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Home My WebLink About05.18.20 Council Packet CITY OF Meeting Location: FARMINGTON Farmington City Hall 430 Third Street _...._. ` Farmington,MN 55024 CITY COUNCIL REGULAR MEETING AGENDA May 18, 2020 7:00 P.M. Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA S. ANNOUNCEMENTS/COMMENDATIONS 6. CITIZEN COMMENTS/RESPONSES TO COMMENTS(This time is reserved for citizen comments regarding non-agenda items.No official action can be taken on these items. Speakers are limited to five minutes to address the city council during citizen comment time.) 7. CONSENT AGENDA a) Approve Minutes of the May 4, 2020, City Council Meeting— Administration Approved b) Approve Minutes of the May 11, 2020, City Council Work Session— Administration Approved c) Approve 2021 Apple Valley-Lakeville-Farmington Ambulance Budget Administration Approved d) Approve Waiver of April 2020 Utility Bill Late Fees and Refund of Unused May 2020 Liquor License Fees—Administration Approved e) Approve Seasonal Hiring—Human Resources Approved f) Approve Bills - Finance Approved REGULAR AGENDA 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTSAND COMMUNICATIONS a) 2019 Management and Comprehensive Annual Financial Report Accepted b) Adopt Resolution and Ordinance Approving Comprehensive Plan Amendments and Rezoning of the Christensen Property Located at 20861 Flagstaff Avenue R25-20; Ord 020-751 c) Adopt Resolution Approving Final Plat and Development Contract—Fairhill Estate at North Creek 2nd Addition R26-20 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) 2020 Primary and General Election Plan Information Received b) COVID Update R27-20 13. CITY COUNCIL ROUNDTABLE 14. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ■�YII�� © Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: SUBJECT: This meeting will be an interactive meeting held on Zoom. If you wish to submit a comment under the Citizens Comment item please send it to communications@farmingtommn.gov. DATE: May 18, 2020 CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-680o FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the May 4, 2020 City Council Meeting-Administration DATE: May 18, 2020 INTRODUCTION Attached for your review are the minutes of the May 4, 2020 city council meeting. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the May 4, 2020 city council meeting. ATTACHMENTS: Type Description o Backup Material May 4, 2020 City Council Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES REGULAR MEETING MAY 4,2020 1. Call to Order Mayor Larson called the meeting to order at 7:00 p.m. This meeting was a virtual meeting conducted on Zoom due to the COVID pandemic. 2. Pledge of Allegiance Mayor Larson shared that the pledge would not be conducted during virtual meetings due to issues with broadcast delays. 3. Roll Call Present-Larson, Bernhjelm, Craig and Hoyt Absent-Donnelly Staff Present-Administrator McKnight, Public Works Director Gehler, Communications Specialist Siebenaler, Public Works Director Gehler, Police Chief Rutherford, Fire Chief Elvestad, Community Development Director Kienberger, Parks and Recreation Director Distad, Finance Director Malecha and Attorney Jamnik. 4. Agenda Motion by Hoyt, second by Bernhjelm, to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations a) Dakota County Commissioner Mike Slavik Dakota County Commissioner Mike Slavik presented an update on county activities. Topics reviewed included current number of COVID cases in the county,what county facilities are open/closed, upcoming street projects and an update on an upcoming drilling and export of water moratorium. Councilmember Craig asked about a resident who had questions on their tax payment. Slavik stated that he would reach out to discuss after the meeting. May 4,2020 Regular Minutes -1- b) Proclaim May as Mental Health Month in Farmington Mayor Larson proclaimed May 2020 as Mental Health Month in Farmington. 6. Citizen Comments None 7. Consent Agenda Motion by Bernhjelm, second by Craig,to approve the consent agenda as printed: a) Approve Minutes of the April 13, 2020 City Council Meeting-Administration b) Approve Agreement Schmitz-Maki Arena Exclusive Vending Service-Parks c) Approve Rambling River Center Advisory Board Bylaws-Parks d) Approve Recommendation for Hire Police Department-Human Resources e) Approve One-Year Extension of Clear Company Contract-Human Resources f) Acknowledge Financial Review for the Quarter Ending March 31, 2020-Finance g) Approve Bills-Finance 8. Public Hearings None 9. Award of Contract None 10. Petitions, Requests and Communications None 11. Unfinished Business None 12. New Business a) Fiber Optic Indefeasible Right to Use Agreement by and between the City of Farmington and the Dakota Broadband Board May 4, 2020 Regular Minutes -2- Administrator McKnight presented the Fiber Optic Indefeasible Right to Use Agreement by and between the City of Farmington and the Dakota Broadband Board (DBB) for city council consideration. This agreement grants the DBB the right to use, manage and maintain fiber and fiber facilities within certain fiber optic cable segments on the terms established in the agreement. The city has built a fiber network that is shown on the map that was included in packet. The execution of the agreement was defined in the joint powers agreement signed by all DBB members in 2017. This document is a technical document that allows the operations and maintenance contractor(LOGIS) to ensure member assets are property maintained and supported. When the city joined the DBB, it was always our assumption that we would be fully committed to the organization and that our fiber infrastructure would continue to grow. The DBB Board did approve this agreement, but it was not a unanimous vote. Councilmember Hoyt detailed the issue of two members of the DCC Board voting against the agreement. Motion by Hoyt, second by Bernhjelm,to approve the Fiber Optic Indefeasible Right to Use Agreement by and between the City of Farmington and the Dakota Broadband Board. APIF, motion carried. b) COVID-19 City Response Update Administrator McKnight provided an update on the city's response to the COVID-19 pandemic. McKnight shared the actions that have occurred to date. ✓ City facilities continue to be closed as a part of Governor Walz Stay at Home order that now runs through May 17, 2020. ✓ Almost our entire future schedule depends on the next order of the Governor. ✓ Continue to provide city services using new methods to protect the health of city staff members. ✓ Preparing city staff for the eventual return to working from city facilities and the opening of these facilities. ✓ Police and fire departments have adjusted to schedules to both provide services to the public and protect staff members as much as possible. ✓ City waived late fees on March utility bills and refunded liquor license fees for April. Staff will bring this issue forward for city council consideration for April 2020 at the next meeting. ✓ City council participated in a meeting with members of the FBA last week to see how we can work together to support local business. May 4, 2020 Regular Minutes -3- ✓ Pilot Knob liquor store days/hours continue to expand and the downtown store will reopen next week starting with a few days a week. ✓ Continue to move forward with traditional work including starting the 2021/2022 budget process. ✓ Completing special projects in city facilities with the available time at city hall, arena and Rambling River Center. ✓ Boards and commissions are starting to meeting again in full force in May. ✓ Continue to work with the federal, state and county government on information sharing and coordinated response. ✓ Meeting weekly with Dakota County city administrators to share information and future plans on reopening plans. ✓ Important to note most of the work of city staff members never stopped, we changed either the service delivery method or the location of where work is completed. ✓ Continue to communicate with the city council and city staff on issues related to the pandemic, city functions and plans for the future. ✓ Asked department heads to provide an update of their department activities during city council roundtable. 13. City Council Roundtable Bernhjelm-Thanked city staff and residents for their continued work and patience on the COVID issue. Craig-Thanked city staff for their willingness to adapt service delivery approach. Hoyt-Thanked city staff for their willingness to adapt service delivery approach. McKnight-Reminded the city council that a Zoom work session will be held on May 11, 2020. Kienberger-Updated the city council on department activities including a new utility bill grant program for businesses. Distad-Updated the city council on department activities including an updated approach on holding or cancelling programs. Rutherford-Updated the city council on department activities including the success of the work from home program for some department staff. Elvestad-Updated the city council on department activities including a recent mask collection event. Gabbard-Updated the city council on department activities including new wellness initiatives. May 4, 2020 Regular Minutes -4- Gehler-Updated the city council on department activities including upcoming projects that will continue as scheduled. Larson-Encouraged residents to support local businesses and thanked the FBA for their invitation to discuss ways to support each other last week. 14. Adjourn Motion by Hoyt, second by Bernhjelm, to adjourn the meeting at 7:45 p.m. APIF, motion carried. Respectfully Submitted V g. "0 e David McKnight, City Administrator May 4,2020 Regular Minutes -5- CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ® Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the May 11, 2020 City Council Work Session-Administration DATE: May 18, 2020 INTRODUCTION Attached for your review are the minutes of the May 11, 2020 city council work session. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the May 11, 2020 city council work session. ATTACHMENTS: Type Description ❑ Backup Material May 11, 2020 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION MAY 11, 2020 Mayor Larson called the work session to order at 6:00 p.m. The meeting was held virtually over Zoom. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Also Present-Administrator McKnight, Finance Director Malecha, Communications Specialist Siebenelar and Deputy Police Chief Constantineau Agenda Motion by Craig, second by Donnelly, to approve the agenda as presented. APIF, motion carried. Stay at Home Order Mayor Larson and Councilmember Hoyt asked that this issue be placed on the agenda for discussion. Larson felt the current order is unfair and wants to open up the city. The order is random and people are frustrated. Councilmember Hoyt wants to send a strong message and push this issue from the bottom up. Business owners know their business and they need to know we stand behind them. Hoyt wants to support businesses and pressure our state representatives on the executive order. Larson expressed concerns on information received today from the League of Minnesota Cities and feels the city is handcuffed and has liabilities if any action is taken. Councilmember Craig stated she agrees that the broad-brush approach does not work. She reviewed the number of COVID cases and deaths in Dakota County. She encouraged the city and businesses to work with the Dakota County Regional Chamber of Commerce on this issue. May 11, 2020 Work Session Minutes - 1- Councilmember Bernhjelm understands the issues raised but Farmington is no different from any other city in the country. We should focus on controlling what we can with city issues. Mixed messages are not good. She expressed frustrations with a video that Councilmember Hoyt posted last week. Councilmember Donnelly shared that he agreed with much of what had already been shared. All of the city councilmembers want to have the businesses open. Every member took an oath to uphold the law. The city council has to set the example of how to do this the right way. The opening of the businesses is not up to the city. Hoyt stated that he did not promise anything in the video he posted. He will support the decisions made by business owners. Bernhjelm stated that we all want to see the businesses succeed. Larson asked how we could send the message to show we support local businesses. Craig encouraged the city to work with the chamber to share our message. Larson encouraged business owners to directly contact the Governor's office and share their message. Councilmembers asked what we can open up as a city and what we can do. Administrator McKnight shared the status of preparing city facilities for opening. The first issue is the status of the Stay to Home Order. Staff is preparing city facilities to open again and staff to return. Not all facilities will open right away like the Rambling River Center. Hoyt asked why we are letting ballfields stay open but have concerns about businesses. Donnelly stated the city did not direct any specific enforcement or lack of enforcement. There was no consensus to move forward with any action at this time. 2020 and 2021 Budget Discussion Finance Director Malecha and Administrator McKnight discussed the 2020 and 2021 budgets and the impact of the COVID issue on both. May 11, 2020 Work Session Minutes -2- Councilmember Bernhjelm asked about cash flow concerns. Malecha stated that for now we are in a good condition and reviewed the county's schedule for the disbursement of first half property tax payments. Bernhjelm asked if there were any applications for the new utility bill grant program. Malecha stated there has been one to date. Councilmember Donnelly asked for clarification on the county tax disbursement process. Malecha explained the 2020 schedule as compared to previous years. Councilmember Craig asked if there were any large 2020 projects that could be delayed, specifically an arena project. McKnight reviewed the arena project that the city council decided not to move forward on earlier this year. McKnight stated that cash has been set aside to address potential cash flow issues. Councilmember Hoyt asked if we have any thresholds in place that would trigger concern in each fund. Malecha stated we look at things as a whole and we are okay for now. Hoyt encouraged staff to look at issues metro wide as well as how we are doing as a city. There may be merits to doing projects now and not in the future when they cost more. The city council consensus was to move forward through 2020 and into 2021 with a conservative approach and use the facts we gain with time to make decisions. The city council will see their first draft of the budget in June 2020. COVID Update Administrator McKnight provided an update on the COVID pandemic. City Administrator Update McKnight shared that at the next regular city council meeting they would be discussing the 2020 elections and potential changes to address the pandemic. Adjourn Motion by Bernhjelm, second by Craig, to adjourn the meeting at 7:10 p.m. APIF, motion carried. May 11, 2020 Work Session Minutes -3 - Respectfully Submitted 190*VW MaA;P� David McKnight, City Administrator May 11, 2020 Work Session Minutes -4- CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve 2021 Apple Valley-Lakeville-Farmington Ambulance Budget- Administration DATE: May 18, 2020 INTRODUCTION Attached for your review is the draft 2021 Apple Valley-Lakeville-Farmington Ambulance(ALF) budget for 2021 for your consideration. DISCUSSION The joint powers agreement for the ALF Ambulance states that on or before July 1 of each year,the annual operating budget for the following calendar year as recommended by the Board shall be submitted to each member city council for approval or disapproval. The budget is very similar to previous years with the budgets with a cash balance around of$200,000 at the end of each year. This money is held in case there are future challenges to the license we hold for our ambulance district. The ALF Executive Management Committee recommended approval of the budget at their meeting on April 23, 2020 and the ALF Board of Directors was scheduled to meet to consider the budget on Thursday, May 14, 2020. BUDGET IMPACT There is no impact on the city budget. ACTION REQUESTED Ask any questions you may have on the draft 2021 ALF budget. Once all of your questions are answered, a motion should be made to approve the 2021 Apple Valley-Lakeville-Farmington Ambulance budget. ATTACHMENTS: Type Description D Exhibit Proposed 2021 ALF Budget PARAMEDIC April 23,2020 V Item No. Proposed 2021 Budget Proposed Action Consideration of the proposed 2021 Budget. Overview The Joint Powers Agreement states "On or before J►►Iy I of each year, the ann►►al operating budget for the following calendar year as recommended by the Board shall be submitted to each member City Council for approval or disapproval" The statute of limitations on the collection of outstanding debts has been reached and, therefore, all collection activity has been suspended indefinitely.All accounts at the collection agency have been closed for the past few years and those accounts have now been removed from the State of Minnesota's Revenue Recapture program. Going forward, the only revenues anticipated are from the three townships and investment returns. If approved, the Budget will be forwarded to each respective City Council for their consideration of approval. Statement of Cash Flows 2019 2020 2020 2021 Actual Adopted Estimate Proposed Additions Townships $ 1,500 $ 1,500 $ 1,500 $ 1,500 Interest on investments 9,299 2,400 3,800 3,800 Total additions 10,799 3,900 5,300 5,300 Deductions Expenses Other - 800 500 500 Total deductions - 800 500 500 Net changes in cash before distributions 10,799 3,100 4,800 4,800 Distribution of cash Apple Valley - - - - Lakeville - - - - Farmington - - - - Total distribution of cash - - - - Net changes in cash position 10,799 3,100 4,800 4,800 Cash balance, January 1 188,007 191,107 198,806 203,606 Cash balance, December 31 $ 198,806 $ 194,207 $ 203,606 $ 208,406 CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 YIII�Ip ® Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Waiver of April 2020 Utility Bill Late Fees and Refund of Unused May 2020 Liquor License Fees-Administration DATE: May 18, 2020 INTRODUCTION The city council is being asked to take action on late fees associated with utility bills that were due April 30, 2020 and liquor license fees for the month of May 2020 that are not able to be utilized. DISCUSSION Due to the COVI D pandemic, residents and business owners have experienced unforeseen financial difficulties. I n an effort to be of assistance, city staff is proposing the following two items be considered by the city council. 1. All late fees associated with utility bills that were due on April 30, 2020 be waived. 2. Waive the May 2020 liquor license fees that are unable to be used due to the pandemic. While these fees waivers were not expected in the 2020 budget,these actions are the right thing to do at this time. BUDGET IMPACT The cost of the waiver of late fees on utility bills is unknown at this time. The cost of the waiver of the liquor license fee is estimated to be$3,100. This is less than the fees you waived in April because a number of liquor license holders are selling liquor to go as allowed by a recent Governor Walz executive order. ACTION REQUESTED Ask any questions you may have on this issue. Once the city council is comfortable, a motion should be made to approve late fees on all city utility bills due on April 30, 2020 and waive all unused May 2020 liquor license fees. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Jennifer Gabbard SUBJECT: Approve Seasonal Hiring-Human Resources DATE: May 18, 2020 INTRODUCTION The recruitment and selection process for the appointment of the attached list of summer seasonal staff has been completed. DISCUSSION After a thorough review by the Parks and Recreation and Human Resources Departments, offers of employment have been made to the individuals shown on the attached spreadsheet. All have completed the necessary conditions, but these hires are subject to the ratification by city council. The city administrator asked a few questions that are relevant to these proposed hiring and the current pandemic. • The recreation positions will not start until after we know for sure that we can run programs this summer. • None of the positions are allowed to start until after city council approval. • The park maintenance positions will be used for traditional activities like park mowing and maintenance. We are all in agreement that this work needs to continue during the pandemic. BUDGET IMPACT These positions are included in the 2020 department budgets. ACTION REQUESTED By motion approve the attached seasonal employment recommendations. ATTACHMENTS: Type Description ❑ Cover Memo 2020 Seasonal Hiring Last Name First Name Position 2020 Pay Rate Blom Logan Seasonal Park Maintenance $ 11.33 Brule Autumn Seasonal Rec. Asst. $ 10.97 Conrad Hunter Seasonal Park Maintenance $ 11.02 Conrad Kevin Seasonal Arena Supervisor $ 13.80 Goodreau Seth Seasonal Park Maintenance $ 11.02 Lavigne Trevor Seasonal Park Maintenance $ 13.80 McMillen Megan Seasonal Rec Asst. $ 10.71 Soppeland Conner Seasonal Park Maintenance $ 11.02 Date Effective 5/19/2020 5/20/2020 5/27/2020 6/15/2020 6/3/2020 5/27/2020 6/l/2020 6/3/2020 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Approve Bills-Finance DATE: May 18, 2020 INTRODUCTION Attached is the April 2, 2020- May 13, 2020 city council check register and recently processed automatic payments for your consideration. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the attached payments. ATTACHMENTS: Type Description D Backup Material Check Register 4/2/20-5/13/20 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 1 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 161196 6/1/2020 100011 ANDERSEN,EARL F 99.85 STREET SIGNS 184016 0122885-IN 1072 6254 SIGNS&STRIPING MATERIALS STREET MAINTENANCE 01000 08 435.00 SIGN DECALS(500) 184017 0122888-IN 1072 6254 SIGNS&STRIPING MATERIALS STREET MAINTENANCE 01000 08 153.60 WETLAND SIGNS(12) 184241 0122624-IN 1076 6220 EQUIP SUPPLIES&PARTS NATURAL RESOURCES 01000 07 688.45 161196 6/1/2020 113303 ARTISAN BEER COMPANY 467.00 BEER ORDER 184304 3414905 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 90.70- BEER ORDER CREDIT 184312 488466 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 376.30 161197 5/1/2020 115520 BALD MAN BREWING,INC 185.60 BEER ORDER 184309 E-4211 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 185.60 161198 5/1/2020 100493 BELLBOY CORPORATION 243.34 LIQUOR SUPPLIES&MIXES ORDER 184310 0101208300 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 199.50- ANGOSTURA BITTERS CREDIT 184311 0101167400 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 120.50 E&J BRANDY VSOP ORDER 184315 0063713200 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 164.34 151199 6/1/2020 109503 BIFFS,INC 149.00 APR'20 PRTBLE RNTL-DAISY KNOLL 184256 W760225 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-HILL DEE PK 184257 W760227 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 10.65 APR'20 PRTBLE RNTL-PINE KNOLL 184274 W760229 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-PRRVW PRK 184275 W760231 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 267.00 APR'20 PRTBLE RNTL-FEELY FLDS 184276 W760233 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-FA PRSRV PK 184277 W760235 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-NRTH CREEK 184278 W760237 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 31.93 APR'20 PRTBLE RNTL-WSTVWACRES 184279 W760239 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-DKTA EST PK 184280 W76D226 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-LK JULIA PK 184281 W760228 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-TAMRCK PRK 184282 W760230 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 59.00 APR'20 PRTBLE RNTL-RR PRK 184283 W760232 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNTL-MDWVW PRK 184284 W760234 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNT-EVRGRN KNLL 184285 W760236 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 149.00 APR'20 PRTBLE RNT-JIM BELL PK 184286 W760238 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 2,007.58 151200 6/1/2020 114076 BLACKFIRE CREATIVE DESIGNS 165.50 PD NOTE CARDS 184269 4198 1050 6450 OUTSIDE PRINTING POLICE ADMINISTRATION 01000 05 356.00 TOYS FOR TOWN NOTE CARDS 184269 4198 1000 2255 DEPOSITS PAYABLE GENERAL FUND BALANCE SHEE 01000 521.50 161201 6/1/2020 114472 BREAKTHRU BEVERAGE MN BEER,LLC R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 2 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 8,254.40 BEER ORDER 184319 1091133307 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 8,254.40 151202 5/1/2020 114471 BREAKTHRU BEVERAGE MN WINE&SPIRITS 2,914.46 LIQUOR&SPIRITS ORDER 184320 1081125556 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,914.46 151203 5/1/2020 100071 COLLEGE CITY BEVERAGE INC 13,486.30 BEER ORDER 184301 729-01507 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 17.20- BEER ORDER CREDIT 184302 729-01508 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 13,469.10 151204 5/1/2020 100081 DAKOTA COUNTY LUMBER COMPANY 34.70 BOARDS FOR MARIGOLD LANDSCAPE 184273 2004-752448 1090 6255 LANDSCAPING MATERIALS PARK MAINTENANCE 01000 09 34.70 151205 5/1/2020 115594 DAKOTA COUNTY PROPERTY TAXATION&RECORD 1,030.00 ANNUAL SA FEES 184070 SA0014 2020 3091 7140 LEGAL&FISCAL FEES 2013A GO IMP REFUNDING BO 03091 02 65.00 ANNUAL SA FEES 184070 SA0014 2020 1000 7140 LEGAL&FISCAL FEES GENERAL FUND BALANCE SHEE 01000 1,010.00 ANNUAL SA FEES 164070 SA0014 2020 3094 7140 LEGAL&FISCAL FEES GO REFUNDING 2016A 03094 02 25.00 ANNUAL SA FEES 184070 SA0014 2020 4600 7140 LEGAL&FISCAL FEES PRIVATE CAPITAL PROJECTS 04600 07 2,065.00 ANNUAL SA FEES 184070 SA0014 2020 6202 7140 LEGAL&FISCAL FEES SEWER OPERATIONS EXPENSE 06200 08 4,195.00 151206 5/1/2020 100022 FARMINGTON PRINTING INC 48.00 COPY PAPER 184254 13466 1010 6210 OFFICE SUPPLIES ADMINISTRATION 01000 01 70.00 BUSINESS CARDS R HAYES 184271 13367 1010 6450 OUTSIDE PRINTING ADMINISTRATION 01000 01 70.00 BUSINESS CARDS C MULLER 184271 13367 1010 6450 OUTSIDE PRINTING ADMINISTRATION 01000 01 9.63- 184271 13367 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 74.81 BUSINESS CARDS D TRIHUS 184271 13367 6115 6450 OUTSIDE PRINTING PILOT KNOB LIQUOR 06100 02 74.82 BUSINESS CARDS B PETERSON 184271 13367 6110 645D OUTSIDE PRINTING DOWNTOWN LIQUOR REV&EXP 06100 02 328.00 151207 5/1/2020 100077 FRONTIER COMMUNICATIONS 94.41 APR'20 WELL HOUSE LINE 184045 651-460-4974 7400 6411 TELEPHONE/CABLE SERVICES INFORMATION TECHNOLOGY 07400 04 APR'20 94.41 151208 5/1/2020 100074 HOHENSTEINS INC 1,439.00 BEER ORDER 164303 200318 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,439.00 151209 6/1/2020 113417 INDEED BREWING COMPANY,LLC 211.75 BEER ORDER 184308 89212 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 211.75 161210 5/1/2020 107414 JEFFERSON FIRE&SAFETY INC R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 3 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 311.79 FIREFIGHTING GLOVES 184157 IN117112 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 311.79 151211 5/1/2020 109846 JJ TAYLOR DISTRIBUTING COMPANY OF MN INC 4,902.05 BEER ORDER 184335 3047695 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,556.50 BEER ORDER 184336 3084545 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 8,458.55 151212 5/1/2020 100033 JOHNSON BROTHERS LIQUOR COMPANY 198.00- HIGH NOON CREDIT 184313 597345 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 42.00- FRANZIA CRISP WHITE CREDIT 184314 594418 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 236.52 LIQUOR&SPIRITS ORDER 184323 1544568 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 652.78 LIQUOR&SPIRITS ORDER 184324 1544571 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 231.76 WINE ORDER 184326 1544569 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 33.51 AGALIMA MARGARITA ORDER 184327 1544570 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,224.70 LIQUOR&SPIRITS ORDER 184328 1544567 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 91.97 LIQUOR SUPPLIES&MIXES ORDER 184329 1544572 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 663.94 WINE ORDER 184330 1544573 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 38.51 CUERVO MIX MARG LIME ORDER 184331 1544566 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 630.43 SVEDKA VODKA ORDER 164332 1544574 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 79.60 KINKY COCKTAILS ORDER 184333 1544565 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 268.60 WINE ORDER 184334 1544575 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 4,914.32 161213 5/1/2020 100364 LEAGUE OF MN CITIES INSURANCE TRUST 921.88 CLAIM 102572 USPS 184142 5776 7100 6430 INSURANCE DEDUCTIBLE INSURANCE 07100 02 921.88 151214 5/1/2020 107747 M.AMUNDSON LLP 958.15 CIGARETTES&POP ORDER 184318 299950 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 958.15 151215 5/1/2020 109318 MC KNIGHT,DAVID 45.00 APR'20 CELL PHONE MCKNIGHT 184252 20200430-MCKNIGHT1010 6412 CELLULAR SERVICES ADMINISTRATION 01000 01 88.99 THERMOMETER FOR CITY HALL 184252 20200430-MCKNIGHT1010 6960 FURNITURE,OFFICE EQUIP,IT ADMINISTRATION 01000 01 133.99 151216 5/1/2020 100070 MINNESOTA VALLEY TESTING LABORATORIES 78.50 BAC-T SAMPLE(7)/MTHLY REPORT 184015 1025873 6502 6401 PROFESSIONAL SERVICES WATER UTILITY EXPENSE 06500 08 78.50 151217 6/1/2020 107932 MOOD MEDIA 93.25 APR 2020 RADIO SVS-LIQUOR 184316 55314696 6110 6401 PROFESSIONAL SERVICES DOWNTOWN LIQUOR REV&EXP 06100 02 93.25 APR 2020 RADIO SVS-LIQUOR 184316 55314696 6115 6401 PROFESSIONAL SERVICES PILOT KNOB LIQUOR 06100 02 186.50 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 4 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 151218 5/1/2020 108225 MUNICIPAL EMERGENCY SERVICES,INC 266.00- RTRN:X2-HYBRID-XXL 183294 CM120119 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 532.00- RTRN:X2-HYBRID-XL 183295 CM120116 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 864.10 FIRE GLOVES 184129 IN1445962 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 520.10 SAFETY GOGGLES(20) 184155 IN1445535 1060 6290 00019 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 586.20 151219 5/1/2020 102644 NORTHERN SAFETY TECHNOLOGY,INC 1,365.05 SQD 01 GUN LOCK ASSEMBLY 184012 50166 5602 6940 50 VEHICLES-POLICE GEN CAPITAL EQUIP FUND EX 05600 1,365.05 151220 5/1/2020 100290 PAUSTIS&SONS WINE COMPANY 210.50 WINE ORDER 184305 87084 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 293.25 WINE ORDER 184317 87401 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 503.75 151221 5/1/2020 100034 PHILLIPS WINE AND SPIRITS,INC 226.04 WINE ORDER 184322 6026125 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 706.03 LIQUOR&SPIRITS ORDER 184325 6026124 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 934.07 151222 5/1/2020 114646 QUALITY FLOW SYSTEMS,INC 441.50 LIFT STATION MAINTENANCE 184046 38831 6202 6505 EQUIPMENT REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 441.50 151223 5/1/2020 112561 RICOH USA,INC 948.88 MAY'20 COPIER LEASES 184159 103552683 1010 6555 RENTAL OF EQUIPMENT ADMINISTRATION 01000 01 865.08 MAY'20 COPIER LEASES 184253 103565955 1010 6505 EQUIPMENT REPAIR/MAINTENANCE ADMINISTRATION 01000 01 22.03 MAY'20 COPIER FAX CARD LEASE 184253 103565955 1010 6505 EQUIPMENT REPAIR/MAINTENANCE ADMINISTRATION 01000 01 1,835.99 151224 5/1/2020 112632 RICOH USA,INC 5.01 APR'20 COPIER MAINTENANCE 184270 5059379980 1010 6505 EQUIPMENT REPAIR/MAINTENANCE ADMINISTRATION 01000 01 5.01 151225 5/1/2020 110990 SCHINDLER ELEVATOR CORPORATION 680.43 QTRLY ELEVATOR MAINT CONTRACT 184295 8105324896 1015 6515 BUILDING REPAIR/MAINTENANCE CITY HALL 01000 01 680.43 151226 5/1/2020 107945 SCHWINESS,LLC 10,031.45 MAY-20 RENT PK LIQUOR STORE 184228 2581 6115 6556 BUILDING RENTAL PILOT KNOB LIQUOR 06100 02 10,031.45 161227 6/1/2020 112191 SEMA EQUIPMENT,INC 31.77 ANTENNA 184347 1386877 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 31.77 151228 5/1/2020 109813 SIG SAUER INC R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 5 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 366.69 NEW OFFICER RIFLE OPTIC 184137 3527897 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 366.69 151229 5/1/2020 112051 SOUTHERN GLAZER'S OF MN 4,036.14 LIQUOR&SPIRITS ORDER 184307 1945472 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 4,036.14 151230 5/1/2020 100379 SPRINT-NEXTEL 28.18 APR 2020 SOLID WASTE TRACKER 184222 875483313-221 6302 6412 CELLULAR SERVICES SOLID WASTE OPERATIONS 06300 08 1,81- 184222 875483313-221 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 26.37 151231 5/1/2020 100236 ST PAUL,CITY OF 226.32 ASPHALT MIX 184297 IN40733 1072 6253 STREET MATERIALS STREET MAINTENANCE 01000 08 226.32 151232 5/1/2020 110894 SUMMIT FIRE PROTECTION 1,684.50 SPRINKLER HEAD REPLACEMENT 184232 2159033 1093 6515 BUILDING REPAIR/MAINTENANCE SENIOR CITIZEN SERVICES 01000 09 1,684.50 151233 5/1/2020 112307 T-MOBILE USA INC 6.66 APR'20 GPS SERVICE 184242 823329497APR'20 6502 6412 CELLULAR SERVICES WATER UTILITY EXPENSE 06500 08 6.67 APR'20 GPS SERVICE 184242 823329497APR'20 6202 6412 CELLULAR SERVICES SEWER OPERATIONS EXPENSE 06200 08 6.66 APR'20 GPS SERVICE 184242 823329497APR'20 6402 6412 CELLULAR SERVICES STORM WATER UTILITY OPERA 06400 08 19.99 151234 5/1/2020 102605 TRENCHERS PLUS INC 52,185.28 #0946 2020 MORBARK CHIPPER 184292 ET24463 5602 6930 HEAVY EQUIPMENT GEN CAPITAL EQUIP FUND EX 05600 52,185.28 151235 5/1/2020 110954 ULINE SHIPPING&SUPPLY SPECIALISTS,INC 532.02 BOTTLES/PUMPS FOR HAND SANITIZ 184010 118768834 1050 6242 00019 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 532.02 151236 5/1/2020 108808 VINOCOPIA,INC 122.50 WINE ORDER 184306 0255445-IN 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 122.50 151237 5/1/2020 117315 WENG'S KITCHEN 412.50 PRORATED 2020 LIQ LIC REFUND 184300 2020 LIQ LICENSE 1001 4207 BEER&WINE LICENSES GENERAL FUND REVENUES 01000 01 REFUND 412.50 151238 5/1/2020 102692 WINE COMPANY,THE 424.40 WINE&SPIRITS ORDER 184321 140716 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 424.40 161239 5/8/2020 114652 ALL AMERICAN TITLE CO,INC R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 6 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 218.69 REF UTIL CR@18380 EVERTON AVE 184462 1911283956/T200101 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 88 218.69 151240 5/8/2020 100204 APPLE FORD LINCOLN-APPLE VALLEY 93.50 REPAIR FOR 0502 184384 AlCB160511 1051 6510 1 OUTSIDE VEHICLE REPAIR/MAINT PATROL SERVICES 01000 05 93.50 REPAIR FOR 0501 184385 A1CB160915 1051 6510 1 OUTSIDE VEHICLE REPAIR/MAINT PATROL SERVICES 01000 05 187.00 151241 5/8/2020 113303 ARTISAN BEER COMPANY 35.60 BEER ORDER 184423 3415656 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 716.55 BEER ORDER 184424 3415655 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,550.00 BEER ORDER 164537 3416510 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,302.15 151242 5/8/2020 108446 ASPEN MILLS,INC. 14.85 UNIFORM ITEMS:JONES,M. 184156 255494 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 197.50 UNIFORM ITEMS:CARSLON,M. 184504 256175 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 49.70 UNIFORM ITEMS:THREET,J 184509 256265 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 262.05 151243 5/8/2020 100493 BELLBOY CORPORATION 123.83 LIQUOR SUPPLIES&MIXES ORDER 184443 101246400 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 22.60 SACRAMENTO BL MARY MIX ORDER 184448 0101260600 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 115.55 LIQUOR&SPIRITS ORDER 184449 0083830600 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 261.98 151244 5/8/2020 114472 BREAKTHRU BEVERAGE MN BEER,LLC 13,876.95 BEER ORDER 184442 1091134182 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 13,876.95 151245 5/8/2020 114471 BREAKTHRU BEVERAGE MN WINE&SPIRITS 611.15 WINE ORDER 184440 1081127607 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,020.31 LIQUOR&SPIRITS ORDER 184441 1081127606 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,631.46 151246 5/8/2020 100430 BROCK WHITE COMPANY LLC 190.92 STRAW WADDLE/STAKES:MARGLD PRK 184515 13914075-00 1090 6255 LANDSCAPING MATERIALS PARK MAINTENANCE 01000 09 190.92 151247 5/8/2020 110218 BURNET TITLE 15.66 REF UTIL CR@5591 EUCLID WAY 184470 2111020-01001 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 197.52 REF UTIL CR@5195 UPR 183 ST W 184473 2111020-01284 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 73.82 REF UTIL CR@611 11TH ST 184478 2111020-01889 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 287.00 151248 5/8/2020 100026 CINTAS CORP LOC 754 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 7 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 48.13 APR'20 WEEKLY UNIFORM SERVICES 183739 4046942828 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 43.23 APR'20 WEEKLY UNIFORM SERVICES 183739 4046942828 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 43.13 APR'20 WEEKLY UNIFORM SERVICES 183739 4046942828 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 43.13 APR'20 WEEKLY UNIFORM SERVICES 183739 4046942828 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 43.13 APR'20 WEEKLY UNIFORM SERVICES 183739 4046942828 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 42.61 APR'20 WEEKLY UNIFORM SERVICES 183739 4046942828 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 53.13 APR'20 WEEKLY UNIFORM SERVICES 164109 4047475140 1070 6290 UNIFORMS&CLOTHING ENGINEERING SERVICES 01000 07 53.13 APR'20 WEEKLY UNIFORM SERVICES 184109 4047475140 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 3.17- 184109 4047475140 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 49.13 APR'20 WEEKLY UNIFORM SERVICES 164109 4047475140 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 42.84 APR'20 WEEKLY UNIFORM SERVICES 184109 4047475140 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 46.13 APR'20 WEEKLY UNIFORM SERVICES 184109 4047475140 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 49.30 APR'20 WEEKLY UNIFORM SERVICES 184109 4047475140 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 43.13 APR'20 WEEKLY UNIFORM SERVICES 184173 4048105431 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 43.13 APR'20 WEEKLY UNIFORM SERVICES 184173 4048105431 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 2.97- 184173 4048105431 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 47.37 APR'20 WEEKLY UNIFORM SERVICES 184173 4048105431 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 46.10 APR'20 WEEKLY UNIFORM SERVICES 184173 4048105431 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 43.13 APR'20 WEEKLY UNIFORM SERVICES 184173 4048105431 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 42.61 APR'20 WEEKLY UNIFORM SERVICES 184173 4048105431 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 48.36 APR'20 WEEKLY UNIFORM SERVICES 184238 4048674850 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 43.13 APR'20 WEEKLY UNIFORM SERVICES 184238 4048674850 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 3.31- 184238 4048674850 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 48.13 APR'20 WEEKLY UNIFORM SERVICES 184238 4048674850 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 51.44 APR'20 WEEKLY UNIFORM SERVICES 184238 4048674850 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 48.13 APR'20 WEEKLY UNIFORM SERVICES 184238 4048674850 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 54.61 APR'20 WEEKLY UNIFORM SERVICES 184238 4048674850 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 43.30 APR'20 WEEKLY UNIFORM SERVICES 184371 4049201274 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 44.13 APR'20 WEEKLY UNIFORM SERVICES 184371 4049201274 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 3.03- 184371 4049201274 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 44.20 APR'20 WEEKLY UNIFORM SERVICES 184371 4049201274 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 47.16 APR'20 WEEKLY UNIFORM SERVICES 184371 4049201274 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 44.13 APR'20 WEEKLY UNIFORM SERVICES 184371 4049201274 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 42.61 APR'20 WEEKLY UNIFORM SERVICES 164371 4049201274 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 1,369.34 151249 5/8/2020 100071 COLLEGE CITY BEVERAGE INC 15.75- BEER ORDER CREDIT 184380 850-00050 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 12,894.15 BEER ORDER 184445 722-01495 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 82.06- BEER ORDER CREDIT 184447 729-01562 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 12,796.34 161250 5/8/2020 100081 DAKOTA COUNTY LUMBER COMPANY R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 8 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 50.90 SPF LUMBER:LCKR ROOM BENCH 184394 2004-752992 2502 6220 EQUIP SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 50.90 151251 5/8/2020 109892 DAKOTA FIRE CONTROL INC 141.31 FIRE EXTINGUISHER REFILLS 184224 20060 1060 6505 EQUIPMENT REPAIR/MAINTENANCE FIRE SERVICES 01000 06 141.31 151252 5/8/2020 110291 DCA TITLE 153.07 REF UTIL CR@3060 212TH ST W 184474 20-030205-Z 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 153.07 151253 5/8/2020 100241 DELEGARD TOOL CO 19.35 CYCLOPS RCHRG LIGHT-YELLOW 184468 187874 7200 6950 MACHINERY,EQUIPMENT&TOOLS FLEET OPERATIONS 07200 08 19.35 151264 5/8/2020 108967 DICK'S VALLEY SERVICE INC 196.03 20000455 FORFEITURE TOW 184484 219303 2100 6401 PROFESSIONAL SERVICES POLICE FORFEITURES 02100 05 196.03 151255 5/8/2020 110847 EAGLE CREEK TITLE LLC 25.65 REF UTIL CR@18612 DULANEY DR 184461 21938/18 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 25.65 151256 5/8/2020 113296 EDINA REALTY TITLE 155.86 REF UTIL CR@21004 FLAGSTONE WY 184458 1341598/95 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 72.12 REF UTIL CR@18897 ENGLEWOOD CT 184459 1344812/92 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 227.98 161257 6/8/2020 115191 EXECUTIVE TITLE OF MN,LLC 21.98 REF UTIL CR@18096 ELY AVE 184469 J020020465/64 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 21.98 151258 5/8/2020 103692 FASTENAL COMPANY 20.24 BLUE STAKE FLAGS 184152 MNLAK174544 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 20.24 151259 5/8/2020 117558 FINNLYTECHNOLOGY LLC 150.00 TECH SPPRT/ICE ARENA SOFTWARE 184374 1046 2502 6401 PROFESSIONAL SERVICES ICE ARENA OPERATIONS EXPE 02500 09 150.00 151260 518/2020 109294 FIRST AMERICAN TITLE 59.06 REF UTIL CR@1300 ELM ST 184476 1544891 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 59.06 161261 6/8/2020 117643 FLORES,ISRAEL 500.00 RRC DEP RETURN 053020 184381 053020 1000 2255 DEPOSITS PAYABLE GENERAL FUND BALANCE SHEE 01000 500.00 151262 5/8/2020 100077 FRONTIER COMMUNICATIONS R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 9 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 80.90 MAY'20 ARENA ALARM LINE 184291 651-463-3016 2502 6411 TELEPHONE/CABLE SERVICES ICE ARENA OPERATIONS EXPE 02500 09 MAY'20 80.90 151263 5/8/2020 100027 GREAT LAKES COCA-COLA DISTRIBUTION,LLC 607.56 POP ORDER 184421 3608209946 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 607.56 151264 5/8/2020 117645 HARTMAN,KAREN 40.00 CANCEL TRTLE LK CASINO TRIP 184550 052020 1001 4670 RECREATION FEES-SENIOR CTR GENERAL FUND REVENUES 01000 01 40.00 151265 5/8/2020 100007 HAWKINS INC 11,409.65 WELL CHEMICALS 184266 4703446 6502 6260 CHEMICALS WATER UTILITY EXPENSE 06500 08 11,409.65 151266 5/8/2020 109232 HELM ELECTRIC INC 676.23 INSTLL LGHT POLE-HWY 3 RNDABT 184411 13877B 6602 6401 PROFESSIONAL SERVICES STREETLIGHT UTILITY EXPEN 06600 08 676.23 151267 5/8/2020 100074 HOHENSTEINS INC 332.80 BEER ORDER 184420 200931 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,870.70 BEER ORDER 164548 201488 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,203.50 151268 5/8/2020 112416 IMPACT MAILING OF MN,INC 186.83 APR'20 UB BILL POSTAGE 184529 147207 6502 6445 POSTAGE WATER UTILITY EXPENSE 06500 08 186.83 APR'20 UB BILL POSTAGE 184529 147207 6402 6445 POSTAGE STORM WATER UTILITY OPERA 06400 08 3.10- 184529 147207 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 186.83 APR'20 UB BILL POSTAGE 184529 147207 6302 6445 POSTAGE SOLID WASTE OPERATIONS 06300 08 186.83 APR'20 UB BILL POSTAGE 184529 147207 6202 6445 POSTAGE SEWER OPERATIONS EXPENSE 06200 08 45.06 APR'20 UB MAIL PREP 184529 147207 6202 6401 PROFESSIONAL SERVICES SEWER OPERATIONS EXPENSE 06200 08 48.16 APR'20 UB MAIL PREP 184529 147207 6302 6401 PROFESSIONAL SERVICES SOLID WASTE OPERATIONS 06300 08 45.06 APR'20 UB MAIL PREP 184529 147207 6402 6401 PROFESSIONAL SERVICES STORM WATER UTILITY OPERA 06400 08 45.06 APR'20 UB MAIL PREP 184529 147207 6502 6401 PROFESSIONAL SERVICES WATER UTILITY EXPENSE 06500 08 927.56 151269 5/8/2020 117341 INBOUND BREWCO 322.00 BEER ORDER 184438 6755 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 322.00 151270 5/8/2020 109846 JJ TAYLOR DISTRIBUTING COMPANY OF MN INC 5,491.20 BEER ORDER 184417 3084583 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 7,500.55 BEER ORDER 184547 3096411 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 12,991.75 161271 5/8/2020 100033 JOHNSON BROTHERS LIQUOR COMPANY R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 10 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 229.02 SVEDKA VODKA ORDER 184416 1547972 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 455.02 CROWN ROYAL ORDER 184418 1549502 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 210.02 WINE ORDER 184419 1547973 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 297.36 WINE ORDER 184425 1547970 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 25.60 KINKY COCKTAILS ORDER 184426 1547969 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 115.53 CUERVO MIX MARG ORDER 184427 1547971 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 742.28 LIQUOR&SPIRITS ORDER 184433 1547964 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 29.51 COCKTAIL ESNTL SIM SYRUP ORDER 184434 1547966 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,758.68 LIQUOR&SPIRITS ORDER 184435 1547968 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,673.73 CAPTAIN MORGAN ORDER 184436 1547967 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 357.06 WINE ORDER 184437 1547965 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,076.29 WINE ORDER 184533 1551944 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 38.51 CUERVO MIX MARG LIME ORDER 184536 1551943 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,925.51 LIQUOR&SPIRITS ORDER 184538 1551940 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,797.42 LIQUOR&SPIRITS ORDER 184539 1551942 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 33.51 AGALIMA MARGARITA ORDER 184541 1551939 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,618.84 WINE ORDER 184542 1551938 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 5,149.44 LIQUOR&SPIRITS ORDER 184543 1551936 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,657.09 LIQUOR&SPIRITS ORDER 184544 1551937 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 283.53 SEAGRAMS 7 CROWN ORDER 164545 1551855 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,434.98 WINE ORDER 184546 1551941 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 23,908.93 151272 5/8/2020 100715 MENARDS-APPLE VALLEY 2.49 SPRAY BOTTLES 184413 78188 1015 6242 00019 CLEANING SUPPLIES CITY HALL 01000 01 2.49 SPRAY BOTTLES 184413 78188 1050 6242 00019 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 4.98 SPRAY BOTTLES 184413 78188 1060 6242 00019 CLEANING SUPPLIES FIRE SERVICES 01000 06 1.00 SPRAY BOTTLES 184413 78188 1072 6242 00019 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 2.49 SPRAY BOTTLES 184413 78188 1090 6242 00019 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 2.49 SPRAY BOTTLES 184413 78188 1093 6242 00019 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 1.00 SPRAY BOTTLES 184413 78188 6202 6242 00019 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 1.00 SPRAY BOTTLES 184413 78188 6302 6242 00019 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 1.00 SPRAY BOTTLES 184413 78186 6402 6242 00019 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 .96 SPRAY BOTTLES 184413 78188 6502 6242 00019 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 19.90 151273 5/8/2020 100527 METRO ALARM CONTRACTORS INC 337.44 JUN-AUG'20 PKALARM MONITOR 184363 039328 6115 6401 PROFESSIONAL SERVICES PILOT KNOB LIQUOR 06100 02 273.17 JUN-AUG'20 DTALARM MONITOR 184379 039327 6110 6401 PROFESSIONAL SERVICES DOWNTOWN LIQUOR REV&EXP 06100 02 610.61 151274 5/8/2020 117647 MFH LLC 129.11 REF UTIL CR@5669 180TH ST W 184530 OVER PYMT ON FINA6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 BILL R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 11 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 129.11 - 151275 5/8/2020 100070 MINNESOTA VALLEY TESTING LABORATORIES 63.00 BAC-T SAMPLE(6) 184048 1026904 6502 6401 PROFESSIONAL SERVICES WATER UTILITY EXPENSE 06500 08 63.00 151276 5/8/2020 107932 MOOD MEDIA 93.25 MAY 2020 RADIO SVS-LIQUOR 164364 55361935 6110 6401 PROFESSIONAL SERVICES DOWNTOWN LIQUOR REV&EXP 06100 02 93.25 MAY 2020 RADIO SVS-LIQUOR 184364 55361935 6115 6401 PROFESSIONAL SERVICES PILOT KNOB LIQUOR 06100 02 186.50 151277 5/8/2020 107424 MUZZY,ANN 10.00 CANCEL TRTLE LK CASINO TRIP 184453 052020 1001 4670 RECREATION FEES-SENIOR CTR GENERAL FUND REVENUES 01000 01 10.00 151278 5/8/2020 116942 OMNI BREWING COMPANY,LLC 273.00 BEER ORDER 184446 E-7047 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 273.00 151279 5/8/2020 100290 PAUSTIS&SONS WINE COMPANY 266.25 WINE ORDER 184415 87740 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 266.25 151280 5/8/2020 100093 PELLICCI HARDWARE&RENTAL 34.99 SM MILK HOUSE HTR:LIFT STATN 183934 K34358/F 6202 6950 MACHINERY,EQUIPMENT&TOOLS SEWER OPERATIONS EXPENSE 06200 08 9.99 DISINFECTANT SPRAY 183937 K34237/F 1090 6242 00019 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 3.99 PAINT BRUSH FOR GRAFFITI 183938 K34236 1090 6540 VANDALISM PARK MAINTENANCE 01000 09 26.99 LIGHT FOR FIRE ST 1 FLAG POLE 183959 36231/F 1060 6240 BUILDING SUPPLIES&PARTS FIRE SERVICES 01000 06 9.99 CAUTION TAPE FOR TRAIL CLOSED 184037 K34294/F 1090 6250 OTHER SUPPLIES&PARTS PARK MAINTENANCE 01000 09 32.12 RAGS IN A BOX 184043 K34656/F 6115 6242 CLEANING SUPPLIES PILOT KNOB LIQUOR 06100 02 22.99 FLASH LIGHT 184049 K34566/F 1072 6950 MACHINERY,EQUIPMENT&TOOLS STREET MAINTENANCE 01000 08 13.98 WINDOW SEALANT 184110 K34624/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 1.49 THREAD SEAL TAPE 184125 K34655/F 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 63.92 TOTE/HOOKS:ARMORY 184136 K34481/F 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 6.99 CARTON SEAL TAPE 184150 K34708/F 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 7.99 REPL DOOR PROP 184160 34684/F 1050 6240 BUILDING SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 39.97 PAINTAND TOGGLE SWITCH 184168 K34583/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 8.25 CARPET CLEANER 184169 34558/F 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 8.23 CARPETCLEANER 184169 34558/F 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 .23- 184169 34558/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 16.49 CARPET CLEANER 184169 345581F 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 3.30 CARPET CLEANER 184169 34558/F 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 8.25 CARPET CLEANER 184169 34558/F 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 8.25 CARPET CLEANER 184169 34558/F 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 3.30 CARPET CLEANER 184169 34558/F 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 12 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 3.53 CARPET CLEANER 184169 34558/1' 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 3.30 CARPET CLEANER 184169 34558/F 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 3.30 CARPET CLEANER 184169 34558/F 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 9.99 PRESSURE GAUGE 184170 K34595/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 23.46 PAINTAND PAINT SUPPLIES 184171 K34634/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 47.94 PAINTING SUPPLIES 184172 34538/F'20 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 19.96 MSKNG TAPE/PAINT BRUSHES 184174 K34647/F 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 4.12 WINDOW CLEANING SUPPLIES 184176 K34680/F 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 4.12 WINDOW CLEANING SUPPLIES 184176 K346801F 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 .11- 184176 K34680/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 8.24 WINDOW CLEANING SUPPLIES 184176 K34680/F 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 1.65 WINDOW CLEANING SUPPLIES 184176 K34680/F 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 4.12 WINDOW CLEANING SUPPLIES 184176 K34680/F 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 4.12 WINDOW CLEANING SUPPLIES 184176 K34680/F 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 1.65 WINDOW CLEANING SUPPLIES 184176 K34680/F 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 1.76 WINDOW CLEANING SUPPLIES 184176 K34680/F 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 1.65 WINDOW CLEANING SUPPLIES 184176 K34680/F 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 1.65 WINDOW CLEANING SUPPLIES 184176 K34680/F 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 34.98 PAINT 184177 347021F 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 277.44 RUST REMOVER(48) 184183 43385/F 6502 6250 OTHER SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 3.58 BAR SOAP 184223 K34669/F 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 29.99 HEX KEY SET 22 PC EKLIND 184223 K34669/F 1060 6950 MACHINERY,EQUIPMENT&TOOLS FIRE SERVICES 01000 06 12.98 CAULK 184235 K34786/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 46.97 PAINT/ROLLERS 184236 43276/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 49.95 PRESSURE GUAGES(5) 184236 43276/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 29.72 ROLLER COVERS/NUTS/BOLTS 184237 K34842/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 87.93 PAINT/BRUSHS/ROLLER CVRS 184239 K34864/F 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 51.96 PAINT/GPX LG BOX(2) 184240 34886/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 19.26 GLASS CLNR/RAGS IN A BOX 184249 K34900/F 6110 6242 CLEANING SUPPLIES DOWNTOWN LIQUOR REV&EXP 06100 02 19.26 DEGREASER/MOPHEAD 184251 K34932/F 6110 6242 CLEANING SUPPLIES DOWNTOWN LIQUOR REV&EXP 06100 02 59.99 GRASS SEED 184261 K34874/F 1090 6255 LANDSCAPING MATERIALS PARK MAINTENANCE 01000 09 16.98 FROG TAPE/SANDSPNG 180 GR 184287 K34926/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 2.99 CAULK 184289 K34980/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 56.97 TAPE/PAINT TRAY KIT 164290 K35023/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 25.98 LAG BOLTS/KNEE PADS 184366 K35046/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 12.99 CABLE TIES 184372 K35086/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 5.96 WALL PLATE 184373 35081/F'20 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 2.62 TOLIET BRUSH&CADDY 184387 K34992/F 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 2.62 TOLIET BRUSH&CADDY 184387 K34992/F 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 .07- 184387 K34992/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 5.24 TOLIET BRUSH CADDY 184387 K34992/F 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 1.05 TOLIET BRUSH&CADDY 184387 K34992/F 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 13 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 2.62 TOLIET BRUSH&CADDY 184387 K34992/F 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 2.62 TOLIET BRUSH&CADDY 184387 K34992/F 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 010DD 09 1.05 TOLIET BRUSH&CADDY 184387 K34992/F 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 1.12 TOLIET BRUSH&CADDY 184387 K34992/F 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 1.05 TOLIET BRUSH&CADDY 184387 K34992/F 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 1.05 TOLIET BRUSH&CADDY 184387 K34992/F 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 4.37 CLEANING SUPPLY TRAY 184388 46799/F'20 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 4.37 CLEANING SUPPLY TRAY 184388 46799/F'20 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 .12- 184388 46799/F'20 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 8.75 CLEANING SUPPLY TRAY 184388 46799/1''20 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 1.75 CLEANING SUPPLY TRAY 184388 46799/1''20 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 4.37 CLEANING SUPPLY TRAY 164388 46799/1''20 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 4.37 CLEANING SUPPLY TRAY 184388 46799/F'20 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 1.75 CLEANING SUPPLY TRAY 184388 46799/F'20 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 