grants for public safety and improved investment earnings. These favorable results more than offset the revenue reductions in other areas with a decline in development projects this year. Expenses were up slightly over the prior year with shifts in expense levels between program activities. Business -Type Activities - Current year operating results of business -type activities increased net position by $1,325,977, 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. A decrease in federal funding utilized for water and sewer improvements reduced capital grants and contributions in the business -type activities in the current year. Improved investment earnings also benefited business -type activities in fiscal 2023. Expenses increased over the prior year with the largest increase in purchased water costs for the water utility. ME Below are specific graphs that provide comparisons of the governmental activities' revenue and expenses: Tax G 1 ns1C, 60% Public 19% Governmental Activities — Revenue Earnings on Investments Charges for Governmental Activities — Expenses Economic perating -ants and tributions 11% Capital Grants and Contributions 8 YU _ Pudic Safety 41% l[IZ Below are specific graphs that provide comparisons of the business -type activities' revenue and expenses: Operating Grants and Cantributim <1°lo Business -Type Activities —Revenue Capital Grants and Earnings on Contributions 1westments Charg es for Semices 94°fo Business -Type Activities —Expenses Surface Water Recycling ManaLyement Water 50% 35% 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 $12,164,527, an increase of $1,500,822 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 $10,017,425 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 cable TV purposes ($806), 2) for tax increment purposes ($1,471,705), 3) for park improvements ($197,648), 4) for public safety ($433,096), or 5) is not in spendable form for prepaid items ($43,847). 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 $2,878,628, while total fund balance equaled $3,205,735. 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 47.4 percent of the total subsequent year's General Fund expenditures. General Fund revenues slightly exceeded current year expenditures. The City Council approved a transfer to the Permanent Improvement Revolving Fund of $171,140 for capital purposes. After making this transfer in the current year, fund balance of the City's General Fund decreased by $160,502. A discussion of these actual results, compared to budget, is presented later in this report. Fund balance in the Permanent Improvement Revolving Fund increased by $903,178 in the current year. The expenditures in this fund will fluctuate based on the timing and completion of street and trail projects. Revenues tend to be more consistent from year to year, as the City utilizes an annual levy and other sources that are accumulated over several years, along with other funding sources to complete larger capital -related projects. The transfer from the General Fund, as previously discussed, along with current year revenues of taxes, grants, and investments, exceeded current year capital spending for public works and parks and recreation. The City was in a transition period in the current year with wrapping up several larger projects and in the planning process for upcoming capital projects of the City. The tax levy and capital plan allow the City to continue to complete larger capital street, park, and trail projects without requiring significant debt. 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: $3,426,902 for water, $1,623,212 for sewer, $788,809 for surface water management, and $240,423 for recycling. Water net position increased $473,575, sewer net position increased $566,678, surface water management net position increased $251,800, and recycling net position increased $33,924 during the year. -12- GENERAL FUND BUDGETARY HIGHLIGHTS Total General Fund revenues were $15,265 less than estimated in the budget. An increase in abatements and less tax collections than anticipated caused general property taxes to come in less than projected in the budget. Licenses and permits, along with charges for services, were under budget as development activity was less than anticipated in the current year. Improved investment earnings and conservative budgeting for this source nearly offset the negative variances in the previously mentioned sources. Conservative assumptions, active budget management, and open positions all contributed to expenditures coming in less than anticipated. Larger savings in areas of planning and zoning, street maintenance, and recreation all contributed to the spending variance in the current year. During the year, the City Council approved budget amendments, which increased expenditures by $60,990 and transfers out by $171,140, providing supplemental appropriations and moving available resources to other funds. CAPITAL ASSETS AND LONG-TERM LIABILITIES Capital Assets — The City's investment in capital assets for its governmental and business -type activities as of December 31, 2023 amounts to $48,801,343 (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. Table 3 Capital Assets (Net of Depreciation) Governmental Business -Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Land $ 2,669,467 $ 2,669,467 $ — $ — $ 2,669,467 $ 2,669,467 Construction in progress 1,624,492 2,090,423 614,676 735,625 2,239,168 2,826,048 Buildings and structures 3,327,046 3,564,010 455,517 497,060 3,782,563 4,061,070 Infrastructure and improvements 19,318,012 18,697,408 — — 19,318,012 18,697,408 Distribution and collection systems — — 19,204,518 19,331,477 19,204,518 19,331,477 Machinery and equipment 319,016 299,262 251,734 276,404 570,750 575,666 Office furniture and equipment 3,909 8,857 — — 3,909 8,857 Vehicles 1,012,956 1,070,943 — — 1,012,956 1,070,943 Total $ 28,274,898 $ 28,400,370 $ 20,526,445 $ 20,840,566 $ 48,801,343 $ 49,240,936 Increases in the current year included ongoing projects for park improvements, pedestrian trails, streets, and related utility infrastructure contributing to the changes in the table above as of year-end. Additional information on the City's capital assets can be found in Note 4 of the notes to basic financial statements. -13- Long -Term Liabilities — At the end of the current fiscal year, the City had total bonded debt outstanding of $1,560,000, which is secured by specified revenue sources. Table 4 Outstanding Debt Summary of Long -Term Debt Governmental Business -Type Activities Activities Total 2023 2022 2023 2022 2023 2022 Utility revenue bonds $ — $ — $ 1,560,000 $ 1,785,000 $ 1,560,000 $ 1,785,000 Premium 79,168 94,724 79,168 94,724 Compensated absences 105,483 98,255 64,143 77,404 169,626 175,659 Net pension liability 798,005 1,044,294 611,151 801,074 1,409,156 1,845,368 Total $ 903,488 $ 1,142,549 $ 2,314,462 $ 2,758,202 $ 3,217,950 $ 3,900,751 State statutes limit the amount of net debt a Minnesota city may issue to 3 percent of total estimated market value. Outstanding debt for utility revenue bonds was anticipated with scheduled bond payments as approved at the time of originally issuing these obligations. The decrease in the net pension liability, compared to the prior year, was due to 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 5 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 2023 level. • The 2024 budget approved for the General Fund anticipates expenditures and other financing uses to exceed revenues and other financing sources by $182,070, which is included in assigned fund balance at December 31, 2023. • All of these factors were considered in preparing the City's budget for the 2024 fiscal year. REQUESTS FOR INFORMATION This ACFR 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. -14- BASIC FINANCIAL STATEMENTS TAB THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Statement of Net Position as of December 31, 2023 Assets Cash and investments Accrued interest receivable Accounts receivable Taxes receivable Special assessments receivable Leases receivable Due from other governmental units Prepaid items Inventory Capital assets Nondepreciable Depreciable, net of accumulated depreciation Total assets Deferred outflows of resources Pension plan deferments - PERA Liabilities Accounts payable Salaries payable Deposits payable Due to other governmental units Accrued interest payable Unearned revenue Long-term liabilities (bonds and compensated absences) Due within one year Due in more than one year Net pension liability Due in more than one year Total liabilities Deferred inflows of resources Pension plan deferments - PERA Lease revenues for subsequent years State aid received for subsequent years Total deferred inflows of resources Net position Net investment in capital assets Restricted for Cable TV Tax increment purposes Park improvements Public safety Unrestricted Total net position Governmental Business -Type Activities Activities Total $ 13,927,277 64,748 51,155 103,553 1,169,505 779,183 46,790 44,940 $ 5,371,781 28,435 1,711,362 23,022 13,091 $ 19,299,058 93,183 1,762,517 103,553 1,169,505 779,183 46,790 67,962 13,091 4,293,959 614,676 4,908,635 23,980,939 19,911,769 43,892,708 44,462,049 27,674,136 72,136,185 260,510 199,510 460,020 203,087 73,673 276,760 95,770 - 95,770 974,885 - 974,885 150,895 279,194 430,089 - 23,667 23,667 196,181 - 196,181 79,112 282,940 362,052 26,371 1,420,371 1,446, 742 798,005 611,151 1,409,156 2,524,306 2,690,996 5,215,302 282,074 216,027 498,101 779,183 - 779,183 287,064 - 287,064 1,348,321 216,027 1,564,348 28,247,394 18,887,277 47,134,671 841 - 841 1,471,705 - 1,471,705 197,648 - 197,648 433,096 - 433,096 10,499,248 6,079,346 16,578,594 $ 40,849,932 $ 24,966,623 $ 65,816,555 See notes to basic financial statements -15- CITY OF ARDEN HILLS Statement of Activities Year Ended December 31, 2023 Net (Expense) Revenue and Program Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business -Type Expenses Services Contributions Contributions Activities Activities Total Functions/programs Primary government Governmental activities General government $ 1,505,270 $ 270,989 $ 151,913 $ - $ (1,082,368) $ - $ (1,082,368) Public safety 2,889,826 449,995 540,931 28,828 (1,870,072) - (1,870,072) Public works 1,327,617 4,725 107,099 568,418 (647,375) - (647,375) Parks and recreation 1,136,248 88,372 5,349 - (1,042,527) - (1,042,527) Economic development 140,255 - 323 - (139,932) - (139,932) Total governmental activities 6,999,216 814,081 805,615 597,246 (4,782,274) - (4,782,274) Business -type activities Water 2,677,247 3,054,674 2,533 36,085 - 416,045 416,045 Sewer 1,864,808 2,394,498 29 93,864 - 623,583 623,583 Surface water management 673,556 958,807 21 - - 285,272 285,272 Recycling 154,519 151,340 26,670 23,491 23,491 Total business -type activities 5,370,130 6,559,319 29,253 129,949 - 1,348,391 1,348,391 Total primary government $12,369,346 $ 7,373,400 $ 834,868 $ 727,195 (4,782,274) 1,348,391 (3,433,883) General revenues General property taxes 4,570,332 - 4,570,332 Tax increments 36,365 - 36,365 Franchise taxes 92,096 - 92,096 Earnings on investments 649,693 277,586 927,279 Transfers 300,000 (300,000) - Total general revenues and transfers 5,648,486 (22,414) 5,626,072 Change in net position 866,212 1,325,977 2,192,189 Net position - beginning 39,983,720 23,640,646 63,624,366 Netposition- ending $40,849,932 $24,966,623 $65,816,555 See notes to basic financial statements -16- CITY OF ARDEN HILLS Balance Sheet Governmental Funds as of December 31, 2023 Permanent Other Total Improvement Governmental Intra-Activity Governmental General Revolving Funds Eliminations Funds Assets Cash and investments $ 4,253,316 $ 5,815,975 $ 3,659,448 $ - $ 13,728,739 Accrued interest receivable 22,369 28,089 13,420 - 63,878 Accounts receivable 21,478 - 29,677 - 51,155 Taxes receivable 102,803 - 750 - 103,553 Special assessments receivable 3,628 1,165,877 - - 1,169,505 Interfund receivable - 194,879 38,941 (233,820) - Leases receivable 779,183 - - - 779,183 Due from other governmental units 46,790 - - - 46,790 Prepaid items 39,554 - 4,293 - 43,847 Total assets $ 5,269,121 $ 7,204,820 $ 3,746,529 $ (233,820) $ 15,986,650 Liabilities Accounts payable $ 110,610 $ 67,519 $ 21,277 $ - $ 199,406 Salaries payable 95,770 - - - 95,770 Deposits payable 974,885 - - - 974,885 Interfund payable - - 233,820 (233,820) - Due to other governmental units 17,051 121,551 659 - 139,261 Unearned revenue 59,745 - 136,436 - 196,181 Total liabilities 1,258,061 189,070 392,192 (233,820) 1,605,503 Deferred inflows of resources Unavailable revenue - taxes 22,514 - 750 - 23,264 Unavailable revenue - special assessments 3,628 1,123,481 - - 1,127,109 Lease revenues for subsequent years 779,183 - - - 779,183 State aid received for subsequent years - 287,064 - - 287,064 Total deferred inflows of resources 805,325 1,410,545 750 - 2,216,620 Fund balances (deficits) Nonspendable 39,554 - 4,293 - 43,847 Restricted - - 2,103,255 - 2,103,255 Committed - - 713,987 - 713,987 Assigned 287,553 5,605,205 751,632 - 6,644,390 Unassigned 2,878,628 - (219,580) - 2,659,048 Total fund balances 3,205,735 5,605,205 3,353,587 - 12,164,527 Total liabilities, deferred inflows of resources, and fund balances $ 5,269,121 $ 7,204,820 $ 3,746,529 $ (233,820) $ 15,986,650 Fund balances reported above $ 12,164,527 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Nondepreciable 4,293,959 Depreciable, net of accumulated depreciation 23,980,939 Internal service funds are used to allocate costs to individual funds. Net position is included in governmental activities in the Statement of Net Position. 185,186 Certain long-term obligations are not payable with current financial resources and, therefore, are not reported in governmental funds. Compensated absences (105,483) Net pension liability (798,005) 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 of resources - pension plans 260,510 Deferred inflows of resources - pension plans (282,074) Deferred inflows of resources - unavailable revenues (taxes, special assessments, and long-term receivable) 1,150,373 Net position of governmental activities $ 40,849,932 See notes to basic financial statements -1 %- CITY OF ARDEN HILLS Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended December 31, 2023 Revenues Property taxes General property taxes Tax increments Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Earnings on investments Franchise taxes Antenna lease rental fees Miscellaneous reimbursements 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 Total expenditures Revenues over expenditures Other financing sources (uses) Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Fund balances - beginning Fund balances - ending Permanent Other Total Improvement Governmental Intra-Activity Governmental General Revolving Funds Eliminations Funds $ 3,963,077 $ 250,000 $ 370,000 $ - $ 4,583,077 - - 36,365 - 36,365 - 358,438 - - 358,438 471,742 - - - 471,742 167,376 496,444 433,096 - 1,096,916 342,339 - - - 342,339 24,681 - - - 24,681 209,901 286,248 146,704 - 642,853 - - 92,096 - 92,096 143,305 - - - 143,305 24,076 - - - 24,076 7,658 150,000 34,151 - 191,809 5,354,155 1,541,130 1,112,412 - 8,007,697 1,235,704 - 148,475 - 1,384,179 2,704,012 - - - 2,704,012 682,510 - - - 682,510 721,291 - - - 721,291 - - 81,788 - 81,788 - - 47,249 - 47,249 - - 168,558 - 168,558 - 289,823 128,403 - 418,226 - 519,269 91,518 - 610,787 5,343,517 809,092 665,991 - 6,818,600 10,638 732,038 446,421 - 1,189,097 - 11,725 171,140 300,000 (171,140) (171,140) 171,140 311,725 (160,502) 903,178 758,146 (171,140) 171,140 11,725 300,000 1,500,822 3,366,237 4,702,027 2,595,441 - 10,663,705 $ 3,205,735 $ 5,605,205 $ 3,353,587 $ - $ 12,164,527 See notes to basic financial statements -18- THIS PAGE INTENTIONALLY LEFT BLANK 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, 2023 Net changes in fund balances — total governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: 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 Depreciation expense A gain or loss on the disposal of capital assets, including the difference between the carrying value and any related sale proceeds, is included in the change in net position. However, only the sale proceeds are included in the change in fund balance. Adjustments are made between the governmental funds and the Statement of Activities for the long-term liability activity of the net pension liability. 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 of resources — pension plans Deferred inflows of resources — pension plans Deferred inflows of resources — unavailable revenues Internal service funds are used to allocate costs to individual funds. The net revenue of the internal service funds is reported with governmental activities in the government -wide financial statements. $ 1,500,822 927,911 (1,045,469) (7,914) 246,289 (59,923) (246,074) (449,209) 7,007 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 (7,228) Change in net position of governmental activities $ 866,212 See notes to basic financial statements -19- CITY OF ARDEN HILLS Assets Current assets Cash and investments Accrued interest receivable Accounts receivable Customers Customer accounts certified to county Prepaid items Inventory Total current assets Noncurrent assets Capital assets Construction in progress Buildings and structures Distribution and collection systems Machinery and equipment Total capital assets Less accumulated depreciation Total capital assets (net of accumulated depreciation) Total assets Deferred outflows of resources Pension plan deferments - PERA Liabilities Current liabilities Accounts payable Due to other governmental units Accrued interest payable Bonds payable Compensated absences payable Total current liabilities Noncurrent liabilities Bonds payable (net of premium) Compensated absences payable Net pension liability Total noncurrent liabilities Total liabilities Deferred inflows of resources Pension plan deferments - PERA Net position Net investment in capital assets Unrestricted Total net position See notes to basic financial statements Statement of Net Position Proprietary Funds as of December 31, 2023 Business -Type Activities - Enterprise Funds Surface Internal Water Nonmajor Service Water Sewer Management Recycling Totals Funds $ 3,197,732 $ 1,223,383 $ 706,162 $ 244,504 $ 5,371,781 16,089 6,871 4,281 1,194 28,435 720,018 639,966 257,882 - 1,617,866 39,719 43,407 5,434 4,936 93,496 7,674 7,674 7,674 - 23,022 13,091 - - - 13,091 3,994,323 1,921,301 981,433 250,634 7,147,691 188,371 170,889 255,416 - 614,676 818,476 16,564 - - 835,040 13,560,356 11,122,807 6,164,970 - 30,848,133 301,210 337,852 - - 639,062 14,868,413 11,648,112 6,420,386 - 32,936,911 (6,052,470) (4,939,764) (1,418,232) - (12,410,466) 8,815,943 6,708,348 5,002,154 - 20,526,445 12,810,266 8,629,649 5,983,587 250,634 27,674,136 66,979 76,823 55,708 - 199,510 $ 198,538 870 1,093 200,501 200,501 53,253 10,950 414 9,056 73,673 3,681 261,799 17,395 - - 279,194 11,634 20,479 3,188 - - 23,667 - 205,000 30,000 - - 235,000 - 15,879 18,650 12,712 699 47,940 - 556,410 80,183 13,126 9,755 659,474 15,315 1,213,485 190,683 - - 1,404,168 - 5,293 6,217 4,237 456 16,203 - 205,173 235,329 170,649 - 611,151 - 1,423,951 432,229 174,886 456 2,031,522 - 1,980,361 512,412 188,012 10,211 2,690,996 15,315 72,524 83,183 60,320 - 216,027 - 7,397,458 6,487,665 5,002,154 - 18,887,277 - 3,426,902 1,623,212 788,809 240,423 6,079,346 185,186 $ 10,824,360 $ 8,110,877 $ 5,790,963 $ 240,423 $ 24,966,623 $ 185,186 -20- CITY OF ARDEN HILLS Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds Year Ended December 31, 2023 Business -Type Activities - Enterprise Funds Surface Internal Water Nonmajor Service Water Sewer Management Recycling Totals Funds Operating revenues Charges for services $ 3,043,265 $ 2,388,625 $ 940,981 $ 150,564 $ 6,523,435 $ 561,413 Permit fees 4,160 2,640 - - 6,800 - Miscellaneous 7,249 3,233 17,826 776 29,084 2,433 Total operating revenues 3,054,674 2,394,498 958,807 151,340 6,559,319 563,846 Operating expenses Personal services 400,475 472,190 342,440 31,739 1,246,844 - Supplies and maintenance 42,435 24,081 12,336 - 78,852 117,843 Other services and charges 341,235 187,145 127,025 6,900 662,305 74,125 Rent 30,503 30,963 13,761 - 75,227 - Insurance 23,083 40,065 4,122 605 67,875 - Utilities 15,642 23,025 - - 38,667 - Purchased services 30,200 14,752 10,435 6,648 62,035 371,711 Purchased water 1,380,690 - - - 1,380,690 - Recycling charges - - - 108,627 108,627 - Sewer charges - 845,369 - - 845,369 - Depreciation 376,642 221,567 163,437 - 761,646 - Total operating expenses 2,640,905 1,859,157 673,556 154,519 5,328,137 563,679 Operating income (loss) 413,769 535,341 285,251 (3,179) 1,231,182 167 Nonoperating revenues (expenses) Intergovernmental revenue 2,533 29 21 26,670 29,253 - Earnings on investments 157,530 69,095 40,528 10,433 277,586 6,840 Interest and fiscal charges (36,342) (5,651) - - (41,993) - Total nonoperating revenues (expenses) 123,721 63,473 40,549 37,103 264,846 6,840 Income before contributions and transfers 537,490 598,814 325,800 33,924 1,496,028 7,007 Capital contributions - connection fees 36,085 26,003 - - 62,088 - Capital contributions - capital grants - 67,861 - - 67,861 - Transfers out (100,000) (126,000) (74,000) - (300,000) - Change in net position 473,575 566,678 251,800 33,924 1,325,977 7,007 Net position Beginning of year 10,350,785 7,544,199 5,539,163 206,499 23,640,646 178,179 End ofyear $ 10,824,360 $ 8,110,877 $ 5,790,963 $ 240,423 $ 24,966,623 $ 185,186 See notes to basic financial statements -21- CITY OF ARDEN HILLS Statement of Cash Flows Proprietary Funds Year Ended December 31, 2023 Business -Type Activities - Enterprise Funds Surface Internal Water Nonmajor Service Water Sewer Management Recycling Totals Funds Cash flows from operating activities Receipts from customers and users $ 2,952,232 $ 2,326,483 $ 945,818 $ 150,816 $ 6,375,349 $ 563,846 Payments to suppliers (1,734,768) (1,106,706) (113,666) (115,588) (3,070,728) (568,902) Payments to employees (395,696) (469,714) (316,613) (33,301) (1,215,324) - Payments for interfund services used (74,923) (77,443) (54,201) (6,900) (213,467) Net cash flows from operating activities 746,845 672,620 461,338 (4,973) 1,875,830 (5,056) Cash flows from noncapital financing activities Cash received from other funds - - - - - 150 Cash paid to other funds - - - - - (150) Grants received 2,533 29 21 26,670 29,253 - Transfers out (100,000) (126,000) (74,000) - (300,000) - Net cash flows from noncapital financing activities (97,467) (125,971) (73,979) 26,670 (270,747) - Cash flows from capital and related financing activities Acquisition and construction of capital assets (14,257) (375,298) (57,970) - (447,525) - Capital contributions - connection fees received 36,085 26,003 - - 62,088 - Capital contributions - capital grants received - 67,861 - - 67,861 - Principal payments on bonds (195,000) (30,000) - - (225,000) - Interest paid (53,049) (8,250) - - (61,299) - Net cash flows from capital and related financing activities (226,221) (319,684) (57,970) - (603,875) - Cash flows from investing activities Earnings on investments 151,348 65,116 37,652 10,120 264,236 6,705 Net change in cash and cash equivalents 574,505 292,081 367,041 31,817 1,265,444 1,649 Cash and cash equivalents - beginning 2,623,227 931,302 339,121 212,687 4,106,337 196,889 Cash and cash equivalents - ending $ 3,197,732 $ 1,223,383 $ 706,162 $ 244,504 $ 5,371,781 $ 198,538 Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) $ 413,769 $ 535,341 $ 285,251 $ (3,179) $ 1,231,182 $ 167 Adjustments to reconcile operating income (loss) to net cash flows from operating activities Depreciation 376,642 221,567 163,437 - 761,646 - Decrease (increase)in accounts receivables (98,442) (68,015) (12,989) (524) (179,970) - Decrease (increase) in prepaid items (367) (367) (367) - (1,101) (330) Decrease (increase) in inventory 8,842 - - - 8,842 - Decrease (increase) in deferred outflows 17,957 22,042 6,295 - 46,294 - Increase (decrease)in accounts payable 33,101 (1,161) 179 292 32,411 (536) Increase (decrease)in deposits payable (4,000) - - - (4,000) - Increase (decrease) in due to other governments 12,521 (17,221) - - (4,700) (4,357) Increase (decrease) in compensated absences payable (4,527) (4,769) (2,403) (1,562) (13,261) - Increase (decrease) in net pension liability (71,632) (86,872) (31,419) - (189,923) - Increase (decrease) in deferred inflows 62,981 72,075 53,354 - 188,410 - Total adjustments 333,076 137,279 176,087 (1,794) 644,648 (5,223) Net cash flows from operating activities $ 746,845 $ 672,620 $ 461,338 $ (4,973) $ 1,875,830 $ (5,056) Noncash investing, capital, and financing activities Due from other governmental units Amortization of bond premium/discount $ 13,457 $ 2,099 $ - $ - $ 15,556 $ - See notes to basic financial statements -22- CITY OF ARDEN HILLS Notes to Basic Financial Statements December 31, 2023 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, protective inspections, 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. -23- 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 contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular 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 those 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 leases, when applicable, are reported as other financing sources. Major revenue that is susceptible to accrual includes property taxes, special assessments, intergovernmental revenue, charges for services, franchise taxes, antenna lease rental fees, and interest earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, fees, fines and forfeits, and miscellaneous revenue. Such revenue is recorded only when received because it is not measurable until collected. -24- 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. Permanent Improvement Revolving Fund — The Permanent Improvement Revolving Fund (capital project fund) accounts for the acquisition of capital assets or construction for major capital projects not being financed by proprietary funds. The City reports the following major enterprise 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. The City reports the following nonmajor enterprise fund: Recycling Fund — The Recycling Fund accounts for the recycling service charges, which are used to finance the City's recycling operations. -25- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Additionally, the City reports the following fund type: Internal Service Funds — The internal service funds account 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 most special revenue funds. A budget was not legally adopted for the two special revenue funds established for specific short-term projects: Karth Lake Improvement District and American Rescue Plan Act 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. 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. Budgetary control for capital projects funds is accomplished through the use of project controls, not legally enacted budgets. The appropriations are not reflected in the financial statements. For the year ended December 31, 2023, actual expenditures exceeded budgeted expenditures in the Cable Special Revenue Fund by $5,715. This variance was financed by available fund balance. ► ei 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 fair value of the position in the pool is the same as the value of the pool shares, which is based on an amortized cost method that approximates fair value. The 4M Fund is sponsored by the League of Minnesota Cities. For this investment pool, there are no unfunded commitments, redemption frequency is daily, and there is no redemption notice required for the Liquid Class; the redemption notice period is 14 days for the Plus Class. 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 taxes, special assessments, leases, and the long-term receivable in the Permanent Improvement Revolving Fund. -27- 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 taxing 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 financial 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. ►.:2 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. Property, plant, and equipment of the City are 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. Long -Term Obligations In the government -wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are expensed in the period incurred. W2 NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. State -Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA's fiduciary net position have been determined on the same basis as they are reported by the PERA. 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. Q. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, statements of financial position or balance sheets may report separate financial statement elements called deferred outflows or inflows of resources. These separate financial statement elements represent a consumption or acquisition of net assets 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 reported deferred outflows and inflows of resources related to pensions in the government -wide and proprietary funds Statement of Net Position. These deferred outflows and inflows result from differences between expected and actual economic experience, changes in actuarial assumptions, net collective difference between projected and actual investment earnings, changes in proportion, and contributions to the plan subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under pension standards. Imposed nonexchange revenue transactions, state aid received for subsequent years, is deferred and recognized as an inflow of resources in the period that the resources are appropriated. This item is reported both in the governmental funds Balance Sheet and the government -wide Statement of Net Position as a deferred inflow of resources. The City reports deferred inflows of resources related to leases receivable in the government -wide Statement of Net Position and governmental funds Balance Sheet, which requires lessors to recognize deferred inflows of resources to correspond to lease receivables. These amounts are deferred and amortized in a systematic and rationale manner over the term of the lease. 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 three sources: property taxes, special assessments, and long-term receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. R. 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: • Net Investment in Capital Assets — Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. 5112 NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • 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, or enabling legislation. • Unrestricted Net Position — All other elements of net position that do not meet the definition of "restricted" or "net 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. S. 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 where there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments, or enabling legislation. • 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 finance director 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. T. 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. -31- NOTE 2 — DEPOSITS AND INVESTMENTS A. Components of Cash and Investments The City had the following cash and investments at year-end: Interest Risk — Fair Value Maturity Duration in Years Credit Risk Measurements Less Than 1 to 5 6 to 10 Greater Than Investment Type Rating Agency Using 1 Year Years Years 10 Years Total U.S. government agency securities Federal Home Loan Bank Federal Farm Credit Bank Municipal bonds Municipal bonds Municipal bonds Municipal bonds Municipal bonds Negotiable certificates of deposit Investment pools/mutual funds 4M Fund 4M Term Series Wells Fargo Money Market Advantage Total investments Petty cash Total cash and investments N/R — Not Rated N/A — Not Applicable B. Deposits AA S&P Level $ — $ 902,432 $ 1,117,183 $ — $ 2,019,615 AA S&P Level — 285,471 1,386,327 — 1,671,798 AAA S&P Level — 606,512 425,834 — 1,032,346 AAA Moody's Level — 232,115 — — 232,115 AA S&P Level — 1,053,227 3,082,461 376,796 4,512,484 AA Moody's Level — 616,803 1,381,916 — 1,998,719 A Moody's Level — 521,978 314,468 — 836,446 N/R N/A Level — 1,686,058 240,833 — 1,926,891 N/R N/A N/A 4,557,507 — — — 4,557,507 N/R N/A N/A 500,000 — — — 500,000 AAA S&P Level 10,637 — — — 10,637 $ 5,068,144 $ 5,904,596 $ 7,949,022 $ 376,796 19,298,558 500 $19,299,058 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, corporate surety bond, or collateral. The fair 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 $0, with the use of a depository sweep account. Any bank balance during the year was covered by federal deposit insurance, surety bonds, or by collateral held by the City's agent in the City's name. -32- 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 possession 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. 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 5.0 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 5.0 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 25.0 percent with any individual counterparty in an external investment pool. At December 31, 2023, the City's investment in Federal Home Loan Bank and Federal Farm Credit bank represented 10.5 percent and 8.7 percent, respectively, of the total investments of the City. 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 registered 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 maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with 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 Federal Reserve Bank of New York; or certain Minnesota securities broker -dealers. The City's investment policies do not further address credit risk. NOTE 3 — LEASE RECEIVABLE The City has entered into lease receivable agreements for cell tower rental space on city property. The leases are reported using an incremental rate of 3.25 percent with a final maturity through fiscal 2030. During the current year, the City received principal and interest payments on these leases of $143,305. NOTE 4 - CAPITAL ASSETS Capital asset activity for the year ended December 31, 2023 was as follows: A. Governmental Activities Beginning Completed Ending Balance Increases Decreases Construction Balance Primary government Governmental activities Capital assets, not being depreciated Land $ 2,669,467 $ - $ - $ - $ 2,669,467 Construction in progress 2,090,423 735,865 - (1,201,796) 1,624,492 Total capital assets, not being depreciated 4,759,890 735,865 - (1,201,796) 4,293,959 Capital assets, being depreciated Buildings and structures Infrastructure and improvements Machinery and equipment Office furniture and equipment Vehicles Total capital assets, being depreciated Less accumulated depreciation for Buildings and structures Infrastructure and improvements Machinery and equipment Office furniture and equipment Vehicles Total accumulated depreciation Total capital assets being depreciated - net Governmental activities capital assets - net B. Business -Type Activities 7,583,468 - - - 7,583,468 24,492,134 - - 1,201,796 25,693,930 1,017,462 63,621 - - 1,081,083 153,553 - - - 153,553 2,272,053 128,425 (39,572) - 2,360,906 35,518,670 192,046 (39,572) 1,201,796 36,872,940 4,019,458 236,964 - - 4,256,422 5,794,726 581,192 - - 6,375,918 718,200 43,867 - - 762,067 144,696 4,948 - - 149,644 1,201,110 178,498 (31,658) - 1,347,950 11,878,190 1,045,469 (31,658) - 12,892,001 23,640,480 (853,423) (7,914) 1,201,796 23,980,939 $ 28,400,370 $ (117,558) $ (7,914) $ - $ 28,274,898 Beginning Completed Ending Balance Increases Decreases Construction Balance Primary government Business -type activities Capital assets, not being depreciated Construction in progress $ 735,625 $ 447,525 $ - $ (568,474) $ 614,676 Capital assets, being depreciated Buildings and structures 835,040 - - - 835,040 Distribution and collection systems 30,279,659 - - 568,474 30,848,133 Machinery and equipment 639,062 - - - 639,062 Total capital assets, being depreciated 31,753,761 - - 568,474 32,322,235 Less accumulated depreciation for Buildings and structures Distribution and collection systems Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated - net Business -type activities capital assets - net 337,980 41,543 - - 379,523 10,948,182 695,433 - - 11,643,615 362,658 24,670 - - 387,328 11,648,820 761,646 - - 12,410,466 20,104,941 (761,646) - 568,474 19,911,769 $ 20,840,566 $ (314,121) $ - $ - $ 20,526,445 -34- NOTE 4 — CAPITAL ASSETS (CONTINUED) C. Depreciation Expense by Function Depreciation expense was charged to the following functions: Governmental activities General government $ 108,921 Public safety 6,562 Public works 628,947 Parks and recreation 242,867 Economic development 58,172 $ 1,045,469 Business -type activities Water $ 376,642 Sewer 221,567 Surface water management 163,437 $ 761,646 NOTE 5 — LONG-TERM LIABILITIES A. General Obligation Bonds Payable The City currently has the following general obligation bonds payable outstanding: Final Maturity Authorized Balance — Issue Date Date Interest Rate and Issued End of Year Business -type activities General Obligation Bonds Utility Revenue Bonds of 2018A 07/18/2018 02/01/2029 3.00-4.00 % $ 2,415,000 $ 1,560,000 These bonds were issued to finance acquisition, construction, and/or improvements of capital facilities. Water and Sewer Enterprise Fund revenues will be used to repay this debt. The liability is recorded in the applicable enterprise fund. B. Other Long -Term Liabilities • Compensated Absences — This liability represents vested benefits earned by employees through the end of the year, which will be paid or used in future periods. The General, special revenue, enterprise, and internal service funds will be used to liquidate this liability. • Net Pension Liability — This liability represents the City's pension benefit obligations as further described later in these notes. The General, special revenue, Water, Sewer, and Surface Water Management Funds will be used to liquidate this liability. IRS2 NOTE 5 - LONG-TERM LIABILITIES (CONTINUED) C. Changes in General Obligation Bonds and Compensated Absences Payable Governmental activities Compensated absences Business -type activities Utility revenue bonds Premium Total bonds Compensated absences Total business -type activities Total government -wide D. Minimum Debt Payments Beginning Ending Due Within Balance Additions Deletions Balance One Year $ 98,255 $ 145,712 $ 138,484 $ 105,483 $ 79,112 1,785,000 - 225,000 1,560,000 235,000 94,724 - 15,556 79,168 - 1,879,724 - 240,556 1,639,168 235,000 77,404 104,878 118,139 64,143 47,940 1,957,128 104,878 358,695 1,703,311 282,940 $ 2,055,383 $ 250,590 $ 497,179 $ 1,808,794 $ 362,052 Minimum annual payments required to retire bonds are as follows: Business -Type Activities Year Ending Utility Revenue Bonds December 31, Principal Interest 2024 $ 235,000 $ 52,100 2025 245,000 42,500 2026 255,000 32,500 2027 265,000 22,100 2028 275,000 12,675 2029 285,000 4,275 Total $ 1,560,000 $ 166,150 E. Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: Revenue Pledged Current Year Percent of Remaining Principal Pledged Use of Total Term of Principal and Interest Revenue Debt Issue Proceeds Type Debt Service Pledge and Interest Paid Received Utility Revenue Bonds of 2018A Utility improvements Utility charges 100% 2018-2029 $ 1,726,150 $ 286,299 $ 5,511,260 99�Gl NOTE 6 — NET POSITION/FUND BALANCES A. Net Investment in Capital Assets The government -wide Statement of Net Position at December 31, 2023 includes the City's net investment in capital assets calculated as follows: Net investment in capital assets Capital assets Nondepreciable Depreciable, net of accumulated depreciation Less capital -related long-term debt outstanding Less capital -related accounts/contracts payable Total net investment in capital assets B. Governmental Fund Balance Classifications Governmental Business -Type A $ 4,293,959 $ 614,676 $ 4,908,635 23,980,939 19,911,769 43,892,708 — (1,639,168) (1,639,168) (27,504) — (27,504) $ 28,247,394 $ 18,887,277 $ 47,134,671 At December 31, 2023, a summary of the City's governmental fund balance classifications are as follows: Nonspendable Prepaid items Restricted for Cable TV Tax increment purposes Park improvements Public safety Total restricted Committed for Economic development authority Assigned for Compensated absences Subsequent year's budget Capital improvements Public safety capital equipment Total assigned Unassigned Total Permanent Other Improvement Governmental General Revolving Funds Total $ 39,554 $ 105,483 182,070 — $ 4,293 $ 43,847 — 806 806 — 1,471,705 1,471,705 — 197,648 197,648 — 433,096 433,096 2,103,255 2,103,255 713,987 713,987 105,483 182,070 5,605,205 383,682 5,988,887 — 367,950 367,950 5,605,205 751,632 6,644,390 2,878,628 — (219,580) 2,659,048 $ 3,205,735 $ 5,605,205 $ 3,353,587 $ 12,164,527 C. 