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05.17.21 Council Packet
CITY OF Meeting Location: Farmington City Hall FARMINGTON 430 Third Street Farmington,MN 55024 CITY COUNCIL REGULAR MEETING AGENDA May 17, 2021 7:00 P.M. Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVEAGENDA S. ANNOUNCEMENTS I COMMENDATIONS a) American Legion Auxiliary Poppy Month Information Received b) Proclaim May 2021 as Mental Health Awareness Month Proclaimed 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 3, 2021, City Council Meeting— Administration Approved b) Approve Minutes of the May 3, 2021, City Council Work Session— Administration Approved c) Approve 2022 Apple Valley/Lakeville/Farmington Ambulance Budget— Administration Approved d) Adopt Resolution Accepting Donation of Audio/Visual Equipment from the League of Minnesota Cities - IT R22-21 e) Adopt Resolution to Participate in All Hazard Mitigation Planning Process— Police R23-21 f) Approve a Stormwater Management Maintenance Agreement and Easement Agreement for ABW Holdings LLC (HOBO Inc.)—Public Works Approved g) Approve Seasonal Hiring—Human Resources Approved h) Acknowledge Financial Review for the Quarter Ending March 31, 2021 - Finance Acknowledged i) Approve Bills - Finance Approved REGULAR AGENDA 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) 2020 Management and Comprehensive Annual Financial Report Information Received b) Adopt Resolution and Ordinance Approving Dakota Meadows Schematic R24-21 PUD Plan and Comprehensive Plan Amendment and Rezoning Ord 021-757 c) Adopt Resolution and Ordinance Approving River's Edge Development R25-21 Comprehensive Plan Amendment and Rezoning Ord 021-758 d) Adopt Resolution Approving Final Plat and Development Contract Fairhill Estate at North Creek 4th Addition R26-21 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) 2020 Public Works Annual Report Information Received 13. CITY COUNCIL ROUNDTABLE 14. ADJOURN CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 OFarmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Administrative Assistant SUBJECT: American Legion Auxiliary Poppy Month DATE: May 17, 2021 INTRODUCTION Members of the American Legion Auxiliary Ladies will be in attendance to promote Poppy Month. DISCUSSION Members of the American Legion Auxiliary Ladies will be in attendance to promote Poppy Month. Poppies will be distributed during the month of May. BUDGET IMPACT NA ACTION REQUESTED For your information. CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ■ O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Proclaim May 2021 as Mental Health Awareness Month DATE: May 17, 2021 INTRODUCTION Mayor Hoyt asked that the city council consider proclaiming May 2021 as Mental Health Awareness Month in Farmington. DISCUSSION A draft proclamation has been included with the packet for the city council to consider in regards to Mental Health Awareness Month. Mental health issues have been discussed in for years in our community. Over the past year,the impact of the pandemic on each of us has made this issue even more significant. The attached proclamation stress the importance of prevention and the tools that are available to improve mental health. BUDGET IMPACT NA ACTION REQUESTED If the city council is comfortable, a motion should be made to support the request of Mayor Hoyt to proclaim May 2021 as Mental Health Awareness Month in Farmington. ATTACHMENTS: Type Description D Exhibit Proclamation FARMINGTON PROCLAMATION Mental Health Awareness Month 2021 WHEREAS, mental health is essential to everyone's overall health and well-being; and WHEREAS, all Americans face challenges in life that can impact their mental health; and WHEREAS, prevention is an effective way to reduce the burden of mental health conditions; and WHEREAS, there are practical tools that all people can use to improve their mental health and increase resiliency; and WHEREAS, mental health conditions are real and prevalent in our nation; and WHEREAS, with effective treatment, those individuals with mental health conditions can recover and lead full, productive lives; and WHEREAS, each business, school, government agency, healthcare provider, organization and citizen shares the burden of mental health problems and has a responsibility to promote mental wellness and support prevention efforts. THEREFORE, I, Joshua Hoyt, Mayor of Farmington, do hereby proclaim May 2021 as Mental Health Awareness Month in Farmington. As Mayor, I also call upon the citizens, government agencies, public and private institutions, businesses and schools in Farmington to commit our community to increasing awareness and understanding of mental health, the steps our citizens can take to protect mental health, and the need for appropriate and accessible services for all people with mental health conditions. PROCLAIMED this 17th day of May 2021. J hua Hoyt, Mayo CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the May 3, 2021 City Council Meeting-Administration DATE: May 17, 2021 INTRODUCTION Attached for your review are the minutes of the May 3, 2021 city council meeting. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the May 3, 2021 city council meeting. ATTACHMENTS: Type Description D Cover Memo May 3, 2021 City Council Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES REGULAR MEETING MAY 3, 2021 1. Call to Order Mayor Hoyt called the meeting to order at 7:00 p.m. 2. Pledge of Allegiance Mayor Hoyt led those in attendance in the Pledge of Allegiance. 3. Roll Call Present-Hoyt, Pearson, Porter and Wilson Absent-Bernhjelm Staff Present-Administrator McKnight, Deputy Fire Chief Price, Police Chief Rutherford, Human Resources Director Gabbard, and Attorney Koch. 4. Agenda Motion by Pearson, second by Porter, to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations a) Oath of Office and Badge Pinning of Fire Officers Deputy Fire Chief Price introduced two new fire lieutenants, Steven Endres and Scott Mattingly. Administrator McKnight administered the oath of office to both new lieutenants. 6. Citizen Comments None 7. Consent Agenda Motion by Pearson, second by Wilson,to approve the consent agenda: a) Approve Minutes of the April 19, 2021 City Council Meeting-Administration May 3, 2021 Minutes -1- b) Acknowledge Satisfaction of Joint Powers Agreement Between the City of Farmington and Farmington Youth Lacrosse Association and Acceptance/Ownership of Turf- Administration c) Approve Wold Architects and Engineers Proposal to Provide Professional Services Related to City Hall Expansion Space Build Out for the United States Department of Agriculture-Parks d) Adopt Resolution R20-2021 Accepting Donation from Marlene Swantek to the Rambling River Center-Parks e) Adopt Resolution R21-2021 Accepting Donation of Tree Seedlings from Dakota Electric Association-Parks f) Approve Joint Powers Agreement Between the County of Dakota and the City of Farmington for Sentence to Service Program Work Crews-Parks g) Approve Promotion to Fire Lieutenant-Human Resources h) Approve Promotion to Fire Lieutenant-Human Resources i) Approve Bills-Finance APIF, motion carried. 8. Public Hearings None 9. Award of Contract None 10. Petitions, Requests and Communications a) Human Resources Department Annual Report Human Resources Director Gabbard presented the department annual report. Topics discussed with the city council included recruiting, new hires, payroll, compliance issues, medical benefits and wellness Councilmember Wilson thanked Gabbard for her work on the medical benefits and wellness programs. Councilmember Porter offered her thanks on all of the work. Councilmember Pearson thanked Gabbard for her work and for the cost savings. Mayor Hoyt stated that this was great work and thanked Gabbard for her work with staff. May 3, 2021 Minutes -2- 11. Unfinished Business None 12. New Business a) Construction Manager Agreement with APPROV Development for Liquor Store Buildout Administrator McKnight presented the draft construction manager agreement with APPRO Development for the liquor store building project. The agreement with APPRO Development details the city objectives to complete an interior remodel of the existing space to accommodate Farmington Liquor Store needs; construction of a break room, restroom, two offices, sales area and increased storage area; and the construction of the space before the lease expires at the existing location. Some of the work involved in this project includes- • Demo of the existing walls, doors, ACT ceiling, flooring, etc.for the construction of new space. • Framing of walls and soffits for new space, rough in electrical, sheetrock, etc. • Installation of new doors and window frames. • New plumbing in the restroom and break room. • Update electrical service. • Installation of security system, cameras, etc. The space will be transformed from a 1970's former mall space that has not been used in many years to a modern day retail space. Staff has been working with APPRO development to obtain the most recent and realistic costs for a transition from our current space to the new space. The cost of this type of move is expensive and is being taken into account with the draft budget. We are finding the most expensive parts of this transition include the move of the two coolers from the old space to the new, the construction of new bathrooms, updating of the electrical system and the construction of a new retail/check-out counter space. The current budget for this portion of the project is estimated to be $296,377 that includes $35,017 for the cost of the construction manager contract with APPRO Development. The overall project cost is estimated at$378,627 with the additional estimates for signage, security, cameras, communications, etc. This cost does not include the estimate to run fiber to the facility that I have detailed with the city council previously. We are waiting for May 3, 2021 Minutes -3- guidance on the use of recovery act dollars from the US Treasury to see if this is something that those funds can be used for. The costs of the project and this agreement will be paid for out of the liquor store fund, specifically the dollars the city has been setting aside for capital improvement related costs. This funding pot had an estimated fund balance at the end of 2020 of$860,015. As a reminder,the city will be receiving$100,000 in funding from the property owner to help fund this project. Councilmembers expressed continued support for the project and the move. McKnight reminded the city council that the dollars to be used for this project have been set aside each year from store profits. Motion by Wilson, second by Porter,to approve the agreement with APPRO Development for construction manager services for the relocation and building of the downtown liquor store. APIF, motion carried. 13. City Council Roundtable Pearson-Thanked staff for their continued good work and financial wellness. Encouraged residents to get out and support Farmington. Porter-Shared her thanks for the Arbor Day program last week. Wilson-Thanked a resident for their donation to the Rambling River Center. Thanked the city administrator and staff for their work on employee safety during the pandemic. Thanked Mayor Hoyt for his State of the City presentation. Rutherford-Encouraged residents to attend the Police Department Open House on May 15tH Hoyt-Thanked those who participated in Park and Pond Cleanup Day and thanked those involved with the State of the City address last week. 14. Closed Session Motion by Wilson, second by Pearson,to move into closed session at 7:29 p.m. for the purpose of discussing labor negotiations strategies. APIF, motion carried. Present in the closed session were four city councilmembers,Administrator McKnight, Human Resources Director Gabbard and Attorney Koch. May 3, 2021 Minutes -4- 15. Adjourn Motion by Wilson, second by Pearson, to adjourn the meeting at 8:20 p.m. APIF, motion carried. Respectfully Submitted 59 g. X10 & David McKnight, City Administrator May 3,2021 Minutes -5- CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 III® O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the May 3, 2021 City Council Work Session-Administration DATE: May 17, 2021 INTRODUCTION Attached for your review are the minutes of the May 3, 2021 city council work session. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the May 3, 2021 city council work session. ATTACHMENTS: Type Description D Cover Memo May 3, 2021 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION MAY 3,2021 Call to Order Mayor Hoyt called the work session to order at 5:00 p.m. Roll Call Present-Hoyt, Pearson, Porter and Wilson Absent-Bernhjelm Parks and Recreation Advisory Commission Present-Crabtree, Caron and Koss Absent-Suchanek Also Present-Administrator McKnight,Assistant Fire Chief Allbee and Public Works Director Gehler Agenda Motion by Porter,second by Wilson,to approve the agenda as presented.APIF, motion carried. Potential Referendum and Ballot Question The Parks and Recreation Advisory Commission asked the city council to have a discussion about a possible referendum and ballot question in 2022. Mayor Hoyt reviewed the results of the last referendum in 2016 and the two groups talked about what worked with that process,what could have been done differently and the current state of the world. Administrator McKnight reviewed the approach taken in 201 when the city last conducted a community survey. The groups discussed possible options on gathering public input including different types of surveys and technology. The two groups had discussion on different options that could be included in a park referendum,groups to target with amenities, needs and wants of the community and more. After much discussion,the consensus of the group was the work with the city administrator and parks and recreation director as follows- Bring back options to consider to gather public input ✓ Look at this work as a multi-phased project ✓ Consider options for an advisory group on this topic McKnight stated he would make this a priority project for the new parks and recreation director. Skate Park The Parks and Recreation Advisory Commission shared a recent presentation they heard from a group or residents on a potential skate park. Both groups appreciated the involvement of youth in this request. It was agreed that this issue should be considered as a part of the potential referendum discussions. Pickle Ball The Parks and Recreation Advisory Commission asked the city council about looking at possible changing one of the tennis courts at Rambling River Park to a pickle ball court. The city council was in support of the commission looking at this potential project. Farmington Fire Relief Association Farmington Firefighter Relief Association President Jeff Allbee shared information on what the association does in terms of providing a pension to firefighters and fundraising efforts. A history of the association was reviewed,the current financial health discussed and the annual contribution made by the city to the association was detailed. Allbee shared that the association is currently reviewing financials and is expected to request an increase in the annual pension soon. Councilmembers thanked Allbee for the information and pledged to continue the positive working relationship that exists between the two groups. City Administrator Update Administrator McKnight inquired into possible dates for the second round of interviews for the community development director. McKnight will inquire with all councilmembers and get back in touch with all members with a date that will work for as many members as possible. McKnight inquired about the July 6, 2021 city council meeting. The city council agreed to cancel this meeting. Councilmember Pearson provided an update on the planning taking place for Dew Days in 2021. Adjourn Motion by Wilson,second by Pearson,to adjourn the meeting at 6:50 p.m. APIF, motion carried. 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 2022 Apple Valley/Lakeville/Farmington Ambulance Budget- Administration DATE: May 17, 2021 INTRODUCTION Attached for your review and consideration is the draft 2022 Apple Valley/Lakeville/Farmington budget. DISCUSSION The joint powers agreement that exists as a part of the Apple Valley/Lakeville/Farmington Ambulance states that on or before July 1st of each year,the annual operating budget for the following calendar year as recommended by the ALF Board shall be submitted to each member city council for approval or disapproval. The draft budget that is attached is very similar to the budgets that have been in place the past few years. Since ALF contracted out the day to day operations of the ambulance service to Alllina,the budget that remains in place is very simple. The dollars that remain in the budget have traditionally been kept here to be used for any challenges that may arise related to the licensure issue for our area. I can explain this in more detail prior to the meeting if city councilmembers have any questions. The ALF Board is scheduled to meet on Thursday, May 13, 2021 and will likely approve the draft budget. Councilmember Wilson is the city council representative on that board. If any issues arise from that meeting,you will be made aware of them. BUDGET IMPACT The ALF budget does not impact the city budget. The reserves held in the ALF budget are a layer of protection from any additional city funds having to be spent in the future on ALF related issues. ACTION REQUESTED Ask any questions you may have on the draft 2022 ALF budget. Once the city council is comfortable, a motion should be made to approve the 2022 ALF Ambulance budget as presented. ATTACHMENTS: Type Description D Cover Memo Draft 2022 ALF Budget i t PARAMEDIC April 22,2021 A" Item No.AV _ t i Proposed 2022 Budget Proposed Action Consideration of the proposed 2022 Budget. Overview The Joint Powers Agreement states "On or before July 1 of each year,the annual operating budgetfor 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 t Minnesota's Revenue Recapture program.Going forward,the only revenues anticipated are from the three townships and investment returns. i If approved,the Budget will be forwarded to each respective City Council for their consideration of approval. i I i I r i I t i Statement of Cash Flows 2020 2021 2021 2022 I Actual Adopted Estimate Proposed Additions j Townships $ 11500 $ 1,500 $ 1,500 $ 1,500 Interest on investments 5,899 3,800 3,800 3,800 Total additions 7,399 5,300 5,300 5,300 Deductions Expenses Other 182 500 500 500 Total deductions 182 500 500 500 Net changes in cash before distributions 7,217 4,800 4,800 4,800 Distribution of cash .Apple Valley - - - - Lakeville - - - - Farmington Total distribution of cash - - - i Net changes in cash position 7,217 4,800 4,800 4,800 Cash balance,January 1 198,626 203,606 205,843 210,643 Cash balance, December 31 $ 205,843 $ 208,406 $ 210,643 $ 215,443 I 3 I x 1 1 i ii I I I i i f I i r I i I CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Peter Gilbertson, Network Administrator SUBJECT: Adopt Resolution Accepting Donation of Audio/Visual Equipment from the League of Minnesota Cities-IT DATE: May 17, 2021 INTRODUCTION The League of Minnesota Cities has donated A/V equipment to the city. DISCUSSION The League of Minnesota Cities recently renovated their conference rooms and offered to donate their old equipment to its members. Farmington received two flat TV monitors,two half-height glass door cabinets,miscellaneous A/V cables and equipment,two sets of Crestron Media Management system,J BL Ceiling speakers and mounts,tri-element hanging microphones and associated mounts. This equipment will be used for updating/upgrading the City Council Chambers, Emergency Operations Center, and conference rooms. BUDGET IMPACT N/A ACTION REQUESTED Adopt the attached resolution accepting the donation of A/V egiupment from the League of Minnesota Cities. ATTACHMENTS: Type Description D Resolution Donation Resolution D Backup Material Equip Bill of Sale RESOLUTION NO. R22-21 ACCEPT DONATION OF A/V EQIUPMENT FROM THE LEAGUE OF MINNESOTA CITIES 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 17th day of May 2021 at 7:00 p.m. Members Present: Hoyt, Bernhj elm, Pearson, Porter, Wilson Members Absent: None Member Bernhj elm and Member Pearson introduced and seconded the following: WHEREAS, a donation of 2 flat TV monitors, 2 half-height glass door cabinets, miscellaneous AN cables and equipment, 2 sets of Crestron Media Management system, JBL Ceiling speakers and mounts, tri-element hanging microphones and associated mounts; and, WHEREAS, it is required by State Statute that this donation be formally accepted; and, WHEREAS, it is in the best interest of the city to accept this donation. NOW, THEREFORE,BE IT RESOLVED that after due consideration, the Mayor and City Council of the City of Farmington, Minnesota, hereby accepts with gratitude the donation provided by the League of Minnesota Cities. This resolution adopted by recorded vote of the Farmington City Council in en sessio on the 17th day of May 2021. ayor Attested to the "7"` day of May 2021. C U City dministrator SEAL r LMC EQUIPMENT BILL OF SALE THIS AGREEMENT is made this 6th day of May 2021, by and between the City of Farmington, Minnesota ("Buyer")and the League of Minnesota Cities("Seller"). Let it be known that the Buyer agrees to purchase from Seller for the price of$0.00(US Dollars)for the equipment listed (Hereinafter referred to as the"Equipment"). Description: 2 flat TV monitors 2 half height glass door cabinets miscellaneous A/v cables and equipment. • 2 sets of Crestron Media Management system and associated components. • JBL Ceiling speakers and mounts tri-element hanging microphones and associated mounts. Seller shall deliver the Equipment to Buyer on or before .20 OR Buyer shall accept delivery of the equipment at the Seller's place of business located at 145 University Avenue West St.Paul, MN 55103 on the 6a' day of May, 2021. Seller acknowledges it does not qualify as a merchant of said Equipment but that it has the full ownership rights and is legally allowed to sell the Equipment.In addition,the Seller is transferring the Equipment"as-is" condition with all faults,latent and patent;without any warranties,express,implied, or oral, including,but not limited to,warranties of merchantability or fitness for a purpose or use.The Seller is not responsible for any omissions or errors in the description of items being offered for sale. Before the Equipment was disassembled it was in operating condition.Currently the Equipment is not in operating condition.ALL SALES ARE FINAL. Entire Agreement. This Agreement supersedes any prior or contemporaneous representations or agreements,whether written or oral,between Seller and Buyer and contains the entire agreement. Any modification or amendment to this Agreement shall require a written agreement signed by both Seller and Buyer.This Agreement shall be governed by and interpreted in accordance with the laws of the State of Minnesota. Captions or headings contained in this Agreement are included for convenience only and form no part of the agreement between Seller and Buyer. pg. 1 of 2 Equipment Bill of Sale IN WITNESS WHEREOF,Seller and Buyer, by action of their respective governing bodies,caused this Agreement to be approved. BUYER: SELLER: CITY OF Farmington,MINNESOTA League of Minnesota Cities BY: �� :� U jLJ3 L'n- ct BY:-,4//, IBJ ALJ a 2-V1- by'A 1 N 2 .5 TC R- flss r5 v`T�eG N� ��S✓�S �LE�-To d'Z. [TITLE OF CITY POSITION] [TITLE OF LEAGUE POSITION] AN . ANM (CI NESS] OR [LEAGUE WITNESS] pg.2 of 2 Equipment Bill of Sale CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 �IIII� O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Gary Rutherford, Chief of Police SUBJECT: Adopt Resolution to Participate in All Hazard Mitigation Planning Process-Police DATE: May 17, 2021 INTRODUCTION Keeping residents safe when disaster strikes is important to the City of Farmington and Dakota County. I n 2005, 2010 and 2015, Dakota County partnered with Farmington and other cities in the county to prepare a plan to reduce damages related to disaster events and ensure that communities remain eligible for FEMA (Federal Emergency Management Agency)funds to mitigate and recover from disaster. This multi-jurisdictional plan is the Dakota County All-Hazard Mitigation Plan, approved in 2006, 2011 and 2016. FEMA requires the plan be updated every five years:an updated plan is due in 2021. DISCUSSION Dakota County and incorporated cities, including Farmington, are required to have a plan and may choose to develop their own plan or partner on a multi-jurisdictional plan. Dakota County has invited us to partner with them on an effective, all-inclusive plan as we have in the past. BUDGET IMPACT There are no costs anticipated in the preparation of this plan. Any incidental expenses will be covered through the Emergency Management account in the Police Department's budget. ACTION REQUESTED Staff requests that you review the attached resolution, ask any questions that you may have, and then adopt the resolution. ATTACHMENTS: Type Description a Resolution All Hazard Mitigation Plan Process Resolution RESOLUTION NO. R23-21 RESOLUTION TO PARTICIPATE IN ALL HAZARD MITIGATION PLANNING PROCESS 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 17th day of May2021 at 7:00 p.m. Members Present: Hoyt, Bernhj elm, Pearson, Porter, Wilson Members Absent: None Member Bernhj elm and Member Pearson introduced and seconded the following: WHEREAS,the County of Dakota coordinated preparation of an initial multi jurisdiction all- hazard mitigation planning process in 2006 as required under the Disaster Mitigation Act of 2000; and, WHEREAS,the Dakota County All-Hazard Mitigation Plan was updated and approved in 2011 and 2016 with participation by the cities within Dakota County; and, WHEREAS, federal law requires the plan be updated every five years and the next update is due in 2021; and, WHEREAS,the City of Farmington participated in drafting the 2016 Dakota County All- Hazard Mitigation Plan, and later reviewed and approved the plan; and, WHEREAS,the Act requires public involvement and local coordination among local units of government and businesses as part of the planning process; and, WHEREAS,the plan must include descriptions of land uses and development trends,risk assessment including past hazards, hazards that threaten the county, maps of hazards, and estimates of structures at risk; and, WHEREAS,the plan must include a mitigation strategy including goals and objectives and an action plan identifying specific mitigation projects and costs, in addition to; and a maintenance or implementation process including plan updates, integration of the plan into other planning documents, and public education components; and, WHEREAS, approval of the all hazard mitigation plan update will continue the County's eligibility to receive federal and state Hazard Mitigation Grant Program project grants; and, WHEREAS,this resolution does not preclude the City of Farmington from preparing its own plans sometime in the future should they desire to do so. NOW, THEREFORE,BE IT RESOLVED that the City of Farmington supports the County all hazard mitigation planning effort, agrees to participate with the County in preparing an update to the multi jurisdictional plan and recognizes that the plan will apply within the townships. This resolution adopted by recorded vote of the Farmington City Council in open session on the 17th day of May 2021. M yor Attested to the /7 44 day of May 2021. Cidministrator SEAL CITY OF © 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov �III��I TO: Mayor, Councilmembers and City Administrator FROM: Matt Decur, Assistant City Engineer SUBJECT: Approve a Stormwater Management Maintenance Agreement and Easement Agreement for ABW Holdings LLC (Hobo Inc.)-Public Works DATE: May 17, 2021 INTRODUCTION At the May 11, 2021 meeting,the Planning Commission approved a site plan to allow construction of a building at 5140 211th Street West in the I ndustrial Park. To meet stormwater management requirements,the plan incorporated several private best management practices (BMPs). The state requires municipalities to ensure maintenance and function of private stormwater practices though an agreement with the property owner. DISCUSSION ABW Holdings, LLC, has proposed to construct a 21,600 square foot building, loading dock, and parking lot at 5140 211th Street for expansion of H 0 BO, I nc. To meet stormwater management requirements, construction will also include several private best management practices, including infiltration basins. The attached Stormwater Management Maintenance Agreement and Easement Agreement requires ABW Holdings and HOBO to regularly maintain and inspect the BMPs to maintain compliance with stormwater management requirements. The agreement also allows the city to enter the property in order to perform any necessary work on stormwater BMPs if the owner fails to keep the site in compliance. BUDGET IMPACT Per the agreement, if it becomes necessary for the city to perform maintenance on the site's stormwater BM Ps,the owner must reimburse the city for the costs of the work. ACTION REQUESTED Approve the Stormwater Management Maintenance Agreement and Easement Agreement with ABW Holdings, LLC. ATTACHMENTS: Type Description Stormwater Management Maintenance D Backup Material Agreement and Easement Agreement for ABW Holdings LLC(Hobo Inc.) D Backup Material Site Plan D Backup Material Stormwater Maintenance Plan STORMWATER MANAGEMENT MAINTENANCE AGREEMENT AND EASEMENT AGREEMENT THIS AGREEMENT is made and entered into this day of >-1ay —, ,g7CQ1 by and between the City of Farmington, a Minnesota municipal corporation, organized under the laws of the State of Minnesota (the "CITY") and ABW Holdings, LLC, a Minnesota Limited Liability Company(the "OWNER"). RECITALS WHEREAS, the OWNER has proposed construction of a new warehouse building and other site improvements for Hobo, Inc. ("DEVELOPMENT") on property within the CITY; and WHEREAS, in evaluating the design of the project, the CITY requires certain stormwater management standards be met; and WHEREAS, water quality, rate control, and volume control are important stormwater management standards, required by the CITY; and WHEREAS,the OWNER has submitted a plan for construction and maintenance of stormwater management practices designed to meet CITY standards. NOW THEREFORE, in consideration of mutual covenants of the parties set forth herein,the sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Purpose.The purpose of this AGREEMENT is to set forth the terms and conditions for the construction, monitoring, and maintenance of the water quality, rate control, and volume control stormwater management facilities for the DEVELOPMENT("STORMWATER FACILITIES"). 2. Recitals.The recitals set forth above are incorporated as if fully set forth herein. 3. STORMWATER FACILITIES Required.The OWNER will construct the DEVELOPMENT on land legally described in Exhibit A. In connection with the construction of the DEVELOPMENT, the OWNER is required to construct STORMWATER FACILITIES. 4. Design and Installation of STORMWATER FACILITIES. 4.1 The STORMWATER FACILITIES shall be constructed in accordance with the site plan ("SITE PLAN") approved by the CITY. Said SITE PLAN is attached as Exhibit B. 4.2 The SITE PLAN of the STORMWATER FACILITIES will not be changed without prior written approval of the CITY. 5. Monitoring and Maintenance of STORMWATER FACILITIES. 5.1 The OWNER is solely responsible for the monitoring and maintenance of the STORMWATER FACILITIES to ensure that the STORMWATER FACILITIES provide adequate capacity for water quality, rate control, and volume control currently and in the future. 5.2 Monitoring and maintenance activities shall comply with the monitoring and maintenance plan ("STORMWATER MANAGEMENT MAINTENANCE PLAN") prepared by a professional engineer, registered in the State of Minnesota and approved by the CITY.The STORMWATER MANAGEMENT MAINTENANCE PLAN, attached as Exhibit C, shall include (but not be limited to) methods for cleaning, repairing, and other work deemed necessary to ensure the proper function of the STORMWATER FACILITIES. . 5.3 The OWNER must implement the STORMWATER MANAGMENT MAINTENANCE PLAN to ensure that the STORMWATER FACILITIES continue to provide adequate capacity. 5.4 The OWNER must annually conduct at least one inspection of the STORMWATER FACILITIES and submit an annual inspection report to the CITY on or before June 30th of each year.The annual inspection report must include enough information to determine if the STORMWATER FACILITIES are providing adequate capacity for water quality, rate control, and volume control. 6. Default. A failure to comply with the SITE PLAN or STORMWATER MANAGEMENT MAINTENANCE PLAN (collectively "PLANS") or to correct any deficiency identified in the annual inspection report or with any of the terms and conditions of this AGREEMENT shall constitute a default of this AGREEMENT. In the event of a default, the CITY shall provide the OWNER with notice as provided for in Paragraph 7.The notice shall set forth the nature of the default and the time within which the OWNER must cure the default,which shall be not less than 2 weeks. Should OWNER fail to cure the default within the time set forth in the notice, CITY shall have the right, but not the obligation to, enter upon the property legally described in Exhibit A and perform the required work to cure the default, except that in the event the nature of the default is such that, in the sole judgment of the CITY, it may pose an imminent potential risk to the health, safety or welfare to persons or property, the CITY may immediately and with no notice to OWNER enter the property legally described in Exhibit A and perform the required work to cure the default. All costs incurred by the CITY to cure the default, including administrative costs, shall be the sole responsibility of the OWNER. 6.1 The CITY shall invoice the OWNER for the costs incurred to cure the default. 6.2 The OWNER shall pay said invoice within 30 days of receipt thereof. 6.3 If the OWNER fails to pay said invoice within 30 days of receipt thereof, the City may cause the costs to be assessed against the property legally described in Exhibit A pursuant to Minnesota Statutes Section 429.101. 