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Home My WebLink About2022 08-08 CC PACKETCITY OFGEM LAKE Heritage Hall 4200 Otter take Road j Gem -take, MN 55110 ~ 6S.1.-747-2790/92 j 651-747-2795 (fax) E-mail.city@gemlakemn.org. City Council Workshop -- August 8, 2022 Call to -Order Of City Council Workshop BY Mayor Artig-Swomiey at 7: p.m. Call of Roll Artig-Swomley. Cacioppb Hynes-Am1ee. 7ohns6n Lindner Others. in Attendance: Sign-up-SheetAgenda 6. Accept the Agenda for. the. August 8; 2022 City Council Workshop New Business • Discussion. and Development .of Agendaby. the City. Council for the September Water Summit Future Council Meetings • Next City Council Meeting; Tuesday; august 16, 2022 Next City Council. Workshop, Monday, September .12, 2022 — Water Summit Adjournment —The meeting adjourned at I CITY OF GEM LAKE Heritage Hall 4200 Otter Lake. Road I Gem Lake, MN .55110* 651-747-2790 /92 16-51-747-2795 (fax} E-mailzityQ emlakemn.org Gem. Lake:City -Couiacil Wokkihop August 9, 2022 Sign in. Sheet Name I S/25/2022 Discussion. Topics • Street.and Utility infraslruclure Needs • Street.and Utility Design t_ife. •. P.Foject Costs •. Potential Water System Needs • Project Funding • Project Development • Next Steps Al S E H xi!•pi °t:r. iri:`r uyii Street and Utility Infrastructure Needs • Streets — Pavement Gondi6bn Ni :no! cr..;,ks, Ai;:ga:cr ur Dlnd: txacki>,j • pot hnteS • l0ss orpaverntsd • Utilities — City Owned Utilities fcoOedfen I Js;ribUtion) • Wa i,;r M.--5.n Sar:,t:3'y S(--:er Stwm S kp.r • This presentation focuses on cdlleclion f distribution SEH ltripiirxhr(H:!tY 1 8/25/2022 Street.and QVI ity Infrastructure Needs Water Mailli Infrastrudure Needs view systems - Vlarac o)w; nr=_;r"a '), LICK of 5wsteffi. Dead End Mains Ic, • Sanitary Sizwer Infrastructure Needs Aging piping systems • (.",a -, SEH Street and Utility .infrastructure Needs -.Storm Sewc-r - Siff:' finodmg 1 poor drainage Mora, • Catch ba . i r, F io ra I n .;) toq smelt or I C.0 fe, rr - Agmg pipe and manholelc'Ach basin system • P alp,)li al. fo r o-,f apse of pipes : r s(rvi;(w u. SIEH Street and Utility Design Life MnDOT defines pavement life cycle as 40-50 years - Crack f?il annually -.Seal coat ever,,., 4^-'l yiars 20 yeairs. Pavemenk n-,aintenance is on -going cturing ofe cycle Utility piping systems design life Water r4ain and sanitary Sewer - VVC 5. 1 CIO Stnrni Sewer 2 8/25/2022 Project Costs • Estimated :cost per block (300LF): -Crack Fill ; Seal Coat - 55.00.0 Mill. Uriderseal & 2" Overlay - S45.000 Reclaim and 4 Civerlgy - $1.00,000 Consider Undergrourid .Utility Condition Prior•Id. StreFt Rehabililation - Utilities should be addressed prior to.investing in new Pavement -..Adding new water & sewer for example - Complete Street Reccns;ructloa ($tFeet and. UlAtieS) - S350,000'per bloc, 30OLF) •Gem Lake Rcjn=235r•.ntes=12,4101F= ".a �M Will Potential Water System Needs • Existing Cariditions -Majority of residents CHI private v:el; --Recent h•11'CAand ME)H sampling !Or 1.4-dlcxane. a likely humari carcinogen, found le:e!s above the 1,10H heatih-teased guidance value in sorne private wells, Municipal "'Water Supply Feasibifiiy Study update corripleb:d to evaGaate potential options for providing safe and reliable drinking water to residents SEH Potential Wit ter System Needs • Municipal Water Supply Feasibility Study evaluated the rollowing options: -Acentral,zed Water distribution.system 4erving the entirety of G-ero LaF,e with :eater supplied solely from one of the neighboring Community vd ter systems. - Options for srnaller. ;ocal,zed vaater supp;Y projects thal could be phasod to provide neater service to portions of the Cit;v ;a• th known well water.quahty Concerns 5(H pwi r3:szrivac:Y 3 8/25/2022 Potential Water System Needs • Centralized water Oislribul on. systein.options ra C•in•.vt•n ..'M.Ge4. �ir.Ira.ril of Grm la.e.t<• .Sl4Ctue. fa[�Cerv,•n[n uau[J.:a�..lnnmi..,um, :e�tJbid D•�rwtv�MnM.4+nrbr � hN+Jmt u..rM1 [lcun wr . 514RS.tH:��. .... u•4vcMnbn hm•, n� ni.iiaoluu[a.nl • Nn .tlr.lrurl�ba-•bcrn wr ' �1�:liercafeleppw Uw. FnbmM1i+wiwnnarnrotlbr 4lft m[a,tFv4Clfi�lYiYo+Wliu4�n evi�tW: .-•'w u I Yr•1..M,c.•SJiGw2mir.M,iQ.IMtMI•e,e13Y [unpWeeW[nl �t'•C Wtta .. .. ... Potential Water System Needs • Localized water supply oplions 4lonry u.nl Y.�4r h� 0[im1 r to b{r•r�.[o�iv.ri [ev wr -- IIM 1,... Monty tt.x?h•Kr Nl rnt!n1 . . r.rwu ur .nnmeCMult�nir' SLrILIm .} *[+ubtMMnFtr t.r w. {11,.mw'w1''av .. ene,�M1:•�.ILI.+r4rt G[.m. . t�M1M'r:!-t� fLur.b,a MmryurPl hn�e /n.�iYtml'::!:Y :rruiw.i at w,n UM1N•r.uvY fM1,Oa .::; i,7 t it,r•Sst.,v.. r.. o-io;i �` I..,w•t.:n�.,mt-+. cn;e vmin•'. j,.i.i:l �M'l>+u.M�r hu .w•:."uawh %.��I (i{ ^Lnnua[w•.,>7 Cain kr�G,� 1,:+'n n MUNSf4.[[uu e+Mu'eJ�,RMm mu^.rMan.aptan! ,r.n [r. rn w • sN o� � t-.. � adwaM iw m Isi.�p.i. a.�1w..{.,.mK,-.� �:;::: ^::;': �;: lit' C++•Iain tun Mler•rte Mri Lar./, :.,,.:} b.n MT.tr RM.:;..::::::::.;:;:::.; �:.::::�::::�:: �.�: :..... .. , 4 8/25/2012 Potential Funding Resources • General Obligation Bonds. - General Tax Levy - Special Assessrrrertts - Revenue Funds..(funds from utility rates) • Public Facilities Authority -Typically Ic-ri;nleresl loans over2p year term Term can be exlended 8+rid pOtentiat for graril funds if average per household oostexceeds.1.2% of MHl Potential Grant Funding Resources • .Slate Bond Funds Request bond funds for 50of protect cast - R.equest can be made In June of 2023 W consideration in *2024 Irgislatrie session Congressionally Directed Spending — Request funds for 501•c of project cost -Anticipated trineframe for applicat!on +s spring 2023 Project Development • Ideritify Project NeOs - Pavement Condition lnvantory - Utility Condition Inventory (pipsng systems) .. Doncrm�ren!r;;..si • [r�itie Le 14S'�CS i5lrnn ;: ;;!; •' Aged u: dere,•r•ra`ed d[c❑ 1:1 al' sivoin •.Address Underground. Utilities as a Fart of Street Reconstruction Al SE". :a o+h�rq!Iua:aY S 8/25/2022 Next Steps • Pavement and Utility Condition Inventory Done - WST • Preliminary Engineer's Repoli r'S�s ..;`;:';'-";at::l,;:f;n;r.;c:,, sAvh:.!`'k.Ln::t ,e;{•S>;m.,i" .';?;t;`�� .f,i �'.�:: <?y�rX=S'r,; ��r,•.zr�<''y.,.J,Sn�� vN�,r7.f}i'�na.��%c" ��;LKvsi.j� +�q:� � '� "5;:..re:-Ser.�7,hy'al}fy`�•.:..Jca_'<' ti;•r_•?XSj}g;`•^' c?: %��Ge ?' �: ti.fi�;lr*��'- ' , •r ....,t: e•4,,��(=.�,s - r'' %�.,t:.� f�'=r..: :;}.e+:h{$;,cc:•c,.w.2,xf'•i"';)7'r .4{•r;!, y, la �;Y>11a'e? <ya,"`•aS�or'�a'• - -.`1 �.'>ti i^"`•i1,r• :i?�1•�.✓jl�:tiyi,4:.: G��:✓fy7-7�.,,.,t.�h�`F:+%�%•,g'+'�dC • :tip �;. r,;r ;rc;�?q r, :^rCy ^?1 aft, L•��s;.7' arse: *'rif`' �F v'i aYi;�jF;q°,°,{'r'"�� 6 aa�^�};,�.•;�,, Fs ;.n?s ;:;.w.; ,?.I.s;,�?i�'';'c;.nn'^' ,.?}w,_?1'��.�LLft ;�r{'cn�'�3Mx}.� :�,.S;,K��,yJ•, ,.t•• n?: 5��._:��=:;:ahf_�':�;i'r'_-�.'�•Jl}t;u`i �h.��.�;1'P'$>?.�"�y;�}cy1�.}:a�h.�:�;Yi?sa�:J'�a3rt�. _ _—=''�i;:-i21�"��y�P;��v'F,'r;4_f�K:i�".�:.�,�,�':2`K,f.=f=�`•��y'�:,•�':,�',�if�:�}��?;u �3�� ., R�±: 5• v'�w p.iar��;s.._vss�r?� 5."''na`;'^••,.`r,��:�;s;L_.rss�r?�''�:"'r•.,i:�^••r;,,r i �y`�-- ''"",:pie:: :rA .,(�5;: ,.;i's - �k;";:�:fs'�Fs a�1i�;;s „`i°<,v:";�•Ixl�S a�si c�`' „-E's4�i;4,cF :'-t:',r : t � l�M:.•.r� :'�3'�, "'.•tug.: . _ ,`_i`!'i:V'ti•�%'-'.i b;: .r':��>✓i!'n:Via`^�'- �ke r'�^J'•`�J'r✓�i-'\Y•^:-',� 4.�%?ie?v'`Fr� �"ice _ c�,_ ..`S.S -ci.- '�`'x'•• �fpr: •'5'::,:. �2i�v �. n4 ,A!Jll I A CITY OF GEM LAKE Heritage Hall 42.00 Otter LakeRoad- j Gem Lake, MN 55110 65.1-747-2790192- j 6:5.] �747-2795 &mall ai0*n@&gmlakeinti.org City Council &N-tectimg —.August 16, 20i2 Call to Order of City Council itiecting By Mayor Artig-Swoinicy at 7: p.m. .Call4.110l1 Artig-Swotmey CacioppU Hynes-Amlcc Johnson LiuJu�r Otleers in a lttendancergign-up Sheet Agenda • Accept the Agenda for the Augirst.l.G, 2022 City Council Mccting • Approve. the Minutes Gom.luly.19.2022 City .Council Meeting • Approve the Minutes fiom.August 81•2022 City Council Workshop Committee. Reports 6 Planning Commission. Old Business a NeHSletter Ideas . NOW Busluess Prenntation 00022 Gem Ldko.Audit ip Gem Lake Infrastructure. Issues o Well amd.Mmieipal Water.tlpdate o Gem .Lake Trail Update o Recycling. Hau ter Transition o Possible.Sprinkler System for Heritage Hall & WBT Recommendation • Internal Management o Sollware Package for Permits o Scanning Software o Election Logistics.F'ollow-up. • Interim Ordinance To. 139 for Sale and Distribution of CBD and Cannabis in Gem Lake. • Summary of Proposed Amendments to Animal: Ordinance s Charitable Ganibling.Donations . o Resolution il2022=0017 August 2022 Donation to White Bcar Lake Area: Food She If o Resolution 92022-001a August 2022 Donation to Willow Lane Elementary o Willow Lame Elementary School Supplies Status Report • Community Outreach to Other Cities and Government Bodies o Letter to City of Vsdn:IN I•ieights o Met Council — Purple Line o Ramsey County Emergency Management Conference • Claims • Monthly Financial Reports • Quarterly Financial.Report(2"d) •. Presentations from the -Public, 2.tuinutes'maximum • .Open Rents:for Council Members to. Bring Up Future Council Meetings • Next City Council Meeting, 'I.'uesday, September 20, 2022 • Next.City Council Workshop, Monday, September 12, 2022.— Water Summit �' Adjournment The meeting adjourned At I CITY OF .GEM LADE HerhoLgo, Hall 4200 Otter Lake Road I Gem Lake, MN 55.110 651-747 2790/92155'1-7.47 2795 (fax) E-mail oitv(c�,�er�ilaktmn:o�g a� �f/�l✓% L10 1 �` Gem Lake City CoundtMeeting August 16, 2022 Sign in Sheet Name I l City of GemI.,ake City -Council Meeting— JUly) %. �02Z Meeting Minutes Mayor .Gretchen Artig-Swomley called the meeting. to order at 7:00.p.nt. Couricilmembers Len Cacioppo,'Latirel Amlee, Ben Johnson and Jim Lindner were present..Also present: City Attorney Patrick Kelly, Acting -City Clerk Melissa.Lawrence, Ramsey County Emergency Manager Judson Fried,. Planning Corn .mission Chair Dion Cummings, and residents Jim Wilson, Sharon Roland and Paul lrmeott. June 21, 2022 Agenda Prior to accepting the agenda,: Mayor Ariig-Swornley proposed an additionto the agenda to havee-a brief discussion on the sale of THC. This discussion will be added to the agenda after the Corridor discussion. Couricilmember Lindner introduced a motion to approve the.:addition, seconded by Councilmember Cacioppo. Voice vote.taken,.all voted yes,. motion passes, addition has been .approved. A. motion was. introduced by Councilmember Linderto accept the agenda, seconded by Gouneilmember*Cacioppo. Voice vote taken; all voted yes, motion passes, agenda accepted. Minutes A'motion was introduced by Councilmember I,iitdnec, seconded by Councilmember Cacioppo to approve the June 21,.2022; City Council Meeting-Miautes�. Voice vote'talcen, all voted yes, motion passes, minutes approved. Committee Reports — Planning Commission There was no Planning Commission meeting held: in July.74o projects. have been proposed, and two public hearings are scheduled for the August 1.0, 2022 .meeting as (ong:as the.ppplications. are deemed complete 6y the City Planner: Old Business Mayor Artig-Swomley presented ideas for the next edition of the.City Newsletter to include`pieces such as a water summit review, and a review on the ernergencyinanageinent. services. New Business Ramsey County Emergency Management — Director of Emergency Management Sudspn Freed Mr. Freed has been the direetor.for 20 years, This -department is funded by. federal government7rienay. The department does risk assessments for cities within the 'County. ; and then plans accordingly. The Emctgeney Manapment team analyzes threats and hazards throughout the County.and decides how to lessen the inipaet:of emergettcies. The County plan is currently being rewrifthand.will incbrpoi tte Gent Lakes plan intp it: Councilmember Lindner asked.how often the emergency. management plan fora City should. be updated. Mr. Freed. said that .it should be looked at formally:eve.ry. year. When putting contacts into the plan it should list titles and not names, because employees can change. Every four (4) years is when it should be rewritten, and it should. be someone different that rewrites it so that it. gets.a.different perspective. Gem .Lake Infrastructure Issues Air Conditioning at Heritage Hall The. air.conditioning. at Heritage Hall for the main office has been fixed.. This will be. a shared expense with the Township. Well and.Municipal Water Update There is ongoing testing with nothing new to report. Workshop in September. The MPCA has been invited to the.Watbt Summit City df Gern Lake City -Council Meeting Minutes July 19 2b22 t I P a ;. e Gem LnkeTrail Update The Mayor has-been meeting with Kim Uzpen and have been brainstormingways to spend the park funds money. It has. -been recomtriended that the area is not reseeded until next year..A second betich-will be added to the trail in honor -of the first Mayor of Gem Lake, Henry HofFtnan. Recycling Hauler Proposals The.City received two proposals; one from.Republic Services and the other from the current recycling.. :hauler Waste Management. After review of each,proposal the Council was interested to.pursue Republic .Services further. Councilmember Lindner intrdduced a motion th allowa contract-to.lie evaluated by:the,City Attorney for. Republit; Services, seconded by Councilmember CWoppo. Voice'vote taken, all voted yes, motion passes, a contract will .be drawn up and reviewed: Possible Sprinkler System for Heritage. Hall The City received a proposal from Albrecht Company for an irrigation system at Heritage Hill. The proposal included two (2) options, Base Bid and an Alternate Bid + Base Bid. Th6l3ase Bid.com6s to it tbtal-of $5,341 and the Alternate Bid comes to a total of S4,.981. Option one. (1).Would cost $5,341. and *option two (2) would..cost i 10,322. This would be. a shared expense with White.. Bear Township•and would .need -to, go. through a board meeting for approval.:. Councilmember Lindner introduced a motio.n'to recommend option two (2) to White Bear Township for .approval of the shared expense, seconded by Councilmember Johnson. Voice vote taken.:four (4) voted yes and Councilmember Lindner voted no, iriotion passes, find .the proposal will be sent to White Beat Township for review; Public. Works Request Sof fare Prograin. for Gem Lake The Township's current Report a Concern module within Civ cPlus w.ebsite sofiware:has become antiquated and is no longer -updated. / supported by CivicPhis..In addition, the current solution does not enable the Township to -add a category of requests specific.to Gem Lake. CivicPlus has a newsolution called SeeClickFix. SeeClickFix is a full service citizen relationship management (CRM) solution that meets contactless expectations by enablitig�pitizens and staff to communicatexemotely and safely. SeeClickFix-Request. total investment fortlie lst yedris:$G;156.99,-which would .be shared:hetween the, two. municipalities. Gem Lake's portion would lie $3,078.50. Annual reourring eosts would. be $8,610.19 with -Gem Lake'svortion .being $.4,309.90. White gear *township is recommending the Gem Lake City Counc .I approve the.SeeC.lickfix cost share as .both technology and -citizen expectations evolve the Town must increasingly rely on: comprehensivecitizen request management (CRM) software that includeonline portals and mobile applications for our dtizetts-to place their requests. Councilmember Lindner introduced a motion to approve-theArst (1.1) year's amount of$3,078.50, followed by the second (2"0) year's and on amount of $4,2lO-9.90., seconded by Councilmember Cacioppo. Voice vote. taken, all voted.yes, motion passes, City Clerk will pass along the vote, approval to White. Bear Township. internal Management The Facebook page has proven to be helpfuI--as:ati additional forth of communication in gettirig information b%-.to the City of Gem .Lake residents: Proposed Amendment to Liquor Ordbtanee Ex talblishfng Maximum On-Sale/Off-Sale: License Ayaflabilfty There were some slight amendmenis made to -the Liquor Ordinance No. $ for Intoxicating Liquor. Section �,:Subd. � had a change of 1.4% to 24% alcohol by volume for consumption with -the sale of food based on -the State Statute. Section 3 got an addition of Subd. 4 which states the amount of licenses that will be issued within the City. Section 4, Subd. 3 was:remaved' bittnpitrg-Subd. 4 to be the new Subd. 3. There will be -a limit of four (4) on -sale licenses and two (2):ofi-sale Iicenses*aVaflable. r. City of Gcin L*.City Council Mceting Minutes Jnly 19,.2022 2 1 P � go Couticilnletnber Lindner iritrodiiced a motion to approve the amendments to the Intoxicating Liquor Ordinance:No. 9, seconded by Councilmember Cacioppo. Voice vote taken, all voted yes, motion passes, Ordinance No. 9 has been amended. Corridor Project Opdate-$en Johnson Councilmember,lohnsorr dNcussed the Memorandum of Understanding. This Memorandum ofUnderstanding (this "MOU") is entered info by and between the: City of White Bear Lake,.a Minnesota municipal corporation, herein after referred to-as:."WBI: ; and The City of Gem Lake, a.Minnesota municipal corporation, herein referred to.as "GL`". This MOU•shail remain in effect until January 1, 2023 or terminated before January 1,2023 if the -reimbursement amount is paid and the Project is complete. This Memorandum of.Understanding may be amended at 8riy time, upon written: agreenlellt ekecuted by the signatories below or their successors in oiiicC. Councilmember Johnson.would like to use Heritage: Hall on Wednesday October 511 to hold a.block exercise.: hosted .bythe.Corridor Management team. Mayor.Artig-Swomley asked Councilmember Johnson to email the.City Clerk to verifj+.thatthe date- would be available. Mayor Artig-Swomley signed the Memorandumand Councilmember Johnson will get the signed copy to the correct person and send a c6py to the Gem Lake City Clerk. Sale of THC.ivitttin the City Mayor Artig-Swomley would like to request a. moratorium on the sale of edible THC. within the. City -while the City works..on ppttlitg togetheF.." Ordinance. Mayor Artig-Swomley has requested the help of the. City Attomey to locate a moratorium on this -issue in other cities to.presentat next month's meeting. This issue will be discussed at more, length of the August City:Cout eil nieetiq.. Charitable Gambling Donations - Resolution #2022.00.16..July 2022. Donations to White Sear Lake Area Food Shelf The motion far adoption of the foregoing Resolution was. introduced by Councilmember Lindner and seconded*by:Coupciimerhber. Cacioppo, and:upon vote>being taken thereon, the Resolution passed with a votetof5 in favor and 0 against; Suggested August 2023 Dona tion.to Willow Lane Elementary Last year the City Went. to Walmait and picked up $500.00 worth of school supplies for the school based on a list sent to the City Clerk. This was a.donation that the: City.'enjoyied and wanted to repeat for the 2022: 20.23 school year. The City. Clerk requested anew list:�or this year and .Mayor Artig-Swomley suggested:that due. to inflation, the Council should allow up to S I000.00 to:be spent on school supplies.this. year. Councilmember Lindner introduced ri motion to approvea.total of up to Sl000:00.in school supplies for Willow Lane Elementarv; seconded by Councilmember Cacioppo. Voice vote taker, -aft voted.yes, motion passes, the City Clerk and Mayor .are *allowed to spend up to s.1000.00 on school supplies for Willlow Lane. Community Outreach to Other Cities and -Government Bodies Gem Lake City Clerk has been th:contaet with the Ramsey County Election because:of the upcoming election on August. 9, 2022. Mayor.Artig=Swomley, shared an article on the Purple Line that discusses.the drop of downtown White Clear Lake ,arid the consideration ofa•stop-at Century College. Claims Councilmember Lindner. made.a motion to pay the:bills,:seconded by Councilmember Cacioppo Voice Vote taken,. all`votedyes, motion passes, and bills will be paid. City of im't ke City Council Meeting Minutes July 19, 2022 3 .l P a ;z e Monthly Maacial Reports The financials for May and June were: submitted..and the Council. had fiwcoinmmn Qparterly Financial.Report The 1" Quartcr 2022 financial report was submitted and the Council had. no comment. Presentatlons from the-publict2 minutes maximum Residents iri attendance had nor comnients-oir queitions. Open. Items for Council Members: to. Bring Up Mayor Artig-Swomley reminded the Council of the MS4 hearing in September. Couneilinomber.Lindner will reach out to. (lie Ramsey County i'ublic XIorlcs and invite. them to.join .the October. City Council meeting - Future Council. Meetings City.Council, Tuesday August 16,2022, Workshop, Monday August 8, 2022 to plan for the Water Summit in September. Adiournment Being: there no further business, following a.motion fram.Councilmetnber Lindner, seconded byCouncilmember Cacioppo, the meeting adjourned at 8:53 p.m.. Resnec f dly submitted, Melissa Lcnw-once City of Gem Lake:City Council.Meeting Minut6 July t 9, 2022. 41 P A.g e City of Gem Lake. City Workshop.— August 8, 2022 Meeting Minutes. Mayor Artig. Swomley called the Workshop to order at 7:05 purl. Councilmembers Lindner and: Johnson were present. Coultcillriembrs Cacioppo and Alrilee were not present. Also present; City Altorriey stand- in Kevin Beck, City Enaineer.Justin Gese, Community Development Specialist Kristin Prososki, Senior Water Engineer Richard Parr and, resident Rick Bosak. New Busieiess Discussion mid Development of Agenda by the City Council for the September Winter Summit CityEngineer Justin Gese, Senior Water Engineer Richard Parr and Community Development Specialist. Kristin Prososki gave a presentation on the infrsstructure and funding. options available for a municipal water system project in Gem Lake. Areas of discussion included: Street and Utility Infrastructure Needs • Street and Utility Design Life. • Project Costs • Potential Water System Needs • Project Funding Project Development Next Steps The presentation helped the Gougcil.get a better. understanding of -what would need. to .Happen in order to conduct this project.. Financing options are available to apply for if the City decides to. go ahead witlrthe project, but the funding is not a guarantee and N-a very lengthy process that could take'a eouple years. Also discussed was how the Council -would detail :the steps involved.itt a projectlike this to.the public. Future Council Meetines/Workshop City Council, Tuesday, August 16, 2022, Workshop, Monday, September 12,*2022. Adjournment Being there no further business, following a motion froni*Councilmember Lindhbrthd meet'ilig adjourned at 8M p.m. Respectfully submitted, Melissa Lawrence Cif j 61'GFat. Fake City Council Wotkshop.Minutes Aqust8, 2022 11 P a.g 0 M • KR. City. of Gem: -.Lake, - Audit Report Year $acted Pecember-31, #21 Malloy; Montague, Kalilowski,. Radosevich, & Co., P.i�4. Jl m6s H: Eichten,.CPA f �.1• • KR Auditor's Role 'oce•r�pzk �w rep m x• a r � : O O.pililoWon.Fitnancial Statements Financial Statenienis are FairlyPresented.in 1lccordance with U.S. GAAP 0T6tingof Internal Controls and Compliance = Interpal C.otitrols over Financial Reporting — 61hplikice with lams and Regulations related - to. Financial Reporting — Mipnesoia Legal Compliance o No'$ingie Audit of Fedora! Asti ands fvr 2021 + y t (RManagement 1keporf. rt6}onir6 4TFri . 0Aadit Siyinmary -•Planned "jy*•andtiming •—Adldh Clotnibnieand.Findjop 1 MMKR Audi . t * i qns mia Flricllijvji OReportable Ite ..nis: segregation-Of.Dutks. Finiiitigs gt P. tyme#t of I nyoices Wrillin-Su I u .pporttorblsb rsements MMKR.... Aud Ppjnig.ns w7 !v r A 07,6110,� u 'gin .Prior Yeal .Elndiags -Annafti-06fegition for Fvni$lrsqsfirk '-Declaration on iiinesheets Undaimed * R.t.opefty.:R6porting MMKR... :Nhan ag6niiiit Ae L.pr —jpkilled Sco6c. And',TWIR gi �Audit O.Pinlonslan(HrIvidings 6 Verify Proper R%.Ar ,d;eikftrm 9il R 2* MMKR.. MRajeftient Report: ..0. AuditSurnmary... .—Plann-ed Scone And Timing U di ROPIRILORS80dTindings Other Observations and Aecommmdations O.Property Taxes MMKR T., ', I % L'A'! 1 " ' c? i;;, Mit 2619 1012d MI Tax Rates C., J0.s dF3 361.3 W 523- 477 Sp —A 1-.g c..U.i- ---- CUL 6.6 --7b0- T-1 _L*_170 _IL7.L J�J1 KR folvnmeotllfundsftnenut per Capita 11 YY 11 Kt1ilASlau•11ide.1,ait's byropulsfimoam Sta,edV ide 0, of Cm Like 1'eu •. 2019 211211 2019 2010 70V Popul75 ro 2.cU0-2 sun : �n0 _iD6 467 rryprrlt Ism sa s 576 �' 95' s I.0 5 s 1,013 Tat increments 35 29 - - - FOnc6iseand olWtlSf• 16 26 - 16 Sprtiilsummmts: _ 66 50 .264 222 :03 Limus and permits 30 21 •• 20, 8. 51 Intup rrnnitntal rn enure. 311 $31 36 19. 92 . Charges hu eenices 143 10 37 7 ! Olher UO 117 .. 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S (121,6711) S . 7U,845 '5 '263,187 6 '(9rj42] I36336 119.143 C993 %.:I0 d3.619 1yp11 3ll.NL� JS2,IMIJ M u.2% Ji."nJ •(IJI.1 3JIIB S W3."6 Syu.66 S � General Fund financial Pusilion liar Entkd Decendrr31, SHOW 520PDOP --- S 160A00 ILL — S- :31? 2018 20E9 4fL0 2C2I r FuoJ 911, me S329.I41 S394M5 5495-167 5263.1F S2:3A45 ©Cufi1\'et) S358,163 544,1n 151410 SNJy9E 1313no — E11enJlmra S36030a WIA39 Sr6A33 .SAW E S514334 7 u ct�r;[�,�d Es EtrrStmrs in F1pKtno .kar ErJeJ flerrWur3f, y1 D}pIJ • SI: Poo SILAII JltnpEl i: ;;—__..-- � S70.1n1 - �r f- Gmml Y, Cm. met Po1JIr SL!) PoHie P'nru 411 (+kr I fplel' 511vyp� 11tf2 t< S1n,731 � � S1.1,111 _sfn,IVl_ SULI;1 Pt91J I 511i}7E sup ,S IA6117.,_T. � _ 14i,4:0 tlsNt 51E}Ind 5111 , 5,7,9J= . E31.111 �y $U9SIvM^,•,� _7 K R 1Vla."gemcut'ReOrk •err .mt{r � • O.Audif Summary , . *Prop,e .. I'a�e O•�'ovecnineata! •�'ar�ds Overvi�i!• • • • 4 iIQ# it-y hounds -Overview , !\ /.{ M K R Fnlerprfx Fumb Own in Fmncirt Pavilion !! \\a1r\\t. it NO P,�31iao- as of D—ber 71; _ 101 7070 'OrJnn Srt pmltlonafenlrryrl5e fuel 7alilh7JJJssifialirm . �rtimnlmtntln npifal adrU 1 I462271 S. 1.391,W S (29435} inleshirird ••JJd:411 375.701 IJ.J3J1. 7alal mtv,p6,t(.4,. : t f' I.:C®.903 S t.71J.11a7 S 15•t0.51 Tout br Find }suer ' S ti0J,J50 S fiOi,E,l2 S •(fi�) . . finer ,' 1.10!,JS� :• :�..61 na,31i_ .K:SI Tout mlerprlsr funds 1.7oF,90]. .51.71J,W7 I RI Seer Fund Near F.ndcd Dccembcr 31, s�s,unu I 571Jrpu6 -- slu,lw¢ sPa,wwj — 5(S1•ue¢j 2017 MIN 1019 20M 2031 �Dprr R" SKI-W 365,4Ze 5G1,9i3 SSSYU l�Dr-Exry SS{.9Z7 54,olG Sm.'903 .14.lm. —Inr OebrtUrp SIJ,MU M543J.'IJ11) SSS,A%•/ S19347 $1?•797 51,'13 Sx 912 SI0a S1;?ZI Management Report L LLIiFIl. fi •LSf iS •o Audit8ummary' . GProperty Taxes •.OGovernmentaI Funds Overview OUtility Funds Overview AfArcounting and Auditing Opdates' •OLegislative Updates. 7 MMKR <. OClcam.0pinion on.Fina.nciafStatements Oonc Reportable Item : . OT)►•P r.ixidings. Ovoil.niv;up,.on: Mor.Ycar. Paoitlings ODecrcascil Goy* rpj ientAl Fund .FiepoclAl Position oSta�fe•Ngf Pt�sllianiii; WateX'sti� Sewezi Funds E:j -CITY -OF GEM LAKE RAMSEY COUNTY MINF� . 1 A Financial Statements and Supplemental I nfonnation Year Ended I?ecember 31, 2021 T14IS-PAGE. INTENTIONALLY LEFT BLANK CITY OF GEM LAKE RAMSEY COUNTY,MINNESOTA Table of Contents INTRODUCTORY SECTION Page CITY COUNCIL AND QTHER OFFICIALS 1 FINANCIAL '-SECTION iNDEl3ENDENT AUDITOR'S REPORT 2-4 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements Statement of Net Position 5 Statement of Activities. 6-7 Fund.Finaneial Statements Governmental Funds Balance Sheet 8-9 Reconciliation of the. Balance Sheet to the Statement. of Net Position 14 Statement of Revenue, Expenditures, and Changes in Fund Balances 1 1-1 . Reconciliation of the.Statement of Revenue, Expenditures, and .Changes .in Fund Balanc�.to the Statement ofActivitie& Statement -of Revenue, Expendituros, and Changes in Fund Balances — f Ndget and. Actual — General Fund 14 Proprietary Finds Statement. of Net Position 15 Statement of Revenue; Expenses, and Changes ih Net Position 1:6 Statement of Cash Flows 0 Notes to Basic. Financial Statements 18-30 OTHER REQUIRED REPORTS Independent Auditor's Report on Internal Control. OverFinancial Reporting aiid off -Compliance and Other Matters Based on an Audit -of Financial Statements Perfb6ned in Accordance With Government Audii'irtgStandords 311 32 Independent Auditor's Report onMinnesota Legal Compliance 33 3*4 Schedule of Findings and Responses. 3S 37 THIS PAGE INTENTIONALLY LEFT BLANK INTRODUCTORY SECTION THIS PAGE INTENTIONALLY LEFT BLANK CITY OF .OEM LAKE RAMSEY COUNTY, MINNESOTA City Council -and Other Officials as of December 31, 2021 CITY* COUNCIL Gretchen Artig-Swbmley Leonard Cacioppo Laurel Hynes-Amlee Ben Johnson James Lindner OTHER OFFICIALS Melissa Lawrence Tom Kelly Don Cummings Mayor Courioifinember Councilmember Counc.ilmember. :Councilmember. City Clerk City Treasurer Planning.Commission Chair THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK MMKR CE.RT.IFIED PUBLIC A G C O U N: T'A N. T S. INDEPENDENT AUDITOR'S REPORT To:the City.Council and Management City of.Gem. Lake, Minnesota OPINIONS. PItILVCIPALS A. K:unowski Ci'A :..: Radosevi6,`C:PA Wliham J, Law. C.P.A. James H. Eichten;.CPA Aaron J. Nielsen, CPA Victoria L. Hofinka,.CPA/CMA jadyn M.: Huegel, CPA Kalen T; KarnoWski, CPA We have audited: tht; accompanying.financial statements of the. governmental -activities; the'buimess-type activities, and eaehinajdt fund of the City of Gem Lakin; Mintiesota•(the City) as of and for the year ended December 3.1, 2021, and the; related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our. opinion, .the financial statements referred. to above present fairly, in all: material respects, the respective financial. position of the governmental activities, the business -type activities, and each major fund of the- City as of December 31;..2021;-,aiid the respective changes n financial position, and, where applicable, cash flows .thereof; acid the budgetary cortiparison for the General Fund for the year then ended in. accordance with accqunting principles generally aecepted.in the United States of America. BAS.Is.FOR OPINIONS: We conducted our audit iri accordance with auditing standards generally accepted in the United States of America and She .standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of°the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report: We 4re--required. to: be independent of the City antljo:.