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, 2023, the unassigned fund balance of the General Fund was 47.4 percent of the subsequent year's budgeted expenditures. 191FA NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE A. Plan Description The City participates in the following cost -sharing, multiple -employer defined benefit pension plan administered by the Public Employees Retirement Association (PERA) of Minnesota. The PERA's defined benefit pension plan is established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA's defined benefit pension plan is a tax qualified plan under Section 401(a) of the IRC. 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 the Coordinated Plan. Coordinated Plan members are covered by Social Security. 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. 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 Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated Plan members is 1.2 percent for each of the first 10 years of service, and 1.7 percent for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7 percent for all years of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90, and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at age 66. Benefit increases are provided to benefit recipients each January. The post -retirement increase is equal to 50.0 percent of the cost of living adjustment (COLA) announced by the Social Security Administration, with a minimum increase of at least 1.0 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase, will receive the full increase. Recipients receiving the annuity or benefit for at least one month, but less than a full year as of the June 30 before the effective date of the increase, will receive a reduced prorated increase. In 2023, legislation repealed the statute delaying increases for members retiring before full retirement age. In 2023, the Legislature allocated funding for a one-time lump -sum payment to the General Employee benefit recipients. Eligibility criteria and the payment amount is specified in statute. The one-time payment is noncompounding towards future benefits. Qc1:2 NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) 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 Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2023, and the City was required to contribute 7.50 percent for Coordinated Plan members. The City's contributions to the GERF for the year ended December 31, 2023, were $154,657. The City's contributions were equal to the required contributions as set by state statutes. D. Pension Costs GERF Pension Costs At December 31, 2023, the City reported a liability of $1,409,156 for its proportionate share of the GERF's net pension liability. The City's net pension liability reflected a reduction, due to the state of Minnesota's contribution of $16.0 million. The state of Minnesota is considered a nonemployer contributing entity and the state's contribution meets the definition of a special funding situation. The state of Minnesota's proportionate share of the net pension liability associated with the City totaled $38,854. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2022 through June 30, 2023, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.0252 percent at the end of the measurement period and 0.0233 percent for the beginning of the period. The amount recognized by the City as its proportionate share of the net pension 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 the net pension liability $ 1,409,156 State's proportionate share of the net pension liability associated with the City 38,854 Total $ 1,448,010 For the year ended December 31, 2023, the City recognized pension expense of $259,313 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $175 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota's contribution of $16.0 million to the GERF. 1922 NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) At December 31, 2023, the City reported its proportionate share of the GERF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Net collective difference between projected and actual investment earnings Changes in proportion Contributions paid to the PERA subsequent to the measurement date Total Deferred Deferred Outflows Inflows of Resources of Resources $ 45,439 $ 9,399 220,484 386,238 — 78,977 117,357 23,487 76,740 — $ 460,020 $ 498,101 A total of $76,740 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2024. 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 2024 $ 50,457 2025 $ (191,622) 2026 $ 56,912 2027 $ (30,568) E. Long -Term Expected Return on Investments The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best -estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long -Term Expected Asset Class Allocation Real Rate of Return Domestic equity 33.50 % 5.10 % International equity 16.50 5.30 % Fixed income 25.00 0.75 % Private markets 25.00 5.90 % Total 100.00 % Cil2 NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) F. Actuarial Methods and Assumptions The total pension liability in the June 30, 2023, actuarial valuation was determined using an individual entry -age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 7.00 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 7.00 percent was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2.25 percent for the General Employees Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.00 percent after 27 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. The tables are adjusted slightly to fit the PERA's experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study for the General Employees Plan was completed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023 actuarial valuation. The following change in actuarial assumptions and plan provisions occurred in 2023: GERF CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return assumption and single discount rate were changed from 6.50 percent to 7.00 percent. CHANGES IN PLAN PROVISIONS • An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. • A one-time, noncompounding benefit increase of 2.50 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. G. Discount Rate The discount rate used to measure the total pension liability in 2023 was 7.00 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 General Employees Fund was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. -41- NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) H. Pension Liability Sensitivity The following table presents the City's proportionate share of the net pension liability for the plan it participates in, calculated using the discount rate disclosed on the preceding page, 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 Current 1 % Increase in Discount Rate Discount Rate Discount Rate (6.00%) (7.00%) (8.00%) City's proportionate share of the GERF net pension liability $ 2,492,910 $ 1,409,156 $ 517,727 I. Pension Plan Fiduciary Net Position Detailed information about the pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the internet at www.mnpera.org. NOTE 8 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A. Interfund Receivable and Payable Interfund receivable and payable balances at December 31, 2023 are as follows: Fund Governmental funds Permanent Improvement Revolving Nonmajor — other governmental Intra-activity eliminations Total governmental funds Receivable $ 194,879 38,941 (233,820) Payable 233,820 (233,820) Interfund receivables and payables are used for temporary cash deficits. These balances will be eliminated with park dedication fees, future charges for services, grants, and other internal fund transfers, if needed. -42- NOTE 8 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) B. Transfers In and Transfers Out Transfers Out Governmental funds General Proprietary funds Water Sewer Surface Water Management Total Transfers In Governmental Funds Permanent Nonmajor — Improvement Other Revolving Governmental Total $ 171,140 $ — $ 171,140 — 100,000 100,000 — 126,000 126,000 — 74,000 74,000 $ 171,140 $ 300,000 $ 471,140 Transfers are made in accordance with budget appropriations or as approved by the City Council for special funding of city activities. All of the transfers presented above were approved by the City Council. Transfers out of proprietary funds were made to finance current and future capital equipment, building, and replacement expenditures of the City. The General Fund transferred $171,140 of available resources to the Permanent Improvement Revolving Fund to support future capital projects as authorized by the City Council. Interfund receivables, payables, and transfers are eliminated to the extent possible with the government -wide financial statement presentation. NOTE 9 — DEFICIT FUND BALANCES The City had deficit fund balances at December 31, 2023 as follows: Amount Governmental funds Nonmajor — EDA TIF District No. 5 $ 24,701 Nonmajor — TCAAP 194,879 Total $ 219,580 These fund deficits will be eliminated with future contributions, grants, and internal fund transfers, if needed. -43- 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 carries 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 has the usual and customary type of miscellaneous legal claims pending at year-end. Although the outcome of these lawsuits is not presently determinable, the City's management believes that the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City's financial statements relating to these claims. 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 noncompliance, 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 contract calls for annual payments and expires December 31, 2023, with an extension option through December 31, 2038. 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 $751,177 in 2023. The City also made capital contributions in the current year totaling $168,558. -44- NOTE 10 — COMMITMENTS AND CONTINGENCIES (CONTINUED) F. Construction Contract Commitments At year-end, the City had the following construction contract commitments: ect Amount Permanent Improvement Revolving Fund 2022 pavement management program $ 87,011 Lexington Avenue project 432,529 Total $ 519,540 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 the 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, 2023 are as follows: Bond Commercial Facilities Revenue Note, Series 2008 Housing Facility Revenue Note, Series 2011A Housing Facility Revenue Note, Series 2012A Housing Facility Revenue Note, Series 2015 Total Amount Description Outstanding Office facilities $ 1,964,136 Senior housing 6,924,253 Senior housing 6,924,253 Senior housing 7,639,753 $ 23,452,395 -45- THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION TAB CITY OF ARDEN HILLS PERA — General Employees Retirement Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability Year Ended December 31, 2023 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 City Fiscal (Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension Year -End Date Date) Liability Liability Liability Liability Payroll Payroll Liability 12/31/2015 06/30/2015 0.0283% $ 1,466,653 $ — $ 1,466,653 $ 1,662,826 88.20% 78.20% 12/31/2016 06/30/2016 0.0267% $ 2,167,909 $ 28,367 $ 2,196,276 $ 1,669,147 129.88% 68.90% 12/31/2017 06/30/2017 0.0230% $ 1,468,305 $ 18,435 $ 1,486,740 $ 1,479,483 99.24% 75.90% 12/31/2018 06/30/2018 0.0218% $ 1,209,375 $ 39,819 $ 1,249,194 $ 1,467,987 82.38% 79.50% 12/31/2019 06/30/2019 0.0218% $ 1,205,274 $ 37,332 $ 1,242,606 $ 1,540,669 78.23% 80.20% 12/31/2020 06/30/2020 0.0241% $ 1,444,905 $ 44,478 $ 1,489,383 $ 1,715,236 84.24% 79.10% 12/31/2021 06/30/2021 0.0244% $ 1,041,989 $ 31,890 $ 1,073,879 $ 1,758,683 59.25% 87.00% 12/31/2022 06/30/2022 0.0233% $ 1,845,368 $ 53,913 $ 1,899,281 $ 1,741,886 105.94% 76.70% 12/31/2023 06/30/2023 0.0252% $ 1,409,156 $ 38,854 $ 1,448,010 $ 2,003,871 70.32% 83.10% PERA — General Employees Retirement Fund Schedule of City Contributions Year Ended December 31, 2023 City Fiscal Year -End Date Statutorily Required Contributions Contributions in Relation to the Statutorily Required Contributions Contribution Deficiency (Excess) Covered Payroll Contributions as a Percentage of Covered Payroll 12/31/2015 $ 129,774 $ 129,774 $ — $ 1,730,320 7.50% 12/31/2016 $ 115,814 $ 115,814 $ — $ 1,544,187 7.50% 12/31/2017 $ 106,513 $ 106,513 $ — $ 1,420,174 7.50% 12/31/2018 $ 111,628 $ 111,628 $ — $ 1,488,376 7.50% 12/31/2019 $ 121,063 $ 121,063 $ — $ 1,614,175 7.50% 12/31/2020 $ 134,798 $ 134,798 $ — $ 1,797,307 7.50% 12/31/2021 $ 123,572 $ 123,572 $ — $ 1,647,630 7.50% 12/31/2022 $ 143,623 $ 143,623 $ — $ 1,914,968 7.50% 12/31/2023 $ 154,657 $ 154,657 $ — $ 2,062,098 7.50% Note: 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. -46- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Revenues General property taxes Special assessments Licenses and permits Business Nonbusiness Total licenses and permits Intergovernmental State Road maintenance Police aid Local performance aid Total intergovernmental Charges for services General government Public safety Parks and recreation Administrative charges Total charges for services Required Supplementary Information Budgetary Comparison Schedule - General Fund Year Ended December 31, 2023 Original Final Actual Variance With Budget Budget Amounts Final Budget $ 4,078,390 $ 4,078,390 $ 3,963,077 $ (115,313) 3,350 3,350 - (3,350) 76,990 76,990 83,519 6,529 434,740 434,740 388,223 (46,517) 511,730 511,730 471,742 (39,988) 111,700 111,700 106,355 (5,345) 59,670 59,670 59,666 (4) 1,355 1,355 171,370 171,370 167,376 (3,994) 17,600 17,600 17,708 108 146,350 146,350 79,439 (66,911) 104,550 104,550 88,372 (16,178) 113,740 113,740 156,820 43,080 382,240 382,240 342,339 (39,901) Fines and forfeits 23,190 23,190 24,681 1,491 Earnings on investments 42,500 42,500 209,901 167,401 Antenna lease rental fees 143,310 143,310 143,305 (5) Miscellaneous reimbursements 10,260 10,260 24,076 13,816 Other 3,080 3,080 7,658 4,578 Total revenues 5,369,420 5,369,420 5,354,155 (15,265) Expenditures Current General government City Council Personal services Materials and supplies Other services and charges Total City Council Elections Other services and charges Administration Personal services Materials and supplies Other services and charges Total administration 37,230 37,230 37,231 (1) 123 (123) 19,620 36,280 34,693 1,587 56,850 73,510 72,047 1,463 33,200 33,200 31,056 2,144 262,340 275,730 264,951 10,779 650 650 - 650 157,850 157,850 172,456 (14,606) 420,840 434,230 437,407 (3,177) -47- (continued) CITY OF ARDEN HILLS Required Supplementary Information Budgetary Comparison Schedule - General Fund (continued) Year Ended December 31, 2023 Expenditures (continued) Current (continued) General government (continued) Finance Personal services Materials and supplies Other services and charges Total finance TCAAP Personal services Other services and charges Total TCAAP Planning and zoning Personal services Other services and charges Total planning and zoning General government buildings Personal services Materials and supplies Other services and charges Total general government buildings Total general government Public safety Police and animal control Other services and charges Dispatch Other services and charges Fire protection Other services and charges Emergency management Personal services Other services and charges Total emergency management Protective inspections Personal services Materials and supplies Other services and charges Total protective inspections Total public safety Original Final Actual Variance With Budget Budget Amounts Final Budget 79,630 79,630 73,620 6,010 16,500 16,500 11,505 4,995 95,420 95,420 75,915 19,505 191,550 191,550 161,040 30,510 39,450 39,450 39,431 19 51,000 51,000 38,227 12,773 90,450 90,450 77,658 12,792 233,470 236,120 190,620 45,500 44,960 44,960 37,062 7,898 278,430 281,080 227,682 53,398 37,360 37,360 38,712 (1,352) 9,500 9,500 10,786 (1,286) 177,050 177,050 179,316 (2,266) 223,910 223,910 228,814 (4,904) 1,295,230 1,327,930 1,235,704 92,226 1,453,280 1,453,280 1,491,764 (38,484) 68,740 68,740 68,737 3 751,180 751,180 751,177 3 5,280 5,280 5,165 115 1,550 1,550 3,424 (1,874) 6,830 6,830 8,589 (1,759) 305,030 305,030 279,459 25,571 1,250 1,250 662 588 69,490 69,490 103,624 (34,134) 375,770 375,770 383,745 (7,975) 2,655,800 2,655,800 2,704,012 (48,212) -48- (continued) CITY OF ARDEN HILLS Required Supplementary Information Budgetary Comparison Schedule - General Fund (continued) Year Ended December 31, 2023 Expenditures (continued) Current (continued) Public works Street maintenance Personal services Materials and supplies Other services and charges Total public works Parks and recreation Park maintenance Personal services Materials and supplies Other services and charges Total park maintenance Recreation Personal services Materials and supplies Other services and charges Total recreation Total parks and recreation Total expenditures Revenues over (under) expenditures Other financing sources (uses) Transfers out Net change in fund balance Fund balance - beginning Fund balance - ending Original Final Actual Variance With Budget Budget Amounts Final Budget 347,360 360,010 337,708 22,302 55,250 70,250 59,540 10,710 393,820 393,820 285,262 108,558 796,430 824,080 682,510 141,570 358,410 358,410 349,403 9,007 43,350 43,350 77,980 (34,630) 143,830 143,830 117,254 26,576 545,590 545,590 544,637 953 156,690 157,330 126,476 30,854 23,250 23,250 15,360 7,890 57,190 57,190 34,818 22,372 237,130 237,770 176,654 61,116 782,720 783,360 721,291 62,069 5,530,180 5,591,170 5,343,517 247,653 (160,760) (221,750) 10,638 232,388 - (171,140) (171,140) - $ (160,760) $ (392,890) (160,502) $ 232,388 3,366,237 $ 3,205,735 -49- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Notes to Required Supplementary Information December 31, 2023 NOTE 1— LEGAL COMPLIANCE — BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level. Budgeted appropriations lapse at year-end. 10111004M911;7:W"We111;7�a11u19111]'/11xy;71UY1;7Old 104,21d wm 2023 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return assumption and single discount rate were changed from 6.50 percent to 7.00 percent. 2023 CHANGES IN PLAN PROVISIONS • An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. • A one-time, noncompounding benefit increase of 2.50 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. WO CITY OF ARDEN HILLS Notes to Required Supplementary Information (continued) December 31, 2023 NOTE 2 — PERA — GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five, and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments. • The mortality improvement scale was changed from MP-2018 to MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100.00 percent joint and survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the life annuity option was adjusted accordingly. 2020 CHANGES IN PLAN PROVISIONS Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. 2019 CHANGES IN PLAN PROVISIONS • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. -51- CITY OF ARDEN HILLS Notes to Required Supplementary Information (continued) December 31, 2023 NOTE 2 - PERA - GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2018 CHANGES IN ACTUARIAL ASSUMPTIONS The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044, and 2.50 percent per year thereafter, to 1.25 percent per year. 2018 CHANGES IN PLAN PROVISIONS • The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Post -retirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. • For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 CHANGES IN ACTUARIAL ASSUMPTIONS The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for nonvested deferred member liability. The assumed post -retirement benefit increase rate was changed from 1.00 percent per year for all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter. 2017 CHANGES IN PLAN PROVISIONS • The state's contribution for the Minneapolis Employees Retirement Fund equals $16.0 million in 2017 and 2018, and $6.0 million thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state's contribution changed from $16.0 million to $6.0 million in calendar years 2019 to 2031. -52- CITY OF ARDEN HILLS Notes to Required Supplementary Information (continued) December 31, 2023 NOTE 2 — PERA — GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2016 CHANGES IN ACTUARIAL ASSUMPTIONS The assumed post -retirement benefit increase rate was changed from 1.00 percent per year through 2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years. The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. Other assumptions were changed pursuant to the experience study 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. 2015 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post -retirement benefit increase rate was changed from 1.00 percent per year through 2030, and 2.50 percent per year thereafter, to 1.00 percent per year through 2035, and 2.50 percent per year thereafter. 2015 CHANGES IN PLAN PROVISIONS On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892.0 million. Upon consolidation, state and employer contributions were revised; the state's contribution of $6.0 million, which meets the special funding situation definition, was due September 2015. SM! SUPPLEMENTARY 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 statutes, 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). CITY OF ARDEN HILLS Nonmajor Governmental Funds Combining Balance Sheet as of December 31, 2023 Assets Cash and investments Accrued interest receivable Accounts receivable Taxes receivable Interfund receivable Prepaid items Total assets Liabilities Accounts payable Interfund payable Due to other governmental units Unearned revenue Total liabilities Deferred inflows of resources Unavailable revenue — taxes Fund balances (deficits) Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Total Nonmajor Governmental Special Revenue Capital Project Funds $ 2,272,508 $ 1,386,940 $ 3,659,448 10,356 3,064 13,420 22,781 6,896 29,677 750 — 750 38,941 — 38,941 4,293 — 4,293 $ 2,349,629 $ 1,396,900 $ 3,746,529 $ 7,412 $ 13,865 $ 21,277 38,941 194,879 233,820 — 659 659 136,436 — 136,436 182,789 209,403 392,192 750 — 750 4,293 — 4,293 1,472,511 630,744 2,103,255 713,987 — 713,987 — 751,632 751,632 (24,701) (194,879) (219,580) 2,166,090 1,187,497 3,353,587 $ 2,349,629 $ 1,396,900 $ 3,746,529 -54- CITY OF ARDEN HILLS Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2023 Total Nonmajor Governmental Special Revenue Capital Project Funds Revenues Property taxes General property taxes $ 100,000 $ 270,000 $ 370,000 Tax increments 36,365 - 36,365 Intergovernmental - 433,096 433,096 Earnings on investments 105,505 41,199 146,704 Franchise taxes 92,096 - 92,096 Other 323 33,828 34,151 Total revenues 334,289 778,123 1,112,412 Expenditures Current General government 148,475 - 148,475 Economic development 81,788 - 81,788 Capital outlay General government - 47,249 47,249 Public safety - 168,558 168,558 Public works - 128,403 128,403 Parks and recreation - 91,518 91,518 Total expenditures 230,263 435,728 665,991 Revenues over expenditures 104,026 342,395 446,421 Other financing sources Sale of capital assets - 11,725 11,725 Transfers in - 300,000 300,000 Total other financing sources - 311,725 311,725 Net change in fund balances 104,026 654,120 758,146 Fund balances - beginning 2,062,064 533,377 2,595,441 Fund balances - ending $ 2,166,090 $ 1,187,497 $ 3,353,587 -55- THIS PAGE INTENTIONALLY LEFT BLANK 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 Operating Fund — The EDA Operating 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). 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 expenditures. This tax increment district was decertified in 2019. 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 expenditures. EDA TIF District No. 5 Fund — This fund was established as a redevelopment district in 2019 pursuant to special legislation for the TCAAP property. The revenue is derived from tax increment and expenditures are for economic development and administrative expenditures. Karth Lake Improvement District Fund — This fund accounts for revenue sources, including taxes, that are restricted to finance capital and other improvements within the Karth Lake Improvement District. American Rescue Plan Act Fund — This fund was established in 2021. The funding is derived from federal appropriations distributed to the City for lost public sector revenue, investments in water, sewer, broadband infrastructure, and other purposes identified in the act. CITY OF ARDEN HILLS Nonmajor Special Revenue Funds Combining Balance Sheet as of December 31, 2023 EDA EDA EDA EDA TIF District TIF District TIF District Cable Operating No.3 No.4 No.5 Assets Cash and investments $ — $ 696,019 $ 792,571 $ 647,482 $ — Accrued interest receivable — 3,405 3,878 3,073 — Accounts receivable 22,458 323 — — — Taxes receivable — — — — — Interfund receivable — 14,240 24,701 — — Prepaid items 35 4,258 — — — Total assets $ 22,493 $ 718,245 $ 821,150 $ 650,555 $ — Liabilities Accounts payable $ 7,412 $ — $ — $ — $ — Interfund payable 14,240 — — — 24,701 Unearned revenue — — — — — Total liabilities 21,652 — — — 24,701 Deferred inflows of resources Unavailable revenue — taxes — — — — — Fund balances (deficits) Nonspendable 35 4,258 — — — Restricted 806 — 821,150 650,555 — Committed — 713,987 — — — Unassigned — — — — (24,701) Total fund balances (deficits) 841 718,245 821,150 650,555 (24,701) Total liabilities, deferred inflows of resources, and fund balances $ 22,493 $ 718,245 $ 821,150 $ 650,555 $ — -56- Total Nonmaj or Karth Lake American Special Improvement Rescue Plan Revenue District Act Funds $ — $ 136,436 $ 2,272,508 10,356 22,781 750 — 750 38,941 4,293 $ 750 $ 136,436 $ 2,349,629 $ — $ — $ 7,412 38,941 136,436 136,436 136,436 182,789 750 — 750 4,293 1,472,511 713,987 (24,701) 2,166,090 $ 750 S 136,436 $ 2,349,629 sire CITY OF ARDEN HILLS Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2023 EDA EDA EDA EDA TIF District TIF District TIF District Cable Operating No.3 No.4 No.5 Revenues Property taxes General property taxes $ — $ 100,000 $ — $ — $ — Tax increments — — — 36,365 — Earnings on investments 585 33,945 39,693 31,282 Franchise taxes 92,096 — — — — Other — 323 — — — Total revenues 92,681 134,268 39,693 67,647 — Expenditures Current General government 148,475 — — — — Economic development — 78,537 1,084 1,083 1,084 Total expenditures 148,475 78,537 1,084 1,083 1,084 Net changes in fund balances (55,794) 55,731 38,609 66,564 (1,084) Fund balances (deficits) — beginning 56,635 662,514 782,541 583,991 (23,617) Fund balances (deficits) — ending $ 841 $ 718,245 $ 821,150 $ 650,555 $ (24,701) -58- Total Nonmaj or Karth Lake American Special Improvement Rescue Plan Revenue District Act Funds $ 100,000 36,365 105,505 92,096 323 334,289 148,475 81,788 230,263 104,026 2,062,064 $ 2,166,090 -59- THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR CAPITAL PROJECT FUNDS The City had the following nonmajor capital project funds during the year: Equipment, Building, and Replacement Fund — This fund was established for resources designated to be used for the purchase of capital equipment and building repairs. 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. CITY OF ARDEN HILLS Nonmajor Capital Project Funds Combining Balance Sheet as of December 31, 2023 Total Equipment, Public Safety Nonmajor Building, and Capital Capital Replacement Parks Equipment TCAAP Project Funds Assets Cash and investments $ 395,344 $ 198,458 $ 793,138 $ - $ 1,386,940 Accrued interest receivable 452 941 1,671 - 3,064 Accounts receivable - - 6,896 - 6,896 Total assets $ 395,796 $ 199,399 $ 801,705 $ - $ 1,396,900 Liabilities Accounts payable $ 12,114 $ 1,751 $ - $ - $ 13,865 Interfund payable - - - 194,879 194,879 Due to other governmental units - - 659 - 659 Total liabilities 12,114 1,751 659 194,879 209,403 Fund balances (deficits) Restricted - 197,648 433,096 - 630,744 Assigned 383,682 - 367,950 - 751,632 Unassigned - - - (194,879) (194,879) Total fund balances (deficits) 383,682 197,648 801,046 (194,879) 1,187,497 Total liabilities and fund balances $ 395,796 $ 199,399 $ 801,705 $ - $ 1,396,900 -60- CITY OF ARDEN HILLS Revenues Property taxes General property taxes Intergovernmental Earnings on investments Other Total revenues Expenditures Capital outlay General government Public safety Public works Parks and recreation Total expenditures Revenues over (under) expenditures Other financing sources Sale of capital assets Transfers in Total other financing sources Net changes in fund balances Fund balances (deficits) - beginning Fund balances (deficits) - ending Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2023 Equipment, Public Safety Building, and Capital Replacement Parks Equipment $ 50,000 $ - $ 220,000 $ - - 433,096 7,402 10,420 23,377 - 5,000 28,828 57,402 15,420 705,301 47,249 - - - - 168,558 128,403 55,707 35,811 231,359 35,811 168,558 (173,957) (20,391) 536,743 Total Nonmajor Capital TCAAP Project Funds $ 270,000 433,096 41,199 33,828 778,123 - 47,249 - 168,558 - 128,403 _ 91,518 435,728 342,395 11,725 - - - 11,725 300,000 - - - 300,000 311,725 - - - 311,725 137,768 (20,391) 536,743 - 654,120 245,914 218,039 264,303 (194,879) 533,377 $ 383,682 $ 197,648 $ 801,046 $ (194,879) $ 1,187,497 -61- 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, 2023 Revenues Earnings on investments Franchise taxes Total revenues Expenditures Current General government Personal services Other services and charges Total expenditures Net change in fund balances Fund balances — beginning Fund balances — ending Variance With Original Budget Final Budget Actual Amounts Final Budget $ — $ — $ 585 $ 585 94,500 94,500 92,096 (2,404) 94,500 94,500 92,681 (1,819) 51,220 57,910 56,712 1,198 84,850 84,850 91,763 (6,913) 136,070 142,760 148,475 (5,715) $ (41,570) $ (48,260) (55,794) $ (7,534) 56,635 $ 841 -62- CITY OF ARDEN HILLS Special Revenue Fund — EDA Operating Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year Ended December 31, 2023 Revenues Property taxes General property taxes Earnings on investments Other Total revenues Expenditures Economic development Current Personal services Materials and supplies Other services and charges Total expenditures Net change in fund balances Fund balance — beginning Fund balance — ending Variance With Original Budget Final Budget Actual Amounts Final Budget $ 100,000 $ 100,000 $ 100,000 $ — 33,945 33,945 323 323 100,000 100,000 134,268 34,268 59,330 59,330 57,230 2,100 480 (480) 28,220 28,220 20,827 7,393 87,550 87,550 78,537 9,013 $ 12,450 $ 12,450 55,731 $ 43,281 662,514 $ 718,245 -63- 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, 2023 Revenues Earnings on investments Expenditures Current Economic development Other services and charges Net change in fund balances Fund balances — beginning Fund balances — ending Variance With Original Budget Final Budget Actual Amounts Final Budget 39,693 $ 39,693 1,900 1,900 1,084 816 $ (1,900) $ (1,900) 38,609 $ 40,509 782,541 $ 821,150 -64- 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, 2023 Revenues Property taxes Tax increments Earnings on investments Total revenues Expenditures Current Economic development Other services and charges Net change in fund balances Fund balances — beginning Fund balances — ending Variance With Original Budget Final Budget Actual Amounts Final Budget $ 36,365 $ 36,365 _ 31,282 31,282 67,647 67,647 1,900 1,900 1,083 $ (1,900) $ (1,900) 66,564 583,991 $ 650,555 817 $ 68,464 -65- CITY OF ARDEN HILLS Special Revenue Fund — EDA TIF District No. 5 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year Ended December 31, 2023 Revenues Expenditures Current Economic development Other services and charges Net change in fund balances Fund balances (deficits) — beginning Fund balances (deficits) — ending Variance With Original Budget Final Budget Actual Amounts Final Budget 1,900 1,900 1,084 $ (1,900) $ (1,900) (1,084) $ (23,617) $ (24,701) 816 -66- 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. Assets Current assets Cash and investments Accrued interest receivable Prepaid items Total assets Liabilities Current liabilities Accounts payable Due to other governmental units Total liabilities Net position Unrestricted CITY OF ARDEN HILLS Combining Statement of Net Position Internal Service Funds as of December 31, 2023 Total Risk Central Internal Management Engineering Garage Technology Service Funds $ 183,223 $ 984 $ 13,580 $ 870 — - - 520 573 184,093 1,504 14,153 751 $ 198,538 — 870 1,093 751 200,501 985 2,696 — 3,681 10,883 751 11,634 — 985 13,579 751 15,315 $ 184,093 $ 519 $ 574 $ — $ 185,186 -67- CITY OF ARDEN HILLS Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds Year Ended December 31, 2023 Total Risk Central Internal Management Engineering Garage Technology Service Funds Operating revenues Charges for services $ 186,498 $ 4,447 $ 188,884 $ 181,584 $ 561,413 Miscellaneous 2,433 - - - 2,433 Total operating revenues 188,931 4,447 188,884 181,584 563,846 Operating expenses Supplies and maintenance 117,838 5 117,843 Other services and charges 2,395 1,399 69,611 720 74,125 Purchased services 187,462 2,529 861 180,859 371,711 Total operating expenses 189,857 3,928 188,310 181,584 563,679 Operating income (loss) (926) 519 574 - 167 Nonoperating revenues Earnings on investments 6,840 - - - 6,840 Change in net position 5,914 519 574 - 7,007 Net position - beginning 178,179 - - - 178,179 Net position - ending $ 184,093 $ 519 $ 574 $ - $ 185,186 -68- CITY OF ARDEN HILLS Combining Statement of Cash Flows Internal Service Funds Year Ended December 31, 2023 Cash flows from operating activities Receipts from customers and users Payments to suppliers Net cash flows from operating activities Cash flows from noncapital financing activities Cash received from other funds Cash paid to other funds Net cash flows from noncapital financing activities Cash flows from investing activities Earnings on investments Net change in cash and cash equivalents Cash and cash equivalents — beginning Cash and cash equivalents — ending Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Decrease (increase) in prepaid items Increase (decrease)in accounts payable Increase (decrease)in due to other governments Total adjustments Net cash flows from operating activities Total Risk Central Internal Management Engineering Garage Technology Service Funds $ 188,931 $ 4,447 $ 188,884 $ 181,584 $ 563,846 (189,857) (3,313) (194,078) (181,654) (568,902) (926) 1,134 (5,194) (70) (5,056) 150 — — — 150 — (150) — — (150) 150 (150) — — — 6,705 — — — 6,705 5,929 984 (5,194) (70) 1,649 177,294 — 18,774 821 196,889 $ 183,223 $ 984 $ 13,580 $ 751 $ 198,538 $ (926) $ 519 $ 574 $ — $ 167 (35) (295) — (330) 650 (1,186) — (536) (4,287) (70) (4,357) — 615 (5,768) (70) (5,223) $ (926) $ 1,134 $ (5,194) $ (70) $ (5,056) -69- STATISTICAL SECTION (UNAUDITED) TAB STATISTICAL SECTION (UNAUDITED) This part of the City's Annual Comprehensive Financial Report (ACFR) 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 ACFR 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 ACFR for the relevant year. CITY OF ARDEN HILLS Governmental activities Investment in capital assets Restricted Unrestricted Total governmental activities net position Business -type activities Investment in capital assets Unrestricted Total business -type activities net position Primary government Investment in capital assets Restricted Unrestricted Total primary government net position Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2014 2015 2016 2017 $ 18,837,904 $ 24,909,453 $ 25,178,721 $ 22,750,377 917,300 675,052 786,678 898,739 11,472,102 8,765,793 8,249,560 10,678,219 $ 31,227,306 $ 34,350,298 $ 34,214,959 $ 34,327,335 $ 14,464,713 $ 16,167,536 $ 16,306,381 $ 16,292,000 1,793,112 238,381 1,116,957 1,298,744 $ 16,257,825 $ 16,405,917 $ 17,423,338 $ 17,590,744 $ 33,302,617 $ 41,076,989 $ 41,485,102 $ 39,042,377 917,300 675,052 786,678 898,739 13,265,214 9,004,174 9,366,517 11,976,963 $ 47,485,131 $ 50,756,215 $ 51,638,297 $ 51,918,079 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, which decreased unrestricted net position. Prior year information has not been restated. -70- 2018 2019 2020 2021 2022 2023 $ 26,972,898 $ 26,988,912 $ 26,418,066 $ 27,474,959 $ 28,318,503 $ 28,247,394 1,010,521 1,096,698 1,137,740 1,220,301 1,641,206 2,103,290 8,736,913 9,070,332 10,534,206 10,799,339 10,024,011 10,499,248 $ 36,720,332 $ 37,155,942 $ 38,090,012 $ 39,494,599 $ 39,983,720 $ 40,849,932 $ 17,295,916 $ 17,452,137 $ 17,248,962 $ 18,373,335 $ 18,960,842 $ 18,887,277 1,329,268 2,025,812 3,000,493 3,921,634 4,679,804 6,079,346 $ 18,625,184 $ 19,477,949 $ 20,249,455 $ 22,294,969 $ 23,640,646 $ 24,966,623 $ 44,268,814 $ 44,441,049 $ 43,667,028 $ 45,848,294 $ 47,279,345 $ 47,134,671 1,010,521 1,096,698 1,137,740 1,220,301 1,641,206 2,103,290 10,066,181 11,096,144 13,534,699 14,720,973 14,703,815 16,578,594 $ 55,345,516 $ 56,633,891 $ 58,339,467 $ 61,789,568 $ 63,624,366 $ 65,816,555 -71- CITY OF ARDEN HILLS Expenses Governmental activities General government Public safety Public works Parks and recreation Economic development Interest on long-term debt Total governmental activities Business -type activities Water Sewer Surface water management Recycling Total business -type activities Total primary government Program revenues Governmental activities Charges for services General government Public safety Public works Parks and recreation Operating grants and contributions Capital grants and contributions Total governmental activities Business -type activities Charges for services Water Sewer Surface water management Recycling Operating grants and contributions Capital grants and contributions Total business -type activities Total primary government Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2014 2015 2016 2017 $ 1,294,830 $ 1,281,557 $ 1,384,908 $ 1,322,106 1,887,877 1,978,210 2,047,961 2,158,835 852,109 194,667 800,157 3,512,218 711,174 711,181 751,910 759,737 522,193 733,528 361,029 276,841 11,004 817 5,279,187 4,899,960 5,345,965 8,029,737 1,893,217 1,803,405 1,833,468 2,159,874 1,506,927 1,587,808 1,513,219 1,780,260 432,788 489,377 468,965 481,026 150,417 239,727 141,190 147,919 3,983,349 4,120,317 3,956,842 4,569,079 $ 9,262,536 $ 9,020,277 $ 9,302,807 $ 12,598,816 $ 275,735 366,452 4,973 116,951 300,536 2,302,439 3,367,086 2,132,191 1,857,272 762,884 130,369 19,611 4,902,327 $ 271,991 $ 299,692 $ 314,166 628,573 735,730 915,632 5,205 4,535 7,029 119,338 134,579 123,550 389,219 308,900 2,031,474 3,080,749 462,105 448,945 4,495,075 1,945,541 3,840,796 2,099,242 2,165,773 2,127,452 1,855,802 1,989,066 1,796,144 782,501 812,044 834,973 129,030 134,739 151,272 124,228 26,323 24,655 - 59,248 - 4,990,803 5,187,193 4,934,496 $ 8,269,413 $ 9,485,878 $ 7,132,734 $ 8,775,292 -72- 2018 2019 2020 2021 2022 2023 $ 1,286,845 $ 1,337,262 $ 1,460,627 $ 1,283,605 $ 1,299,419 $ 1,505,270 2,248,540 2,471,567 2,737,348 2,804,933 2,663,521 2,889,826 1,695,449 1,416,785 1,267,480 1,310,895 1,796,184 1,327,617 765,843 798,717 634,195 883,155 1,013,507 1,136,248 391,156 369,256 480,307 411,016 199,988 140,255 6,393,587 6,579,957 6,693,604 6,972,619 6,999,216 6,387,833 2,147,359 2,295,820 1,996,083 2,166,362 2,473,906 2,677,247 1,654,079 1,663,498 1,665,146 1,754,753 1,817,972 1,864,808 499,049 513,209 546,365 599,084 610,730 673,556 168,145 172,232 139,840 154,611 173,092 154,519 4,468,632 4,644,759 4,347,434 4,674,810 5,075,700 5,370,130 $ 10,856,465 $ 11,038,346 $ 10,927,391 $ 11,368,414 $ 12,048,319 $ 12,369,346 $ 214,833 $ 250,643 $ 198,708 $ 189,138 $ 241,534 $ 270,989 619,406 817,238 431,830 926,665 957,785 449,995 6,150 5,250 3,900 5,735 7,040 4,725 113,968 106,317 13,114 90,632 101,097 88,372 840,634 347,823 409,403 565,106 375,965 805,615 2,494,823 613,263 634,369 1,263,520 902,926 597,246 4,289,814 2,140,534 1,691,324 3,040,796 2,586,347 2,216,942 2,256,859 2,286,542 2,316,891 2,789,472 2,823,414 3,054,674 1,769,466 1,892,740 1,870,850 2,110,766 2,209,253 2,394,498 839,499 850,971 876,527 902,044 937,652 958,807 134,228 140,149 136,865 177,057 169,905 151,340 27,429 24,752 25,365 27,213 30,323 29,253 735,220 332,092 60,661 1,024,414 651,490 129,949 5,762,701 5,527,246 5,287,159 7,030,966 6,822,037 6,718,521 $ 10,052,515 $ 7,667,780 $ 6,978,483 $ 10,071,762 $ 9,408,384 $ 8,935,463 -73- (continued) CITY OF ARDEN HILLS Changes in Net Position Last Ten Fiscal Years (continued) (Accrual Basis of Accounting) Fiscal Year 2014 2015 2016 2017 Net (expense) revenue Governmental activities $ (1,912,101) $ (404,885) $ (3,400,424) $ (4,188,941) Business -type activities 918,978 870,486 1,230,351 365,417 Total primary government $ (993,123) $ 465,601 $ (2,170,073) $ (3,823,524) General revenues and other changes in net position Governmental activities General property taxes $ 3,182,331 $ 