7. Notices.All notices required under this AGREEMENT shall be personally delivered or sent by certified or registered mail, addressed as follows: To the OWNER: ABW Holdings LLC 21205 Eaton Avenue Farmington, MN 55024 To the CITY: City of Farmington 430 Third Street Farmington, MN 55024 8. Right to Access.The OWNER grants the CITY, its successors, and assigns, a permanent non- exclusive easement and the right to enter upon the property legally described in Exhibit A for the purpose of inspection of the STORMWATER FACILITIES, curing any default, or to prevent against any imminent potential threat to the health, safety or welfare of persons or property. 9. Indemnification and Hold Harmless.The OWNER shall indemnify, defend and hold the CITY, its Council, agents,employees, attorneys and representatives harmless against and in respect of any and all claims,demands, actions,suits, proceedings, liens, losses, costs, expenses, obligations, liabilities, damages, recoveries,and deficiencies, including interest, penalties,and attorneys'fees,that the CITY incurs or suffers,which arise out of, result from or relate to any acts or omissions involved in the carrying out of the obligations or rights under this AGREEMENT. The responsibility to indemnify and hold the CITY harmless from claims arising out of or resulting from the actions or inactions of the CITY, its Council,agents, employees, and representatives does not extend to any willful or intentional misconduct on the part of any of these individuals. 10. Recording. The OWNER shall cause this AGREEMENTto be recorded against the property legally described in Exhibit A within 10 days of its execution. The OWNER shall provide evidence of recording to the CITY within 10 days thereafter. 11. Heirs,Successors,and Assigns.This AGREEMENT shall run with the land legally described in Exhibit A and shall be binding against all heirs, successors and assignees of the OWNER. 12. Severability. In the event any provisions of this AGREEMENT shall be held invalid, illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereby. 13. Waiver. Failure of either party at any time to require performance of any provision of this AGREEMENT shall not affect its right to require full performance thereof at any time thereafter and the waiver by either party of a breach of any such provision shall not be taken or held to be a waiver of any subsequent breach thereof or as nullifying the effectiveness of such provision. 14. Reimbursement of Fees and Costs.The OWNER agrees to reimburse the CITY for all costs incurred by the CITY in the enforcement of this AGREEMENT, or any portion thereof, including court costs and reasonable attorney's fees. 15. Remedies. In addition to any other remedies available to the CITY at law or in equity, including the remedies contained in Paragraph 6 herein, CITY may sue OWNER for damages and/or may maintain a suit for specific performance of this AGREEMENT. All rights and remedies provided to the CITY herein are cumulative and the exercise of one shall not operate to bar the exercise of any other rights under this AGREEMENT or provided by law. 16. Governing Law.This AGREEMENT shall be governed by the laws of the State of Minnesota. Executed by the parties hereto as of the day and date first above written CITY OF FARM INGTO By: By: o ua Hoyt, Maor Da ' McKnight, City ministrator STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this /7'-4 day of , PA/ , by Joshua Hoyt, Mayor, and David McKnight, City Administrator,of the City of Farmington on behalf of the City and pursuant to the authority granted by its City Council. CYNTHIAA MULLER NOTARY€ PUBLIC NOTARY PUBLIC ty ` MINNESOTA OWNER My Commission Expires Jan.31,2025 ABW HOLDINGS, LLC By: DC Agner, Owner STATE OF MINNESOTA ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of by NOTARY PUBLIC Reviewed as to Form and Execution: By: Joel Jamnik, City Attorney EXHIBIT A LEGAL DESCRIPTION OF PROPERTY LOT 3 BLOCK 3, FARMINGTON INDUSTRIAL PARK EXHIBIT B SITE PLAN EXHIBIT C STORMWATER MANAGEMENT MAINTENANCE PLAN HOBO, INC. (ABW HOLDINGS LLC) 0 ------------ I . � I 55ae lip � i z • Z : I � I ! I I I o 0 I .= " - J I I I �I I I' •4 � J ry O�GE . m S F4 a m g o to � `A z a f w � ri W m 9 3 ;m r m s A `F g s"o i 1 S Z $7 is NN Z PRELIMINARY NOT FOR CONSTRUCTION PRELIMINARY NOT FOR CONSTRUCTION Stormwater Management Maintenance Plan Hobo, Inc. (ABW Holdings LLC) Farmington, MN This document will provide direction for performing an inspection and any necessary maintenance of stormwater management practices. It is the responsibility of the property owner to perform the inspections of the stormwater management practices and to perform maintenance as needed. This maintenance plan provides a map of the site which identifies all applicable maintenance areas as well as a copy of the Post Construction Stormwater Management Maintenance Agreement. The Inspection Process Below are the inspection checklists to be completed on a scheduled interval stated on each checklist by the property owner or an assigned subcontractor. Refer to the Site Map in Appendix A for item identification. Perform Necessary Maintenance After performing the inspection process, any required maintenance must be promptly performed by the property owner or an assigned subcontractor.The primary site access for maintaining the Stormwater Management Practices is identified in Appendix A. All clippings and removed sediment must be disposed of according to applicable regulations. Soil should be tested for contamination prior to performing any pond remediation work. It is assumed that maintenance will consist of a combination of labor and equipment use to accomplish tasks ranging from pond sediment removal to trash cleanup. Record Keeping It is the responsibility of the property owner to maintain accurate inspection and maintenance records, regardless of changes in property ownership. Annual Compliance Reporting The property owner is required to send copies of the completed inspection and maintenance records to the City on an annual basis. City Inspection and Maintenance If at any point the property owner falls behind on the required inspections or maintenance, the City will perform an inspection at the cost of the property owner after sending a notice. If emergency maintenance is required and deemed necessary by the City,the City will perform the necessary maintenance at the property owner's cost. It is important to remember that the property owner is the party responsible for the inspection, maintenance, and the record keeping, and this responsibility should not be assumed to the City. BMP Inspection Schedule and Checklist Stormwater Maintenance Schedule and Inspection List Facility ID Hobo, Inc. Location Farmington, Minnesota Address: 5140 211th Street West, Farmington, MN, 55024 Inspector(s) Date Time Party/Department Responsible for Maintenance: Contact(s): Phone Number(s): Email: Mailing Address: BMP Inspection Schedule and Checklist A.Northwest Dry Detention Basin 1=Good Condition 2=Acceptable,Item on Watch Note: All items associated with the Facility shall be inspected annually or as otherwise noted. 3=Item Requires Maintenance Within the Year 4=Failed Item,Requires Immediate Maintenance N N N N N N N N N M M M M M M cry c^7 M M a v N N N N N N N N N N N N N N N N N N N N N 1. Maintenance access to facility 2. Excessive sediment accumulation(More than T of sediment or 1/3 of the volume below the outlet is filled by sediment) 3. Standing water is present in the basin 4. Is there evidence of pollution entering pond?Y/N.Where? 5. Berms/embankments a.Cracking,bulging,or sloughing b.Soft spots or sinkholes c.Evidence or erosion d. Evidence of animal burrows e.Presence of woody vegetation 6. Outlet control structure(s) a.Maintenance access to structure b.Structural condition c.Condition of joints d. Trash/debris accumulation 7. Vegetation a.Plant composition consistent with approved plans b.Presence of invasive species/weeds c. Dead vegetation/exposed soil d.Is reinforcement planting recommended?Y/N BMP Inspection Schedule and Checklist B.Southwest Infiltration Basin 1 =Good Condition 2=Acceptable,Item on Watch Note: All items associated with the Facility shall be inspected quarterly or as otherwise noted. 3=Item Requires Maintenance Within the Year 4=Failed Item,Requires Immediate Maintenance N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 1. Maintenance access to facility 2. Excessive sediment accumulation 3. Standing water observed in basin over 2 days after rainfall 4. Is there evidence of pollution entering basin?Y/N.Where? 5. Outlets a.Maintenance access to outlet b.Outlet condition d. Trash/debris accumulation(Remove as quickly as possible) C.South Infiltration Basin 1 =Good Condition 2=Acceptable,Item on Watch Note: All items associated with the Facility shall be inspected quarterly or as otherwise noted. 3=Item Requires Maintenance Within the Year 4=Failed Item,Requires Immediate Maintenance O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N 1. Maintenance access to facility 2. Excessive sediment accumulation 3. Standing water observed in basin over 2 days after rainfall 4. Is there evidence of pollution entering basin?Y/N.Where? 5. Outlets a.Maintenance access to outlet b.Outlet condition J. Trash/debris accumulation(Remove as quickly as possible) BMP Inspection Schedule and Checklist D.Inlets 1=Good Condition Note: All items associated with Pretreatment shall be inspected twice a year. 2=Acceptable,Item on Watch Once in early Spring and once in late Fall. 3=Item Requires Maintenance Within the Year 4=Failed Item,Requires Immediate Maintenance a a O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N 1. Inlets provide stable conveyance into facility 2. Excessive trash/debris/sediment accumulation at inlet 3. Evidence of erosion at/around inlet E.Outlets 1=Good Condition Note: All items associated with Outlets shall be inspected twice a year. 2=Acceptable,Item on Watch Once in the early Spring and once in late Fall. 3=Item Requires Maintenance Within the Year 4=Failed Item,Requires Immediate Maintenance N N N N N N N N N N �7 N N N N N N N N N N N N N N N N N N N N N 1. Outlets provide stable conveyance from facility 2. Excessive trash/debris/sediment accumulation at outlet 3. Evidence of erosion at/around outlet F.Miscellaneous 1=Good Condition 2=Acceptable,Item on Watch Note: All miscellaneous items shall be inspected annually or as otherwise noted. 3=Item Requires Maintenance Within the Year 4=Failed Item,Requires Immediate Maintenance N N N N N N N N N N M M M <7 M M v N N N N N N N N N N N N N N N N N N N N N 1. Complaints from local residents 2. Pest problems 4. Adequate safety signage I I lit BMP Inspection Schedule and Checklist BMP Inspection Schedule and Checklist Photo ID Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov _.all TO: Mayor, Councilmembers and City Administrator FROM: Jennifer Gabbard, Human Resources Director SUBJECT: Approve Seasonal Hiring-Human Resources DATE: May 17, 2021 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 for 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. BUDGET IMPACT This positions are included in the 2021 department budgets. ACTION REQUESTED By motion, approve the attached seasonal employment recommendations. ATTACHMENTS: Type Description D Backup Material 2021 Summer Seasonal Hiring Information Last Name =first Nam( Position 2021 Pay Rate Date Effective Willis Timothy Seasonal Recreation Assistant $ 10.16 5/18/2021 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: Acknowledge Financial Review for the Quarter Ending March 31, 2021-Finance DATE: May 17, 2021 INTRODUCTION Staff reviews the financial performance of the General Fund and several other funds with the city council quarterly review.The financial statements are included in your packet and incorporate more detailed analytical comments.The following provides a more in depth review of the General Fund and highlights notable areas for the other funds included in this review. DISCUSSION General Fund The General Fund is the city's primary operating account.The financial summary for the first three months is the first attachment.The following will provide explanations for the various revenue items and highlight the more significant expenditure variations.The items reviewed are in the order they appear on the attached General Fund financial statement. Revenues For 2021, budgeted General Fund revenues total$12,452,775. Duringthe first quarter of the year the city recorded General Fund revenues totaling$430,592 or 3.46 percent of total budgeted revenues. The majority of the revenue is received starting in the second quarter. Property taxes represent the majority of total General Fund revenues (including transfers in from other funds). Property taxes are generally payable in two installments, May and October, and collected by the county.The city receives its share from the county in June and December. Penalties have been abated through June 15th which will likely result in a later receipt of funds. While there are many reasons the city needs a fund balance(which is similar to an individual's personal net worth), needing to pay its bills between the receipt of tax payments from the county is the most significant reason. Over the past few years the city has strengthened its fund balance and is now able to pay all of its General Fund bills between the receipt of tax payments, essentially paychecks,from the county without borrowing from other funds That is a significant accomplishment and an important step in becoming a city of fiscal excellence. The other types of revenues in the General Fund consist of licenses, permits, intergovernmental revenue, charge for services,fines, investment income,franchise fees, rental income, etc. Liquor license fees for first quarter were refunded to businesses due to COVI D-19 resulting in revenue lower than 2020 for first quarter. Permit revenue includes building, plumbing, heating, electric, etc. permits.The revenue for the first quarter of 2021 is the higher than this time period last year.The city has issued 111 more building permits than in 2020. Plumbing, heating, and electric permits are up 74 from 2020. Intergovernmental revenue includes local government aid (LGA), municipal state aid (MSA) maintenance, police and fire aid, etc.The city received the first half of the MSA maintenance funds for 2021.The second half will be received in July. LGA is paid in two installments,June and December. Police and fire aid has not been received.The city needs a strong fund balance as many of these items are paid later in the year. Charge for services includes:fire, recreation, school resource officer(SRO), etc., charges. Castle Rock and Eureka townships are billed quarterly for fire protection. Empire,the largest of the three townships, is billed annually, after year-end, per contract. Non-contract(i.e. illegal and/or hazardous)fires charges are billed as they occur. Recreation programs are primarily offered in the summer.The school is billed for their share of the school resource officers human resource costs on a quarterly basis. Fine revenue is received the following month. It began trending downward during COVI D-19 and has continued to remain low. I nvestment interest consists of investment earnings and the city's annual mark-to-market to recognize the change in the market value of its investment portfolio. It is trending lower than in 2020. Miscellaneous revenues include rental income related to the Rambling River Center(RRC-senior center) and city hall as well as donations. RRC rentals have declined due to COVI D-19 and the facility closure. Franchise fee revenue in the General Fund represents the transfer of a portion of the city's franchise fee revenue to the General Fund to help pay for city operations.The remainder of the franchise fees are used to pay for the city's cable operations.The first payment is typically received in the second quarter. Expenditures Finance tracks expenditures by department.The following notes explain significant or unusual variations from last year or actual versus budgeted amounts which vary a bit from the expected 25 percent(3 of 12 months)through the end of March in the same order as they appear on the attached General Fund financial report. The Dakota Broadband Board annual access fee and dues are paid in the first quarter each year. Emergency management is trending higher with the purchase of police mobile field force safety equipment. Streets is exceeding the anticipated 25 percent due to the retirement of a long-standing employee. The cost of salt for January and February was higher in 2021 than 2020. As a result,the 2021 snow removal expenditures are higher than anticipated. Overall, General Fund expenditures, excluding transfers, are at 23.29 percent of budget for the first quarter of the year. EDA, Park Improvement,and Arena The EDA (Economic Development Authority), Park I mprovement Fund, and I ce Arena activities have historically been of interest to council. They are also included for your review. EDA The EDA revenues include only interest income for the first quarter. It is trending lower than 2020. Expenditures include the demolition of the downtown sign and expenses for the Dakota Broadband Board Executive Director which are reimbursed quarterly by Dakota County. Park Improvement Fund The Park I mprovement fund received a farm lease payment and interest income in first quarter.There were soil borings completed and materials for a park shelter roof purchased. Arena Revenues are higher than in 2020 as the arena closed in March 2020 due to COV I D-19. Expenditures are trending higher at 28.97 percent for 2021. Liquor Operations The city has two financial benchmarks for its liquor operations.The first is a 25 percent gross profit margin. For the first quarter of the year both stores met the gross profit margin target.The second standard is a 6 percent profit as a percent of sales.This is evaluated on a combined basis. For the first quarter,the stores reached 7.1 percent.The 2021 results are ahead last year's pace,which was 4.4 percent through the first quarter. The percentage is generally the lowest the first half of the year.The stores were closed for a portion of last year beginning in March 2020 and reopened on limited hours.The sales were much lower in 2020 than in 2019. Downtown is continuing to trend downward when comparing 2021 to 2019 by roughly$38,000.The Pilot Knob store has increased sales roughly$107,000 when comparing 2021 to 2019. After each calendar year, staff reviews the financial results for the two liquor stores combined, determines the amount of funds needed to cover day-to-day operations and administrative transfers to the General Fund.The remaining funds are divided evenly and transferred into the Community Investment and Capital Improvements accounts. This is referred to as the four pots philosophy. Each year staff utilizes actual financial results to fund these four pots. Staff periodically makes recommendations to council on how to best invest available dollars in the Community I nvestment pot to benefit the community. Meanwhile,the capital improvement dollars are available for future liquor store capital building needs (e.g. remodeling, updating, relocation, possible building, etc.). Enterprise Funds The city operates five utility funds:sewer operations, solid waste, storm water, water, and street lighting. Sewer Operations For the first quarter of 2021 revenues trended higher than 2020 due to an increase in rates.There was an increase in MCES (Metropolitan Council Environmental Services)fees.These are the fees charged to the city to treat its sewer water.The fees reflect an increase in the cost to treat the volumes processed. Solid Waste There was a rate increase for solid waste in 2021. Expenditures include an increase in recycling costs and tipping fees. Storm Water Revenues exceeded expenditures during the first quarter of 2021. The expenditures have remained similar to 2020. Water The water availability charges correlate to building permit activity and shows an increase due to the vast increase in permits.There is also an increase in enterprise sales due to an increase in water consumption. For all of the city's utility funds,the billing cycle(revenue) lags the recording of expenses. For example, the city bills every three months.The January billing includes November and December of the previous year, as well as January of the current year. So,two-thirds of that billing cycle is attributable to the prior year and is recorded as such in the financial statements.This means that at the end of this year,the financial statements will remain open so that we can capture the revenues related to the current year, which will not be billed out until January and February of the following year. Additional comments,which may be of interest to you, including those for the water and street light funds are contained in the comment section of the attached financial statements. BUDGET IMPACT The budget impacts have been noted above as appropriate. ACTION REQUESTED Review and acknowledge the financial reports for first quarter ended March 31, 2021. ATTACHMENTS: Type Description ❑ Backup Material General Fund- Quarter Ended March 31, 2021 ❑ Backup Material General Fund Chart-Quarter Ended March 31, 2021 ❑ Backup Material Special Revenue Funds- Quarter Ended March 31, 2021 ❑ Backup Material Liquor Stores- Quarter Ended March 31, 2021 ❑ Backup Material Utility Funds- Quarter Ended March 31, 2021 General Fund 1st Quarter 2021 YTD Operating Report Quarter 1 Quarter 1 Company Actual 2020 Actual Actual Actual 2021 Budget 2021 Budget Vaterriance i Actual Qs%of Bud 2YTD Act Comments 2020 2021 Budget Variance 2021 as%of Bud 2021 Property Taxes 10,245,718 0 0 0 10,534,120 (10,534,120) 0.00% Property taxes received in June and December.First payment received in June. Licenses 33,251 23,065 12,237', 18,932 46,350 (34,113) 26.40% Includes liquor,beer&wine,club arcade,massage,gambling,animal,etc.1st quarter liquor licenses were refunded.Includes liquor license paid for full year in '.. advance. Permits 555,0961 86,115 156,767 223,153 470,726 (313,959) 33.30% Includes building,plumbing and heating,electric,etc.permits.1st quarter 2020: ',. building permits 90,plumbing 55,heating 60,fire 8,electric 109.1 st quarter 2021: building permits 201,plumbing 70,heating 67,fire 22,electric 147. ',.. Intergovernmental Revenue 2,261 673. 84,629 162,712'. 172,160 667,912 (505,200) 24.36% Includes Local Government Aid(LGA),Municipal State Aid(MSA)Maintenance, '.. '... Police and Fire Aid,etc.Received MSA road maintenance in February 2021. '... Charge for Service 419,760 62,442 66,180 84,058 431,197 (365,017) 15.35% Includes fire,recreation,school resource officer,etc.charges.Castle Rock and Eureka are billed quarterly for fire charges/contract.Empire,largest amount,billed ',.. ',. annually,after year-end/contract.Non-contract(i.e.illegal,hazardous)fire charges are billed as they occurred.School resource officer is billed quartedy.Recreation programs are primarily held in the summer. Fines 45,959 12,935 8,330 15,011 49,000 (40,670) 17.00% Fine revenue received a month late,e.g.January received in February. Investment Interest 141,562.. 19,868 16,892 17,112 29,100. (12,208) 58.05% Investment earnings attributable to General Fund's proportionate share of '.. '.. investment balances. Miscellaneous 40,466 14,936 7,474 13,799 79,370 (71,896) 9.42% Includes Sr Center and City Hall rental income,and donations.RRC rentals are down in 2021. Franchise Fees 120,000'. 0 0 0 145,000 (145,000) 0.00%A portion of the city's franchise fee is used to pay for the city's General Fund '.. operations.The remainder is used to pay for the city's table operation.1 st quarter '..... is received in May. . Subtotal Revenues _ 13,863,486 303,990 430,592 544,227 12,452,775 (12,022,183) 3.46% . ,Expenditures _.._. .-Legislative 78,748 13,947 15,195 19,309 87,392 (72,197) 17.39 Administration 393,859 66,451 78,234' 97,993 321,712 (243,478) 24.32% Elections 86,240 11,782 0 0 9,351 (9,351) 0.00% Provision for annual election equipment maintenance fee and ongoing training. Communications 109,192' 26,467. 26,509 32,536 114,900 (88,391) 23.07% City Hall 439,318. 86,316. 81,866 96,746 369,560 (287,694) 22.15% Dakota Broadband 33,304 11,326 10,721' 10,721 37,500 (26,779) 28.59% Includes DBB programming costs. . Finance and Risk Mgmt 702,654 184,333 188,087 238,603 776,287 (588,200) 24.23% . Human Resource 299,450' 74,966 73,271 95,067 361,658 (288,387) 20.26% - -- __.... ..... Police Administration 1,196,243 309,055 298,719 386,399 1,263,014 (964,295) 23.65%On a combined basis Police Admin,Patrol,and Investigations are 24.9%. Patrol Services 2,593,506 625,144 669,027 810,978 2,639,752 (1,970,725) 25.34%On a combined basis Police Admin,Patrol,and Investigations are 24.91/6. Investigations 905,084' 228,557 232,555 281,630 926,430 (693,875). 25.10%On a combined basis Police Admin,Patrol,and Investigations are 24.9%. Emergency Management 2,958 54 12,331 13,230 16,600 (4,269) 74.28% Purchased mobile field force equipment. Fire 1,395,834. 242,167 286,703'. 362,201 1,435,685 (1,148,982) 19.97% Engineering 652,008 158,390 157,230'.. 193,582 694,134 (536,904) 22.65% Planning 551,055 122,242 127,151'. 160,436 567,681 (440,530) 22.40% Building Inspection 426,138 111,824 108,381. 135,632 440,168 (331,787) 24.62% Natural Resources 39,575 5,184 13,340. 15,038 119,761 (106,421) 11.14% Position is vacant.Part-time salaries only. Streets 1,202,648 279,301 326,260' 375,749 1,268,832 (942,572) 25.71%2021 higher due to employee retirement. Snow Removal 165,906 74,752 71,092'.. 73,991 242,355 (171,263) 29.33% Includes$47k for Jan/Feb salt. Park Maintenance 681,059 144,275 150,077'. 185,867 733,607 (583,530) 20.46% Majority of the maintenance costs are during the spring and summer. Rambling River Center 153,546 43,665 35,882 44,820 185,054 (149,172) 19.39% .... _....... _ .... . Park&Rec Admin _ 270,741 64,790 64,629 88,518 304,383 (239,754) 21.23% _ - .._ _.. ......._ Recreation Programs 39,825' 7,592 3,267 4,587 94,297 (91,030) 3.46% Majority of the programming is in the summer. ._.Interest Paid _ 0. ..0 0,: _0.. 0. _.0 . _. _... _. _.. .. _. Subtotal Expenditures 12,418,892'. 2,892,580 3,030,526' 3,723,634 13,010,113 (9,979,587) 23.29% Revenues(Over)Under Expenditure 1,444,593 (2,588,589) (2,599,934). (3,179,408) (557,338)' (2,042,596) 466.49% Other Financing _.. ........ . Transfers ln_.. ---- 1307,570 326,892 344,922 459,896 1,379,689 .(1,034,767) 25.00% . Transfers Out (2,421,304) (233,052) (205,588)' (274,117) (822,351) 616,763 25.00% Subtotal Other Financing (1,113,734). 93,841 139,334'. 185,779 557,338 (418,004) 25.00% Net Change in Fund Balance 330,859... (2,494,749) (2,460,600) (2,993,628) 0 (2,460,600) ',. City of Farmington General Fund Fund Balance $9,500,000 ------ - - - - -- --- - $9,000,000 $8,500,000 $8,000,000 V $7,500,000 M $7,000,000 $6,500,000 m $6,000,000 $5,500,000 $5,000,000 $4,500,000 LL $4,000,000 •— $3,500,000 - n --- $3,000,000 $2,500,000 - - $2,000,000 — — - $1,500,000 V $1,000,000 —� ---- - $500,000 9 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec —2017 2M —2119 2M 2021 � 1.11 11.4 .2021 Exp --.—50%.1 Prelim.2.1.1 .4M.1 Prelim.2022 Exp --0—IMI Ndm.2022 Exp EDA, Park Improvement,Arena 1st Quarter 2021 YTD Operating Report Quarter 1 Quarter 1 Quarter 1 Actual Quarter 1 YTD Company Actual 2020 Actual Actual Actual 2021 Budget 2021 Budget Variance Act as%of Bud Comment 2020 2021 2021 2021 EDA EDA Revenues 6,696 1,562 871 871 2,100 (1,229) 41.47% Interest income Dakota Broadband 169,469 35,419 37,690 37,690 180,474 (142,784) 20.88% Reimbursement for DBB Executive Director expenses per Reimbursement agreement with DBB Board. EDA Expenses 47,040 12,137 8,459 9,310 46,187 (37,728) 18.31% Sign demo in January. DBB Human Resource 167,975 34,761 36,023 48,918 159,003 (122,980) 22.66% Wage and benefit expenses for DBB Executive Director. Expense Invoiced quarterly. Dakota Broadband 1,481 659 1,891 1,904 5,735 (3,844) 32.98% Expensed for DBB Executive Director. Invoiced quarterly. Expense EDA Net (40,331) (10,575) (7,813) (21,572) (28,351) 20,538 27.56% Revenues/Expenditures Transfers In 40,000 10,000 10,000 13,333 40,000 (30,000) 25.00% Subtotal Other Financing 40,000 10,000 10,000 13,333 40,000 (30,000) 25.00% Net Change in EDA Fund (331) (575) 2,187 (8,238) 11,649 (9,462) 18.78% Balance Park Improvement Park Improvement 32,727 1,669 8,948 45,108 36,200 (27,252) 24.72% Includes lease payment and interest. Revenues Park Improvement 12,403 1,716 11,292 11,292 15,000 (3,708) 75.28% Includes soil borings and park shelter roof. Expenditures Park Improvement Net 20,324 (47) (2,343) 33,817 21,200 (23,543) -11.05% Change in Fund Balance Ice Arena Revenues 294,690 133,016 156,406 169,761 379,500 (223,094)' 41.21%'Ice arena closed March 2020 due to COVID 19. Ice Arena Expenditures 369,560 114,009 108,330 122,380 373,917 (265,587) 28.97% Ice Arena-Rev Over (74,870) 19,008 48,076 47,381 5,583 42,493 861.11% (Under)Expenditures Ice Arena-Transfers In 70,000 0 0 0 0 0 Ice Arena-Transfers Out 0 0 0 0 0 0 Ice Arena Net Transfers 70,000 0 0 0 0 0 Ice Arena Net Change in (4,870) 19,008 48,076 47,381 5,583 42,493 861.11% Fund Balance Liquor Stores Statement of Revenue & Expenses 1st Quarter 2021 Quarter 1 Quarter 1 Quarter 1 Actual Quarter 1 Company Actual 2017 Actua12018 Actual 2019 Actual 2020 Actual Actual Actual 2021 Budget 2021 Budget Variance ACTBUDGET% Comment 2020 2021 2021 2021 Revenues-Downtown Total Revenue-Downtown 2,315,459 2,464,807 2,626,193 1,724,335 494,279 5169376 707,935 2,025,939 (1,509,563) 25.49% Downtown store's sales have increased $22k from 1st quarter 2020.Store closed 3/18/2020 due to COVID 19.Sales are down$38k from 1st quarter 2019. Cost of Goods Sold-Downtown Cost of Goods Sold 1,728,059 1,840,890 1,940,136 1,292,646 367,837 368,934 368,934 1,447,418 (1,078,484) 25.49% Gross Profit-Downtown Gross Profit 587,400 623,917 686,057 431,689 126,442 147,442 339,002 578,521 (431,079) 25.49% Gross Profit%-Downtown 25.4% 25.3% 26.1% 25.0% 25.6% 28.6% 47.9% 28.6% 0.0% 100.0% Meets 25%benchmark. Expenses-Downtown Advertising 4,327 3,872 1,954 482 242 0 0 5,250 (5,250) 0.00% Total Expenses-Downtown 488,195 514,184 581,961 476,516 131,648 126,734 170,681 539,983 (413,249) 23.47% Revenues(Losses)Before Transfer Revenue(Loss)B4 Trans-Downtown 99,205 109,733 104,096 (44,827) (5,206) 20,708 168,321 38,538 (17,830) 53.73% Revenues-Pilot Knob Total Revenues-Pilot Knob 2,663,162 2,807,608 3,022,065 3,655,220 657,894 728,424 969,481 2,647,309 (2,118,885) 25.58% PK store's sales are$70k higher than 1st quarter 2020.Store closed 3/18/2020 due to COVID 19.Reopened PT 3/28/2020.Sales are up $107k from 1st quarter 2019. Cost of Goods Sold-Pilot Knob Cost of Goods Sold-Pilot Knob 1,979,304 2,083,078 2,243,479 2,691,858 483,419 546,041 546,041 1,850,260 (1,304,219) 29.51% Increase in COGS due to increase in sales. Gross Profit-Pilot Knob Gross Profit-PK 683,859 724,530 778,586 963,363 174,475 182,383 443,439 997,049 (814,666) 18.29% Gross Profit%-PK 25.7% 25.8% 25.8% 26.4% 26.5% 25.0% 44.8% 35.0% -10.0% 71.5% Meets 25%benchmark. Expenses-Pilot Knob Advertising 4,282 3,632 1,959 483 238 0 0 5,000 (5,000) 0.00% Total Expenses-Pilot Knob 438,925 450,597 486,868 496,286 118,174 115,144 151,430 463,627 (348,483) 24.84% Revenues(Losses)B4 Transfer Revenues(Losses)B4 Trans-Pilot Knob 244,934 273,933 291,718 467,076 56,301 67,238 292,010 533,422 (466,184) 12.61% Combined Inc(Loss)Before Transfers Combined Inc(Loss)B4 Transfers 344,139 383,666 395,814 422,249 51,095 87,946 460,331 571,960 (484,014) 15.38% Profit(Loss)As A%of Sales 6.9% 7.3% 7.0% 7.8% 4.4% 7.1% 27.1% 11.7% (4.7)% 60.2% The goal is 6%. Operating Transfers Operating Transfers-Out 248,592 194,377 134,088 536,452 34,113 41,353 55,137 365,410 (324,057) 11.32% 11fFhAMIls1 i}111 i�ERaI1�IF 111111 1ll11111,t11103M.M (114,203) 114,111111112 46,n4' 406,994 296,550 (15i,85i3)' ratAW, _ . Sewer,Solid Waste,Storm Water,Water&Street Lights 1st Quarter 2021 YTD Operating Report Quarter 1 Quarter 1 Quarter 1 Actual Quarter 1 YTD Act Company Actual 2020 Actual Actual Actual 2021 Budget 2021 Budget Variance as%of Bud 2021 Comment 2020 2021 2021 Sewer --777777777-- Revenues ; °77Revenues(Sewer) 2,222,794 428,082 436,698 438,045 2,423,687 (1,986,989) 18.02% Rate increase for 2021. Expenses-(Sewer) 2,334,002 436,793 456,512 742,740 3,122,704 (2,666,192) 14.62% MCES(Metropolitan Council Environmental Services)fees are higher in 2021. Revenues Over Expenses(Sewer) (111,209) (8,710) (19,814) (304,694) (699,017) 679,203 2.83% Transfers Out(Sewer) 327,545 81,886 83,276 111,034 333,103 (249,827) 25.00% See detailed transfers worksheet. Net Change in Fund Balance(Sewer) (438,754) (90,597) (103,090) (415,729) (1,032,120) 929,030 9.99% Solid Waste Revenues(Solid Waste) 2,758,373 490,222 509,160 509,610 2,588,985 (2,079,825) 19.67% Rate increase in 2021. Expenses-(Solid Waste) 2,630,874 598,617 615,370 656,376 2,792,189 (2,176,819) 22.04% Increase in recycling costs and tipping fees. Revenues Over Expenses(Solid Waste) 127,499 (108,395) (106,210) (146,765) (203,204) 96,994 52.27% Transfers In(Solid Waste) 70,201 17,550 8,799 11,732 35,196 (26,397) 25.00% Transfers Out(Solid Waste) 147,879 36,970 37,315 49,753 149,259 (111,944) 25.00% See detailed transfers worksheet. Net Change in Fund Balance(Solid Waste) 49,821 (127,816) (134,726) (184,786) (317,267) 182,541 42.46% Storm water Revenues(Storm Water) 1,194,862 244,507 245,185 245,838 1,214,320 (969,135) 20.19% Expenses-(Storm Water) 530,440 24,234 25,097 33,489 758,276 (733,179) 3.31% Revenues Over Expenses(Storm Water) 664,422 220,273 220,088 212,350 456,044 (235,956) 48.26% Transfers Out 396,152 99,038 100,644 134,192 402,576 (301,932) 25.00% See detailed transfers worksheet. Net Change in Fund Balance(Storm Water 268,270 121,235 119,444 78,158 53,468 65,976 223.39% Water Revenues(Water) Water Availability Charges 267,994 33,698 44,518 131,015 113,129 (68,611) 39.35% Correlates to building permit activity. Net Interest Income 223,255 41,617 32,091 32,091 63,100 (31,009) 50.86% Rental Income 260,726 127,092 129,227 149,376 248,000 (118,773) 52.11% Reflects wireless companies(ex.Sprint,ATT,Verizon)rental of space on the city's water towers. Enterprise Sales 1,954,523 232,814 249,489 249,489 2,055,444 (1,805,955) 12.14% Increase in water consumption for residential and commercial. All Other Revenues 54,760 8,107 10,770 17,141 21,620 (10,850) 49.82% Total Revenues 2,761,258 443,328 466,094 579,112 2,501,293 (2,035,199) 18.63% Expenses-(Water) 1,626,281 130,387 158,762 183,522 2,002,148 (1,843,386) 7.93% Revenues Over Expenses(Water) 1,134,977 312,941 307,333 395,590 499,145 (191,812) 61.57% Transfers Out(Water) 450,853 217,630 111,009 148,012 444,037 (333,028) 25.00% See detailed transfers worksheet. Net Change in Fund Balance(Water) 684,124 95,311 196,323 247,577 55,108 141,215 356.26% Strekllght' 2a Revenues(Streetlight) 