1.87 CLEANING SUPPLY TRAY 184388 46799/F'20 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 1.75 CLEANING SUPPLY TRAY 184388 46799/F'20 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 1.76 CLEANING SUPPLY TRAY 184388 46799/F'20 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 81.96 PAINT 184392 K35040/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 59.99 GRASS SEED 184404 35048/F 1090 6255 LANDSCAPING MATERIALS PARK MAINTENANCE 01000 09 40.98- RETRN:DEFECTIVE PAINT 184522 35238/F CR 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 1,478.50 151281 51812020 117193 PEMBERTON LAW,P.L.L.P. 55.00 APRIL'20 HR LEGAL SVS 184361 20196312-OOOM 1010 6403 LEGAL ADMINISTRATION 01000 01 MAR'20 55.00 151282 5/8/2020 100034 PHILLIPS WINE AND SPIRITS,INC 80.62 ZING ZANG MIXES ORDER 184429 6028195 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,258.43 LIQUOR&SPIRITS ORDER 184430 6028193 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 248.80 WINE ORDER 184431 6028194 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 83.82 ZING ZANG BL MARY MIX ORDER 184534 6030510 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 550.61 WINE ORDER 184535 6030509 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,520.89 LIQUOR&SPIRITS ORDER 184540 6030508 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 4,743.17 151283 5/8/2020 110664 PREMIER TITLE INSURANCE AGENCY INC 37.10 REF UTIL CR@816 SPRUCE ST 184477 35450/40 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 37.10 151284 5/8/2020 117228 QUICK SHIP PLUS 239.98 FED EX OVERNIGHT SHIPPING 184464 12696 6502 6445 POSTAGE WATER UTILITY EXPENSE 06500 08 239.98 161286 5/8/2020 117646 RESULTS TITLE R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 14 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 181.15 REF UTIL CR@19944 ENGLISH CT 184531 20-01374 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 181.15 151286 5/8/2020 102616 RIGID HITCH INC 119.97 HITCH FOR 0737 184386 1928298224 1072 6230 VEHICLE SUPPLIES&PARTS STREET MAINTENANCE 01000 08 128.22 HITCH FOR 3202 184386 1928296224 6302 6230 VEHICLE SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 8.25- 184386 1928298224 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 239.94 151287 5/8/2020 107018 SHAMROCK GROUP 125.89 ICE CUBE ORDER 184422 2493560 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 125.89 161288 6/8/2020 117650 SILVERTREE PLBG&HTG 55.00 VOID PLBG PRMT45398 184561 VOID PLBG PRMT 1001 4315 PLUMBING&HEATING PERMITS GENERAL FUND REVENUES 01000 01 45398 55.00 151289 5/8/2020 112061 SOUTHERN GLAZER'S OF MN 1.28 DELIVERY CHARGE 184432 1947319 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,872.05 WINE ORDER 184439 1947320 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 5,978.86 LIQUOR&SPIRITS ORDER 184549 1949363 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 7,852.19 161290 5/8/2020 112422 STANTEC CONSULTING SERVICES INC 1,716.00 MAR-20 SVS:PRK BRIDGE INSPCTNS 184479 1645937 2300 6401 PROFESSIONAL SERVICES PARK IMPROVEMENT FUND 02300 09 109.50 MAR'20 SVS:BRIDGE INSPCTNS 184479 1645937 1070 6401 PROFESSIONAL SERVICES ENGINEERING SERVICES 01000 07 1,825.50 151291 6/8/2020 100619 TC CONSTRUCTION,INC 3,000.00 ER 6663 210TH ST W 184481 ER 6663 210TH ST W 4600 2255 DEPOSITS PAYABLE PRIVATE CAPITAL PROJECTS 04600 07 3,000.00 161292 5/8/2020 113764 TITLE SMART,INC 206.20 REF UTIL CR@1308 WILLOW TRL 184475 216442/40 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 206.20 151293 5/8/2020 114013 TRADEMARK TITLE SERVICES,INC 96.85 REF UTIL CR@22403 CANTREL WAY 184457 20-1247/79 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 70.48 REF UTIL CR@5421 ORIOLE DR 184472 20.0520/55 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 167.33 161294 6/8/2020 110964 ULINE SHIPPING&SUPPLY SPECIALISTS,INC 100.35 SHOP STOOLS:ARMORY 184132 118993289 1051 6960 FURNITURE,OFFICE EQUIP,IT PATROL SERVICES 01000 05 100.35 161295 5/8/2020 108808 VINOCOPIA,INC 216.50 WINE ORDER 184444 0256047-IN 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 15 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 216.50 161296 5/6/2020 114968 VOUGHT,PEGGY 10.00 CANCEL TRTLE LK CASINO TRIP 184454 052020 1001 4670 RECREATION FEES-SENIOR CTR GENERAL FUND REVENUES 01000 01 10.00 161297 6/8/2020 113123 WATERMARK TITLE AGENCY,LLC 64.59 REF UTIL CR@5447 188TH ST W 184471 66381 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 64.59 151298 5/8/2020 100334 WINE MERCHANTS 137.51 WINE ORDER 184428 7282310 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 416.53 WINE ORDER 184532 7283031 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 554.04 161299 6/8/2020 116396 MACQUEEN EMERGENCY GROUP 250.00 SANITIZER WIPES 183945 P03246 1060 6242 00019 CLEANING SUPPLIES FIRE SERVICES 01000 06 127.26 LIMIT SWITCHES(10) 184091 P26759 6302 6230 VEHICLE SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 79.86 SWITCHES(3) 184092 P26788 6302 6230 VEHICLE SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 06 771.94 ENGINE 22 PUMP REPAIR/TEST 184229 W01922 1060 6510 VEHICLE REPAIR/MAINTENANCE FIRE SERVICES 01000 06 129.38- CREDIT FOR ENG 22 PUMP REPAIR 184230 W01945 CR 1060 6510 VEHICLE REPAIR/MAINTENANCE FIRE SERVICES 01000 06 449.95 FIREFIGHTING GLOVES 184231 P02943 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 695.70 FIRE FIGHTING FOAM 184233 P02945 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 2,245.33 20200411 4/2/2020 100394 XCEL ENERGY 45.70 FEB'20 ELEC DOWNTOWN ST LTS 184244 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 FEB'20 821.26 FEB'20 ELEC WELL#1&3 184244 51-4874005-0 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 FEB'20 1.23- 184244 51-4874005-0 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 FEB'20 61.24 FEB'20 ELEC LIFT STATIONS 184244 51-4874005-0 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 FEB'20 52.52 FEB'20 ELEC TRAFFIC SIGNAL 184244 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 FEB'20 154.02 FEB'20 ELEC ROUNDABOUT 184244 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 FEB'20 23.09 FEB'20 ELEC CITY GARAGE 184244 51-4874005-0 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 FEB'20 189.88 FEB'20 ELEC CITY GARAGE 184244 51-4874005-0 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 FEB'20 19.19 FEB'20 ELEC CITY GARAGE 184244 51-4874005-0 6302 6422 ELECTRIC SOLID WASTE OPERATIONS 06300 08 FEB'20 5.13 FEB'20 ELEC CITY GARAGE 184244 51-4874005-0 6402 6422 ELECTRIC STORM WATER UTILITY OPERA 06400 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 16 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div FEB'20 7.70 FEB'20 ELEC CITY GARAGE 184244 51-4874005-0 1072 6422 ELECTRIC STREET MAINTENANCE 01000 08 FEB'20 12.83 FEB'20 ELEC CITY GARAGE 184244 51-4874005-0 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 FEB'20 6,798.55 FEB-20 ELEC NON-METER ST LTS 184244 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 FEB'20 8,189.88 20200412 4/20/2020 112399 DEARBORN LIFE INSURANCE COMPANY 1,384.59 APR'20 STD INSURANCE PREMIUMS 184153 019839-1 APR'20 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 234.64 MAY'20 STD INSURANCE PREMIUMS 184154 019839-1 MAY'20 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 1,619.23 20200413 4/20/2020 111046 VOYAGER FLEET SYSTEMS INC 3,449.59 MARTO FUEL POLICE 183578 869088237 MARTO 1051 6272 FUEL PATROL SERVICES 01000 05 POLICE 47.04 MAR'20 FUEL FLEET 183630 869088237013 7200 6272 FUEL FLEET OPERATIONS 07200 08 MARTO FLEET 197.77 MAR'20 FUEL SOLID WASTE 183631 869088237013 6302 6272 FUEL SOLID WASTE OPERATIONS 06300 08 MARTO SLD W 12.72- 183631 869088237013 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 MARTO SLD W 75.71 MAR'20 FUEL NAT RES 183634 869088237013 1090 6272 FUEL PARK MAINTENANCE 01000 09 MARTO NAT R 592.70 MARTO FUEL SEWER 183635 869088237013MAR/206202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 SWR 186.18 MAR'20 FUEL STORM 183636 869088237013 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 MARTO STRM 160.44 MARTO FUEL WATER 183637 869088237013 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 MARTO WATER 549.01 MAR'20 FUEL ST/SNOW 183638 869088237013 1072 6272 FUEL STREET MAINTENANCE 01000 08 MARTO ST/SN 10.51 MAR'20 FUEL BLDG MAINT 183641 869088237013 1015 6272 FUEL CITY HALL 01000 01 MARTO MAINT 10.51 MARTO FUEL BLDG MAINT 183641 869088237013 1050 6272 FUEL POLICE ADMINISTRATION 01000 05 MARTO MAINT .29- 183641 869088237013 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 MARTO MAINT 21.02 MAR'20 FUEL BLDG MAINT 183641 869088237013 1060 6272 FUEL FIRE SERVICES 01000 06 MAR'20 MAINT 4.20 MAR'20 FUEL BLDG MAINT 183641 869088237013 1072 6272 FUEL STREET MAINTENANCE 01000 08 MARTO MAINT R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 17 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 10.51 MAR'20 FUEL BLDG MAINT 183641 869088237013 1090 6272 FUEL PARK MAINTENANCE 01000 09 MAR'20 MAINT 10.51 MAR'20 FUEL BLDG MAINT 183641 869088237013 1093 6272 FUEL SENIOR CITIZEN SERVICES 01000 09 MAR'20 MAINT 4.20 MAR'20 FUEL BLDG MAINT 183641 869088237013 6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 MAR'20 MAINT 4.49 MAR'20 FUEL BLDG MAINT 183641 869088237013 6302 6272 FUEL SOLID WASTE OPERATIONS 06300 08 MAR'20 MAINT 4.20 MAR'20 FUEL BLDG MAINT 183641 869088237013 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 MAR'20 MAINT 4.23 MAR'20 FUEL BLDG MAINT 183641 869088237013 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 MAR'20 MAINT 3.75 MAR'20 FUEL JANITORIAL 183642 869088237013 1015 6272 FUEL CITY HALL 01000 01 MAR'20 JANIT 3.75 MAR'20 FUEL JANITORIAL 183642 869088237013 1050 6272 FUEL POLICE ADMINISTRATION 01000 05 MAR'20 JANIT .10- 183642 869088237013 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 MAR'20 JANIT 7.50 MAR'20 FUEL JANITORIAL 183642 869088237013 1060 6272 FUEL FIRE SERVICES 01000 06 MAR'20 JANIT 1.50 MAR'20 FUEL JANITORIAL 183642 869088237013 1072 6272 FUEL STREET MAINTENANCE 01000 08 MAR'20 JANIT 3.75 MAR'20 FUEL JANITORIAL 183642 869088237013 1090 6272 FUEL PARK MAINTENANCE 01000 09 MAR'20 JANIT 3.75 MAR'20 FUEL JANITORIAL 183642 869088237013 1093 6272 FUEL SENIOR CITIZEN SERVICES 01000 09 MAR'20 JANIT 1.50 MAR'20 FUEL JANITORIAL 183642 869088237013 6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 MAR'20 JANIT 1.60 MAR'20 FUEL JANITORIAL 183642 869088237013 6302 6272 FUEL SOLID WASTE OPERATIONS 06300 08 MAR'20 JANIT 1.50 MAR'20 FUEL JANITORIAL 183642 869088237013 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 MAR'20 JANIT 1.49 MAR'20 FUEL JANITORIAL 183642 869088237013 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 MAR'20 JANIT 625.49 MAR'20 FUEL PARKS 183643 869088237013 1090 6272 FUEL PARK MAINTENANCE 01000 09 MAR'20 PARKS 146.44 MAR'20 FUEL BLDG INSP 183836 869088237013 1031 6272 FUEL BUILDING INSPECTIONS 01000 07 MAR'20 INSP 610.09 MAR'20 FUEL FIRE 183853 869088237013 1060 6272 FUEL FIRE SERVICES 01000 06 MAR'20 FIRE 6,741.82 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 18 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 20200414 4/20/2020 108980 MINNESOTA ENERGY RESOURCES CORPORATION 133.60 MAR'20 GAS PK LIQ STORE 183877 0507026961 MAR'20 6115 6423 NATURAL GAS PILOT KNOB LIQUOR 06100 02 133.60 20200415 4/22/2020 100394 XCEL ENERGY 29.73 MAR'20 ELEC-LINDEN ST LFT STN 183839 51-6585658-8 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MAR'20 180.32 190TH ST BRIDGE LIGHTS 183840 51-9371130-1 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 29.73 MAR'20 ELEC-5262 208TH ST LTS 183841 51-8391412-3 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 169.76 MAR'20 ELEC-321 ELM ST LTS 183842 51-8608862-8 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 895.15 MAR'20 ELEC-DT LIQ STORE 183875 51-4874008-3 6110 6422 ELECTRIC DOWNTOWN LIQUOR REV&EXP 06100 02 MAR'20 40.08 MAR'19 ELEC-DUNBRYAVE WRM HSE 183901 51-9027188-0 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 MAR'20 19.54 MAR'20 ELEC-ELM ST EDA SIGN 183940 51-4874009-4 2000 6422 ELECTRIC HRA/ECONOMIC DEVELOPMENT 02000 03 MAR'20 1,364.31 20200416 4/23/2020 114654 INVOICE CLOUD 568.86 MAR'20 IC PYMT FEES 184226 819-20203 6202 6545 PYMT PROCESSING FEES SEWER OPERATIONS EXPENSE 06200 08 568.86 MAR'20 IC PYMT FEES 184226 819-20203 6302 6545 PYMT PROCESSING FEES SOLID WASTE OPERATIONS 06300 08 568.86 MAR'20 IC PYMT FEES 184226 819-20203 6402 6545 PYMT PROCESSING FEES STORM WATER UTILITY OPERA 06400 08 568.87 MAR'20 IC PYMT FEES 184226 819-20203 6502 6545 PYMT PROCESSING FEES WATER UTILITY EXPENSE 06500 08 2,275.45 20200417 4/24/2020 100135 PUBLIC EMPLOYEES RETIREMENT ASSN. 23,302.34 184139 0423201125531 7000 2113 PERA PAYABLE EMPLOYEE EXPENSE FUND 07000 02 30,946.92 184140 0423201125532 7000 6154 PERA EMPLOYEE EXPENSE FUND 07000 02 54,249.26 20200418 4/23/2020 117261 USPS POSTALONE 94.99 SUMMER'20 RRC NEWSLETTER POSTG 184362 377447299APR'20 1014 6445 POSTAGE COMMUNICATIONS 01000 01 94.99 20200419 4/27/2020 100085 DAKOTA ELECTRIC ASSOCIATION 37.03 MAR'20 ELEC PARK&REC SIGN 183838 200002260479 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 MAR'20 19.14 MAR'20 ELEC SPRUCE ST MNMNT LT 183843 200004099123 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 41.28 MAR'19 ELEC WELL#9 183844 200010028004 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 19.50 MAR'20 ELEC 220TH ST LIFT STN 183845 200001405224 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 19 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div MARTO 609.54 MAR'20 ELEC FIRE STATION 1 183856 200001679489 1060 6422 ELECTRIC FIRE SERVICES 01000 06 MARTO 267.65 MAR'20 ELEC DNMRK/SPRCE ST LTS 183929 200004222477 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MARTO 17.94 MARTO PK CITY SIGN NORTH ENTR 183936 200010011266 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 OMAR'20 1,012.08 20200420 4/28/2020 102160 CARDMEMBER SERVICES 14.60 CREAMER 183666 3544-9127-3/11 1093 6570 PROGRAMMING EXPENSE SENIOR CITIZEN SERVICES 01000 09 12.49 WIPES:FITNESS CTR 183667 3544-2838-3/9 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 103.75 COFFE FOR PROGRAMS 183668 3544-8950-3/6 1093 6570 PROGRAMMING EXPENSE SENIOR CITIZEN SERVICES 01000 09 4.26 BAGS FOR WIPES 183672 6860-8370-3/20 6302 6242 00019 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 .27- 183672 6860-8370-3/20 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 290.00 OPER SCHOOL REG-ARNDT,S 183673 8678-7100-3/12 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 290.00 OPER SCHOOL REG-BERRA,,N 183673 8678-7100-3/12 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 290.00 OPER SCHOOL REG-WALTMAN,M 183673 8678-7100-3/12 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 46.05 SHIPPING:RADIO HEADSET REPAIR 183773 4021-7057-3/18 1050 6445 POSTAGE POLICE ADMINISTRATION 01000 05 595.00 INTAFFAIRS INV TRNG:MURPHY, 183775 4021-7598-3/6 1052 6470 TRAINING&SUBSISTANCE INVESTIGATION SERVICES 01000 05 50.00 IALEP DUES 2020:MURPHY,J 183780 4021-8138-3/12 1052 6460 MEMBER DUES&LICENSURE INVESTIGATION SERVICES 01000 05 60.00 CRITICAL INCIDENT TRNG:SAUTER 183783 4021-6936-3/16 1051 6470 TRAINING&SUBSISTANCE PATROL SERVICES 01000 05 1,699.00 LARGE SCREEN TV 183784 3544-2281-3/6 4502 6960 FURNITURE,OFFICE EQUIP,IT RRC CAPITAL IMPROVEMENT F 04500 09 104.94 REMOTE WORKER KEYBOARDS/MICE 183788 4021-8507-3/20 1050 6220 00019 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 105.00 REMOTE WORKER KEYBOARDS/MICE 183788 4021-8507-3/20 1052 6220 00019 EQUIP SUPPLIES&PARTS INVESTIGATION SERVICES 01000 05 71.97 INV LAPTOP CASES(3) 183789 4021-0910-3/20 1052 6220 00019 EQUIP SUPPLIES&PARTS INVESTIGATION SERVICES 01000 05 113.78 ANTIBACTERIAL HAND SOAP 183790 4021-1675-3/6 1050 6242 00019 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 12.94 DATE STAMP 183791 4021-5944-3/6 1010 6210 OFFICE SUPPLIES ADMINISTRATION 01000 01 24.97 SQUAD PHONE CHARGERS 183792 4021-2224-3/6 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 24.94 SQUAD PHONE HOLDER 183793 4021-4780-3/6 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 163.38 REPL COOLING FAN 183794 4021-7473-3/6 6202 6220 EQUIP SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 1,403.00 MARTO VERIZON DATA SERVICE 183800 6913-4819-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 3,181.65 MARTO CELL PHONE SERVICE 183800 6913-4819-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 30.00- MAR'20 NEW EQUIP CREDIT 183800 6913-4819-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 127.95- MARTO CELL PHONE SVS-DBB 183800 6913-4819-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 127.95 MAR'20 CELL PHONE SVS-DBB 183800 6913-4819-3/18 2000 6412 20 CELLULAR SERVICES-DBB HRA/ECONOMIC DEVELOPMENT 02000 03 127.95- MAR'20 CELL PHONE SVS-DBB 183800 6913-4819-3/18 2000 6412 20 CELLULAR SERVICES-DBB HRA/ECONOMIC DEVELOPMENT 02000 03 127.95 MAR'20 CELL PHONE SVS-DBB 183800 6913-4819-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 42.65- MAR'20 CELL PHONE SVS-DBB 183800 6913-4819-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 42.65 MAR'20 CELL PHONE SVS-DBB 183800 6913-4819-3/18 2000 6412 20 CELLULAR SERVICES-DBB HRA/ECONOMIC DEVELOPMENT 02000 03 555.00 MNCAR Q2 PROGRAM 183803 8032-9068-3/16 2000 6570 PROGRAMMING EXPENSE HRA/ECONOMIC DEVELOPMENT 02000 03 125.00 MN REDEVELOPMENT CONE 183804 8032-3051-3/9 2000 6470 TRAINING&SUBSISTANCE HRA/ECONOMIC DEVELOPMENT 02000 03 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 20 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 80.53 LODGING:MN REDVLPMNT CONF 183805 8032-5501-3/12 2000 6470 TRAINING&SUBSISTANCE HRA/ECONOMIC DEVELOPMENT 02000 03 .99 MAR'20 ICLOUD STRGE SIEBENALER 183808 6913-7425-3/6 1014 6412 CELLULAR SERVICES COMMUNICATIONS 01000 01 4,199.97 3 LAPTOPS FOR PD DETECTIVES 183810 6913-7268-3/18 7400 6960 00019 FURNITURE,OFFICE EQUIP,IT INFORMATION TECHNOLOGY 07400 04 143.88 STRESE MISSING PERSON CONF 183811 4021-6548-3/11 1052 6470 TRAINING&SUBSISTANCE INVESTIGATION SERVICES 01000 05 398.70 SURFACE CASES(6) 183813 6913-2965-3/23 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 64.68 LENOVO LAPTOP REPL BATTERY 183813 6913-2965-3/23 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 68.97 HEADSET FOR PD HUB(3) 183814 0915-1165-3/23 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 172.74 SURFACE PENS(6) 183815 6913-5714-3/20 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 99.90 LAPTOP CASES FOR PD DETCVS(2) 183816 0915-7606-3/20 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 33.99 WRLESS CARD FOR T GEISE 183817 0915-1727-3/20 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 49.95 LAPTOP CASE FOR PD DETECVS(1) 183818 6913-2722-3/19 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 5.99 HDMI ADPTRS FOR CONF TVS 183819 0915-2542-3/18 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 14.17 FLASH DRIVE FOR IT 183820 0915-8687-3/9 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 319.90 SSD HD DR UPGRD OLD DSKTP(10) 183821 0915-6213-3/6 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 7.59 FIRE RECRUITMENT FACEBOOKAD 183828 6913-0647-3/6 1060 6494 EMPLOYMENT ADVERTISING FIRE SERVICES 01000 06 13.03 ARTS CRAFTS FAIR FACEBOOKAD 183828 6913-0647-3/6 4502 6492 ADVERTISING RRC CAPITAL IMPROVEMENT F 04500 09 19.90 COMPUTER GLASSES: SNYDER 183829 0915-3022-3/11 1070 6220 EQUIP SUPPLIES&PARTS ENGINEERING SERVICES 01000 07 74.73 FOOD FROM STATE TESTING EXAM 183634 6125-9188-3/9 1060 6470 TRAINING&SUBSISTANCE FIRE SERVICES 01000 06 19.95 MAR'20 EPERMITS PAYPAL FEES 164024 6913-0574-4/6 1031 6545 PYMT PROCESSING FEES BUILDING INSPECTIONS 01000 07 700.00 REGIONAL HAULER LICENSE 184025 6860-0034-3/27 6302 6460 MEMBER DUES&LICENSURE SOLID WASTE OPERATIONS 06300 08 .99 APR'20 ICLOUD STRGE SIEBENALER 184026 6913-3901-4/6 1014 6412 CELLULAR SERVICES COMMUNICATIONS 01000 01 44.56 FIRE RECRUITMENT FACEBOOKAD 184027 6913-3523-4/1 1060 6494 EMPLOYMENT ADVERTISING FIRE SERVICES 01000 06 4.79 ARTS CRAFTS FAIR FACEBOOKAD 184027 6913-3523-4/1 4502 6492 ADVERTISING RRC CAPITAL IMPROVEMENT F 04500 09 139.84 16 MINIDISPLAY NEW SURFACES 184028 0915-2989-3/30 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 34.99 HEADSET T.GEISE 184029 0915-5660-3/26 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 522.60 6 SURFACE KEYBOARDS 184030 6913-7641-3/24 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 7,776.00 6 SURFACE LAPTOPS 184031 6913-4997-3/24 7400 6960 00019 FURNITURE,OFFICE EQUIP,IT INFORMATION TECHNOLOGY 07400 04 835.62 6 SURFACE DOCKS 184031 6913-4997-3/24 7400 6220 00019 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 58.91 ZOOM WEBINAR SUBSCRIPTION 184032 0915-2223-3/31 7400 6505 00019 EQUIPMENT REPAIR/MAINTENANCE INFORMATION TECHNOLOGY 07400 04 276.14 COMP MOUNT FOR NEW FIRE CF TRK 184033 0915-1606-3/27 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 16.06 APR'20 MTHLY SUBSCRIPTION 164097 5212-8441-3/25 2000 6280 20 BOOKS&SUBSCRIPTIONS-DBB HRA/ECONOMIC DEVELOPMENT 02000 03 1,655.15 PET WASTE BAGS 184098 3387-6374-3/30 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 46.97 GLUE REMOVER 184099 3387-1347-3/30 2502 6220 EQUIP SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 79.94 GLUE REMOVER 184100 3367-7055-3/30 2502 6220 EQUIP SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 225.00 MIAMA MEMBERSHIP FEE 184101 3387-9559-3/24 2502 6460 MEMBER DUES&LICENSURE ICE ARENA OPERATIONS EXPE 02500 09 125.00 WATER OP CE TRNG:WALTMAN,M. 184102 8678-1925-3/26 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 125.00 WATER OP CE TRNG:BERRA,NICK 184103 8678-1586-3/26 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 207.76 POND AND PARK CLEANUP BUTTONS 184104 6984-0790-3/9 1095 6570 PROGRAMMING EXPENSE RECREATION PROGRAM SERVIC 01000 09 116.77 MATERIAL FOR TRNG PROP 184105 6125-7679-3/26 1060 6470 TRAINING&SUBSISTANCE FIRE SERVICES 01000 06 361.54 ISOLATION GOWNS(4) 184106 6133-5669-3/27 1060 6250 00019 OTHER SUPPLIES&PARTS FIRE SERVICES 01000 06 102.23 K-9 BITE SUIT RETURN SHIPPING 184111 4021-0617-3/26 1050 6445 POSTAGE POLICE ADMINISTRATION 01000 05 3.15 K-9 SITE SUIT RETURN SHIP ADJ 184112 4021-9016-3/30 1050 6445 POSTAGE POLICE ADMINISTRATION 01000 05 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 21 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 93.99 DIGITAL FOREHEAD THERMOMETER 184113 4021-5341-3/30 1050 6960 00019 FURNITURE,OFFICE EQUIP,IT POLICE ADMINISTRATION 01000 05 14.99 MAGNETIC LABEL HOLDERS 184114 4021-4006-3/31 1050 6220 00019 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 14.99 MAGNETIC LABEL HOLDERS 184115 4021-1936-3/31 1050 622D 00019 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 19.95 INV CAR CELL PHONE HOLDER 184116 4021-9411-4/1 1052 6220 EQUIP SUPPLIES&PARTS INVESTIGATION SERVICES 01000 05 28.49 PRINTER INK 184117 4021-3636-4/1 1052 6220 00019 EQUIP SUPPLIES&PARTS INVESTIGATION SERVICES 01000 05 87.73 HDMI CABLES FOR OFFICE MONITOR 184118 4021-2057-4/2 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 21.99 COMPUTER SWITCH FOR STATE COMP 184119 4021-8513-4/2 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 94.84 INV CSI SUPPLIES 184120 4021-7182-3/31 1052 6220 EQUIP SUPPLIES&PARTS INVESTIGATION SERVICES 01000 05 13.98 INV CSI SUPPLIES 184121 4021-0002-3/31 1052 6220 EQUIP SUPPLIES&PARTS INVESTIGATION SERVICES 01000 05 540.00 LICENSES FOR 6 OFFICERS 184123 4021-6277-4/6 1050 6460 MEMBER DUES&LICENSURE POLICE ADMINISTRATION 01000 05 61.54- REFUND SHIPPING FEES 184553 6133-5532-3/30 1060 6250 OTHER SUPPLIES&PARTS FIRE SERVICES 01000 06 80.53- EDAM CONF LODGING REFUND 184554 8032-4922-4/14 2000 6470 TRAINING&SUBSISTANCE HRA/ECONOMIC DEVELOPMENT 02000 03 100.00- BEDC SCHLRSHIP REFUND:SWIFT,K 184557 8032-0015-4/14 2000 6470 TRAINING&SUBSISTANCE HRA/ECONOMIC DEVELOPMENT 02000 03 85.00- RFND DOLI TRAINING-JOHNSON,L 184558 8032-9969-3/31 1031 6470 TRAINING&SUBSISTANCE BUILDING INSPECTIONS 01000 07 275.00- RFND:DTH INVSTGTN TRNG:MURPHY 184559 4021-1990-4/1 1052 6470 TRAINING&SUBSISTANCE INVESTIGATION SERVICES 01000 05 290.00- RFND:OPER SCHOOL:ARNDT 184610 8678-1967-4/6 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 290.00- RFND:OPER SCHOOL:BERRA 184610 8678-1967-4/6 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 290.00- RFND:OPER SCHOOL:WALTLMAN 184610 8678-1967-4/6 6502 6470 TRAINING&SUBSISTANCE WATER UTILITY EXPENSE 06500 08 28,018.90 20200501 5/5/2020 115438 AMERITAS LIFE INSURANCE CORP 6,754.80 APR'20 DENTAL INSURANCE 184375 010-44426 APR'20 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 6,036.74 MAR'20 DENTAL INSURANCE 184376 010-44446 MAR'20 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 12,791.54 20200502 5/1/2020 116053 109 ELM,LLC 12,394.58 MAY'20 DT LIQUOR STORE RENT 184180 MAY 2020 6110 6556 BUILDING RENTAL DOWNTOWN LIQUOR REV&EXP 06100 02 12,394.58 20200503 5/7/2020 114654 INVOICE CLOUD 559.73 APR'20 IC PYMT FEES 184560 819-20204 6202 6545 PYMT PROCESSING FEES SEWER OPERATIONS EXPENSE 06200 08 559.73 APR'20 IC PYMT FEES 184560 819-20204 6302 6545 PYMT PROCESSING FEES SOLID WASTE OPERATIONS 06300 08 559.73 APR'20 IC PYMT FEES 184560 819-20204 6402 6545 PYMT PROCESSING FEES STORM WATER UTILITY OPERA 06400 08 559.71 APR'20 IC PYMT FEES 184560 819-20204 6502 6545 PYMT PROCESSING FEES WATER UTILITY EXPENSE 06500 08 2,238.90 20200504 5/4/2020 100085 DAKOTA ELECTRIC ASSOCIATION 109.73 MAR'20 ELEC VERM GROVE LS 183926 200003215779 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MARTO 904.42 MAR'20 ELEC WELL#7 183927 200003490737 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 3,878.51 MAR'20 ELEC WELL#8 183928 200004199709 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 1,132.92 MAR-20 ELEC PK LIQ STORE 184003 200003759891 6115 6422 ELECTRIC PILOT KNOB LIQUOR 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 22 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div MAR'20 5.15 MAR'20 ELEC CIV DEF SIREN 184006 200001982271 1054 6422 ELECTRIC EMERGENCY MGMT SERVICES 01000 05 MAR'20 5.15 MAR'20 ELEC CIV DEF SIREN 184007 200002260958 1054 6422 ELECTRIC EMERGENCY MGMT SERVICES 01000 05 MAR'20 6,284.85 MAR'20 ELEC 9TH ST STREET LTS 184018 200001038421 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 163.38 MAR'20 ELEC 195TH WATER TOWER 184019 200002587095 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 996.16 MAR'20 ELEC WELL#5 184020 200002785533 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 26.35 MAR'20 ELEC DAISY KNOLL TOWER 184021 200001318518 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 851.65 MAR'20 ELEC WELL#4 184022 200001318526 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 2,191.07 MAR-20 ELEC WELL#6 184023 200001550151 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 31.26 MAR'20 ELEC TUNNEL LIGHT 184034 200005468327 MAR 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 '20 448.01 MAR'20 ELEC FIRE STATN#2 184127 200003971959 1060 6422 ELECTRIC FIRE SERVICES 01000 06 MAR'20 17,028.61 20200505 5/5/2020 108980 MINNESOTA ENERGY RESOURCES CORPORATION 74.26 APR'20 GAS 208TH ST WARM HOUSE 184175 0506537581 APR'20 1090 6423 NATURAL GAS PARK MAINTENANCE 01000 09 74.26 20200506 5/4/2020 116564 FP MAILING SOLUTIONS/POSTALIA 200.00 5/1/2020 POSTAGE REFILL 184482 600082576 20200501 1050 6445 POSTAGE POLICE ADMINISTRATION 01000 05 200.00 20200507 5/4/2020 100394 XCEL ENERGY 43.38 DOWN TOWN ST LIGHTS 184038 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 1,429.95 WELLS 1&3 184038 51-4874005-0 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 11.32 LIFT STATIONS 184038 51-4874005-0 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MAR'20 266.11- LIFT STATIONS 184038 51-4874005-0 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MAR'20 48.06 TRAFFIC SIGNAL 184038 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 150.47 ROUNDABOUT 184038 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/13/2020 9:26:31 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 23 4/30/2020 - 5/13/2020 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 22.44 CITY GARAGE 184038 51-4874005-0 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MAR'20 184.47 CITY GARAGE 184038 51-4874005-0 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'20 17.45 CITY GARAGE 184038 51-4874005-0 6302 6422 ELECTRIC SOLID WASTE OPERATIONS 06300 08 MAR'20 4.99 CITY GARAGE 184038 51-4874005-0 6402 6422 ELECTRIC STORM WATER UTILITY OPERA 06400 08 MAR'20 7.48 CITY GARAGE 184038 51-4874005-0 1072 6422 ELECTRIC STREET MAINTENANCE 01000 08 MAR'20 12.46 CITY GARAGE 184038 51-4874005-0 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 MAR'20 6,737.71 NON METERED ST LIGHTS 184038 51-4874005-0 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'20 8,404.07 Report Totals 399,205.34 CITY OF t� 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ® Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: 2019 Management and Comprehensive Annual Financial Report DATE: May 18, 2020 INTRODUCTION Each year the city's financial records are audited by an independent public accounting firm. The goal of an independent audit is to provide reasonable assurance that the city's financial statements are free of material misstatement.The audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;assessing the accounting principles used and significant estimates made by management;and evaluating the overall financial statement presentation. Upon completion,the auditors render an audit opinion, review their management report with the city council, and the city publishes a Comprehensive Annual Financial Report(CAFR)to provide the city council, staff, citizens, investors, and other interested parties with useful information concerning the city's operations and financial position. DISCUSSION Management assumes full responsibility for the completeness,accuracy, and reliability of the information presented in the CAFR.To provide a reasonable basis for making these representations, management has established a comprehensive internal framework that is designed both to protect the government's assets from loss,theft or misuse, and to provide sufficient, reliable information for the preparation of the city's financial statements in conformity with Generally Accepted Accounting Principles (GAAP).The cost of internal controls should not outweigh their benefits,therefore,the city of Farmington's comprehensive framework of internal control has been designed to provide reasonable, rather than absolute assurance, that the financial statements will be free from material misstatement. As management,we assert that to the best of our knowledge and belief,the financial report is complete and reliable in all material respects. The city's financial records have been audited by Malloy, Montague, Karnowski, Radosevich&Co., P.A. (MMKR). Based upon their audit,they concluded there was a reasonable basis for rendering an unmodified opinion that the City of Farmington's financial statements for the fiscal year ended December 31, 2019 are fairly presented in conformity with GAAP. An unmodified opinion is issued when the independent auditor believes that the company's financial statements are sound;that is,the statements are free from material misstatement. Representatives of the audit firm will be at the city council meeting to review this year's audit, provide a financial overview of the city's 2019 results, share their internal control findings, and answer questions. A copy of this year's Management Report, Special Purpose Reports, and the CAFR are attached. This past year, 2019,was a very good year for the city and should be celebrated. 9 The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources by$116,538,895 (net position)at the close of the most recent fiscal year. Of this amount, $21,188,796(unrestricted net position)may be used to meet the government's ongoing obligations to citizens and creditors. • The city's total net position increased by$3,175,965 in 2019,of this amount an increase of$1,507,959 was attributable to governmental activities,and an increase of$1,668,006 was attributable to business- type activities. • The city implemented Governmental Accounting Standards Board(GASB)Statement No. 84, Fiduciary Activities,during the year. As a result,certain privately financed activities previously accounted for in a fiduciary(agency)fund,is now being accounted for in a governmental (capital projects)fund,and included within the governmental activities in the city's government-wide financial statements. • The city's outstanding bonded debt decreased by$790,000,or 5.4 percent,during the fiscal year due to a combination of the issuance of$1,645,000 of general obligation bonds and annual bond principle payments. • The city's governmental funds reported combined ending fund balances of$16,365,587 at December 31, 2019,an increase of$1,046,928 from the prior year. Approximately 79.8 percent of this total amount, $13,059,850,is available for use within the City's constraints and policies. • At the end of the current fiscal year,the unassigned fund balance for the General Fund was$5,761,747, or 42.2 percent,of 2020 General Fund budgeted expenditures and transfers out. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the city of Farmington for its Comprehensive Annual Financial Report (CAFR)for the year ended December 31, 2018.This was the 10th year the city received this prestigious national award. I n order to be awarded this Certificate of Achievement,the government needs to publish an easily readable and efficiently organized CAFR and has satisfied both GAAP and applicable legal requirements.The Certificate of Achievement is valid for a period of only one year and we believe the current CAF R continues to meet the Certificate of Achievement program requirements. We will be submitting the 2019 report to the G FOA to determine eligibility for another certificate. As part of the auditors review of the city's internal control processes and compliance testing they identified one matter to communicate with the city council.There is a lack of segregation of duties in the payroll area.This is considered a material weakness and was also shared with you last year. The lack of segregation of duties is not a reflection of the work of the staff involved. Rather, like other organizations with limited staff, it is a result of the inability to segregate certain duties due to the limited staff size. As stated earlier,the responsibility for both the accuracy and completeness of the financial records rests with the city.This is not accomplished by one person. It takes everyone working together to make this possible. I n this unprecedented time of COVI D-19 this audit has required vastly more work from city staff and the auditors than previous years. I would like to recognize and thank everyone involved. • The Finance Department has done an excellent job maintaining the city's financial records. Increased customer service has resulted in new processes to learn and educate others about. There is additional information to account for and reconcile. It has become more complicated. It requires a high degree of accuracy.They should be very proud of their work. • Thank you to the H uman Resources staff for all of their assistance with payroll and the related benefits. Each year the questions and data requested expand.They have done an excellent job. • City staff members diligently code and/or review invoices for payment, enter receipts,submit supporting documentation, answer our many questions and are very conscientious and conservative with their spending. All of these activities directly contribute to the accuracy and completeness of the city's financial records and improved financial strength. Thank you to staff for paying close attention to detail, patience with complying with our numerous accounting requirements, some of which seem very tedious to those outside of Finance and Accounting, and their willingness to learn new ways to process information. • The auditors did an excellent job.They were organized and asked great questions. Each year their depth of understanding of the city and its processes and policies has increased. They were very thorough and respectful. Each staff person was technically strong and they were instrumental in the ongoing reporting for pension accounting and disclosure requirements. • Thank you, Mayor, members of the City Council, and the City Administrator for your willingness to do what you believe is best for the city long-term. I t is not easy as it is a constant balancing act. You have worked hard to strengthen the city's financial position and have demonstrated your commitment to long-term comprehensive financial planning. BUDGET IMPACT N/A ACTION REQUESTED Ask any questions you may have of the auditors or city staff. Once you are comfortable with the information provided a motion should be made to accept the auditor's reports. ATTACHMENTS: Type Description ❑ Backup Material 2019 Farmington Comprehensive Annual Financial Report(CAFR) ❑ Backup Material 2019 Farmington Management Report ❑ Backup Material 2019 Special Purpose Report Comprehensive Annual Financial Report FARM I NGTO, 7. iota�f 1. Photo from The City of Farmington City of Farmington, Minnesota Year Ended December 31, 2019 David McKnight - City Administrator Prepared by: Finance Department THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA Comprehensive Annual Financial Report for the Year Ended December 31, 2019 David McKnight City Administrator Report Prepared by Finance Department Member of Goverment Finance Officers Association of the United States and Canada THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal i—vi GFOA Certificate of Achievement vii Organizational Chart viii Elected Officials and Executive Staff ix FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 1-3 MANAGEMENT'S DISCUSSION AND ANALYSIS 4-15 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 16 Statement of Activities 17-18 Fund Financial Statements Governmental Funds Balance Sheet 19-20 Reconciliation of the Balance Sheet to the Statement of Net Position 21 Statement of Revenues,Expenditures, and Changes in Fund Balances 22-23 Reconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balances to the Statement of Activities 24 Statement of Revenues,Expenditures,and Changes in Fund Balances— Budget and Actual—General Fund 25 Proprietary Funds Statement of Net Position 26-27 Statement of Revenues,Expenses, and Changes in Fund Net Position 28-29 Statement of Cash Flows 30-31 Notes to Basic Financial Statements 32-65 REQUIRED SUPPLEMENTARY INFORMATION PERA—General Employees Retirement Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability 66 Schedule of City Contributions 66 PERA—Public Employees Police and Fire Fund Schedule of City's Proportionate Share of Net Pension Liability 67 Schedule of City Contributions 67 Farmington Fire Fighters' Relief Association Schedule of Changes in the Relief Association's Net Pension Liability(Asset) and Related Ratios 68 Schedule of City Contributions 69 Other Post-Employment Benefits Plan Schedule of Changes in the City's Total OPEB Liability and Related Ratios 70 Notes to Required Supplementary Information 71-77 CITY OF FARMINGTON Table of Contents(continued) Page SUPPLEMENTAL INFORMATION Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds 78 Combining Balance Sheet 79 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 80 Nonmajor Special Revenue Funds 81 Combining Balance Sheet 82 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 83 Nonmajor Capital Projects Funds 84 Combining Balance Sheet 85-86 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 87-88 Debt Service Fund 89 Combining Balance Sheet by Account 90-91 Combining Schedule of Revenues,Expenditures,and Changes in Fund Balances by Account 92-93 Budgetary Comparison Schedules 94 Debt Service Fund 95 State Aid Construction Capital Projects Fund 96 Storm Water Trunk Capital Projects Fund 97 Permanent Improvement Revolving Capital Projects Fund 98 Maintenance Capital Projects Fund 99 Private Capital Projects Fund 100 Nonmajor Special Revenue Funds Police Donations and Forfeitures 101 Park Improvement 102 Arena 103 Nonmajor Capital Projects Funds Sanitary Sewer Trunk 104 Cable Communications 105 Fire 106 Recreation 107 General Capital Equipment 108 Internal Service Funds 109 Combining Statement of Net Position 110 Combining Statement of Revenues,Expenses,and Changes in Fund Net Position 111 Combining Statement of Cash Flows 112 Discretely Presented Component Unit—EDA 113 Combining Balance Sheet 114 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 115 CITY OF FARMINGTON Table of Contents(continued) Page STATISTICAL SECTION(UNAUDITED) STATISTICAL TABLES 116 Net Position by Component 117-118 Changes in Net Position 119-122 Fund Balances of Governmental Funds 123-124 Changes in Fund Balances of Governmental Funds 125-126 Tax Capacity Value and Estimated Actual Value of Taxable Property 127-128 Property Tax Rates 129 Principal Property Taxpayers 130 Property Tax Levies and Collections 131 Ratios of Outstanding Debt by Type 132-133 Ratios of General Bonded Debt Outstanding 134-135 Direct and Overlapping Governmental Activities Debt 136 Legal Debt Margin Information 137-138 Pledged Revenue Coverage 139 Demographic and Economic Statistics 140 Principal Employers 141 Full-Time Equivalent City Government Employees by Function 142-143 Operating Indicators by Function 144-145 Capital Asset Statistics by Function/Program 146-147 THIS PAGE INTENTIONALLY LEFT BLANK INTRODUCTORY SECTION THIS PAGE INTENTIONALLY LEFT BLANK CITY OF 430 Third St.,Farmington,MN 55024 FARMINGTON 651-280-6800 FarmingtonMN.gov May 11, 2020 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Farmington, Minnesota The Comprehensive Annual Financial Report (CAFR) of the City of Farmington, Minnesota (the City) for the fiscal year ended December 31, 2019 is hereby submitted. This report was prepared by the Finance Department and responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,including all disclosures,supporting schedules and statistical tables rests with the City. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to protect the City's assets from loss,theft, or misuse,and to compile sufficient reliable information for the preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the City's internal controls have been designed to provide reasonable, rather than the absolute assurance,that the financial statements will be free from material misstatements. As management,we assert that to the best of our knowledge and belief,this CAFR is complete and reliable in all material respects;that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds;and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. The organization, form, and contents of this report were prepared in accordance with the standards prescribed by the Governmental Accounting Standards Board, the Government Finance Officers Association (GFOA) of the United States and Canada, the American Institute of Certified Public Accountants, Minnesota's Office of the State Auditor,and city policies. The City's financial statements have been audited by Malloy, Montague, Karnowski, Radosevich & Co., P.A., a professional firm of certified public accountants.The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the year ended December 31,2019,are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements, for the year ended December 31, 2019, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The Independent Auditor's Report is presented as the first component of the financial section of this report. This transmittal letter is designed to complement the management's discussion and analysis(MD&A)and should be read in conjunction with it. The MD&A can be found immediately following the report of the independent auditors. -i- Profile of the Government The City is a suburban community located 30 miles south and east of downtown Minneapolis in Dakota County and was established in 1872 as a railroad center for the surrounding farming community. The 2010 Census established the City's population at 21,086, with a current population estimate of 22,880. Additionally,the City's boundary has grown easterly,adding 1,407 acres of annexation and growing from 12.5 square miles in 2000 to its current size of 14.8 square miles.The growth that the City has experienced is due to a number of factors,such as relatively affordable home ownership as compared to homes north and west of the City,the opportunity to locate further from the inner core,and the opportunity to live in a community with a "home-town"feel because of its discernable traditional downtown. The City operates under the mayor-council form of organization.The governing City Council,consisting of the mayor and four other councilmembers, is elected at large and on a nonpartisan basis.Terms of office are staggered four-year terms, with elections held in each even-numbered year. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing members to the various committees and commissions,and hiring the city administrator,heads of various departments, and city employees. The city administrator is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City's government, and the heads of various departments and city employees. The City provides its residents and businesses a full range of municipal services, including police and fire protection, ambulance services, construction and maintenance of highways, streets, and other infrastructure, as well as recreational and cultural activities. The City operates the following enterprise funds: municipal liquor operations,sewer,solid waste,storm water,water,and street lights.The City also contributes to the senior center operations, ice arena, limited community recreation services,and several other important community-based events and projects. Economic Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local Economy Major industries located within the City's boundaries include the Independent School District (ISD) No. 192, Federal Aviation Administration, a building materials and installation company, an electric utility cooperative, an assisted living facility, an independent living senior facility, a transportation company, a trucking company, and manufacturers of dairy products. ISD No. 192 provides a significant economic presence providing employment to approximately 925 people. The Federal Aviation Administration and Installed Building Solutions also employ 500 people each. During 2019, a number of new businesses opened or expanded, construction was completed on two buildings in downtown Farmington and one in the Business Park. The City continues to partner with Dakota County to offer the Open to Business initiative, which provides financial and business advice to small and future business owners. New residential construction was approximately the same as in 2018. In 2019, the City issued new construction permits for 33 new single-family units, one new multi-family, one new commercial, and two public structures.The new single-family permits resulted in a total new residential building valuation of$7,215,300.The multi-family building valuation was$851,515 and the new commercial building had a valuation of $281,645. The number of foreclosures in the City remained relatively flat. There were 9 foreclosures in the City in 2019,down sharply from 21 in 2018. -ii- Long-Term Planning The City Council meets each yearto review changes that have taken place in the City and identify a set of priorities for the next 1-2 years. In March 2019,the City Council established five priorities for 2019,which include: • Continue Sound Financial Practices • Development for a Successful Future • Build on Established Partnerships • Delivery of High Quality Services • Completion of Special Projects These priorities are intentionally broad, high level goals that the City Council believes will make the City an even stronger community. During the year,the city administrator formally updates the City Council on the staff's progress.The City achieved its goal of increasing the bond rating with S&P when it was upgraded from AA to AA+in April 2019.They will continue to strive to maintain financial excellence by strengthening the fund balance in the General Fund and continuing to use the liquor store profits for projects benefiting the community. During 2019,the staff continued to review and revise various capital improvement plans(CIPS), including those for streets, trails, and equipment. The City's new fire engine was delivered in early 2019. The reconstruction of the Westview area was completed, along with a water tower reconditioning and construction of Well 9.After numerous years on hold,mill and overlay street projects began again in 2019 with plans to continue in future years. The City's 2040 Comprehensive Plan and Highway 3 Corridor Plan were completed in 2019. The Highway 3 Corridor Plan was developed to create a guide that will result in a flourishing corridor that promotes economic growth and safe and efficient transportation. Additional information about these strategies and goals may be found on the City's website,www.FarmingtonMN.gov. Relevant Financial Policies Operating Budgets The annual budget serves as the foundation for the City's financial planning control. All departments of the City submit budget requests for the following year to the city administrator in the spring/summer of each year. These requests serve as a starting point for the development of a proposed budget. These requests are then presented to the City Council for review in the summer. The City Council adopts a preliminary tax levy by September 30. The City Council is required to hold hearings and obtain input on the proposed budget and to adopt a final budget and property tax levy no later than December 30 of the close of the fiscal year. The budget of the City is prepared by fund (e.g., General Fund), function (e.g., public safety), and department (e.g., police department). Departments may request transfers of appropriations within line items in the department; however, City Council approval is required when making transfers between funds. Budget to actual comparisons are provided in this report for the General Fund, special revenue funds, capital project funds, and debt service funds (in total). The General Fund budget to actual comparison is on page 25.The remaining budget to actual comparisons are presented starting on page 94. -iii- Revenue Policies The City conservatively projects its annual revenues after a thorough analytical process, which involves annually reexamining existing and potential revenue sources. Cash Management Policy and Practice The City's Investment Policy was reviewed and updated in 2013.The primary goal of the City's investment policy is to ensure the safety of the principal invested. Idle cash during the year was invested according to the City's Investment Policy. In 2018 and 2019,the City was able to invest in some higher yields and saw its overall investment portfolio increase.As a result,the City's 2019 investment earnings were higherthan prior years. Staff monitors interest rates and continues the diligent practice of reviewing the City's cash flow needs to determine how best to invest available funds. Interest rates decreased in 2019 over 2018. The City's average investment balances were slightly higher than the previous year resulting in higher investment earnings than the previous year. Interest rates continued to decline through the end of 2019 and into 2020. Changes in interest rates will be considered as the 2020 budget is developed. Debt Management Policy and Practice The City Council reviewed and adopted an updated Debt Management Policy in 2013.The purpose of the policy is to establish parameters and provide guidance governing the issuance, management, continuing evaluation of, and reporting on all debt obligations of the City. Staff continues to review its outstanding debt issues and advise the City Council which bonds, if any, it would make financial or program sense to refund and/or restructure. Fund Balance Policy and Practice The City's financial strength has improved significantly over the past six years. During 2019, for the sixth year in a row,the City's General Fund cash flow was positive each calendar month during the year. No interfund borrowing was required. Further evidence of the General Fund's improved financial strength can be seen in the General Fund's unassigned fund balance, which increased from 28 percent of the subsequent years' budgeted expenditures, and transfers out as of December 31, 2013, to 42 percent as of December 31,2019.This increase has been accomplished through sound budgeting,long-term financial planning,and conservative spending by staff. In April 2015, the City adopted an updated fund balance policy, effective as of December 31, 2014. This policy acknowledges the progress the City has made in strengthening its General Fund balance and challenged the Cityto continue to improve by increasingthe minimum General Fund balance.The updated policy states the City will strive to maintain the fund balance in the General Fund between 40 and 50 percent of the subsequent years' budgeted expenditures and transfers out in order to provide enough funding to carry city operations to the next semiannual receipt of tax proceeds (in June—July). The City Council and staff have worked diligently to strengthen the City's financial position and as of December 31, 2015, reached and have since maintained the minimum recommended fund balance level set forth in this policy. -iv- Major Initiatives The City continues to place a high priority on planning for the community's needs as growth and expansion issues impact city operations. The availability of land, infrastructure, and services continue to drive the community development focus of the City. A community that helps grow value has a positive impact on the net worth of all its property owners. As an organization,the City has worked diligently to build a variety of services,facilities, infrastructure, and secure a financial foundation for its residents and stakeholders. Maintaining high quality services plays a key role in favorable appreciation of the community's property values.The City's substantial investments in its infrastructure have helped extend the life of some existing roadways and improve the quality and safety of other roads in the City. Investments in homes and businesses represent the most important assets in an American citizen's personal portfolio;therefore,the continued enhancement of that value is extremely important.The City is seeing its average residential home values continue to increase. The City needs to continue to progress forward by building and renewing its community.The community and organizational strength, both financial and operational, allows the City to create even greater opportunities. City ordinances continue to be reviewed and updated to provide for new business opportunities.The City Council approved the preliminary plat for the new Sapphire Lake 131 single-family lot development including a final plat for 36 of those lots. The City Council also approved a final plat for 97 lots in the Fairhill Estate at North Creek development. The City continued implementation of the Downtown Redevelopment Plan,including a Downtown Facade Improvement Grant Program,and master plan development of a downtown community plaza. Work was completed on a small area study for the redevelopment of the Highway 3 corridor. The City Council further strengthened the organization by hiring its first full-time deputy fire chief in July 2019. The fire department has implemented large-scale capital improvement plans for vehicles and equipment,created strategic planning and mission development,and maintains 50 volunteer firefighters. The fire department took delivery of Engine 11 in 2019 and has ordered the City's first ladder truck,which will be delivered in 2020. Farmington Municipal Liquor Operations have made tremendous improvements overthe past eight years. With new management in 2012, an emphasis was placed on improving store operations, expectations, and profits. Store profits benefit the community and over the past eight years,the stores have produced an average of over$300,000 per year in profits. Notably,the liquor stores have been able to provide over $1 million since 2005 to city departments and community organizations. The City continues to collaborate with Dakota County, Dakota County Community Development Agency, Dakota County Regional Chamber of Commerce,the Farmington Business Association, ISD No.192,nearby communities, and neighboring townships to provide its citizens with various services. Awards The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its CAFR for the year ended December 31, 2018. This is the 10th year the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a city must publish an easily readable and efficiently organized CAFR. This report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements and are submitting it to the GFOA to determine its eligibility for another certificate. -v- Acknowledgments The preparation of this report would not have been possible without the talented and dedicated services of the entire staff of the Finance Department and other key city personnel. We would like to express our appreciation to all city staff for their attention to detail and budget management throughout the year. Credit also must be given to the mayor and the City Council for their support and the steps they have taken to continue to strengthen the City's finances and longer-term financial planning. Respectively Submitted, David McKnight,City Admi rator Teah Malecha, Finance Director -vi- i i i I i Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Farmington Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2018 Executive Director/CEO -vii- Residents City Council ...! City Administrator Human Fire Resources Police Finance Utility BiLLing Administration Community Parks and Public Works Development Recreation Information Building Facilities Engineering Technology Inspections Communications Manning and Programming Streets Zoning Liquor Operations Water CITY OF Sanitary Sewer FARMINGTON Surface Water 00 SoLid Waste CITY OF FARMINGTON Elected Officials and Executive Staff December 31,2019 ELECTED OFFICIALS Term Expires Todd Larson Mayor December 31,2020 Katie Bernhjelm Councilmember December 31,2022 Robyn Craig Councilmember December 31,2020 Terry Donnelly Councilmember December 31,2020 Joshua Hoyt Councilmember December 31,2022 EXECUTIVE STAFF David McKnight City Administrator Adam Kienberger Community Development Director Katy Gehler Engineer Teah Malecha Finance Director Justin Elvestad Fire Chief Jennifer Gabbard Human Resources Director Todd Reiten Municipal Services Director Randy Distad Parks and Recreation Director Gary Rutherford Police Chief -ix- THIS PAGE INTENTIONALLY LEFT BLANK FINANCIAL SECTION THIS PAGE INTENTIONALLY LEFT BLANK PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA MMKRWilliam J.Lauer,CPA James H.Eichten,CPA C E RT I F I E D PUBLIC Aaron J.Nielsen,CPA ACCOUNTANTS Victoria L.Holinka,CPA/CMA Jaclyn M.Huegel,CPA Kalen T.Karnowski,CPA INDEPENDENT AUDITOR'S REPORT To the City Council and Management City of Farmington,Minnesota REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Farmington, Minnesota (the City) as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR'S RESPONSIBILITY Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. (continued) -1- 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 OPINIONS In our opinion, the financial statements referred to on the previous page present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of December 31, 2019, and the respective changes in financial position and,where applicable, cash flows thereof, and the budgetary comparison for the General Fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. EMPHASIS OF MATTER As described in Note 1 of the notes to basic financial statements, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, during the year ended December 31,2019. Our opinion is not modified with respect to this matter. OTHER MATTERS Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the required supplementary information (RSI), as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASB, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, supplemental information, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not required parts of the basic financial statements. The supplemental information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information is fairly stated,in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. (continued) -2- OTHER REPORTING REQUIRED BY GO VERNMENTAUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 11, 2020 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. W4&*7, `!