3,191,426 $ 3,278,287 $ 3,526,347 Tax increments 565,422 697,898 242,544 295,788 Franchise taxes 103,711 72,837 132,548 109,070 Unrestricted grants and contributions — — — — Earnings on investments (charges) 450,261 245,540 155,191 139,347 Gain on sale of capital assets — — — — Transfers 230,765 230,765 230,765 230,765 Total governmental activities 4,532,490 4,438,466 4,039,335 4,301,317 Business -type activities Earnings on investments (charges) 54,360 35,857 17,835 32,754 Transfers (230,765) (230,765) (230,765) (230,765) Total business -type activities (176,405) (194,908) (212,930) (198,011) Total primary government $ 4,356,085 $ 4,243,558 $ 3,826,405 $ 4,103,306 Change in net position Governmental activities $ 2,620,389 $ 4,033,581 $ 638,911 $ 112,376 Business -type activities 742,573 675,578 1,017,421 167,406 Total primary government $ 3,362,962 $ 4,709,159 $ 1,656,332 $ 279,782 -74- 2018 2019 2020 2021 2022 2023 $ (2,098,019) $ (4,253,053) $ (4,888,633) $ (3,652,808) $ (4,386,272) $ (4,782,274) 1,294,069 882,487 939,725 2,356,156 1,746,337 1,348,391 $ (803,950) $ (3,370,566) $ (3,948,908) $ (1,296,652) $ (2,639,935) $ (3,433,883) $ 3,578,894 $ 3,793,754 $ 4,100,177 $ 4,293,895 $ 4,404,477 $ 4,570,332 351,569 388,697 273,043 396,891 338,899 36,365 101,237 100,464 101,057 97,549 94,320 92,096 - - 745,040 - - - 159,316 322,346 348,886 (30,940) (460,213) 649,693 - - 17,500 - 197,910 - 300,000 83,402 237,000 300,000 300,000 300,000 4,491,016 4,688,663 5,822,703 5,057,395 4,875,393 5,648,486 40,371 53,680 68,781 (10,642) (100,660) 277,586 (300,000) (83,402) (237,000) (300,000) (300,000) (300,000) (259,629) (29,722) (168,219) (310,642) (400,660) (22,414) $ 4,231,387 $ 4,658,941 $ 5,654,484 $ 4,746,753 $ 4,474,733 $ 5,626,072 $ 2,392,997 $ 435,610 $ 934,070 $ 1,404,587 $ 489,121 $ 866,212 1,034,440 852,765 771,506 2,045,514 1,345,677 1,325,977 $ 3,427,437 $ 1,288,375 $ 1,705,576 $ 3,450,101 $ 1,834,798 $ 2,192,189 -75- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Governmental Activities Tax Revenues by Source Last Ten Fiscal Years (Accrual Basis of Accounting) General Property Tax Franchise Fiscal Year Taxes Increments Taxes Total 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 2018 3,578,894 351,569 101,237 4,031,700 2019 3,793,754 388,697 100,464 4,282,915 2020 4,100,177 273,043 101,057 4,474,277 2021 4,293,895 396,891 97,549 4,788,335 2022 4,404,477 338,899 94,320 4,837,696 2023 4,570,332 36,365 92,096 4,698,793 -76- CITY OF ARDEN HILLS Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 2014 2015 2016 2017 General Fund Nonspendable $ 21,059 $ 23,983 $ 26,271 $ 288,519 Assigned 139,721 251,497 257,771 285,548 Unassigned 2,185,162 2,806,930 2,660,771 3,065,250 Total General Fund $ 2,345,942 $ 3,082,410 $ 2,944,813 $ 3,639,317 All other governmental funds Nonspendable $ 395 $ 845 $ 214 $ 664 Restricted 917,300 675,052 786,678 898,739 Committed 471,161 449,898 450,433 471,996 Assigned 7,346,178 3,902,898 3,872,938 6,138,393 Unassigned (150,893) (216,521) (217,607) (439,147) Total all other governmental funds $ 8,584,141 $ 4,812,172 $ 4,892,656 $ 7,070,645 Total all governmental funds $10,930,083 $ 7,894,582 $ 7,837,469 $10,709,962 -77- 2018 2019 2020 2021 2022 2023 $ 25,482 $ 22,438 $ 28,782 $ 31,152 $ 34,508 $ 39,554 262,805 205,962 196,467 239,096 259,015 287,553 3,052,082 2,987,183 3,155,257 2,899,564 3,072,714 2,878,628 $ 3,340,369 $ 3,215,583 $ 3,380,506 $ 3,169,812 $ 3,366,237 $ 3,205,735 $ 214 $ 214 $ 3,680 $ 3,878 $ 4,071 $ 4,293 1,010,521 1,096,484 1,137,740 1,220,287 1,641,192 2,103,255 508,241 580,243 619,013 654,042 658,457 713,987 2,873,879 4,057,047 5,762,592 5,990,247 5,212,244 6,356,837 (189,404) (227,892) (230,101) (223,538) (218,496) (219,580) $ 4,203,451 $ 5,506,096 $ 7,292,924 $ 7,644,916 $ 7,297,468 $ 8,958,792 $ 7,543,820 $ 8,721,679 $10,673,430 $10,814,728 $10,663,705 $12,164,527 -78- CITY OF ARDEN HILLS Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year 2014 2015 2016 2017 Revenues Property taxes General property taxes $ 3,210,025 $ 3,203,004 $ 3,260,537 $ 3,541,705 Tax increments 565,422 697,898 242,544 295,788 Special assessments 304,315 908,964 373,415 308,990 Licenses and permits 327,727 518,846 598,686 729,197 Intergovernmental 1,408,240 1,396,269 396,275 2,124,414 Charges for services 400,224 496,908 577,041 590,141 Fines and forfeits 29,569 32,792 31,868 29,989 Earnings on investments (charges) 433,402 236,947 148,679 133,231 Franchise taxes 103,711 72,837 132,548 109,070 Antenna lease rental fees 110,144 189,534 123,815 128,765 Miscellaneous/other 89,482 241,463 94,442 164,256 Total revenues 6,982,261 7,995,462 5,979,850 8,155,546 Expenditures Current General government 1,155,120 1,143,037 1,194,579 1,189,500 Public safety 1,826,098 1,920,280 1,981,506 2,058,037 Public works 580,872 336,398 479,814 443,633 Parks and recreation 648,214 573,587 621,832 618,614 Economic development 286,991 249,484 229,688 264,905 Capital outlay General government 5,559 - - - Public safety 66,079 52,936 47,880 100,215 Public works 1,833,535 6,198,264 786,873 734,411 Parks and recreation 18,883 337,808 Economic development 231,025 502,842 151,306 7,520 Debt service Principal 270,000 280,000 Interest and paying agent fees 14,773 4,900 Total expenditures 6,937,149 11,261,728 5,493,478 5,754,643 Revenues over (under) expenditures 45,112 (3,266,266) 486,372 2,400,903 Other financing sources (uses) Sale of capital assets - - - - Transfers in 230,765 230,765 230,765 471,590 Total other financing sources (uses) 230,765 230,765 230,765 471,590 Net change in fund balances $ 275,877 $ (3,035,501) $ 717,137 $ 2,872,493 Debt service as a percentage of noncapital expenditures 5.73% 6.20% - % - % ME 2018 2019 2020 2021 2022 2023 $ 3,578,628 $ 3,795,624 $ 4,099,819 $ 4,289,994 $ 4,405,691 $ 4,583,077 351,569 388,697 273,043 396,891 338,899 36,365 735,369 828,487 329,781 660,411 432,885 358,438 526,444 714,530 431,628 752,532 830,866 471,742 1,003,685 603,966 1,231,252 505,585 542,973 1,096,916 427,905 440,616 215,918 459,638 476,574 342,339 37,080 34,512 13,581 21,500 22,662 24,681 154,369 310,607 338,444 (29,384) (454,163) 642,853 101,237 100,464 101,057 97,549 94,320 92,096 57,067 134,505 140,707 146,101 139,304 143,305 249,322 157,122 432,118 474,889 239,414 215,885 7,222,675 7,509,130 7,607,348 7,775,706 7,069,425 8,007,697 1,164,657 1,195,335 1,201,143 1,137,188 1,204,619 1,384,179 2,088,345 2,399,296 2,435,773 2,708,137 2,546,051 2,704,012 579,535 632,531 675,739 618,236 914,148 682,510 653,977 679,589 547,787 626,629 665,776 721,291 324,548 300,052 415,839 349,341 138,251 81,788 13,770 115,924 107,865 290,193 210,148 47,249 233,301 69,666 299,107 111,065 98,396 168,558 2,916,604 713,156 204,169 1,993,539 1,708,553 418,226 2,783,238 549,812 22,675 133,150 273,197 610,787 - 3,300 - - - - (35535,300) 850,469 15697,251 (191,772) (689,714) 1,1899097 69,158 27,390 17,500 33,070 238,691 11,725 300,000 300,000 237,000 3005000 300,000 3009000 369,158 327,390 254,500 333,070 538,691 311,725 $ (3,166,142) $ 1,177,859 $ 1,951,751 $ 141,298 $ (151,023) $ 1,500,822 IS -BE THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS General Governmental Tax Revenues by Source Last Ten Fiscal Years (Modified Accrual Basis of Accounting) General Property Tax Franchise Fiscal Year Taxes Increments Taxes Total 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 2018 3,578,628 351,569 101,237 4,031,434 2019 3,795,624 388,697 100,464 4,284,785 2020 4,099,819 273,043 101,057 4,473,919 2021 4,289,994 396,891 97,549 4,784,434 2022 4,405,691 338,899 94,320 4,838,910 2023 4,583,077 36,365 92,096 4,711,538 -81- CITY OF ARDEN HILLS Tax Capacity Value and Estimated Market Value of Taxable Property Last Ten Fiscal Years Fiscal Year Ended Real Personal Total December 31, Property Property Tax Capacity 2014 $ 13,413,316 $ 216,679 $ 13,629,995 2015 14,162,432 224,125 14,386,557 2016 14,364,828 236,271 14,601,099 2017 14,671,678 262,904 14,934,582 2018 15,751,958 276,244 16,028,202 2019 16,457,522 256,847 16,714,369 2020 17,592,301 268,599 17,860,900 2021 18,379,048 290,865 18,669,913 2022 18,571,778 126,061 18,697,839 2023 20,983,351 132,519 21,115,870 Source: Ramsey County Assessor Less Tax Less Fiscal Increment Disparity District Contribution $ 510,906 $ 2,375,745 684,465 2,303,582 207,526 2,280,682 256,243 2,365,021 308,152 2,141,470 345,318 2,174,854 273,444 2,627,733 362,116 2,626,688 367,689 2,932,378 — 2,778,653 -82- Adjusted Estimated ATC as a Tax Capacity Total Market Percentage (ATC) Value Direct Tax Rate Value (EMV) of EMV $ 10,743,344 27.950 % $ 1,055,153,800 1.02 % 11,398,510 27.294 1,122,428,000 1.02 12,112,891 26.539 1,144,221,600 1.06 12,313,318 27.211 1,173,397,600 1.05 13,578,580 25.532 1,260,228,800 1.08 14,194,197 25.555 1,313,244,900 1.08 14,959,723 25.414 1,406,207,500 1.06 15,681,109 25.089 1,460,289,500 1.07 15,397,772 26.543 1,463,478,400 1.05 18,337,217 23.632 1,655,788,100 1.11 -83- CITY OF ARDEN HILLS Property Tax Rates Direct and Overlapping (1) Governments Last Ten Fiscal Years Direct Rate Overlapping Rates City Special Operating Ramsey School Taxing Fiscal Year Rate County District Districts Total 2014 27.950 % 63.735 % 29.734 % 9.825 % 131.244 % 2015 27.294 58.922 27.378 9.179 122.773 2016 26.539 58.885 26.245 9.052 120.721 2017 27.211 55.850 25.305 8.558 116.924 2018 25.532 53.962 28.464 8.249 116.207 2019 25.555 52.879 26.330 8.265 113.029 2020 25.414 52.302 24.964 8.249 110.929 2021 25.089 47.760 23.863 7.822 104.534 2022 26.543 48.067 23.420 9.971 108.001 2023 23.632 44.901 25.533 8.740 102.806 (1) 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). Source: Ramsey County Assessor -84- CITY OF ARDEN HILLS Principal Property Taxpayers Current Year and Nine Years Ago 2023 Taxable Taxpayer Capacity Value Rank Cardiac Pacemakers, Inc. $ 1,112,470 1 Land O'Lakes,Inc. 753,804 2 St. Paul Fire and Marine Insurance Company 620,204 3 Space Center Arden Hills, LLC 565,904 4 Presbyterian Homes, Inc. 501,376 5 Caliber Lodging, Inc. 299,038 6 NSP 266,904 7 PNL Invest, LLC 258,370 8 Sup I Shannon Square, LLC 221,508 9 Northpark CC LLC 217,882 10 IRET Properties, LP CSM Corporation Pharmacia Deltec, Inc. RAM Development, LLC Total $ 4,817,460 Total capacity value $ 18,337,217 Source: Ramsey County Assessor 2014 Percentage Percentage of Total City of Total City Capacity Taxable Capacity Value Capacity Value Rank Value 6.07 % $ 1,599,250 1 14.89 % 4.11 360,146 2 3.35 3.38 350,784 3 3.27 3.09 286,350 5 2.67 2.73 200,000 9 1.86 1.63 1.46 313,103 4 2.91 1.41 1.21 1.19 — 280,030 6 2.61 — 251,496 7 2.34 — 203,214 8 1.89 — 162,654 10 1.51 26.27 % $ 4,007,027 37.30 % $ 10,743,344 -85- Taxes Fiscal Year Levied Ended for the December 31, Fiscal Year CITY OF ARDEN HILLS Property Tax Levies and Collections Last Ten Fiscal Years Collected Within the Collections Fiscal Year of the Levy (Refunds) in Percent Additions/ Subsequent Amount of Levy (Abatements) Years 2014 $ 3,257,456 $ 3,219,641 98.84 % $ (20,640) $ 2015 3,359,775 3,295,723 98.09 (75,019) 2016 3,478,775 3,408,642 97.98 (77,980) 2017 3,641,290 3,562,166 97.83 (66,924) 2018 3,786,942 3,710,786 97.99 (58,021) 2019 3,938,420 3,871,967 98.31 (86,658) 2020 4,135,340 4,116,483 99.54 (41,410) 2021 4,280,080 4,218,186 98.55 (49,422) 2022 4,472,680 4,454,078 99.58 (5,070) 2023 4,718,680 4,616,384 97.83 (87,994) Source: Ramsey County Assessor Total Collections to Date Amount 17,175 $ 3,257,456 (10,967) 3,359,775 (7,847) 3,478,775 12,200 3,641,290 18,036 3,786,843 (20,205) 3,938,420 (22,553) 4,135,340 12,472 4,280,080 13,532 4,472,680 — 4,704,378 Percentage of Levy 100.00 % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.70 -86- CITY OF ARDEN HILLS Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Business -Type Activities General Total Percentage Obligation Revenue Primary of Personal Per Fiscal Year TIF Bonds Bonds Premium Total Government Income (1) Capita (1) 2014 $ 280,000 $ — $ — $ — $ 280,000 0.08 % $ 29 2015 — — — — — — — 2016 — — — — — — — 2017 — — — — — — — 2018 — 2,415,000 156,952 2,571,952 2,571,952 0.71 260 2019 — 2,415,000 141,394 2,556,394 2,556,394 0.69 255 2020 — 2,215,000 125,838 2,340,838 2,340,838 0.62 236 2021 — 2,005,000 110,281 2,115,281 2,115,281 0.53 214 2022 — 1,785,000 94,724 1,879,724 1,879,724 0.42 194 2023 — 1,560,000 79,168 1,639,168 1,639,168 0.36 169 (1) See the Schedule of Demographic and Economic Statistics for personal income and population data. Note: Details regarding the City's outstanding debt can be found in the notes to basic financial statements. -87- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Direct and Overlapping Governmental Activities Debt as of December 31, 2023 Governmental Unit Debt repaid with property taxes Ramsey County County library Independent School District No. 621 Independent School District No. 623 Metropolitan Council Total overlapping debt City of Arden Hills Total direct and overlapping debt Net Debt Outstanding Estimated Percentage Applicable (1) Estimated Share of Overlapping Debt $ 124,547,787 2.43 % $ 3,026,102 18,110,027 4.79 868,035 168,431,292 13.02 21,937,180 148,813,796 0.74 1,100,970 1,581,725,568 0.34 5,324,122 32,256,409 — 100.00 — $ 32,256,409 (1) 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. Note: 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. Source: Assessed value data used to estimate applicable percentages provided by the Ramsey County Assessor. Debt outstanding data provided by the county. -88- Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit CITY OF ARDEN HILLS Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2014 2015 2016 2017 $ 31,654,614 $ 33,672,840 $ 34,326,648 $ 35,201,928 $ 31,654,614 $ 33,672,840 $ 34,326,648 $ 35,201,928 Note: 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. -89- 2018 2019 2020 2021 2022 2023 $ 37,806,864 $ 39,397,347 $ 42,186,225 $ 43,808,685 $ 43,904,352 49,673,643 $ 37,806,864 $ 39,397,347 $ 42,186,225 $ 43,808,685 $ 43,904,352 $ 49,673,643 Legal Debt Margin Calculation for Fiscal Year 2023 Total estimated market value $1,655,788,100 Debt limit (3% of market value) 49,673,643 Debt applicable to limit General obligation bonds — Less amount set aside for repayment of general obligation debt — Total net debt applicable to the limit — Legal debt margin $ 49,673,643 -90- CITY OF ARDEN HILLS Pledged Revenue Coverage Last Six Fiscal Years Operating Less Operating Net Available Debt Service Fiscal Year Revenues Expenses Revenue Principal Interest Coverage 2018 $ 4,026,325 $ 3,279,800 $ 746,525 $ — $ 52,333 14.3 2019 4,179,282 3,387,940 791,342 — 94,288 8.4 2020 4,187,741 3,085,624 1,102,117 200,000 86,998 3.8 2021 4,900,238 3,301,491 1,598,747 210,000 78,800 5.5 2022 5,032,667 3,678,576 1,354,091 220,000 70,200 4.7 2023 5,449,172 3,901,853 1,547,319 225,000 61,299 5.4 Note 1: Includes Water and Sewer Funds. Operating expenses do not include depreciation. Note 2: Fiscal year 2018 represents the first year the City pledged revenue for utility revenue bonds. -91- CITY OF ARDEN HILLS Demographic and Economic Statistics Last Ten Fiscal Years Per Capita Arden Hills Personal Total Personal Median School Unemployment Fiscal Year Population (1) Income (3) Income (4) Age (6) Enrollment (5) Rate (2) 2014 9,652 $ 34,481 $332,810,612 36.9 10,734 4.1 % 2015 9,847 35,222 346,831,034 36.0 11,011 3.6 2016 9,966 35,994 358,716,204 36.0 11,401 3.6 2017 9,969 37,723 376,060,587 36.3 11,556 3.3 2018 9,889 36,553 361,472,617 36.3 11,647 2.8 2019 10,008 36,989 370,185,912 36.4 11,957 3.0 2020 9,939 37,932 377,006,148 36.2 12,061 7.0 2021 9,897 40,539 401,214,483 36.2 11,806 4.2 2022 9,682 46,623 451,403,886 36.2 11,747 2.6 2023 9,706 46,623 452,532,396 36.1 11,792 2.7 Sources: (1) Population data is obtained from the Metropolitan Council website. Fiscal year 2023 is estimated by city staff. (2) Unemployment rate information is from DEED for Ramsey County. (3) Per capita personal income prior to 2022 is obtained from the Metropolitan Council website. Per capita personal income for 2022 and 2023 is the 2022 data obtained from www.census.gov. (4) Personal income is calculated based on the population and per capita personal income. (5) Enrollment numbers are based off of Independent School District No. 621, Mounds View from the Minnesota Department of Education website. (6) Median age is from www.city-data.com website. -92- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Principal Employers Current Year and Nine Years Ago 2023 2014(1) Employer Employees Employees Boston Scientific 3,000-3,500 2,400 Land O'Lakes, Inc. 1,250-1,750 800 University of Northwestern 1,000-1,500 — Bethel University 750-1,250 970 Presbyterian Homes of Arden Hills 450-550 493 Delkor 300-350 — IntriCon 250-300 — Venture Solutions, Inc. 175-225 — Gradient Financial 150-200 — National Recoveries 150-200 — Ulteig Engineers, Inc. 150-200 — Health Partners Arden Hills Clinic 150-200 — Smiths Medical M.D., Inc. — 525 Country and MSI Insurance — 236 Total employees in the City 9,182 (2) 14,173 (1) Information only readily available for the listed employers. (2) This is an estimate from 2022. Information for 2023 is not yet available. Note: This does not purport to be a comprehensive list and is based on available data from the City's 2018 Official Statement and updates received since then through a survey of individual employers. Some employers do not respond to inquiries for employment data. Source: City staff research; business license renewals; Metropolitan Council -93- CITY OF ARDEN HILLS Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2014 2015 2016 2017 Function Police (see Note 2) Towed vehicles 1 N/A N/A N/A Traffic accidents 144 N/A N/A N/A Driving impaired/alcohol 18 N/A N/A N/A Traffic stops 20 N/A N/A N/A Traffic investigations 40 N/A N/A N/A Total calls for service N/A 4,892.00 4,413 5,152 Fire Number of calls answered 651 804.00 930 986 Highways and streets Street resurfacing (miles) — 2.84 0.25 0.20 Potholes repaired 250 600.00 600 700 Sanitation (residential) — (see Note 3) Refuse collected (tons/day) 8.65 8.76 8.75 8.80 Recyclables collected (tons/day) 2.21 2.16 2.06 2.22 Recycling clean up days N/A N/A N/A N/A Tons collected during clean up days N/A N/A N/A N/A Parks and recreation Athletic field permits issued 22 22 22 30 Water New connections 2 7 8 8 Water main breaks 2 10 6 7 Average daily consumption (thousands of gallons) 983 857 812 853 N/A — Not Applicable Note 1: Indicators are not available for the general city functions. Note 2: 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. Note 3: Recyclables — numbers based off of yearly tonnage total divided into 365 days in the year. Starting in 2018, the refuse collected information is no longer being provided as it is not readily available. Instead, information on recycling clean up days is being provided. Note 4: Fire information provided by Lake Johanna Fire Department, which is contracted out by the City. Source: Various city departments -94- 2018 2019 2020 2021 2022 2023 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 5,331 5,253 3,924 4,232 4,102 4,468 1,039 1,138 1,044 1,178 1,077 1,255 1.00 0.30 2.32 4.42 7.10 0.65 800 750 1,000 700 600 350 N/A N/A N/A N/A N/A N/A 2.17 2.20 2.19 2.71 1.85 1.76 2 2 - 1 1 1 73.7 44.8 - 7.3 7.4 4.6 25 20 2 8 6 5 8 2 3 7 1 2 8 4 2 3 6 9 869 841 855 914 981 1,051 -95- CITY OF ARDEN HILLS Function General government Public safety Public works Parks and recreation Water Sewer Recycling Surface water management Total Full -Time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year W)1A Mi5 7() I1f ?017 6.45 6.37 4.56 4.10 2.60 2.70 2.47 2.19 4.20 4.22 3.47 2.70 6.70 6.74 6.09 5.58 3.75 3.69 3.46 3.42 4.60 4.43 4.24 4.21 0.20 0.18 0.16 0.15 2.65 2.64 2.64 2.43 31.15 30.97 27.09 24.78 Note: 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. Source: Finance and Administration -96- IM R N)19 Mm 1 ?fM? ?11?,I 4.61 5.10 5.61 4.46 4.82 5.43 2.39 2.34 2.66 1.85 2.63 2.52 3.08 2.86 2.64 2.54 3.03 2.78 5.96 6.13 5.14 5.30 5.11 4.77 3.24 3.39 3.54 3.37 3.66 3.45 3.99 4.11 4.20 4.04 4.48 4.12 0.23 0.32 0.29 0.27 0.27 0.24 2.30 2.35 2.53 2.31 2.48 2.69 25.80 26.60 26.61 24.14 26.48 26.00 -97- CITY OF ARDEN HILLS Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 2014 2015 2016 2017 Function Highways and streets Streets (miles) 57 57 57 57 Streetlights 250 250 250 252 Traffic signals 18 18 18 18 Parks and recreation* Parks acreage 111 ill ill ill Parks 14 14 14 14 Trails acreage 54 54 54 54 Trails (miles) 21 21 21 21 Tennis courts 6 6 5 4 Softball/baseball fields 8 8 8 7 Basketball courts 10 10 10 10 Hockey/skating rinks 6 6 6 6 Permanent restrooms 3 3 3 3 Water Water mains (miles) 43 43 43 43 Fire hydrants 537 537 537 537 Maximum daily capacity (thousands of gallons) 1,500 1,500 1,500 1,500 Sewer Sanitary sewers (miles) 52 52 52 52 Storm sewers (miles) 25 25 25 25 * Information used for the parks and recreation section was taken from the Arden Hills Parks and Trails Guide from the Parks and Recreation Department. Note: No capital asset indicators are available for the general city functions. Source: Various city departments -98- 2018 2019 2020 2021 2022 2023 57 57 57 57 57 57 252 254 254 254 254 254 18 18 18 18 19 19 111 111 111 111 111 115 14 14 14 14 14 15 54 54 54 54 55 55 22 22 22 22 23 23 4 4 4 4 4 4 7 7 7 7 7 7 10 10 10 10 10 10 6 6 6 6 6 6 3 4 4 4 4 4 44 44 44 44 44 44 537 537 537 540 540 540 1,500 2,160 2,160 2,160 2,160 2,160 52 52 52 52 52 52 25 25 25 25 25 25 THIS PAGE INTENTIONALLY LEFT BLANK Attachment D CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2023 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2023 Table of Contents 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 Independent Auditor's Report on Minnesota Legal Compliance Schedule of Findings and Responses Page 1-2 3 4 THIS PAGE INTENTIONALLY LEFT BLANK M 6KR CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA 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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 6, 2024. REPORT ON 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) as a basis for designing 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 might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify one deficiency in internal control, described in the accompanying Schedule of Findings and Responses as finding 2023-001, which we consider to be a significant deficiency. (continued) -I- Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com REPORT ON 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 financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CITY'S RESPONSE TO FINDING Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the finding identified in our audit and described in the accompanying Schedule of Findings and Responses. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 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 May 6, 2024 -2- M 6KR CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of Arden Hills, Minnesota PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA 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, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 6, 2024. MINNESOTA LEGAL COMPLIANCE In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting — bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters. 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, insofar as they relate to accounting matters. 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 May 6, 2024 -3- Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Schedule of Findings and Responses Year Ended December 31, 2023 FINANCIAL STATEMENT FINDINGS SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER FINANCIAL REPORTING 2023-001 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. Questioned Costs — Not applicable. Context — The condition applies to multiple areas as noted above. Repeat Finding — This is a current year and prior 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 should have 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 to eliminate or mitigate this internal control weakness. 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. -4- THIS PAGE INTENTIONALLY LEFT BLANK STAFF COMMENTS - 6A ,-ARZENHILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: David Swearingen, 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 DRAFT) �-`iVEN HILLS Approved: May 28, 2024 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MAY 13, 2024 5:30 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 City Council Work Session at 5:30 p.m. Present: Mayor David Grant; Councilmembers Tom Fabel, Brenda Holden, Tena Monson and Emily Rousseau Absent: None Also present: City Administrator Dave Perrault; Public Works Director/City Engineer David Swearingen; Finance Director Joua Yang; Community Development Director Jessica Jagoe; and Assistant to the City Administrator/City Clerk Julie Hanson 1. PUBLIC INQUIRIES/INFORMATIONAL None. 2. RESPONSE TO PUBLIC INQUIRIES None. 3. AGENDA ITEMS A. Compensation and Class Study Update Dr. Tessia Melvin, DDA, introduced herself to the Council and described the work completed by DDA. She provided the Council with a presentation on the ongoing compensation study. She provided the Council with project scope information along with preliminary market analysis data. She reviewed the benchmarks that were selected by the Council, along with the benchmark communities. Factors that were influencing the market were discussed and it was noted there was still a labor shortage. Councilmember Rousseau asked if the classification requirements were impacted by State legislation recently. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 2 Dr. Melvin commented FLSA was impacted, but she was not aware of any other classification requirements that were impacted. Councilmember Monson suggested she ensure that all job descriptions updated as part of this study align with new State laws. City Administrator Perrault indicated he could work with Dr. Melvin on this. Councilmember Fabel asked if the City's positions were pretty consistent compared to neighboring communities. Dr. Melvin reported this was generally the case for cities of this size with similar service levels. Councilmember Holden inquired if benefits would also be reviewed as part of this study. Dr. Melvin indicated she was only reviewing wages at this time. Councilmember Monson asked what the City's options were to address the employees who have reached the salary cap. Dr. Melvin stated this would involve amending job descriptions or adding another step to the pay scale. She explained this would make the City's pay scale more competitive in the long run. Councilmember Holden requested additional information on the number of years working for the City for the employees that were topped out on the pay scale. Dr. Melvin indicated she could provide the Council with this information. She asked that the Council consider where they want to sit in comparison to the market. Councilmember Holden questioned how much it would cost to bring the pink positions up to 100%. Dr. Melvin explained she would be looking at the job descriptions and costing for these positions. Councilmember Holden indicated Arden Hills was a small community and had a hard time competing with large cities. Councilmember Monson stated she anticipated Arden Hills would always struggle because it was a smaller City. She indicated she would like to hold and retain market plus 1. Councilmember Holden questioned how long people typically stay at a job before jumping for higher pay. Dr. Melvin commented this used to be seven years but has really changed because people are switching positions and careers more frequently. Councilmember Rousseau supported City staff being paid at market rate as well. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 3 Councilmember Fabel discussed how City employees would have to be paid well in order to be able to afford to live in the Arden Hills community. Dr. Melvin thanked the Council for their feedback. Mayor Grant thanked Dr. Melvin for her efforts on this project and stated he looked forward to reviewing this study again at a future meeting. B. Capital Funding Follow -Up Finance Director Yang stated at the August 21, 2023 worksession, the City Council discussed the use of franchise fees to help support capital projects for the City. Ehler's, the City's financial advisor, provided an analysis on electric and gas fee structures, in addition to information on other local municipalities who assess a franchise fee onto their residents and business owners. At the September 18, 2023 worksession, the City Council discussed the topic at length and decided that April 2024 would be a good time to have an Open House in order to gauge residents' opinions on capital funding mechanism including franchise fees. Finance Director Yang explained staff held a Capital Funding Update Open House on Saturday, April 20th at City Hall. Staff shared that there is an anticipated future gap in funding for the City (approximately $455,000 annually), largely due to increased costs for the Lake Johanna Fire Department Station project ($4.1M), the Old Hwy 10 Trail/Lake Valentine to Highway 96 and Lake Johanna trail projects ($3.6M), and a recently revised equipment needs schedule. Provided are two projected fund balance charts, one that includes the two trail projects and one that excludes them, as the City has not yet secured outside funding sources for the two trail projects. With the exclusion of the two trail projects, Staff anticipates the City will have the largest needs in the Equipment, Building, & Replacement Fund and the Public Safety Fund. If the two trail projects are included, the City would have an additional need in the PIR Fund. Finance Director Yang reviewed a one -page recap of the information provided at the Open House, which was shared on the City's website, along with a survey that was released, thereafter, for City residents and businesses to provide additional input through Monday, May 6th at Sam. There were 73 residential survey responses, with approximately 54% choosing a franchise fee option (22% - electric only; 32% - gas and electric), approximately 30% choosing a property tax levy option, and approximately 17% choosing the combination of property tax levy and franchise fee option. For those respondents who chose any combination of a franchise fee option, approximately 64% indicated the City should consider dedicating the fees for a specific purpose. Finance Director Yang reported some common themes included bike lanes, park and trail improvements; structures and road maintenance; storm water system maintenance and utility infrastructure; fire station. Respondents also provided their concerns and additional comments for Council consideration. Some common concerns shared is that an increase to property taxes would burden taxpayers and would remain in effect indefinitely. Additionally, some respondents shared that non -profits should be assessed a fee in lieu of taxes, which would mean assessing a levy increase on residents and imposing a franchise fee on nonresidential and non-profit organizations. Finance Director Yang stated in July, Council will review a proposed Capital Improvement Plan (CIP). Council may want to direct Staff on how it wants to see funding allocated for the proposal, or Council may want to see the updated draft plan and then decide how to allocate funding. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 4 Council may also want to discuss what, if any, additional public engagement is needed. A separate public hearing for franchise fees is not required, the City can choose to approve ordinances and a franchise agreement with Xcel Energy. If Council decides to move forward with a franchise fee, Staff recommends having it in place no later than October 1 for implementation in 2025. If Council decides to move forward with a levy increase, it would need to be done in - conjunction with the preliminary 2025 levy at the end of September. It was noted staff will need direction in July on how to proceed forward. Mayor Grant stated one of the comments from the public was that they did not want the franchise fee to go on indefinitely. He explained franchise fees run on a contract and a Council in the future would have to vote to stop or extend the franchise fees. Councilmember Rousseau indicated she appreciated the thoughtful comments from the public. She stated the public may not have understood the fees collected would be used for a new fire station. She explained she was in favor of a franchise fee, solely for the fire department. Councilmember Fabel questioned what percentage of Arden Hills was exempt from paying property taxes. Finance Director Yang stated 31 % of the property in Arden Hills was exempt from paying property taxes. Councilmember Holden supported the franchise fee moving forward solely for the fire station and recommended a sunset date be included for this fee. Mayor Grant agreed, noting the fire station was the pressing need for the City. Councilmember Rousseau recommended that if the franchise fee moves forward that the purpose of the fee be clearly defined for the public and that the franchise fee be discussed at future Truth in Taxation meetings. Councilmember Fabel questioned if the City understood the income level of the people who participated in the survey. Finance Director Yang explained the City did not have this information. Councilmember Monson commented the outcome of a franchise fee was the right choice for the City. She indicated the cost of a bond was just shy of $600,000 and to her this was harder to support. She explained she was struggling with the methodology of a franchise fee given that it would be a flat fee passed along to all utility users. She stated a franchise fee may not be perfect, but it would get the desired outcome for the City for the new fire station. She indicated she would be willing to work with Xcel on a marketing partnership in order to reach out to the City's manufactured homes. Mayor Grant reported he spoke with Xcel also regarding the PIE (Partners in Energy) program. He understood the PIE program offered additional insulation for manufactured homes that qualify. He supported the City further investigating this program and how it may benefit Arden Hills' residents. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 5 Councilmember Holden indicated the Council may be over generalizing, noting there were seniors in the community that were living on fixed incomes. Mayor Grant commented that a recent study he reviewed found that 65% of Americans were now living paycheck to paycheck. Councilmember Rousseau stated she supported Councilmember Monson speak with Xcel Energy. Mayor Grant indicated he would be willing to continue his discussions with Xcel as well. Councilmember Monson suggested she and the Mayor speak with Xcel Energy together. Councilmember Fabel stated as a matter of principle he was against the use of franchise fees. He anticipated the vast majority of residents would not understand they were paying a regressive City tax through the franchise fee. Mayor Grant explained he could support a franchise fee for the fire station expense only. He questioned how the franchise fee should be split between gas and electric. Councilmember Monson questioned if the franchise fee would be applied to residents who have both gas and electric utility bills. City Administrator Perrault stated it was his understanding the franchise fee would apply to everyone. He explained all properties had electric bills, but not all properties had a gas bill. Councilmember Holden recommended the franchise fee only be applied to electric bills. Council consensus was to direct staff to further investigate an electric -only franchise fee to cover the fire station expenses. C. Rain Garden Discussion PTRC Member Liz Johnson stated the PTRC has identified a need to focus on land management and restoration. She discussed how rain gardens work to filter runoff, get rid of pollutants, and to take the burden off the storm sewer system when operating properly. She commented on how the rain gardens in her neighborhood were not working properly and were in need of maintenance. She anticipated that this concern was widespread throughout the community. She was interested in identifying the City's rain gardens and coming up with a process for maintaining them long-term. PTRC Member Nancy Jacobson estimated there were 200 rain gardens in Arden Hills. She indicated a City-wide inventory would be needed in order to create a plan going forward and the owners would have to be identified before a budget for this project could be created. She requested support from the Council to keep this project moving forward. Mayor Grant asked what was meant by the rain gardens were not working properly. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 6 Ms. Jacobson stated some rain gardens were not draining properly, while others were being inundated with too much water. Mayor Grant questioned how long a rain garden should be full of water. Public Works Director/City Engineer Swearingen reported rain gardens were designed to fill up and be dry within 48 hours. Councilmember Holden asked if rain gardens had to have plants. Public Works Director/City Engineer Swearingen indicated rain gardens do not have to have plants to properly function. He stated plants assist with creating root systems that help to capture pollutants. Councilmember Rousseau questioned if an educational component should be included in this campaign in order to make residents aware of the location of rain gardens throughout the community. Ms. Johnson reported she would like to share the rain garden inventory with the community through the City newsletter along with information on how to improve the health of the rain gardens. Councilmember Holden stated she had a problem with identifying the property owners that have rain gardens because ultimately the rain gardens were the City's responsibility. Public Works Director/City Engineer Swearingen indicated the rain gardens were within the City's easement, but there were intended (residential and commercial) maintenance owners for the rain gardens. He stated residential property owners agreed to have the rain garden installed on their property. Councilmember Holden clarified that the agreement that was signed by the homeowners was not enforceable. Public Works Director/City Engineer Swearingen stated this was correct. Councilmember Monson asked who would be doing the rain garden inventory. Public Works Director/City Engineer Swearingen indicated he has a map that was outdated that needs to be updated and put into GIS. Councilmember Monson explained she could support the City taking an inventory of the rain gardens and deciding how to manage it. However, she did not understand how much work this would be for staff. She suggested staff look into funding that may be available for rain garden maintenance. Public Works Director/City Engineer Swearingen reported once every six years he does a full inspection of a particular portion of the City. He stated after six years he would have a full inventory. He commented he was in the middle of year two at this time. He indicated the Rice Creek Watershed District has funding available for rain garden maintenance. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 7 Mayor Grant asked what it means to have the rain gardens maintained going forward. Ms. Johnson stated this has been inconsistent and she would like the City to create a definition. She indicated the City has to consider its goal, whether to have grass or plants. Councilmember Fabel questioned when the City began creating rain gardens. Public Works Director/City Engineer Swearingen reported the rain gardens were part of the City's MS4 permit which requires cities to treat water before it enters lakes, and the City began installing rain gardens in 2004. Council consensus was to direct staff to continue mapping and identifying the rain gardens in the city. It was noted the Council would further consider how to maintain rain gardens in the future. The Council recessed the worksession meeting at 6:50 p.m. The Council reconvened the worksession meeting at 8:35 p.m. D. Strategic Planning Discussion Follow Up City Administrator Perrault stated at the last worksession, the City Council discussed its strategic goals, Council directed Staff to compile those goals based on categories for future discussion. Council should direct staff on how it wants to move further discussion along on this topic. Mayor Grant suggested the Council begin this discussion by finding commonality within the strategic goals. Councilmember Rousseau stated that she would prefer the City Council look at hiring a consultant to assist the Council with this process. Councilmember Holden indicated she could support the hiring of a consultant, but she would like to know what the focus should be first. Councilmember Monson suggested a meeting be scheduled with a consultant in a month or so and that the Council work through the list in the coming meetings. Councilmember Rousseau questioned when the Council would begin holding budget discussions. Finance Director Yang reported these discussions would begin at the end of June. Councilmember Rousseau stated it would be ideal to have the strategic goals in place prior to holding the budget discussions. Councilmember Fabel questioned what the Council was driving towards. He commented on how specifics would have to be identified or created for each goal in order to lead to Council action. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 8 Councilmember Holden stated she thought the Council would be working to identify each goal tonight. She thought this would be valuable information for the consultant to have before they are brought in. Mayor Grant questioned if staff had a consultant in mind that could be brought in to assist with a strategic planning session. City Administrator Perrault explained he could bring in the consultant that will be speaking to the fire department. He discussed how a contract should be approved with the consultant prior to bringing them in. Councilmember Monson questioned if the Council would be willing to break into groups of two in order to better define the listed goals. She stated this may be a better use of the Council's time. Councilmember Holden suggested the Council address the easy goals. She questioned what was meant by sustainability. She asked if this was all policies. She stated organized collection was pretty self-explanatory. Councilmember Monson indicated she had questions regarding the timeline for organized collection. She anticipated discussions could be held with Mounds View in 2024. Councilmember Holden stated she wanted to understand the timeline, but also who this task would be assigned to and if staff had capacity. Councilmember Rousseau suggested discussions begin around organized collection. Councilmember Holden supported the City looking into organized collection. Mayor Grant agreed, noting organized collection would address the noise, pollution and the wear and tear on the roads. He believed it made sense to pursue organized collection for a number of perspectives. He asked if the Council supported moving forward with this. Councilmember Monson indicated she would like to better understand the economics in the City. She understood that some neighborhoods were trying to negotiate their own collection services. Councilmember Fabel stated he would like to hear more from the trash collectors to see what benefit they could bring to the City for trash and recycling. Councilmember Rousseau commented she was in favor of moving forward with this discussion. City Administrator Perrault stated if the Council was interested, he had tentatively arranged a meeting with the Mounds View City for June 17. The Council directed staff to pursue a meeting for this date. Councilmember Holden requested further comment on what was meant by sustainability. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 9 Councilmember Monson stated she wanted to understand what the City has done today, what was being proposed for the future, should an energy audit be completed and deciding if a program should be pursued by the City. Councilmember Holden indicated she would like the Council to greater define what was meant by sustainability because to her this had a lot to do with water conservation. Councilmember Monson explained in her mind sustainability focuses mostly on energy and electrical use, how much electricity is the City using, or can the City improve its transportation costs by switching to EV's. Councilmember Holden asked if sustainability would be focused on just what the City can do or what the community can do as a whole. Councilmember Monson stated this topic would be twofold. She anticipated the focus at first would be what the City can do and then how the community can contribute. Councilmember Fabel indicated the public works department could pursue EV's and this would double the City's budget. Councilmember Monson commented she would like the City to do an analysis on the cost for changing vehicles over time. Councilmember Rousseau recommended water conservation be placed under the natural resources category and that sustainability focus on energy (solar or electric). Councilmember Holden stated she believed water conservation should be placed under sustainability because the City will have to begin setting policies on how much water should be used within its parks, etc. Mayor Grant suggested water conversation be placed under both categories. He asked if the water conservation goals would be for the overall community or just for the City. Councilmember Monson anticipated these goals would have to begin with the City. Councilmember Rousseau supported this being a City initiative. She noted Great River Greening would be attending a future worksession. Public Works Director/City Engineer Swearingen reported Great River Greening was planning to attend the June 24 worksession. Further discussion ensued regarding the City's natural resources. Councilmember Holden asked how much park land the City owned. Public Works Director/City Engineer Swearingen estimated the City had 110 acres in park land. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 10 Mayor Grant summarized the natural resources priorities as being tree canopy, invasive species, pollinator promotion, water quality, along with protecting plants and animals unique to Arden Hills. Councilmember Holden asked staff what else could be added to this list. Public Works Director/City Engineer Swearingen suggested he speak with the PTRC to see what else should be included on the natural resource list. Mayor Grant discussed his three main priorities for TCAAP which were to complete the master development agreement, develop/construct and grow. Councilmember Rousseau stated she would like to promote community and encourage businesses within TCAAP as well. Councilmember Holden believed the most important priority for TCAAP was getting the agreement in place. She questioned what the City's next priority should be. She was interested in learning what would happen with the stormwater pond because this was not part of the development agreement. She was also interested in further discussing a civic space. Councilmember Monson indicated having a discussion around the public space and civic space would be beneficial, but she believed the project was just not there yet. She was of the opinion this discussion would come after the horizontal infrastructure funding was determined. She suggested the second bullet point read to have City Council alignment on civic and public space. Councilmember Holden asked if staff had any recommendations for this language. City Administrator Perrault commented the skeleton of the development agreement was from 2018 and a lot of the language would be copied, pasted and updated for today. He indicated the natural resources corridor has yet to be discussed. Councilmember Holden stated perhaps the best way forward would be to have only one bullet point under TCAAP with that being to complete the development agreement. E. Twin Cities Gateway Funding Discussion Mayor Grant noted the City has $18,390 available to the City this year from the Twin Cities Gateway Visitors Bureau. Councilmember Holden stated she supported a portion of this funding be donated to Beyond the Yellow Ribbon to assist with supporting the events they host in the community. Councilmember Rousseau supported this recommendation. She suggested funding be provided to the school district as well, given the number of events they host in the community. Mayor Grant commented on the State Statute requirements on how the funding can be used. Councilmember Fabel suggested funding be set aside for the rib fest. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 11 Councilmember Holden questioned if funding could be used to assist with offsetting expenses for the robotics club. City Administrator Perrault summarized comments from the Council noting there was support to provide funding for Beyond the Yellow Ribbon, Rib Fest and the Mounds View High School. Mayor Grant suggested funding be offered to Bethel University again, along with the Red Bulls March. Councilmember Monson indicated she would like to see this list honed down to three or four. She suggested the Red Bulls be removed from the list. Councilmember Rousseau supported this recommendation. City Administrator Perrault explained he could reach out to these four organizations and ask for a proposal on how they could utilize the potential funding. The Council supported staff moving forward in this direction. F. Rice Creek Commons/TCAAP Discussion This item would be discussed at a future meeting. G. Agenda Planning City Administrator Perrault provided the below proposed agendas for upcoming meetings per the Council's adopted policy on agenda setting. Council did not have any changes to the proposed items. May 28th Worksession • TH Highway 10 and Highway 96 Landscaping (time sensitive) • Encroachment Discussion Update (not time sensitive) • Council Code of Conduct (time sensitive) • RCC/TCAAP Discussion (not time sensitive) • Agenda Planning (time sensitive) June IOth Worksession • Old Highway 10 Trail Design (not time sensitive) • Tobacco Moratorium (time sensitive) • RCC/TCAAP Discussion (not time sensitive) • Agenda Planning (time sensitive) 4. COUNCIL COMMENTS AND STAFF UPDATES None. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 13, 2024 12 ADJOURN Mayor Grant adjourned the City Council Work Session meeting at 9:47 p.m. Julie Hanson City Clerk David Grant Mayor ,-`ik�EN HILLS Approved: May 28, 2024 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MAY 13, 2024 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 Tom Fabel, Brenda Holden, Tena Monson and Emily Rousseau Absent: None Also present: City Administrator Dave Perrault; Public Works Director/City Engineer David Swearingen; Community Development Director Jessica Jagoe; Finance Director Joua Yang; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Mayor Grant requested Item 8C - Motion to Authorize the Execution of a Separation Agreement, be added to the Consent Agenda. MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the meeting agenda as amended. The motion carried (5-0). 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Perrault stated the Joint Development Authority has not met since the last Council meeting, the May meeting of the JDA was cancelled. The parties are still waiting on further information from the legislature on any potential State funding for RCC, the legislature is due to adjourn this week. The energy committee did meet since the last Council meeting, and they provided an update on their work. They have been creating a Greenhouse Gas Emission model and are working on recommendations to reduce the site's carbon emissions. Interestingly, the largest carbon emissions come from using natural gas for heating related purposes. The consultant also noted the group may want to consider certain certifications, such as, LEED for communities. Lastly, the County and City Staff and consultants will likely be meeting next week to discuss any relevant updates. ARDEN HILLS CITY COUNCIL — MAY 13, 2024 2 Councilmember Holden asked if the PFAS study had been completed on TCAAP. City Administrator Perrault stated this was not completed. It was his understanding a preliminary evaluation was completed in 2023. He indicated the PFAS study would be completed by the Army. Councilmember Holden explained in the 2015 AUAR, a traffic model was referenced. She questioned if staff had any information on this traffic model. City Administrator Perrault indicated the Met Council's comment on the 2015 AUAR was based on the generation of the traffic manual that was used. The Met Council advised that the manual from 2014/2015 was for smaller projects. He explained the recommended traffic manual for larger projects was used for the updated AUAR. Councilmember Holden reported it was her understanding the Memorandum of Understanding for the parks had not expired. She inquired how greenspace within the development would be addressed given the project was now more dense. She asked if the City would be getting a public works building or a civic area. She stated she was in favor of the City Council beginning to discuss these matters. City Administrator Perrault explained because this project was so large, it was being diced up or put into phases for negotiations. He reported at this time the focus was on the horizontal infrastructure and then the development agreement would be advanced in other areas. 3. PUBLIC INQUIRIES/INFORMATIONAL Donna Wiemann, 1406 Arden View Drive, stated in all likelihood there would be a big box retail store within the Rice Creek Commons development. She understood a Councilmember spoke with Costco and thinks very highly of this employer. She indicated a single Costco store generates one million car trips per year. She did not understand why the Ramsey County traffic study did not include a big box retailer. In addition, she understood the Council would be looking at a draft AUAR that does not include a big box retailer. She asked that the City Councilmembers who serve on the JDA to ask the County to update their traffic study to include an additional one million cars per year, and if this was not done by the County, she wanted to better understand why. Ed Dickinson, 3188 Asbury Avenue, stated he understood residents were to address the City Council respectfully. He commented on how there was absence of respectful and useful communication from some City Councilmembers and how this holds back the achievement of the City Council. He noted he watched the April 22 City Council meeting on the webcast. He indicated he was struck by the negative comments from Councilmember Holden and Mayor Grant, as well as comments that were directed at staff that were not respectful or helpful. He reported he respected Mayor Grant and Councilmember Holden's desire for due diligence on behalf of the interests of Arden Hills residents, but what will best serve the interests of the City would be a successful development of the TCAAP project. He stated this would be the most significant project the City has ever taken on. He reviewed comments of concern that were made by Councilmember Holden. He encouraged Mayor Grant to lead the Council positively and to not summarize discussions negatively. He anticipated this project, like any other large project, will present complex issues and tasks. He believed the City needed all of its Councilmembers focused ARDEN HILLS CITY COUNCIL — MAY 13, 2024 3 on those issues and tasks, not finding faults. He stated it will take more than a majority of the City Council to make this project happen, rather it will take all five members of the Arden Hills City Council. Gregg Larson, 3377 North Snelling Avenue, explained he has missed some recent Council meetings and worksessions, but was able to watch the videos last week. Like the previous speaker, he was dismayed by what he saw during these meetings. He reported that at the April 15 worksession, Councilmember Holden directed sarcastic and critical comments at the City Administrator and the Public Works Director. He noted these comments were demeaning and should have been addressed outside of the Council Chambers or in a closed meeting. He stated City Council meetings were not an appropriate venue for those types of comments. He reported at the April 22 City Council meeting, Councilmember Holden incorrectly accused City staff of preparing written comments on housing legislation. He explained had Councilmember Holden spoken to staff prior to the meeting, she would have learned no written position was communicated to legislators by staff. However, he feared Councilmember Holden preferred misleading public attacks to productive consultation. He noted these were recent examples of a long history of Councilmember Holden's interactions with others, including current and previous City Councilmembers, staff members, Ramsey County Commissioners and staff, NYFS members and staff and City contractors. He indicated he has been following City government for a long time and he has seen this happen over and over again. He was of the opinion the Mayor was incapable of presiding over a meeting that discourages such behavior. He explained Arden Hills was a statutory weak mayor/council city. He reported the Mayor has few duties, except presiding over City meetings. This meant the Mayor was to preserve order and decorum. He expressed frustration with the fact the Mayor had not ruled comments made by Councilmember Holden out of order. He stated the worst failure occurred at a January City Council meeting when Zoom commenters used extremely offensive language during the Public Inquiries portion of the meeting. Mayor Grant stated Mr. Larson has gone beyond disrespectful. Mr. Larson explained he was speaking directly to the Mayor's performance. He indicated he was reading directly from City Code. Councilmember Holden reported when people called with racist comments, it didn't happen how Mr. Larson was implying. Mr. Larson stated the Mayor failed to cut them off. Mayor Grant reported he did cut them off. Mr. Larson was of the opinion the Mayor waited too long to cut the speakers off. He explained he previously referred the Mayor to the League of Minnesota Cities Mayor's Handbook which includes useful information on meeting management, traits of successful mayors, inspirational leadership, successful team building and good relationships with Council and staff. He wants to see Mayor Grant succeed, but he has not seen any sign that the Mayor has taken the handbook's advice to heart. He encouraged the Mayor to take advantage of this resource. 4. RESPONSE TO PUBLIC INQUIRIES ARDEN HILLS CITY COUNCIL — MAY 13, 2024 4 None. 5. PUBLIC PRESENTATIONS A. Proclamation Recognizing May 12-18 as National Police Week Mayor Grant read a proclamation in full for the record declaring May 12-18, 2024 as National Police Week in the City of Arden Hills. MOTION: Mayor Grant moved and Councilmember Monson seconded a motion to approve the Proclamation recognizing May 12-18, 2024 as National Police Week. The motion carried (5-0). B. Proclamation Recognizing May 19-25 as National Public Works Week Mayor Grant read a proclamation in full for the record declaring May 19-25, 2024 as National Public Works Week in the City of Arden Hills. MOTION: Mayor Grant moved and Councilmember Monson seconded a motion to approve the Proclamation recognizing May 19-25, 2024 as National Public Works Week. The motion carried (5-0). 6. STAFF COMMENTS A. Transportation Update Public Works Director Swearingen reported there was congestion on James Avenue and Colleen Avenue, which was due to the City's water main replacement as part of the 2024 Street Improvement Project. 7. APPROVAL OF MINUTES A. April 15, 2024, Special City Council Work Session B. April 22, 2024, City Council Work Session C. April 22, 2024, Regular City Council MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the April 15, 2024, Special City Council Worksession meeting minutes as amended, the April 22, 2024, City Council Work Session meeting minutes as amended; and the April 22, 2024, Regular City Council meeting minutes as amended. The motion carried (5-0). 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion To Approve Resolution 2024-027 Accepting Donation From The Spring Lake Park Lions Club C. Motion to Authorize the Execution of a Separation Agreement ARDEN HILLS CITY COUNCIL — MAY 13, 2024 5 MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried (5_0). 9. PULLED CONSENT ITEMS None. 10. PUBLIC HEARINGS A. Special Assessment Hearing — 1570 McClung Drive — 2024 PMP Street And Utility Improvements Project Public Works Director/City Engineer Swearingen stated on February 12, 2024, the City Council adopted Resolution 2024-008 Approving the Plans and Specifications and Ordering the Advertisement for Bids for the 2024 PMP Street & Utility Improvement Project. Bids were solicited and opened on March 6, 2024. A portion of the costs for the 2024 PMP Street & Utility Improvement Project are proposed to be assessed against the benefitting properties, according to the City's Assessment Policy. In order to assess these costs, the City must follow the process outlined in State Statute 429. On March 11, 2024, after the bids were opened, the City Council adopted Resolution 2024-012 Declaring Costs to be Assessed and the Assessment Hearing was held on April 8, 2024. Public Works Director/City Engineer Swearingen reported the Assessment Roll related to Resolution 2024-012 was then amended to remove the property at 1570 McClung Drive. City staff was notified of an error with the property owner information from the Ramsey County recorder's office. Per advice from the City Attorney, the assessment process must be redone for the actual property owner. On April 8, 2024 City Council adopted Resolution 2024-023 Declaring Costs to be Assessed and Ordering the Preparation of the Proposed Assessments and Calling for a Public Hearing on the Proposed Assessments for the 2024 PMP Street & Utility Improvement Project related to 1570 McClung Dr. A public hearing prior to adopting the assessments is a requirement of State Statute 429. Public Works Director/City Engineer Swearingen explained the project is proposed to be assessed consistent with the City's Assessment Policy and past practices, which states that 50% of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by City funds. Financing for the project is consistent with City policy and past practice and is summarized below. The current assessment policy states that the typical overhead rate for a public improvement project is 37% of the construction costs. Staff believes this percentage is higher than necessary and recommends that approximately 27% of the construction costs be used as overhead when calculating the assessment rates. Staff has made this recommendation on the past PMPs since 2021 and was applied to the 2024 PMP assessments on April 8, 2024. Public Works Director/City Engineer Swearingen stated also, the Council must establish the interest rate at tonight's Council Meeting. He noted the assessment rate had been set at 4.75% at the April 8, 2024 meeting. ARDEN HILLS CITY COUNCIL — MAY 13, 2024 6 Mayor Grant opened the public hearing at 7:28 p.m. With no one coming forward to speak, Mayor Grant closed the public hearing at 7:29 p.m. 11. NEW BUSINESS A. Resolution 2024-025 Adopting Special Assessment Roll For The 2024 PMP Street And Utility Improvements Project —1570 McClung Drive Public Works Director/City Engineer Swearingen stated this item was presented under Agenda Item 10A. Staff requested the Council adopt the Assessment Roll for the 2024 PMP Street and Utility Improvement Project related to 1570 McClung Drive at the 4.75% interest rate. MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adopt Resolution #2024-025 — Adopting Assessment Roll for the 2024 PMP Street & Utility Improvement Proiect related to 1570 McClung Drive at the 4.75% interest rate. The motion carried (5-0). B. Resolution 2024-026 Declaring Costs To Be Assessed And Ordering The Preparation Of The Proposed Assessments And Calling For A Public Hearing On Proposed Assessments For 1370 Colleen Avenue — 2024 PMP Street And Utility Improvements Project Public Works Director/City Engineer Swearingen stated on February 12, 2024, the City Council adopted Resolution 2024-008 Approving the Plans and Specifications and Ordering the Advertisement for Bids for the 2024 PMP Street & Utility Improvement Project. Bids were solicited and opened on March 6, 2024. A portion of the costs for the 2024 PMP Street & Utility Improvement Project are proposed to be assessed against the benefitting properties according to the City's Assessment Policy. In order to assess these costs, the City must follow the process outlined in State Statute 429. On March 11, 2024, after the bids were opened, the City Council adopted Resolution 2024-012 Declaring Costs to be Assessed and the Assessment Hearing was held on April 8, 2024. Public Works Director/City Engineer Swearingen explained the Assessment Roll related to Resolution 2024-012 was then amended to remove the property at 1370 Colleen Avenue. City staff and Council received an objection of the proposed assessment amount from the property owner and Council gave direction to review the objection at a later meeting, which is the intention of this public hearing on May 13, 2024. The project is proposed to be assessed consistent with the City's Assessment Policy, which states that 50% of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by City funds. The assessment rate shall be computed on a per -lot unit basis, with a lot being defined as a platted single-family residential lot or equivalent, which, according to the current Arden Hills Municipal Code cannot be further subdivided for R-1 and R-2 residential use. Public Works Director/City Engineer Swearingen explained the 1370 Colleen Avenue property consists of 2 lots as platted, per the assessment policy, this property is proposed to receive 2 assessment units. Ultimately, the residential equivalent assessment rate shall be determined by the City Council. The 1370 Colleen Avenue property assessment relates to the Full -Depth Reclamation (FDR) rate. FDR consists of grinding the existing pavement, shaping the ARDEN HILLS CITY COUNCIL — MAY 13, 2024 7 generated aggregate material to raise the center crown to improve pavement drainage and repaving the roadway with 4-inches of bituminous pavement. Public Works Director/City Engineer Swearingen explained Council should discuss the assessment objection from the 1370 Colleen Avenue property owner and choose to approve the assessment amount as it is proposed, or the City Council may choose to approve a different assessment amount. Councilmember Rousseau questioned how many other properties in Arden Hills might have a similar issue as this property. Public Works Director/City Engineer Swearingen stated he did not have an exact number for the Council, but he did provide Council with information on when this occurred in the past. Councilmember Monson indicated this landowner appealed the assessment policy back in 1997 and has not been assessed since. Public Works Director/City Engineer Swearingen indicated this was the case. Councilmember Monson reported in 1997 the City assessed per street frontage. Public Works Director/City Engineer Swearingen stated he did not have the City's specific assessment policy from 1997. He noted the current policy was adopted in 2004. Councilmember Monson indicated this property was subdivided, platted and it was buildable. Public Works Director/City Engineer Swearingen stated he was of the opinion the property was buildable. He commented there was a property just to the east of this property with similar setbacks and this lot has a home on it. Councilmember Monson inquired if the full assessment amount was cut back in 1997. Public Works Director/City Engineer Swearingen reported the assessment amount was reduced by half. Councilmember Monson commented if the Council were to waive the assessment again, the property would have not paid a single assessment dollar for the second lot. Councilmember Holden asked when the property was subdivided. Public Works Director/City Engineer Swearingen explained the property is not subdivided, but rather it is a platted lot. Councilmember Holden questioned if this address was to be viewed as two properties. Community Development Director Jagoe indicated this property was originally platted with the Briarknoll plat in 1978. She stated at that time it was an individual lot of record. The property owner purchased the lots and combined them with Ramsey County. ARDEN HILLS CITY COUNCIL — MAY 13, 2024 8 Councilmember Holden stated this occurred on Katie Lane and one of the options that was provided to the homeowner was the option to combine the two lots into one. However, she understood this particular lot was buildable. Mayor Grant indicated the assessment policy in 1997 would have been per linear foot and in 2004 the current assessment policy was approved, which was per lot. He stated this meant the Council had to determine if this property was one lot or two. Councilmember Holden asked if the property owner could be charged an assessment if they chose to subdivide the lot within a set period of time. Public Works Director/City Engineer Swearingen explained in 2009 the City approved a deferred assessment for one lot for 30 years or if triggered by a subdivision. Councilmember Monson explained she was confused as to why this property would be charged two assessments when it was one parcel. She questioned if the assessment could be triggered by the sale of the second lot. Public Works Director/City Engineer Swearingen stated the policy considered how the property is platted and the second lot was buildable. Councilmember Rousseau indicated there was a property on Keithson Avenue that has the same issue, but they have not requested an appeal. Public Works Director/City Engineer Swearingen agreed this was the case, noting the property on Keithson Avenue would be assessed for both lots because they did not make an appeal. Councilmember Rousseau questioned if a 50% break should be provided to the property on Keithson Avenue. Public Works Director/City Engineer Swearingen stated he would have to speak with the City Attorney, but he believed because the City did not receive an appeal, the assessment would move forward. Councilmember Holden reported residents were given an ample amount of time to call or write to the City and make an appeal. Public Works Director/City Engineer Swearingen indicated this was the case, stating the 429 process was very strict. Mayor Grant stated he did not have a problem with a deferred assessment for the property at 1370 Colleen Avenue. He reported if the landowner were to subdivide the property in 10 years, then they would be charged an assessment, but if it remains one lot, no additional assessment would be charged. Councilmember Monson indicated she was not convinced either way on how to proceed with this matter. She understood this was only one parcel, but the lot could be subdivided and would have a second buildable lot. ARDEN HILLS CITY COUNCIL — MAY 13, 2024 9 Councilmember Holden stated the reason the Council reviewed these requests individually was because each request was unique. She explained her preference would be to defer the assessment until the property subdivided. She recommended the deferral be longer than 10 years given the fact the road would last longer than 20 years. Councilmember Rousseau commented her preference would be to defer the assessment until there was a sale or subdivision. Councilmember Monson stated at this time the City would be deferring the assessment for 20 years on the second lot, which was for $6,045 or until the property owner subdivided or sold the lot. MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to adopt Resolution 2024-026, Declaring Costs to be Assessed for the property at 1370 Colleen Avenue deferring the assessment for the second lot for 20 years or until the property is sold or subdivided with the remaining REU being charged to the property. The motion carried 4-1 (Councilmember Holden opposed). MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to adopt Resolution 2024-026, Ordering the Preparation of the Proposed Assessments and Calling for a Public Hearing on the Proposed Assessments for 1370 Colleen Avenue related to the 2024 PMP Street & Utility Improvement Proiect. The motion carried (5-0). 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS Councilmember Rousseau explained besides the speakers at this meeting, she had several residents reach out to her as well, sharing their disappointment with the actions of one Councilmember and that this behavior may be setting the City up for litigation. She asked that the Mayor maintain civility so all residents and staff can feel safe at City meetings. Councilmember Rousseau commented she feared the City has not made appropriate accommodations for Councilmember Fabel. She was concerned the City may be violating the American with Disabilities Act by not making appropriate accommodations. She understood Councilmember Fabel has spoken to the Mayor in the past regarding the challenges he has hearing at public meetings. She asked that the City Council work to address these concerns so Councilmember Fabel can actively participate in the meetings. Councilmember Rousseau thanked the Public Works Department for keeping the City running. She suggested the great efforts of the Public Works Department be highlighted in an upcoming City newsletter. Councilmember Rousseau stated the EDC met with Ling Becker from Ramsey County Workforce Solution at their last meeting. ARDEN HILLS CITY COUNCIL — MAY 13, 2024 10 Councilmember Rousseau explained the two members from the Rotary Club were interested in partnering with the PTRC. Councilmember Rousseau indicated the Valentine Hills annual carnival would be held this Friday. Councilmember Rousseau thanked the Spring Lake Park Lions Club for their donation of $15,000 which would be used for parks and recreation. She asked that the City send a formal thank you to this organization. Mayor Grant suggested staff write a formal thank you note that could be signed by the City Council at their next meeting. Councilmember Fabel discussed the franchise fee topic that was before the City Council. He was of the opinion the topic of a franchise fee was poorly misunderstood by residents. He commented on the large expenditures the City had upcoming which included a fire department, trails, and the replacement of public works equipment. He indicated the City needed to collect more revenue than would normally be coming into the City. He stated the difficulty with this was that franchise fees were collected by utility companies and residents may think this has to do with the receipt of gas or other utilities, but rather it was a tax that gets collected and passed along to the City. He indicated his problem with the concept was that it was not well understood and he was concerned with the fact this was a regressive tax that charged a flat fee to every resident. He encouraged residents to speak to City Councilmembers regarding franchise fees in order to learn more. Councilmember Holden reported she attended the PMP meeting and stated there was great attendance at this event. Councilmember Holden explained the store that is not named, will now be a data center. Councilmember Holden indicated a local business recently reached out to her and she learned this business creates the dry mix for the McDonald's hamburgers as well as products for Caribou Coffee, to name a couple. Councilmember Holden reported she received calls from residents regarding graffiti that was spraypainted on a resident's garage door. She understood the graffiti was more serious in nature and would be investigated by the Sheriff's Department. Councilmember Holden stated she was hoping to understand where the County was with Lake Johanna. She wanted to ensure residents were safe this summer and she asked that staff reach out to the County for the status. Councilmember Holden commented she received grief from her neighbors for not knowing the City had a new park. She explained only the Council liaison sees the newsletter before it is printed. She clarified for the record that the new park was actually Triangle Park and it had been renamed South View Park. Councilmember Holden reported she was able to pull garlic mustard in Hazelnut Park. ARDEN HILLS CITY COUNCIL — MAY 13, 2024 11 Councilmember Holden stated in the last several months new policies have been created and a lot of them have not been voted on, but rather they were discussed. She requested these policies be brought forward for a Council vote. Councilmember Holden questioned how Shoreview would be paying for their fire station. Councilmember Monson indicated Shoreview would be bonding for the fire station. Councilmember Holden stated during public comment there was a reference to House File 4010. She explained during the April 8 City Council meeting she asked that the Council discuss House File 4010 in order to come up with a position and at that time she was told there was a casual conversation and was not told about any documents that were created. After the April 8 meeting, she found out a document was sent to the author of the bill in March with the City's workup and analysis. She reported the Council used to receive information at the same time and stated it would have been nice to have been supplied with this information. Councilmember Holden stated the City Administrator provided the Council with a summary document from the JDA meetings in previous years. She said that document was informative, but now in order to learn more, she needs to ask questions. She noted she would continue to ask questions at the dais. Councilmember Holden stated Planning Chair Vijums was asked to step down for overstepping on the TCAAP discussion. She questioned if action should be taken against another Planning Commissioner for bringing forward his thoughts on what he wanted to see done in the community. She was of the opinion the Planning Commissioners were not to bring forward a political platform or personal agendas at their meetings. She asked how the Council was going to address this matter because it was very similar to Planning Chair Vijums actions. Councilmember Monson asked what policies the Council should be voting on. Councilmember Holden stated the communication policy has been discussed, along with the agenda policy. She indicated she wanted these policies to be made available to the public. Councilmember Monson commented these matters were discussed at a meeting and the information was available to the public. Councilmember Monson reported she supported Councilmember Fabel sitting somewhere else if this helped him to hear better and participate fully in public meetings. Councilmember Monson indicated the Ramsey County League of Local Government Climate Action Work Group was focusing on funding for winterization of manufactured homes as well as how to get a regional climate action plan. She noted she would provide the Council with updates as these items progress. Councilmember Monson explained the fire board submitted a request for $8 million to Congress for additional federal funding for the fire station. ARDEN HILLS CITY COUNCIL — MAY 13, 2024 12 Mayor Grant stated it appears the no name grocery store will have another use as a data center. He indicated he received calls from residents because the lights were on and there were cars in the parking lot. Mayor Grant thanked Finance Director Yang for her work on the franchise fees. Mayor Grant stated at the last meeting he asked about the TCAAP MOU's. He understood not all were going forward. He commented he would continue to ask questions about TCAAP because he wanted to be informed as a member of the City Council and as the Mayor of the City. He indicated he was rather surprised that some of the MOU's were not going forward. He explained he would not apologize for asking questions about TCAAP. Mayor Grant indicated Councilmember Holden wanted to bring forward some recently discussed policies for a vote. He explained the only way for policies to be put into effect was for a vote to be taken by the Council. He stated he supported Councilmember Holden's request to have policies voted on. Mayor Grant thanked Max Arvidson in the Public Works Department for the work he did on James Avenue on Friday. ADJOURN MOTION: Mayor Grant moved and Councilmember Holden seconded a motion to adjourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 8:22 p.m. Julie Hanson City Clerk David Grant Mayor EN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM• Joua Yang, Finance Director Pang Silseth, Accounting Analyst SUBJECT: Claims and Payroll Listing Budgeted Amount: Actual Amount: N/A N/A Council Should Consider Motion to approve, table or deny the following: • Claims and Payroll Listing All items need a simple majority for action unless otherwise noted. CONSENT ITEM 8A Funding Source: N/A Background Payroll is processed biweekly and accounts payable is processed weekly. Budtet Impact N/A Attachments 2024 Payroll #11 Paid Claims - 05/04/2024-05/17/2024 (Check Nos. 52609-52633 and ACH Checks) Total Payroll $123,576.14 $123,576.14 $289,242.50 Total Accounts Payable $289,242.50 Total Claims $412,818.64 CITY OF ARDEN HILLS PAYROLL # 11 CHECKS DATED: 05/24/24 Biweekly: 05/04/24 - 05/17/24 T 12,417.21 EFT CA Oasdi 6,429.09 6,429.09 EFT CA Medicare 1,503.54 1,503.54 EFT T 4, R67.72 EFT DTAL TAXES 1 25.217.561 7.932.63 th Premium 2,223.001 1,190.17 A/P Check* A/P Check* A/P Check* A/P Check* EFT al Premium 186.69 52.66 Health Care Reimb. 