235,949 42,114 41,626 41,626 225,200 (183,574) 18.48% Expenses 173,603 37,186 43,778 43,778 221,500 (177,722) 19.76% Revenues Over Expenses(Street Light) 62,345 4,929 (2,152) (2,162) 3,700 (6,852) -58.16% CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 goo ® O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Approve Bills-Finance DATE: May 17, 2021 INTRODUCTION Attached is the April 23, 2021 - May 12 2021 city council check register and recently processed automatic payments for your consideration. DISCUSSION N/A BUDGET IMPACT N/A ACTION REQUESTED Approve the attached payments. ATTACHMENTS: Type Description D Backup Material Council Check Summary 4/23/2021-5/12/2021 R55CKS2 LOGIS600V COUNCIL MEETING MAY 17, 2021 CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 1 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 154724 4/30/2021 118048 ZEIMET,TRISTEN 1,845.00 EMT CLASS REIMBURSEMENT ZEIMET 193149 20210421-ZEIMET 1060 6470 TRAINING&SUBSISTANCE FIRE SERVICES 01000 06 1,845.00 154725 4/30/2021 103774 AMERICAN PUBLIC WORKS ASSOCIATION 281.25 2021 MEMBERSHIP RENEWAL 193180 699682 2021 6202 6460 MEMBER DUES&LICENSURE SEWER OPERATIONS EXPENSE 06200 08 RENEWAL 281.25 2021 MEMBERSHIP RENEWAL 193180 699682 2021 6302 6460 MEMBER DUES&LICENSURE SOLID WASTE OPERATIONS 06300 08 RENEWAL 281.25 2021 MEMBERSHIP RENEWAL 193180 699682 2021 6402 6460 MEMBER DUES&LICENSURE STORM WATER UTILITY OPERA 06400 08 RENEWAL 281.25 2021 MEMBERSHIP RENEWAL 193180 699682 2021 6502 6460 MEMBER DUES&LICENSURE WATER UTILITY EXPENSE 06500 08 RENEWAL 1,125.00 154726 4/30/2021 113303 ARTISAN BEER COMPANY 1,269.10 BEER ORDER 193176 3469229 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,269.10 154727 4/30/2021 108446 ASPEN MILLS,INC. 29.00 UNIFORM ITEMS:SCHMITZ,J 192674 271969 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 244.50 UNIFORM ITEMS:JAHNS,M 192675 272076 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 231.65 UNIFORM ITEMS:WRIGHT,E 193247 272339 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 505.15 154728 4/30/2021 108482 AXON ENTERPRISE,INC 1,308.88 TASER BATTERIES/CARTRIDGES 192706 SI-1729001 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 1,308.88 154729 4/30/2021 113809 BANKERS TITLE 211.79 REF UTIL CR@4866 190TH ST W 175055 19.109.00350 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 24.51 REF UTIL CR@181 HICKORY CT 184143 20.8.02805 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 23.93 REF UTIL CR@4818 192ND ST W 184718 20.189.00350 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 107.80 REF UTIL CR@1011 WESTVIEW DR 188981 20.608.00350 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 368.03 154730 4/30/2021 115569 BOURGET IMPORTS,LLC 440.75 WINE ORDER 193227 177086 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 440.75 154731 4/30/2021 114471 BREAKTHRU BEVERAGE MN WINE&SPIRITS 18.24- LIQUOR&SPIRITS CREDIT 193175 2080304408 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 127.36- LIQUOR&SPIRITS CREDIT 193177 2080304176 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,595.48 LIQUOR&SPIRITS ORDER 193224 339184836 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,449.88 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 2 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 164732 4/30/2021 118044 CHARTER COMMUNICATIONS OPERATING,LLC 50.00 21000034 SUBPOENA 193207 21-143930 1052 6401 PROFESSIONAL SERVICES INVESTIGATION SERVICES 01000 05 50.00 164733 4/30/2021 100071 COLLEGE CITY BEVERAGE INC 15.00- INSTANT CREDIT MEMO 193221 676638 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 34.50- BEER ORDER CREDIT 193231 688883 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 154.50 BEER ORDER 193232 688884 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 9.43- BEER ORDER CREDIT 193233 850-00267 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 95.57 164734 4/30/2021 113962 COVERT TRACK GROUP,INC 600.00 2021 RENWL:GPS MAPPING 192712 43598 1052 6280 BOOKS&SUBSCRIPTIONS INVESTIGATION SERVICES 01000 05 600.00 164736 4/30/2021 100133 DAKOTA COUNTY FINANCIAL SRVS 499.56 PORTABLE RADIO CHARGERS 193197 00040820 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01000 05 1,025.52 MAR'21 RADIO SUBSCRIBER FEES 193205 00040808 1050 6560 CONTRACTUAL SERVICES POLICE ADMINISTRATION 01000 05 1,424.13 MAR'21 RADIO SUBSCRIBER FEES 193205 00040808 1060 6560 CONTRACTUAL SERVICES FIRE SERVICES 01000 06 2,949.21 164736 4/30/2021 110844 DAKOTA COUNTY FINANCIAL SRVS 367.09 1ST QUARTER 2021 UTILITIES 193151 00040763 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 31.05 FEB'21 GOPHER 1 FIBER LOCATES 193161 00040582 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 345.81 MAR'21 DIESEL FUEL 193185 00040797 1076 6272 FUEL NATURAL RESOURCES 01000 07 652.90 MAR'21 DIESEL FUEL 193185 00040797 1060 6272 FUEL FIRE SERVICES 01000 06 232.44- 193185 00040797 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 47.71 MAR'21 DIESEL FUEL 193185 00040797 6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 72.34 MAR'21 DIESEL FUEL 193185 00040797 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 185.87 MAR'21 DIESEL FUEL 193185 00040797 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 821.89 MAR'21 DIESEL FUEL 193185 00040797 1073 6272 FUEL SNOW REMOVAL SERVICES 01000 08 3,613.45 MAR'21 DIESEL FUEL 193185 00040797 6302 6272 FUEL SOLID WASTE OPERATIONS 06300 08 5,905.67 164737 4/30/2021 100147 DAKOTA COUNTY TECHNICAL COLLEGE 300.00 TUKUA DRIVING SCHOOL 193267 807250 1052 6470 TRAINING&SUBSISTANCE INVESTIGATION SERVICES 01000 05 300.00 164738 4/3012021 110291 DCA TITLE 55.23 REF UTIL CR@1320 FAIRVIEW LN 193192 21-030159-R 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 55.23 164739 4/30/2021 108967 DICK'S VALLEY SERVICE INC 196.03 21000355 FORFEITURE TOW 192802 21-11787 2100 6401 PROFESSIONAL SERVICES POLICE FORFEITURES 02100 05 235.00 TOW FOR 3212 TO SHOP 192976 21-11912 6302 6510 1 OUTSIDE VEHICLE REPAIR/MAINT SOLID WASTE OPERATIONS 06300 08 431.03 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 3 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 154740 4/30/2021 100149 ECM PUBLISHERS,INC 24.75 4/13 PH-TYSON'S TOWING 192731 828055 1030 6455 LEGAL NOTICES PLANNING&ZONING 01000 03 24.75 4/13 PH-APPRO DEVELOPMENT 192732 828056 1030 6455 LEGAL NOTICES PLANNING&ZONING 01000 03 19.25 4/13 PH-JANCZEWSKI 192733 828053 1030 6455 LEGAL NOTICES PLANNING&ZONING 01000 03 24.75 4/13 PH-MESENBRINK 192734 828054 1030 6455 LEGAL NOTICES PLANNING&ZONING 01000 03 93.50 154741 4/30/2021 113296 EDINA REALTY TITLE 40.46 REF UTIL CR@18185 DUNBURYAVE 193189 2116632/109 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 25.59 REF UTIL CR@18055 ELGIN AVE 193190 2118484/146 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 66.05 154742 4/30/2021 100270 EMERGENCY MEDICAL PRODUCTS INC 212.70 FACE MASKS 192676 2246163 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 212.70 SURGICAL MASKS 193004 2246272 1060 6250 OTHER SUPPLIES&PARTS FIRE SERVICES 01000 06 212.70 SURGICAL MASKS 193005 2246122 1060 6250 OTHER SUPPLIES&PARTS FIRE SERVICES 01000 06 638.10 154743 4/30/2021 109931 FACTORY MOTOR PARTS 61.56 BRAKE PADS FOR 0552 192753 1-6848255 1051 6230 VEHICLE SUPPLIES&PARTS PATROL SERVICES 01000 05 101.16 BRAKE ROTORS FOR 0552 192754 158-048614 1051 6230 VEHICLE SUPPLIES&PARTS PATROL SERVICES 01000 05 50.58 FRONT BRAKE PADS FOR 0582 192836 54-304243 1051 6230 VEHICLE SUPPLIES&PARTS PATROL SERVICES 01000 05 112.14 FRONT BRAKE ROTORS FOR 0582 192837 1-6855851 1051 6230 VEHICLE SUPPLIES&PARTS PATROL SERVICES 01000 05 325.44 154744 4/30/2021 109458 FARMINGTON MUNICIPAL LIQUORS 150.00 15 YR EE REC TOM STRESE 193275 15 YR EE REC TOM 1011 7420 OTHER HUMAN RESOURCES 01000 04 STRESE 150.00 154745 4/30/2021 113464 FARMINGTON PETTY CASH ACCT 200.00 PETTY CASH BIKE AUCTION 193272 050821 1000 1020 PETTY CASH GENERAL FUND BALANCE SHEE 01000 200.00 154746 4/30/2021 100077 FRONTIER COMMUNICATIONS 97.71 APR'21 WELL HOUSE LINE 193157 651-460-4974- 7400 6411 TELEPHONE/CABLE SERVICES INFORMATION TECHNOLOGY 07400 04 APRIL'21 97.71 154747 4/30/2021 111631 FULL SERVICE BATTERY,INC 164.45 REPL BATTERIES EXIT SIGNS 193196 0022325 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 9.34 EXIT LIGHT BATTERIES 193277 0022014 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 9.36 EXIT LIGHT BATTERIES 193277 0022014 1060 6240 BUILDING SUPPLIES&PARTS FIRE SERVICES 01000 06 .26- 193277 0022014 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 18.73 EXIT LIGHT BATTERIES 193277 0022014 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 4 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 3.75 EXIT LIGHT BATTERIES 193277 0022014 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 9.36 EXIT LIGHT BATTERIES 193277 0022014 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 9.36 EXIT LIGHT BATTERIES 193277 0022014 1050 6240 BUILDING SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 3.75 EXIT LIGHT BATTERIES 193277 0022014 6202 624D BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 4.01 EXIT LIGHT BATTERIES 193277 0022014 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 3.75 EXIT LIGHT BATTERIES 193277 0022014 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 3.75 EXIT LIGHT BATTERIES 193277 0022014 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 239.35 154748 4/30/2021 118051 FUN JUMPS ENTERTAINMENT INC 1,026.00 OPEN HOUSE BOUNCE HOUSES 193263 2021 OPEN HOUSE 2150 6555 RENTAL OF EQUIPMENT POLICE PUBLIC OUTREACH 02150 05 1,026.00 154749 4/30/2021 100260 HAYNES,TRICIA 400.00 RECYCLING PROGRAM DEPOSIT 193208 20210918-THE 6302 6570 PROGRAMMING EXPENSE SOLID WASTE OPERATIONS 06300 08 TOONIES 400.00 154750 4/30/2021 100074 HOHENSTEINS INC 707.50 BEER ORDER 193164 403320 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 707.50 154751 4/30/2021 100395 HOISINGTON KOEGLER GROUP INC 1,525.00 MAR'21 SVS:ZONING CODE UPDATE 193178 020-010-11 1030 6401 PROFESSIONAL SERVICES PLANNING&ZONING 01000 03 1,525.00 154752 4/30/2021 100326 INDEPENDENT SCHOOL DISTRICT#192 1,642.50 DUP PYMT INV#6520 193156 6520 DUPLICATE 2500 2255 DEPOSITS PAYABLE ICEARENA 02500 09 PYMT REF 1,642.50 154753 4/30/2021 111773 INNOVATIVE OFFICE SOLUTIONS,LLC 90.70 BADGE HOLDERS,HIGHLIGHTERS, 192735 IN3313339 1010 6210 OFFICE SUPPLIES ADMINISTRATION 01000 01 90.70 154754 4/30/2021 107414 JEFFERSON FIRE&SAFETY INC 160.34 FIREFIGHTING GLOVES 193243 IN128420 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 160.34 154755 4/30/2021 109846 JJ TAYLOR DISTRIBUTING COMPANY OF MN INC 5,675.15 BEER ORDER 193165 3180232 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 5,675.15 154756 4/30/2021 100033 JOHNSON BROTHERS LIQUOR COMPANY 557.43 LIQUOR&SPIRITS ORDER 193167 1783940 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,262.61 WINE ORDER 193168 1783941 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 3,386.52 LIQUOR&SPIRITS ORDER 193169 1783942 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 5 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 583.16 WINE ORDER 193170 1783943 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,093.09 LIQUOR&SPIRITS ORDER 193171 1783944 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 6,882.81 154757 4/30/2021 110766 JOHNSON CONTROLS FIRE PROTECTION LP 1,143.70 SMOKE DETECTOR REPLACEMENT 193198 87677129 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 48.62 FIRE ST 1 ALARM MONITOR REPAIR 193242 87671927 1060 6515 BUILDING REPAIR/MAINTENANCE FIRE SERVICES 01000 06 1,192.32 154758 4/30/2021 100086 KWIK TRIP,INC 150.00 15 YR EE REC-NATE SIEM 193276 15 YR EE REC- 1011 7420 OTHER HUMAN RESOURCES 01000 04 NATE SIEM 150.00 154759 4/30/2021 113977 LE SUEUR CTY ABSTRACT CO 243.33 REF UT1L CR@5120 194TH ST W 172882 2200873138 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 243.33 154760 4/30/2021 100063 MACQUEEN EQUIPMENT,INC 297.07 LIFT ARM PARTS 3214 192807 P33995 6302 6220 EQUIP SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 19.11- 192807 P33995 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 277.96 154761 4/30/2021 118047 MANUEL,ERIKA 500.00 RENTAL DEPOSIT RETURN 193148 071722 1000 2255 DEPOSITS PAYABLE GENERAL FUND BALANCE SHEE 01000 500.00 154762 4/30/2021 114625 MASTER MECHANICAL,INC 597.30 CMF HVAC MAKE UP AIR REPAIR 193153 59353 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 604.54 CMF HVAC MAKE UP AIR REPAIR 193153 59353 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 41.56- 193153 59353 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 646.10 CMF HVAC MAKE UP AIR REPAIR 193153 59353 6302 6515 BUILDING REPAIR/MAINTENANCE SOLID WASTE OPERATIONS 06300 08 604.54 CMF HVAC MAKE UP AIR REPAIR 193153 59353 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 604.54 CMF HVAC MAKE UP AIR REPAIR 193153 59353 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 604.54 CMF HVAC MAKE UP AIR REPAIR 193153 59353 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 3,620.00 154763 4/30/2021 100715 MENARDS-APPLE VALLEY 3.45 DOOR SWEEP 192867 13736 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 3.47 DOOR SWEEP 192867 13736 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 .24- 192867 13736 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 3.47 DOOR SWEEP 192867 13736 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 3.71 DOOR SWEEP 192867 13736 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 3.47 DOOR SWEEP 192867 13736 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 3.43 DOOR SWEEP 192867 13736 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 20.76 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 6 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 154764 4/30/2021 102725 MINNESOTA DEPT OF HEALTH 23.00 WTR SPLY SYS OP:ARNDT,S 193216 2021 WTR LIC- 6502 6460 MEMBER DUES&LICENSURE WATER UTILITY EXPENSE 06500 08 ARNDT,S 23.00 154765 4/30/2021 113020 MINNESOTA DEPT OF NATURAL RESOURCES 300.00 RIVER REPAIR PERMIT 193278 2020-0752 1090 6564 PERMIT FEES PARK MAINTENANCE 01000 09 300.00 154766 4/30/2021 102249 MN FIRE SERVICE CERTIFICATION BOARD 25.00 HAZMAT RETEST LEUBNER 193235 8678 1060 6470 TRAINING&SUBSISTANCE FIRE SERVICES 01000 06 50.00 FIREFGHTR II RETSTWESTPHAL,S 193236 8677 1060 6470 TRAINING&SUBSISTANCE FIRE SERVICES 01000 06 25.00 HAZMAT RETEST FEE:WRIGHT,E. 193236 8677 1060 6470 TRAINING&SUBSISTANCE FIRE SERVICES 01000 06 100.00 154767 4/30/2021 101249 MULLER,CYNTHIA 50.51 COMM DEV DIRECTOR SUPPLIES 193158 20210430-MULLER 1010 6480 MEETING EXPENSE ADMINISTRATION 01000 01 50.51 154768 4/30/2021 108225 MUNICIPAL EMERGENCY SERVICES,INC 708.00- RTRN:FORCIBLE ENTRY TOOL(3) 192301 IN1540926/SO143489 1060 6950 MACHINERY,EQUIPMENT&TOOLS FIRE SERVICES 01000 06 CR 200.00 TURN OUT GEAR REPAIR 192555 IN1563690 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 469.53 FIRE GLOVES 192556 IN1563702 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 1,350.05 FIRE BOOTS 192887 IN1566601 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 1,311.58 164769 4/30/2021 102644 NORTHERN SAFETY TECHNOLOGY,INC 902.76 BATTERY CHARGER 192677 52182 1060 6950 MACHINERY,EQUIPMENT&TOOLS FIRE SERVICES 01000 06 902.76 154770 4/30/2021 112901 ON SITE TITLE LLC 40.68 REF UTIL CR@4830 190TH ST W 193193 21-181 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 40.68 154771 4/30/2021 114604 OPG-3,INC. 185.00 PROF SVCS-SSL CERT INSTALL 193159 4883 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 185.00 PROF SVCS-SSL CERT INSTALL 193160 4882 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 370.00 154772 4/30/2021 100290 PAUSTIS&SONS WINE COMPANY 82.25 WINE ORDER 193222 124236 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 82.25 154773 4/30/2021 100093 PELLICCI HARDWARE&RENTAL 150.00 15 YR EE REC NICK BERRA 193273 15 YR EE REC NICK 1011 7420 OTHER HUMAN RESOURCES 01000 04 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 7 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div BERRA 100.00 10 YR EE REC MARC FLIES 193274 10 YR EE REC MARC 1011 7420 OTHER HUMAN RESOURCES 01000 04 FLIES 150.00 15 YR EE REC DAVID LYNCH 193279 15 YR EE REC DAVID 1011 7420 OTHER HUMAN RESOURCES 01000 04 LYNCH 400.00 154774 4/30/2021 100034 PHILLIPS WINE AND SPIRITS,INC 2,423.33 LIQUOR&SPIRITS ORDER 193172 6191207 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 217.80 WINE ORDER 193173 6191208 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 40.31 ZING ZANG MARG MIX ORDER 193174 6191209 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 71.43-WINE ORDER CREDIT 193225 623099 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 35.02- WINE&LIQUOR CREDIT 193228 629047 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 181.51- LIQUOR&SPRITS CREDIT 193229 629089 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,393.48 154775 4/30/2021 100196 QUALITY REFRIGERATION INC 222.00 NORTH&SOUTH HEAT UNIT REPAIR 193244 0088489 6110 6505 EQUIPMENT REPAIR/MAINTENANCE DOWNTOWN LIQUOR REV&EXP 06100 02 222.00 154776 4/30/2021 100125 RSR SPECIALTIES OF WISCONSIN INC 37.50 BLADE SHARPENING 192854 0072659-IN 2502 6505 EQUIPMENT REPAIR/MAINTENANCE ICE ARENA OPERATIONS EXPE 02500 09 37.50 154777 4/30/2021 108826 RED WING,CITY OF 73,589.42 MAR'21 TIPPING FEES 193179 0061092 6302 6401 PROFESSIONAL SERVICES SOLID WASTE OPERATIONS 06300 08 73,589.42 154778 4/30/2021 112561 RICOH USA,INC 948.88 MAY'21 COPIER LEASES 193155 104878437 1010 6555 RENTAL OF EQUIPMENT ADMINISTRATION 01000 01 865.08 MAY'21 COPIER LEASES 193260 104886093 1010 6555 RENTAL OF EQUIPMENT ADMINISTRATION 01000 01 22.03 MAY'21 COPIER FAX CARD LEASE 193260 104886093 1010 6555 RENTAL OF EQUIPMENT ADMINISTRATION 01000 01 1,835.99 164779 4/30/2021 107018 SHAMROCK GROUP 133.90 ICE CUBE ORDER 193230 2615427 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 133.90 154780 4/30/2021 112051 SOUTHERN GLAZER'S OF MN 7,440.11 WINE ORDER 193166 2070047 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 7,440.11 164781 4/30/2021 100379 SPRINT-NEXTEL 28.18 APR 2021 SOLID WASTE TRACKER 193268 875483313-233 6302 6412 CELLULAR SERVICES SOLID WASTE OPERATIONS 06300 08 1.81- 193268 875483313-233 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 26.37 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 8 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 154782 4/30/2021 100100 STREICHER'S 124.95 MFF GEAR:CHU,M 193204 11498069 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01D00 05 124.95 154783 4/30/2021 118045 TENVOORDE FORD 36,776.24 F#0511 2021 FRD INTR V#46842 193200 INV20341 5602 6940 50 VEHICLES-POLICE GEN CAPITAL EQUIP FUND EX 05600 36,776.24 F#0512 2021 FRD INTRCP V#46843 193201 INV20342 5602 6940 50 VEHICLES-POLICE GEN CAPITAL EQUIP FUND EX 05600 73,552.48 154784 4/30/2021 115777 TITLE GROUP INC,THE 148.10 REF UTIL CR@19418 EUCLID PATH 193187 210335491/87 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 148.10 164785 4/30/2021 114013 TRADEMARK TITLE SERVICES,INC 6.30 REF UTIL CR@18869 EASTON AVE 193188 21-0068/71 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 6.30 154786 4/30/2021 113269 UNIVERSITY OF MN,REGENTS OF 437.50 APRIL 6 RANGE USE 193266 0430005759 1051 6470 TRAINING&SUBSISTANCE PATROL SERVICES 0100D 05 437.50 154787 4/30/2021 108808 VINOCOPIA,INC 121.50 WINE ORDER 193226 0277595-IN 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 121.50 154788 4/30/2021 115986 VIRIDIAN WEAPON TECHNOLOGIES 108.00 MFF THIGH RIG HOLSTER:CHU 193203 #INV42401 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01000 05 108.00 154789 4/30/2021 117283 WEBB BUSINESS PROMOTIONS 54.50 REF UTIL CR @ 19506 BLUEJAY CT 178975 19506 BLUE JAY CT 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 54.50 154790 4/30/2021 102592 WINE COMPANY,THE 272.40 WINE ORDER 193223 170065 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 272.40 154791 4/30/2021 100389 WOLD ARCHITECTS&ENGINEERS INC 1,153.13 ARCHITECT FEES LOBBY WINDOW 190450 70450 1050 6915 00019 BUILDING&STRUCTURE POLICE ADMINISTRATION 01000 05 1,153.13 154792 4/30/2021 100020 ZARNOTH BRUSH WORKS INC 851.20 COLD PATCH 193062 0184361-IN 1072 6253 STREET MATERIALS STREET MAINTENANCE 01000 08 851.20 154793 5/7/2021 114562 ALL AMERICAN TITLE CO,INC 19.83 REF UTIL CR@19802 DAWSON LN 193475 110884-21-02/46 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 89.87 REF UTIL CR@916 SPRUCE ST 193481 111466-21-03/55 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 9 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 109.70 154794 517/2021 110282 ALLSTATE PETERBILT OF SO ST PAUL 444.50 STARTER FOR 3212 192806 3004393843 6302 6230 VEHICLE SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 28.59- 192806 3004393843 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 415.91 154795 517/2021 100011 ANDERSEN,EARL F 147.35 NO DUMPING SIGNS 193139 0126083-IN 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 147.35 154796 517/2021 114024 APPLE CHEVROLET BUICK-NORTHFIELD 62.36 DOOR TRIM 0552 193389 75048 CVW 1051 6230 VEHICLE SUPPLIES&PARTS PATROL SERVICES 01000 05 120.53 STEERING WHEEL FOR 0906 193390 75104 CVW 1090 6230 VEHICLE SUPPLIES&PARTS PARK MAINTENANCE 01000 09 115.90 MODULE PROGRAMING FOR 4798 193391 CVCS587272 1060 6510 1 OUTSIDE VEHICLE REPAIR/MAINT FIRE SERVICES 01000 06 298.79 154797 517/2021 113303 ARTISAN BEER COMPANY 12.32- BEER ORDER CREDIT 193323 304779 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,421.30 BEER ORDER 193356 3469177 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 591.65 BEER ORDER 193408 3470363 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,000.63 154798 517/2021 108446 ASPEN MILLS,INC. 48.35 UNIFORM ITEMS:BOLTON,C. 193234 272862 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 48.35 154799 5/7/2021 100493 BELLBOY CORPORATION 34.40 BAG ORDER 193361 0103116400 6115 6250 OTHER SUPPLIES&PARTS PILOT KNOB LIQUOR 06100 02 234.46 LIQUOR SUPPLIES&MIXES ORDER 193362 0103105200 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 54.30 LIQUOR SUPPLIES&MIXES ORDER 193363 0103116500 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 289.60 LIQUOR SUPPLIES&MIXES ORDER 193428 0103139200 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 197.10 LIQUOR&SPIRITS ORDER 193429 0089092900 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 140.55 LIQUOR&SPIRITS ORDER 193448 0089092800 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 178.51 LIQUOR SUPPLIES&MIXES ORDER 193449 0103139100 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,128.92 154800 517/2021 109503 BIFFS,INC 98.99 APR'21 PRTBLE RNTL-PRAIRIEVW 193296 #W806668 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 98.99 APR'21 PRTBLE RNTL-NRTH CREEK 193297 #WB06674 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 88.01 APR'21 PRTBLE RNTL-PINE KNOLL 193298 #W806666 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 98.99 APR'21 PRTBLE RNTL-RMBL RVR P 193299 #W806669 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 88.01 APR'21 PRTBLE RNTL-TMRCK PRK 193300 #W806667 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 98.99 APR'21 PRTBLE RNTL-EVRGRN KNL 193301 #W806673 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 161.15 APR'21 PRTBLE RNTL-FEELY FLDS 193302 #W806670 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 98.99 APR'21 PRTBLE RNTL-JIM BELL P 193303 #W806675 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 10 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 98.99 APR'21 PRTBLE RNTL-MDWVW PRK 193304 #W806671 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 98.99 APR'21 PRTBLE RNTL-FIRM PRSRVE 193305 #W806672 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 88.01 APR'21 PRTBLE RNTL-LK JULIA P 193306 #W806665 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 88.01 APR'21 PRTBLE RNTL-DAISY KNLL 193307 #W806662 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 88.01 APR'21 PRTBLE RNTL-DKTA ESTA 193308 #W806663 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 88.01 APR'21 PRTBLE RNTL-HILL DEE P 193309 #W806664 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 98.99 APR'21 PRTBLE RNTL-WSTVWACRE 193310 #W806676 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 36.58 APR'21 PRTBLE RNTL-PRAIRIE PI 193311 #W806677 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 1,517.71 154801 6/7/2021 114075 BLACKFIRE CREATIVE DESIGNS 2,500.00 F#0512 GRAPHICS V#46843 193370 5058 5602 6940 50 VEHICLES-POLICE GEN CAPITAL EQUIP FUND EX 05600 2,500.00 F#0511 GRAPHICS V#46842 193370 5058 5602 6940 50 VEHICLES-POLICE GEN CAPITAL EQUIP FUND EX 05600 5,000.00 164802 5/7/2021 116669 BOURGET IMPORTS,LLC 1,057.50 WINE ORDER 193447 177200 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,057.50 154803 5/7/2021 114472 BREAKTHRU BEVERAGE MN BEER,LLC 37.75 BEER ORDER 193337 339186228 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 9,624.23 BEER ORDER 193365 339186227 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 5,085.65 BEER ORDER 193427 339271658 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 55.40 BEER ORDER 193444 339271786 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 37.75 WINE ORDER 193460 339271659 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,345.99 BEER ORDER 193469 339271785 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 17,186.77 164804 5/7/2021 114471 BREAKTHRU BEVERAGE MN WINE&SPIRITS 3,978.03 LIQUOR&SPIRITS ORDER 193360 339184671 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 57.45 WINE ORDER 193364 339184672 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,425.29 LIQUOR&SPIRITS ORDER 193445 339270121 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 537.80 WINE ORDER 193457 339270122 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,889.33 LIQUOR&SPIRITS ORDER 193458 339269970 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 301.80 WINE ORDER 193459 339269971 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 9,189.70 154805 5/7/2021 110218 BURNET TITLE 138.71 REF UTIL CR@19395 EUCLID PATH 193476 2114021-02782 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 138.71 164806 6/7/2021 108360 CANNON RIVER WINERY 156.00 WINE ORDER 193339 11552 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 156.00 164807 5/7/2021 116118 CARLOS CREEK WINERY R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 11 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 144.00 WINE ORDER 193456 21086 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 144.00 154808 5/7/2021 100025 CINTAS CORP LOC 754 43.32 APR'21 WEEKLY UNIFORM SERVICES 192865 4080731439 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 44.82 APR'21 WEEKLY UNIFORM SERVICES 192865 4080731439 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 3.01- 192865 4080731439 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 46.85 APR'21 WEEKLY UNIFORM SERVICES 192865 4080731439 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 45.00 APR'21 WEEKLY UNIFORM SERVICES 192865 4080731439 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 45.00 APR'21 WEEKLY UNIFORM SERVICES 192865 4080731439 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 45.00 APR'21 WEEKLY UNIFORM SERVICES 192865 4080731439 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 45.00 APR'21 WEEKLY UNIFORM SERVICES 193136 4081448584 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 44.83 APR'21 WEEKLY UNIFORM SERVICES 193136 4081448584 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 3.09- 193136 4081448584 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 45.00 APR'21 WEEKLY UNIFORM SERVICES 193136 4081448584 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 48.09 APR'21 WEEKLY UNIFORM SERVICES 193136 4081448584 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 43.84 APR'21 WEEKLY UNIFORM SERVICES 193136 4081448584 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 43.31 APR'21 WEEKLY UNIFORM SERVICES 193136 4081448584 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 45.00 APR'21 WEEKLY UNIFORM SERVICES 193284 4082114976 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 45.00 APR'21 WEEKLY UNIFORM SERVICES 193284 4062114976 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 3.09- 193284 4082114976 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 45.00 APR'21 WEEKLY UNIFORM SERVICES 193284 4082114976 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 48.09 APR'21 WEEKLY UNIFORM SERVICES 193284 4082114976 6302 6290 UNIFORMS&CLOTHING SOLID WASTE OPERATIONS 06300 08 43.69 APR'21 WEEKLY UNIFORM SERVICES 193284 4082114976 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 43.29 APR'21 WEEKLY UNIFORM SERVICES 193284 4082114976 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 800.94 154809 5/7/2021 117735 CLEAR RIVER BEVERAGE 312.75 BEER ORDER 193409 578297 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 312.75 154810 5/7/2021 100071 COLLEGE CITY BEVERAGE INC 7,916.55 BEER ORDER 193322 688885 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 12,680.29 BEER ORDER 193359 688847 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 21.73- BEER ORDER CREDIT 193411 690617 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 180.00 BEER ORDER 193412 690628 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 9.50- BEER ORDER CREDIT 193413 690688 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 4,503.70 BEER ORDER 193417 690689 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 4,206.15 BEER ORDER 193421 690396 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 29,455.46 154811 5/7/2021 117995 DAKOTA STITCH ERY LLC 7,708.00 TEE SHIRTS 193497 1461 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 7,708.00 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 12 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 154812 5/7/2021 107008 DISTAD,RANDY 31.64 APR'21 MILEAGE DISTAD 193373 20210430 DISTAD 1090 6485 MILEAGE REIMBURSEMENT PARK MAINTENANCE 01000 09 31.64 APR'21 MILEAGE DISTAD 193373 20210430 DISTAD 1094 6485 MILEAGE REIMBURSEMENT PARK&RECREATION ADMIN 01000 09 63.28 154813 5/7/2021 117156 ENTITLE 138.68 REF UTIL CR@18855 ENHANCE CT 182360 EN19-8286/20 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 138.68 154814 5/7/2021 111019 EXECUTIVE TITLE 126.32 REF UTIL CR@410 9TH ST 185604 D20050227/29 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 126.32 154815 5/7/2021 100022 FARMINGTON PRINTING INC 73.00 COPY PAPER 193065 13924 1010 6210 OFFICE SUPPLIES ADMINISTRATION 01000 01 73.00 154816 5/7/2021 117006 FERGUSON ENTERPRISES LLC 775.63 GAS MONITOR 193406 0186884 6202 6950 MACHINERY,EQUIPMENT&TOOLS SEWER OPERATIONS EXPENSE 06200 08 775.63 154817 5/7/2021 112904 FLEETPRIDE TRUCK&TRAILER PARTS 195.30 AIR DRYER FILTERS FOR STOCK 193002 71718379 7200 6230 VEHICLE SUPPLIES&PARTS FLEET OPERATIONS 07200 08 126.04 BRAKE CHAMBERS FOR 3215 193002 71718379 6302 6230 VEHICLE SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 8.11- 193002 71718379 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 313.23 154818 5/7/2021 100077 FRONTIER COMMUNICATIONS 75.33 MAY'21 ARENAALARM LINE 193347 651-463-3016 2502 6411 TELEPHONE/CABLE SERVICES ICE ARENA OPERATIONS EXPE 02500 09 MAY'21 75.33 154819 5/7/2021 111631 FULL SERVICE BATTERY,INC 15.00 EXIT LIGHT BATTERIES 193283 0021983 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 15.00 EXIT LIGHT BATTERIES 193283 0021983 1060 6240 BUILDING SUPPLIES&PARTS FIRE SERVICES 01000 06 .41- 193283 0021983 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 30.00 EXIT LIGHT BATTERIES 193283 0021983 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 6.00 EXIT LIGHT BATTERIES 193283 0021983 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 15.00 EXIT LIGHT BATTERIES 193283 0021983 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 15.00 EXIT LIGHT BATTERIES 193283 0021983 1050 6240 BUILDING SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 6.00 EXIT LIGHT BATTERIES 193283 0021983 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 6.41 EXIT LIGHT BATTERIES 193283 0021983 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 6.00 EXIT LIGHT BATTERIES 193283 0021983 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 6.00 EXIT LIGHT BATTERIES 193283 0021983 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 23.95 BATTERY 193288 0022125 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 360.00 CLEANER BATTERY 193289 0022071 1015 6220 EQUIP SUPPLIES&PARTS CITY HALL 01000 01 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 13 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 34.95 EXIT BATTERIES 193317 0022326 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 34.97 EXIT BATTERIES 193317 0022326 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 2.40- 193317 0022326 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 34.95 EXIT BATTERIES 193317 0022326 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 37.35 EXIT BATTERIES 193317 0022326 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 34.95 EXIT BATTERIES 193317 0022326 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 34.53 EXIT BATTERIES 193317 0022326 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 713.25 154820 5/7/2021 116299 GOPHER STATE SEALCOAT,INC. 6,810.61 2021 TRAIL CRACK SEAL 193379 18606 5721 6560 CONTRACTUAL SERVICES TRAIL MAINTENANCE 05700 6,810.61 154821 5/7/2021 100027 GREAT LAKES COCA-COLA DISTRIBUTION,LLC 1,008.60 POP ORDER 193355 3608212968 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 667.96 POP ORDER 193418 3608213030 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,676.56 154822 5/7/2021 109232 HELM ELECTRIC INC 3,592.00 UPGRADE ARENA ELECTRICAL PANEL 193368 143158 2502 6515 BUILDING REPAIR/MAINTENANCE ICE ARENA OPERATIONS EXPE 02500 09 3,592.00 154823 5/7/2021 100074 HOHENSTEINS INC 1,051.50 BEER ORDER 193407 403319 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 621.78 BEER ORDER 193410 404985 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 419.00 BEER ORDER 193414 404983 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,092.28 154824 5/7/2021 113417 INDEED BREWING COMPANY,LLC 205.80 BEER ORDER 193338 99627 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 205.80 154825 5/7/2021 111773 INNOVATIVE OFFICE SOLUTIONS,LLC 3.27 PEN HOLDER CUP 193011 IN3321183 1010 6960 FURNITURE,OFFICE EQUIP,IT ADMINISTRATION 01000 01 56.79 STAPLER,RULER,SCISSORS,MAT 193012 IN3321174 1010 6960 FURNITURE,OFFICE EQUIP,IT ADMINISTRATION 01000 01 62.06 154826 5/7/2021 110525 IN-SITU INC 50.00 MAY'21 CELL SVS:WTR LVS SFTWR 193378 4411 6502 6412 CELLULAR SERVICES WATER UTILITY EXPENSE 06500 08 50.00 154827 5/7/2021 118033 INTERSTATE BEARINGSYSTEMS 52.06 PARTS FOR MOWER ON 0929 193381 1812670 RI 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 52.06 154828 5/7/2021 109846 JJ TAYLOR DISTRIBUTING COMPANY OF MN INC 6,796.40 BEER