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. RtgPONSIBII,ITIES OF MA\'ACEA1Et%'t fORTIIE FINANCIA>,j A..I)aNIG? TS. Management is responsible fpr the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design,. -implementation, and: maintenance of internal control relevant 16the. preparation :and fair presentation of*financial statements; that. are free from. material misstatement, whether due .16 fraud,or error. in. preparing the financial statements, management is required to evaluate .whether there arecond.itions.or events, considered in the- aggregate, that raise substantial doubt about the City's ability to. continue as a going concern montlwithin I2-is beyond the financial statements date, including any *currently known information :that may raise. substantial doubt shortly thereafter. (continued) -2- \421loy,. Mont.a'gwe, Karnowsk ,. l2ad,4se.vich :& Co..., P.A. 5.353 Wayzara .liodmLrd• i Suitc'4.I0 9 MiiinaapoIis, MN 55416 • Phone:•952-545-042.4.+ Fax. .952-5454509wvvw.mmkr:cum AUDITOR'S RESPONSIBILITIES FOR THE AUDIT O%THE FINANCIAL SUTENIENTS Our objectives. are to obtain reasonable assurance about whether the financial statements as a whole are free from material. inisstatem.ent, whether flue to .fraud :or error, and to. issue an .auditor's report that includes our opinions, Reasonable assurance is a high level of assurance., but is notabsolute assurance and, therefore; is not a guarantee that an audit conducted -in accordance with generally arcepted.auditing standards and Government Auditing. Standards will always detect a material tnisstatemerit-whbn itexiists. The risk of not .detecting a material misstatement resulting from fraud is higher than for orie* tesulting fromerror; 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, individuaIly.-or irr the aggregate, they would influence the judgement made by a reasonable.user. based on the financial statements. In performing an audit in gccordarice with generally accepted auditing -standards. and Government Auditing Standards, we: • E-xercise.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 -porforni. audit procedures responsive to.those risks. Such proceedures include examining, An 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 1-he- purpose. *of expressing an opinion on the effectiveness. of the City's internal control. Aecbrdingly, no such* opinion is expressed. • Evaluate the: appropriateness of accounting policies used and the reasonableness of significant accounting.: estimates made by (management, as. well. as evaluate .the overstl presentation of the financial statements. + Conclude whether, in our judgment, there are conditions. or events, considered in the aggregate, that raise. substantial doubt about the'City's ability to continue -as a going concern for a reasonable. period of time. We are required to. communicate with those charged with governance regarding, among other matters the planned scope and timing of fhe .audit, significant audit findings, and certain internal control relatetl matters -.that we identified during -the audit.. Required Supplementary Information Manageiiient :has omitted the management's discussion and analysis. that acbounting principles. generally accepted in. the United States of Amerb* require to be presented. to supplement the basic financial statements. -Such missing information, although not a part of the. basic financial statements, is required by the Governtnental Accounting .Standards Board, who considers it to be an essential part of financial reporting tot placing -the. basic f nancial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial.staternents is not affected by this missing information. (continued)t. -3- Other IrifoiriAsi iort, ;1vlanagement is responsible for the other information includbd in -the annual report. The -other information comn.prises the intrgductory section, but -does not include. the basic financial statements and our auditor's. report thereon. Our.opinions on the basic.financial statements do not cover the other information, and we do. not exprc,-A an opinion. or.atiy form-bf assurance thereon. do coiinebtion with our audit of the basic financial. --statements, our responsibility is to read .the other information and consider -whether a material inconsistency exists between the other information and the. basic financial: statements, --or the other information.otherwise appears to be -materially misstated. If, based on the work.performed, we conclude that an uneorrected material misstatement of the other information ekists,.we are required to describe it in our report. OTHER REPORTING REQUIRED t3Y G4.VERR'AIENTAUD177NGSTANDA'RAS In accordance. with Government Auditing Standards, we have also issued our report dated: ,[uly 27, 2022, on our consideration of the .City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that.teport is solely to describe the scope .of our testing of iittertial control aver financial reporting and compliance and the results of that testing,. and not to provide an opinion on the effectiveness Of the City'.s.internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance. with Government Auditing Standards in considering.. the City's internal.. control over financial reporting andcompliance. r Minneapolis, Minnesota U0 July 27, .2022 -4- THIS PAGE .INTENTIONALLY LEFT. BLANK BASIC FINANCIAL STATEMENTS THIS PAGE INTENTIONALITY LEFT BLANK CITY .0FOE 1 LA E. StatementoTNct Position December 31, 2021 Governmental Business✓TyM Activities Activities Total Assets Cash and r1v4stntents $ 886;953 S 4.06,715 $ 1,293,668 Receivables: Accounts. 1,706 33;415 35;121 AccniedAuterest. 1;823 809 2,632 Property taxes 12,184 — 12484 Special assessments. 759J54 — 139,754 Due from other,governments 3,304 + 3,108. Prepaid items 122,690 6,375 12�,065 Capital assets Not being depreciated Z29,777 — 720,,777 Depreciated, net of accumulated .depreciation 1,4-24,75.6 .1,2.62;271 2,6$7,027 Total assets $ 3,442,047 $ 1:,709,5.89 5,152,536 :Liabilities Accounts mid contracts payable S 149,823 S 8 $ 149,831 Accrued interest. payable 13,719 — 13,719 Due to other governments 8,280. 679 .8,959 Accrued salaries payable 2,302. — 4.592 Deposits payable 14.,893 — 14,00 Unemed*revenue. 14,202 — 1002 .Long-term liabilities: Amounts dug. in one year 105000 -- 105.;000 Amounts due. in. more than,one year 974,799 — 974,799 Total. liabilities 1;2831108 687 1,283,795 Net position Net investment in capital assets 462,018 1.,262,21.1 1,724,289 Restricted for debt service 701,333 — 707,333 Restricted forpark.improvemenIA. 44;290 — 44,200 unrestricted. 946.198.. 446,631 1,392,829 Total net position 2,159,839 1,709,902 3,868,741 Total.liabilities .and net.popioQn S 3,442,947 , S 1,709.589 $ 5,1:52,536 See notesJo. basic financial statements -S- CITY OF GEM LAKE Statement of Activities Year Ended. D.ecemn br3l., 2021 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Governmental activities General government $ IV,133 $ 21,028 .14,770 Public safety 1.11,465 — — — Public works 14.1.,844 1.8,254. — 34,115 Conservation. and development 142043 — — Interest and fiscal. charges 33,633' Total governmental activities 633,0:19 '39.,282 :14,770 34,1.15 Business -type activities Water 36958 33,051 — — Sewer, 54,102 . 55,8.23 — -- Total business -type activities 91,06.0 .88,874 — — Total s 724,618 $ 128,06 $ 14,770 $ 34,115 General revenues Property taxes. General purposes Debt service Franchise fees Grants -and contributions not restricted Investment eamings-(charges) Other Total general.reyenues C..hang; ih tlet po$itigW Net position — beginni ng of year Net:position.—.end of year See .notes to basic financial statements -6- �r. Na (Expense) Revenue and Changes. in Net Position Governmental Business -Type Activities Activities Total $ (167,335) $ - $ (167,335) (11-1,465) (111,,465). (99,475) (142,943) (33,633.}' — (3.3,633) (540.5- 1) — (544,851.) — (3,907) 1.,721 — (2,186)' (544,851) (2,186) 445,503 89,88� 8,436- 34,012 (3,303) 222 .574.943 20,902 2,129;847 $ 2,159,819. 1,714,007 $ 1,708,902 (3,907) 1,721 (2,186) (547,037) 445,593 69,03 8,436 34,0.12. (6,222) 222 571.924 24,087 3;-43,854 . $ 3,869,741 -7- . Assets Casb and investments. Rccelyables Accounts Accrued inttrat Proptrty joe8 Current. Delinquent Special assessments Current Delinquent Deferred Due from other governments Prepaid items Total assets Liabilities Accounts and contracts.payable Due to :other governments. Accrued salaries payable Reposits payable Unearned revenue T.otaI liabilities Deferred inflows of resources Unavailable revenue Fund balances Nonspendable Restricted for debt. service Restricted for park improvements.. Assigned for capital improvements Unassigned Total fiend balances Total liabilities, deferred inflows of resources, and fund balances CITY OF GEM .LAKE Balance Sheet Governmental Funds December 3 I, 2021 G.O..Capital G.C. Capital improvement Improvement Plan Bonds Plan Bonds. Street General Series 2015A Series 2018A Improvements $ 313,020 01618: 1 43,298 $ 422,821 1,706 — — — 503 193. .72 961 9;841 1,780 199 — 296 55 .5 — 697 — 43;953 36,918 38 — — 68 — -- 447;459 230,711 %'A04 — — — 1.*= 71.,01.2 58A0.. — . 330,633 $ 136,666 $ 585.,436. S 691,3.89 $ 36,057 S 475 $ 575 $ 112,716 81280 — — — 2,3.92 — — — 14,8.93 — — — 14,202. — — — 75,8.24. 475 575 11:2,716 964 55 488,141 .. 265,668 1,228 7.1,972. 50;450 - - 65;124 46,270 — — 313,005 252,617_ 253;845 .136.,136 96,720. 31'3,005 $. 330,633 $. 136466 1 585,436 $ 691,389 S.ec notes to basic f nancial statements -8- Parks and Total Playgrounds Ooyernni6istal S 44;196 $- 886,953 -- .1,706 -94 1,823 - 3556, — 8.1,46,8 NO* 678;180 — 3,304. 1212,690 $ 44,290 S 1,788,414 i $ — 1.49,823 8,280 2,302 14,893 14,202 — I:89,590. 754,829 1Z2,690 -- 1-1094 44;290 44,290 — 2;52 biz 44,220 843,996 $. 44,29.0 1,788,414 *THIS PAGE INTENTIONALLY LEFT BLANK CITY OF GEM LAKE. / Reconciliation of the Balance Sheetto the l: Statement of Net Position Governmental Activities December 3I,.2021 Total fund balances --governmental funds Amounts reported for governmental activitiet*in the Statement of Net Position are different Because: Capital assets used in governmental activities wd.not-financial. resources and, therefore, arenot reported as assets. in governinerital funds. Cost of capital assets Less accumulated depreciation Certain revenues {including taxes- and. specie] assessments) are included in net position, butare excluded front. fund: until they am -available to.liquidate liabilities ofthe current period. Long -tern liabilities; including bonds payable,. aiw.tiot-due and payable in the etirrbnt period and, therefore, are not reported in the governmental funds. Bonds payable Unamortized bond'prettuums Interest on long-term .debt is. included in the. change in net position as it accrues, regardless of whem payment is due. However, it. is -included in the change in fund balances when due . Total net position;— governtnenta(actiyities See notes to basic: financial statements -10- S' .843,996 2,719,895 Q,t165,362) '754;828 (14,799) 0.3,7.1.9) S 2,159,839 CITY OC CrCM LAK1s Statement of Revenue, Expenditures,. and Changes iri Fund Balances Governmental Funds Year Ended December 31, 2021 G:O. Capital G.O. Capital Improvement. Improvement Plan Bonds Plan.Bonds. Street General Setks 2015A Series. 2018A Improvements Reventic "faxes Property taxes S. 445;250 $ 80,823 $ 9,060 $ — Franc:.Nse fees 8,43.6 — — — Special assessments — — 61,831 45 I8 Intergovernmental 481782. - — — Licenses and. permits 27.J'09. - -- — Fines and forfeitures: 267 — — — Charges .for. services 1.,957 — — — Invest ment earnings (charges) (11,758) (340) 343 W6 Facility rental 8,812 — — -- Miscellaneous 1,137 Total.revenue 529,992 80,483 71,456 .54.574 Expenditures Current General government 185.608 — — — Public safety 111,465 — — — Public works 67,942 — — - Conservation and development 142,193 — — — Capital outlay 7 126 — — 218,572 Debt sen ice Principal -r 60,000 J5,000 — Interest aridfiscal charges -- _ •13,490 :22,175 — Total expenditures 514.334 _ 73,490 •57,375 2181572 Excess (deficiency) of revenue ovcrexpenditures 75,658 :6,993 14,08-1 (163,998) Other financing sources (uses Transfers in — — 25;000 Transfers (out) (25.000) — -- — 'Total otherfaancing sources (uses) (25,000) — -- 25,00.0 Net change i.n fund. balances. (9,342) 6,993 14,081 Fund balances Beginning of year 263,187 129,143; 82,639 . 454603 End of year $ 253,845 S 136.136 9 96,72() $ •313;b05 See. notes to basic.finaticial statements -I 1- Parks and Tatal Playgrounds _ Governmental W6 1.07,549 49,782. 27,109 267 4957 (404) (3,303) 8;832 1;359 (404) 73G,l.OI — 185;608 111',463 - 6.7 042 142,193 225,698 — 95,000 35,865 — 863,771 (404) (.127,670) 25,000 (25,000) (4.04) (1.27,6.70) 44,694 971.66E 44,290 S. 843,906 -.12- THIS PAGE INTENTIONALLYLEFT B.1,A.Nk-- .CITY OF GEM LAKE Reconci liation of the: Statement of Revenue;.Expenditures., and Changes in Fund.Balanees to the Statement.ofActivities Governmental Activities Year Ended. December 31:, 2021 Total -no changg in fiuid balances -= governmental funds Ainounts reported for .governmental activities in the Statement of Activities are different because:. Capital outlays are reported in. governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the.estithated useful lives as depreciation expense. Capital outlays Depreciation expense Certain. revenues (iircluding. taxes. and special assessments) -are included in the change in net position, but. are excluded from the change in fund balances.until they are available to liquidate liabilities of the current period. Repayment of bond principal is an expenditure in the governmental funds, but reduces long. -term Iiabilities in the Statement of Net Position. Some expenses reported in the Statement.of Activities do not require the use of current:financial resources and, .therefore, arenotreported. as expenditures in governmental.: funds. . Amortization of bond premiums. Accrued interest Change.in net. position—govemmentat activities See notes to basic financial statements -0- $ (1275670) 2?4,,§92 (91, I67) (73;091) 95,060 1,282 95.0 $ 29;992 "Mirg.-TINI WHAN I ISINAN WI&RAMSO-WAXWO CITY -*OF GEM .LAKE General Fund Statement.of Revenue, Expenditures. and Changes in Fund Balances —Budget and.Actual Year Ended December 3'1; 2021 Revenue Taxes Property taxes Franchise fees Intergovernmental Licenses and permits Fines and forfeitures Charges for services Investment earnings. (charges) Facility .re.ntal Miscellaneous Total revenge Expenditikes Current. General government Public safety Public works Conservation and development Capital Qutlay Total expenditures Excess of revenites over expenditures Other financing. (uses) Transfers (out) Nefdlta» ge in-Tund balances - Fund balances ileginning.ofyear End.pf year See notes to basic financial statements -.14- Original and Over ([Under) Final Budget Actual Final Budget $ 445,535 S 445,250 $ (285) 6,000 8,436 2,436 1,000 48,782 47,782 .26,850 27,109 259 1.,100 267' (833} 3,4QQ 1,957 (1,443) $,Qqo (11.,758) (16.,758). 3,006 4i.S p 5,812 SOQ. 1137 637 492,385. 529,992 '37;607 10:0506 185,608 .2,,102 `111,950 111,465 (4:9-5) 165,09 67,942 t3`7,737) 6.1,250 1.42,193 s0;943 5,000 7,126 2,126 467,385.. 514,334 46;949 25,000 15,658 (9,342.) $ — (9 342) $ (9,342) :163;187 t 253,945 CIV-OF'GF,M LAKE Statement of Net Position Proprietary Funds. December 31, 2021 Bnsines§-T.ype•Aetiyities � Enterprise Funds Water. Sewer Total Assets Current assets. Castrand investments : — 40bj 15 S. 406,715. Receivables Accounts 3,7.59 29,06. 33,415 Accrued interest — 809 809 Due from other funds — 72,052 72,052 Due from other governments — .4 4 Prepaid items — 6.375 6,375 Total current assets .3;759 515,611 519,370 Noncurrent assets Capital assets Infrastructure 734,262 813,678 .1,547,940 Less accumulated depreciation _(61,84.0) (223,829) (285,669). Total capital assets, netbf Accumulated depreciation 672,422 589,849 1,262,2'fl• Total assets. $ 676,1.8;1. $ 1,1.05;460. S 1,781,641 Liabilities Current liabilities Accounts and contragts payable $ — $ 8 $ 8. Due to other Funds 72,052 — 72,052 Dge:to other. govemments 679 -- 679 Total liabilities 72,731 8 72,739. Net position Net investment in capital assets 6.72,422 589,949 1,262,271 Unrestricted. (68,972). 515403 .446,631 Total net position, 603.450 1,105,452 1,708.9.02 Total'Ubilities:atid net position S 676J111* $ 1,105,460. S 1'781 641 Seenotes to basic financial. statements -15- CITY OF GEM LAKE Statement of Revenue, Expenses, and .Changes in Net Position Proprietary Funds Year.Ended December 31,.2021 .Operating revenue Charges for services Operating expenses Operating expenses Depreciation .Total operating .expenses. Operating income (loss.) Nonoperating incoine-(e.Ypensb) Investment earnings (charges) ChangeAnnet position. Net position Begivming ofyear t.. End of year -Sep notes -to basicfinancial. statements -1G- Business -Type Activities — Entcrpr se Finds Water Sewer Total S 33,05'1 $ 55,823 $ 88,874 23.,489 39,036 61,525 13,469 16,066 ' .0,535 . °36,958 . 54,107. 9.1,060 1$721 (2,186) (525) (24394) (2,919) (4;431) (673) (5,105) 607,882 1,106,125 1.,714,007 S 603,450 s. 1,105,452 S 1,708,902 CITY OF GEM LAKE Statement of:Cash Flows Proprietary Funds Year Fndet4 December 31, 202 t Cash flows from.operating actiivities .Receipts from customers and users Payments to vendors Net cash flows from operating activities Cash flows from noncapital and related fnancing.activities Cash received. from (paid to) other funds Cash flows from investing activities Interest received (charged) Net change in cash and cash equivalents Cash and.cash equivalents _ beginning Cash and cash equivalents--cinding Reconciliation of operating income (loss) to net.cash flows from operating. activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from. operating activities Depreciation Decrease (increase) in Accounts.xeceivable Due from other governmental units. Prepaid items Increase. (decrease) in Accounts payable Due to other governments. Net cash flows from operatirig : act ivities See rioter to basic financial statements -17- Business -Type Activities — Enterprise Funds Water Sewer Total $ 32,823• $ 57,540 $ 90,363 (27,854) (53.469) (81,323) 4,969 4,071 9,040 .(4,444) 4,444 — (525) (2,343) (2,868) --- 6,172 6,172 — 400,543. 400,543 S 406,715 $ 406,715 $ (3,907) S. .1,721 $ (2,186) 13,46.9 16,W 29,535 (228) 1,64E 1,41.0 — 71 71 — (3,.139) (3,138) — (9;625)- (8,625) (4;365) .(3,670)_ (8;035) $ 4z969 $ 4,071 $ 9 040 CITY OF GEM LAKE. Notes to Basic*floincial Statements December 31, 2021 NOTE 1-.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Organization The City of Gem. Lake, Minnesota. (the City) was- incorporated in 1950 and operates .under the state of Minnesota Statutory Plan A form Hof government.. The* City Council is the governing body. and 7s composed ofamelected mayor and four councilinembers. who exercise legislative authority and determine all matters of.pbliey. The City Council appoints personirei responsible for the proper administration of all affairs relating to the-C#y. The accounting policies of the. City conform to accounting principles generally accepted in the. United States of America as. applicable -to governmental units. The .Governmental. Accounting Standards; Board (GASB) is the accepted standard -setting body for establishing governmental accotinting:,and fiinaricial reporting principles. B. Reporting Entity As required by accounting -principles generally accepted in the United States of -America, these financial statements include the City (the primary government) and its component. units. Component units are legally separate entities for which the primary government is financially accountable, or for which the exclusion of Ih6 *coitiponerit unit would render the financial statements of the. primary government misleading. The criteria used. #o determine if the primary government is financially accountable for a component unit includes whether *or not. the primary government appoints the voting majority of the potential_ component unit'.s board, is. able -to impose its will on the potential component unit,: is-iti a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential comporent unit. Based on these criteria, there. are.no organizations considered to be component units bfthe.City. C. Government -Wide Financial Statements The governnieritswide *financial statements (Statement of Net Position - and Statement of * Activities) display information 'about the reporting government asa whole: These statementa- include all of the financial activitiesi of the City. O.overnmental activities,. whice - normally .are supported by ta4es and intergovernmental revenues, are reported :separately from. business -type -activities, which rely. to- a significant extent on sales, fees, and. charges for support. The Statement of Activities demonstrates the degree to which the 4rect. expenses ofa given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific. function or segment. Program revenues include; l) charges to. customers or applicants who purchase; We, or directly benefit from goods, services; or privileges provided by -a given function or segment,*2) operating grants and contributions, and.3) capital. -grants and contributions, including special assessments that. are restricted to. -meeting the *opdrational br capital requirements of a .particular function or segment.--Taxes.and otherinternally-directed.revenues are reported as general revenues: -1 &- NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The governmment=wide financial statements are reported using the. economic resources irieaaurern6nt:focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a. liability is . incurred, regardless of the .timing of related cash flows. Propertytaxes and special assessments are recognized .as revenues in the fiscal year for which they are certified for levy: Grants and similar items are recognized as revenue when all. eligibility requirements imposed by the provider have been met. As a general rule, the effect of inteirftind activity has boon eliminated from the government -wide financial statements:: However, charges between the.City's enterprise funds and other funciions.are not.eliminated, as. that would distort the, direct costs and program .revenues reported in those functions. Depreciation expense is included..in:the direct expenses.of each function. -Interest on tong -term del tis considered an. indirect expense and. is reported separately on the.Stateinent.ofActivities. D; Fund Financial Stafeme if-Prei tntation Separate fund.f..nancial statements are.provided. for governmental.and proprietary funds: Major individual governmental and enterprise funds -are reported as separate columns in the fund financial statements. Governmental fund financial statements are reported using the current financial. resources measurement focus and the .modified accrual basis of accounting. Under this basis of accounting, transactions: are recorded in the following tanner: 1. Revenue. Recognition —Revenue is recognized when it becomes measurable and available: "Measurable" means the. -amount of the transaction can be determined.and "availabie"-means collectible withift the current period or soon enough thereaAer to be used to pay liabilities ofthe t: current period. For tbis purpose. the City considers revenues to be available if*collected within 60 days afier..yearjend.. Only the portion of special :assessments receivable due within the current fiscal period.is.considered. to be susceptible to accrual asrevenue of the current period. Grants and similar items are recognized when: all eligibility requirements imposed by the provider have .been met. Proceeds of long-term -debt and acquisitions under capital leases, when appikabie, are reported as other financing sources. Major revenue that. is: susceptible to accrual includes property. taxes; special assessments, intergovernmental revenue, charges for services, fines and 'forfe Wrds,.facility rentals, and interest ;earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, and miscellaneous revenue. Such revenue is recorded only when received because it is not measurable until collected. 2. Recording: of Expenditures — Expenditures are generally. recorded when a liability. is incurred;. except for principal and interest on long-term debt and other long-term obligations., which are .recognized as. -expenditures to the extent they have matured. Capital asset acquisitions are reported astcapital outlay expenditures in the.governmentaI funds. Proprietary. fund financial statements are reported using the economic resources measurement focus and the accrual basis of :accounting, .similar to the government -wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and. expenses .generally result.from providing services and. producing and. delivering goods in connection with a proprietary fund's -principal ongoing operations. The principal operating revenues of the �ity's .enterprise funds are charges to :customers for sales and services. The operating expenses for the 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.- =19- NOTE X. — SUMMARY. OF SIGNIFICANT ACCOUNTING POLICIES`(CONTMUED) Description of Funds The -City reports the. following major governmental funds; General Fund —The General Fund is the general operating fund of the City. 'It is used to account for all financ'ial.resources except those required to be� accounted for. in another fund. G.O: Capital Improvement. Plan *ponds Sesties 20ISA Debt Service Fund — .The G.Q, Capital Improvement`Pian. Bands Series 2615A Fund accounts for all debt :service activity related to the 2615A bond. G.O:. Capital Improvement. Plan Bonds Series 2019A. Debt Service Fund — Tht. 0.0, *Capital lmprovement Plan Bonds Series 29J8A.Fund accounts for all debt -service. activity. related to the 2Q18A bond. Street.IMprovements Capital Project Fund — The Street. Improvements Fund is used to account for the accumulation of resources that .are. restricted, committed, or assigned to. expenditures for capital -oiitlaysr including. the acquisition.orconstruction of capital facilities. Parks and Playgrounds Capital Project Pund — The Parks and Playgrounds Fund is used to account for the accumulation of resources thatare restricted for capital. outlays and other costs related to maintaining mid improvingtheCity's parks mid -playgrounds. The..Citywrepottsthe following major proprietary funds; Water Utility Enterprise Fund — The Water Utility Enterprise -Fund accounts. for customer water service charges that are used to finance. water operating expenses. .Sewer- Utility. Efitdrpriie .Fund -- The Sewer Utility. Enterprise Fund accounts for customer sewer service charges that are used to:.friance seweroperating expenses. E. Cash and.Investments Cash and temporary investments include balances from all funds that are combined and .invested to the extent :available in various securities as authorized by *state lain. Earnings from .thi pooled investments are allocatedto tlie. respective funds on the basis of applicable cash'balance participation by -each fund. For purposes of the Statement of Cash Flows, the City considers all highly liquid instruments with an originally maturity from the time of purchase by the City of three months..or less .to be cash equivalents. The proprietary funds' portion in the: government -wide. cash and investment management pool is considered cash equivalent. -2a NOTE 1— SUMMARY OF $IG IOCANT AC.COUNTINd.POLICIES (CONTINUED) The City reports all investments at fair value. The. City categorizes its fair value measurements within the .fair value hierarchy established by accounting principles generally aceepted. in the United States of .America. The hierarchy is based on the valuatiori 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 :ob5eryable. inputs; artd.l.,evel 3 inputs are. signif cant unobservable inputs. Debt securities Cla§sified .in Level 2 of the fair value Hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. See. Note. 2. for the City's. recurring fair value measurements as of .year-end. -F. Receivables Utility.. -and miscellaneous accounts receivable are reported at gross. Sirice the City is generally able to certify delinquent amounts to the county for collection as special assessments; no allowance for uncollectible accounts has been provided on current .receivables. All receivables are expected to be collected within one year with:tlte exception pf deferre4 special assessments. G. Property Taxes Property tax levies *are- set.. by tile. City Council by Dedember ofeacb year, and are certified to Ramsey County for collection in. the following year: In Minhesoto., counties actas collection agent§ for all property taxes. The county spreads all levies over -Im.. ble. property. Such taxes become -a lien dri January 1 and are recorded as receivables- by the. City on that date. Real property taxes may be paid by t taxpayers in two. equal installments `on May 1:5 and October .15. Personal property taxes are due in full on May 15. The county provides tax settlements to cities and other taxing districts three times a.year; in July, December, and January. Property taxes .are. recognized :as revenue in the year levied in the government -wide financial. statements, In the governmental fund. financial statements, taxes, are recognized as revenue when :received in cash. or within 60 days after year-end. Taxes which. remain unpad at December 31, are. classified as delinquent taxes seb6ivable,-:attd are offset.