133.33 Dependent Care Reimb. 208.33 'AL FLEXIBLE SPENDING 1 2,751.351 1,242.83 Health Savine 1 1.172.031 0.00 ERA 5,449.061 6,287.39 EFT �MA 1,496.27 460.86 EFT Ientral Pension Fund -Union 1,536.00 A/P Check* IN State Retirement System 2,314.48 EFT DTAL RETIREMENT 10,795.81 EFT ,FLAG 22.76 ife/Addl/Dep Life 42.49 j6,7j4825 A/P Check* ife/Addl non -tax 11.50 A/P Check* TD/STD Insurance 0.00 A/P Check* ERA Life Insurance 40.00 A/P Check* JOE 49 Dues (Union) 140.00 A/P Check* Total Employee Deductions Net Payroll 9,660.28 Direct Deposit 57,798.65 Gross Payroll Tie -Out 107,652.43 Plus City Paid Benefit TOTAL PAYROLL COST 123,576.14 GrosTPayroll Less Total FSA Less Total H.SA -7 Less Voluntary Ins Net P/R Sub'ect to FICA FICA Oasdi @ 6.20% FICA Medicare @ 1.45% EFT Note: Federal and State Payroll Tax obligations are satisfied by means of utilizing the US Bank Easy Tax Deposit Service. Transfers are typically made up to two 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. Accounts Payable Checks by Date - Detail by Check Date User: pang.silseth Printed: 5/22/2024 1:17 PM r` ---Aj� EN HiiLLs Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference ACH 0320 HEALTH PARTNERS INC 05/10/2024 009597632411 June Insurance 19,493.08 009597632411 June Insurance 1,220.47 Total for this ACH Check for Vendor 0320: 20,713.55 ACH 0327 STAPLES INC 05/10/2024 6001396473 Supplies 26.79 6001396474 Supplies 26.69 6001396474 Supplies 97.54 6001413697 Supplies 26.79 Total for this ACH Check for Vendor 0327: 177.81 ACH 0381 MISSIONSQUARE RETIREMENT 05/10/2024 20240331-109- Q2 2024 Plan Fee 20240331-109-320940-A 250.00 Total for this ACH Check for Vendor 0381: 250.00 ACH 0382 MISSIONSQUARE #106944 05/10/2024 PR 24-10 PR Batch 00100.05.2024 ICMA Employer Perce PR Batch 00100.05.2024 ICN 460.86 PR 24-10 PR Batch 00100.05.2024 ICMA Employee Perce PR Batch 00100.05.2024 ICN 399.41 Total for this ACH Check for Vendor 0382: 860.27 ACH 0387 MISSIONSQUARE #302482 05/10/2024 PR 24-10 PR Batch 00100.05.2024 ICMA Employee Perce PR Batch 00100.05.2024 ICN 229.36 PR 24-10 PR Batch 00100.05.2024 ICMA Employee Dedu PR Batch 00100.05.2024 ICN 850.00 Total for this ACH Check for Vendor 0387: 1,079.36 ACH 0922 NINENORTH 05/10/2024 2024-055 Audio/Visual-April 1,352.04 2024-055 JDA Meeting -April 188.10 Total for this ACH Check for Vendor 0922: 1,540.14 ACH 10363 MINUTE MAKER SECRETARIAL 05/10/2024 M1866 4/15 & 4/22 CC Meeting Minutes 801.50 Total for this ACH Check for Vendor 10363: 801.50 ACH 10557 MATTHEW BRISSON 05/10/2024 050624 Clothing Reimbursement 30.92 Total for this ACH Check for Vendor 10557: 30.92 ACH 1125 BOLTON & MENK INC 05/10/2024 0334335 2024 PMP-April 5,271.00 0334336 Arden Manor Park -April 11,540.50 0334337 Lift Station 5-April 10,426.00 AP Checks by Date - Detail by Check Date (5/22/2024 1:17 PM) Page 1 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference 0335150 Arden Oaks & Freeway Parks -April 2,294.00 Total for this ACH Check for Vendor 1125: 29,531.50 ACH 4889 COMMUNITY FOOTWORKS 05/10/2024 05012024 May Foot Care Clinic 473.60 Total for this ACH Check for Vendor 4889: 473.60 ACH 5173 BADGER METER 05/10/2024 80106970 Gateway Cellular Sept -Nov 2022 340.00 80113847 Gateway Cellular Dec 2022-Feb 2023 300.00 80158666 LTE Service Feb -Apr and Gateway through 07/2 704.48 Total for this ACH Check for Vendor 5173: 1,344.48 ACH 6129 FAST SIGNS INC 05/10/2024 204-62490 Nameplate and Badges-PTRC 36.00 Total for this ACH Check for Vendor 6129: 36.00 ACH 7025 ON SITE COMPANIES -OSSTC INC 05/10/2024 0001706327 Restrooms 4/24/24 35.00 Total for this ACH Check for Vendor 7025: 35.00 ACH 7501 KELLY & LEMMONS PA 05/10/2024 62955 April Prosecution 4,990.05 Total for this ACH Check for Vendor 7501: 4,990.05 ACH 8081 KIMLEY HORN AND ASSOCIATES INC 05/10/2024 27927651 AUAR Update -April 9,500.00 Total for this ACH Check for Vendor 8081: 9,500.00 ACH TOII TOKLE INSPECTIONS INC 05/10/2024 050124 April Electrical Inspections 3,028.47 Total for this ACH Check for Vendor TOII: 3,028.47 52609 6502 BSN SPORTS 05/10/2024 308607173 Goal Post and Net 3,183.00 Total for Check Number 52609: 3,183.00 52610 1033 COMCAST 05/10/2024 101030.0524 Service 5/3-6/2 108.35 98681.0524 Service 5/5-6/4 111.52 Total for Check Number 52610: 219.87 52611 10516 DASH SPORTS LLC 05/10/2024 2024-092 T-Ball Classes 853.00 Total for Check Number 52611: 853.00 52612 10565 DEFEND SEWER REPAIR LLC 05/10/2024 2372 Met Council I/I Program-1124 Ingerson Rd 5,000.00 Total for Check Number 52612: 5,000.00 52613 10448 MARCO TECHNOLOGIES LLC 05/10/2024 AP Checks by Date - Detail by Check Date (5/22/2024 1:17 PM) Page 2 Check No Vendor No Invoice No Vendor Name Check Date Description Reference Check Amount 528269160 Copier 5/25-6/25 35.36 528269160 Copier 5/25-6/25 200.35 Total for Check Number 52613: 235.71 52614 10523 METRO-INET 05/10/2024 1874 IT Support -May 9,526.00 Total for Check Number 52614: 9,526.00 52615 0556 MINNESOTA CITY COUNTY MGMT AS 05/10/2024 050824 MCMA Membership 5/l/24-12/31/24 192.00 Total for Check Number 52615: 192.00 52616 10286 MINNESOTA OCCUPATIONAL HEALTE 05/10/2024 458432 Drug Screen 140.00 Total for Check Number 52616: 140.00 52617 1208 PREMIUM WATERS INC 05/10/2024 610207-04-24 April Water 18.90 613317-04-24 April Water 66.96 Total for Check Number 52617: 85.86 52618 0282 REPUBLIC SERVICES #899 05/10/2024 0899-004454925 Recycling -April 8,847.15 0899-004454925 Recycling Revenue Sharing-April -444.40 0899-004459041 PW Waste -April 323.54 Total for Check Number 52618: 8,726.29 52619 7064 ROTARY CLUB OF ARDEN HILLS-SHO 05/10/2024 2483 Q2 2024 Dues 127.50 Total for Check Number 52619: 127.50 52620 6527 ROTO-ROOTER SERVICES COMPANY 05/10/2024 48-25903361 Met Council I/I Program-3308 New Brighton Rd 4,194.00 Total for Check Number 52620: 4,194.00 Total for 5/10/2024: 106,875.88 ACH 0189 GOPHER STATE ONE CALL 05/17/2024 4040190 April Locates 78.75 4040190 April Locates 78.75 4040190 April Locates 78.75 Total for this ACH Check for Vendor 0189: 236.25 ACH 0192 GRAINGER INC 05/17/2024 9115942063 Supplies 96.04 Total for this ACH Check for Vendor 0192: 96.04 ACH 0220 MINNESOTA DEPT OF LABOR & INDU 05/17/2024 ABR0328544X Boiler Inspection 10.00 AP Checks by Date - Detail by Check Date (5/22/2024 1:17 PM) Page 3 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference Total for this ACH Check for Vendor 0220: 10.00 ACH 0234 MACQUEEN EQUIPMENT INC 05/17/2024 W14055 Service/Repair#85122 1,398.75 Total for this ACH Check for Vendor 0234: 1,398.75 ACH 0285 XCEL ENERGY 05/17/2024 875275780 03/19/24-04/16/24 1,815.11 875275780 03/19/24-04/16/24 1,069.32 875275780 03/19/24-04/16/24 1,797.53 875275780 03/19/24-04/16/24 1,246.36 875275780 03/19/24-04/16/24 1,300.63 875275780 03/19/24-04/16/24 204.55 875275780 03/19/24-04/16/24 46.53 Total for this ACH Check for Vendor 0285: 7,480.03 ACH 0292 OXYGEN SERVICE COMPANY INC 05/17/2024 0003584545 April Rental 35.45 Total for this ACH Check for Vendor 0292: 35.45 ACH 0327 STAPLES INC 05/17/2024 6001998287 Supplies 83.13 6001998290 Supplies 105.97 6001998293 Supplies 17.28 Total for this ACH Check for Vendor 0327: 206.38 ACH 0453 CONTINENTAL RESEARCH CORP 05/17/2024 0053603 Herbicide 840.00 Total for this ACH Check for Vendor 0453: 840.00 ACH 0706 CERTIFIED LABORATORIES 05/17/2024 8655666 Supplies 945.95 Total for this ACH Check for Vendor 0706: 945.95 ACH 10476 TWIN CITIES COMMERCIAL CLEANEI 05/17/2024 05241211 Janitorial Services -May 1,554.58 Total for this ACH Check for Vendor 10476: 1,554.58 ACH 10497 CINTAS CORP 05/17/2024 4192110120 May Mats 105.39 5211387313 Fist Aid Supplies 79.09 5211387313 Fist Aid Supplies 50.36 Total for this ACH Check for Vendor 10497: 234.84 ACH 2490 CORE & MAIN LP 05/17/2024 U856131 Meter Coupling 371.31 Total for this ACH Check for Vendor 2490: 371.31 ACH 5665 METERING & TECHNOLOGY SOLUTI( 05/17/2024 INV5105 M70 8-Dial HRE 433.26 Total for this ACH Check for Vcndor 5665: 433.26 AP Checks by Date - Detail by Check Date (5/22/2024 1:17 PM) Page 4 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference ACH 6060 BATTERIES PLUS 05/17/2024 P70562198 Battery #85107 176.45 Total for this ACH Check for Vendor 6060: 176.45 ACH 6129 FAST SIGNS INC 05/17/2024 204-62668 Name Tag and Office Sign 73.26 Total for this ACH Check for Vendor 6129: 73.26 ACH 7025 ON SITE COMPANIES -OSSTC INC 05/17/2024 0001711766 Restrooms 5/11-6/7 706.00 Total for this ACH Check for Vendor 7025: 706.00 ACH 7804 MARTIN MARIETTA MATERIALS INC 05/17/2024 42345944 Asphalt Purchase 147.54 Total for this ACH Check for Vendor 7804: 147.54 ACH 8029 MMKR & CORP PA 05/17/2024 56213 2023 Audit Services 2,495.00 56213 2023 Audit Services 1,308.00 56213 2023 Audit Services 2,495.00 56213 2023 Audit Services 2,495.00 56213 2023 Audit Services 2,495.00 56213 2023 Audit Services 2,817.00 Total for this ACH Check for Vendor 8029: 14,105.00 ACH JOHC JOHNSON CONTROLS INC 05/17/2024 1-132852733819 Service on 4/23: Low Temp Alarm 867.40 Total for this ACH Check for Vendor JOHC: 867.40 ACH MNLI MINNESOTA NATIVE LANDSCAPES IT 05/17/2024 44499 Mowing 3/21 & 4/18 500.00 Total for this ACH Check for Vendor MNLI: 500.00 52621 0131 BEISSWENGERS DO IT BEST 05/17/2024 846848 Supplies 34.48 847127 Supplies 70.98 847667 Supplies 16.99 Total for Check Number 52621: 122.45 52622 10244 COMCAST BUSINESS INC 05/17/2024 201232175 Service 4/1-4/30 505.50 Total for Check Number 52622: 505.50 52623 10518 COURT SURFACES & REPAIR INC 05/17/2024 050624-18 Hardcourt Rehab CummingsNalentine/Ingerson 2,450.00 Total for Check Number 52623: 2,450.00 52624 0849 FRA-DOR INC 05/17/2024 2404113 Black Dirt 110.00 Total for Check Number 52624: 110.00 52625 9045 HAPPY FEET DANCE COMPANY LLC 05/17/2024 AP Checks by Date - Detail by Check Date (5/22/2024 1:17 PM) Page 5 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference 050724 Winter/Spring Dance 1,232.00 Total for Check Number 52625: 1,232.00 52626 10218 HR GREEN INC 05/17/2024 174714 Engineering Review -April Escrow PC 24-024 #, 850.50 Total for Check Number 52626: 850.50 52627 10556 INNOVATIVE OFFICE SOLUTIONS LLC 05/17/2024 IN4536104 Supplies 231.76 Total for Check Number 52627: 231.76 52628 0257 MINNESOTA DEPT OF HEALTH 05/17/2024 4436.2024 Water Supply Operator Renewal-2024 23.00 Total for Check Number 52628: 23.00 52629 0600 NCPERS GROUP LIFE INS 05/17/2024 315800062024 June Insurance 80.00 Total for Check Number 52629: 80.00 52630 NSCC NORTH SUBURBAN COMMUNICATIOI 05/17/2024 2024-545 Ql 2024 Contribution 6,337.12 Total for Check Number 52630: 6,337.12 52631 0811 RAMSEY COUNTY 05/17/2024 EMCOM-011622 Fleet Support -April 24.96 EMCOM-011658 CAD Services -April 781.75 EMCOM-011674 911 Dispatch -April 5,084.42 PRRRV-002686 Tax Payers & Overlapping Debt Reports 95.00 SHRFL-002230 Law Enforcement -May 131,853.14 Total for Check Number 52631: 137,839.27 52632 UB*00723 JULIE SPENCER 05/17/2024 Refund Check 009211-000, 4363 Arden View C 197.13 Total for Check Number 52632: 197.13 52633 3099 TRI STATE BOBCAT INC-LITTLE CANT 05/17/2024 A32964 Filters and Fluids 985214 147.54 A32979 Return: Counterweight Kit -1,898.15 A33232 Filter 16.99 A33561 Sensor #85453 621.18 A34727 Hydraulic Cylinder Assembly #85460 640.96 A34728 Blower 230.00 A34847 Pole Prunner 615.00 E36099 Rental: Tiller & Loader 718.75 V05601 Service/Repair #85453 877.13 Total for Check Number 52633: 1,969.40 Total for 5/17/2024: 182,366.62 AP Checks by Date - Detail by Check Date (5/22/2024 1:17 PM) Page 6 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference Report Total (61 checks): 289,242.50 AP Checks by Date - Detail by Check Date (5/22/2024 1:17 PM) Page 7 CONSENT ITEM - 8B ,-ARZEN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Joua Yang, Finance Director SUBJECT: 2024 1" Quarter Financials Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motion to approve, table or deny the following: • Quarterly budget to actual fund statements and investment portfolio detail for the City. Background Investments - per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At March 31, 2024 — this rate was 5.275% and our portfolio is averaging 2.87%. Our average rate will begin to increase as lower interest investments mature and we continue to invest in higher interest investments. All of our investments are in government secured or government backed deposits. Utility billing cycles and CIP projects are taken into account when determining how much to invest and for how long. Basis of accounting — during the year, City books are kept on a cash basis which means that only items that are received are booked as revenue and items paid are booked as expenses. Adjustments for accruals, deferrals and other accounting requirements are made at year end. The first quarter financial results are generally as expected and mostly positive across all City funds. City revenue streams are on target with prior year and budget, and departments are for the most part under the 25% expended thus far in the year. General Fund — The main source of revenue for the City is property taxes and these come in twice a year. Expenditures are at 24.2% of budget through the end of the quarter, compared to 24.7% last year. Some of this difference is due to the timing of invoices. Other governmental funds and enterprise funds — Utility revenue for first quarter is booked in April 2024 and annual transfers between funds will be booked later in the year. Page 1 of 2 Market value adjustments for investments total-$10,237.67 through the end of the first quarter. At the end of 2023, the City recognized a market value loss of $392,148.12. It is important to note that the City holds its investments to maturity and no principal is ever lost on an investment. Discussion City Staff respectfully request the City Council review the quarterly updates for further discussion. Budget Impact None. Attachments Attachment A: Investment Portfolio Analysis Attachment B: General Fund Revenues and Expenditures Summary Attachment C: Other City Funds Revenues and Expenditures Summary Attachment D: Permit Data Page 2 of 2 CITY OF ARDEN HILLS SCHEDULE INVESTMENTS Attachment A FOR THE MONTH ENDING MARCH 31, 2024 Unadjusted Market Value Deposits - Expenditures - Market Value Market Value Unrealized Institution Description Type l/l/2024 Purchases Maturities Transfers Interest 3/31/2024 3/31/2024 gain/loss Wells Fargo - Adv Wells Fargo Advisors Money Market $ �10,636.59 $ - S � 11,382.07 S qF 11,382.� 0.00 WOE;Fargo -Adv FHLB Municipal Securities 227,146.85 - - 227,146.85 227,164.00 17.15 Wells Fargo - Adv FHLB Municipal Securities 427,105.40 - - * 427,105.40 426,11 L� (993.60) 664,888.84 745.48 665,634.32 664,657.87 (976.45) RBC RBC Money Market - (106,670.45) - 106,670.45 - - - RBC Prescott Wis Sch Dist Municipal Securities 233,411.40 - (235,000.00) - - (1,588,60) - 1,588.60 RBC American Express Brokered CD 243,417.30 - (24� - (1,582.70) - 1,582.70 RBC State of Connecticut Municipal Securities 371,028.75 - (375,000.00) - (3,971,25) - 3,971.25 RBC Capital One Bk USA Brokered CD 99,008.00 - - 99,008.00 99,584.00 576.00 RBC Bank Hapolim Brokered CD 243,253.36 - - 243,253.36 243,368.04 114.68 RBC Sallie Mae Bk Brokered CD 242,459.35 - 242,459.35 243,277.65 818.30 RBC Morgan Stanley Bk NA Brokered CD 147,385.50 - 147,385.50 148,284.00 898.50 RBC Western Alliance BK Phoenix Brokered CD - 243,000.00 243,000.00 - RBC Liberty BK Nat] Assn Irvine Brokered CD _ - 115,000.00 - 115,000.00 115,000.00 - RBC Enerbank USA UT Brokered CD 242,418.93 - 242,418.93 244,127.07 1,708.14 RBC State of Mississippi Municipal Securities 393,532.00 - 393,532.00 394,264.00 732.00 RBC Nev Jersy St Econ Dev Municipal Securities 330,683.50 - - - 330,683.50 334,159.00 3,475.50 RBC FFCB Municipal Securities 285,471.00 - - - 285,471.00 287,532.00 2,061.00 RBC FHLB Municipal Securities 383,532.00 - - - 383,532.00 384,240.00 708.00 RBC San Marcos Tex Cons Municipal Securities 232,115.00 - - - 232,115.00 233,702.50 1,587.50 RBC Gladewater City Line Ind TX Municipal Securities 231,097.50 - - - 231,097.50 232,732.50 1,635.00 RBC Yucaipa VY Calif Municipal Securities 191,294.00 - - - 191,294.00 191,836.00 542.00 RBC New York City NY Transit Municipal Securities 383,392.00 - - - 383,392.00 383,360.00 (32.00) RBC Park Creek Co Met Dist CO Municipal Securities 288,666.00 - - - 288,666.00 288,489.00 (177.00) RBC Palm Beach Fla Rev Municipal Securities 375,414.00 - - - 375,414.00 374,606.70 (807.30) RBC FHLB Municipal Securities 291,753.00 - - - - 291,753.00 291,786.00 33.00 RBC City National Bank Brokered CD 241,928.44 - - - - 241,928.44 241,791.80 (li= RBC First Oklahoma Brokered CD 226,186.62 - 226,186.62 228,502.32 2,315.70 RBC WEALTH Michigan City ISD Municipal Securities - - - RBC FFCB Municipal Securities 348,383.00 - - - - 348,383.00 347,756.50 (626.50) RBC Skokie IL Municipal Securities 269,178.00 - - - - 269,178.00 269,085.2111W (92.80) RBC WEALTH Hawaii St GO Bds Municipal Securities 359,100.00 - - - - 359,100.00 354,231.50 (4,868.50) RBC FHLB Municipal Securities 395,316.00 - - - - 395,316.00 396,392.00 1,076.00 RBC FFCB Municipal Securities 271,365.00 - - - - 271,365.00 268,536.00 (2,829.00) RBC FHLB Municipal Securities 294,762.00 - - - - 294,762.00 297,147.00 2,385.00 RBC MHFA Municipal Securities 211,096.30 - - - - 211,096.30 211,878.30 782.00 RBC New York, NY Municipal Securities - 357,952.00 - - - - 357,952.00 358,168.00 216.00 RBC Vista CalifUni Sch Dist Municipal Securities 269,346.00 - - - - 269,346.00 270,741.00 1,395.00 RBC San Francisco CA Municipal Securities 311,902.50 - - - - 311,902.50 314,576.50 2,674.00 RBC Elk Grove Village IL Municipal Securities 267,723.00 - - - - 267,723.00 266,874.00 (849.00) RBC Kane McHenry Cook & Dekalb Municipal Securities 340,109.00 - - - - 340,109.00 337,372.00 (2,737.00) RBC City of Milwaukee AT Municipal Securities 399,420.00 - - - - 399,420.00 395,760.00 (3,660.00) RBC City of Minneapolis MN Municipal Securities 347,882.50 - - - - 347,882.50 344,221.50 (3,661.00) RBC Washington Cry OR SD#48J Municipal Securities 321,472.70 - - - - 321,472.70 318,384.00 (3,088.70) RBC San Diego CA Comm College Municipal Securities 323,235.50 - - - - 323,235.50 323,134.00 (101.50) RBC Live Oak Banking Co Wilmington Brokered CD 240,832.80 - - - - 240,832.80 242,849.70 2,016.90 RBC Cook County IL Sch Dist Municipal Securities 137,263.00 - - - - 137,263.00 136,159.80 (1,103.20) RBC Pelican Rapids MN Municipal Securities 425,834.50 - - - - 425,834.50 423,742.20 (2,092.30) RBC Shakopee MN ISD 720 Municipal Securities 214,435.00 - - - - 214,435.00 213,992.50 (442.50) RBC City of Dallas TX Municipal Securities 314,468.00 - - - - 314,468.00 315,156.00 688.00 RBC FFCB Municipal Securities 292,071.00 - - - - 292,071.00 291,024.00 (1,047.00) RBC Farmer MAC Municipal Securities - 495,202.50 - (8.00) 8.00 495,202.50 486,000.00 (9,202.50) RBC FFCB Municipal Securities 474,508.35 - - (I6.00) 16.00 474,508.35 471,095.10 (3,413.25) RBC State of Minnesota Municipal Securities 334,261.20 - - - - 334,261.20 333,570.90 (690.30) RBC City of Duluth, MN Municipal Securities jr 376,796.00 - - - - 376,796.00 373,612.00 (3,184.00) 13,576,161.00 853,202.50 (961,670.45) (24.00) 106,694.45 13,574,363.50 13,565,102.28 (9,261.22) Money Market - - - - - - - - PMA 4M General Money Market 3,979,884.32 3,136,895.50 (5,441,402.93) - 40,493.90 1,715,870.79 1,715,870.79 PMA 4MP General Money Market 712,865.4 - 9,452.27 722,317.67 77�7 — PMA 4M Payroll Money Market 41.45 417,748.61 (417,790.62) - 0.56 0.00 (0.00) PMA AREA Funds Municipal Securities �8,286.61 - 2,081.73 i 160,368.34 �4 PMA Term Series (xxx days) Municipal Securities 500,000.00 - - - - 500,000.00 500,000.00 - 5,351,077.78 3,554,644.11 (5,859,193.55) 52,028.46 3,098,556.80 3,098,556.80 (0.00) Total cash and investments $ 19,592,127.62 $ 4,407,846.61 $ (6,820,864.00) $ (24.00) $ 159,468.39 $ 17,338,554.62 $ 17,329,316.95 $ (10,237.67) $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 CITY OF ARDEN HILLS SCHEDULE OF INVESTMENTS FOR THE MONTH ENDING MARCH 31, 2024 Maturities Current < 1 year 1-2 2-3 3-4 5+ years years years years ■ Money Market ■ Brokered CD ■ Comml Paper ■ Municipal Securities ■ Checking Maturity Current < 1 year 1-2 years 2-3 years 3-4 years 5+ years Weighted average Rate of return Average Maturity (years) Investment Type Money Market Brokered CD Comml Paper Municipal Securities Checking Unadjusted Market Value Market Value Variance 15 G,VVL,/7V.JG 71 L,VV7,7J O.O/ �f /, 1'4G.JJ 3,225,743.64 3,236,835.76 11,092.12 2,462,806.79 2,465,468.50 2,661.71 1,629,953.02 1,625,687.32 (4,265.70) 3,466,874.30 3,461,666.30 (5,208.00) 3,950,380.55 3,928,720.20 (21,660.35) $ 17,338,554.62 $ 17,328,316.95 $ (10,237.67) 2.87% 3/31/2024 2.52 3/31/2024 Market Value 3/31/2024 $ 2,449,570.53 2,049,784.58 12,828,961.84 $ 17,328,316.95 Attachment B CITY OF ARDEN HILLS STATEMENT OF REVENUES AND EXPENDITURES GENERALFUND FOR THE THREE MONTHS ENDED MARCH 31 2024 2023 %of %of Budget YTD Budget Budget YTD Budget REVENUES $ 4,638,460 $ - 0.0% Taxes $ 4,078,390 $ - 0.0% 552,020 $ 122,486 22.2% Licenses and permits 511,730 $ 148,442 29.0% 175,970 $ 56,825 32.3% Intergovernmental 171,370 $ 53,178 31.0% 489,490 $ 158,187 32.3% Charges for services 525,550 $ 152,609 29.0% 19,250 $ 5,460 28.4% Fines and forfeits 23,190 $ 4,291 18.5% 3,090 $ - 0.0% Special assessments 3,350 $ - 0.0% 50,000 $ 11,875 23.7% Investment earnings 42,500 $ 11,188 26.3% 10,920 $ 15,849 145.1% Miscellaneous 13,340 $ 1,229 9.2% 5,939,200 370,681 6.2% TOTAL REVENUES 5,369,420 370,937 6.9% EXPENDITURES 88,370 34,708 39.3% Mayor & Council 56,850 13,772 24.2% 499,730 93,537 18.7% Administration 434,230 79,699 18.4% 40,300 - 0.0% Elections 33,200 6,851 20.6% 191,810 53,343 27.8% Finance 191,550 59,747 31.2% 114,900 21,472 18.7% TCAAP 90,450 18,382 20.3% 324,940 60,183 18.5% Planning & Zoning 281,080 44,336 15.8% 232,900 57,491 24.7% Government Buildings 223,910 55,166 24.6% 1,585,240 395,559 25.0% Public Safety 1,453,280 362,570 24.9% 70,390 11,732 16.7% Dispatch 68,740 11,456 16.7% 833,930 416,966 50.0% Fire Protection 751,180 375,589 50.0% 9,260 1,265 13.7% Emergency Management 6,830 1,290 18.9% 396,120 82,977 20.9% Protective Inspections 375,770 87,651 23.3% 853,380 98,653 11.6% Street Maintenance 799,080 122,297 15.3% 241,970 35,287 14.6% Recreation 237,770 34,218 14.4% 588,030 116,912 19.9% Park Maintenance 545,590 96,562 17.7% 50,000 - 0.0% Transfers Out - - N/A 6,121,270 1,480,086 24.2% TOTAL EXPENDITURES 5,549,510 1,369,586 24.7% $ (182,070) $ (1,109,405) 609.3% NET CHANGE IN FUND BALANCE $ (180,090) $ (998,650) 554.5% 25.0% Percentage of Year Complete 25.0% Financial Performance Commentary Revenues Tax revenues are collected twice a year. Licenses & Permits. Liquor Sales and Permit Revenues are slightly lower from 2023. Miscellaneous. Fire Hydrant Reimbursement. Expenditures Salaries & Benefits. Increases across departments due to COLA and insurance increases. Mayor & Council. Full Year cost in 2024 for Northeast Youth & Family Services contract, 2023 billed at 75%. Planning & Zoning. Planner position part-time in March 2023, transitioned to full-time in June 2023. Public Safety/Fire Protection. Contract increase in line with budget expectations. Street Maintenance. Overtime savings due to mild winter. Park Maintenance. Timing of expenditures. General Fund Revenues Miscellaneous Investment earnings Special assessments Fines and forfeits ` Charges for services Intergovernmental Licenses and permits Taxes $ $50 $100 $150 ■ 2023 ■ 2024 General Fund Expenditures Transfers Out Park Maintenance Recreation Street Maintenance Protective Inspections Emergency Management I Fire Protection Dispatch M Public Safety Government Buildings i Planning & Zoning TCAAP Finance Elections Administration Mayor & Council $- $50 $100 $200 $150 $200 $250 $300 $350 02023 02024 $250 Thousands $400 $450 Thousands CITY OF ARDEN HILLS Attachment C OTHER GOVERNMENTAL FUNDS BUDGET SUMMARY FOR THE THREE MONTHS ENDED MARCH 31 2024 % of Budget YTD Budget 2023 % of Budget YTD Budget CABLE TV 806 806 Beg Fund Balance 56,635 56,635 94,500 9 0.0% Revenues 94,500 131 0.1% 142,010 30,150 21.2% Expenditures 142,760 25,639 18.0% (46,704) (29,336) End Fund Balance 8,375 31,127 Cable TV. Franchise revenues are receipted quarterly, in the month following the end of the quarter (Apr, Jul, Oct, Jan) EDA GENERAL 713,987 713,987 Beg Fund Balance 100,000 2,338 2.3% Revenues 88,340 21,327 24.1% Expenditures 725,647 694,998 End Fund Balance EDA. Tax revenues are collected twice a year (Jun, Nov) TIF FUNDS 1,471,705 1,471,705 Beg Fund Balance - 4,176 N/A Revenues 5,700 78 1.4% Expenditures 1,466,005 1,475,804 End Fund Balance TIF. TIF note for TIF #4 Presbyterian Homes has been paid in full 662,514 662,514 100,000 1,706 1.7% 87,550 19,511 22.3% 674,964 644,709 1,342,914 1,342,914 - 3,625 N/A 5,700 - 0.0% 1,337,214 1,346,540 EQUIP & BUILDING CAPITAL 383,682 383,682 Beg Fund Balance 245,914 245,914 609,000 30,356 5.0% Revenues 390,000 2,381 0.6% 510,150 23,764 4.7% Expenditures 321,520 1,311 0.4% 482,532 390,274 End Fund Balance 314,394 246,984 Equipment & Building. Transfers are normally completed during the 4th quarter. PARK DEVELOPMENT 197,649 197,649 Beg Fund Balance 218,039 218,039 - 576 N/A Revenues - 669 N/A 32,000 750 2.3% Expenditures 35,740 (4,200) -11.8% 165,649 197,474 End Fund Balance 182,299 222,907 PIR FUND 5,605,204 5,605,204 Beg Fund Balance 4,702,027 1,436,190 70,629 4.9% Revenues 1,593,350 1,956,200 877,463 44.9% Expenditures 1,881,580 5,085,194 4,798,370 End Fund Balance 4,413,797 PIR. Bethel final reimbursement for pedestrian trail was received in 2023. Timing of expenditures for construction projects - Arden Manor, Floral Park, Perry Park. 367,950 367,950 60,000 2,373 522,850 - (94,900) 370,323 FIRE EQUIP CAPITAL Beg Fund Balance 4.0% Revenues 0.0% Expenditures End Fund Balance 25.0% Percentage of Year Complete 264,303 245,000 160,100 349,203 4,702,027 164,348 10.3 % 156,685 8.3% 4,709,691 264,303 1,890 0.8% 4,262 2.7% 261,931 25.0% CITY OF ARDEN HILLS, MINNESOTA STATEMENT OF REVENUES AND EXPENSES BUDGET AND ACTUAL FOR THE THREE MONTHS ENDED MARCH 31 WATER FUND Percent Received or Expended Actual Actual Variance - Based on Annual Thru Thru Favorable Actuals Thru Budget 03/31/23 03/31/24 (Unfavorable) 03/31/24 REVENUES User charges $ 3,116,020 $ 939 $ 373 $ (566) 39.7 % Connection charges 13,750 - - - N/A Other 546,860 (3,127) 3,299 6,426 -105.5 Interest earnings - 7,318 8,628 1,310 117.9 TOTAL REVENUES 3,676,630 5,130 12,300 7,170 239.8 EXPENSES Personnel expenses 433,770 85,044 91,312 (6,268) 107.4 Supplies and materials 54,000 1,333 142 1,191 10.7 Other services and charges 352,730 57,670 70,730 (13,059) 122.6 Water purchases 1,387,000 - - N/A Depreciation 376,640 N/A Capital expenses 1,497,100 - - N/A Debt service 250,050 223,475 229,986 (6,511) 102.9 TOTAL EXPENSES 4,351,290 367,522 392,170 (24,647) 106.7 Bond Proceeds - - - N/A Transfers out 100,000 N/A EXCESS (DEFICIT) REVENUES OVER EXPENSES $ (774,660) $ (362,392) $ (379,870) $ (17,478) 104.8 % CITY OF ARDEN HILLS, MINNESOTA STATEMENT OF REVENUES AND EXPENSES BUDGET AND ACTUAL FOR THE THREE MONTHS ENDED MARCH 31 SEWER FUND Percent Received or Expended Actual Actual Variance - Based on Annual Thru Thru Favorable Actuals Thru Budget 03/31/23 03/31/24 (Unfavorable) 03/31/24 REVENUES User charges $ 2,537,260 $ 1,044 $ 543 $ (501) 52.0 % Connection charges 8,250 - - - N/A Other 11,920 735 840 105 114.3 Interest earnings - 3,053 3,466 413 113.5 TOTAL REVENUES 2,557,430 4,831 4,848 17 100.4 EXPENSES Personnel expenses 513,890 100,644 108,122 (7,478) 107.4 Supplies and materials 15,500 1,676 5,777 (4,100) 344.6 Other services and charges 322,220 48,659 52,758 (4,099) 108.4 Wastewater charges 901,680 281,790 300,561 (18,771) 106.7 Depreciation 221,570 - - N/A Capital expenses 1,424,800 - 26,484 (26,484) N/A Debt service 37,050 34,425 33,889 536 98.4 TOTAL EXPENSES 3,436,710 467,193 527,590 (60,397) 112.9 Bond Proceeds - - - N/A Transfers out 126,000 N/A EXCESS (DEFICIT) REVENUES OVER EXPENSES $ (1,005,280) $ (462,362) $ (522,742) $ (60,380) 113.1 % REVENUES User charges Other Interest earnings TOTALREVENUES EXPENSES Personnel expenses Supplies and materials Other services and charges Depreciation Capital expenses TOTAL EXPENSES Transfers out EXCESS (DEFICIT) REVENUES OVER EXPENSES CITY OF ARDEN HILLS, MINNESOTA STATEMENT OF REVENUES AND EXPENSES BUDGET AND ACTUAL FOR THE THREE MONTHS ENDED MARCH 31 SURFACE WATER MANAGEMENT FUND Percent Received or Expended Actual Actual Variance - Based on Annual Thru Thru Favorable Actuals Thru Budget 03/31/23 03/31/24 (Unfavorable) 03/31/24 $ 987,840 $ 808 $ 191 $ (618) 23.6 % - - - - N/A - 1,904 2,136 232 112.2 987,840 2,712 2,327 (385) 85.8 348,800 67,639 72,908 (5,269) 107.8 12,750 131 - 131 0.0 189,130 30,984 30,058 926 97.0 163,440 - - - N/A 978,000 3,038 - 3,038 0.0 1,692,120 101,792 102,967 (1,174) 101.2 74,000 - - N/A $ (778,280) $ (99,080) $ (100,640) $ (1,560) 101.6 % Attachment D CITY OF ARDEN HILLS, MINNESOTA PERMIT DATA FOR BUILDING, HVAC AND PLUMBING FROM PERMITWORKS SOFTWARE FOR THE THREE MONTHS ENDED MARCH 31 03/31/23 03/31/24 Building Permit Issued 55 58 Building Permit Fees 46,323 29,323 Building Plan Review Fees 13,471 11,875 TOTAL BUILDING FEES 59,794 41,197 Valuations of Projects 5,258,250 2,272,894 HVAC Permits Issued 52 54 HVAC Permit Fees 13,910 9,508 HVAC Plan Review Fees - - TOTAL HVAC FEES 13,910 9,508 Valuation of Projects 873,973 465,801 Plumbing Permits Issued 45 40 Plumbing Permit Fees 7,641 6,164 Plumbing Plan Review Fees - - TOTAL PLUMBING FEES 7,641 6,164 Valuation of Projects 503,405 419,194 TOTAL PERMITS ISSUED 152 152 TOTAL PERMIT FEES 81,344 56,869 TOTAL VALUATION OF PROJECTS 6,635,628 3,157,889 CONSENT ITEM - 8C ,-ARZEN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Joua Yang, Finance Director SUBJECT: Approve 2023 City Financial Statements and Audit Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motion(s) to approve, table or deny the following: • 2023 City of Arden Hills Financial Report and Audit Results. Discussion The 2023 financial statements and audit results are completed and a presentation was made to the City Council by the City's auditor, Aaron Neilson of MMKR, earlier this evening. The reports will be submitted to both the State Auditor and the Government Finance Officers Association. Budget Impact None. Attachments None. Page 1 of 1 AGENDA ITEM - 8D 'It ,-AI�EN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Jessica Jagoe, Community Development Director SUBJECT: Agreement for Professional Services for Zoning and Subdivision Ordinance Revisions with HGKi. Budgeted Amount: Actual Amount: Funding Source: $80,000 (2024/2025) TBD General Fund Council Should Consider Motions to approve, table, or deny the following: • Agreement for Professional Services to administer the zoning and subdivision ordinance revisions between the City of Arden Hills and HGKi. Discussion The City of Arden Hills recently requested proposals for professional services to complete a comprehensive update of the zoning and subdivision ordinances. The scope of services for drafting of the code updates has been scheduled into two phases (i.e. minor and major updates) with a tentative completion time of 18 months. The City received three proposals. Staff interviewed all three consultant firms and unanimously felt that HGKi was the best candidate to facilitate this project. The City Attorney has reviewed the contract agreement between the City and HGKi and recommends approval as drafted. Once approved, staff will coordinate with HGKi to schedule a project kickoff discussion with the City Council at the June 241h work session meeting. Budget Impact The Council budgeted $80,000 to be split between 2024 and 2025 on this project. Attachment A. Agreement for Professional Services Planning Consultant Ordinance Updates Page 1 of 1 Attachment A H KG *i Planning I Landscape Architecture I Urban Design May 24, 2024 Jessica Jagoe City of Arden Hills 1245 Highway 96 Arden Hills, MN 55112 RE: AN AGREEMENT BETWEEN CLIENT AND HOISINGTON KOEGLER GROUP INC. FOR SERVICES PERTAINING TO ZONING AND SUBDIVISION ORDINANCE REVISIONS Dear CLIENT; This letter outlines a Scope of Services, Fee Schedule and other elements which together constitute an agreement between the City of Arden Hills hereinafter referred to as the CLIENT, and Hoisington Koegler Group Inc., hereinafter referred to as the CONSULTANT for Zoning and Subdivision Ordinance Revisions, hereinafter referred to as the PROJECT. The CLIENT and CONSULTANT agree asset forth below: A. BASIC SERVICES The CONSULTANT'S basic services for the PROJECT areas provided in Attachment A Work Program. B. ADDITIONAL SERVICES The CONSULTANT and the CLIENT may agree in writing to amend this Contract for additional services related to the PROJECT and compensation for such services. The following services have not been requested by the CLIENT but are available upon written authorization. 1. Meetings in addition to those specified in Paragraph A above. 2. Services or Deliverables not specifically identified in Paragraph A above. C. FEES FOR PROFESSIONAL SERVICES The CONSULTANT agrees to complete the scope of work contained in Paragraph A in exchange for professional fee compensation as noted below. The CLIENT agrees to pay the CONSULTANT for PROJECT services rendered as follows: 800 Washington Avenue North, Suite 103 Minneapolis, Minnesota 55401 MEN M Im 5/24/2024 ,, H KGi Zoning and Subdivision Ordinance Revisions City of Arden Hills 1. For the CONSULTANT'S Basic Services described in Paragraph A above, a fee based on the CONSULTANT'S current hourly rate schedule (see Attachment B) not -to -exceed eighty thousand dollars ($80,000) inclusive of expenses as noted in Paragraph A. 2. The CONSULTANT'S fee includes a contingency of five thousand dollars ($5,000) that will not be expended until written approval is provided by the Community Development Director. 3. For the CONSULTANT'S Additional Services described in Paragraph B, a fee based on the CONSULTANT'S current hourly rate schedule plus incidental expenses or a negotiated fee. 4. Invoices will be submitted electronically (PDF form) to the CLIENT via email on a monthly basis as work is completed and shall be payable within 30 days in accordance with this Agreement. 5. The CONSULTANT reserves the right to suspend services if the CLIENT is delinquent in making payments in accordance with this Agreement. D. CLIENT'S RESPONSIBILITY The CLIENT shall be responsible for the following: 1. Assembly of background information including, but not limited to digital copies of all files, pertinent plans, aerial photographs, base maps, inventory data, available GIS mapping, limited to those that are reasonably available. 2. Arrangements and notification for public meetings, stakeholder meetings, and community engagement events. 3. Reproduction and distribution of project reports as deemed necessary and not otherwise specified in paragraph A. 4. Participation in team meetings and coordinating input from other departments. 5. Reviewing and commenting on draft materials. 6. Assisting with coordinating and leading community engagement meetings as determined in the community engagement plan prepared as part of the Work Program. 7. Assisting with online updates as determined in the community engagement plan prepared as part of the Work Program. E. INSURANCE CONSULTANT shall maintain insurance of the kind and in the amounts shown below for the life of the contract. Certificates for General Liability Insurance should state that the CLIENT, its officials, employees, agents and representatives are Additional Insureds. The CLIENT reserves the right to review CONSULTANT's insurance policies at anytime to verify that contractual requirements have been met. 2 �HKGi 1. Commercial General Liability Insurance ■ $2,000,000 per occurrence ■ $3,000,000 general aggregate ■ $300,000 damage to rented premises ■ $15,000 medical expenses 2. Umbrella Liability ■ $1,000,000 per occurrence ■ $1,000,000 general aggregate ■ $10,000 self -insured retention 3. Worker's Compensation and Employer's Liability 5/24/2024 Zoning and Subdivision Ordinance Revisions City of Arden Hills a. Worker's Compensation per Minnesota Statutes b. Employer's Liability ■ $500,000 per accident; ■ $500,000 per employee; ■ $500,000 per disease policy limit. 4. Professional Liability Insurance ■ $2,000,000 per claim ■ $4,000,000 annual aggregate F. STANDARD OF CARE The CONSULTANT shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional consultant under similar circumstances. No other warranty, express or implied, is included in this Agreement. The CLIENT shall not be responsible for discovering deficiencies in the accuracy of the CONSULTANT'S services. G. COMPLETION SCHEDULE The services of the CONSULTANT will begin upon CLIENT approval and will, absent of causes beyond the control of the CONSULTANT, be completed within 18 months of the date that the CLIENT issues a notice to proceed. The notice to proceed shall come from an authorized representative of the City. H. SUB -CONSULTANTS The CONSULTANT shall not add any Sub -Consultants without written consent from the CLIENT. K 5/24/2024 H KGi Zoning and Subdivision Ordinance Revisions City of Arden Hills I. NONDISCRIMINATION The CONSULTANT agrees not to discriminate by reason of age, race, religion, color, sex, national origin, or handicap unrelated to the duties of a position, of applicants for employment or employees as to terms of employment, promotion, demotion or transfer, recruitment, layoff or termination, compensation, selection for training, or participation in recreational and educational activities. J. EQUAL OPPORTUNITY During the performance of this Contract, the CONSULTANT, in compliance with Executive Order 11246, as amended by Executive Order 11375 and Department of Labor regulations 41 CFR Part 60, shall not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The CONSULTANT shall take affirmative action to insure that applicants for employment are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, transfer; recruitment or recruitment advertising; layoff or termination, rates of pay or other forms of compensation; and selection for training, including apprenticeship. The CONSULTANT shall post in conspicuous places available to employees and applicants for employment notices to be provided by the Government setting forth the provisions of this nondiscrimination clause. The CONSULTANT shall state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. The CONSULTANT shall incorporate the foregoing requirements of this paragraph in all of its subcontracts for program work, and will require all of its subcontractors for such work to incorporate such requirements in all subcontracts for program work. K. INDEMNIFICATION CONSULTANT agrees to indemnify and hold the CLIENT harmless, and CLIENT'S officers, employees, agents, and representatives, from and against liability for all claims, losses, damages, and expenses, including reasonable attorneys fees, to the extent such claims, losses, damages or expenses are caused by the CONSULTANT'S negligent acts, errors, or omissions. L. TERM� TERM I NATION9 SUCCESSORS AND/OR ASSIGNS 1. The Term of this Agreement shall be concurrent with the work authorized and shall be in accordance with the schedule to be established between the CLIENT and the CONSULTANT. 2. Either party may terminate this Agreement by written notice to the other party at its address by certified mail at least ten (10) days prior to the date of termination. 4 �HKGi 5/24/2024 Zoning and Subdivision Ordinance Revisions City of Arden Hills 3. Neither the CLIENT north e CONSULTANT shall assign, sublet or transfer its interest in this Agreement without the written consent of the other. 4. The time schedule shall not apply and/or time extensions will be allowed for any circumstances beyond the control of the CONSULTANT. 5. This Agreement shall be governed by all applicable laws of the State of Minnesota. 