ORDER 193354 3180231 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 14 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 3,877.35 BEER ORDER 193415 3180265 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,086.45 BEER ORDER 193416 3180266 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 13,760.20 154829 5/7/2021 100033 JOHNSON BROTHERS LIQUOR COMPANY 12.67- WINE ORDER CREDIT 193324 143594 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,508.36 LIQUOR&SPIRITS ORDER 193325 1783781 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 25.60 KINKY COCKTAILS ORDER 193326 1783780 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 576.26 WINE ORDER 193327 1783779 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 77.02 CUERVO MIX MARG ORDER 193328 1783778 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,310.94 LIQUOR&SPIRIT ORDER 193329 1783777 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 41.51 AGALIMA MARGARITA ORDER 193330 1783776 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,708.97 WINE ORDER 193331 1783775 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 848.67 LIQUOR&SPIRITS ORDER 193332 1783774 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,329.92 WINE ORDER 193425 1790651 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,032.40 WINE ORDER 193431 1790888 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,752.08 LIQUOR&SPIRITS ORDER 193434 1790650 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 4.53 MASTER MIXES MARGARITA ORDER 193435 1790652 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 111.48 MIXES ORDER 193436 1788226 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,218.31 WINE ORDER 193437 1788225 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 904.14 LIQUOR&SPIRITS ORDER 193438 1788224 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 5,840.87 LIQUOR&SPIRITS ORDER 193439 1788223 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,466.86 WINE ORDER 193440 1788222 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,180.06 LIQUOR&SPIRITS ORDER 193441 1788221 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 310.30 WINE ORDER 193442 1783096 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,247.55 LIQUOR&SPIRITS ORDER 193443 1783095 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 4.53 MIX MSTRS MARGARITA ORDER 193450 1790889 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 .38 DELIVERY CHARGE 193451 1790649 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,098.78 LIQUOR&SPIRITS ORDER 193452 1790887 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 987.28 LIQUOR&SPIRITS ORDER 193461 1788415 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 38.51 LIQUOR&SPIRITS ORDER 193462 1788416 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 481.34 WINE ORDER 193463 1768417 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,651.89 LIQUOR&SPIRITS ORDER 193464 1788418 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 537.06 LIQUOR&SPIRITS ORDER 193465 1788419 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,084.86 WINE ORDER 193466 1788420 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 33.51 AGALIMA MARGARITA ORDER 193467 1788421 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 37,401.30 154830 5/7/2021 117759 LAKE TITLE 151.85 REF UTIL CR@1309 LARCH ST 187063 20-0364/60 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 151.85 154831 517/2021 117521 LEGACY TITLE 122.25 REF UTIL CR@19842 EXECUTIVE PA 193474 MN 19507/42 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 15 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 122.25 154832 5/7/2021 112163 LION GROUP,INC 280.30 TURN OUT GEAR REPAIR 192998 300002962 1060 6505 EQUIPMENT REPAIR/MAINTENANCE FIRE SERVICES 01000 06 86.40 TURN OUT GEAR REPAIR 193006 300003079 1060 6505 EQUIPMENT REPAIR/MAINTENANCE FIRE SERVICES 01000 06 552.10 TURN OUT GEAR REPAIR 193007 300003080 1060 6505 EQUIPMENT REPAIR/MAINTENANCE FIRE SERVICES 01000 06 119.70 TURN OUT GEAR REPAIR 193008 300000979 1060 6505 EQUIPMENT REPAIR/MAINTENANCE FIRE SERVICES 01000 06 1,038.50 154833 5/7/2021 107747 M.AMUNDSON LLP 1,423.54 CIGARETTES&POP ORDER 193426 320200 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,423.54 154834 617/2021 100063 MACQUEEN EQUIPMENT,INC 996.18 SPRAY WATER PUMP FOR 0729 192977 P34082 6402 6220 EQUIP SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 996.18 164835 617/2021 109318 MC KNIGHT,DAVID 45.00 APR'21 CELL PHONE MCKNIGHT 193349 20210430 MCKNIGHT 1010 6412 CELLULAR SERVICES ADMINISTRATION 01000 01 45.00 164836 617/2021 100627 METRO ALARM CONTRACTORS INC 273.17 JUN'21-AUG'21 DTALARM MONITO 193453 043500 6110 6560 CONTRACTUAL SERVICES DOWNTOWN LIQUOR REV&EXP 06100 02 337.44 JUN'21-AUG'21 PKALARM MONITOR 193454 043501 6115 6560 CONTRACTUAL SERVICES PILOT KNOB LIQUOR 06100 02 610.61 164837 6/7/2021 100156 METROPOLITAN COUNCIL ENVIRO SERVICES 248.50- APR'21 MCES SAC FEES 193511 APRIL'21 SAC FEES 6201 5030 SAC CHARGE RETAINER SEWER OPERATIONS REVENUE 06200 08 24,850.00 APR'21 MCES SAC FEES 193511 APRIL'21 SAC FEES 6200 2425 MCES SAC(SWR AVAIL CHG) SEWER OPERATIONS 06200 08 24,601.50 154838 617/2021 117764 MINNESOTA TITLE 154.95 REF UTIL CR@5266 183RD ST W 193479 MT-2103-1230-MH175 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 154.95 154839 617/2021 100070 MINNESOTA VALLEY TESTING LABORATORIES 71.00 BAC-T SAMPLE(6)&MTHLY REPRT 192973 1082373 6502 6535 OTHER REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 71.00 164840 517/2021 113833 MMKR CERTIFIED PUBLIC ACCOUNTANTS 4,400.00 2020 AUDIT:SVS THROUGH MAR'21 193154 49923 1021 6401 PROFESSIONAL SERVICES GENERAL ACCOUNTING 01000 02 4,400.00 164841 617/2021 102249 MN FIRE SERVICE CERTIFICATION BOARD 960.00 INSTRUCTOR TESTS(8) 193494 8790 1060 6460 MEMBER DUES&LICENSURE FIRE SERVICES 01000 06 960.00 164842 517/2021 101249 MULLER,CYNTHIA R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 16 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 34.56 STATE OF CITY BEVERAGES 193374 20210430 MULLER 1010 6480 MEETING EXPENSE ADMINISTRATION 01000 01 34.56 154843 5/7/2021 113129 NETWORK TITLE INC 65.89 REF UTIL CR@1217 LOCUST ST 193482 21-0363TRM 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 65.89 154844 5/7/2021 102644 NORTHERN SAFETY TECHNOLOGY,INC 1,185.71 SQD 71 K-9 PUSH BUMPER 193010 52233 2200 6230 VEHICLE SUPPLIES&PARTS K-9(EFF.2019) 02200 05 1,185.71 154845 51712021 112901 ON SITE TITLE LLC 24.48 REF UTILCR@19306 EVENG STAR WY 190607 20-1053 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 46.57 OVRPYMT:SA PAYOFF 308 MAIN ST 190611 20-1101 3094 2255 DEPOSITS PAYABLE GO REFUNDING 2016A 03094 02 117.79 REF UTIL CR@19083 CLOVERLEAF W 193477 21-200 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 188.84 154846 5/7/2021 100290 PAUSTIS&SONS WINE COMPANY 469.75 WINE ORDER 193341 124238 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 97.25 WINE ORDER 193446 124939 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 567.00 154847 5/7/2021 100093 PELLICCI HARDWARE&RENTAL 64.99 GRASS SEED 192651 K43183/F 1076 6255 LANDSCAPING MATERIALS NATURAL RESOURCES 01000 07 32.12 CLEANING TOWELS(200 BX)X 2 192660 K43194/F 6110 6242 CLEANING SUPPLIES DOWNTOWN LIQUOR REV&EXP 06100 02 .69 BOLTS:FIRE#1 MOUNTNG BRCKTS 192671 K43177/F 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 7.79 NUTS/BOLTS/SILICONE 192767 K43204/F 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 9.99 CLEAN OUT CAP 192768 K43261/F 6202 6220 EQUIP SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 114.95 EXTENSION CORDS&DECK SCREWS 192796 K43180/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 22.97 ARENA BLEACHER REPAIR SUPPLIES 192798 K43179/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 5.24 DOOR STOP/STRAP HANGR GLV 192803 K433131F 1050 6240 BUILDING SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 46.03 BTHRM CLNR/BOWL CLNR/TOWELS 192839 K43355/F 6110 6242 CLEANING SUPPLIES DOWNTOWN LIQUOR REV&EXP 061 D0 02 3.75 BIT SET 192840 K43202/F 1015 6950 MACHINERY,EQUIPMENT&TOOLS CITY HALL 01000 01 3.74 BIT SET 192840 K43202/F 1060 6950 MACHINERY,EQUIPMENT&TOOLS FIRE SERVICES 01000 06 .10- 192840 K43202/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 7.50 BIT SET 192840 K43202/F 1072 6950 MACHINERY,EQUIPMENT&TOOLS STREET MAINTENANCE 01000 08 1.50 BIT SET 192840 K43202/F 1090 6950 MACHINERY,EQUIPMENT&TOOLS PARK MAINTENANCE 01000 09 3.75 BIT SET 192840 K43202/F 1093 6950 MACHINERY,EQUIPMENT&TOOLS SENIOR CITIZEN SERVICES 01000 09 3.75 BIT SET 192840 K43202/1' 1050 6950 MACHINERY,EQUIPMENT&TOOLS POLICE ADMINISTRATION 01000 05 1.50 BIT SET 192840 K43202/F 6202 6950 MACHINERY,EQUIPMENT&TOOLS SEWER OPERATIONS EXPENSE 06200 08 1.60 BIT SET 192840 K43202/F 6302 6950 MACHINERY,EQUIPMENT&TOOLS SOLID WASTE OPERATIONS 06300 08 1.50 BIT SET 192840 K43202/F 6402 6950 MACHINERY,EQUIPMENT&TOOLS STORM WATER UTILITY OPERA 06400 08 1.50 BIT SET 192840 K43202/F 6502 6950 MACHINERY,EQUIPMENT&TOOLS WATER UTILITY EXPENSE 06500 08 135.00 VACUUM(3) 192842 67678/F 1015 6950 MACHINERY,EQUIPMENT&TOOLS CITY HALL 01000 01 135.00 VACUUM(3) 192842 67678/F 1060 6950 MACHINERY,EQUIPMENT&TOOLS FIRE SERVICES 01000 06 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 17 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 3.71- 192842 67678/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 269.99 VACUUM(3) 192842 67678/F 1072 6950 MACHINERY,EQUIPMENT&TOOLS STREET MAINTENANCE 01000 08 54.00 VACUUM(3) 192842 67678/F 1090 6950 MACHINERY,EQUIPMENT&TOOLS PARK MAINTENANCE 01000 09 135.00 VACUUM(3) 192842 67678/F 1093 6950 MACHINERY,EQUIPMENT&TOOLS SENIOR CITIZEN SERVICES 01000 09 135.00 VACUUM(3) 192842 67678/1' 1050 6950 MACHINERY,EQUIPMENT&TOOLS POLICE ADMINISTRATION 01000 05 54.00 VACUUM(3) 192842 67678/1' 6202 6950 MACHINERY,EQUIPMENT&TOOLS SEWER OPERATIONS EXPENSE 06200 08 57.71 VACUUM(3) 192842 67678/F 6302 6950 MACHINERY,EQUIPMENT&TOOLS SOLID WASTE OPERATIONS 06300 08 54.00 VACUUM(3) 192842 67678/F 6402 6950 MACHINERY,EQUIPMENT&TOOLS STORM WATER UTILITY OPERA 06400 08 53.98 VACUUM(3) 192842 67678/1' 6502 6950 MACHINERY,EQUIPMENT&TOOLS WATER UTILITY EXPENSE 06500 08 71.94 SCREWS FOR BRIDGE REPAIR 192843 K43239/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 24.99 HAMMER 192843 K43239/F 1090 6950 MACHINERY,EQUIPMENT&TOOLS PARK MAINTENANCE 01000 09 4.62 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 1015 6220 EQUIP SUPPLIES&PARTS CITY HALL 01000 01 4.62 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 .13- 192853 K43244/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 9.23 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 1072 6220 EQUIP SUPPLIES&PARTS STREET MAINTENANCE 01000 08 1.85 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 4.62 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 1093 6220 EQUIP SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 4.62 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 1.85 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 6202 6220 EQUIP SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 1.98 EXTENSION CORD AND PEST CNTRL 192653 K43244/F 6302 6220 EQUIP SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 1.85 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 6402 6220 EQUIP SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 1.85 EXTENSION CORD AND PEST CNTRL 192853 K43244/F 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 28.76 HVAC AIR FILTERS 192855 43243/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 28.98 LATEX GLOVES AND TIE DOWNS 192856 K43258/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 720.00 PET WASTE BAGS 192857 69415/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 39.99 BLADE SAW 192858 K43388/F 2502 6220 EQUIP SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 8.49 DSP GLOVES VL XL CLR PF 192859 43334/F'21 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 8.50 DSP GLOVES VL XL CLR PF 192859 43334/F'21 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 8.50 DSP GLOVES VL XL CLR PF 192859 43334/1''21 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 8.50 DSP GLOVES VL XL CLR PF 192859 43334/1''21 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 21.24 DSP GLOVES VL XL CLR PF 192859 43334/1''21 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 21.24 DSP GLOVES VL XL CLR PF 192859 43334/F'21 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 8.50 DSP GLOVES VL XL CLR PF 192859 43334/F'21 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 42.48 DSP GLOVES VL XL CLR PF 192859 43334/F'21 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 21.21 DSP GLOVES VL XL CLR PF 192859 43334/F'21 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 21.24 DSP GLOVES VL XL CLR PF 192859 43334/F'21 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 5.82 EXIT SIGN 192862 66349/F 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 5.82 EXIT SIGN 192862 66349/F 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 .40- 192862 66349/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 5.84 EXIT SIGN 192862 66349/F 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 6.22 EXIT SIGN 192862 66349/F 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 5.82 EXIT SIGN 192862 66349/F 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 18 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 5.76 EXIT SIGN 192862 66349/F 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 59.96 CARPET CLEANER 192863 K43287/F 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 78.59 SUPPLIES FOR BLEACHER CODE 192864 43295/1' 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 7.99 CLEAN OUT CAP-PVC ADPTR 192975 K43417/F 6202 6250 OTHER SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 37.84 TARP STRAP/BUNGEE CORD/BOLT EY 193009 K43431/F 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01000 05 43.98 CARPET CLEANER 193132 K43416/F 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 11.23 NUTS/BOLTS/WSHRS:DRAG REPAIR 193133 43432/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 59.98 DSP GLOVES NIT LG/XL 193134 K43439/F 2502 6242 CLEANING SUPPLIES ICE ARENA OPERATIONS EXPE 02500 09 14.97 GRINDING WHEELS 193134 K43439/F 2502 6220 EQUIP SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 2.12 GARBAGE BAGS 193135 43442/F 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 2.12 GARBAGE BAGS 193135 43442/F 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 .06- 193135 43442/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 4.25 GARBAGE BAGS 193135 43442/F 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 .85 GARBAGE BAGS 193135 43442/F 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 2.12 GARBAGE BAGS 193135 43442/F 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 2.13 GARBAGE BAGS 193135 43442/F 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 .85 GARBAGE BAGS 193135 43442/1' 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 .91 GARBAGE BAGS 193135 43442/1' 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 .85 GARBAGE BAGS 193135 43442/F 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 .85 GARBAGE BAGS 193135 43442/F 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 19.60 BATHROOM CLEANER 193137 K43445/F 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 19.58 BATHROOM CLEANER 193137 K43445/F 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 .54- 193137 K43445/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 39.16 BATHROOM CLEANER 193137 K43445/F 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 7.83 BATHROOM CLEANER 193137 K43445/F 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 19.58 BATHROOM CLEANER 193137 K43445/F 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 19.58 BATHROOM CLEANER 193137 K43445/F 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 7.83 BATHROOM CLEANER 193137 K43445/F 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 8.37 BATHROOM CLEANER 193137 K43445/F 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 7.83 BATHROOM CLEANER 193137 K43445/F 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 7.83 BATHROOM CLEANER 193137 K43445/F 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 10.14 BOLTS FOR BLEACHERS 193138 K43450/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 2.29 PARTS FOR PLUMBING REPAIR 193140 K43455/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 56.81 KTCHN TWL ROLL(1 CASE) 193209 K43436/F 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 3.65- 193209 K43436/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 59.99 GRASS SEED 193215 43678/F 6502 6255 LANDSCAPING MATERIALS WATER UTILITY EXPENSE 06500 08 6.70 PVC PIPE/TAPE 193215 43678/F 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 4.48 PVC PIPE 193217 K43679/F 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 44.94 SALT FOR WATER SOFTNER 193237 K43580/F 1060 6240 BUILDING SUPPLIES&PARTS FIRE SERVICES 01000 06 44.73 SPRYPNT/NUTS/BOLTS/RESIN 193245 K43297/F 1060 6240 BUILDING SUPPLIES&PARTS FIRE SERVICES 01000 06 1.50 PAINT FOR CAMERA POLE 193285 K43553/F 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 1.49 PAINT FOR CAMERA POLE 193285 K43553/F 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 19 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div .10- 193285 K43553/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 1.50 PAINT FOR CAMERA POLE 193285 K43553/F 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 1.60 PAINT FOR CAMERA POLE 193285 K43553/F 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 1.50 PAINT FOR CAMERA POLE 193285 K43553/F 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 1.50 PAINT FOR CAMERA POLE 193285 K43553/F 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 .34 CAMERA POLE PARTS 193286 K43563/F 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 .33 CAMERA POLE PARTS 193286 K43563/F 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 .02- 193286 K43563/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 .33 CAMERA POLE PARTS 193286 K43563/1' 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 .35 CAMERA POLE PARTS 193286 K43563/F 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 .33 CAMERA POLE PARTS 193286 K43563/F 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 .33 CAMERA POLE PARTS 193286 K43563/F 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 87.96 CARPET CLEANER 193287 72372/1' 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 156.37 PAINT/PRIMER/TAPE/ROLLERS 193287 72372/1' 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 13.95 KEYS 193292 K43590/F 2502 6515 BUILDING REPAIR/MAINTENANCE ICE ARENA OPERATIONS EXPE 02500 09 7.99 KICKDOWN DOOR HOLDER 193312 43575/F'21 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 71.96 MOLD INHIBITOR 193313 70235/1''21 2502 6242 CLEANING SUPPLIES ICE ARENA OPERATIONS EXPE 02500 09 17.74 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/1' 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 17.70 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/F 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 .49- 193314 43619/F 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 35.48 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/1' 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 7.10 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/1' 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 17.74 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/1' 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 17.74 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/F 2502 6242 CLEANING SUPPLIES ICE ARENA OPERATIONS EXPE 02500 09 7.10 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/F 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 7.59 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/F 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 7.10 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/F 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 7.10 CRPT CLNR/STEEL WOOUSPRYER 193314 43619/F 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 5.00 TRASH BAGS 193315 72975/F'21 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 4.97 TRASH BAGS 193315 72975/F'21 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 .34- 193315 72975/1''21 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 5.34 TRASH BAGS 193315 72975/F'21 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 5.00 TRASH BAGS 193315 72975/F'21 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 12.50 TRASH BAGS 193315 72975/F'21 2502 6242 CLEANING SUPPLIES ICE ARENA OPERATIONS EXPE 02500 09 12.50 TRASH BAGS 193315 72975/F'21 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 5.00 TRASH BAGS 193315 72975/F'21 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 24.99 TRASH BAGS 193315 72975/F'21 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 12.50 TRASH BAGS 193315 72975/F'21 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 12.50 TRASH BAGS 193315 72975/F'21 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 24.99 GLOVES,LEATHER XL 193316 43631/F 2502 6290 UNIFORMS&CLOTHING ICE ARENA OPERATIONS EXPE 02500 09 37.96 BRUSHES/ROLLERS 193316 43631/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 19.93 ARENA KEYS 193340 K43672/F 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 20 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 6.57 BATTERY AND O RING 193345 43696/1' 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 51.96 PET WASTE BAGS 193346 K43694/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 6.99 SILICONE 193400 K43709/F 6502 6250 OTHER SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 4,025.21 154848 5/7/2021 117848 PEMBER COMPANIES 1,138.94 2020 SIDEWALK REPLACEMENT 193377 12184 1072 6560 CONTRACTUAL SERVICES STREET MAINTENANCE 01000 08 1,138.94 154849 5/7/2021 100032 PEPSI COLA COMPANY 144.65 POP ORDER 193342 61160155 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 153.15 POP ORDER 193343 66534755 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 139.70 POP ORDER 193419 #56119111 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 437.50 154850 5/7/2021 100034 PHILLIPS WINE AND SPIRITS,INC 124.13 ZING ZANG BL MARY ORDER 193333 6191072 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 354.20 WINE ORDER 193334 6191071 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,788.93 LIQUOR&SPIRITS ORDER 193335 6191070 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 34.92- WINE ORDER CREDIT 193336 629533 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 40.31 ZING ZANG BL MARY MIX ORDER 193430 6194530 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,064.93 WINE ORDER 193432 6194529 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,394.58 LIQUOR&SPIRITS ORDER 193433 6194528 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 542.52 LIQUOR&SPIRITS ORDER 193468 6194680 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 267.55 WINE ORDER 193470 6194681 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 7,542.23 154851 5/7/2021 110664 PREMIER TITLE INSURANCE AGENCY INC 86.47 REF UTIL CR@482 15TH ST 193480 36161.PFD/36161/42 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 86.47 154852 5/7/2021 117548 PROSPERITY FIRST TITLE 148.70 REF UTIL CR@3028 211TH ST W 193483 PFT-3694/89 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 148.70 154853 5/7/2021 114619 RED BULL DISTRIBUTION COMPANY,INC 186.00 RED BULL ORDER 193358 K-98967276 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 186.00 154854 5/7/2021 114603 RED RIVER FLAGS 117.09 FLAGS 193293 4038 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 117.11 FLAGS 193293 4038 1060 6240 BUILDING SUPPLIES&PARTS FIRE SERVICES 01000 06 3.22- 193293 4038 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 234.23 FLAGS 193293 4038 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 46.85 FLAGS 193293 4038 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 117.11 FLAGS 193293 4038 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 21 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 117.11 FLAGS 193293 4038 2502 6240 BUILDING SUPPLIES&PARTS ICE ARENA OPERATIONS EXPE 02500 09 46.85 FLAGS 193293 4038 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 50.07 FLAGS 193293 4038 6302 6240 BUILDING SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 46.85 FLAGS 193293 4038 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 46.85 FLAGS 193293 4038 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 936.90 164855 5/7/2021 118054 RESULTS TITLE 20.05 REF UTIL CR@514 MAIN ST 193510 21-02146 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 20.05 154856 5/7/2021 112632 RICOH USA,INC 6.47 APR'21 COPIER MAINTENANCE 193375 5061859223 1010 6505 EQUIPMENT REPAIR/MAINTENANCE ADMINISTRATION 01000 01 6.47 154857 5/7/2021 100096 ROSEMOUNT SAW&TOOL 23.25 BRUSH BLADE SHARPENING 193291 309428 1090 6505 EQUIPMENT REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 23.25 154858 517/2021 110990 SCHINDLER ELEVATOR CORPORATION 734.19 QTRLY ELEVATOR MAINT CONTRACT 193348 8105615055 1015 6515 BUILDING REPAIR/MAINTENANCE CITY HALL 01000 01 734.19 154859 517/2021 107018 SHAMROCK GROUP 90.32 ICE CUBE ORDER 193357 2615425 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 90.32 154860 5/7/2021 112051 SOUTHERN GLAZER'S OF MN 6,857.02 WINE ORDER 193353 2070050 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 6,165.32 LIQUOR&SPIRITS ORDER 193420 2072745 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 265.68 WINE ORDER 193422 2072739 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 5,953.01 LIQUOR&SPIRITS ORDER 193423 2072740 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 979.74 WINE ORDER 193424 2072744 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 20,220.77 154861 517/2021 113784 STEWART TITLE OF MN INC 39.20 REF UTIL CR @ 20633 CYPRESS DR 159161 20633 CYPRESS DR 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 39.20 154862 5/7/2021 100062 SWEET KNEADS BAKERY 120.00 CAKES RETIREMENT&PROMOTION 193499 3870 1060 6480 MEETING EXPENSE FIRE SERVICES 01000 06 120.00 154863 517/2021 112307 T-MOBILE USA INC 6.66 APR'21 GPS SERVICE 193376 823329497APR'21 6502 6412 CELLULAR SERVICES WATER UTILITY EXPENSE 06500 08 6.67 APR'21 GPS SERVICE 193376 823329497APR'21 6202 6412 CELLULAR SERVICES SEWER OPERATIONS EXPENSE 06200 08 6.66 APR'21 GPS SERVICE 193376 823329497APR'21 6402 6412 CELLULAR SERVICES STORM WATER UTILITY OPERA 06400 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 22 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 19.99 154864 6/7/2021 100336 TOM'S MOBILE LOCK SERVICE 117.00 REKEY EVIDENCE ROOM 193199 20210414 POLICE 1052 6401 PROFESSIONAL SERVICES INVESTIGATION SERVICES 01000 05 117.00 154865 5/7/2021 112567 ULTIMATE SAFETY CONCEPTS,INC 371.84 GAS MONITOR SENSORS 193241 194190 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 371.84 154866 5/7/2021 113123 WATERMARK TITLE AGENCY,LLC 24.42 REF UTIL CR@5736 UPR 183 ST W 193478 79334 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 24.42 164867 5/7/2021 108554 WEST TITLE LLC 124.04 REF UTIL CR@19050 ESTATE AVE 188521 200936449 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 124.04 20210418 4/19/2021 111046 VOYAGER FLEET SYSTEMS INC 42.33 MAR'21 FUEL CODE ENFORCEMENT 192475 8690882372113 1030 6272 FUEL PLANNING&ZONING 01000 03 PLAN/ZONE 801.53 MAR'21 FUEL FIRE 192533 8690882372113 FIRE 1060 6272 FUEL FIRE SERVICES 01000 06 486.82 MAR'21 FUEL WATER 192559 8690882372113 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 WATER 111.54 MAR'21 FUEL STORM 192560 8690882372113 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 STORM 722.20 MAR'21 FUEL SEWER 192562 8690882372113 6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 SEWER 4,276.32 MAR-21 FUEL POLICE 192573 8690882372113 1051 6272 FUEL PATROL SERVICES 01000 05 POLICE 7.02 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 1015 6272 FUEL CITY HALL 01000 01 MAINT 7.02 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 1060 6272 FUEL FIRE SERVICES 01000 06 MAINT .19- 192578 8690882372113 BLDG 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 MAINT 14.04 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 1072 6272 FUEL STREET MAINTENANCE 01000 08 MAINT 2.81 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 1090 6272 FUEL PARK MAINTENANCE 01000 09 MAINT 7.02 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 1093 6272 FUEL SENIOR CITIZEN SERVICES 01000 09 MAINT 7.02 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 1050 6272 FUEL POLICE ADMINISTRATION 01000 05 MAINT 2.81 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 23 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div MAINT 3.00 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 6302 6272 FUEL SOLID WASTE OPERATIONS 06300 08 MAINT 2.81 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 MAINT 2.81 MAR'21 FUEL BLDG MAINT 192578 8690882372113 BLDG 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 MAINT 4.80 MAR'21 FUEL JANITORIAL 192580 8690882372113 1015 6272 FUEL CITY HALL 01000 01 JANITORIAL 4.78 MAR'21 FUEL JANITORIAL 192580 8690882372113 1060 6272 FUEL FIRE SERVICES 01000 06 JANITORIAL .13- 192580 8690882372113 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 JANITORIAL 9.56 MAR'21 FUEL JANITORIAL 192580 8690882372113 1072 6272 FUEL STREET MAINTENANCE 01000 08 JANITORIAL 1.91 MAR'21 FUEL JANITORIAL 192580 8690882372113 1090 6272 FUEL PARK MAINTENANCE 01000 09 JANITORIAL 4.78 MAR'21 FUEL JANITORIAL 192580 8690882372113 1093 6272 FUEL SENIOR CITIZEN SERVICES 01000 09 JANITORIAL 4.78 MAR'21 FUEL JANITORIAL 192580 8690882372113 1050 6272 FUEL POLICE ADMINISTRATION 01000 05 JANITORIAL 1.91 MAR'21 FUEL JANITORIAL 192580 8690882372113 6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 JANITORIAL 2.04 MARTI FUEL JANITORIAL 192580 8690882372113 6302 6272 FUEL SOLID WASTE OPERATIONS 06300 08 JANITORIAL 1.91 MAR'21 FUEL JANITORIAL 192580 8690882372113 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 JANITORIAL 1.91 MAR'21 FUEL JANITORIAL 192580 8690882372113 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 JANITORIAL 129.52 MAR'21 FUEL BLDG INSP 192581 8690882372113 BLDG 1031 6272 FUEL BUILDING INSPECTIONS 01000 07 INSP 1,296.94 MAR-21 FUEL PARKS 192582 8690882372113 1090 6272 FUEL PARK MAINTENANCE 01000 09 PARKS 203.20 FUELMAR'21 FUEL SOLID WASTE 192611 8690882372113 SLD 6302 6272 FUEL SOLID WASTE OPERATIONS 06300 08 WASTE 13.07- 192611 8690882372113 SLD 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 WASTE 146.20 MAR'21 FUEL FLEET 192612 8690882372113 7200 6272 FUEL FLEETOPERATIONS 07200 08 FLEET 46.61 MAR'21 FUEL ENGINEERING 192827 8690882372113 1070 6272 FUEL ENGINEERING SERVICES 01000 07 ENGINEERING 324.15 MAR'21 FUEL NAT RES 192828 8690882372113 NAT 1076 6272 FUEL NATURAL RESOURCES 01000 07 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 24 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div RES 66.19 MAR'21 FUEL STREET 193280 8690882372113 1072 6272 FUEL STREET MAINTENANCE 01000 08 STREETS/SN 8,734.90 20210419 4/23/2021 114654 INVOICE CLOUD 553.96 MAR'21 IC PYMT FEES 193162 819-20213 6502 6545 PYMT PROCESSING FEES WATER UTILITY EXPENSE 06500 08 553.98 MAR'21 IC PYMT FEES 193162 819-2021_3 6402 6545 PYMT PROCESSING FEES STORM WATER UTILITY OPERA 06400 08 553.98 MAR'21 IC PYMT FEES 193162 819-2021_3 6302 6545 PYMT PROCESSING FEES SOLID WASTE OPERATIONS 06300 08 553.98 MAR'21 IC PYMT FEES 193162 819-2021_3 6202 6545 PYMT PROCESSING FEES SEWER OPERATIONS EXPENSE 06200 08 2,215.90 20210420 4/23/2021 116564 FP MAILING SOLUTIONS/POSTALIA 500.00 04/21/21 POSTAGE METER REFILL 193261 61858118 20210421 1014 6445 POSTAGE/SHIPPING FEES COMMUNICATIONS 01000 01 500.00 20210421 4/27/2021 100085 DAKOTA ELECTRIC ASSOCIATION 20.36 MAR'21 ELEC SPRUCE ST MNMNT LT 192466 200004099123 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MARCH'21 20.60 MAR'21 ELEC 220TH ST LIFT STN 192467 200001405224 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MARCH'21 55.42 MAR'21 ELEC WELL#9 192468 200010028004 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MARCH'21 570.67 MAR'21 ELEC FIRE STATION 1 192532 200001679489 1060 6422 ELECTRIC FIRE SERVICES 01000 06 MARCH'21 29.87 MAR'21 ELEC PARK&REC SIGN 192576 200002260479 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 MARCH'21 19.30 MAR'21 PK CITY SIGN NORTH ENTR 192597 200010011266 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 MARCH'21 252.54 MAR'21 ELEC DNMRK/SPRCE ST LTS 192608 200004222477 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MARCH'21 968.76 20210422 4/30/2021 116053 109 ELM,LLC 12,394.58 MAY'21 DT LIQUOR STORE RENT 192745 MAY 2021 6110 6556 BUILDING RENTAL DOWNTOWN LIQUOR REV&EXP 06100 02 12,394.58 20210423 4/28/2021 102160 CARDMEMBER SERVICES 100.00 MN COMMERCIAL RE-CERT:LEY,R. 192982 2145-1968-3/15 7200 6470 TRAINING&SUBSISTANCE FLEET OPERATIONS 07200 08 30.00 ADOBE DC K WEIERKE 192983 6913-0800-3/8 1030 6505 EQUIPMENT REPAIR/MAINTENANCE PLANNING&ZONING 01000 03 30.00 ADOBE DC G SCHILLER 192983 6913-0800-3/8 1030 6505 EQUIPMENT REPAIR/MAINTENANCE PLANNING&ZONING 01000 03 30.00 ADOBE DC L LARSON 192983 6913-0800-3/8 6302 6505 EQUIPMENT REPAIR/MAINTENANCE SOLID WASTE OPERATIONS 06300 08 19.95 MAR'21 EPERMITS PAYPAL FEES 192984 6913-7604-4/5 1031 6545 PYMT PROCESSING FEES BUILDING INSPECTIONS 01000 07 41.50 MAR'21 CELL PHONE SERVICE 192985 6913-0758-3/18 2000 6412 20 CELLULAR SERVICES-DBB HRA/ECONOMIC DEVELOPMENT 02000 03 3,075.53 MAR'21 CELL PHONE SERVICE 192985 6913-0758-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 25 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 1,496.98 MAR'21 VERIZON DATA SERVICE 192985 6913-0758-3/18 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 112.79 MONITOR 192986 4021-5743-3/12 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 87.96 CONTACT CLEANER 192987 4021-9850-3/15 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 35.85 FIRSTAID KIT BAGS 192988 4021-7999-3/18 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01000 05 748.35 TELEPHONE HEADSETS(3) 192989 4021-2346-4/1 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 77.19 BATTERIES 192990 4021-5070-3/19 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 13.50 HDMI SPLITTER 192991 4021-4568-3/22 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 15.07 DISPOSABLE CUPS 192992 4021-4861-3/26 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 104.20 PORTABLE BATTERY PACKS(4) 192993 4021-9729-3/29 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01000 05 59.98 JUMP DRIVES 192994 4021-8769-3/29 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 50.99 JUMP DRIVES 192995 4021-1224-3/29 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 450.00 