-by.n deferred ififlow-of resources in the governmental fund financial statements. A. Special Assessments 'Special assesstrients represent the financing for .public improvements paid for by benefiting property owners. Special assessments are: recorded. as. receivables upon certification to the county. Special assessments are recognized as revenue in the year levied in .the government: -wide financial statements. In the.governmental. fund. financial statements, special. assessments are recognized as revenue when received in cash or within 60. ays after Year-end. Governmental fund special assessments. receivable which remain unpaid on December !J, are offset by a deferred inflow of.-Mqurces. in. the governmental fund financial. statements. I. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting..periods and are recorded as prepaid items in both government wide and fund financial statements. Prepaid items are reported using the consumptiontnethod and recorded as expenditures/expenses at the time of consumption.. =21 NOTE I — SUMMARY*OFBIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets. Capital assets, which include property,. plant, equipment, and infrastructure assets (e.g., roads, sidewalks, street lights, and similar items) are reported in the applicable. governmental or business -type activities columns in the government -wide financial statements. Such assets are capitalized at historical cost or estimated historical cost for assets where actual historical cost Jsnot: available... The City defines capital assets as :those with an initial, individual cost of $500.or more with an estimated useful life in excess Of five years.. Donated. assets are recorded as capital assets at their acquisition value. at the date of donation. The cost of normal maintenance and .repairs that do -not add to the value of the asset or materially extend asset lives are: not. capitalized.. Major outlays for capital assets and iinprovedient *are capitalized as projects are constructed. The government reports infrastructure assets on. a network and subsystem:-bmis. 1.11 the case of the initial capitalization of general infrastructure: assets (i.e., those reported .by governmental activities), the City chose to. include all such items regardless of their acquisition date or amount. Capital assets are recordtrd frr*the government -wide and..proprietary:fund financial statements,.but are not reported in the-gpvernmorital fund financial statements. Depreciation on enhaustible assets is recorded as :an allocated expense in the statement:of activities with accumulated depteciation reflected in the Statement of Net Position. Since surplus assets are sold .for an immaterial amount when declared as no longer needed for city purposes, no salvage value is taken into consideration 1or'depreciatirin. purposes. Capital assets are depreciated. using the straight-line method over the following estimated useful lives: Estimated Assets Useful Life' Buildings 40 years Office equipment 5-to 10 years Infrastructure 20 to 50 years Capital :assets: not being depreciated include land and construction in pt°ogress. K. Long -Term Liabilities In the government -wide and proprietary fund financial statements,...long-term debt and. otl�er long-term obligations are reported as liabilities. If they are material, bond premiums artd-diswunts are deferred and amortized over the life of the.. bonds using the straight-line method. Bond issuance costs are. expensed in the period incurred. In tile: governiental fund financial statements, long-term debt and other Iong-terin obligations are not reported as liabilities until due and payable. The face.ainount of debt issued is reported. as other financing sources. Premiums or discounts on debt issuances are,. reported as other financing: sources or uses, respectively. Issuance costs, whether _.or:notwvithheld from the. actual delit.pnxeeds received, are reported as expenditures: -22- NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Net Position In the government -wide and proprietary fund financial statements, net position represents the differences .between assets, deferred outflows of resources, liabilities,. and deferred MOW of' -resources. Net position: is displayed.in three components: • Net Investment. in Capital Assets —.Consists of capital assets; net of accumulated depreciation, -red0ced by any outstanding debt attributable to acquire capitaf assets. • Restricted Net Position — Consists of net.position restricted when there are limitations imposed on their use:through external. restrictions imposed by.creditors, grantors, or laws or regulations of other governments. • Unrestricted Net .Position. — All other net position. 4h4it. does. not meet the definition.. of "restrictcd" or. "net investment in capital assets." ;'lie City applies restricted resources first when art expense is incurred for which both restricted and unrestricted resources are available. M. Fund BaIstnce Classifications In the fund financial statements, governmental funds report fiend balance in alassificatiO that. disclose constraints for which arigoorits in thbseTtinds can be spent. These classifications are as follows: • Nonspcndable _ Consists of amounts that ar..e not. in spendable form, such as prepaid items, �. inventory, and other long-term assets. • Restricted- — Consists of*arnbtirifs- *related to externally imposed constraints. established by preditors, grantors, or contributors; or constraints imposed by state statutory provisions. • Cbntmitted — Consists of internally* imposed constraits that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City. Council removes ,or changes the. specified use by taking the same type of action it employed to previously commit those.amounts. • .Assigned — Consists of internally imposed constraints. These constraints consist of amounts `intended to be used by the City for specific purposes; but do not meet the.cHteria to be classified as restricted. or committed. In governmental funds, assigned *pounts represent intended uses .established• by the governingbody itself or by. an official to wliicb41.1c governing body delegates the. authority. Unassigned. The. residual classification for the General Fund, Which also reflects negative residual amourits in other funds. When both :restricted and unrestricted resources are available for use, it is the. City's policy to first use restricted resources,.xhen use unrestricted resources as they are needed. When committed, assigned; or unassigned resources are available for use; it is the City's. policy'to. use resources. in the following order: 1.) committed, 2) assigned, ana*3) unaissiped. -23- NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.(CONT.INUED) N. Budgets and Budgetary Accounting Budget amounts ai-e presented on tile-niodified accrual bafsis-of accounting. Each fall, the City Council adopts a General. Fund budget for the.following fiscatyear beginning January 1. The City has established budgetary control at the fund level. Budget appropriations lapse at year-end. Expenditures exceeded budgeted amounts in the General Fund byM,667.. O. Risk Management The City isexposed 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. The City continues to carry commercial insurance, for all risks of: loss, including disability and. -employee health insurance. Settled claims resulting from these ri$ks-have nqt exceeded insurance coverage -in any of the past three.fiscal. years. There were -no significant.reduotioris.in insurance coverage in the:cormnt year. P. Use of Estimates The preparation of firiancial'statements; in accordance. with accounting principles generally accepted in the: United States of America,. requires management to make estimates and assumptions that affect amounts reported in the financial statements during the reporting.period. Aetual results could differ from such estimates. Q. Interfund Receivables and Payaples In thw fund* fiinancial statements, activity between funds that is. representative of lending or borrowing arrangements is reported. as either "due:tolfrom other funds" (current. portion) or "advances to/from.other. funds." All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and. business -type: adtivities are reported in the government -wide financial statements as "internal balances." R. Deferred Outflows)InfloWss of Resources. In addition to .assets and liabilities, statements of financial position, or balance sheets, will sometimes reportdeferred outflows or inflows of resources. Tbeseseparate financial statement.elenients represent a wnsumption or acquisition of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) or an inflow of financial resources (revenue) until then. Unavailable revenue arises only under a modified accrual basis of accounting and, therefore, is only reported in the governmental funds financial statements. The governmental finds report unavailable revenue. from two sources: property taxes and special assessments. These amounts are deferred and recognized as inflows of resources in the period .they become available. -24- NOTE 2 — DEPOSITS AND I WESTMEM A. Components. bf Deposits and.lilivestmiWi Cash and investments at year-end consistbfthe followiiing: Depgsits 736,093 Investments 563,575 Total S 1,293,668 .B: Deposits. lit attcordattce with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by -:the City Council, including checking accounts and:eertif cates of deposit. The*following is. considered the -most significant risk associated with deposits;. Custodial. Credit Risk —*In the case of deposits, this is the risk. that in the event of a bank failure, the City's deposits may be lost. Minnesota Statutes require that All deposits be protected by federal deposit insurance, corporate surety bond, or. collateral. The market value of collateral pledged must equal l 10 percent of the deposits not. covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes; and bonds; issues. of U.S. government agencies;. general obligations. rated "V or better; revenue obligations. rated "AA" or. better; irrevocable standard letters of credit issued.by. the Federal Home Loan Bank; .and certificates of deposit. Minnesota Statutes. require. that securities pledged as collateral. be held 'in .safekeeping in a restricted account at the Federal Reserve. Bank or in an account at a trust department of a commercial bank or other financial institution that is *not owned or .controlled by the financial institution: furnishing the collateral... The Cityhas no additional deposit policies addressing custodiit).creditrisk. At year-end, the carrying amount of the City's deposits was.4730,093, while the balance on the bank. records was $954,268: At D64errlber 31,. 2021, all deposits were fully covered by federal deposit insurance,.surety bonds;-oi by collateral field by the-City's;agent in the City's*name. C. Investments The City has the -following investments at year. -end: Fair Value credit Risk Measurements Interest :Risk — hlaturily Duration in: Ycars _,. InvcurnentTytte Ratine . .Aaencv Usingi ..Less.Th2n.1. 1 to.5 6 to 10 Total Municipal Fonds Nesobabte ccrtiricatcs of deposit Total investments NIR —.Not Rated NIA -Not Applicable. AA Moody's Level NIR NIA Level2 -25- - $ - S 159,056 3 1391056 40,277 S 364,242 $ — 4044519 NOTE 2 —DEPOSITS AND INVESTMENTS (CONTINUED) Tnves}mero are.subject to various:risks, the following of which ale considered the most significant: Custodial Credit Risk — For investments, this -is the risk that in -the event of .a. failure :of the counterparty.to. an investment transaction (typically a broker -dealer), the City would not be able to recover the .value of its investments or collateral securities that are in the possession of an .outside party. The Ciget investment policy does not further address this risk: Credit Risk— This is the risk that anIssuer or otherr-counterparty to an investment will: not fulfill its-. obligations.. Minnesota Statutes limit:.the City's: investments to direct obligations or obligations. guaranteed by the United States or its agencies; shares. of investment companies registered udder the Federal: investment Company Act of 194.0 that receive the highest creditrating, are rated in one of the two highest rating categories by a statistical ratirig agency, and all of the. investments have a final maturity. of*13 months or 1ess;.general obligations rated*"A" or better; revenue obligations rated "AA" or bettec;,.gerteral dbiigatigns:of the Minnesota Housing Finance Agency rated "A'? or better; bankers' acceptances of United States banks. eligible for purchase. by the Federal Reserve System; :commercial paper issued by United States. corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or .less; Guaranteed Investment Contracts. guaranteed by a Unitedgtates commercial bank; domestic branch of a foreign bank, or a. United States insurance. company; -and with a credit quality .in one. of the. top two highest categories; repurchase or reverse purchase, agreements and securities lending; agreements with 'financial institutions. qualified. as a "depository by the government entity, with battkS that are .mgmbers of the .F.ederal Reserve System with capitalization exceeding $1.0,000,000; that are. a .primary reporting dealer in. U.S: governtttent securities to the Federal Reserve Bank of New York; or certain Minnesota securities brokerdealers. The C-Ity.i. investment policy does not further address credit: risk. Concentration Risk — This is the -risk `associated 'with investing a signifim. t portion ofthe -City- s investments (considered 5.0 percent or more) in the securities of a single issuer, excluding U:S. guaranteed investments (-such as treasuries); -itwestraent pools, and mutual funds. The City's investment policy states that. no more than 5.0 percent of the overall :portfolio may invested in the securities.of.a.single issuer, except fgr.tlte.securifies of the United:States government, .or an external investment pool. The. following is a list of investments; :wh'rcli individually comprise more flian 5.0percent.of the City"s total. investments: Goldman Sachs Bank — certificates of deposit $ 40,277 7:2%d Comewty Capital Bank- certificates of deposit $ 122,459 21:7%0 New York City. — municipal. bonds $. 159056 28..2%0 Texas LXch nge $ank'—:certificates of deposit. $ 241:783 42.9% Intemt Rate Risk— This'is the risk of potential variability'in the flair value: of fixed rate investments resulting from changes in interest rates (the longer the pejiod for which an. interest. rate is fixed, the .greater the. risk). The City's investment policy does -not further address interest rate.risk. -26 NOTE 3 — CAPITAL ASSETS Capital asset activity for the year ended Decetnbet 3.1;1021 was.as follows: A,. Changes. in Capital Assets- Used *in Govertimeintal Activities Snail* — Transfers and Beg#nning Completed Balance — •ofYear Additions Deletions Construction End.ofYear Capital assets; not dcpreciated Land S 2;5.00 S — — S — & 2;500 Construction in progress. US.3 218,424 — — 227.27 7 Total capital assets., not depreciated 11;353 218,424 — — 229,777 CapitaI.asseis, :dcpreciated Buildings. 902232 5,490 — — 907,712 Office equipment 17,900 778 — — 18,678 Infrastructure 1,563,728 — 1,563.728 Total capital assets, depreciated' 2483,860 6,258 — — 2;490,118 Less�accurnulated depreciation for Buildings (289,565) (22,634) — - .(312,199) Office equipment (14;0041 (1,150) — Infrastructure. (670,632) (67;377) — (719,009) Total accumulated depreciation (974,201.) (.91,161) — (1.,065.362) Net capital assets,. depreciated 1,509,659 (84.903)_ — — 1,424,756 Nel capital. asscls $ t 12 t,011 S 133.521 S. S 5 1.654,533 B. Changes in Capital Assets TJsed-in-.Business-Type Activities Balance - Transfers and. Beginning. Completed Balance — df Ye;ir Additions Deletions Construction End of Year Capital assets, depreciated. Infrastructure $ I;547,940 5 — S — S — $ 1,547,940 Less nccttmu.lated depreciation for InfrastrtK" (256,134) (29.535) — (295,669) Net capital assets $ uyi'80b s (29,535) $ S — S 1.262;271 Q DCpxaciation Expense. by Function Depreciation- expense was. charged to the:follewing•functions: Governmental activities General government. $ 23,794 Public:worts 66,627 Conservation and development 756 Total depreciation expense—.governinetital a6t1v1`tf65 9.1 161 Business -type activities Water S 1X*469 Sewer •16,066 . Total depreciation expense— business -type activities S 29,535 -27- NOTE: 4 — LONG-TERM LIABILITIES A. Components of Long -Term. Debt Final Balance — Original Issua . Interest Rate Issue Date Maturity Date End of Year Governmental activities General obligation {G.O.j bonds G.O. Rcfunding.Bonds of2015A $ 775,000 1 25-2.900/6 06/17/2915 02/0112028. S 470,000 G.O. improvement.Bonds of 2018A 9 660,000 3.00.--4.00% 07/12/2018 02/01/2034 595,0.00 1,065.,000 Unamortizea premiums 14,799 Total.governmental activities long -teen debt S 1,079,799 .B. Chwiges in Long -Term Debt Balance— Balance— Beginning End Due Within ofYcar Additions rtetirements ❑f`Yen One Year Got unemal activities G.O.bonds 0.0. Refunding Bonds o£2015A S 530,0.00. S — S 66 000 S 470,000 S 65,000 G*0. Improvement Bonds of 2018A 630,000 — 35,000 595,000 40,000 Unmwrtiied premiums 16,081. — 1..292 14,799 — Total 1 1;176,08t• S — $: 96182 5 1,079.799 $ 105.000 C. Wn.imum Debt.Payments Minimum annual principal and interest payments fequiredlo retire bonds payable are as follows: Governmental Year Ending Activities December 31, . Principal Interest .2022 $ 105;000 S 31,659 2023 .1051000 29,029 2024 105,000 .26,30.1 2025. 105i000 23,476 :2026 110,000 20,488 2027:2031 375:000 59,260. 2032.-2034 160,D00 9,800 Tbod. S 1,065,000 $ -00,013. . D.- DescMptiollt-of Loag-Tertit Debt General-Obligatibri Bonds — The .bonds were issued for .irtiprovemnents or projects, or to refund previously*issuo bonds, which benefited the City as a whole.. and are, therefore, repaid from ad valorem. levies. E. Uttlmate.Responsibility for Debt All general oblignttiori Bonds are backed by the full faith and credit of the City. -28- NOTE 5 — INTERFUND BALANCES AND ACTIVITIES A. Due-TolFrom Other Fuads Individual fund receivable and payable balances at Decertiber 31,.2021 arii as follows: Receivable Fund Payable Fund Amount Sewer Enterprise Water Enterprise S 7Z052 interfund receivable and payable balances represent the elitnination.of negative cash between hinds, B. Interfund Transfers Individual fund transfeis-diiririg.the year ended December 3l , 2021 are as follows: Transfers Out Governemental funds General Transfers. In Governmental Funds Street Improvements $ 25,060 During 2021 J. the City made interfUnd transfers to provide additional fiends. for. completing upcoming. -capitatprojects. NOTE 6 — NET INVESTMENT IN CAPITAL ASSETS The governnfi rit--Wide Statement of Net Position -at December 31.;.2021.includes th5City's net irvestment. in capital assets, calculated as follows: Governmental Business=Type Activities Activities Total Net investment,in capital assets Capital. assets Not being depreciated $ 129,77-1 $ — $ 219,77y Depreciated; net o.faccumulated depreciation 1,424,756 1,26X1 .2,687;027 Less capital related long-term debt outstanding (t,0.79,79.9) - Q,079;799) Less capital related accounts/contiacts.payable (I12,716), -- (112,716) Total net.investment in•capital assets $ 462,013 S 1,262,271 S 1.,724,289 29- NOTE 7 — COMMITMENTS AND CONTINGENCIES - A. Legal Claims The. City has the usual. and customary type.:pf -miscellaneous. legal claims pending at year-end. Although. the..outc�ome.of these lawsuits is not presently determinable, the City's management believes that the City .will not incur :any material monetary loss resulting from these claims. No loss has been recorded on the. Cityrs financial statements relating to these claims. B. Federal and State .Funds. Amounts recorded or.receivable from federal and state.. agencies are. subject to agency audit and adjustment. Any disallowed claims, including amounts already. collected; may constitute a liability of the applicable funds. The amount, if any, of claims which may. Lwdisallowed by the. grantor agencies cannot be determined at this time; although the City expects such amounts, if any, to be Int# terial. C. Construction Commitments At December 31., 2021,.the City is cQmmitfed to various construction contracts for the improvement of city property. The City's reitWning coinmitiment iirider these contracts -is $9,643. NOTES — SUBSEQUENT EVENTS A. NewAccognting Standards A new 'staridard has liven issued by the GASB that will result in significant changes in the reporting of {� leases.. once. it becomes. effective for. governmental entities. This standard will be adopted by the City beginning an02, and will:reguire the restatement of certain balances reported as of December 31, 2.021.. The effects .Qf xhis change. have. -not yet been determined. and. are not reflected in .these financial statements. B. COVID-19 Pkidemie The CO`VID-19 pandemic -has had.signifcant financial and operational impacts on the City for the last two fiscal years. Any potential impacts it may have:on-the City's future operations and .financial condition cannotbe determined at this time and has not: been..reflected in these financial statements. -3.0- THI S PAGEINTENTIONALLY LEFT BLANK, ( . I QTMER REQUIRED REPORTS THIS PAGE INTENTIONALLY LEFT BLANK M V MKR CERTIFIED PU.BL€C .AC-COUNTANTS. INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL PRINCIPALS Thomas A. Karnowski, CPA Patd.A: Radwevich, CPA William J. Lauer, CPA James H.. Ekhren,: CPA Aaron J. Niiclsen,.CPA Victoria L. Holinka. CPAICMA Jaclyn M. Huegel; CPA Kalen T. Kamowski.:CPA OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN. AUDIT OF FINANCIAL STATEMENTS.PERFO.RMED IN ACCORDANCE._ WITH GOVERNMENT AUDITING STANDARDS To -the City Council and Management City of Gem Lake, Minnesota % have. audited,. in accordance with auditing standards generally accepted in the United States. of America* and the standards applicable to. financial audits contained in hover ninem Auditing. Standards, issued by. the Comptroller General of the United States, the'financial statements of the governmental activities, the -business -type activities, and each major fund of the City of Gem Lake, Minnesota (the City) as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements; and have issued our report .thereon dated July 27, 2022, REPORT ON INTERNAJ. COIITROL.OVER FIiVANCIAL REPORTING In plannina.and performiq. our audit of the financial statements; we considered the City's internal control over financial reporting (intethal control) as'a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly,.we do not express an opinion on the effectiveness of the City's. internal -control. A defficiency 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 tizaterlal ieakness is -a defciency,;oi a combination of deficiencies,. in internal control such thai there is a t'easbnabte pdssibility that a materittl-misstateinent of the City's financial statements will not be prevented, or detectod and corrected., on a: timely basis. A significant deficiency is a deficiency,. or a. combination of deficiencies, in internal coptrol.46t 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. tlescribed in the first paragraph of this section and Was not: designed to identify all deficiencies in internal control that might be inaterial weaknesses or significant deficiencies -and, therefore, material weaknesses *or significant deficiencies may exist that have not been identified: We identified one deficiency in internal .control, described in the accompanying Schedule -of Findings and Responses as finding 202-1-001, that we consider io be a material. weakness. .(continued) -31- Malloy, Montague, Karnowski, Radosevi.ch & Co.., P.A. 5353. Wayzata Boulevard • Suite 410 Mi.n.neapolis, MN 554:16 ! P•hone:.952-545-0424 - Pitz: 9.52-545-0569• 9 -www.mmkr,cQm REPORT Oh' COMPLIANCE AND OTHER N AT'fE.RS As part of obtaining reasonable assurance about whether the: -City-'.A financial statements are. free from material misstatement, we performed tests.of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial. statements. However, .providing an opinion: on compliance with those provisions was not an objective of our audit and., accordingly, we .do not express'. such dh opinion. Then results of our tests disclosed no instances of noncompliance or other matters that ace required to be. reported under Government Auditing Standards. OT-Vs R>rsM)YSE.To FInD>iNG Government Auditing Standards requires the auditdr to perform limited procedures on the City's response. to. the finding. identified in our audit and described in the accompanying Schedule of .p`indings and. Responses. The. City's response was.not subjected to the other auditing. procedures applied in -the audit of* the financial. statements and, accordingly, we express no opinion on The response. PC!RPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of*ouftesting.of internal control and compliance and the results of that testing, and not toprovide an opinion Qn the effectiveness of the City's internal control or on '.compliance. This report is an integral part of an audit -performed in. accordance with Government Auditing Standards in -considering the City's internal control and compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota July 27, 2022 -32- MMKR ZMEMEEMEM C;LRTTFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT ONIVMINNESOTA LEGAL.COMPLIANCE To the City CoundLand Management City of Gem Lake, Minnesota Thomas A. Karnowski; GPA Patti A: Radoscvich, CPA \Villiam J. Lauer, CPA James H: Eichren..CPA Aaron J, Nidscn,.C:PA Vicuoria L..1-iolinka, CPAICMA Jaclyn M. i-luegel, CPA Kalcn T. Karnowski, CPA We have audited, -in accord Iance: with auditing standards getwWly accepted in the United States. -Of Atnerica.aiid the standards applicable to financial audits contained in Governineirt Auditing.,Sfarrdards, issued by the Comptroller General of .the United States, the financial statements of the governmental activities, the business -.type activities, and each major fund of the City of.Gem Lake, Minnesota (the City) as of and for the year. ended. December 31. 2021., -and the related notes to the financial: statements, which collectively comprise the City's basic financial: statements, and .have issued our report thereon dated July 27;.2022. MINNESOTA LEGAL C0IN1PLIAN'CC f In connection with our audit,. we noted that the. .City. failed to comply with provisions of the claims and disbursements.. section .of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters. as described in the Schedule of Findings and Responses. as findings 2021-002 and 2021-003. Also, in connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the ;provi..sions of the contracting bid laws, depositories of public funds -arid public investments, conflicts of interest,. public indebtedness, and miscellaneous: provisions sections of the Minnesota Legal Compliance .Audit Guide- for Cities, 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 We come to. *our attention regarding the City's noncompliancewith the' above -referenced provisions, insofar :as they relate. to accounting matters.. CITY'S RESPONSES TO FINDINGS Govern»rent Auditing Standuids requires the auditor to perforin Ifthited procedures on the City's *poilses. for the legal compliance findings identified in our :audit *.aftd .described in the accompanying Schedule of Findings and Responses: The City's responses were not subjected to the other auditing procedures applied in the audit of the financial. statements and, accordingly,we express: no opinion on the responses. (continued.) -33- ,MaUdy, Montague, K:arnow.ski., Rados:evich & V.-A. 5353 Wayzata•'Boulevard ! Suite 4I0 - Minneapolis.. MN 55416 a Phone: 452�545-0414 - Fac'952-545-0569 - V&,w.- imkr-cpm PURPOSE OF TH19 REPORT The purpose of this report -is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide -an opinion on compliance. Accordingly, this. report is not suitable for apy other purpose. Minneapolis, lvlutne5ota .J:uly 27, 2022 -34- CITY OF OEM LAKE. Schedule of Findings and Responses Year Ended December 31, 2021 FINDINGS. - NIATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING 2021-Of}i ' ]INADEQUATE SEG.RECA'ClOIV O.r DLTIES -Critgria — Internal. control over financial-xeporting: Condition — ne City of Gem Lake, Minnesota (the City) has .limited segregation of duties in. a number of areas, incluii ng,. -but not I'iinited to, controls over cash receipts, cash disbursements, utility billing, and payroll. Questioned Costs — Not applicable. Context The condition applies to multiple areas-as.iioted above. Repeat Finding �- This is a current year and* prior year finding. Cause — The limited segregation of duties is primarily caused by the limited size of the City's office staff. Effect — Ohe impoFta t element of internal accounting controls is an adequate. segregation of duties s igh that no one. individual have responsibility to execute a transaetion,.have physical access: to. the related assets; .and. have responsibility or authority to record *the transaction. A iack.df'segregation of duties subjects the City to. a higher risk that errors or fraud.. could occur and not be detected in a timely nighner in the normal course of business. Recommendation — We :recommend that the City continue its efforts to segregate. duties as .best it can within the.limits.of what the. City considers to lze cost -beneficial. Management Response -There is no disagreement*with the: audit finding. The City reviews and makes improvements to its internal control structure on an ongoing. basis to 1tnaximize the segregation of duties in all areas within the limits of the staff available. However; the City does.not consider it cost=beneficial at this. time to increase the size of.its finance department stat~f in orderto further segregate accountingfunctions. -35- CITY OF GEM LAKE Schedule of Findings and Responses (continued) Year Ended December 31, 2021 FINDINGS — MINNESOTA ,LEGAL. COMPLIANCE AUDIT 2021-002. CLAtn1S AND D.IsBLIRSEMF.NTS — TIMELY PAYNI..EtrT Criteria — Minnesota Statutes §. 