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Home My WebLink About2022-06-08 CC Packet CITY OF CENTERVILLE CITY COUNCIL MEETING AGENDA Wednesday, June 8, 2022 6:30 p.m. Meeting Live Streamed at: https://northmetrotv.com/centerville-stream/ COUNCIL MEETING (6:30 PM) I.CALL TO ORDER City Hall Copy 1.Roll Call II.PLEDGE OF ALLEGIANCE III.APPROVAL OF AGENDA IV.APPOINTMENTS/PRESENTATIONS 1.Chief James Mork – Centennial Lakes Police Department Annual Report 2.Brad Falteysek, Abdo Solutions – 2021 Audit Presentation V.PUBLIC HEARING 1.None VI.APPROVAL OF MINUTES 1.None VII.CONSENT AGENDA 1.City of Centerville Claims through June 8, 2022 (Check #35118-35160), (1889E- 1897E) & (Voided Check #1894,1894,1896, & 35139) 2.Centennial Lake Police Department Claims through June 2, 2022 (Check #14333- 14338) & (Check #14341-14345), (Voided Check #14304), Payroll (Check #14339- 14340) & (2022039E-2022041) 3.Centennial Fire District Claims through May 24, 2022 (Check #9315-9321) 4.Encroachment Agreement for 7154 Mill Road – Fence 5.Encroachment Agreement for 1760 Dupre Road – Fence 6.Special Event Permit Application – Centerville Lions (Fete des Lacs) a.Use of Laurie LaMotte Park – July 12-16, 2022 b.Cornerstone Park – July 14, 2022 (Concession Trailer) c.Hidden Spring Park – July 12, 2022 (Concession Trailer) d.Temporary On-Sale Liquor License – July 12-16, 2022 7.Parks & Recreation Recommendation to Purchase Appreciation Items for Volunteer Appreciation Event – Not to Exceed $1,000 8.Resolution 22-0XX Interim Use Permit Extension – Atlas Villas VIII.OLD BUSINESS 1. None IX. NEW BUSINESS 1.2021 Audit Acceptance 2.Toolcat Purchase 3.Resolution 22-0XX Amazon Fulfillment Center a.Revised Developer’s Agreement b.Maintenance Agreement between Rice Creek Watershed District and City 4.Resolution 22-0XX Ordering the Feasibility Report for the 2022 Thin Overlay and City Hall Parking Lot Improvements 5.Review of Business Water Hook-up Assistance Program 6.Review of Water Hook-up Ordinance 7.Moving June 20 council meeting to June 21 8.Professional Photography Services for the New Website X. COUNCIL/ADMINISTRATOR ANNOUNCEMENTS 1.Administrator/Engineer Report 2.Council Reports a.Lakso Parks & Recreation Anoka County Fire Protection Council b.Koski Planning & Zoning Commission Fire Steering Committee c.King Economic Development Authority Fire Steering Committee d.Mosher Economic Development Authority Police Governing Board e.Love North Metro Telecommunications Commission Police Governing Board Other Mayoral Reports XI. ADJOURNMENT INFORMATIONAL MATERIAL Memorial Day Newspaper Ad Met Council Population Estimates (2021) REMINDERS All meetings begin at 6:30 PM unless otherwise noted and Via Zoom EDA – Wednesday, June 15, 2022 Fete des Lacs Committee – Wednesday, June 15, 2022 (5:00 PM) City Council – Monday, June 20, 2022 (5:00 Workshop/6:30 Mtg)***On Agenda for Date Change Fete des Lacs Committee – Wednesday, July 6, 2022 (5:00 PM) Parks and Recreation Committee – Wednesday, July 6, 2022 Planning and Zoning Commission – Tuesday, July 12, 2022 **Note special date** , 2022 th Chief James Mork Wednesday, June 8 Centerville City Council Meeting Awards and Promotions, Hires, New Division Patrol Program Off Drop Drug Prescription Connections Community Statistics Crime 2021 CENTENNIAL LAKES POLICE DEPARTMENT 2021 ANNUAL REPORT Centennial Lakes Police Department ΔΓ .®±³§ 2® £ Ȟ #¨±¢«¤ 0¨¤²Ǿ -. ΔΔΏΐΓ 0§®¤Ȁ ΖΕΒȃΖΗΓȃΑΔΏΐ Ȟ & ·Ȁ ΖΕΒȃΖΗΓȃΏΏΗΑ ¬ ¨«͔¢«¯£¬ȁ¢®¬ Ȟ ¶¶¶ȁ¢«¯£¬ȁ¢®¬ SERVING THE CITIES OF: CENTERVILLE, CIRCLE PINES and LEXINGTON TABLEOFCONTENTS Our Cities, Our Department, Our Mission, Our Motto, And Our Values.............................2 ..............................................................................................................3-4 .............................................................................................................5 Department History............................................................................................................6 Organizational Structure....................................................................................................7 Leadership Team...............................................................................................................8 Department Personnel/Governing Board...........................................................................9 The Cities We Serve....................................................................................................10-12 Centerville.....................................................................................................................10 Circle Pines...................................................................................................................11 Lexington......................................................................................................................12 Criminal Investigations Unit............................................................................................13 Support Service Bureau...................................................................................................14 Community Service Officers............................................................................................15 Police Chaplain................................................................................................................16 Community Emergency Response Team.........................................................................17 Reserve Officer Unit........................................................................................................18 Emergency Medical Response.........................................................................................19 Training............................................................................................................................20 Patrol Division..................................................................................................................21 Social Media.....................................................................................................................22 Prescription Drug Drop-Off Program................................................................................23 Community Connections.............................................................................................24-30 2021 Crime Statistics.................................................................................................31-38 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 1 Our Cities, Our Department, Our Mission, Our Motto, and Our Values. The Cities of Centerville, Circle Pines, and Lexington are suburban communities that are part of a metropolitan area that is conveniently located just north of Minneapolis/St. Paul. The quality of life for our citizens is exceptional. Our community offers affordable housing, a variety of recreational and open space opportunities, convenient shopping, as well as very responsive municipal services. There are excellent educational opportunities available forour residents through the Centennial School District and numerous quality colleges and universities within easy commuting distance. Our community affords the serenity, safety, and stability of small-town living yet we are close to the amenities of the big city. safe in their homes, neighborhoods, parks, and schools. They are also appreciative of the high quality of local safety services. Our three Cities have combined resources to create the Centennial Lakes Police Department, a unique joint governance law enforcement agency. We are comprised of 24 highly professional sworn and civilian personnel who are dedicated to delivering quality safety service to our citizens. Local fire protection and suppression service is provided by the Centennial Fire District and the Lexington Fire Department. These agencies combinedwith the Centennial Lakes Police Departmentandthe Allina and MHealth Ambulance services provide an excellent emergency medical rapid response system. Our officers respond to all calls for service, enforce criminal and traffic laws, provide deterrent patrol, engage in proactive policing and problem-solving measures, and foster positive interactions with our citizens. It is the mission of the Centennial Lakes Police Department to enhance the quality of life for those living in our three Cities by providing highly professional and responsive safety service. We are dedicated to carrying out our mission with pride and professionalism. We value quality andintegrity in police services and we are committed to continued safety and stability of Centerville, Circle Pines, and Lexington. We are also committed to organizational excellence and to fulfilling our motto of 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 2 Chief James Mork Dr. Stephen R. Covey wrote some very poignant thoughts on the Nobility of Policing. officer, in an instant, can impact an individual for life, and even a community for generations.Given this realization, every police officer must be centered on what is important.Service, justice, and fundamental fairness, these are the foundational principles in which How different would our world be today if every officer always focused on service, justice, and fundamental fairness?At theCentennial Lakes Police Department,we sum that up with our motto of Serving with Courage and Compassion.That motto means so much to us that we have it printed on the hood of our squad cars.In addition to that, I challenge every officer to leave each call better than they found it.That may seem like a simple statement, but leaving a call better than they found it can have a profound change on a community and their view of police officers.How do you eat an elephant?One bite at a time.How do you change policing?One call at a time. One of the big challenges of 2021 continued to be Covid-19 and the uncertainties that disease presented in the short and long term.We took the necessary precautions and protective measures to stay healthy, we no longer have to consider it a threat.One of the negative results of being quarantined and having to change so many of our daily routines resulted in additional calls for service for mental health and crisis response.Whenever the right opportunity presented itself, we partnered with the Anoka County Crisis Response team that was called out 24/7 to respond to mental health crisis calls.We are thankful for that partnership and their professionalism.Covid-19 and all the issues that surround it, aswell as everyday life can be burdensome for officers. mental health.Knowing that officers suffer from the same issues that everyone else in the community suffersfrom, as well as being exposed to traumatic calls repeatedly, we wanted to make sure that the officers had the right tools in place to deal with those issues in a healthy manner.We teamed up with a local counseling office that specializes in keeping police officers healthy.Our program requires each officer to meet with a counselor at least once per year to discuss how things are going.By having everyone attend, it removes any stigma that officers may feel goes along with meeting a counselor.It alsoIf the officer would benefit from additional sessions, we allow for that as well.I personally have participated in this program and have found it very helpful and non-threatening. It is a fantastic way to know what your police department is up to.In January of 2021 we promoted Lieutenant Aldrich to the position of Captain.In April we promoted Officer Katy Mannin to the position of Corporal, and she is the first 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 3 Chief James Mork female officer in the history of the department to be promoted in rank.In July we celebrated the annual Fete des Lacs (Festival of Lakes) in Centerville, and Officers Schroeder and Johnson received Life Saving Awards.Officer Goetzke was promoted in July to the rank of Sergeant.In August we had a great time visiting parties at Night to Unite in Centerville, Circle Pines, and Lexington, and Anthony Tonda was sworn in as our newest officer.In October Officer John Krueger was promoted to Corporal, the same rank he held previously as a US Marine.Many of our staff assisted with making the holidays a little brighter in December by delivering food, gifts, and holiday cheer to families in our communities. or space to mention all of it.Just know this, CLPD is working hard every day to ensure we provide the highest level of service possible to our constituents.As you look through our annual report, I hope you are pleased with all the good work our staff is doing.Feel free tocontact me with any questions. Governing Board, City Administrators, Citizens, and Business Community for their continued support and cooperation.all continue to work together to make our cities in Anoka County the best places to live, work, and play! Yp|t\\~z Chief of Police Chief Mork &Sergeant Goetzke. Brian Goetzke being promoted to Sergeant - July 2021 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 4 Captain Captain Pat Aldrich rd In 2022, I will be starting my 23year at CLPD. My entire law enforcement career has been dedicated to this agency. I have continued to teach aspiring law enforcement students at Century College. Maintaining positive contacts with our citizenry, while navigating through Covid-19, has been our Policing has changed drastically over the past 22 years. These changes have helped us police better and provide the necessary services to maintain positive community relationships. Through teaching, I have been able to share my experiences with, as well as learn from, many diverse cadets from the Captain Pat Aldrich Minnesota State Patrol, DNR and Minneapolis PD We hired one officer in 2021. During a time period of competitive hiring, low law enforcement recruit numbers, and troubling retention strategies, we are fortunate to maintain a great group are having trouble filling employee rosters. We hope we can maintain a great work environment Even though there was a global negative perception on law enforcement, we as an agency remained positive, and the expectations of our officers have remained paramount. Through our everyday interactions we are encouraged that our citizens still support our department and our officers. Pat Aldrich Captain 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 5 Department History In the late , Herman Heath became the first day-time Constable for Circle Pines. City Councilmen took turns providing policing duty at night. - The Village of Circle Pines acquired an ambulance/squad car to patrol and to transport injured or ill residents the many miles to the nearest hospital. In 1954, Joseph Matzke became the first Lexington police officer. Officer Matzke was paid $10 per month to cover gas and other expenses, plus he received a portion of the fines assessed for infractions of ordinance. As early as 1965, a joint police force was discussed between Lexington and 1975 that a joint powers agreement was adopted by the two cities creating a combined police department. The police department was governed by a commission, rather than directly by the two city councils. Ronald Nicholas became the first Chief of the Circle Pines- Lexington Police Department. The department, consisting of four officers, was first housed in a portioned- -time officers were later added to extend coverage. All officers shared one police patrol car, a 1973 Plymouth inherited from the City of Lexington. In 1978, the police department moved from the fire barn to an office in the shopping area of 9201 Lexington Avenue. In June of 1986, the department moved again, this time into the lower level of the newCircle Pines City Hall. In 1991, the Circle Pines-Lexington Police Department began providing contracted police protection to Centerville. In December of 1999, a Joint Powers Agreement was completed, and on January 1, 2000, a tri-city We take great pride enforcement and safety services to the cities of Centerville, Circle Pines, and in our entire Lexington. community, our department, and in In 2006, a new police station was built on the corner of North Road and Lake our commitment to Drive in Circle Pines. Today the Centennial Lakes Police Department is protect and serve comprised of 17 sworn officers and 7civilians who are fully dedicated to the citizens of the providing quality service to our three cities. Exceptional personnel, a low cities of Centerville, crime rate, public confidence in our ability and integrity, policies and practices in accord with national standards, and innovative problem-solving Circle Pines, and and outreach programs are just a few of our noteworthy accomplishments. Lexington. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 6 2021Organizational Structure 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 7 Leadership Team James Mork Chief of Police Responsible for overall operations and functions of the Centennial Lakes Police Department, including public information/media, and emergency management.He holds a Bachelor of Arts Degree in History from Bethel College, received his Law Enforcement Certi Education, and Administration from the University of St. Thomas, and is a graduate of Northwestern University School of Police Staff and Command. Pat Aldrich Captain Responsible for patrol operations and community service. He holds a Bachelor of Science Degree in Criminal Justice from the University of St. Thomas and a Master of Science Degree in Criminal Justice from Metropolitan State University. Lt. Aldrich is a graduate of the Senior Management Series at the Minnesota Bureau of Criminal Apprehension (BCA) and is a graduate of the Public Safety Executive Leadership Program in the Humphry School of Public Affairs at the University of Minnesota. Pat is currently an adjunct professor at Century College where he has worked with the Minnesota State Patrol LETO program, DNR Academy and Pathways program for law enforcement professionals. Matt Giese Administrative Sergeant Responsible for day shift supervisor of patrol personnel and supervisor of the Investigations division. Field Training Officer, Use of Force instructor and Body Worn Camera Program Administrator. He holds an Associates of Science Degree in Law Enforcement from Alexandria Technical College. Sergeant Giese is a graduate of the Supervision and Management Program atthe Minnesota Bureau of Criminal Apprehension. Nolan Wahlberg Sergeant/Patrol Responsible for evening and night shift supervision of Patrol officers. He is the department firearm instructor, less lethal instructor and Taser instructor. Sgt. Wahlberg also operates as a field training officer. Sgt Wahlberg is a graduate from the University of Minnesota-Crookston and holds a Bachelor degree in Criminal justice with a Law enforcement emphasis. Brian Goetzke Sergeant/Patrol Responsible for afternoon and night shift supervision of patrol officers. Sgt. Goetzke holds an Associates of Science Degree in Criminal Justice from Inver Hills College and earned his Law Enforcement Certificate from Hennepin Technical College. Sgt. Goetzke also serves as a Field Training Officer, Use of Force Instructor, and Taser Instructor. Kathy Honkomp Office Supervisor Responsible for management of office/records functions and personnel. She holds a degree in Computer Operations from Century College and a certificate in Operating Systems/Fundamentals of Electronic Data Processing from Saint Paul Technical College. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 8 Department Personnel GoverningBoardLeadershipTeam Centerville: Circle Pines Investigations Lexington: PatrolOfficers CityAdministrators Centerville Circle Pines Lexington CommunityServicesOfficers Records/ClericalSupport ReserveOfficers CERTCoordinator PoliceChaplain 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 9 The Cities We Serve CENTERVILLE The City of Centervilleis located in eastern Anoka County approximately 13 miles north of St. Paul. encompasses an area of 2.4 square miles. Centerville and Peltier Lakes provide the area with recreational opportunities for fishing and boating. Centerville is also the entrance for the Rice Creek Chain of Lakes County Park and Trail System. The park includes a beach, a boat launch, a large campground, a walking/biking trail, a playground, and facilities for family events and civic functions. The entire park is a popular destination for outdoor sports enthusiasts and families seeking a rural-like refugee from the big city. Centerville is a growing community with a business park and land available for future residential and retail Church and nearby Eagle Brook Church. The close-knit community hosts a number of very popular civic events throughout the year including fishing tournaments, running and bicycle races, ski shows, and the Fete des Lacs summer festival and parade. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 10 The Cities We Serve CIRCLE PINES The City of Circle Pinesis located 15 miles north of Minneapolis and boarders the Cities of Blaine, Lino Lakes, Shoreview, and Lexington. Circle Pines is a predominately residential community of nearly 5,000 people. The 2 square miles of land area is fully developed. Lake Drive is a major thoroughfare through the City providing direct access to area freeways. Circle Pines is the only suburban city that operates its own natural gas distribution company a result of its cooperative history. The system serves all of Circle Pines and portions of the Cities of Blaine and Lino Lakes. Circle Pines also provides its own water and sewer utilities to its residents. Circle Pines is a great place to live, raise a family, do business, or just visit. In 2011 the City of Circle Pines District is highly regarded in the State of Minnesota providing area students with award winning academic and athletic programs and facilities. Circle Pines is a vibrant community with a diverse housing stock. A small but successful business community supports its primarily residential base. The City is home to a County branch library, area post office, many parks and open spaces, walking paths, several lakes, and a variety of recreational facilities. The City of Circle Pines boasts a comprehensive municipal service center and is dedicated to livability through quality services. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 11 The Cities We Serve LEXINGTON Located in the southeastern corner of Anoka County the City of Lexingtonis a small suburban community of just nearly 3,000 residents. The very proud and tight-knit community is adjacent to the I-35W freeway providing easy access to virtually anywhere in the Minneapolis/St. Paul metropolitan area. Lexington is host to a variety of businesses, retail shops, restaurants, and several very popular entertainment venues. The Northway Shopping Center located along the central corridor of Lake Drive includes a grocery store that provides goods and services to a much larger area population base. Lexington Memorial Park is a popular venue for summer little league teams from throughout the region. Residents enjoy a variety of other recreational amenities associated with this very large park complex. The City of Lexington was incorporated as a village in 1950. Leo Ryan was a local civic leader who was instrumental in organizing the petition for the new village. Ryan suggested that the village be named Lexington in honor of his old army unit, the First Pioneer Infantry Regiment which was formed at the beginning of the Revolutionary War. That unit met the British in the Battle of Lexington. Various City themes and names now revolve around the Revolutionary War and Battle of Lexington, uding Patriot Lane, Liberty Lane, and Minutemen Lane. The citizens of the City of Lexington are very proud of their history, heritage, and home town. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 12 Criminal Investigations Unit The investigations unit of the police department continues to be a proactive resource for the citizens of Centerville, Circle Pines, and Lexington.In 2021, the Investigations Unitreviewed hundreds of reports that were submitted by patrol officers, AnokaCounty Child Protection, the Minnesota Adult Abuse Reporting Center, and other agencies, along with information obtained from citizens and confidential informants during the course of their work. Our investigations unit relies on body worn camera footage resulting in prompt and successful resolution Detective Dennis Spreng of cases. include reviewing gun permit applications, conducting background investigations for city employees and business licenses, managing digital evidence, processing physical evidence, forfeitures, filing cases with prosecutors, and preparing and serving search warrants. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 13 Support Services Bureau The Records/Clerical Support Services Bureau provides essential assistanceto Centennial Lakes officers, administration, other criminal justice agencies and the citizens of Centerville, Circle Pines, and Lexington. The members of the Records/Clerical Support team take great pride in providing excellent customer service while offering assistance with accurate crime data information. Police Record Technicians are responsible for all aspects of document control, includingcopying, distribution, data Donna Anderson entry and filing of police reports, records, and citations. In addition to maintaining Alyssa Zech police records, the support staff responds to various inquiries by phone, walk-in, email and direct mail from the public and other criminal justice agencies. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 14 Community Service Officers Our Community Service Officers (CSOs)engage in a wide variety of para-professional support duties, including investigating civil complaints and enforcing city ordnance code violations. gain voluntary compliance with property maintenance ordinances in all three of our Cities. The Community Service Officers also perform vehicle lock-outs, patrol our parks, respond to medical emergencies, conduct animal control duties, support the clerical staff, collect and transport abandoned property, and assist with traffic control at specialevents and accident scenes. They play an integral role in supporting and assisting our sworn officers and in maintaining the quality of life enjoyed by our citizens. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 15 Police Chaplain In my role as volunteer chaplain, 2021 resembled 2020 in regard to the Covid-19 pandemic and necessary safety protocols. Being an immunocompromised individual, Ineeded to follow CDC extra protection measures in carrying Chaplain out my service to the officers and Joel Heckman communities. During the year, although my in-person involvement remained somewhat limited due to the pandemic, I was honored to participate in ride-alongs with three officers after their field training was completed. Additionally, officers requested my assistance during four death incidents in the community. As in the past, Fire Chaplain Rev. Patricia Clearence graciously assisted when needed if I was unavailable. Sharing a meal or coffee outdoors was more the norm during my interactions with the officers as I was blessed during September to mark ten years serving as department chaplain. As required by the BCA, I completed CJIS training to ensure compliance with confidentiality in having access to the department and work stations as a volunteer. While attending officer roll calls and visiting with officers and staff,confidential information may be seen or shared and my commitment to adhering to BCA guidelines is mandatory and documented. Thankfully, none of the officers were injured or killed when an individual fired at the department striking the building and a squad! I continue to uphold the officers, staff, and governing group in prayer, mindful that those who have dedicated themselves to protect and serve us need divine intervention as well as us caring for and supporting them in these arduous times. Chaplain Joel Heckman 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 16 Community Emergency Response Team 2021 CERTis a well-trained and highly motivated group of th volunteers from the Centennial Lakes community. Using a marks the 13year standardized national training curriculum, team members that the wereprepared and available to support police and other first Community Emergency responders in the event of an emergency. Within that Response Team curriculum, team members learn basic medical operations, personal safety and a variety of other important skills that are (CERT) tice. Team members are a critical has been part of the component to a strong emergency management program Centennial Lakes and are the basis for an effective and comprehensive Police Department!community disaster response. Key activities of 2021 included; -Program coordinator Officer Haley Linder organized a new round of training and put together a campaign to recruit new members. The coursework and instructors are prepared and ready for when a full classcan be recruited. -This year the Centennial Lakes CERT program made some excellent connections with other area programs. Officer Linder was invited to sit in on CERT events hosted by a neighboring community and make some great connections while learning some new ideas for the CLPD program. -Over the years the CERT program has accumulated numerous supplies to support training and equip team members. This year program coordinators spent time organizing and inventorying supplies. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 17 Reserve Officer Unit The Centennial Lakes Reserve Officer Unitis comprised of community members who volunteer their time to fulfill several roles around the Police Department.The Centennial Lakes Police Department is proud to have Reserve Officers willing to get involved in ourcommunities. . Reserve Officers are uniformed and provide valuable services.Police Reserves perform volunteer services and assist full-time officers protecting and serving our communities of Centerville, Circle Pines, and Lexington. Tasks performed are those permitted by law and authorized by the Police Chief. These tasks include patrolling neighborhoods and parks, controlling traffic and crowds at crashes and events, assisting officers with inventory of impounded vehicles, and securing crime scenes. Each Reserve Officer must successfully pass the department Field Training program. This training includes legal issues, radio usage, use of force, traffic control, and first aid. In 2021, the Reserve Unit volunteered 310 hours of their time to the department. Twenty plus former Reserve Officers have gone on to careers in law enforcement. Some have remained with Centennial Lakes while others have been employed with other state, county, and local departments. The Reserve program coordinators are Sergeant Wahlberg, Corporal Mannin and Officer Larson. Reserve Sergeant Yarwood & Reserve Officer Bengtson Centennial Lakes Police Department Corporal Mannin, Reserve Sergeant Yarwood, Reserve Officer Bengtson and Officer Larson. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 18 Emergency Medical Response Each year officers of the Centennial Lakes Police Department respond to over 600 medical emergencies across our three cities. Calls for help can range from a simple nose bleed to a cardiac arrest. All CLPD Officers are either certified Emergency Medical Responders, Emergency Medical Technicians (EMTs) or Paramedics.In addition, our squads are equippedwith a wide array of life-saving equipment including automatic external defibrillators (AEDs), Narcan (anti-opioid overdose kits), oxygen, tourniquets, airways, and the revolutionary ResQPUMP System to assist in delivering chest compressions during CPR. . In most cases our officers are the first to arrive on the scene of a medical emergency and are able to stabilize a situation until Fire/Rescue and/or an Ambulance Paramedic Unit arrives.CLPD Officers are the first essential link in the chain of critical care for the victims of injuries or illnesses. Early response and intervention have been shown to have a critical impact in a variety of medical emergencies. Fortunately, we are generally positioned to respond quickly when minutes can make the difference between life and death or at least minimizethe long-term adverse impacts of a medical situation. Our officers provide medical aid that improves the prospects of a full recovery for countless victims of medical emergencies.We find that it is reassuring to our citizens to know that we are trained, equipped, and readily available to respond to any and all emergency medical situations. Many of our officers have been honored with life-saving awards and medals for everything fromresuscitating the victims of heart attacks, to bringing back the victims of drug overdoses, to delivering babies.Even the victims of less critical situations can be reassured and comforted by the presence of a Police Officer/Medical First Responder. We are very proud to be an important component of our local emergency medical response system. The partnerships that we have established with other area EMS providers include our local Fire Departments and Allina and MHealth medical services.It is an exceptionally high- level partnership and service that assures our citizens of the very best in critical emergency medical response and care.It is also one more important example of where we are serving and protecting the citizens of Centerville, Circle Pines,and Lexington. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 19 Training Centennial Lakes Police Officers consistently attend both mandatory and elective training throughout theyear.This training includes: de-escalation tactics, implicit bias awareness, mental health and autism recognition, use of force, firearms/active shooter, and emergency vehicle operations.Through Daily Training Programs, officers revisit department policy, watch videos, conduct real-life scenarios, and discuss current events.The officerscontinue to work with the Centennial Fire District to achieve required emergency medical training. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 20 Patrol Division CorporalAndy DixonOfficer Rey Hernandez Corporal Jon Krueger CorporalKaty Mannin OfficerAnthony TondaOfficer Bryan Johnson Officer Logan LarsonOfficerTyler Schroeder Officer Benjamin Stepan Part-Time Officer OfficerHaley Linder Faheem Karim 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 21 Social Media CLPD has continued to use Social Mediaas an upfront outlet to the news, happenings, and pulse of the department and community alike.The number of followers we have generated on Facebook, Instagram, and Twitter continues to grow and help keep us connected with citizens. The goal of the CLPD social media outlets is to let you know we care, we are here for you, and as always, we encourage you to call us if you need us. Through a positive and informative approach, we hope to reach even more citizens in the years to come, and let followers know we live and work in a great community. The social media team includes: Sergeant Wahlberg, Corporal Dixon, Corporal Mannin, Officer Stepan and Officer Linder.In the true sense of the CLPD dly and are proud to do this job. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 22 Prescription Drug Drop-Off Program The Centennial Lakes Police Department is one of many sites where unused prescription medications can be dropped off as part of the Anoka County Prescription Drug Drop-Off Program.This gives community members the opportunity to bring in unwanted or expired prescription medications to be disposed of in a way which is safer for the environment. This program continuesto be extremely popular.The drop off station in our foyer was emptied several times throughout 2021.Several hundred pounds of medications were collected and safely destroyed. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 23 Community Connections Members of the Centennial Lakes Police Department have the good fortune to participate in many community outreach events, ranging from Night to Unite, 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 24 Community Connections Detective Spreng at the Fete Des Lacs Festival in Centerville -July 2021 Chief Mork at the Golden Lake Easter Egg Hunt in Circle Pines -April 2021 Public Safety Night at the Centerville Fete Des Lacs Summer Festival July 2021 Night to Unite Night to Unite is a great way to get to know your neighbors. Whether you live in Circle Pines, Lexington or Centerville, this is a great way to build neighborhood involvement by bringingPolice and Communities together. Officer Johnson participating in the Night to Unite August 2021 Fete Des Lacs kick ball gameJuly 2021 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 25 Community Connections CLPD was June 2021 Officer Tonda & Corporal Mannin CSO Lambrecht and Corporal Dixon visited with these young taking in some ice-cold Lemonade on entrepreneurs selling Orange Tang a hot day July 2021 September 2021 This young ladyand her siblings made this blue line flag to show support for policeJune 2021 Bike With ACop program with Officer Stepan June and July 2021 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 26 Community Engagement Community Connections Chief Mork, Officer Tonda, Sergeant Goetzke, Officer Schroeder and Officer Johnson. Corporal Mannin & CSO Daddario at Golden Lake Elementary in Circle Pines-June 2021 CSO Daddario spottedthe bikers in this photowearing helmets Chief Mork giving a tour to thisGirl Scout TroopMay 2021 September 2021 Officer Stepan participating in Movember, growing of facial hair to raise awareness of November 2021 Officer Tonda at the Lexington Fall Festival September 2021 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 27 Community Connections Corporal Mannin saving baby ducklings that had CSO Daddario with thank you notes fallen down the storm drain and were unable to from the communityMay 2021 escape June 2021 Corporal Dixon with one of our residents July 2021 Officer Karim Officer Larson giving fishing advise to one of Brian Goetzke received a our local fishermenJuly 2021 homemade piefrom Chaplain Heckmanafterbeing promoted to SergeantJuly 2021 Some of the officers wore pink badges in October for Breast Cancer Awareness Officer Tonda Officer Larson & Officer Johnson monthOctober 2021 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 28 Community Connections Corporal Mannin and CSO Lambrecht at the Halloween Hustle 5K in Centerville October 2021 CLPD hosted severalstudents from Centennial High School who are interested in Law Enforcement and Criminology November 2021 Heroes and Helpers is an organization that helps bring about an extra special holiday season for children in our local elementary schools. Officers go on a shopping spree with the kids and help CLPD staff started a collection box for non- them pick out gifts for their family. perishable food items. Officer Tonda Officer Johnson, Tonda and Larson delivered them to the Centennial wrapping the gifts December 2021 Community Food Shelf December 2021 Captain Aldrich and Chief Mork at- November 2021 Centennial Fireon 9-11-21 posted in front of CLPD in remembrance of 09-11-01. 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 29 Community Connections 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 30 2021Crime Statistics Circle Pines AgencyAgencyCentervilleLexingtonOut of Group A 2021 2020202120212021Area Crimes Totals TotalsTotalsTotalsTotals2021 Totals Arson 000000 Assault Offenses 43621514330 Burglary 1891530 Counterfeiting/Forgery 22178630 Destruction/Damage/Vandalism 54471414190 Drug/Narcotic Violations 34751416432 Drug Equipment Violations 2027106110 Embezzlement 022000 Extortion/Blackmail011000 Fraud Offenses 29421012200 Homicide Offenses 000000 Human Trafficking Offenses 000000 Kidnaping/Abduction 000000 Larceny-Theft Offenses 1321385744370 Motor Vehicle Theft 861230 Pornography/Obscene Material120200 Robbery120200 Sex Offenses820200 Stolen Property Offenses72064100 Weapon Law Violations42744190 Animal Cruelty320110 Total3844811431342022 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 31 2021Crime Statistics Circle Pines AgencyAgencyCentervilleLexingtonOut of Group B 2021 2020202120212021Area Crimes Totals TotalsTotalsTotalsTotals2021 Totals Bad Checks221100 Curfew/Loitering/Vagrancy200000 Disorderly Conduct302578100 Driving Under the Influence8126037671560 Drunkenness010010 Liquor Law Violations3111460 Trespass of Real Property181402120 All other Offenses34426067103891 Totals4805731131852741 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 32 2021Crime Statistics CITATIONS ISSUED 1,305 506 323 275 201 Agency TotalCentervilleCircle PinesLexingtonOut of Area 2021 1,305275323506201 VERBAL AND WRITTEN WARNINGS ISSUED 4,490 1,602 1,575 1,152 161 Agency TotalCentervilleCircle PinesLexingtonOut of Area 2021 4,4901,5751,1521,602161 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 33 2021Crime Statistics ARREST REPORT 250 231 210 200 150 110 100 74 70 6363 58 50 3 0 0 Agency TotalCentervilleCircle PinesLexingtonOut of Area 20202021 DOMESTIC RELATED CALLS -2021 Circle Pines AgencyCentervilleLexingtonOut ofArea 2021 2021202120212021 Totals TotalsTotalsTotalsTotals 3388170 Domestic Assault 2214170 Domestic Escort Domestic Family/Partner 18426391163 Domestic Questions 51040 Harassment 1621130 Restraining Order Violation Social Services Referral (Alexander House, Adult 1314329590 Protection and/or Child Protection) Total 39181812263 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 34 2021Crime Statistics COMPLAINTS-2021 Circle Pines AgencyCentervilleLexingtonOut of Area 2021 2021202120212021 Totals TotalsTotalsTotalsTotals Complaints -Animals1654287351 Complaints Fraud/Scam135350 Complaints Motor Vehicle2051140 Complaints MV Road Rage11000 Complaints -Noise941846300 Complaints Ordinance Violation1633878470 Complaints -Snowmobile32100 Complaints All Other104150 Total4691152271261 ACTIVITY AND TRAFFIC REPORT 2021 AGENCY CENTERVILLECIRCLE PINESLEXINGTONOUT OF AREA TOTAL 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 35 2021Crime Statistics MEDICAL RELATED CALLS-2021 Circle Pines AgencyCentervilleLexingtonOut of Area 2021 2021202120212021 Totals TotalsTotalsTotalsTotals Check Welfare 2165869881 Death (DOA) 173770 Death Notification 30210 Detox Transport 32100 Drug Overdose 51040 Emergency Medical Hold 501413221 Lift Assist 502115140 Medical 6121742132187 Mental Health 401414102 Narcan Use of 20020 Suicide Attempts 71510 Suicide Threat (No attempt) 94320 Total 101429234236911 ACCIDENT REPORT 108 AGENCY TOTAL 105 17 CENTERVILLE 23 43 CIRCLE PINES 39 39 LEXINGTON 42 9 OUT OF AREA 1 020406080100120 20202021 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 36 2021Crime Statistics AGENCY TOTAL ACTIVITY REPORT (Group A Crimes, Group B Crimes, Accidents, Traffic, Citations, Warnings and Miscellaneous Activity) 1,103 Out of Area 591 551 5,398 Lexington 4,411 4,006 4,372 Circle Pines 4,906 4,907 4,103 Centerville 3,910 3,555 14,976 Agency Totals 13,818 13,019 02,0004,0006,0008,00010,00012,00014,00016,000 Agency CentervilleCircle PinesLexingtonOut of Area Totals 2021 14,9764,1034,3725,3981,103 2020 13,8183,9104,9064,411591 2019 13,0193,5554,9074,006551 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 37 2021Crime Statistics 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 38 CENTENNIALLAKES POLICEDEPARTMENT ServingwithCourageandCompassion 54 North Road Circle Pines, MN 55014 Phone: 763-784-2501 Fax: 763-784-0082 Website: www.clpdmn.com Mail: mail@clpdmn.com 2021 Annual Report CENTENNIAL LAKES POLICE DEPARTMENT 39 06/03/22 11:54 AM CITY OF CENTERVILLE Page 1 Check Detail - June 8, 2022 Check DateCheck #Vender NameCommentsAmount 16/8/2022035118 AIRFRESH INDUSTRIES, INC.PORTABLE RESTROOMS, LAMOTTE PARK, ACORN CREEK,TRA$777.00 Check Nbr 035118 AIRFRESH INDUSTRIES, INC.$777.00 16/8/2022035119 ALLSTREAMPHONE SERVICES THRU 6-22-22$100.81 Check Nbr 035119 ALLSTREAM$100.81 16/8/2022035120 ANOKA COUNTY TREASURYBROADBAND - SERV THRU JUNE 2022$37.50 16/8/2022035120 ANOKA COUNTY TREASURYBROADBAND - SERV THRU JUNE 2022$37.50 16/8/2022035120 ANOKA COUNTY TREASURYBROADBAND - SERV THRU JUNE 2022$37.50 Check Nbr 035120 ANOKA COUNTY TREASURY$112.50 16/8/2022035121 ANOKA COUNTY TREASURY DEPT.*JOINT POWERS AGREEMENT - ELECTIONS$805.64 Check Nbr 035121 ANOKA COUNTY TREASURY DEPT.*$805.64 16/8/2022035122 AUDREY RAJEWSKI-GUIMOND1ST PLACE - ELEM. LOGO CONTEST WINNER$100.00 Check Nbr 035122 AUDREY RAJEWSKI-GUIMOND$100.00 16/8/2022035123 BENDER, TERESAREIMBURSE OF PURCHASE FOR ANT & ROACH SPRAY$9.49 Check Nbr 035123 BENDER, TERESA$9.49 16/8/2022035124 BROOKE REBER2ND PLACE LOGO WINNER - MIDDLE SCHOOL$50.00 Check Nbr 035124 BROOKE REBER$50.00 16/8/2022035125 CENTENNIAL FIRE RELIEF ASSOC.REIMBURSE FOR FIREFIGHTER SRB REIMBURSEMENT$4,000.00 Check Nbr 035125 CENTENNIAL FIRE RELIEF ASSOC.$4,000.00 16/8/2022035126 CENTENNIAL LAKES POLICE DEPTPOLICE SERVICES - JUNE 2022$76,003.83 Check Nbr 035126 CENTENNIAL LAKES POLICE DEPT$76,003.83 16/8/2022035127 CENTERVILLE LIONSDONATION FROM BITUMINOUS ROADWAY, INC - FETE DES L$500.00 Check Nbr 035127 CENTERVILLE LIONS$500.00 16/8/2022035128 CHRISTOPHER LARSON2022 2ND QTR ASSESSING SERVICES$3,750.00 Check Nbr 035128 CHRISTOPHER LARSON$3,750.00 16/8/2022035129 CITY OF ROSEVILLEA. LEWIS RDP DUO LICENCE - SERV THRU 5-8-22 TO 12-31-2$122.00 16/8/2022035129 CITY OF ROSEVILLEJ. HUISENGA - SUBSCRIPTION AFTER RENEWAL - SERV THRU $93.00 Check Nbr 035129 CITY OF ROSEVILLE$215.00 16/8/2022035130 DORN, LORIACORN CREEK PARK MONUMENT - FLOWERS$57.84 Check Nbr 035130 DORN, LORI$57.84 16/8/2022035131 GOPHER STATE ONE CALL INCSERVICE THROUGH 5-2022$41.18 16/8/2022035131 GOPHER STATE ONE CALL INCSERVICE THROUGH 5-2022$41.17 Check Nbr 035131 GOPHER STATE ONE CALL INC$82.35 16/8/2022035132 GWENEVERE BLACKLOGO CONTEST WINNER - HONORABLE MENTION-MIDDLE SC$25.00 Check Nbr 035132 GWENEVERE BLACK$25.00 16/8/2022035133 HOLLYWOOD PYROTECHNICS INC.7-15-22 FIREWORKS - FETE DES LACS$7,800.00 Check Nbr 035133 HOLLYWOOD PYROTECHNICS INC.$7,800.00 16/8/2022035134 J. BECHER & ASSOCIATESREFUND PERMIT C21-058 -1811 LARAMEE LANE - CANCELLED$152.00 16/8/2022035134 J. BECHER & ASSOCIATESREFUND PERMIT C21-058 -1811 LARAMEE LANE - CANCELLED$1.00 Check Nbr 035134 J. BECHER & ASSOCIATES$153.00 16/8/2022035135 LISA KIESELHORSTREIMBURSEMENT FOR FLOWERS MONUMENT SIGN AT TRACY$63.63 Check Nbr 035135 LISA KIESELHORST$63.63 16/8/2022035136 LITTLE FALLS MACHINE, INC.FALLS LOGO POLY SPINNER$194.12 Check Nbr 035136 LITTLE FALLS MACHINE, INC.