PROMOTIONAL PENS 192996 4021-8673-3/8 1050 6570 PROGRAMMING EXPENSE POLICE ADMINISTRATION 01000 05 57.00 FIRE ALARM SIGNS 192997 4021-1375-3/12 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 204.82 FRONT WINDOW BLINDS 193098 4021-3568-3/26 1050 6240 BUILDING SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 75.00 MAR'21 TLO SUBSCRIPTION 193099 4021-6864-4/2 1052 6401 PROFESSIONAL SERVICES INVESTIGATION SERVICES 01000 05 50.64 FIRE ALARM EQUIP SHIPPING 193100 4021-2612-3/22 1050 6445 POSTAGE/SHIPPING FEES POLICE ADMINISTRATION 01000 05 74.54 FLEX CUFFS 193101 4021-3992-3/19 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01000 05 10.72 21000285 IN CUSTODY MEAL 193102 4021-6363-3/22 1050 6470 TRAINING&SUBSISTANCE POLICE ADMINISTRATION 01000 05 139.16 21000285 INVESTIGATORS MEALS 193103 4021-4336-3/22 1050 6470 TRAINING&SUBSISTANCE POLICE ADMINISTRATION 01000 05 37.77 CAR CHARGER ADAPTERS 193104 4021-7700-3/6 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 1,204.81 MONITORS(9);HDMI CABLE(3) 193105 4021-7717-3/8 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 106.00 COLEMAN ROLLING COOLER(3) 193106 4021-0666-3/19 1054 6950 MACHINERY,EQUIPMENT&TOOLS EMERGENCY MGMT SERVICES 01000 05 83.20 JUMP START PACKS 193107 4021-6667-3/15 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 249.60 JUMP START PACKS 193107 4021-6667-3/15 1054 6220 EQUIP SUPPLIES&PARTS EMERGENCY MGMT SERVICES 01000 05 57.99 RADIO HOLDER 193108 4021-2458-3/9 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 32.98 SWITCHES 193109 4021-5181-3/9 1060 6230 VEHICLE SUPPLIES&PARTS FIRE SERVICES 01000 06 43.96 POWER STRIPS(2) 193110 4021-6065-3/10 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 140.79 SPKR WIRE/BLUETOOTH ADAPTERS 193111 4021-6540-3/10 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01D00 06 50.00 2021 RECRUITMENT FACEBOOKAD 193112 6913-7252-3/22 1060 6494 EMPLOYMENT ADVERTISING FIRE SERVICES 01000 06 50.00 2021 RECRUITMENT FACEBOOKAD 193113 6913-3820-3/25 1060 6494 EMPLOYMENT ADVERTISING FIRE SERVICES 01000 06 189.01 LUNCH FOR HAZ_MAT TEST 193114 6125-5189-3/8 4302 6470 TRAINING&SUBSISTANCE FIRE RELIEF 04300 06 89.54 FOOD FOR OFFICER 1 193115 6125-0537-3/17 4302 6470 TRAINING&SUBSISTANCE FIRE RELIEF 04300 06 141.52 FOOD FOR INSTRUCTOR 1 193116 6125-5854-3/24 4302 6470 TRAINING&SUBSISTANCE FIRE RELIEF 04300 06 85.00 MAGC NRTHRN LGHTS CNTST ENTRY 193117 6913-4219-3/8 1014 7420 OTHER COMMUNICATIONS 01000 01 5.00- 2021 MAGC AWARD JUDGE CREDIT 193117 6913-4219-3/8 1014 7420 OTHER COMMUNICATIONS 01000 01 68.24 FOOD FOR LAKEVILLE STAND BY 193118 6133-0058-3/16 1060 6470 TRAINING&SUBSISTANCE FIRE SERVICES 01000 06 43.14 GLUE DOTS&SPRNG CRAFTS 193119 3544-1017-3/11 1095 6570 PROGRAMMING EXPENSE RECREATION PROGRAM SERVIC 01000 09 206.17 RRC FITNESS CL SUPPLIES 193120 3544-4985-3/23 1093 6570 PROGRAMMING EXPENSE SENIOR CITIZEN SERVICES 01000 09 42.72 CHECK ON CHICKEES CANDY 193121 3544-3139-3/26 1093 6570 PROGRAMMING EXPENSE SENIOR CITIZEN SERVICES 01000 09 7.95 CAMERA CORD 193122 3544-0647-3/29 1093 6220 EQUIP SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 50.95 SPRING CRAFTS 193123 3544-9945-3/29 1095 6570 PROGRAMMING EXPENSE RECREATION PROGRAM SERVIC 01000 09 88.99 PLOTTER INK 193124 3544-3550-3/31 1093 6220 EQUIP SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 26 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 39.95 ZUMBA INSTRCTR MEMBRSHP:POPP, 193125 3544-9695-3/8 1093 6460 MEMBER DUES&LICENSURE SENIOR CITIZEN SERVICES 01000 09 153.70 ZOOM ANNUAL SUBSCRIPTION 193126 5212-7837-3/15 2000 6505 20 EQUIPMENT REPAIR/MAINT-DBB HRA/ECONOMIC DEVELOPMENT 02000 03 12.98 APR'21 WEBSITE HOSTING 193127 5212-0799-3/29 2000 6505 20 EQUIPMENT REPAIR/MAINT-DBB HRA/ECONOMIC DEVELOPMENT 02000 03 373.86 CART FOR MOVING TURF ROLLS 193128 3367-1734-3/18 2502 6950 MACHINERY,EQUIPMENT&TOOLS ICE ARENA OPERATIONS EXPE 02500 09 117.15 THERMAL PAPER FOR MOBILE 193129 8032-6155-3/22 1031 6210 OFFICE SUPPLIES BUILDING INSPECTIONS 01000 07 25.00 DECK PLAN RVW TRNG:JOHNSON,L 193130 8032-0606-3/25 1031 6470 TRAINING&SUBSISTANCE BUILDING INSPECTIONS 01000 07 110.97 NITRILE GLOVES 193141 4021-0092-3/8 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 118.60 NITRILE GLOVES 193141 4021-0092-3/8 6302 6242 CLEANING SUPPLIES SOLID WASTE OPERATIONS 06300 08 7.63- 193141 4021-0092-3/8 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 110.97 NITRILE GLOVES 193141 4021-0092-3/8 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 110.97 NITRILE GLOVES 193141 4021-0092-3/8 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 08 74.96 APRIL'21 ZOOM SUBSCRIPTION 193248 0915-8351-3/31 7400 6505 EQUIPMENT REPAIR/MAINTENANCE INFORMATION TECHNOLOGY 07400 04 899.99 TV FOR FIRE STATION 1 TRN RM 193249 0915-7561-3/22 4302 6960 FURNITURE,OFFICE EQUIP,IT FIRE RELIEF 04300 06 39.95 BUSYLIGHT:P GILBERTSON 193250 0915-2545-3/15 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 756.00 HEADSETS(4) 193251 0915-1021-3/8 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 14.90 CAT6 JACK ENDS:IT DEPT 193252 0915-2715-3/8 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 213.89 HDMI/PWRSTRP:FS1 TRN RM 193253 0915-9709-3/22 4302 6220 EQUIP SUPPLIES&PARTS FIRE RELIEF 04300 06 74.97 HDMI CABLES(3):FS1 TRNRM TVS 193254 0915-2909-3/22 4302 6220 EQUIP SUPPLIES&PARTS FIRE RELIEF 04300 06 13.99 BADGE REELS:CITY USERS 193255 0915-3143-3/22 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 26.90 DOORBELL:RRC 193256 0915-2808-3/29 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 52.74 USB2HDMI ADPT:A MAILHOT 193257 0915-0687-3/31 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 52.74 USB2HDMI ADPT:FS1 MONITOR 193258 0915-0683-4/1 7400 6220 EQUIP SUPPLIES&PARTS INFORMATION TECHNOLOGY 07400 04 105.23 PALLET WRAPPING 193259 6860-4232-3119 6302 6250 OTHER SUPPLIES&PARTS SOLID WASTE OPERATIONS 06300 08 60.00 UNIFORM SHIRTS:P GILBERTSON 193281 0915-2494-3/8 7400 6290 UNIFORMS&CLOTHING INFORMATION TECHNOLOGY 07400 04 .99 MAR'21 ICLOUD STRGE SIEBENALER 193282 6913-5723-3/8 1014 6412 CELLULAR SERVICES COMMUNICATIONS 01000 01 13,812.82 20210501 5/3/2021 117968 EBSO 74,543.72 MAY'21 HEALTH INS PREMIUM 193471 9029-071801-1000 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 070DO 02 74,543.72 20210502 5/3/2021 100085 DAKOTA ELECTRIC ASSOCIATION 1,547.30 MAR'21 ELEC WELL#7 192756 2D0003490737 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'21 27.03 MAR'21 ELEC DAISY KNOLL TOWER 192757 200001318518 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'21 6,370.58 MAR-21 ELEC 9TH ST STREET LTS 192758 200001038421 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 MAR'21 2,795.17 MAR-21 ELEC WELL#6 192759 200001550151 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'21 1,440.32 MAR'21 ELEC WELL#5 192760 200002785533 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'21 1,338.60 MAR-21 ELEC WELL#4 192761 200001318526 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 27 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div MAR'21 119.03 MAR'21 ELEC VERM GROVE LS 192762 200003215779 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 MAR'21 3,179.69 MAR'21 ELEC WELL#8 192763 200004199709 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'21 160.29 MAR'21 ELEC 195TH WATER TOWER 192764 200002587095 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 MAR'21 1,028.60 MAR-21 ELEC PK LIQ STORE 192769 200003759891 6115 6422 ELECTRIC PILOT KNOB LIQUOR 06100 02 MAR'21 5.00 MAR'21 ELEC CIV DEF SIREN 192804 200001982271 1054 6422 ELECTRIC EMERGENCY MGMT SERVICES 01000 05 MAR'21 5.00 MAR'21 ELEC CIV DEF SIREN 192805 200002260958 1054 6422 ELECTRIC EMERGENCY MGMT SERVICES 01000 05 MAR'21 32.83 MAR'21 ELEC TUNNEL LIGHT 192868 200005468327 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 MAR'21 357.97 MAR'21 ELEC FIRE STATN#2 193246 200003971959 1060 6422 ELECTRIC FIRE SERVICES 01000 06 MAR'21 18,407.61 20210503 5/3/2021 116564 FP MAILING SOLUTIONS/POSTALIA 500.00 04/29/21 POSTAGE METER REFILL 193351 61858118 20210429 1014 6445 POSTAGE/SHIPPING FEES COMMUNICATIONS 01000 01 500.00 20210504 5/3/2021 117261 USPS POSTALONE 66.66 MAR/APR'21 RRC NEWSLETTER 193350 RRC NEWSLETTER 1014 6445 POSTAGE/SHIPPING FEES COMMUNICATIONS 01000 01 20210428 66.66 20210505 5/3/2021 100394 XCEL ENERGY 7.65 MAR'21 ELEC CIV DEF SIREN 192799 51-4874006 MAR'21 1054 6422 ELECTRIC EMERGENCY MGMT SERVICES 01000 05 7.65 20210506 5/5/2021 108980 MINNESOTA ENERGY RESOURCES CORPORATION 99.09 APR'21 GAS 208TH ST WARM HOUSE 193295 0506537581 APR'21 1090 6423 NATURAL GAS PARK MAINTENANCE 01000 09 99.09 20210507 5/5/2021 100394 XCEL ENERGY 6,889.69 MAR-21 ELEC NOW METER ST LTS 192978 51-4874005 MAR'21 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 9.52 MAR'21 ELEC CITY GARAGE 192978 51-4874005 MAR'21 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 .90- 192978 51-4874005 MAR'21 9999 2415 MN SALES TAX DUE CASH COMPANY 09999 5.71 MAR'21 ELEC CITY GARAGE 192978 51-4874005 MAR'21 1072 6422 ELECTRIC STREET MAINTENANCE 01000 08 3.81 MAR'21 ELEC CITY GARAGE 192978 51-4874005 MAR'21 6402 6422 ELECTRIC STORM WATER UTILITY OPERA 06400 08 14.03 MAR'21 ELEC CITY GARAGE 192978 51-4874005 MAR'21 6302 6422 ELECTRIC SOLID WASTE OPERATIONS 06300 08 140.91 MAR'21 ELEC CITY GARAGE 192978 51-4874005 MAR'21 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 17.14 MAR'21 ELEC CITY GARAGE 192978 51-4874005 MAR'21 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/12/2021 9:28:53 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 28 4/1/2021 - 5/12/2021 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 168.49 MAR'21 ELEC ROUNDABOUT 192978 51-4874005 MAR'21 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 49.27 MAR'21 ELEC TRAFFIC SIGNAL 192978 51-4874005 MAR'21 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 423.58- MAR'21 ELEC LIFT STATIONS 192978 51-4874005 MAR'21 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 1,060.45 MAR'21 ELEC WELL#1&3 192978 51-4874005 MAR'21 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 44.36 MAR'21 ELEC DOWNTOWN ST LTS 192978 51-4874005 MAR'21 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 7,978.90 20210508 5/7/2021 100135 PUBLIC EMPLOYEES RETIREMENT ASSN. 25,241.38 193514 0505211614431 7000 2113 PERA PAYABLE EMPLOYEE EXPENSE FUND 07000 02 33,726.56 193515 0505211614432 7000 6154 PERA EMPLOYEE EXPENSE FUND 07000 02 58,967.94 Report Totals 627,740.81 APPROVALS: IB OYT ERNHJELM EARSON O TER WILSON CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 .. I O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: 2020 Management and Comprehensive Annual Financial Report DATE: May 17, 2021 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(Annual Report)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 Annual Report.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, 2020 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 2020 results,share their internal control findings, and answer questions. A copy of this year's Management Report, Special Purpose Reports, and the Annual Report are attached. This past year, 2020,was a very good year for the city and should be celebrated. • The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources by$120,200,544(net position)at the close of the most recent fiscal year. Of this amount, $24,655,671 (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$3,661,649 in 2020,of this amount an increase of$3,131,469 was attributable to governmental activities,and an increase of$530,180 was attributable to business- type activities. • The city's outstanding bonded debt decreased by$1,870,000,or 13.4 percent,during the fiscal year due to a combination of the issuance of$1,105,000 of general obligation equipment certificates and annual bond principle payments. • The city's governmental funds reported combined ending fund balances of$19,050,065 at December 31, 2020,an increase of$2,684,478 from the prior year. Approximately 76.1 percent of this total amount, $14,488,475,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$6,060,870, or 43.8 percent,of 2021 General Fund budgeted expenditures and transfers out. The Government Finance Officers Association (G FOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the city of Farmington for its Annual Report for the year ended December 31, 2019.This was the 11th 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 Annual Report 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 Annual Report continues to meet the Certificate of Achievement program requirements. We will be submitting the 2020 report to the G FOA to determine eligibility for another certificate. The city received $1,723,785 from the CARES Act for COVI D expenditures that were incurred due to the public health emergency, not accounted for in the most recently approved budget as of March 27, 2020, and incurred between March 1, 2020 and November 15, 2020. A single federal audit is required when a non-federal entity expends $750,000 or more in federal grant funds in a fiscal year. MMKR completed the single federal audit for the city. As part of the auditors review of the city's internal control processes and compliance testing they identified two matters 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. It was also noted that there were costs of$58,018 charged to the CARES program that did not meet the standard of allowable costs. Those included wages for personnel that were not considered substantially different in accordance with the federal guidelines.This is considered a material weakness. It is not a reflection of all of the funds from the CARES Act spent by the city.There were numerous other eligible expenditures that were not allocated to those funds. The items could not be substituted with eligible expenditures. A corrective action plan is required for the single federal audit and has been included in your packet. 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.The 2019 audit was conducted remotely due to COVI D-19.The 2020 audit was a combination of remote and on-site work. 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. It 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 D Backup Material 2020 Farmington Comprehensive Annual Financial Report © Backup Material 2020 Farmington Management Report D Backup Material 2020 Farmington Special Purpose Report D Backup Material 2020 Farmington Corrective Action Plan Comprehensive Annual Financial Report k� tt�.��, a a '"+'��, � v `.rr "c•Y�� 'T�� `�`zs, � ''tSt � as t�.P+�� ��.'. �tom'_ P ^��3; �+ t,'F� R Y't�.'Y .a i�S•r� F '� j Photo from Megan Chase City of Farmington, Minnesota Year Ended December 31 , 2020 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 31,2020 David McKnight City Administrator Report Prepared by Finance Department Member of Government 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-v GFOA Certificate of Achievement vi Organizational Chart vii Elected Officials and Executive Staff viii 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 and Nonemployer 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 71-78 CITY OF FARMINGTON Table of Contents(continued) Page SUPPLEMENTAL INFORMATION Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds 79 Combining Balance Sheet 80 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 81 Nonmajor Special Revenue Funds 82 Combining Balance Sheet 83-84 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 85-86 Nonmajor Capital Projects Funds 87 Combining Balance Sheet 88-89 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 90-91 Debt Service Fund 92 Combining Balance Sheet by Account 93-94 Combining Schedule of Revenues,Expenditures, and Changes in Fund Balances by Account 95-96 Budgetary Comparison Schedules 97 Debt Service Fund 98 State Aid Construction Capital Projects Fund 99 Storm Water Trunk Capital Projects Fund 100 Permanent Improvement Revolving Capital Projects Fund 101 Maintenance Capital Projects Fund 102 Private Capital Projects Fund 103 Nonmajor Special Revenue Funds Police Donations and Forfeitures 104 Park Improvement 105 Arena 106 Nonmajor Capital Projects Funds Sanitary Sewer Trunk 107 Cable Communications 108 Fire 109 Recreation 110 General Capital Equipment 111 Internal Service Funds 112 Combining Statement of Net Position 113 Combining Statement of Revenues,Expenses,and Changes in Fund Net Position 114 Combining Statement of Cash Flows 115 Discretely Presented Component Unit—EDA 116 Combining Balance Sheet 117 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 118 CITY OF FARMINGTON Table of Contents (continued) Page STATISTICAL SECTION(UNAUDITED) STATISTICAL TABLES 119 Net Position by Component 120-121 Changes in Net Position 122-125 Fund Balances of Governmental Funds 126-127 Changes in Fund Balances of Governmental Funds 128-129 Tax Capacity Value and Estimated Actual Value of Taxable Property 130-131 Property Tax Rates 132 Principal Property Taxpayers 133 Property Tax Levies and Collections 134 Ratios of Outstanding Debt by Type 135-136 Ratios of General Bonded Debt Outstanding 137-138 Direct and Overlapping Governmental Activities Debt 139 Legal Debt Margin Information 140-141 Pledged Revenue Coverage 142 Demographic and Economic Statistics 143 Principal Employers 144 Full-Time Equivalent City Government Employees by Function 145-146 Operating Indicators by Function 147-148 Capital Asset Statistics by Function/Program 149-150 THIS PAGE INTENTIONALLY LEFT BLANK INTRODUCTORY SECTION CITY OF Q 43o Third St., Farmington, MN 55024 FARMINGTON 651.28o_6800 "a Farmington MN.gov May 11, 2021 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Farmington, Minnesota, The Comprehensive Annual Financial Report (Annual Report) of the City of Farmington, Minnesota (the City)for the fiscal year ended December 31, 2020 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 Annual Report 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 31,2020,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, 2020, 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 23,123. 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. Installed Building Solutions and The Federal Aviation Administration employ 500 and 498 people each, respectively. During 2020, a number of new businesses opened or expanded, construction was completed on three building expansions in downtown Farmington and one along Highway 3. 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 significantly higher than 2019. In 2020,the City issued new construction permits for 82 new single-family units and one new commercial building. The new single-family permits resulted in a total new residential building valuation of$17,737,900.The new commercial building had a valuation of $2,263,280. The number of foreclosures in the City remained relatively flat. There were 8 foreclosures in the City in 2020, compared to 9 in 2019. -ii- Long-Term Planning The City Council meets each year to review changes that have taken place in the City and identify a set of priorities forthe next 1-2 years. In March 2020,the City Council established four priorities for 2020,which include: • Sound Financial Practices • Development for a Successful Future • Build on Established Partnerships • Quality Service Delivery and 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.The AA+rating was affirmed in 2020.The City Council 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 2020,the staff continued to review and revise various capital improvement plans including those for streets, trails, and equipment. The City's new aerial truck was ordered in early 2020, with delivery scheduled for mid-2021. After numerous years on hold, mill and overlay street projects began again in 2019,with plans to continue in future years along with street reconstruction projects. 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. Major Initiatives The City continues to place a high priority on planning forthe 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. -iii- 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 second addition of the Sapphire Lake development for 33 lots, and a third addition with 32 lots was recently approved in January 2021. The City Council also approved the second and third addition for 35 and 36 lots, respectively, in the Fairhill Estate at North Creek development. Lastly,the City Council approved a new market rate apartment building consisting of 52 units planned for construction in 2021. The City continued implementation of the Downtown Redevelopment Plan, including a Downtown Facade Improvement Grant Program. Implementation has also begun on the small area study for redevelopment of the Highway 3 corridor. Farmington Municipal Liquor Operations have made tremendous improvements over the past several 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 nine years, the stores have produced an average of over$200,000 per year in profits. Notably,the liquor stores have been able to provide roughly$1.5 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. Relevant Financial Policies In accordance with the City's investment policy, the City strives to maintain a fund balance of 40 to 50 percent of subsequent year's budgeted expenditures minimum fund balance level to provide for cash flow purposes.The City's debt policy restricts long-term borrowing to capital equipment, public facilities, or infrastructure that have a life of more than five years and cannot be financed from current revenues. The maturity length of that debt shall be below 20 years, with at least 50 percent of the principle retired within 10 years. Cash temporarily idle during the year was invested in U.S. government agency obligations, municipal securities, certificates of deposit, and money market instruments. The City's investment policy calls for the investment of public funds in a manner that will provide the highest investment return with minimum risk,while meeting the daily cash flow demands of the City. Awards The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Report for the year ended December 31, 2019. This is the 11th 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 Annual Report. 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 Annual Report continues to meet the Certificate of Achievement Program's requirements and are submitting it to the GFOA to determine its eligibility for another certificate. -iv- 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 -v- THIS PAGE INTENTIONALLY LEFT BLANK ( De Government Finance Officers Association Certificate of Achievement for Excellence in Financia Reporting Presented to City of Farmington Minnesota For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 O,Azd:� P Executive Director/CEO -vi- 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 planning and Programming Streets Zoning Liquor Operations Water CITY OF Sanitary Sewer FARMINGTON Surface Water SoLid Waste CITY OF FARMINGTON Elected Officials and Executive Staff December 31, 2020 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 -viii- 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 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 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, 2020, 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, 2020, 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. 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 Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 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 VERNMENTA UDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 11, 2021 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. Minneapolis,Minnesota May 11,2021 -3- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Management's Discussion and Analysis Year Ended December 31,2020 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, 2020. 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 $120,200,544 (net position) at the close of the most recent fiscal year. Of this amount, $24,655,671 (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 $3,661,649 in 2020, including an increase of $3,131,469 attributable to governmental activities, and an increase of $530,180 attributable to business-type activities. • The City's outstanding bonded debt decreased by $1,870,000, or 13.4 percent, during the fiscal year, due to a combination of the issuance of $1,105,000 of general obligations equipment certificates and annual bond principal payments. • The City's governmental funds reported combined ending fund balances of $19,050,065 at December 31, 2020, an increase of$2,684,478 from the prior year. Approximately 76.1 percent of this total amount, $14,488,475, 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 $6,060,870, or 43.8 percent, of 2021 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. 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. 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- 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 government, 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 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. -5- The City adopts annual appropriated budgets for its General Fund, most special revenue funds, the 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, internal service funds, and the discretely presented component unit, which are presented immediately following the basic financial statements. Furthermore, a statistical section has been included as part of the Comprehensive Annual Financial Report 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 $120,200,544 at December 31, 2020. City of Farmington's Net Position Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Current and other assets $ 26,943,704 $ 24,474,467 $ 19,458,340 $ 17,390,560 $ 46,402,044 $ 41,865,027 Capital assets,net 46,682,049 47,612,477 52,712,003 54,488,632 99,394,052 102,101,109 Total assets $ 73,625,753 $ 72,086,944 $ 72,170,343 $ 71,879,192 $145,796,096 $143,966,136 Deferred outflows of resources $ 2,743,559 $ 3,536,176 $ 95,316 $ 63,273 $ 2,838,875 $ 3,599,449 Current liabilities $ 2,574,853 $ 2,607,326 $ 770,714 $ 936,857 $ 3,345,567 $ 3,544,183 Long-term liabilities 20,341,217 21,129,967 1,573,584 1,577,512 21,914,801 22,707,479 Total liabilities $ 22,916,070 $ 23,737,293 $ 2,344,298 $ 2,514,369 $ 25,260,368 $ 26,251,662 Deferred inflows ofresources $ 3,109,156 $ 4,673,210 $ 64,903 $ 101,818 $ 3,174,059 $ 4,775,028 Net position Net investment in capital assets $ 35,883,311 $ 33,867,761 $ 51,976,059 $ 53,677,776 $ 87,859,370 $ 87,545,537 Restricted 5,224,015 5,343,074 2,461,488 2,461,488 7,685,503 7,804,562 Unrestricted 9,236,760 8,001,782 15,418,911 13,187,014 24,655,671 21,188,796 Total net position $ 50,344,086 $ 47,212,617 $ 69,856,458 $ 69,326,278 $120,200,544 $116,538,895 The largest portion of the City's net position, $87,859,730, or 73 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$7,685,503 comprised 6 percent of net position at the close of the fiscal year ended December 31,2020.These assets are subject to external restrictions on how they may be used. The balance of unrestricted net position, $24,655,671, or approximately 21 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, 2020, with comparative totals for the year ended December 31, 2019. The City's total net position increased by $3,661,649, or 3.1 percent,during the current fiscal year. City of Farmington's Change in Net Position Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Revenues Charges for services $ 1,635,983 $ 1,680,536 $ 14,116,565 $ 13,609,842 $ 15,752,548 $ 15,290,378 Operating grants and contributions 713,470 838,569 26,710 34,190 740,180 872,759 Capital grants and contributions 50,478 869,849 - 81,634 50,478 951,483 Property taxes 13,044,381 12,916,115 - - 13,044,381 12,916,115 Othertaxes 244,839 262,148 - - 244,839 262,148 Unrestricted grants 2,042,381 317,172 18,136 - 2,060,517 317,172 Investment earnings 526,283 657,977 411,349 548,310 937,632 1,206,287 Gain on disposal of capital assets 16,174 17,218 - - 16,174 17,218 Total revenues 18,273,989 17,559,584 14,572,760 14,273,976 32,846,749 31,833,560 Expenses General government 2,933,062 2,609,059 - - 2,933,062 2,609,059 Public safety 6,834,253 6,118,203 - - 6,834,253 6,118,203 Public works 5,262,979 5,612,872 - - 5,262,979 5,612,872 Parks and recreation 1,430,839 2,202,631 - - 1,430,839 2,202,631 Economic development 276,900 50,000 - - 276,900 50,000 Interest on long-term debt 193,167 404,893 - - 193,167 404,893 Liquor - - 4,958,705 5,257,236 4,958,705 5,257,236 Sewer - - 2,334,000 2,326,630 2,334,000 2,326,630 Solid waste - - 2,630,874 1,913,258 2,630,874 1,913,258 Storm water - - 530,438 557,749 530,438 557,749 Water - - 1,626,279 1,439,178 1,626,279 1,439,178 Street light - - 173,604 165,886 173,604 165,886 Total expenses 16,931,200 16,997,658 12,253,900 11,659,937 29,185,100 28,657,595 Change in net position before transfers 1,342,789 561,926 2,318,860 2,614,039 3,661,649 3,175,965 Transfers 1,788,680 946,033 (1,788,680) (946,033) - - Change innet position 3,131,469 1,507,959 530,180 1,668,006 3,661,649 3,175,965 Net position-beginning 47,212,617 45,704,658 69,326,278 67,658,272 116,538,895 113,362,930 Net position-ending $ 50,344,086 $ 47,212,617 $ 69,856,458 $ 69,326,278 $120,200,544 $116,538,895 Governmental Activities-Governmental activities increased the City's net position before transfers by $1,342,789, primarily due to the increase in unrestricted grants, as the City received a$1,723,785 federal Coronavirus Relief Fund (CRF) grant entitlement in 2020 to provide assistance to the community and fund unanticipated COVID-19-related expenses. Business-Type Activities-Business-type activities increased the City's net position before transfers by $2,318,860, as program revenues exceeded expenses for all activities but sewer operations. -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 Other Charges for and Grants 3% g 11% Services Contributions 9% <1% Operating Grants and Contributions 4% Other Tares_ 1°o Property Taxes 72% 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 $7,000,000 -- $6,500,000 $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 $_ General Parks and Economic Interest on Government Public Safety Public Works Recreation Development Long-Term Debt ■ProgramRevenues $657,793 $924,083 $427,870 $390,185 $- $- ■Expenses $2,933,062 $6,834,253 $5,262,979 $1,430,839 $276,900 1 $193,167 -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 Unrestricted Operating Grants Other Grants and <1% 3% Contributions <1% Charges for Services 97% 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 Operations Solid Waste Storm Water Water Fund Street Light ■Program Revenues $5,347,194 $2,160,808 $2,714,617 $1,149,665 $2,538,001 $232,990 ■Expenses $4,958,705 $2,334,000 $2,630,874 $530,438 $1,626,279 $173,604 -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 $19,050,065, a 16.4 percent increase of $2,684,478 from 2019. The increase is mainly attributable to the proceeds from the City's 2020A Equipment Certificates that were used to make a prepayment on the purchase of an aerial fire truck that will be constructed and received in 2021 (in the nonmajor funds), and increased transfers committed for pavement management in the Maintenance Capital Projects Fund. Committed and unassigned fund balances, which are available for spending at the government's discretion, had a combined balance of $14,488,475 at year-end. The remainder of the fund balance is either nonspendable ($1,325,873); or restricted to indicate that it is not available for new spending because it has already been obligated: 1)to pay debt service ($2,677,368), 2) for various police programs ($62,545), 3) to pay for future cable communication expenditures ($185,017), 4) for park or recreational capital improvements($272,370),and 5)for fire capital equipment purchases($38,417). 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 2020, the unassigned fund balance of the General Fund was $6,060,870. As a measure of the General Fund's liquidity, it may be useful to compare the fund balance to total fund expenditures. The 2020 unassigned fund balance represents 43.8 percent of total 2021 General Fund budgeted expenditures and transfers out, up from 42.2 percent for the December 31, 2019 unassigned fund balance as a percentage of the 2020 General Fund budgeted expenditures and transfers out. Total fund balances increased by$330,796 in the General Fund during the 2020 fiscal year. The reason for the increase in fund balance is mainly due to the CRF federal grant received for 2020, the majority of which was used for General Fund purposes. 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 43.8 percent as of December 31, 2020. 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, 2020, the City's General Fund balance meets the minimum fund balance guideline. -11- Debt Service Fund — During the year, the City repaid $2,910,000 in bond principal. The fund balance in the Debt Service Fund decreased $99,255, primarily because the premium received in conjunction with the issuance of the 2020A equipment certificates, property taxes, special assessments, and investment earnings were less than needed to pay the total principal and interest due. 