6. Upon termination, Consultant shall be entitled to fees earned through the effective date of termination. M. DISPUTES In the event the CLIENT and CONSULTANT are unable to reach agreement under the terms of this contract, disputes shall be resolved using non -binding alternative dispute resolution (ADR). If ADR is not successful to resolve disputes, the parties retain all rights to pursue legal claims at law or equity. N. REVOCATION If this agreement is not signed and accepted by both parties within 90 days of the contract date, it shall become null and void. O. AUTHORIZATION IN WITNESS WHEREOF, The CLIENT and the CONSULTANT have made and executed this Agreement for Professional Services, This _________ day of __---- ___________, 2024 ka H KG i CLIENT City of Arden Hills Name: Name: CONSULTANT Hoisington Koegler Group Inc. Name: Brad Scheib 1� 5/24/2024 Zoning and Subdivision Ordinance Revisions City of Arden Hills Title Title Title �HKGi ATTACHMENTA WORK PROGRAM Phase 1: Project Kick Off and Understanding 5/24/2024 Zoning and Subdivision Ordinance Revisions City of Arden Hills The Project Kick-off and Understanding phase of work is intended to provide a solid foundation for the update process. Staff and the consultant team will confirm the project process, schedule, and tasks, particularly focusing on ensuring the process will sufficiently engage stakeholders and address those topics of highest priority for the City. Background information from the City and other sources will be gathered and reviewed by the consultant team to identify goals, objectives, and/or recommendations that are to be implemented through code regulations. TASKS Meet with Staff to: o Finalize the project's scope, process, schedule o Identify code shortcomings and gaps o Discuss City policies, processes, or practices that are currently unwritten, but that should be incorporated into the update process o Confirm areas of recent code updates - such as the TCAAP Redevelopment Code - that may not be a priority for revisions. o Identify where online information about the project will be hosted • Conduct a meeting with all City Staff to introduce the project and discuss areas of needed update • Complete a reconnaissance tour led by Staff to gain an understanding of the existing and desired community character, view areas that the City would like to see replicated through zoning code updates, and view areas of concern that may need to be addressed by code updates. • Review the 2040 Comprehensive Plan and any other relevant plans or studies to identify goals, objectives, and recommendations that may be achieved through the development of code regulations • Prepare and refine with Staff a public outreach strategy and engagement schedule • Prepare materials, such as online content, that introduce the project to the public DELIVERABLES • Summary of review of relevant portions of the 2040 Comprehensive Plan to the code update process • Public outreach strategy and engagement schedule • Online content/website for project introduction to the public CITY RESPONSIBILITIES Coordinate meeting scheduling 7 5/24/2024 H KGi Zoning and Subdivision Ordinance Revisions City of Arden Hills • Attend project kick off meeting and leading the tour of the City • Gather background materials • Review and comment on draft summary materials • Assist with web updates if City website is hosting project page Phase 2: Diagnose the Current Ordinances and Frame Approach The purpose of phase two is to understand the issues with the existing codes, to reach general consensus on priorities for the update process, and to frame the approach for areas where significant change is anticipated. While Staff and the consultant team will lead the identification of issues, it is also important at this phase of the project to gather input from elected and appointed officials, stakeholders, and the general public. The findings from phase one and the code diagnosis will be used to identify a proposed outline that includes a description of the intent and contents of each section. TASKS Complete a detailed evaluation of the current zoning and subdivision ordinances for deviations from best practices and trends based on our experience working with and updating zoning and subdivision regulations. This evaluation will include: o Evaluation of the current code structure, including whether there are too few or too many groupings. Completing tabular analysis of all districts, uses, and dimensional standards. Analyzing uses as well as site/lot and building dimensional standards to identify inconsistencies, gaps, organizational issues, and ease -of -use improvements. As part of this analysis, we will explore the potential for modernizing, synchronizing, streamlining, and simplifying uses across all districts to improve consistency and understanding of which uses are allowed where. o Assessment of regulations to determine updates needed to align with current state and federal requirements and recent court decisions. o Conducting GIS analysis of the current Zoning Map to evaluate the effectiveness of the current map's application of zoning districts. This step will explore the extent of use of the City's existing districts, whether there are districts that are not mapped, and whether there are any inconsistencies between the 2040 Comprehensive Plan and Zoning Map. o Evaluating development procedures to identify inconsistencies between land use and subdivision requests and potential approaches to streamline the development review process • Prepare an outline for the updated regulations, explaining the purpose and scope of each section • Identify potential approaches to address areas of change identified in the diagnosis • Meet with Staff to discuss the draft outline and potential approaches �;7 �HKGi 5/24/2024 Zoning and Subdivision Ordinance Revisions City of Arden Hills Conduct a first round of public engagement in accordance with the community engagement plan to introduce the project, identify issues, and begin identification of areas where context -sensitive regulations may be needed. In addition to a general opportunity forthe public to provide input, it is recommended that this round include stakeholder meetings, such as with property owners, developers, design professionals, and/or in districts where updates are particularly targeted. Conduct a joint meeting of the City Council and Planning Commission to present initial findings of the diagnosis, and seek input on issues, opportunities, and priorities Identify minor code updates, such as formatting, inconsistencies, and typos. DELIVERABLES • Zoning and Subdivision Code Diagnosis Report • Meeting materials as needed, including agendas, packet materials, and presentations • Community engagement meeting materials such as marketing materials, agendas, and presentations • Summary of community engagement input • Online content/website update CITY RESPONSIBILITIES • Coordinate meeting scheduling • Attend Staff, joint, and community engagement meetings • Coordinate input from other City departments • Take formal minutes at official meetings if required to meet City policies • Review and comment on the draft meeting and summary materials • Assist with web updates if City website is hosting the project page Phase 3: Prepare Draft Codes Phase three is when the technical updating and drafting of regulations occurs. The draft code is proposed to be reviewed in sections by Staff and the Planning Commission. It is also recommended that at least one joint meeting of the City Council and Planning Commission occur in this phase of the project. As requested by the City, HKGi will provide a list of minor codes updates that address formatting, inconsistencies, and typos so that these may be corrected in 2024 prior to larger changes being brought forward in 2025. TASKS Prepare minor code update language for Staff to bring to the Planning Commission and City Council • Prepare the draft regulations in a series of modules. Based on our past experience, helpful groupings of sections for modules include: o Zoning districts and uses (purposes, uses, lot dimensions, site dimensions) o General development standards and provisions (off-street parking, landscaping, fencing and screening, etc.) 5/24/2024 H KGi Zoning and Subdivision Ordinance Revisions City of Arden Hills o Development procedures (variances, conditional use permits, platting, etc.) • Conduct review of the modules with Staff, including Staff of other departments as appropriate • Meet with the Planning Commission to review the three modules • Conduct public engagement for input on key direction, changes, and the draft document • Prepare first draft of entire revised zoning and subdivision ordinance documents • Share the complete draft of the codes online for Planning Commission and City Council review • Conduct a Joint City Council and Planning Commission meeting to discuss major changes and build consensus in targeted areas • Revise the draft as needed to prepare for the Planning Commission public hearing DELIVERABLES • Meeting materials as needed, including agendas, packet materials, and presentations • Draft code modules • Public outreach materials such as marketing, agendas, presentations, and online content • First full draft of the updated codes • Prepare website for online review of the complete draft of the codes CITY RESPONSIBILITIES • Coordinate meeting scheduling • Attend Staff, Planning Commission, City Council, and joint meetings • Review and comment on draft modules • Coordinate review of draft regulations with other City departments • Present updates to the Planning Commission and City Council • Assist with public outreach efforts, including coordination with other advisory commissions or committees if needed • Take formal minutes at official meetings if required to meet City policies • Assist with community engagement efforts • Assist with web updates if city website is hosting project page Phase 4: Final Ordinance Adoption and Implementation The final phase of the update process is the adoption process. This process includes a public hearing at the Planning Commission and consideration by the City Council. TASKS • Conduct a final round of public outreach to seek public comment on the draft codes • Prepare and present the proposed codes at a public hearing with the Planning Commission • Present the proposed codes to the City Council • Make any final changes to the codes and provide them to the City in Word and PDF formats • Work with Staff on implementation of the codes, including training as needed for up to one year 10 5/24/2024 H KG1 Zoning and Subdivision Ordinance Revisions City of Arden Hills DELIVERABLES • Meeting materials as needed, including agendas, packet materials, and presentations • Complete drafts of the codes • Online content/website CITY RESPONSIBILITIES • Coordinate meeting scheduling • Attend at Staff, Planning Commission, and City Council meetings • Take formal minutes at meetings if required to meet City policies • Review and comment on drafts • Assist with web updates if City website is hosting project page 11 �HKGi ATTACHMENT B HKGi 2024 HOURLY RATES Rates by Professional Category Principal........................................... 5/24/2024 Zoning and Subdivision Ordinance Revisions City of Arden Hills $200-290/hr Associate................................................................ $150-200/hr Senior Professional ................................................ $110-160/hr Professional II .......................................................... $90-135/hr Professional I ............................................................ $50-90/hr Technical.................................................................... $50-90/hr Litigation Services Testimony ............ Incidental Expenses Mileage ................ Photocopying BW $250-350/hr $275-375/hr current federal rate/mile ...........................5R/page Photocopying Color....................................................25�/page Outside Printing .......................................................Actual Cost Large Format Scanning............................................Actual Cost Lodging and meals .................................................. Actual Cost 12 CONSENT ITEM - 8E 'It -731�EN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Jessica Jagoe, Community Development Director SUBJECT: 1475 Dawn Circle Variance Extension — Joshua and Carolyn Haberman Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motions to approve, table, or deny the following: • A 6-month extension until November 22, 2024 for the deadline to be issued City permits for the approved garage addition from Planning Case 23-008. Background On May 22, 2023, the City Council approved Planning Case 23-008 from Steve Petry of Advanced Drafting and Res. Design Inc. on behalf of property owners Joshua and Carolyn Haberman for a Variance at 1475 Dawn Circle. The Variance included decreasing the required total side yard setback from 25 feet to 20.33 feet for the construction of a garage addition. Conditions of approval include a requirement that a building permit shall be issued prior to the commencement of construction. The Variance approval automatically expires one year from and after the date on which the City Council granted such approval if permits are not issued. The one year deadline for issuance of a permit is May 22, 2024. The Applicants have stated that due to conditions outside of their control, it has been more difficult to get firm bids for the project. They now have signed a contract with a contractor, Becker Construction & Remodeling Inc., and will initiate construction as soon as scheduling allows. The Applicants are requesting a 6-month extension until November 22, 2024, for the issuance of applicable City permits. Budget Impact N/A Attachment Attachment A — Request for Extension Page 1 of I Attachment A I, Joshua Haberman, the Applicant for Planning Case PC 23-008, request an extension on the City Council's approval from May 22, 2023(pate of Approval). It is requested that the City Council consider an extension for 6 months (length of time), through Nov 23, 2024 (Date of Approval + length of time) to allow additional time for the issuance of a building permit for the approved improvements. The reason I am making this request is... Due to conditions outside of our control it has been more difficult to get firm bids on this project. We now have identified a contractor, and signed a contract with them. This contract requires them to provide firm estimates in advance of construction. We look forward to initiating construction as soon as scheduling allows. Firm is Becker Construction & Remodeling Inc. Builders License BC721013 Please note the attached agreement between the homeowners and Becker which calls for construction in Fall of 2024 as the last sentence in section 1. Scope of Work. Applicant Name Joshua Haberry9an Applicant Signature Date 21 May 2024 CONSENT ITEM - 8F ,`iRZEN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Jessica Jagoe, Community Development Director SUBJECT: Planning Case #24-008 — No Public Hearing Required Applicant: Kam and Jennifer Schmaltz Property Location: 1511 Dawn Circle Request: Variance Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Requested Action Motions to approve, table, or deny the following: • Adoption of Resolution 2024-029 for Planning Case 24-008 for a variance to decrease the required side yard setback for corner lots from 40 feet to 28.2 feet to construct an addition to the east elevation of an existing principal structure and attached garage on the property located at 1511 Dawn Circle ("Subject Property"). Background 1. Existing Site Conditions 1511 Dawn Circle, the Subject Property, is zoned R-1, Single Family Residential District. It is designated for Low Density Residential in the 2040 Comprehensive Land Use Plan. The Subject Property is the site of a single-family dwelling owned by the Applicant. All surrounding parcels are also zoned R-1, Single Family Residential District and designated for Low Density Residential Uses in the Land Use Plan. 2. Site Data 2040 Future Land Use Plan: LDR — Low Density Residential Existing Land Use: 1. Single Family Dwelling Zoning: R-1, Single Family Residential District Lot Size: 0.32 acres Page 1 of 8 3. Proposed Use The Applicant is requesting a variance to decrease the required side yard setback on a corner lot for the Subject Property from 40 feet to 28.2 feet. The Applicant is proposing a 12 foot by 36.5 foot garage addition to expand the existing attached garage width from 21.5 feet to 33.5 feet and allow for an addition to the upper floor of the principal structure. The addition would add 438 square feet to the existing attached garage and 386 square feet to the principal structure. The Subject Property is oriented with the front of the house and garage facing Dawn Circle and with driveway access off of Dawn Circle. The current attached garage is located 40.2 feet from the east side yard property line along Norma Avenue. Section 1320.06 of the Arden Hills City Code requires a side yard setback of 40 feet on corner lots. According to the Applicant's narrative, the existing principal structure and attached garage have limited storage space. The Applicant considered other ways to add storage to the property but due to the principal structure and attached garage layout on the parcel and city zoning requirements applicable to the property, the addition to the east elevation was identified as the desired solution. The proposed attached garage addition would provide for a third car stall and more accessible storage for the property. It would also permit for a principal structure upper -level addition that would include a bedroom and an office. The Applicant has provided elevations for the proposed addition. Two exterior elevation options are shown, the first without an additional dormer window and the second with an additional dormer window on the upper level. The Applicant will finalize the design following the review of their variance application. The included floor plans and square footage for the principal structure addition are for the design without the dormer window. The Applicant is seeking as part of the variance review to be able to construct either option. The Applicant is requesting a variance for flexibility from the 40 foot side yard setback required for corner lots to construct the proposed addition with a 28.2 side yard setback. The Subject Property was developed in 1984 and today is a conforming lot for the side yard setback for corner lots. The proposed garage addition would meet applicable building codes and all other regulations in the R-1 District. The Applicant would not be able to construct the proposed principal structure and attached garage addition without a variance. 4. Approvals The City Council is being asked to determine if a variance request for flexibility on the side yard setback of a corner lot should be approved. The submitted survey shows the location of the proposed attached garage addition. The evaluation of the proposal should be based on the District Provisions in Section 1320 and the Requirements for a Variance in Section 1355.04, Subd. 4. At their May 8, 2024 meeting, the Planning Commission reviewed the variance request on the Subject Property. After discussion, the Planning Commission voted to recommend approval with conditions by a 7-0 vote. Page 2 of 8 Plan Evaluation Chapter 43, Zoning Regulations Review 1. District Provisions (R-1 Single Family Residential District) —Section 1320.06 Lot Size and Dimensions — Meets Requirements The Subject Property was constructed in 1984 with a lot area of 14,087 square feet (Attachment D). Section 1320 — District Provisions of the Zoning Code requires a minimum lot size of 14,000 square feet per single-family dwelling unit. Structure Setbacks — Variance Requested In the R-1 District, the minimum front and rear setback requirements are 40 feet and 30 feet, respectively. The current principal structure and attached garage is located 40 feet from the front yard property line (i.e. Dawn Circle) and is located 58.5 feet from the rear yard property line, with an attached deck located 38.2 feet from the rear property line. The minimum side yard setback in the R-1 District is 10 feet and 25 feet combined. Additionally, the minimum side yard setback on a corner lot in all residential zoning districts is 40 feet. The current principal structure and attached garage is located 40.2 feet from the side yard property line as measured from Norma Avenue. The proposed attached garage addition would be setback 28.2 feet from the east side yard property line. Existing Proposed Gara a Addition Front Setback 40 feet 40 feet Rear Setback 58.5 58.5 feet Side Yard Corner East 40.2 feet 28.2 feet Side Yard West 10 feet 10 feet not impacting) Side Yard Total Both Side Yards 50.2 feet 38.2 feet Page 3 of 8 Proposed Site Plan �f 8Ir �+p/y pry r�r yhT 7{� {y /y .7C79-3 ,4l " 1 05.00 $� x S � y'L J � 'J rt I I L - 1. a 6.5 r $„ED 2 r 7.3 I �,p 11y J S a ^CD ............. 1, CD I GATE ti ? CANT. Proposed Side 20.2 Yard Setback ac,� --� _ tom:-- �,•' ez9.i : E aSTING p x HOUSE w Q H q 51%7 y � 93:9 a 4�.a � GARAGE CE I Existing Side Yard Setback ° `.I ,� zi,s t3-0 xietn p35 or ;".. {' ------ O 9�ow .• O � �rP � 937.3 .�� I [�� 4i1 , _ [[yyri // i ir']�"BB Dawn Circle Landscaped Area — Meets Requirements In the R-1 District, the minimum landscaped area required without a variance is 65% of the property or 9,156.55 square feet. The Subject Property has an existing landscaped area of 10,456 square feet or 74.22%. The proposal, including the garage addition and proposed driveway addition, would decrease the total landscaped area by 765 square feet to 9,691 square feet, or 68.79% percent of the property. Structure Coverage — Meets Requirements The R-1 District allows for a maximum structure coverage of 25% or 3,521.75 square feet of the Subject Property. The existing structure coverage is 2,697 square feet or 19%. The proposed addition would increase the total structure coverage by 438 square feet for a total of 3,135 square feet, or 22.25% of the Subject Property. Page 4 of 8 Floor Area Ratio — Meets Requirements The R-1 District permits for a maximum floor area ratio of .3. Floor area is calculated as the sum of the gross horizontal area of all floors of a building as measured in square feet from the exterior walls, but not including decks; space where the average floor -to -ceiling height is less than six feet; attached or detached garages; and other detached accessory structures. For the Subject Property, the maximum floor area permitted is 4,226.1 square feet. The existing floor area for the lot is 3,550 square feet and the floor area ratio is .252. The proposed addition includes an upper level principal structure addition above the attached garage addition which would increase the property's floor area by 386 square feet for a total of 3,936 square feet and a floor area ratio of .279. This calculation is based on the design option without the additional dormer window. The Applicant has stated that the design option with the additional dormer window would increase the property's floor area by an additional 52 square feet for a total increase of 438 square feet. The total floor area would be 3,988 square feet and the floor area ratio would be .283. Square footage will be confirmed during the building permit application review. 2. Variance Review The role of the City Council is to determine and consider how the facts presented to them compare with the city's articulated standards. The Council should base their decision on the facts presented and then apply those facts to the legal standards contained in city ordinances and relevant state law. Neighborhood opinion alone is not a valid basis for granting or denying a variance request. While the City Council may feel their decision should reflect the overall will of the residents, the task in considering a variance request is limited to evaluating how the variance application meets the statutory practical difficulties factors. Residents can often provide important facts that may help in addressing these factors, however, unsubstantiated opinions and reactions to a request do not form a legitimate basis for a variance decision. The City Council may impose conditions when granting variances as long as the conditions are directly related and bear a rough proportionality to the impact created by the variance. For instance, if a variance is granted to exceed the front setback limit, any conditions attached should presumably relate to mitigating the effect of the encroachment. 3. Variance Requirements — Section 1355.04, Subd. 4 The Applicant requests a variance to construct an addition to the east elevation of their existing principal structure and attached garage that would impede on the required side yard setback on a corner lot in the R-1, Single Family Residential District. The City Council will need to make a determination utilizing the following variance findings and criteria on whether there are practical difficulties with complying with the zoning regulations. If the Applicant does not meet all the factors of the statutory test, then a variance should not be granted. Variances are only permitted when they are in harmony with the general purposes and intent of the ordinance. Purpose and Intent. The variance request shall comply with the purpose and intent of the provisions of the City's Zoning Regulations and with the policies of the City's Comprehensive Plan. The variance request for 1511 Dawn Circle is for a proposed attached garage and upper level addition. The Subject Property is zoned R-1, Single Family Residential District and is guided as Low Density Residential on the Land Use Plan. Page 5 of 8 2. Practical Difficulties. The Applicant for a variance shall establish that there are practical difficulties in complying with the provisions of the Arden Hills Zoning Regulations. The term "Practical Difficulties" as used in the granting of a variance means: a. Reasonable Use. The property owner proposes to use the property in a reasonable manner not permitted by the Zoning Ordinance. According to the Applicant, the proposed principal structure and attached garage addition would provide for residential living and storage space in line with the existing use of the property as a single-family dwelling. The addition of these spaces on the property would not be permitted by the Zoning Ordinance. b. Unique Circumstances. The plight of the property owner is due to circumstances unique to the property not created by the landowner. According to the Applicant, the property is on a corner lot which was not a circumstance created by the Applicant. Corner lots have a required 40 foot side yard setback which is greater than the 10'/25' required for non -corner lots within the R-1 zoning district. On a non -corner lot, the attached garage addition would conform with the R-1 requirements. c. Character of Neighborhood. The variance, if granted, will not alter the essential character of the neighborhood. According to the Applicant, there would be no alteration to the character of the City or neighborhood. The Subject Property with the proposed addition would remain a residential single-family home and have the same look and feel as the existing Subject Property. 3. Economic Consideration. Economic consideration alone does not constitute a practical difficulty. The Applicant states that while the proposed project would increase the value of the home, this has no bearing on the reason for the variance request. 4. Access to Sunlight. Inadequate access to direct sunlight for solar energy systems shall be considered a practical difficulty. A solar energy system is not proposed. Additional Reviews Building Official The Building Official has reviewed the plans and has no additional comments at this time. A Building Permit along with a complete plan set for review will be required prior to any construction taking place. Public Works Director/City Engineer The Public Works Director/City Engineer has reviewed the plans and confirmed the proposed addition is outside of the clear vision area. No additional comments at this time. Page 6 of 8 Findings of Fact The Planning Commission reviewed this application at their May 8, 2024 meeting and have offered the following findings for your consideration: General Findings: 1. City Staff received a land use application for a variance request to the required R-1 Zoning District side yard setback for corner lots at the Subject Property 1511 Dawn Circle. 2. A single-family dwelling is a permitted use within the R-1 Zoning District. 3. The Applicant states that the proposed addition will not impede sight lines from the roadways. 4. The proposed addition would have a decreased side yard setback for a corner lot of 28.2 feet. Variance Findings: 1. Variances are only permitted when they are in harmony with the general purposes and intent of the ordinance. 2. The proposed addition would not alter the essential character of the neighborhood because the proposed design will look and feel consistent with the existing structure. 3. The variance request is not based on economic considerations alone. Options and Motion Language The Planning Commission reviewed this application at their May 8, 2024 meeting. At that time, they recommended approval with conditions of Planning Case 24-008 to decrease the required side yard setback for corner lots from 40 feet to 28.2 feet to allow for the construction of a 12 by 36 foot addition at 1511 Dawn Circle by a 7-0 vote. The following are motion language options for the City Council to consider. • Approval with Conditions: Motion to adopt Resolution 2024-029, approving Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the findings of fact and the submitted plans, as amended by the conditions in the May 28, 2024, Report to the City Council: 1. A Building Permit shall be issued prior to commencement of construction. 2. A Zoning Permit shall be issued for the driveway expansion. 3. The proposed building addition shall conform to all other standards and regulations in the City Code. • Approval as Submitted: Motion to adopt Resolution 2024-029, approving Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the findings of fact and the submitted materials in the May 28, 2024, Report to the City Council. • Denial: Motion to deny Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the following findings: findings to deny should specifically reference the reasons for denial and why those reasons cannot be mitigated. Page 7 of 8 • Table: Motion to table Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle: a specific reason and information request should be included with a motion to table. Notice Although a variance does not require a public hearing, a public meeting notice was prepared by the City and mailed to properties within 500 feet of the Subject Property on May 15, 2024. A public meeting notice for this planning case was published in the Pioneer Press on May 16, 2024. Minnesota statute does not clearly require a public hearing before a variance is granted or denied, however, after consulting with the City Attorney, staff agree that the best practice is to allow public forum on all variance requests. A public forum allows the city to establish a record and elicit facts to help determine if the application meets the practical difficulties factors. Staff has received one written comment in support of this proposal as of May 22, 2024. Deadline for A2ency Actions The City of Arden Hills received the completed application for this request on April 10, 2024. Pursuant to Minnesota State Statute, the City must act on this request by June 8, 2024 (60 days), unless the City provides the petitioner with written reasons for an additional 60-day review period. Attachments A. Land Use Application B. Location Map C. Variance Request Letter D. Certificate of Survey E. Floor Plans F. Elevation Options G. Planning Commission Memo H. Draft Planning Commission Minutes I. Resolution 2024-029 J. City Council Presentation Page 8 of 8 Attachment A 'It ,ARPEN HILLS 1245 West Highway 96 Arden Hills, Minnesota 55112 Telephone (651) 792-7800 Fax (651) 634-5137 www.cityofardenhills.org Planning Case No. 24- Submittal Date _ Application Completed Date _ Accepted by Receipt Number Council Decision Council Decision Date 2024 LAND USE APPLICATION Appiicant Information Applicant: Kam and Jennifer Schmaltz---------_.._.__--__-- -----_ ____-- ----- --- ---. _ Address: 1511 Dawn Circle, Arden Hills MN 55112 Telephone No • 608-628-7496 Other: 608-628-5846 Fax No,: Email Address: jen.schmaltz@gmail.com Property Information Propertv Owner: Kam and Jennifer Schmaltz OwnerAddress: 1511 Dawn Circle, Arden Hills MN 55112 Owner Telephone No 608-628-7496 Other. 608-628-5846 Address of property involved: 1511 Dawn Circle, Arden Hills MN 55112 Legal Description: Bnarknoll Plat Two Lot 6 Blk 3 Property lD No,: 223023320057 Type of Use: Residential Zone: R 1 Property Acreage: 0.32 Type of Request ❑ Comprehensive Plan Amendment (Fee: $550 + Escrow: $2,500) ❑ Conditional Use or Interim Use Permit/CUP or IUP Amendment (Fee: $400 + Escrow: $1,500) ❑ Preliminary Plat (Fee: $500 + Escrow: $2,500) ❑ Final Plat (Fee: $450 + Escrow: $1,000) ❑ Concept Plan Review (Fee: $300 + Escrow: $750) ❑ Master Planned Unit Development or Master Special Development Plan (Fee: $600 + Escrow: $2,500) ❑ Final Planned Unit Development or Final Special Development Plan (Fee: $350 + Escrow: $2,000) ❑ Rezoning or TCAAP Regulating Plan Amendment (Fee: $500 + Escrow: $f,500) ❑ Zoning Code or TCAAP Redevelopment Code Amendment (Fee: $400 + Escrow: $1,500) ❑ City Code Amendment (Fee: $350 + Escrow. $1,500) ❑ Lot Split/Minor Subdivision (R-1 and R-2 Districts Only) (Fee: $350 + Escrow: $1,500) ® Variance or Permitted Adjustment (Fee: $350 + Escrow: $1,000) ❑ Vacation of Easement or Right -of -Way (Fee: $150 + Escrow: $1,000) ❑ Appeal of Administrative Decision (Fee: $150 + Escrow: $1,000) ❑ Planned Unit Development Amendment or Special Develo ment Plan Amendment (Fee: $400 + Escrow: ❑ Land Use Requests — Not Already Specified (Fee: $1,5Z $150+ Escrow: $1,000 ❑ Site Plan Review (Fee: $450 + Escrow: $1,500) Page 1 of 3 Brief Description of Request �olease also include a twed detailed letter exaiainina the proiect3_ _ We would like to add a third garage stall to the east, adjacent to the existing two garage stalls. This would allow us space to store another car as we have children that will be approaching driving age. This would also allow us for much needed garage storage space, as our house currently has minimal storage space. We would also like to add another bedroom and office above the garage to up with our family size plus the post-COViD demands of working from home. *IMPORTANT* • Certain applications are subject to review and approval by the Rice Creek Watershed District. Contact RCWD directly at 763-398-3070 for additional information. ® The land use application fees do not cover building, sign, or other permit fees that may be required upon approval of a land use application. ® All applications will be subject to additional fees for reimbursement of consultant costs associated with filing, reviewing, and processing of application in the form of an escrow to the City. Filing & Information Requirements The City requests that you make a pre -application meeting with the Community Development Director to discuss the application process, requirements, and deadlines. Unless waived by the Community Development Director or Planning Commission, a certified survey of the property is required for all applications. A checklist with additional application requirements can be found at www.citvofarde n h i I Is. org/land u sea ppl icatio n s. Under Minnesota Statute, Chapter 15.99, cities have 15 business days to review all plans and application materials to ensure they satisfy City requirements. During the 15 day review period, planning staff will provide written comments on the application and may request plan revisions. If the application is determined to be complete, Minnesota State Statute then requires the City to approve or deny the application within 60 days, up to 120 days. If not complete, the City may require plan revisions and/or additional information before the application is scheduled for Planning Commission review and/or City Council action. Project will not be scheduled for any meeting until the application submittal is found to be complete by the Community Development Director. The undersigned acknowledges that she/he understands that before a land use application can be deemed complete, all required fees and escrows must be paid to the City. The applicant is responsible for all costs incurred by the City related to the processing of this application. Each separate land use request shall be charged a separate administrative fee and escrow even if submitted on the same application. Costs expended in reviewing and processing an application will be charged against the cash escrow and credited to the City. Charges to the escrow may include planning and engineering staff time, City Attorney and consulting fees, and mailing costs. If, at any time, a required cash escrow is depleted to less than 20 percent of its original amount, the applicant shalt deposit additional funds in the cash escrow account as determined by the City. The City may withhold final action on a land use application, withhold building permits, and/or rescind prior action until all fees have been paid. Unused portions of an escrow are returned to the applicant upon successful implementation of an approved plan. The escrow may be reduced or increased by the Community Development Director on a project by project basis. Notice of Meeting Attendance In order for the Planning Commission and the City Council to consider any application, the applicant or a designated representative must be present at the scheduled meeting. If not, the matter may be tabled until the next available agenda. Page 2 of 3 IVleetinci Schedule Planning Commission meetings are typically held on the first Wednesday after the first Monday of each month at 6:30 PM, though please contact City Hall to verify the meeting date and time. City Council meetings are held typically the last Monday of the same month at 7:00 PM. Meetings are held in the Council Chambers at the City of Arden Hills, 1245 West Highway 96, Arden Hills, Minnesota 55112, unless otherwise stated. The schedules below are for reference purposes only. Project will not be scheduled for any meeting until the application submittal is found to be complete by the Community Development Director. 2024 Planning Commission and City Council Schedule (*subject to change) TENTATIVE PLANNING COMMISSION MEETING DATE* (Generally held on the first Wednesday after the first at 6:30 _m_ TENTATIVE CITY COUNCIL MEETING DATE* (Generally held on the fourth Monday at 7:00 p.m.) DEADLINE FOR LAND USE APPLICATION SUBMISSION (1st day of the preceding month} nnua 3 February12 December 1 2023 February 7 March 11 January 2 March 6 April 8 Februa 1 A ri13 bF Aril 22 March 1 May 8 May 27* AprilI June 5 June 24 May 1 Jul 3* Jul 22 June 3 Au ust 7 Au August 26 Jul 1 September 4 September 23 August 1 October 9 October 28 September 2 November 6 November 25 October 1 December 4 January 13 (2025) November 1 Acknowledsaernent and Signature I hereby apply for the above consideration and declare that the information and materials submitted with this application are complete and accurate per city code and ordinance requirements. i fully understand that I am responsible for all costs incurred by the City related to the processing of this application. rroperty owner bignature (Required) 3129/2024 Date Applicant Signature (If different than the property owner) Date Please contact the Community Development Director at 651-792-7800 if you have any questions regarding this application. Additional copies of this application form are available on the City's website. www.citvofardenliills oigllandciseapplications Page 3 of 3 4/23/2024, 3:36:07 PM - -' Personal Property 1:2,400 Tax Parcels -•� Cities R❑ County Offices 0.03 0.06 0.11 mi 0.04 0.09 0.17 km Ramsey County Ramsey County MN Attachment C March 29, 2024 Arden Hills Planning Commission 1245 W Highway 96 Arden Hills, MN 55112 Dear Arden Hills Planning Commission: Thank you very much for your consideration of our project at 1511 Dawn Circle, Arden Hills MN 55112. We originally purchased our home in 2012 and in those 12 years our family has grown and needs have changed. We do not want to move as we love our home, neighborhood and the city of Arden Hills so we are very excited at the prospect of an addition to our home that will allow our home to meet the needs of our family. Here is a brief description of our project: 1. Add a third car garage stall, adjacent to the existing two car garage stall. - We plan to make the third garage stall the full length of the house. This will provide us with much needed storage space for another car as well as meet general storage needs. Currently our home has almost zero storage space, apart from an attic above our current garage that is not easily accessible. All other home space is finished square footage with no storage space in the utility room. As such, we would utilize the back half of the third garage stall for shelving and space for recreational items like bikes and lawn equipment. Our oldest child is now 12, so it won't be long until we will likely have a third vehicle to utilize the newly added garage. This is preferred to storing a car in the driveway or on the street which isn't always visually appealing to neighbors and can be difficult to maneuver around. 