$194.12 16/8/2022035137 LOFFLER COMPANIESP.W. COPIER SERV THRU 5-31-22$89.96 Check Nbr 035137 LOFFLER COMPANIES$89.96 16/8/2022035138 MAKENA LATCHAM1ST PLACE LOGO WINNER - MIDDLE SCHOOL$100.00 Check Nbr 035138 MAKENA LATCHAM$100.00 16/8/2022035140 MCMAA. LEWIS MEMBERSHIP DUES - THRU 4-30-23$100.00 Check Nbr 035140 MCMA$100.00 16/8/2022035141 MEDIATION AND RESORTATIVE SERVMEDIATION AND RESTORATIVE SERVICES 2022$435.82 06/03/22 11:54 AM CITY OF CENTERVILLE Page 2 Check Detail - June 8, 2022 Check DateCheck #Vender NameCommentsAmount Check Nbr 035141 MEDIATION AND RESORTATIVE SERV$435.82 16/8/2022035142 MIKE FORSTER & RACHEL GROMEKREPLACEMENT CHECK FOR OVER PYMT ON UT BILL - ORGINA$292.17 Check Nbr 035142 MIKE FORSTER & RACHEL GROMEK$292.17 16/8/2022035143 MINN. DEPT. OF HEALTHQUARTER WATER TEST FEES$3,261.06 Check Nbr 035143 MINN. DEPT. OF HEALTH$3,261.06 16/8/2022035144 NATIONWIDE RETIREMENT SOLUTIONDEF COMP - PAY PERIOD 12$1,125.00 Check Nbr 035144 NATIONWIDE RETIREMENT SOLUTION$1,125.00 16/8/2022035145 NYKANEN INSPECTIONS LLCELECTRICAL INSPECTIONS THRU 5-31-22$467.20 Check Nbr 035145 NYKANEN INSPECTIONS LLC$467.20 16/8/2022035146 POSTMASTERANNUAL RENEWAL FEE - 1ST CLASS PRESORT PERMIT #20$44.17 16/8/2022035146 POSTMASTERANNUAL RENEWAL FEE - 1ST CLASS PRESORT PERMIT #20$44.17 16/8/2022035146 POSTMASTERANNUAL RENEWAL FEE - 1ST CLASS PRESORT PERMIT #20$44.17 16/8/2022035146 POSTMASTERANNUAL RENEWAL FEE - 1ST CLASS PRESORT PERMIT #20$44.17 16/8/2022035146 POSTMASTERANNUAL RENEWAL FEE - 1ST CLASS PRESORT PERMIT #20$44.16 16/8/2022035146 POSTMASTERANNUAL RENEWAL FEE - 1ST CLASS PRESORT PERMIT #20$44.16 Check Nbr 035146 POSTMASTER$265.00 16/8/2022035147 REPUBLIC SERVICES, INC.MAY GARBAGE SERVICES$16,854.29 16/8/2022035147 REPUBLIC SERVICES, INC.MAY RECYCLING SERVICES$4,540.36 Check Nbr 035147 REPUBLIC SERVICES, INC.$21,394.65 16/8/2022035148 SAFEGUARD SECURITYMONTHLY FIRE ALARM MONITORING W/SERVICE PLAN - CITY$44.95 Check Nbr 035148 SAFEGUARD SECURITY$44.95 16/8/2022035149 SHUBAEL GURUNGHONORABLE MENTION - ELEM LOGO CONTEST WINNER$25.00 Check Nbr 035149 SHUBAEL GURUNG$25.00 16/8/2022035150 STANTEC CONSULTING SERVICES INGENERAL SERVICES - SERV THRU 5-6-22$249.00 16/8/2022035150 STANTEC CONSULTING SERVICES INSTORM WATER - SERV THRU 5-6-22$1,272.00 16/8/2022035150 STANTEC CONSULTING SERVICES INWATER - SERV THRU 5-6-22$602.00 16/8/2022035150 STANTEC CONSULTING SERVICES INREHBEIN COMMERCIAL - SERV THRU 5-6-22$499.34 16/8/2022035150 STANTEC CONSULTING SERVICES INREHBEIN INDUSTRIAL - SERV THRU 5-6-22$371.92 16/8/2022035150 STANTEC CONSULTING SERVICES INSOREL QUARTER - SERV THRU 5-6-22$194.00 16/8/2022035150 STANTEC CONSULTING SERVICES INBANJO PROJECT (AMAZON) - SERV THRU 5-6-22$5,212.65 Check Nbr 035150 STANTEC CONSULTING SERVICES IN$8,400.91 16/8/2022035151 SUMMER DAVIS2ND PLACE - ELEM. LOGO CONTEST WINNER$50.00 Check Nbr 035151 SUMMER DAVIS$50.00 16/8/2022035152 TASCADMINISTRATION FEES - COBRA - SERV THRU 7-31-22$10.00 Check Nbr 035152 TASC$10.00 16/8/2022035153 TOKLE INSPECTIONS, INC.ELECTRICAL INSPECTIONS$1,322.40 Check Nbr 035153 TOKLE INSPECTIONS, INC.$1,322.40 16/8/2022035154 WELLS, MARY2022 2ND QTR ASSESSING SERVICES$1,088.84 Check Nbr 035154 WELLS, MARY$1,088.84 16/8/2022035155 MCFOAK. SWEENEY MCFOA MEMEBERSHIP DUES$50.00 16/8/2022035155 MCFOAT. BENDER MCFOA MEMBERSHIP DUES$50.00 Check Nbr 035155 MCFOA$100.00 16/8/2022035156 ANOKA COUNTY PROPERTY RECORDS6871 BEAVER POND WAY - RECORDING FEES - ENCROACHME$46.00 16/8/2022035156 ANOKA COUNTY PROPERTY RECORDSKWIP TRIP CUP$46.00 Check Nbr 035156 ANOKA COUNTY PROPERTY RECORDS$92.00 16/8/2022035157 CITY OF ROSEVILLEIT SUPPORT - SERV THRU JUNE 2022$618.59 16/8/2022035157 CITY OF ROSEVILLEIT SUPPORT - SERV THRU JUNE 2022$618.59 16/8/2022035157 CITY OF ROSEVILLEIT SUPPORT - SERV THRU JUNE 2022$618.59 16/8/2022035157 CITY OF ROSEVILLEIT SUPPORT - SERV THRU JUNE 2022$618.60 Check Nbr 035157 CITY OF ROSEVILLE$2,474.37 16/8/2022035158 CONNEXUS ENERGYSTREET LIGHTS - 395653-219678 - SERV THRU 5-25-22$51.71 06/03/22 11:54 AM CITY OF CENTERVILLE Page 3 Check Detail - June 8, 2022 Check DateCheck #Vender NameCommentsAmount 16/8/2022035158 CONNEXUS ENERGYSTREET LIGHTS - 395653-219699 - SERV THRU 5-25-22$63.79 16/8/2022035158 CONNEXUS ENERGY7100-20TH TRAFSG - SERV THRU 5-25-22$77.27 16/8/2022035158 CONNEXUS ENERGY6800 - 20TH - SCADA - SERV THRU 5-25-22$9.35 16/8/2022035158 CONNEXUS ENERGY6800 - 20TH - SCADA - SERV THRU 5-25-22$9.35 16/8/2022035158 CONNEXUS ENERGY6900-20TH AVE - LIFT STAT - SERV THRU 5-25-22$73.39 16/8/2022035158 CONNEXUS ENERGY7087-20TH AVE - WATER TOWER - SERV THRU 5-25-22$90.83 16/8/2022035158 CONNEXUS ENERGY2085 W CEDAR ST - SERV THRU 5-25-22$280.01 Check Nbr 035158 CONNEXUS ENERGY$655.70 16/8/2022035159 KONRAD MATERIAL SALES, LLCUPM SPRING/FALL ASHPALT PATCH$169.50 Check Nbr 035159 KONRAD MATERIAL SALES, LLC$169.50 16/8/2022035160 R.J.S PROPERTY MAINTENANCELAWN MOWING - PARKS & TRAILS$3,652.22 16/8/2022035160 R.J.S PROPERTY MAINTENANCELAWN MOWING - CITY HALL$270.70 16/8/2022035160 R.J.S PROPERTY MAINTENANCELAWN MOWING - P.W/ETC$1,028.88 16/8/2022035160 R.J.S PROPERTY MAINTENANCESPRING CLEAN UP/DETHATHING - HIDDEN SPRINGS & CORN$551.25 Check Nbr 035160 R.J.S PROPERTY MAINTENANCE$5,503.05 $142,267.79 06/03/22 10:39 AM CITY OF CENTERVILLE Page 1 Check Detail - Check DateCheck #Vender NameCommentsAmount 15/27/2022001889EPERAPERA W/H - PAY PERIOD 11$3,894.05 Check Nbr 001889 PERA$3,894.05 15/27/2022001890EIRS/EFTPSFED W/H - PAY PERIOD 11$2,720.86 15/27/2022001890EIRS/EFTPSFICA/MED W/H - PAY PERIOD 11$4,290.94 Check Nbr 001890 IRS/EFTPS$7,011.80 15/27/2022001891EMINNESOTA DEPT OF REVENUESTATE W/H - PAY PERIOD 11$1,211.60 Check Nbr 001891 MINNESOTA DEPT OF REVENUE$1,211.60 15/27/2022001892EOPTUM BANK - H.S.A.H.S.A. W/H - PAY PERIOD 11$1,314.57 Check Nbr 001892 OPTUM BANK - H.S.A.$1,314.57 15/27/2022001893ETASCF.S.A W/H - PAY PERIOD 11$239.58 Check Nbr 001893 TASC$239.58 15/31/2022001897EMIDWESTONE BANK$79.89 Check Nbr 001897 MIDWESTONE BANK$79.89 $13,751.49 CENTENNIAL LAKES POLICE DEPTCheck Register - POLICEPage: 1 Check Issue Dates: 5/27/2022 - 6/2/2022Jun 03, 2022 03:26PM Report Criteria: Report type: Summary Check NumberCheck Issue DatePayeeAmount 1430405/31/2022TACTICAL ADVANTAGE, LLC330.00-V 1433805/31/2022TACTICAL SOLUTIONS330.00 1434106/02/2022ANOKA CO TREASURY OFFICE75.00 1434206/02/2022DELL MARKETING L.P.1,257.30 1434306/02/2022EMERGENCY CONTRACTORS815.00 1434406/02/2022OCCUPATIONAL HEALTH CENTERS507.00 1434506/02/2022SHRED-N-GO, INC79.08 202203906/02/2022OPTUM FINANCIAL, INC.18.75 202204006/02/2022PITNEY BOWES GLOBAL FINANCIAL61.59 202204106/02/2022U S BANK233.60 Grand Totals: 3,047.32 Payroll Checks #14339-14340 M = Manual Check, V = Void Check CENTENNIAL LAKES POLICE DEPTCheck Register - POLICEPage: 1 Check Issue Dates: 5/20/2022 - 5/26/2022May 26, 2022 12:31PM Report Criteria: Report type: Summary Check NumberCheck Issue DatePayeeAmount 1433305/26/2022ASPEN MILLS, INC237.80 1433405/26/2022DEPUTY REGISTRAR #15026.00 1433505/26/2022SHI INTERNATIONAL CORP721.56 1433605/26/2022TASC60.30 1433705/26/2022TWIN CITIES TRANSPORT & RECOVERY INC900.00 Grand Totals: 1,945.66 M = Manual Check, V = Void Check CENTENNIAL FIRE DISTRICTCheck Register - FIREPage: 1 Check Issue Dates: 5/11/2022 - 5/24/2022May 18, 2022 04:10PM Report Criteria: Report type: Summary Check NumberInput DateCheck Issue DatePayeeAmount 931505/18/202205/18/2022ASPEN MILLS, INC146.75 931605/18/202205/18/2022CENTENNIAL UTILITIES317.21 931705/18/202205/18/2022CENTURY COLLEGE1,570.00 931805/18/202205/18/2022CONNEXUS ENERGY560.80 931905/18/202205/18/2022F.I.R.E., INC1,950.00 932005/18/202205/18/2022MMKR, INC2,290.00 932105/18/202205/18/2022TARGET SOLUTIONS LEARNING3,125.78 Grand Totals: 9,960.54 M = Manual Check, V = Void Check CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Administration VII.7 TITLE OF ISSUE: Volunteer Appreciation Event BACKGROUND AND SUPPLEMENTAL INFORMATION: The Parks and Recreation Committee has put forward a recommendation to purchase items for the 2nd Annual Volunteer Appreciation event this fall. COST AND SOURCE(S) OF FUNDING: Not to exceed $1,000 - General Fund (Park Programs) REQUESTED COUNCIL ACTION: Motion to authorize expenditures of up to $1,000 for Volunteer Appreciation Event items. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ _____ Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Administration VII.8 TITLE OF ISSUE: Resolution 22-0XX Extending the Interim Use Permit for the Atlas Villas Memory Care Facility BACKGROUND AND SUPPLEMENTAL INFORMATION: The Interim Use Permit (IUP) for the Atlas Villas Memory Care facility has expired. The project opening has been delayed due to supply chain issues and building costs variability. The facility now expects to open around August 1, 2022. The IUP allows the City Council to extend the IUP, annually. Staff is recommending an extension of the IUP. COST AND SOURCE(S) OF FUNDING: N/A REQUESTED COUNCIL ACTION: Motion to approve Resolution 22-0XX Extending the Interim Use Permit for the Atlas Villas Memory Care Facility. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: Aye Nay _____ _____ IUP Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION #22-____ A RESOLUTION APPROVING EXTENSION OF INTERIM USE PERMIT FOR THE ATLAS VENTURES, LLC WHEREAS, the City of Centerville City Council, approved an Interim Use Permit effective January 22, 2020 for the landowner, Atlas Ventures, LLC. WHEREAS, the Interim Use Permit was effective until the facility obtained their operating licensure from the State of Minnesota. The permit is currently expired. WHEREAS, a condition of the Interim Use Permit states that it may be renewed annually by the approval of the City Council upon the Landowner’s demonstration of their intent to seek an operating license for a 16-unit senior living / memory care facility on the Subject Property. WHEREAS, due to complications stemming from the Covid-19 pandemic and construction related delays, the facility has not begun its operations. The owner intends to begin operations on August 1, 2022. They seek a renewal of their Interim Use Permit and a one-year extension of their Interim Use Permit in order to finalize construction of their facility and begin operating as a 16-unit senior living / memory care facility on the Subject Property. NOW, THEREFORE, BE IT RESOLVED, that for good cause shown, the Centerville City Council does hereby, approve the renewal of the aforementioned Interim Use Permit and the extension of the Interim Use Permit until June 8, 2023. th PASSED AND DULY ADOPTED this 8 day of June 2022 by the City Council of the City of Centerville. ________________________________ D. Love, Mayor Attest: ____________________________________ Teresa Bender, City Clerk CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Finance IX.1 TITLE OF ISSUE: 2021 Annual Audit BACKGROUND AND SUPPLEMENTAL INFORMATION: Brad Falteysek, Partner and CPA with Abdo will present the annual financial report, required management communications, and audit insights to the City Council. The city has received an unqualified (clean) audit opinion on the financial statements for fiscal year 2021. This means that our statements meet Generally Accepted Accounting Practices (GAAP), present our financial condition in a fair manner, and are free from material misstatements. There were a number of discussions regarding accounting transactions and financial policies during the audit. These resulted in adjusting journal entries, with one finding considered to be a material weakness. The audit was moved earlier in the year, and there was significant time off for the Finance Director due to family health issues. This resulted in not all journal entries being prepared prior to the audit. Staff will review the adjustments and provide a complete trial balance to the auditors next year. COST AND SOURCE(S) OF FUNDING: Previously authorized funds from the General Fund and Utility Funds. REQUESTED COUNCIL ACTION: Motion to approve the Comprehensive Annual Financial Report (CAFR) as presented. Following this approval, the financial statements will be published on the city's web site and available for inspection by the public. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ _____ CAFR, Management Communication Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ Annual Financial Report Centerville, Minnesota For the year ended December 31, 2021 City of Centerville, Minnesota Annual Financial Report Table of Contents For the Year Ended December 31, 2021 Page No. Introductory Section Elected and Appointed Officials 7 Financial Section Independent Auditors Report 11 Managements Discussion and Analysis 15 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 29 Statement of Activities 30 Fund Financial Statements Governmental Funds Balance Sheet 34 Reconciliation of the Balance Sheet to the Statement of Net Position 35 Statement of Revenues, Expenditures and Changes in Fund Balances 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 37 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 38 Proprietary Funds Statement of Net Position 39 Statement of Revenues, Expenses and Changes in Net Position 41 Statement of Cash Flows 42 Notes to the Financial Statements 45 Required Supplementary Information - General Employees Retirement Fund 68 - General Employees Retirement Fund 68 Notes to the Required Supplementary Information - General Employees Retirement Fund 69 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73 Nonmajor Proprietary Funds Statement of Net Position 75 Statement of Revenues, Expenses and Changes in Net Position 76 Statement of Cash Flows 77 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 78 Debt Service Funds Combining Balance Sheet 82 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 83 Economic Development Authority (Discretely Presented Component Unit) Combining Balance Sheet 84 Combing Statement of Revenues, Expenditures and Changes in Fund Balances 85 Summary Financial Report Revenues and Expenditures for General Operations - Governmental Funds 86 Other Required Report Independent on Minnesota Legal Compliance 89 3 4 INTRODUCTORY SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 5 6 City of Centerville, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2021 7 8 FINANCIAL SECTION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 9 10 INDEPENDENT AUDITORS REPORT Honorable Mayor and City Council City of Centerville, Minnesota Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities,the discretely presented component unit,each major fundand the aggregate remaining fund information of the City of Centerville, Minnesota (the City), as of and for the year ended December 31, 2021, and the related notes to the financial 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, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City as of December 31, 2021, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General fund 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 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. Mana Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 theCity months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from 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 GAAS 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 judgment made by a reasonable user based on the financial statements. 11 In performing an audit in accordance with GAAS, 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 Cityon 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 theCity 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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management Analysis on page15s of the Net Pension Liability and the Schedule of Employers Contributionsand related notes to the required supplementary information starting on page68be presented to supplement the basic financial statements.Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managemen 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 statements. The combining and individual fund financial statements and schedules are presented for purposes 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 combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 12 Other Information Management is responsible for the other information in the report. The other information comprises the introductory section but does not include the basic financial statements and our financial statement do not cover the other information, and we do not express an opinion or any form of assurance thereon. Abdo Minneapolis, Minnesota June 1, 2022 13 14 As management of the City of Centerville narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2021. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $23,532,735 (net position). Of this amount, $8,982,423 (unrestricted net position) may be u net position increased $972,957. A further breakdown of net position is chronicled under government-wide financial statement analysis. At the end of the current fiscal year, unassigned fund balance for the General fund was $1,974,074, or 79.2 percent of total 2021 General fund expenditures. The Cidecreased $456,843, during the current fiscal year. The decrease was due to scheduled debt payments on the C and the retirement of the G.O. Improvement and Refunding 2013A Bonds. 15 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the CityThe basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This analysis contains other supplemental information in addition to the basic financial statements themselves. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of combining and individual fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining and individual fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Figure 1 Required Components of the 16 they cover and the types of information they contain. and analysis explains the structure and contents of each of the statements. Figure 2 Major Features of the Government-wide and Fund Financial Statements Fund Financial Statements Government-Wide Governmental Funds Proprietary Funds Statements Scope Entire City government The activities of the City that Activities the City operates (except fiduciary funds) and are not proprietary or similar to private fiduciary, such as police, fire businesses, such as the and parks water and sewer system Required financial Statement of Net Position Balance Sheet Statement of Net statements Position Statement of Activities Statement of Revenues, Expenditures, and Changes Statement of Revenues, in Fund Balances Expenses and Changes in Net Position Statement of Cash Flows Accounting basis Accrual accounting and Modified accrual accounting Accrual accounting and and measurement economic resources focus and current financial economic resources focus focus resources focus Type of asset/liability All assets and liabilities, both Only assets expected to be All assets and liabilities, information financial and capital, and used up and liabilities that both financial and capital, short-term and long-term come due during the year or and short-term and long- soon thereafter; no capital term assets included Type of deferred All deferred inflows of Only deferred inflows of All deferred inflows of Inflows of resources resources, regardless of resources that come due resources, regardless of Information when cash is received or during the year or soon when cash is received or paid thereafter; no capital assets paid included Type of inflow/out All revenues and expenses Revenues for which cash is All revenues and expenses flow information during year, regardless of received during or soon after during the year, regardless when cash is received or the end of the year; of when cash is received or paid expenditures when goods or paid services have been received and payment is due during the year or soon thereafter Government-wide Financial Statements. The hpwfsonfou.xjef!gjobodjbm!tubufnfout are designed to provide readers with -sector business. The tubufnfou!pg!ofu!qptjujpo , deferred outflows of resources, liabilities, and deferred inflows of resources with the difference being reported as ofu!qptjujpo. 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 tubufnfou!pg!bdujwjujft 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, sfhbsemftt!pg!uif!ujnjoh!pg!sfmbufe!dbti!gmpxt. 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). 17 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (hpwfsonfoubm!bdujwjujft) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (cvtjoftt.uzqf!bdujwjujft). The governmental activities of the City include general government, public safety, public works, economic development, culture and recreation, and interest on long-term debt. The business-type activities of the City include water, sewer, and storm water. The government-wide financial statements include not only the City itself (known as the qsjnbsz!hpwfsonfou), but also a legally separate Economic Development Authority (the EDA) for which the City is financially accountable. Financial information for this dpnqpofou!voju!is discretely presented from the financial information presented for the primary government itself. The government-wide financial statements start on page 29 of this report. Fund Financial Statements. A gvoe 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. Hpwfsonfoubm!Gvoet. Hpwfsonfoubm!gvoet are used to account for essentially the same functions reported as hpwfsonfoubm!bdujwjujft in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on ofbs.ufsn!jogmpxt!boe!pvugmpxt!pg!tqfoebcmf!sftpvsdft, as well as on cbmbodft!pg!tqfoebcmf!sftpvsdft available at the end of the fiscal year. Such information may be useful in -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 hpwfsonfoubm!gvoet with similar information presented for hpwfsonfoubm! bdujwjujft in the government-wide financial statements. By doing so, readers may better understand the long-term impact near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between hpwfsonfoubm!gvoet and hpwfsonfoubm!bdujwjujft. The City maintains several individual governmental funds, many of which are combined into the Debt Service fund. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Debt Service, Park and City Street Projects funds. Data from the other non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of dpncjojoh!tubufnfout!ps!tdifevmft elsewhere in this report. The City adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided for the General fund to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 34 of this report. Qspqsjfubsz!Gvoe. The City maintains one type of proprietary fund/!Foufsqsjtf!gvoet are used to report the same functions presented as cvtjoftt.uzqf!bdujwjujft in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, storm water, garbage and recycling. The proprietary fund provides the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds. The basic proprietary fund financial statements start on page 39 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 45 of this report. Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this report provide pension benefits to its employees. Required supplementary information can be found starting on page 68 of this report. 