471 A25, Subd. 2. Condition —Minnesota Statutes require prompt payment of local government bills within a standard payment. -period of 35 days from the receipt.of goods and services for governing boards that rn'eet at leastonce.a month. if such obligations are not paid. within.the :appropriate time period, local governments must pay interest on the obligations at the rate: of 1.5 percent per mbnth-*or part of a month. One .of twenty-five -disbursements tested was* not paid within the statutory time limit. Questioned Costs —Not applicable. Context — One of twenty-five disbursements tested was not in compliance, . Reppet Flodibg — Thin is a current year finding only.. Cause —This was:an:oversight.by city personnel. Effect— Certain payments made to vendors were not paid -within the timeframe as required by state statutes. Recommendadqu —We. Fecominend *the City review claims and disbursements payment procedures in place to ensurethatAll invoices are paid within statutory requirements. Management Response— There is no disagreement with the audit.fnding. The City. will .review its claims atid. disbursements payment. procedures to ensure future compliance. with Minnesota Statutes. v -36- CITY OF GEM LAKE Schedule of Findings and Reponses (continued) Year Ended. December 31,.202.1 FINDINGS -- MINNESOTA,.LEGAL COMPLIANCE AUDIT (CONTINUED) 2021-003 CLAIMS AND' DISBURsr.,MENTS -- SOPPOliT OdR PAYN-IENTS Criteria —Minnesota Statutes § 412.271.. Condition — Minnesota --Statutes require where a claim for money -due on goods of services furnished can be itemized in the ordinary course of business, the person claiming*payment, .or the claiM` 6nt'-s. agent, sha11 prepare the claim in written items. 0p6. of *enty-eight disbursemeiits:fested did not have, a claim in writing to. support the payment made. Questioned Costs —Not applicable. Context— One of the twenty-eight disbursements tested `were not in compliance. Repeat. Finding.-- T.his.is a current year f nding only. Cause -- This was. an oversight by city personnel. Effect — Certain payments .made to vendors were not supported by a claim in writiiig as required by state statutes. Recommendation — We recommend the City review claims -anddisbursements payment procedures in place to ensure that all payments are supported by a -claim in writing. Management Response — There is no disagreement with the tLudit finding. The City will review its claims and disbursements gayhieiit procedures to ensure future compliance with Minnesota Statutes. -37- Ti-11S PAGE INTENTIONALLY LEFT BLANK t Management Report City of Gem Lake, Minnesota Decembift 31 2021 THIS PAGE INTENTIONALLYLEFt BLANK A M KR CERTIFIED PUBLIC ACCOUNTANTS To the City Council and Management City of Gem Lake, Minnesota PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Kamowski, CPA We have prepared this management report in conjunction with our audit of the City of Gem Lake, Minnesota's (the City) financial statements for the year ended December 31, 2021. We have organized this report into the following sections: • Audit Summary • Governmental Funds Overview • Enterprise Funds Overview • Government -Wide Financial Statements • Legislative Updates • Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during the course of our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable for any other purpose. Minneapolis, Minnesota July 27, 2022 Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com THIS PAGE INTENTIONALLY LEFT BLANK AUDIT SUMMARY { The following is a sumM of our audit work, key conclusions; and other information that we. consider important.orthat. is -required to by communicated to-the'City*Coune.il,.administration; orthose charged with governance ofthe City. OUR RISPONSIBILFTY UNDER AUDITING STANDARDS GF,N'FRAI,LY ACCEPTED IiYTHE UNIrFD:SIA['ES OF A.M.-ERICA AND GOVERNMENTAUD&INOSTANDA"S We have audited the financial statements of the governmental activities; the.btisiriess-type::activities, and each maior fund.of the City as of and.for the year ended December 31, 2021. Professional standards require. that we. provide ypu.With:information.abbut our responsibilities under auditing standards generally accepted in the United States of America and.-Governinent.AuditingStandalds; as well as certain information related. to the planned scope acid tirh� ng. df our audit. We,have communicated such. itformation to you yerbally,: in our audit engagement letter; andin a separate letter dated :May 20, 2022. Professional standards also require. that we:communieate the following iriformatioit related to our audit. IkANNED SCOPE AND.TUMINC OOTIIE Ai1Drr We performed the audit according to the planned scope:and liming previously discussed and coordinated in .order to obtain suf icient. audit evidence and complete -an-effective audit, AUDIT OPINION AND FINDINGS Based on our audit of the City's financial. statements for the .year ended December 3:1,.2021: • We have issued an unmodified opinion on the City's basic financial statements. • We reported one matter involving the City's internal control over financial reporting that we considered to be material weakness: 1. Due to the limited size of the City's office staff, the City. has limited segregation of duties in certain areas. • The results. of. our testing. disclosed no instances of noncompliance required to be reported under GovenjsieW Auditing. Standards. • We reported two findings. based on our testing ofthe City's compliance with Minnesota laws and regulations: 1. Minnesota Statutes require prompt payment of local governthent bills within a standard payment period of 35 days from the receipt of goods and services. for goveming. boards that meet at least otice. a month. If such obligations are not paid within the. appropriate time period, local governments must pay interest on the unpaid obligadoM .at:the rate of 1,5 .percent per month or part.of a month. One of twenty-f ve disbursements: tested was not paid within thestatutory time limit. 2. Minnesota Statute§ require where'a•claim. for money due on .goods or services furnished can be. itemized in the ordinary course of business, the person claiming paymoM or the claimant's agent, shall prepare the claim in written items, One. of twenty-eight disbursements tested did not have a claim. in writing*ja support.the payment. made: -1- FOLLOW-UP ON PRIOR YEAR'FINDiNGS AND RECOMMENDATIONS. Asa part of our audit of the City's f naricial statements.for the year ended December 31;2021, we performed (� procedures to follow-up on the fndings and recommendations that resulted from the .prior year audit. The prior auditor reported the following findings that. are no longer findings in the. current year -audit of the City: • Minnesota Statutes require the governing body of the City to annually delegate the authority .to' make electronic funds transfers to a designated.business administrator or chief financial officer or the officer's designee. The City did notcomplete. this .delegation -.for the year ended December31, 2020. This is not a finding in .the current year. • Minnesota Statutes require payroll time sheet approval for employees. The prior year audit reported the time sheet for the City's one employee, did not contain a declaration indicating that the- facts recited on the payroll are correct to the best ofthe employee's information and belief. This is-tiot a finding in. the current year. • Minnesota. Statutes require unclaimed property held for.: more than three years (or one year for unpaid compensation) to be reported and paid or delivered to the state Commissioner of Commerce each year. This. requirement was not met by the City for the prior audit year. This is not a finding. in the current year. OTHER.OBSERVATIONS .AND RECOMMENDATIONS Reconciliation of Salary Expenditures to Quarterly Payroll Tax Returns One ofthe- audit procedures we routinely perform is to review a reconciliation ofthe salary expenditures.to the four quarterly tax returns (federal Form 941) filed covering the:fiscal year. During our audit, we. noted that the reconciliation performed by the City had a larger unexplained variance than we typically see. We. test this: reconciliation. as support for the salaries being reported>irr the financial statemets, and to verify the. -City is. reporting and submitting -salary withholding appropriately. While we. Were. able to.satisfy that this variance was not..indiok ive of a material misstatement in the financial statements; we recommend. the City work to verify salaries are being calculated:and reported. properly on these quarterly tax returns. SIGNIFICANT ACGOuNTiNG POLICIEs Management is responsible for the selection and .use of appropriate accounting policies. The significant accounting policies used by the-0ty are described in Note 1 of the.nptes to basic financial statements..No new accounting policies were adopted and the application of existing policies was not changed, during the year ended December 31, 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 AND MANAGEMENT JUDGMENTS. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and. assumptions.abotit future events. Certain accounting estimates are particularlysensitive-berause 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 estimate affecting this financial statements was: • The. depreciation of capital. assets involves estimates pertaining to useful lives. -2- We. evaluated the .key factors:and assumptions. used by managernipptto.develop these accounting estimates in determining that they'are reasonable. in. relation to ffie: basic financial statements taken as a whole. The:financial .statement disclosures.are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFOILM INC, TIv., AUDIT We'encountered no significant difficulties in dealing.with management. in perfonming.and completingour audit. CURRECFEn AND UNCORRECTED MISSTATEMENTS Professional standards require.us to. ace umulate all known. and. likely misstatements identified during -the. audit, other than those that are clearly .trivial, and. communicate them to the appropriate level of management. There -were -no misstatements.detected as a result.of audit procedures that were material, either individually or in the aggregate, to each -opinion unit's financial statements taken as a whole. DISAGREEMENTS WITH MAN;A,GE-? ENT For purposes of this report, a disagreement with management is a frnancdtal accounting, :reporting, or Auditing matter, whether or not resolved to our .satistkilon, that catlld be significant to the financial statements or the auditor's. report. Ve are pleased .to teport that no *such disagreements arose. during the course of our audit: MANAGEMENT REPRESENTATIONS We have .requested certain representations from management that are included in the management representation letter dated July 27, 2022. MANAGEMENT CONSULTATIONS WI111 OTIMER1146EPENDENT ACC OU XTAN7S In some cases,.managem.ent may decide to consult with other.aecountants:about.auditing and accounting matters, similar to obtaining a "second opinion" oil certain situations. If a ciirisultation involves application of an accounting principle to the. City's financial statements or 4. determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the. consulting accountant to check. With us to deteit nine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other. accountants. OTHER Al DIT 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.retenntion. as the City's auditors. However, these discussions Qccutred.*in-the normal.course:io#-om-.professional relationship and our responses were riot.acondition to our retention. OTIIER MATTERS We were not engaged to report on the introductory section, which accompanies the financial statempts, but is not required. supplementary information. Such information has not been subjected to the auditing. procedures applied in the audit of the bagic. financial statements'and, accordingly, we do not express an opinion. or provide any assurance on it. 3r THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City's governmental funds, which includes the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City's financial statements focuses on budgetary compliance and the sufficiency of each governmental fund's current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2020 fiscal year, local ad valorem property tax levies provided 40.9 percent of the total governmental fund revenues for cities over 2,500 in population, and 36.5 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2021 increased 4.0 percent compared to the prior year, and 5.9 percent for taxes payable in 2022. The total tax capacity value of property in Minnesota cities increased about 6.3 percent for the 2021 levy year. The tax capacity values used for levying property taxes are based on the assessed market values for the previous fiscal year (e.g., tax capacity values for taxes levied in 2021 were based on assessed market values as of January 1, 2020), so the trend of change in these tax capacity values lags somewhat behind the housing market and economy in general. The City's taxable market value increased 8.7 percent for taxes payable in 2020 and 11.4 percent for taxes payable in 2021. The following graph shows the City's changes in taxable market value over the past six years: $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 Total Market Value 2016 2017 2018 2019 2020 2021 -4- Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's property classification system to each property's market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city's total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of its tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City's tax capacity increased 9.8 percent and 14.3 percent for taxes payable in 2020 and 2021, respectively. The following graph shows the City's change in tax capacities over the past six years: Local Tax Capacity $1,600,000 $1,400,000 $1,200,000 $1,000,000 — - $800,000 $600,000 $400,000 $200,000 2016 2017 2018 2019 2020 2021 The following table presents the average tax rates applied to city residents for each of the last three levy years: i Rates Expressed as a Percentage of Net Tax Capacity Average tax rate City City of Gem Lake 2019 2020 2021 40.4 41.3 36.3 County 52.9 52.3 47.7 School 26.1 36.8 37.1 Special taxing entities 6.6 6.6 6.0 Total 126.0 137.0 127.1 The improvement in tax capacity values as previously discussed, contributed to the decrease in the City's average tax rate presented in the table above. -5- GOVERix. mCNTAL FUND BALANCES The. following table summarizes the changes in the fund balances of the City's governmental :funds during the year ended December 3.1, 2021, p rimed both by fund balance classification and by major fund: Governmental. Funds Change in Fund Balance' Fund.balances dfgovernmental funds Total by classification Nonspendable Restricted Assigned Unassigned T`otal•govemnicntal funds Total by fund 3~und Balance as of December 34 Z021 2020. Chan $ 122,690 $. 1,137 S. 121,553 155,684 .256,476 (1.00,792) 313,065 452,003 (138,99E8) 252.617 262,0503• •$ .843,996 S 971,666 S (127,b70) General S *Z53,W $-W.1.87 $ (9,342) G.E]. Capital ltnprovnncnt Plan Bonds Scries:2015A 1:36.136 129;1..43 6;993 G.O. Capital.lmprovement Plan Bonds Series 2018A 96,720 9'Z639 14,081 Street Improvements: 313,005 452,003 (138,998) Parks.and Playground 44;290. _ 44,694 _ {404) Total governmental funds $ 943;096$ 9T 1666 $ 1a27 670 In total, the fund balances of the City's governmental funds decreased 6y $127.;6'70 during the year. ended. December 31, 2021. Nonspendable fund balance increased $121,553 and restricted fund balance decreased $J00,792, both mainly due to an increase in nonspendable amounts 'for prepaid expenditures in the City's debt service funds, whichteduced the restricted fund Mantes. Assigned fund balance decreased $1.3$;998, primarily in street i>ii0mv.enients.due to increased.construction activity in the current year. -6- GOVERNMENTAL FUNDS. REVENUE AND :EXPENDI'I'L'RES The following table presents the per capita,revenue of the City'.s government4l funds for the past three years, Along with state-wide averages. We have. included the mostftcent comparative state-wide averages available from*the Office of. the State Auditor to provide. a benchmark for interpreting the Gity's. data. The amounts received from the typical major sources of governmental fund revenue will naturally vary between. cities based on factors such as a city's stage of development; location, size and density. of its population, property values, services it provides, and other attribtites. It will also differ-fiotn year-to-year, due -to the effect of inflation and changes . in.its operation: Also, eertain data in these tables may be classified differently than how they appear in the City'.s.. financial statements in orderto be more comparable to the state-wide information, particularly In. separating capital expenditures from cwrent expenditures. We; have designed this section of our management report using. per. capita dale in order to better identify unique or unusual trends .and activities of the City. An inherent difficulty t.n presenting. per capita inforinatioi is the accuracy ofthe population count, which for most years. is based on estimates. Governmental Funds Revenue per Capita With State -Wide Averages by Population. Class State -Wide City of Gem Lake Year 2019 2020 20.19 2020 202.1 Population 2,000 2 500 2,000=2,500 467 528 528 Property taxes $ 522 $ 546 $ 952 .$ ,1.,055 '$ .1,014 Tax increments 35 2� — -- — Franchise and.othertaxes 1:6 26 — — 16 Special assessments 64 50: 264 222 204 Licenscs and permits 30 24' 207 60 51 Intergovernmental revenues. 377 541 36. 19 92 Charges'forservices 447 143 41 3 4 Other j18_ 1I7 57 36 14 Total revenue $ 1•304 $ 11476 $� 1� 563 $ 1,395 $ 1,395 The.City's governmental fund revehues;for 1021 were.$736,161, a decrease.of $275 (less than 0.1 percent), or $0 per capita, from the prior year. The.largest changes in the table above occulritd.:in.property`tax revenues and intergovernmentaLrevenues. Property taxes decreased $41 per capita from the prior. year, due to a decrease in pending petitions and .delinquent collections. Intergovernmental revenues increased $73 percapita from the prior, due to.the:City receiving small cities assistance aid and federal COVID-l9 funding with no similar grants received in the prior year.. -7- The expenditures of governmerital funds. will also vary from state-wide averages and froth year to -year, based on the City's:circumstances. Expenditures are classified.into three-t3"-as follows: Curient—These.atetypically the general. operating type expenditures occut�ingbn an annual basis, -arid ara primarily funiled by general sources,.such as taxes and -intergovernmental revenues.. • Capit4l[ Outlay. and Construction - These expet'iditures do not occur on a consistent basis,. more typically fluctuating significantly .from year=tb-year: Many of these expenditures are project -oriented, and are often funded -by -:specific sources:.that have benefited. from the expenditure; such as special assessment improvement projects. • Debt $0-Ace- Although.the expenditures for debt. service: maybe relatively consistent over the team 6f*the-resp6ctive debt, the. funding source is the important factor. Some debt may be repaid thrdt g ...$peeifie sources,. such as spedial assessments or redevelopment funding, while other debt may be repaid with general property taxes. The -0ty's expenditures per capita. of its . governmental funds for the past three years, together with compamtive:-,statewide averages, are presented in the following table: GovernineatAl Funds Expendttures:per Capita With State -Wide. Averages by Population Class State -Wide City o£Gem Lake Year 20.19 2020 20I9 2020' 2021 Population 2,000-2,500 2,000-2,5500 4767 528' 528 Current General government $ 198 $ 249 $ 323 $ 268 S. 352- Public safety 317 337 18.4 201 211 Streets and highways 155 177 117 92. 129. Culture and recreation 107 166 - _ All other 7.8 96. 207 11.1 .269 Total current $55 965. 831. 672 -961 Capital outlay and construction 49 t 6S4 .1.38 17 427 Debt service Principal 171 224: 139 170 180 Interest and fscal charges 54 54 90 .83 68 Total debt service 225 28.3 229 253 248 Total expenditures 1,571 $ 11902^ . $ 1.198 $ W2 $ 1,636 Total expenditures itl: the City's governmental funds, for 2021 were $863,771, an incredse of $366,290 (716 percent); or $694 per capita, from the prior year. Capital outlay and construction expenditures increased $410 per capita, due. to- two large- construction projects in:the current year with minimal construction activity in theprior year. Total current -expenditures increased $289.per capita; dueto an increase in salaries expense, additional street repairs,.and a large storm (. water system engineering study performed in the..current year. -8- GENERAL FUND The City's General Fund accounts for the financial activity of the basic services provided to the community. The primary services included within this fund are the administration of the municipal operation, police and fire protection, building inspection, streets and highway maintenance, and parks and recreation. The graph below illustrates the change in the General Fund financial position over the last five years. We have also included a line representing annual expenditures to reflect the change in the size of the General Fund operation over the same period. General Fund Financial Position Year Ended December 31, $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 It- f S-- 2017 2018 2019 2020 2021 Fund Balance $329,141 $394,915 $495,267 $263,187 $253,845 0 Cash (Net) $358,163 $424,252 $514,910 $294,991 $313,020 Expenditures $360,300 $431,839 $376,034 $353,621 $514,334 The City's General Fund cash and investments balance at December 31, 2021 was $313,020, an increase of $18,029 from the previous year. Total fund balance decreased $9,342 in 2021, as compared to a balanced budget projected in the final budget. As the graph illustrates, the City has generally been able to maintain healthy cash and fund balance levels. This is an important factor because a government, like any organization, requires a certain amount of equity to operate. A healthy financial position allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in determining the City's bond rating and resulting interest costs. Maintaining an adequate fund balance has become increasingly important given the fluctuations in state funding for cities in recent years. A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual cash flow experienced throughout the year. The City's General Fund cash disbursements are made fairly evenly during the year, other than the impact of seasonal services, such as snowplowing, street maintenance, and park activities. Cash receipts of the General Fund are quite a different story. Taxes comprise about 85.6 percent of the fund's total annual revenue. Approximately half of these revenues are received by the City in July and the rest in December. Consequently, the City needs to have adequate cash reserves to finance its everyday operations between these payments. The City's unassigned General Fund balance at the end of the 2021 fiscal year represents approximately 49.1 percent of annual expenditures, based on 2021 levels. -9- The following graph reflects the City's General Fund revenue sources for 2021 compared to budget: Taxes Intergovernmental Fines and Forfeits Charges for Services Licenses and Permits All Other General Fund Revenue Budget and Actual r� r0�J �15, >!/ p�&0 ,sOP 00 "s .&��sr90sr, Ye%.�,�0os 30s s 0 000O 00O 00O 00O 00O00O 00O 00O 00O00O 000000O 00OO 0 ■Budget ■ Actual General Fund revenue for 2021 was $529,992, which was $37,607 (7.6 percent) more than budget. Intergovernmental revenues were over budget, due to the small cities assistance aid and federal COVID-19 funding received as previously discussed. All other was under budget, due to unfavorable market adjustments for the City's investments at year-end. The following graph presents the City's General Fund revenues by source for the last five years. The graph reflects the City's reliance on tax sources of revenue. $480 000 $4 $4 $4 $4 $3 $3 $3 $3 $3 $2 $2 $2 $z $2 $1 $1 $1 $1 $1 $2 $(2 General Fund Revenue by Source Year Ended December 31, 50,000 40,000 20,000 80,000 60,000 40,000 20,000 00,000 80,000 60,000 40,000 20,000 00,000 80,000 60,000 40,000 20,000 00,000 80,000 60,000 40,000 )0,000 ---- - - - .- - - 0,000 0,000) Taxes Intergovernmental Fines and Forfeits Charges for Services Licenses and Permits All ether ■2017 $359,657 $16,619 $1,072 $36,949 $45,772 $15,787 ■2018 $379,124 $15,817 $1,145 $48,650 $50,362 $22,515 02019 $370,729 $16,759 $1,769 $21,817 $96,742 $18,820 02020 $472,092 $9,885 $620 $1,662 $31,439 $15,843 22021 $453,686 1 $48,782 $267 $1,957 $27,109 $(1,809) Total General Fund revenue for 2021 was $1,549 (0.3 percent) lower than last year. Taxes decreased by $18,406, due to a decrease in pending petitions and delinquent collections as previously discussed. Intergovernmental revenues were $38,897 more than the prior year, due to the new grant funding received as previously mentioned. The all other revenue category was less than the prior year by $17,652, due to unfavorable market adjustments for the City's investments at year-end as noted above. M1 The following graph illustrates the components of General Fund spending for 2021 compared to budget: General Government Public Safety Public Works All Other General Fund Expenditures Budget and Actual uI ��s Aso ��' IP/q2 a> Ir/'o &/ 00o qjo 0o �000 '000 Ooo Doo Ooo ■ Budget ■ Actual General Fund expenditures for 2021 were $514,334, which was $46,949 (10.0 percent) over budget. Public works expenditures were $37,737 under budget, due to the City experiencing savings on snow plowing, salting, sanding, and tree trimming. The all other category was $83,069 over budget, due to a storm water system engineering study performed in the current year. The City also transferred out $25,000 to other funds as planned in the budget for completing upcoming capital projects. The following graph presents the City's General Fund expenditures by function for the last five years: General Fund Expenditures by Function Year Ended December 31, $200 000 $17 $1 $l: $1( 5,000 Total General Fund expenditures for 2021 were $160,713 (45.4 percent) higher than the previous year, with increases in all categories listed above, due to an increase in salaries expense, additional street repairs, and a large storm water system engineering study performed in the current year as previously mentioned. ENTERPRISE. FUNDS OVERVIEW The City maintains twoenterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service,. This section of the report provides you with.an-eyerview ofthe financial trends and activities ofthe City's enterprise funds, whirh.mclude the Water Fund and Sewer. Fund. Eiv"rF,RPRisE FUNDS FINANCIAL POSITION The following tablesumfmariies the changes in the financial position ofthe City's enterprise funds during the year elided December 31, 2021, presented both. by classification-&nd by -fund: Enterprise Funds. Change In Finandal Position Net position of enterprise funds Total by classifcation Net investment in capital assets Unrestricted Total enterprisefunds Total by fund Water Sewer Total enterprise: -funds Net.Position as of December 31, 2021. 2020 Change 1 1;262,271 -S 1,291,806 $ (29,535) 446 63-1 -422,201 24,430 $ I.1708,902 $ 1.,714;007 .