~[a7,�, Minneapolis,Minnesota May 11, 2020 -3- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Management's Discussion and Analysis Year Ended December 31,2019 As management of the City of Farmington, Minnesota(the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2019. The discussion and analysis is intended to be considered in conjunction with the additional information that we have furnished in our letter of transmittal, located earlier in this report, and the City's financial statements contained within this report. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources by $116,538,895 (net position) at the close of the most recent fiscal year. Of this amount, $21,188,796 (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. • The City's total net position increased by $3,175,965 in 2019, including an increase of $1,507,959 attributable to governmental activities, and an increase of$1,668,006 attributable to business-type activities. • The City implemented Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, during the year. As a result, certain privately financed activity previously accounted for in a fiduciary(agency)fund, is now being accounted for in a governmental (capital projects) fund, and included within the governmental activities in the City's government-wide financial statements. • The City's outstanding bonded debt decreased by$790,000, or 5.4 percent, during the fiscal year, due to a combination of the issuance of$1,645,000 of general obligations bonds and annual bond principal payments. • The City's governmental funds reported combined ending fund balances of $16,365,587 at December 31, 2019, an increase of$1,046,928 from the prior year. Approximately 79.8 percent of this total amount, $13,059,850, is available for use within the City's constraints and policies. • At the end of the current fiscal year, the unassigned fund balance for the General Fund was $5,761,747, or 42.2 percent, of 2020 General Fund budgeted expenditures and transfers out. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1)government-wide financial statements,2)fund financial statements,and 3)notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements — The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private sector business. -4- These financial statements include not only the City itself(known as the primary government), but also the Farmington Economic Development Authority (EDA). The EDA has been presented as a discretely presented component unit on the City's financial statements in accordance with accounting principles generally accepted in the United States of America. The Statement of Net Position presents information on all of the City's assets, liabilities, and deferred inflows/outflows, as applicable, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,regardless of the timing of related cash flows. Thus,revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,uncollected taxes and earned,but unused personal leave time). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues(governmental activities)from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general goverment, public safety, public works, parks and recreation, and economic development. The business-type activities of the City include liquor operations,and sewer, solid waste, storm water,water, and street light utility operations. Fund Financial Statements— A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City,like other state and local governments,uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances for the City's seven individual major governmental funds. They are as follows: • General Fund • Debt Service Fund • State Aid Construction Capital Projects Fund • Storm Water Trunk Capital Projects Fund • Permanent Improvement Revolving Capital Projects Fund • Maintenance Capital Projects Fund • Private Capital Projects Fund -5- Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts annual appropriated budgets for its General Fund, special revenue funds, Debt Service Fund (combined), and capital projects funds. Budgetary comparison statements or schedules have been provided for these funds to demonstrate compliance with their respective budgets. Proprietary Funds—The City maintains six enterprise funds and four internal service funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business-type activities in the governmental-wide financial statements. The City uses enterprise funds to account for its liquor operations, and its sewer, solid waste, storm water, water, and street light utility operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the enterprise funds,all of which are considered to be major funds of the City. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its employee benefits, property and liability insurance, maintaining its fleet of vehicles, and information technology needs. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements, labeled Governmental Activities — Internal Service Funds. Because all of these services predominately benefit governmental, rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Notes to Basic Financial Statements — The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information—In addition to the basic financial statements and accompanying notes,the financial section also presents required supplementary information, and the combining and individual fund statements and schedules (presented as supplementary information) referred to earlier in connection with nonmajor governmental funds and internal service funds, which are presented immediately following the basic financial statements. Furthermore, a statistical section has been included as part of the Comprehensive Annual Financial Report(CAFR)to facilitate additional analysis, and is the third and final section of the report. -6- GOVERNMENT-WIDE FINANCIAL ANALYSIS An analysis of the City's financial position begins with a review of the Statement of Net Position and the Statement of Activities. These two statements report the City's net position and changes in net position. It should be noted that the financial position can also be affected by nonfinancial factors, including economic conditions,population growth,and new regulations. As noted earlier, net position may serve over time as a useful indicator of the City's financial position.As presented in the following condensed version of the Statement of Net Position, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $116,538,895 at December 31, 2019. City of Farmington's Net Position Governmental Activities Business-Type Activities Total 2019 2018 2019 2018 2019 2018 Current and other assets $ 24,474,467 $ 23,120,625 $ 17,390,560 $ 18,275,116 $ 41,865,027 $ 41,395,741 Capital assets,net 47,612,477 48,183,984 54,488,632 50,747,479 102,101,109 98,931,463 Total assets $ 72,086,944 $ 71,304,609 $ 71,879,192 $ 69,022,595 $143,966,136 $140,327,204 Deferred outflows ofresources $ 3,536,176 $ 4,525,492 $ 63,273 $ 112,331 $ 3,599,449 $ 4,637,823 Current liabilities $ 2,607,326 $ 1,473,994 $ 936,857 $ 579,717 $ 3,544,183 $ 2,053,711 Long-term liabilities 21,129,967 22,519,969 1,577,512 758,004 22,707,479 23,277,973 Total liabilities $ 23,737,293 $ 23,993,963 $ 2,514,369 $ 1,337,721 $ 26,251,662 $ 25,331,684 Deferred inflows ofresources $ 4,673,210 $ 6,131,480 $ 101,818 $ 138,933 $ 4,775,028 $ 6,270,413 Net position Net investment in capital assets $ 33,867,761 $ 32,909,853 $ 53,677,776 $ 50,747,479 $ 87,545,537 $ 83,657,332 Restricted 5,343,074 4,797,191 2,461,488 2,316,500 7,804,562 7,113,691 Unrestricted 8,001,782 7,997,614 13,187,014 14,594,293 21,188,796 22,591,907 Total net position $ 47,212,617 $ 45,704,658 $ 69,326,278 $ 67,658,272 $116,538,895 $113,362,930 The largest portion of the City's net position, $87,545,537, or 75 percent, reflects its investment in capital assets (e.g., land, buildings, machinery and equipment); less any outstanding related debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources,since the capital assets themselves cannot be used to liquidate these liabilities. Restricted net position of$7,804,562 comprised 7 percent of net position at the close of the fiscal year ended December 31,2019. These assets are subject to external restrictions on how they may be used. The balance of unrestricted net position, $21,188,796, or approximately 18 percent, may be used to meet the City's ongoing obligations to citizens and creditors. Certain balances within unrestricted net position may have internally imposed commitments or limitations, which may further limit the purpose for which such net position may be used. -7- CHANGES IN NET POSITION The following table provides a condensed version of the Statement of Activities for the year ended December 31, 2019 with comparative totals for the year ended December 31, 2018. The City's net position increased by$3,175,965, or 2.8 percent,during the current fiscal year. City of Farmington's Change in Net Position Governmental Activities Business-Type Activities Total 2019 2018 2019 2018 2019 2018 Revenues Charges for services $ 1,680,536 $ 1,859,036 $ 13,609,842 $ 12,190,215 $ 15,290,378 $ 14,049,251 Operating grants and contributions 838,569 702,853 34,190 30,263 872,759 733,116 Capital grants and contributions 869,849 942,627 81,634 - 951,483 942,627 Property taxes 12,916,115 12,659,480 - - 12,916,115 12,659,480 Other taxes 262,148 266,324 - - 262,148 266,324 Unrestricted grants 317,172 316,100 - - 317,172 316,100 Investment earnings 657,977 239,714 548,310 200,144 1,206,287 439,858 Gain on disposal of capital assets 17,218 531 - - 17,218 531 Total revenues 17,559,584 16,986,665 14,273,976 12,420,622 31,833,560 29,407,287 Expenses General government 2,609,059 2,511,818 - - 2,609,059 2,511,818 Public safety 6,118,203 5,728,925 - - 6,118,203 5,728,925 Public works 5,612,872 4,358,465 - - 5,612,872 4,358,465 Parks and recreation 2,202,631 1,772,351 - - 2,202,631 1,772,351 Economic development 50,000 30,000 - - 50,000 30,000 Interest on long-term debt 404,893 350,431 - - 404,893 350,431 Liquor - - 5,257,236 4,890,304 5,257,236 4,890,304 Sewer - - 2,326,630 1,931,276 2,326,630 1,931,276 Solid waste - - 1,913,258 2,092,844 1,913,258 2,092,844 Storm water - - 557,749 521,465 557,749 521,465 Water - - 1,439,178 1,246,667 1,439,178 1,246,667 Streetlight - 165,886 180,254 165,886 180,254 Total expenses 16,997,658 14,751,990 11,659,937 10,862,810 28,657,595 25,614,800 Change in net position before transfers 561,926 2,234,675 2,614,039 1,557,812 3,175,965 3,792,487 Transfers 946,033 1,110,880 (946,033) (1,110,880) - Change in net position 1,507,959 3,345,555 1,668,006 446,932 3,175,965 3,792,487 Netposition-beginning 45,704,658 42,359,103 67,658,272 67,211,340 113,362,930 109,570,443 Netposition-ending $ 47,212,617 $ 45,704,658 $ 69,326,278 $ 67,658,272 $116,538,895 $113,362,930 Governmental Activities-Governmental activities increased the City's net position before transfers by $561,926,primarily due to the increase in the City's investment earnings as a result of an overall increase in funds available for investment and the increase in market value of the City's investments. Business-Type Activities-Business-type activities increased the City's net position before transfers by $2,614,039, as program revenues exceeded expenses for all activities but the Sewer Fund. -8- GOVERNMENTAL ACTIVITIES Revenues—The following chart illustrates the City's revenues by source for its governmental activities: Revenues by Source—Governmental Activities Capital Grants unrestricted and Grants Other Contributions 2% 4% Operating ,00 Charges for Grants and Services Contribution 10% ;go Other Tales 106 Property Taxes 73% Expenses—The following chart illustrates the City's governmental expenses and corresponding program revenues,excluding transfers,for its governmental activities: Expenses and Program Revenues—Governmental Activities $6,000,000 $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Interest on General Parks and Economic Government Public Safety Public Works Recreation Development Long-Term Debt ■Program Revenues $567,739 $996,873 $1,217,082 $607,260 $- $- ■Expenses $2,609,059 $6,118,203 $5,612,872 $2,202,631 $50,000 $404,893 -9- BUSINESS-TYPE ACTIVITIES Revenues—The following chart illustrates the City's revenues by source for its business-type activities: Revenues by Source—Business-Type Activities Capital Grants and Operating Contributions Other Grants and 1°0 4% Contributions Charges for Sen ices 95% Expenses—Below is a graph showing the City's program revenues and expenses,excluding transfers, for its business-type activities: Expenses and Program Revenues—Business-Type Activities $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Liquor Fund Sewer Solid Waste Storm Water Water Fund Street Light Operations IS Program Revenues $5,608,012 $2,117,934 $2,357,071 $1,130,563 $2,285,115 $226,971 ■Expenses $5,257,236 $2,326,630 $1,913,258 $557,749 $1,439,178 $165,886 -10- FINANCIAL ANALYSIS OF THE CITY'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds — The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of currently available resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $16,365,587, a 6.8 percent increase of $1,046,928 from 2018. The increase is mainly attributable to the Debt Service Fund's fund balance, which increased $1,152,461, primarily due to the premium received in conjunction with the issuance of the 2019A bonds, increased transfers in as part of the City's long-term debt management plan, and property tax, special assessment, and investment earnings that were more than needed to pay the corresponding principal and interest due on most bonds. Committed and unassigned fund balances, which are available for spending at the government's discretion, had a combined balance of $13,059,850 at year-end. The remainder of the fund balance is either nonspendable ($109,523), or restricted to indicate that it is not available for new spending because it has already been obligated: 1)to pay debt service($2,776,623), 2)to pay for capital improvements and future cable communication expenditures ($193,337), 3) for park improvements ($205,862), and 4) the remainder is from donations and other restricted funds($20,392). Financial highlights for the City's major governmental funds are as follows: General Fund— The General Fund is the chief operating fund of the City. At the end of 2019, the unassigned fund balance of the General Fund was $5,761,747. As a measure of the General Fund's liquidity, it may be useful to compare the fund balance to total fund expenditures. The 2019 unassigned fund balance represents 42.2 percent of total 2020 General Fund budgeted expenditures and transfers out, up from 41.3 percent for the December 31, 2018 unassigned fund balance as a percentage of the 2019 General Fund budgeted expenditures and transfers out. Total fund balances increased by$149,199 in the General Fund during the 2019 fiscal year. The reason for the increase in unassigned fund balance is mainly due to a prior year commitment of $240,000 of General Fund balance at December 31, 2018 for reduction of the City's 2019 debt levy. There was no similar commitment at December 31,2019. The ratio of the General Fund's unassigned fund balance to the subsequent years' budgeted expenditures and transfers out has increased from 20.8 percent as of December 31, 2011 to 42.2 percent as of December 31, 2019. The City Council has increased its commitment to not only sound, comprehensive budgets, but also long-term financial planning. In addition, the City has benefitted from an improving economy and tight budgetary control of expenditures, which has resulted in the strengthening of the General Fund's balance over that period. The City Council also recently revised the City's fund balance policy and stated it would strive to maintain the fund balance in the General Fund between 40-50 percent of the subsequent year's budgeted expenditures and transfers out in order to provide enough funding to carry city operations to the next semiannual receipt of tax proceeds (in June/July). As of December 31, 2019, the City's General Fund balance meets the minimum fund balance guideline. -11- Debt Service Fund — During the year, the City repaid $2,435,000 in bond principal. The fund balance in the Debt Service Fund increased $1,152,461, primarily due to the premium received in conjunction with the issuance of the 2019A bonds, increased transfers in as part of the City's long-term debt management plan, and property tax, special assessment, and investment earnings that were more than needed to pay the corresponding principal and interest due on most bonds. State Aid Construction Capital Projects Fund — As the City currently has no significant improvement projects in process on eligible state aid streets, there was a modest increase in the fund balance of$11,310 from special assessments and investment income received. Storm Water Trunk Capital Projects Fund— The increase of$297,554 in fund balance is due to the City investing available fund balance to optionally repay the remaining 195th Street interfund loan. To reduce future interest costs, avoid incurring costs of issuance, and provide the City with more repayment flexibility,the City also utilized interfund loans from the Storm Water Trunk Capital Projects Fund to redeem several outstanding bond issues in recent years. The interfund advances will be repaid with interest through future tax levies. Permanent Improvement Revolving Capital Projects Fund— There were no new projects in this fund during 2019. There was a modest increase in the fund balance of $6,923 from special assessments and investment income received. Maintenance Capital Projects Fund — The decrease of$629,414 in fund balance was due to the street project costs incurred in 2019 exceeding state aid construction revenues, bond proceeds, and transfers in received during the current year. Private Capital Projects Fund—There were no new projects in this fund during 2019. There was a modest increase in the fund balance of $30,196 from special assessments and investment income received. Total fund balances in the City's nonmajor governmental funds increased $28,699 in fiscal 2019, to a year-end total of $3,002,382. Financial highlights for some of the significant changes in the City's nonmajor governmental funds are as follows: Park Improvement Special Revenue Fund—The decrease in fund balance of$168,911 is mainly a result of various planned park improvement projects that took place in 2019. Sanitary Sewer Trunk Capital Projects Fund — During 2019, charges for services revenues exceeded the public works expenditures needed, resulting in a net increase in fund balance of $67,610. Cable Communications Capital Projects Fund — During 2019, franchise tax revenues exceeded operational costs,resulting in a net increase in fund balance of$84,089. General Capital Equipment Capital Projects Fund — The increase in fund balance of$62,014 is mainly a result of transfers in from the General Fund to support future expenditures to address police vehicle and equipment needs, as well as general city vehicle replacements. -12- Proprietary Funds — The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Financial highlights for the significant changes in the City's proprietary funds are as follows: Liquor Operations Fund — Each year the City reviews the financial performance of its liquor operations. After setting aside a certain amount of funds for operations and administrative transfers, the remaining funds on hand are allocated to community investment and future capital improvements. During 2019, the City's liquor stores' community investment fund dollars were set aside as the City Council continues to discuss project options for the funds. The net position of the Liquor Operations Fund at the end of 2019 totaled$1,606,511, an increase of$267,526, which is net of the $134,088 in funds contributed to community projects noted above. The cash position for both stores has continued to strengthen, increasing from a combined total of$1,415,691 at December 31,2018 to$1,562,043 as of December 31, 2019. Sewer Operations Fund—The decrease in net position of$296,201 is primarily due to charges for services not being sufficient to cover depreciation expense. The City began to address the structural pricing deficit by implementing a rate increase, which went into effect January 1, 2016 and is designed to provide sufficient funds over time, along with other planned future rate increases, including the current year rate increase effective January 1, 2019, to cover both operations and depreciation. This fund continues to maintain a significant unrestricted net position of$3,125,551. Solid Waste Fund—The Solid Waste Fund net position increased by$344,928, due to a fee increase that went into effect in January 2019, as well as this fund experiencing decreased costs related to temporarily decreased disposal fees and quantities being disposed. The costs are anticipated to rise dramatically in 2020. Storm Water Fund—The increase in net position of$441,555 is primarily due to a fee increase that went into effect in January 2019. This fund continues to maintain a significant unrestricted net position of$1,539,592. Water Fund—The increase in net position of$842,648 is primarily due to development fees paid in the current year for the Fairhill Estates development project. In conjunction with a long-term financial analysis of this fund performed in 2014, which does take into consideration the long-term need to cover depreciation expense, a fee increase went into effect in January 2017. Over time,this increase, along with other planned fee increases, including the current year fee increase effective January 2019, is designed to cover depreciation. This fund continues to maintain a significant unrestricted net position of$5,405,318. Street Light Fund—The Street Light Fund was established in 2010.By making this a utility fund,all properties, including tax-exempt properties, within the City pay for street lighting. After its ninth year of operation,this fund has achieved a modest positive net position of$210,933. -13- GENERAL FUND BUDGETARY HIGHLIGHTS The City's original and final budgets are the same,as no budget amendments were made during the year. Actual revenues were $341,043 more than budgeted. Revenue variances from final budget to actual include: • Intergovernmental revenue was $192,800 over budget, mainly due to Community Development Block Grant revenue received that was not anticipated in the budget and higher than anticipated state aids for roads,police aid,and fire aid. • Charges for services were $64,022 higher than budgeted as a result of fire charges billed to a neighboring township exceeding budget. • Investment earnings were $120,175 more than budgeted, primarily due to an overall increase in the funds available for investment in the General Fund and the increase in fair value of the City's General Fund investments. Expenditures were $48,156 less than the budgeted amount. The City benefited from lower salaries and benefits costs partially attributable to vacant positions and natural attrition. Expenditures were under budget in a number of areas, due to conservative spending and use of city resources by all staff. CAPITAL ASSETS AND LONG-TERM DEBT Capital Assets—The City's investment in capital assets for its governmental and business-type activities as of December 31, 2019 was $102,101,109 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements other than buildings, park facilities, machinery and equipment, vehicles, roads, bridges, infrastructure, intangibles, water mains, water reservoirs, sewer mains, lift stations, and storm water mains. The City's investment in capital assets for the current fiscal year increased by 3.2 percent, mainly due to significant construction completed and capitalized in the current year. City of Farmington's Capital Assets Governmental Activities Business-Type Activities Total 2019 2018 2019 2018 2019 2018 Land and easement $ 1,749,824 $ 1,749,824 $ 498,376 $ 414,576 $ 2,248,200 $ 2,164,400 Buildings 14,604,386 14,970,309 1,845,441 — 16,449,827 14,970,309 Improvements other than buildings 369,682 325,845 1,496,363 — 1,866,045 325,845 Machinery and equipment 2,056,722 1,918,313 1,048,594 907,864 3,105,316 2,826,177 Infrastructure 28,831,863 29,219,693 — — 28,831,863 29,219,693 Collection/distribution systems — — 49,599,858 49,272,779 49,599,858 49,272,779 Construction in progress — — — 152,260 — 152,260 Total(net ofdepreciation) $ 47,612,477 $ 48,183,984 $ 54,488,632 $ 50,747,479 $ 102,101,109 $ 98,931,463 Additional information on the City's capital assets can be found in Note 4 of the notes to basic financial statements. Long-Term Debt— At the end of the current fiscal year, the City had total bonded debt outstanding of $13,940,000. All city debt is general obligation debt, which is backed by the full faith and credit of the government. Furthermore, the City has long-term liabilities of$622,916 for unamortized bond premiums, $1,079,816 for compensated absences, $5,923,957 for net pension liabilities, and $1,140,790 for other post-employment benefits. -14- City of Farmington's Outstanding Debt Governmental Activities Business-Type Activities Total 2019 2018 2019 2018 2019 2018 General obligation improvement bonds $ 8,135,000 $ 9,115,000 $ — $ — $ 8,135,000 $ 9,115,000 Capital improvement bonds 5,085,000 5,615,000 — — 5,085,000 5,615,000 General obligation revenue bonds — — 720,000 — 720,000 — Total bonds outstanding $ 13,220,000 $ 14,730,000 $ 720,000 $ — $ 13,940,000 $ 14,730,000 Bond principal repayments during 2019 totaled $2,435,000. The City's credit rating from Standard & Poor's was raised from"AA"to"AA+"in April 2019. Minnesota Statutes limit the amount of general obligation debt a Minnesota city may issue to 3 percent of total estimated market value. The current debt limitation for the City is $59,069,079, which is significantly more than the City's outstanding general obligation debt. Additional information on the City's long-term debt may be found in Note 6 of the notes to basic financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The City increased its General Fund net operating levy in 2020 by $353,862. The final city total net tax levy for 2020 is $10,742,554, and is 0.5 percent lower than the comparable 2019 levy. Of the total General Fund budgeted revenues, including transfers in for 2020, 75.0 percent are from property taxes, including $2.3 million in fiscal disparities revenue. The remaining General Fund budgeted revenues were adjusted to better reflect projected building activity and intergovernmental-related revenues. Proposed 2020 General Fund expenditures, including transfers out, are estimated at $13,642,352, an increase of 4.9 percent compared to the 2019 budget. The 2020 budget maintains funding for core services—police and fire protection, street maintenance and snow removal, parks and recreation, and administration; and continues long-term funding for the City's seal coating, trail maintenance, building maintenance, and police and fire equipment. The City's capital improvement plan provides for the replacement of numerous fleet vehicles, that have been on hold for several years, in 2020. The City will also take delivery of its first ladder truck,Ladder 1. For 2020,the City is focused on implementing the recently adopted 2040 Comprehensive Plan. This plan aims to outline the future for development within the community and offers a vision that will guide the next stage of planning and development investment. There are several new subdivisions anticipated for new home construction in 2020. Shortly after the 2019 fiscal year-end, the worldwide spread of the novel coronavirus (COVID-19) has caused significant volatility in the economy and financial markets. There is significant uncertainty about the breadth and duration of potential business disruptions related to COVID-19, and its economic impact in the U.S. and around the world. At this time, the City is unable to determine what effect this may have on its future financial condition and operations. REQUESTS FOR INFORMATION This CAFR is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this CAFR or requests for additional financial information should be directed to the City's Finance Director at the City of Farmington, 430 Third Street, Farmington, Minnesota 55024; by calling (651) 280-6800; or emailing the request to tmalecha@FarmingtonMN.gov. -15- BASIC FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Statement of Net Position as of December 31,2019 Primary Government Component Unit Economic Governmental Business-Type Development Activities Activities Total Authority Assets Cash and investments $ 19,418,999 $ 12,355,254 $ 31,774,253 $ 320,426 Receivables Accounts 367,405 1,591,647 1,959,052 - Interest 36,799 28,179 64,978 734 Property taxes 1,164,805 - 1,164,805 - Special assessments 2,634,963 334,276 2,969,239 - Due from other governments 34,677 - 34,677 65,398 Loan 101,101 - 101,101 - Inventory - 616,383 616,383 - Prepaid items 20,128 3,333 23,461 300 Restricted assets-temporarily restricted Cash for future drinking water treatment plant - 2,461,488 2,461,488 - Net pension asset-fire relief 695,590 - 695,590 - Capital assets Not depreciated 1,749,824 498,376 2,248,200 - Depreciated,net of accumulated depreciation 45,862,653 53,990,256 99,852,909 - Total capital assets,net of accumulated depreciation 47,612,477 54,488,632 102,101,109 - Total assets 72,086,944 71,879,192 143,966,136 386,858 Deferred outflows of resources Pension plan deferments-PERA 2,852,967 55,833 2,908,800 - Pension plan deferments-fire relief 617,990 - 617,990 - OPEB plan deferments 65,219 7,440 72,659 - Total deferred outflows of resources 3,536,176 63,273 3,599,449 - Total assets and deferred outflows of resources $ 75,623,120 $ 71,942,465 $ 147,565,585 $ 386,858 Liabilities Accounts and contracts payable $ 699,166 $ 780,231 $ 1,479,397 $ 72,163 Accrued salaries and employee benefits payable 467,740 - 467,740 - Accrued interest payable 238,463 21,342 259,805 - Deposits payable 1,201,201 49,000 1,250,201 - Due to other governments 756 86,284 87,040 - Long-term liabilities Due within one year 3,639,181 145,683 3,784,864 - Due in more than one year 11,085,119 772,749 11,857,868 - Net pension liability-due in more than one year 5,381,694 542,263 5,923,957 - Total OPEB liability-due in more than one year 1,023,973 116,817 1,140,790 - Total long-term liabilities 21,129,967 1,577,512 22,707,479 - Total liabilities 23,737,293 2,514,369 26,251,662 72,163 Deferred inflows of resources Pension plan deferments-PERA 4,439,454 96,601 4,536,055 - Pension plan deferments-fire relief 188,025 - 188,025 - OPEB plan deferments 45,731 5,217 50,948 - Total deferred inflows of resources 4,673,210 101,818 4,775,028 - Net position Net investment in capital assets 33,867,761 53,677,776 87,545,537 - Restricted for Debt service 3,797,928 - 3,797,928 - Capital projects 193,337 - 193,337 - Police programs 20,392 - 20,392 - Park improvements 205,862 - 205,862 - Fire relief pensions 1,125,555 - 1,125,555 - Water Fund-future drinking water treatment plant - 2,461,488 2,461,488 - Unrestricted 8,001,782 13,187,014 21,188,796 314,695 Total net position 47,212,617 69,326,278 116,538,895 314,695 Total liabilities,deferred inflows of resources,and net position $ 75,623,120 $ 71,942,465 $ 147,565,585 $ 386,858 See notes to basic financial statements -16- CITY OF FARMINGTON Statement of Activities Year Ended December 31,2019 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary government Governmental activities General government $ 2,609,059 $ 471,569 $ 95,934 $ 236 Public safety 6,118,203 437,054 485,627 74,192 Public works 5,612,872 189,282 232,379 795,421 Parks and recreation 2,202,631 582,631 24,629 — Economic development 50,000 — — — Interest and fiscal charges 404,893 — — — Total governmental activities 16,997,658 1,680,536 838,569 869,849 Business-type activities Liquor operations 5,257,236 5,608,012 — — Sewer operations 2,326,630 2,117,934 — — Solid waste 1,913,258 2,244,569 30,868 81,634 Storm water 557,749 1,130,563 — — Water 1,439,178 2,281,793 3,322 — Street light 165,886 226,971 — — Total business-type activities 11,659,937 13,609,842 34,190 81,634 Total primary government $ 28,657,595 $ 15,290,378 $ 872,759 $ 951,483 Component unit Economic development authority $ 266,116 $ — $ 118,248 $ — General revenues Property taxes Franchise taxes Grants and contributions not restricted to specific programs Investment earnings Gain on disposal of capital assets Transfers—capital assets Transfers—internal activities Total general revenues and transfers Change in net position Net position—beginning Net position—ending See notes to basic financial statements -17- Net(Expense)Revenue and Changes in Net Position Primary Government Component Unit Economic Governmental Business-Type Development Activities Activities Total Authority $ (2,041,320) $ — $ (2,041,320) $ — (5,121,330) — (5,121,330) — (4,395,790) — (4,395,790) — (1,595,371) — (1,595,371) — (50,000) - (50,000) - (404,893) — (404,893) — (13,608,704) — (13,608,704) — — 350,776 350,776 - - (208,696) (208,696) - - 443,813 443,813 - - 572,814 572,814 - - 845,937 845,937 - - 61,085 61,085 - - 2,065,729 2,065,729 — (13,608,704) 2,065,729 (11,542,975) — — — — (147,868) 12,916,115 — 12,916,115 146,210 262,148 — 262,148 — 317,172 — 317,172 — 657,977 548,310 1,206,287 12,220 17,218 — 17,218 — (2,024,174) 2,024,174 — — 2,970,207 (2,970,207) — — 15,116,663 (397,723) 14,718,940 158,430 1,507,959 1,668,006 3,175,965 10,562 45,704,658 67,658,272 113,362,930 304,133 $ 47,212,617 $ 69,326,278 $ 116,538,895 $ 314,695 -18- CITY OF FARMINGTON Balance Sheet Governmental Funds as of December 31,2019 Capital Projects— Debt Service State Aid General Fund Construction Assets Cash and investments $ 4,676,267 $ 3,775,636 $ 127,336 Receivables Accounts 231,180 — — Interest 8,596 7,639 242 Property taxes Unremitted 1,048,845 — — Delinquent 115,960 — — Special assessments Delinquent 386 99,204 — Noncurrent 981 1,160,564 232,453 Due from other funds — — — Advances to other funds — — — Due from other governments 31,730 — — Loan 101,101 — — Prepaid items 8,422 — — Total assets $ 6,223,468 $ 5,043,043 $ 360,031 Liabilities Accounts and contracts payable $ 167,207 $ 11,648 $ — Deposits payable 67,556 — — Due to other governments 108 — — Due to other funds — 406,082 — Advances from other funds — 588,922 — Total liabilities 234,871 1,006,652 — Deferred inflows of resources Unavailable revenue—property tames 115,960 — — Unavailable revenue—special assessments 1,367 1,259,768 232,453 Total deferred inflows of resources 117,327 1,259,768 232,453 Fund balances Nonspendable 109,523 — — Restricted — 2,776,623 — Committed — — 127,578 Unassigned 5,761,747 — — Total fund balances 5,871,270 2,776,623 127,578 Total liabilities,deferred inflows of resources,and fund balances $ 6,223,468 $ 5,043,043 $ 360,031 See notes to basic financial statements -19- Capital Capital Projects- Projects- Permanent Capital Capital Storm Water Improvement Projects- Projects- Trunk Revolving Maintenance Private Nonmajor Total $ 2,469,677 $ 174,580 $ 1,148,610 $ 1,197,156 $ 3,000,020 $ 16,569,282 - - - - 132,123 363,303 4,698 332 2,185 1,950 5,736 31,378 - - - - - 1,048,845 - - - - 115,960 181 - - - 99,771 - 1,140,103 - 1,091 - 2,535,192 406,082 - - - - 406,082 588,922 - - - - 588,922 - - - 31,730 - 101,101 - - - - - 8,422 $ 3,469,379 $ 1,315,196 $ 1,150,795 $ 1,200,197 $ 3,137,879 $ 21,899,988 $ - $ - $ 283,686 $ - $ 125,540 $ 588,081 - - - 1,122,772 9,309 1,199,637 - - 648 756 - - - - 406,082 - - - 588,922 283,686 1,122,772 135,497 2,783,478 - - - - - 115,960 1,140,284 - 1,091 - 2,634,963 1,140,284 - 1,091 - 2,750,923 - - - - 109,523 - - - 419,591 3,196,214 3,469,379 174,912 867,109 76,334 2,582,791 7,298,103 - - - - 5,761,747 3,469,379 174,912 867,109 76,334 3,002,382 16,365,587 $ 3,469,379 $ 1,315,196 $ 1,150,795 $ 1,200,197 $ 3,137,879 $ 21,899,988 -20- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds as of December 31,2019 Total fund balances—governmental funds $ 16,365,587 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in governmental funds. Cost of capital assets 89,969,093 Less accumulated depreciation (42,374,966) Net pension assets are only recorded in the government-wide financial statements as they are not current financial resources to governmental funds. 695,590 Long-term liabilities are not payable with current financial resources and,therefore, are not reported in governmental funds. Bonds (13,220,000) Unamortized bond premiums (532,060) Compensated absences (948,493) Net pension liability (5,381,694) Total OPEB liability (1,023,973) Interest on long-term debt is included in the change in net position as it accrues,regardless of when payment is due.However,it is included in the change in fund balances when due. (238,463) Internal service funds are used by management to charge certain costs to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 2,288,107 Due to availability,certain revenues are not recognized under the governmental fund statements until received; however, under full accrual in the government-wide Statement of Activities, revenues are recorded when earned regardless of when received. Delinquent property taxes 115,960 Delinquent and deferred special assessments 2,634,963 Governmental funds do not report certain long-term amounts related to pensions that are included in net position. Deferred outflows of resources—pension plan deferments 3,470,957 Deferred outflows of resources—OPEB plan deferments 65,219 Deferred inflows of resources—pension plan deferments (4,627,479) Deferred inflows of resources—OPEB plan deferments (45,731) Total net position—governmental activities $ 47,212,617 See notes to basic financial statements -21- CITY OF FARMINGTON Statement of Revenues,Expenditures,and Changes in Fund Balances Governmental Funds Year Ended December 31,2019 Capital Projects— Debt Service State Aid General Fund Construction Revenues Property taxes $ 9,714,270 $ 3,046,460 $ — Franchise taxes 120,000 — — Special assessments 2,005 614,900 6,973 Licenses and permits 421,578 — — Intergovernmental 1,085,065 — — Charges for services 502,902 — — Fines and forfeits 63,561 — — Investment earnings 142,075 99,255 4,359 Other 53,125 — — Total revenues 12,104,581 3,760,615 11,332 Expenditures Current General government 2,330,789 — — Public safety 5,698,892 — — Public works 2,600,928 — 22 Parks and recreation 1,196,803 — — Economic development 50,000 — — Capital outlay General government 39,096 — — Public safety 34,874 — — Public works 4,507 — — Parks and recreation 12,611 — — Debt service Principal — 2,435,000 — Interest and fiscal charges — 390,099 — Total expenditures 11,968,500 2,825,099 22 Excess(deficiency)of revenues over expenditures 136,081 935,516 11,310 Other financing sources(uses) Bond proceeds — — — Premium on debt issuance — 21,542 — Sale of capital assets — — — Transfers in 1,244,256 293,648 — Transfers out (1,231,138) (98,245) — Total other financing sources(uses) 13,118 216,945 — Net change in fund balances 149,199 1,152,461 11,310 Fund balances Beginning of year 5,722,071 1,624,162 116,268 End of year $ 5,871,270 $ 2,776,623 $ 127,578 See notes to basic financial statements -22- Capital Capital Projects- Projects- Permanent Capital Capital Storm Water Improvement Projects- Projects- Trunk Revolving Maintenance Private Nonmajor Total $ 166,000 $ - $ - $ - $ - $ 12,926,730 - - - - 142,148 262,148 - 815 - 615 - 625,308 - - - - 421,578 - - 688,143 - 23,367 1,796,575 89,707 - 39,391 - 410,292 1,042,292 - - - - - 63,561 123,130 6,108 56,854 32,307 103,451 567,539 - - - - 173,191 226,316 378,837 6,923 784,388 32,922 852,449 17,932,047 - - - 2,726 74,417 2,407,932 - - 6,928 5,705,820 671,363 - - 3,272,313 209,231 - 449,227 1,855,261 - 50,000 - - - - 25,820 64,916 - - - - 519,120 553,994 59,009 - 3,710,203 - - 3,773,719 - - - - 310,749 323,360 - - - - - 2,435,000 22,274 - - - - 412,373 81,283 - 4,590,797 2,726 1,386,261 20,854,688 297,554 6,923 (3,806,409) 30,196 (533,812) (2,922,641) - - 925,000 - - 925,000 - - 63,013 - - 84,555 - - 13,973 - 4,966 18,939 - - 2,175,009 - 567,334 4,280,247 - - - (9,789) (1,339,172) - - 3,176,995 - 562,511 3,969,569 297,554 6,923 (629,414) 30,196 28,699 1,046,928 3,171,825 167,989 1,496,523 46,138 2,973,683 15,318,659 $ 3,469,379 $ 174,912 $ 867,109 $ 76,334 $ 3,002,382 $ 16,365,587 -23- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Reconciliation of the Statement of Revenues,Expenditures,and Changes in Fund Balances to the Statement of Activities Governmental Funds Year Ended December 31,2019 Total net change in fund balances—governmental funds $ 1,046,928 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay 3,573,740 Depreciation expense (2,112,008) Transfers of capital assets to business-type activities (2,024,174) A gain or loss on the disposal of capital assets,including the difference between the carrying value and any related sale proceeds,is included in the change in net position.However,only the sale proceeds are included in the change in fund balance. Net book value of capital assets disposed (1,721) Net pension assets are included in net position,but are excluded from fund balances because they do not represent financial resources. (348,274) The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of long-term debt consumes the current financial resources of governmental funds.Neither transaction,however,has any effect on net position. Other long-term adjustments are also made between the governmental funds and the Statement of Activities for debt premiums,compensated absences,pension liabilities,and OPEB obligations. Bonds issued (925,000) Principal payments for bonds 2,435,000 Debt premiums 19,415 Compensated absences (11,752) Net pension liability (101,526) Total OPEB liability (25,046) Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources.In the Statement of Activities,however,interest expense is recognized as the interest accrues,regardless of when it is due. (96,490) Internal service funds are used by management to charge certain costs to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities in the government-wide financial statements. 137,341 Certain revenues included in net position as soon as they are earned are not included in the change in fund balances until available to liquidate liabilities of the current period. (10,615) Delinquent property taxes (516,813) Delinquent and deferred special assessments Governmental funds do not report additions or deletions to certain long-term amounts related to pensions that are (995,984) Deferred outflows of resources—pension plan deferments 6,668 Deferred outflows of resources—OPEB plan deferments 1,504,001 Deferred inflows of resources—pension plan deferments (45,731) Deferred inflows of resources—OPEB plan deferments Change in net position—governmental activities $ 1,507,959 See notes to basic financial statements -24- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Statement of Revenues,Expenditures,and Changes in Fund Balances Budget and Actual General Fund Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 9,808,308 $ 9,714,270 $ (94,038) Franchise taxes 120,000 120,000 - Special assessments - 2,005 2,005 Licenses and permits 396,410 421,578 25,168 Intergovernmental 892,265 1,085,065 192,800 Charges for services 438,880 502,902 64,022 Fines and forfeits 42,000 63,561 21,561 Investment earnings 21,900 142,075 120,175 Other 43,775 53,125 9,350 Total revenues 11,763,538 12,104,581 341,043 Expenditures Current General government 2,478,567 2,330,789 (147,778) Public safety 5,736,942 5,698,892 (38,050) Public works 2,508,554 2,600,928 92,374 Parks and recreation 1,224,393 1,196,803 (27,590) Economic development 50,000 50,000 - Capital outlay General government - 39,096 39,096 Public safety 11,000 34,874 23,874 Public works - 4,507 4,507 Parks and recreation 7,200 12,611 5,411 Total expenditures 12,016,656 11,968,500 (48,156) Excess(deficiency)of revenues over expenditures (253,118) 136,081 389,199 Other financing sources(uses) Transfers in 1,244,256 1,244,256 - Transfers out (1,231,138) (1,231,138) - Total other financing sources(uses) 13,118 13,118 - Net change in fund balances $ (240,000) 149,199 $ 389,199 Fund balances Beginning of year 5,722,071 End of year $ 5,871,270 See notes to basic financial statements -25- CITY OF FARMINGTON Statement of Net Position Proprietary Funds as of December 31,2019 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Assets Current assets Cash and investments $ 1,562,043 $ 2,572,214 $ 1,306,531 $ 1,285,003 Cash restricted for drinking water treatment plant - - - - Receivables Accounts 55,874 435,803 488,790 256,542 Interest 2,964 4,893 2,485 2,445 Delinquent special assessments - 21,546 - - Deferred special assessments - 312,730 - - Due from other governments - - - - Inventory 616,383 - - - Prepaid items 3,333 - - - Total current assets 2,240,597 3,347,186 1,797,806 1,543,990 Noncurrent assets Capital assets Land - 85,000 - 84,992 Buildings - - - - Improvements other than buildings 121,012 - - - Machinery and equipment 255,266 919,296 1,515,714 226,277 Distribution system - - - - Collection system - 28,952,049 - 20,835,694 Less accumulated depreciation (364,803) (12,823,701) (1,044,260) (7,825,532) Total capital assets(net of accumulated depreciation) 11,475 17,132,644 471,454 13,321,431 Total assets 2,252,072 20,479,830 2,269,260 14,865,421 Deferred outflows of resources Pension plan deferments-PERA 31,406 - 24,427 - OPEB plan deferments 4,265 - 3,175 - Total deferred outflows of resources 35,671 27,602 Total assets and deferred outflows of resources $ 2,287,743 $ 20,479,830 $ 2,296,862 $ 14,865,421 Liabilities Current liabilities Accounts and contracts payable $ 159,139 $ 211,695 $ 93,603 $ 4,398 Accrued salaries and employee benefits payable - - - - Deposits payable - - - - Due to other governments 49,689 9,940 25,151 - Accrued interest payable - - - - Compensated absences payable-current 32,317 - 48,366 - Bonds payable-current - - - Total current liabilities 241,145 221,635 167,120 4,398 Noncurrent liabilities Compensated absences payable 10,771 - 16,122 - Bonds payable(net of unamortized premiums) - - - - Net pension liability-PERA 305,023 - 237,240 - Total OPEB liability 66,964 - 49,853 - Total noncurrent liabilities 382,758 303,215 Total liabilities 623,903 221,635 470,335 4,398 Deferred inflows of resources Pension plan deferments-PERA 54,338 - 42,263 - OPEB plan deferments 2,991 - 2,226 - Total deferred inflows of resources 57,329 - 44,489 - Net position Net investment in capital assets 11,475 17,132,644 471,454 13,321,431 Restricted for drinking water treatment plant - - - - Unrestricted 1,595,036 3,125,551 1,310,584 1,539,592 Total net position 1,606,511 20,258,195 1,782,038 14,861,023 Total liabilities,deferred inflows of resources,and net position $ 2,287,743 $ 20,479,830 $ 2,296,862 $ 14,865,421 See notes to basic financial statements -26- Govemmental Street Activities- Water Light Total Internal Service $ 5,423,278 $ 206,185 $ 12,355,254 $ 2,849,717 2,461,488 - 2,461,488 - 324,202 30,436 1,591,647 4,102 15,000 392 28,179 5,421 - - 21,546 - 312,730 - - - 2,947 616,383 - 3,333 11,706 8,223,968 237,013 17,390,560 2,873,893 328,384 - 498,376 - 5,185,996 - 5,185,996 - 1,534,818 - 1,655,830 - 517,003 - 3,433,556 116,173 33,196,921 - 33,196,921 - - - 49,787,743 - (17,211,494) (39,269,790) (97,823) 23,551,628 54,488,632 18,350 31,775,596 237,013 71,879,192 2,892,243 - - 55,833 - 7,440 63,273 $ 31,775,596 $ 237,013 $ 71,942,465 $ 2,892,243 $ 285,316 $ 26,080 $ 780,231 $ 111,085 - - - 467,740 49,000 - 49,000 1,564 1,504 - 86,284 - 21,342 - 21,342 - - - 80,683 23,747 65,000 - 65,000 - 422,162 26,080 1,082,540 604,136 - - 26,893 - 745,856 - 745,856 - - - 542,263 - 116,817 745,856 1,431,829 1,168,018 26,080 2,514,369 604,136 - - 96,601 - 5,217 - - 101,818 - 22,740,772 - 53,677,776 18,350 2,461,488 - 2,461,488 - 5,405,318 210,933 13,187,014 2,269,757 30,607,578 210,933 69,326,278 2,288,107 $ 31,775,596 $ 237,013 $ 71,942,465 $ 2,892,243 -27- CITY OF FARMINGTON Statement of Revenues,Expenses,and Changes in Fund Net Position Proprietary Funds Year Ended December 31,2019 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Operating revenue Sales $ 5,604,602 $ - $ - $ - Charges for services - 2,116,965 2,240,717 1,130,563 Insurance reimbursement - - Miscellaneous 3,410 969 3,852 - Total operating revenue 5,608,012 2,117,934 2,244,569 1,130,563 Cost of goods sold 4,183,615 - - - Gross profit 1,424,397 2,117,934 2,244,569 1,130,563 Operating expenses Personal services 561,014 3,326 443,770 6,160 Professional services 492,050 1,674,115 1,291,668 93,991 Materials and supplies 19,279 19,309 129,748 15,433 Insurance - - - - Depreciation 1,278 613,562 75,916 438,000 Total operating expenses 1,073,621 2,310,312 1,941,102 553,584 Operating income(loss) 350,776 (192,378) 303,467 576,979 Nonoperating revenues(expenses) Intergovernmental - - 30,868 - Investment earnings 50,838 100,386 41,819 44,925 Gain on sale of capital assets - - 28,000 - Loss on sale of capital assets - (14,277) - (4,115) Interest and fiscal charges - (2,041) (156) (50) Total nonoperating revenues(expenses) 50,838 84,068 100,531 40,760 Income(loss)before transfers and capital contributions 401,614 (108,310) 403,998 617,739 Transfers and capital contributions Capital contributions-from other funds - 786,989 - 449,994 Capital contributions-from others - - - 81,634 Transfers in - 11,149 86,244 5,575 Transfers out (134,088) (986,029) (145,314) (713,387) Total transfers and capital contributions (134,088) (187,891) (59,070) (176,184) Change in net position 267,526 (296,201) 344,928 441,555 Net position Beginning of year 1,338,985 20,554,396 1,437,110 14,419,468 End of year $ 1,606,511 $ 20,258,195 $ 1,782,038 $ 14,861,023 See notes to basic financial statements -28- Governmental Street Activities- Water Light Total Internal Service $ - $ - $ 5,604,602 $ - 2,038,703 226,971 7,753,919 3,215,908 268,409 243,090 - 251,321 - 2,281,793 226,971 13,609,842 3,484,317 - - 4,183,615 - 2,281,793 226,971 9,426,227 3,484,317 10,495 - 1,024,765 2,715,913 372,556 164,811 4,089,191 265,237 173,423 1,075 358,267 197,128 - - - 291,713 837,094 - 1,965,850 7,344 1,393,568 165,886 7,438,073 3,477,335 888,225 61,085 1,988,154 6,982 3,322 - 34,190 10,789 303,877 6,465 548,310 90,438 - - 28,000 - (13,179) - (31,571) - (32,431) - (34,678) - 261,589 6,465 544,251 101,227 1,149,814 67,550 2,532,405 108,209 787,191 - 2,024,174 - - - 81,634 - 11,149 - 114,117 29,132 (1,105,506) - (3,084,324) - (307,166) - (864,399) 29,132 842,648 67,550 1,668,006 137,341 29,764,930 143,383 67,658,272 2,150,766 $ 30,607,578 $ 210,933 $ 69,326,278 $ 2,288,107 -29- CITY OF FARMINGTON Statement of Cash Flows Proprietary Funds Year Ended December 31,2019 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Cash flows from operating activities Cash received from customers $ 5,600,540 $ 2,071,542 $ 2,208,609 $ 1,037,469 Cash receipts from other funds and reimbursements - - - - Cash payments tosuppliers (4,807,984) (1,487,939) (1,421,251) (114,836) Cash payments to employees for services (550,594) (3,326) (433,595) (6,160) Cash payments for interfund services used - - - - Net cash flows from operating activities 241,962 580,277 353,763 916,473 Cash flows from noncapital financing activities Intergovernmental revenue - - 30,868 - Transfers in - 11,149 86,244 5,575 Transfers out (134,088) (310,356) (145,314) (385,768) Net cash flows from noncapital financing activities (134,088) (299,207) (28,202) (380,193) Cash flows from capital and related financing activities Acquisition and construction ofcapital assets (12,753) (109,192) (166,128) (2,166) Sale of bonds - - - - Proceeds from the disposal of capital assets - - 28,000 - Interest and fiscal charges paid - (2,041) (156) (50) Transfers out - (675,673) - (327,619) Net cash flows from capital and related financing activities (12,753) (786,906) (138,284) (329,835) Cash flows from investing activities Interest received and changes in fair value on investments 51,231 102,473 41,860 44,905 Net increase in cash and cash equivalents 146,352 (403,363) 229,137 251,350 Cash and cash equivalents Beginning of year 1,415,691 2,975,577 1,077,394 1,033,653 End ofyear $ 1,562,043 $ 2,572,214 $ 1,306,531 $ 1,285,003 Reconciliation of operating income(loss)to net cash flows from operating activities Operating income(loss) $ 350,776 $ (192,378) $ 303,467 $ 576,979 Adjustments to reconcile operating income(loss)to net cash flows from operating activities Depreciation 1,278 613,562 75,916 438,000 Change in assets,deferred outflows of resources,liabilities, and deferred inflows of resources Accounts receivable (7,472) (16,318) (35,960) (93,094) Special assessments - (30,074) - - Due from other governments - - - - Inventory (80,354) - - - Prepaid items (279) - - - Deferred outflows of resources-pension plan deferments 27,789 - 21,613 - Deferred outflows of resources-OPEB plan deferments (320) - (24) - Accounts and contracts payable (32,331) 198,030 (2,428) (5,412) Accrued salaries and employee benefits - - - - Deposits payable - - - - Due to other governments (76) 7,455 2,593 - Compensated absences (5,670) - 7,421 - Net pension liability 1,958 - 1,523 - Total OPEB liability 7,484 - (4,064) - Deferred inflows of resources-pension plan deferments (23,812) - (18,520) - Deferred inflows of resources-OPEB plan deferments 2,991 - 2,226 - Net cash flows from operating activities $ 241,962 $ 580,277 $ 353,763 $ 916,473 Schedule of noncash capital and related financing activities Capital assets contributed from other funds $ - $ 786,989 $ - $ 449,994 Capital assets contributed from others $ - $ - $ - $ 81,634 Net book value of capital asset disposals $ - $ 14,277 $ - $ 4,115 Amortization ofbond premium $ - $ - $ - $ - See notes to basic financial statements -30- Govemmental Street Activities- Water Light Total Internal Service $ 2,206,073 $ 228,722 $ 13,352,955 $ - - - - 3,477,457 (376,226) (167,672) (8,375,908) - (10,495) - (1,004,170) (2,542,806) - (768,885) 1,819,352 61,050 3,972,877 165,766 3,322 - 34,190 10,789 11,149 - 114,117 29,132 (419,360) - (1,394,886) - (404,889) - (1,246,579) 39,921 (3,342,527) - (3,632,766) - 816,638 - 816,638 - - - 28,000 - (16,871) - (19,118) - (686,146) - (1,689,438) - (3,228,906) - (4,496,684) - 310,898 6,399 557,766 91,005 (1,503,545) 67,449 (1,212,620) 296,692 9,388,311 138,736 16,029,362 2,553,025 $ 7,884,766 $ 206,185 $ 14,816,742 $ 2,849,717 $ 888,225 $ 61,085 $ 1,988,154 $ 6,982 837,094 - 1,965,850 7,344 (75,720) 1,751 (226,813) (3,913) - - (30,074) - (2,947) - - (80,354) - - (279) 4,131 - 49,402 - - (344) - 152,238 (1,786) 308,311 70,202 - - - 81,430 17,000 - 17,000 1,521 515 - 10,487 (73) - - 1,751 1,089 - - 3,481 - - - 3,420 - - - (42,332) - - 5,217 - $ 1,819,352 $ 61,050 $ 3,972,877 $ 165,766 $ 787,191 $ - $ 2,024,174 $ - $ - $ - $ 81,634 $ - $ 13,179 $ - $ 31,571 $ - $ 5,782 $ - $ 5,782 $ - -31- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Notes to Basic Financial Statements December 31, 2019 NOTE 1—SIGNIFICANT ACCOUNTING POLICIES A. Organization The City of Farmington, Minnesota (the City) was incorporated in 1872 and operates under the state of Minnesota Statutory Plan A form of government. The City Council is the governing body and is composed of an elected mayor and four councilmembers who exercise legislative authority and determine all matters of policy. The City provides the following services: public safety, roads, water and sanitary sewer, storm water management, solid waste and recycling disposal, public improvements, planning and zoning,recreation,and general administration. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The Governmental Accounting Standards Board(GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. B. Reporting Entity As required by accounting principles generally accepted in the United States of America, these financial statements include the City (the primary government) and its component unit. Component units are legally separate entities for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit includes whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. As a result of applying these criteria, one organization has been included in this report as follows: Discretely Presented Component Unit—The Farmington Economic Development Authority (EDA) is the City's official decision-making body regarding economic development. It promotes the retention and expansion of existing businesses, while attracting new businesses to the community in order to promote a diversified tax base,job opportunities, and convenient shopping for residents. The EDA is a legally separate entity from the City; however, the City is financially accountable for the EDA. The EDA's governing board is comprised of two City Council members, one Independent School District No. 192 School Board member, and four residents appointed by the City Council,and the City has ability to impose its will on the EDA. The EDA does not issue separate financial statements. Information on the EDA's governmental funds is presented as supplemental information elsewhere in this report. C. Government-Wide Financial Statement Presentation The government-wide financial statements (Statement of Net Position and Statement of Activities) display information about the reporting government as a whole. These statements include all of the financial activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities,which significantly rely upon sales,fees,and charges for support. -32- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) The government-wide Statement of Activities demonstrates the extent to which the direct expense of a given function (general government, public safety, public works, parks and recreation, and economic development) or business-type activity (liquor operations, utility services) is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Interest on debt is considered an indirect expense and is reported separately in the Statement of Activities. Depreciation expense is included in the direct expenses of each function. Program revenues include: 1)charges to customers or applicants who purchase, use,or directly benefit from goods, services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Internally directed revenues are reported as general revenues rather than program revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments are recognized as revenues in the fiscal year for which they are certified for levy. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. As a general rule,the effect of interfund activity has been eliminated from the government-wide financial statements. However, charges between the City's enterprise funds and other functions are not eliminated, as that would distort the direct costs and program revenues reported in those functions. D. Fund Financial Statement Presentation Separate fund financial statements are provided for governmental and proprietary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Aggregated information for the remaining nonmajor funds is reported in a single column in the respective fund financial statements. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following manner: 1. Revenue Recognition — Revenue is recognized when it becomes measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days after year-end. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met.Proceeds of long-term debt are reported as other financing sources. Major revenues susceptible to accrual include property taxes, special assessments, intergovernmental revenue, charges for services, and interest earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, fees, and miscellaneous revenue. Such revenues are recorded only when received because they are 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 liabilities, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. -33- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) Proprietary fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and internal service funds are charges to customers for sales and services. The operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition are reported as nonoperating revenues and expenses. Aggregated information for the internal service funds is reported in a single column in the proprietary fund financial statements. Because the principal user of the internal services is the City's governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. Description of Funds The City reports the following major governmental funds: General Fund—This fund is the City's primary operating fund. It accounts for all financial resources of the general government,except those required to be accounted for in another fund. Debt Service Fund—This fund accounts for the financial resources accumulated and payments made for principal and interest on long-term bond-financed debt of the City. State Aid Construction Capital Projects Fund—This fund, also referred to as the Road and Bridge Fund, accounts for street construction and road/street rehabilitation or reconstruction projects related to municipal state aids. Storm Water Trunk Capital Projects Fund — This fund accounts for the construction and improvement of storm water trunk infrastructure within the City. Permanent Improvement Revolving Capital Projects Fund — This fund accounts for street construction projects financed with multiple funding sources. Maintenance Capital Projects Fund — This fund accounts for operations and activities related to maintenance of city roads,trails,and buildings. Private Capital Projects Fund—This fund accounts for engineering and administrative fees related to private development projects within the City. The City reports the following major enterprise funds: Liquor Operations Fund — The Liquor Operations Fund accounts for the retail operations of the City's two off-sale municipal liquor stores. Sewer Operations Fund — The Sewer Operations Fund accounts for the operations of the City's wastewater collection and treatment systems. Solid Waste Fund — The Solid Waste Fund accounts for the revenue and expenses related to the operation of the City's garbage collection and recycling programs. -34- NOTE I—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) Storm Water Fund — The Storm Water Fund accounts for revenues and expenses related to the maintenance and cleaning of the City's existing storm water collection and holding pond system. Water Fund — The Water Fund accounts for the operations of the City's water distribution system including wells,reservoirs, and trunk infrastructure system. Street Light Fund—The Street Light Fund accounts for the financial activities related to city-owned street lights. Additionally,the City reports the following fund type: Internal Service Funds — Internal service funds account for the financing of goods and services provided to other departments or agencies of the City on a cost-reimbursement basis. The City's internal service funds account for employee benefits expenses, insurance, fleet services, and technology services. E. Budgets and Budgetary Accounting Budgets are prepared annually on a modified accrual basis and legally adopted by the City Council for the General Fund, special revenue funds, Debt Service Fund (in total), capital projects funds, and enterprise funds. No 2019 budget was adopted for the K-9 Special Revenue Fund, which was established during the year.Budgeted expenditure appropriations lapse at year-end. The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The city administrator submits a proposed operating budget for the fiscal year commencing the following January 1 to the City Council. The operating budget includes proposed expenditures and the means of financing them. 2. The City Council reviews the proposed budgets and makes the appropriate changes. 3. Public hearings are conducted to obtain taxpayer comments. 4. The budgets are legally enacted through passage of a resolution on a departmental basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts. 5. Formal budgetary integration is employed as a management control device during the year for the governmental and enterprise funds. 6. The legal level of budgetary control is at the fund level. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring of budgets is maintained at the expenditure category level (e.g. personnel services, supplies, other services and charges, etc.) within each department. Management can exceed appropriations at the department level without City Council approval. The City Council must approve any amounts over budget at the fund level by resolution or through the disbursement process. 7. The City Council may authorize transfers of budgeted amounts between funds. -35- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) For the year ended December 31, 2019, expenditures exceeded budget for the following funds. Expenditures in excess of budget were approved by the City Council either through the disbursement process or separate City Council action. Budgeted Actual Expenditures Expenditures Major funds State Aid Construction Capital Projects $ — $ 22 Storm Water Trunk Capital Projects $ — $ 81,283 Maintenance Capital Projects $ 3,894,732 $ 4,590,797 Nonmajor special revenue funds Park Improvement $ 307,500 $ 328,099 Arena $ 352,744 $ 380,837 Nonmajor capital projects funds Recreation Capital Projects $ 14,100 $ 51,040 F. Cash and Investments Cash and investments include balances from all funds that are combined and invested to the extent available in various securities as authorized by state law. Earnings from the pooled investments are allocated to the respective funds based on month-end outstanding balances for each fund. Certain resources set aside for future use, such as the construction of a drinking water treatment plant, are classified as restricted assets on the Statement of Net Position, because their use is limited by outside agreements. Interest on these investments is allocated to the respective fund. For purposes of the Statement of Cash Flows, the City considers all highly liquid instruments with an original maturity from the time of purchase by the City of three months or less to be cash equivalents. The proprietary funds' portion in the government-wide cash and investment management pool is considered cash equivalent. It is the City's policy to invest in a manner that seeks to ensure preservation of capital in the overall portfolio. Safety of principal is the foremost objective, but liquidity and yield are also important considerations. The objective will be to mitigate credit risk by purchasing only highly rated securities or with adequate collateral and interest rate risk by matching maturities to cash flow needs and holding securities to maturity. 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 accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;and Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. See Note 2 for the City's recurring fair value measurements as of the current year-end. -36- NOTE I—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) G. Receivables Utility and miscellaneous accounts receivable are reported at gross. Since 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. H. Interfund Receivables and Payables In the fund financial statements, activity between funds that is representative of lending or borrowing arrangements is reported as either"due to/from 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 activities are reported in the government-wide financial statements as"internal balances." I. Property Taxes Property tax levies are set by the City Council in December of each year and certified to Dakota County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes, spreading the levies over all taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Tax levies on real property are payable in two equal installments on May 15 and October 15. Personal property taxes are due in full on May 15. The county provides tax settlements to cities and other taxing districts four times a year: in June,July,December,and January. Property taxes are recognized as revenue in the year levied in the government-wide financial statements and proprietary fund financial statements. In the governmental fund financial statements, taxes are recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain unpaid on December 31 are classified as delinquent taxes receivable and are offset by a deferred inflow of resources in the governmental fund financial statements. J. Special Assessments Special assessments 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 and proprietary fund financial statements. In the governmental fund financial statements, special assessments are recognized as revenue when received in cash or within 60 days after year-end. Governmental fund special assessments receivable which remain unpaid on December 31 are offset by a deferred inflow of resources in the governmental fund financial statements. K. Inventories Inventories of the proprietary funds, primarily the liquor operations, are stated at cost, which approximates market, using the average cost method. L. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. -37- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) M. Capital Assets Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets (roads,bridges, sidewalks, and similar items), and intangible assets,such as easements, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their estimated acquisition value on the date of donation. The City defines capital assets as those with an initial, individual cost of$5,000 or more with an estimated useful life in excess of five years. 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. Capital assets are recorded in the government-wide and proprietary fund financial statements, but are not reported in the governmental fund financial statements. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Land, easements, and construction in progress are not depreciated. The other classes of capital assets are depreciated using the straight-line method over the following estimated useful lives: Buildings 20-50 years Improvements other than buildings 20-50 years Machinery and equipment 5-20 years Infrastructure 30 years Collection/distribution systems 50 years N. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, statements of financial position or balance sheets may report separate financial statement elements called deferred outflows or inflows of resources. These separate financial statement elements represent a consumption or acquisition of net 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. Deferred outflows and inflows of resources related to pension and other postemployment benefits(OPEB) plans are reported in the government-wide and enterprise funds Statement of Net Position. These deferred outflows and inflows result from differences between expected and actual experience, changes in proportion, changes of assumptions, differences between projected and actual earnings on plan investments, and from contributions to the plans subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under applicable pension or OPEB standards. Unavailable revenue arises only under a modified accrual basis of accounting and, therefore, is only reported in the governmental funds Balance Sheet. The governmental funds report unavailable revenue from two sources: property taxes and special assessments. These amounts are deferred and recognized as inflows of resources in the period that the amounts become available. O. Long-Term Obligations In the government-wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using the straight-line method. -38- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. P. Compensated Absences It is the City's policy to permit employees to accumulate earned, but unused leave benefits as either paid time off(PTO), or vacation and sick leave. Under the City's personnel policies and collective bargaining contracts, city employees are granted leave benefits in varying amounts based on length of service. No liability is recorded for nonvesting accumulating rights to receive sick leave benefits. As benefits accrue to employees,the accumulated PTO,vacation,and vested sick leave is reported as expense and liability in the government-wide and proprietary fund financial statements. Accrued PTO, vacation, and any portion of sick leave payable to employees upon termination are reported as expenditures in the governmental fund that will pay them when they become due and payable. Q. State-Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA's fiduciary net position have been determined on the same basis as they are reported by the PERA, except that the PERA's fiscal year-end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments, and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The PERA has a special funding situation created by a direct aid contribution made by the state of Minnesota. The direct aid is a result of the merger of the Minneapolis Employees Retirement Fund into the PERA on January 1,2015. R. Risk Management The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for risks of loss, including workers' compensation, property and general liability, and employee health and accident insurance. The City retains risk for the deductible portions of the insurance policies. The amount of these deductibles is considered immaterial to the financial statements. Property and Casualty Insurance — Property and casualty insurance is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a common risk management and insurance program for Minnesota cities: general liability, excess liability, property, automobile,marine, crime,federal laws, employee dishonesty,boiler,petro fund, and open meeting law. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through member premiums and will reinsure through commercial companies for excess claims. The LMCIT allows the pool to make additional assessments to make the pool self-sustaining. Current state statutes(Minnesota Statutes, Subd. 466.04)provide limits of liability for the City.These limits are that the combination of defense expense and indemnification expense shall not exceed $500,000 in the case of one claimant or $1,500,000 for any number of claims arising out of a single occurrence. The City retains risk for the deductible portion of its insurance policies and any potential judicial ruling in excess of the statutory maximum. The City has never had a claim in excess of the statutory maximum. -39- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. Workers' Compensation Insurance — Workers' compensation coverage is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments as deemed necessary by the LMCIT. The LMCIT reinsures through the Workers' Compensation Reinsurance Association as required by law. The City's premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial, and is not recorded until received or paid. S. Net Position and Flow Assumptions In the government-wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position is displayed in three components: • Net Investment in Capital Assets— Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. • 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 elements of net position that do not meet the definition of "restricted"or"net investment in capital assets." The City applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. T. Fund Balance Classifications and Flow Assumptions In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent.These classifications are as follows: • Nonspendable — Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. • Restricted — Consists of amounts related to externally imposed constraints established by creditors,grantors, or contributors; or constraints imposed by state statutory provisions. • Committed—Consists of internally imposed constraints that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. • Assigned — Consists of internally imposed constraints for amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. These constraints are established by the City Council and/or management. The City Council has adopted a fund balance policy, which delegates the authority to assign amounts for specific purposes to the city administrator and/or finance director. • Unassigned — The residual classification for the General Fund, which also reflects negative residual amounts in other funds. -40- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) When both restricted and unrestricted resources are available for use, the City first uses restricted resources,then unrestricted resources as needed. When committed, assigned, or unassigned resources are available for use, the City uses resources in the following order: 1)committed,2)assigned,and 3)unassigned. U. Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the amounts reported in the financial statements during the reporting period. Actual results could differ from those estimates. V. Change in Accounting Principle During the year ended December 31, 2019, the City adopted new accounting guidance by implementing the provisions of GASB Statement No. 84, Fiduciary Activities, which establishes new criteria for identifying and reporting fiduciary activities. The implementation of this statement resulted in changing the presentation of the financial statements by accounting for the use of certain own-source revenues in the City's Private Capital Projects Fund and its governmental activities,rather than in a fiduciary(agency) fund as it has in the past. This change in accounting principle did not require the restatement of beginning net position or fund balances. NOTE 2—DEPOSITS AND INVESTMENTS A. Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits $ 6,354,686 Investments 28,197,039 Petty cash 4,442 Total $ 34,556,167 Cash and investments are included on the basic financial statements as follows: Primary government Statement of Net Position Cash and investments $ 31,774,253 Restricted assets—temporarily restricted Cash for future drinking water treatment plant 2,461,488 Component unit Statement of Net Position Cash and investments 320,426 Total $ 34,556,167 -41- NOTE 2—DEPOSITS AND INVESTMENTS(CONTINUED) B. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council, including checking and savings accounts. 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 110 percent of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated"A"or better; revenue obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The City has no additional deposit policies addressing custodial credit risk. At year-end, the carrying amount of the City's deposits was $6,354,686, while the balance on the bank records was $6,286,312. At December 31, 2019, all deposits were fully covered by federal deposit insurance, surety bonds, or by collateral held 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—Maturity Duration in Years Investment Type Rating Agency Using Less Than 1 1 to 5 6 to 10 Greater Than 10 Total U.S.agency securities AA S&P Level 2 $ 401,200 $ — $ 249,915 $ 471,974 $ 1,123,089 Municipal bonds AAA S&P Level 250,073 212,708 — — 462,781 Municipal bonds AA Moody's Level — 406,916 — — 406,916 Municipal bonds AA S&P Level — 361,115 — — 361,115 Municipal bonds Baa Moody's Level 2 — 348,627 — — 348,627 Negotiable certificates of deposit Not rated Level 2 4,844,441 15,093,443 1,242,897 — 21,180,781 $ 5,495,714 $ 16,422,809 $ 1,492,812 $ 471,974 23,883,309 Investment pools/mutual funds Western Asset Institutional Government Reserves AAA S&P Level 1 4,313,730 Total investments $ 28,197,039 -42- NOTE 2—DEPOSITS AND INVESTMENTS(CONTINUED) Investments are subject to various risks,the following of which are considered the most significant: Custodial Credit Risk — For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policies do not further address this risk. Credit Risk—This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the City's investments to direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less;general obligations rated"A"or better;revenue obligations rated"AA" or better; general obligations of the Minnesota Housing Finance Agency rated"A" or better; bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank,domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain Minnesota securities broker-dealers. The City's investment policies do not further address credit risk. Concentration Risk— This is the risk associated with investing a significant portion of the City's investments (considered 5.0 percent or more) in the securities of a single issuer, excluding U.S.guaranteed investments (such as treasuries), investment pools, and mutual funds. The City's investment policy places no limit on the amount the City may invest in any one issuer. However, it discusses the need to diversify investments to minimize risk. Interest Rate Risk—This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City's investment policy states the investment portfolio should be structured to meet cash requirements for ongoing operations. The policy limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates,stating that no more than 30 percent of total investments should extend beyond 5 years and none should extend beyond 15 years. The City's year-end investment portfolio maturities comply with this policy. -43- NOTE 3-INTERFUND BALANCES AND TRANSFERS A. Interfund Balances The City had the following interfund balances at year-end: Receivable Fund Payable Fund Purpose Amount Due from/to other funds Governmental Governmental Storm Water Trunk Debt Service Debt financing(1) $ 16,291 Storm Water Trunk Debt Service Debt financing(2) 389,791 Total due from/to other funds $ 406,082 Advances to/from other funds Governmental Governmental Storm Water Trunk Debt Service Debt financing(2) $ 288,922 Storm Water Trunk Debt Service Debt financing(3) 300,000 Total advances to/from other funds $ 588,922 (1)Advance of$509,854 to finance G.O.2010D Bonds.Annual payments through 06/30/2020. 1.8 percent interest. (2)Advance of$1,515,000 to finance G.O.2010A Bonds.Annual payments through 12/30/2021. 1.755 percent interest. (3)Advance of$300,000 to finance G.O.2010C Bonds.Principal due 12/31/2022.2.3 percent interest. B. Interfund Transfers The following transfers were made during the year in accordance with budget appropriations or as approved by City Council resolution to fund administrative overhead costs, fund debt service payments, or close funds: Transfers In Proprietary Governmental Funds Funds Debt Sewer Solid Waste Storm Water Water Internal Transfers Out General Service Maintenance Nonmalor Enterprise Enterprise Enterprise Enterprise Service Total Governmental funds General $ - $240,000 $ 485,571 $ 482,545 $ - $ - $ - $ - $23,022 $1,231,138 Debt Service - 53,648 - - 11,149 16,724 5,575 11,149 - 98,245 Nonmajor - - - 9,789 - - - - - 9,789 Proprietary funds Enterprise Liquor Operations 59,088 - - 75,000 - - - - - 134,088 Sewer Operations 290,424 - 675,673 - - 17,932 - - 2,000 986,029 Solid Waste 141,564 - - - - - - - 3,750 145,314 Storm Water 366,768 - 327,619 - - 18,640 - - 360 713,387 Water 386,412 686,146 32,948 - 1,105,506 Total $1,244,256 $293,648 $ 2,175,009 $ 567,334 $ 11,149 $ 86,244 $ 5,575 $ 11,149 $29,132 $4,423,496 -44- NOTE 4—CAPITAL ASSETS Capital asset activity for the year ended December 31,2019 was as follows: A. Changes in Capital Assets Used in Governmental Activities Transfers and Beginning Completed Ending Balance Additions Deletions Construction Balance Capital assets,not depreciated Land $ 1,441,957 $ — $ — $ — $ 1,441,957 Easements 307,867 — — — 307,867 Construction in progress — 2,937,358 — (2,937,358) — Total capital assets,not depreciated 1,749,824 2,937,358 — (2,937,358) 1,749,824 Capital assets,depreciated Buildings 21,270,667 68,864 — — 21,339,531 Improvements other than buildings 1,654,912 94,900 — — 1,749,812 Machinery and equipment 6,364,688 472,618 (94,575) — 6,742,731 Infrastructure 57,802,186 — (212,002) 913,184 58,503,368 Total capital assets,depreciated 87,092,453 636,382 (306,577) 913,184 88,335,442 Less accumulated depreciation on Buildings 6,300,358 434,787 — — 6,735,145 Improvements other than buildings 1,329,067 51,063 — — 1,380,130 Machinery and equipment 4,446,375 334,210 (94,576) — 4,686,009 Infrastructure 28,582,493 11299,292 (210,280) — 29,671,505 Total accumulated depreciation 40,658,293 2,119,352 (304,856) — 42,472,789 Total capital assets,depreciated 46,434,160 (1,482,970) (1,721) 913,184 45,862,653 Net capital assets $ 48,183,984 $ 1,454,388 $ (1,721) $ (2,024,174) $ 47,612,477 B. Changes in Capital Assets Used in Business-Type Activities Transfers and Beginning Completed Ending Balance Additions Deletions Construction Balance Capital assets,not depreciated Land $ 414,576 $ 83,800 $ — $ — $ 498,376 Construction in progress 152,260 3,325,351 — (3,477,611) — Total capital assets,not depreciated 566,836 3,409,151 — (3,477,611) 498,376 Capital assets,depreciated Buildings 3,243,203 — — 1,942,793 5,185,996 Improvements other than buildings 121,012 — — 1,534,818 1,655,830 Machinery and equipment 3,347,616 305,249 (219,309) — 3,433,556 Collection/distribution systems 81,196,072 — (235,582) 2,024,174 82,984,664 Total capital assets,depreciated 87,907,903 305,249 (454,891) 5,501,785 93,260,046 Less accumulated depreciation on Buildings 3,243,203 97,352 — — 3,340,555 Improvements other than buildings 121,012 38,455 — — 159,467 Machinery and equipment 2,439,752 164,519 (219,309) — 2,384,962 Collection/distribution systems 31,923,293 1,665,524 (204,011) — 33,384,806 Total accumulated depreciation 37,727,260 1,965,850 (423,320) — 39,269,790 Total capital assets,depreciated 50,180,643 (1,660,601) (31,571) 5,501,785 53,990,256 Net capital assets $ 50,747,479 $ 1,748,550 $ (31,571) $ 2,024,174 $ 54,488,632 -45- NOTE 4—CAPITAL ASSETS(CONTINUED) C. Depreciation Expense by Function Depreciation expense was charged to the following functions: Governmental activities General government $ 191,540 Public safety 320,204 Public works 1,458,429 Parks and recreation 149,179 Total depreciation expense—governmental activities $ 2,119,352 Business-type activities Liquor operations $ 1,278 Sewer operations 613,562 Solid waste 75,916 Storm water 438,000 Water 837,094 Total depreciation expense—business-type activities $ 1,965,850 NOTE 5—OPERATING LEASES PAYABLE The City has two retail liquor stores known colloquially as Downtown and Pilot Knob. The Downtown store consists of 6,250 square feet of space in the City Center. In 2017,the City approved a two-year lease extension at a monthly rent of$8,594 plus a proportionate share of common area operating expenses. In January 2019, the City exercised their option to extend the lease one additional year at a monthly rate of $9,115 plus a proportionate share of common area operating expenses. In 2019,the City paid$105,729 in rent for the Downtown store and$39,360 for common area operating expenses. The Pilot Knob location occupies a 4,758-square foot store in the Farmington Gateway Center. In March 2016, the City renewed an existing lease for a three-year term at a monthly cost of$6,344 plus a proportionate share of common area operating expenses. In September 2019,the City exercised its option to renew for an additional three-year term at the original rate. The City paid $76,128 in rent for the Pilot Knob store and$41,395 for common area operating expenses during 2019. The following is a schedule by year of future minimum payments required under the leases: Year Ending December 31, Amount 2020 $ 139,930 2021 76,128 2022 69,784 $ 285,842 -46- NOTE 6-LONG-TERM DEBT A. Components of Long-Term Debt Final Original Interest Issue Maturity Balance- Issue Rate Date Date End of Year Governmental activities General obligation improvement bonds G.O.Improvement Refunding Bonds 2013A $ 5,365,000 2.00% 01/15/2013 02/01/2022 $ 1,955,000 G.O.Street Reconstruction Bonds 2013B $ 1,495,000 0.45-1.95% 10/09/2013 02/01/2020 410,000 G.O.Street Reconstruction Bonds 2015A $ 3,050,000 2.00-3.00% 10/15/2015 02/01/2030 2,445,000 G.O.Improvement Refunding Bonds 2016A $ 3,450,000 2.00% 12/01/2016 02/01/2023 2,400,000 G.O.Street Reconstruction Bonds 2019A $ 925,000 5.00% 05/15/2019 02/01/2024 925,000 Total G.O.improvement bonds 8,135,000 General obligation capital improvement bonds G.O.Capital Improvement Refunding Bonds 2016B $ 4,540,000 2.00-3.00% 12/01/2016 02/01/2028 4,540,000 G.O.Capital Improvement Refunding Bonds 2016C $ 1,630,000 2.00% 12/01/2016 02/01/2020 545,000 Total G.O.capital improvement bonds 5,085,000 Total governmental activities bonds 13,220,000 Unamortized premiums 532,060 Compensated absences 972,240 Total governmental activities $14,724,300 Business-type activities General obligation revenue bonds G.O.Water Revenue Bonds 2019A $ 720,000 4.00-5.00% 05/15/2019 02/01/2029 $ 720,000 Unamortized premiums 90,856 Compensated absences 107,576 Total business-type activities $ 918,432 B. Changes in Long-Term Debt Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities G.O.improvement bonds $ 9,115,000 $ 925,000 $ 1,905,000 $ 8,135,000 $ 2,365,000 G.O.capital improvement bonds 5,615,000 - 530,000 5,085,000 545,000 Unamortized bond premiums 551,475 84,555 103,970 532,060 - Compensated absences 959,399 640,370 627,529 972,240 729,181 Total governmental activities 16,240,874 1,649,925 3,166,499 14,724,300 3,639,181 Business-type activities G.O.revenue bonds - 720,000 - 720,000 65,000 Unamortized bond premiums - 96,638 5,782 90,856 - Compensated absences 105,825 58,691 56,940 107,576 80,683 Total business-type activities 105,825 875,329 62,722 918,432 145,683 Total government-wide $ 16,346,699 $ 2,525,254 $ 3,229,221 $ 15,642,732 $ 3,784,864 -47- NOTE 6-LONG-TERM DEBT(CONTINUED) C. Minimum Debt Payments Minimum annual payments required to retire bonds are as follows: Governmental Activities Year Ending G.O.Improvement G.O.Capital Improvement Total December 31, Principal Interest Principal Interest Principal Interest 2020 $ 2,365,000 $ 189,361 $ 545,000 $ 129,300 $ 2,910,000 $ 318,661 2021 1,650,000 132,550 505,000 116,275 2,155,000 248,825 2022 1,465,000 93,700 525,000 100,825 1,990,000 194,525 2023 870,000 62,275 545,000 84,775 1,415,000 147,050 2024 445,000 40,675 560,000 68,200 1,005,000 108,875 2025-2029 1,265,000 91,381 2,405,000 109,650 3,670,000 201,031 2030 75,000 1,032 - - 75,000 1,032 Total $ 8,135,000 $ 610,974 $ 5,085,000 $ 609,025 $13,220,000 $ 1,219,999 Business-Type Activities Year Ending G.O.Revenue December 31, Principal Interest 2020 $ 65,000 $ 39,916 2021 60,000 29,550 2022 65,000 26,425 2023 65,000 23,175 2024 70,000 19,800 2025-2029 395,000 44,575 Total $ 720,000 $ 183,441 D. Descriptions of Long-Term Debt • General Obligation Bonds - The City issues general obligation bonds to provide funds for the acquisition and construction of major capital improvements or to refinance (refund) previous bond issues. The reporting entity's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. The City is subject to statutory limitation by the state of Minnesota for bonded indebtedness payable principally from property taxes. As of December 31, 2019, the City had not utilized $50,204,079 of its net legal debt margin. • General Obligation Revenue Bonds - The City issues general obligation revenue bonds to finance capital improvements in the enterprise funds. These bonds will be repaid from future net operating revenues pledged from enterprise funds and are backed by the taxing power of the City. • Other Long-Term Liabilities-The City provides its employees with various benefits,including compensated absences,pension benefits,and OPEB as further described elsewhere in these notes. The General,Liquor Operations, and Solid Waste Funds will be used to liquidate these liabilities. -48- NOTE 6—LONG-TERM DEBT(CONTINUED) E. Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: Revenue Pledged Current Year Percent Remaining Principal Pledged Use of of Debt Term of Principal and Interest Revenue Bond Issue Proceeds Type Service Pledge and Interest Paid Received G.O.Water Revenue Bonds 2019A Utility improvements Utility charges 100% 2019-2029 $ 903,441 $ — $ 2,281,793 F. Ultimate Responsibility for Debt All general obligation bonds are backed by the full faith and credit of the City. NOTE 7—DEFINED BENEFIT PENSION PLANS Employees of the City participate in three defined benefit pension plans. Two of the plans are state-wide, cost-sharing, multiple-employer defined benefit pension plans administered by the PERA of Minnesota: the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF). The third is a single-employer defined benefit pension plan administered through the Farmington Fire Fighters' Relief Association (the Association). The details of the City's participation in each of these plans are presented later in these notes. The following table summarizes the impact of these plans on the City's government-wide financial statements: Farmington State-Wide PERA Pension Plans Fire Fighters' Relief Total GERF PEPFF Total Association All Plans Net pension asset $ — $ — $ — $ 695,590 $ 695,590 Deferred outflows of resources $ 348,959 $ 2,559,841 $ 2,908,800 $ 617,990 $ 3,526,790 Net pension liability $ 3,389,141 $ 2,534,816 $ 5,923,957 $ — $ 5,923,957 Deferred inflows of resources $ 603,760 $ 3,932,295 $ 4,536,055 $ 188,025 $ 4,724,080 Pension expense $ 414,163 $ 375,115 $ 789,278 $ 318,725 $ 1,108,003 -49- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE A. Plan Descriptions The City participates in the following cost-sharing, multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association (PERA) of Minnesota. The PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Fund(GERF) All full-time and certain part-time employees of the City are covered by the GERF. The GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund(PEPFF) The Public Employees Police and Fire Fund (PEPFF), originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to the PERA. B. Benefits Provided The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statutes and can only be modified by the State Legislature. Vested,terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. 1. GERF Benefits Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for the PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated Plan members is 1.2 percent of average salary for each of the first 10 years of service, and 1.7 percent of average salary for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7 percent of average salary for all years of service.For members hired prior to July 1, 1989,a full annuity is available when age plus years of service equal 90, and normal retirement age is 65. For members hired on or after July 1, 1989,normal retirement age is the age for unreduced Social Security benefits capped at age 66. -50- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the post-retirement increase will be equal to 50.0 percent of the cost of living adjustment(COLA) announced by the Social Security Administration, with a minimum increase of at least 1.0 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of June 30 before the effective date of the increase, will receive the full increase. For recipients receiving the annuity or benefit for at least one month, but less than a full year as of the June 30 before the effective date of the increase, will receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010 but before July 1,2014, vest on a prorated basis from 50 percent after five years, up to 100 percent after 10 years of credited service. Benefits for the PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50 percent after 10 years, up to 100 percent after 20 years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989,when age plus years of service equal at least 90. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1,2019,the post-retirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase,will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months, but less than 36 months as of the June 30 before the effective date of the increase,will receive a reduced prorated increase. C. Contributions Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the State Legislature. 1. GERF Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2019. The City was required to contribute 7.50 percent for Coordinated Plan members. The City's contributions to the GERF for the year ended December 31, 2019, were $340,100. The City's contributions were equal to the required contributions as set by state statutes. 2. PEPFF Contributions Police and fire member's contribution rates increased from 10.80 percent of pay to 11.30 percent and employer rates increased from 16.20 percent to 16.95 percent on January 1, 2019. The City's contributions to the PEPFF for the year ended December 31, 2019, were $442,727. The City's contributions were equal to the required contributions as set by state statutes. -51- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) D. Pension Costs 1. GERF Pension Costs At December 31, 2019, the City reported a liability of$3,389,141 for its proportionate share of the GERF's net pension liability. The net pension liability was measured as of June 30,2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2018 through June 30, 2019, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.0613 percent at the end of the measurement period and 0.0607 percent for the beginning of the period. The City's net pension liability reflected a reduction, due to the state of Minnesota's contribution of $16 million to the fund in 2019. The state of Minnesota is considered a nonemployer contributing entity and the state's contribution meets the definition of a special funding situation. The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net pension liability that was associated with the City were as follows: City's proportionate share of the net pension liability $ 3,389,141 State's proportionate share of the net pension liability associated with the City $ 105,329 For the year ended December 31, 2019, the City recognized pension expense of$406,275 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $7,888 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota's contribution of$16 million to the GERF. At December 31, 2019,the City reported its proportionate share of the GERF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience $ 92,777 $ — Changes in actuarial assumptions — 262,188 Differences between projected and actual investment earnings — 341,572 Changes in proportion 85,302 — Contributions paid to the PERA subsequent to the measurement date 170,880 — Total $ 348,959 $ 603,760 -52- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) A total of$170,880 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2020 $ (129,197) 2021 $ (243,114) 2022 $ (58,832) 2023 $ 5,462 2. PEPFF Pension Costs At December 31, 2019, the City reported a liability of$2,534,816 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2018 through June 30, 2019, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.2381 percent at the end of the measurement period and 0.2300 percent for the beginning of the period. For the year ended December 31, 2019, the City recognized pension expense of$342,972 for its proportionate share of the PEPFF's pension expense. The City also recognized $32,143 for the year ended December 31,2019, as revenue and an offsetting reduction of net pension liability for its proportionate share of the state of Minnesota's on-behalf contributions to the PEPFF. Legislation passed in 2013 required the state of Minnesota to begin contributing$9 million to the PEPFF each year until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1,2048,whichever is earlier. At December 31,2019,the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience $ 106,249 $ 394,503 Changes in actuarial assumptions 2,146,781 2,830,858 Differences between projected and actual investment earnings — 508,758 Changes in proportion 71,948 198,176 Contributions paid to the PERA subsequent to the measurement date 234,863 — Total $ 2,559,841 $ 3,932,295 -53- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) A total of$234,863 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2020 $ (194,643) 2021 $ (379,012) 2022 $ (1,042,674) 2023 $ (3,228) 2024 $ 12,240 E. Actuarial Assumptions The total pension liability in the June 30, 2019 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50%per year Active member payroll growth 3.25%per year Investment rate of return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all plans were based on RP-2014 tables for males and females, as appropriate, with slight adjustments to fit the PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for the GERF,and 1.00 percent per year for the PEPFF. Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF was completed in 2019. The most recent four-year experience study for the PEPFF was completed in 2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions. The following changes in actuarial assumptions occurred in 2019: 1. GERF CHANGES IN ACTUARIAL ASSUMPTIONS The mortality projection scale was changed from MP-2017 to MP-2018. CHANGES IN PLAN PROVISIONS • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state's special funding contribution was changed prospectively,requiring$16.0 million due per year through 2031. 2. PEPFF CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. -54- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best-estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Domestic equity 35.5 % 5.10 % Private markets 25.0 5.90 % Fixed income 20.0 0.75 % International equity 17.5 5.90 % Cash equivalents 2.0 — % Total 100.0 % F. Discount Rate The discount rate used to measure the total pension liability in 2019 was 7.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the GERF and the PEPFF were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following table presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph,as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1%Decrease in 1%Increase in Discount Rate Discount Rate Discount Rate 6.50% 7.50% 8.50% City's proportionate share of the GERF net pension liability $ 5,571,563 $ 3,389,141 $ 1,587,115 City's proportionate share of the PEPFF net pension liability $ 5,540,635 $ 2,534,816 $ 49,051 H. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the PERA website at www.mnpera.org; by writing to the PERA at 60 Empire Drive, Suite 200, St.Paul,Minnesota 55103; or by calling(651)296-7460 or(800)652-9026. -55- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION A. Plan Description Volunteer firefighters of the City of Farmington Fire Department (the Department) are members of the Association, which administers a single-employer defined benefit pension plan established to provide benefits for its members. The plan is established and administered in accordance with Minnesota Statutes, Chapter 69. The Association is governed by a Board of nine trustees; six voting trustees elected by the members of the Association, and the City's mayor, city administrator, and fire chief as ex-officio members. As of December 31, 2018, the plan covered 50 active firefighters and 9 vested terminated firefighters whose pension benefits are deferred. The Association maintains a separate Special Fund to accumulate assets to fund the retirement benefits earned by the Department's membership. B. Benefits Provided A firefighter who completes at least 20 years as an active member of the Department is entitled, after age 50,to a full service pension upon retirement. The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60 percent of the pension as described by the bylaws. This percentage increases 4 percent per year so that at 20 years of service, the full amount prescribed is paid. Members who retire with less than 20 years of service and have reached the age of 50 and have completed at least 10 years of active membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member's service pension for the completed years of service times the applicable nonforfeitable percentage of pension. C. Contributions Minnesota Statutes, Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is funded by fire state aid, investment earnings, and, if necessary, employer contributions as specified in Minnesota Statutes and voluntary city contributions (if applicable). The firefighters have no obligation to contribute to the plan.Nonemployer pension contributions include state aid from the state of Minnesota and municipal contributions from the City. On-behalf of state aid payments from the state of Minnesota are received initially by the City and subsequently remitted to the Association. These on-behalf of state aid payments in addition to the City's municipal contribution payments to the Association plan are recognized as revenues and expenditures in the City's General Fund during the period received. The state of Minnesota contributed $152,797 in fire state aid to the plan on behalf of the Department for the year ended December 31, 2019, which was recorded as revenue. Required employer contributions are calculated annually based on statutory provisions. The City's statutorily-required contributions to the plan for the year ended December 31, 2019 were $0; however, the City made a voluntary contribution of $150,000 to the plan. D. Pension Costs At December 31, 2019,the City reported a net pension liability(asset) of($695,590)for the plan. The net pension liability (asset) was measured as of December 31, 2018. The total pension liability used to calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by applying an actuarial formula to specific census data certified by the Department as of December 31, 2018. -56- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION (CONTINUED) The following table presents the changes in net pension liability(asset)during the year: Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) (a) (b) (a-b) Beginning balance—January 1,2019 $ 1,587,454 $ 2,631,318 $ (1,043,864) Changes for the year Service cost 112,754 — 112,754 Interest 105,418 — 105,418 Differences between expected and actual experience (13,870) — (13,870) Changes of assumptions 86,336 — 86,336 Changes of benefit terms 169,797 — 169,797 Contributions(state and local) — 297,548 (297,548) Net investment income — (168,667) 168,667 Benefit payments (156,771) (156,771) — Administrative costs — (16,720) 16,720 Total net changes 303,664 (44,610) 348,274 Ending balance—December 31,2019 $ 1,891,118 $ 2,586,708 $ (695,590) For the year ended December 31, 2019, the City recognized pension revenue of$150,548 and pension expense of$318,725. At December 31,2019,the City reported deferred inflows of resources and deferred outflows of resources related to pension from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference between expected and actual liability $ — $ 23,555 Change of assumptions 153,405 11,673 Net difference between projected and actual earnings on plan investments 161,788 — City contributions subsequent to the measurement date 150,000 — State aid to the City subsequent to the measurement date 152,797 152,797 Total $ 617,990 $ 188,025 -57- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION (CONTINUED) Deferred outflows of resources totaling$302,797 related to pensions resulting from city contributions to the plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2020. Deferred inflows of resources totaling $152,797 related to state aid received subsequent to the measurement date will be recognized for its impact on the net pension liability in the year ending December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to the plan will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2020 $ 65,023 2021 $ 31,524 2022 $ 40,303 2023 $ 80,718 2024 $ 13,945 Thereafter $ 48,452 E. Actuarial Assumptions The total pension liability at December 31,2018 was determined using the entry-age normal actuarial cost method and the following actuarial assumptions: Retirement eligibility at 100 percent service pension at age 50 with 20 years of service,early vested retirement at age 50 with 10 years of service vested at 60 percent and increased by 4 percent for each additional year of service up to 20 and eligibility for deferred service pension payable at age 50 with 20 years of service Inflation rate 2.50%per year Investment rate of return 5.75% 20-year municipal bond yield 3.71% For the December 31, 2018 valuation, the plan benefit per year of service increased from $6,500 to $7,500. The changes in actuarial assumptions since the prior valuation included: • The assumed investment return and single discount rate were changed from 6.50 percent to 5.75 percent. • The inflation rate was changed from 2.75 percent to 2.50 percent. • The mortality and withdrawal assumptions were updated from the rates used in the July 1, 2017 Minnesota PERA Police and Fire Plan actuarial valuation to the rates used in the July 1, 2018 Minnesota PERA Police and Fire Plan actuarial valuation. The 5.75 percent long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class using the plan's target investment allocation, along with long-term return expectations by asset class. Inflation expectations were applied to derive the nominal rate of return for the portfolio. -58- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION (CONTINUED) The target allocation and best-estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-Term Long-Term Target Expected Real Expected Nominal Asset Class Allocation Rate of Return Rate of Return Domestic equity 49.43 % 4.95 % 7.45 % International equity 14.54 5.24 % 7.74 % Fixed income 20.52 1.99 % 4.49 % Real estate and alternatives 0.71 4.19 % 6.69 % Cash and equivalents 14.80 0.58 % 3.08 % Total 100.00 % 5.75 % F. Discount Rate The discount rate used to measure the total pension liability was 5.75 percent. The projection of cash flows used to determine the discount rate assumed that contributions to the plan will be made as specified in state statutes. Based on that assumption and considering the funding ratio of the plan,the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability(Asset)Sensitivity The following presents the City's net pension liability (asset) for the plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's net pension liability (asset)would be if it were calculated using a discount rate 1 percent lower or 1 percent higher than the current discount rate: 1%Decrease Current 1%Increase (4.75%) (5.75%) (6.75%) Net pension liability(asset) $ (576,293) $ (695,590) $ (807,733) H. Pension Plan Fiduciary Net Position The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Farmington Fire Fighters' Relief Association,430 Third Street,Farmington,Minnesota 55024, or by calling(651)280-6953. -59- NOTE 10—OTHER POST-EMPLOYMENT BENEFITS(OPEB)PLAN A. Plan Description The City provides post-employment insurance benefits to certain eligible employees through its OPEB Plan, a single-employer defined benefit plan administered by the City. All post-employment benefits are based on contractual agreements with employee groups. Eligibility for these benefits is based on years of service and/or minimum age requirements. These contractual agreements do not include any specific contribution or funding requirements. The Plan does not issue a publicly available financial report. No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. B. Benefits Provided All retirees of the City upon retirement have the option under state law to continue their medical insurance coverage through the City. For members of certain employee groups, the City pays for all or part of the eligible retiree's premiums for medical and/or dental insurance from the time of retirement until the employee reaches the age of eligibility for Medicare. Benefits paid by the City differ by bargaining unit and date of hire, with some contracts specifying a certain dollar amount per month, and some covering premium costs as defined within each collective bargaining agreement. Retirees not eligible for these city-paid premium benefits must pay the full city premium rate for their coverage. The City is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees until the retiree reaches Medicare eligibility, whether the premiums are paid by the City or the retiree. Consequently,participating retirees are considered to receive a secondary benefit known as an "implicit rate subsidy." This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City's younger and statistically healthier active employees. For police officers or firefighters disabled in the line-of-duty, Minnesota Statutes require the City to continue payment of the employer's contribution toward health coverage for the police officer or firefighter and their spouse, if the spouse was covered at the time of disability, until age 65. C. Contributions The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined periodically by the City. The City's current year required pay-as-you-go contributions to finance the benefits described in the previous section totaled$50,443. D. Membership Membership in the plan consisted of the following as of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 6 Active plan members 64 Total members 70 E. Total OPEB Liability of the City The City's total OPEB liability of$1,140,790 as of year-end was measured as of December 31,2018, and was determined by an actuarial valuation as of January 1,2018. -60- NOTE 10—OTHER POST-EMPLOYMENT BENEFITS(OPEB)PLAN(CONTINUED) F. Actuarial Methods and Assumptions The total OPEB liability was determined using the entry-age normal cost method and the following actuarial assumptions,applied to all periods included in the measurement,unless otherwise specified: Discount rate 4.09% 20-year municipal bond yield 4.09% Inflation rate 2.50% Salary increases 3.50% Healthcare trend rate 8.00%grading to 5.00%over 9 years The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities for Minnesota city employees. The state pension plans base their assumptions on periodic experience studies. Economic assumptions are based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. Since the Plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond yield rate of 4.09 percent, which was set by considering published rate information for 20-year high quality, tax-exempt, general obligation municipal bonds as of the measurement date. The City discount rate used in the prior measurement date was 3.44 percent. Mortality rates were based on the RP-2014 Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2015 from a base year of 2014 (using projection scale MP-2016 from a base year of 2006 for police and fire personnel). Future retirees electing coverage is assumed to be 65 percent. Married future retirees electing spouse coverage is assumed to be 40 percent(60 percent for police and fire personnel). G. Changes in the Total OPEB Liability Total OPEB Liability Beginning balance—January 1,2019 $ 1,112,324 Changes for the year Service cost 85,451 Interest 40,509 Changes of assumptions (57,133) Benefit payments—employer-financed (40,361) Total net changes 28,466 Ending balance—December 31,2019 $ 1,140,790 -61- NOTE 10—OTHER POST-EMPLOYMENT BENEFITS(OPEB)PLAN(CONTINUED) H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: I%Decrease in Discount 1%Increase in Discount Rate Rate Discount Rate OPEB discount rate 3.09% 4.09% 5.09% Total OPEB liability $ 1,229,620 $ 1,140,790 $ 1,057,523 The following presents the net OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates: 1%Decrease in Healthcare Trend 1%Increase in Healthcare Trend Rate Rate Healthcare Trend Rate OPEB healthcare trend rate 7.00%decreasing to 8.00%decreasing to 9.00%decreasing to 4.00%over 9 years 5.00%over 9 years 6.00%over 9 years Total OPEB liability $ 1,006,265 $ 1,140,790 $ 1,299,980 I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources For the current year, the City recognized OPEB expense of$122,846. As of year-end, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Changes of assumptions $ 22,216 $ 50,948 Contributions subsequent to the measurement date 50,443 — $ 72,659 $ 50,948 Deferred outflows of resources reported $50,443 related to OPEB resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ending December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: OPEB Year Ending Expense December 31, Amount 2020 $ (3,115) 2021 $ (3,115) 2022 $ (3,115) 2023 $ (3,115) 2024 $ (3,115) Thereafter $ (13,157) -62- NOTE 11-FUND BALANCES A. Classifications At December 31,2019,the City had the following governmental fund balances: Capital Projects- Debt State Aid Storm Water General Service Construction Trunk PIR Maintenance Private Nonmajor Total Nonspendable Prepaid items $ 8,422 $ - $ - $ - $ - $ - $ - $ - $ 8,422 Loan 101,101 101,101 Total nonspendable 109,523 - - - - - - - 109,523 Restricted Debt service - 2,776,623 - - - - - - 2,776,623 Police programs - - - - - - - 20,392 20,392 Park improvements - - - - - - - 205,862 205,862 PEG fees - - - - - - - 170,838 170,838 Recreational capital projects - - - - - - - 22,499 22,499 Total restricted - 2,776,623 - - - - - 419,591 3,196,214 Committed Street construction - - 127,578 - - - - - 127,578 Storm water trunk - - - 3,469,379 - - - - 3,469,379 Improvement projects - - - - 174,912 - 76,334 70,636 321,882 Park improvements - - - - - - - 88,789 88,789 Ice arena capital - - - - - - - 69,672 69,672 Sanitary sewer trunk - - - - - - - 431,105 431,105 Cable communications - - - - - - - 811,701 811,701 Fire capital programs - - - - - - - 149,311 149,311 Pavement management - - - - - 867,109 - - 867,109 Capital equipment - - - - - 961,577 961,577 Total committed - - 127,578 3,469,379 174,912 867,109 76,334 2,582,791 7,298,103 Unassigned 5,761,747 - - - - - - - 5,761,747 Total $ 5,871,270 $ 2,776,623 $ 127,578 $3,469,379 $174,912 $ 867,109 $ 76,334 $3,002,382 $16,365,587 B. Minimum Fund Balance Policy The City's policy is to maintain an unassigned fund balance in the General Fund in the range of 40.0-50.0 percent of the subsequent year's budgeted expenditures and transfers out. At December 31, 2019, the unassigned fund balance of the General Fund was 42.2 percent of the subsequent year's budgeted expenditures and transfers out. NOTE 12-OPERATING LEASE RECEIVABLE In 2018, the City entered into an agreement to lease space in City Hall to the U.S. Department of Agriculture (USDA) for a 20-year term, commencing October 1, 2018. The USDA may cancel the lease any time after the end of the first year of the lease term, with 120-days prior written notice. The USDA is required to make monthly rental payments for the space rental and operating costs that total $16,394 annually for years 1-10 of the agreement, and $19,575 annually for years 11-20 of the agreement. The City received rental payments totaling$16,394 under this agreement during 2019. As part of this agreement, the City made improvements to the space in accordance with USDA specifications with a total cost of$113,500. The USDA will reimburse the City for the full cost of these improvements through noncancelable monthly payments totaling$13,152 annually over a 10-year period, with 3.0 percent interest. The outstanding principle due on this agreement at December 31, 2019 of $101,101 is reported as a loan receivable in the City's General Fund. -63- NOTE 13—COMMITMENTS AND CONTINGENCIES A. Federal and State Funding Amounts recorded or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time, although the City expects such amounts, if any,to be immaterial. B. Legal Claims The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although the outcome of these lawsuits is not presently determinable, the City's management believes that the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City's financial statements relating to these claims. C. Tax Increment Districts The City's tax increment districts are subject to review by the Minnesota Office of the State Auditor. Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that it's not aware of any instances of noncompliance, which would have a material effect on the financial statements. D. Construction Commitments The City is committed to various construction contracts for the improvement of City property. At December 31, 2019,the City's remaining commitment under these contracts is approximately$157,665. NOTE 14—TAX INCREMENT PAY-AS-YOU-GO FINANCING REVENUE NOTES On November 2, 2017, the EDA entered into a private development agreement regarding the Trident Housing tax increment property.Reimbursements to the developer(Legacy Partners of Farmington,LLC) for the Downtown Redevelopment Project were contemplated in the development agreement. The vehicle used for this reimbursement is called a tax increment revenue note. This note provides for the payment of principal, equal to the developer's costs, plus interest at 3 percent. Payments on the loan will be made at the lesser of the note payment or 90 percent of the actual net tax increment received during specific years as stated in the agreement. Payments are first applied to accrued interest and then to principal balances. The note is cancelled at the end of the agreement term,whether or not it has been repaid. Any additional tax increments received in the years following the term are retained by the EDA. The City rebated$131,589 of property tax increment in the current year. The remaining principal balance as of December 31, 2019 for this agreement was $1,398,267. This amount is not included in long-term debt because of the nature of this note in that repayment is required only if sufficient tax increments are received. The EDA's position is that these are obligations to assign future and uncertain revenue sources and these obligations are not actual debt in-substance. -64- NOTE 15—SUBSEQUENT EVENTS A. Debt Issuance In February 2019,the City approved the sale of$1,105,000 of General Obligation Equipment Certificates, Series 2020A. The certificates bear an interest rate of 5.0 percent and have a final maturity of February 1, 2026. B. COVID-19 Shortly after the 2019 fiscal year-end, the worldwide spread of the novel coronavirus (COVID-19) has caused significant volatility in the economy and financial markets. There is significant uncertainty about the breadth and duration of potential business disruptions related to COVID-19, and its economic impact in the U.S. and around the world. At this time,the City is unable to determine what effect this may have on its future financial condition and operations. -65- REQUIRED SUPPLEMENTARY INFORMATION CITY OF FARMINGTON PERA—General Employees Retirement Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability Year Ended December 31,2019 Proportionate Share of the City's Net Pension Proportionate Liability and City's Share of the the City's Proportionate Plan Fiduciary State of Share of the Share of the Net Position City's City's Minnesota's State of Net Pension as a PERA Fiscal Proportion Proportionate Proportionate Minnesota's Liability as a Percentage Year-End Date of the Net Share of the Share of the Share of the City's Percentage of of the Total City Fiscal (Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension Year-End Date Date) Liability Liability Liability Liability Payroll Payroll Liability 12/31/2015 06/30/2015 0.0623% $ 3,228,709 $ — $ 3,228,709 $ 3,660,794 88.20% 78.20% 12/31/2016 06/30/2016 0.0583% $ 4,733,671 $ 61,864 $ 4,795,535 $ 3,618,268 130.83% 68.90% 12/31/2017 06/30/2017 0.0597% $ 3,811,209 $ 47,942 $ 3,859,151 $ 3,847,797 99.05% 75.90% 12/31/2018 06/30/2018 0.0607% $ 3,367,387 $ 110,472 $ 3,477,859 $ 4,034,230 83.47% 79.50% 12/31/2019 06/30/2019 0.0613% $ 3,389,141 $ 105,329 $ 3,494,470 $ 4,340,798 78.08% 80.20% PERA—General Employees Retirement Fund Schedule of City Contributions Year Ended December 31,2019 Contributions Contributions in Relation to as a Statutorily the Statutorily Contribution Percentage City Fiscal Required Required Deficiency Covered of Covered Year-End Date Contributions Contributions (Excess) Payroll Payroll 12/31/2015 $ 271,726 $ 271,726 $ — $ 3,623,009 7.50% 12/31/2016 $ 279,774 $ 279,774 $ — $ 3,730,581 7.50% 12/31/2017 $ 290,225 $ 290,225 $ — $ 3,872,895 7.49% 12/31/2018 $ 312,863 $ 312,863 $ — $ 4,171,664 7.50% 12/31/2019 $ 340,100 $ 340,100 $ — $ 4,534,664 7.50% Note: The City implemented GASB Statement No.68 in fiscal 2015(using a June 30,2015 measurement date).This schedule is intended to present 10-year trend information.Additional years will be added as they become available. -66- CITY OF FARMINGTON PERA—Public Employees Police and Fire Fund Schedule of City's Proportionate Share of Net Pension Liability Year Ended December 31,2019 City's Proportionate Plan Fiduciary Share of the Net Position City's City's Net Pension as a PERA Fiscal Proportion Proportionate Liability as a Percentage Year-End Date of the Net Share of the City's Percentage of of the Total City Fiscal (Measurement Pension Net Pension Covered Covered Pension Year-End Date Date) Liability Liability Payroll Payroll Liability 12/31/2015 06/30/2015 0.2450% $ 2,783,773 $ 2,242,616 124.13% 86.60% 12/31/2016 06/30/2016 0.2430% $ 9,752,013 $ 2,344,593 415.94% 63.90% 12/31/2017 06/30/2017 0.2370% $ 3,199,781 $ 2,431,157 131.62% 85.40% 12/31/2018 06/30/2018 0.2300% $ 2,451,563 $ 2,424,781 101.10% 88.80% 12/31/2019 06/30/2019 0.2381% $ 2,534,816 $ 2,513,262 100.86% 89.30% PERA—Public Employees Police and Fire Fund Schedule of City Contributions Year Ended December 31,2019 Contributions Contributions in Relation to as a Statutorily the Statutorily Contribution Percentage City Fiscal Required Required Deficiency Covered of Covered Year-End Date Contributions Contributions (Excess) Payroll Payroll 12/31/2015 $ 374,503 $ 374,503 $ — $ 2,311,741 16.20% 12/31/2016 $ 384,033 $ 384,033 $ — $ 2,370,262 16.20% 12/31/2017 $ 395,621 $ 395,621 $ — $ 2,442,894 16.19% 12/31/2018 $ 396,439 $ 396,439 $ — $ 2,447,155 16.20% 12/31/2019 $ 442,727 $ 442,727 $ — $ 2,611,958 16.95% Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30,2015 measurement date). This schedule is intended to present 10-year trend information. Additional years will be added as they become available. -67- CITY OF FARMINGTON Farmington Fire Fighters'Relief Association Schedule of Changes in the Relief Association's Net Pension Liability(Asset)and Related Ratios City fiscal year-end dated December 31, 2015 2016 2017 2018 2019 Farmington Fire Fighters'Relief Association year-end dated(measurement date)December 31, 2014 2015 2016 2017 2018 Total pension liability Service cost $ 69,285 $ 71,190 $ 86,788 $ 93,501 $ 112,754 Interest 110,249 92,788 82,702 95,308 105,418 Differences between expected and actual experience - - (14,504) - (13,870) Changes of assumptions - 116,780 (15,678) - 86,336 Changes of benefits terms - - 143,662 171,894 169,797 Benefit payments (265,643) (596,137) (1,194) (292,064) (156,771) Net change in total pension liability (86,109) (315,379) 281,776 68,639 303,664 Total pension liability-beginning of year 1,638,527 1,552,418 1,237,039 1,518,815 1,587,454 Total pension liability-end of year $ 1,552,418 $ 1,237,039 $ 1,518,815 $ 1,587,454 $ 1,891,118 Plan fiduciary net position Contributions(state and local) $ 283,461 $ 291,915 $ 291,510 $ 301,508 $ 297,548 Net investment income 84,277 (33,543) 163,457 342,985 (168,667) Benefit payments (265,643) (596,137) (1,194) (292,064) (156,771) Administrative costs (10,848) (15,756) (17,200) (18,282) (16,720) Net change in plan fiduciary net position 91,247 (353,521) 436,573 334,147 (44,610) Plan fiduciary net position-beginning of year 2,122,872 2,214,119 1,860,598 2,297,171 2,631,318 Plan fiduciary net position-end of year $ 2,214,119 $ 1,860,598 $ 2,297,171 $ 2,631,318 $ 2,586,708 Net pension liability(asset)-ending $ (661,701) $ (623,559) $ (778,356) $(1,043,864) $ (695,590) Plan fiduciary net position as a percentage of the total pension liability 142.62% 150.41% 151.25% 165.76% 136.78% Note: The City implemented GASB Statement No.68 in fiscal 2015(using a December 31,2014 measurement date).This information is not available for previous fiscal years. -68- CITY OF FARNIINGTON Farmington Fire Fighters'Relief Association Schedule of City Contributions Contributions in Relation to the Statutorily Statutorily Contribution Voluntary City Fiscal Required Required Deficiency City Year-End Date Contributions(a) Contributions(b) (Excess)(a-b) Contribution 12/31/2015 $ — $ — $ — $ 150,000 12/31/2016 $ — $ — $ — $ 150,000 12/31/2017 $ — $ — $ — $ 150,000 12/31/2018 $ — $ — $ — $ 150,000 12/31/2019 $ - $ — $ — $ 150,000 Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a December 31, 2014 measurement date). This information is not available for previous fiscal years. -69- CITY OF FARMINGTON Other Post-Employment Benefits Plan Schedule of Changes in the City's Total OPEB Liability and Related Ratios 2018 2019 Total OPEB liability Service cost $ 113,275 $ 85,451 Interest 40,190 40,509 Changes of assumptions 28,356 (57,133) Benefit payments (38,891) (40,361) Net change in total OPEB liability 142,930 28,466 Total OPEB liability—beginning of year 969,394 1,112,324 Total OPEB liability—end of year $ 1,112,324 $ 1,140,790 Covered payroll $ 5,800,000 $ 6,000,000 Total OPEB liability as a percentage of covered payroll 19.18% 19.01% Note: The City implemented GASB Statement No. 75 in fiscal 2018. This schedule is intended to present 10-year trend information.Additional years will be added as they become available. -70- CITY OF FARMINGTON Notes to Required Supplementary Information December 31,2019 PERA—GENERAL EMPLOYEES RETIREMENT FUND 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. 2019 CHANGES IN PLAN PROVISIONS • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state's special funding contribution was changed prospectively,requiring$16.0 million due per year through 2031. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.00 percent per year through 2044, and 2.50 percent per year thereafter,to 1.25 percent per year. 2018 CHANGES IN PLAN PROVISIONS • The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,resulting in actuarial equivalence after June 30, 2024. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1,2018. • Deferred augmentation was changed to zero percent,effective January 1,2019.Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Post-retirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent,beginning January 1,2019. • For retirements on or after January 1,2024,the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. -71- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2019 PERA—GENERAL EMPLOYEES RETIREMENT FUND(CONTINUED) 2017 CHANGES IN ACTUARIAL ASSUMPTIONS • The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent for active member liability, 15.00 percent for vested deferred member liability,and 3.00 percent for nonvested deferred member liability. • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years,to 1.00 percent per year through 2044, and 2.50 percent per year thereafter. 2017 CHANGES IN PLAN PROVISIONS • The state's contribution for the Minneapolis Employees Retirement Fund equals$16.0 million in 2017 and 2018, and$6.0 million thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state's contribution changed from$16.0 million to$6.0 million in calendar years 2019 to 2031. 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter,to 1.00 percent per year for all years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. • Other assumptions were changed pursuant to the experience study June 30,2015.The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth, and 2.50 percent for inflation. -72- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2019 PERA—GENERAL EMPLOYEES RETIREMENT FUND(CONTINUED) 2015 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030 and 2.50 percent per year thereafter,to 1.00 percent per year through 2035, and 2.50 percent per year thereafter. 2015 CHANGES IN PLAN PROVISIONS • On January 1,2015,the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892.0 million. Upon consolidation, state and employer contributions were revised; the state's contribution of$6.0 million, which meets the special funding situation definition,was due September 2015. -73- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31,2019 PERA—PUBLIC EMPLOYEES POLICE AND FIRE FUND 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2016 to MP-2017. 2018 CHANGES IN PLAN PROVISIONS • Post-retirement benefit increases were changed to 1.00 percent for all years,with no trigger. • An end date of July 1,2048 was added to the existing$9.0 million state contribution. • New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter,until the plan reaches 100.00 percent funding, or July 1,2048,if earlier. • Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1,2019, and 11.80 percent of pay, effective January 1, 2020. • Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1,2019, and 17.70 percent of pay,effective January 1,2020. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1,2018. • Deferred augmentation was changed to zero percent,effective January 1,2019. Augmentation that has already accrued for deferred members will still apply. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. -74- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2019 PERA—PUBLIC EMPLOYEES POLICE AND FIRE FUND(CONTINUED) 2017 CHANGES IN ACTUARIAL ASSUMPTIONS • Assumed salary increases were changed as recommended in the June 30, 2016 experience study.The net effect is proposed rates that average 0.34 percent lower than the previous rates. • Assumed rates of retirement were changed,resulting in fewer retirements. • The CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has been changed to 33.00 percent for vested members, and 2.00 percent for nonvested members. • The base mortality table for healthy annuitants was changed from the RP-2000 Fully Generational Table to the RP-2014 Fully Generational Table (with a base year of 2006),with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 Disabled Mortality Table to the mortality tables assumed for healthy retirees. • Assumed termination rates were decreased to 3.00 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. • Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older)to the assumption that males are two years older than females. • The assumed percentage of female members electing joint and survivor annuities was increased. • The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years, to 1.00 percent per year through 2064,and 2.50 percent thereafter. • The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum. -75- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31,2019 PERA—PUBLIC EMPLOYEES POLICE AND FIRE FUND(CONTINUED) 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2037,and 2.50 percent per year thereafter,to 1.00 percent per year for all future years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. • The single discount rate changed from 7.90 percent to 5.60 percent. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth,and 2.50 percent for inflation. 2015 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030,and 2.50 percent per year thereafter,to 1.00 percent per year through 2037, and 2.50 percent per year thereafter. 2015 CHANGES IN PLAN PROVISIONS • The post-retirement benefit increase to be paid after attainment of the 90.00 percent funding threshold was changed from inflation up to 2.50 percent,to a fixed rate of 2.50 percent. -76- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31,2019 FARMINGTON FIRE FIGHTERS' RELIEF ASSOCIATION 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The actuarial assumptions for investment rate of return and the single discount rate both changed from 6.50 percent to 5.75 percent. • The inflation rate was changed from 2.75 percent to 2.50 percent. • The mortality and withdrawal assumptions were updated from the rates used in the July 1, 2017 Minnesota PERA Police and Fire Plan actuarial valuation to the rates used in the July 1, 2018 Minnesota PERA Police and Fire Plan actuarial valuation. 2019 CHANGES IN PLAN PROVISIONS • The plan benefit level increased from$6,500 to$7,500 per year of service. 2018 CHANGES IN PLAN PROVISIONS • The plan benefit level increased from$5,500 to$6,500 per year of service. 2017 CHANGES IN PLAN PROVISIONS • The plan benefit level increased from$4,575 to$5,500 per year of service. 2017 CHANGES IN ACTUARIAL ASSUMPTIONS • The actuarial assumptions for investment rate of return and the single discount rate both changed from 6.25 percent to 6.50 percent. 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The actuarial assumptions for the single discount rate changed from 7.00 percent to 6.25 percent. • The retirement rates were updated to graduated rates from 50.00 percent at the later of age 50 or 20 years of service,up to 100.00 percent at the earlier of age 65 or 30 years of service. OTHER POST-EMPLOYMENT BENEFITS PLAN 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The actuarial assumptions for the single discount rate changed from 3.44 percent to 4.09 percent. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS • The actuarial assumptions for the single discount rate changed from 4.50 percent to 3.44 percent. -77- THIS PAGE INTENTIONALLY LEFT BLANK SUPPLEMENTAL INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR GOVERNMENTAL FUNDS The statements that follow are to provide further detail and support additional analysis for the City's nonmajor special revenue and capital projects funds. -78- CITY OF FARMINGTON Nonmajor Governmental Funds Combining Balance Sheet as of December 31,2019 Special Capital Revenue Projects Total Assets Cash and investments $ 344,939 $ 2,655,081 $ 3,000,020 Receivables Accounts 66,318 65,805 132,123 Interest 685 5,051 5,736 Total assets $ 411,942 $ 2,725,937 $ 3,137,879 Liabilities Accounts and contracts payable $ 17,270 $ 108,270 $ 125,540 Deposits payable 9,309 — 9,309 Due to other governments 648 — 648 Total liabilities 27,227 108,270 135,497 Fund balances Restricted 226,254 193,337 419,591 Committed 158,461 2,424,330 2,582,791 Total fund balances 384,715 2,617,667 3,002,382 Total liabilities and fund balances $ 411,942 $ 2,725,937 $ 3,137,879 -79- CITY OF FARMINGTON Nonmajor Governmental Funds Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Year Ended December 31,2019 Special Capital Revenue Projects Total Revenue Franchise taxes $ - $ 142,148 $ 142,148 Intergovernmental 23,367 - 23,367 Charges for services 357,308 52,984 410,292 Investment earnings 15,550 87,901 103,451 Other Donations 10,380 101,571 111,951 Rentals 10,519 - 10,519 Miscellaneous 40,177 10,544 50,721 Total revenues 457,301 395,148 852,449 Expenditures Current General government - 74,417 74,417 Public safety 4,162 2,766 6,928 Parks and recreation 413,845 35,382 449,227 Capital outlay General government - 25,820 25,820 Public safety - 519,120 519,120 Parks and recreation 295,091 15,658 310,749 Total expenditures 713,098 673,163 1,386,261 Excess(deficiency)of revenues over expenditures (255,797) (278,015) (533,812) Other financing sources(uses) Sale of capital assets 3,747 1,219 4,966 Transfers in 84,789 482,545 567,334 Transfers out (9,789) - (9,789) Total other financing sources(uses) 78,747 483,764 562,511 Net change in fund balances (177,050) 205,749 28,699 Fund balances Beginning of year 561,765 2,411,918 2,973,683 End of year $ 384,715 $ 2,617,667 $ 3,002,382 -80- THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR SPECIAL REVENUE FUNDS Nonmajor special revenue funds are used to account for the proceeds of certain specific revenue sources that are restricted or committed to expenditures for specified purposes. Nonmajor special revenue funds presently established are as follows: Police Donations and Forfeitures — Used to account for the operations and activities related to donations and the forfeiture of confiscated property and allows for the expenditure of those revenues for costs related to the public safety of the City. KK=9—Used to account for the operations and activities related to K-9 program donations and allows for the expenditure of those revenues for costs related to the City's K-9 program. Park Improvement—Used to account for the operations and activities related to the collection of park dedication fees and other revenues earmarked for construction and improvement of the City's park and trail system. Arena(Ice)—Used to account for the operation of the City's ice arena; one sheet of indoor ice for use by hockey and figure skating groups,both school and youth organizations supported. -81- CITY OF FARMINGTON Nonmajor Special Revenue Funds Combining Balance Sheet as of December 31,2019 Police Donations Park and Forfeitures K-9 Improvement Arena Total Assets Cash and investments $ 8,237 $ 12,598 $ 294,063 $ 30,041 $ 344,939 Receivables Accounts - - - 66,318 66,318 Interest 16 24 588 57 685 Total assets $ 8,253 $ 12,622 $ 294,651 $ 96,416 $ 411,942 Liabilities Accounts and contracts payable $ 356 $ 127 $ - $ 16,787 $ 17,270 Deposits payable - - - 9,309 9,309 Due to other governments - - - 648 648 Total liabilities 356 127 - 26,744 27,227 Fund balances Restricted for police programs 7,897 12,495 - - 20,392 Restricted for park improvements - - 205,862 - 205,862 Committed for park improvements - - 88,789 - 88,789 Committed for ice arena capital - - - 69,672 69,672 Total fund balances 7,897 12,495 294,651 69,672 384,715 Total liabilities and fund balances $ 8,253 $ 12,622 $ 294,651 $ 96,416 $ 411,942 -82- CITY OF FARMINGTON Nonmajor Special Revenue Funds Combining Statement of Revenues,Expenditures, and Changes in Fund Balances Year Ended December 31,2019 Police Donations Park and Forfeitures K-9 Improvement Arena Total Revenues Intergovernmental $ - $ - $ 23,367 $ - $ 23,367 Charges for services - - - 357,308 357,308 Investment earnings 315 300 13,444 1,491 15,550 Other Donations - 4,780 600 5,000 10,380 Rentals - - 7,773 2,746 10,519 Miscellaneous - - 39,004 1,173 40,177 Total revenues 315 5,080 84,188 367,718 457,301 Expenditures Current Public safety 1,788 2,374 - - 4,162 Parks and recreation - - 35,404 378,441 413,845 Capital outlay Parks and recreation - - 292,695 2,396 295,091 Total expenditures 1,788 2,374 328,099 380,837 713,098 Excess(deficiency)of revenues over expenditures (1,473) 2,706 (243,911) (13,119) (255,797) Other financing sources(uses) Sale of capital assets 3,747 - - - 3,747 Transfers in - 9,789 75,000 - 84,789 Transfers out (9,789) - - - (9,789) Total other financing sources(uses) (6,042) 9,789 75,000 - 78,747 Net change in fund balances (7,515) 12,495 (168,911) (13,119) (177,050) Fund balances Beginning of year 15,412 - 463,562 82,791 561,765 End of year $ 7,897 $ 12,495 $ 294,651 $ 69,672 $ 384,715 -83- THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR CAPITAL PROJECTS FUNDS Nonmajor capital projects funds are maintained to account for financial resources that are restricted, committed, or assigned to expenditures for capital outlays. Projects are financed through the issuance of debt, special assessments,tax levies, dedicated fees, and intergovernmental aids or grants. Nonmajor capital projects funds presently established are as follows: Sanitary Sewer Trunk—Used to account for the operations and activities dedicated to the construction and improvement of sanitary sewer trunk facilities in the City. Cable Communications—Used to account for the operations and activities related to the provision of cable communications for public access. Fire—Used to account for the operations and activities related to fire capital projects and donations to the fire department. Recreation—Used to account for the operations and activities related to capital improvements to the city-owned recreation facilities, such as the senior center, ice arena, and swimming pool, and donations to these activities. General Capital Equipment— Used to account for the operations and activities related to the City's general capital equipment. -84- CITY OF FARMINGTON Nonmajor Capital Projects Funds Combining Balance Sheet as of December 31,2019 Sanitary Sewer Cable Trunk Communications Fire Assets Cash and investments $ 430,286 $ 915,650 $ 149,027 Receivables Accounts — 65,147 — Interest 819 1,742 284 Total assets $ 431,105 $ 982,539 $ 149,311 Liabilities Accounts and contracts payable $ — $ — $ — Fund balances Restricted for public,educational,and governmental fees — 170,838 — Restricted for recreational capital projects — — — Committed for sanitary sewer trunk 431,105 — — Committed for cable communications — 811,701 — Committed for fire capital programs — — 149,311 Committed for improvement projects — — — Committed for capital equipment — — — Total fund balances 431,105 982,539 149,311 Total liabilities and fund balances $ 431,105 $ 982,539 $ 149,311 -85- General Capital Recreation Equipment Total $ 106,998 $ 1,053,120 $ 2,655,081 — 658 65,805 203 2,003 5,051 $ 107,201 $ 1,055,781 $ 2,725,937 $ 14,066 $ 94,204 $ 108,270 — — 170,838 22,499 — 22,499 — — 431,105 — 811,701 — — 149,311 70,636 — 70,636 — 961,577 961,577 93,135 961,577 2,617,667 $ 107,201 $ 1,055,781 $ 2,725,937 -86- CITY OF FARMINGTON Nonmajor Capital Projects Funds Combining Statement of Revenues,Expenditures, and Changes in Fund Balances Year Ended December 31,2019 Sanitary Sewer Cable Trunk Communications Fire Revenues Franchise taxes $ — $ 142,148 $ — Charges for services 52,984 — — Investment earnings 14,626 31,634 4,529 Other Donations — — 74,192 Miscellaneous — 10,544 — Total revenues 67,610 184,326 78,721 Expenditures Current General government — 74,417 — Public safety 2,718 Parks and recreation — — — Capital outlay General government — 25,820 — Public safety 314,874 Parks and recreation — — — Total expenditures — 100,237 317,592 Excess(deficiency)of revenues over expenditures 67,610 84,089 (238,871) Other financing sources Sale of capital assets — — 470 Transfers in — — 250,000 Total other financing sources 250,470 Net change in fund balances 67,610 84,089 11,599 Fund balances Beginning of year 363,495 898,450 137,712 End of year $ 431,105 $ 982,539 $ 149,311 -87- General Capital Recreation Equipment Total $ - $ - $ 142,148 52,984 4,098 33,014 87,901 27,379 - 101,571 - - 10,544 31,477 33,014 395,148 - - 74,417 - 48 2,766 35,382 - 35,382 - - 25,820 - 204,246 519,120 15,658 - 15,658 51,040 204,294 673,163 (19,563) (171,280) (278,015) 749 1,219 - 232,545 482,545 233,294 483,764 (19,563) 62,014 205,749 112,698 899,563 2,411,918 $ 93,135 $ 961,577 $ 2,617,667 -88- THIS PAGE INTENTIONALLY LEFT BLANK DEBT SERVICE FUND The Debt Service Fund is used to account for the accumulation of resources for the payment of principal and interest on long-term debt obligations other than those issued for and serviced by an enterprise fund. 2010A General Obligation Improvement Refunding Bonds — The bonds were issued for the refinancing of the Police Station. The final payment on these bonds was made in 2018. 2010B General Obligation Utility Revenue Refunding Bonds — The bonds were issued for the refinancing of the Maintenance Facility Bonds. The final payment on these bonds was made in 2018. 2010D General Obligation Equipment Certificate Bonds— The equipment certificates were issued in conjunction with the Ice Arena Rehabilitation Project. The final payment on these bonds was made in 2017. 2011A General Obligation Improvement Refunding Bonds — The bonds were issued for the Main Street Project. The final payment on these bonds was made in 2018. 2013A General Obligation Improvement Refunding Bonds — The bonds were issued to refund the 2005B and 2006A bonds,which were originally issued for the Ash Street,Hill Dee,and Spruce Street Projects. 2013B General Obligation Street Construction Bonds—The bonds were issued to fund the Akin Park Estates East and West Street Reconstruction Project. 2015A General Obligation Street Construction Bonds — The bonds were issued to fund the 195th Avenue Street Reconstruction Project. 2016A General Obligation Improvement Refunding Bonds — The bonds were issued to refund the 2008A&B and 2010C bonds,which were originally issued for the Elm Street, 195th Street Extension, and Walnut Street Reconstruction Projects. 2016B General Obligation Capital Improvement RefundingBnds—The bonds were issued to refund the 2007A bonds,which were originally issued to finance City Hall and the City Garage. 2016C General Obligation Capital Improvement RefundingBonds onds—The bonds were issued to refund the 2007A bonds,which were originally issued to finance City Hall and the City Garage. 2019A General Obligation Street Construction Bonds—The bonds were issued to fund the Westview Street Improvement Project. -89- CITY OF FARMINGTON Debt Service Fund Combining Balance Sheet by Account as of December 31,2019 2010A G.O. 2010B G.O. 2010D G.O. 2011A G.O. 2013A G.O. Improvement Utility Revenue Equipment Improvement Improvement Refunding Refunding Certificate Refunding Refunding Bonds Bonds Bonds Bonds Bonds Assets Cash and investments $ 5,327 $ — $ 128 $ — $ 865,313 Receivables Interest 467 — — — 1,646 Special assessments Delinquent — — — — 248 Noncurrent — — — — 180,173 Total assets $ 5,794 $ — $ 128 $ — $ 1,047,380 Liabilities Accounts and contracts payable $ — $ — $ — $ — $ 413 Due to other funds 389,791 — 16,291 — — Advances from other funds 288,922 — — — — Total liabilities 678,713 — 16,291 — 413 Deferred inflows of resources Unavailable revenue—special assessments — — — — 180,421 Fund balances(deficits) Restricted for debt service (672,919) — (16,163) — 866,546 Total liabilities,deferred inflows of resources,and fund balances $ 5,794 $ — $ 128 $ — $ 1,047,380 -90- 2016B G.O. 2016C G.O. 2013B G.O. 2015A G.O. 2016A G.O. Capital Capital 2019A G.O. Street Street Improvement Improvement Improvement Street Construction Construction Refunding Refunding Refunding Construction Bonds Bonds Bonds Bonds Bonds Bonds Total $ 435,738 $ 357,866 $ 1,250,178 $ 84,900 $ 581,604 $ 194,582 $ 3,775,636 829 681 2,378 162 1,106 370 7,639 - - 98,956 - - - 99,204 - - 980,391 - - - 1,160,564 $ 436,567 $ 358,547 $ 2,331,903 $ 85,062 $ 582,710 $ 194,952 $ 5,043,043 $ 413 $ 413 $ 5,193 $ 4,803 $ 413 $ - $ 11,648 - - - - 406,082 300,000 - - - 588,922 413 413 305,193 4,803 413 - 1,006,652 1,079,347 - - - 1,259,768 436,154 358,134 947,363 80,259 582,297 194,952 2,776,623 $ 436,567 $ 358,547 $ 2,331,903 $ 85,062 $ 582,710 $ 194,952 $ 5,043,043 -91- CITY OF FARMINGTON Debt Service Fund Combining Schedule of Revenues,Expenditures, and Changes in Fund Balances by Account Year Ended December 31,2019 2010A G.O. 2010B G.O. 2010D G.O. 2011A G.O. 2013A G.O. Improvement Utility Revenue Equipment Improvement Improvement Refunding Refunding Certificate Refunding Refunding Bonds Bonds Bonds Bonds Bonds Revenues Property taxes $ 255,677 $ — $ 240,000 $ — $ 684,000 Special assessments — — — — 49,851 Investment earnings 9,182 — 5 — 20,655 Total revenues 264,859 — 240,005 — 754,506 Expenditures Debt service Principal — — — — 695,000 Interest and fiscal charges 18,205 — 3,482 — 47,985 Total expenditures 18,205 — 3,482 — 742,985 Excess(deficiency)of revenues over expenditures 246,654 — 236,523 — 11,521 Other financing sources(uses) Premium on debt issuance — — — — — Transfers in 240,000 — — — — Transfers out — (44,597) — (38,648) — Total other financing sources(uses) 240,000 (44,597) — (38,648) — Net change in fund balances 486,654 (44,597) 236,523 (38,648) 11,521 Fund balances(deficits) Beginning of year (1,159,573) 44,597 (252,686) 38,648 855,025 End of year $ (672,919) $ — $ (16,163) $ — $ 866,546 -92- 2016B G.O. 2016C G.O. 2013B G.O. 2015A G.O. 2016A G.O. Capital Capital 2019A G.O. Street Street Improvement Improvement Improvement Street Construction Construction Refunding Refunding Refunding Construction Bonds Bonds Bonds Bonds Bonds Bonds Total $ 372,000 $ 297,500 $ 351,000 $ 125,000 $ 530,283 $ 191,000 $ 3,046,460 - - 565,049 - - - 614,900 10,530 8,896 30,829 1,890 13,316 3,952 99,255 382,530 306,396 946,878 126,890 543,599 194,952 3,760,615 480,000 205,000 525,000 - 530,000 - 2,435,000 12,748 73,039 66,929 129,104 17,065 21,542 390,099 492,748 278,039 591,929 129,104 547,065 21,542 2,825,099 (110,218) 28,357 354,949 (2,214) (3,466) 173,410 935,516 - - - 21,542 21,542 53,648 - - - 293,648 (15,000) - - - (98,245) - 38,648 - - 21,542 216,945 (110,218) 28,357 393,597 (2,214) (3,466) 194,952 1,152,461 546,372 329,777 553,766 82,473 585,763 - 1,624,162 $ 436,154 $ 358,134 $ 947,363 $ 80,259 $ 582,297 $ 194,952 $ 2,776,623 -93- THIS PAGE INTENTIONALLY LEFT BLANK BUDGETARY COMPARISON SCHEDULES Debt Service Fund State Aid Construction Capital Projects Fund Storm Water Trunk Capital Projects Fund Permanent Improvement RevolvingCapital Projects Fund Maintenance Capital Projects Fund Private Capital Projects Fund Nonmajor Special Revenue Funds Police Donations and Forfeitures Park Improvement Arena(Ice) Nonmajor Capital Projects Funds Sanitary Sewer Trunk Cable Communications Fire Recreation General Capital Equipment -94- CITY OF FARMINGTON Debt Service Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 3,046,460 $ 3,046,460 $ — Special assessments 382,453 614,900 232,447 Investment earnings 10,800 99,255 88,455 Total revenues 3,439,713 3,760,615 320,902 Expenditures Debt service Principal 2,435,000 2,435,000 — Interest and fiscal charges 455,093 390,099 (64,994) Total expenditures 2,890,093 2,825,099 (64,994) Excess of revenues over expenditures 549,620 935,516 385,896 Other financing sources(uses) Bond proceeds 987,800 — (987,800) Premium on debt issuance — 21,542 21,542 Transfers in 285,000 293,648 8,648 Transfers out (1,775,377) (98,245) 1,677,132 Total other financing sources(uses) (502,577) 216,945 719,522 Net change in fund balances $ 47,043 1,152,461 $ 1,105,418 Fund balances Beginning of year 1,624,162 End of year $ 2,776,623 -95- CITY OF FARMINGTON State Aid Construction Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Special assessments $ 6,948 $ 6,973 $ 25 Investment earnings 2,200 4,359 2,159 Total revenues 9,148 11,332 2,184 Expenditures Current Public works — 22 22 Net change in fund balances $ 9,148 11,310 $ 2,162 Fund balances Beginning of year 116,268 End of year $ 127,578 -96- CITY OF FARMINGTON Storm Water Trunk Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 166,000 $ 166,000 $ — Charges for service — 89,707 89,707 Investment earnings 7,203 123,130 115,927 Total revenues 173,203 378,837 205,634 Expenditures Capital outlay Public works — 59,009 59,009 Debt service Interest and fiscal charges — 22,274 22,274 Total expenditures — 81,283 81,283 Excess of revenues over expenditures 173,203 297,554 124,351 Other financing sources Transfers in 742,577 — (742,577) Net change in fund balances $ 915,780 297,554 $ (618,226) Fund balances Beginning of year 3,171,825 End of year $ 3,469,379 -97- CITY OF FARMINGTON Permanent Improvement Revolving Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Special assessments $ — $ 815 $ 815 Investment earnings 1,000 6,108 5,108 Total revenues 1,000 6,923 5,923 Net change in fund balances $ 1,000 6,923 $ 5,923 Fund balances Beginning of year 167,989 End of year $ 174,912 -98- CITY OF FARMINGTON Maintenance Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Intergovernmental $ — $ 688,143 $ 688,143 Charges for service — 39,391 39,391 Investment earnings 13,500 56,854 43,354 Total revenues 13,500 784,388 770,888 Expenditures Current Public works 701,208 671,363 (29,845) Parks and recreation — 209,231 209,231 Capital outlay Public works 3,171,524 3,710,203 538,679 Parks and recreation 22,000 — (22,000) Total expenditures 3,894,732 4,590,797 696,065 Excess(deficiency)of revenues over expenditures (3,881,232) (3,806,409) 74,823 Other financing sources Bond proceeds — 925,000 925,000 Premium on debt issuance — 63,013 63,013 Sale of capital assets — 13,973 13,973 Transfers in 3,657,095 2,175,009 (1,482,086) Total other financing sources 3,657,095 3,176,995 (480,100) Net change in fund balances $ (224,137) (629,414) $ (405,277) Fund balances Beginning of year 1,496,523 End of year $ 867,109 -99- CITY OF FARMINGTON Private Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Special assessments $ — $ 615 $ 615 Charges for services 20,000 — (20,000) Investment earnings 2,200 32,307 30,107 Total revenues 22,200 32,922 10,722 Expenditures Current General government 20,000 2,726 (17,274) Net change in fund balances $ 2,200 30,196 $ 27,996 Fund balances Beginning of year 46,138 End of year $ 76,334 -100- CITY OF FARMINGTON Police Donations and Forfeitures Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 100 $ 315 $ 215 Expenditures Current Public safety 6,500 1,788 (4,712) Excess(deficiency)of revenues over expenditures (6,400) (1,473) 4,927 Other financing sources(uses) Sale of capital assets 5,000 3,747 (1,253) Transfers out — (9,789) (9,789) Total other financing sources(uses) 5,000 (6,042) (11,042) Net change in fund balances $ (1,400) (7,515) $ (6,115) Fund balances Beginning of year 15,412 End of year $ 7,897 -101- CITY OF FARMINGTON Park Improvement Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Intergovernmental $ — $ 23,367 $ 23,367 Investment earnings 1,800 13,444 11,644 Other Donations — 600 600 Rentals 5,000 7,773 2,773 Miscellaneous 21,000 39,004 18,004 Total revenues 27,800 84,188 56,388 Expenditures Current Parks and recreation 39,500 35,404 (4,096) Capital outlay Parks and recreation 268,000 292,695 24,695 Total expenditures 307,500 328,099 20,599 Excess(deficiency)of revenues over expenditures (279,700) (243,911) 35,789 Other financing sources Transfers in 75,000 75,000 — Net change in fund balances $ (204,700) (168,911) $ 35,789 Fund balances Beginning of year 463,562 End of year $ 294,651 -102- CITY OF FARMINGTON Arena Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Charges for services $ 347,200 $ 357,308 $ 10,108 Investment earnings 400 1,491 1,091 Other Donations 5,000 5,000 — Rentals 3,000 2,746 (254) Miscellaneous 1,000 1,173 173 Total revenues 356,600 367,718 11,118 Expenditures Current Parks and recreation 352,744 378,441 25,697 Capital outlay Parks and recreation — 2,396 2,396 Total expenditures 352,744 380,837 28,093 Net change in fund balances $ 3,856 (13,119) $ (16,975) Fund balances Beginning of year 82,791 End of year $ 69,672 -103- CITY OF FARMINGTON Sanitary Sewer Trunk Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Charges for services $ 30,240 $ 52,984 $ 22,744 Investment earnings 2,800 14,626 11,826 Total revenues 33,040 67,610 34,570 Net change in fund balances $ 33,040 67,610 $ 34,570 Fund balances Beginning of year 363,495 End of year $ 431,105 -104- CITY OF FARMINGTON Cable Communications Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Franchise taxes $ 170,000 $ 142,148 $ (27,852) Investment earnings 4,900 31,634 26,734 Other Miscellaneous — 10,544 10,544 Total revenues 174,900 184,326 9,426 Expenditures Current General government 106,000 74,417 (31,583) Capital outlay General government 9,000 25,820 16,820 Total expenditures 115,000 100,237 (14,763) Net change in fund balances $ 59,900 84,089 $ 24,189 Fund balances Beginning of year 898,450 End of year $ 982,539 -105- CITY OF FARMINGTON Fire Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 2,900 $ 4,529 $ 1,629 Other Donations — 74,192 74,192 Total revenues 2,900 78,721 75,821 Expenditures Current Public safety — 2,718 2,718 Capital outlay Public safety 870,000 314,874 (555,126) Total expenditures 870,000 317,592 (552,408) Excess(deficiency)of revenues over expenditures (867,100) (238,871) 628,229 Other financing sources Sale of capital assets — 470 470 Transfers in 250,000 250,000 — Total other financing sources 250,000 250,470 470 Net change in fund balances $ (617,100) 11,599 $ 628,699 Fund balances Beginning of year 137,712 End of year $ 149,311 -106- CITY OF FARMINGTON Recreation Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 300 $ 4,098 $ 3,798 Other Donations 21,500 27,379 5,879 Total revenues 21,800 31,477 9,677 Expenditures Current Parks and recreation 5,600 35,382 29,782 Capital outlay Parks and recreation 8,500 15,658 7,158 Total expenditures 14,100 51,040 36,940 Net change in fund balances $ 7,700 (19,563) $ (27,263) Fund balances Beginning of year 112,698 End of year $ 93,135 -107- CITY OF FARMINGTON General Capital Equipment Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2019 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 2,300 $ 33,014 $ 30,714 Expenditures Current Public safety 121,786 48 (121,738) Capital outlay Public safety 100,000 204,246 104,246 Total expenditures 221,786 204,294 (17,492) Excess(deficiency)of revenues over expenditures (219,486) (171,280) 48,206 Other financing sources Sale of capital assets — 749 749 Transfers in 232,545 232,545 — Total other financing sources 232,545 233,294 749 Net change in fund balances $ 13,059 62,014 $ 48,955 Fund balances Beginning of year 899,563 End of year $ 961,577 -108- THIS PAGE INTENTIONALLY LEFT BLANK INTERNAL SERVICE FUNDS Employee Expense — Used to account for the costs of employer-paid benefits, including pension, Social Security,health, life and dental insurance,and workers' compensation insurance. Properly and Liability Insurance—Used to account for the costs of property and liability insurance for the City. Fleet—Used to account for the costs of vehicle maintenance services provided to divisions by staff at the City Garage facility. Information Technology — Used to account for the costs of computer hardware, software, and internet services provided to all city departments. -109- CITY OF FARMINGTON Internal Service Funds Combining Statement of Net Position as of December 31,2019 Property Employee and Liability Information Expense Insurance Fleet Technology Total Assets Current assets Cash and investments $ 1,678,681 $ 434,761 $ 198,919 $ 537,356 $ 2,849,717 Receivables Accounts 4,102 - - - 4,102 Interest 3,194 827 378 1,022 5,421 Due from other governments 2,947 - 2,947 Prepaid items - - - 11,706 11,706 Total current assets 1,688,924 435,588 199,297 550,084 2,873,893 Noncurrent assets Capital assets Machinery and equipment - - 116,173 - 116,173 Less accumulated depreciation - - (97,823) - (97,823) Total capital assets - - 18,350 - 18,350 Total assets $ 1,688,924 $ 435,588 $ 217,647 $ 550,084 $ 2,892,243 Current liabilities Accounts and contracts payable $ 94,559 $ 23 $ 8,695 $ 7,808 $ 111,085 Accrued salaries and employee benefits payable 467,740 - - - 467,740 Deposits payable 1,564 - - - 1,564 Compensated absences payable - - 21,255 2,492 23,747 Total current liabilities 563,863 23 29,950 10,300 604,136 Net position Investment in capital assets - - 18,350 - 18,350 Unrestricted 1,125,061 435,565 169,347 539,784 2,269,757 Total net position 1,125,061 435,565 187,697 539,784 2,288,107 Total liabilities and net position $ 1,688,924 $ 435,588 $ 217,647 $ 550,084 $ 2,892,243 -110- CITY OF FARMINGTON Internal Service Funds Combining Statement of Revenues,Expenses, and Changes in Fund Net Position Year Ended December 31,2019 Property Employee and Liability Information Expense Insurance Fleet Technology Total Operating revenues Charges for services $ 2,361,478 $ - $ 292,090 $ 562,340 $ 3,215,908 Insurance reimbursement - 268,409 - - 268,409 Total operating revenues 2,361,478 268,409 292,090 562,340 3,484,317 Operating expenses Personal services 2,381,506 - 202,181 132,226 2,715,913 Professional services - - 27,754 237,483 265,237 Materials and supplies - - 56,107 141,021 197,128 Insurance - 291,713 - - 291,713 Depreciation - - 7,344 - 7,344 Total operating expenses 2,381,506 291,713 293,386 510,730 3,477,335 Operating income(loss) (20,028) (23,304) (1,296) 51,610 6,982 Nonoperating revenue Intergovernmental 10,789 - - - 10,789 Investment earnings 51,875 14,372 6,988 17,203 90,438 Total nonoperating revenue 62,664 14,372 6,988 17,203 101,227 Income(loss)before transfers 42,636 (8,932) 5,692 68,813 108,209 Transfers in 13,022 16,110 - - 29,132 Change in net position 55,658 7,178 5,692 68,813 137,341 Net position Beginning of year 1,069,403 428,387 182,005 470,971 2,150,766 End of year $ 1,125,061 $ 435,565 $ 187,697 $ 539,784 $ 2,288,107 -111- CITY OF FARMINGTON Internal Service Funds Combining Statement of Cash Flows Year Ended December 31,2019 Property Employee and Liability Information Expense Insurance Fleet Technology Total Cash flows from operating activities Cash receipts from other funds and reimbursements $ 2,354,429 $ 268,409 $ 292,180 $ 562,439 $ 3,477,457 Cash payments to employees for services (2,209,488) - (197,956) (135,362) (2,542,806) Cash payments for interfund services used - (308,090) (82,148) (378,647) (768,885) Net cash flows from operating activities 144,941 (39,681) 12,076 48,430 165,766 Cash flows from noncapital financing activities Intergovernmental 10,789 - - - 10,789 Transfers in 13,022 16,110 29,132 Net cash flows from noncapital financing activities 23,811 16,110 - - 39,921 Cash flows from investing activities Interest received and changes in fair value on investments 52,100 14,586 7,032 17,287 91,005 Net increase in cash and cash equivalents 220,852 (8,985) 19,108 65,717 296,692 Cash and cash equivalents Beginning of year 1,457,829 443,746 179,811 471,639 2,553,025 End of year $ 1,678,681 $ 434,761 $ 198,919 $ 537,356 $ 2,849,717 Reconciliation of operating income(loss)to net cash flows from operating activities Operating income(loss) $ (20,028) $ (23,304) $ (1,296) $ 51,610 $ 6,982 Adjustments to reconcile operating income(loss) to net cash flows from operating activities Depreciation - - 7,344 - 7,344 Change in assets and liabilities Accounts receivable (4,102) - 90 99 (3,913) Due from other governments (2,947) - - - (2,947) Prepaid items - - - 4,131 4,131 Accounts and contracts payable 89,067 (16,377) 1,786 (4,274) 70,202 Accrued salaries and employee benefits 81,430 - - - 81,430 Deposits payable 1,521 - - - 1,521 Due to other governments - - (73) - (73) Compensated absences payable - - 4,225 (3,136) 1,089 Total adjustments 164,969 (16,377) 13,372 (3,180) 158,784 Net cash flows from operating activities $ 144,941 $ (39,681) $ 12,076 $ 48,430 $ 165,766 -112- DISCRETELY PRESENTED COMPONENT UNIT—EDA The following statements present the fund based financial information for the Farmington Economic Development Authority (EDA). The EDA utilizes one General Fund and one special revenue fund to administer the resources for the economic development authority within the City. -113- CITY OF FARMINGTON Economic Development Authority (Discretely Presented Component Unit) Combining Balance Sheet as of December 31,2019 Economic Development Trident Housing Authority Tax Increment General Special Revenue Total Assets Cash and investments $ 232,048 $ 88,378 $ 320,426 Receivables Interest 566 168 734 Due from other governments 65,398 — 65,398 Prepaid items 300 — 300 Total assets $ 298,312 $ 88,546 $ 386,858 Liabilities Accounts and contracts payable $ 6,238 $ 65,925 $ 72,163 Fund balances Nonspendable for prepaid items 300 — 300 Assigned for economic development 291,774 22,621 314,395 Total fund balances 292,074 22,621 314,695 Total liabilities and fund balances $ 298,312 $ 88,546 $ 386,858 -114- CITY OF FARMINGTON Economic Development Authority (Discretely Presented Component Unit) Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Year Ended December 31,2019 Economic Development Trident Housing Authority Tax Increment General Special Revenue Total Revenues Property taxes $ — $ 146,210 $ 146,210 Intergovernmental 115,398 2,850 118,248 Investment earnings 10,434 1,786 12,220 Total revenues 125,832 150,846 276,678 Expenditures Current Economic development 133,120 132,996 266,116 Net change in fund balances (7,288) 17,850 10,562 Fund balances Beginning of year 299,362 4,771 304,133 End of year $ 292,074 $ 22,621 $ 314,695 -115- THIS PAGE INTENTIONALLY LEFT BLANK STATISTICAL SECTION (UNAUDITED) THIS PAGE INTENTIONALLY LEFT BLANK STATISTICAL TABLES (UNAUDITED) This part of the City's Comprehensive Annual Financial Report(CAFR) presents detailed information as a context for understanding this year's financial statements, note disclosures, and supplementary information.This information has not been audited by the independent auditor. The contents of the statistical section include: Financial Trends–These tables contain trend information that may assist the reader in assessing the City's current financial performance by placing it in historical perspective. Revenue Capacity – These tables contain information to assist the reader in assessing the City's most significant local revenue source—property taxes. Debt Capacity – These tables present information that may assist the reader in analyzing the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information – These tables offer economic and demographic indicators that are commonly used for financial analysis and that can assist the reader in understanding the City's present and ongoing financial status. Operating Information–These tables contain service and infrastructure indicators that can assist the reader in understanding how the information in the