18 Other Information. The combining statements referred to earlier in connection with non-major governmental funds are presented following the notes to the financial statements. Combining and individual fund statements and schedules start on page 72 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a g In the case of the City, assets and deferred outflows of resources exceeded its liabilities and deferred inflow of resources by $23,532,735 at the close of the most recent fiscal year. net position (58.3 percent) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of CentervilleSummary of Net Position Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20212020(Decrease)20212020(Decrease) Assets Current and other assets$ 3,726,988$ 3,133,487$ 593,501$ 7,377,232$ 6,590,560$ 786,672 Capital assets 10,471,457 10,962,994 (491,537) 5,625,112 5,957,870 (332,758) Total Assets 14,198,445 14,096,481 101,964 13,002,344 12,548,430 453,914 Deferred Outflows of Resources Deferred pension resources 214,735 49,875 164,860 84,009 18,665 65,344 Liabilities Noncurrent liabilities outstanding 2,702,954 3,193,401 (490,447) 130,154 159,232 (29,078) Other liabilities 676,837 671,132 5,705 99,719 101,446 (1,727) Total Liabilities 3,379,791 3,864,533 (484,742) 229,873 260,678 (30,805) Deferred Outflows of Resources Deferred pension resources 256,753 20,711 236,042 100,381 7,751 92,630 Net Position Net investment in capital assets 8,106,098 8,202,079 (95,981) 5,625,112 5,957,870 (332,758) Restricted for Debt service 743,174 800,244 (57,070) - - - Cable TV 32,802 77,870 (45,068) - - - Public safety 43,126 - 43,126 - - - Unrestricted 1,851,436 1,180,919 670,517 7,130,987 6,340,796 790,191 Total Net Position$ 10,776,636$ 10,261,112 $ 515,524$ 12,756,099$ 12,298,666$ 457,433 net position (3.5 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of vosftusjdufe!ofu!qptjujpo ($8,982,423 ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position for the City as a whole, as well as for its separate governmental and business-type activities. 19 Governmental Activities. Governmental activities increased net position by $515,524. Key elements of this increase are as follows: City of CentervilleChanges in Net Position Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20212020(Decrease)20212020(Decrease) Revenues Program Revenues Charges for services$ 579,074$ 334,838$ 244,236$ 1,240,416$ 1,179,791$ 60,625 Operating grants and contributions 286,821 457,393 (170,572) 194,960 13,206 181,754 Capital grants and contributions 33,697 294,184 (260,487) 346,024 163,988 182,036 General Revenues Taxes Property taxes/tax increments 2,383,576 2,295,858 87,718 - - - Property taxes, levied for debt service 380,239 423,420 (43,181) - - - Other taxes 202,772 167,325 35,447 - - - Grants and contributions not restricted to specific programs 75,834 84,741 (8,907) - - - Unrestricted investment earnings (10,652) 31,913 (42,565) (3,576) 56,410 (59,986) Gain on sale of capital assets 11,005 - 11,005 - - - Miscellaneous - 1,000 (1,000) - - - Total Revenues 3,942,366 4,090,672 (148,306) 1,777,824 1,413,395 364,429 Expenses General government 326,356 446,869 (120,513) - - - Public safety 1,261,528 1,607,451 (345,923) - - - Public works 1,442,319 1,408,395 33,924 - - - Culture and recreation 291,373 209,856 81,517 - - - Economic development 34,616 22,800 11,816 - - - Interest on long-term debt 70,650 65,775 4,875 - - - Water - - - 486,285 383,563 102,722 Sewer - - - 510,605 464,672 45,933 Storm water - - - 71,718 80,413 (8,695) Garbage - - - 199,376 177,109 22,267 Recycling - - - 52,407 47,602 4,805 Total Expenses 3,426,842 3,761,146 (334,304) 1,320,391 1,153,359 167,032 Change in Net Position 515,524 329,526 185,998 457,433 260,036 197,397 Net Position, January 1 10,261,112 9,931,586 329,526 12,298,666 12,038,630 260,036 Net Position, December 31$ 10,776,636$ 10,261,112$ 515,524$ 12,756,099$ 12,298,666$ 457,433 The $170,572 decrease in operating grants and contributions is due to the CARES act funding that existed in the prior year. The $244,236 increase in charges for services is due to an increase in building permits and park dedication fees collected. The $260,487 decrease in capital grants and contributions was due to less special assessment revenue than prior year. The $345,923 decrease in public safety expenses is due to less COVID-19 related expenditures. The business-type increase in capital grants and contributions of $182,036 was due to greater special assessment revenue than 2020. 20 The following graph depicts various governmental activities and shows the program revenuesand expenses directly related to those activities. Expenses and Program Revenues-Governmental Activities Revenuesby Source -Governmental Activities Capital Grants and Contributions Operating Grants Taxes 0.9% and Contributions 75.2% 7.3% Charges for Services 14.7% Gain on Sale of Capital Assets Grants and 0.3% Unrestricted Contributions not Investment Restricted Earnings (Loss) 1.9% -0.3% 21 Business-type Activities. Business-type activities increasednet positionby$457,433.Key elements of this increaseareas follows: Expenses and Program Revenues-Business-type Activities Revenuesby Source -Business-type Activities A further breakdown of expendituresis shown below: Governmental ActivitiesBusiness-type Activities IncreaseIncrease 20212020(Decrease)20212020(Decrease) Personnel Costs$ 649,432$ 671,436$ (22,004)$ 254,277$ 225,407$ 28,870 Supplies 40,820 20,415 20,405 23,207 11,844 11,363 Other Charges for Services 2,778,491 2,911,258 (132,767) 1,042,907 916,108 126,799 Capital Outlay 395,254 1,548,003 (1,152,749) - - - Total$ 3,863,997$ 5,151,112$ (1,287,115)$ 1,320,391$ 1,153,359$ 167,032 22 Financial Analysis of the Governmen As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Hpwfsonfoubm!Gvoet hpwfsonfoubm!gvoet is to provide information on near-term inflows, outflows and balances of tqfoebcmf resources. Such information is useful in assessing the In particular, vobttjhofe!gvoe!cbmbodf s net resources available for spending at the end of the fiscal year. Fund Balance December 31, Increase Major Funds 20212020 (Decrease) Hfofsbm!$ 2,019,125$ 1,574,009$ 445,116 The General fund balance increase is due to positive budget variances for both revenues and expenitures. Efcu!Tfswjdf$ 526,495$ 497,849$ 28,646 The Debt Service fund balance increased due to revenues in excess of scheduled debt payments. Qbsl$ (823,419)$ (887,624)$ 64,205 The Park fund balance increased from the previous year simply due to park dedication fees in excess of expenditures. Djuz!Tusffu!Qspkfdut!$ 526,226$ 248,794$ 277,432 The City Street Projects fund increased from prior year due to revenues in excess of capital outlays in 2021. $2,620,161, an increase of $773,398 in comparison with the prior year. Fund balance of $1,150,655 constitutes vobttjhofe!gvoe!cbmbodf. The remainder of fund balance ($1,469,506) is not available for spending because it is either: 1) nonspendable ($18,376), 2) restricted ($585,972), or 3) assigned ($865,158) for the purposes described in the fund balance section of each balance sheet. Qspqsjfubsz!Gvoet-wide financial statements, but in more detail. Unrestricted net position of the enterprise funds at the end of the year amounted to $7,130,987. The total increase in net position for the funds was $457,433. 23 General Fund Budgetary Highlights s not amended during the year. Revenues had a positive budget variance of $421,788 and expenditures had a over budget variance of $5,872. Overall the General fund had a net positive budget variance of $445,116 after transfers. Some of the significant variances can be briefly summarized as follows: Licenses and permitting revenues came in $120,135 over budget. Miscellaneous revenues were over budget by $142,634 due to more than expected refunds and reimbursements. General government expenditures were under budget by $33,707 and public works expenditures were also under budget by $32,263. Capital Asset and Debt Administration Capital Assets. -type activities as of December 31, 2021, amounts to $16,096,569 (net of accumulated depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, park facilities, roads, highways and bridges. B starting on page 55 of this report. City of CentervilleCapital Assets (Net of Depreciation) Street Maintenance Program. Beginning in 2012 the City began annually accumulating funds for a street maintenance program that will consist of mill and overlay to each segment of street in the city, at approximately every twelve-year intervals. The initial construction program began in 2014 to be paid from funds accumulated in a revolving improvement account. A minimal special assessment of around $500 per residential lot will cover approximately 20 percent of the cost, which combined with the City levy contribution each year, should sustain the program. Each year going forward, a similar project is anticipated. No project was done in 2021. Funds have been accumulated for the final full depth street reconstruction project in town along with the installation of water service and storm water improvements. Equipment Funding. In 2012, the City Council approved as part of the budget, a capital replacement program for equipment and other assets that have predictable replacement cycles. All major street equipment, building roofs, carpets andsimilar items will be funded through an equipment replacement fund that will be sustained by an annual levy. Likewise, the enterprise funds have identified equipment and other assets that need periodic upgrading and replacement. Sufficient retained earnings will be protected to allow these repairs/replacements to be completed without incurring debt. 24 Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $2,270,000. While all faith and credit of the City. City of CentervilleOutstanding Debt 3A Refunding bond being paid off in 2021. long-term debt can be found in Note 3D starting on page 58 of this report. The area economy continues to show signs of improvement. Property values for taxes payable in 2022 increased by 3.5%. payable in 2022. The tax capacity rate went from 51.059 to 51.430 for a 1.3% increase due to a drop in commercial/industrial tax base. Most taxpayers realized an increase on average of 4.9% in City property taxes as a result of the increased value of their properties and the increased City levy. The increase in General fund expenditures, in the amount of $132,547, was primarily related to an increase of $75,700 in salaries with the addition of an Assistant City Administrator position and $15,000 in additional recycling professional services. The debt service levy was decreased by $49,391 for taxes payable in 2022 due to reduced levy requirements for several bond issues. The debt service levy is anticipated to be again reduced in 2023 because the city refinanced the 2013A GO Improvement Bonds. Requests for Information This financial report is designed to provide a general overview of the Citparties interested. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Administrator, City of Centerville, 1880 Main Street, Centerville, Minnesota, 55038. 25 26 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 27 28 City of Centerville, Minnesota Statement of Net Position December 31, 2021 Primary Government Component Unit Economic GovernmentalBusiness-typeDevelopment ActivitiesActivitiesTotalAuthority Assets Cash and temporary investments$ 3,968,375$ 5,944,889$ 9,913,264$ 27,522 Receivables Accrued interest 2,403 3,577 5,980 - Taxes 51,212 - 51,212 - Accounts 69,676 210,267 279,943 - Special assessments 447,488 349,439 796,927 - Due from other governments 24,585 - 24,585 - Internal balances (855,127) 855,127 - - Inventories - 13,333 13,333 - Prepaid items 18,376 600 18,976 588 Capital assets Land and construction and progress 2,351,418 200,655 2,552,073 - Depreciable assets (net of accumulated depreciation) 8,120,039 5,424,457 13,544,496 - Total Assets 14,198,445 13,002,344 27,200,789 28,110 Deferred Outflows of Resources Deferred pension resources 214,735 84,009 298,744 - Liabilities Accounts and contracts payable 84,513 23,754 108,267 - Accrued salaries payable 19,406 7,103 26,509 - Due to other governments 3,514 14,003 17,517 - Accrued interest payable 26,494 - 26,494 - Deposits payable 311,456 54,859 366,315 - Unearned revenue 231,454 - 231,454 - Noncurrent liabilities Due within one year Long-term liabilities 430,317 20,501 450,818 - Due in more than one year Long-term liabilities 1,993,679 - 1,993,679 - Net pension liability 278,958 109,653 388,611 - Total Liabilities 3,379,791 229,873 3,609,664 - Deferred Inflows of Resources Deferred pension resources 256,753 100,381 357,134 - Net Position Net investment in capital assets 8,106,098 5,625,112 13,731,210 - Restricted for Debt service 743,174 - 743,174 - Cable TV 32,802 - 32,802 - Public safety 43,126 - 43,126 - Unrestricted 1,851,436 7,130,987 8,982,423 28,110 Total Net Position$ 10,776,636$ 12,756,099$ 23,532,735$ 28,110 The notes to the financial statements are an integral part of this statement. 29 City of Centerville, Minnesota Statement of Activities For the Year Ended December 31, 2021 Program Revenues OperatingCapital Grants Charges forGrants and and Functions/ProgramsExpensesServicesContributionsContributions Governmental Activities General government$ 326,356$ 170,137$ 150 $ - Public safety 1,261,528 268,369 117,141 - Public works 1,442,319 36,310 169,530 33,697 Culture and recreation 291,373 96,445 - - Economic development 34,616 7,813 - - Interest on long-term debt 70,650 - - - Total Governmental Activities 3,426,842 579,074 286,821 33,697 Business-type Activities Water 486,285 412,438 54,459 249,581 Sewer 510,605 442,428 - 96,443 Storm water 71,718 130,799 131,552 - Garbage 199,376 201,324 4,474 - Recycling 52,407 53,427 4,475 - Total Business-type Activities 1,320,391 1,240,416 194,960 346,024 Total $ 4,747,233$ 1,819,490$ 481,781$ 379,721 Component Unit Economic Development Authority$ 13,937$ -$ 29,209$ - General Revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Franchise taxes Gambling taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings (loss) Gain on sale of capital assets Miscellaneous Total General Revenues Change in Net Position Net Position, January 1 Net Position, December 31 The notes to the financial statements are an integral part of this statement. 30 Net (Expenses) Revenues and Changes in Net Position Primary Government Component Unit Economic GovernmentalBusiness-typeDevelopment ActivitiesActivitiesTotalAuthority $ (156,069)$ -$ (156,069)$ - (876,018) - (876,018) - (1,202,782) - (1,202,782) - (194,928) - (194,928) - (26,803) - (26,803) - (70,650) - (70,650) - (2,527,250) - (2,527,250) - - 230,193 230,193 - - 28,266 28,266 - - 190,633 190,633 - - 6,422 6,422 - - 5,495 5,495 - - 461,009 461,009 - (2,527,250) 461,009 (2,066,241) - 15,272 2,383,576 - 2,383,576 - 380,239 - 380,239 - 169,014 - 169,014 - 33,758 - 33,758 - 75,834 - 75,834 - (10,652) (3,576) (14,228) - 11,005 - 11,005 - - - - - 3,042,774 (3,576) 3,039,198 - 515,524 457,433 972,957 15,272 10,261,112 12,298,666 22,559,778 12,838 $ 10,776,636$ 12,756,099$ 23,532,735$ 28,110 The notes to the financial statements are an integral part of this statement. 31 32 FUND FINANCIAL STATEMENTS CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 33 City of Centerville, Minnesota Balance Sheet Governmental Funds December 31, 2021 101300's402452 City OtherTotal DebtStreet GovernmentalGovernmental GeneralServiceParkProjects FundsFunds Assets Cash and temporary investments$ 2,577,974$ 507,875$ 31,689 $ 485,590$ 365,247$ 3,968,375 Receivables Accrued interest 1,583 306 19 275 220 2,403 Taxes 51,212 - - - - 51,212 Accounts 29,315 - - 40,361 - 69,676 Special assessments - 245,036 - 202,452 - 447,488 Due from other governments 16,722 - - - 7,863 24,585 Prepaid items 1,925 16,451 - - - 18,376 Total Assets$ 2,678,731$ 769,668$ 31,708 $ 728,678$ 373,330$ 4,582,115 Liabilities Accounts payable$ 83,063$ -$ -$ -$ 1,450$ 84,513 Deposits payable 311,456 - - - - 311,456 Accrued salaries payable 19,260 - - - 146 19,406 Due to other governments 3,514 - - - - 3,514 Advances from other funds - - 855,127 - - 855,127 Unearned revenue 231,454 - - - - 231,454 Total Liabilities 648,747 - 855,127 - 1,596 1,505,470 Deferred Inflows of Resources Unavailable revenue - property taxes 10,859 - - - - 10,859 Unavailable revenue - special assessments - 243,173 - 202,452 - 445,625 Total Deferred Inflows of Resources 10,859 243,173 - 202,452 - 456,484 Fund Balances Nonspendable 1,925 16,451 - - - 18,376 Restricted 43,126 510,044 - - 32,802 585,972 Assigned - - - 526,226 338,932 865,158 Unassigned 1,974,074 - (823,419) - - 1,150,655 Total Fund Balances 2,019,125 526,495 (823,419) 526,226 371,734 2,620,161 Total Liabilities, Deferred Inflows of Resources and Fund Balances$ 2,678,731$ 769,668$ 31,708 $ 728,678$ 373,330$ 4,582,115 The notes to the financial statements are an integral part of this statement. 34 City of Centerville, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2021 Amounts reported for the governmental activities in the statement of net position are different because Total Fund Balances - Governmental$ 2,620,161 Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 24,648,894 Less accumulated depreciation (14,177,437) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year end consist of Bond principal payable (2,365,359) Compensated absences payable (58,637) Net pension liability (278,958) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Delinquent taxes receivable 10,859 Special assessments receivable 445,625 Governmental funds do not report long-term amounts related to pensions. Deferred outflows of pension resources 214,735 Deferred inflows of pension resources (256,753) Governmental funds do not report a liability for accrued interest until due and payable. (26,494) Total Net Position - Governmental Activities$ 10,776,636 The notes to the financial statements are an integral part of this statement. 35 City of Centerville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2021 101300's402452 City OtherTotal DebtStreet GovernmentalGovernmental GeneralServiceParkProjectsFundsFunds Revenues Taxes General property$ 2,409,492$ 380,239$ -$ -$ -$ 2,789,731 Gambling 33,758 - - - - 33,758 Franchise - 7,926 - 161,088 - 169,014 Licenses and permits 316,335 - - - - 316,335 Intergovernmental 226,175 - - 59,190 - 285,365 Charges for services 10,968 - 87,000 6,194 - 104,162 Fines and forfeitures 14,761 - - - - 14,761 Special assessments 62,969 107,901 - 83,540 - 254,410 Interest on investments (loss) (5,929) (3,156) 409 (1,511) (465) (10,652) Miscellaneous 149,734 - - - 8,403 158,137 Total Revenues 3,218,263 492,910 87,409 308,501 7,938 4,115,021 Expenditures Current General government 552,283 - - - - 552,283 Public safety 1,362,809 - - - - 1,362,809 Public works 336,737 - - - - 336,737 Culture and recreation 153,215 - - - 53,450 206,665 Economic development 34,616 - - - - 34,616 Capital outlay General government 42,469 - - - 1,450 43,919 Public works - - - 231,069 86,974 318,043 Culture and recreation 10,018 - 23,204 - 70 33,292 Debt service Principal - 426,843 - - - 426,843 Interest and other - 53,377 - - - 53,377 Bond issuance costs - 20,903 - - 20,903 Total Expenditures 2,492,147 501,123 23,204 231,069 141,944 3,389,487 Excess (Deficiency) of Revenues Over (Under) Expenditures 7 26,116 (8,213) 64,205 77,432 (134,006) 725,534 Other Financing Sources (Uses) Sale of capital assets - - - - 11,005 11,005 Transfers in - 161,060 - 200,000 81,000 442,060 Refunding bonds issued - 1,321,859 - - 1,321,859 Principal paid on refunded bonds - (1,285,000) - - (1,285,000) Transfers out (281,000) (161,060) - - - (442,060) Total Other Financing Sources (Uses) (281,000) 36,859 - 200,000 92,005 47,864 Net Change in Fund Balances 445,116 28,646 64,205 277,432 (42,001) 773,398 Fund Balances, January 1 1,574,009 497,849 (887,624) 248,794 413,735 1,846,763 Fund Balances, December 31$ 2,019,125$ 526,495$ (823,419)$ 526,226$ 371,734$ 2,620,161 The notes to the financial statements are an integral part of this statement. 36 City of Centerville, Minnesota Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended December 31, 2021 Amounts reported for governmental activities in the statement of activities are different because Net Change in Fund Balances - Governmental Funds$ 773,398 Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlay 559,367 Depreciation expense (999,342) Governmental fund report a loss on sale of capital assets to the extent of cash exchanged, whereas the disposition of the assets book value is included in the total gain (loss) in the statement of activities Disposals (80,227) Depreciation of disposals 28,665 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are delayed and amortized in the statement of activities. Principal repayments 1,711,843 Debt issued or incurred (1,321,859) Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however interest expense is recognized as the interest accrues, regardless of when it is due.3,630 Long-term pension activity is not reported in government funds. Pension expense 20,695 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes (25,916) Special assessments (157,744) 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 payable 3,014 Change in Net Position - Governmental Activities$ 515,524 The notes to the financial statements are an integral part of this statement. 37 City of Centerville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2021 Budgeted Amounts ActualVariance with OriginalFinalAmountsFinal Budget Revenues Taxes General property$ 2,364,916$ 2,364,916$ 2,409,492$ 44,576 Gambling 2,000 2,000 33,758 31,758 Licenses and permits 196,200 196,200 316,335 120,135 Intergovernmental 195,259 195,259 226,175 30,916 Charges for services 5,000 5,000 10,968 5,968 Fines and forfeitures 13,000 13,000 14,761 1,761 Special assessments - - 62,969 62,969 Interest on investments (loss) 13,000 13,000 (5,929) (18,929) Miscellaneous 7,100 7,100 149,734 142,634 Total Revenues 2,796,475 2,796,475 3,218,263 421,788 Expenditures Current General government 585,990 585,990 552,283 33,707 Public safety 1,349,935 1,349,935 1,362,809 (12,874) Public works 369,000 369,000 336,737 32,263 Culture and recreation 128,850 128,850 153,215 (24,365) Economic development - - 34,616 (34,616) Capital outlay 52,500 52,500 52,487 1 3 Total Expenditures 2,486,275 2,486,275 2,492,147 (5,872) Excess of Revenues Over Expenditures 310,200 310,200 726,116 415,916 Other Financing Uses Transfers out (310,200) (310,200) (281,000) 29,200 Net Change in Fund Balances - - 445,116 445,116 Fund Balances, January 1 1,574,009 1,574,009 1,574,009 - Fund Balances, December 31$ 1,574,009$ 1,574,009$ 2, 019,125$ 44 5,116 The notes to the financial statements are an integral part of this statement. 38 City of Centerville, Minnesota Statement of Net Position Proprietary Funds December 31, 2021 Business-type Activities - Enterprise Funds 601602 Nonmajor Enterprise WaterSewerFundsTotals Assets Current Assets Cash and temporary investments$ 3,363,043 $ 2,483,925 $ 97,921$ 5,944,889 Receivables Accrued interest 2,022 1,490 65 3,577 Accounts 53,592 87,844 68,831 210,267 Special assessments 72,481 8,597 7,036 88,114 Due from other funds 15,199 - - 15,199 Advance to other funds - 855,127 - 855,127 Inventories 13,333 - - 13,333 Prepaid items 450 150 - 600 Total Current Assets 3,520,120 3,437,133 173,853 7,131,106 Noncurrent Assets Special assessments receivable 261,325 - - 261,325 Capital assets Land 72,255 124,000 4,400 200,655 Buildings 138,000 276,000 - 414,000 Infrastructure 6,180,356 3,442,483 1,633,841 11,256,680 Machinery and equipment 269,367 96,742 - 366,109 Less accumulated depreciation (3,623,019) (2,513,235) (476,078) (6,612,332) Net Capital Assets 3,036,959 1,425,990 1,162,163 5,625,112 Total Noncurrent Assets 3,298,284 1,425,990 1,162,163 5,886,437 Total Assets 6,818,404 4,863,123 1,336,016 13,017,543 Deferred Outflows of Resources Deferred pension resources 36,991 37,897 9,121 84,009 Liabilities Current Liabilities Accounts payable 1,717 471 21,566 23,754 Deposits payable 34,859 20,000 - 54,859 Ac crued salaries payable 2,862 2,862 1,379 7,103 Due to other funds - - 15,199 15,199 Due to other governments 47 10,283 3,673 14,003 Compensated absences payable - current 8,606 8,606 3,289 20,501 Total Current Liabilities 48,091 42,222 45,106 135,419 Noncurrent Liabilities Net pension liability 48,283 49,466 11,904 109,653 Total Liabilities 96,374 91,688 57,010 245,072 Deferred Inflows of Resources Deferred pension resources 44,200 45,283 10,898 100,381 Net Position Investment in capital assets 3,036,959 1,425,990 1,162,163 5,625,112 Unrestricted 3,677,862 3,338,059 115,066 7,130,987 Total Net Position$ 6,714,821 $ 4,764,049 $ 1, 277,229$ 12,756,099 The notes to the financial statements are an integral part of this statement. 