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$3,358 from investment income received. Storm Water Trunk Capital Projects Fund—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. The increase of$135,037 in fund balance is due to revenues exceeding project costs in the current year. Permanent Improvement Revolving Capital Projects Fund— There were no new projects in this fund during 2020. There was a modest increase in the fund balance of $4,870 from special assessments and investment income received. Maintenance Capital Projects Fund—The increase of$793,441 in fund balance was due to the state aid construction revenues, investment earnings, other miscellaneous revenues, and transfers in received during the current year exceeding street project costs incurred in 2020. Private Capital Projects Fund—There were no new projects in this fund during 2020. There was a modest increase in the fund balance of $35,884 from special assessments and investment income received. Total fund balances in the City's nonmajor governmental funds increased $1,480,347 in fiscal 2020, to a year-end total of $4,482,729. Financial highlights for some of the significant changes in the City's nonmajor governmental funds are as follows: Park Improvement Special Revenue Fund—The increase in fund balance of$217,554 is mainly a result of$197,238 of transfers into the fund in 2020 for future park improvement projects. Sanitary Sewer Trunk Capital Projects Fund— During 2020, charges for services and investment earnings revenues exceeded the public works expenditures needed, resulting in a net increase in fund balance of$101,072. Fire Capital Projects Fund — During 2020, equipment certificate proceeds of $1,195,091 were recorded in this fund and used for a prepayment on an aerial fire truck that was ordered for completion and delivery in 2021, increasing fund balance by$1,191,071. Recreation Capital Projects Fund—The increase in fund balance of$121,378 is mainly a result of $210,000 of transfers into the fund in 2020 to support recreation program capital needs. General Capital Equipment Capital Projects Fund—The decrease in fund balance of$214,903 is mainly a result of previously accumulated resources used to support expenditures for 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. The net position of the Liquor Operations Fund at the end of 2020 totaled $1,506,724, a decrease of $99,787, which is net of the $475,000 in funds contributed to community projects noted above. The cash position for both stores decreased from $1,562,043 at December 31, 2019 to $1,406,830 as of December 31,2020. Sewer Operations Fund— The decrease in net position of$438,751 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, 2020, to cover both operations and depreciation. This fund continues to maintain a significant unrestricted net position of$3,174,710. Solid Waste Fund—The Solid Waste Fund net position increased by $50,552, due to a fee increase that went into effect in January 2020 to address anticipated cost increases in 2020. Storm Water Fund—The increase in net position of$268,271 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$2,157,917. Water Fund— The increase in net position of$684,125 is primarily due to an increase in operating revenue related to increases in both water rates and consumption. 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 2020, is designed to cover depreciation. This fund continues to maintain a significant unrestricted net position of$6,895,688. 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 first decade of operation,this fund has achieved a modest positive net position of$276,703. 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$1,528,704 over budget.Revenue variances from final budget to actual include: • Licenses and permits were$115,232 over budget, due to an increase in building permits. • Intergovernmental revenue was $1,339,380 over budget,mainly due to the majority of the federal CRF grant funding,which was not budgeted,being used for General Fund purposes. • Investment earnings were$102,761 more than the City's conservative budget. Expenditures were $291,189 less than the budgeted amount. The City benefited from lower salaries and benefits costs partially attributable to vacant positions. Expenditures were also under budget in a number of areas, due to COVID-19 restrictions, and conservative spending and use of city resources by all staff. -13- 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, 2020 was $99,394,052 (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 decreased by 2.7 percent, mainly due depreciation exceeding a relatively small amount of additions capitalized in the current year. City of Farmington's Capital Assets Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Land and easement $ 1,749,824 $ 1,749,824 $ 498,376 $ 498,376 $ 2,248,200 $ 2,248,200 Buildings 14,167,799 14,604,3 86 1,743,890 1,845,441 15,911,689 16,449,827 Improvements other than buildings 408,286 369,682 1,419,454 1,496,363 1,827,740 1,866,045 Machinery and equipment 2,579,622 2,056,722 1,138,309 1,048,594 3,717,931 3,105,316 Infrastructure 27,776,518 28,831,863 — — 27,776,518 28,831,863 Collection/distribution systems — — 47,911,974 49,599,858 47,911,974 49,599,858 Total(net ofdepreciation) $ 46,682,049 $ 47,612,477 $ 52,712,003 $ 54,488,632 $ 99,394,052 $102,101,109 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 $12,070,000. 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$659,773 for unamortized bond premiums, $1,213,321 for compensated absences, $7,085,676 for net pension liabilities, and $886,031 for other post-employment benefits. City of Farmington's Outstanding Debt Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 General obligation improvement bonds $ 5,770,000 $ 8,135,000 $ — $ — $ 5,770,000 $ 8,135,000 Capital improvement bonds 4,540,000 5,085,000 — — 4,540,000 5,085,000 Equipment certificates 1,105,000 — — — 1,105,000 — General obligation revenue bonds — — 655,000 720,000 655,000 720,000 Total bonds outstanding $ 11,415,000 $ 13,220,000 $ 655,000 $ 720,000 $ 12,070,000 $ 13,940,000 Bond principal repayments during 2020 totaled $2,975,000. The City's credit rating from Standard & Poor's was raised from"AA"to"AA+"in April 2019,which was affirmed in 2020. 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 $62,796,446, 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. -14- ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The City increased its General Fund net operating levy in 2021 by $526,000. The final city total net tax levy for 2021 of$11,268,554 is 4.9 percent higher than the comparable 2020 levy. Of the total General Fund budgeted revenues, including transfers in for 2021, 76.2 percent are from property taxes, including $2.3 million in fiscal disparities revenue. The remaining General Fund budgeted revenues were adjusted to better reflect increased projected building activity and a reduction in intergovernmental-related revenues. Proposed 2021 General Fund expenditures, including transfers out, are estimated at $13,832,464, an increase of 1.4 percent compared to the 2020 budget. The 2021 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 police vehicles, along with continued replacement of public safety equipment in 2021.The City will also take delivery of its first ladder truck,Ladder 1, in 2021. For 2021,the City is focused on continuing implementation of 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 approved for new home construction in 2021, along with a new market rate apartment building. The COVID-19 pandemic caused substantial volatility in the economy and changes to the City's operations in 2020, and is expected to continue to impact the City's finances and operations in fiscal 2021 and beyond. Significant uncertainty remains about the breadth and duration of the pandemic. At this time, the City is unable to determine what effect this may have on its future financial condition. REQUESTS FOR INFORMATION This Comprehensive Annual Financial Report 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 Comprehensive Annual Financial Report 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 31,2020 Primary Government Component Unit Economic Governmental Business-Type Development Activities Activities Total Authority Assets Cash and investments $ 21,236,787 $ 14,219,373 $ 35,456,160 $ 335,685 Receivables Accounts 256,385 1,782,797 2,039,182 - Interest 45,541 36,790 82,331 736 Property taxes 1,339,708 - 1,339,708 - Special assessments 1,584,688 330,548 1,915,236 - Due from other governments 4,379 19,560 23,939 54,202 Loan 90,845 - 90,845 - Inventory - 603,944 603,944 - Prepaid items 1,241,290 3,840 1,245,130 - Restricted assets-temporality restricted Cash for future drinking water treatment plant - 2,461,488 2,461,488 - Net pension asset-fire relief 1,144,081 - 1,144,081 - Capital assets Not depreciated 1,749,824 498,376 2,248,200 - Depreciated,net of accumulated depreciation 44,932,225 52,213,627 97,145,852 - Total capital assets,net of accumulated depreciation 46,682,049 52,712,003 99,394,052 - Total assets 73,625,753 72,170,343 145,796,096 390,623 Deferred outflows of resources Pension plan deferments-PERA 2,117,677 82,362 2,200,039 - Pension plan deferments-fire relief 503,185 - 503,185 - OPEB plan deferments 122,697 12,954 135,651 - Total deferred outflows of resources 2,743,559 95,316 2,838,875 - Total assets and deferred outflows of resources $ 76,369,312 $ 72,265,659 $ 148,634,971 $ 390,623 Liabilities Accounts and contracts payable $ 734,852 $ 533,019 $ 1,267,871 $ 60,703 Accrued salaries and employee benefits payable 171,885 - 171,885 - Accrued interest payable 161,930 12,825 174,755 - Deposits payable 1,506,011 108,739 1,614,750 - Due to other governments 175 116,131 116,306 - Long-term liabilities Due within one year 2,969,308 155,683 3,124,991 - Due in more than one year 10,110,265 707,838 10,818,103 - Net pension liability-due in more than one year 6,460,229 625,447 7,085,676 - Total OPEB liability-due in more than one year 801,415 84,616 886,031 - Total long-term liabilities 20,341,217 1,573,584 21,914,801 - Total liabilities 22,916,070 2,344,298 25,260,368 60,703 Deferred inflows of resources Pension plan deferments-PERA 2,360,874 24,707 2,385,581 - Pension plan deferments-fire relief 367,581 - 367,581 - OPEB plan deferments 380,701 40,196 420,897 Total deferred inflows of resources 3,109,156 64,903 3,174,059 - Net position Net investment in capital assets 35,883,311 51,976,059 87,859,370 - Restricted for Debt service 3,424,398 - 3,424,398 - Capital projects 207,857 - 207,857 - Police programs 62,545 - 62,545 - Park improvements 249,530 - 249,530 - Fire relief pensions 1,279,685 - 1,279,685 - Water Fund-future drinking water treatment plant - 2,461,488 2,461,488 - Unrestricted 9,236,760 15,418,911 24,655,671 329,920 Total net position 50,344,086 69,856,458 120,200,544 329,920 Total liabilities,deferred inflows of resources,and net position $ 76,369,312 $ 72,265,659 $ 148,634,971 $ 390,623 See notes to basic financial statements -16- CITY OF FARMINGTON Statement of Activities Year Ended December 31,2020 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary government Governmental activities General government $ 2,933,062 $ 631,118 $ 26,297 $ 378 Public safety 6,834,253 413,594 460,389 50,100 Public works 5,262,979 201,401 226,469 — Parks and recreation 1,430,839 389,870 315 — Economic development 276,900 — — — Interest and fiscal charges 193,167 — — — Total governmental activities 16,931,200 1,635,983 713,470 50,478 Business-type activities Liquor operations 4,958,705 5,347,194 — — Sewer operations 2,334,000 2,160,808 — — Solid waste 2,630,874 2,692,155 22,462 — Storm water 530,438 1,149,665 — — Water 1,626,279 2,533,753 4,248 — Street light 173,604 232,990 — — Total business-type activities 12,253,900 14,116,565 26,710 — Total primary government $ 29,185,100 $ 15,752,548 $ 740,180 $ 50,478 Component unit Economic development authority $ 337,506 $ — $ 209,469 $ — General revenues Property taxes Franchise taxes Grants and contributions not restricted to specific programs Investment earnings Gain on disposal of capital assets Transfers 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 $ (2,275,269) $ — $ (2,275,269) $ — (5,910,170) — (5,910,170) — (4,835,109) — (4,835,109) — (1,040,654) — (1,040,654) — (276,900) — (276,900) — (193,167) — (193,167) — (14,531,269) — (14,531,269) — — 388,489 388,489 - - (173,192) (173,192) - - 83,743 83,743 - - 619,227 619,227 - - 911,722 911,722 - - 59,386 59,386 - - 1,889,375 1,889,375 — (14,531,269) 1,889,375 (12,641,894) — — — — (128,037) 13,044,381 — 13,044,381 134,757 244,839 — 244,839 — 2,042,381 18,136 2,060,517 — 526,283 411,349 937,632 8,505 16,174 — 16,174 — 1,788,680 (1,788,680) — — 17,662,738 (1,359,195) 16,303,543 143,262 3,131,469 530,180 3,661,649 15,225 47,212,617 69,326,278 116,538,895 314,695 $ 50,344,086 $ 69,856,458 $ 120,200,544 $ 329,920 -18- CITY OF FARMINGTON Balance Sheet Governmental Funds as of December 31,2020 Capital Projects— Debt Service State Aid General Fund Construction Assets Cash and investments $ 4,837,575 $ 3,261,916 $ 130,649 Receivables Accounts 181,313 — — Interest 13,158 7,273 287 Property taxes Unremitted 1,229,112 — — Delinquent 110,596 — — Special assessments Delinquent 68 1,757 — Noncurrent — 907,203 232,453 Due from other funds — — — Advances to other funds — — — Due from other governments 4,379 — — Loan 90,845 — — Prepaid items 50,351 — — Total assets $ 6,517,397 $ 4,178,149 $ 363,389 Liabilities Accounts and contracts payable $ 186,540 $ 2,900 $ — Deposits payable 18,068 — — Due to other governments 59 — — Due to other funds — 288,921 — Advances from other funds — 300,000 — Total liabilities 204,667 591,821 — Deferred inflows of resources Unavailable revenue—property taxes 110,596 — — Unavailable revenue—special assessments 68 908,960 232,453 Total deferred inflows of resources 110,664 908,960 232,453 Fund balances Nonspendable 141,196 — — Restricted — 2,677,368 — Committed — — 130,936 Unassigned 6,060,870 — — Total fund balances 6,202,066 21677,368 130,936 Total liabilities,deferred inflows of resources,and fund balances $ 6,517,397 $ 4,178,149 $ 363,389 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 $ 3,008,451 $ 179,389 $ 1,991,172 $ 1,587,985 $ 3,274,626 $ 18,271,763 - - - - 75,072 256,385 7,044 393 1,999 3,308 5,601 39,063 - - - - - 1,229,112 - - - - 110,596 - - - - - 1,825 - 442,346 - 861 - 1,582,863 288,921 - - - - 288,921 300,000 - - - - 300,000 - - - - - 4,379 - - - 90,845 - - - - 1,184,677 1,235,028 $ 3,604,416 $ 622,128 $ 1,993,171 $ 1,592,154 $ 4,539,976 $ 23,410,780 $ 332,621 $ - $ 51,950 $ 574,011 - 1,479,075 5,181 1,502,324 - 116 175 - - - - 288,921 - - - 300,000 332,621 1,479,075 57,247 2,665,431 - - - 110,596 442,346 - 861 - 1,584,688 - 442,346 - 861 - 1,695,284 - - - 1,184,677 1,325,873 - - - - 558,349 3,235,717 3,604,416 179,782 1,660,550 112,218 2,739,703 8,427,605 - - - - - 6,060,870 3,604,416 179,782 1,660,550 112,218 4,482,729 19,050,065 $ 3,604,416 $ 622,128 $ 1,993,171 $ 1,592,154 $ 4,539,976 $ 23,410,780 -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 31,2020 Total fund balances—governmental funds $ 19,050,065 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 91,103,932 Less accumulated depreciation (44,432,869) Net pension assets are only recorded in the government-wide financial statements as they are not current financial resources to governmental funds. 1,144,081 Long-term liabilities are not payable with current financial resources and,therefore, are not reported in governmental funds. Bonds (11,415,000) Unamortized bond premiums (578,829) Compensated absences (1,050,910) Net pension liability (6,460,229) Total OPEB liability (801,415) 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. (161,930) 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. 2,617,503 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 110,596 Delinquent and deferred special assessments 1,584,688 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 2,620,862 Deferred outflows of resources—OPEB plan deferments 122,697 Deferred inflows of resources—pension plan deferments (2,728,455) Deferred inflows of resources—OPEB plan deferments (380,701) Total net position—governmental activities $ 50,344,086 See notes to basic financial statements -21- CITY OF FARMINGTON Statement of Revenues,Expenditures,and Changes in Fund Balances Governmental Funds Year Ended December 31,2020 Capital Projects— Debt Service State Aid General Fund Construction Revenues Property taxes $ 10,244,358 $ 2,639,387 $ Franchise taxes 120,000 — — Special assessments 1,359 404,417 — Licenses and permits 588,347 — — Intergovernmental 2,261,674 — — Charges for services 419,761 — — Fines and forfeits 45,959 — — Investment earnings 141,561 61,159 3,358 Other 40,467 Total revenues 13,863,486 3,104,963 3,358 Expenditures Current General government 2,530,001 Public safety 5,901,556 Public works 2,479,538 — — Parks and recreation 1,136,531 — — Economic development 40,000 Capital outlay General government 165,927 — — Public safety 192,068 Public works 4,693 — — Parks and recreation 8,642 — — Debt service Principal — 2,910,000 — Interest and fiscal charges — 378,427 — Interest and fiscal charges 12,458,956 3,288,427 — Excess(deficiency)of revenues over expenditures 1,404,530 (183,464) 3,358 Other financing sources(uses) Issuance of debt — — — Premium on debt issuance — 84,209 — Sale of capital assets — — — Transfers in 1,307,570 — — Transfers out (2,381,304) — — Total other financing sources(uses) (1,073,734) 84,209 — Net change in fund balances 330,796 (99,255) 3,358 Fund balances Beginning of year 5,871,270 2,776,623 127,578 End of year $ 6,202,066 $ 2,677,368 $ 130,936 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 $ - $ - $ - $ - $ 13,049,745 - - - - 124,839 244,839 - 263 - 1,373 - 407,412 - - - - 588,347 - - 450,365 - 236,900 2,948,939 79,043 - 14,487 - 377,117 890,408 - - - - - 45,959 111,359 4,607 30,821 34,806 67,562 455,233 - - 1,140 - 120,080 161,687 356,402 4,870 496,813 36,179 926,498 18,792,569 - - - 295 107,649 2,637,945 - - - - 15,943 5,917,499 80,323 - 234,705 - - 2,794,566 - - 34,935 - 389,315 1,560,781 236,900 276,900 - - - - 14,789 180,716 - - - - 913,050 1,105,118 - - 1,271,869 - - 1,276,562 - - 93,846 102,488 - - - - - 2,910,000 18,804 - - - - 397,231 99,127 - 1,541,509 295 1,771,492 19,159,806 257,275 4,870 (1,044,696) 35,884 (844,994) (367,237) - - 1,105,000 1,105,000 - - - 90,091 174,300 - - 12,867 12,867 1,838,137 - 1,117,383 4,263,090 (122,238) - - - - (2,503,542) (122,238) - 1,838,137 - 2,325,341 3,051,715 135,037 4,870 793,441 35,884 1,480,347 2,684,478 3,469,379 174,912 867,109 76,334 3,002,382 16,365,587 $ 3,604,416 $ 179,782 $ 1,660,550 $ 112,218 $ 4,482,729 $ 19,050,065 -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 31,2020 Total net change in fund balances—governmental funds $ 2,684,478 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 1,286,174 Depreciation expense (2,207,427) 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 (1,811) Net pension assets are included in net position,but are excluded from fund balances because they do not represent financial resources. 448,491 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. Debt issued (1,105,000) Principal payments for debt 2,910,000 Debt premiums (46,769) Compensated absences (102,417) Net pension liability (1,078,535) Total OPEB liability 222,558 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. 76,533 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. 329,396 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. Delinquent property taxes (5,364) Delinquent and deferred special assessments (1,050,275) Governmental funds do not report additions or deletions to certain long-term amounts related to pensions that are included in the change in net position. Deferred outflows of resources—pension plan deferments (850,095) Deferred outflows of resources—OPEB plan deferments 57,478 Deferred inflows of resources—pension plan deferments 1,899,024 Deferred inflows of resources—OPEB plan deferments (334,970) Change in net position—governmental activities $ 3,131,469 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 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 10,231,191 $ 10,244,358 $ 13,167 Franchise taxes 120,000 120,000 - Special assessments - 1,359 1,359 Licenses and permits 473,115 588,347 115,232 Intergovernmental 922,294 2,261,674 1,339,380 Charges for services 445,802 419,761 (26,041) Fines and forfeits 49,000 45,959 (3,041) Investment earnings 38,800 141,561 102,761 Other 54,580 40,467 (14,113) Total revenues 12,334,782 13,863,486 1,528,704 Expenditures Current General government 2,652,299 2,530,001 (122,298) Public safety 6,099,723 5,901,556 (198,167) Public works 2,654,647 2,479,538 (175,109) Parks and recreation 1,270,876 1,136,531 (134,345) Economic development 40,000 40,000 - Capital outlay General government 600 165,927 165,327 Public safety 23,500 192,068 168,568 Public works 800 4,693 3,893 Parks and recreation 7,700 8,642 942 Total expenditures 12,750,145 12,458,956 (291,189) Excess(deficiency)of revenues over expenditures (415,363) 1,404,530 1,819,893 Other financing sources(uses) Transfers in 1,307,570 1,307,570 - Transfers out (892,207) (2,381,304) (1,489,097) Total other financing sources(uses) 415,363 (1,073,734) (1,489,097) Net change in fund balances $ - 330,796 $ 330,796 Fund balances Beginning of year 5,871,270 End of year $ 6,202,066 See notes to basic financial statements -25- CITY OF FARMINGTON Statement of Net Position Proprietary Funds as of December 31,2020 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Assets Current assets Cash and investments $ 1,406,830 $ 2,471,296 $ 1,343,488 $ 1,910,767 Cash restricted for drinking water treatment plant - - - - Receivables Accounts 56,741 439,431 620,815 254,118 Interest 3,525 5,421 2,767 4,191 Delinquent special assessments - 26,267 - - Deferred special assessments - 304,281 - - Due from other governments - - 16,124 - Inventory 603,944 - - - Prepaid items 3,840 - - - Total current assets 2,074,880 3,246,696 1,983,194 2,169,076 Noncurrent assets Capital assets Land - 85,000 - 84,992 Buildings - - - - Improvements other than buildings 121,012 - - - Machinery and equipment 255,266 1,051,228 1,450,548 316,644 Distribution system - - - - Collection system - 28,952,049 - 20,835,694 Less accumulated depreciation (367,359) (13,443,543) (1,034,046) (8,265,953) Total capital assets(net of accumulated depreciation) 8,919 16,644,734 416,502 12,971,377 Total assets 2,083,799 19,891,430 2,399,696 15,140,453 Deferred outflows ofresources Pension plan deferments-PERA 46,329 - 36,033 - OPEB plan deferments 6,972 - 5,982 - Total deferred outflows ofresources 53,301 42,015 - Total assets and deferred outflows ofresources $ 2,137,100 $ 19,891,430 $ 2,441,711 $ 15,140,453 Liabilities Current liabilities Accounts and contracts payable $ 87,607 $ 39,681 $ 165,521 $ 11,159 Accrued salaries and employee benefits payable - - - - Deposits payable - - - - Due to other governments 54,608 32,305 29,218 - Accrued interest payable - - - - Compensatedabsencespayable-current 41,455 - 54,228 - Bonds payable-current - - - - Total current liabilities 183,670 71,986 248,967 11,159 Noncurrent liabilities Compensated absences payable 13,818 - 18,076 - Bonds payable(net ofunamortized premiums) - - - - Net pension liability-PERA 351,814 - 273,633 - Total OPEB liability 45,542 - 39,074 - Total noncurrent liabilities 411,174 - 330,783 - Total liabilities 594,844 71,986 579,750 11,159 Deferred inflows ofresources Pension plan deferments-PERA 13,898 - 10,809 - OPEB plan deferments 21,634 - 18,562 - Total deferred inflows ofresources 35,532 - 29,371 - Net position Net investment in capital assets 8,919 16,644,734 416,502 12,971,377 Restricted for drinking water treatment plant - - - - Unrestricted 1,497,805 3,174,710 1,416,088 2,157,917 Total net position 1,506,724 19,819,444 1,832,590 15,129,294 Total liabilities,deferred inflows ofresources,and net position $ 2,137,100 $ 19,891,430 $ 2,441,711 $ 15,140,453 See notes to basic financial statements -26- Governmental Street Activities- Water Light Total Internal Service $ 6,813,927 $ 273,065 $ 14,219,373 $ 2,965,024 2,461,488 - 2,461,488 - 380,765 30,927 1,782,797 - 20,304 582 36,790 6,478 - - 26,267 - - - 304,281 - 3,436 - 19,560 - - - 603,944 - - - 3,840 6,262 9,679,920 304,574 19,458,340 2,977,764 328,384 - 498,376 - 5,290,137 - 5,290,137 - 1,534,818 - 1,655,830 - 523,357 - 3,597,043 93,624 33,196,921 - 33,196,921 - - - 49,787,743 - (18,203,146) - (41,314,047) (82,638) 22,670,471 - 52,712,003 10,986 32,350,391 304,574 72,170,343 2,988,750 - - 82,362 - - - 12,954 - - - 95,316 $ 32,350,391 $ 304,574 $ 72,265,659 $ 2,988,750 $ 201,180 $ 27,871 $ 533,019 $ 160,841 - - - 171,885 108,739 - 108,739 3,687 - - 116,131 - 12,825 - 12,825 - - - 95,683 34,834 60,000 - 60,000 - 382,744 27,871 926,397 371,247 - - 31,894 - 675,944 - 675,944 - - - 625,447 - 84,616 - 675,944 - 1,417,901 - 1,058,688 27,871 2,344,298 371,247 - - 24,707 - - 40,196 - - - 64,903 - 21,934,527 - 51,976,059 10,986 2,461,488 - 2,461,488 - 6,895,688 276,703 15,418,911 2,606,517 31,291,703 276,703 69,856,458 2,617,503 $ 32,350,391 $ 304,574 $ 72,265,659 $ 2,988,750 -27- CITY OF FARMINGTON Statement of Revenues,Expenses,and Changes in Fund Net Position Proprietary Funds Year Ended December 31,2020 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Operating revenue Sales $ 5,343,145 $ - $ - $ - Charges for services - 2,158,807 2,689,823 1,149,585 Insurance reimbursement - - Miscellaneous 4,049 2,001 2,332 80 Total operating revenue 5,347,194 2,160,808 2,692,155 1,149,665 Cost of goods sold 3,984,504 - Gross profit 1,362,690 2,160,808 2,692,155 1,149,665 Operating expenses Personal services 487,910 1,698 468,347 762 Professional services 468,826 1,652,923 1,954,317 79,062 Materials and supplies 14,909 32,026 107,016 10,193 Insurance - - - - Depreciation 2,556 645,288 101,194 440,421 Total operating expenses 974,201 2,331,935 2,630,874 530,438 Operating income(loss) 388,489 (171,127) 61,281 619,227 Nonoperating revenues(expenses) Intergovernmental 7,106 1 33,489 1 Investment earnings 41,070 61,985 33,460 45,195 Gain on sale of capital assets - - - - Interest and fiscal charges - (2,065) - - Total nonoperating revenues(expenses) 48,176 59,921 66,949 45,196 Income(loss)before transfers 436,665 (111,206) 128,230 664,423 Transfers in 70,201 - Transfers out (536,452) (327,545) (147,879) (396,152) Change in net position (99,787) (438,751) 50,552 268,271 Net position Beginning of year 1,606,511 20,258,195 1,782,038 14,861,023 End of year $ 1,506,724 $ 19,819,444 $ 1,832,590 $ 15,129,294 See notes to basic financial statements -28- Governmental Street Activities- Water Light Total Internal Service $ - $ - $ 5,343,145 $ - 2,270,175 228,175 8,496,565 3,529,662 - - - 282,524 263,578 4,815 276,855 - 2,533,753 232,990 14,116,565 3,812,186 3,984,504 - 2,533,753 232,990 10,132,061 3,812,186 5,901 - 964,618 2,975,237 416,785 169,912 4,741,825 376,115 190,455 3,692 358,291 177,817 - - - 263,299 991,651 - 2,181,110 7,364 1,604,792 173,604 8,245,844 3,799,832 928,961 59,386 1,886,217 12,354 4,249 - 44,846 211,742 223,255 6,384 411,349 71,050 - - - 5,118 (21,487) - (23,552) - 206,017 6,384 432,643 287,910 1,134,978 65,770 2,318,860 300,264 - - 70,201 29,132 (450,853) - (1,858,881) - 684,125 65,770 530,180 329,396 30,607,578 210,933 69,326,278 2,288,107 $ 31,291,703 $ 276,703 $ 69,856,458 $ 2,617,503 -29- CITY OF FARMINGTON Statement of Cash Flows Proprietary Funds Year Ended December 31,2020 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Cash flows from operating activities Cash received from customers $ 5,346,327 $ 2,160,908 $ 2,544,006 $ 1,152,089 Cash receipts from other funds and reimbursements - - - - Cash payments to suppliers (4,522,920) (1,834,598) (1,985,348) (82,494) Cash payments to employees for services (489,783) (1,698) (464,448) (762) Cash payments for interfund services used - - - - Net cash flows from operating activities 333,624 324,612 94,210 1,068,833 Cash flows from noncapital financing activities Intergovernmental revenue 7,106 1 33,489 1 Transfers in - - 70,201 - Transfers out (136,452) (327,545) (147,879) (396,152) Net cash flows from noncapital financing activities (129,346) (327,544) (44,189) (396,151) Cash flows from capital and related financing activities Acquisition and construction of capital assets - (157,378) (46,242) (90,367) Principal payment on bonds - - - - Proceeds from the disposal of capital assets - - - - Interest and fiscal charges paid - (2,065) - - Transfers out (400,000) - -Net cash flows from capital and related financing activities (400,000) (159,443) (46,242) (90,367) Cash flows from investing activities Interest received and changes in fair value on investments 40,509 61,457 33,178 43,449 Net increase in cash and cash equivalents (155,213) (100,918) 36,957 625,764 Cash and cash equivalents Beginning of year 1,562,043 2,572,214 1,306,531 1,285,003 End of year $ 1,406,830 $ 2,471,296 $ 1,343,488 $ 1,910,767 Reconciliation of operating income(loss)to net cash flows from operating activities Operating income(loss) $ 388,489 $ (171,127) $ 61,281 $ 619,227 Adjustments to reconcile operating income(loss)to net cash flows from operating activities Depreciation 2,556 645,288 101,194 440,421 Change in assets,deferred outflows of resources,liabilities, and deferred inflows of resources Accounts receivable (867) (3,628) (132,025) 2,424 Special assessments - 3,728 - - Due from other governments - - (16,124) - Inventory 12,439 - - - Prepaid items (507) - - - Deferred outflows of resources-pension plan deferments (14,923) - (11,606) - Deferred outflows of resources-OPEB plan deferments (2,707) - (2,807) - Accounts and contracts payable (71,532) (172,014) 71,918 6,761 Accrued salaries and employee benefits - - - - Deposits payable - - - - Due to other governments 4,919 22,365 4,067 - Compensated absences 12,185 - 7,816 - Net pension liability 46,791 - 36,393 - Total OPEB liability (21,422) - (10,779) - Deferred inflows of resources-pension plan deferments (40,440) - (31,454) - Deferred inflows of resources-OPEB plan deferments 18,643 - 16,336 - Net cash flows from operating activities $ 333,624 $ 324,612 $ 94,210 $ 1,068,833 Schedule of noncash capital and related financing activities Amortization of bond premium $ - $ - $ - $ - See notes to basic financial statements -30- Governmental Street Activities- Water Light Total Intemal Service $ 2,473,754 $ 232,499 $ 13,909,583 $ - - - - 3,819,235 (633,141) (171,813) (9,230,314) - (5,901) - (962,592) (3,216,583) - - - (803,330) 1,834,712 60,686 3,716,677 (200,678) 4,249 - 44,846 211,742 - - 70,201 29,132 (450,853) - (1,458,881) - (446,604) - (1,343,834) 240,874 (110,494) - (404,481) - (65,000) - (65,000) - 5,118 (39,916) - (41,981) - (400,000) - (215,410) - (911,462) 5,118 217,951 6,194 402,738 69,993 1,390,649 66,880 1,864,119 115,307 7,884,766 206,185 14,816,742 2,849,717 $ 9,275,415 $ 273,065 $ 16,680,861 $ 2,965,024 $ 928,961 $ 59,386 $ 1,886,217 $ 12,354 991,651 - 2,181,110 7,364 (56,563) (491) (191,150) 4,102 - 3,728 - (3,436) - (19,560) 2,947 - - 12,439 - - - (507) 5,444 - - (26,529) - - - (5,514) - (84,136) 1,791 (247,212) 49,756 - - - (295,855) 59,739 - 59,739 2,123 (1,504) - 29,847 - - - 20,001 11,087 - - 83,184 - - - (32,201) - - - (71,894) - - - 34,979 - $ 1,834,712 $ 60,686 $ 3,716,677 $ (200,678) $ 9,912 $ - $ 9,912 $ - -31- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Notes to Basic Financial Statements December 31, 2020 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 debt of the City,other than enterprise fund debt. 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 1—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 2020 budget was adopted for the Police Public Outreach, K-9, or Federal Aid Special Revenue Funds. 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, 2020, 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 Storm Water Trunk Capital Projects $ — $ 99,127 Maintenance Capital Projects $ 1,153,107 $ 1,541,509 Private Capital Projects $ — $ 295 Nonmajor special revenue funds Police Donations and Forfeitures $ 3,100 $ 5,784 Arena $ 368,200 $ 369,559 Nonmajor capital projects funds Recreation $ 9,600 $ 101,191 General Capital Equipment $ 728,256 $ 860,547 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 1—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. All receivables other than deferred special assessments are expected to be collected within one year. 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. 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 post-employment 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 I—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. 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. 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. 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. -39- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) 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. NOTE 2—DEPOSITS AND INVESTMENTS A. Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits $ 11,038,909 Investments 27,213,924 Petty cash 500 Total $ 38,253,333 Cash and investments are included on the basic financial statements as follows: Primary government Statement of Net Position Cash and investments $ 35,456,160 Restricted assets—temporarily restricted Cash for future drinking water treatment plant 2,461,488 Component unit Statement of Net Position Cash and investments 335,685 Total $ 38,253,333 -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 $11,038,909, while the balance on the bank records was $11,212,188. At December 31, 2020, 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 Total U.S.agency securities AA S&P Level 2 $ 477,869 $ 301,254 $ 600,600 $ 1,379,723 Municipal bonds AAA S&P Level 2 — 882,685 150,687 1,033,372 Municipal bonds AA Moody's Level 2 — 1,939,688 1,365,991 3,305,679 Municipal bonds AA S&P Level 2 — 2,378,333 3,106,338 5,484,671 Municipal bonds A Moody's Level 2 — — 402,324 402,324 Municipal bonds Baa Moody's Level — 363,128 — 363,128 Negotiable certificates of deposit Not rated Level 2 2,756,097 10,728,769 277,771 13,762,637 $ 3,233,966 $ 16,593,857 $ 5,903,711 25,731,534 Investment pools/mutual funds Western Asset Institutional Government Reserves AAA S&P Level 1 1,482,390 Total investments $ 27,213,924 -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) $ 288,921 Advances to/from other funds Governmental Governmental Storm Water Trunk Debt Service Debt financing(2) $ 300,000 (1) Advance of$1,515,000 to finance G.O.2010A Bonds. Annual payments through 12/30/2021. 