City's financial report relates to the services the City provides and the activities it performs. Source – Unless otherwise noted, the information in these tables is derived from the CAFR for the relevant year. -116- CITY OF FARMINGTON Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2010 2011 2012 2013 Governmental activities Net investment in capital assets $ 22,287,712 $ 20,484,140 $ 21,263,670 $ 23,462,934 Restricted 3,757,948 1,661,973 11,034,909 11,669,054 Unrestricted 11,197,982 14,963,297 11,131,928 9,628,139 Total governmental activities net position $ 37,243,642 $ 37,109,410 $ 43,430,507 $ 44,760,127 Business-type activities Net investment in capital assets $ 60,219,892 $ 60,462,689 $ 58,728,008 $ 57,427,060 Restricted 2,108,045 2,140,345 2,159,566 2,159,566 Unrestricted 6,067,114 6,819,607 7,845,545 8,891,769 Total business-type activities net position $ 68,395,051 $ 69,422,641 $ 68,733,119 $ 68,478,395 Primary government Net investment in capital assets $ 82,507,604 $ 80,946,829 $ 79,991,678 $ 80,889,994 Restricted 5,865,993 3,802,318 13,194,475 13,828,620 Unrestricted 17,265,096 21,782,904 18,977,473 18,519,908 Total primary government net position $105,638,693 $106,532,051 $112,163,626 $113,238,522 Note: The City implemented GASB Statement No. 68 in fiscal 2015, recording a change in accounting principle that decreased unrestricted net position.Prior year balances were not restated. -117- 2014 2015 2016 2017 2018 2019 $ 23,383,175 $ 21,417,203 $ 23,684,773 $ 28,820,307 $ 32,909,853 $ 33,867,761 9,235,448 9,063,587 10,441,391 6,961,837 4,797,191 5,343,074 13,150,789 8,920,144 5,142,435 6,576,959 7,997,614 8,001,782 $ 45,769,412 $ 39,400,934 $ 39,268,599 $ 42,359,103 $ 45,704,658 $ 47,212,617 $ 55,685,476 $ 54,807,938 $ 53,225,787 $ 51,464,649 $ 50,747,479 $ 53,677,776 2,160,566 2,160,566 2,231,966 2,238,206 2,316,500 2,461,488 10,396,218 11,439,369 12,575,526 13,508,485 14,594,293 13,187,014 $ 68,242,260 $ 68,407,873 $ 68,033,279 $ 67,211,340 $ 67,658,272 $ 69,326,278 $ 79,068,651 $ 76,225,141 $ 76,910,560 $ 80,284,956 $ 83,657,332 $ 87,545,537 11,396,014 11,224,153 12,673,357 9,200,043 7,113,691 7,804,562 23,547,007 20,359,513 17,717,961 20,085,444 22,591,907 21,188,796 $114,011,672 $107,808,807 $107,301,878 $109,570,443 $113,362,930 $116,538,895 -118- CITY OF FARMINGTON Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2010 2011 2012 2013 Expenses Governmental activities General government $ 2,410,637 $ 1,897,429 $ 1,865,415 $ 1,778,549 Public safety 4,844,128 5,162,361 4,989,522 5,156,950 Public works 3,261,582 2,800,221 3,063,908 3,849,742 Park and recreation 1,864,728 1,666,466 1,719,254 1,775,967 Economic development 83,572 114,639 44,114 50,000 Intergovernmental donations 8,526,239 313,198 - - Interest and fiscal charges 1,718,077 1,431,468 1,302,605 1,290,439 Total governmental activities expenses $ 22,708,963 $ 13,385,782 $ 12,984,818 $ 13,901,647 Business-type activities Liquor operations $ 4,267,536 $ 4,091,541 $ 4,116,030 $ 4,206,058 Sewer operations 1,811,992 1,879,752 1,891,872 1,627,927 Solid waste 1,773,240 1,789,114 1,727,384 1,658,547 Storm water 702,089 745,967 734,516 513,582 Water 1,732,559 1,772,096 1,705,167 1,427,298 Street light 175,050 180,200 176,513 184,834 Total business-type activities 10,462,466 10,458,670 10,351,482 9,618,246 Total primary government expenses $ 33,171,429 $ 23,844,452 $ 23,336,300 $ 23,519,893 Program revenues Governmental activities Charges for services General government $ 503,258 $ 470,572 $ 436,113 $ 684,528 Public safety 427,593 461,659 423,721 482,759 Public works 355,506 306,860 225,497 115,092 Park and recreation 537,773 520,522 581,341 596,165 Economic development 13,374 6,333 - - Operating grants and contributions 551,257 507,180 533,939 713,378 Capital grants and contributions 2,449,930 2,388,656 4,976,219 645,233 Total governmental activities program revenues $ 4,838,691 $ 4,661,782 $ 7,176,830 $ 3,237,155 -119- 2014 2015 2016 2017 2018 2019 $ 1,940,630 $ 2,284,974 $ 2,268,779 $ 2,178,067 $ 2,511,818 $ 2,609,059 5,192,091 5,357,738 6,979,608 6,472,115 5,728,925 6,118,203 4,893,341 7,473,095 5,497,796 3,888,778 4,358,465 5,612,872 1,730,734 1,815,882 1,904,792 1,782,783 1,772,351 2,202,631 49,417 90,000 40,000 40,000 30,000 50,000 1,020,096 992,422 1,032,748 549,075 350,431 404,893 $ 14,826,309 $ 18,014,111 $ 17,723,723 $ 14,910,818 $ 14,751,990 $ 16,997,658 $ 4,315,834 $ 4,352,597 $ 4,448,932 $ 4,634,488 $ 4,890,304 $ 5,257,236 1,712,146 1,875,225 2,051,152 2,105,901 1,931,276 2,326,630 1,600,434 1,658,128 1,753,162 1,864,175 2,092,844 1,913,258 615,684 731,444 534,988 571,572 521,465 557,749 1,410,214 1,339,588 1,359,215 1,313,482 1,246,667 1,439,178 174,957 173,212 288,924 197,150 180,254 165,886 9,829,269 10,130,194 10,436,373 10,686,768 10,862,810 11,659,937 $ 24,655,578 $ 28,144,305 $ 28,160,096 $ 25,597,586 $ 25,614,800 $ 28,657,595 $ 534,008 $ 399,053 $ 668,849 $ 434,411 $ 467,417 $ 471,569 409,460 351,038 459,240 405,648 408,434 437,054 94,416 9,624 195,716 76,049 273,695 189,282 607,566 604,111 651,936 619,026 709,490 582,631 677,999 649,541 744,730 684,376 702,853 838,569 477,833 671,671 818,545 848,167 942,627 869,849 $ 2,801,282 $ 2,685,038 $ 3,539,016 $ 3,067,677 $ 3,504,516 $ 3,388,954 -120- (continued) CITY OF FARMINGTON Changes in Net Position Last Ten Fiscal Years(continued) (accrual basis of accounting) Fiscal Year 2010 2011 2012 2013 Program revenues(continued) Business-type activities Charges for services Liquor operations $ 4,285,471 $ 4,199,344 $ 4,397,572 $ 4,521,454 Sewer operations 1,581,526 1,600,303 1,787,957 1,816,763 Solid waste 1,850,073 1,872,771 1,869,426 1,952,177 Storm water 464,043 467,729 475,060 565,166 Water 1,439,906 1,417,708 1,595,116 1,558,400 Street light 140,773 178,464 215,029 216,719 Operating grants and contributions 72,631 29,000 20,010 19,300 Capital grants and contributions 100,162 49,473 100,525 108,642 Total business-type activities program revenues 9,934,585 9,814,792 10,460,695 10,758,621 Total primary government program revenues $ 14,773,276 $ 14,476,574 $ 17,637,525 $ 13,995,776 Net(expense)revenue Governmental activities $(17,870,272) $ (8,724,000) $ (5,807,988) $(10,664,492) Business-type activities (527,881) (643,878) 109,213 1,140,375 Total primary government net expense $(18,398,153) $ (9,367,878) $ (5,698,775) $ (9,524,117) General revenues and other changes in net position Governmental activities Property taxes $ 9,189,015 $ 9,607,893 $ 10,742,860 $ 10,748,581 Tax increments 155,094 150,339 154,214 - Franchise taxes 228,932 237,449 243,635 259,671 Unrestricted grants and contributions 927 1,500 1,816 24,845 Unrestricted investment earnings(charges) 181,943 119,632 77,276 (32,408) Gain on sale of capital assets 25,412 75,306 - 18,268 Transfers (1,107,882) (1,602,351) 909,284 1,410,114 Total governmental activities $ 8,673,441 $ 8,589,768 $ 12,129,085 $ 12,429,071 Business-type activities Unrestricted investment earnings(charges) $ 98,988 $ 69,117 $ 110,549 $ (40,071) Gain on disposal of capital assets - - - 55,086 Transfers 1,107,882 1,602,351 (909,284) (1,410,114) Total business-type activities 1,206,870 1,671,468 (798,735) (1,395,099) Total primary government $ 9,880,311 $ 10,261,236 $ 11,330,350 $ 11,033,972 Change in net position Governmental activities $ (9,196,831) $ (134,232) $ 6,321,097 $ 1,764,579 Business-type activities 678,989 1,027,590 (689,522) (254,724) Total primary government $ (8,517,842) $ 893,358 $ 5,631,575 $ 1,509,855 -121- 2014 2015 2016 2017 2018 2019 $ 4,639,194 $ 4,607,417 $ 4,742,313 $ 4,967,468 $ 5,256,645 $ 5,608,012 1,843,746 1,957,902 2,043,859 2,068,388 2,045,728 2,117,934 1,979,623 1,991,179 2,041,561 2,061,324 2,071,672 2,244,569 559,327 670,353 643,479 647,767 737,115 1,130,563 1,499,091 1,439,873 1,631,643 1,681,079 1,852,381 2,281,793 219,052 222,159 224,781 225,570 226,674 226,971 21,000 22,000 23,000 24,000 30,263 34,190 - 945,938 - - - 81,634 10,761,033 11,856,821 11,350,636 11,675,596 12,220,478 13,725,666 $ 13,562,315 $ 14,541,859 $ 14,889,652 $ 14,743,273 $ 12,220,478 $ 13,807,300 $(12,025,027) $(15,329,073) $(14,184,707) $(11,843,141) $(11,247,474) $(13,608,704) 931,764 1,726,627 914,263 988,828 1,357,668 2,065,729 $(11,093,263) $(13,602,446) $(13,270,444) $(10,854,313) $ (9,889,806) $(11,542,975) $ 10,962,860 $ 11,460,209 $ 11,806,302 $ 12,181,830 $ 12,659,480 $ 12,916,115 269,208 265,485 275,691 266,728 266,324 262,148 257,386 278,974 287,252 289,854 316,100 317,172 130,739 189,540 255,021 200,851 239,714 657,977 - - - 54,408 531 17,218 1,414,119 1,222,807 1,428,106 1,939,974 1,110,880 946,033 $ 13,034,312 $ 13,417,015 $ 14,052,372 $ 14,933,645 $ 14,593,029 $ 15,116,663 $ 246,220 $ 152,954 $ 139,249 $ 129,207 $ 200,144 $ 548,310 (1,414,119) (1,222,807) (1,428,106) (1,939,974) (1,110,880) (946,033) (1,167,899) (1,069,853) (1,288,857) (1,810,767) (910,736) (397,723) $ 11,866,413 $ 12,347,162 $ 12,763,515 $ 13,122,878 $ 13,682,293 $ 14,718,940 $ 1,009,285 $ (1,912,058) $ (132,335) $ 3,090,504 $ 3,345,555 $ 1,507,959 (236,135) 656,774 (374,594) (821,939) 446,932 1,668,006 $ 773,150 $ (1,255,284) $ (506,929) $ 2,268,565 $ 3,792,487 $ 3,175,965 -122- CITY OF FARMINGTON Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2010 2011 2012 2013 General Fund Reserved $ 30,314 $ — $ — $ — Unreserved 2,188,528 — — — Nonspendable — 43,102 612,518 13,388 Committed — — — — Assigned — — — — Unassigned — 2,093,006 2,067,246 3,079,013 Total General Fund $ 2,218,842 $ 2,136,108 $ 2,679,764 $ 3,092,401 All other governmental funds Reserved $ 381,500 $ — $ — $ — Unreserved,undesignated,reported in Special revenue funds (159,042) — — — Capital projects funds 6,244,182 — — — Debt service funds 738,371 — — — Nonspendable — 307,074 146 — Restricted — 2,312,309 2,950,166 6,881,858 Committed — — — — Assigned — 6,726,928 9,134,820 7,865,678 Unassigned — (576,114) — — Total all other governmental funds $ 7,205,011 $ 8,770,197 $ 12,085,132 $ 14,747,536 Total all funds $ 9,423,853 $ 10,906,305 $ 14,764,896 $ 17,839,937 Note 1: The City implemented GASB Statement No.54 in fiscal 2011.Prior year information has not been restated. Note 2: The City modified its fund balance policy in 2015,resulting in an increase in committed fund balances. -123- 2014 2015 2016 2017 2018 2019 33,369 6,034 33,762 34,529 5,045 109,523 - - - - 240,000 - 81,000 4,250 - - - - 3,993,191 4,734,534 5,031,529 5,666,183 5,477,026 5,761,747 $ 4,107,560 $ 4,744,818 $ 5,065,291 $ 5,700,712 $ 5,722,071 $ 5,871,270 160 150 110 - - - 5,673,161 5,776,314 16,959,150 4,071,837 2,009,629 3,196,214 - 8,025,185 5,158,828 6,373,022 7,586,959 7,298,103 7,531,076 - - - - - $ 13,204,397 $ 13,801,649 $ 22,118,088 $ 10,444,859 $ 9,596,588 $ 10,494,317 $ 17,311,957 $ 18,546,467 $ 27,183,379 $ 16,145,571 $ 15,318,659 $ 16,365,587 -124- CITY OF FARMINGTON Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2010 2011 2012 2013 Revenues General property taxes $ 9,392,326 $ 9,690,053 $ 11,112,325 $ 10,808,636 Franchise fees 228,932 237,449 243,635 259,671 Special assessments 1,450,515 720,862 3,296,216 913,313 Licenses and permits 454,769 456,791 423,153 664,673 Intergovernmental 2,657,788 2,217,217 556,496 1,329,395 Charges for services 1,141,182 1,096,174 1,015,835 865,736 Fines and forfeits 64,779 78,710 73,210 81,919 Investment earnings 176,191 20,444 158,657 46,707 Other 375,201 272,234 222,083 233,808 Total revenues 15,941,683 14,789,934 17,101,610 15,203,858 Expenditures Current General government 2,064,477 1,828,147 1,830,470 1,686,263 Public safety 4,589,650 4,705,581 4,702,399 4,850,400 Public works 1,379,325 1,382,306 1,402,838 2,081,956 Park and recreation 1,591,378 1,399,541 1,427,257 1,530,238 Economic development 84,572 112,612 91,165 50,000 Capital outlay 4,046,022 316,134 555,293 1,290,875 Debt service Principal 2,238,084 5,090,101 2,912,213 7,394,424 Interest and fiscal charges 1,507,873 1,527,970 1,336,414 1,379,551 Total expenditures 17,501,381 16,362,392 14,258,049 20,263,707 Excess(deficiency)of revenues over expenditures (1,559,698) (1,572,458) 2,843,561 (5,059,849) Other financing sources(uses) Bonds issued 8,710,984 2,418,979 - 7,088,037 Payment of refunded debt (5,948,057) - Sale of capital assets 25,412 139,454 105,746 26,154 Transfers in 3,359,406 2,455,874 3,997,318 7,492,556 Transfers out (2,381,778) (1,959,397) (3,088,034) (6,082,442) Total other financing sources(uses) 3,765,967 3,054,910 1,015,030 8,524,305 Net change in fund balances $ 2,206,269 $ 1,482,452 $ 3,858,591 $ 3,464,456 Debt service as a percentage of noncapital expenditures 27.8% 41.2% 31.0% 46.2% -125- 2014 2015 2016 2017 2018 2019 $ 11,031,219 $ 11,462,986 $ 11,852,567 $ 12,186,789 $ 12,665,721 $ 12,926,730 269,208 265,485 275,691 266,728 266,324 262,148 821,331 661,187 545,777 532,744 314,594 625,308 514,728 370,889 650,311 415,005 449,350 421,578 1,011,221 2,097,509 1,633,388 1,632,170 1,768,219 1,796,575 890,281 820,445 1,077,860 929,784 1,094,360 1,042,292 65,482 52,299 41,750 45,102 60,182 63,561 130,739 172,818 237,224 183,402 209,968 567,539 174,959 160,193 260,564 201,288 305,014 226,316 14,909,168 16,063,811 16,575,132 16,393,012 17,133,732 17,932,047 1,717,994 1,947,768 1,996,410 2,051,143 2,311,024 2,407,932 4,871,745 5,131,076 5,301,211 5,537,937 5,348,888 5,705,820 2,038,161 1,971,079 2,006,606 2,381,695 2,690,271 3,272,313 1,448,951 1,538,452 1,513,411 1,585,656 1,595,924 1,855,261 49,417 90,000 40,000 40,000 30,000 50,000 1,839,726 4,695,581 2,755,780 586,495 1,597,191 4,715,989 2,376,739 2,899,162 4,411,534 6,395,000 5,180,000 2,435,000 1,096,007 1,041,780 1,095,380 818,144 503,061 412,373 15,438,740 19,314,898 19,120,332 19,396,070 19,256,359 20,854,688 (529,572) (3,251,087) (2,545,200) (3,003,058) (2,122,627) (2,922,641) 3,184,641 10,120,095 - - 1,009,555 (1,435,000) - - (9,990,000) - - 22,473 157,599 13,043 54,408 11,000 18,939 2,330,331 5,937,539 5,590,211 2,981,402 3,214,991 4,280,247 (916,212) (4,794,182) (4,541,237) (1,080,560) (1,930,276) (1,339,172) 1,592 4,485,597 11,182,112 (8,034,750) 1,295,715 3,969,569 $ (527,980) $ 1,234,510 $ 8,636,912 $ (11,037,808) $ (826,912) $ 1,046,928 24.8% 21.0% 29.5% 37.9% 31.3% 16.5% -126- CITY OF FARMINGTON Tax Capacity Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Commercial/ Industrial, Less Public Utility, Captured Payable Residential Railroads,and Agricultural Tax Increment Year Property Personal Property Apartments Property Tax Capacity 2010 $ 14,657,576 $ 2,849,385 $ 289,447 $ 272,170 $ (227,913) 2011 13,340,049 2,765,411 267,263 224,369 (143,056) 2012 11,604,460 2,683,032 269,378 207,859 (137,147) 2013 10,805,838 2,666,688 270,394 220,247 (130,805) 2014 11,207,086 2,669,813 272,246 234,772 (119,175) 2015 12,802,297 2,688,017 271,615 266,387 (113,361) 2016 14,005,748 2,739,868 280,096 272,897 (117,585) 2017 14,798,507 2,805,453 295,234 272,086 (118,368) 2018 15,932,445 2,884,545 382,700 257,966 (37,168) 2019 17,392,473 2,937,228 487,014 266,572 (146,966) Note: The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the estimated market value of the property. Source: Dakota County -127- Less Estimated Tax Capacity Contributions Total Direct Actual Value as a to Fiscal Fiscal Disparities Total Tax Tax Capacity Taxable Percentage of Disparities Pool Distribution Capacity Value Rate Value Actual Value — $ (462,792) $ 1,304,003 $ 18,681,876 49.274 % $ 1,661,903,500 1.12 % (554,552) 1,537,976 17,437,460 55.730 1,522,502,000 1.15 (611,325) 2,016,261 16,032,518 63.093 1,344,600,257 1.19 (642,069) 2,195,874 15,386,167 66.821 1,266,601,230 1.21 (1,011,274) 3,371,993 16,625,461 65.876 1,311,752,463 1.27 (1,002,736) 3,397,197 18,309,416 61.455 1,475,969,866 1.24 (953,101) 3,424,887 19,652,810 59.239 1,601,441,554 1.23 (1,039,820) 3,607,141 20,620,233 58.760 1,685,287,604 1.22 (1,061,204) 3,721,925 22,081,209 57.161 1,810,826,485 1.22 (1,080,604) 3,892,519 23,748,236 54.372 1,968,969,293 1.21 -128- CITY OF FARMINGTON Property Tax Rates(1) Direct and Overlapping Governments Last Ten Fiscal Years City Direct Rates Overlapping Rates(2) Total Direct Fiscal Debt Total Dakota Other Special Overlapping Year Operating Service City County ISD No. 192 Districts Rate 2010 37.103 12.171 49.274 27.261 53.439 3.821 133.795 2011 38.788 16.942 55.730 29.149 52.157 3.429 140.465 2012 43.954 19.139 63.093 31.417 55.292 4.187 153.989 2013 45.597 21.224 66.821 33.411 57.208 4.426 161.866 2014 47.308 18.568 65.876 31.820 56.300 4.150 158.146 2015 44.964 16.491 61.455 29.625 53.460 3.741 148.281 2016 44.220 15.019 59.239 28.562 57.570 3.802 149.173 2017 44.050 14.710 58.760 27.996 54.256 3.692 144.704 2018 42.451 14.710 57.161 26.573 52.813 3.203 139.750 2019 43.721 10.651 54.372 25.379 51.390 2.983 134.124 (1) Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of"net tax capacity." A property's tax capacity is determined by multiplying its taxable market value by a state determined class rate. Class rates vary by property type and change periodically based on state legislation. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all of the City's property owners. Source: Dakota County -129- CITY OF FARMINGTON Principal Property Taxpayers Current Fiscal Year and Nine Years Prior 2019 2010 Percentage Percentage of Total of Total Net Tax City Tax Net Tax City Tax Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value Northern Natural Gas $ 609,598 1 2.89 % $ 415,950 1 2.30 % Xcel Energy(Northern States Power) 194,474 2 0.92 158,206 2 0.88 Dakota Electric Association 145,452 3 0.69 143,002 4 0.79 Legacy Partners of Farmington LLC 110,686 4 0.52 — Dakota Storage,LLC 81,916 5 0.39 89,298 8 0.49 Minnesota Energy Resources 79,174 6 0.38 — — — Valmont Industries 76,606 7 0.36 — — — St.Francis Health Systems 68,535 8 0.33 76,086 9 0.42 POR-MKR Real Estate,LLC 67,405 9 0.32 — — — Seefer Properties LLC 66,512 10 0.32 — — — Builder's Development and Finance — — — 147,580 3 0.82 Farmington City Center,LLC 107,490 5 0.59 Land,LLC — — — 93,088 6 0.52 Castle Rock Development Inc — — — 89,898 7 0.50 RLR Investments,LLC — 73,648 10 0.41 Total $1,500,358 7.12 % $1,394,246 7.72 % Source:Dakota County -130- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Property Tax Levies and Collections Last Ten Fiscal Years Collected Within the Fiscal Year of Levy(2) Total Collections to Date Total Tax Percentage Delinquent Percentage Fiscal Levy for of Tax of Year Fiscal Year(1) Amount Levy Collections(2) Amount Levy 2010 $ 9,586,323 $ 8,826,496 92.07 % $ 758,988 $ 9,585,484 99.99 % 2011 9,869,985 9,334,157 94.57 531,493 9,865,650 99.96 2012 10,582,243 10,377,369 98.06 200,913 10,578,282 99.96 2013 10,734,608 10,581,301 98.57 151,752 10,733,053 99.99 2014 10,981,055 10,889,973 99.17 87,444 10,977,417 99.97 2015 11,402,145 11,307,924 99.17 88,837 11,396,761 99.95 2016 11,718,018 11,656,384 99.47 56,106 11,712,490 99.95 2017 12,133,656 12,073,701 99.51 51,768 12,125,469 99.93 2018 12,681,188 12,601,932 99.38 62,403 12,664,335 99.87 2019 13,020,768 12,950,561 99.46 — 12,950,561 99.46 (1) Includes fiscal disparity revenues. (2) Includes fiscal disparity revenues and is net of county/state adjustments. Source: Dakota County -131- CITY OF FARMINGTON Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities General Special Tax Certificates Net Obligation Assessment Increment of Premiums Fiscal Year Bonds(1) Bonds Bonds Indebtedness (Discounts) 2010 $ 16,629,173 $ 22,645,000 $ 320,000 $ 1,305,000 $ — 2011 15,774,072 21,010,000 265,000 1,145,000 — 2012 14,891,859 19,160,000 205,000 1,025,000 — 2013 15,467,435 18,235,000 140,000 905,000 203,702 2014 14,520,696 15,630,000 — 785,000 177,829 2015 16,496,534 13,930,000 — 660,000 277,972 2016 20,115,000 15,645,000 — 535,000 738,645 2017 12,455,000 7,455,000 — — 645,061 2018 9,155,000 5,575,000 — — 551,475 2019 8,865,000 4,355,000 — — 532,060 Note 1: Details regarding the City's outstanding debt can be found in the notes to basic financial statements. Note 2: See Demographic and Economic Statistics schedule for population and personal income information. N/A—Not Available -132- Business-Type Activities Net Total Percentage Revenue Premiums Primary of Personal Bonds (Discounts) Government Per Capita Income $ 665,000 $ — $ 41,564,173 $ 1,971 4.4 % 450,000 — 38,644,072 1,793 3.8 230,000 — 35,511,859 1,629 3.3 — — 34,951,137 1,578 3.2 — — 31,113,525 1,386 2.7 — — 31,364,506 1,386 2.6 — — 37,033,645 1,650 N/A — — 20,555,061 920 N/A — — 15,281,475 682 N/A 720,000 90,856 14,562,916 636 N/A -133- CITY OF FARMINGTON Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Less Amounts General Restricted for Market Percentage of Fiscal Obligation Repaying Value of Market Value of Year Bonds(1) Principal(2) Total Property Property 2010 $ 16,629,173 $ — $ 16,629,173 $ 1,661,903,500 1.00 % 2011 15,774,072 — 15,774,072 1,522,502,000 1.04 2012 14,891,859 — 14,891,859 1,344,600,257 1.11 2013 15,467,435 606,820 14,860,615 1,266,601,230 1.17 2014 14,520,696 852,842 13,667,854 1,311,752,463 1.04 2015 16,496,534 1,157,993 15,338,541 1,475,969,866 1.04 2016 20,115,000 7,894,089 12,220,911 1,601,441,554 0.76 2017 12,455,000 2,167,387 10,287,613 1,685,287,604 0.61 2018 9,155,000 1,588,980 7,566,020 1,810,826,485 0.42 2019 8,865,000 1,651,796 7,213,204 1,968,969,293 0.37 (1) Includes all general obligations of the City, including Capital Improvement Plan Bonds, Revenue, and Lease Revenue Bonds. (2) Amounts restricted for repaying principal for years prior to 2013 are not readily available. (3) See Demographic and Economic Statistics schedule for population and personal income information. Note: Details regarding the City's outstanding debt can be found in the notes to basic financial statements. N/A—Not Available Source: Dakota County website and Dakota County Assessor's Office -134- Percentage of Total City Total City Percentage Tax Capacity Tax Capacity of Personal Per Value Value Population(3) Income(3) Capita $ 16,808,764 98.93 % 21,086 1.80 % $ 789 16,454,036 95.87 21,558 1.61 732 14,764,729 100.86 21,806 1.38 683 13,963,167 106.43 22,154 1.27 671 14,383,917 95.02 22,446 1.24 609 16,028,316 95.70 22,622 1.32 678 17,298,609 70.65 22,451 N/A 544 18,171,280 56.61 22,343 N/A 460 19,457,656 38.88 22,421 N/A 337 21,083,287 34.21 22,880 N/A 315 -135- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Direct and Overlapping Governmental Activities Debt December 31,2019 Estimated Estimated Share of Net Debt Percentage Overlapping Governmental Unit Outstanding Applicable(1) Debt Overlapping debt Dakota County(2) $ — — % $ — ISD No. 192 Farmington 181,225,000 0.593 1,074,971 ISD No. 196 Rosemount—Apple Valley—Eagan 134,115,000 — 49 Metropolitan Council(3) 265,680,000 0.040 107,562 Total overlapping debt 581,020,000 1,182,582 Direct debt City of Farmington direct debt 13,752,060 100.000 13,752,060 Total direct and overlapping debt $ 594,772,060 $ 14,934,642 (1) The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages were estimated by determining the portion of the governmental unit's tax capacity that is within the City's boundaries and dividing it by the governmental unit's total tax capacity. (2) Dakota County did not have any outstanding general obligation debt supported by taxes at year-end. (3) The above debt includes all outstanding general obligation debt of the Metropolitan Council supported by taxes. The Metropolitan Council also has general obligation sewer revenue,wastewater revenue,and radio revenue bonds and lease obligations outstanding, all of which are supported entirely by revenues and are not included in the overlapping debt or debt ratios sections above. Note: Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that,when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,this does not imply that every taxpayer is a resident and,therefore, responsible for repaying the debt of each overlapping government. Source: Dakota County Property Taxation Office and related Comprehensive Annual Financial Reports -136- CITY OF FARMINGTON Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2010 2011 2012 2013 Debt limit $ 33,238,070 $ 45,675,060 $ 40,338,008 $ 37,998,037 Total net debt applicable to the limit 17,934,173 16,919,072 15,916,859 15,442,435 Legal debt margin $ 15,303,897 $ 28,755,988 $ 24,421,149 $ 22,555,602 Total net debt applicable to the limit as a percentage of debt limit 53.96% 37.04% 39.46% 40.64% -137- 2014 2015 2016 2017 2018 2019 $ 39,352,574 $ 44,279,096 $ 48,043,247 $ 50,558,628 $ 54,324,795 $ 59,069,079 14,520,696 16,496,534 20,115,000 12,455,000 9,155,000 8,865,000 $ 24,831,878 $ 27,782,562 $ 27,928,247 $ 38,103,628 $ 45,169,795 $ 50,204,079 36.90% 37.26% 41.87% 24.63% 16.85% 15.01% Legal Debt Margin Calculations for Fiscal Year 2019 Market value $ 1,968,969,293 Debt limit(3%of market value) 59,069,079 Debt applicable to the limit 8,865,000 Legal debt margin $ 50.204,079 -138- CITY OF FARMINGTON Pledged Revenue Coverage Last Ten Fiscal Years Less Direct Net Revenue Fiscal Gross Operating Available for Debt Service Requirements Year Revenue(a) Expenses(b) Debt Service Principal Interest Total Coverage 2010 $ 1,581,526 $ (1,191,274) $ 390,252 $ 210,000 $ 25,923 $ 235,923 165.41 % 2011 1,600,303 (1,243,796) 356,507 215,000 21,760 236,760 150.58 2012 1,787,957 (1,286,270) 501,687 230,000 7,360 237,360 211.36 2013 No longer applicable—debt repaid in full in 2013 2014 No longer applicable—debt repaid in full in 2013 2015 No longer applicable—debt repaid in full in 2013 2016 No longer applicable—debt repaid in full in 2013 2017 No longer applicable—debt repaid in full in 2013 2018 No longer applicable—debt repaid in full in 2013 2019 2,281,793 (556,474) 1,725,319 — — — N/A (a) 2010-2012 includes gross revenues of the Sewer Operations Funds.2019 includes gross revenues of the Water Fund. (b) Exclusive of depreciation. Note: Details regarding the City's outstanding debt can be found in the notes to basic financial statements. -139- CITY OF FARMINGTON Demographic and Economic Statistics Last Ten Fiscal Years Total Fiscal School Unemployment Personal Per Capita Year Population(1) Households(1) Enrollment(3) Rate(2) Income(5) Income(4) 2010 21,086 7,412 6,499 6.5 $ 934,426,090 $ 44,315 2011 21,558 7,464 6,555 5.2 1,022,905,542 47,449 2012 21,806 7,532 61560 6.1 1,068,254,134 48,989 2013 22,154 7,806 6,877 4.7 1,097,930,086 49,559 2014 22,446 7,906 7,075 3.1 1,159,941,942 51,677 2015 22,622 7,959 7,019 3.3 1,215,027,620 53,710 2016 22,451 7,657 7,074 3.4 N/A N/A 2017 22,343 7,691 7,126 2.7 N/A N/A 2018 22,421 7,779 7,138 2.7 N/A N/A 2019 22,880 7,925 7,143 3.0 N/A N/A (1) Numbers for 2010-2015 are from the Farmington Building Inspections Department.The 2016-2019 numbers are from the Metropolitan Council, which uses a more scientific and in-depth approach to estimating these values. They also have a one-year lag in reporting. (2) Minnesota Department of Employment and Economic Development-Dakota County Annual Rate. (3) Farmington School District-October enrollment count. (4) U.S.Bureau of Economic Analysis-Per capita personal income for Dakota County residents. (5) Per capita personal income for Dakota County residents multiplied by the estimated city population. N/A-Not Available -140- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Principal Employers Current Fiscal Year and Nine Years Prior 2019 2010 Percentage of Total Percentage Employees Employment Employees of Total Taxpayer (1) Rank (2) (1) Rank Employment ISD No. 192,Farmington Public Schools 925 1 18.6 % 800 1 18.0 % Federal Aviation Administration 500 2 10.0 630 2 14.2 Installed Building Solutions 500 3 10.0 — — — Trinity Care Center&Trinity Terrace 204 4 4.1 117 8 2.6 Dakota Electric Association 196 5 3.9 200 4 4.5 Marshall Lines,Inc. 190 6 3.8 210 3 4.7 City of Farmington 152 7 3.0 90 10 2.0 Valmont Industries 151 8 3.0 126 7 2.8 R&L Carriers 141 9 2.8 110 9 2.5 Kemps Dairy 125 10 2.5 134 6 3.0 River Valley Home Care — — — 196 5 4.4 Total 3,084 61.9 % 2,613 58.9 % (1) Per City of Farmington records. (2) Metropolitan Council Employment by Community as of 2018(latest available),4,985 total employment. -141- CITY OF FARMINGTON Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years- Fiscal Year 2010 2011 2012 2013 General government Administration 6.00 5.00 5.25 3.50 Finance 3.50 2.75 2.50 4.00 Human resources/information technology/communications 3.00 2.80 1.80 3.00 Community development 4.00 3.00 1.00 2.00 Total general government 16.50 13.55 10.55 12.50 Public safety Police administration 6.00 6.15 6.15 5.15 Police patrol 16.00 16.00 16.50 18.00 Investigations 7.00 7.00 6.50 5.00 Fire 1.00 1.25 1.40 1.40 Total public safety 30.00 30.40 30.55 29.55 Public works Building inspections 3.00 3.00 2.93 2.50 Engineering 2.10 2.42 2.34 5.10 Streets 4.68 4.68 4.68 10.00 Snowplowing 0.45 0.45 0.45 - Natural resources 1.12 1.02 1.02 1.00 Total public works 11.35 11.57 11.42 18.60 Parks and recreation Park maintenance 5.44 4.44 4.44 3.50 Building maintenance - - - 1.00 Recreation programming 2.00 2.00 2.00 2.00 Total parks and recreation 7.44 6.44 6.44 6.50 Senior center 1.00 1.10 1.10 1.50 Swimming pool 0.40 0.40 0.40 0.40 Arena 1.86 2.11 2.11 2.35 Liquor operations 5.00 7.25 7.25 7.25 Sewer 2.41 2.60 2.59 - Solid waste 6.38 6.38 6.38 5.00 Storm water utility 2.53 2.93 2.93 - Water 3.64 3.83 3.83 - Fleet 2.00 2.00 1.00 2.00 Total employees 90.51 90.56 86.55 85.65 Note: In addition to the above, the City has a volunteer fire department of 50 people and hires seasonal staff for its summer parks and recreation operations. Source: Various city departments -142- 2014 2015 2016 2017 2018 2019 3.50 3.00 2.00 1.00 1.00 1.00 4.00 4.50 5.50 5.50 5.50 5.50 3.00 3.00 3.00 4.00 5.00 5.00 2.50 2.50 3.00 3.00 4.00 5.00 13.00 13.00 13.50 13.50 15.50 16.50 5.15 5.15 5.15 5.15 5.00 5.00 17.00 17.00 17.00 17.00 15.00 16.00 5.00 5.00 5.00 5.00 6.00 6.00 1.40 1.50 1.50 1.50 1.00 2.00 28.55 28.65 28.65 28.65 27.00 29.00 2.50 2.50 3.20 3.50 3.50 3.00 4.60 4.50 4.50 5.50 4.50 5.00 10.00 9.00 9.50 9.50 9.00 10.00 1.00 1.00 1.00 - 1.00 1.00 18.10 17.00 18.20 18.50 18.00 19.00 3.50 3.50 3.50 3.60 4.00 4.00 1.00 1.00 1.00 1.00 1.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 6.50 6.50 6.50 6.60 7.00 9.00 1.50 1.00 1.40 1.40 1.00 1.00 0.40 0.40 0.40 0.40 - - 2.35 2.35 2.35 2.35 2.00 2.00 7.50 8.00 8.00 8.00 9.50 9.00 5.00 5.00 5.50 5.50 5.50 5.00 2.00 2.00 2.00 2.00 2.00 2.00 84.90 83.90 86.50 86.90 87.50 92.50 -143- CITY OF FARMINGTON Operating Indicators by Function Last Ten Years Fiscal Year Function/Program 2010 2011 2012 2013 General government Elections 1 N/A 1 N/A Registered voters 11,820 N/A 13,358 N/A Number of votes cast 7,002 N/A 11,185 N/A Voter participation(registered) 59.2% N/A 84.0% N/A Public safety Police Arrests 399 527 435 403 All citations and warnings* 1,848 2,253 4,359 4,517 Calls for service 12,710 13,807 15,094 13,138 Fire Medical calls 257 274 290 323 Fire calls 272 227 254 235 Inspections Building permits 907 747 818 679 Value of building permits(in millions) $ 22 $ 25 $ 17 $ 35 Parks and recreation Parks Park reservations 76 67 69 65 Pool(closed after 2017) Pool open swim admissions 13,009 11,869 13,069 11,566 Pool swim lesson registrations 405 410 407 308 Pool season passes sold 71 63 89 78 Pool punch cards sold 163 142 130 154 Swim bus riders 729 620 641 786 Rambling River Center Memberships 430 430 428 435 Program participation 11,738 15,817 16,198 16,875 Number of volunteers 107 108 152 94 Total volunteer hours 4,276 4,601 3,741 4,780 Ice arena Ice skating lessons total participants 263 195 200 215 Arena rental hours 1,171 1,271 1,197 1,147 Outdoor rinks total number of skaters 9,797 6,499 5,259 7,819 Other Recreation program/event participants 6,258 6,126 6,607 6,971 Youth scholarships provided 45 20 22 25 *Beginning in 2012,this figure includes warnings. N/A-Not Available Source:Various city departments -144- 2014 2015 2016 2017 2018 2019 1 N/A 1 N/A 1 N/A 12,541 N/A 13,788 N/A 13,403 N/A 6,419 N/A 11,545 N/A 9,632 N/A 51.0% N/A 84.0% N/A 72.0% N/A 266 153 351 281 284 253 3,383 2,494 2,070 2,021 2,484 2,176 13,035 12,085 11,943 11,221 13,033 14,005 386 359 356 452 411 480 241 361 345 407 340 370 711 619 1,184 1,036 1,059 1,049 $ 24 $ 15 $ 38 $ 19 $ 26 $ 22 66 66 81 71 64 59 8,032 7,652 7,372 6,302 - - 267 256 309 136 - - N/A N/A NA N/A - - 193 176 125 139 - - 408 536 507 496 - - 406 381 404 467 497 372 15,285 13,885 13,042 15,203 16,015 17,730 130 107 82 80 69 74 4,348 5,944 8,573 4,298 3,426 3,749 230 216 329 284 296 310 1,197 1,315 1,285 1,490 1,380 1,390 7,481 7,851 5,187 7,276 5,451 3,892 6,425 5,976 8,344 8,171 7,034 5,657 7 4 6 8 1 - -145- CITY OF FARMINGTON Capital Assets Statistics by Function/Program Last Ten Years Fiscal Year Function/Program 2010 2011 2012 2013 Public safety Police Stations 1 1 1 1 Patrol squads 18 18 17 17 Fire Stations 2 2 2 2 Fire trucks 7 7 7 7 Public works Vehicles 21 21 20 21 Streets(miles) 89 89 89 89 Parks and recreation Senior center—building 1 1 1 1 Swimming pool(closed after 2017) 1 1 1 1 Ice arena—building 1 1 1 1 Parks 21 21 21 21 Liquor operations Store—building — — — — Solid waste Compactor trucks 6 6 6 5 Sanitary sewer Collection system(miles) 84 84 84 84 Storm sewer Storm sewer(miles) 71 71 71 71 Water Water main(miles) 109 109 109 109 Wells 7 7 7 7 Water reservoirs 2 2 2 2 Source:City's financial records -146- 2014 2015 2016 2017 2018 2019 1 1 1 1 1 1 16 16 15 15 16 19 2 2 2 2 2 2 6 6 8 8 8 8 21 24 29 29 29 30 89 89 89 89 89 89 1 1 1 1 1 1 1 1 1 1 - - 1 1 1 1 1 1 23 23 23 23 24 26 5 5 5 5 5 5 84 84 84 90 90 87 71 73 73 78 78 78 109 109 109 113 113 113 7 7 7 7 7 8 2 2 2 2 2 2 -147- THIS PAGE INTENTIONALLY LEFT BLANK Management Report for City of Farmington,Minnesota December 31, 2019 THIS PAGE INTENTIONALLY LEFT BLANK PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA MMKRWilliam J.Lauer,CPA James H.Eichten,CPA C E R T I F I E D P U B L I C Aaron J.Nielsen,CPA ACCOUNTANTS Victoria L.Holinka,CPA/CMA Jadyn M.Huegel,CPA Kalen T.Karnowski,CPA To the City Council and Management City of Farmington,Minnesota We have prepared this management report in conjunction with our audit of the City of Farmington, Minnesota's (the City) financial statements for the year ended December 31, 2019. 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 May 11,2020 Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 Fax: 952-545-0569 • www.mmkr.com THIS PAGE INTENTIONALLY LEFT BLANK AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND GOVERNMENTAUDITING STANDARDS We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2019. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. AUDIT OPINION AND FINDINGS Based on our audit of the City's financial statements for the year ended December 31,2019: • We have issued an unmodified opinion on the City's basic financial statements. Our report included a paragraph emphasizing the City's implementation of Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities, during the year ended December 31, 2019. Our opinion was not modified with respect to this matter. • We reported one matter involving the City's internal control over financial reporting that we consider to be a material weakness. 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 that are required to be reported under Governmental Auditing Standards. • We reported no findings based on our testing of the City's compliance with Minnesota laws and regulations. -1- OTHER OBSERVATIONS AND RECOMMENDATIONS Impact of Novel Coronavirus(COVID-19) Shortly after the end of the 2019 fiscal year, the onset of the novel coronavirus (COVID-19) pandemic caused substantial volatility in economic conditions and tremendous disruption in the way governments, businesses, and individuals function. Minnesota cities may experience the impact of this pandemic in a myriad of financial areas, such as: declines in investment rates of return, cash flow issues, increased utility billing and property tax delinquencies, significant increases in the number and frequency of employees working remotely, challenges in processing general and payroll disbursements, disruption of prescribed internal control procedures, delays in internal and external financial reporting, and new compliance requirements attached to potential federal relief subsidies. As your city adapts to the new normal of municipal operations in a post-COVID-19 world,the assessment of and responses to new risks that may accompany operational changes will be critical to the safeguarding of city resources and sound financial stewardship. We encourage management and governance to include a robust financial risk assessment process when planning responses to these challenges, and to reassess and adapt internal controls over financial transactions and reporting to align with significant changes made to daily operations,even those intended to be temporary. SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31, 2019; however, the City implemented the following governmental accounting standards during the fiscal year: • GASB Statement No. 84, Fiduciary Activities, which established new criteria for identifying and reporting fiduciary activities. • GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements, which improved and clarified the information to be disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. 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. CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There 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. -2- ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: • Pensions and Other Post-Employment Benefits (OPEB) Liabilities — The City has recorded liabilities and activity for pension benefits and OPEB. These obligations are calculated using actuarial methodologies described in GASB Statement Nos. 68 and 75. These actuarial calculations include significant assumptions, including projected changes, healthcare insurance costs, investment returns,retirement ages,proportionate share,and employee turnover. • Depreciation — Management's estimates of depreciation expense are based on the estimated useful lives of the assets. • Compensated Absences—Management's estimate is based on current rates of pay, compensated absence balances, and the likelihood that sick leave will ultimately be paid at termination. We evaluated the key factors and assumptions used by management to develop these estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to OPEB and pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and .complex estimates involved in determining the disclosures. The financial statement disclosures are neutral,consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. DISAGREEMENTS WITH MANAGEMENT For purposes of this report, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter dated May 11,2020. MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,there were no such consultations with other accountants. -3- OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to the management's discussion and analysis (MD&A) and the pension and OPEB-related required supplementary information(RSI)that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplemental information accompanying the financial statements, which is not RSI. With respect to this supplemental information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplemental information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and statistical sections,which accompany the financial statements, but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. -4- GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City's governmental funds, which includes the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City's financial statements focuses on budgetary compliance and the sufficiency of each governmental fund's current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2018 fiscal year, local ad valorem property tax levies provided 41.5 percent of the total governmental fund revenues for cities over 2,500 in population, and 36.7 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2019 increased 5.6 percent from the prior year. The total tax capacity value of property in Minnesota cities increased about 7.1 percent for the 2019 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 2019 were based on assessed market values as of January 1, 2018), 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 7.4 percent for taxes payable in 2018 and 8.7 percent for taxes payable in 2019. The following graph shows the City's changes in taxable market value over the past 10 years: Taxable Market Value $2,000,000,000 $1,800,000,000 — $1,600,000,000 --- -- $1,400,000,000 $1,200,000,000 $1,000,000,000 - $800,000,000 - $600,000,000 $400,000,000 - $200,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -5- Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's property classification system to each property's market value. Each property classification, such as commercial or residential,has a different calculation and uses different rates. Consequently, a city's total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of 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 7.1 percent and 8.4 percent for taxes payable in 2018 and 2019,respectively. The following graph shows the City's change in tax capacities over the past 10 years: Local Net Tax Capacity $22,000,000 $20,000,000 - $18,000,000 --$16,000,000 $14,000,000 $12,000,000 $10,000,000 - $8,000,000 — $6,000,000 $4,000,000 $2,000,000 - 2010 2011 2012 2013 2014 2015 2016 2017 3018 2019 The following table presents the average tax rates applied to city residents for each of the last three levy years: Rates Expressed as a Percentage of Net Tax Capacity City of Farmington 2017 2018 2019 Average tax rate City 58.8 57.2 54.4 County 28.0 26.6 25.4 School 54.2 52.8 51.4 Special taxing 3.7 3.2 3.0 Total 144.7 139.8 134.2 Despite the City historically having a higher dependence on property taxes than the average Minnesota city, both the City portion of the tax rate and the overall tax rate on Farmington residents have been steadily declining in recent years,due to the increasing taxable market value of property within the City. -6- GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City's governmental funds during the year ended December 31,2019,presented both by fund balance classification and by fund: Governmental Funds Change in Fund Balance Fund Balance as of December 31, 2019 2018 Change Fund balances of governmental funds Total by classification Nonspendable $ 109,523 $ 116,102 $ (6,579) Restricted 3,196,214 2,009,629 1,186,585 Committed 7,298,103 7,826,959 (528,856) Unassigned 5,761,747 5,365,969 395,778 Total governmental funds $ 16,365,587 $ 15,318,659 $ 1,046,928 Total by fund General $ 5,871,270 $ 5,722,071 $ 149,199 Debt Service 2,776,623 1,624,162 1,152,461 State Aid Construction Capital Projects 127,578 116,268 11,310 Storm Water Trunk Capital Projects 3,469,379 3,171,825 297,554 Permanent Improvement Revolving Capital Projects 174,912 167,989 6,923 Maintenance Capital Projects 867,109 1,496,523 (629,414) Private Capital Projects 76,334 46,138 30,196 Nonmajor 3,002,382 2,973,683 28,699 Total governmental funds $ 16,365,587 $ 15,318,659 $ 1,046,928 In total, the fund balances of the City's governmental funds increased by $1,046,928 during the year ended December 31, 2019. The increase in restricted fund balances of$1,186,585 relates primarily to increased transfers in to the Debt Service Fund as part of the City's long-term debt management plan; and property tax, special assessment, and investment earnings that were more than needed to pay the corresponding principal and interest due on most bonds. Committed fund balance decreased $528,856, with the majority of the decrease in resources committed for future capital improvements in the Maintenance Capital Projects Fund. Unassigned fund balance increased $395,778, primarily due to a prior year commitment of$240,000 of the year-end fund balance in the General Fund to reduce the City's 2019 debt service levy. There was no similar commitment at December 31, 2019. The increase in unassigned fund balance was also due to positive operating results in the General Fund. -7- GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES The following table presents the per capita revenue of the City's governmental funds for the past three years, along with state-wide averages. We have included the most recent comparative state-wide averages available from the Office of the State Auditor to provide a benchmark for interpreting the City's data. The amounts received from the typical major sources of governmental fund revenue will naturally vary between cities based on factors such as a city's stage of development, location, size and density of its population, property values, services it provides, and other attributes. It will also differ from year-to-year, due to the effect of inflation and changes in its operation. Also, certain data in these tables may be classified differently than how they appear in the City's financial statements in order to be more comparable to the state-wide information, particularly in separating capital expenditures from current expenditures. We have designed this section of our management report using per capita data in order to better identify unique or unusual trends and activities of the City. We intend for this type of comparative and trend information to complement, rather than duplicate, information in the MD&A. An inherent difficulty in presenting per capita information is the accuracy of the population count, which for most years is based on estimates. Governmental Funds Revenue per Capita With State-Wide Averages by Population Class State-Wide City of Farmington Year December 31,2018 2017 2018 2019 Population 10,000-20,000 20,000-100,000 22,421 22,880 22,880 Property taxes $ 472 $ 493 $ 544 $ 554 $ 565 Tax increments 27 43 — — — Franchise and other taxes 48 50 12 12 11 Special assessments 40 57 24 14 27 Licenses and permits 35 47 19 20 18 Intergovernmental revenues 271 157 73 77 79 Charges for services 102 112 41 48 46 Other 78 49 19 25 37 Total revenue $ 1,073 $ 1,008 $ 732 $ 750 $ 783 The City's governmental fund revenues for 2019 were $17,932,047, an increase of $798,315 (4.7 percent), or $33 per capita, from the prior year. Revenue from property taxes was $11 per capita higher than the prior year, due to a 2.7 percent increase in the City's adopted levy. Special assessment revenue was $13 per capita higher than last year,mainly attributable to a decrease in delinquencies. Other revenue increased$12 per capita from last year,mainly due to an increase in investment earnings in 2019. The City has historically received more of its governmental fund revenue from property taxes than the average Minnesota city, due to the lower than average amount of aid it typically receives from the state and the debt levies for the City's capital improvement bonds. -8- The expenditures of governmental funds will also vary from state-wide averages and from year-to-year, based on the City's circumstances.Expenditures are classified into three types as follows: • Current — These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. • Capital Outlay and Construction—These expenditures do not occur on a consistent basis,more typically fluctuating significantly from year-to-year. Many of these expenditures are project-oriented, and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects. • Debt Service—Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources, such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The City's expenditures per capita of its governmental funds for the past three years, together with state-wide averages, are presented in the following table: Governmental Funds Expenditures per Capita With State-Wide Averages by Population Class State-Wide City of Farmington Year December 31,2018 2017 2018 2019 Population 10,000-20,000 20,000-100,000 22,421 22,880 22,880 Current General government $ 121 $ 104 $ 91 $ 101 $ 105 Public safety 272 294 247 234 249 Streets and highways 125 106 106 118 143 Culture and recreation 115 104 71 70 81 All other 74 78 2 1 2 707 686 517 524 580 Capital outlay and construction 351 307 26 70 206 Debt service Principal 153 109 285 226 106 Interest and fiscal charges 39 29 36 22 18 192 138 321 248 124 Total expenditures $ 1,250 $ 1,131 $ 864 $ 842 $ 910 Total expenditures in the City's governmental funds for 2019 were $20,854,688, an increase of $1,598,329 (8.3 percent), or $68 per capita, from the previous year. Current governmental expenditures for 2019 were $56 per capita higher than last year, mainly in expenditures for streets and highways ($25 per capita) and public safety ($15 per capita). Capital outlay expenditures were $136 per capita higher than last year, primarily due to an increase in street improvement project activity. These increases were offset by a$124 per capita decrease in debt service,due to the City refunding or exercising early call provisions on a number of outstanding debt issues in recent years. -9- GENERAL FUND The City's General Fund accounts for the financial activity of the basic services provided to the community. The primary services included within this fund are the administration of the municipal operation,police and fire protection, building inspection, 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 and transfers out to reflect the change in the size of the General Fund operation over the same period. General Fund Financial Position Year Ended December 31, $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 [A $— 2015 2016 2017 2018 2019 Fund Balance $4,744,818 $5,065,291 $5,700,712 $5,722,071 $5,871,270 o Cash(Net) $3,385,793 $3,875,421 $4,493,060 $4,555,548 $4,676,267 Exp&Trans Out $11,006,155 $12,228,226 $11,767,128 $12,801,620 $13,199,638 The City's General Fund cash and investments, net of interfund borrowing at December 31, 2019 was $120,719 higher than at the previous year-end. Total fund balance at December 31, 2019 of$5,871,270 represented an increase of$149,199 from the prior year,as compared to a budgeted decrease of$240,000. As the graph illustrates,the City has generally been able to maintain healthy cash and fund balance levels as the volume of financial activity has grown. 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. A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual cash flow experienced throughout the year. The City's General Fund cash disbursements are made fairly evenly during the year other than the impact of seasonal services,such as snowplowing, street maintenance, and park activities. Cash receipts of the General Fund are quite a different story. Property taxes comprise about 80.3 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 of$5,761,747 at the end of the 2019 fiscal year represented approximately 42.2 percent of budgeted expenditures and transfers out for 2020. This is within the City's policy that calls for maintaining an unassigned fund balance of between 40.0-50.0 percent of the subsequent year's budgeted expenditures and transfers out. -10- The following graph reflects the City's General Fund revenue sources for 2019 compared to budget: General Fund Revenue Budget and Actual Property Taxes Intergovernmental Fines and Forfeits Charges for Services Licenses and Permits All Other 8! dn2 8? 8Sr Pr X86 P,> 8� 89 81 '0, '0 o�DOO ,O 10OO '0, '0 o 10,90o�OOO o�OOO '0, '0 OOQ �OOO o -000 ■Budget ■ Actual General Fund revenue for 2019 was $12,104,581, which was $341,043 (2.9 percent) more than budget. Intergovernmental revenue exceeded budget by $192,800, as fire pension and training aid, police aid, and miscellaneous state and federal grants were higher than projected. Charges for services exceeded budget by $64,022, mainly due to fire charges exceeding expectations. All other revenue, which includes investment earnings,was$131,530 more than budgeted primarily due the increase in the fair values of the City's investments. Revenue from licenses and permits was $25,168 more than budget, as plumbing and heating permits were higher than anticipated.Revenue from court fines also exceeded budget by$21,561. The following graph presents the City's General Fund revenues by source for the last five years. The graph reflects the City's reliance on property taxes and other local sources of revenue: General Fund Revenue by Source Year Ended December 31, $10,000,000 $9,000,000 $8,000,000 - $7,000,000 $6,000,000 f - - -- - -- - -- - $5,000,000 $4,000,000 -- - - $3,000,000 $2,000,000 -- -. — -— $1,000,000 $-- Property Fines and Charges for Licenses Taxes Intergovernmental Forfeits Services and Permits All Other 02015 $8,485,373 $905,130 $52,299 $507,555 $370,889 $187,997 02016 $8,973,628 $937,424 $41,750 $577,905 $650,311 $217,498 02017 $9,142,126 $926,926 $45,102 $518,912 $415,005 $202,478 02018 $9,450,249 $965,250 $60,182 $479,637 $449,350 $221,935 ■2019 $9,714270 $1,085,065 $63,561 $502,902 $421,578 $317,205 Total General Fund revenue for 2019 was $477,978 (4.1 percent) higher than last year. Property taxes were $264,021 higher than last year, due to the increased tax levy. Intergovernmental revenues increased $119,815 from last year, mainly in federal aid and fire training aid. "All other" revenue, which includes investment earnings, increased$95,270,due to the increase in the fair values of the City's investments. -11- The following graph illustrates the components of General Fund spending for 2019 compared to budget: General Fund Expenditures Budget and Actual General Government Public Safety Public Works Parks and Recreation Economic Development `8'J 86 00° �Oo •s �O �s �O �s '0 's 'Og "r '0, '9 00 00 °o000� 00 2b 0 '00 '00 '00 '0 O0 '0 '0 '0 '0 '00O 1000 10 0OO0O0O0O0O O O ■Budget ■ Actual General Fund expenditures for 2019 were $11,968,500, which was $48,156 (0.4 percent) under budget. Expenditures were under budget in almost every category,with the largest savings in general government ($108,682)and parks and recreation($22,179). 