2. Add a fourth bedroom upstairs above the garage. - When we moved into our home in 2012 we only had one child so three bedrooms upstairs was sufficient. Now we have three children (ages 8, 10 and 12). We would love to have a fourth bedroom upstairs to allow for all three children to have their own bedroom, which will be very nice as we approach the drama -filled teenage years. 3. Add an office upstairs above the garage. - When we moved into our home in 2012, we both worked in offices outside of the home. Now post-COVID, we both work from home. We need space for another office to make working from home a more practical solutions for both us and for our employers. Our home is on a corner lot. To add the third car garage stall, we would need to expand east approximately 12' from where our existing home ends. This would not allow for the required 40' setback from the edge of our property to the corner, thus the variance request. Our land survey has confirmed that the planned addition would reduce the 40' setback to 28.2'. This would be the only variance we would need to request as we have reviewed the remaining code requirements for properties in the R-1 district and we would maintain compliance with these requirements. The ratio calculations after the proposed addition would be as follows: 1. Min Landscape Lot Area: 68.8% - This is over the 65% minimum, as confirmed by our Land survey with 31.2% covered by impervious surface Impervious = 4,396 sq ft / 14,087 sq ft 2. Lot Covered by Structure: 22.3% - This is under the 25% maximum, with measurements confirmed by our Land survey. - Structure = 3,135 sq ft / 14,087 sq ft 3. Floor Area Ratio: 27.9% - This is under the 30% maximum, calculated using the following measurements: o Main floor area —1,292 sq ft o Lower level sq feet — 1,292 sq ft o Upper floor sq feet (existing) — 966 sq ft o Upper floor sq feet (new addition) — 386 sq ft - Floor Area = 3,936 sq ft / 14,087 sq ft In addition to the code requirements noted above, we also considered the 6 "hardship criteria" in relation to our proposed project: 1. The property in question cannot be put to reasonable use if used under conditions allowed by the official controls. - Within the official controls, we cannot expand our home east to add the third garage stall. There is no other space on our property that would allow for the addition of a third garage stall within the official controls. In addition, without the third garage stall we would be unable to add an office and a bedroom above our existing two car garage. 2. The plight of the landowner is due to circumstances unique to the property not created by the landowner. - Our home is on a corner lot, which is unique to the property and not created by us. 40' on the corner lot side is much more than the 10/25' required for non -corner R-1 district homes. If we were on a non -corner lot, adding the third car garage stall would conform to the current R-1 requirements. 3. The deviation from the Ordinance with any attached conditions will still be in keeping with the spirit and intent of the Ordinance. This property addition would not impede visibility for drivers and would still provide a total setback of 28.2' feet (not including the additional portion of the yard beyond our property line). 4. The variance will not create a land use not permitted in the zone With the variance, our property would continue to be a residential single family home and we would not create any land use that is not permitted. The home would not be used for any other purpose. 5. The variance will not alter the essential character of the City - There would be no alteration to the character of the City. The home would remain a residential single family home. As the drawing portrays, the home has the same look and feel as it previously did, it would simply have more usable square footage. We are confident that this would increase the value of our property which would not only benefit us, but also the city of Arden Hills. 6. The variance is not for economic reasons alone - While our proposed project would increase the value of our home, this has no bearing on the reason for this request. The cost of the project to us would likely exceed the increased home value, but we would like to do this to maximize the usable space for our family. We have a great contractor, Barton Construction, that we would hire to perform the work. They have done several projects for us in the past and we have been very pleased with the results. We had an initial meeting with them where they indicated that this project makes a lot of sense given our current home layout. We are also currently working with Meyer Design Service, who drew up our initial set of plans and elevations. We would hire them to draw up the full set of plans upon approval. Because we would have high quality professionals complete this project for us, we know that this project would go smoothly and would be done in a reasonable timeframe. We have seen third car garage additions in our neighborhood that go uncompleted for many many months and so we are committed to ensuring that would not be the case with our project. The one design element that still is being flushed out is whether we want to include a third dormer window in the front of the house as that seems to be the only way to get natural light to the office addition. There are two elevation options we are considering, which is shown in the elevation pictures submitted. These are labeled Option 1 and Option 2. We believe either option looks visually appealing and fits with the character of the house. We plan to finalize this decision if our variance request is approved and at that point more detailed construction plans will be drawn up. We would be happy to address any additional questions you may have related to our project and want to thank you again for our consideration of our proposed project. Sincerely, Kam and Jennifer Schmaltz 608-628-7496 (Jennifer) 608-628-5846 (Kam) CERTIFICATE OF SURVEY 20 -for- KAM AND JENNIFER SCHMALTZ -of- 1511 DAWN CIRCLE ARDEN HILLS, MN 1-V g36 S89037'2111W 105.00 9345 GRAPHIC S ° 10 , Attachment D 1 INCH = 20 FEET q3y' "p -9.�6........... u.............. FN�l 1 � 0 1 �F---- o --il-------�- ---- I I i i 91.3- ;a1il ...... I z10F 31 FA .............................. N.............`o LzwU SHED 934 WLAQ 7.3 (7 L_U .. I.rn...... d o 9 IA Q I z J�� M 932 I Q r 3 m Ln I� �- 931.J- ;�--------- ----"f 932.71 0 D 0.4 I �`•� I �, DECK I I GATE �� . [ 93d. CANT. ❑�❑� r7 ~ 54.8 s3-�� -------- 28.2--------� - _ 10.0 o, 40.2 ---T---� 929.1 � 06 N EXISTING ti G z I I :A O HOUSE W O 0~ 932.3 00 x 9321 .2 o .o / GARAGE a Q i� 93oII� 33.3 FLOOR -932 8 In'? goo 9�ti� I PORCH O/ s3 i I 12.0 x932.0 932.0 x •xL Y _ �ti.. 93ti. 2g 32.: ,L, w ..........I .............' '.932'- �� 3 Lit 5 931.8 "(� I 319 �'... zU<0 ao Ln 0� `1- 1 Lu,o I - Ig "'O 0 9`?0 . 93o.a I e N89041 '28' E ' ...: 84.96 19 92g kD DA WN CIRCLE 10 1335 9� - 0.4 g32 5 Q ko 1 ;2931.8 is' ^� ylQti� O x 931.8 931.6 x� w � / r i i 931,2 O 931 0 ti iv I 00 0 o. Q "� gw q � M. IMPERVIOUS SURFACE CALCULATIONS 60 60 933.5 NORTH TOTAL LOT AREA ....................................... 14,087 S.F. v^y (0.32 Acres) EXISTING HOUSE,GARAGE,CANT................. 1,794 S.F. EXISTING DECK ......................................... 666 S.F. EXISTING PORCH ....................................... 185 S.F. T EXISTING CONCRETE .................................. 865 S.F. EXISTING SHED ......................................... 52 S.F. rrr SURVEY NOTES EXISTING WALLS ....................................... 69 S.F. TOTAL IMPERVIOUS SURFACE ..................... 3,631 S.F. LEGEND - Field survey was completed by E.G. Rud PERCENT IMPERVIOUS ................................ 25.8% DENOTES IRON MONUMENT FOUND and Sons, Inc. on 03/26/24. O DENOTES IRON MONUMENT SET - Bearings shown are on Ramsey County EXISTING HOUSE,GARAGE,CANT................. 1,794 S.F. datum. EXISTING DECK ......................................... 666 S.F. 38( 800.0 DENOTES PROPOSED ELEVATION - Parcel ID Number: 22-30-23-32-0057. EXISTING PORCH ....................................... 185 S.F. X1011.2 DENOTES EXISTING ELEVATION - Curb shots are taken at the top and back of EXISTING CONCRETE .................................. 865 S.F. DENOTES DIRECTION OF DRAINAGE curb. EXISTING SHED ......................................... 52 S.F. AC DENOTES AIR CONDITIONING UNIT - This survey was prepared without the EXISTING WALLS ....................................... 69 S.F. ❑E DENOTES ELECTRICAL BOX benefit of title work. Additional easements, PROPOSED ADDITION ................................. 438 S.F. © DENOTES GAS METER restrictions and/or encumbrances may exist PROPOSED DRIVEWAY ................................ 327 S.F. © DENOTES CABLE PEDESTAL other than those shown hereon. Survey TOTAL IMPERVIOUS SURFACE ..................... 4,396 S.F. ❑T DENOTES TELEPHONE PEDESTAL subject to revision upon receipt of a current PERCENT IMPERVIOUS ................................ 31.2% '0' title commitment or an attorney's title DENOTES HYDRANT opinion. HOUSE NOTES X DENOTES FENCE ❑ - DENOTES WOOD FENCE * BUILDER TO VERIFY HOUSE DIMENSIONS, SEWER DEPTH <Dcx::-�. DENOTES RETAINING WALL BENCHMARK AND FOUNDATION DEPTH. * DRIVEWAYS ARE SHOWN FOR GRAPHIC PURPOSES ONLY. .. DENOTES EXISTING CONTOURS BENCHMARK: RAMSEY COUNTY FINAL DRIVEWAY DESIGN AND LOCATION TO BE F-- DENOTES BITUMINOUS SURFACE BENCHMARK 9059 DETERMINED BY CONTRACTOR. L_ - - ELEVATION: 962.42 (NAVD88) * FINISHED GRADE ADJACENT TO HOME SHALL BE 0.5 FEET F__ - - BELOW TOP OF BLOCK EXCEPT AT DRIVEWAY AND PATIO. - - DENOTES CONCRETE SURFACE Lot 6, Block 3, BRIARKNOLL PLAT TWO, Ramsey County, Minnesota. I hereby certify that this plan, survey or report was prepared by DATUM: Ramsey JOB NO. 240249AB = E. G. HUD SONS INC. REVISIONS SCALE: 1" - 20 ' me or under my direct supervision and that I am a duly Licensed & esT,sn Land Surveyor under the laws of the State of Minnesota. Professional Land Surveyors 04-05-24 REVISED IMPERVIOUSCALCS RAF DATE: 03-28-24 6776 Lake Drive NE, Suite 110 rNO. DRAWN BY: RAF innesot License No. 41578 Lino Lakes, MN 55014 ,,:JBy: Dated 5th day of Ap 024• Tel. (651) 361-8200 Fax (651) 361-8701 www.egrud.com 6-3 CREW: CB/BJ DATE DESCRIPTION B, Attachment E GARAGE ADDITION S.F, = 438 UPPER FLOOR ADDITION SCALE: 1/4" • I'-0" NEW SQUARE FOOTAGE • 386 NEW SOUTH ELEVATION NEW SOUTH / EAST ELEVATION EXISTING SOUTH ELEVATION Attachment F Elevation Options Option 1: NEW SOUTH ELEVATION I NEW SOUTH / EA5T ELEVATION Option 2: NEW E,46T ELEVATION 2 NEW EAST ELEVATION 2 Attachment G PC Agenda Item — XX ,`iRZEN HILLS MEMORANDUM DATE: May 8, 2024 TO: Planning Commission Chair and Commissioners FROM: Elena Fransen, Senior Planner SUBJECT: Planning Case #24-008 — No Public Hearing Required Applicant: Kam and Jennifer Schmaltz Property Location: 1511 Dawn Circle Request: Variance Requested Action Kam and Jennifer Schmaltz ("Applicant") has requested a variance to construct an addition to the east elevation of an existing principal structure and attached garage on the property located at 1511 Dawn Circle ("Subject Property"). The Applicant has requested a variance to decrease the required side yard setback for corner lots from the minimum requirement of 40 feet to 28.2 feet. The Applicant is proposing a 12 foot by 36.5 foot garage addition to expand the existing attached garage width from 21.5 feet to 33.5 feet and allow for an addition to the upper floor of the principal structure. The addition would add 438 square feet to the existing attached garage and 386 square feet to the principal structure. Background 1. Existing Site Conditions 1511 Dawn Circle, the Subject Property, is zoned R-1, Single Family Residential District. It is designated for Low Density Residential in the 2040 Comprehensive Land Use Plan. The Subject Property is the site of a single-family dwelling owned by the Applicant. All surrounding parcels are also zoned R-1, Single Family Residential District and designated for Low Density Residential Uses in the Land Use Plan. 2. Site Data 2040 Future Land Use Plan: LDR — Low Density Residential Existing Land Use: Single Family Dwelling Zoning: R-1, Single Family Residential District Lot Size: 0.32 acres Page 1 of 8 3. Proposed Use The Applicant is requesting a variance to decrease the required side yard setback on a corner lot for the Subject Property from 40 feet to 28.2 feet as measured from the portion of the proposed attached garage addition. The Subject Property is oriented with the front of the house and garage facing Dawn Circle and with driveway access off of Dawn Circle. The current attached garage is located 40.2 feet from the east side yard property line along Norma Avenue. Section 1320.06 of the Arden Hills City Code requires a side yard setback of 40 feet on corner lots. According to the Applicant's narrative, the existing principal structure and attached garage have limited storage space. The Applicant considered other ways to add storage to the property but due to the principal structure and attached garage layout on the parcel and city zoning requirements applicable to the property, the addition to the east elevation was identified as the desired solution. The proposed attached garage addition would provide for a third car stall and more accessible storage for the property. It would also permit for a principal structure upper -level addition that would include a bedroom and an office. The Applicant has provided elevations for the proposed addition. Two exterior elevation options are shown, the first without an additional dormer window and the second with an additional dormer window on the upper level. The Applicant will finalize the design following the review of their variance application. The included floor plans and square footage for the principal structure addition are for the design without the dormer window. The Applicant is seeking as part of the variance review to be able to construct either option. The Applicant is requesting a variance for flexibility from the 40 foot side yard setback required for corner lots to construct the proposed addition with a 28.2 side yard setback. The Subject Property was developed in 1984 and today is a conforming lot for the side yard setback for corner lots. The proposed garage addition would meet applicable building codes and all other regulations in the R-1 District. The Applicant would not be able to construct the proposed principal structure and attached garage addition without a variance. 4. Approvals The Planning Commission is being asked to determine if a variance request for flexibility on the side yard setback of a corner lot should be approved. The submitted survey shows the location of the proposed attached garage addition. The evaluation of the proposal should be based on the District Provisions in Section 1320 and the Requirements for a Variance in Section 1355.04, Subd. 4. Plan Evaluation Chapter 13, Zoning Regulations Review 1. District Provisions (R-1 Single Family Residential District) —Section 1320.06 Lot Size and Dimensions — Meets Requirements Page 2 of 8 The Subject Property was constructed in 1984 with a lot area of 14,087 square feet (Attachment D). Section 1320 — District Provisions of the Zoning Code requires a minimum lot size of 14,000 square feet per single-family dwelling unit. Structure Setbacks — Variance Requested In the R-1 District, the minimum front and rear setback requirements are 40 feet and 30 feet, respectively. The current principal structure and attached garage is located 40 feet from the front yard property line (i.e. Dawn Circle) and is located 58.5 feet from the rear yard property line, with an attached deck located 38.2 feet from the rear property line. The minimum side yard setback in the R-1 District is 10 feet and 25 feet combined. Additionally, the minimum side yard setback on a corner lot in all residential zoning districts is 40 feet. The current principal structure and attached garage is located 40.2 feet from the side yard property line as measured from Norma Avenue. The proposed attached garage addition would be setback 28.2 feet from the east side yard property line. Proposed Site Plan r- .. 8 S69ryry y 105.00 1 4�'�.r4�- 1P....... y{+ I 41 Y �x ........... ° SHED r 34 ......... ' I n I . W q 9"3? ............ i•r]+------------- vu.] IDECK GATE +k CANT, y NA era,i - E7QSTINC, i' C Z t'] I HOUSE � o ate, p a f ■ GfiRAGE y q f 9 Xz�- 37,1JJ FLOOR ' PORCH o i3A O •� -p44 6..O ma��• Za _ ,. O � _ FlP.y . . DS R 1ti� ye_ �R "A.. Dawn Circle L --T ti $3y.5 p�J O �- 0.4 CD �y V LL CD y : g,0 Proposed Side Yard Setback Existing Side Yard Setback Page 3 of 8 Existing Proposed Gara a Addition Front Setback 40 feet 40 feet Rear Setback 58.5 58.5 feet Side Yard Corner East 40.2 feet 28.2 feet Side Yard West 10 feet 10 feet not impacting) Side Yard Total Both Side Yards 50.2 feet 38.2 feet Landscaped Area — Meets Requirements In the R-1 District, the minimum landscaped area required without a variance is 65% of the property or 9,156.55 square feet. The Subject Property has an existing landscaped area of 10,456 square feet or 74.22%. The proposal, including the garage addition and proposed driveway addition, would decrease the total landscaped area by 765 square feet to 9,691 square feet, or 68.79% percent of the property. Structure Coverage — Meets Requirements The R-1 District allows for a maximum structure coverage of 25% or 3,521.75 square feet of the Subject Property. The existing structure coverage is 2,697 square feet or 19%. The proposed addition would increase the total structure coverage by 438 square feet for a total of 3,135 square feet, or 22.25% of the Subject Property. Floor Area Ratio — Meets Requirements The R-1 District permits for a maximum floor area ratio of .3. Floor area is calculated as the sum of the gross horizontal area of all floors of a building as measured in square feet from the exterior walls, but not including decks; space where the average floor -to -ceiling height is less than six feet; attached or detached garages; and other detached accessory structures. For the Subject Property, the maximum floor area permitted is 4,226.1 square feet. The existing floor area for the lot is 3,550 square feet and the floor area ratio is .252. The proposed addition includes an upper level principal structure addition above the attached garage addition which would increase the property's floor area by 386 square feet for a total of 3,936 square feet and a floor area ratio of .279. This calculation is based on the design option without the additional dormer window. The Applicant has stated that the design option with the additional dormer window would increase the property's floor area by an additional 52 square feet for a total increase of 438 square feet. The total floor area would be 3,988 square feet and the floor area ratio would be .283. Square footage will be confirmed during the building permit application review. 2. Variance Review The role of the Planning Commission is to determine and consider how the facts presented to them compare with the city's articulated standards. The Commission should base their decision on the facts presented and then apply those facts to the legal standards contained in city ordinances and relevant state law. Neighborhood opinion alone is not a valid basis for granting or denying a variance request. While the Planning Commission may feel their decision should reflect the overall will of the residents, the task in considering a variance request is limited to evaluating how the variance application meets the statutory practical difficulties factors. Residents can often provide important facts that may help in addressing these factors, however, unsubstantiated opinions and reactions to a request do not form a legitimate basis for a variance decision. Page 4 of 8 The Planning Commission may impose conditions when granting variances as long as the conditions are directly related and bear a rough proportionality to the impact created by the variance. For instance, if a variance is granted to exceed the front setback limit, any conditions attached should presumably relate to mitigating the effect of the encroachment. 3. Variance Requirements — Section 1355.04, Subd. 4 The Applicant requests a variance to construct a principal structure and detached garage addition to the east elevation of their existing principal structure and attached garage that would impede on the required side yard setback on a corner lot in the R-1, Single Family Residential District. The Planning Commission will need to make a determination utilizing the following variance findings and criteria on whether there are practical difficulties with complying with the zoning regulations. If the Applicant does not meet all the factors of the statutory test, then a variance should not be granted. Variances are only permitted when they are in harmony with the general purposes and intent of the ordinance. Purpose and Intent. The variance request shall comply with the purpose and intent of the provisions of the City's Zoning Regulations and with the policies of the City's Comprehensive Plan. The variance request for 1511 Dawn Circle is for a proposed attached garage and upper level addition. The Subject Property is zoned R-1, Single Family Residential District and is guided as Low Density Residential on the Land Use Plan. 2. Practical Difficulties. The Applicant for a variance shall establish that there are practical difficulties in complying with the provisions of the Arden Hills Zoning Regulations. The term "Practical Difficulties" as used in the granting of a variance means: a. Reasonable Use. The property owner proposes to use the property in a reasonable manner not permitted by the Zoning Ordinance. According to the Applicant, the proposed principal structure and attached garage addition would provide for residential living and storage space in line with the existing use of the property as a single-family dwelling. The addition of these spaces on the property would not be permitted by the Zoning Ordinance. b. Unique Circumstances. The plight of the property owner is due to circumstances unique to the property not created by the landowner. According to the Applicant, the property is on a corner lot which was not a circumstance created by the Applicant. Corner lots have a required 40 foot side yard setback which is greater than the 10'125' required for non -corner lots within the R-1 zoning district. On a non -corner lot, the attached garage addition would conform with the R-1 requirements. c. Character of Neighborhood. The variance, if granted, will not alter the essential character of the neighborhood. Page 5 of 8 According to the Applicant, there would be no alteration to the character of the City or neighborhood. The Subject Property with the proposed addition would remain a residential single-family home and have the same look and feel as the existing Subject Property. 3. Economic Consideration. Economic consideration alone does not constitute a practical difficulty. The Applicant states that while the proposed project would increase the value of the home, this has no bearing on the reason for the variance request. 4. Access to Sunlight. Inadequate access to direct sunlight for solar energy systems shall be considered a practical difficulty. A solar energy system is not proposed. Additional Reviews Building Official The Building Official has reviewed the plans and has no additional comments at this time. A Building Permit along with a complete plan set for review will be required prior to any construction taking place. Public Works Director/City Engineer The Public Works Director/City Engineer has reviewed the plans and confirmed the proposed addition is outside of the clear vision area. No additional comments at this time. Findings of Fact The Planning Commission 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: General Findings: I . City Staff received a land use application for a variance request to the required R-1 Zoning District side yard setback for corner lots at the Subject Property 1511 Dawn Circle. 2. A single-family dwelling is a permitted use within the R-1 Zoning District. 3. The Applicant states that the proposed addition will not impede sight lines from the roadways. 4. The proposed addition would have a decreased side yard setback for a corner lot of 28.2 feet. Variance Findings: 1. Variances are only permitted when they are in harmony with the general purposes and intent of the ordinance. 2. The proposed addition would not alter the essential character of the neighborhood because the proposed design will look and feel consistent with the existing structure. 3. The variance request is not based on economic considerations alone. Options and Motion Language Page 6 of 8 Staff has provided the following options and motion language for this case. The Planning Commission should consider providing additional findings of fact as part of the motion to support their recommendation for approval or denial. • Recommend Approval with Conditions: Motion to recommend approval of Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the findings of fact and the submitted plans, as amended by the conditions in the May 8, 2024, Report to the Planning Commission: 1. A Building Permit shall be issued prior to commencement of construction. 2. A Zoning Permit shall be issued for the driveway expansion. 3. The proposed building addition shall conform to all other standards and regulations in the City Code. • Recommend Approval as Submitted: Motion to recommend approval of Planning Case 24- 008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the findings of fact and the submitted materials in the May 8, 2024, Report to the Planning Commission. • Recommend Denial: Motion to recommend denial Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the following findings: findings to deny should specifically reference the reasons for denial and why those reasons cannot be mitigated. • Table: Motion to table Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle: a specific reason and information request should be included with a motion to table. Notice Although a variance does not require a public hearing, a public meeting notice was prepared by the City and mailed to properties within 500 feet of the Subject Property on April 25, 2024. A public meeting notice for this planning case was published in the Pioneer Press on April 25, 2024. Minnesota statute does not clearly require a public hearing before a variance is granted or denied, however, after consulting with the City Attorney, staff agree that the best practice is to allow public forum on all variance requests. A public forum allows the city to establish a record and elicit facts to help determine if the application meets the practical difficulties factors. Staff has not received any written or verbal comments regarding this proposal as of May 2, 2024. Deadline for A2ency Actions The City of Arden Hills received the completed application for this request on April 10, 2024. Pursuant to Minnesota State Statute, the City must act on this request by June 8, 2024 (60 days), unless the City provides the petitioner with written reasons for an additional 60-day review period. Attachments Page 7 of 8 A. Land Use Application B. Location Map C. Variance Request Letter D. Certificate of Survey E. Floor Plans F. Elevation Options Page 8 of 8 � Attachment H ,-`iRZEN HILLS Approved: CITY OF ARDEN HILLS, MINNESOTA PLANNING COMMISSION WEDNESDAY, MAY 8, 2024 6:30 P.M. - ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Chair Kurtis Weber called to order the regular Planning Commission meeting at 6:30 p.m. ROLL CALL Present were: Chair Kurtis Weber, Commissioners Brad Bjorklund, Shelley Blilie, Joshua Collins, Arlene Mitchell, and Jonathan Wicklund. Absent: Council Liaison Emily Rousseau and Community Development Director Jessica Jagoe Also present were: Senior Planner Elena Fransen. APPROVAL OF AGENDA — MAY 8, 2024 Commissioner Biorklund moved, seconded by Commissioner Collins, to approve the May 8, 2024, agenda as presented. The motion carried unanimously (7-0). APPROVAL OF MINUTES April 3, 2024 — Planning Commission Regular Meeting Commissioner Erler moved, seconded by Commissioner Blilie, to approve the April 3, 2024, Planning Commission Regular Meeting as presented. The motion carried unanimously (7-0). PLANNING CASES A. Planning Case 24-008; 1511 Dawn Circle - Variance — Public Hearing Not Required Senior Planner Fransen stated Kam and Jennifer Schmaltz ("Applicant") has requested a variance to construct an addition to the east elevation of an existing principal structure and attached garage on the property located at 1511 Dawn Circle ("Subject Property"). The Applicant has requested a variance to decrease the required side yard setback for corner lots from the minimum requirement of 40 feet to 28.2 feet. The Applicant is proposing a 12 foot by 36.5 foot garage addition to expand the existing attached garage width from 21.5 feet to 33.5 feet and ARDEN HILLS PLANNING COMMISSION — May 8, 2024 2 allow for an addition to the upper floor of the principal structure. The addition would add 438 square feet to the existing attached garage and 386 square feet to the principal structure. Senior Planner Fransen reviewed the site data, the Plan Evaluation and provided the Findings of Fact for review: General Findings: 1. City Staff received a land use application for a variance request to the required R-1 Zoning District side yard setback for corner lots at the Subject Property 1511 Dawn Circle. 2. A single-family dwelling is a permitted use within the R-1 Zoning District. 3. The Applicant states that the proposed addition will not impede sight lines from the roadways. 4. The proposed addition would have a decreased side yard setback for a corner lot of 28.2 feet. Variance Findings: 1. Variances are only permitted when they are in harmony with the general purposes and intent of the ordinance. 2. The proposed addition would not alter the essential character of the neighborhood because the proposed design will look and feel consistent with the existing structure. 3. The variance request is not based on economic considerations alone. Senior Planner Fransen reviewed the options available to the Planning Commission for Planning Case 24-008 for a Variance to construct an addition with a 28.2 foot side yard setback on a corner lot at 1511 Dawn Circle: 1. Recommend Approval with Conditions 1. A Building Permit shall be issued prior to commencement of construction. 2. A Zoning Permit shall be issued for the driveway expansion. 3. The proposed building addition shall conform to all other standards and regulations in the City Code. 2. Recommend Approval as Submitted 3. Recommend Denial 4. Table Chair Weber opened the floor to Commissioner comments. Chair Weber thanked the applicant for speaking with the neighbors regarding this request. Commissioner Wicklund asked what the process was to make sure the finishing touches match the existing home. Senior Planner Fransen stated the City's requirement was for applicants to match exterior building materials from the existing structure to the proposed addition and that this would be reviewed with the building permit application. ARDEN HILLS PLANNING COMMISSION — May 8, 2024 3 Commissioner Bjorklund commented on how he drove by this property and noticed a neighbor has an accessory dwelling unit detached from the home on a corner lot. He stated he was uncertain if this was allowed by the City. He indicated the applicant was not proposing to do something very different from what was already existing in their neighborhood less than a block away. Senior Planner Fransen explained the City has had conversations with residents regarding accessory dwelling units and noted they are currently not a permitted use in residential zoning distrcits. She reported staff had received an inquiry into process to modify the zoning code to make ADU's a permitted use. She indicated staff could follow up with neighboring property owner to confirm how they were using this accessory structure. Commissioner Mitchell stated a three car garage was not an unusual thing in Arden Hills. She commented further on how the setbacks for corner lots were quite limiting, noting passersby would only see three garage doors from the street if a three car garage were to be built in accordance with the setback requirements. She explained the 40 foot setback requirement for corner lots was concerning to her. She stated she could support the proposed garage addition. Commissioner Blilie indicated she supported the request as well. Chair Weber reported he also supported the variance request. Commissioner Wicklund asked if there were any Commissioners that had concerns regarding requiring screening from Norma Avenue. Chair Weber stated he was not concerned about screening a well -kept house. He indicated he supported the Planning Commission further discussing the setback requirements for corner lots. Commissioner Erler moved and Commissioner Mitchell seconded a motion to recommend approval of Planning Case 24-008 for a Variance at 1511 Dawn Circle based on the findings of fact and the submitted plans, as amended by the conditions in the May 8, 2024, report to the Planning Commission. The motion carried unanimously (7-0). UNFINISHED AND NEW BUSINESS None. REPORTS A. Report from the City Council Chair Weber reported for Council Liaison Rousseau that the Commission and Committees picnic was tentatively scheduled for Tuesday, July 16 at Cummings Park. B. Planning Commission Comments and Requests Commissioner Bjorklund suggested the Commission consider zoning actions to assist with increasing affordable housing in Arden Hills and reviewed several suggestions with the Commission. 'It Attachment I -A "EN ILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO.2024-029 RESOLUTION APPROVING A VARIANCE AT 1511 DAWN CIRCLE WHEREAS, City Staff received a complete land use application for a variance to the side yard setback on a corner lot from the City Code for the property located at 1511 Dawn Circle and legally described on Exhibit A attached hereto ("Subject Property"); and WHEREAS, the Applicant is proposing to construct an addition to an existing principal structure and is seeking flexibility with the required side yard setback for a corner lot on the Subject Property; and WHEREAS, the Subject Property is zoned R-1, Single Family Residential District, which requires a side yard setback for a corner lot of 40 feet on the Subject Property. The Applicant is proposing a side yard setback of 28.2 feet; and WHEREAS, a variance may be granted when it is in harmony with the general purposes and intent of the zoning ordinance if enforcement of a provision in the ordinance would cause the landowner practical difficulties; and WHEREAS, pursuant to Minnesota State Statute, the City must act on this request by June 8, 2024 (60 days), unless the City provides the petitioner with written reasons for an additional 60- day review period; and WHEREAS, the City Council directed Staff to prepare a Land Use Application Public Policy Notification to notify all property owners within 500 feet of Subject Property when a request for the Planning Commission is to occur related to a land use application that does not require a public hearing; and WHEREAS, the City's obligation has been met where the Arden Hills Planning Commission reviewed the application on May 8, 2024. All written comments submitted in advance of the meeting were presented to the Planning Commission; and WHEREAS the Planning Commission considered the Applicant's request for a Variance and, as such voted 7-0 in favor of recommending approval with conditions. Page 1 of 3 NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF ARDEN HILLS: Hereby adopts Resolution 2024-029 approving Planning Case 24-008 for a Variance for the property located at 1511 Dawn Circle to construct an addition with a 28.2 foot corner lot side yard setback on the Subject Property. BE IT FURTHER RESOLVED that City Council approves Planning Case 24-008 for a Variance request at the property located at 1511 Dawn Circle, based on the Findings of Fact and the submitted plans in the May 28, 2024, Report to the City Council, as amended by the following conditions: 1) A Building Permit shall be issued prior to commencement of construction. 2) A Zoning Permit shall be issued for the driveway expansion. 3) The building shall conform to all other standards and regulations in the City Code. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 28TH DAY OF MAY 2024. David Grant, Mayor ATTEST: Julie Hanson, City Clerk To view the final document, access adopted Resolutions via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage. Page 2 of 3 EXHIBIT A TO RESOLUTION 2024-029 Lot 6, Block 3, BRIARKNQLL PLAT TWO, Ramsey County, Minnesota. Page 3 of 3 Attachment J Planning Case #24-008 Applicant: Kam and Jennifer Schmaltz Property Location: 1511 Dawn Cir Request: Variance Zoning: R-1— Single Family Residential District Land Use: Low Density Residential Proposal — Variance • Request to decrease the required side yard setback for a corner lot from 40 feet to 28.2 feet. Side Yard Setback 40 feet 40.2 feet 28.2 feet• (Corner Lot) addition) • Addition would allow for additional garage storage and for the construction of an upper level bedroom and office. r j •� + � Flnral P . /yam. • � - '4�11. Proposed Site Plan 589'37'21 "W 105.00 ............. . A � I �I I i io 1 oy�q................................f`1..... ...... ...._. = w ° - SHED r� ................... °. �� � _LU <N 7.3 ..�-w.......� � I r, N i7 W I s - Q�4 Sri-5' 9�I'1 -------------.1932.701 J� 'I I / � DECK I GATE —� •-I CANT.4.8 ❑t - 18.a GTl 1 M� 40.2 929.1 -C6 EXISTING o r G"] ' HOUSE N a a� 932.3 31.6 I�t �[ 1- /n 0 w432�2 o GARAGE / 6 C a Iw 33.3/ FLOOR PORCH =432,8 I y�y I I 93 I 0� ' I pia .aW ..... n�,lM1 a�xOlt }I — ulk , y L— Uj f — — — — — — — — — a M7,3 Proposal includes • A 438 square foot Proposed attached garage setback - addition 28.2ft • A 386-438 square foot Existing upper level principal Setback - structure addition 40.2 ft Proposed footprint of 438 sq ft addition Proposed Floor Plans Dashed line indicates structure on the main floor a o GARACsE AMMON S.F.. A38 Floor plan for 438 square foot main floor addition Floor plan for 386 square foot upper floor addition (without dormer window) Proposed Renderings Front Elevation — Option 1, without dormer window Front Elevation — Option 2, with dormer window Plan Evaluation District Provisions (R-1, Single Family Residential District) — Section 1320.06 .$ti"UC1'Ure .