$ (5,105) $ 603,450 $ 607,882 $ (4,432) 1;1054452 1,006,125 (673 $: 1,109,002 $ .1,71.4,007 $ (5,105) In WIAI, the net position: of the City's enterprise funds decreased by $5,105, during .the year ended December.31, 2021; due to negative operating results in these funds in the cummt.year. -1.2- WATER FUND The following graph presents four years of comparative operating results for the City's Water Fund: Water Fund Year Ended December 31, $80,000 $60,000 $40,000 $20,000 $(20,000) - — $(40,000 ) $(60.000) 2018 2019 2020 2021 IIIIIIIIIII10per Rev $10,040 $37,538 $16,042 $33,051 =Oper Exp $21,173 $55.212 $73,975 $36,958 Oper Inc (Loss) $(l 1,133) $(17,674) $(57,933) $(3,907) Inc (Loss) Before Dep $(1306) $(5,150) $(44,464) $9,562 The Water Fund ended 2021 with a total net position of $603,450, a decrease of $4,432 from the prior year. Of this, $672,422 represents the investment in capital assets, leaving unrestricted net position of negative $68,972. Operating revenue in the Water Fund increased $17,009 from the prior year. The increase is due to an increase in rates and higher consumption. Water Fund operating expenses for 2021 decreased $37,017 from the previous year. The decrease is due to a reduction in costs for water usage from the City of Vadnais Heights. -13- SEWER FUND The following graph presents five years of comparative operating results for the City's Sewer Fund: Sewer Fund Year Ended December 31, 11 ,., $70.000 - - - - $45.000 — - $20,000 $(5,000) $(30,000) $(55,000) 2017 2018 2019 2020 2021 �Oper Rev $56,140 $58,137 $65,428 $61,943 $55,823 o0per Exp $54,927 $92,067 $56,516 $60,903 $54,102 Inc Before Dep $14,883 $(13,917) $33,889 $18,147 $17,787 Oper Inc (Loss) $1,213 $(33,930) $8,912 $1,040 $1,721 The Sewer Fund ended 2021 with a total net position of $1,105,452, a decrease of $673 from the prior year. Of this, $589,849 represents the investment in capital assets, leaving unrestricted net position of $515,603. Operating revenue in the Sewer Fund decreased $6,120 from the prior year. The decrease is due to less home construction, resulting in less collected for sewer access charges. Sewer Fund operating expenses for 2021 decreased $6,801 from the previous year. The decrease is due to lower professional services expenses. -14- THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENT -WIDE FINANCIAL STATEMENTS. In addition to fund -based. information, the current reporting model for governmental entities a4b. requires 'the inclusion of two government -wide financial statements designed to present a clear picture of`the City :as a single, unified entity. These government -wide financial statemeno provide information. -on the total cost of delivering services, including capital assets and long-term liabilities, STATEMENT or. NET PastzroN The Statement of Not Position essentially tells you what the City owns and owes at a given point in time, the last day of the fiscal year: Theoretically, .net position represents the resources the City has lef3over.to use for providing services after its debts are settled. However,. those resources are not. always in spendable form., o>~theip may be restrictions on how some:of those resources can be used. Therefore, net position is'. divided intathree cotmponentsi net. investment in capital assets, restricted,. and unrestricted. The following table presents the components of the City's tiet Position as.oi`Deeember 31,:2021:.arid 2020, €or governmental activities and business -type activities: Net position Govemmental activities. Net investment: in capital assets Restricted Unrestricted Total govemmentaI activities. Business -type activities Net. investment in capital assets Unrestricted Total businessAype•activiti" Total net position As of. Decembet 31., 2021 .2020 Change S 462,018 $ 3.44;931 S 1.17,087 751.623 765:096 (1.3,473) 946,.198 1,019;820 03,622)- 2,159,839. 2,129,847 29,'9..92 1,262;271 1.,291,806 (790535.) 4'16,631 422,201' _ 24,430 1-,708,'902 1,714,007 (5;105) $ 3,868,741 3,843,854 $ 24,887 The City's total net position at December�1, 2021 was $24,887 higher than the previous year-end. 01 the increase, $29;992 came. from. governmental .activities and. was offset by a $5,105 decreaso.'from business -type activities. The governmental activities net investment in capital assets Increased $117;087, mainly due. -to increased construction activity in the current year:. Unrestrioted not position decreased $73,6.22, mainly due to investment in capital assets with no new debf. The decrease in business=type activities :net position way explained in the preceding discussion of :the activities of the enterprise funds. -15 STATEME.NT OE•At; CIVITIES The Statement ofActivities tracks the City's yearly revenues and expenses, as well as any othertxansactions that increase or reduce total net position. These amounts represent the full. cost. of providing -services. The: Statement of Activities -provides a. more comprehensive measure than just the amowA of cash that changed hands; as reflected in theftd-based financial statements. This statement includes thie cbstQf supplies used, depreciation of long-iive4 capital.assets, and other accrual -based expenses. The following table presents the change. in the .net position of the City for the years ended 'Decetnbe'r*31, 2021 'arid 2020: Net`(expense) revenue Governmental activities General govertiment Public safety Ppblio-w- orlcs Conservatigh and development Interest on long term debt Business=type activities. Water Sewer Total. net (expense) revenue General revenues Property tam. and -franchise fees Grants and contributions not restricted Investment earnings (charges) Other revenues Total general revenues Change in net position 2021. 2aio. Program Expenses Revenues NettChan a Net Change $ 293,133 $ 35,748 t (161,335) $ (134,179) 111,405 — .(I 1,465.) (106;319) .141;844 62,369 (10,475) (72,347) 142;943 — (142,943) (58,175) 33,633 —� (33,633) (40,984) 6,45$ 33,031 (3,907) (57,933) $4,102 55,823 , I= I;040 $ 724;078 3 1:77.0.41_, (547;037) (468,897) Sm 543,912 5.43;590 34,,O t2 1:2 (6,222) 17,332 222 379 571.,924 561,31.3 $ 24,887 $ 92.41 G One of.the goals of this statement. is to: providf,.a fide -by -side comparisbti to:illustrate the difference in the 'way the City's. governmental and business; -type —operations are financed. The table clearly illustrates the dependence of the City's governmental .operations on :general revenues, such as property taxes and unrestricted grants. It also. -shows lathe City's business-type.activities. are generating sufficient revenues. (service charges and program specific grants) to cover expenses: 46- LEGISLATIVE UPDATES ? As the first year ofthe fiscal biennium, the pdmkiy focus of the 2021 Minnesota legislative session.would typically have been the development of the state's fiscal year (FY} 2022-2023 biennial budget. Positive news:on the state's budget forecaatentering the session, with projections for the end of�the-FY 2020-�O2.I biennium improving from a $2.4 .pillion shortfall predicted in a May 2020 :special pandemic. budget projection to a $940.0 million. surplus predicted in the February .2621 budget acid economic forecast, was expected to ease the..budget.process and relieve.the.pressure to make budget.cuts during -an already uncertain time. However, given the significant events of -the preceding year, including the :COVID-19 pandemic and death of George Floyd, the focus of the. regular session shifted to legislation responding .to the pressing issues. that resulted from those events. The business of setting. a .biennial budget was ultimately not addressed until a Juice special session that ended in the early morning hours oj'July 1 st. The following is. a brief summary of legiislativo changes from the 202.1 session or previous legislative .sessions:potentially impacting Minnesota cities. American. Rescue Plan (ARP) Act — The federal ARF Act, signed into law in Mareh.2021, provided federal economic recovery lending for federal, state,. and local government responses to the .COVID-1.9 pandemic. Minnesota local governmentsreceived approximately. $2.1 billion in funding under the ARP Apt, including $644.0 trillion awarded to 21 large cities Cover 50,00.0 population) and $377.0 .million awarded -to. cities. and towns with a population below 50,000, with half distributed in FY 2021 and. half, in FY 2022. Local .governments can use ARP Act funding in four .broad categories: responding.to publichealth and ecohomicimpocts; providing.premium pay to essential workers;. providing general government services to the. extent :of revenue. loss; or investments in water, sewer, and broadband infrastructure. Potential State Aid Enhancements -- The 2021 Legislature increased state general fund base spending by approxiinately.$1.3 billion. rncluded are funding increases for severaTprograms potentially of benefit. to Minnesota cities, including: • A one-time appropdation.of $5.5.million for suppletnetrtal aid to cities for FY.2022, to offset losses. of local government aid (LGA)for 96 cities under the. currontformula. It is expected the Legislature will review and consider updating -the LGA formula!during.the 2022 session. • Annual appropriatiohs-of $1.8 million for the Greater Minnesota Business -*Development Public Infrastructure Grant Program, intended to bolster local economic :growth by providing grant assistance to cities for public. infrastructure needed to create and retain jobs.. • Annual appropriations of $2.5 million for local community childcare grants,iitltendted to assist local communities to increase the number of childcare providers tasupport.economic development. • Allocating a total of $70.0 million from the state'sARP Act funds over the biennium ($35.0 million per year) to fund the Border -to -Border Broadband Grant .Program, which. provides grants to local governments for enhancing broadband availability. • Annual allocations. of $4.5 million for reim.bursements.talocal. governments for firefighter training and education costs. • Annual allocations of $2:9 trillion for reimbursement to local governments. for peace- officer training costs. • A one-time appropriation=cif $18.0--million.for FY 2022: to the small cities'assistance:account to provide additional road repair funding for eiti.e§.under 5.,000 population. Truth-in-Ti msitiion Changes —Effective for property taxes payable in 2023 :and thereafter, county auditors will be required to prepare a new statement:for inclusion in its parcel -specific truth -in -taxation notices that contains summary budget information for.thecounty, cities, and. school. districts. for which they spread and: collect tax levies. Cities with a population greater thaii:500 will 'be required to compile and provide -current and proposed summary budget informatioti to the.county auditor, based on the summary budget information cities are required to submit each yeaf-trl.the Minnesota state auditor. -17- Tax.Base Change for Low-incoma Rental Property — Effective for assessment ye= 2022 and 2023, the first -tier linsit for class 4d low-income.rental property.is reduced from $1.74,000 to $100,000, with class rates remaining at �0.75 percent on.the first. $100,00i1 and 0.25 percent on the remaining balance. The -tier limit will once again be adjusted annually after assessment year 2023. Loaal Sales Tax Projects Defined —Minnesota. cities are authorized to: include up to'five.capital protects in proposals for local sales taxes. The( definition of a capitaL project for this purpose was updated to include:; a single. building or structure,. including associated irtfrastrue.ttu-e; improvements Wltltiiii a single park or recreation area; or, a contiguous trail. Tax Increment Financing (TM Fle9dbility — The Legislature enacted several measures that provide additional. flexibility for TIF spending, including: • Allowing unobligated-TIF to be used to.provide loans, interest rate subsidies, or other assistance to private developers for the construction or substantial rehabilitation of buildings an ancillary facilities, if doing sq. will -create jobs. Transfer authority expires on December 31, ..2022, and all transferred increment must be spent. by December 31, 2025; or returned to the TIF district. • Allowing TIF districts that have elected to::increase pooli%by .10.percent to use the increment for owner-dccupied housing .that meets. -the requirements* of a (rousing TIF district,. in addition to current low-income rental housing. • Providing three-year extensions ofibe ilve-.year and six year rules for -redevelopment districts created.after December 31., 2017, but before dune 30, 20 0,. thereby extending their duration. • !Creating. a three -city, pilot program;.'giving :temporary. authority -to -transfer unobligated housing TIF district increment ibIhe cities affordable housing trust funds: Sales and Use Tax.Refund Process —Effective for purchases made after-June-30, 2021,:cities and other - local governments are allowed to utilize a streamlined process. to secure. a sales tax refund on construction. materials purchased by a contractor on behalf of *the city for construction, remodeling, expansion, or improvement of public safety facilities owned bj *local governments, such as police and fire stations. The process also: applies to materials used in related facilities, such as access roads, lighting, sidewalks, and titi,,ty components. Under the:process, local governments would continue to initially pay sales tax on these naterials, but would then be allowed to fil&for a refund ofthu sales tax paid. Contractors would be required to provide the local: government with the info mation necessary to file:for the refund. Fire Protection Special Taxing District Anthority— Effective for'propertp tax levies payable in 2023 -and thereafter, She current !aw giving emergency medical. districts taxing authority is expanded to include fire .protection, districts, Two or.more.local units of government are rtow permitted to establish a'special taxing district topiovt"de fire protection, emergency medical services,,or both. The special taxing district will have authority to levy property taxes to finance district operations;: spread either across the entire district at a set. rate, or altoeated to.each }iarticipating.jurisdiction based on f rtors, such, as -population or aervice calls. Districts will also have authority to issue debt related to beer function.of the. district. Theproperty tax. and. debt issuance authority also apply to existing districts established, prior to Juhe 30; 2021. Open meeting -Law —'T'he Legislature made several pandemic -related changes to the Open Meeting. Law; :including removing the statutory tap 9f three times per year for elected officials to utilize .a medical exception for attending meetings remotely between. January 1, 2021, and July 1,2021., and removing the requirement *for elected officials participating in -public imcetings remotely, due to military service or medical exceptions, to disclose their -remote. locations. The law changes also updated the. definition -of "interactive technology' to replace "interactive television" throughout the text of the Open Meeting Laws, and added requirements for public bodies meeting remotely to enable remote: --participation by the public flee ofcharge.and enable public cgrrunent from. remote locattgns, when practical. 48- AIC.COG AND. AUDITING UPDATES The following.is. a summary bfGovernmental Accounting: Standards Board (GASB) standards expected to be implemented in the.next fewyears. Due to the COV1D49:pandemic, the GA:SB has delayed the original implementation dates ofthese -and other standards as described below. GASB Statement No. 87, Lenses Mew- is.a contract that transfers control of the right .to use another entity's: nonfrnancial .asset as specified in xhe conttact for a period -of dme.iri aIi*dXdhaage or exchange -like transaction. Examples of nonfrnandil. assets include buildings; land, vehicles, and equipment. Any..contract that meets Ihis-deitttition should .be, accounted for -under the leases guidance, unless. specifically exclttded.itt this statement. Governments.enterinto leases for many types ofassets.*Under the previous guidance; leases were classified. as. either capital of operating depending. on whethdr the lease'met any ofthe .four tests: In many eases, the previous guidance resulted in reporting lease transactions differently than similar nonlease. financing transactions. The .goat of this statement: is to better meet tie inforrnatioo needs of users by improving accounting and financial reporting for leases by governments.. it establishes a singWitiodel for lease.accounting based on the principle that leases are financingsof the right to use an underlying asset: This statement increases the usefulness of financial statements by requiring recognition of certain lease assets and liabilities, for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of re.sources..based.on the payment. provisions of the contract: Under this. statement, a lessee is required to recognize a lease liability and an intangible right to use lease asset, and a lessor .is required to recognize .a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. To reduce ftcost of implementation, this statement: ineludes.an exception:for short-term leases;.defined as a lease that, at tlie.commencement of the lease term, has -a maximum possible term under the. lease Contract of 12 months (or less); inefuding, any options to extend, regardless of their probability of being exercised. Lessees and. lessors shoirid recognize short-term lease payments as outflows of resources. or inflows of resources; respectively., based on the payment.provisions of the lease contract. The.requir{ements of this statetrtent are offective.for reporting periods beginning after June 1.5, 2021. -19.. GASB Statement No.. 91, Conduit Debt Obligations The primary objectives ofthis statement are to provide a single method ofreporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) artangements associated with conduit debtobligations,. and (3) related note disclosures. This statement achieves ti}ose objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt:obligation is not a liability of the issuer; establishingg 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. A conduit debt. obligation is defined -as a debt instrumetithaving all. of tho. following characteristics; • There are at least three.parties-involved: (]*) an issuer, *(2) a third party obligor; and:(3) a:debt holder or a debt trustee; io The issuer and the third party obligor -are not within the: same financial reporting entity. 0 The debt obligation is not a parity. bond of the issuer, nor is. it cross -collateralized with other debt of the issuer. 4P The third party obligor or its agent, not the -issuer'. ultiirtately receives the proceeds iFr m.*the debt issuance. .f The .third party obligor, not. the issuer, .is primarily obligated 'for, the paymerit of -all .amounts' associated with -the debt obligation (debt service payments). 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. This statement requires issuers to disclose general information about their conduit debt obligations, organized by type :of. commitment, including the aggregate outstanding principal amount of the issuers' conduit debt o6ligationss and a description of each type ofcorninitment. Issuers that recognize: liabilities related to supporting .he.ddbt service of conduit debt obligations also should disclbse.information about the amount recognized :and:how the liabilities changed :during the reporting period. The requirements ofthis statement are effective: -for reporting periods beginning after.December 15, 2021. Earlier -appliciflon is encouraged. .2.0- GASB Statonent No. 92, Omnibus 2020 The -objectives of this statement are to enhance comparability in accounting and financial reporting and to. inipMve the consistency of authoritative IiteratUre 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.specifre-provisions about the following: • The. effe6tive date of Statement No. 87, Leases, and Implementation Guide No. 20.19-3, 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 post-.4mployment benefit (OPEB). plan.. V The applicability of Statements No. 73; Accounting. and Financial Reporting f& Pensions and .Related Assets. That Are Not within -the Scope of GASB Statement 68, and Arrmend nents.to Certain ,Provisions of- *GASB .Stahwnents. V and 68, as amended, and No. 74; Financial Reporting for Postemployment Benefit Plans. Other Than. Pension Plans, as amended, to reporting assets :accumulated for post -employment- benefits. • The applicability of certain requirements of Stat merit No. 84; Fiduciary. ,Activities,, to. post -employment benefit arrangements. • Measurement of liabilities (and assets, if any) related to asset retirement obligations -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 litetaturiL • T&ffiinology used to refer to derivative.instruments. The requirements of: this statement are effective for #isca.I years .beginning after June 1.5; .,202I. Earlier application is encouraged. GASB StatementNo. 9.6, Subscription4ased Information Technology Arrangements This statement provides guidance on the accounting. and financial. reporting for subscription -based information technology arrangements (SBITAs) :for government erid users (governments). This statement (1).defines a SBITA; (2) establishes. that a SBITA.results in a right=ta-use subscription asset ---an intangible asset —and a corresponding subscription liability; (3) provides the capitalizatibh criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) regpires note disclosures regarding a SBITA. To the extent relevant, the standards for SB1TAs are based on the standards -established in Statement No. 87, Leases,**as amended. An SBITA is defined as a contract that conveys control of .the. right to use another- party's (an SBITA vendor's) information technology (17)software, alone :or in combination with tangible capital assets: (the underlying IT assets), as specified.irr the contract for a period ol~,gme in an, exehange or:exchange-like transaction. Under this statement; a. government generally should recognize a xight-to-use. subscription asset -an intangible asset, —and a corresponding. subscription liability.. This statement provides an. exception for short-term SBJTAs with a maximum possible term under the SB.ITA contract of 1:2 .rrronths, including any options to extend, regardless of their probability of being exercised. Subscription payments for -short-term SB.IT. M. should'be recognized as outflows of resources. This statement requires a. government to disclose descriptive * hifairmation about its SBiTAs other than short-term SBITAs, suchas-the-amount ofthe subscription asset, accumulated amortization; other payments not included in the measureaient:-of.a subscription liability, principal and interest requirements for the subscription liability, and.other essential information. The requirements of this. statement are effective.for'fiscal years beginning alter June 15, 202.2, and all reporting periods thereafter. -2.1:. GASB Statement Nt: 971 Certain Component Unit Criteria, and. Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans an Ametadrrrent o f GASB Statement No. 14 and No. 84i and a. Supersession of GA,5B Statement No. 32 The prlmary:objeetives of this. statement are to (1) increase consistency and comparability related to the. reporting offfduciWcomponent units in, circums(ances.in which apotentiai component.unit does riot have a governing board and the primary government, performs the duties that a governing board:typically wovJd perform.; (2). mitigate costs associated with th.ee reporting of certain defined contribution pension plans, defined contnbution OPEB plans, and employee benefit plans other than pension plans or OPEB plans {other employee benefit plans} as f duciary component.units, in fiduciary fund financial. statements; and (3) enhanice. the relevance, consistency, and comparability of the-accountirig and financial reporting -*for Internal Revenue Code, Section 457 deferred compensation plans (Section 457 plans) that Inn, et the definition of a pension plan and for benefits provided through those plans. The requirements of this -statement that (1)*exempt primacy governments that perform thdAuties that a government board:typiically 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.t.hat mwet the �e iteria. 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 far Section-457 plans are effective' for fiscal years beginning after.Tune 15, 202L 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-arrangernents, the absence df a. -governing board be treated the same as the. appointment of a voting majority of a governing board if the primary goverrvnerlt performs the duties that agoverning board typically would perform, aree effective for reporting periods. beginning.aiter June 15, 202L Earlier application of those: requirements is encouraged and permitted by requirement as specif ed Within this statement., GASB.Statement No. 98, The -Annual. Comprehensive Financial Report This statement establishes the.term :annatai co»tprehensive, financipl report. and. its acronym.. AC:FR. That new term and acronymreplace instances of comprehensive.annual financial report and. its acronym. in generally accepted accounting principles for state and local governments. This statement was developed in response to concerns raised by stakeholders that. the common pronunciation of the -aaronytn for comprehensive annual financial repoA-sounds like a profoundly objectionable racial slur. This statement's introduction of.the new tennis founded on a commitment to promoting inclusiveness. The requirements of this statement are effective .for fiscal years ending .after December 15,. 2421. Earlier application is encouraged. 0 -22- �Y• yf. (a :'F�i`.. Ij'iGir�oS� iN'1.9.t7 �wi7t +�.}^�" Albrecht Company 1409 W. County Road C ♦ Roseville, titN 55113 ♦ Pb (651}* 3 11510 tFax051)633.1675 f www.albrcclucompany.com • mail s^nlbreclncompany.com July'°I ,, 2022 Attn: Gretchen Artig-Sworn ley Mayor -Gem Lake Proposal for Lawn Irrigation System —Geis Lake City Hall 4200 Otter Lake Road• Gem Lake,: MN 55110 rr a Bld - •- ;I t atrart Bas • 41 Estimated 'quantities • { .1 )•Hunter. BPC 4 station WiFi enabled conttollet With(1 )•3 station module • { 1 ;> Wireless. rain sensor • ( 5 } Hunter model PGV 1"remote control valves • { 28 ) Hunter PGP UltM 4" rotor • ( 14 :) Hunter Pro-S •4" spmy.head with.MP Rotator.nozzle. • ( 10) lineal feet of 3' PVC:sleeve installed. -via compaction boring - AIR } 1.00# High density polyethylene pipe— size *as required + ( AIR) #18-12•multi conductor direct butW control wire Irri `atio' ''Alferna :z t�:#1•�'ADD•��'�1�81 Estimated quantities • { 2 } Hunter model PGV 1":remote control valves r ( 7 } Hunter POP -Ultra 4" rotor ( 11 } Hunter Pro-S 4" spmy -head with MP Rotator nozzle • ( 25 } lineal feet o£3" PVC sleeve installed via compaction boring (AIR j 1,00# High density polyethylene pipe— size as required • A/R ##18-12 multi conductor direct burial -:control wire. *NOTES: • Qiiotc is based on existing. water:source being in good working condition • Qttote is based on using existing electrical outlet: W iFi. connection to controller provided -by owner • Subject to: changes for irrtjgularconcealed contingencies,.•sti.ch as.iticks.and.debris. • Private utilities located by others • Property line established by others • Quote is based on available water flow rate of ( 30 ) gallons per minute and static p'restq}re•tif ( 70) p.i.i. at point. orconnection this. proposal may be Withdrawn by AltwticHt Co. ff isgt:accepted within 15 dnyk. Pleitst fell fiYe to call me. f9rverification. Acceptance of proposal: The above prices, speciticatioits.6nd. conditions ai�-. het'clajr,"aped, You.are auUtorizecl to do the work asspecified. Payment will be 30% down and the balance in full upon completion. Albrecht Company's bid does not reflect any costs for bond or on penn its. •A 2.9% service. fee will be added to any•payments made by credit card. Signature: Date of acceptance Page 1 of 2 ;:'jr: ��t.. may: ;..� .:,,; �. •�,,:�.lil='Eve r r `;wry Albrecht. Company I405 W. C.00nty Road C 4 Ro.ieville, MN 55113 4 A (45.J}633.4510 4 Fu (65I) 633-1675 ♦ www.albrcchleompaoy.eom * rmid @1 albrecht.company.com. Notice A. Any person or -company supplying labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contribution. B. Under- Minnesota law, you have the right. to pax -persons who supplied. labor or materials for this improvement directly and deduct this amount from our contract price; or withhold.the amounts due them frorn us until 120days after edmpletion. of the imprdVdments unless wegive you a lien waiver signed by persons who supplied. any labQr-or material for the improvemert and who gave.you timely notice, Additional terms and conditions We shall invoice the.project upon completion unless the project exceedsone: month whereinve. shall invoice. the project on a monthly basis for labor and material supplied and be entitled to rebeive progress -payments. Invoices are due upon.rece.ipt: Not withstanding anything contained herein to the contrary, any material. alteration, addition, or deviation from the terms and specifications contained in this contract involving extra costs will be executed *Oply upon written request, andHcill become an. extra charge.over and above the contract price; a monthly fin4pce*charge.:of 1.5% shall,be added to any unpaid outstanding balance. In the event thatwe must take..legaI action to recover from you the. amounts dueunder the terms of this contract, indluding.any additional change orders,.it is agreed that you will also be liable,.:for all costs and &bursemet►ts'and reasonable attorneys' feedihourred in collection. The warranty for worlunanship specitiedheroin is -conditioned upon receipt of full payment for all materials turnished work performed, Customer: CJ2stbmer Signature: Date of Proposal; Page 2 of 2* Date -of Acteptance: w C MINNEsoT A. IRRIGATIONI Name, The City of Gem' Lake( -Heritage Hall) Address: 4200 Otter Lake Rd City; Gem lake State: Mn Zip: 55110 Phone: Melissa 651-747-2790 E-Mail: melissa.lawrence@gemlakemn.org Date: 8-4-22 Estimator: Dave Qty Description 8 Zan es Sprinkler Heads ju Rotors 18 MP Rotators 18 Pro Spray Other Backflow Preventer & Plumbing. .Pipe, Wire, Labor, Taxes Plumbing Permit Backflow Certification & Test - RPZ Installed 1 1 4 Fee Estimate Total: $5800(around ui ing The center island add on would be 2 zones and a 2 inch bore Oat under driveway.. The cost to do entire area indicated on the site map you have givei me would be a total of 10 zones $7400.00 763-785-2201 3149 162nd LN NW Andover, MN 55304 Payment: 50% down payment is due to get on the schedule. The remaining 50% i$ due ypon.completion of the: work: Warranty: One year on parts and labor. Warranty does. not cover mishaps that occur from 4he`homeowner, other contractors, damages. caused by weather. or -rodents/ animails. Warranty is void if the irrigation system is 'not winterized by Minnesota Irrigation. 