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, $6,000,000 $5,000,000 - $4,000,000 -- - $3,000,000 - — - - $2,000,000 - - $1,000,000 $- GeneralParks and Economic Government Public Safety Public Works Recreation Development 02015 $1,946,663 $5,081,605 $1,977,495 $1,188,042 $96,343 ■2016 $1,996,410 $5,303,440 $1,941,856 $1,208,035 $41,178 02017 $1,984,002 $5,461,319 $2,094,946 $1,232,069 $40,000 ■2018 $2,248,227 $5,406,394 $2,278,842 $1,217,733 $30,000 E20191 $2,369,885 1 $5,733,766 1 $2,605,435 $1,209,414 $50,000 Total General Fund expenditures for 2019 were$787,304(7.0 percent)higher than the previous year. The largest increase was in public safety expenditures, which were $327,372 higher than last year, due to personnel additions and increased training costs. Public works expenditures were $326,593 higher than last year,also due to personnel additions,as well as increased snow removal costs. -12- ENTERPRISE FUNDS OVERVIEW The City maintains several enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City's enterprise funds,which includes the Liquor Operations, Sewer Operations, Solid Waste, Storm Water, Water,and Street Light funds. ENTERPRISE FUNDS FINANCIAL POSITION The following table summarizes the changes in the financial position of the City's enterprise funds during the year ended December 31,2019,presented both by classification and by fund: Enterprise Funds Change in Financial Position Net Position as of December 31, 2019 2018 Change Net position of enterprise funds Total by classification Net investment in capital assets $ 53,677,776 $ 50,747,479 $ 2,930,297 Restricted—future drinking water treatment plant 2,461,488 2,316,500 144,988 Unrestricted 13,187,014 14,594,293 (1,407,279) Total enterprise funds $ 69,326,278 $ 67,658,272 $ 1,668,006 Total by fund Liquor Operations $ 1,606,511 $ 1,338,985 $ 267,526 Sewer Operations 20,258,195 20,554,396 (296,201) Solid Waste 1,782,038 1,437,110 344,928 Storm Water 14,861,023 14,419,468 441,555 Water 30,607,578 29,764,930 842,648 Street Light 210,933 143,383 67,550 Total enterprise funds $ 69,326,278 $ 67,658,272 $ 1,668,006 In total, the net position of the City's enterprise funds increased by $1,668,006 during the year ended December 31, 2019. The City's net investment in capital assets increased$2,930,297 during the year, due to significant capital assets contributed from the governmental funds, or completed and capitalized in the current year. This resulted in a corresponding decrease in unrestricted net position of$1,407,279, offset by almost all of the City's enterprise operations having positive operating results for the year prior to transfers out. The enterprise funds transferred $2,970,207 to the governmental and internal service funds during the year to support the General Fund,help pay for capital improvements,and for debt service. -13- LIQUOR OPERATIONS FUND The following graph presents five years of comparative operating results for the City's Liquor Operations Fund: Liquor Operations Fund Year Ended December 31, $6,000,000 $5,500,000 $5,000,000 $4,500,000 $4,000,000 $3,500,000 - $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2015 - 2016 2017 2018 2019 0 Sales $4,607,417 $4,742,313 $4,967,468 $5,256,645 $5,608,012 0 Cost of Sales $3,467,487 $3,537,858 $3,707,363 $3,923,968 $4,183,615 0OperExp $885,110 $911,074 $927,125 $966,336 $1,073,621 0Oper Income $254,820 $293,381 $332,980 $366,341 $350,776 The City's Liquor Operations Fund ended 2019 with a total net position of$1,606,511, an increase of $267,526 from the prior year. Of this$11,475 represents the investment in liquor capital assets,leaving an unrestricted net position of$1,595,036 The Liquor Operations Fund had gross sales of$5,608,012 in 2019, an increase of$351,367(6.7 percent) from the previous year. Gross profit was $1,424,397,about 25.4 percent of sales,which is consistent with the prior year. Operating expenses for 2019 increased$107,285 (11.1 percent)from the previous year, mainly in salaries and benefits and professional services. -14- SEWER OPERATIONS FUND The following graph presents five years of comparative operating results for the City's Sewer Operations Fund: Sewer Operations Fund Year Ended December 31, $2,500,000 $2,250,000 $2,000,000 $1,750,000 - $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 1 $(250,000) 2015 2016 2017 2018 2019 OOperRev $1,957,902 $2,043,859 $2,068,388 $2,045,728 $2,117,934 �OperExp $1,873,412 $2,049,273 $2,107,816 $1,930,839 $2,310,312 Oper Inc(Loss) $84,490 $(5,414) $(39,428) $114,889 $(192,378) Inc Before Depr $679,364 $591,786 $556,961 $711,639 $421,184 The Sewer Operations Fund ended 2019 with a total net position of$20,258,195, a decrease of$296,201 from the prior year. Of this, $17,132,644 represents the investment in sewer collection system capital assets, leaving an unrestricted net position of$3,125,551. Operating revenue in the Sewer Operations Fund increased$72,206(3.5 percent)from the prior year, due to an increase in sewer rates. Operating expenses for 2019 were $379,473 (19.7 percent) higher than the previous year. The largest factors contributing to the change were increases of approximately $175,000 in disposal fees paid to Metropolitan Council Environmental Services and approximately$201,000 in contracted services. -15- SOLID WASTE FUND The following graph presents five years of comparative operating results for the City's Solid Waste Fund: Solid Waste Fund Year Ended December 31, $2,400,000 $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $(200,000) 2015 2016 2017 2018 2019 Doper Rev $1,991,179 $2,041,561 $2,061,324 $2,071,672 $2,244,569 �0per Exp $1,658,128 $1,775,162 $1,864,175 $2,101,344 $1,941,102 Oper Inc(Loss) $333,051 $266,399 $197,149 $(29,672) $303,467 Inc Before Depr $385,496 $346,778 $305,022 $51,763 $379,383 The Solid Waste Fund ended 2019 with a total net position of$1,782,038, an increase of$344,928 from the prior year. Of this, $471,454 represents the investment in solid waste operation capital assets, leaving an unrestricted net position of$1,310,584. Operating revenue in the Solid Waste Fund increased $172,897 (8.3 percent) from the prior year, due to an increase in solid waste rates. Operating expenses for 2019 were $160,242 (7.6 percent) less than the previous year, mainly due to a decrease of about$184,000 in tipping fees charged to the City for solid waste disposal. -16- STORM WATER FUND The following graph presents five years of comparative operating results for the City's Storm Water Fund: Storm Water Fund Year Ended December 31, $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 — $500,000 $400,000 $300,000 -- -- $200,000 $100,000 $— $(100,000) 2015 2016 2017 2018 2019 oOperRev $670,353 $643,479 $647,767 $737,115 $1,130,563 �Oper Exp $731,444 $534,988 $551,793 $533,465 $553,584 Oper Inc(Loss) $(61,091) 5108.491 $95,974 1 $203,650 $576,979 Inc Before Depr $339.516 ,520.482 $508,053 $628,404 $1,014,979 The Storm Water Fund ended 2019 with a total net position of$14,861,023,an increase of$441,555 from the prior year. Of this, $13,321,431 represents the investment in storm water operation capital assets, leaving an unrestricted net position of$1,539,592. Operating revenue in the Storm Water Fund increased$393,448 (53.4 percent)from the prior year, due to an increase in storm water rates. Operating expenses for 2019 were $20,119 (3.8 percent) higher than the previous year, mainly due to an increase in depreciation expense. -17- WATER FUND The following graph presents five years of comparative operating results for the City's Water Fund: Water Fund Year Ended December 31, $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 $1,800,000 - $1,600,000 - I $1,400,000 - $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 2015 2016 2017 2018 2019 oOperRev $1,439,873 $1,631,643 $1,681,079 $1,852,381 $2,281,793 �0per Exp $1,339,420 $1,359,111 $1,313,735 $1,247,662 $1,393,568 Oper Inc(Loss) $100,453 $272,532 $367,344 $604,719 $888,225 -- Inc Ilcfore Depr $924,944 $1,042,252 $1,134,553 $1,335,659 $1,725,319 The Water Fund ended 2019 with a total net position of$30,607,578, an increase of$842,648 from the prior year. Of this, $22,740,772 represents the investment in water distribution system capital assets, $2,461,488 is restricted for a future drinking water treatment plant, and unrestricted net position is $5,405,318. Operating revenue in the Water Fund for 2019 increased $429,412 (23.2 percent) from the prior year, mainly due to water quality management fees and trunk charges from new development, as well as an increase in water rates. Water Fund operating expenses for 2019 were $145,906 (11.7 percent) higher than the previous year, mainly due to increases in supplies and depreciation. -18- STREET LIGHT FUND The following graph presents five years of comparative operating results for the City's Street Light Fund: Street Light Fund Year Ended December 31, $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- $(50,000) $(100,000) 2015 2016 2017 2018 2019 OOper Rev $222,159 $224,781 $225,570 $226,674 $226,971 Oper Exp $173,212 $288,924 $197,150 $180,254 $165,886 Oper Inc(Loss) $48,947 $(64,143) $28,420 $46,420 $61,085 Street Light Fund operating revenue for 2019 increased$297(0.1 percent)from the prior year. Operating expenses were$14,368 (8.0 percent) lower than the previous year, as expenses for professional services having been unusually high in recent years, due to the City switching over to LED lights and replacing some traffic lights. Unrestricted net position increased$67,550 in 2019,ending the year at$210,933. -19- THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENT-WIDE FINANCIAL STATEMENTS In addition to fund-based information,the current reporting model for governmental entities also requires the inclusion of two government-wide financial statements designed to present a clear picture of the City as a single, unified entity. These government-wide financial statements provide information on the total cost of delivering services,including capital assets and long-term liabilities. STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what 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 leftover to use for providing services after its debts are settled.However,those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components: net investment in capital assets,restricted,and unrestricted. The following table presents the components of the City's net position as of December 31, 2019 and 2018, for governmental activities and business-type activities: As of December 31, 2019 2018 Change Net position Governmental activities Net investment in capital assets $ 33,867,761 $ 32,909,853 $ 957,908 Restricted 5,343,074 4,797,191 545,883 Unrestricted 8,001,782 7,997,614 4,168 Total governmental activities 47,212,617 45,704,658 1,507,959 Business-type activities Net investment in capital assets 53,677,776 50,747,479 2,930,297 Restricted 2,461,488 2,316,500 144,988 Unrestricted 13,187,014 14,594,293 (1,407,279) Total business-type activities 69,326,278 67,658,272 1,668,006 Total net position $ 116,538,895 $ 113,362,930 $ 3,175,965 The City's total net position at December 31, 2019 was $3,175,965 higher than the previous year-end. The City's net position increased $1,507,959 from current year governmental activities and $1,668,006 from current year business-type activities. The governmental activities net investment in capital assets increased$957,908 and the restricted portion of governmental activities net position increased $545,883 in 2019, mainly due to the current year street improvement project activity and improvement in the Debt Service Fund's fund balance as previously mentioned. The business-type activities net investment in capital assets increased $2,930,297 in 2019, mainly due to significant construction completed and capitalized in the current year. As previously discussed, this resulted in a corresponding decrease in the unrestricted portion of the business-type activities net position of$1,407,279, offset by the positive operating results of almost all of the City's enterprise operations. -20- STATEMENT OF ACTIVITIES The Statement of Activities tracks the City's yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used,depreciation of long-lived capital assets,and other accrual-based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2019 and 2018: 2019 2018 Program Expenses Revenues Net Change Net Change Net(expense)revenue Governmental activities General government $ 2,609,059 $ 567,739 $ (2,041,320) $ (2,005,939) Public safety 6,118,203 996,873 (5,121,330) (4,856,182) Public works 5,612,872 1,217,082 (4,395,790) (2,954,833) Parks and recreation 2,202,631 607,260 (1,595,371) (1,050,089) Economic development 50,000 — (50,000) (30,000) Interest on long-term debt 404,893 — (404,893) (350,431) Business-type activities Liquor 5,257,236 5,608,012 350,776 366,341 Sewer 2,326,630 2,117,934 (208,696) 114,452 Solid waste 1,913,258 2,357,071 443,813 9,091 Storm water 557,749 1,130,563 572,814 215,650 Water 1,439,178 2,285,115 845,937 605,714 Street light 165,886 226,971 61,085 46,420 Total net(expense)revenue $ 28,657,595 $ 17,114,620 (11,542,975) (9,889,806) General revenues Property taxes 12,916,115 12,659,480 Franchise taxes 262,148 266,324 Unrestricted grants 317,172 316,100 Investment earnings 1,206,287 439,858 Gain on disposal of capital assets 17,218 531 Total general revenues 14,718,940 13,682,293 Change in net position $ 3,175,965 $ 3,792,487 One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the way the City's governmental and business-type operations are financed. The table clearly illustrates the dependence of the City's governmental operations on general revenues, such as property taxes and unrestricted grants. It also shows that, for the most part, the City's business-type activities are generating sufficient program revenues (service charges and program-specific grants) to cover expenses. This is critical given the current downward pressures on the general revenue sources. The difference in the year-to-year net change in the public works function was mainly due to the current year spending on street maintenance, as well as personnel additions and increased snow removal costs as previously discussed. -21- LEGISLATIVE UPDATES The 2019 legislative session began with a projected state general fund surplus of$1.052 billion. The legislative agenda was primarily focused on setting an operating budget for the state's fiscal 2020-2021 biennium. At the end of the regular session, only a higher education budget bill had been completed. However, after a special session, the Legislature was able to address the 11 remaining budget bills, as well as pass an omnibus tax bill and small pension bill. The following is a brief summary of specific legislative changes from the 2019 session or previous legislative sessions potentially impacting Minnesota cities. Local Government Aid (LGA)— An additional $26 million was added to the appropriation for the city LGA formula beginning in fiscal 2020, bringing the total state-wide appropriation to $560.4 million. An additional $4 million was added to the appropriation beginning in fiscal 2021. The LGA distribution formula for 2020 was altered to provide that a city's 2020 LGA may not be less than its 2019 aid, and the cap on maximum aid losses in any year thereafter was modified. Bonding Bill—The 2019 bonding bill provided financing for approximately $102 million of projects and funding authorized by the 2018 omnibus bonding bill, which had been legally challenged due to their reliance on the use of the Environment and Natural Resources Trust Fund to generate appropriation bonds. The 2019 Legislature changed the funding source for these projects to general obligation bonds, clearing the way for the projects to go forward. Included in this was $59 million earmarked for city water and wastewater projects through the state Public Facilities Authority. Local Option Sales Tag Process —Effective May 1, 2019, the process for cities to enact a local option sales tax have been modified, requiring special legislation prior to a local referendum vote. Cities must now adopt a resolution specifying the proposed sales tax rate and time frame for the sales tax. The resolution must also include a detailed description of the project or projects (up to five) to be funded by the sales tax, the amount to be raised for each project, and documentation of the regional significance of each project. The resolution must be submitted to the House and Senate tax committee chairs by January 31st to be considered for special legislation by the State Legislature. If special legislation is approved, voter approval must be obtained by referendum at a general election within two years of legislative approval. Wage Theft—The Legislature enacted a number of changes in employment law aimed at reducing wage theft by employers. The changes require employers to provide written notice to new employees of specific wage information including rate of pay, allowances, paid leave, deductions, days in a pay period, and the employer's legal name, address, and phone number. Employers must also provide an earnings statement that includes similar information. The changes also create new requirements for employer recordkeeping for hours worked each day and each workweek, and imposes penalties for failure to do so and for refusal to make the records available for inspection by the Department of Labor. Written Estimates of Consulting Fees — Effective August 1, 2019, upon request by applicants for a permit, license, or other approval relating to real estate development or construction, cities are required to provide a written, nonbinding estimate of consulting fees to be charged to the applicant based on information available at that time. The related application will not be considered complete until the city has provided the estimate, received the required application fees, and received the applicant's signed acceptance of the fee estimate along with a signed statement that the applicant has not relied on the fee estimate in its decision to proceed with the application. Contract Retainage — Effective for contracts entered into August 1, 2019 or later, contract retainage must be released no later than 60 days after the related construction project reaches substantial completion as defined by statute. After substantial completion, cities can still withhold amounts equal to, 1)250 percent of the cost to correct or complete work known at the time of substantial completion, and 2)the greater of $500 or 1 percent of the value of the contract pending the completion of "final paperwork," including documents required to fulfill contractual obligations such as operating manuals, payroll documents for projects subject to prevailing wage requirements, and contractor payroll tax withholding affidavits. Any resulting reduction in retainage must be passed from the contractor to all subcontractors at the same rate. -22- Driver and Vehicle Registration System (VTRS)—The Legislature selected VTRS, a third party vendor system, to replace the failed Minnesota Licensing and Registration System (MNLARS). Fees from driver's licenses, license plates, and filing fees were increased and a technology surcharge imposed on vehicle registration renewals to pay for the implementation of VTRS,the decommissioning of MNLARS, and to temporarily increase the capacity of Driver and Vehicle Services to meet public service needs. Included in this is $13 million appropriated in 2019 for reimbursement grants to deputy registrars for costs related to MNLARS. The grants, which would be determined by formula, would require the deputy registrar accepting the grant to release the state from any further liability or claims related to MNLARS. Vaping Ordinance Authority — Effective July 1, 2019, cities are allowed to enact and enforce ordinances with more stringent measures than the Minnesota Clean Indoor Air Act to protect individuals from involuntary exposure to aerosol or vapor from electronic delivery devices. Water Connection Fees—Effective January 1, 2020,the annual water connection fees cities are required to collect on behalf of the Minnesota Department of Health for water testing and support has been increased from $6.36 to$9.72. Military Exception to Open Meeting Law— Effective August 1, 2019, members of a public body that are in the military will be allowed to participate in public meetings via interactive television when they are at a required drill, deployed, or on active duty. The member may participate under this exception up to three times a year. Pension Plan Changes — The 2019 pension bill included several changes to the various pension plans throughout the state: • Changes to plans administered by the Public Employees Retirement Association (PERA) included: o The rights of PERA General Employees Retirement Fund (GERF) plan and Public Employees Police and Fire Fund (PEPFF) plan members to purchase service credit for periods of military leave were expanded. This gives plan members the right to purchase up to five years of service credit for military service leave that is not federally protected because the service occurred prior to public employment or the member did not meet the payment deadlines applicable to federally protected leave service credit purchases. o The Phased Retirement Option (PRO) program, which gives cities an opportunity to retain potentially retiring employees that are GERF plan members aged 62 or over, was altered and made permanent. Under a PRO arrangement, an employee would begin collecting a retirement annuity, but could continue working for their current employer for up to five years if they agree to a work schedule that represents a reduction of at least 25 percent each pay period from their current schedule, up to a maximum of 1,044 hours per year. Employees would not be allowed to contribute to a pension benefit plan or accrue additional service time while working under a PRO. o A process was established for municipalities and joint powers entities to terminate participation in the PERA Statewide Volunteer Firefighter (SVF) plan if, 1) the entity has either eliminated its fire department or ceased using the services of all departing firefighters and any other noncareer or volunteer firefighters, and 2) the entity's account has assets sufficient to cover all liabilities including the fully vested liabilities for all departing firefighters and administrative expenses. -23- • Changes impacting volunteer firefighter relief associations(VRFAs)included: o Effective January 1, 2020, vesting schedules for defined contribution plans cannot require that a member have more than 20 years of active service to become 100 percent vested in the member's account, or provide for a larger vesting percentage with respect to the completed years of service than as provided in the statutory schedule. o Effective January 1, 2020, the permitted graded vesting schedule for defined benefit pension plans is reduced from 20 years to 10 years for full vesting. Also, plans cannot require that a member have more than 20 years of active service to become 100 percent vested in the member's accrued service pension, or provide for a larger vesting percentage with respect to the completed years of service than as provided in the statutory schedule. o Effective January 1, 2020, supplemental benefits are allowed to be paid to designated beneficiaries or estates when plan members have no surviving spouse or children. -24- THIS PAGE INTENTIONALLY LEFT BLANK ACCOUNTING AND AUDITING UPDATES The following is a summary of GASB standards expected to be implemented in the next few years. However, due to the COVID-19 outbreak, the GASB is currently considering a proposal to delay the original implementation dates of these and other standards by a year. At this point, the implementation dates for the standards listed below are tentative and may be subject to change. GASB STATEMENT No.87,LEASES A lease is a contract that transfers control of the right to use another entity's nonfinancial asset as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this definition should be accounted for under the leases guidance, unless specifically excluded in this statement. Governments enter into leases for many types of assets. Under the previous guidance, leases were classified as either capital or operating depending on whether the lease met any of the four tests. In many cases, the previous guidance resulted in reporting lease transactions differently than similar nonlease financing transactions. The goal of this statement is to better meet the information needs of users by improving accounting and financial reporting for leases by governments. It establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. This statement increases the usefulness of financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. Under this statement, a lessee is required to recognize a lease liability and an intangible right to use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. To reduce the cost of implementation, this statement includes an exception for short-term leases, defined as a lease that, at the commencement of the lease term, has a maximum possible term under the lease contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Lessees and lessors should recognize short-term lease payments as outflows of resources or inflows of resources, respectively, based on the payment provisions of the lease contract. The requirements of this statement are effective for reporting periods beginning after December 15,2019. GASB STATEMENT No.91,CONDUITDEBT OBLIGATIONS The primary objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2)arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. -25- A conduit debt obligation is defined as a debt instrument having all of the following characteristics: • There are at least three parties involved: (1) an issuer, (2) a third party obligor, and (3) a debt holder or a debt trustee. • The issuer and the third party obligor are not within the same financial reporting entity. • The debt obligation is not a parity bond of the issuer, nor is it cross-collateralized with other debt of the issuer. • The third party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt issuance. • The third party obligor, not the issuer, is primarily obligated for the payment 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 obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. The requirements of this statement are effective for reporting periods beginning after December 15,2020. Earlier application is encouraged. -26- CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA Special Purpose Audit Reports Year Ended December 31,2019 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA Special Purpose Audit Reports Year Ended December 31,2019 Table of Contents Page Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1-2 Independent Auditor's Report on Minnesota Legal Compliance 3 Schedule of Findings and Responses 4 THIS PAGE INTENTIONALLY LEFT BLANK PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA MMKRWilliam J.Lauer,CPA James H.Eichten,CPA C E RT I F I E D PUBLIC Aaron J.Nielsen,CPA ACCOUNTANTS Victoria L.Holinka,CPA/CMA Jaclyn M.Huegel,CPA Kalen T.Karnowski,CPA INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the City Council and Management City of Farmington,Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Farmington, Minnesota (the City) as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 11,2020. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements,we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis.A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and,therefore,material weaknesses or significant deficiencies may exist that were not identified. We did identify one deficiency in internal control, described in the accompanying Schedule of Findings and Responses as item 2019-001, that we consider to be a material weakness. (continued) -1- 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 COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements,noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CITY'S RESPONSE TO FINDING The City's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and,accordingly,we express no opinion on it. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this report is not suitable for any other purpose. Wo&.&7, *vx4pa.., Minneapolis,Minnesota May 11, 2020 -2- PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA MMKRWilliam J.Lauer,CPA James H.Eichten,CPA C E R T I F I E D P U B L I C Aaron J.Nielsen,CPA ACCOUNTANTS Victoria L.Holinka,CPA/CMA Jaclyn M.Huegel,CPA Kalen T.Karnowski,CPA INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of Farmington,Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Farmington, Minnesota (the City) as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 11,2020. MINNESOTA LEGAL COMPLIANCE In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our .attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly,this report is not suitable for any other purpose. K4A4 Minneapolis,Minnesota May 11,2020 -3- Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Schedule of Findings and Responses Year Ended December 31,2019 MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING 2019-001 INADEQUATE SEGREGATION OF DUTIES Criteria—Internal control over financial reporting. Condition — The City of Farmington, Minnesota (the City) has inadequate segregation of duties in a number of areas,including,but not limited to, controls over payroll. Context—This is a current year and prior year finding. Cause— The inadequate segregation of duties is primarily caused by the limited size of the City's Finance Department staff. Effect—One important element of internal accounting controls is an adequate segregation of duties such that no one individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. A lack of segregation of duties subjects the City to a higher risk that errors or fraud could occur and not be detected in a timely manner in the normal course of business. Recommendation — We recommend that the City continue to review its accounting procedures and internal controls to segregate accounting functions wherever it is considered practical and 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 maximize the segregation of duties in all areas within the limits of the staff available. However, the City does not consider it cost-beneficial at this time to increase the size of its Finance Department staff in order to further segregate accounting functions. -4- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Comprehensive Plan Amendments and Rezoning of the Christensen Property located at 20861 Flagstaff Avenue DATE: May 18, 2020 INTRODUCTION Summergate Companies has applied for Comprehensive Plan Amendments and Rezoning of the property located at 20861 Flagstaff Avenue and owned by Jay and Patricia Christensen. The Comprehensive Plan Amendments are to change the 2040 Comprehensive Plan's MUSA and Development Staging plans for the 40.00 acre parcel of land legally described and depicted in the attached survey(Exhibit A)from 2040 to 2020,thereby placing it into MUSA (Metropolitan Urban Service Area) immediately. The rezoning request is to change the zoning of the property described and depicted in Exhibit A from A-1 (Agriculture) to R-3 (Medium Density Residential) Planned Unit Development. DISCUSSION Subject Property and Surrounding Development and Landuses The subject property(20861 Flagstaff Avenue) consists of 40.00 acres and is owned by Jay and Patricia Christensen. Adjacent landuses consist of the following: • Farmington High School is located to the north. • Agricultural lands to the west. • The single-family development Regetta Fields is located to the south. • Several single-family homes on larger lots adjacent to the east. For reference, I have attached (Exhibit B)the 2040 Comprehensive Plan Landuse Map depicting the location of the subject property. Intended Use Summergate Companies is the contract purchaser of the property and is looking to plat the property into a single-family development. Attached as Exhibit C is a development concept plan that shows 113 single- family lots developed over 40.00 acres with a net density of 3.90 units per acre. The property was guided Medium Density Residential in the 2040 Comprehensive Plan. As previously mentioned the applicant is requesting that the property be rezoned to R-3 PUD. By rezoning it to R-3 the property would be brought into compliance with the approved land use guidance of the 2040 Comprehensive Plan. The subdivision would have to be approved as a Planned Unit Development to allow flexibility with density on the site while also allowing single-family dwellings in the R-3 zone. Planning Commission Review The Planning Commission met on May 12, 2020 and held a public hearing concerning these applications. After taking public testimony on the applications the Planning Commission voted 5-0 to recommend approval of the proposed Comprehensive Plan Amendments and Rezoning to the City Council. Staff did receive an email (attached) after the Planning Commission meeting from Mr. David Christopherson (20993 Flagstaff Avenue) regarding this item. His concerns involve the speed limit on Flagstaff Avenue and ground water issues. BUDGET IMPACT NA ACTION REQUESTED The Planning Commission recommendation to the City Council is to approve the following requests: 1. A resolution amending the 2040 Comprehensive Plan changing the M USA and Development Staging plans for the 40.00 acre parcel located at 20861 Flagstaff Avenue from 2040 to 2020. 2. An ordinance rezoning the 40.00 acre parcel located at 20861 Flagstaff Avenue from A-1 (Agriculture)to R-3 (Medium Density Residential) Planned Unit Development. ATTACHMENTS: Type Description o Backup Material Christopherson email D Backup Material Exhibit A-survey © Backup Material Exhibit B-2040 Comp Plan D Backup Material Exhibit C-Concept Plan D Resolution Resolution D Ordinance Ordinance Tony Wippler From: David McKnight Sent: Wednesday, May 13,2020 8:16 AM To: Tony Wippler Subject: FW:planning commission Please include this in your packet item. -----Original Message-- From:1))Oavid Christopherson _ Sent:Tuesday,May 12,2020 8:32 PM To:David McKnight<DMcKnight@farmingtommn.gov>;David McKnight<DMcKnight@farmingtommn.gov> Subject: planning commission Mr. McNight In regards to the planning commission meeting om May 12,20201 was unable to ZOOM this meeting. I have an interest in the rezoning of the Christiansen property as two sides of my property adjoin this section. l spoke with Mr.Wippler on May 11 and no option was given to me,other than this note I am sending you now. Our concerns are the same as they were when the Regetta project was approved. That being the unsafe speed limit on Flagstaff Ave.and the on going ground water problems. David Christopherson Farmington tax payer for 20 years. David McKnight City Administrator Main:651-280-6800 1 Direct:651-280-6801 430 Third St. Farmington, MN 55024 City of Farmington i 1 9n0 0 20p ,GG I •::-1::• •_ , _; I I I 100 0 ,W 200 N89'60'28'$ 1020.00 I ^ PARCEL B _ .ar�< _ a ~e NBC60'86$ I scALF w rtFr ———— --—- _- — — ——— 266.00 LEGENO mEw nvs Wn.., l ®oa E sv�e 4 -10 LEE �ry PARCEL B � EXCEPTION 6 G � m. PROPERTY DESCRIPTION K r PARCEL A =.�..��.,. � a '., TOTAL SITE AREA a.w„��..�n��T T — — 40.00 AC. � �t ' PARCEL Bd'�„ EXCEPTION I m 1' PARCEL B I I• � ' , PARCEL A it a °ua°e I” a,.. . � « . �,..._. •_•• �,N8lT49'99"E 371.0E . z PARCE A �," N9Lra999 a 94 0.81 XCEPT ._.. � TA �,.m„. .....d..ro....� xpw.a11 ervpv PEIt90N3 PRIPARLD f02 ROSECONSULTING EN d LAND SUMM ERGATE pe NG NEERING PLANNERS and LAND s1RYEY0R3 1TI05 CElNE.NIN5TE200 ALTA / NSPS LAND TITLE SURVEY COMPRNY, INC. UKEVIl1E,MN 55004 1000 EAST 1460 STREET.SURNSNLIF,MINNESOTA 55337 PN(952)472-7000 FARMINGTON. MINNESOTA P 1 ry m 1 7r v 3n v l:1 I i F � „YTH�r it 1 ---� SEE M15 11 !R ONE R _ z;xnrus m+ 74 �� (� Agriculture Mixed-Use(Commercial/Industriat) Low Density Residential[1.0-3,5 ula) Industrial f Low Medium Residential[3.5-6.0 uta) Public/Semi-Public Medium Density Residential[6.0-12.0 ula) Park/Open Space - High Density Residential[12.0-40.0 ula) ROW —�-- Mixed-Use(Comm./Res.)16.0-40,0 uta) Non-Designated - Commercial 03 - LAND USE PLAN 3-31 I I ; I NO.OF LOTS 113 GROSS AREA 40.0 ACRES I I 1w o 100 xw GROSS DENSITY - 2.82 LOTS/ACRE SCALE IN FEET GROSS AREA 40.0 ACRES - PARK 1.5 ACRES —do;u4 OUTLOT A 4.5 ACRES n `a R T a g a g e R 1 5 R 9 a R R O R OUTLOT B 3.1 ACRES a "^' °¢ r .s a FLAGSTAFF AVE. 1.9 ACRES NET AREA 29.0 ACRES I NET DENSITY=3.90 LOTS/ACRE w t'rsa. $- /Be�mss�.'R.sw s.Rse¢af.Riwxf.Rsw w.&nw 06f.RN�r.a o F.Ram°'s.asw°F.auo i.1 'R.sw F.Rt v $ R e Ssen Ax¢Sso- R M PM $ R A - LARGEST LOT 17,451 S.F. geaxf. a n¢a SMALLEST LOT 7,410 S.F. AVERAGE LOT SIZE - 8,634 S.F y M n a a o¢T�b e — L Mn I snN ■ R.1 FeAG3t 11 xfR4 SF�a s.fRa xPx 1;e, SfS uwaF�,,rw¢F.fl Rq,e¢xfa e.wxR t.¢wsA e, sR�,ws.R it es s. PROPOSED LOT TYPICAL 10'REAR SETBACK x ws m a i ¢ a a r BUILDING SETBACK LINE ; I IFa w = 6'SIDE SETBACK & $ R a +a Iw I (20'STREET SIDE SETBACK) a a ws a 5T MTN muw - - 20'FRONT SETBACK "n L% ems, % = ,o.tws.f.eswxf..sw s.f.�.swss. n.sm ss. u a L al A_____A_____a_______________________..... '_____________ _ .______—_Irk jf uvlsaNs FBEPABFD FOR ROBE PLwrr Rs ma LAND..sunvErons SUMMERGATE 1 ENGINEERING 1]3 6 CEDAR AVE.STE-I COMPRNY, INC. l KEMLLE,MN—I CONCEPT PLAN B pp `� L 1000 EAST 146th STREET,BUFWSNLLE,MNNFSOTA 35007 PH(0.52)432-7000 FARMINOTON, MINNESOTA RESOLUTION NO RJ5-20 AMENDING THE 2040 COMPREHENSIVE PLAN TO CHANGE THE MUSA AND DEVELOPMENT STAGING FOR THE 40.00 ACRES OF PROPERTY OWNED BY JAY AND PATRICIA CHRISTENSEN AND LOCATED AT 20861 FLAGSTAFF AVENUE FROM 2040 TO 2020 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington,Minnesota was held in the Council Chambers of said City on the 181' day of May, 2020 at 7:00 P.M. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Bernhj elm and Member Hoyt introduced and seconded the following: WHEREAS, Summergate Companies has petitioned for a Comprehensive Plan Amendment for the 40.00 acres of property owned by Jay and Patricia Christensen and located at 20861 Flagstaff Avenue. The subject property is depicted and described in the attached Exhibit A. The said request proposes that the MUSA and Development Staging for the subject property be changed from 2040 to 2020; and WHEREAS, the Planning Commission held a public hearing on the 12th day of May 2020 after notice of the same was published in the official newspaper of the City and proper notice sent to surrounding property owners; and WHEREAS, the Planning Commission accepted public comments at the public hearing and recommended approval of the Comprehensive Plan Amendment for the property depicted and described in Exhibit A changing the MUSA and Development Staging for said property from 2040 to 2020. NOW, THEREFORE, BE IT RESOLVED that the City Council of Farmington after taking into account the recommendation of the Planning Commission hereby amends the 2040 Comprehensive Plan for the property depicted and described in Exhibit A changing the MUSA and Development Staging for the property located at 20861 Flagstaff Avenue from 2040 to 2020. The resolution adopted by recorded vote of the Farmington City Council in open session on the 18th day of May 2020. ayor Attest to the day of May 2020. A min strator SEAL 200 0 200 400 .n i L on ,W O ,00 200 N89.5O'28'E 1020.00 IN PARCEL B SCALE N FEET m• NS9.50'28'E ——-- --———--—--—fNISTMG''--�—— �• 255.00 xNi •aoaGreeNnw+wuxonwuxo HI o oeloT[s.dwwrert an FWSTING V NbMn*a Wemc=.N—px "- SIl01O TIDING 5 NGW ® °re¢0osrtq rovrxrou I s.. . dmxWssEwmgfes. STING 4� m EN5 Ieo PARCEL BPROPER R5 EXCEPTION p ailrnxc'-"'� ioiuc� ..fir. }s TY DESCRIP710N IY ..._ .. -. F ..�_ I. -f •.I WI EXI5TIUGJ sua..ee am Mw.w.mwMewn asl,.laMF•f s,t,wnM. „tnW.m.u.a.ea•+T. o WADING .�°�� aMeeM.osnraB.eMn.i `§ PASTING a.w..n..Nvy m,o..rw CeNv. W NG 6 I " � Ne.M+q.I M�iwnrn.mn..M Mmw.o.n.9a atl 6ella n�Mw6oM tW ww m.G W.�u.q'.NMVY.amleea nYb.e PARCEL TOTAL SITE AREA WSnNG — < 40.00 AC. PARCELmB I m WMNG� EXCEPTION ❑ ,,.- ._.. WI,DING,�^SN�K, PARCEL B -- — --- N� .,;,, .,....N.bM .a.NNd wN.MMA.. awn.. .we CyYwm.M.MNa N,sm.WM.m.o,m+A _ pm ..: �; -, •.I I I° .�ewNA.NmII,�.x�,.„w PARCEL A AG .ca NBB'43'33B 971.02 sn .wp.xnza.:x..Nfluuo x.zmv cWl.e.v.e+aaamt,. - i� °• a�SinNNc v�b� � w.«N....w..Rw.wz,n,e. m WIIDNG I mbk��lLLt.; �'-I tnSTING N Min�m,e M im"isaM�w wr.'n.e.we.w.mw In by'WI nIxG it m ww�u a w ma aq.T•.m ...` . ., x IL JI n�.n.aww....+I.+a..m+e.T.M•n..a. PARCELI A NS9°43'33•E 949.81 .b�"".wab..Nwa.awwM... XCEPTO REN90N5 PREPARtD FDA: I CONSULTING ENOINEDtS, SUMMERGATE ENGINEERING PLANNERS a LAND suRVEYORs 'T3305 CEWRAVE.S7EM0 ALTA / NSPS LAND TITLE SURVEY 1 COMPRNY, INC. ""`E"uE.MNEso9. � 1 ( 1000 EAST 1460+STREET.BURNSMUL.MINNESOTA c 7 PN(952)432-3000 FARMINGTON. MINNESOTA i i CITY OF FARMINGTON t DAKOTA COUNTY, MINNESOTA j i ORDINANCE NO. 0 2 0-7 51 j i An Ordinance Amending Title 10 of the Farmington City Code,the t Farmington Zoning Ordinance,Rezoning 40.00 Acres of the Christensen Property Located at 20861 Flagstaff Avenue j 's THE CITY COUNCIL OF THE CITY OF FARMINGTON HEREBY ORDAINS AS FOLLOWS: SECTION 1. Section 10-5-1 of the Farmington City Code is amended by rezoning the property depicted and legally described on the attached Exhibit A from A-1 (Agriculture)to R- i 3 (Medium Density Residential)Planned Unit Development. I SECTION 2. The Zoning Map of the City of Farmington, adopted under Section 10-5- 1 of the Farmington City Code,shall be republished to show the aforesaid zoning. l k SECTION 3.This ordinance shall be effective immediately upon its passage. i Adopted this 18t'day of May,2020, by the City Council of the City of.Farmington. i CITYFARMINGTO € i MAYOR ATTEST: ADMINIST T 3 SEAL I Approved as to form theme day of 2020. E I I ITY ATTO EY 1 Published in the Dakota County Tribune the g day of2024. , f i i I I ' ITu,;„F �,=•� I I ;;f'. o tm o rm zm Neasa'z6'� +Ozo. _PARCEL B _ __ M" N rwT ' n�• N6Y60'3B� 256.00 I 1 '&YsSTh�T[�wsc „Nmvn.wraw �5„—�•! spm iuc �nIL o��a°Ra WOwam"'0..0 ess �, r nrvG ci aufiGw"Ie^� rn�r,uc r o� mewmuovwe�ewn n.w.aK snsriuG rsna_win�uG II :: — owow.�w,.*�„m PARCELMB I f a W D Ga«G ti ' EXCEPTION „„G ,,rPROPERTY OFSCF6P IIDN _ R4 WIfiaG _"z '� CI y�I� ..._ ,.�=t v, I SIE . cWs6n� �' '� 'P� rw,w.uwax�irermff4rne�nnvf.ainn�n.a,nwam..iM. FI 1310 ��• ,♦ - ••� :•w.ee �O ID.xvnr OrnwwnO.�P�.W.+.nm.��.,.nne,141MO Ya PY,Y LMb. � WaLMG '• arw�aa PARCEL A TOTAL SITE AREA — — 40.00 AC. PARCEL�B EXCEPTION PARCEL B I I� a_ PARCEL A I� �,..c_. a... NBaa3'332 971-03•.. +«+.....,a.«+.as } ..�, +s.ara,..«zc„..w.v,xaw vmrrn.cau.nfa�sn. b `WMA. P 1 OIN PARC A 7786`43'33'6 940.81 CEPTIc `? ._...... _ ewfdr«wnMv.3,e. w� CDNswm7O ENaxEFAs -^ SUMMERGATE AOBE PLANNEA3 enc LAND SURVEYORS ENGINEERING 7>D��EaaRAVE 6,E� I1 ALTA / NSPS LAND TITLE SURVEY >�- COMPANY, INC. Lwzv t.M°7 1 f0 FJ V7 M SMEET.BURNS�"M MINKMOTA=7 PN(936)436-30W ` FARMINUOK MINJESDTA m CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Final Plat and Development Contract- Fairhill Estate at North Creek 2nd Addition DATE: May 18, 2020 INTRODUCTION M/I Homes of Minneapolis/St. Paul LLC is proposing to plat 35 single-family lots within the Fairhill Estate at North Creek 2nd Addition. The 35 lots are located to the west of the previous 97 lots platted as part of the 1st Addition. DISCUSSION The 335 lots single-family lots are part of the 244 overall single-family lots that were proposed with the preliminary plat for this project. It should be noted that the developer has reduced the number of lots in this area by 3 lots. The approved preliminary plat shows 38 lots encompassed within the area of the proposed 2nd Addition. By reducing the number of lots in this area,the developer was able to increase the square footage of the lots in the 2nd Addition. Other than the reduction in lots the Fairhill Estate at North Creek 2nd Addition corresponds with the preliminary plat that was approved by the Planning Commission on April 9, 2019 and the City Council on April 15, 2019. The plat is comprised of the following area summary: Block 1 Area: 2.404 acres Block 2 Area: 2.44 acres Block 3 Area: 0.82 acres Block 4 Area: 0.903 acres Total Lot Area: 6.567 acres Total Outlot Area: 1.592 acres Total Right-of-Way: 1.821 acres Total Area: 9.98 acres As previously mentioned the Fairhill Estate at North Creek 2nd Addition Final Plat will consist of 35 single-family lots. The average lot size is 8,176 square feet with the smallest lot being 6,475 square feet in size and the largest lot being 11,579 square feet in size. Additionally,the attached final plat shows four outlots (A, B, C and D). Outlot A is 0.273 acres in size and will be a private park. Outlot B is 0.781 acres and is a portion of a gas pipeline. Outlot C is 0.401 acres and includes a portion of a gas pipeline easement as well as additional property for draintile installation behind lots 1-5, Block 3. Outlot D is 0.137 acres in size and will be a private park/open space. Transportation There will be three road connections into the 2nd Addition. All three connections will be made to 192nd Street W which was platted and constructed with the 1st Addition. The final plat shows the extension of Cottage Road and Crystal Terrace through the proposed 2nd Addition plat. The road sections within the 2nd Addition will consist of 50 foot rights-of-way and 28 foot wide roadways measured face of curb to face of curb. Five foot wide sidewalks will generally be installed on one side of each street with the exception of Crystal Terrace where no sidewalks will be installed on this street in the 2nd Addition. An eight foot wide bituminous trail will be installed thru Outlots B and C that will be constructed from 192nd Street W north through the 2nd Addition and into and thru several outlots that are adjacent to the north side of this plat that were platted in the 1st Addition where the trail then runs parallel to the right- of-way for 190th Street W and connects to the main entrance to the Fairhill Estate at North Creek development. Landscape Plan Review A landscape plan was approved as part of the overall Planned Unit Development Plan. Boulevard trees will be provided in the 2nd Addition. The landscape plan is in conformance with the approved Planned Unit Development Plan. Engineering Review The Engineering Department has reviewed the Fairhill Estate at North Creek 2nd Addition Final Plat and recommends approval contingent upon satisfaction of all engineering comments related to the construction plans for grading and utilities as well as the applicant entering into a Development Contract with the city and all security and costs paid. Planning Commission Review The Planning Commission reviewed the final plat on May 12, 2020 and recommended approval with the 5-0 vote. The recommendation was contingent upon the following: 1. The satisfaction of all engineering comments related to the construction plans for grading and utilities. 2. A Development Contract between the applicant and the City of Farmington shall be executed and security fees and costs shall be paid. Submission of all other documents required under the Development Contract shall be required. Development Contract Staff has prepared the standard development contract that has been reviewed with the developer, The developer is working on the construction estimates associated with the plat improvements that are incorporated into the agreement for financial securities and fees. The council is asked to approve the draft agreement pending updates to the financial requirements and fees that may be adjusted once the final information is provided by the developer. BUDGET IMPACT The following funds will receive contributions based on the 2020 area charges associated with the development. • Surface Water Quality Management Fee: $709 • Watermain Trunk Area Charge: $46,018 • Sealcoating: $6,984 ACTION REQUESTED By separate motions, adopt and approve the following actions: 1) Adopt the attached resolution approving the Final Plat for Fairhill Estate at North Creek 2nd Addition, subject to the following contingencies: 1. The satisfaction of all engineering comments related to the construction plans for grading and utilites. 2. A Development Contract between the applicant and the City of Farmington shall be executed and security fees and costs shall be paid. Submission of all other documents required under the Development Contract shall be required. 2) Approve the attached draft Development Contract and authorize its execution pending updates to the financial requirements and fees within the agreement. ATTACHMENTS: Type Description ❑ Backup Material Final Plat ❑ Backup Material Construction Plans ❑ Resolution Final Plat Resolution ❑ Contract Development Contract FAIRHILL ESTATE AT NORTH CREEK 2ND ADDITION KNOW ALL PERSON50/iHESE PRf5EN2S:Talat MYI aa«,ws d MLnneapdis/.u.Pa W,LLC a Minnesoblimitetl UaN4NaomWnR owrwrd Me CITY PLANNING COMMMION,CITY OF FARMINGTON,STATE OF MINNESOTA rdlWWne eescdeea PrPpegY Avvrowd by tk garolreG«wni:tiw dme ervd Fam„re1Pn Nsrceada a a reeW,.meetlre mercd w tk_eaves M-C,FAIRHILL ESTATE AT NORTH CREEK,xmrdire m tM retarded plat tnercd,WkoU CWnry,Ntinnesda. _ Has causedthesametopesurveyedaMplattedas FAIRHILLESTATEATNORTH[PEEK2ND ADDTIONaMdoes—Ndedlratemthe .arming Canmisslon,Ery of Fa ,,0,Minr . Pudic for public use the publk ways aM tM—,RV aM utilityeasem x created W Of,plat. IN: reof Mid M/I Hwrcs of MmeaWlis/St.Paul,LIC,a MinrcsoU limited Ilabillrycomparw,M1as nuzetl Hese presents mbe CNirperson piM Wi proper ofgrertNa syrce:MANO-a '/St.Pad,uc Cm CDUNCl4—OF FAxm1NGTON,STATE OF MINNESOTA This plat d FAIRHILLESTATE AT NORM CREEK 2NOAM-N was app—Ml aM xcepUd by1M1e O'ry fa,Ml d[be City of Farmiretpn, By: eguWrmeetire[feted Mld[M1is dayd _AM vW plat is in cwnPllacre with tlw proAsI-,of MiwesoU Statutes,Section 505.03,SuM.2. CIN CWroil,City o1 Farm Nre ,MO-1 STATE OF ayo COUNTY OF Itis im[mment was xkmwX 1.before me on Ws dayd 21J by COUNTY SURVEYOR,COUNTY OF OAKOTA,STATE OF MINNESOTA d W,wines of Minrcapdis/S[.Paul,llC,pn benallof[M1e romparry. I Hereby cemrytiv[in awwdarce wi[n MlnresoU SUlutn,Sxtim 505 021,SUM.1],too plat Has been reWewetl aM approved this _davd Notary Pudic, Wnry,Minrosota Notary RinteO Name TMtl Bidlelson,DakotaCWnty Surveyor MyCommissionEv0— COUNTY BOARD,OW NTY Of DAKOTA,STATE OF MINNESOTA 1 GNg E.lanrsrrn do McWcerRNrAat rNs alar wx prcparctlby«w«uMermyevxt supervision ma dory UcnTsetl lase Survayorin[M SUU of Minnesou;toot ON plat is a correct representation 1Me I—M.,Purvey 1.1 alll mathematical data aM IabN' M M—by certify that.the 2W tlayd Marro,2019,tfe main dCamMsd«ers d WkoU COunry,Mimesda approved this qat or cwrec[N desigwted Mthis plat,l all monuments depicted on this plat have been,I Wilts Wnectly cat WDM,ore Kar riot all FAIRMILL ESTATE AT NOWH CREEK 2ND ADDTION,aM sold plat ismM—with OK P—lf—or MlwemU SUtutes,Sectlan 503.03 _ bWMadx ant wet—,as de0rodm MiT.—IM-1,Section 505.01,SUM.3,asdine date d thocM� .U.aresMwnaM SUM.2 ant P--tM—County COntiguws gest 0,0. e. labeled m the plat;AM all public wan are sM1ovm antl labektl on this plat Wted try's tlayd By: R Chir,Wkda—t, ez Boom Wkda County Treasurer-AMitw Craig E.—,U--d UM Surveyor,Mi--Uceme No..5. COUNTY PROPERTY TAXATION AND RECORDS,COUNTY OF DAKOTA,STATE OF MINNESOTA MINNESOTA es,Sxtion 50,021,—9,taxes payable m the year 20_on—A.Mreinbemre-c—M1ase been STATEO W.Mso,Pursum Mi znesoU LaNtx,Section 2]2.12,mere arc rodelirpuem Uvx ant[ramftt enticed this_tlayd COUNTYOF Tre fwegpina lmvamem vex xkrowdeegee barwe m<tNs_davd 2D�ev vale E.IPnmvn. Amv A.KaeLM1e,DT«t«. W partmen[d ProPeM iavalim ant Records Noary Public, County.NE—AA Nddry Rioted N.— NA,1—i— ameaA,1—iaaion cadres COUNTY RECORDER,COUNTY OF DAKOTA,STATE OF MINNESOTA IlercbvmNirvmat Hes Plat of FAIRHILL ESTATEATNORTHCREEK2NDAMTION vexfledintMdicedt CWnry Recorderfor WWk record anthl tlayd 20_�at_o'<lak_.M,aM was duly Rletl in Book of qau,Page DWumen[Num asnV 0.Kpetle,WkaU CWnry Retainer SAMBATEK,INC. ENGINEERING,PLANNING AND LANDSURVEYING SHEET 1 OF 2 SHEETS FAIRHILL ESTATE AT NORTH CREEK 2ND ADDITION Ng2'S1'11-EE �5$ E 91.2g, TS-C • l t t 1 (I / •/�C\\ ysys tl� 5 FI tIR >�r\ J4�J@. it r�t- 6 / 4 7 , 3 / 8/ �'•4r\ d'✓.•"1/> R.flSB°-mr,llp• \\ ',S I} Y K DRAINAGE AND UTIUTY EASEMENTS ARE SHOWN THUS: 2 1Di \ yc L 8 1 II / eoro0 \ \L SSE �. ' 9tt �� / ,a -�°' \�8�� ss,s,•w z N7.e7.g0 L4 w_. _ h ••.S10b1'WE 50.18 ^: abs.�pJr"'#�� t n �SG�� wtia:t o-li�ai3'B-;, I �~ ��••..�% g .•o�'t 9 ti 1 10 / -G•E'_ b i•).,D',,\\ 1t '� � 1�� tl 1,, 'C•.. 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'Y __ /� ¢ [Oxsr,uc,gx[xassiw ms„rol[n IZZI1>„IPEn,10c[LxN«G Uxx10M Ma�e:Tw,t Mxxl wsw.nYZNM>o ES WIIwO ixE[IX,n,Vntpx PEwS[SRTMISPxO,lR � �«.,Ero,.x,p Mw,m x Revision Histo �. 'r - �Pxicrcex[orvTiwai°,`wuE'�e so,'iv°i.n c°onn[ic,[iiu`vu[iui pox^p wN`,°x TME No.Date By wbmnta1 Rm m^ ar[.nnwwc srm°ru,r[,s°ras.w°m°r�en Mx xcHnpw.vr,aTx[w°x[. �,}0ro �o MExrwx.nrP,.mm xMw,n.vo xo>n°IE EIGNEB—1i DEVE-1 T010— ;;n `v.waF4 M01ia. uncoMM[xrs nREATI,_FOM.x°.uln.wxp,M,:r>w,aa px,u,apn u^xr.mxsr,°[^oN I•'- TE 11= 11Sheet Title «„«�« ^x�x I^rv[M zMn.wITMMxE OVERALL • ,,, - , .. n.n.x°=« M,rxTM[,TM,,,«w„,E,. UTILITY PLAN Sheet No. Revision LEGEND ambalek �, • _— -__.- ._ cu�eaw*rEw �'� .. ^*^'u'wmxc ` www.sambalek.com _._ 195ST .,xux,F mxaiew.n 11-wn'_.mi.W.a6o n —. ,[„e wcw _. Mmcwa ,MN55343 we,uxo lM [oxaen:w[ ]6JAM.85a f-10. - ...........- _ net'u.:{ ,.. i6J.{]8 BSJl laplmtle I rsFwt Client M/1 HOMES �FARMINGTON LANDSCAPE CODE m Project .a�/� . - t a1 �_a � 1\�,. .,� `'I •'•• � FAIRHILL ESTATE AT NORTH CREEK 2nd ADDITION FARMINGTON,...d..,. �.� Location �11 / r W.xx. N �a �\ , "„�",.,, � = -- •'� w,.�,o � ,,ro.. a. � FARM�1 GTON - � _ - `. .. � - -____:.. -✓ r�� PLANT SCHEDULE CHE ULE OVERALL �`�� , t��( •� j "" -- � - .\ trees mu wruaw]m ruble carr w � mr Certification r_--i fication \Y2,\ ♦-• r � k 1`"r\t1 7 r r� et t- � a % / •ISI - I I i� I ' rc en,.„c.,e�e�ew,.an/.mma, .0 rew a w,..",..d. yy I r dll I ,yxm,c. 40251 03/33(30(1 7 ;^ �J�:�a ��1 t �r rr � .. �'�;� � f � I•I``lL �r"'".I )I ,_ill ---1 � .. U -"�'., � so awNsamw/s..m wMn ou .a. rcr c �• (Z C'1 _ --- .41.�rT. ��/ In ^'�. �'. '.r // �r � �j _��Ir--1�--1t��__-"ll � � 1 � T`-I�i y � `i�- w T P�. I 1. �� ..�` �r /�•/ l�I, �� i IN' �1 }it lL._-J�aI ��.�i I a ea �rwr i"..iw..w s� ^_ -�- 5, 4 f-F �..�. J � J4—' I r r�`r cm.m,.ma s..ox ea. : i ..,..n.•e.+'°.. Summary .1��\ r• 'rl 1i�i •�� t a OIt .Vmi° Rrmerv..,iwsion nHaMismtroDIm rynv sm 3 - / ,,�.._ I� I: I :I IY s r�.x,4...e.,,.w,rr,�wusw�. ■s. c �� m.cowcxrs �I it ry\ SW6Ntbi/1lcrfsbn m rte` r I �`�� Q �T y� _. _ —�-- -- —Z9�TRS1 00 _ L1.01 L 0 Sheet Title OVERALL LANDSCAPE PLAN �F, , Sheet No. Revision RESOLUTIONNO. R26-20 APPROVING FINAL PLAT AND AUTHORIZING SIGNING OF FINAL PLAT FAIRHILL ESTATE AT NORTH CREEK 2nd ADDITION Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 18th day of May, 2020 at 7:00 P.M. Members Present: "Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Bernhj elm and Member Donnelly introduced and seconded the following: WHEREAS,the final plat for Fairhill Estate at North Creek 2nd Addition is now before the Council for review and approval; and WHEREAS, a public hearing of the Planning Commission was held for the preliminary plat on April 19, 2019, after notice of the same was published in the official newspaper of the City and proper notice sent to surrounding property owners; and WHEREAS,the Planning Commission reviewed the final plat on May 12, 2020, and recommended approval of the final plat; and WHEREAS,the City Council reviewed the final plat; and WHEREAS,the City Engineer has rendered an opinion that the proposed plat can be feasibly served by municipal service. NOW, THEREFORE, BE IT RESOLVED that the above final plat be approved and that the requisite signatures are authorized and directed to be affixed to the final plat with the following stipulations: 1. The satisfaction of all engineering comments related to the construction plans for grading and utilities. 2. A Development Contract between the applicant and the City of Farmington shall be executed and security fees and costs shall be paid. Submission of all other documents required under the Development Contract shall be required. This resolution adopted by recorded vote of the Farmington City Council in open session on the 18th day of May, 2020. Mayor Attested to the leh day of May, 2020. 'tly Administrator SEAL 1 1 i I 1 i a i DEVELOPMENT CONTRACT AGREEMENT dated this of May 2020 by, between, and among the CITY OF FARMINGTON, a Minnesota municipal corporation(CITY)and M/I HOMES OF MINNEAPOLIS/ST.PAUL,LLC,a Minnesota limited liability company(DEVELOPER). 1. Request for Plat Approval. The Developer has asked the City to approve a plat for FAIRHILL ESTATES AT NORTH CREEK tad ADDITION(also referred to in this Development Contract[CONTRACT or AGREEMENT]as the PLAT). The land Is situated in the City of Farmington, County of Dakota,State of Minnesota,and is legally described on the attached Exhibit A(the "Development Property") and is part of the Fairhill Planned Unit Development (PUD) approved under the Master PUD Contract entered into on May 2,2011. 2. Conditions of Approval. The City hereby approves the Plat on the conditions that: a) the Developer enter into this Agreement;and b) the Developer provide the necessary security in accordance with the terms of this Agreement;and c) the Developer satisfy the Cash Requirements in accordance with the terms of this Agreement;and l d) all engineering issues shall be addressed and engineering department approval of the construction plans for grading, storm water and utilities. e) the Developer record the Plat with the County Recorder or Registrar of Titles within six months of signature on the final plat by all signatories required by Minnesota law. 3. Right to Proceed. Within the Plat or land to be platted,the Developer.may not grade or otherwise disturb the earth or remove trees,unless a grading permit has been approved by the City Engineer following approval of a preliminary plat by the City Council,construct sewer lines,water lines,streets,utilities public or private improvements or any building until all I of the following conditions have been satisfied: a) This Agreement has been fully executed by both parties and filed with the City Clerk, b) The necessary security has been received by the City, c) The necessary insurance for the Developer and its construction contractors has been received by the City, d) The Plat has been submitted for recording with the Dakota County Recorder's Office, e) A deed shall be provided for Outlots B,and C and recorded with the plat mylars,and f) The City Clerk or Engineer has issued a Notice to Proceed stating that all conditions have been satisfied and that the Developer may proceed,which shall be promptly delivered to the Developer upon satisfaction of the conditions. 4. Phased Development. The FAIRHILL ESTATE AT NORTH CREEK 2"d ADDITION is part of a multiple phase development and will be developed in accordance with Plans A—E. Subject to the terms of this Agreement, this Development Contract constitutes approval to develop the Plat. S. Changes in Official Controls. The provisions of Section 5.2 of the Master PUD Contract dated May 2,2011 shall apply. I Page 1 of 16 I i 6. Sales Office Requirements. At any location within the plat where lots and/or homes are sold which are part of this subdivision, the Developer agrees to install a sales board on which a copy of the approved plat, final utility plan and a zoning map or planned unit development plan are displayed,showing the relationship between this subdivision and the adjoining neighborhood. The zoning and land use classification of all land and network of major streets within 350 feet of the plat shall be included. 7. Zoning/Development Map. The Developer shall provide an 81/2"x 14"scaled map of the plat and land within 350'of the Plat containing the following information: F a) platted property; b) existing and future roads; c) existing and proposed land uses;and d) any ponds. 8. Development Plans. The Developer shall develop the Plat in accordance with the following plans(the"Plans"). The Pians shall not be attached to this Agreement. The Plans may be prepared by the Developer, subject to City approval, after entering into this Agreement but before commencement of any work in the Plat. If the Plans vary from the written terms of this Contract the Plans shall control. The required Plans are: I Plan A—Final Plat(Approved May 18,2020) { Plan B-Final Construction Plans and Specifications(including Soil Erosion and Sediment Control,Grading Plans and Landscape Plans) Plan C—Park Master Plan(Approved December 2,2019) Plan D—Zoning/Development Map I The Developer shall use its best efforts to assure timely application to the utility companies for the following utilities: underground natural gas,electrical,cable television,and telephone. The installation of these utilities shall be constructed within public rights-of-way or public drainage and utility easements consistent with the City's engineering guidelines and standard detail plates. 