39 40 City of Centerville, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2021 Business-type Activities - Enterprise Funds 601602 Nonmajor Enterprise WaterSewerFundsTotals Operating Revenues Charges for services$ 402,744$ 442,428$ 394,499$ 1,239,671 Operating Expenses Salaries and benefits 110,084 115,848 28,345 254,277 Supplies 21,870 1,337 - 23,207 Other services and charges 95,740 41,336 258,545 395,621 Utilities 19,240 1,038 - 20,278 MCES - disposal charges - 246,603 - 246,603 Depreciation 239,351 104,443 36,611 380,405 Total Operating Expenses 486,285 510,605 323,501 1,320,391 Operating Income (Loss) (83,541) (68,177) 70,998 (80,720) Nonoperating Revenues Interest earnings (loss) (2,256) (1,358) 38 (3,576) Intergovernmental 54,459 - 131,552 186,011 Miscellaneous revenue 9,694 - - 9,694 Total Nonoperating Revenues 61,897 (1,358) 131,590 192,129 Income (Loss) Before Contributions (21,644) (69,535) 202,588 111,409 Capital Contributions249,58196,443 - 346,024 Change in Net Position 227,937 26,908 202,588 457,433 Net Position, January 1 6,486,884 4,737,141 1,074,641 12,298,666 Net Position, December 31$ 6,714,821$ 4,764,049$ 1,277,229$ 12 ,756,099 The notes to the financial statements are an integral part of this statement. 41 City of Centerville, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2021 Business-type Activities - Enterprise Funds 601602 Nonmajor Enterprise WaterSewerFunds Totals Cash Flows from Operating Activities Receipts from customers and users$ 406,652 $ 447,476 $ 386,855 $ 1,240,983 Payments to suppliers (116,358) (306,889) (258,104) (681,351) Payments to employees (111,363) (117,298) (28,800) (257,461) Net Cash Provided by Operating Activities 178,931 23,289 99,951 302,171 Cash Flows from Noncapital Financing Activities Payment received on advance to other funds 10,954 147,307 - 158,261 Principal paid on advance from other funds - - (10,954) (10,954) Intergovernmental 54,459 - 131,55218 6,011 Net Cash Provided by Noncapital Financing Activities 65,413 147,307 120,598 333,318 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets - - (47,647) (47,647) Hook up fees and unit charges received 122,573 84,845 - 207,418 Special assessments received 317,231 45,303 - 362,534 Net Cash Provided (Used) by Capital and Related Financing Activities 439,804 130,148 (47,647) 522,305 Cash Flows From Investing Activities Interest received on investments (2,652) (1,781) 118 (4,315) Net Increase (Decrease) in Cash and Cash Equivalents 681,496 298,963 173,020 1,153,479 Cash and Cash Equivalents, January 1 2,681,547 2,184,962 (75,099) 4,791,410 Cash and Cash Equivalents, December 31$ 3,363,043$ 2,483,925$ 97,921$ 5,944,889 The notes to the financial statements are an integral part of this statement. 42 City of Centerville, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2021 Business-type Activities - Enterprise Funds 601602 Nonmajor Enterprise WaterSewerFunds Totals Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating income (loss)$ (83,541) $ (68,177) $ 70,998$ (80,720) Other income related to operations 9,694 - - 9,694 Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation 239,351 104,443 36,611 380,405 (Increase) decrease in assets/deferred outflows of resources Accounts receivable (5,786) 5,048 (6,642) (7,380) Special assessments - - (1,002) (1,002) Inventories 4,993 - - 4,993 Prepaid items (150) (150) - (300) Deferred pension resources (28,791) (29,474) (7,079) (65,344) Increase (decrease) in liabilities/deferred inflows of resources Accounts payable 15,705 17,227 (1,462) 31,470 Accrued salaries payable (561) (561) (270) (1,392) Compensated absences payable (37) (37) 122 48 Pension liability (12,685) (13,163) (3,278) (29,126) Deferred pension resources 40,795 41,785 10,050 92,630 Due to other governments (56) (33,652) 1,903 (31,805) Net Cash Provided by Operating Activities$ 178,931$ 23,289$ 99,951$ 302,171 The notes to the financial statements are an integral part of this statement. 43 44 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies A.Reporting Entity The City of Centerville, Minnesota (the City), operates under the Optional Plan A form of government as defined in the State of Minnesota statutes. Under this plan, the government of the City is directed by a City Council composed of an elected Mayor and four elected City Council Members. 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 has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the Citys financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organizations governing body, and (1) the ability of the primary government to impose its will on that organization or (2) the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary government. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Component units for which the City has been determined to be financially accountable can be blended with application of these criteria, is the following discretely presented component unit. The discretely presented component unit is reported in a separate column in the government-wide financial statements. Economic Development Authority. The Economic Development Authority (EDA) of the City was created pursuant to Minnesota statutes 469.090 through 469.108 to carry out economic and industrial development and redevelopment consistent with policies established by the City Council. The EDA is governed by five board members, two of which are City Council members and three are at-large members. The City Council appoints the EDA governing board and approves tax levies. The City does not have fiduciary responsibility for the EDA. It is this criterion that results in the EDA being reported as a discretely presented component unit. The EDA does not prepare separate financial statements. The EDA fund financial statements begin on page 84. B.Government-wide and Fund Financial Statements The government-wide financial statements (statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as 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 and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C.Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 45 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The City reports the following major governmental funds: The General fund is the Citys primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Debt Service fund accounts for the resources accumulated and payments made for principal and interest on long- term general obligation debt of governmental funds. The Park fund captures all park capital items and receives The City Street Projects fund accounts for resources accumulated and payments made for street projects within the City. The City reports the following major proprietary funds: The Water fund accounts for the activities of the water distribution system the City maintains. The Sewer fund accounts for the activities of the Citys sewage collection operations. 46 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) As a general rule the effect of interfund activity has been eliminated from 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 funds principal ongoing operations. The principal operating revenues of the City enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance Deposits and Investments The Citys cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statement of cash flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1.Direct obligations or obligations guaranteed by the United States or its agencies. 2.Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. 4.General obligat 5.Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. 7.Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8.Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions e government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 9.Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. 47 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the shares. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of December 31, 2021: Negotiable certificates of deposits of $2,642,967 are valued using a matrix pricing model (Level 2 inputs). Accounts Receivable Accounts receivable include amounts billed for services provided before year end. Unbilled utility enterprise fund receivables are also included for services provided in 2021. The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal -current portion of interfund loans). All other outstanding balances between funds are reported Any residual balances outstanding between the governmental activities and business-type activities are reported in the government- Property Taxes The City Council annually adopts a tax levy in December and certifies it to the County for collection in the following year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Auditor and tax settlements are made to the City during January, July and December each year. Delinquent taxes receivable include the past six years uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for delinquent taxes not received within 60 days after year end in the fund financial statements. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental fund special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Inventories All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 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. 48 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are, reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. In the case of 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. The City was able to estimate the historical cost for the initial reporting of these assets through backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the case of donations, the City values these capital assets at the acquisition value of the item at the date of its donation. 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: Deferred Outflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has only one item that qualifies for reporting in this category. Accordingly, the item, deferred pension resources, is reported only in the statements of net position. This item results from actuarial calculations and current year pension contributions made subsequent to the measurement date. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions ry net position have been determined on the same basis as they are reported by PERA except that PER For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate the governmental net pension liability. Total 2021 pension expense is $27,734. 49 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Compensated Absences 312 hours. All paid time off pay is accrued when incurred in the government-wide and proprietary funds. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Union employees are allowed severance equal to their unused compensatory time. In governmental fund types the cost of these benefits is recognized when payments are made to the employees. The General fund is typically used to liquidate governmental compensated absences. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. The recognition of bond premiums and discounts are delayed and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Inflows of Resources In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises only under a modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City has an additional item which qualifies for reporting in this category. The item, deferred pension resources, is reported only in the statements of net position and results from actuarial calculations. 50 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 1: Summary of Significant Accounting Policies (Continued) Fund Balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of of decision-making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the Finance Director. Unassigned - The residual classification for the General fund and also negative residual amounts in other funds. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. unassigned fund balance of 40-50 percent of budgeted operating expenditures for cash-flow timing needs. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: a.Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b.Restricted net position - Consist of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c.Unrestricted net position - All other net position balances that do not meet the definition of restricted or net investment in capital assets. first, then unrestricted resources as they are needed. 51 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 2: Stewardship, Compliance and Accountability A.Budgetary Information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund. All annual appropriations lapse at fiscal year-end. The City does not use encumbrance accounting. In May of each year, all departments of the City submit requests for appropriations to the City Administrator so that a budget may be prepared. Before September 30th, the proposed budget is presented to the City Council for review. The City Council holds public hearings and a final budget is prepared and adopted in early December. The appropriated budget is prepared by fund, function and department. The Citys department heads, with the approval of the City Administrator, may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the City Council. The legal level of budgetary control is the department level. There were no budget amendments made during 2021. B.Deficit Fund Equity The following fund had a deficit fund balance as of December 31, 2021: The Park fund deficit will be eliminated with park dedication fees collected in future years. 52 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds A.Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the Citys deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: United States government Treasury bills, Treasury notes, Treasury bonds; Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; General obligation securities of any state or local government with taxing powers which is rated A or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated AA or better by a national bond rating service; General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the banks public debt is rated AA or better by Moodys Investors Service, Inc., or Standard & Poors Corporation; and Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a 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 selection should be approved by the City. arrying amount of deposits was $7,269,826, and the bank balance was $7,365,941. Of the bank balance, $527,673 was covered by federal depository insurance and the remaining balance was covered by collateral held 53 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) Investments As of December 31, 2021, the City had the following investments that are insured or registered, or securities held by the The investments of the City are subject to the following risks: Credit Risk. The credit risk for investments is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota st47 of the notes. Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. Generally, the City limits its securities purchases to those Concentration of Credit Risk. The concentration of credit risk for investments is the risk of loss attributed to the invested more than 5 percent of investments in Discover Bank CD (9.3 percent), Capital One CD (9.3 percent), Texas Exchange Bank CD (7.8 percent), Pathfinder Bank CD (9.3 percent), CIT SLC Bank CD (9.5 percent), JPMorgan Chase Bank CD (9.3 percent), MS Bank CD (9.6 percent) and HBSC Bank CD (9.3 percent). Interest Rate Risk. The interest rate risk for investments is the risk that changes in interest rates will adversely affect the fair value of an investment. The City does not currently have a formal investment policy that addresses the above-mentioned risks. 54 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows: B.Capital Assets Capital asset activity for the governmental activities for the year ended December 31, 2021 was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental Activities Capital Assets not Being Depreciated Land$ 2,301,990$ -$ -$ 2,301,990 Construction in progress 1,569,050 462,376 (1,981,998) 49,428 Total Capital Assets not Being Depreciated 3,871,040 462,376 (1,981,998) 2,351,418 Capital Assets Being Depreciated Buildings 1,627,438 705,327 - 2,332,765 Infrastructure 17,879,978 1,276,671 - 19,156,649 Machinery and equipment 791,298 96,991 (80,227) 808,062 Total Capital Assets Being Depreciated 20,298,714 2,078,989 (80,227) 22,297,476 Less Accumulated Depreciation for Buildings (944,910) (29,896) - (974,806) Infrastructure (11,610,753) (953,475) - (12,564,228) Machinery and equipment (651,097) (15,971) 28,665 (638,403) Total Accumulated Depreciation (13,206,760) (999,342) 28,665 (14,177,437) Total Capital Assets Being Depreciated, Net 7,091,954 1,079,647 (51,562) 8,120,039 Governmental Activities Capital Assets, Net$ 10,962,994$ 1,542,023$ (2,033,560) $ 10,471,457 55 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) Depreciation expense was charged to functions/programs of the governmental activities as follows: Capital asset activity for the business-type activities for the year ended December 31, 2021 was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Business-type Activities Capital Assets not Being Depreciated Land$ 200,655$ -$ -$ 200,655 Construction in progress 975,738 47,647 (1,023,385) - Total Capital Assets not Being Depreciated 1,176,393 47,647 (1,023,385) 200,655 Capital Assets Being Depreciated Buildings 414,000 - - 414,000 Infrastructure 10,233,295 1,023,385 - 11,256,680 Machinery and equipment 366,109 - - 366,109 Total Capital Assets Being Depreciated 11,013,404 1,023,385 - 12,036,789 Less Accumulated Depreciation for Buildings ( 106,950) (46,690) - (153,640) Infrastructure (5,741,162) (326,332) - (6,067,494) Machinery and equipment (383,815) (7,383) - (391,198) Total Accumulated Depreciation (6,231,927) (380,405) - (6,612,332) Total Capital Assets Being Depreciated, Net 4,781,477 642,980 - 5,424,457 Business-type Activities Capital Assets, Net$ 5,957,870$ 690,627$ (1,023,385)$ 5,625,112 Depreciation expense was charged to functions/programs of the business-type activities as follows: Business-type Activities Water$ 239,351 Sewer 104,443 Storm water 36,611 Total Depreciation Expense - Business-type Activities$ 380,405 56 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) C.Interfund Balances and Transfers The composition of internal balance as of December 31, 2021 is as follows: The above interfund advance and the amount due to/from other funds are being paid back according to the amortization schedules. The Sewer fund financed a portion of a project that the Park fund is repaying with park dedication fees. The Water fund loan the Garbage fund $15,199 to cover deficit cash balances. Interfund Transfers A transfer of $200,000 and $81,000 was made from the General fund to the City Street Projects and Capital Equipment Revolving fund for future capital projects and replacement of equipment, vehicles and computers. A $163,500 transfer was made within the debt service funds to close the 2013A bond fund. 57 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) D.Long-term Debt General Obligation Improvement Bonds General obligation improvement bonds are direct obligations and pledge the full faith and credit of the City. The following bonds were issued to finance various improvements and will be repaid primarily from special assessments collections and tax levies. General obligation improvement bonds currently outstanding are as follows: The G.O. Improvement and Refunding Bonds, Series 2021A were issued by the City of Centerville, refunding the G.O. Improvement Bonds of 2013A. As a result of the refunding issue, the City will save $70,304 in debt service payments and achieve an economic gain (the present value of the difference of the old and the new debt service) of $73,476. Annual debt service requirements for general obligation improvement bonds are as follows: General Obligation Improvement Bonds Governmental Activities Year Ending December 31,PrincipalInterestTotal 2022$ 365,000$ 48,226$ 413,226 2023 360,000 33,178 393,178 2024 355,000 26,595 381,595 2025 340,000 20,150 360,150 2026 240,000 14,600 254,600 2027 - 2029 610,000 17,600 627,600 Total$ 2,270,000$ 160,349$ 2,430,349 58 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) General Obligation Capital Notes The City issues general obligation capital note to provide funds for the acquisition capital equipment. General obligation capital notes have been issued for governmental activities. General obligation capital notes are direct obligations and pledge the full faith and credit of the City. General obligation capital notes currently outstanding are as follows: Annual debt service requirements for general obligation improvement bonds are as follows: Changes in Long-term Liabilities During the year ended December 31, 2021, the following changes occurred in noncurrent liabilities: BeginningEndingDue Within BalanceIncreasesDecreasesBalanceOne Year Governmental Activities G.O. Improvement Bonds$ 2,720,000$ 1,255,000$ (1,705,000)$ 2,270,000$ 365,000 G.O. Capital Notes 40,915 - (6,843) 34,072 6,680 Premium on bonds issued - 66,859 (5,572) 61,287 - Compensated Absences Payable 61,651 58,637 (61,651) 58,637 58,637 Governmental Activities Long-term Liabilities$ 2,822,566$ 1,380,496$ (1,779,066)$ 2,423,996$ 430,317 Business-type Activities Compensated Absences Payable$ 20,453$ 20,502$ (20,454) $ 20,501$ 20,501 59 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 3: Detailed Notes on All Funds (Continued) E.Fund Equity At December 31, 2021 form (Nonspendable), legal restrictions (Restricted), policy and/or intent (Assigned). The following is a summary of the components of fund balance: City Other Debt Street Governmental GeneralServiceParkProjectsFundsTotal Nonspendable Prepaid items$ 1,925$ 16,451$ -$ -$ -$ 18,376 Restricted for Debt service - 510,044 - - - 510,044 Cable TV - - - - 32,802 32,802 Public safety 43,126 - - - - 43,126 Total Restricted 43,126 510,044 - - 32,802 585,972 Assigned for Street projects - - - 526,226 - 526,226 Capital equipment - - - - 338,932 338,932 Total Assigned - - - 526,226 338,932 865,158 Unassigned 1,974,074 - (823,419) - - 1,150,655 Total$ 2,019,125$ 526,495$ (823,419)$ 526,226$ 371,734$ 2,620,161 Note 4: Defined Benefit Pension Plans - Statewide A. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). administered in accordance with Minnesota statutes, chapters 353 and 356. qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan All full-time and certain part-time employees of the City, other than teachers, are covered by the General Employees Plan. GERP members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. B. Benefits Provided PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 60 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) General Employee Plan Benefits General Employees Plan benefits are based on a allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. C. Contributions Minnesota statutes chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. GERP Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2019 and the City was required to contribute 7.50 percent for Coordinated Plan members. eneral Employees Fund for the years ending December 31, 2021, 2020 and 2019 were $49,311, $47,546 and $44,348, respectively. Thstate statute. D.Pension Costs General Employees Fund Pension Costs At December 31, 2021, the City reported a liability of $388,611 for its proportionate share of the net pension liability. $16 million to the fund in 2021. The State of Minnesota is considered a non- contribution meets the definition of a special funding situation. onate share of the net pension liability associated with the City totaled $11,895. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. ate share during the measurement period for employer payroll paid dates from July 1, 2020 through June 30, 2021 relative to the total employer contributions received from all of P The 0.0091 percent which was an increase of 0.0006 percent from its proportion measured as of June 30, 2020. 61 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) City's Proportionate Share of the Net Pension Liability$ 388,611 State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 11,895 Total$ 400,506 For the year ended December 31, 2021, the City recognized pension expense of $26,774 for its proportionate share of the General Employees PlanIn addition, the City recognized $960 as pension expense (and grant revenue) 16 million to the General Employees Fund. At December 31, 2021, the City reported its proportionate share of the General Employees Plan resources and deferred inflows of resources, related to pensions from the following sources: The $24,280 reported as deferred outflows of resources GERF subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2022 $ 4,380 2023 8,642 2024 (3,896) 2025 (91,796) E. Actuarial Assumptions The total pension liability in the June 30, 2021 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 6.5 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 6.5 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. 62 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.0 percent after 29 years of service and 6.0 percent per year thereafter Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table.The tables are adjusted slightly to fi Actuarial assumptions used in the June 30, 2021 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2021: General Employees Fund 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. Changes in Plan Provisions There have been no changes since the prior evaluation. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-term TargetExpected Real AllocationRate of Return Asset Class Domestic Equity 33.5 % 5.10 % Alternative Assets (Private Markets) 25.0 5.90 Bonds (Fixed Income) 25.0 0.75 Cash 16.5 5.30 Total 100.00 % F.Discount Rate The discount rate used to measure the total pension liability in 2021 was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund were 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. 63 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 4: Defined Benefit Pension Plans - Statewide (Continued) G. Pension Liability Sensitivity ed pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: City Proportionate Share of NPL 1 Percent1 Percent Decrease (5.50%)Current (6.50%)Increase (7.50%) General Employees Fund$ 792,568$ 388,611$ 57,140 H. Pension Plan Fiduciary Net Position 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 5: Joint Powers Agreements A.Centennial Fire District The Centennial Fire District (the District) was formed under the authority of Minnesota statutes 471.59 in 1985 by agreement of the member cities of Centerville, and Circle Pines. The district was created to provide fire protection services to the residents of the member cities. The District is managed through a three-tier system consisting of a Fire Chief, a Steering Committee, and the City Councils of the member cities. The Fire Chief is an appointed position. Each member city appoints two commissioners. One of these commissioners must be an elected official of the City. Each member city contributes funds to cover the budgeted costs of operations as determined by the commissioners. The amount of contributions required by each member is based on each citys population, number of fire calls, and assessed valuations. Contributions made by member cities for 2021, were as follows: City of Centerville$ 298,396 45.79% City of Circle Pines 353,276 54.21 Total$ 651,672100.00% Volunteer firefighters of the District are members of the Centennial Firefighters Relief Association (the Association). The Association is a single-employer pension plan (the Plan) that operates under the provisions of Minnesota statutes 69 and 424, as amended. It is governed by a board of six officers and trustees elected by the members of the Association for three-year terms. The ex-officio, non-voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the Fire Chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. 64 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 5: Joint Powers Agreements (Continued) B.Centennial Lakes Police Department The Centennial Lakes Police Department (the Department) was formed under the authority if Minnesota statutes 436.06 in 2005 by agreement of the member cities of Centerville, Circle Pines and Lexington. The Department was created to provide police protection services to its member cities. The Department is managed through a three-tier system consisting of a Governing Board, an Operations committee, and a Chief of Police. The Governing Board consists of six members, two elected officials appointed by each member city. The Operations Committee is made up of the City administrators from each member city and the Chief of Police. The Chief of Police is appointed by mutual agreement of the City Councils of all member cities. Annual contributions required by each member city are calculated based on complaint history, population, and staffing formulas. Contributions made by member cities for 2021 were as follows: C. Summary Financial Information of the Joint Powers Agreements Entities The contribution to the joint fire district and the joint police commission are reflected as expenditures in the Citys General fund. The fire district and police commissions assets, liabilities, equity and operations are excluded from the Citys financial statements as further explained in note 1A. The following information is from the financial statements of the District and the Department as of December 31, 2021, the most recent audited information available at the time of this report. The amounts reported for the District are those presented in its government-wide financial statements. These financial statements are available for viewing at the Centerville City hall. Centennial Lakes Police Centennial Department Fire District $ 2,818,013 Total Assets and Deferred Outflows of Resources$ 2,252,505 3,824,998 Total Liabilities and Deferred Inflows of Resources 769,906 (1,006,985) Total Net Position 1,482,599 2,788,112 Total Revenue 784,399 2,408,785 Total Expenses 603,844 Volunteer firefighters of the District are members of the Centennial Firefighters Relief Association (the Association). The Association is a single-employer pension plan (the Plan) that operates under the provisions of Minnesota statutes 69 and 424, as amended. It is governed by a board of six officers and trustees elected by the members of the Association for three-year terms. The ex-officio, non-voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the Fire Chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. 65 City of Centerville, Minnesota Notes to the Financial Statements December 31, 2021 Note 5: Joint Powers Agreements (Continued) D.North Metro Telecommunications Commission The general purpose of the Commission is to award, administer and enforce a cable communications franchise in member municipalities. The member Cities included the City of Blaine, Centerville, Circle Pines, Ham Lake, Lexington, Lino Lakes, and Spring Lake Park. Each member has a representative on the Commissions Board. Note 6: Other Information 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 approximately 800 other governmental units. The City pays an annual premium to 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. Settle 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 management is not aware of any incurred but not reported claims. B.Legal Debt Margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of 3 percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and, therefore, excludes debt financed partially or entirely by special assessments, Enterprise fund revenues or tax increments. As of December 31, 2021, the City is under the legal debt margin. Note 7: COVID-19 - March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. In response to the pandemic, the State of Minnesota has issued stay-at-home orders and other measures aimed at slowing the spread of the coronavirus. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Due to the rapid development and fluidity of this situation, the City cannot determine the ultimate impact that the COVID-19 pandemic will have on its financial condition, liquidity, and future revenue collection, and therefore any prediction as to the ultimate impact on the financial condition, liquidity, and future results of its revenue collections is uncertain. 66 REQUIRED SUPPLEMENTARY INFORMATION CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 67 City of Centerville, Minnesota Required Supplementary Information December 31, 2021 Schedule oare of PERA Net Pension Liability - General Employees Fund Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. Schedule of EmplContributions - General Employees Fund Contributions in Contributions as Relation to the a Percentage of StatutorilyStatutorilyContributionCity's Covered RequiredRequiredDeficiencyCovered Payroll YearContributionContribution(Excess)Payroll (b/c) Ending(a)(b)(a-b)(c) 12/31/21$ 49,311 $ 49,311 $ - 657,484$ 7.50% 12/31/20 47,546 47,546 633,941- 7.50 12/31/19 44,348 44,348 591,305- 7.50 12/31/18 42,276 42,276 563,678- 7.50 12/31/17 38,001 38,001 506,678- 7.50 12/31/16 38,675 38,675 515,669- 7.50 12/31/15 37,110 37,110 494,796- 7.50 Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. 68 City of Centerville, Minnesota Required Supplementary Information (Continued) December 31, 2021 Notes to the Required Supplementary Information - General Employees Fund Changes in Actuarial Assumptions 2021 - 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. 2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. 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% 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 2-5 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 Scale MP-2018 to Scale 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% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 - The mortality projection scale was changed from MP-2017 to MP-2018. 2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed post- retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter. 69 City of Centerville, Minnesota Required Supplementary Information (Continued) December 31, 2021 Notes to the Required Supplementary Information - General Employees Fund (Continued) Changes in Plan Provisions 2021 - There were no changes in plan provisions since the previous valuation. 2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 through 2031. 2018 - 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 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Postretirement 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 - and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 - There were no changes in plan provisions since the previous valuation. 2015 - 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 $892 million. Upon consolidation, state and employer contributions were revised. 70 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 71 City of Centerville, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2021 SpecialCapital Revenue Projects 614409 Total CapitalNonmajor EquipmentGovernmental Cable T.V.RevolvingFunds Assets Cash and temporary investments$ 25,070$ 340,177$ 365,247 Receivables Accrued interest 15 205 220 Due from other governments 7,863 - 7,863 Total Assets$ 32,948$ 340,382$ 373,330 Liabilities Accounts payable$ -$ 1,450$ 1,450 Accrued salaries payable 146 - 146 Total Liabilities 146 1,450 1,596 Fund Balances Restricted for Cable TV 32,802 - 32,802 Assigned for Capital equipment - 338,932 338,932 Total Fund Balances 32,802 338,932 371,734 Total Liabilities and Fund Balances$ 32,948$ 340,382$ 373,330 72 City of Centerville, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2021 Special Capital RevenueProjects 614409 Total Capital Nonmajor EquipmentGovernmental Cable T.V.RevolvingFunds Revenues Interest on investments (loss)$ 49$ (514)$ (465) Miscellaneous Refunds and reimbursements 8,403 - 8,403 Total Revenues 8,452 (514) 7,938 Expenditures Current Culture and recreation Personal services 4,533 - 4,533 Supplies 29 - 29 Other services and charges48,888 - 48,888 Capital outlay General government - 1,450 1,450 Public works - 86,974 86,974 Culture and recreation 70 - 70 Total Expenditures 53,520 88,424 141,944 Excess (Deficiency) of Revenues Over (Under) Expenditures (45,068) (88,938) (134,006) Other Financing Sources Transfers in - 81,000 81,000 Sale of capital assets 11,005 11,005 Total Other Financing Sources - 92,005 92,005 Net Change in Fund Balances (45,068) 3,067 (42,001) Fund Balances, January 1 77,870 335,865 413,735 Fund Balances, December 31$ 32,802$ 338,932$ 371,734 73 74 City of Centerville, Minnesota Statement of Net Position Nonmajor Proprietary Funds December 31, 2021 603604605 StormGarbage Recycling Total Current Assets Cash and temporary investments$ 96,796$ -$ 1,125$ 97,921 Receivables Accrued interest 58 4 3 65 Accounts 21,158 37,578 10,095 68,831 Special assessments -3,5183,518 7,036 Total Current Assets 118,012 41,100 14,741 173,853 Noncurrent Assets Capital assets Land 4,400 - - 4,400 Infrastructure 1,633,841 - - 1,633,841 Less accumulated depreciation (476,078) - - (476,078) Net Capital Assets 1,162,163 - - 1,162,163 Total Assets 1,280,175 41,100 14,741 1,336,016 Deferred Outflows of Resources Deferred pension resources 9,121 - - 9,121 Liabilities Current Liabilities Accounts payable 41 16,952 4,573 21,566 Accrued salaries payable 1,379 - - 1,379 Due to other funds - 15,199 - 15,199 Due to other governments - 3,673 - 3,673 Compensated absences payable - current 3,289 - - 3,289 Total Current Liabilities 4,709 35,824 4,573 45,106 Noncurrent Liabilities Net pension liability 11,904 - - 11,904 Total Liabilities 16,613 35,824 4,573 57,010 Deferred Inflows of Resources Deferred pension resources 10,898 - - 10,898 Net Position Investment in capital assets 1,162,163 - - 1,162,163 Unrestricted 99,622 5,276 10,168 115,066 Total Net Position$ 1,261,785$ 5,276$ 10,168$ 1,277,229 75 City of Centerville, Minnesota Statement of Revenues, Expenses and Changes in Net Position Nonmajor Proprietary Funds For the Year Ended December 31, 2021 603604605 Storm Garbage Recycling Total Operating Revenues Charges for services$ 130,799$ 205,798$ 57,902$ 394,499 Operating Expenses Salaries and benefits 28,345 - - 28,345 Other services and charges 6,762 199,376 52,407 258,545 Depreciation 36,611 - - 36,611 Total Operating Expenses 71,718 199,376 52,407 323,501 Operating Income 59,081 6,422 5,495 70,998 Nonoperating Revenues Interest earnings (loss) 89 (29) (22) 38 Intergovernmental 131,552 - - 131,552 Total Nonoperating Revenues 131,641 (29) (22) 131,590 Change in Net Position 190,722 6,393 5,473 202,588 Net Position, January 1 1,071,063 (1,117) 4,695 1,074,641 Net Position, December 31$ 1,261,785$ 5,276$ 10,168$ 1,277,229 76 City of Centerville, Minnesota Statement of Cash Flows Nonmajor Proprietary Funds For the Year Ended December 31, 2021 603604605 Storm WaterGarbageRecyclingTotals Cash Flows from Operating Activities Receipts from customers and users$ 125,295 $ 204,107 $ 57,453$ 386,855 Payments to suppliers (8,681) (197,125) (52,298) (258,104) Payments to employees (28,800) - - (28,800) Net Cash Provided by Operating Activities 87,814 6,982 5,155 99,951 Cash Flows from Noncapital Financing Activities Principal paid on advance from other funds - (6,949) (4,005) (10,954) Intergovernmental 131,552 - - 131,552 Net Cash Provided (Used) by Noncapital Financing Activities 131,552 (6,949) (4,005) 120,598 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (47,647) - - (47,647) Cash Flows From Investing Activities Interest received on investments 176 (33) (25) 118 Net Increase (Decrease) in Cash and Cash Equivalents 171,895 - 1,125 173,020 Cash and Cash Equivalents, January 1 (75,099) - - (75,099) Cash and Cash Equivalents, December 31$ 96,796$ - $ 1,125$ 97,921 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income$ 59,081$ 6,422$ 5,495$ 70,998 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation 36,611 - - 36,611 (Increase) decrease in assets/deferred outflows of resources Accounts receivable (5,504) (1,190) 52 (6,642) Special assessments - (501) (501) (1,002) Deferred pension resources (7,079) - - (7,079) Increase (decrease) in liabilities/deferred inflows of resources Accounts payable (1,919) 348 109 (1,462) Accrued salaries payable (270) - - (270) Compensated absences payable 122 - - 122 Pension liability (3,278) - - (3,278) Deferred pension resources 10,050 - - 10,050 Due to other governments - 1,903 - 1,903 Net Cash Provided by Operating Activities$ 87,814$ 6,982$ 5,155$ 99,951 77 City of Centerville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued on the Following Pages) For the Year Ended December 31, 2021 (With Comparative Actual Amounts for the Year Ended December 31, 2020) 2021 2020 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Revenues Taxes General property$ 2,364,916$ 2,364,916$ 2,409,492$ 44,576$ 2,279,874 Gambling 2,000 2,000 33,758 31,758 - Total taxes 2,366,916 2,366,916 2,443,250 76,334 2,279,874 Licenses and permits Business 23,200 23,200 18,703 (4,497) 15,585 Nonbusiness 173,000 173,000 297,632 124,632 228,767 Total licenses and permits 196,200 196,200 316,335 120,135 244,352 Intergovernmental Federal - other - - - - 306,939 State Local government aid 75,626 75,626 75,626 - 84,536 Market value agricultural credit 100 100 208 108 205 Police aid 48,000 48,000 42,453 (5,547) 48,621 Fire aid 52,200 52,200 59,927 7,727 53,418 Other 1,333 1,333 - (1,333) 7,465 County - other 18,000 18,000 47,961 29,961 30,762 Total intergovernmental 195,259 195,259 226,175 30,916 531,946 Charges for services General government 2,500 2,500 9,000 6,500 630 Culture and recreation 2,500 2,500 1,865 (635) - Other - - 103 103 23 Total charges for services 5,000 5,000 10,968 5,968 653 Fines and forfeitures 13,000 13,000 14,761 1,761 10,188 Special assessments - - 62,969 62,969 - Interest on investments (loss) 13,000 13,000 (5,929) (18,929) 20,384 Miscellaneous Refunds and reimbursements 6,000 6,000 81,688 75,688 6,989 Other 1,100 1,100 68,046 66,946 646 Total miscellaneous 7,100 7,100 149,734 142,634 7,635 Total Revenues 2,796,475 2,796,475 3,218,263 421,788 3,095,032 78 City of Centerville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2021 (With Comparative Actual Amounts for the Year Ended December 31, 2020) 2021 2020 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Expenditures Current General government Mayor and council Personal services$ 30,200$ 30,200$ 30,159$ 41$ 48,347 Other services and charges 21,000 21,000 494 20,506 163 Total mayor and council 51,200 51,200 30,653 20,547 48,510 Elections Personal services 2,740 2,740 - 2,740 23,616 Supplies 200 200 - 200 99 Other services and charges 350 350 - 350 800 Total elections 3,290 3,290 - 3,290 24,515 Planning and zoning Personal services - - 4,037 (4,037) 2,530 Other services and charges 9,100 9,100 12,970 (3,870) 5,140 9,100 9,100 17,007 (7,907) 7,670 Administration Personal services 302,400 302,400 301,460 940 256,087 Supplies 2,500 2,500 5,254 (2,754) 4,659 Other services and charges 67,400 67,400 64,081 3,319 60,319 Total administration 372,300 372,300 370,795 1,505 321,065 Assessing Other services and charges 18,400 18,400 19,355 (955) 18,635 Legal and auditing Other services and charges 111,900 111,900 94,460 17,440 74,593 General government building Personal services 3,700 3,700 1,173 2,527 672 Supplies 400 400 141 259 - Other services and charges 15,700 15,700 18,699 (2,999) 49,565 Total general government building 19,800 19,800 20,013 (213) 50,237 Total general government 585,990 585,990 552,283 33,707 545,225 79 City of Centerville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2021 (With Comparative Actual Amounts for the Year Ended December 31, 2020) 2021 2020 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Expenditures (Continued) Current (continued) Public safety Police protection Personal services$ - $ - $ 846$ (846)$ 2,349 Supplies - - 125 (125) 2,555 Other services and charges 853,289 853,289857,783 (4,494)1,089,417 Total police protection 853,289 853,289 858,754 (5,465) 1,094,321 Fire protection Remittance to relief association 52,200 52,200 55,927 (3,727) 56,419 Other services and charges 298,396 298,396 298,396 - 297,824 Total fire protection 350,596 350,596 354,323 (3,727) 354,243 Building inspection Personal services 126,900 126,900 137,915 (11,015) 147,969 Supplies 2,900 2,900 2,886 14 1,361 Other services and charges 14,750 14,750 8,930 5,820 10,275 Total building inspection 144,550 144,550 149,731 (5,181) 159,605 Civil defense Other services and charges 1,500 1,500 1 1,499 554 Total public safety 1,349,935 1,349,935 1,362,809 (12,874) 1,608,723 Public works Streets Personal services 151,300 151,300 128,010 23,290 132,386 Supplies 35,100 35,100 20,882 14,218 9,023 Other services and charges 132,800 132,800 95,608 37,192 83,988 Total streets 319,200 319,200 244,500 74,700 225,397 Recycling Personal services 10,300 10,300 18,328 (8,028) 16,754 Supplies 100 100 1,571 (1,471) 1,373 Other services and charges 9,400 9,400 19,956 (10,556) 20,665 Total recycling 19,800 19,800 39,855 (20,055) 38,792 80 City of Centerville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2021 (With Comparative Actual Amounts for the Year Ended December 31, 2020) 2021 2020 Budgeted Amounts ActualVariance withActual OriginalFinalAmountsFinal BudgetAmounts Expenditures (Continued) Current (continued) Public works (continued) Engineering services Other services and charges$ 30,000$ 30,000$ 52,382$ (22,382) $ 29,171 Total public works 369,000 369,000 336,737 32,263 293,360 Culture and recreation Parks and recreation Personal services 44,850 44,850 46,680 (1,830) 37,176 Supplies 3,300 3,300 9,932 (6,632) 