'Utilities: Minnesota irrigation will notify -the utility Spmpanies for the proper marldng of --public. lines:. natural gas; electrical, phone, cabie, 'etc The homeowner is. responsible for markings or iriforming us of any private lines installed by you or any company. This would include: -septic:systems, electrical, pet fences, satellite cables; etc. Minnesota .Irrigation is not responsible far.any.dariiage caused by unmarked utilities either private or public. Lot Lines: The.homeowner is responsible for determining property line boundaries; Minnesclte Irrigation is not responsible for parts installed beyond property lines: Irrigation Enhancements: Water*Saving Sensors Smart Controllers Fertiliier5ystems Drip & Micro Irrigation Garden Faucets Iron Removal Systems Other Services: .Outdoor Lighting Private Utility Locating Backflow Preventer Install & Test Provided by: �, �r. Proposal for: City of Gem Lake, Ramsey County MN July 20, 2022 Quoted by: Dan J. Burns; CPA Software and Services for BS&A Cloud S O F T W A R E Thank you for the opportunity. to.- quote our software and services. At BS&A, we are focused on delivering unparalleled service, solutions, support; and customersatr`sfaction. You'[ see this in ocir literature; but it's notjust a marketing strategy.. it's a rni;?dset deeply embedded in oiir DNA. Our goal is to provide such remarkable customer service that our raitamers feel compelled to- retnark about it We. are extremely proud of the many long-term custor»er•re[ationships we have built. Our success is directly .correlated with patting the customer first and consistently choosing to listen, Delivering unparalleled customer service: is the foundation of our compony. B..S&A Software 14965 Abbey Lane Bath MI 4-8808 {855j BSA -SOFT I fox (517) 0418960 bsasoftwore:coni -Cosh 5ummary Software is licensed for use onlybyniuhicipolity identified on the cover. page. if used for additional entities:oragencies, please contact BS&A for appropriate pricing. Prices listed are estimates based on information currently available. Cloud Modules Financial Management. General Ledger $.1,125 Accounts Payable $945 Utility Billing (based'on dpproximate(y 700 water/sewer accounts) $1,350 Personnel Management Payroll $1,545. Community Development Building Department $1,475 BS&A Online Community Development i885 Permit Application Feature - Enables contractors:.and the general pulilia to submit permit applications online (A fee. of $3/application .is accumulated and billed to the municipality). Subtotal $7,325 Data Conversions/Database Setup Convert existing Sage data to B5&A forW6t: General Ledger (Chart of.Aaounts/Balarrces/Budgetas of a: Specified Date.. Each additional year of 'history' Woo balances to be setup will be, an additiortal #10o6..) Accounts Payable.Nehdbr Mast& FifeY $1,600 Payroll (Mandal Entry or lmport.of'-gmplpyee..Master File/Setup/YT1) as of a Specified Date.). $2,586 Convert existing UB Mpx data to BS&A format: Utility Billing (Atibunts,Services, Deposits, Rates; Meters, Up to 10 Years of Service, Billing & Payment•Nistory). $4,000 Convert existing Permit Works data to BS&A format: Building Department (Per Database) $5,000 Subtotal. $15,280 BS A City of:GerR-4ke, Ramsey County MN.j July 20, 2022 ti ri r 1 W n R c Dan J. BumS, CPA, AccounE.fxeiiitiVe j (855) 272=7638 1 dburnsPbsasoftware_cem. =cq or n Prices good for a perlod.of 90 days from date on proposal. Custom Import Custom import from third -party software to populate Building Department database with parcels, properties, and $.1,500 current owners. Subtotal $1,900 0rO1Jedf it :_ement"and impWmentpf4on Blalnning SeMci a include: Analyzing*Wstomer processes to ensure:aQ•criticdl•components.are. addressed. Creating and managing the project schedule in accordance with the customer's existing processes and needs. Planning and scheduling training around any planned processchanges included in.the project plan. Modifying the project schedule as needed to accommodateany changes..to the.scope and requirements of the project that are discovered. Providing a central contact between the customers project leaders, developers, troiners, IT staff, conversion staff, and other resources required throughout the transition period - Installing the Software and providing IT consultation for network; server, and .workstation configuration and requirements: - Reviewing and addressing the specifications for needed customizations to meet customer needs (whenapplitable). $13,750 fmplerii¢rit#tloii• and Training - $1.0901day Days.quated are estimates, • you are billed for•adual days dsed Services include, - Setting up users and user security rights for each 'application - Performing final process and procedure review - Configuring custom settings in each.application to fit the needs :of the customer - Setting up application. integration and workflow methods - Onsite verification ofconverted data for balancing and auditing purposes. - Training and Go -Live Software.Setup Days: 4 $4,000 Financial Management Modules Days: 7 $7,000 Personnel Management Modules Days:. 3 $3,000 Community Deveiopmerif Modules Days; 9 $9,000 Total; 23 Subtotal $23,000 BS&A City of .Gem Lake, Ramsey County MN I July 20;:2022 s a r I w A K e Dan J. Burns; CPA, Account Executive 1($55) 272-7638 1 dburns('d)bsasoftware:com page-J. of8 Prices good for a period of 90 days from date on proposal Cost Totals. Nbt ineiuding ArrnuaI �erviice.Fees Modules. $7,325 Data QOV6rsions/Database Setup .$151280 custom Import $1,500 Project. Mana.gement.and implementation Planning $13,750 lmpWhentatlon and Training $23;000 Total Proposed $60,855 Travel Expenses Hosting Fees Payment Schedule VI Payment: $29,030 to be invoiced O on execution .of this. agreement. 2"d Payment:- $8,22516'6e invoiced at: actiVation of customer's site, 3"' Payment: $43,910 to be invoiced upon completion of training. $79,4T0 $900 City of Gem Lake, Ramsey County MN I )uly 20, -2022 S O F T W A R E Page 4 o/ 8 .Dah I Bums, CPA, Account Executive 1 (8$5) 272-7538.1 dburns(@bsasoftware.com Prices good for a period of 90.days from date on proposal ��• Cloud Annual Service Fees Unlimited support is.included in yourMhual*Service Fee. Service Fees'orebilled annually. After two (2)years, BS&A Software reserves the fight'to Increase the Annual Service. Fee by^no more.than the yearly Consumers Price Index for All Urbon Consumers U.S. city average XPI-011 Financial Management.. General Ledger $1,125 .Accounts Payable $945 Utility Billing $1,350 Personnel Management Payroll $1,545 Community Development Building Department $1,475 B5&A Online Community Development: $885 Total Annual Service tees $7,325 Hosting Fees Fees relating to the hosting abd storage of data. through MicrosoftAzuree are to be:billed annually, for aU asddtrfe5 included above. $900 BSA City of Gem Lake, Ramsey County MN I July 20, 2022 s a n i ty A. n E .Dan J, Burns% -CPA, Account ExecUtive j (855)•272-7638 1 dburnsftsasoftware.corn Page 5 of 8 Pdm good fdr a peridd af9.0days from date on proposal Additional Information Program Customization BS&.A strives to provide a flexible solution that can be tailored to each municipality's needs. However, in souse .cases; custom work. may be required: Typical examples. include: a custo6payment import/lock box. import • custom OCR scan -line custom journal export to an outside accounting system • custom reports if you require any custom work; please let us know so that we can better understand*the scope ofy6urrequest and include that in a separate proposal. Cash Reeeipting Hardware Epson THM-6000V Series Receipt Printer* APG. Series 100Cash Drawer** Honeywell Hyperion 13009 Linear -Imaging Scanner .Credit Card Rea.d.er of using Invoice Cloud.) This will add $. to the Total Proposed. Quantity Cost $925 x _ 3 Pw x _ U50 $75 x *IMPORTANT The receipt printer must be plugged into the USB: port on one .workstation (not your server). This printer is not to be shared with other workstations. if more than one workstat!Ion will be used for receipting,.pleuse consider purchasing more than one receipt printer. Pjease provkie.#he-nermber of cash drawers that will be hooked up to the printer Note; The availability, model numbers, and pricing.for all third party -hardware fisted above is subject to availability from the manufactureisAn the event that the listed, hardware is'no longer.available at the: time.of purchase, 8 comparable: replacement will be available, at the then current cost. Retums require pre -approval; and all purchased equipment must*be shipped back:to BS&.A in its original packaging: Returns are. subject to a restocking fee of $50.00. Additional Training - Building. Department Report Designer Most of our Building. Departinentcustomers heavily use our Report Designer; which is included free with the program. Report Designer jrrainina is not included in•thetraining ou ted�on this proposal and is highly recommended. You may attend a class at our office in Bath -Township, or we can train at.your location.. Report Designer training is typically completed in one day. :P]ease:cheek the option you are interested in. Report. Designer Training will. be scheduled after successful implementation arid. training of your Building Department software. _ Classroom training, $205/person/day. ...--.On-site training (unlimited attendees), $1,000%day, travel. not included B &A .. S O P 1 W A A 9 Cityof Gem Lake, Ramsey County MN I July 20, 2022 Dan J. 8urtis,.CPA, Account Executive 1(8SS) 272=76381 d burn s 2 b s a softwar . om Prices good for it period of 90: days fromdate. on proposal. Page 6:of 8 B5&A Online Connection Requirements BS&A Cloud modules require a.high-speed internet connection (cable modem or DSQ. Payment Processing Requirements Acceptance of online payments require.s:a contract with .one of BS&A's approved Online Credit Card Processing cornpariies. Please visit httns:llwww:bsasoftware.com/solutions/bsaorilinelrzubl crecords-search/for information. <011 BS&A Page 7 of 6 City of Gem Lake, Ramsey County MN I7uly 2A.2022 Dan J. Burns, CPA, Account Executive 1 (855) 272-7638 l dburns(a)bsasoftware:dom Prices good for a period of 90 days from date on proposal Contact Information If any mailing addresses are PO Boxes, please also provide a Street Address for UPS/Overnight mail. If additional contacts need to be submitted, please make a copy of this page. Key contact for Implementation and Project Management Name Phone/Fax_ Mailing.Add City, State; 2 IT Contact Title Email dame Title Phone/Fay, -1156a.il Mallirig Addrg; City,'Stm Zp ~ BS&A. .PC r7 WA1[! Poge 8.0(8. City of.Gem Lake. Ramsey County M N I July.20,.2022 Dan J. Burns, CPA, Account Executive 1 (855) 272-76381 dburns@bsasoftwam.coin Prices good for a period of 90 days from date on proposal: City of Gem Lake, Ramsey County, Minnesota Cannabis & CBD Sales&Distribution Ordinance No. 13.9 AN INTERIM ORDINANCE PROHIBITING ACCEPTANCE OR CONSIDERATION OF A°PPLICATiONS. FOR NEW CANNABIS AND. CANNABIDIOL SALES, -TESTING, MANUFACTURING AND DISTRIBUTION FOR ONE.YEAR WHEREAS, malty cities have adopted Interim Ordinances or regulations on aspects:of planning.and zoning regulation to study their impacts and determine whether the regulations are appropriate in order to protect.the public health,.safcty:and welfare.o.f their citizens; and WHEREAS, the City is undertaking d study to..effectuate changes to the 'Zoning Ordinance and City Code that would regulate .the sales, testing, manufacturing:and distribution ofcannabis.and cannabidiol (CBD) for medical, recreational and other purposes and may implement. many of the suggestions from the study. NOW, THEREFORE., pursuant to: Minnesota Statutes, Section 462:355, St6divisi6h 4,.the City Council of. Gem lake does ordain. Section 1. No applications related t61he license, use, development, variances, conditional use.perinits or any other planning licensing applications that involves the sales, testing, manufacturing or d�siribu(wn of cannabis, medical or recreational, in any way, and cannabidiol products shall be.accepted or considered for twelve (i2) months from: the effective date of. this Ordinance or until ordinances regulating such uses becomeeffective, whichever occurs first. Section 2: City Staff is directed to.conduct a study. to gather information and.make a recommendation to determine how. Zoning. Ordinance and City Code need to be amended regarding this use to better protect the. citizens of the Cily.of Gem Lake. Section 3. Summary Publication. Pursuant to Minnesota Statutes Section 41.2.i91, in the. care of a lengthyOrdiinance;'a summary may be published. While a copy of the entire Ordinance is. available,w.1thout cost:at the office. of the City Clerk, the following summary is approved by the City Council and,shall be published in. lieu of publishing the entire Ordinance: TheCity.will be undergoing.a study regarding CBD and cannabis uses.. No zoning or: licensing.applications will be accepted until the City adopts:regulations regarding these uses, or for a period of one (1) year; %yhichcvcr occurs first. Section 4; Effective Date and Expiration Date. This Ordinance shall. be in full force and effect from. and after its passage and publication according talaw and shall expire upon adoption of.Ordinances regulating such uses or tweive (l2) months froth its of cctive:datc, whichenr comes first. Approved this day of . , 2022 APPROVED: ATTEST: Gretchen.Artig-SWomley, Mayor Melissa Lawrence, Acting .City Clerk Questions: What.steps can a municipality take to regulate the :sale of. edible THC. ANALYSIS In 2022 the Minnesota State Legislature adopted .changesto Minn .Stat. Sec.1,51.72 concerning sale certain canttabinoid products, specifically edible THC. The statute was amended to resolveambiguities. in:the prior statute. As of July], 2022 it is now1egal.to sell edibles containing THC,: as well -as THC.irifused beverages. F'orlhepurpose of this memoraIldum THC infused ptbducts will be.referred to as "CBD Products'. The statute doesn't grant a municipality the. power.to regulate the:manufacture, distribution,. or sale of CBP products: On the other hand, the. statute doesn't prohibit. a municipality from regulating CBD products. I raise this point because municipalities are creatures of statute. They only have those powers which the legislature either expressly grants or*aie..*granted by implication. In addition, if the State is already regulating an.:act ivity;:the iunicipality can't adopt regulations which conflict with :the State. regulations: The statute does forbid adding CBD to candy -and snack food prdducts.:And the Alcohol and Gambling:Enforcemerit.Division of the Minnesota Department Qf'Public Safety has informed the League ofMinnesota Cities that products: containing CBD, hemp or THC are not allowed .to lie.sold .at exclusive liquor stores.'The reason being is that Minn. Star: Sec 340A.412 subd. i 4 lists the products liquor stores are. allowed to soil. And CBD, hemp' or THC infused products aren't listed. And the statute forbids -safe to anyone youngerthan. L Beyond tbese.prohibitions Minn. Stat Sec..151..72. is silent.as, to how the sale of CBD products will be regulated. One-m6thod that has been discussed is to regulate sale'of CB0 Oibducts in the same manner as tobacco products. For example; sale of either tobacco products or:CBD products:to a -person under the age of21 is -prohibited. If a municipal ity elects.to regulate CBD: products -in the same -manner as tobacco it should do to under a separate Winance. Again, there is the. problem I have already raised. The lack statutory langua$e. dealing with sale of CBD products. There is a strong possibility that.an.Ordinance creating such regulations would be challenged oti.the basis that the.municipality lacks the statutory authority to adopt such.regulations. The municipalitywauld.have tQ.rely on itspolice. power to protect health and. safety. Another method of regulation which has been diseussed.is regulation through zoning. This is a method f believe. holds more:.pramise. Minn. Stat462.358 Subd. la authorizes a municipality to.adopt land use controls to protect. publ.ie.health.,safety and general w.elfare..Manufacturing; ,distribution and sale:of CBD products is clearly a.public health, and safety concern: No one wants a:store.selling CBD products next to a school. Creating a special zone. or conditional. use would allow a municipality to control manufacturing;, distribution and sale.of CBD products. Adult entertainment and.book:stores are already controlled. Why not create:. similar controls for C.BID products. Such an action is clearly allowed under Minn. Stat Sec. 462.3 58. And it avoids the problem of lack. of statutory authority under Minn. State. Sec.151,72. Land:use.regulatiott.allows.a municipality to exercise. its authority under Minn. State Sec: 462.355-Sulid. 4. Under the provisions of Subd,4 a:munic'ipal'stj+ pars adopt a moratorium prohibiting manufacturing,.dittributioft:or sal$ of CBD products for up to a year while studies are conducted. it is my understanding that the: City o.f Stillwater has :adopted such an Ordinance. CONCLUSION The lack of a statutory framework- for regulation of. CBD.products:is a cbrtcern. While CBD infused alcoholic products and food products'appeorslo be: dealt with. The lack ofregulation cbncerniing sale of othei -fortis of edible CBD products is concerning.: Use of a municipality's power to. control land use appears to be the bot method.of controlling sale. of CBD products. r Attached is an article I came across reiating-ta THC and the .City of Richfield's pending .moratorium. . While Richfield appears to1e-leaning in a similar direction that Gem Lake may ultimately follow,. the article does give soine background as to where this sudden interest came from. One consequence of sitting back and observing other cities' approaches:.is what is sometimes called the paralysis of analysis. There are some ideas presented in the article we.ipay wish to explore. L Delta 8 TJiC is already readily Available, A Goggle seatch identified a shop in St. Paul thatsells Delta 8 THC. 2. We should get'our arms around both Delta-8 and Delta 9 so nothing slips through the cracks: 3. Richfield's, city manager is quoted.regarding possibly embedding Tf iC into. their zoning ordinance, presumably as apermitted use for a.commercial district. But what -about home, occupations? Derr► Lake may consider.. adding Delta 8 (and Delta 9) as a regulated home. occupation, or prevent sales of either Delta 8 or 9.8 an excluded type of home occupation. 4. Regulate sales per the state law. Buyers must be 21 dh6older;,produets.of not more that 5mg each or packages containing nomore. than 50mg. 5. Restrict.sal:es to gas stations and smoke shops (or it least write such. restrictions into both our consolidated land.use ordinance. and.Ordi.nanceb8, tobacco.). 6: Should we add THC onto our business license- application so to -flag-it to potential vendors as well as helping Gem Lake know where it might be sold? 7. In Any case, we should keep it simple acid straightforward and make it easy for potential. vendors to find. in our ordinances,. Just some -thoughts; but it would be nice to see Gem Lake. at the forefront of local goverrimeitt's response and not just sittingby to see what others might do. Jim Lindner cu •v 0 $ � l0 Pam(. " Y LJ C7) = p- rz. 75 L3 rs- . ��'::,::� g:+';d;') (Yj� •: jl t•' N � ^ .:: C .yt'! 'r .fit. �F $';yi�� Q � �{ S: ' '�'•� in Ca �: cn .. v �" C Y3 1t` . d• c. • '� gi o u ' LY w'7 a 'f' w _ V C.. �...•.-: .::�G' •.'. i..r;."J G : 't O .....� :.+ G. G:. Ej �...,� t;.:n a a J ':�:•� u.''o..G �i:: c .c a ., ... .. .. I LEAGUE L c MINNESOTA CITIES Cities and Regulation of Edible Cannabinoid Products Published: July 15, 2022 Anew law was enacted at the end bf the 2022 legislatige* session that allows certain edible. and beverage products infused with tetrahydrocaunabinol (THC)- to be sold. Since the enactment of the *law, fine,League of Minnesota- Cities has*been-r-esearching and collecting information from stale agencies. and stakeholders. -to answer questions pertainiing to.loeal regulatory authority; lawenforeemenfi, taxing, and employment. The following -frequently asked questions (FAQ) aim to provide information to cities. on the new law to assist local governments.. in making decisions related to the.law. The League will.continually update the information below as* necessary. (Updated July 28, 2022) Get answers to. FAQs regarding the new law allowing certain edible and beverage products containing THC extracted from hemp to be sold. General information I. What does the new law do Q2. Under the new law, where are edible cannabinoids allowed to be sold? (Updated July 20,: 2022) Q-1. Could... ci 's municiFal l auor-atore sill the edible cannabinoid ro u ? (Updated Judy 20; 2022) Q4. What regulations ale in place for packaging fQr edible cannabinoids? 25. Are these products legal under g ns? (Updated Judy 22; 2022) Q6. Where do the edible cannabinoid productg oQMe from? :Q7. Plow are he new products taxed? EnforOlnedt-and public safety . 08; How is the new law enforced? (Updated Jury 28, 2022) 09 What are penalties for someQne who violates.? QIQ: Hs�w do Qur officers determine if a driver is -under the influence,Q£these new products? Q11. Could cities prohibit the sale of edible cannabinoids eati e y? (Upr at0dluly 10, 2022)- Q12. Is our ciiy required to adopt regulations under the n w law> City Licensing Q-1I What authority do cities have reg wg Ticensing th- sale of edible gannabinoids? Q14. What. yne of restrictions should we°•consider in regufating cannabinoids? (Updated July 19, 2022). Q15. Can a p4 add edible cannabinoid products to its existing tobacco licensing pmgum:? Q.16. If our city licenses edible cannabinoid pro uct , how much can we charg as a n fee? Zoning. Q17 What authority do cities have regarding zo- ing for where theproductg could be -sold? (Updated July 19, 2022) .18. Could cities adopta moratorium prahi�lo=gtg aa1e, manufacturing g distribution of !annabinoids so it can study the issue? City employment and personnel. issues. QI9. Does fine new Minnesota legal cannabinoid law ctiang gaboutbowwedidru dig ' testing for CDL holders? (Updated July 22r 2022.) Q24. Does the new law change an g.,related to ernpe!�s who -carry a firearm? (Updated July 22, 2022) 21. Are there no " cceptable" Iimit of cannabinoids for non-CDL emp D c rug testing at work (i.e., those we test understated g and alcohol testing Iaw)? Q22. Can we still prohibit emp ogees from being under the influence of cannabinoids while at work? Does the "Lea gue have a model policy with updated language? Q23. Can employees be in possession of edibles or other cannabinoid pr- ducts while at work) �24. Do we need to change anything in our collective bargaining agreement with r gar_d to discipline of employees who use cannabinoid s? Q25. Can employ ees use cannabinoid products.ori Q26. How does this impact the requirements. of the Drug- ree Workplace Act? 027. Should m ci still continue to include mariivana as a nfe"emyment panel screed for my Non -DOT empees? (Updated July 19, 2022)'` General information Q1. What does the. new law do? Al. It is now legal to. sell certain edibles.and bever4goinfuted with tetrahydro.pa Ab nn iin ol (THQ, the cannabis ingredient extracted fro w. bomp. The new law was passed by the Legislature as part -ofUmpteL28. Article. 13 makes several changes to Minnesota .8taigte, , section 15132 regarding the sale of certain cannabihoid (CBD) products. The changes. took effe ct.cin jaly I. The new law amends the scope of sale of any product -that contains cannabinoids extracted from hemp and that is an edible c annabinoid product or is intended for. human or animal consumption. Pfevi6us law authorized a product containing norift4b*qatin--g cannabinoids to be sold, but the authority to sell edible CBD product's was unclearr. The -new -law expands the authority to: include nonintoxicatin& cannabinoids, including edible- canuabinoid products, provided they do -flot,contain moreAhzin. 0.3%. of any THC. An edible -dannabinold product alsocannot exceed more than five milligrams of any THC in a single serving,. or more than..a total of W-milligrams of any T14C per package. f"I", Under the law, where are edible cannabinoids allowed to be sold? A2. The new law -does not limit *here edible. cannabinoids products may be sold. However, certain businesses by their tature maybe bq, limited on their ability to.sell the products. Liquor stores,.for example, are limited to selling -specific -items set by Minnesota S section 340A_-4_iZ subd. 14. The Alcohol and Gambling.Enforeement Division (AGE) of the Minnesota Dep4rtmeotof.PubRq Safetyhasadvis6d*t-he1eagw of Minnesota Cities that products containing-CBD,`hemp, or THC- are. not. allowed for sale at.an exclusive liquor store. In addition, AGE has informed LMC that a liquor store's -Ability to -sell food pursuant to Minnesota -Statute- section 340A.412 -amb-d. 14 (b), does not include.edib. lie cgrinabinoid products. QI Could my city's municipal liquor store sell the edible cannabinoid products? A3. Liquor stores- are limited io,sellingspeciheitems set by Minnesota Statute section. subd. 1.4, . The Alcohol and Gambling Zhfutcement-Division (AGE) of the Minnesota Department of Public Safety has advised the League of Wpfieso a. Cities that at products containing.-M., hemp, or THC are. not allowed for sale at- an exclusive liquor store. AGI.has. advised LMC that CBD, hemp, or THC -infused beverages are not-intefided to be miied. with alcoholic bevtrag6s and are not considered soft drinks. In addition,: AGE has infofined LMC `that aliquot.s.tore's ability to. sell food pursuant to Minnesota Statute-, section34OA-412).subd-14. (b), does not include edible canna . binoid.proditem. Dire to this guidance, LMC recommends i -cities k6fi-aih from selling such products. at their ihtffiiciA pal liquor stores. Q4. What regulations are in place for packaging for edible cannabinoids? A4. Along with tegfing.andlabeling requirements,. an edible cannabinoid mustrneet several requirements; includingthat it: • Not bear thelikeness or contain cartoon -like: characteristics. • Notbe modeled after a b=d.of products primarily consumed.or marketed to children. • Not be made* by. applying an extracted or concentrated hemp -derived cannabinoid to a commerciaLlly ava lable candy.or snack faod.item: • May not contain aningredient; other than a hemp -derived cannabinoid, that is not approved by the federal Food and Drug Administration. • May. -.not be packaged n a.way that resembles. an y commercially available food product. • Must not bid, packaged in a container that could reasonably mislead any person to believe that it contains anything other than an-edlble cannabinoid product. Q5.Are these products legal under federal regulations? A5. The ZQ18 Farris Bill made several changes to federal lave *related to hemp. Under the law,. hemp was removed from the controlled substance act, including. derivates, extracts, and cannabinoids, provided those substances contained less than 0.3%.THC concentration. -If a product contains more than 0.S% THC*.it is considered rtarijuana. and not hemp. Pursuant to the Farm Bill, Minnesota haslegalzed the production of hemp through its industrial hemp program. Although hemp extracts that. meet the mandated THC level are no longer controlled substances, the Farm Bill did not alter the. authority of other federal agencies, including the Food and Drug Administration (FDA) from regulating hemp and hemp byproducts. Under current FDA regulations, CBD or'THC products. cannotbe sold as a dietary supplement and cannot be added to food for humans or animals: Q6. Where do the edible cannabinoid products come f ro m? A6. Under current law, these products can be manufactured in Minnesota but..also imported. from other states. Growing hemp in Minnesota is governed by the Department of Agriculture,. though the-UDA Kemp Program does not regulate cannabis extracts, development and. manufacturing of cannabis extracts., or the.retail and marketing -of cannabinoid products. Cities may want to consider zoning implications for manufacturing -and production of cannabinoid products.. Q7. How are the new products taxed? A7. It is the understanding of LMC that edible cannabinoid products legalized under the: new law are subject -to Minnesota -sales tax. LMC is waiting for more.guidance from the Minnesota Department -of Revenue to determine if any exemptions apply. The new law does not:authorize cities to tax the products in their communities., however1MC is waiting on more information as to whether the -products would. be subject to a local food aiid beverage tax. Return to. top-QLwa. Enforcement and pub.li.c safety Q8. How is the *new law enforced? A8. The Minnesota Board of Pharmacy has regulatory autiority over drug products that are .implicitly or explicitly intended foxhuman or animal consumption. This includes products regulated in the new law. If a product does not meet all the requirements of the new law, the product. may be considered mis randed or adulterated. The -sale of a misbranded or adulterated product is -a-misdemeanor-level crime which is to be prosecuted by the county_ a torn . where*the offense took place. Questions regarding-whefher.a specifla product deviates from the%requiremetts of the new law should be forwarded tothe Minnesota Board of Pharmacy_. The Board of.Pharmacy has provided a.form to file com I in --against licensed oi- unlicensed cannabis businesses (pdf). and -an pectiori c eckd st to assist law enforcement (pdf - In addition, the new law limits the sale of *CBD -and*THC products to persons. over the age of 21. The sale.