$etbpCkS —Variance Requested • Minimum Side Yard Corner Lot Setback: 40 feet • Current Setback: 40.2 feet • Proposed Setback: 28.2 feet • The proposed principal structure and attached garage addition would conform to front, rear and one of the minimum side yard setback requirements. Plan Evaluation District Provisions (R-1, Single Family Residential District) — Section 1320.06 Landscaped Area- Meets Requirements • Minimum Landscaped Area: 65% • Existing Landscaped Area: 10,456 square feet or 74.2% • Proposed Decrease in Landscaped Area: 765 square feet (attached garage addition and driveway expansion) • Proposed Landscaped Area: 9,691 square feet or 68.8% Plan Evaluation District Provisions (R-1, Single Family Residential District) — Section 1320.06 Structure Coverage— Meets Requirements • Maximum Structure Coverage: 25% • Existing Structure Coverage: 2,697 square feet or 19% • Proposed Increase in Structure Area: 438 square feet • Proposed Structure Coverage: 3,135 square feet or 22.25 Plan Evaluation District Provisions (R-1, Single Family Residential District) — Section 1320.06 Floor Area Ratio — Meets Requirements • Maximum Floor Area Ratio:.3 • Existing Floor Area Ratio:.252 • Proposed Floor Area Ratio (Option 1, without dormer, 386 additional square feet):.279 or • Proposed Floor Area Ratio (Option 2, with dormer, 438 additional square feet):.283 Plan Evaluation Variance Requirements— Section 1355.04, Subd. 4 Purpose and Intent. The variance request shall comply with the purpose and intent of the provisions of the City's Zoning Regulations and with the policies of the City's Comprehensive Plan. • The variance request for 1511 Dawn Circle is for a proposed attached garage and upper level addition. The Subject Property is zoned R-1, Single Family Residential District and is guided as Low Density Residential on the Land Use Plan. Plan Evaluation Variance Requirements— Section 1355.04, Subd. 4 Reasonable Use. The property owner proposes to use the property in a reasonable manner not permitted by the Zoning Ordinance. • According to the Applicant, the proposed principal structure and attached garage addition would provide for residential living and storage space in line with the existing use of the property as a single- family dwelling. The addition of these spaces on the property would not be permitted by the Zoning Ordinance. Plan Evaluation Variance Requirements— Section 1355.04, Subd. 4 Unique Circumstances. The plight of the property owner is due to circumstances unique to the property not created by the landowner. • According to the Applicant, the property is on a corner lot which was not a circumstance created by the Applicant. Corner lots have a required 40 foot side yard setback which is greater than the 10'/25' required for non -corner lots within the R-1 zoning district. On a non - corner lot, the attached garage addition would conform with the R-1 requirements. Plan Evaluation Variance Requirements— Section 1355.04, Subd. 4 Character of Neighborhood. The variance, if granted, will not alter the essential character of the neighborhood. • According to the Applicant, there would be no alteration to the character of the City or neighborhood. The Subject Property with the proposed addition would remain a residential single-family home and have the some look and feel as the existing Subject Property. Plan Evaluation Variance Requirements— Section 1355.04, Subd. 4 Economic Consideration. Economic consideration alone does not constitute a practical difficulty. • The Applicant states that while the proposed project would increase the value of the home, this has no bearing on the reason for the variance request. Access to Sunlight. Inadequate access to direct sunlight for solar energy systems shall be considered a practical difficulty. • A solar energy system is not proposed. Public Notices • Section 1355.04, Subd. 5 of the Arden Hills Zoning Code states that a public hearing is not required for a Variance, but neighboring property owners shall be notified. Notification was prepared in accordance with City policy. • Notice was published in the Pioneer Press on May 15, 2024. Notice was prepared by the City and mailed to property owners within 500 feet of the subject property. • As of May 22, Staff has received one comment in support of this proposal. Additional Reviews Building Official The Building Official has reviewed the plans and has no additional comments at this time. A Building Permit along with a complete plan set for review will be required prior to any construction taking place. Public Works Director/City Engineer The Public Works Director/City Engineer has reviewed the plans and confirmed the proposed addition is outside of the clear vision area. No additional comments were made at this time. Deadline for Agency Action • The City of Arden Hills received the completed application for this request on April 10, 2024. Pursuant to Minnesota State Statute, the City must act on this request by June 8, 2024 (60 days), unless the City provides the petitioner with written reasons for an additional 60-day review period. Findings of Fact General Findings: 1. City Staff received a land use application for a variance request to the required R-1 Zoning District side yard setback for corner lots at the Subject Property 1511 Dawn Circle. 2. A single-family dwelling is a permitted use within the R-1 Zoning District. 3. The Applicant states that the addition will not impede sight lines from the roadways. 4. The proposed addition would have a decreased side yard setback for a corner lot of 28.2 feet. Variance Findings: 1. Variances are only permitted when they are in harmony with the general purposes and intent of the ordinance. 2. The proposed addition would not alter the essential character of the neighborhood because the proposed design will look and feel consistent with the existing structure. 3. The variance request is not based on economic considerations alone. Options and Motion Language 1. Approval with Conditions: Motion to adopt Resolution 2024-029, approving Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the findings of fact and the submitted plans, as amended by the conditions in the May 28, 2024, Report to the City Council: 1. A Building Permit shall be issued prior to commencement of construction. 2. A Zoning Permit shall be issued for the driveway expansion. 3. The proposed building addition shall conform to all other standards and regulations in the City Code. 2. Approval as Submitted: Motion to adopt Resolution 2024-029, approving Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the findings of fact and the submitted materials in the May 28, 2024, Report to the City Council. Options and Motion Language 3. Denial: Motion to deny Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle, based on the following findings: findings to deny should specifically reference the reasons for denial and why those reasons cannot be mitigated. 4. Table: Motion to table Planning Case 24-008 for a Variance to construct an addition with a 28.2 side yard setback on a corner lot at 1511 Dawn Circle: a specific reason and information request should be included with a motion to table. Questions? Planning Case 24-008 — Variance, 1511 Dawn Circle CONSENT ITEM - 8G ,-741�EN HILLS MEMORANDUM DATE: Mat 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer Jeff Frid, Public Works Superintendent SUBJECT: 2024 Capital Equipment Replacement — Unit 415, 2006 Felling Trailer & Unit 106, 1996 Wacker 880 Roller Budgeted Amount: Actual Amount: Funding Source: $30,000 (net) $31,038.70 (net) Equipment Replacement Fund (2024 CIP) (After estimated auction) Council Should Consider Motions to approve, table, or deny the following: • 2024 purchase of a 2022 Felling Trailer (new), Model FT 121-20 • 2024 purchase of 2023 Wacker Neuson Tandem Roller (new), Model RD12A-90 Asphalt Roller Background/Discussion The 2025 Capital Improvement Plan (CIP) includes replacement of Unit 415, 2006 Felling Trailer, and replacement of Unit 106, 1996 Wacker Asphalt Roller. Attachment A and Attachment B are the CIP detail sheets which includes the latest equipment repair history. Staff is recommending moving up the replacement of the trailer and the roller from 2025 to 2024 and shifting the 2 Toro Zero Turn mower replacements from 2024 to 2025, the budget details are shown below in the budget impact section. At the November 13, 2023 Special Work Session, Council discussed the 2024 Proposed Budget and 2024-2028 CIP which included the Public Works Equipment Purchases. For the 2022 Felling Trailer (new), Model FT121-20, Public Works staff received a quote from Lano Equipment Inc, per the MN State Contract pricing (Attachment Q. Staff was informed of an approximate six months delivery lead time from Lano. Staff recommends replacement of Unit Page 1 of 3 415, Felling trailer, to ensure timely delivery prior to 2025, to get ahead of potential high -cost repairs, and to have a higher auction value. Typically, the frequency of repairs will increase with the age of the equipment. The replacement (new) 2022 Felling trailer serves as transport for numerous pieces of PW equipment around the city for streets, parks, utilities, and misc. projects and preventative maintenance. For the 2023 Wacker Neuson Tandem Roller (new), Model RD 12A-90 Asphalt Roller, Public Works staff received a quote from Tri State Bobcat, per the MN State Contract pricing (Attachment D). Staff was informed of an approximate 4-6 weeks delivery lead time from Tri State. Staff recommends replacement of Unit 106, Wacker Asphalt Roller, to ensure timely delivery prior to the 2024 street patching season, to get ahead of potential high -cost repairs, and to have a higher auction value. Typically, the frequency of repairs will increase with the age of the equipment. The replacement (new) 2023 Wacker Asphalt Roller serves a primary use within the streets department and is used for street patching and other restoration and compaction needs. Budget Impact 2022 Felling Trailer (new), Model FT121-20: Total Cost: $16,890.70 Purple Wave Auction Estimate for Unit 415, 2006 Felling trailer, is $3,500 Net Cost: $13,390.70 The Capital Improvement Program for equipment purchases in 2025 includes a budget of $12,000 with an estimated trade in value of $4,000, which equates to a net cost of $8,000 for replacement of Unit 415 in 2025. After receiving actual quotes (Attachment C) and researching current auction prices, the purchase of the new 2022 Felling trailer is $16,890.70. The estimated auction value of unit 415, 2006 Felling trailer, is $3,500. This equates to a net cost of $13,390.70, which is $5,390.70 over budget. It is possible that the city could see a better return for unit 415 at auction, above the conservative estimate of $3,500. 2023 Wacker Neuson Tandem Roller (new), Model RD12A-90 Asphalt Roller: Total Cost: $19,648.00 Purple Wave Auction Estimate for Unit 106, Wacker Roller, is $2,000 Net Cost: $17,648.00 The Capital Improvement Program for equipment purchases includes a budget of $25,000 with an estimated trade in value of $500, which equates to a net cost of $24,500 for replacement of Unit 106 in 2025. After receiving actual quotes and researching current auction prices, the purchase of the new 2023 Wacker Roller is $19,648 and the estimated auction value of unit 106, 1996 Wacker Roller, is $2,000, which equates to a net cost of $17,648. This is $6,852 under budget. Attachment E shows the CIP detail sheet related to the 2 Toro Z turn lawn mowers currently budgeted for 2024, staff is proposing to shift this item to 2025. The budgeted amount is $45,000 with an estimated trade in value of $15,000 which equates to a net cost of $30,000. Net cost for the 2022 Felling Trailer and the 2023 Wacker Neuson Tandem Roller = $31,038.70 Therefore, the proposed 2024 purchases are $1,038.70 over what is currently budgeted. Page 2 of 3 Attachments Attachment A: Unit 415 Replacement CIP detail sheet Attachment B: Unit 106 Replacement CIP detail sheet Attachment C: Quote from Lano Equipment Inc. Attachment D: Quote from Tri State Bobcat Attachment E: Unit 473 & Unit 474 Replacement CIP detail sheet Page 3 of 3 Capital Improvement Plan City of Arden Hills, Minnesota Project # 25-Eqp-003 Project Name Replace 2006 Felling Trailer #415 TCAAP No Attachment A 2024 thrtt 2028 Department Equipment Contact Public Works Director Type Equipment Useful Life 15 Category Equipment: Public Works Priority 3Important Description Total Project Cost: $12,000 Multi use trailer used mainly in the Parks Department to transport mowers, field equipment and supplies. 3stimated auction return $4,000 Justification Phis trailer is currently 17 years old and is showing signs of corrosion. Zepair costs form 2019-2023 total - $648 Expenditures 2024 2025 2026 2027 2028 Total Equip/Vehicles/Furnishings 12,000 12,000 Total Funding Sources 2024 12,000 2025 2026 12,000 2027 2028 Total Equipment/Building Replacement Fund Trade -In Value 8,000 4,000 8,000 4,000 Total 12,000 12,000 Budget Impact/Other Produced Using the Plan -It Capital Planning Software 13 Capital Improvement Plan City of Arden Hills, Minnesota 3roject # 25-Eqp-002 'roject Name Replace 1996 Wacker 880 Roller #106 Attachment B 2024 thru 2028 Department Equipment Contact Public Works Director Type Equipment Useful Life 15-17 Category Equipment: Public Works TCAAP No Priority 3Important Description I Total Project Cost: $25,000 2eplace Equipment #106 - 1996 Wacker Roller. VIN # 673603994 Sours: 972 Phis piece of equipment was included in previous CIP's but has been deferred to allow time to determine the size roller that would work best based )n the amount of work the PW staff is able to complete. Also, staff evaluates its condition each year to evaluate its reliability. Justification 3quipment will be 29 years old. Roller is used for small pothole patching. Part availability is becoming an issue. ?arts and labor costs (provided by AH PW crew): Z018 - $425 Z019 - $130 ?020 - $635 ?021 - $725 ?022 - $361 Expenditures 2024 2025 2026 2027 2028 Total Equip/Vehicles/Furnishings 25,000 25,000 Total Funding Sources 2024 25,000 2025 2026 25,000 2027 2028 Total Equipment/Building Replacement Fund Trade -In Value 24,500 500 24,500 500 Total 25,000 25,000 Budget Impact/Other 2educed equipment repair costs. Produced Using the Plan -It Capital Planning Software 12 L"el�no /// 3021 W 133rd St • Shakopee, MN 55379.952-445-6310 6140 Hwy 10 NW • Anoka, MN 55303.763-323-1720 23580 Hwy 55 • Loretto, MN 55357.763-479-8200 www.lanoequip.com • www.lanoeq.com • www.lanogardengear.com Bill To: CITY OF ARDEN HILLS 1245 W HWY 96 ARDEN HILLS, MN 55112 Minnesota State Contract T-603-221690 QUOTE REFERENCE #58289 US QUOTE - Do Attachment C Quote: 02-176107 PO: FT12 I WIDE Date: 5/20/2024 Custld: CITYARDEN Cust Email: jfrid@cityofardenhills.org Phone: (651) 755-1461 Salesperson: Scott.F User: Scott.F Ship To: CITY OF ARDEN HILLS Item Type Description Qty Tax Price Discount Net Price FT121-20 QU Felling FT121-20 Yr: 2022 1.0000 $16,870.70 $16,870.700 TRA - FELLING TRAILER,ELEC,20+3,WIDE BODY, GRATE-X Total FT121-20 $16,870.70 TRANSIT USE MC Transit Use 1.0000 $20.00 $20.00 Remark RE BUYER RESPONSIBLE FOR REGISTRATION/LIC ETC Total: $16,890.70 otals Sub Total: $16,890.7 Total Tax: $0.0 Invoice Total: $16,890.7 Signatu Quote is Valid for 30 days, programs and discounts subject to change without notice BURNSVILLE LITTLE C LS Burnsville, Highway 55337 Little Canada, t rns , 024 1 (952) 894-0894 (651) 407 Attachment D Fax (952) 894-5759 Fax (651) 6E 95 Sales•Service Rentals www.tristatebobcat.com Ship To: SAME AS BELOW Invoice To: CITY OF ARDEN HILLS 1245 W HIGHWAY 96 ARDEN HILLS MN 55112-5743 Branch Date 04 02 2024 Time 8:08:26 O Page 1 Account No. 11074 Phone No. 6517927847 Invoice 62. �008626 Ship Via Purchase Order Salesperson RJH EQUIPMENT QUOTE • NOT AN INVOICE Description ** Q U O T E ** EXPIRY DATE: 05/31/2024 Amount Stock #: B081569 Serial #: WNCRD12AAPUM05589 29725.00 2023 WACKER NEUSON RD12A-90 TANDEM ROLLER -FIXED ROPS Miscellaneous_,Charges/Credits SOURCEWELL CONTRACT DISC Qty:1 Price: 10077.00 10077.00- Subtotal: 19648.00 Authorization: Quote Total: 19648.00 SOURCEWELL CONTRACT #041719-WAC Capital Improvement Plan 2024 thru 2028 City of Arden Hills, Minnesota 3roject # 24-Eqo-001 'roject Name Trade in Program Toro Z Mowers #473 & #474 TCAAP No Description Zeplace Two 2021 Toro "Z" Lawn Mowers #473 & #474 (parks). 973 - 215 hours 974 - 195 hours hese were last replaced in January 2022. ost of 2 machines: $40,930 rade in values:-$15,000 et cost of 2 machines: $25,930 "arts and labor costs: 973 2022 - $312.72 974 2022 - $182.00 Justification I Attachment E Department Equipment Contact Public Works Director Type Equipment Useful Life 5 Category Equipment: Public Works Priority 3Important Total Project Cost: $180,000 the trade in value of the Toro "Z" mowers is maximized if they are traded in with warranty still remaining. Due to the amount of time these pieces )f equipment are used during the summer months, they are traded in on a three year cycle. costs are under factory warranty. Expenditures 2024 2025 2026 2027 2028 Total Equip/Vehicles/Furnishings 45,000 45,000 90,000 Total 45,000 45,000 90,000 Funding Sources 2024 2025 2026 2027 2028 Total Equipment/Building 30,000 30,000 60,000 Replacement Fund Trade -In Value 15,000 15,000 30,000 Total 45,000 45,000 90,000 Budget Impact/Other Produced Using the Plan -It Capital Planning Software E CONSENT ITEM - 8H -ADEN HILLS lU l flu to] .7_\►1111101 DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer Jeff Frid, Public Works Superintendent SUBJECT: Ramsey County Fleet Service Invoice for Annual AHPW Fleet Repairs Budgeted Amount: Actual Amount: Funding Source: $100,000 Full Year $16,687.95 PW Operating Budget $90,000 Remaining Council Should Consider Motions to approve, table, or deny the following: • The Ramsey County Fleet repairs invoice dated April 22, 2024 for annual service/repairs for Arden Hills Public Works equipment/assets in the amount of $16,687.95 Background/Discussion Historically, during the months of February to April, the PW Fleet Management Lead (FML) assesses the department's fleet for needed annual service, repairs, and inspects for mechanical and safety needs. This process prepares equipment for the upcoming spring/summer use and is important for efficient PW operations. During the FML's assessment, there are certain assets that are sent to the Ramsey County Fleet shop for service. During the service, there are often repairs found that need to be addressed before the upcoming summer season. RC Fleet contacts the FML with a list of needed repairs for approval before the work is started. The FML also utilizes parts purchasing from the RC Stock Room. These parts are used for equipment servicing completed in-house by the FML. Working together between our FML and RC Fleet Services has been working well to fill the gaps in equipment related repairs as AHPW doesn't have the resources to complete. Page 1 of 2 Budget Impact Attachment A is the invoice dated April 22, 2024 from Ramsey County Fleet Services. This invoice is for the month of March 2024 equipment related parts and labor provided by Ramsey County. One of the more sizable repairs was completed on asset 85122 - 2017 Elgin Street Sweeper. The total cost for the annual service and needed repairs on the street sweeper was $9,919.49. The remaining $6,768.46 was the parts and/ or labor for numerous other AHPW assets. Attachments Attachment A: April 22, 2024 Ramsey Count Fleet Services parts and labor invoice. Page 2 of 2 RAMSEY COUNTY Centralized Fleet Management Please Remit To: Ramsey County Finance 121 7th Place East, Suite 4000 St Paul MN 55101 USA Bill To: ARDEN HILLS CITY OF 1245 WEST HWY 96 ARDEN HILLS MN 55112 United States INVOICE L Invoice Number: Invoice Date: Page: Customer Number: Payment Terms: Due Date: AMOUNT DUE: Attachment A FLEET-000904 4/22/24 1 of 1 004000 30 Days 5/22/24 16,687.95 USD Amount Remitted ---------------------------------------------------------- For billing questions, please call 651-266-7100 Original Line Identifier Description Quantity UOM Unit Amt Net Amount INVOICE IS FOR EQUIPMENT REPAIRS, SERVICES AND PARTS PROVIDED DURING MARCH 2024 PER ATTACHED 1 1.00 EA 16,687.95 16,687.95 LABOR: $6,462.90 PARTS: $8,930.85 COMM LABOR: $564.05 COMM PARTS: $124.23 COMM MISC: $59.23 SHOP FEE: $140.00 MISC PARTS: $406.69 Subtotal: Amount Due: Please return the top portion of the invoice with your check payable to Ramsey County. Ramsey County invoices may be paid online! Please visit ramseycounty.us/Payinvoices for more information. 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C N N N N N N N fD (D N w in o o in in O 0. a i m lu Y . v O_ C D O O C C 7 N 7 . 7 rLn D 1' �• n n O O_ P O D O O O o O O O O O 9 m ro m m ro @ R r3 i; m m @ iD 0 g q q q q q 4 q a g g q 4 RL n rD z T T T T T -n -n T T -n -n D r r r r r r r r r r r 6 En co dD 0o co co W co w w do m Vl In Ln Cn Ln In Ln Ln Ln Ln In r�i r r r r r N 4 W r ? N N N N N N r m N N Cl Y w w w w w In -O r W r .A w w w w w w w w W W W W w r Y N N N N N FL Vl N N Cn FL C In r r N m Ot t0 N r r N t0 N N N N N N N N o N N cD N O O o 0 0 0 C. 0 N O O N O cu A a c O_ N r N r r r r tD r N l0 tD C rt r N N to A� N O (rl ' W Lo Lo i- O io lnl to N W V V w N to m w m m W N Ol Ol (D N w W W W W rt to 00 w co A A !o in to w ,vpn � O W W? to ko tOD (3) W m w .Nr. u�f1i n N r W W w t0 w p w A l0 IWJI"V� t�0p W W .NA ID� W OYi W ? T t!1rD 9 :M D CD CONSENT ITEM - 8I 'It ,-AI�EN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer SUBJECT: Hydrant Mod Kit Purchase Budgeted Amount: Actual Amount: Funding Source: $17,500 $24,080 Water Fund Council Should Consider Motions to approve, table, or deny the following: • Purchase of Hydrant Mod Kits from Core & Main in the amount of $24,080. Background/Discussion In the 2024 Public Works Maintenance Plan, staff has identified four hydrants within the Glenpaul Ave, Edgewater Ave, Jerrold Ave, and Prior Ave neighborhoods that need an update via "Mod Kits" which does not require excavation. These hydrants were not part of the watermain replacement included with the 2021 PMP; however, with the age of these hydrants ranging from 1968 to 1977, Public Works Staff recommends ordering the parts from Core & main in the amount of $24,080. Public Works Maintenance Workers will perform the labor. Budget Impact The 2024 Water Operating Budget includes hydrant funding in the amount of $17,500 and the remaining $6,580 to be covered by watermain repair funding. Attachments Attachment A: Core & Main quote Page 1 of 1 CITY OF ARDEN HILLS Job Location: Arden hills, MN Bid Date: 05/30/2024 Core & Main 3529768 CORErm-Attachment A Bid Proposal for Arden Hills Mod Kits Core & Main 5145 211th Street West Farmington, MN 55024 Phone:6514636090 Fax: 6514634554 Seq# Qtv Description Units Price Ext Price 10 1 HYD MOD KIT FOR 1968 W1359, 10" EA 5,495.00 5,495.00 BO, 5X, 109" PLUMP BOB, W/ 6" EXT GLENPOOL AVE & CLEVELAND AVE 50 1 K35213-6 HYD EXT FOR MOD KIT EA 1,050.00 1,050.00 GLENPOOL AVE & CLEVELAND AVE 90 1 HYD MOD KIT FOR 1977 W1359, 10" EA 5,495.00 5,495.00 BO, 5X, 109" PLUMB BOB JARROLD AVE DEAD END 140 1 HYD MOD KIT FOR 1977 W659, 10" EA 5,495.00 5,495.00 BO, 5X, 115" PLUMB BOB, W/ 6" EXT EDGEWATER AVE DEAD END 180 1 K35213-6 HYD ENT FOR MOD KIT EA 1,050.00 1,050.00 EDGEWATER AVE DEAD END 220 1 HYD MOD KIT FOR 1968 W1359, 10" EA 5,495.00 5,495.00 BO, 5X, 109" PLUMB BOB EDGEWATER & NEW BRIGHTON RD Sub Total 24,080.00 Tax 0.00 Tota 1 24,080.00 UNLESS OTHERWISE SPECIFIED HEREIN, PRICES QUOTED ARE VALID IF ACCEPTED BY CUSTOMER AND PRODUCTS ARE RELEASED BY CUSTOMER FOR MANUFACTURE WITHIN THIRTY (30) CALENDAR DAYS FROM THE DATE OF THIS QUOTATION. CORE & MAIN LP RESERVES THE RIGHT TO INCREASE PRICES TO ADDRESS FACTORS, INCLUDING BUT NOT LIMITED TO, GOVERNMENT REGULATIONS, TARIFFS, TRANSPORTATION, FUEL AND RAW MATERIAL COSTS. DELIVERY WILL COMMENCE BASED UPON MANUFACTURER LEAD TIMES. ANY MATERIAL DELIVERIES DELAYED BEYOND MANUFACTURER LEAD TIMES MAY BE SUBJECT TO PRICE INCREASES AND/OR APPLICABLE STORAGE FEES. THIS BID PROPOSAL IS CONTINGENT UPON BUYER'S ACCEPTANCE OF SELLER'S TERMS AND CONDITIONS OF SALE, AS MODIFIED FROM TIME TO TIME, WHICH CAN BE FOUND AT: https://coreandmain.com/TandC/ Actual taxes may vary Page 1 of 1 CONSENT ITEM - 8.1 �i --ADEN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers FROM: Dave Perrault, City Administrator SUBJECT: Authorize the Hiring of a Temporary Office Assistant Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motions to approve, table, or deny the following: • Authorizing the City Administrator to hire a temporary office assistant. Background The City has a vacancy in the Deputy Clerk role, Staff and Personnel Committee will be reviewing the position and discussing if changes need to be made to the role. In the absence of an incumbent employee, Staff believes there are administrative needs that need to be addressed and could be done with a temporary office assistant. Staff would like Council approval regarding the hiring of a temporary office assistant to help with day-to-day duties until a new employee is hired (timeline is approximately 3 months). Such duties may include agenda and packet prep, minute preparation, front desk coverage and other miscellaneous duties as needed. Staff will determine how much time will be needed and an associated hourly rate. Budget Impact On an hour -to -hour basis, this will be less costly than the normal position if it were filled by a regular employee; however, due to a recent separation agreement we will likely not see any savings on the hourly basis, but Staff anticipates we will likely come in at or under budget for administrative staffing. Attachment N/A Page 1 of 1 PUBLIC HEARING -10A 'It ,-iIZEN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers David Perrault, City Administrator FROM: David Swearingen, P.E. Public Works Director/City Engineer SUBJECT: 2024 PMP Street & Utility Improvement Project — Special Assessment Hearing for 1370 Colleen Avenue Council Should Consider Motions to approve, table, or deny the following: • Hold a Special Assessment Hearing for 1370 Colleen Avenue related to the 2024 PMP Street & Utility Improvement Project for public comment. Background/Discussion On February 12, 2024, the City Council adopted Resolution 2024-008 Approving the Plans and Specifications and Ordering the Advertisement for Bids for the 2024 PMP Street & Utility Improvement Project. Bids were solicited and opened on March 6, 2024. A portion of the costs for the 2024 PMP Street & Utility Improvement Project are proposed to be assessed against the benefitting properties according to the City's Assessment Policy. In order to assess these costs, the City must follow the process outlined in State Statute 429. On March 11, 2024, after the bids were opened, the City Council adopted Resolution 2024-012 Declaring Costs to be Assessed and the Assessment Hearing was held on April 8, 2024. The Assessment Roll related to Resolution 2024-012 was then amended to remove the property at 1370 Colleen Avenue. City staff and Council received an objection of the proposed assessment amount from the property owner and Council gave direction to review the objection at a later meeting, which was held on May 13, 2024. At that meeting, the City Council adopted Resolution 2024-026, Declaring Costs to be Assessed for the property at 1370 Colleen Avenue deferring the assessment for the second lot for 20 years or until the property is sold or subdivided with the remaining REU being charged to the property. A public hearing prior to adopting the assessments is a requirement of State Statute 429. Page 1 of 3 The project is proposed to be assessed consistent with the City's Assessment Policy and past practices, which states that 50% of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by City funds. Financing for the project is consistent with City policy and past practice and is summarized below. The current assessment policy states that the typical overhead rate for a public improvement project is 37% of the construction costs. Staff believes this percentage is higher than necessary and recommends that approximately 27% of the construction costs be used as overhead when calculating the assessment rates. Staff has made this recommendation on the past PMPs since 2021 and was applied to the 2024 PMP assessments on April 8, 2024. The breakdown of the overhead costs can be found below. Also, the Council must establish the interest rate at tonight's Council Meeting. Many cities set their interest rate for assessments at two (2) percentage points over the bond interest rate. The City's assessment policy states that the interest rate used for the assessment shall be designated at the prime rate plus two (2) percentage points. For the past four PMPs, the assessment interest rates were set at two (2) percentage points over the assumed bond interest rates which were based on current market conditions at the time, the City's AAA bond rating, plus 15 basis points. 2022 PMP - Snelling Ave N.: 5.5% 2022 PMP - Arden Oaks: 5.5% 2021 PMP: 3.15% 2018 PMP: 5% Our current assumed bond interest rate is 2.75% and the prime rate is 8.50%. Staff would recommend following the City's assessment policy and setting the assessment rate at 4.75%, which is also the rate that was set at the April 8, 2024 assessment hearing for the 2024 PMP. The total project costs were analyzed for the assessable cost. The calculation of the amount to be assessed as approved by Council Resolution 2024-026 is shown below. The assessments related to the project are calculated in accordance with the City's Assessment policy, is half of the street project cost for residential properties and dependent on the type of pavement rehabilitation. The assessment roll is shown in Attachment A. Reclamation Areas: 50% Estimated Street Project Costs = $519,870 Residential Equivalent Units = 86 Assessment Rate per Unit = $6,045 Proposed assessment for 1370 Colleen Avenue = $6,045 x 2 REUs = $12,090 • 1 REU charged at adoption of the proposed assessment roll • 1 REU deferred for 20 years or until the property is sold or subdivided As provided for in State Statute, no appeal may be taken as to the amount of any assessment adopted unless a written objection signed by the affected property owner is filed with the City at or prior to the assessment hearing. After the adoption of the assessment roll, property owners who have submitted an objection in writing have 30 days to serve notice of an appeal to the City, and within 10 days after serving notice to file with the District Court. Page 2 of 3 Recommendation The Council should hold the Assessment Hearing first. After the Assessment Hearing is closed and as part of New Business, Council should consider adopting Resolution 2024-028 Adopting the Assessment Roll for the 2024 PMP Street & Utility Improvement Project with any changes they deem appropriate. Attachments Attachment A: Assessment Roll — 1370 Colleen Avenue Page 3 of 3 Attachment A AS -BID ASSESSMENT ROLL - 1370 COLLEEN AVENUE 2024 PMP STREET 8 UTILITY IMPROVEMENTS CITY OF ARDEN HILLS, MINNESOTA BMI PROJECT NO. OT1.130188 E,E/2024 o 6.5,Co 5 $ �2AIo Ili NEW BUSINESS -11A 'It ,-iREN HILLS MEMORANDUM DATE: May 28, 2024 TO: Honorable Mayor and City Councilmembers David Perrault, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer SUBJECT: 2024 PMP Street & Utility Improvement Project — Adopt Assessment Roll for 1370 Colleen Avenue Council Should Consider Motions to approve, table, or deny the following: • Approving Resolution 2024-028 Adopting Assessment Roll for the 2024 PMP Street & Utility Improvement Project related to 1370 Colleen Avenue Background/Discussion On February 12, 2024, the City Council adopted Resolution 2024-008 Approving the Plans and Specifications and Ordering the Advertisement for Bids for the 2024 PMP Street & Utility Improvement Project. Bids were solicited and opened on March 6, 2024. A portion of the costs for the 2024 PMP Street & Utility Improvement Project are proposed to be assessed against the benefitting properties according to the City's Assessment Policy. In order to assess these costs, the City must follow the process outlined in State Statute 429. On March 11, 2024, after the bids were opened, the City Council adopted Resolution 2024-012 Declaring Costs to be Assessed and the Assessment Hearing was held on April 8, 2024 The Assessment Roll related to Resolution 2024-012 was amended to remove the property at 1370 Colleen Avenue. City staff and Council received an objection of the proposed assessment amount from the property owner and Council gave direction to review the objection at a later meeting, which was held on May 13, 2024. At that meeting, the City Council adopted Resolution 2024-026, Declaring Costs to be Assessed for the property at 1370 Colleen Avenue deferring the assessment for the second lot for 20 years or until the property is sold or subdivided with the remaining REU being charged to the property. Page 1 of 3 The project is proposed to be assessed consistent with the City's Assessment Policy and past practices, which states that 50% of the costs for roadway improvements will be assessed in residential areas, with the remaining portion financed by City funds. Financing for the project is consistent with City policy and past practice and is summarized below. The current assessment policy states that the typical overhead rate for a public improvement project is 37% of the construction costs. Staff believes this percentage is higher than necessary and recommends that approximately 27% of the construction costs be used as overhead when calculating the assessment rates. Staff has made this recommendation on past PMPs since 2021 and was applied to the 2024 PMP assessments on April 8, 2024. The breakdown of the overhead costs can be found below. Also, the Council must establish the interest rate at tonight's Council Meeting. Many cities set their interest rate for assessments at two (2) percentage points over the bond interest rate. The City's assessment policy states that the interest rate used for the assessment shall be designated at the prime rate plus two (2) percentage points. For the past four PMPs, the assessment interest rates were set at two (2) percentage points over the assumed bond interest rates which were based on current market conditions at the time, the City's AAA bond rating, plus 15 basis points. 2022 PMP - Snelling Ave N.: 5.5% 2022 PMP - Arden Oaks: 5.5% 2021 PMP: 3.15% 2018 PMP: 5% Our current assumed bond interest rate is 2.75% and the prime rate is 8.50%. Staff would recommend following the City's assessment policy and setting the assessment rate at 4.75%, which is also the rate that was set at the April 8, 2024 assessment hearing for the 2024 PMP. The total project costs were analyzed for the assessable cost. The calculation of the amount to be assessed as approved by Council Resolution 2024-026 is shown below. The assessments related to the project are calculated in accordance with the City's Assessment policy, is half of the street project cost for residential properties and dependent on the type of pavement rehabilitation. The assessment roll is shown in Attachment A. Reclamation Areas: 50% Estimated Street Project Costs = $519,870 Residential Equivalent Units = 86 Assessment Rate per Unit = $6,045 Proposed assessment for 1370 Colleen Avenue = $6,045 x 2 REUs = $12,090 • 1 REU charged at adoption of the proposed assessment roll • 1 REU deferred for 20 years or until the property is sold or subdivided Page 2 of 3 Recommendation Council should consider adopting Resolution 2024-028 Adopting the Assessment Roll as proposed for the 2024 PMP Street & Utility Improvement Project as it relates to 1370 Colleen Avenue with any changes they deem appropriate. The parcel located at 1370 Colleen Avenue consists of two parcels, namely Lot 2 and Lot 3, Block 6, of the Briarknoll plat, and Lot 3 is an undeveloped lot The Assessment as proposed: • The improved portion of the parcel, Lot 2, shall be assessed in the amount of $6,045.00 • Proposed to be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday in January 2025 and will bear interest at the rate of 4.75% The owner of the assessed property may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the Assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the Assessment. The owner may, at any time thereafter, pay to the City, the entire amount of the remaining unpaid Assessment, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. The Deferred Assessment as proposed: • The unimproved portion of the parcel, Lot 3, shall be set at $6,045.00 • Proposed to be deferred for a period of 20 years, or until the parcel is legally subdivided or sold by the current owners, or the owners' heirs, at which time the Deferred Assessment shall become payable in equal installments extending over a period of 10 years. • Will bear a rate of 0.00% per annum from the date of adoption of the Deferred Assessment, until December 31, 2044, or until December 31 of the year in which the property is legally subdivided or sold, whichever occurs first. Such accrued interest shall be forgiven as of December 31, 2044, or as of December 31 of the year in which the property is legally subdivided or sold, whichever occurs first. From January 1, 2045, or January 1 of the year following the legal subdivision or sale of the property, whichever occurs first, the Deferred Assessment will bear a rate of 4.75% per annum. Per Minnesota Statutes § 429.061, subd. 2, deferred assessments must also be recorded with the County Recorder. The City must record a certificate of deferred assessment that includes the legal description and the PID, as well as the amount deferred. Also, per Minnesota Statutes § 435.194, the owner has to fill out forms for the deferral, and when it is granted, the County Auditor also must record a notice with the County Recorder. Attachments Attachment A: Assessment Roll — 1370 Colleen Avenue Attachment B: Resolution 2024-028 Page 3 of 3 Attachment A AS -BID ASSESSMENT ROLL - 1370 COLLEEN AVENUE 2024 PMP STREET 8 UTILITY IMPROVEMENTS CITY OF ARDEN HILLS, MINNESOTA BMI PROJECT NO. OT1.130188 E,E/2024 o 6.5,Co 5 $ �2AIo Ili lt- -t1R�EN Hll,LS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2024-028 Attachment B RESOLUTION ADOPTING SPECIAL ASSESSMENT ROLL FOR THE 2024 PMP STREET IMPROVEMENT PROJECT WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met and heard and passed upon all objections to the 2024 PMP Street Improvement Project, the improvement of: • Keithson Drive from County State Aid Highway (CSAH) 96 West to 800 feet south of CSAH 96 West; • Royal Hills Drive from Snelling Avenue North to Arden View Drive; • Colleen Avenue from McClung Drive to Hamline Avenue North, which includes the property at 1370 Colleen Avenue (PID: 223023310064); • Norma Avenue from Dawn Circle to Briarknoll Drive; • Norma Avenue from Briarknoll Drive to Colleen Avenue; • James Avenue from Indian Oaks Trail to Colleen Avenue; • Briarknoll Circle; • Briarknoll Drive from Snelling Avenue North to Norma Avenue; • Royal Lane from Norma Avenue to Floral Drive West; • McClung Drive from Snelling Avenue North to Colleen Avenue; • Colleen Circle; • Arden Vista Court; and WHEREAS, the parcel located at 1370 Colleen Avenue consists of two parcels, namely Lot 2 and Lot 3, Block 6, of the Briarknoll plat, and Lot 3 is an undeveloped lot; and WHEREAS, the City Council determined that the assessment for Lot 2 shall be assessed in the amount of $6,045.00 (the "Assessment"); and WHEREAS, the City Council further determined that the assessment for Lot 3 shall be set at $6,045.00, but payment of such assessment shall be deferred pursuant to Minnesota Statutes § 429.061, subd. 2 (the "Deferred Assessment"), according to the terms herein. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ARDEN HILLS, MINNESOTA: 1. Such proposed Assessment and Deferred Assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. To view the final document, access adopted Resolutions via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage. Page 1 of 2 2. Such Assessment is proposed to be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday in January 2025 and will bear interest at the rate of 4.75% per annum from the date of the adoption of the assessment resolution. To the first installment shall be added interest on the entire assessment from the date of the assessment resolution until December 31, 2024. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. Such Deferred Assessment is proposed to be deferred (a) for a period of 20 years, or (b) until Lot 3 is separated from Lot 2 for separate development or is sold by the current owners, or the owners' heirs, at which time the Deferred Assessment shall become payable in equal installments extending over a period of 10 years, whichever occurs first the first installment be payable on or before (a) the first Monday in January 2045, or (b) on or before the first Monday in January of the year following such lot separation or sale. 4. The owner of the property so assessed against Lot 2 may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the Assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the Assessment. The owner may at any time thereafter, pay to the City the entire amount of the Assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. 5. The Deferred Assessment will bear a rate of 0.00% per annum from the date of adoption of the Deferred Assessment, until (a) December 31, 2044, or (b) until December 31 of the year in which Lot 3 is separated from Lot 2 for separate development or is sold, whichever occurs first. Such accrued interest shall be forgiven (a) as of December 31, 2044, or (b) as of December 31 of the year in which Lot 3 is separated from Lot 2 or is sold, whichever occurs first. From (s) January 1, 2045, or (b) from January 1 of the year following the lot separation or sale of the property, whichever occurs first, the Deferred Assessment will bear a rate of 4.75% per annum. 6. The clerk shall forthwith transmit a certified duplicate of the Assessment to the county auditor to be extended on the property tax lists of the county. Such Assessment shall be collected and paid over in the same manner as other municipal taxes. The clerk shall also forthwith transmit a certificate of the Deferred Assessment to the county auditor. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 28TH DAY OF MAY, 2024. David Grant, Mayor ATTEST: Julie Hanson, City Clerk To view the final document, access adopted Resolutions via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage. Page 2 of 2