1,345 Other services and charges 70,300 70,300 84,041 (13,741) 82,609 Total parks and recreation 118,450 118,450 140,653 (22,203) 121,130 City festival Other services and charges 10,400 10,400 12,562 (2,162) 140 Total culture and recreation 128,850 128,850 153,215 (24,365) 121,270 Economic development Other services and charges - - 34,616 (34,616) 22,800 Total economic development - - 34,616 (34,616) 22,800 Total current 2,433,775 2,433,775 2,439,660 (5,885) 2,591,378 Capital outlay General government 52,500 52,500 42,469 10,031 306,116 Culture and recreation - - 10,018 (10,018) - Total capital outlay 52,500 52,500 52,487 13306,116 Total Expenditures 2,486,275 2,486,275 2,492,147 (5,872) 2,897,494 Excess of Revenues Over Expenditures 310,200 310,200 726,116 415,916 197,538 Other Financing Uses Transfers out (310,200) (310,200) (281,000) 29,200 (276,000) Net Change in Fund Balances - - 445,116 445,116 (78,462) Fund Balances, January 1 1,574,009 1,574,009 1,574,009 - 1,652,471 Fund Balances, December 31$ 1,574,009$ 1,574,009$ 2,019,125$ 445,116$ 1,574,009 81 City of Centerville, Minnesota Debt Service Funds Combining Balance Sheet December 31, 2021 302309351352353 JointG.O.G.O.G.O. G.O.PoliceImprovementImprovementRefunding Capital NotesStationBonds ofBonds ofBonds of 2016A2012A2009A/2016A2013A2021ATotal Assets Cash and temporary investments $ 416 $ 63,267 $ 280,061$ (9 7)$ 164,228$ 507,875 Receivables Accrued interest - 38 169 97 2 306 Special assessments-- 24 5,036 - - 24 5,036 Prepaid items16,451----16,451 Total Assets$ 16,867 $ 63,305 $ 525,266$ -$ 164,230$ 769,668 Deferred Inflows of Resources Unavailable revenue - special assessments$ -$ -$ 243,173$ -$ -$ 243,173 Fund Balances Nonspendable 16,451 - - - - 16,451 Restricted for debt service 416 63,305 282,093 - 164,230 510,044 Total Fund Balances 16,867 63,305 28 2,093 - 16 4,230 52 6,495 Total Deferred Inflows of Resources and Fund Balances$ 16,867 $ 63,305 $ 525,266$ -$ 164,230$ 769,668 82 City of Centerville, Minnesota Debt Service Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2021 302309351352353 JointG.O.G.O.G.O. G.O.PoliceImprovementImprovementRefunding Capital NotesStationBonds ofBonds ofBonds of 2016A2012A2009A/2016A2013A2021ATotal Revenues Taxes General property $ -$ -$ 212,937$ 167,302$ -$ 380,239 Franchise 7,926 - - - - 7,926 Special assessments - - 84,140 23,761 - 107,901 Interest on investments (loss) 30 (43) (2 ,417) (7 24) (2) (3 ,156) Total Revenues 7,956 (43) 29 4,660 19 0,339 (2)49 2,910 Expenditures Debt service Principal 5,604 6,239 26 5,000 15 0,000 - 42 6,843 Interest and other 1,992 - 20,498 23,637 7,250 53,377 Bond issuance costs - - - 20,903 20,903 Total Expenditures 7,596 6,239 28 5,498 19 4,540 7,250 50 1,123 Excess (Deficiency) of Revenues Over (Under) Expenditures 360 (6,282) 9,162 (4 ,201) (7 ,252) (8 ,213) Other Financing Sources (Uses) Transfers in - - - - 16 1,060 16 1,060 Transfers out - - - (161,060) - (161,060) Principal paid on refunded bonds - - - (1,285,000) (1,285,000) Refunding bonds issued - - - 1,311,437 10,422 1, 321,859 Total Other Financing Sources (Uses) - - - (134,623) 17 1,482 36,859 Net Change in Fund Balances 360 (6,282) 9,162 (138,824) 16 4,230 28,646 Fund Balances, January 1 16,507 69,587 27 2,931 13 8,824 - 49 7,849 Fund Balances, December 31$ 16,867 $ 63,305 $ 282,093$ -$ 164,230$ 526,495 83 City of Centerville, Minnesota Economic Development Authority (Discretely Presented Component Unit) Balance Sheet December 31, 2021 201 Economic Development Authority Assets Cash and temporary investments $ 27,522 Prepaid items588 Total Assets$ 28,110 Fund Balances Nonspendable Prepaid items 588 Assigned for economic development27,522 Total Fund Balances $ 28,110 84 City of Centerville, Minnesota Economic Development Authority (Discretely Presented Component Unit) Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended December 31, 2021 201 Economic Development Authority Revenues Interest on investments$ 9 Intergovernmental 29,200 Total Revenues29,209 Expenditures Current Housing and economic development 13,937 Net Change in Fund Balances 15,272 Fund Balances, January 1 12,838 Fund Balances, December 31$ 28,110 85 City of Centerville, Minnesota Summary Financial Report Revenues and Expenditures For General Operations Governmental Funds For the Years Ended December 31, 2021 and 2020 Percent TotalIncrease (Decrease) 20212020 Revenues Taxes$ 2,992,503$ 2,870,619 4.25% Licenses and permits 316,335 244,352 29.46 Intergovernmental 285,365 531,946 (46.35) Charges for services 104,162 67,981 53.22 Fines and forfeitures 14,761 10,188 44.89 Special assessments 254,410 122,221 108.16 Interest on investments (loss) (10,652) 31,913 (133.38) Miscellaneous 158,137 22,505 602.67 Total Revenues$ 4,115,021$ 3,901,725 5.47% Per Capita$ 1,056$ 963 9.64% Expenditures Current General government$ 552,283$ 545,047 1.33% Public safety 1,362,809 1,608,901 (15.30) Public works 336,737 293,361 14.79 Culture and recreation 206,665 125,327 64.90 Economic development 34,616 22,800 51.82 Capital outlay General government 43,919 309,714 (85.82) Public works 318,043 1,241,887 (74.39) Culture and recreation 33,292 994 3,249.30 Debt service Principal 426,843 1,451,346 (70.59) Interest and other 53,377 76,618 (30.33) Bond issuance costs 20,903 -N/A Total Expenditures$ 3,389,487$ 5,675,995 (40.28)% Per Capita$ 870$ 1,401 (37.92)% Total Long-term Indebtedness$ 2,304,072$ 2,760,915 (16.55)% Per Capita 591 682 (13.25) General Fund Balance - December 31$ 2,019,125$ 1,574,009 28.28% Per Capita 518 389 33.35 The purpose of this report is to provide a summary of financial information concerning the City of Centerville to interested citizens. The complete financial statements may be examined at City Hall, 1880 Main Street, Centerville, MN 55038. Questions about this report should be directed to City Hall at (651) 429-3232. 86 OTHER REQUIRED REPORT CITY OF CENTERVILLE CENTERVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 87 88 INDEPENDENT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor andCityCouncil City of Centerville, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of thegovernmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of theCity of Centerville, Minnesota (the City),as of and for the year endedDecember 31, 2021, and the related notes to the financial statements, and have issued our report thereon dated June 1, 2022. In connection with our audit, nothing came to our attention that caused us to believe that the City of Centerville failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financingsections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. §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 nsofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. Abdo Minneapolis, Minnesota June 1, 2022 89 óşóĴĞŜĞşƓ >ŨŜŜƚşĿĐóƓĿŨş Centerville, Minnesota For the year ended December 31, 2021 June 1, 2022 Management, Honorable Mayor and City Council City of Centerville, Minnesota We have audited the accompanying financial statementsof thegovernmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of theCity of Centerville, Minnesota (the City),forthe year ended December31,2021. Professional standards requirethat we provide you withinformation about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 6,2021. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings 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 designingaudit 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 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 materialweakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a 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. As described below, we identified a deficiency in internal control that we consider to be a material weakness, as finding 2021-01 2 2021-001Material Audit Adjustments Condition:During our audit, material adjustmentswereneeded to correct the debt and utility revenue activity. Criteria: accounting system need to agree to the underlying supporting documentation. Cause:City staff did not prepare a year end trial balance reflecting all necessary accounting entries in the areas noted above. City staff provided preliminary 2021general ledger information electronically that wasused to generate a trial balance.Additional entries fordebt and utility revenue activity were added to the audit entries during the audit. Effect: control. Recommendation:We recommend management review the related journal entries, obtain an understanding of why the entries were necessary and modify current procedure to ensure that future corrections are not needed. Management Response: The finance director will review each journal entry in an effort to better understand the reason the modification as necessary in an effort to limit future corrections. Compliance and Other Matters misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters 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. While with those requirements. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported in accordance with Minnesota statutes. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies were not changed during the year ended December 31, 2021. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus.All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on 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 include depreciation on capital, allocation of payrollexpenses, other post- . is calculated using the straight-line method. City. These allocations are also used in allocating accrued compensated absences payable. 3 -employment benefits was estimated to be zero primarily based on the assumption that employees, whom participate in the health insurance plan, will retire after the age of 65 and not continue to participate in the plan following retirement. investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement. We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements areneutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties indealing 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.The following material misstatements detected as a result of audit procedures were corrected by management: additional entries for debt related payments of $1,435,000noted above were added to the audit entries during the audit. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial audit. ManagementRepresentations We have requested certain representations from management that are included in the management representation letter dated June 1, 2022. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, pr 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. 4 Other Matters We applied certain limited procedures to the required supplementary information (RSI) ( ), which is information 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 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 supplementary information (combining and individual fund financial statements and schedules), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory sectionwhich accompaniesthe financial statements but isnot RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. 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 course of our professional relationship and our responses were not a condition to our retention. 5 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact (1) on future City financial statements: GASB Statement No. 87 -Leases Summary The objective of this Statement is to better meet the information needs of financial statement users by improving financial statements by requiring recognition of certain lease assets and liabilitiesfor leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a activities. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15,2021, and all reporting periods thereafter. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should not restate the assets underlying their existing sales-type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial Reporting liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision- usefulness of the information provided to financial statement users by requiring notes to financial statements related to 6 Future Accounting Standard Changes (Continued) GASB Statement No. 91 -Conduit Debt Obligations Summary The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so. An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness debt service through a voluntary commitment. This Statement also addresses arrangements -often characterized as leases -that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities. Payments from third-party obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements. This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggrega description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. Earlier application is encouraged. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will o recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potentialimpact of such commitments on the financial resources 7 Future Accounting Standard Changes (Continued) GASB Statement No. 92 -Omnibus 2020 Summary The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following: The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans,as amended, to reporting assets accumulated for postemployment benefits The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements Measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature Terminology used to refer to derivative instruments. Effective Date and Transition The requirements of this Statement are effective as follows: The requirements related to the effective date of Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. The requirements related to intra-entity transfers of assets and those related to the applicability of Statements 73 and 74 are effective for fiscal years beginning after June 15, 2020. The requirements related to application of Statement 84 to postemployment benefit arrangements and those related to nonrecurring fair value measurements of assets or liabilities are effective for reporting periods beginning after June 15, 2020. The requirements related to the measurement of liabilities (and assets, if any) associated with AROs in a government acquisition are effective for government acquisitions occurring in reporting periods beginning after June 15, 2020. Earlier application is encouraged and is permitted by topic. 8 Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements ofthis Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users ofstate and local government financial statements. GASB Statement No. 93-Replacement of Interbank Offered Rates Summary The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. This Statement achieves that objective by: Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap Clarifying the definition of reference rate, as it is used in Statement 53, as amended Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend Effective Date and Transition The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2020. Earlier application is encouraged. The exceptions to the existing provisions for hedge accounting termination and lease modifications in this Statement will reduce the cost of the accounting and financial reporting ramifications of replacing IBORs with other reference rates. The reliabilityand relevance of reported information will be maintained by requiring that agreements that effectively maintain an existing hedging arrangement continue to be accounted for in the same manner as before the replacement of a reference rate. As a result, this Statement will preserve the consistency and comparability of reporting hedging derivative instruments and leases after governments amend or replace agreements to replace an IBOR. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulnessof information for users of state and local government financial statements. 9 Future Accounting Standard Changes (Continued) GASB Statement No. 94-Public-Private and Public-Public Partnerships and Availability Payment Arrangements Summary The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated). How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactionsthat meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater l statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a gove 10 Future Accounting Standard Changes (Continued) GASB Statement No. 96 -Subscription-Based Information Technology Arrangements Summary This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset -an intangible asset -and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. Under this Statement, a government generally should recognize a right-to-use subscription asset -an intangible asset - and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, -which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be i government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) insubsequent financial reporting periods. This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This Statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. Assets and liabilities resulting from SBITAs should be recognized and measuredusing the facts and circumstances that existed at the beginning of the fiscal year in which this Statement is implemented. Governments are permitted, but are not required, to include in the measurement of the subscription asset capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage incurred prior to the implementation of this Statement. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and i 11 Future Accounting Standard Changes (Continued) GASB Statement No. 97-Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans -an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 Summary The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensationplans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This Statement requires that for purposes of determining whether a primary government is financially accountable for a potential componentunit, except for a potential component unit that is a defined contribution pension plan, a defined contribution OPEB plan, or another employee benefit plan (for example, certain Section 457 plans), the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. This Statement also requires that the financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively. This Statement (1) requires that a Section 457 plan be classified as either a pension plan or another employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities. This Statement supersedes the remaining provisions of Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding investment valuation requirements for Section 457 plans. reporting period in all circumstances. Effective Date and Transition The requirements of this Statement that (1) exempt primary governments that perform the duties that a governing board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans and (2) limit the applicability of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74, respectively, are effective immediately. The requirements of this Statement that are related to the accounting and financial reporting for Section 457 plansare effective for fiscal years beginning after June 15, 2021. For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this Statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021. Earlier application of those requirements is encouraged and permitted by requirement as specified within this Statement. 12 Future Accounting Standard Changes (Continued) The Board considered the effective dates for the requirements of this Statement in light of the COVID-19 pandemic and in concert with Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will result in more consistent financial reporting of defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs associated with reporting those plans. The requirements also will enhance the relevance, consistency, and comparability of (1) the information related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those plans and (2) investment information for all Section 457 plans. (1) Note. From GASB Pronouncements Summaries. Copyright2021by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. - - - - - - Restriction on Use This purpose of this communication is solely for the information and use of the City Council and management of the City and is not intended to be, and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. Abdo Minneapolis, Minnesota June 1, 2022 13 CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: 06-08-2022 Public Works IX.2 TITLE OF ISSUE: Purchase of Toolcat BACKGROUND AND SUPPLEMENTAL INFORMATION: The 2022 Capital Improvement Plan includes $65,000 for the proposed purchase of a Toolcat. Staff has researched the options and recommends the UW56 model with dump box. Along with the standard equipment package, staff would recommend an upgrade for turf tires, a standard bucket, snow blower and a brushcat for mowing overgrowth areas and trail edges. Prices are from the state bid #380425350. COST AND SOURCE(S) OF FUNDING: Capital Replacement Fund: $77,202.49 plus delivery REQUESTED COUNCIL ACTION: Motion to approve $77,202.49 plus delivery for purchase of Toolcat UW56 per attached quote. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ _____ Quote from Tri-State Bobcat Other (specify) ____________ _____ _____ _____ _____ Toolcat brochure pictures _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 City Attorney IX.3 TITLE OF ISSUE: Amazon Development - Maintenance Agreement and Revised Development Agreement BACKGROUND AND SUPPLEMENTAL INFORMATION: - Maintenance Agreement: The City is telling Rice Creek that it will perpetually maintain a culvert for Rice Creek. This is related to the Amazon development and other property owners in the vicinity. It is the City's mission and duty to maintain public infrastructure like this culvert. - Revised Development Agreement: (SEE, Paragraph 26J, marked changes in the document) This important revision asks the City to grant Amazon the future right to construct infrastructure in easements they just gave to the City. The City is giving them permission now because the location of these private sewers is still being planned. Other marked revisions in this document were order by the Council at your last meeting. - The attached Resolution adopts these documents, and grant the City Attorney permission to make minor changes if necessary. COST AND SOURCE(S) OF FUNDING: N/A; Attorney costs are passed through to the developer. REQUESTED COUNCIL ACTION: Motion to approve the attached Resolution (Authorizing the adoption of the Maintenance Agreement and Revisions to the Development Agreement. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: Aye Nay _____ _____ Maintenance Agreeement; Revised DA Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION #22-____ A RESOLUTION APPROVING LAND USE DOCUMENTS FOR THE FAIRVIEW SECOND ADDITION PLAT WHEREAS, the City of Centerville City Council, after review and consideration of the aforementioned land use applications and documents for the development of the Fairview Second Addition Plat, finds that it is in the best interest of the City to approve: Revised version of a Development & Subdivision Agreement for Fairview Second Addition. Maintenance Agreement – between Rice Creek Watershed District and the City of Centerville. WHEREAS, the City Council authorizes the City Attorney to make amendments to these land use documents as necessary such that they do not change or alter the intent of the documents. NOW, THEREFORE, BE IT RESOLVED, that the Centerville City Council does hereby, approve the aforementioned land use applications and documents. th PASSED AND DULY ADOPTED this 8 day of June 2022 by the City Council of the City of Centerville. ________________________________ D. Love, Mayor Attest: ____________________________________ Teresa Bender, City Clerk FAIRVIEW SECOND ADDITION a. Exhibit D tǒĬƌźĭ LƒƦƩƚǝĻƒĻƓƷ /ƚƭƷƭ ğƓķ {ĻĭǒƩźƷǤ Section 18 Total Public Infrastructure Cost (water main)$ 200,000.00 "Security" - 150% of Infrastructure Costs$ 300,000.00 "Site Security" - (negotiated with Ryan Cos.)