-of-CBD and `I'HC products to a person:under the age of 21 is a _misdemeanor -level cr_ ime which is to be prosecuted by the coun attorne , where the offense took: -place. Cities will need to. work. with local law enforcement and the county attorney to determine how to enforee this requirement. If cities desire. to further regulate CBD and THC products within their jurisdiction, they will need to work with their city attorney to adopt.local regulations. The League is working with the Minnesota Chiefs of Police Association. and Minnesota Sheriff's Association to understand potential implications for.law enforcement and identify additional questions- pertaining to the enforcement of these new products along with employment related questions. for law enforcement, Q9. What are penalties for someone who violates? A9R A violation of the. new law is a misdemeanor, In most cases; the..county attorney_ is charged With prosecuting these uiolatians. Q10. How do our officers determine if a driver is under the influence of these new products? A10. The new law does not change the current rules relating to driv'ing.under the influence of a cannabinoid.. Officers should use the same process to determine .sobriety as they have used if they suspected a driver was under the. influence.-ofmarijuana: Qll. Could cities prohibit: the.. sale of edible cannabinoids entirely? :All. In.mQst states that have adopted adult us.e:cannabis legislationjocal governments are given the option to either opt -In -or opt -out of cannabis in.their c.Qmmunities.. This framework helps to maintain local control of the cannabis issue. The new*Minnesota law does.not provide such an. option. Therefore; the new law makes the new cann4binoid products legal in every city throughout the state. Without a clear opt --out option, the: question*as'to whether a city could completely prohibit the sale -of edible cannabinoids is an open question. One potential approach would be to follow the Minnesota House Research's. suggestion to LMC that it maybe possible for a city to classify cannabis edibles containing THC -as an intoxicating cannabinoid and therefore would not be allowed under the. ri.ew law Arguments have also been made that.a city may able to prohibit the .sale of edible cannabinoids products. under its authority to provide for the health safety and. welfare of its: comitrunity. If a city were to attemptto prohibit -edible cannabinoids under this authority, it would ne.ed to work with its city attorney. to develop f`indings'that clearly show the dangers of edible.cannabinaidsgroducts and the. need to prohibit the-prditcts.. Cities: may wantto look at communities that have banned. the sale of flavored tobacco products as a model for such prohibitions. Q12. Is our city required to adopt regulations under the: new law? AI2. The new law does.,i�ot require cities to -take action in regulating the -new products. Ifa city chooses not to adopt additional. regulations, the sale and -production of these new products will be. -governed by the clWs existing zoning and other regulations. In addition, the new law gives locallaw enforcement powerto enforce-viol4tioils as it misdemeanor.. City licensing Q13. What authority do cities have regarding licensing the sale of edible cannabinoids? A13. A city's authority to license comes from either a specific grant of authority from the. Legislature or from its authority to provide for its general. health, safety; and welfare. When a city official proposes local licensing of any activity or occupation, 'a city first must determine whether the state -already. licenses that activity and, if so., whether the:law forbids or allaws.a local license.`` Q14. What types of restrictions should we consider in regulating cannabinoids? A14.'If a city decides torre.gulate.edible cannabinoids or other cannabinoid products; the: types of-regulations'cart vary. ftom city*to city. Some items- a, City may consider when drafting these regulations .include: • What areas of the city edible cannabinoids maybe sold or manufactured or distributed. • What business should be allowed to sell edible carinabinoids. Age of person selling the product. • Location of products within.retail establishment. Pop-up sales. ■ Transient merchants. • Mending machines. • Distance from other` uses (schools, parks, -residential; etc). •. Distance.1etween retailers. • Delivery services. Online sales. • Limitnumber of establishments within -the city. Age --verification. Yours. Background checks. Q1.5. Can a city add edible cannabinoid products to its existing tobacco licensing program? A15. The requirements and legal authority for tobacco products are unique to. those products. While -some aspects of tobacco regulations maybe used when regulating tdible cannabinoid products, -the products, and the -authority to regulate them are quite different..:If a city chooses to lice -me edible cannabinoid sellers, .it would be best to. do so separately. -from tobacco regulations or be sure to carefully draft -new language in art existing ordinance that follows -the unique requirements of the new law: Q161: Ifour .city licenses edible cannabinoid products, how much can we charge as a license fee? A16. Whenfsetting fees, cities should consider a number of things. First, .cities should not -view. municipal -licensing. -as a significant source of revenue. License fees must. approximate the direct and' direct.eosts associated with issuing the license and policing the licensed activities. License fees that significantly exceed these costs are cons idered*uo6uthorized taxes. This means a license fee: Wray not be so high as to be prohibitive or produce.any substantial revenue beyond the actual* cost to issue the licenseand to supervise, inspect; and regulate the licensed business. Return to top of page Zoning QW.What authority do cities have regarding zoning for where the products could be sold? A17. Nothing in the new.law limits a eity's zoning authority related to CBI)acid THC products: No Minnesota court has -interpreted the limits on zoning authority in this- context; but at least one .court in another state has ruled that.A state law related to cannabis did "not nullify a municipality's 'inherent aut] OO ity-to.regulate land. use wider [state] law so long as the municipality does -not prohibit or -penalize all medical marijuana cultivation .... and so long -as. the -municipality does not -impose .regulations that are unreasonable and inconsistent with regulations esfiabl shed by stag law" DeRuiteT ti T. wn$hip o, B; on; .505 Mich. 130, 949 N W.2d 9i .(2020). t. is. unknown if a. Minnesota court. would come to. the same conclusion. Cities should be- thoughtful: and intentional about how.zoning regulations related to cannabinoid products affect their communities and work with their city attorneyto.determine what, if any, zoning restrictions should be -.adopted. Cities will need to. consider na only zoning regulations related to .retail sales of M15 and THC products.but also the -manufacturing and production of the products within the -city'. Unless specifically differentiated in a zor iing. ordinancei a city's: general manufacturing and production zoning:provisions will likely apply to CBD and THC*pr'oduction as we11. Q18. Could cities adopt a moratorium. prohibiting*the sale, manufacturing or, distribution of cannabino ds so it can study the issue? A18,A.moratorium is a tool .cities- use. td.pause specific -uses in order that the city may study the issue -in aLnticipation of future regulations. A moratorium is.limitedto a period of one year. To adopt a.moratorium, a city must.follow the procedures in, Minnesota Statute, section 4&2.35S,, subd. . The statute specifies -the specific instances -where a city may adopt a moratorium. If a city were to adopt a moratorium prohibiting the sale. or manufacturing. of ediblke cannabinoid products,:ifshouldwork with its city -attorney to clearly state the legal justification for the moratorium. If a city does adopt a moratorium, it must actually review and study the issue or meet one of the other-regwrements of the statute: More information on moratoriums can be found in the LMC Zoning Guide for Cities. Return to-toR_QLg_4gP, City employmentand personnel issues Q19. Does the new Minn-esota legal ca:nnabin.o.id law change anyth .ng about how we do. drug testing for CDL holders' A14..No, cities with :positions requiring an.employee M hold a commercial driver's license (CDL) will recall these positions .are*regulated by federal Iaw, .and those regulations are supervised -by the Federal:Departrrient of Transportation (D.O.T). Federal law preempts state law related to cannabinoid use; in fact the DOT states in its DOT recreational Marijuana Notice it does not authorize the Use-:nfSchedule I drugs, including marijixaria, for any reason. As .s result, cities should continue to follow their drug -testing procedures related to -CDT holders and. may enforce prohibitions agaiin_d any use of cannabinoids.for CDLholders, regardless of:state.law protections. Although there is a legal.difference. between marijuana and hemp, DOT warns CDL drivers the hemp products -could lead to a positive marijuana test; therefore CDL holders are ultimately responsible *ifthose products lead to a positive marijuana test. Cities can find more information cin.the effects of tj.e new law on drug testing in the LMC Drug and Alcohol Testing Toolltit,:starting on page. 22. Q20. Does the new law change anything related to employees who carry a firearm? t, A20. No. Public safety employees who carry a firearm cannoTIAW'fully Use marijuana. under federal law. Federal lave pr0hibits.ci0es from providing firearms or ammunition to an employee it knows or has reason to think:ia using marijuana.:Although there is a.legal difference, between marijuana products. and hemp praducts,-itis the. understanding of LMC ihatit may nofbe possible to differentiate the products in a drug test. Officers shp4ld be mindf d pf any substance they ingest because they are ultimately responsible if those. products lead to a positive marijuana test. Q21. Are there now *"*acceptable" limits .of cannabinoids for non-C.DL employees for purposes of d*r.u.g test ng at. work (i.e., those we test u n d e r state drug and alcohol testing law)? A2I. There;isn't a.clear answer, since THC can -remain in the body -for several weeks after usage (arid long after any intoxicating or impairing effects have since disappeared),. so positive. test. results may not indicate any wrongdoing on. the employee's part andmay just be evidence.of an employee's lawful -actions done outside of work. The League:of*Minnesota Cities recommends_ that employers thoroughly document any suspicions of an employee being under the influence and to work. closely with their city attorney(s) before taking any action against the.employee. Wlth:this new area of law, a city may want to avoid relying on the results of traditional tests. that detect -metabolites remaining in a person's body (for many days or weeks *after using marauana) and instead f6cus on implementing reasonable -suspicion drug -testing protocols to detect.. Marijuana -intoxication based -on behavioral observations; Keep in mind, :employers may prohibit all employees from;�eing under the influence while the employee is working. That would include employeeswho:operate vehicles. Employers may want to revise their policies to clarify that employees still may not be under the influence* of cannabis,. legal or otherwise, while. at work. The. -National Drug -Free Workplace Alliance Qffers a toolkit to help employers work through the complex and.confusing issue of marijuana and the workplace. Q22. Can we still prohibit employees f rom being under the influence of cannabinoids while at work? Does the League have a model policy with updated language? A22. Yes, einplgyers. can continue to prohibit employees from being under the influence of cannabinoid products, including edibles, while -at wpik.. Although employers' obligations and. restrictions related to marijuana use vary widely across the states, there is no law we are aware of that requires employers to allow cannabinoid use durring work hours or to allow a'n employee to report to wotk:impaired. Thus, employers may continue to maintain drug -free policies at the workplace and discipline employees who use cannabinoids during working. hours or who report to work. impaired: In fact,: -one .could argue that under the Occupational Safety an Health Administration's _(Q ) General .Duty„ Clause of the OceupatigUal..Safety and Health Act, employers are. required to furnish a wworkplace free from .recognized hazards that. " are.likely to cause serious:physical*harm. This provision of the -Act is typically used in accident c4ses.where toxicology screens are positive. Ogtlks new: -.electronic recordkeeping rule, clarified on 1111/2019; states "If the employer chooses to use drug testing to investigate the incident,. the employer should test all employees Whose conduct oould have.eootributed to the: incident; notjust�employees.who reported injuries, 'with respect to using drug testing to. evaluate the root cause of a workplace incident that harined:ox could have. harnied*employees. Thus, -if a city has a non -DOT drug -testing policy in place, a protocol -following this &Id;Lnce is important. The League. has a Non -DOT,. g and Alcohol Testi g.,and Drug -Free Workplace Act model poi_ icv-tliathas been updated initially, and will be eontinuallyupdated as the League learns more. Q23. can employees be in possession of edibles or other cannabino.id products while at work? A23. Cities may enaictpolicies projaitingerhployees-from bringing earinabinoid products, including edibles, to work. Q24.. De we need to change anything- in our. collective b-argaining agroement with regard to disc-pline of employees who use cannabinoid products? A24..No, but ensure your eity's: drug -testing policy has been updated and your supervisors are trained on the. behavioral signs and symptoms associated with impairment, -Of course,. if the collective bargaining agreement ncludes.language that policychangesneectto be negotiated, then there would need to be a.meeting with -the union if the. city's poliop changes.. Q25. Can employees use cannabinoid products off- d:uty? A25. It depends. Eertain-types of 6Mployees such as:law enforcezr*ent officers and other employees issuedrearms and ammunition -as part of their jobs, are subject to regulations from the federal Bureau ofAlcohol� Tobacco and Firearms, which prohibits hrearms and ammunitions to be given to individuals+,who do or arm believed to use 'illegal drugs. As rioted above, city positions required to hold a commercial driver's license are subject. to Department. of Transportation regulations and are not authorized for the use-of.Schedule I drugs,.including marijuana, for any reason.. Thus, these types of employees could .bs-prevented from using cannabinoid products both.on and off duty: Other employees who are. -not subject to. -that or other federal regulations would likely be- able to use- cannabinoid products'while:they are off duty, as there is nothing under Minnesota law which prohibits certain. classes of employees from using cannabinoid products. off*duty, as long.as.they are not impaired at work. If there are:any questions regarding whether an employee- could be prevented from using cannabinoid products while off -duty due to federal regulations,. please consult your city attorney -before any action is taken. Q26. How does this impact the requirements of the Drug -Free Workplace Act? A26. It does not. The Drug. -Free Workplace:Act of.198$ (DFWA) requires federal grantees and contractors to implement a drag -free workplace policy and establish a drug -free awareness program is.a precondition.for receiving a federtil grant or a.conitract, IJowever, the DFWA does not r=equire:covered employers:to. test employees. for drugs-orterminate. them for drug -related violations;.*so the new -Minnesota state law does not.ixnpact.the DFWA directly.. Minnesota law allows employers to.pxohibit employees from bringin legal cannabinoid.*products to work and permits employers to prohibit employees .from being under the influence while at work. It would be -best practice for cities with drug-free.work policies to keep those in effect. If a city wishe;& to do so, it can update its policytb include lawful cannabinoid products-witbin its scope; . Q27. Should my city still continue to include marijuana as a pre -employment panel screen for my Non -DOT employees? A . 27. That is for -each city to decide. for itself:. Bedause turrently, there are no devices or blood tests available that measure m4rijii4na impairu*9t, and bec.auso. a best practice apprbAch for Non -DOT marijuana drug testing -is -t*d*base testing on behavioral observations, some employers are explud-m-ig- marijuana. from their*pre-pmpIpymentNbn-D-0T drug screens. Some states even prohibit -an employer empld from refusingto hire -an applicatitsimply becausp,of a positive drug test, O but Minnesota is eurrently:not one ofthese states atthis time. Any city that chooses to continue to test for THC for Non -DOT positions must bezwafd of the f4# that -these: substances may remain in an indfviduaPs system for weeks after the impairing effect of the drug has worn off. Thus) itwill be,difficult; if notimpossible, to determine whether -the: positive test indicates usage in violation of the cityV.drvg-fte.e:WqrWace -policy or indicates lawful usage during an employee's -time -off -from work. Cities should consult with their pity attorneys prior to taking any action -based upon a positive drug.test.for THC. Return to -top Af-page Your LMC Resource Research & Information. Service -A-aff members are ready to help you apply their broad knowledge.tQthe 'lss.ues.yo&r.e dealing.withtoday. Access onfin-e-form to submit a question, or call us'. (651) 281-1.200 or (800) 925-1122 City. -of Gem Lalte, MN: Resolution .No. 2022-0017 August 1G; 2022 A RESOLUTION AUTHORIZING THE CITY TREASURER TO DISTRIBUTE A. PORTION OF THE CHARITABLE.GAMBLING. FUNDS.: TO THE'W1QTE BEAR LAKE AREA �OOD.SHEL . WHEREAS; the :City of Geni Lake participates in the distribdtiba.of dharitalsle-gambling funds received from the Country Lounge W FREA$, the.City of Gem bake distributes thoe.-rund$.to local 50.1{e)(3}.tax-exempt organi. jQpa WHEREAS, the City of.Gem'Lake City Council suggested a donation at their July 19, 2022 meeting.in support of the White Bear Lake Area Food Shelf. NOW, THEREFORE BE IT RESOLVED, by the City of Gein Lake, Minnesota, the City -Treasurer is authorized to..send $ 1,000,00 to support the White. Bear Lake.Area Fond Shelf fdr the month of August 2022. The motion for adoption of the foregoing Resolution Was duly .introduced. by Councilmember and seconded by Councilmember and upon vote in, taken .thereon, the resolution passed. with a vote.of .in favor and against. ATTEST 1, Melissa Lawrence, the duly qualified Acting:City-Cleck of the City of Gerri Lake; County of Ramsey, State of Mittnosota, do hemby certify that the.foregoitig Resdiatioh is-4-true and accurate representation .of action talked by the City Council of -the City of Gem.Lako. on. the date. first written. August 16, 2022 Melissa. Lawrence, Acting City Clerk. Date. City of Geat .Lake, MN Resolution M. 2022-0018 August 16, 2022 .A. RESOLUTION ACITHORtZING THE CITY TREASURER TO DISTRIBUTE A PORTION OF 'TILE CHARITABLE GAMBLING FUNDS TO THE WHITE BEAR LAKE AREA FOOD SHELF.. WHEREAS, the City nfGem Lake participaies1ni the distribution of charitable gtimbling funds:received from the Co1mb-i-Lounge WHEREAS, the.0ty. OPQpni Like distributes these funds to local 501(0)(3) tax-q*mpt ptganizations: WHEREAS, the. City of Gem*Lako City Council suggested. a .donation 4--tbeir July.19, 2022.meeting in. support -of Willow Lade Elementary: NOW, THEREFORE BE 1T. RESO.LVED, by the City of Getn'Lake; Min nesoti,'the•City Treasurer is authorized to send $500.00 to support Willow Lane Elementary for the month of August 2022. The. motion for adoption of the foregoing Resolution was: duty.. introduced by Co.uneilmember and seconded by Councilmember , and. upon. vote being taken thereon, the, resolution passed with a vote of in favor and against.. ATTEST 1, Melissa Lawrence, theAuly qualified Acting City Clerk of the City of Gem Lake, County of Rimsey, State -of Minnesota, do hereby certify that the.forego.ing Resolution is ttrue and accurate repres®ntation ofaction taken by the City Council of the City of Gem Lake on the date first written. August 16, 2022 Melissa Lawrence, Acting City Clerk Date I I Kelly & Lemmons, PA, ATTORNEYS AT LAW • Patrick J. Kelly. picelly@kel lyandlemmons.coin Licensed in M-Innesola.and Wisconsin July 28, 20.22 Mr. Kevin Watson sent via. i X.. rr ail:a)4 e-mail Vadnais Heights City Administrator 800' East:County. Road E Vadnais Heights,;MN 55127 Re. Utility Service Connection Agreement Between Vadnais Heights find Gem Lake.— V llas of Gem Lake Dear Mr. Watson: i.hope you are egjoying your sumnier. Thank you,:in advance, for reviewing Gem Lake's proposal regarding the 2018 Utility Service Connection Agreement between Vadnais Heights and Gem Lake ("2018 Agreement"). I am requesting a sit down with you of youe r conveh nce .to discass the 2018 Agreement. The intent behind* the: agree Xnent was that. Villas of Gem Lake residents would have individual meter readings and be Billed at rates equivalent to .Vadnais Heights residents, along with a reasonable fee or "markup". Currently, based on the one main meter reading .for the.villas, Gerp Lake is. paying: the majority of its water bill at the highest rate. Vadnais l-fei'ghts.' 2022 Fee Schedule fists the *following fees for each tier ofWater usage: 0 - 1.2,000.gallons of water--:$1.32 per 1,000 gallons per quarter 12, .01 25,060 gallons --of water — $2.20. per 1,006 gallons per. quarter Over 25;0OO..gaIIbns*of water— $3:83 per 1,000 gall6ht per quarter. Over. 50,000 gallons of water, XLL irrigation water use — $5.29 Per.1,600 gallons :per quarter 2022 Fee -Schedule (attached). A good solution to this issue -would be straiglit billing, wherein Villas of Gem Lake residents are 2350 WYCLIFF STREET SUITE•200 . SAINT PAUL, MINNESOTA 55114 TELEPHONE 651 -224-3781.. FACSIMILE 65.1-223-8019 ,%vw w.kellyendlem m ans. ca m billed akin to Vadnais Heights residents, along. with --a reasorrable. fee or "markup". The basis for th`is.proposal is the fairness doctrine. Gem Lake proposes -two options: { Option one: Gem Lake [seeps the current meters and. conducts meter.- readings (see attached :PowerPoint), then. bills accordifrg to.the Vadnais Heights tier structure,:meaning each of the 30 Villas at Gem Lake residences -are billed individually based on the. tier structure. in the current Vadnais Heights Fee: Schedule, along. with..a 25% . n arkiup. The bills for the 30 Gem Lake residences would arm include.a 4% infrastructure fee,.whiah will be designated.to the City of Gem Lake water system find for fueturuse for operation, mairitdoance, and repairs of the system, Option.two: Gem Lake installs new Vadnais Heights meters- (because -Gem Lake. uses a different. brand ineter that Vadnais Heights cantiat read),. which GefiTake residents pay for (approximately $500 each). GemLake bills- according to the Vadnais Heights tier..structure, meaning each of the 30 Villas at Gem..Lake residences are billed individually based Oft the tier structure in the current Vadnais Heights Fee. Schedule,. along with a:250 markup. The bills for. the: 30 Gem Lake residences w9u* Id also include a 40W infrastructur.e'fee which will be designated to the Cky:of Gem Lake water system fund for future use for operatoir,,maintenance,.and repairs of the system. Under either -option, a separafe rate; Qr..fee- schedule for'tiie 30 GenY Lake 'residences 'is not necessary. I.appreciate your assistance. and. -help. If you have any..:questions .please. call. Respedfully.yQurs,'' KELLY & LEMMON99`7 A- ISI Paleick`J`'Kelly Patrick 1 k61ly = '' PJK/rns .Encs. 'CC. Mayor Gretchen Artig-Syvomley via e-mail (w/acts.) IYlohssa Lawrence via email (w/atts,) ..23.5Q WYCLIFF STREET- SUITE 200 • SAVVY PAUL, IVIINNE. $OT'A 55114 Tg1 FE t4ONE:6S1-224-3781 FACSIMILE G51223r8019 wtvw:IceIlvan dlemmoos eOW n vJ L u R C TJ pp _ J r7. Cv u, y - p u F' v �. G C.� �. v. m �., W ro U � y� G v u � � � C •' V O �� G j .y u � F o m q C w y �• y G N n N c Q a'. z c c ---`°i, --`°.i -0 —r� 'v a c �. -- •- � Q r� nu - x D � � - scv. .� c 2 '2 a!C 2o 'o o U v Z 0 0 0 0. a R. C, 0.e 0. L 0. .0. y.V C J L .GU !-' z U C fq a '0. � .a C C .r '? >` �O '1� �� N O 1� C. C� r .O. wf T O p 8 o 0 '0 o p O 6 O C N O M O 1- t^ .:� a. .!C N Q `� h n f•1 i+t N, OC N 1A '� 0` 'O h A 00 C .N 'N 4 'Wl P •VWI• .N 'rl h Y. Vi 1` .ry '?. �" 1 V1 O N H H V{ M N M / (`•1 'h V.1 O :M MI N. ;O .H .V7 M y� a 4 ij c 0 0 n Wp� c W n F v a 4 Ell _6 an :mac ro P 3U: Z 7_ Z L ,t. m •� o U Itz . _n v c x n: a ar •� =a ii a a n y n? .ten tG n ^"''p O O 0 Claims For Payment NVIV&SIarcWITINWAIR= Period Ending: 8/16/2022 Signatures Approving Claims Date of Approval Gretchen Artig-Swomley, Mayor Ben Johnson, Council Jim Lindner; Council Len C.acioppo; Council. Laurel Amlee, Council Tom Kelly, Treasurer Fund Totals $ Amount General Fund 36,619.35 Panes & Playgrounds 0.00 2004 Debt Service Fund 0,00 2006 Debt Service Fund 0;00 2015 Debt Service Fund 0.00 2018 Debt Service Fund 0,00 Improvement Fund 0,00 Scheun.eman Road Improvements 0.00 Hoffman Road Improvements no Sewer Fund 4,397.62 Water Fund 4,744.20 lnvestrnent Trust Fund 0.00 Total All Funds 4.5,761,37 Claims for Payment Check Numbers 119.12.through 11936 8115122 at 15:19,03.15 City of Gem Lake Check Register - Prepaid Checks For the Period From AuEt 1, 2022 to Aug 31, 2022 Finer Criteria includes: Report order is by Check Number. Check.# OaEe Payee Amount • 1 1.817V 8/15/.22 T.A. Schifsky&.Sons, Inc. -3,462.25 11686 8/5/22 Melissa Lawrence 1,685.85. 0012 912 8/16l22 City of Roseville 811.87 11913 8/16/22 .city of. White Bear Lake 10,098.�j4 11914 8fIWZ Corporate Mechanical 2;396.00 11915 8116/22 GD6 Low •270.60 11916 8116/22. CINTAS 26.10 0#17 8/16/22 JAN-PRO CLEANING SYSTEMS 225,00 11918 8116122 Kelly & Lemmons, PA 4,545.00 1.1219 8/16/22 League of Minnesota..Cities. 73.00 91920 W6/22 Melissa Lawrence 11.94 11921 8J16122 Metropolitan Council -3,548.93 ' 11922 8/16/22 MMKR 4,506.00 11923 8/16/22 Nykanen Inspections LC .555.20 11924 8/16/22 Gopher-5tate:One. Call 27.00 11925 8/16/22 Prs'ss Publicattons 95.34 11926 8/16/22 •SEH 3;57.1;56 11 W 8/18/22: T.A. Sc'hifsky & Soft, 1hc. 3,462.25 '[1928 8i16/22 VOID 11929 8/18/22 Trade Press Inc 228.00 -11030 8116/22 TKDA 2,241.56 1*1.931 8/16/22 City of Vadnais Heights 5;510.98. 11932 8/16/22 Waste Management of WI -MN 675.36 1'1933 .8/16/22 White Bear Township 4,333.00 11934 8/16/22. Willow Lane Elementary 500.00 11935 8/16/22 White Bear Lake Emergency Food Shelf 1,000.00 11936 8/1.6/22 Xcel..Energy. 817:50. Total 47,447.32 45-j <} (A{. s + Page: 1 c� w co 0o m m oo w m f p' i � . O W 07 D1 CD 07 CD Im Ci7 O N :-.. 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Q Q N N N N N �. tD � 3 N -] 0_ N N N C) .Wl.a ^yR h n�u z.i_ D� D x z m xco r- an a M -c C m CC. z. r O o0o QC w:C n D. m N o �.� w.G� Mr "� D:p ° �. �N C mew mm @ m �N w NN m 7 amME M CO �r.3.. Fj � N ur n. for n ns �m ti �.o D m z�. m ��0 � m.CD � G�— `G7 Mm r,N„ < L➢ m .D a: Z. N. w m'U z m m m N D � = — n C m cn .Nr- A mm CDZ1Cn 0 -1 p w'...Crn. m tnm �' 7 a D w .� �c. D r c/) 07 C o-4 C— d n O. G) ro ;0 CC) m to. r m m C') CD m �. �'. o 51 rm � o-r m: y D `Q ITj C D w ? � -4 w. N m �. A N Q Tl N O a°u � � N a N. tD C7 [D i7 WN W. W qLn C] m m 00. Ln. N W. -4.01 CD to C7 O �d tp WD 'J -4 N s O Wn. cn to W .m d p N N 4o O p tb . D7 0 d m WM 0 d N V00 �O W �.AW C57 .ia O C7 Oa 0 4. U C71. W. 4 ti7 .tb ;i V C7 fD a ca N. 1 O D 01 (n tWD.. Ql �. O O -. V -4 A •.l. .0 cn �n Wn a o w o tsi o en an O IV iD O C7 w O. CJ Oa 67. . A Q o .A .O d w o. d w.. .4 w A R w CITY OF GEM LAKE. CASOA"INVESTMENT BALANCE STATEMENT As of 071=022 Deal Year: 262 Cash and Investments Balancc. Balance Winid-of Fund 7/1/2022 Recelpts DfsbuoQmonts 713217.022 General Fund $337;708.65 $87,002,63 $1..6,2.11,17 $348;500.1.1 Parks and Playgrounds. $.58;846.68 $0.00 $O.QO .$58,840t68` 2004 Debt Service Fund: $0.00. .$0.00 $0,00 $0.0o, 2006 Debt Service Fund $0.00 $0.00 2007 Capital Improvement Bonds $64;03.7.08 $41,038.Q1 $5,346.25- $99,728.84 2018 Improvement Bonds $45969.45 $32,325." $.9,850.00 $68,445.44 rrnprovement.Fund $337:531.04 $19;281.44 $1 t,097.36. $345,715.12 Citj 'Hall Construction $0.00 $0,00 $0.00: $0.00 Sc'heuneman Road. Improvemetns $0,00 $0.00 $0.00 $0.00 Hoffinan Road Improvements $0,00 $6.00 $9.00 $0.00 Sewer Enterprise Fund . •$489,277.00 $14;.123:48 ;$10,962,76* $485,437.72 Water Enterprise Fund (pWo".52) $5,404.91 $6.06 .