1.755 percent interest. (2) 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 Governmental Funds Proprietary Funds Solid Waste Internal Transfers Out General Maintenance Nonmajor Enterprise Service Total Governmental funds General $ — $ 1,638,137 $ 720,145 $ — $ 23,022 $ 2,381,304 Storm Water Trunk — — 122,238 — — 122,238 Proprietary funds Enterprise Liquor Operations 61,452 200,000 275,000 — — 536,452 Sewer Operations 307,408 — — 18,137 2,000 327,545 Solid Waste 144,129 — — — 3,750 147,879 Storm Water 376,936 18,856 360 396,152 Water 417,645 — — 33,208 — 450,853 Total $ 1,307,570 $ 1,838,137 $ 1,117,383 $ 70,201 $ 29,132 $ 4,362,423 -44- NOTE 4—CAPITAL ASSETS Capital asset activity for the year ended December 31,2020 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 Total capital assets,not depreciated 1,749,824 — — — 1,749,824 Capital assets,depreciated Buildings 21,339,531 — — — 21,339,531 Improvements other than buildings 1,749,812 96,370 — — 1,846,182 Machinery and equipment 6,742,731 929,331 (285,292) 111,408 7,498,178 Infrastructure 58,503,368 260,473 — — 58,763,841 Total capital assets,depreciated 88,335,442 1,286,174 (285,292) 111,408 89,447,732 Less accumulated depreciation on Buildings 6,735,145 436,587 — — 7,171,732 Improvements other than buildings 1,380,130 57,766 — — 1,437,896 Machinery and equipment 4,686,009 404,620 (283,481) 111,408 4,918,556 Infrastructure 29,671,505 1,315,818 — — 30,987,323 Total accumulated depreciation 42,472,789 2,214,791 (283,481) 111,408 44,515,507 Total capital assets,depreciated 45,862,653 (928,617) (1,811) — 44,932,225 Net capital assets $ 47,612,477 _L__228,6171 $ (1,811) $ — $ 46,682,049 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 $ 498,376 $ — $ — $ — $ 498,376 Capital assets,depreciated Buildings 5,185,996 104,141 — — 5,290,137 Improvements other than buildings 1,655,830 — — — 1,655,830 Machinery and equipment 3,433,556 300,340 (25,445) (111,408) 3,597,043 Collection/distribution systems 82,984,664 — — — 82,984,664 Total capital assets,depreciated 93,260,046 404,481 (25,445) (111,408) 93,527,674 Less accumulated depreciation on Buildings 3,340,555 205,692 — — 3,546,247 Improvements other than buildings 159,467 76,909 236,376 Machinery and equipment 2,384,962 210,625 (25,445) (111,408) 2,458,734 Collection/distribution systems 33,384,806 1,687,884 — — 35,072,690 Total accumulated depreciation 39,269,790 2,181,110 (25,445) (111,408) 41,314,047 Total capital assets,depreciated 53,990,256 (1,776,629) — — 52,213,627 Net capital assets $ 54,488,632 $ (1,776,629) $ — $ — $ 52,712,003 -45- NOTE 4—CAPITAL ASSETS(CONTINUED) C. Depreciation Expense by Function Depreciation expense was charged to the following functions: Governmental activities General government $ 180,115 Public safety 365,894 Public works 1,491,337 Parks and recreation 177,445 Total depreciation expense—governmental activities $ 2,214,791 Business-type activities Liquor operations $ 2,556 Sewer operations 645,288 Solid waste 101,194 Storm water 440,421 Water 991,651 Total depreciation expense—business-type activities $ 2,181,110 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 August 2020, the City again exercised its 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 2020, the City paid $109,375 in rent for the Downtown store and $39,360 for common area operating expenses. In March 2021, the City entered into a new lease agreement for the Downtown store for an approximately 7,400 square foot space in the Farmington Mall through July 2026. The agreement commenced May 1, 2021 and provides for monthly lease payments of$4,933 beginning in August 2021, increasing by 3 percent each May, and sharing of common expenses. The Downtown store will move to this space in July 2021 when the old City Center lease expires. 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 $72,956 in rent for the Pilot Knob store and$43,138 for common area operating expenses during 2020. The following is a schedule by year of future minimum payments required under these leases: Year Ending December 31, Amount 2021 $ 164,597 2022 130,168 2023 62,195 2024 64,061 2025 65,983 2026 38,868 $ 525,872 -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 $ 1,240,000 G.O.Street Reconstruction Bonds 2015A $ 3,050,000 2.00-3.00% 10/15/2015 02/01/2030 2,230,000 G.O.Improvement Refunding Bonds 2016A $ 3,450,000 2.00% 12/01/2016 02/01/2023 1,520,000 G.O.Street Reconstruction Bonds 2019A $ 925,000 5.00% 05/15/2019 02/01/2024 780,000 Total G.O.improvement bonds 5,770,000 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 General obligation equipment certificates G.O.Equipment Certificates of Indebtedness 2020A $ 1,105,000 5.00% 02/19/2020 02/01/2026 1,105,000 Total governmental activities bonds and certificates 11,415,000 Unamortized premiums 578,829 Compensated absences 1,085,744 Total governmental activities $13,079,573 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 $ 655,000 Unamortized premiums 80,944 Compensated absences 127,577 Total business-type activities $ 863,521 B. Changes in Long-Term Debt Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities G.O.improvement bonds $ 8,135,000 $ - $ 2,365,000 $ 5,770,000 $ 1,650,000 G.O.capital improvement bonds 5,085,000 - 545,000 4,540,000 505,000 G.O.equipment certificates - 1,105,000 - 1,105,000 - Unamortized bond premiums 532,060 174,300 127,531 578,829 - Compensated absences 972,240 662,277 548,773 1,085,744 814,308 Total governmental activities 14,724,300 1,941,577 3,586,304 13,079,573 2,969,308 Business-type activities G.O.revenue bonds 720,000 - 65,000 655,000 60,000 Unamortized bond premiums 90,856 - 9,912 80,944 - Compensated absences 107,576 64,486 44,485 127,577 95,683 Total business-type activities 918,432 64,486 119,397 863,521 155,683 Total government-wide $ 15,642,732 $ 2,006,063 $ 31705,701 $ 13,943,094 $ 3,124,991 -47- NOTE 6-LONG-TERM DEBT(CONTINUED) C. Minimum Debt Payments Minimum annual payments required to retire bonds and certificates are as follows: Governmental Activities Year Ending G.O.Improvement G.O.Capital Improvement G.O.Equipment Total December 31, Principal Interest Principal Interest Principal Interest Principal Interest 2021 $ 1,650,000 $ 132,550 $ 505,000 $ 116,275 $ - $ 80,113 $ 2,155,000 $ 328,938 2022 1,465,000 93,700 525,000 100,825 200,000 50,250 2,190,000 244,775 2023 870,000 62,275 545,000 84,775 210,000 40,000 1,625,000 187,050 2024 445,000 40,675 560,000 68,200 220,000 29,250 1,225,000 138,125 2025 240,000 29,500 575,000 51,175 230,000 18,000 1,045,000 98,675 2026-2030 1,100,000 62,913 1,830,000 58,475 245,000 6,125 3,175,000 127,513 Total $ 5,770,000 $ 421,613 $ 4,540,000 $ 479,725 $ 1,105,000 $ 223,738 $ 11,415,000 $ 1,125,076 Business-Type Activities Year Ending G.O.Revenue December 31, Principal Interest 2021 $ 60,000 $ 29,550 2022 65,000 26,425 2023 65,000 23,175 2024 70,000 19,800 2025 70,000 16,300 2026-2029 325,000 28,275 Total $ 655,000 $ 143,525 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, 2020, the City had not utilized $55,246,446 of its net legal debt margin. • General Obligation Equipment Certificates - The City issues general obligation equipment certificates of indebtedness in accordance with Minnesota Statutes § 412.301 to finance the purchase of equipment,which will be repaid primarily through ad valorem tax levies. • 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 $ 798,525 $ 104,916 $ 2,533,753 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 Fire Fighters' State-Wide PERA Pension Plans Relief Total GERF PEPFF Total Association All Plans Net pension asset $ — $ — $ — $ 1,144,081 $ 1,144,081 Deferred outflows of resources $ 514,764 $ 1,685,275 $ 2,200,039 $ 503,185 $ 2,703,224 Net pension liability $ 3,909,039 $ 3,176,637 $ 7,085,676 $ — $ 7,085,676 Deferred inflows of resources $ 154,419 $ 2,231,162 $ 2,385,581 $ 367,581 $ 2,753,162 Pension expense $ 282,331 $ 382,716 $ 665,047 $ 148,667 $ 813,714 -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(IRC). 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. 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 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 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. -50- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) 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 50.0 percent after five years, up to 100.0 percent after 10 years of credited service. Benefits for the PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50.0 percent after 10 years, up to 100.0 percent after 20 years of credited service. The annuity accrual rate is 3.0 percent of average salary for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Benefit increases are provided to benefit recipients each January. Beginning in 2019, the post-retirement increase will be fixed at 1.0 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 2020, and the City was required to contribute 7.50 percent for Coordinated Plan members. The City's contributions to the GERF for the year ended December 31, 2020, were $372,817. 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 11.30 percent of pay to 11.80 percent and employer rates increased from 16.95 percent to 17.70 percent on January 1, 2020. The City's contributions to the PEPFF for the year ended December 31, 2020, were $515,909. The City's contributions were equal to the required contributions as set by state statutes. D. Pension Costs 1. GERF Pension Costs At December 31, 2020, the City reported a liability of$3,909,039 for its proportionate share of the GERF's net pension liability. The City's net pension liability reflected a reduction, due to the state of Minnesota's contribution of $16.0 million. The state of Minnesota is considered a nonemployer contributing entity and the state's contribution meets the definition of a special funding situation. The net pension liability was measured as of June 30, 2020, 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, 2019 through June 30, 2020, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.0652 percent at the end of the measurement period and 0.0613 percent for the beginning of the period. -51- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) 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 $ 3,909,039 State's proportionate share of the net pension liability associated with the City $ 120,522 For the year ended December 31, 2020, the City recognized pension expense of$271,842 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $10,489 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota's contribution of$16.0 million to the GERF. At December 31, 2020,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 $ 33,495 $ 14,790 Changes in actuarial assumptions — 139,629 Differences between projected and actual investment earnings 91,815 — Changes in proportion 194,320 — Contributions paid to the PERA subsequent to the measurement date 195,134 — Total $ 514,764 $ 154,419 A total of$195,134 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, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2021 $ (120,697) 2022 $ 63,585 2023 $ 127,879 2024 $ 94,444 -52- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) 2. PEPFF Pension Costs At December 31, 2020, the City reported a liability of$3,176,637 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2020, 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, 2019 through June 30, 2020, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.2410 percent at the end of the measurement period and 0.2381 percent for the beginning of the period. The state of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2020. The contribution consisted of$4.5 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in fire state aid that does not meet the definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of each year, the state will pay $9.0 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9.0 million in fire state aid will continue until the fund is 90.0 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90.0 percent funded, whichever occurs later. As a result, the state of Minnesota is included as a nonemployer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the state of Minnesota's pension expense (and grant revenue) under GASB Statement No. 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2020, the City recognized pension expense of$359,690 for its proportionate share of the Police and Fire Plan's pension expense. In addition, the City recognized an additional $23,026 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota's contribution of$4.5 million to the Police and Fire Fund. 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 $ 3,176,637 State's proportionate share of the net pension liability associated with the City $ 74,843 The state of Minnesota is not included as a nonemployer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9.0 million in fire state aid. The City also recognized$21,690 for the year ended December 31,2020,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 Police and Fire Fund. -53- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) At December 31,2020,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 $ 138,391 $ 152,108 Changes in actuarial assumptions 1,073,388 1,947,749 Differences between projected and actual investment earnings 110,557 — Changes in proportion 83,318 131,305 Contributions paid to the PERA subsequent to the measurement date 279,621 — Total $ 1,685,275 $ 2,231,162 A total of$279,621 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, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2021 $ (234,067) 2022 $ (897,729) 2023 $ 141,717 2024 $ 157,189 2025 $ 7,382 E. Actuarial Assumptions The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: GERF PEPFF Inflation 2.25%per year 2.50%per year Active member payroll growth 3.00%per year 3.25%per year Investment rate of return 7.50% 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, 2020 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 assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for the PEPFF was completed in 2020. The recommended assumptions for those plans were adopted by the Board and will be effective with the July 1, 2021 actuarial valuations if approved by the State Legislature. -54- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) The following changes in actuarial assumptions and plan provisions occurred in 2020: 1. GERF CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five, and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study.The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the PUB-2010 General Mortality Table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the PUB-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments. • The mortality improvement scale was changed from MP-2018 to MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100.00 percent joint and survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the life annuity option was adjusted accordingly. CHANGES IN PLAN PROVISIONS • Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for privatizations occurring after June 30,2020. 2. PEPFF CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2018 to MP-2019. -55- 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 Return Domestic stocks 35.50 % 5.10 % International stocks 17.50 5.30 % Bonds(fixed income) 20.00 0.75 % Alternative assets(private markets) 25.00 5.90 % Cash 2.00 — % Total 100.00 % F. Discount Rate The discount rate used to measure the total pension liability in 2020 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 $ 6,264,832 $ 3,909,039 $ 1,965,697 City's proportionate share of the PEPFF net pension liability $ 6,331,497 $ 3,176,637 $ 566,545 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. -56- 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, 2019, the plan covered 49 active firefighters and 11 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 $160,789 in fire state aid to the plan on behalf of the Department for the year ended December 31, 2020, 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, 2020 were $0; however, the City made a voluntary contribution of $150,000 to the plan. D. Pension Costs At December 31, 2020, the City reported a net pension liability (asset) of($1,144,081) for the plan. The net pension liability (asset) was measured as of December 31, 2019. 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. -57- 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 1,2020 $ 1,891,118 $ 2,586,708 $ (695,590) Changes for the year Service cost 163,690 — 163,690 Interest 118,151 — 118,151 Changes of assumptions 61,961 — 61,961 Contributions(state and local) — 301,797 (301,797) Net investment income — 508,896 (508,896) Administrative costs — (18,400) 18,400 Total net changes 343,802 792,293 (448,491) Ending balance—December 31,2020 $ 2,234,920 $ 3,379,001 $ (1,144,081) For the year ended December 31, 2020, the City recognized pension revenue of$152,797 and pension expense of$148,667. At December 31,2020,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 $ — $ 21,206 Change of assumptions 192,396 10,338 Net difference between projected and actual earnings on plan investments — 175,248 City contributions subsequent to the measurement date 150,000 — State aid to the City subsequent to the measurement date 160,789 160,789 Total $ 503,185 $ 367,581 -58- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION (CONTINUED) Deferred outflows of resources totaling$310,789 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, 2021. Deferred inflows of resources totaling $160,789 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, 2021. 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 2021 $ (34,625) 2022 $ (25,846) 2023 $ 14,569 2024 $ (52,202) 2025 $ 19,286 Thereafter $ 64,422 E. Actuarial Assumptions The total pension liability at December 31,2019 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 the 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 5.25% 20-year municipal bond yield 2.75% The changes in actuarial assumptions since the prior valuation included: • The assumed investment return and single discount rate were changed from 5.75 percent to 5.25 percent. The 5.25 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. -59- 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 48.10 % 4.76 % 7.26 % International equity 12.53 5.41 % 7.91 % Fixed income 27.60 2.01 % 4.51 % Real estate and alternatives 0.92 4.53 % 7.03 % Cash and equivalents 10.85 0.74 % 3.24 % Total 100.00 % 5.25 % F. Discount Rate The discount rate used to measure the total pension liability was 5.25 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 in Current 1%Increase in Discount Rate Discount Rate Discount Rate (4.25%) (5.25%) (6.25%) Net pension liability(asset) $ (1,014,870) $ (1,144,081) $ (1,266,257) 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. -60- 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$45,998. 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 69 Total members 75 E. Total OPEB Liability of the City The City's total OPEB liability of$886,031 as of year-end was measured as of December 31, 2019, and was determined by an actuarial valuation as of January 1, 2019. -61- 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 2.74% 20-year municipal bond yield 2.74% Inflation rate 2.00% Salary increases 3.25% Healthcare trend rate 7.67%grading to 5.00%over 8 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 2.74 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 4.09 percent. Mortality rates were based on the RP-2014 Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2018 from a base year of 2014 (using projection scale MP-2018 from a base year of 2014 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). The assumed inflation rate was changed from 2.50 percent to 2.00 percent since the prior valuation. G. Changes in the Total OPEB Liability Total OPEB Liability Beginning balance—January 1,2020 $ 1,140,790 Changes for the year Service cost 74,564 Interest 49,025 Differences between expected and actual experience (424,559) Changes of assumptions 79,584 Benefit payments—employer-financed (33,373) Total net changes (254,759) Ending balance—December 31,2020 $ 886,031 -62- 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: 1%Decrease in I%Increase in Discount Rate Discount Rate Discount Rate OPEB discount rate 1.74% 2.74% 3.74% Total OPEB liability $ 946,891 $ 886,031 $ 826,677 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 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 6.67%decreasing to 7.67%decreasing to 8.67%decreasing to 4.00%over 8 years 5.00%over 8 years 6.00%over 8 years Total OPEB liability $ 782,320 $ 886,031 $ 1,009,203 I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources For the current year, the City recognized OPEB expense of$81,127. As of year-end, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual experience $ — $ 376,134 Changes of assumptions 89,653 44,763 Contributions subsequent to the measurement date 45,998 — $ 135,651 $ 420,897 Deferred outflows of resources reported $45,998 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, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending OPEB Expense December 31, Amount 2021 $ (42,463) 2022 $ (42,463) 2023 $ (42,463) 2024 $ (42,463) 2025 $ (42,463) Thereafter $ (118,929) -63- NOTE 11-FUND BALANCES A. Classifications At December 31,2020,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 $ 50,351 $ - $ - $ - $ - $ - $ - $ 1,184,677 $ 1,235,028 Loan 90,845 90,845 Total nonspendable 141,196 - - - - - - 1,184,677 1,325,873 Restricted Debt service - 2,677,368 - - - - - - 2,677,368 Park improvements - - - - - - - 249,530 249,530 Police programs - - - - - - - 62,545 62,545 PEG fees - - - - - - - 185,017 185,017 Recreational capital projects - - - - - - - 22,840 22,840 Fire capital equipment - - - - - - - 38,417 38,417 Total restricted - 2,677,368 - - - - - 558,349 3,235,717 Committed Street construction - - 130,936 - - - - - 130,936 Storm water trunk - - - 3,604,416 - - - - 3,604,416 Improvement projects - - - - 179,782 - 112,218 163,670 455,670 Park improvements - - - - - - - 262,675 262,675 Ice arena capital - - - - - - - 64,803 64,803 Sanitary sewer trunk - - - - - - - 532,177 532,177 Cable communications - - - - - - - 824,413 824,413 Fire capital programs - - - - - - - 145,291 145,291 Pavement management - - - - - 1,660,550 - - 1,660,550 Capital equipment - - - - - - - 746,674 746,674 Total committed - - 130,936 31604,416 179,782 1,660,550 112,218 2,739,703 8,427,605 Unassigned 6,060,870 - - - - - - 6,060,870 Total $ 6,202,066 $ 2,677,368 $ 130,936 $ 3,604,416 $ 179,782 $ 1,660,550 $ 112,218 $ 4,482,729 $19,050,065 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, 2020, the unassigned fund balance of the General Fund was 43.8 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 2020. 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, 2020 of $90,845 is reported as a loan receivable in the City's General Fund. -64- 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. COVID-19 The COVID-19 pandemic has caused economic and financial market volatility in the United States and around the world,along with significant business and operational disruptions for many organizations. Due to the unknown breadth and duration of this pandemic, any potential impact it may have on the City's future operations and financial condition cannot be determined at this time and has not been reflected in these financial statements. 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$121,281 of property tax increment in the current year. The remaining principal balance as of December 31, 2020 for this agreement was $1,321,650. 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. -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 31,2020 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% 12/31/2020 06/30/2020 0.0652% $ 3,909,039 $ 120,522 $ 4,029,561 $ 4,647,499 84.11% 79.10% PERA—General Employees Retirement Fund Schedule of City Contributions Year Ended December 31,2020 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% 12/31/2020 $ 372,817 $ 372,817 $ — $ 4,970,884 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 and Nonemployer Proportionate Share of Net Pension Liability Year Ended December 31,2020 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 0.2450% $ 2,783,773 $ — $ 2,783,773 $ 2,242,616 124.13% 86.60% 12/31/2016 06/30/2016 0.2430% $ 9,752,013 $ — $ 9,752,013 $ 2,344,593 415.94% 63.90% 12/31/2017 06/30/2017 0.2370% $ 3,199,781 $ — $ 3,199,781 $ 2,431,157 131.62% 85.40% 12/31/2018 06/30/2018 0.2300% $ 2,451,563 $ — $ 2,451,563 $ 2,424,781 101.10% 88.80% 12/31/2019 06/30/2019 0.2381% $ 2,534,816 $ — $ 2,534,816 $ 2,513,262 100.86% 89.30% 12/31/2020 06/30/2020 0.2410% $ 3,176,637 $ 74,843 $ 3,251,480 $ 2,720,577 116.76% 87.20% PERA—Public Employees Police and Fire Fund Schedule of City Contributions Year Ended December 31,2020 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% 12/31/2020 $ 515,909 $ 515,909 $ — $ 2,914,733 17.70% 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 2020 Farmington Fire Fighters'Relief Association year-end dated(measurement date)December 31, 2014 2015 2016 2017 2018 2019 Total pension liability Service cost $ 69,285 $ 71,190 $ 86,788 $ 93,501 $ 112,754 $ 163,690 Interest 110,249 92,788 82,702 95,308 105,418 118,151 Differences between expected and actual experience - - (14,504) - (13,870) - Changes of assumptions - 116,780 (15,678) - 86,336 61,961 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 68,639 303,664 343,802 Total pension liability Beginning of year 1,638,527 1,552,418 1,237,039 1,518,815 1,587,454 1,891,118 End of year $ 1,552,418 $ 1,237,039 $ 1,518,815 $ 1,587,454 $ 1,891,118 $ 2,234,920 Plan fiduciary net position Contributions(state and local) $ 283,461 $ 291,915 $ 291,510 $ 301,508 $ 297,548 $ 301,797 Net investment income 84,277 (33,543) 163,457 342,985 (168,667) 508,896 Benefit payments (265,643) (596,137) (1,194) (292,064) (156,771) - Administrative costs (10,848) (15,756) (17,200) (18,282) (16,720) (18,400) Net change in plan fiduciary net position 91,247 (353,521) 436,573 334,147 (44,610) 792,293 Plan fiduciary net position Beginning of year 2,122,872 2,214,119 1,860,598 2,297,171 2,631,318 2,586,708 End of year $ 2,214,119 $ 1,860,598 $ 2,297,171 $ 2,631,318 $ 2,586,708 $ 3,379,001 Net pension liability(asset)-ending $ (661,701) _$_(623,559) _L_(778,356) $(1,043,864) _L 695,590) $(1,144,081) Plan fiduciary net position as a percentage of the total pension liability 142.62% 150,41% 151.25% 165.76% 136.78% 151.19% 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 FARMINGTON 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 12/31/2020 $ — $ — $ — $ 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 Fiscal Year 2018 2019 2020 Total OPEB liability Service cost $ 113,275 $ 85,451 $ 74,564 Interest 40,190 40,509 49,025 Differences between expected and actual experience — — (424,559) Changes of assumptions 28,356 (57,133) 79,584 Benefit payments (38,891) (40,361) (33,373) Net change in total OPEB liability 142,930 28,466 (254,759) Total OPEB liability—beginning of year 969,394 1,112,324 1,140,790 TotalOPEBliability—end of year $ 1,112,324 $ 1,140,790 $ 886,031 Covered payroll $ 5,800,000 $ 6,000,000 $ 7,300,000 Total OPEB liability as a percentage of covered payroll 19.18% 19.01% 12.14% 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, 2020 PERA—GENERAL EMPLOYEES RETIREMENT FUND 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30,2019 experience study.The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five, and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study.The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 General Mortality Table,with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the Pub-2010 General/Teacher Disabled Annuitant Mortality Table,with adjustments. • The mortality improvement scale was changed from MP-2018 to MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100.00 percent joint and survivor option changed from 35.00 percent to 45.00 percent.The assumed number of married female new retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to 30.00 percent.The corresponding number of married new retirees electing the life annuity option was adjusted accordingly. 2020 CHANGES IN PLAN PROVISIONS • Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for privatizations occurring after June 30,2020. -71- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2020 PERA—GENERAL EMPLOYEES RETIREMENT FUND(CONTINUED) 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. -72- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2020 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. 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, 2020 PERA—PUBLIC EMPLOYEES POLICE AND FIRE FUND 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2018 to MP-2019. 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, 2020 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, 2020 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, 2020 FARMINGTON FIRE FIGHTERS' RELIEF ASSOCIATION 2020 CHANGES IN ACTUARIAL ASSUMPTIONS The actuarial assumptions for investment rate of return and the single discount rate both changed from 5.75 percent to 5.25 percent. 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 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. 2017 CHANGES IN PLAN PROVISIONS • The plan benefit level increased from $4,575 to$5,500 per year of service. 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. -77- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2020 OTHER POST-EMPLOYMENT BENEFITS PLAN 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The actuarial assumptions for the single discount rate changed from 4.09 percent to 2.74 percent. • The assumed inflation rate changed from 2.50 percent to 2.00 percent. 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. -78- 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. -79- CITY OF FARMINGTON Nonmajor Governmental Funds Combining Balance Sheet as of December 31,2020 Special Capital Revenue Projects Total Assets Cash and investments $ 633,474 $ 2,641,152 $ 3,274,626 Receivables Accounts 12,490 62,582 75,072 Interest 943 4,658 5,601 Prepaid items — 1,184,677 1,184,677 Total assets $ 646,907 $ 3,893,069 $ 4,539,976 Liabilities Accounts and contracts payable $ 2,057 $ 49,893 $ 51,950 Deposits payable 5,181 — 5,181 Due to other governments 116 — 116 Total liabilities 7,354 49,893 57,247 Fund balances Nonspendable — 1,184,677 1,184,677 Restricted 312,075 246,274 558,349 Committed 327,478 2,412,225 2,739,703 Total fund balances 639,553 3,843,176 4,482,729 Total liabilities and fund balances $ 646,907 $ 3,893,069 $ 4,539,976 -80- CITY OF FARMINGTON Nonmajor Governmental Funds Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Year Ended December 31,2020 Special Capital Revenue Projects Total Revenue Franchise taxes $ - $ 124,839 $ 124,839 Intergovernmental 236,900 - 236,900 Charges for services 288,836 88,281 377,117 Investment earnings 10,598 56,964 67,562 Other Donations 37,849 58,830 96,679 Rentals 8,245 - 8,245 Miscellaneous 15,156 - 15,156 Total revenues 597,584 328,914 926,498 Expenditures Current General government - 107,649 107,649 Public safety 11,201 4,742 15,943 Parks and recreation 374,882 14,433 389,315 Economic development 236,900 - 236,900 Capital outlay General government - 14,789 14,789 Public safety - 913,050 913,050 Parks and recreation 7,088 86,758 93,846 Total expenditures 630,071 1,141,421 1,771,492 Excess(deficiency)of revenues over expenditures (32,487) (812,507) (844,994) Other financing sources Issuance of debt - 1,105,000 1,105,000 Premium on debt issuance - 90,091 90,091 Sale of capital assets 4,487 8,380 12,867 Transfers in 282,838 834,545 1,117,383 Total other financing sources 287,325 2,038,016 2,325,341 Net change in fund balances 254,838 1,225,509 1,480,347 Fund balances Beginning of year 384,715 2,617,667 3,002,382 End of year $ 639,553 $ 3,843,176 $ 4,482,729 -81- 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. Police Public Outreach — Used to account for the operations and activities related to police public outreach programs to foster positive relationships between the police department and the community. K-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(Iced—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. Federal Aid—Used to account for the operations and activities related to the federal funding awarded during the COVID-19 pandemic. -82- CITY OF FARMINGTON Nonmajor Special Revenue Funds Combining Balance Sheet as of December 31,2020 Police Police Donations Public and Forfeitures Outreach K-9 Assets Cash and investments $ 6,780 $ 32,798 $ 22,936 Receivables Accounts — — — Interest 15 — 16 Total assets $ 6,795 $ 32,798 $ 22,952 Liabilities Accounts and contracts payable $ — $ — $ — Deposits payable — — — Due to other governments — — — Total liabilities — — — Fund balances Restricted for police programs 6,795 32,798 22,952 Restricted for park improvements — — — Committed for park improvements — — — Committed for ice arena capital — — — Total fund balances 6,795 32,798 22,952 Total liabilities and fund balances $ 6,795 $ 32,798 $ 22,952 -83- Park Federal Improvement Arena Aid Total $ 511,351 $ 59,609 $ — $ 633,474 — 12,490 — 12,490 854 58 — 943 $ 512,205 $ 72,157 $ — $ 646,907 $ — $ 2,057 $ — $ 2,057 5,181 — 5,181 116 — 116 7,354 — 7,354 — — 62,545 249,530 — — 249,530 262,675 — — 262,675 — 64,803 — 64,803 512,205 64,803 — 639,553 $ 512,205 $ 72,157 $ — $ 646,907 -84- CITY OF FARMINGTON Nonmajor Special Revenue Funds Combining Statement of Revenues,Expenditures, and Changes in Fund Balances Year Ended December 31,2020 Police Police Donations Public and Forfeitures Outreach K-9 Revenues Intergovernmental $ — $ — $ — Charges for services — — — Investment earnings 195 — 223 Other Donations — 32,798 51 Rentals — — — Miscellaneous — — — Total revenues 195 32,798 274 Expenditures Current Public safety 5,784 — 5,417 Parks and recreation — — — Economic development — — — Capital outlay Parks and recreation — — — Total expenditures 5,784 — 5,417 Excess(deficiency)of revenues over expenditures (5,589) 32,798 (5,143) Other financing sources Sale of capital assets 4,487 — — Transfers in — — 15,600 Total other financing sources 4,487 — 15,600 Net change in fund balances (1,102) 32,798 10,457 Fund balances Beginning of year 7,897 — 12,495 End of year $ 6,795 $ 32,798 $ 22,952 -85- Park Federal Improvement Arena Aid Total $ - $ - $ 236,900 $ 236,900 - 288,836 - 288,836 9,326 854 - 10,598 - 5,000 - 37,849 8,245 - - 8,245 15,156 - - 15,156 32,727 294,690 236,900 597,584 - - - 11,201 11,374 363,508 - 374,882 - - 236,900 236,900 1,037 6,051 - 7,088 12,411 369,559 236,900 630,071 20,316 (74,869) - (32,487) - - - 4,487 197,238 70,000 - 282,838 197,238 70,000 - 287,325 217,554 (4,869) - 254,838 294,651 69,672 - 384,715 $ 512,205 $ 64,803 $ - $ 639,553 -86- 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. -87- CITY OF FARMINGTON Nonmajor Capital Projects Funds Combining Balance Sheet as of December 31,2020 Sanitary Sewer Cable Trunk Communications Fire Assets Cash and investments $ 531,012 $ 959,532 $ 183,389 Receivables Accounts — 62,582 — Interest 1,165 2,105 319 Prepaid items — — 1,156,674 Total assets $ 532,177 $ 1,024,219 $ 1,340,382 Liabilities Accounts and contracts payable $ — $ 14,789 $ — Fund balances Nonspendable — — 1,156,674 Restricted for public,educational,and governmental fees — 185,017 — Restricted for recreational capital projects — — — Restricted for fire capital equipment — — 38,417 Committed for sanitary sewer trunk 532,177 — — Committed for cable communications — 824,413 — Committed for fire capital programs — — 145,291 Committed for improvement projects — — — Committed for capital equipment — — — Total fund balances 532,177 1,009,430 1,340,382 Total liabilities and fund balances $ 532,177 $ 1,024,219 $ 1,340,382 -88- General Capital Recreation Equipment Total $ 195,581 $ 771,638 $ 2,641,152 — — 62,582 429 640 4,658 28,003 — 1,184,677 $ 224,013 $ 772,278 $ 3,893,069 $ 9,500 $ 25,604 $ 49,893 28,003 — 1,184,677 — — 185,017 22,840 — 22,840 — — 38,417 — — 532,177 — — 824,413 — — 145,291 163,670 — 163,670 — 746,674 746,674 214,513 746,674 3,843,176 $ 224,013 $ 772,278 $ 3,893,069 -89- CITY OF FARMINGTON Nonmajor Capital Projects Funds Combining Statement of Revenues,Expenditures, and Changes in Fund Balances Year Ended December 31,2020 Sanitary Sewer Cable Trunk Communications Fire Revenues Franchise taxes $ — $ 124,839 $ — Charges for services 88,281 — — Investment earnings 12,791 24,490 3,125 Other Donations — — 50,100 Total revenues 101,072 149,329 53,225 Expenditures Current General government — 107,649 — Public safety — — 3,399 Parks and recreation — — — Capital outlay General government — 14,789 — Public safety — — 53,846 Parks and recreation — — — Total expenditures — 122,438 57,245 Excess(deficiency)of revenues over expenditures 101,072 26,891 (4,020) Other financing sources Issuance of debt — — 1,105,000 Premium on debt issuance — — 90,091 Sale of capital assets — — — Transfers in — — — Total other financing sources — — 1,195,091 Net change in fund balances 101,072 26,891 1,191,071 Fund balances Beginning of year 431,105 982,539 149,311 End of year $ 532,177 $ 1,009,430 $ 1,340,382 -90- General Capital Recreation Equipment Total $ - $ - $ 124,839 88,281 3,839 12,719 56,964 8,730 - 58,830 12,569 12,719 328,914 - - 107,649 - 1,343 4,742 14,433 - 14,433 - - 14,789 - 859,204 913,050 86,758 - 86,758 101,191 860,547 1,141,421 (88,622) (847,828) (812,507) 1,105,000 - 90,091 - 8,380 8,380 210,000 624,545 834,545 210,000 632,925 2,038,016 121,378 (214,903) 1,225,509 93,135 961,577 2,617,667 $ 214,513 $ 746,674 $ 3,843,176 -91- 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. 