9. Easements. The Developer shall furnish the City at the time of execution of this Agreement with the easements designated on the Plat. A long-term maintenance agreement will be required for all structural stormwater practices that are not owned or operated by the city but that are directly connected to the city's municipal separate storm sewer system(MS4) and within the city's jurisdiction. 10. Required Public Improvements. The Developer shall install and pay for the following: j a) Sanitary Sewer System(trunk and lateral) b) Water System(trunk and lateral) c) Storm Sewer System d) Streets e) Concrete Curb and Gutter f) Street Lights I g) Erosion and Sediment Control,Site Grading and Stormwater Treatment J h) Underground Utilities i) Setting Iron Monuments j) Surveying and Staking k) Sidewalks and Trails 1) Landscaping and Screening collectively the"Improvements". i The Improvements shall be installed in accordance with the Plans, and In accordance with all applicable laws, City Standards, Engineering Guidelines,Ordinances and Plans(and specifications)which have been prepared by a competent Page 2 of 16 registered professional engineer furnished to the City and reviewed by the City Engineer. Work done not in accordance with the final Plans(and specifications),without prior authorization of the City Engineer,shall be considered a violation of this Agreement and a Default of the Contract. The Developer shall obtain all necessary permits from the Metropolitan Council and other agencies before proceeding with construction. The Developer shall Instruct Its engineer to provide adequate field inspection personnel to assure an acceptable level of quality control to the extent that the Developer's engineer will be able to certify that the construction work meets the approved City standards as a condition of City acceptance. In addition, the City may, at the City's discretion and at the Developer's expense, have one or more City inspector(s) and a soil engineer inspect the Work on an as-needed basis. The Developer, its contractors and subcontractors,shall follow all instructions received from the City's inspectors. The Developer's engineer shall provide for on-site project management. The Developer's engineer is responsible for design changes and contract administration between the Developer and the Developer's contractor. The Developer or its engineer shall schedule a pre-construction meeting at a mutually agreeable time at City Hall with all parties concerned,including the City staff,to review the program for the Improvements. Within sixty(60)days after the completion of the Improvements and before the security is released, the Developer shall supply the City with a complete set of"As Built" plans in an AutoCAD .DWG file or a .DXF file, all prepared in accordance to the City's Engineering Guidelines. If the Developer does not provide such Information,the City will produce the as-built drawings. All costs associated with producing the as-built drawings will be the responsibility of the Developer. Before the security for the completion of the utilities is released, iron monuments must be installed in accordance with M.S. §505.021. The Developer's surveyor shall submit a written notice to the City certifying that the monuments have i been installed. j I 11. Permits. The Developer shall obtain or require its contractors and subcontractors to obtain all necessary permits,which may include but are not limited to: A. Dakota County for County Road Access and Work in County Rights-of-Way B. MnDOT for State Highway Access and Work in State Rights-of-Way C. Minnesota Department of Health for Watermains D. MPCA NPDES Permit for Construction Activity { E. MPCA for Sanitary Sewer and Hazardous Material Removal and Disposal F. DNR for Dewatering G. City of Farmington for Building Permits H. MCES for Sanitary Sewer Connections I. City of Farmington for Retaining Walls 12. Dewatering. Due to the variable nature of groundwater levels and stormwater flows, it will be the Developer's and the Developer's contractors and subcontractors responsibility to satisfy themselves with regard to the elevation of groundwater in the area and the level of effort needed to perform dewatering and storm flow routing operations. All dewatering shall be in accordance with all applicable county, state and federal rules and regulations. DNR regulations regarding appropriations permits shall also be strictly followed. 13. Grading Plan. The Plat shall be graded and drainage provided by the Developer in accordance with the approved Erosion and Sediment Control Plan and Grading Plan, included in Plans B. The plan shall conform to the City of Farmington Engineering Guidelines. Within thirty(30)days after completion of the grading and before the City approves individual building permits.The Developer shall provide the City with an"as-built"grading plan certified by a registered land surveyor or engineer that all stormwater treatment/infiltration basins and swales, have been constructed on public easements or land owned by the City. The "as-built" plan shall include field verified elevations of the following: A) cross sections of stormwater treatment/infiltration basins; b)location and elevations along all swales,wetlands,wetland mitigation areas If any, locations and dimensions of borrow areas/stockpiles, and installed "conservation area: posts; and c) lot corner elevations and house pads,and all other items listed in City Code. The City will withhold issuance of building permits until the approved certified grading plan Is on file with the City and all erosion control measures are in place as determined by the City Engineer. Page 3 of 16 Notwithstanding any other provisions of this Agreement,the Developer may start rough grading the property subject to the Plat within the stockpile and easement areas in conformance with Plan B before the Plat is filed if all fees have been paid, a MPCA Construction Storm Water Permit has been issued, and the City has been furnished the required security. Additional rough grading may be allowed upon obtaining written authorization from the City Engineer. If the Developer needs to change grading affecting drainage the changes cannot take place until the City Engineer has approved the proposed grading changes. A MPCA Construction Storm Water Permit must be obtained before any grading can commence on the site. 14. Erosion and Sediment Control. Prior to initiating site grading,the erosion and sediment control plan,included in Plan B, shall be implemented by the Developer and inspected and approved by the City. The City may impose additional erosion and sediment control requirements if it is determined that the methods implemented are insufficient to properly control erosion and sedimentation. All areas disturbed by the grading operations shall be stabilized per the MPCA Stormwater Permit for Construction Activity. Seed shall be in accordance with the City's current seeding specification which may include temporary seed to provide ground cover as rapidly as possible. All seeded areas shall be fertilized, mulched and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion and sedimentation. If the Developer does not comply with the MPGA Stormwater Permit for Construction Activity or with the erosion and sediment control plan and schedule,or supplementary instructions received from the City,or in an emergency determined at the sole discretion of the City,the City may take such action as it deems appropriate to control erosion and sedimentation immediately,without notice to the Developer. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer's and the City's rights or obligations hereunder. If the Developer does not reimburse the City for any costs the City incurred for such work within thirty(30) days,the City may draw down the security to pay such costs. No development,utility or street construction will be allowed and no building permits will be issued unless the Plat is in full compliance with the erosion and sediment control requirements. . 15. Wetland Buffer and Natural Area Signs. The Developer is responsible for installing City Natural Areas signs around all wetland and ponding areas, in accordance with the City's Engineering Guidelines and City detail plates. Wetland Buffer line limits and Natural Area sign locations must be indicated on individual lot surveys prior to the issuance of a building permit for that lot. 16. Existing Tree Preservation. Not Applicable 17. Park and Trail Development. The Developer deeded Outlots P and Q to the City to meet the park dedication requirements and develop the park in lieu of the park development fee as defined in the Master PUD agreement. The developer submitted a master plan,Plan C,of the park that was approved by the City Council on December 2,2019. Construction of the park shall take place with the public improvements associated with the Fairhill Estates 2"d Addition. To guarantee park development,the Developer shall post a security in the amount of 125%of the cost of the improvements estimated to be $145,000.00 as part of the security requirements of this agreement. The security shall be held until the park improvements are completed and accepted by the City. The Developer deeded Outlots B, D, E, F, G, H, I,J for stormwater and drainage purposes and Outlots P and Q for park purposes as part of Farihill Estates at North Creek. It is the developer's responsibility to construct all trail facilities within these outlots. The Developer built a portion of the trails as part of the first phase public improvements. The remaining trails shall take place with the public improvements associated with Fairhill Estates at North Creek 2nd Addition and are show on Plan B. To guarantee trail construction,the Developer shall post a security in the amount of 1250 of the cost of the improvements estimated to be$50,000.00 as part of the security requirements of this agreement. The security shall be held until the trail improvements are completed and accepted by the City. 18. Landscaping. A. The Developer shall be solely responsible for the installation of all project landscaping. Boulevard trees shall be installed throughout the development as shown on the approved Landscape Plan incorporated into Plan B. The boulevard tree requirements may be met by placing trees in the front of private lots. If the Developer uses lot frontage Page 4 of 16 I I trees to satisfy this requirement they shall be planted eight feet(8')from the front property line and shall be installed in a parallel line to the front lot line. The landscaping shall be accomplished in accordance with a time schedule approved by the City.All trees shall be warranted to be alive,of good quality,and disease free for twelve(12)months after the security for the trees is released. Any replacements shall be warranted for twelve(12)months from the time of planting.Maintenance of all boulevard trees will be the responsibility of the Home Owner's Association as defined in the PUD Agreement amendment dated June 17,2019. B. All graded areas,including finish grade on lots,will require a minimum of 6"of black dirt/topsoil. 19. Clean Up. The Developer shall, within twenty-four (24) hours, clear from the public streets any soil, earth or debris resulting from construction work by the Developer or its agents or assigns. Any soil, earth or debris resulting from construction work by the Developer or its agents or assigns on other property shall be removed weekly or more often if required by the City Engineer. All debris,including brush,vegetation,trees and demolition materials,shall be disposed of off site. Burning of trees and structures shall be prohibited,except for fire training only. The City will have the right to clean the streets as outlined in current City policy. The Developer shall promptly reimburse the City for street cleaning j costs. 7 20. License. The Developer hereby grants the City,its agents,employees,officers and contractors,a license to enter the Plat to perform all necessary work and/or inspections deemed appropriate by the City during the installation of public improvements by the City. The license shall expire after the public improvements installed pursuant to the Development Contract have been installed and accepted by the City. 21. Time of Performance. The Developer shall install all required public utilities by June 1,2021 with the exception of the final wear course of asphalt on streets. The final wear course on streets shall be installed the first summer after the base layer of asphalt has been in place one freeze thaw cycle. The Developer may,however,request an extension of time from the City,which the City will not unreasonably withhold. If an extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases. An extension of the security shall be considered an extension of this Contract and the extension of the Contract will coincide with the date of the extension of the security. 22. Ownership of Improvements. Upon the completion of the Improvements and written acceptance by the City Engineer, the Improvements lying within public easements shall become City property, except for cable TV, electrical, gas, and telephone,without further notice or action. Outlots B and C shall be deeded to the City. The deed shall be recorded with the Dakota County Recorder with the plat mylars. Improvements to Outlots B and C shall be completed by the developer as required under the Pians. { 23. Building Permits.Building permits shall not be issued prior to completion of site grading,submittal of as-built grading plan, public and private utility installation,curb and gutter,sidewalk,trails,installation of erosion control devices,installation of permanent street signs and natural area signs, paving with a bituminous surface, retaining walls if any, site seeding, mulching,disk anchoring and submittal of a surveyor's certificate denoting all appropriate monuments have been installed. A. Before a building permit is issued, a cash escrow of$3,000.00 per lot shall be furnished to the City to guarantee compliance with the erosion control,grading,and landscaping requirements and the submittal of an as-built certificate of survey. Prior to the release of the required individual lot grading and erosion control security that is submitted with the building permit,an as-built certificate of survey for single family lots must be submitted to verify that the final as- built grades and elevations of the specific lot and all building setbacks are consistent with the approved grading plan for the development,and amendments thereto as approved by the City Engineer,the site has been stabilized including meeting the sod requirements of City Code section 10-6-27(11) and that all required landscaping and property monuments are in place. If the final grading,erosion control and as-built survey is not timely completed,the City may enter the lot, perform the work, and apply the cash escrow toward the cost. Upon satisfactory completion of the grading,erosion control and as-built survey,the escrow funds,without interest,less any draw made by the City,shall be returned to the person who deposited the funds with the City. Page 5 of 16 I 1 1 B. The Developer certifies to the City that all lots with house footings place on fill have been monitored and constructed to meet or exceed FHA/HUD 79G specifications. The soils observation and testing report, including referenced development phases and lot descriptions,shall be submitted to the Building Official for review prior to the issuance of building permits. C. A limited number of building permits were issued for model homes in the Fairhill Estate at North Creek 15'Addition. No additional model homes will be constructed in the 2"d Addition or future phases of this development. D. Normal procedure requires that streets needed for access to approved uses shall be paved with a bituminous surface before building permits may be issued. However,the City Engineer is authorized to waive this requirement when weather related circumstances prevent completion of street projects before the end of the construction season. The Developer is responsible for maintaining said streets in a condition that will assure the access of emergency vehicles at all times when such a waiver is granted. E. If permits are issued prior to the completion and acceptance of public improvements, the Developer assumes all liability and costs resulting in delays in completion of public improvements and damage to public improvements j caused by the City,Developer,its contractors,subcontractors,materialmen,employees,agents or third parties. j 1 F. Retaining walls that require a building permit shall be constructed in accordance with plans and specifications I prepared by a structural or geotechnical engineer licensed in the State of Minnesota. Following construction, a certification signed by the design engineer shall be filed with the building official evidencing that the retaining wall was constructed in accordance with the approved plans and specifications. All retaining walls identified on the development plans and by special conditions referred to in this contract shall be constructed before any other building permit is issued for a lot on which a retaining wall is required to be built. i i 24. Insurance. Prior to execution of the final plat,Developer and its general contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this paragraph. Developer and its general contractor shall take out and maintain or cause to be taken out and maintained until six(6) months after the City has accepted the { public improvements,such insurance as shall protect Developer and its general contractor and the City for work covered by the Contract including workers'compensation claims and property damage,bodily and personal injury which may arise from operations under this Contract, whether such operations are by Developer and its general contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability(or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile liability $2,000,000 Combined Single Limit—Bodily Injury&Property Damage Including Owned,Hired&Non-Owned Automobiles Workers Compensation Workers Compensation insurance in accordance with the statutory requirements of the State of Minnesota,including Employer's Liability with minimum limits are as follows: Page 6 of 16 i E $500,000—Bodily Injury by Disease per employee $500,000—Bodily Injury by Disease aggregate $500,000—Bodily Injury by Accident The Developer's and general contractor's insurance must be"Primary and Non-Contributory." All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota,(Ii)shall name the City, its employees and agents as additional insureds (CGL and umbrella only)by endorsement which shall be filed with the City. A copy of the endorsement must be submitted with the certificate of Insurance. I Developer's and general contractor's policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty(30)days'advanced written notice to the City,or ten(101) I days'notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Developer's or general contractor's policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. I 25. Responsibility for Costs. The Developer shall pay all costs incurred by it or the City in conjunction with the development of the Plat, including but not limited to, Soil and Water Conservation District charges, legal, planning, administrative, construction costs,engineering,easements,inspection and utility testing expenses incurred in connection with approval, acceptance and development of the Plat, the preparation of this Agreement, and all reasonable costs and expenses Incurred by the City in monitoring and inspecting the construction for the development of the Plat. The Developer shall pay in full all bills submitted to it by the City within thirty(30)days after receipt. If the bills are not paid on time,the City may halt all plat development work until the bills are paid in full. Bills not paid within thirty(30)days shall accrue interest at the rate of five percent(5%)per annum. If the bills are not paid within sixty(60)days,the City has the right to draw from the Developers Security to pay the bills. 26. Development Contract Administration. The Developer shall pay a fee for in-house administration of the development contract including monitoring of construction observation,consultation with the Developer and its engineer on the status of or problems regarding the project, coordination for final inspection and acceptance, project monitoring during the warranty period,and processing of requests for reduction in security. The fee for this service shall be three percent(3%) of construction costs and paid at the time of the execution of this agreement. 27. Construction Observation. The Developer shall pay for construction observation performed by the City's in-house staff or consultant. Construction observation shall include part of fell time inspection of the Improvements,including erosion and sediment control inspections and will be billed on hourly rates. The Developer shall provide a cash escrow for these services estimated to be five percent(5%)of the estimated construction cost. 28. Development Fees. The Developer shall pay area charges as defined on the City's most current fee schedule that include: a) Surface Water Management Fee b) Watermain Trunk Area Charge c) Sanitary Sewer Trunk Area Charge d) Park Dedication e) Park Development f) Sealcoating *The 2020 fee schedule transitioned the Water Treatment Plant fee,previously collected with the Development Contract,to be part of the Water Availability Charge collected with building permit fees. Page 7 of 16 A summary of the cash requirements under this contract which must be furnished to the City prior to the City Council signing the final plat is shown on Exhibit B. Area charges for subsequent phases shall be calculated and paid based upon requirements in effect at the time the Development Contracts for those phases are entered into. Park Dedication and Park development are calculated in full at the time of the preliminary plat for the overall development. 29. Oversizina Credits. Development of Fairhill Estates at North Creek includes the construction of trunk sanitary sewer identified in the City's Comprehensive Plan. Per the Master PUD agreement dated May 2,2011,the developer will be responsible for construction of all sanitary sewer trunk infrastructure in the PUD in exchange for no payment of sanitary sewer trunk area charges. 30. Securit . To guarantee compliance with the terms of this Agreement,payment of real estate taxes including interest and penalties,payment of special assessments, payment of the costs of all public improvements in the Plat and construction of all public improvements in the Plat,the Developer shall furnish the City with a cash escrow,irrevocable letter of credit, or alternative security acceptable to the City Administrator,from a bank(the"Security")for$X,XXX,XXX.00. The amount of the security is based on the calculations shown in Exhibit B. This breakdown is for historical reference; it is not a restriction on the use of the Security. The bank and form of the security shall be subject to the approval of the City Administrator. Letters of Credit shall be in the format and wording exactly as shown on the attached Letter of Credit form (Exhibit D). The Security shall be automatically renewing. The term of the Security may be extended from time to time if the extension is furnished to the City Administrator at least forty-five (45) days prior to the stated expiration date of the Security. If the required public improvements are not completed, or terms of the Agreement are not satisfied, at least thirty (30) days prior to the expiration of a letter of credit,the City may draw down the letter of credit. The City may draw down the Security,without prior notice,for any violation of this Agreement or Default of the Contract following applicable cure periods. Upon receipt of proof satisfactory by the Developer's Engineer to the City Engineer that work has been completed in accordance with the Plans(and specifications), and terms of this Agreement,and that all financial obligations to the City, subcontractors, or other persons have been satisfied,the City Engineer may approve reductions in the Security provided by the Developer under this paragraph from time to time by ninety percent (90%) of the financial obligations that have been satisfied.Ten percent(10%)of the amounts certified by the Developer's engineer shall be retained as Security until all Improvements have been completed,the required"as built" plans have been received by the City,a warranty security is provided,and the public improvements are accepted by the City Council. 31. Warranty.The Developer and the Developers Engineer represent and warrant to the City that the design for the project meets all laws,City Standards,Engineering Guidelines and Ordinances. The Developer warrants all improvements required to be constructed by it pursuant to this Contract against poor material and faulty workmanship. The warranty period for underground utilities is two years. The warranty period on underground utilities shall commence following its completion and acceptance by the City Engineer in writing. It is the responsibility of the Developer to complete the required testing of the underground utilities and request, in writing,City acceptance of the utilities. Failure of the Developer to complete the required testing or request acceptance of the utilities in a timely manner shall not in any way constitute cause for the warranty period to be modified from the stipulations set forth above. The Developer shall post maintenance bonds in the amount of twenty five percent(25%)of the final certified construction cost or other surety acceptable to the City to secure the warranties. The City shall retain ten percent (10%) of the security posted by the Developer until the bonds or other acceptable surety are furnished to the City or until the warranty period has been completed,whichever first occurs. The retainage may be used to pay for warranty work. The City's Engineering Guidelines identify the procedures for final acceptance of streets and utilities. 32. Developer's Default. In the event of default by the Developer as to any of the Improvements to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City,provided the Developer,except in an emergency as determined by the City or as otherwise provided for in this Agreement,is first given written notice of the work in default,not less than seventy-two(72) hours in advance. This Agreement is a license for the City to act,and it shall not be necessary for the City to seek a Court order for Page 8 of 16 i I permission to enter the land. When the City does any such work,the City may, in addition to its other remedies,assess the cost in whole or in part. 33. Miscellaneous. A. This Agreement shall be binding upon the parties,their heirs,successors or assigns,as the case may be. The Developer may not assign this Agreement without the written permission of the City Council. The Developer's obligation hereunder shall continue in full force and effect even If the Developer sells one or more lots,the entire Plat,or any part of it. B. Third parties shall have no recourse against the City under this Agreement. C. Breach of the terms of this Agreement by the Developer shall be grounds for denial of building permits,including lots sold to third parties. D. If any portion, section, subsection, sentence, clause, paragraph or phrase of this Agreement is for any reason held I invalid,such decision shall not affect the validity of the remaining portion of this Agreement. E. Each right,power or remedy herein conferred upon the City is cumulative and in addition to every other right,power or remedy, express or implied, now or hereafter arising, available to City at law or in equity, or under any other agreement,and each and every right,power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right,power or remedy. F. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing,signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Agreement shall not be a waiver or release. f G. Compliance with Laws and Regulations. The Developer represents to the City that the Plat complies with all City, County, Metropolitan,State and Federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances and environmental regulations. If the City determines that the Plat does not comply,the City may, at its option,refuse to allow any construction or development work in the Plat until the Developer does comply. Upon the City's demand,the Developer shall cease work until there is compliance. H. This Agreement shall run with the land and shall be recorded against the title to the property before any building permits are issued.The Developer covenants with the City,its successors and assigns,that the Developer is well seized In fee title of the property being final platted and/or has obtained Consents to this Agreement,in the form attached hereto,from all parties who have an interest in the property;that there are no unrecorded interests in the property being final platted; and that the Developer will indemnify and hold the City harmless for any breach of the of the foregoing covenants. After the Developer has completed the Improvements required of it under this Agreement,at the Developer's request the City will execute and deliver a termination of this Agreement(in recordable form)and a release of the Developer. I. Upon breach of the terms of this Agreement, the City may, following the passing of all applicable notice and cure periods,draw down the Developer's Security as provided in Paragraph 30(Security)of this Agreement. The City may draw down this Security in the amount of$500.00 per day that the Developer is in violation(following the passing of all applicable notice and cure periods). The City, In its sole discretion, shall determine whether the Developer is in violation of the Agreement. Subject to the provisions of Paragraph 32(Developer's Default)hereof,this determination may be made without notice to the Developer. It is stipulated that the violation of any term will result in damages to the City in an amount,which will be impractical and extremely difficult to ascertain. It is agreed that the per day sum stipulated is a reasonable amount to compensate the City for its damages. I Page 9 of 16 J. The Developer will be required to conduct all major activities to construct the Improvements during the following hours of operation: Monday-Friday 7:00 A.M.until 7:00 P.M. Saturday 8:00 A.M.until 5:00 P.M. Sunday and Holidays Not Allowed This does not apply to activities that are required on a 24-hour basis such as dewatering,etc. Any deviations from the above hours are subject to approval of the City Engineer. Violations of the working hours will result in a$500 fine per occurrence in accordance with Paragraph I of this section. K. The Developer shall be responsible for the control of weeds in excess of twelve inches (12") on vacant lots or boulevards within their development as per City Code 6-7-1. Failure to control weeds will be considered a Developer's Default as outlined in Paragraph 32(Developer's Default)of this Agreement and the Developer will reimburse the City as defined in said Paragraph 25(Responsibility for Costs). L. The City agrees at any time, and from time to time, within ten (10) days after receipt of written request by the Developer,a lender or a party purchasing the property,to execute,acknowledge and deliver a certification in writing and in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments certifying:(a)that this Agreement is unmodified and in full force and effect,or if there have been modifications,the identify of such modifications and that the same are in full force and effect as modified;(b)that no party is in default under any provisions of this Agreement or, if there has been a default, the nature of such default; (c) that all I Improvements to be performed under this Agreement have been performed, specifying the Improvements to be performed;and(d)as to any other matter that the requesting party shall reasonably request.It is intended that any such statement may be relied upon by any person,prospective mortgagee of,or assignee of any mortgage,upon such interest. Any such statement on behalf of the City may be executed by the City Administrator without City Council approval. M. Indemnification. To the fullest extent permitted by law,Developer agrees to defend,indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, j including reasonable attorney fees,arising out of Developer's negligence or its performance or failure to perform its obligations under this Contract. Developer's indemnification obligation shall apply to developer's general contractor, subcontractor(s),or anyone directly or indirectly employed or hired by Developer,or anyone for whose acts Developer may be liable. Developer agrees this indemnity obligation shall survive the completion or termination of this Contract. 34. Notices. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents,or mailed to the Developer by certified or registered mail at the following addresses: M/I Homes of Minneapolis/St.Paul,LLC Attn:John Rask 5354 Parkdale Drive#100 St.Louis Park,MN 55416 Notices to the City shall be in writing and shall be either and delivered to the City Administrator,or mailed to the City by certified mail or registered mail in care of the City Administrator at the following address: David McKnight,City Administrator City of Farmington 430 Third Street Farmington,MN 55024 I i Page 10 of 16 SIGNATURE PAGE FOR THE CITY CITY: CITY OF FARMINGTON By: Todd Larson,Mayor By: David McKnight,City Administrator STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 20 by Todd Larson, Mayor,and by David McKnight,City Administrator,of the City of Farmington,a Minnesota municipal corporation,on behalf of the corporation and pursuant to the authority granted by the City Council Notary Public Page 11 of 16 1 i 1 {I SIGNATURE PAGE ? FOR THE DEVELOPER DEVELOPER: M/I HOMES OF MINNEAPOLIS/ST.PAUL,LLC By: John Rask Vice President of Land l I a STATE OF ) (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of .2_,by the of ,a on its behalf. Notary Public i a DRAFTED BY: 1 CITY OF FARMINGTON 430 Third Street Farmington, MN 55024 Telephone:(651)280-6800 a i I Page 12 of 16 i EXHIBIT A LEGAL DESCRIPTION Outlot C, FAIRHILL ESTATE AT NORTH CREEK according to the recorded plat thereof, Dakota County, Minnesota. i i I I Page 13 of 16 { Development Contract Calculations Exhibit B FAIRHILL ESTATE AT NORTH CREEK-2ND ADDITION Development Contract .Acerages for Platting Calculations Total Platted Area: 9.98 AC Land Use Type ROW within project boundary: 1.82 AC ROW Single Family Area: 6.57 AC R-LD Outlot A: �v 0.273 AC _Open HOA-Private Park Outlot B: 0.781 AC y Open ' Cityfrrall Outlot C: 0.401 AC Open Cityrrrail Outiot D: 0.137 AC Open HOA-Private Park Total Development Fee Acreage*: 9.98 AC Used for Park Dedication and Development Total by Land Use Type _ R-LD6.57 AC R-HD ._ ..0.00 AC i Comm/I/I 0.00 AC _ ROW 1.82 AC _ Pond 0.00 AC 1.59 AC Total Open minus Wetland Wetland 0.00 AC Park 0.00 AC Future 0.00 AC Current Phase Development Fee Acreage: 9.98 AC All other Development Fees Number of Units(Preliminary Plat) 244 Number of Units(Final Plat) 35 Area of new bituminous 4,365 Sq.Yds. All Streets 1 Development Contract Calculations Exhibit B FAIRHILL ESTATE AT NORTH CREEK-2ND ADDITION Development Contract Platting Fee Cacluations Based on 2020 Fee Schedule Surface Water Quality Management Fee Residential,low density $ 108 per acre $709 Comm./Industial/Institutional $ 226 per acre $0 $709 Surface Water Management Fee Residential,low density $ 12,494 per acre $82,048 Residential,high density $ 20,754 per acre $0 Comm./Industial/Institutional $ 24,984 per acre $0 No Fee per PUD Agreement Watermain Trunk Area Charge All Land Use Types $4,611 per acre $46,018 Sanitary Sewer Trunk Area Charge All Land Use Types $ 2,470 per acre $24,651 No Fee per PUD Agreement Park Dedication Dwelling units/acre N/A Percentage of land to be dedicated as Park N/A Required Park Land N/A AC Dedicated Park Land N/A AC Balance paid as Cash in Lieu N/A AC Appraisal value/Acre NIA per acre Satisfied per PUD Agreement Park Development Fee Park Development Fee per acre of required parkland $ 23,736 per acre Total Park Development Fee for preliminary plat N/A No Fee per PUD Agreement Sealcoating Bituminous Seal Coating $ 1.60 per square yard $6,984 Development Contract Escrow Construction Cost $949,559 Contract Administration 3% of Construction Cost $28,487 Construction Observation 5% of Construction Cost $47,478 $75,965 Total of Fees Due upon Platting $129,676 Oversizing Sanitary Sewer Trunk Oversizing N/A Watermain Trunk Oversizing N/A Total Reimbursements Paid upon Proof of Plat Recording $0 i i Development Contract Calculations Exhibit B FAIRHILL ESTATE AT NORTH CREEK-2ND ADDITION Development Contract Construction Security Calculations Construction Security Cost Amount Grading/Erosion Control $13,885 $17,356 Sanitary Sewer $183,330 $229,163 Water Main $114,790 $143,488 Storm Sewer $140,820 $176,025 Street Construction $243,835 $304,793 Boulevard Trees $12,000 $15,000 Boulevard Sodding $11,900 $14,875 Wetland Mitigation N/A WA Park Development(includes trail In park) $145,000 $181,250 Trails in Outlots not constructed with Phase 1 and Phase 2 Trails $84,000 $105,000 Monuments $200 per lot $7,000 $8,750 ! Street Lights $7,000 $8,750 Total Security Amount $1,204,449 1 j i I EXHIBIT C Trail Exhibit l i i i Page 15 of 16 i i EXHIBIT D IRREVOCABLE LETTER OF CREDIT No. Date: TO: City of Farmington 430 Third Street Farmington,MN 55024 Dear Sir or Madam: We hereby issue,for the account of (Name of Developer) and in your favor,our Irrevocable Letter of Credit in the amount of$ ,available to you by your draft drawn on sight on the undersigned bank. f I The draft must: a) Bear the clause,"Drawn under Letter of Credit No. ,dated ,20i, of (Name of Bank) b) Be signed by the City Administrator or Finance Director of the City of Farmington. c) Be presented for payment at (Address of Bank) on or before 4:00 p.m. on November 30,2 This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five(45) days prior to the next annual renewal date(which shall be November 30 of each year),the Bank delivers written notice to the Farmington City Administrator that it intends to modify the terms of,or cancel,this Letter of Credit.Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: Farmington City Administrator,430 Third Street,Farmington,MN 55024,and is actually received by the City Administrator at least thirty(30)days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in anyway be modified,amended,amplified,or limited by reference to any document,instrument,or agreement,whether or not referred to herein. This Letter of Credit is not assignable.This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits,International Chamber of Commerce Publication No.600. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation. r [NAME OF BANK] i By. [name] Its: [identify official] I Ii 3 I Page 16 of 16 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ® Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller,Administrative Assistant SUBJECT: 2020 Primary and General Election Plan DATE: May 18, 2020 INTRODUCTION Due to COVI D-19, some adjustments need to be made for the August Primary and November General Elections for the safety of voters and election judges and to maintain security of the voting process. DISCUSSION The election plan is attached for your review. It addresses absentee voting, polling locations,staffing, safety measures and advertising. Absentee Voting—Begins June 26, 2020. All cities and the county will be pushing for voters to use absentee voting. This allows voters to stay safe and vote from home. The legislature did not approve mail balloting which is different than absentee voting. Absentee voting is a very secure process. This is being encouraged to reduce the number of in-person voters during this pandemic. There are still options for voters to vote in-person if they want during early voting at City Hall which takes place a week before election day or at a polling location on Election Day. Polling Locations and Staffing—Any changes to polling locations will be for the Primary and General Elections. Legislation has passed to allow for the relocating of polling locations due to COVI D-19 before July 1, 2020. 1 have confirmed with the county and city attorney that we can make these changes due to an emergency under M N statute 20413.175. 1 am proposing to move the polling locations to two locations, City Hall and the Rambling River Center. Each location would have three precincts. As shown in the plan,the number of registered voters and Election Day voters are as even as possible between the two locations. The number of voters coming to the polls will be much less due to absentee voting. Within each location, each precinct will be kept separate as far as epollbooks, ballots and ballot counters. Each precinct will be balanced separately at the end of the night. All safety measures will be taken. The county will be mailing PVC cards to registered voters to notify them of this change.The city will also be advertising these changes in every way possible. Other cities are also looking at relocating polling locations. Obtaining election judges will be very difficult, if not impossible,therefore city staff shown in the plan will be used to serve as election judges. Without these changes, it is possible a polling location could become unavailable and election judges could dropout at the last minute. Using city facilities and city staff will ensure our election will take place in a safe and secure manner. Safety Measures—All staff will wear masks, disinfecting wipes will be available to constantly clean surfaces and equipment, it is recommended voters wear masks, 6 ft. distancing for staff and voters will be maintained, a limited number of voters will be allowed in the room at one time. Advertising—There will bean enormous amount of advertising for absentee voting through our website, social media and an informational elections flyer will be mailed to all Farmington residents containing information on absentee and early voting, polling location changes,voter pre-registration, candidate filing, and an absentee ballot application for the voter to submit. This will be sent out in June. Between the Primary and General Elections we will have an article in the Farmington Currents and the county will have a mailing to all registered voters. Candidate Filing—For Mayor and two Council seats takes place July 28 through August 11. Legislation has been passed to allow for electronic filing of the affidavit and fee. The information will be on our website closer to that date. BUDGET IMPACT There will be no charge for the mailing of PVC cards by the county to registered households. The city will be saving approximately$17,000 in election judge wages. The legislature will have grant funding available to cover 80%of the costs associated with promoting absentee voting and preparation of polling locations. ACTION REQUESTED Listen to the presentation of the elections plan and ask any questions you may have. Approval of polling locations will be brought to the June 1, 2020, City Council meeting. ATTACHMENTS: Type Description ❑ Exhibit 2020 Election Plan ❑ Backup Material SOS Article August Primary and November General Election Plan Primary Election Timeline June 1 Resolution to approve new polling locations and city staff as election judges on City Council agenda. June 1 This week begin promoting absentee voting and pre-registration. Website, Facebook, Twitter, Channel 180, Council Roundtable, Posters at City Hall and RRC June 12 Need to have absentee ballot applications mailed by this date to voters on permanent absentee ballot list June 15 Press Release for absentee voting June 22 Mail elections flyer to Farmington residents. Will contain: Absentee and early voting info Polling Locations Change Voter pre-registration Candidate filing info Absentee ballot application for voter to mail in June 22? Mailing of PVC's to registered households (by July 17) June 24 Ballots delivered from printer June 25 Preliminary equipment testing thru July 10 JUNE 26 ABSENTEE VOTING STARTS through August 10 City employees helping in-person absentee voters should wear masks. There are four voting stations set up. Staff includes Cindy, Sue, Shelley, Lauren. July 21 Pre-registration ends July 28 ? Public Accuracy Test July 28 Candidate filing opens thru August 11. Legislation has passed to allow electronic filing. Processing of absentee ballots can start after 4:30 and goes through August 13 August 4 Early voting thru August 10, 5 pm/agent delivery thru August 11, 3 pm August 8 Open 10 -3 for early voting August 11 STATE PRIMARY ELECTION DAY Candidate filing ends 5:00 p.m. August 13 Candidate withdrawal ends 5:00 p.m. Processing of Primary absentee ballots ends today. General Election Timeline September 4 AB applications must be mailed to permanent list of absentee voters by today September 16 Ballots delivered from printer September 17 Preliminary equipment testing thru October 2 SEPTEMBER 18 ABSENTEE VOTING STARTS thru November 2 City employees helping in-person absentee voters should wear masks. There are four voting stations set up. Staff includes Cindy, Sue, Shelley, Lauren, Tracy. October 13 Pre-registration ends October 20 Processing of absentee ballots can start after 4:30 and goes through November 5 October 20? Public Accuracy Test October 27 Early voting thru November 2, 5 pm/agent delivery thru November 2, 3 pm October 31 Open 10-3 for early voting November 3 GENERAL ELECTION DAY November 5 Processing of General absentee ballots ends today. November 6— 13 Canvass election results (maybe Nov 9?) Absentee Ballots Issuing—will be done by Cindy, Sue, Shelley, Lauren(plus Lori and Tracy for General). Wearing of masks for in-person absentee and early voting will be required for staff. Markers, booths and counters will be cleaned after each use. Processing- This is done with two people as a team and will be done by city staff(myself, Lori, Sue, Shelley, Lauren, Tracy). Timing of this will depend on the volume of absentees returned and when. Wearing of masks by staff will be required, social distancing maintained. Could require use of both conference rooms 169 and 170. Processing for the Primary starts end of day July 28, and will continue until August 13. For General processing starts end of day October 20, and will continue until November 5. Polling Locations—Any changes will be for the Primary and General Elections. Legislation has passed to allow for the relocating of polling locations due to COVID-19 before July 1, 2020. 1 have confirmed with the county and Joel,that we can make this polling location change due to an emergency(polling locations closed and lack of election judges due to a pandemic) under statute 204B.175. We can't combine precincts because of the epollbooks and ballot counters, but we can co-locate polling locations. As churches are closed and there is a shortage of election judges,I propose to use City Hall and the Rambling River Center by putting three polling locations in each one as follows: Election Day Voters Registered 2020 PNP 2018 General 2016 General Voters residential RRC 6,411 905 3,828 4,356 P 1,4,5 City Hall 6,617 1,000 3,611 4,315 P2,3,6 Keep in mind, we are expecting many of these to be absentee voters for the Primary and General so numbers of election day voters should be much less. Precincts 1 and 6 are in their normal locations, so we are actually moving 4 precincts. This combination keeps the number of registered voters and the number of election day voters as even as possible between the two locations. The number of election day voters at the 2018 Primary was very similar to the number of voters at the 2020 PNP. Both had a 16%turnout. The law does not require PVC's be mailed to voters for polling location changes due to an emergency, but it is recommended if we have time and I would advertise this everywhere. Mailing of PVC's would have to be done before July 17 and will be done by the county at no cost. Budget wise, keep in mind we are not having to pay election judges,there will be a grant available to pay for 80%of educational materials for absentee voting,preparation of polling locations and disinfecting supplies. I will have street signs at the former polling locations directing voters to the new location. Within the polling locations we still have to keep each precinct separate as far as epollbooks and ballot counters even though they are in the same room. Each precinct will be balanced on its own at the end of the night. With staffing below there would be one person(epollbook) for each precinct(3 precincts =3 epollbooks). One person would be in charge of handing out correct precinct ballot. One person would oversee three ballot counters which shouldn't be a problem. The key will be clear signage. Voters will be greeted at the entrance to the room to determine their correct polling location. There will be signs on the floor, 6 ft distancing,with precinct number, a precinct number sign will be posted above the epollbook chair. If the epollbook receipt does not contain the precinct number,the epollbook judge will write the precinct number on the receipt the voter takes to the ballot judge. The ballot judge will need to make sure they give out the correct ballot. There will be precinct number signs on each ballot counter,the ballot counter judge will need to wipe off each marker placed in a cup and secrecy sleeves and take clean markers and secrecy sleeves back to ballot judge and keep voting booths sanitized. Staffing I would be using city staff on Election Day, rather than hiring election judges. City Hall RRC Cindy precinct voters Lori precinct voters Teah epollbook Lena epollbook Lauren epollbook Sue epollbook Tracy epollbook Shelley epollbook Kalley ballots Katy ballots Adam ballot counter Missie ballot counter Ken(crowd monitoring if needed) Rich(crowd monitoring if needed) Cindy and Lori will be at each location to precinct voters and direct them to correct staff person, covering for breaks,taking care of any issues, etc. For those who are not assisting with absentee voting, the amount of time this will take will be 2- 3 hours one afternoon for training and election day (5:45 a.m.—closing 10:00 pm??). Using these people will allow enough people to remain in the various departments for city business. Safety Measures All staff will wear masks. Disinfecting wipes will be available to constantly clean surfaces including voting booths. It is recommended that voters wear masks. 6 ft. distancing for staff and voters will be maintained by putting signs on the floor. Depending on turnout, allow 10-12 voters in the room at a time. Advertising There will be an enormous amount of advertising for absentee voting through our website, Facebook, Twitter,NextDoor, Channel 180,press release, flyers at city facilities, and an informational elections 4-page flyer mailed to all Farmington residents containing: Absentee and early voting info Polling Locations Change Voter pre-registration Candidate filing info Absentee ballot application for voter to submit Depending on timing of the Fall Currents,there would be an article for the November election. The county will also have a mailing to registered voters between the Primary and General elections. i Minnesota Secretary of State urges Minnesotans to request absentee ballots for 2020 elect... Page 1 of 2 Live Coronavirus Updates Shine on MN More I Minnesota Secretary of State urges Minnesotans to request g q absentee ballots for 2020 election Published 5 mins ago 12020 Election I FOX 9 ST. PAUL, Minn. (FOX 9) - Minnesota Secretary of State Steve Simon is asking all eligible Minnesota voters to apply for absentee ballots and vote by mail this election year due to COVID-19 concerns. "We need to treat the upcoming statewide elections as a public health issue," Simon said in a news release. "To slow the spread of COVID-19, we need to reduce large gatherings, including at polling places. I'm challenging all eligible Minnesota voters to cast their vote from the safety of their home. In the face of this pandemic, it is the right thing to do to protect Minnesotans who are most at risk - and the people who care for them. Fortunately, it's very easy to do." Voters can apply for their absentee ballots online. The tool allows registered voters to request that their ballot to be sent to them by mail for the Aug. 11 statewide primary and the Nov. 3 general election. ! Sponsored Stories Ad Content by7aboola I ! i t I I littps://www.fox9.com/news/niinnesota-secretary-of-state-urges-minnesotans-to-request-ab... 5/13/2020 i Minnesota Secretary of State urges Minnesotans to request absentee ballots for 2020 elect... Page 2 of 2 i If You Like to Play, this City-Building I Forge Of Empires Sponsored If You're Over 40 and Own a PC This Game is a Must I Throne Kingdom at War Sponsored The City of Minneapolis also requested that residents opt for mail-in ballots. All eligible Minnesota voters may request an absentee ballot for the primary and general elections at mnvotes.org. The online application will ask for an e-mail address and an identification number, either a Minnesota-issued driver's license, Minnesota ID card, or last four digits of their Social Security Number. You can check your voter registration status online. You can also register or update your voter registration online. Ad Content by Taboola If Your Dog Eats Dry Food, Do This Every Day I Ultimate Pet Nutrition Nutra Thrive Supplement Sponsored Locate anyone by entering their name(This Is Addicting!) ITruthFinder sponsored This materlal may not be published,broadcast,rewritten,or redistributed.02020 FOX Television Stations https://www.fox9.com/news/minnesota-secretary-of-state-urges-mini iesotans-to-request-ab... 5/13/2020 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON 0 651-28o-6800 --.0000010 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: COVI D Update DATE: May 18, 2020 INTRODUCTION An update on city activities related to the COVI D pandemic will be provided to the city council. ATTACHMENTS: Type Description D Resolution Draft Resolution RESOLUTION NO.R27-20 A RESOLUTION ALLOWING TEMPORARY OUTDOOR CUSTOMER SERVICE AREAS Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington,Minnesota,was held in the council chambers of said city on the 18th day of May 2020 at 7:00 p.m. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Hoyt and Member Bernhj elm introduced and seconded the following: WHEREAS,the City of Farmington has declared a Local Peace Time Emergency due to the COVID-19 Health Pandemic; and, WHEREAS, in furtherance of the federal, state, and local government response,there is a need to provide multiple additional and alternative customer service areas on commercial sites in order to limit forward-facing exchanges between customers and employees, and to promote physical and social distancing between persons engaged in business activities within the city; and, NOW, THEREFORE, BE IT RESOLVED that after due consideration,the Mayor and City Council of the City of Farmington, Minnesota, hereby declare that effective immediately, and notwithstanding any City Code provision to the contrary, any business located in a commercial or industrial zone may establish drive-up or drive-thru areas, customer ordering,waiting or pick- up areas, or customer seating or service areas on its property to facilitate safe commercial activity conducted consistent with federal and state orders or guidelines, in accordance with the following: 1. Temporary outdoor use may occur in parking areas or green space areas without need for a variance. However, if the business is not the fee owner of the property used by the business for the temporary outdoor use, any temporary outdoor use must have written approval from the fee owner of the premises, and 2. No city permits are required prior to establishing these customer areas, but operators must prepare a traffic management plan and provide on-site traffic and operational management. Customer waiting or service areas must not impede sidewalk usage no block disabled person parking spaces or ramps, nor shall any activity create nuisance conditions for abutting properties, and 3. On-site signage and storage is authorized as well as limited on-site directional signage. Temporary tables, tents, and sun shelters may be erected, but any structure requiring building and fire code permits must submit plans and permit applications for review by city staff. If liquor is to be dispensed or consumed in the proposed temporary customer areas, the licensee must first apply for and obtain a modification to the defined premises area in their liquor license. This policy will continue until repealed by subsequent City Council action or termination of the Local Peace Time Emergency. This resolution adopted by recorded vote of the Farmington City Council in open session on the 18th day of May 2020. "ab r Attested to the day of May 2020. Administrat r SEAL