$ 500,000.00 Total $ 800,000.00 Form Of Security & Site Security (from above)Section 18 Cash for Security$300,000 Cash for Site Secuirty$50,000 $350,000$ 350,000.00 Bond for Site Security (balance)$ 450,000.00 Total$ 800,000.00 ƷźƌźƷǤ CĻĻƭ Storm Water Area Charge Section 21$0.07 per Square Foot of impervious surface Sq. Ft. Impervious Surface830,343$ 58,124.01 tğƩƉ 5ĻķźĭğƷźƚƓ CĻĻƭ ƦǒƩƭǒğƓƷ Ʒƚ /źƷǤ /ƚķĻ ЊЎЌ͵ЊЎΛ.Μ ğƓķ /źƷǤ CĻĻ {ĭŷĻķǒƌĻ ΛƦĻƩ ğĭĻƩ ĬğƭźƭΜ Park Dedication FeeSection 21$2,175 per acre Acers in Plat 40.722$ 88,570.35 {ƦĻĭźğƌ CĻĻƭ ğƓķ 9ƭĭƩƚǞƭ Escrow for Transportation ImprovementsSection 26 C$ 650,000.00 Park Trail on FairviewSection 26 D$ 85,000.00 Park Donation for Trees and ShrubsSection 26 E$700 per treeTBD per Sec. 26 E Table version 06/02/2022 v2 MAINTENANCEAGREEMENT Waterbody/ChannelCrossing BetweentheRiceCreekWatershedDistrictand CityofCenterville,Minnesota ThisMaintenanceAgreementΛͻ!ŭƩĻĻƒĻƓƷͼΜismadebyandbetweentheRiceCreekWatershed District,awatersheddistrictwithpurposesandpowerssetforthatMinnesotaStatutesChapters 103Band103Dandadrainageauthoritypursuanttochapter103EofthelawsoftheStateof Minnesota(RCWD),andCITYOFCENTERVILLE,aMinnesotamunicipalcorporation ΛͻtĻƩƒźƷƷĻĻͼΜ͵ RecitalsandStatementofPurpose WHEREAS pursuanttoMinnesotaStatutes§103D.345,theRCWDhasadoptedandimplements RuleG,ͻ/ƩƚƭƭźƓŭƭofNatural&ArtificialConveyance{ǤƭƷĻƒƭͲͼandRuleI,ͻ5ƩğźƓğŭĻ{ǤƭƷĻƒƭͼͳ WHEREAS RCWDRuleGimposescertainrequirementstoensureastructureplacedina waterbodysystemismaintainedtoperformasdesigned; WHEREAS asapartoftheworkapprovedunderPermit16060,Permitteeisinstallinga structurewithinawaterbodysystemsubjecttorequirementsofRCWDRuleG. WHEREAS inaccordancewithRCWDRuleGandasaconditionofPermit16060,Permitteemust maintainthestructureinperpetuity,anditsobligationtodosomustbememorializedbya maintenanceagreement; WHEREAS PermitteeandtheRCWDexecutethisAgreementtofulfillthisconditionofPermit16 060,andconcurthatitisbindingandrestsonmutualvaluableconsideration; THEREFORE: 1.Permittee,atitscost,willmaintainthestructurelabeledonExhibitAas 5ƩğźƓğŭĻ9ğƭĻƒĻƓƷͲ /ǒƌǝĻƩƷŅƚƩWǒķźĭźğƌ5źƷĭŷЌ. 2.Permitteewillinspectthestructureatleastannually. 3.Permitteewillmaintainthestructureingoodrepairtopreservehydraulicandnavigational capacityinaccordancewithRCWDapprovedplans;providefornonetincreaseinfloodstage beyondthatofRCWDapprovedplans;avoidincreasedscour,erosionandsedimentation,water qualityimpactandchangetotheexistingflowline/gradient;andpreventconditionsthat promotehydraulicornavigationalobstruction. 4.Permitteewillrepairerodedorotherunstableconditionsresultingfromthestructureas promptlyasweatherandseasonalconditionsallow. 5.Ifthestructureisnotbeingmaintainedinaccordancewiththisdeclaration,theRCWDmay givewrittennoticedetailingthedeficiency.Ifthedeficiencyhasnotbeencorrectedwithin twenty(20)daysafterreceiptofthisnotice,orarrangementsdeemedadequatebytheRCWD 1 havenotbeenmadewithinthatperiod,thentheRCWDwithoutfurthernoticemaytakesteps thatitdeemsreasonabletocorrectthedeficiency,andmayhaveaccesstothePropertyduring reasonabletimesforthatpurpose.TheRCWDwillprovidenoticebeforeentryandexercisedue caretoavoiddamagetotheProperty.Withinthirty(30)daysofreceiptofinvoicetheRCWD shallbereimbursedforallcostsincurredincorrectingthedeficiency,includingadministrative overheadandreasonableattorneys'fees. 6.Anynoticeunderthisdeclarationshallbesentbycertifiedmail,returnreceiptrequested,or deliveredtothefollowingaddress: CityofCenterville CityAdministrator 1880MainStreet Centerville,MN55038 Withacopyto: Berglund,Baumgartner,Kimball&Glaser,LLC Attention:KurtB.Glaser 333WashingtonAvenueNorth,Suite405 Minneapolis,Minnesota55104 KGlaser@BBKGLaw.com ttertotheRCWDreferencingthepermit Permitteemaychangethisaddressbyacertifiedle number. 7.IfPermitteeconveysintoprivateownershipafeeinterestinalloranyportionofthepublic propertythatissubjecttothisAgreement,itmustrequireasaconditionofsale,andenforce:(a) thatthepurchaserrecordadeclarationonthepropertyincorporatingthemaintenance requirementsofthisAgreement;and(b)thatrecordationoccureitherbeforeanyencumbrance isrecordedonthepropertyor,ifafter,onlyasaccompaniedbyasubordinationandconsent executedbytheencumbranceholderensuringthatthedeclarationwillrunwiththelandin perpetuity.IfPermitteeconveysintopublicownershipafeeinterestinalloranyportionofthe propertythatissubjecttothisAgreement,itmustrequireasaconditionofthepurchaseand saleagreementthatthepurchaseracceptanassignmentofallobligationsvestedunderthis Agreement. 8.ThisAgreementisinforceforfiveyearsfromthedateonwhichitisfullyexecutedandwill renewautomaticallyforfiveyeartermsunlessterminatedbytheparties.ThisAgreementmay beamendedonlyinawritingsignedbytheparties. 9.TherecitalsareincorporatedasapartofthisAgreement. 2 INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreement. RICECREEKWATERSHEDDISTRICT By_______________________________Date: RCWDAdministrator,PhilBelfiori CITYOFCENTERVILLE BY:____________________________________Date: D.Love,Mayor AND___________________________________Date: MarkStatz,CityAdministrator 3 ExhibitA 4 CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Engineering IX.4 TITLE OF ISSUE: Resolution Ordering the Feasibility Study for the 2022 Thin Overlay and City Hall Parking Lot Improvements BACKGROUND AND SUPPLEMENTAL INFORMATION: In previous years, the city has assessed a portion of the costs for thin, bituminous overlays to adjacent properties, through MN State Statute 429. This statute requires a feasibility report to be prepared as the first step in the process. At the previous City Council meeting, the engineering proposal for this work was approved, but a formal resolution ordering the feasibility report was not presented for consideration. If this resolution is passed, the engineers will present the feasibility report at the next City Council meeting. COST AND SOURCE(S) OF FUNDING: Costs previously approved. REQUESTED COUNCIL ACTION: Motion to approve the attached Resolution Ordering the Feasibility Report for the 2022 Thin Overlay and City Hall Parking Lot Improvements. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ X Vote Record: Aye Nay _____ _____ Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE RES. #22-0___ Alternate Resolution Ordering Preparation of Report on Improvement 2022 City Hall Parking Lot and Thin Overlay Street Improvements WHEREAS, it is proposed to improve the City Hall Parking lot by a full pavement removal and replacement ndrdstndrd and all streets in the Hunter’s Crossing 2 and 3 Additions, Pheasant Marsh 1, 2 and 3 Additions, Durpe Road, from Partridge Place to a point 200 feet north of Center Street, and Progress Road, north of Main Street with a thin asphalt overlay and to assess the benefited property for all or a portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF CENTERVILLE, MINNESOTA: That the proposed improvement, called the 2022 City Hall Parking Lot and 2022 Thin Overlay Street Improvements be referred to Stantec for study and that they are instructed to report to the council with all convenient speed advising the council in a preliminary way as to whether the proposed improvement is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for affected parcels. Adopted by the council this 8th day of June, 2022. Mayor City Clerk CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Administration IX.3 TITLE OF ISSUE: Review of Business Water Hook-up Assistance Program BACKGROUND AND SUPPLEMENTAL INFORMATION: In 2021, the City Council approved a Water Hook-up Assistance Program for Centerville Businesses. The program was then extended to June 1, 2022, with a directive to review the program at that time, to determine if it should continue. So far, we have had 1 facility, which houses 3 businesses, take advantage of the program and have had interest from others. The program provides discounts to existing commercial/industrial buildings that hook to city water: WAC - $1850/residential equivalent unit (REU); $925/REU @50% discount Lateral Benefit fee - $8,000/parcel; $4,000/parcel @50% discount Staff recommends continuing the program through the end of 2023. COST AND SOURCE(S) OF FUNDING: Loss of potential connection fee revenue; Water Utility REQUESTED COUNCIL ACTION: Motion to extend the Business Water Hook-up Assistance Program through the end of 2023. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ _____ Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Administration IX.4 TITLE OF ISSUE: Review of Water Hook-up Ordinance BACKGROUND AND SUPPLEMENTAL INFORMATION: Several years ago, city code related to mandatory water hook-ups was changed from using a sunset date, by which all homes needed to connect, to utilizing an event trigger-based system. The 3 events are: failure of the well, substantial addition to the home and sale of the home. This new ordinance language has worked relatively well and has resulted in a number of new hook-ups. However, in the downtown area, the enforcement of this ordinance is raising some questions about what is best for the city. Given the desire to redevelop properties in the downtown, forcing water hook-ups upon sale is disincentivizing investors from assembling properties for that purpose. We end up with a situation where we are forcing an investor to pay upwards of $20,000 to hook up a blighted structure to city water, despite their intention to tear it down and redevelop the site within a few years. Staff is recommending the removal of the water hook-up clause for structures in the M-1/M-2 Districts. COST AND SOURCE(S) OF FUNDING: N/A REQUESTED COUNCIL ACTION: Motion to direct staff to draft revised language for the water hook-up ordinance to exclude the M-1/M-2 Districts. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ _____ Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Administration IX.7 TITLE OF ISSUE: Moving June 20 council meeting to June 21 BACKGROUND AND SUPPLEMENTAL INFORMATION: At the last city council meeting, council moved their June 22 meeting to June 20 because several board members will be attending a conference on the 22nd. Staff is requesting that council consider moving the June 20 meeting to June 21, due to national observance of the Juneteenth federal holiday. City Attorney Glasser advised that the Open meeting law does not allow Council meetings on a holiday per Minn. Stat. 645.44. This statute has not been updated to list Juneteenth as a specifically designated State holiday but there is a general clause stating that, “No public business shall be transacted on any holiday\[.\]” Attorney Glasser believes the Council should not meet on 6/20. COST AND SOURCE(S) OF FUNDING: N/A REQUESTED COUNCIL ACTION: Motion to move the June 20, 2022 council meeting to June 21, 2022 due to recent legislation proclaiming Juneteenth a federal holiday. For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ _____ Other (specify) ____________ _____ _____ _____ _____ _____ _____Ki _____ _____ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ CITY OF CENTERVILLE REQUEST FOR COUNCIL ACTION Agenda Item # Department: Requested Council Meeting Date: June 8, 2022 Administration IX.8 TITLE OF ISSUE: Photography Services BACKGROUND AND SUPPLEMENTAL INFORMATION: The city does not have manyhigh resolution photos for the new website. The existing website uses stock images of people and places. In an effort to further promote, celebrate, and captureenterville's unique charm, staff would like to hire a professional photographer COST AND SOURCE(S) OF FUNDING: $1,000-$2,000 from General Fund and/or EDA REQUESTED COUNCIL ACTION: Motion to For Clerk’s Use: SUPPORTED DOCUMENTS ATTACHED Motion By: ____________________________________ Resolution Ordinance Contract Minutes Plan Map Second By: ____________________________________ Vote Record: Aye Nay _____ _____ Other (specify) ____________ _____ _____ _____ _____ _______________________________________________________________ _____ _____Ki _____ ____________________________________________________________________ Administration Department Use: Refer to: _________________________________ Consent Tabled Until: ______________________________ Regular Other: ___________________________________ Administrator/Engineer’s Report June 08, 2022 VOLUNTEER OPPORTUNITIES We have a number of volunteer opportunities, which include spots on our boards and commissions as well as single-event spots that need to be filled. It’s a great way to get to know your neighbors and be a part of your community. For questions on any of these positions, please call City Hall at 651-429-3232. Parks & Recreation Committee – Open Seat o Meets monthly on the First Wednesday at 6:30 PM Economic Development Authority – Open Seat o Meets monthly on the Third Wednesday at 6:30 PM Fete des Lacs Volunteer o Multiple spots for various events July 12-17th Garage Sale Days This year’s Garage Sale Days is scheduled for June 10 & 11. Get out and meet your neighbors and find your treasures. PARKS AND RECREATION Committee Seat Available A vacant seat remains on the City’s Parks and Recreation Committee. Please call City Hall or email info@centervillemn.com if interested. Emerald Ash Borer The Parks and Rec Committee has recommended the treatment of 19 specimen trees in the city’s parks system against the Emerald Ash Borer. Other Ash trees in more wooded areas will be monitored and removed, if diseased. Strategic Plan The Parks and Rec Committee continues work on its strategic plan. If you’d like to give input, we are always happy to receive your thoughts. Just give us a call or email us at info@centervillemn.com Volunteer Appreciation Event The second annual Volunteer Appreciation Event is being planned for this fall, by the Parks and Recreation Committee. ADMINISTRATION Website Update th Staff met with CivicPlus on May 26 for the website redesign kickoff meeting. At this meeting, staff met the project team, discussed phases of the project, and received the project timeline. Staff is in the process of collecting and uploading content for the new website. We will keep you involved and up to date as we move through this process. The website and mobile app are expected to rd launch together on October 3! Meeting and City Hall Schedule June 15, 2022, 2022 6:30 p.m. – Economic Development Authority June 7, 2022, 6:30 p.m. - Planning & Zoning Commission meeting June 20 (on agenda for rescheduling), 2022, 6:30 p.m. – City Council Meeting July 6, 2022, 6:30 p.m. – Parks & Recreation Committee meeting CENTERVILLE CARES Last year President Biden signed into lawJuneteenth National Independence Day Act, S. 475,creating a federal holiday to commemorate Juneteenth. This is the first federal holiday approved since Martin Luther King Jr. Day in 1983. June 19, 2021 marks the 156th anniversary of the last African American slaves being freed in Texas. On June 19, 1865, federal troops arrived in Galveston, Texas to take control of the state and ensure that all enslaved people be freed. This, however was two and a half years after the Emancipation Proclamation went into effect January, 1863. This day, the oldest known celebration commemorating the end of slavery in the United States, has become a day for African Americans to celebrate not only their freedom, but their history, culture and achievements. Click on the following link to read President Biden’s Proclamation: https://www.whitehouse.gov/briefing-room/presidential- actions/2021/06/18/a-proclamation-on-juneteenth-day-of-observance-2021/ ECONOMIC DEVELOPMENT Economic Development Board (EDA) Upcoming Vacancy The Centerville Economic Development Authority (EDA) is looking for interested citizens to serve on the EDA board. Members of the EDA play an integral role in the community by providing assistance to local businesses and prospective businesses, thereby encouraging investment in the community. If you are interested in serving on the EDA board, please contact the city at 651-429-3232 to learn more! Eligible candidates must either reside in Centerville, or own a business within the city’s boundaries. Ribbon Cutting – Centerville Storage The city and Quad Area Chamber have been working together to organize a grand opening for Centerville Self th Storage. Ribbon Cutting will take place at 6965 20 th Avenue in Centerville on June 7 at noon. Welcome Centerville Storage! We are glad that you chose to make Centerville your home. Quad Area Chamber of Commerce Quad Area Chamber Lunch & Learn Speed Networking – June 15 Business Expos o Centerville Fete des Lacs – July 12-17 o Lino Lakes Blue Heron Days – August 18, 19, 20 o Lexington Fall Fest – September Click on the link below for more information: https://www.quadareachamber.org/qacc-calendar749d6a73 COMMUNITY DEVELOPMENT Project Map Staff has prepared a map of all active developments to help everyone get a better picture of what’s happening around our community. The number you see at the heading of each item in this section corresponds to a number on the map, which is attached to the end of this report. (9) Block 7 Property (Downtown) – “Sorel Quarter” An application for final plat has been received. As the developer and city staff continue work on a developer’s agreement, we anticipate the council being able to consider approval of everything at its second meeting in June. A major reason for the long road to a development agreement has been the issues surrounding the CDBG funds and the stipulations regarding affordable units on the site. While the county has been cooperative, the issues are complex and involve multiple layers of approval on their end. We wanted the Council and community to understand that it is not the developer holding things up at this point. Centerville Elementary School Expansion School staff and consultants were able to find a work-around to solve some supply chain issues. The work in the building is nearing completion and should receive their certificate of occupancy soon. stnd (3)(4) Old Mill Estates 1 and 2 Additions The developer is looking to finalize his punch list by June 10. Once this is done, the city can release their letter of credit. City staff and the homeowner adjacent to the trail on Old Mill Court have been exploring an alternative to the boardwalk concept. In short, we would be moving a retaining wall, without encroaching on the wetland. The wall can move about 4 to 5 feet, which is looking like a more financially feasible option at this point and one that both the city and homeowner can be happy with. th (16) Centerville Storage (20Ave. Mini Storage) A Grand Opening will be held on June 7, from Noon to 1 PM. Come check it out! (1) Bay View Villas (Waterworks Site) Correspondence has been sent to the developer regarding final punch list items. We are awaiting a response. (8) Atlas Villas Memory Care Project (1825 Main Street) Work inside the building is nearly complete. The owner is now hiring staff and working towards licensure. A new estimated opening date is August 1, 2022. The owners have requested a one-year extension to the Interim Use Permit to allow for the delays caused by supply chain issues and construction cost volatility. (10-14) Rehbein Commercial st Sidewalk work along 21 Avenue has been completed with irrigation restoration and boulevard sodding to follow. The city and Rice Creek Watershed have been following up with the developer on erosion control issues. The developer has been responsive and restored their perimeter controls and removed sediment from the creek. (13) Kwik Trip Staff has been working with Kwik Trip’s staff to get securities and other agreements in place. The owner has communicated that construction could begin by mid-summer, 2022. Recently, the site’s engineer finalized plans for the right turn lane to be constructed on Main Street on the south side of the store and obtained signatures from both the City and County thst Engineers. With this work, the sidewalk from 20 to 21 Avenues on the north side of Main st Street and up 21 Avenue from Main Street to Michaud Way will be constructed. (11) Norbella Senior Living Work on the interior of the building continues, including HVAC, plumbing and electrical. A September opening is still the target. (2) Peterson Shores The plat has now been recorded and the newly created lot is on the market. (17, 19) Rehbein Industrial Paving of the base course of asphalt should take place this week. (19) Sutton Transport The buildings walls have been erected and work on the site utilities continues. (15) 2050/2070 Main Street – American Roofing Supply Work on the site is in full swing, while work on the building renovations continues, inside. American Roofing Supply’s management team reached out to the city and have stepped up to be a sponsor of our city festival. They are eager to become a part of our community. (18) Max Storage (Fairview Street) Revised plans were submitted for recording with the Conditional Use Permit. We anticipate an application for building permit and site work in the near future. (17) Amazon Fulfillment Center At their May 25 meeting, the city council approved the plat, a developer’s agreement and plans for Amazon’s 140,000 sf warehouse and fulfillment center. Construction is anticipated to begin in July of 2022 and should wrap up in the fall of 2023. City engineering staff will be working with County and Lino Lakes engineers to begin prioritizing the use of transportation related funds from the development. A first step th will be to complete a corridor study of the 20 Avenue (CSAH 54) route from Main Street to Birch Street. This study will help guide intersection improvements to enhance safety and ensure traffic flows freely. Development Inquiries Restaurant owners looking at City-owned 1737 Main Street Bar/Restaurant owners looking to assemble property in downtown CODE ENFORCEMENT General Grass mowing COMMUNITY ENGAGEMENT Web Site Reader Board Administrator’s Report uploaded Meeting Schedules Committee Agendas/Packets uploaded Community Events Community Email List Social Media Administrator’s Report Meeting Agendas Meeting Agenda Public Hearings SEWER AND WATER Commercial Water Connection Fee Assistance As part of the city’s ongoing effort to help businesses through the pandemic, a new program was introduced, cutting connection fees for city water in half, for commercial properties. If you own a commercial property in Centerville that is not currently hooked to city water, and are interested in learning more, please call City Hall. The program is offered for a limited time only and is subject to conditions. Wellhead Protection Plan The Minnesota Department of Health held a kick-off meeting with city staff and consultants for the implementation of the city’s Part-2 Wellhead Protection Plan. The group reviewed items in the documents and the timelines associated with various activities. Staff will be following up on the action items over the course of the next few months.