($96,989.61). Investment Trust.FwW $0r.00 $292.24 $0.04 $292.24 -$I;229,969.38 .$ I99,468.70 $1.10,467,54 $1.,300,970.54 Premier Checking Premier CD's UBS..lnvestinents UBS. Morley Market Gambling Fund Balance $715,585.87 $0.00 -$592,000AQ $2;342.11. $1,309,9:18.00 BALANCE STATEMENT OF'.GAMBLING FUNDS Balance B&lance 7/1/2022 Receipts. Disbursements 7/3=022 662.7 1,500.00 .$7,72r1.37 WiTURE PURCH JULY CASH & 1NVESTMENTS INT. N AS OF ACCRUED INTEREST NAME Cusip 0 YIELD RATE DAYS. 713 M22_ INTEREST DATE PREMIER DANK C14K GENERAL FUND 6005590 0.05% 0.05% 30' $715.585.81 $29.82 hionthly, UBS MMKT UBS BANK USA DEP 12$69CN93 0.05% 0.0514 30 $2,332.13 $0.10 Monthly 4120124 4301i9 UBS Co.. COMENITY CAP BANK 20033AU95 2.75% 2,75% 1828 *3117.000.00 $1,608.75 Aionlhly 2112125 2112121 UBS CD TEXAS EXCHANGE BANK 88241TKDI 0.50% 0.5m 1461. $245.000.00 $1.225.00 hionlhty 411.1J25 4111122 UBS CO. GOLOMAN SACHS 38149M4U4 2.55% 2.65% 1097 $85,000.00 $2,252.50 Monthly 811129 1115120 USS BOND NYCITY.TRANSI1I01.1AL A.UTH REV 64971X04 2.02% 3.73% 2022 $145.000.00 $5408.50 2H & 811 1.34% 1.62% 1,211 $1,209.918.00 $10,524.66 RE VENIIF.S Property Taxes Current Property Taxes Delinq Property Taxes Fiscal Disparity Taxes Licenses and Pet•ntits General Business Licenses On -Sale Liquor Liccnse Other Permits Tobacco License Charitable Gambiing License. Contractor License Building Permits Plumbing Permits Mechanical Permits Electrical Permits NPDES Permit Building Plan Review Fire Marshall Inspection Septic Inspection Fee State Permit Charge Sewer Contractor License Rental Licensing Dog Licenses Intergovernmental Revenues County Grants S. Aids SCORE Recycling Grant Coble TV Franchise Fees .6P RES FUNDS SMALL CITIES AID Charges for Services Planning Fees Plan Review 2(tnillg Chalges Investment Adinin Charge Credit Card Rebates. Fines and Forfeits Fines MisCelia neoits Interest Earnings Miscellaneous. Facility Rett W City cf Gem Lake GENERAL. FUND Budgeted Statement or Revenues and.Cxpenditures For (lie Seven Months Et>dingJuly31.2022 CitrrMntl, Curr Mn t CurtMalh 2022 YM )TD Budget Ac ua Variance m plete Budget Actual. V ra iince Y Complete S .38;350;17 S 505.28 32.454.99 15.37 S 460,202.00 $ 236.616.29 .223,585.71 51,42 0.00 226.22 (226.22) 0.00 0.00 226.22. (226.22) .0.00 893.83 6,196.61 (3,2%.78) 692.59 10.726,00 6,19.0.6E 4,535.39 57.72 166,67 0.00 166.67 0,00 2,000.00 .2,550,00 (550.00) 127.50 333.33 .0.00 333.33 0.00 4,000.00 4,050.00 (50.60) 101.25 109.00 1,025.00 (925 00) 1,025,00 f OD.00 1.09.00 (230,06) 119.17 0:00 0.00 0.00 0.00 0.00 200.00 (200.00) 0.00 41.07 0.00 41.67 MG 500.00 0.00 500,00 0.00 116.67 1'00;0Q 16.67 85,71 1.400.00 1,200.00 200.00 8171 666.47 "U.20 (173.53) 126,03 8,000,00 10,037.50 (2,037.50) 125.47 83.33• .0,00 0,33 0:00 1,000.60 :640.00. 360:00 64.00 150.00 150.00 0.00• .10D.00 1,800,00 1;325;00 475,00 73.61 66.67 536.60 (469,93i) 804.90 80.100 823.00 (23.00) 102-88 8.33 0:00 8.33. 0,00 100.00 0.00 100.00 0.00. 0,00 0.00 0100 0.00 0.00 1,02128 (1,023.28) 0,00 208.33. 0.00 20833 6.00 .2,5.00.00 0;00 2,500.00 0.00 166.67 120.00 46.67 72,00 21000.60 3,620.00 (1,620.00) 18100 4.17 (59033) •5"4 90 (14,177.52) 50.00 79.76 M.76) 139.52 4.17 0.00 4.17 0,00 50.00 0.00 5..0.00 0.00. 33.33 0.00 93,33 6.00 400.00 400:00 0.60 100.00 12.50 30.00 (11.50) 240.00 150.00 335.60 (185.00) 223.33. 0.00 0.00 0100 0.00 0.00 11.94 (11.94) 0.00 83,33 0.00 6.33 0.00 I,0.00.00 0.00 1,000.00 0.00. 500.00 0.00 500.00 0,00 6,000.00. 9.909.70 (3,80930) I63.50 0,09 .27.320.56 (27,320.56)* 0.00 0.06 17,320156 (27;320.56). 0.00: 593.33 0.00 583.33• 0.00 7,000..00 0.00 7,000.00 0.00 16:67 0.90 IA07 0.00 200.00 1,275.00 (1,075,00). 637.50.. 25D.00 0.00 250.6P 0.00 3;00,00 0.00 3,000.00 6.00. 0.00 0,60 0.00 0.00. 0.06 100.00 (106,00) 0,00 16.67 0.00 16.67 0.00 200.00 206 61 (6.61). 1013E 0.00 45.3.7 (4537) 0.00 0.00 •217.36 (213:3.6) 0.00 41.67 102:50 (60.83) 246.00 500.00 397,10. 102.50 79.50 416.67 0.00 4:1,67 0.00 250.60 0.00 416.67 41,67 250.00 Total Revenues 43,606.50 41,091.61 1,614.89 EXPENDITURES City Conncil Wages and Salaries 625.00 .137.70 487.30 Eniployer Paid Payroll Taxes 47.83 0.00 47.83 Workers Compensation 0.00 .0.00 0.00 Adminstration 20.83 0.06 20.83. Conference Registrations 20.83 0.00 20.8.3 Council Contingency 666:6.7 8.00 658.67 Elections operating Supplies 12.50 AM 1.2.50. Contracted Services 666.67 1;166.00 (499.33) 0:.00 5,000:00 1,107.11 3;892.89 0.00 00.00 (0,02) 500.02 0.00 3;000:00 .4,087.65 (1,087.65) 96.30 523,278.00 315,276.67 208;001.93 22.03 7;500.00 3;737.70 3,76.7.30 0.00 .574.00 275.4D JM60 •0,00: 0.00 94.00 (84;0.0) 0.00 250:00 0.00 250,00 06 250.00 285.00 (35.00) 1.20 8,00.0.00 1,549.00 6,492.60 Q 00• 150,00 0.00 150.00 174.9.Q 8;000.00 3,498;00 4,502.00 22.14 (0.00) 136.26 60.25 49;84 4T98 0.00 0.00 114.00 18.85 6.1)0 43.73 aft =022 at 2:34 PM City of Gem Lake GENERAL FUND Budgeted Statement of Revenues and Txpenditures For the Seven Months Ending July 31, 2022 Curr_L I Curr Mmh Corr Idn(I BOW ct ta] Varinric 9i Comnlctc Iiud¢et Actual Varionee %fjjw Legal Notices l2,50 0.60 12:50 0.00 IS0.00 6.00 .150.00 0.00 Repairs .& Maint - C.ontractttril 209.33 0.00 208.33 0.00 2,500.00 1.400.42 1,099.58 56.01 Financial Administration Auditing Smices 059.33 0.00 958.33 0.06 1I,560,00 (500,00) 12,000.00. (4.35) Financial Services 2,583.33 11262.00 1.3.21.33 48.85 31;000,00. 15,99633. 15,063.27 •51,60 Credit CardFees 6,60 11.8.49 (I18.49) O.OU• 0.00 615,81 (615,81) 000 Computer Services 166.67 0.00 166.67 0.00 4000:00 .106.99 143.01 §2.85• Legal Services Prosecution 183.33 0.00 183.33 0.00 2,200,00 396.00 1,804.00. 19.00 Legal 3,750.00 4,024.38 (274.39) 107.32 45,000.00 25,425.01 19;574.99 56,50 Legal : Land Issues 291.67 0.0.0 291.67 0.00' 3,500.00 0,00 3,500.00 0.00 Clerld.Gencrill Government Wages and Salaries 2,383.33 5.3.49.75 (2,966:42) 224.47 29,600.00 2%357A6 .(757.86) .102.65 Workers Compensation 0.06 0:00 0.00 .0,00 0,00 123.00 (123..00) 0.00 [rnployer Paid Payroll Taxes 182.33 (379.34) 561 v (208,05). 2,188.06 415.13 .11772.47 .18.97 I' ERANatributions 178,75 323;07 (I44.32) 18034 2,145,00 1,968.90. 176,10' 91.79 Ilcaldi Insurance. 1;500.00 A00 1,500.00 0.00 18,000,00 0.00 •18,000.00 0.00 Workers Cwnpensatim 41.67 0.00 4E67 0,00 500.00 258.00 242;00: 51.60 Office Supplies 1¢667 440:73 .(274:06) 264.44 •2,000.00 �2;095.92 (95.92) 1Q4.80 Postage 12b B3 0,00 120.93 .0.00 1,450,00 0.00 1.450.00 0:00 Professional Services 13333 0.00 83.33 0.06 1,000.00 2,782.00 (1r782.00) 278-0 Administration 33 3 0.00 33.33 0.00. 400.0.0 0,00 400.00 O,t70 Miscellaneous 16;67 240.60 (223.33) 1440.00 20g,00 93616 (736.1.6) 468,08. Conference Registrations 125.00 0.00 125.60 0.00 000.00 35.00. 1,465.00 233 Web Site 160,00 0.00 100.04. 0.00 1.200,00 494.99 705.01 41,25 Mileage 12.50 .14:.14 (1,64) 113.12 150.00 143.41 6.53 9S;65 + Recording Secretary 0.1)0• S11.87 (511.97) 0.00 0.00 3.913.50 (3,A2334) 0.00 Computer Services. 416.67 .0.00 416:67 .0.00 5,000,00 0:00 5;000.00 6.60 Legal Notiee Publication :iK67• 0.00 66.67 0.00 800.0.0: 253.76 546.24 31.72 NrwsletterlPublic Relations 183;33 223.00 (44.67) 124.36. 2,20o 00 987.00 1,213,00 406 General Liability Tnsurance 20833 0.00 209.33 •0.00 2;500:06 1;726:00 774.00 09,04 Property Insuranca 0.00 0,00 0.00: 0,00 0.00 485.00 (485.00) 0.00 Vehicle Insurance 8.33 0:00 8.33 Ho 100.00 98.75 1,2S 98.75 Public Officials Liablitliv 12.50 0.00 12.50 .0.00 I50,00 124.00 26.00 8267 Recycling Collection 766.67 0,00 766.67 0.00 9.,200.00 4,727.52 4,472.48 M39 League of MN Cities 83.33 0.00 83:33 Q.00 1,000.00 763.00 23.7.00 7" RCLLG 29,17 6.0o 29.17 0:00 350,00. 0.00 350.00 0:00 Subscriptions .4,17 0.00 4.17 0.00 50.00 299.80 (240.90) 599.60 Planning and Zmting Professional Services 4.17 0.00 4.17 0.60 50,00 6.00 $0.00 0,00 Engineering 1,666.67 1,140.02 126.65 .92.40 20.000.00 12,1609,54 7;390.46 61.05 Administration 291.67 0.00 291.67 0,00 3;500.00 0.00 3,500.00 0.00 Zoning Adini n i st ration 166,67 0.00 166.67 0.00 2.000.66 4,531.70 (2,53330) 226.69 NPI3E,S Administration Saw 0:06 500.00 0,00 6,00000, 0.00 6.000.00 0.00 ]Tentage Hall Operating Supplies 25.00 0.00 25.00 0.00 300.00 0.00 300.00 0.00 Professional Services 250.00 0:00 256.00 0.00 3,000:00. 0.00 3.1090.00. 0.00 Contract Services 666.67 W.75 (280.68) 142.01 8.000.00 %5.313.23 2,626.77 157.1.7 Telephone 156.00 0.00 1.50.00 6.60 1'800.00 0.00 1,800.00 0.00. Property Insurance 125.00. 0.00. 125.00 0.00 100.00. 1,269.50 230.50 4-63 Electric Service 395.93 469.24 (73441) 118.54 44750.00 2,240.57 2;509.43. 47.17 Gas Service 125.00 28:49 96..51 22.79 1,500.00 1,494:35 SAS 95+6Z. W31crlSewcrUtilities 100.00 222.21 (122.21) 222.2.1 1;200.00 443.69 756.31 36.97 Repairs & Maint-Contractual 208.33 0.00" 209,33 0.00 2.500.00 370A 2,130,00. 14.80 Repairs & blaint - Building 666,t57 0,00 W.67 0.00 8;000.06 1.243.00 6,757.00 •15,5t4 Repairs &, Maint-CARES Funds 0.00 19010Q (190,00) 0.00 0.00 190.00 (190M). 0.•00. Police Regular Law Enforcement 7,600.00 7,598.83 1.37 99.98 91,266.00 53,191.91 38,068.19 38.32. Dispatch Costs 20L67 °000 291;67 0.00 3,500.00 0.00 3,500.00 6,06 Administration 25.00 0.66, 25.00 0:00. 300.00 0.00. 100.00 :0.00 all0I2022 al 134 PM City urGan Lake GENERALFUND ➢udgeted Statement ofRevemes acid Expenditures For the Save Months Endiag July 31, 2022. Curr_Mntlt Ctt_�rrN Corr Mnth 2022 YTD YTD flow Actuid Variance %Colnnlete Budget Actiml a i-t ° m lete Firs Fire. Services 1,882.75 1,892,75 10.00 100.00 22,593,00 13;179.25 .0413.75 58.33 F46:Marshall Service 562.50 562.25 0.25 99196 6,750.0..0 3,935.75 2,81:4.25 5831 Anlmni.Controi Animal Removal .33.33 0..00 33.33' 0,00 400.00 0.00 400.00, 0.00. Animal Enforcement 16.67 0.00 16.0 0.00 200.60 81.I6 1.18.84. 40.58 Iluiltling lnpseetion WAGES &SALARIES 1,041.67 uo 1,041.67 0.00 12,500.00 0.6b 12,500.00 0.00 FICA CONTRIBUTIONS 79.58 0,00 79.58 0.00 955;00 0.00 955.00 0.00 PERA CONTRIBUTIONS 78.17 0.00: 73,17 0.00 .938.00 0.00 938.00 0.00 WORKERS COMPENSATION 1&42 0,00 15:42 0.00 185.00 0..00 .185,00 0:00. Building Inspecdons 1,166.67 642.00 524.67 55.03 14,060.00 1,157.40 12.242.60 12.55 Building Secretary 209.33 418:62 (210.29) 200.94 2,506.00 ' 842.40 1.657;60 33.70 Computer Services 0.60 0.00 0.09 0,00 6.00. 2,S20,00 (2,520.00) 0.00. Office Equip & Furnishings 333.33 0,00 •333:33 6.06 4;000,00 0.00 4.000.00 0.00 Rond Maintenance Signs, Sign Repair Materials 4.1;67 0.00 .41.69 0.60 500.00. 0,00 mom 0.00 Fngineering 333.33 0.00 333.33 0.00 4,000,00 6.60 4,000.00 0,00 Engineering .0.00 3206 (324.80) 0.00 0.00 2,342.25 (2,342.25) 0.00 Street Lights 83J3 76.67 6.66 92.00 110.00.00 519.86 481.14 91.89 ROW Maintenance 66.07 0.00 66.67 6.00 800.00 0.00 800,00 0.00 Street Repairs 1.250.00 0,00 1,250.00 0.00 15,000.0.0. 3,165.31 1.1,834.69. 2LI0 Blvd Tree Trimming 1.,230.00 0.00 1,250100 0:00 15;000.00 0:00 15.6.0.0.00 0.00 Dues & Subscriptons $1,33. 0.00 .8.33 0.00 100.00 0.00 100.00 0.00 Ice and Snow Removal Salt and Sand 1,250.00 .0.00 .1,250.06 0.00 15,000,00 5,702.75 9,297.25 38.02 Repairs & Maint- Coatracluid 203.33 0,00. 2.08.33 0.00 21500.00 0;00 2,500,00 a.00 Snow Plowing 1,416167 0.00 11416:67 0.00. 17,000.00 6,926.50 10,073.:50 40.74 Parlc Maintenance PARK MAINTENANCE.-CONT&KCTI)A4 4I.6,67 0.00: 416.67 0.00 5,000:00 0.100 5,000.00 0.00 Other Flnancing.Uses Operating Transfers OUf 1,666.07 0,00 1,660.w 0,00 20,000.00. 20,000.00 0.00 1..00.00 TotalExpenditures 43,6060 28,347.42: 15.259.09 6S.01 523;278.00 250A08.93 272,869.07 4715. Excess Rev Over (Uiider) Exp. $ 0.00 $ 13,644.19.% _[13_,644,19 .0.00 $ 0.00 $ 64,867.14 (64,867.14) 0;60 al1012022 at 2:34 PEA REVENUES Park Dedication Fees Interest Eariihips Total Revenues EXPENDITURES. Other lmprovemeats Total.Expenditures Excess Rev Over (Under) Exp City Of Gan lake PARKS AND PLAYGROUNDS FUN. D Budgeted Statement ofRevenues atid.a-Pend(tum For the Seven Months Ending July 31, 2022 urr lvinth Civr loin curr mntl Z)22 YT17 ,YTT , )3udeet Actual Varinnc % Complete Biid e &qjia Varimit.e %Complete. 0;00 S 0,00 0.00 0.00 $ 0.00 s 15,066.60 (15,000.00) 0.00 3333 0.00 (33.33) 0.00 400.00 25T69. .162.31 59A2 33,33. 0.00 (3333) 0.00 400.00 15.237,69 (14,837,69) .1.809.42 416.67 O.QO (416,67) 416.67 0,00 416:6 ($ 3$3:33) $ 0,00 383,33 0.00 5.000.00 Q,00 5,000:00. (1.00 0.00 5,000,00 0.00 5,000.00 0 00 0.00 .($ . 4,600.00) $ 15,237.69_ (19,837,69) �r 91.10I2022 u12:37 PM City ol'Gem Lake 2007 DEBT SERVICE FUND Budgeted Statement of Revenues and Expenditures For the Seven Months Ending July 31, 2022 urr Mnt13 Curr Mntli Carr Mnth 2022 Y7D YM Mid s et Actual Variance %Cgrnalcte BMggt f+clua! Varianco 5 Comnlg[e. REVENUES Current Propimy Taxes $ 6,438.92 $ 39,951.04 33;5l2:12. 626.46 $ 77.,267.90 $ 39,951.04 .37.315,96 .51.71 Delinquent Property Taxes 0100 41.61 41,61 0,00 0.00 41.61 (41,61) 0.00 Fiscal Disparities I84:17 1,045,34 961,19 5Q.62 2,?1.0,00 I,045,36 1,164,64 47:30 Interest Eamings 41,67 0.00 (41.67} 0,00 500,00 323,41 176.53 64;69 Total Revenues 6,664;75. 41,038.01 34,373.2 615.75 79,977.00 41,361.48 38613:52 507 EXPE, )ITURLS Principal 5,416.6.7 0.00 (5;416:67) .0.00. 65,000.00 65,000.00 0.00 100.00 Interest 946.67 0.00 (945.67) 0.00 11.360.00 6.012.50. 5.347.50 52.93 Fiscal Agent Fees 166,67 5,346.25 5.170.58 3,207.75 2,000.00 5.346.25. (3,346.25) 267.31 Total Expenditures 6,530.00 5.346:2S 0,16.751, 81.87 78,360.00 76,358.75 2,001.25 97AS Fxcess Rev Oyer -(Under) &xp $. 134.75 $ 35.,69I.76 35,557.01 26,487 39 $ 1,617.00 S 34,997:2 . 36,614:27 .(2,164.33) 611M022 at 289 PM City of Gem Lake 2018 DEBT SERVICE FUND Budgeted Statement of Revenues and Expenditures For the Seven Months Ending July 31, 2022 CtirT MnAh Cu Curr M YTO YTV BudectActual Variance comnleti Dudeet AsmW Varian ° Complete REVENUES Current Property Taxes $ 625.83 $ 31903.00 3,277,17 623:05 $ 7;510.00 S 3;903:00 3,607,00 51.97 Delinquent Property Taxes 0.00 4.07 4.07 6.00. 0.60 4.07 (4.07) 0.00 Fiscal Disparities 24.58 (.02.13 77:55_ 415.4E 295.00 102:13 192.97 34.62 Current Special Assessmems 5,016.67 28W,79 23,300.12 564.45 60,200,00 28,3..16.79 3-103.21 47.04 Interest Earnings 4A7 O.t70 (4.17) 0;00 50.00 228.79 (179.79) 451.58 Total Revenues S 671.25 32,325.99 266$4:74 570.00 68 055.00 32 554.78 35 50012 47.94 LXLENDITURAr Principal 3033• 0.00 (3,333.33) 0.00 40.000.00 40,000.00 0.00 100.00 Band Interest 4091:07 0:00 (1,01.47) 0.00 20;300,00 16.450.00 9,850.00 51.4.8. Fiscal Agent Fees 106.00. 9;850.06 9,750.00 9,850.00 1,200.00 9,850.60 (8,650;00). 820.83 Total Expenditures 5 125.00 9,850:00 4,725.00 192.20 61.500.00 60.300.00 1.200.00 99.05 Excess Rey.OveriUndrx) Exp $ 546.25: 5 22 475M 21,929.74 4.114.60 .$ 6,555,00 {$:27,745.22) 34.300.22 (423.27) 0r5N202Y.atZ*ri 1 City of Gem Like . IMPROVEMENT FUND 13udgcted.Statement of)16tittlos and Expenditures For the Sevcn Months Ending July 31, 2022. Curr Mnth Curr Mrit curr h4nl i 2022 YED YTp Bvjget Mwal Variance %Cmnplete Badge[ Acliml Variance % QmPlete REVENUES Current Special Assessments $ 3,166,67 5 19,205.03 16,038.36 606.47 S 38,000;00 $ 19,205.03 18,794197 50.54 Dclinq Special Assessments 0.00 67.71 67.71 0;00 4.0E 6.7.71 (67.71) 0,00 Penalties &. Interest 0.00 8.70 8.70 0.60 .0.00 8.70 (8.70) 0,00 Interest Earnings 166.67 0.00 (I6667) 0.00 2,000.00 1,803,47 196,53 90,17. Transfers from Other Funds 1,666.67 0.00 (11,066,61) 0.00. 20,000.00 20,000M 0:00 100.00 Total.Reveaves 5,000.00 19.281.44 14,281,44 385.63_ 60,ob0.00 .41,084.91 18;915.09 68A7 EXPFIdDITURES Engineering 8.33.35 0.00 (833.33) 0.00 10,000.06 b.00 10,000,00 0,06 Construction 9,333,33. 11,097.36 2,764,03 133.17 100,000..00 104,344,95 (4,344.99) 104,34 Total Expenditures 9,166.67 1 I=097.36 1,930.69 121..0.E 110,000.00 104 344.99 S 655M 94,86 L•xeess Rev Ovor([Juder) rxp $ 4,166.61 $ 8 I84;08 12 35035 (196,42). (S30,000,00) (S 63,260.08) M,260.08 126:52 SFiW2M at 2.47 PM Cily oF.G.cm Lake SEWER ENTERPRISE FUND Budgeted Statement of Revenues. and Expenditures For the Seven Mani la Ending July 31, 2022 Curr Mntlt CuTr Mw Cur Mill29 YTS 3[Td2 Budze Lquia yui iancr %Complete &tdw ActuRl Vtt imce °Q 1n a et REWNUES tocal SAC S 83.33 S 0.60 (83.33) Metro SAC 0.00 (9,840.60) (91840.60) Residential Sewer Revenues 2 500,00 0.00 (2;500.00) Commercial Sewer Revenues 2;666.67 0.00 (2,666,67) Sa)verCharges- Delinquent 166.67 0.00 (1,56,6.7) SewerL:ate, Charges. 100.00 0.00 (100,00) Inleresl Earnings 166.67 0.00 (166.67) Total Revenues .5,60 33 •(9,80.60) (15,523.93) EXPENDITURE Office Supplies 16.67 0.00 (16.67.) Postage 20:83 0,00. 00.83) Auditing Services 208.33 .0.003} Engineering 416.67 O.00 :41667} MCE,S Charges 3,55000 7,097.86 3,547186 Locates 66.67 24.30. (42:34) Financial Services 83.33 0:00 (83.33) Computer Services 41.67 0.00 (41.67) Wttter/SewgrUtilities 1,000.00 .0.00 (11X0.00) Repairs&:Maint- CoatrgOW 416,67. •0106 •(416.67) Depreciation 1,375.00 .6.00 (1,375.00) Sewer Inspections 2,68i:33 6.06.. (2;083:33) Sewer Televise/Flushing 1,666.67 0.00 (1,666.67) Total Expenditures 10,945,83 7,122.16 (3.823.67) 0.00.$ I,ODO.00 S 4,000.00 (3,060.60) Ono 0,00 .0.00. 99.40 (99.40) 0,00 0,00 3Q000.00 12,495.26 I7,504.14 41..65 0:00 32;000.06 16,200.00 15;800.00 50,63 0.00 2,060.00 0.00 21000.00 O.OD 0.00 1,200.00 0;00 1,200.00 0.00 0.00 2,000.00 2,421.64 (421.64) 121.08. (173;15) 68,m).00 35.11.6.30 32.983.70 5L64 0.00 200.00 0.00 200.00 0.00 0.00 250.00 0.00 250.00 0.00 0.00 2,500.00 2,SW.60 0.06 100.00 0.06 5;000,00 0.00 5000.00 0.00 199.94 42,600.00. 22,916.39 20.,583.61 51..68 36AS 800.00 109.40 690.60 43.69 0.60 l,n om 0.00 1,000.60 0.00 0.00 .5.00.00. 0.DO 500,00. 0.00 0,00. 12,000:00 1,637.13 .10,362.62 13.64 0.00 5,000.00 O,bd 5.000;00 .b,00 0.00. 16 500,OD 0;00 16,50(1,00' 0.00. 0.00 25;000.00 0.06 25,000.00 0,00: 0.00 20.000.00 0:00 20,000.00 65.07 131,350.00 .26.263.17 .105,086.83 19.".. Excen.Rev Over (Under).Exp (S 5,261.50) (S 16,962.76) (11,700,26) 322.33.(S63,150.00) S 8.953.13 (72,103.13) ('1.4,18) �r. 9110J M at 2:49 PM Cily.ol'Gcm Lake WATER ENTERPRISE FUND Budgeted StatemenlorRevenues and > xpenditures For the Seven Months End ing.]uIy3I, 2022 urr Mn0i Curr Mn III Curr Mntl 2022 YT17 YTD. Blida AW9 Va� rinnc Complete Md e . Amml Wriancg %Complete REVENUES Residential Water Revenues $ 1,257 50 S 0.00 (I,257150) 0:00$ . 15,090.00:$ 10,320 10 4.769.90 .68.39 IntereSt.ZnMirigs 4,17 0,00 (4.17) 0.00 S0:00 (425.71) 475.71. (851.42) Total Revenues 1,261,67 0.00- MUI.671 OAO 15.140.00 9,894.39 5,20.61 G5.35 W111c191111 111tM Auditing Services 208,33 0.00 (208.33) OA6 2,560.00 2,500.00 0,W 1000 Engineering 0.00 6.00 0.00 0.00 0.00 30,6.80.2.1 (30,680.21) 0.00 WaterlSmer Utilities 2;506.00 0.00 (2,51W.60) 0'00 30,000.,00 5,057,29. 24,942.71 16.86 Repairs & lvtaint 291.67 0.00 (291:67) 0.00 3,500,0.0 0.00 3;500.00 0.00 Depreciation 1,230.00 0.00 (1,250.00) 0.00. 15,000.00 0.00 15,000.00 .0.00. Total Expenditures 4,250.00 0.00 (4,250.00) 0.00 51,000.00 38,257.49 12:762.SI 74:98 Excess Rev Over (Under) Pip {$ 2,9803) $ 0.00 2,988.33 0.00 $ 35,960.00) S 28 343.10 7,516.90 79iO4 81l N2022 at.2:52 PM City of Gent Lake IN VESTMENT TRUST FUND Budgeted Stptement of Revenues and Expenditures ror the Seven Manths Ending Iuly 35,.2022 urrMnth Cmrr Mnth arrrrMnth 2022 Y1p YTD Bud a A—cUal Variance P/° Comp[gc . Dodeet rt Variance °le Gomnlete REVENUES Interest Farnings $ 0,00 $ 292;24. 292:24 0.00 $ 0.06 $ 297.24 (292.24..) 0:00. Total Revenues 0.00 .292.14 29214 0.00 Q.00 292.24 (292.24) 0.00 811012022 at 2:54 PM MEMORANDUM Dater August 11, 2022 To: Mayor and City Council From: Tom Kelly, Treasurer Re: Second Quarter 2022 Financial Report The City's audit is finally complete and the. Ana quarter is also over. The year is flying by. The City's revenues are above budget and:expenditures are below budget. Part of the reason revenues.are above budget is building permit revenue already exceeded their 2022 budget. Also some of the one-time fees such as. licenses. are paid at the beginning of the year and have :been paid. The key to the City's finances are that even though we are 50% through the year, revenues. and. expenditures do not flow evenly though the year. There are some one-time expenditures, which are spent at the. beginning of the year, and expenditures for snow plowing activities, which are spent during the first and fourth quarters of the year, which makes.the City lock like it may over Or under spend its budget, but over the course of the year, will actually be in line with budgeted amounts. Likewise, on the revenue: side sewer and water billing revenues are only redeived once a quarter. Below it a chart comparing budget t0 actual revenue. and expenditures for the years 2021 and 2022. ALL FUN D5 Revenues 2021: 2021 % 2022 2022 .% Budget Actual Received Budget Actual Received General Fund 23;424.96 25,93125 1103196 22,675.02 42,563.45. 187.71% 5p.ecial Revenue. Fds 200.00 123.74 61.87% HUM 15;237.59 761.8.851Y. Debt Service Funds 76,160,50 308.08 0.40%. 74,016-0.0 552:26. .0.75% Capital Project Funds 13,500.00 31,666.99 234.57% 30,000.00 21,803.47 72.68% Enterprise Funds 35,375.00 22,628.97 63,97% 41,670.00 .K951.29 131.87% Total 148, 660.46 80; 66163 5.4.26% 168, 561.02 135,108116 80.1.5% Expenditures 2021 2021 % 2022 2022 % Budget Actual Spent Budget Actual spent General Fund 24.6,192.48 212,763,09 86.42%. 261,839.00 222,061.51 84.875t Special Revenue Fds 1,000.00 0.00 0.00y5. 2,500.00 o;00 0.00% DebtService Funds 65,632.50 123,065,00 187.51% 64,930.00 121,462.50. 187.07% Capital Project Funds 0.00 15,244.69 0.00% 55,OD0.00 93,247.63 0,00% Enterprise Funds 90,045.00 22;291.41 24.7694 91,175.00 57,378.50 62.93.% Total 402,969:98 373,370.19 92.6894 475,244.00 ,494,150.14 103..98% It should be noted that the budget amounts.are for half the year's budget apd.the actual is year to date. The rest of the report will detail the revenues and. expenditures of.each of six fund. types. GENERAL FUND For the second quarter, revenues are above budget. projections and expenditu.res.are below budget; which is show in future charts. However, the chart on the fallowing page shows how revenues are below expenditures levels for the first half of the. year; which is typical until the City receives its first half property tax payment in July. In addition, one can see how the. City depends on..reserves (cash balances) until thattax payment is received (the City received an advance of its tax settlement of 701% in June, which caused the spike). Comparision of Revenues, EXpenditures, Sc Cash .Balances 7oo;aa0.oa 600,000.00 soo,obo.00 � �x7,000..do Revenue- noa no Expenditures 20(),UOO.Ob _—Cash Balance 100.;00n.00 0.00 J�� `Say�4Qi+ For the year, the City has received 8.13% of the budgeted revenue through the first half of the year, which is above last year at this time when the City had collected only 5.27%. of revenues less the advance of the tax settlement. Building permit revenue are up from $4,418,20 in 2021 to $9,197.30 in 2022. Other permit revenue are also up from 2021. Interest earning are up from .last year. 5o fart. he City has earned $1,107.1 1 in interest compared to $81.4.77 last year. All other revenues are similar to. last year's revenues. The chart on the following page compares budget to actual revenues for the last three years.. For this chart, the monthly revenues are 1112'h of the total revenue budget with the exception of property taxes, which are included in the July and December budget numbers only. Revenue Compansiorr roo,Cmoo san naq:aa r �� t�: f: 300,C)MOp hNa:- 200,0e0.00 , - F ., 1W,U(11.C7 � pt p. '--.i LAO U, 0.00 �\A '00 `0 0 2020 Qudgel e0 2020 Ac1081 ot 2M 1,.11udget p.2021 Actual 9 2022 Budget a 2022 Actual The good news is -that actual expenditures for the second quarter remain below the 2022 budget and.2021 •budget•amounts, but•are•higher than 2021.a0pal arnotints as Shown in the charts below: }. Expenditures by Department 2021 M. 96. 2022 20Z2. % Budget Actual Spent Budget Actual Spent - General Government 134;878.00 .137,933.59: 102,27%: 143,67&00 49,666.66 34:57% Public Sa.fety 74,864.50 6215.06.14 $3.49% 80,011.00 33;194.09 41.49% PublicWorks 33,950.00 12,323.36 36.3096 35,450.00 51022.39 14:17% ParkMaintenance 21500:00 0:00 0,0030 2,500,00 0.00 0,00% Total 246,192.50 212,765.09 86,42%. 261,639.00 87,883..14. 33.59% Expenditure Comparision 800,000.00 700,00CWO 600 m.00 � 7.02011trdl<�I ` rm 202OActual 400;000.00 1,4 2024 utedget a()I 000.00. ;� ' p t_ . ra 7021 Actual 200,000.00 €I [• f 'i , FrN c 02.022.'[iudaet 1U0.000:00 z F E • yc O �y QG If expenditures were spent evenly throughout the year, the City should have spent 50% of its budget. So far no General Fund activity that Is over 50% spent of their budgets after the 2"d quarter. The Pubilc Safety pudget.is Qnly 41.49% spent so far due to the budget for a code. enforcement posidion not being.fiilled. The public works department at 14.17% is Well under their budget through the second.quarler,. but the City could- have.some street patching expenditures and in the 41" quarter there could. be some expenditures. for salt/sand and snow plowing activities. Second quarter -expenditures are shown in the chart below.. Expenditures by Department I60,00a.po 140,000,00 120;000.00 100..000.00 . M 2021 Budget 8p,poo.00 .. . M 20n Actual I; 6Cf,Ob0.00 02022.8udget m 202.2 Actual -i F •�: F. � i. zo,oao.aoIS 0.00 General Public Safety Public Works Park. Government Maintenance Overall, the General Fund appears10-be•in good shape:through the first half of the year. If revenues and expenditures•folldw previous -year collections and. expenditure patters, revenues should finish the year above budget -amounts while expenditures should finish below budgeted amounts. In July the City will receive the rest of their first half tax settlement and should also receive the remaining Covid-19. funds. SPECIAL. REVENUE FUNDS The City's only Special Revenue Fund is -the. -Parks and Playgrounds Fund, which has-recetved a park dedication fee of $15,0.00.00. and interest earnings through the first half of the year.. No expenditures have taken place this year. DEBT SERVICE FUNDS The -City paid Its FebruaryIstbond payments of*$105,000.00 of principal and $16,462.50 of. interest at the. end of January. The next scheduled. debt payment is the interest only payment of .15,197:50 due August 1*5! Funding comes from property taxes, special assessments, which will be received in July and December, and interest earning. Revenues total $552.26 for the first half of the year, which is interest earnings. The expenditure activity was the City's first half: bond payments. CAPITAL PROJECT FUNDS The Capital Project Funds have revenues of $21,803.47 which is from the $20,000 transfer from the General Fund and interest earnings, For 2022 the expenditures are for the landslide repair and the storm Water studyhMiproveiments. ENTERPRISE FUNDS The City's Enterprise Funds consist of the Sewer Enterprise Fund and the Water Enterprise Fund. Revenues are above last year revenues and are.65.94% of budgeted revenues. Revenues totaled $54,95.1.29 for the first half of 2022 Compared to $22,628.97 last year. The main difference is in 2022 both 16t and 2"d quarter revenue have been recorded while in 2021. .only the 1s' quarter was recorded. Expenses for the year .lsre.•above.last year's expenses but are only 31.47% of budgeted expenditures. Keeping in mind that the expense budget for the Sewer and Water Enterprise Funds includes depreciation, which is not recorded until**year-end. The main expense is the M.C.E.S. charges for sanitary sewer treatment. The City•has a budget of $42,600.00 for these charges and have paid 35.02% or $14,918:53 for this 1irle•item.- Overall, the sanitary sewer and water funds Ahould finish the year with revenues near -budget and expenses below budgeted amounts. CASH AND INVESTMENTS Finally, the.City had $1,230,17?.28 ingested as of June 3011This compares to $1,291,696•.39: Invested last year at this time. The investments had an average interest rate of 1.6296 -compared to 1.66% last year. Interest rates'remain low with the highest interest rate-664- municipal bond of.3.73%.: The•chart below shows the City's.invested funds for the• last foul years. 1,600,000.00 1A00000.00 1,200,000.00. I,000,wo.00 • $�O,p00.00 609,000.00 400,QM.0o 2ao o0q. Q $ Invested 2� J aJ JEz �q� vex �¢� ,ve6 ---ram 2019 .-.«.... 2020 »-w- .2021 -2022 The other factbr:and equally important as funds invested. is the City's cash in the bank.. These are the funds the City uses to -pay its bins each month. Since the City receives the majority of its money in twice. a year from•tax settlements, it is not unusual for the City to have a large amount of cash available in•the middle:of.the•yearand the end of the year with the funds being drawn down in the proceeding months. Depending on expenditures and other revenues collect the City may draw on its investments to help meet its cash needs. The chart below demonstrates the cash flow for the City. Cash Balances 1,600,006;00 900,00Q.OQ 800,000.00 700,OM.00 600,000.06 -- 2019 500,000.00 �- - 2 02 o 400;000.06 3oo.000.00 -�+--�-2021 .200,Oon.QO 202 2 100,000.00• a,oa CONCLUSION The City had atypical first half of the year financially: Through the second quarter, it appears reVeriues could finish the year near or above budgeted amounts for most. revenue sources, while expenditures may end near or slightly below budgeted amounts. The City has sufficient cash .arid investments to meet its obligations, however investment earnings remains low. The it would appear the City is in good financial shape for 2022.