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. 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 Proj ects. 2013B General Oblijzation 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 RefundingBonds onds—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—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. 2020A General Obligation Equipment Certificates—The certificates were issued to fund the purchase of a ladder truck. -92- CITY OF FARMINGTON Debt Service Fund Combining Balance Sheet by Account as of December 31,2020 2010A G.O. 2010D G.O. 2013A G.O. 2013B G.O. 2015A G.O. Improvement Equipment Improvement Street Street Refunding Certificate Refunding Construction Construction Bonds Bonds Bonds Bonds Bonds Assets Cash and investments $ 59,734 $ — $ 840,992 $ 369 $ 393,294 Receivables Interest 16 — 1,845 45 863 Special assessments Delinquent — — 152 — — Noncurrent — — 142,749 — — Total assets $ 59,750 $ — $ 985,738 $ 414 $ 394,157 Liabilities Accounts and contracts payable $ — $ — $ 415 $ 414 $ 414 Due to other funds 288,921 — — — — Advances from other funds — — — — — Total liabilities 288,921 — 415 414 414 Deferred inflows of resources Unavailable revenue— special assessments — — 142,901 Fund balances(deficits) Restricted for debt service (229,171) — 842,422 — 393,743 Total liabilities,deferred inflows of resources,and fund balances $ 59,750 $ — $ 985,738 $ 414 $ 394,157 -93- 2016B G.O. 2016C G.O. 2016A G.O. Capital Capital 2019A G.O. Improvement Improvement Improvement Street 2020A G.O. Refunding Refunding Refunding Construction Equipment Bonds Bonds Bonds Bonds Certificates Total $ 1,052,419 $ 629,721 $ 344 $ 230,500 $ 54,543 $ 3,261,916 2,308 1,381 71 540 204 7,273 1,605 — — — — 1,757 764,454 — — 907,203 $ 1,820,786 $ 631,102 $ 415 $ 231,040 $ 54,747 $ 4,178,149 $ 414 $ 414 $ 415 $ 414 $ — $ 2,900 — — 288,921 300,000 — — — — 300,000 300,414 414 415 414 — 591,821 766,059 — — — — 908,960 754,313 630,688 — 230,626 54,747 2,677,368 $ 1,820,786 $ 631,102 $ 415 $ 231,040 $ 54,747 $ 4,178,149 -94- CITY OF FARMINGTON Debt Service Fund Combining Schedule of Revenues,Expenditures, and Changes in Fund Balances by Account Year Ended December 31,2020 2010A G.O. 2010D G.O. 2013A G.O. 2013B G.O. 2015A G.O. Improvement Equipment Improvement Street Street Refunding Certificate Refunding Construction Construction Bonds Bonds Bonds Bonds Bonds Revenues Property taxes $ 400,000 $ 16,437 $ 669,000 $ - $ 307,000 Special assessments - - 41,105 Investment earnings 1,725 14 14,665 539 7,348 Total revenues 401,725 16,451 724,770 539 314,348 Expenditures Debt service Principal - - 715,000 410,000 215,000 Interest and fiscal charges 10,209 146 33,894 6,413 63,739 Total expenditures 10,209 146 748,894 416,413 278,739 Excess(deficiency)of revenues over expenditures 391,516 16,305 (24,124) (415,874) 35,609 Other financing sources(uses) Premium on debt issuance - - - - - Transfers in 52,232 - - - - Transfers out - (142) - (20,280) - Total other financing sources(uses) 52,232 (142) - (20,280) - Net change in fund balances 443,748 16,163 (24,124) (436,154) 35,609 Fund balances(deficits) Beginning of year (672,919) (16,163) 866,546 436,154 358,134 End of year $ (229,171) $ - $ 842,422 $ - $ 393,743 -95- 2016B G.O. 2016C G.O. 2016A G.O. Capital Capital 2019A G.O. Improvement Improvement Improvement Street 2020A G.O. Refunding Refunding Refunding Construction Equipment Intra-Account Bonds Bonds Bonds Bonds Certificates Eliminations Total $ 352,000 $ 665,000 $ - $ 229,950 $ - $ - $ 2,639,387 363,312 - - - - - 404,417 19,611 10,143 827 4,027 2,260 - 61,159 734,923 675,143 827 233,977 2,260 - 3,104,963 880,000 - 545,000 145,000 - - 2,910,000 47,973 124,714 6,314 53,303 31,722 - 378,427 927,973 124,714 551,314 198,303 31,722 - 3,288,427 (193,050) 550,429 (550,487) 35,674 (29,462) - (183,464) - - - 84,209 - 84,209 - (52,232) - (31,810) - - 52,232 - - (31,810) - 84,209 - 84,209 (193,050) 550,429 (582,297) 35,674 54,747 - (99,255) 947,363 80,259 582,297 194,952 2,776,623 $ 754,313 $ 630,688 $ - $ 230,626 $ 54,747 $ - $ 2,677,368 -96- 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 Revolving Capital 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 -97- CITY OF FARMINGTON Debt Service Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 2,639,387 $ 2,639,387 $ — Special assessments 369,027 404,417 35,390 Investment earnings 13,900 61,159 47,259 Total revenues 3,022,314 3,104,963 82,649 Expenditures Debt service Principal 2,975,000 2,910,000 (65,000) Interest and fiscal charges 423,076 378,427 (44,649) Total expenditures 3,398,076 3,288,427 (109,649) Excess(deficiency)of revenues over expenditures (375,762) (183,464) 192,298 Other financing sources(uses) Issuance of debt 1,285,000 — (1,285,000) Premium on debt issuance — 84,209 84,209 Transfers in 89,392 — (89,392) Transfers out (1,623,337) — 1,623,337 Total other financing sources(uses) (248,945) 84,209 333,154 Net change in fund balances $ (624,707) (99,255) $ 525,452 Fund balances Beginning of year 2,776,623 End of year $ 2,677,368 -98- CITY OF FARMINGTON State Aid Construction Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 1,700 $ 3,358 $ 1,658 Net change in fund balances $ 1,700 3,358 $ 1,658 Fund balances Beginning of year 127,578 End of year $ 130,936 -99- CITY OF FARMINGTON Storm Water Trunk Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 166,000 $ 166,000 $ — Charges for service — 79,043 79,043 Investment earnings 8,600 111,359 102,759 Total revenues 174,600 356,402 181,802 Expenditures Current Public works — 80,323 80,323 Debt service Interest and fiscal charges — 18,804 18,804 Total expenditures — 99,127 99,127 Excess of revenues over expenditures 174,600 257,275 82,675 Other financing sources(uses) Transfers in 423,337 — (423,337) Transfers out — (122,238) (122,238) Total other financing sources(uses) 423,337 (122,238) (545,575) Net change in fund balances $ 597,937 135,037 $ (462,900) Fund balances Beginning of year 3,469,379 End of year $ 3,604,416 -100- CITY OF FARMINGTON Permanent Improvement Revolving Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Special assessments $ — $ 263 $ 263 Investment earnings 1,400 4,607 3,207 Total revenues 1,400 4,870 3,470 Net change in fund balances $ 1,400 4,870 $ 3,470 Fund balances Beginning of year 174,912 End of year $ 179,782 -101- CITY OF FARMINGTON Maintenance Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Intergovernmental $ — $ 450,365 $ 450,365 Charges for service — 14,487 14,487 Investment earnings 13,600 30,821 17,221 Other — 1,140 1,140 Total revenues 13,600 496,813 483,213 Expenditures Current Public works 890,227 234,705 (655,522) Parks and recreation 112,880 34,935 (77,945) Capital outlay Public works 150,000 1,271,869 1,121,869 Total expenditures 1,153,107 1,541,509 388,402 Excess(deficiency)of revenues over expenditures (1,139,507) (1,044,696) 94,811 Other financing sources Transfers in 726,640 1,838,137 1,111,497 Net change in fund balances $ (412,867) 793,441 $ 1,206,308 Fund balances Beginning of year 867,109 End of year $ 1,660,550 -102- CITY OF FARMINGTON Private Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Special assessments $ — $ 1,373 $ 1,373 Investment earnings 4,300 34,806 30,506 Total revenues 4,300 36,179 31,879 Expenditures Current General government — 295 295 Net change in fund balances $ 4,300 35,884 $ 31,584 Fund balances Beginning of year 76,334 End of year $ 112,218 -103- CITY OF FARMINGTON Police Donations and Forfeitures Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 100 $ 195 $ 95 Expenditures Current Public safety 3,100 5,784 2,684 Excess(deficiency)of revenues over expenditures (3,000) (5,589) (2,589) Other financing sources Sale of capital assets 1,200 4,487 3,287 Net change in fund balances $ (1,800) (1,102) $ 698 Fund balances Beginning of year 7,897 End of year $ 6,795 -104- CITY OF FARMINGTON Park Improvement Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 3,500 $ 9,326 $ 5,826 Other Rentals 8,245 8,245 — Miscellaneous 25,000 15,156 (9,844) Total revenues 36,745 32,727 (4,018) Expenditures Current Parks and recreation 36,000 11,374 (24,626) Capital outlay Parks and recreation 3,000 1,037 (1,963) Total expenditures 39,000 12,411 (26,589) Excess(deficiency)of revenues over expenditures (2,255) 20,316 22,571 Other financing sources Transfers in 75,000 197,238 122,238 Net change in fund balances $ 72,745 217,554 $ 144,809 Fund balances Beginning of year 294,651 End of year $ 512,205 -105- CITY OF FARMINGTON Arena Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Charges for services $ 358,700 $ 288,836 $ (69,864) Investment earnings 500 854 354 Other Donations 5,000 5,000 — Rentals 3,000 — (3,000) Miscellaneous 1,000 — (1,000) Total revenues 368,200 294,690 (73,510) Expenditures Current Parks and recreation 368,200 363,508 (4,692) Capital outlay Parks and recreation — 6,051 6,051 Total expenditures 368,200 369,559 1,359 Excess(deficiency)of revenues over expenditures — (74,869) (74,869) Other financing sources Transfers in — 70,000 70,000 Net change in fund balances $ — (4,869) $ (4,869) Fund balances Beginning of year 69,672 End of year $ 64,803 -106- CITY OF FARMINGTON Sanitary Sewer Trunk Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Charges for services $ 30,240 $ 88,281 $ 58,041 Investment earnings 3,300 12,791 9,491 Total revenues 33,540 101,072 67,532 Net change in fund balances $ 33,540 101,072 $ 67,532 Fund balances Beginning of year 431,105 End of year $ 532,177 -107- CITY OF FARMINGTON Cable Communications Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Franchise taxes $ 140,000 $ 124,839 $ (15,161) Investment earnings 6,500 24,490 17,990 Total revenues 146,500 149,329 2,829 Expenditures Current General government 96,000 107,649 11,649 Capital outlay General government 30,000 14,789 (15,211) Total expenditures 126,000 122,438 (3,562) Net change in fund balances $ 20,500 26,891 $ 6,391 Fund balances Beginning of year 982,539 End of year $ 1,009,430 -108- CITY OF FARMINGTON Fire Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ — $ 3,125 $ 3,125 Other Donations — 50,100 50,100 Total revenues — 53,225 53,225 Expenditures Current Public safety — 3,399 3,399 Capital outlay Public safety 1,200,000 53,846 (1,146,154) Total expenditures 1,200,000 57,245 (1,142,755) Excess(deficiency)of revenues over expenditures (1,200,000) (4,020) 1,195,980 Other financing sources Issuance of debt — 1,105,000 1,105,000 Premium on debt issuance — 90,091 90,091 Transfers in 1,200,000 — (1,200,000) Total other financing sources 1,200,000 1,195,091 (4,909) Net change in fund balances $ — 1,191,071 $ 1,191,071 Fund balances Beginning of year 149,311 End of year $ 1,340,382 -109- CITY OF FARMINGTON Recreation Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 900 $ 3,839 $ 2,939 Other Donations 18,000 8,730 (9,270) Total revenues 18,900 12,569 (6,331) Expenditures Current Parks and recreation 3,600 14,433 10,833 Capital outlay Parks and recreation 6,000 86,758 80,758 Total expenditures 9,600 101,191 91,591 Excess(deficiency)of revenues over expenditures 9,300 (88,622) (97,922) Other financing sources Transfers in 10,000 210,000 200,000 Net change in fund balances $ 19,300 121,378 $ 102,078 Fund balances Beginning of year 93,135 End of year $ 214,513 -110- CITY OF FARMINGTON General Capital Equipment Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2020 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 2,500 $ 12,719 $ 10,219 Expenditures Current Public safety 181,596 1,343 (180,253) Capital outlay Public safety 546,660 859,204 312,544 Total expenditures 728,256 860,547 132,291 Excess(deficiency)of revenues over expenditures (725,756) (847,828) (122,072) Other financing sources Sale of capital assets — 8,380 8,380 Transfers in 142,545 624,545 482,000 Total other financing sources 142,545 632,925 490,380 Net change in fund balances $ (583,211) (214,903) $ 368,308 Fund balances Beginning of year 961,577 End of year $ 746,674 -111- THIS PAGE INTENTIONALLY LEFT BLANK INTERNAL SERVICE FUNDS Employee ense — Used to account for the costs of employer-paid benefits, including pension, Social Security,health, life and dental insurance, and workers' compensation insurance. Property 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. -112- CITY OF FARMINGTON Internal Service Funds Combining Statement of Net Position as of December 31,2020 Property Employee and Liability Information Expense Insurance Fleet Technology Total Assets Current assets Cash and investments $ 1,559,760 $ 470,967 $ 210,430 $ 723,867 $ 2,965,024 Receivables Interest 3,421 1,033 462 1,562 6,478 Prepaid items - - - 6,262 6,262 Total current assets 1,563,181 472,000 210,892 731,691 2,977,764 Noncurrent assets Capital assets Machinery and equipment - - 93,624 - 93,624 Less accumulated depreciation - - (82,638) - (82,638) Total capital assets - - 10,986 - 10,986 Total assets $ 1,563,181 $ 472,000 $ 221,878 $ 731,691 $ 2,988,750 Current liabilities Accounts and contracts payable $ 135,858 $ - $ 17,823 $ 7,160 $ 160,841 Accrued salaries and employee benefits payable 171,885 - 171,885 Deposits payable 3,687 - - - 3,687 Compensated absences payable - - 24,987 9,847 34,834 Total current liabilities 311,430 - 42,810 17,007 371,247 Net position Investment in capital assets 10,986 - 10,986 Unrestricted 1,251,751 472,000 168,082 714,684 2,606,517 Total net position 1,251,751 472,000 179,068 714,684 2,617,503 Total liabilities and net position $ 1,563,181 $ 472,000 $ 221,878 $ 731,691 $ 2,988,750 -113- CITY OF FARMINGTON Internal Service Funds Combining Statement of Revenues,Expenses, and Changes in Fund Net Position Year Ended December 31,2020 Property Employee and Liability Information Expense Insurance Fleet Technology Total Operating revenues Charges for services $ 2,632,263 $ - $ 297,930 $ 599,469 $ 3,529,662 Insurance reimbursement - 282,524 - - 282,524 Total operating revenues 2,632,263 282,524 297,930 599,469 3,812,186 Operating expenses Personal services 2,558,275 - 212,013 204,949 2,975,237 Professional services 58 - 30,799 345,258 376,115 Materials and supplies - - 61,773 116,044 177,817 Insurance - 263,299 - - 263,299 Depreciation - - 7,364 - 7,364 Total operating expenses 2,558,333 263,299 311,949 666,251 3,799,832 Operating income(loss) 73,930 19,225 (14,019) (66,782) 12,354 Nonoperating revenue Intergovernmental 1,190 - - 210,552 211,742 Investment earnings 38,548 11,100 5,390 16,012 71,050 Gain on sale of capital assets 5,118 5,118 Total nonoperating revenue 39,738 11,100 5,390 231,682 287,910 Income(loss)before transfers 113,668 30,325 (8,629) 164,900 300,264 Transfers in 13,022 6,110 - 10,000 29,132 Change in net position 126,690 36,435 (8,629) 174,900 329,396 Net position Beginning of year 1,125,061 435,565 187,697 539,784 2,288,107 End of year $ 1,251,751 $ 472,000 $ 179,068 $ 714,684 $ 2,617,503 -114- CITY OF FARMINGTON Internal Service Funds Combining Statement of Cash Flows Year Ended December 31,2020 Property Employee and Liability Information Expense Insurance Fleet Technology Total Cash flows from operating activities Cash receipts from other funds and reimbursements $ 2,639,312 $ 282,524 $ 297,930 $ 599,469 $ 3,819,235 Cash payments to employees for services (2,810,708) - (208,281) (197,594) (3,216,583) Cash payments for interfund services used (58) (263,322) (83,444) (456,506) (803,330) Net cash flows from operating activities (171,454) 19,202 6,205 (54,631) (200,678) Cash flows from noncapital financing activities Intergovernmental 1,190 210,552 211,742 Transfers in 13,022 6,110 - 10,000 29,132 Net cash flows from noncapital financing activities 14,212 6,110 - 220,552 240,874 Cash flows from capital and related financing activities Proceeds from the disposal of capital assets - - - 5,118 5,118 Cash flows from investing activities Interest received and changes in fair value on investments 38,321 10,894 5,306 15,472 69,993 Net increase in cash and cash equivalents (118,921) 36,206 11,511 186,511 115,307 Cash and cash equivalents Beginning of year 1,678,681 434,761 198,919 537,356 2,849,717 End of year $ 1,559,760 $ 470,967 $ 210,430 $ 723,867 $ 2,965,024 Reconciliation of operating income(loss)to net cash flows from operating activities Operating income(loss) $ 73,930 $ 19,225 $ (14,019) $ (66,782) $ 12,354 Adjustments to reconcile operating income(loss) to net cash flows from operating activities Depreciation - - 7,364 - 7,364 Change in assets and liabilities Accounts receivable 4,102 - - - 4,102 Due from other governments 2,947 - - - 2,947 Prepaid items - - - 5,444 5,444 Accounts and contracts payable 41,299 (23) 9,128 (648) 49,756 Accrued salaries and employee benefits (295,855) - - - (295,855) Deposits payable 2,123 - - - 2,123 Compensated absences payable - - 3,732 7,355 11,087 Total adjustments (245,384) (23) 20,224 12,151 (213,032) Net cash flows from operating activities $ (171,454) $ 19,202 $ 6,205 $ (54,631) $ (200,678) -115- 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 EDA within the City. -116- CITY OF FARMINGTON Economic Development Authority (Discretely Presented Component Unit) Combining Balance Sheet as of December 31,2020 Economic Development Trident Housing Authority Tax Increment General Special Revenue Total Assets Cash and investments $ 238,561 $ 97,124 $ 335,685 Receivables Interest 523 213 736 Due from other governments 54,202 — 54,202 Total assets $ 293,286 $ 97,337 $ 390,623 Liabilities Accounts and contracts payable $ 62 $ 60,641 $ 60,703 Fund balances Assigned for economic development 293,224 36,696 329,920 Total liabilities and fund balances $ 293,286 $ 97,337 $ 390,623 -117- CITY OF FARMINGTON Economic Development Authority (Discretely Presented Component Unit) Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Year Ended December 31,2020 Economic Development Trident Housing Authority Tax Increment General Special Revenue Total Revenues Property taxes $ — $ 134,757 $ 134,757 Intergovernmental 209,469 — 209,469 Investment earnings 6,697 1,808 8,505 Total revenues 216,166 136,565 352,731 Expenditures Current Economic development 215,016 122,490 337,506 Net change in fund balances 1,150 14,075 15,225 Fund balances Beginning of year 292,074 22,621 314,695 End of year $ 293,224 $ 36,696 $ 329,920 -118- 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 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 Comprehensive Annual Financial Report for the relevant year. -119- CITY OF FARMINGTON Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 Governmental activities Net investment in capital assets $ 20,484,140 $ 21,263,670 $ 23,462,934 $ 23,383,175 Restricted 1,661,973 11,034,909 11,669,054 9,235,448 Unrestricted 14,963,297 11,131,928 9,628,139 13,150,789 Total governmental activities net position $ 37,109,410 $ 43,430,507 $ 44,760,127 $ 45,769,412 Business-type activities Net investment in capital assets $ 60,462,689 $ 58,728,008 $ 57,427,060 $ 55,685,476 Restricted 2,140,345 2,159,566 2,159,566 2,160,566 Unrestricted 6,819,607 7,845,545 8,891,769 10,396,218 Total business-type activities net position $ 69,422,641 $ 68,733,119 $ 68,478,395 $ 68,242,260 Primary government Net investment in capital assets $ 80,946,829 $ 79,991,678 $ 80,889,994 $ 79,068,651 Restricted 3,802,318 13,194,475 13,828,620 11,396,014 Unrestricted 21,782,904 18,977,473 18,519,908 23,547,007 Total primary government net position $106,532,051 $112,163,626 $113,238,522 $114,011,672 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. -120- 2015 2016 2017 2018 2019 2020 $ 21,417,203 $ 23,684,773 $ 28,820,307 $ 32,909,853 $ 33,867,761 $ 35,883,311 9,063,587 10,441,391 6,961,837 4,797,191 5,343,074 5,224,015 8,920,144 5,142,435 6,576,959 7,997,614 8,001,782 9,236,760 $ 39,400,934 $ 39,268,599 $ 42,359,103 $ 45,704,658 $ 47,212,617 $ 50,344,086 $ 54,807,938 $ 53,225,787 $ 51,464,649 $ 50,747,479 $ 53,677,776 $ 51,976,059 2,160,566 2,231,966 2,238,206 2,316,500 2,461,488 2,461,488 11,439,369 12,575,526 13,508,485 14,594,293 13,187,014 15,418,911 $ 68,407,873 $ 68,033,279 $ 67,211,340 $ 67,658,272 $ 69,326,278 $ 69,856,458 $ 76,225,141 $ 76,910,560 $ 80,284,956 $ 83,657,332 $ 87,545,537 $ 87,859,370 11,224,153 12,673,357 9,200,043 7,113,691 7,804,562 7,685,503 20,359,513 17,717,961 20,085,444 22,591,907 21,188,796 24,655,671 $107,808,807 $107,301,878 $109,570,443 $113,362,930 $116,538,895 $120,200,544 -121- CITY OF FARMINGTON Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 Expenses Governmental activities General government $ 1,897,429 $ 1,865,415 $ 1,778,549 $ 1,940,630 Public safety 5,162,361 4,989,522 5,156,950 5,192,091 Public works 2,800,221 3,063,908 3,849,742 4,893,341 Park and recreation 1,666,466 1,719,254 1,775,967 1,730,734 Economic development 114,639 44,114 50,000 49,417 Intergovernmental donations 313,198 - - - Interest and fiscal charges 1,431,468 1,302,605 1,290,439 1,020,096 Total governmental activities expenses $ 13,385,782 $ 12,984,818 $ 13,901,647 $ 14,826,309 Business-type activities Liquor operations $ 4,091,541 $ 4,116,030 $ 4,206,058 $ 4,315,834 Sewer operations 1,879,752 1,891,872 1,627,927 1,712,146 Solid waste 1,789,114 1,727,384 1,658,547 1,600,434 Storm water 745,967 734,516 513,582 615,684 Water 1,772,096 1,705,167 1,427,298 1,410,214 Street light 180,200 176,513 184,834 174,957 Total business-type activities 10,458,670 10,351,482 9,618,246 9,829,269 Total primary government expenses $ 23,844,452 $ 23,336,300 $ 23,519,893 $ 24,655,578 Program revenues Governmental activities Charges for services General government $ 470,572 $ 436,113 $ 684,528 $ 534,008 Public safety 461,659 423,721 482,759 409,460 Public works 306,860 225,497 115,092 94,416 Parks and recreation 520,522 581,341 596,165 607,566 Economic development 6,333 - - - Operating grants and contributions 507,180 533,939 713,378 677,999 Capital grants and contributions 2,388,656 4,976,219 645,233 477,833 Total governmental activities program revenues $ 4,661,782 $ 7,176,830 $ 3,237,155 $ 2,801,282 -122- 2015 2016 2017 2018 2019 2020 $ 2,284,974 $ 2,268,779 $ 2,178,067 $ 2,511,818 $ 2,609,059 $ 2,933,062 5,357,738 6,979,608 6,472,115 5,728,925 6,118,203 6,834,253 7,473,095 5,497,796 3,888,778 4,358,465 5,612,872 5,262,979 1,815,882 1,904,792 1,782,783 1,772,351 2,202,631 1,430,839 90,000 40,000 40,000 30,000 50,000 276,900 992,422 1,032,748 549,075 350,431 404,893 193,167 $ 18,014,111 $ 17,723,723 $ 14,910,818 $ 14,751,990 $ 16,997,658 $ 16,931,200 $ 4,352,597 $ 4,448,932 $ 4,634,488 $ 4,890,304 $ 5,257,236 $ 4,958,705 1,875,225 2,051,152 2,105,901 1,931,276 2,326,630 2,334,000 1,658,128 1,753,162 1,864,175 2,092,844 1,913,258 2,630,874 731,444 534,988 571,572 521,465 557,749 530,438 1,339,588 1,3 59,215 1,313,482 1,246,667 1,439,178 1,626,279 173,212 288,924 197,150 180,254 165,886 173,604 10,130,194 10,43 6,373 10,686,768 10,862,810 11,659,937 12,253,900 $ 28,144,305 $ 28,160,096 $ 25,597,586 $ 25,614,800 $ 28,657,595 $ 29,185,100 $ 399,053 $ 668,849 $ 434,411 $ 467,417 $ 471,569 $ 631,118 351,038 459,240 405,648 408,434 437,054 413,594 9,624 195,716 76,049 273,695 189,282 201,401 604,111 651,936 619,026 709,490 582,631 389,870 649,541 744,730 684,376 702,853 838,569 713,470 671,671 818,545 848,167 942,627 869,849 50,478 $ 2,685,038 $ 3,539,016 $ 3,067,677 $ 3,504,516 $ 3,388,954 $ 2,399,931 -123- (continued) CITY OF FARMINGTON Changes in Net Position Last Ten Fiscal Years(continued) (accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 Program revenues(continued) Business-type activities Charges for services Liquor operations $ 4,199,344 $ 4,397,572 $ 4,521,454 $ 4,639,194 Sewer operations 1,600,303 1,787,957 1,816,763 1,843,746 Solid waste 1,872,771 1,869,426 1,952,177 1,979,623 Storm water 467,729 475,060 565,166 559,327 Water 1,417,708 1,595,116 1,558,400 1,499,091 Street light 178,464 215,029 216,719 219,052 Operating grants and contributions 29,000 20,010 19,300 21,000 Capital grants and contributions 49,473 100,525 108,642 - Total business-type activities program revenues 9,814,792 10,460,695 10,758,621 10,761,033 Total primary government program revenues $ 14,476,574 $ 17,637,525 $ 13,995,776 $ 13,562,315 Net(expense)revenue Governmental activities $ (8,724,000) $ (5,807,988) $(10,664,492) $(12,025,027) Business-type activities (643,878) 109,213 1,140,375 931,764 Total primary government net expense $ (9,367,878) $ (5,698,775) $ (9,524,117) $(11,093,263) General revenues and other changes in net position Governmental activities Property taxes $ 9,607,893 $ 10,742,860 $ 10,748,581 $ 10,962,860 Tax increments 150,339 154,214 - - Franchise taxes 237,449 243,635 259,671 269,208 Unrestricted grants and contributions 1,500 1,816 24,845 257,386 Unrestricted investment earnings(charges) 119,632 77,276 (32,408) 130,739 Gain on sale of capital assets 75,306 - 18,268 - Transfers (1,602,351) 909,284 1,410,114 1,414,119 Total governmental activities $ 8,589,768 $ 12,129,085 $ 12,429,071 $ 13,034,312 Business-type activities Unrestricted grants and contributions $ - $ - $ - $ - Unrestricted investment earnings(charges) 69,117 110,549 (40,071) 246,220 Gain on disposal of capital assets 55,086 - Transfers 1,602,351 (909,284) (1,410,114) (1,414,119) Total business-type activities 1,671,468 (798,735) (1,395,099) (1,167,899) Total primary government $ 10,261,236 $ 11,330,350 $ 11,033,972 $ 11,866,413 Change in net position Governmental activities $ (134,232) $ 6,321,097 $ 1,764,579 $ 1,009,285 Business-type activities 1,027,590 (689,522) (254,724) (236,135) Total primary government $ 893,358 $ 5,631,575 $ 1,509,855 $ 773,150 -124- 2015 2016 2017 2018 2019 2020 $ 4,607,417 $ 4,742,313 $ 4,967,468 $ 5,256,645 $ 5,608,012 $ 5,347,194 1,957,902 2,043,859 2,068,388 2,045,728 2,117,934 2,160,808 1,991,179 2,041,561 2,061,324 2,071,672 2,244,569 2,692,155 670,353 643,479 647,767 737,115 1,130,563 1,149,665 1,439,873 1,631,643 1,681,079 1,852,381 2,281,793 2,533,753 222,159 224,781 225,570 226,674 226,971 232,990 22,000 23,000 24,000 30,263 34,190 26,710 945,938 - - - 81,634 - 11,856,821 11,350,636 11,675,596 12,220,478 13,725,666 14,143,275 $ 14,541,859 $ 14,889,652 $ 14,743,273 $ 12,220,478 $ 13,807,300 $ 14,143,275 $(15,329,073) $(14,184,707) $(11,843,141) $(11,247,474) $(13,608,704) $(14,531,269) 1,726,627 914,263 988,828 1,357,668 2,065,729 1,889,375 $(13,602,446) $(13,270,444) $(10,854,313) $ (9,889,806) $(11,542,975) $(12,641,894) $ 11,460,209 $ 11,806,302 $ 12,181,830 $ 12,659,480 $ 12,916,115 $ 13,044,381 265,485 275,691 266,728 266,324 262,148 244,839 278,974 287,252 289,854 316,100 317,172 2,042,381 189,540 255,021 200,851 239,714 657,977 526,283 - - 54,408 531 17,218 16,174 1,222,807 1,428,106 1,939,974 1,110,880 946,033 1,788,680 $ 13,417,015 $ 14,052,372 $ 14,933,645 $ 14,593,029 $ 15,116,663 $ 17,662,738 $ - $ - $ - $ - $ - $ 18,136 152,954 139,249 129,207 200,144 548,310 411,349 (1,222,807) (1,428,106) (1,939,974) (1,110,880) (946,033) (1,788,680) (1,069,853) (1,288,857) (1,810,767) (910,736) (397,723) (1,359,195) $ 12,347,162 $ 12,763,515 $ 13,122,878 $ 13,682,293 $ 14,718,940 $ 16,303,543 $ (1,912,058) $ (132,335) $ 3,090,504 $ 3,345,555 $ 1,507,959 $ 3,131,469 656,774 (374,594) (821,939) 446,932 1,668,006 530,180 $ (1,255,284) $ (506,929) $ 2,268,565 $ 3,792,487 $ 3,175,965 $ 3,661,649 -125- CITY OF FARMINGTON Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 General Fund Nonspendable $ 43,102 $ 612,518 $ 13,388 $ 33,369 Committed — — Assigned — 81,000 Unassigned 2,093,006 2,067,246 3,079,013 3,993,191 Total General Fund $ 2,136,108 $ 2,679,764 $ 3,092,401 $ 4,107,560 All other governmental funds Nonspendable $ 307,074 $ 146 $ — $ 160 Restricted 2,312,309 2,950,166 6,881,858 5,673,161 Committed — — — — Assigned 6,726,928 9,134,820 7,865,678 7,531,076 Unassigned (576,114) — — — Total all other governmental funds $ 8,770,197 $ 12,085,132 $ 14,747,536 $ 13,204,397 Total all funds $ 10,906,305 $ 14,764,896 $ 17,839,937 $ 17,311,957 Note: The City modified its fund balance policy in 2015,resulting in an increase in committed fund balances. -126- 2015 2016 2017 2018 2019 2020 $ 6,034 $ 33,762 $ 34,529 $ 5,045 $ 109,523 $ 141,196 - - - 240,000 - - 4,250 - - - - - 4,734,534 5,031,529 5,666,183 5,477,026 5,761,747 6,060,870 $ 4,744,818 $ 5,065,291 $ 5,700,712 $ 5,722,071 $ 5,871,270 $ 6,202,066 $ 150 $ 110 $ - $ - $ - $ 1,184,677 5,776,314 16,959,150 4,071,837 2,009,629 3,196,214 3,235,717 8,025,185 5,158,828 6,373,022 7,586,959 7,298,103 8,427,605 $ 13,801,649 $ 22,118,088 $ 10,444,859 $ 9,596,588 $ 10,494,317 $ 12,847,999 $ 18,546,467 $ 27,183,379 $ 16,145,571 $ 15,318,659 $ 16,365,587 $ 19,050,065 -127- CITY OF FARMINGTON Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 Revenues General property taxes $ 9,690,053 $ 11,112,325 $ 10,808,636 $ 11,031,219 Franchise fees 237,449 243,635 259,671 269,208 Special assessments 720,862 3,296,216 913,313 821,331 Licenses and permits 456,791 423,153 664,673 514,728 Intergovernmental 2,217,217 556,496 1,329,395 1,011,221 Charges for services 1,096,174 1,015,835 865,736 890,281 Fines and forfeits 78,710 73,210 81,919 65,482 Investment earnings 20,444 158,657 46,707 130,739 Other 272,234 222,083 233,808 174,959 Total revenues 14,789,934 17,101,610 15,203,858 14,909,168 Expenditures Current General government 1,828,147 1,830,470 1,686,263 1,717,994 Public safety 4,705,581 4,702,399 4,850,400 4,871,745 Public works 1,382,306 1,402,838 2,081,956 2,038,161 Park and recreation 1,399,541 1,427,257 1,530,238 1,448,951 Economic development 112,612 91,165 50,000 49,417 Capital outlay 316,134 555,293 1,290,875 1,839,726 Debt service Principal 5,090,101 2,912,213 7,394,424 2,376,739 Interest and fiscal charges 1,527,970 1,336,414 1,379,551 1,096,007 Total expenditures 16,362,392 14,258,049 20,263,707 15,438,740 Excess(deficiency)of revenues over expenditures (1,572,458) 2,843,561 (5,059,849) (529,572) Other financing sources(uses) Debt issued 2,418,979 - 7,088,037 - Payment of refunded debt - - - (1,435,000) Sale of capital assets 139,454 105,746 26,154 22,473 Transfers in 2,455,874 3,997,318 7,492,556 2,330,331 Transfers out (1,959,397) (3,088,034) (6,082,442) (916,212) Total other financing sources(uses) 3,054,910 1,015,030 8,524,305 1,592 Net change in fund balances $ 1,482,452 $ 3,858,591 $ 3,464,456 $ (527,980) Debt service as a percentage of noncapital expenditures 41.2% 31.0% 46.2% 24.8% -128- 2015 2016 2017 2018 2019 2020 $ 11,462,986 $ 11,852,567 $ 12,186,789 $ 12,665,721 $ 12,926,730 $ 13,049,745 265,485 275,691 266,728 266,324 262,148 244,839 661,187 545,777 532,744 314,594 625,308 407,412 370,889 650,311 415,005 449,350 421,578 588,347 2,097,509 1,633,388 1,632,170 1,768,219 1,796,575 2,948,939 820,445 1,077,860 929,784 1,094,360 1,042,292 890,408 52,299 41,750 45,102 60,182 63,561 45,959 172,818 237,224 183,402 209,968 567,539 455,233 160,193 260,564 201,288 305,014 226,316 161,687 16,063,811 16,575,132 16,393,012 17,133,732 17,932,047 18,792,569 1,947,768 1,996,410 2,051,143 2,311,024 2,407,932 2,637,945 5,131,076 5,301,211 5,537,937 5,348,888 5,705,820 5,917,499 1,971,079 2,006,606 2,381,695 2,690,271 3,272,313 2,794,566 1,538,452 1,513,411 1,585,656 1,595,924 1,855,261 1,560,781 90,000 40,000 40,000 30,000 50,000 276,900 4,695,581 2,755,780 586,495 1,597,191 4,715,989 2,664,884 2,899,162 4,411,534 6,395,000 5,180,000 2,435,000 2,910,000 1,041,780 1,095,380 818,144 503,061 412,373 397,231 19,314,898 19,120,332 19,396,070 19,256,359 20,854,688 19,159,806 (3,251,087) (2,545,200) (3,003,058) (2,122,627) (2,922,641) (367,237) 3,184,641 10,120,095 - - 1,009,555 1,279,300 (9,990,000) - - - 157,599 13,043 54,408 11,000 18,939 12,867 5,937,539 5,590,211 2,981,402 3,214,991 4,280,247 4,263,090 (4,794,182) (4,541,237) (1,080,560) (1,930,276) (1,339,172) (2,503,542) 4,485,597 11,182,112 (8,034,750) 1,295,715 3,969,569 3,051,715 $ 1,234,510 $ 8,636,912 $ (11,037,808) $ (826,912) $ 1,046,928 $ 2,684,478 21.0% 29.5% 37.9% 31.3% 16.5% 18.5% -129- 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 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) 2020 18,650,539 2,893,434 476,353 275,228 (145,234) 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 -130- 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 — $ (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 (1,074,146) 4,219,127 25,295,301 50.971 2,093,214,877 1.21 -131- CITY OF FARMINGTON Property Tax Rates(1) Direct and Overlapping Governments Last Ten Fiscal Years City Direct Rates(2) Overlapping Rates(3) Total Direct Fiscal Debt Total Dakota Other Special Overlapping Year Operating Service City County ISD No. 192 Districts Rate 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 2020 N/A N/A 50.971 24.126 53.095 2.880 131.072 (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) Dakota County no longer provides a breakdown between operating and debt service tax rates beginning in 2020. (3) 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. N/A-Not Available Source: Dakota County -132- CITY OF FARMINGTON Principal Property Taxpayers Current Fiscal Year and Nine Years Prior 2020 2011 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 $ 473,022 1 2.12 % $ 404,148 1 2.44 % Xcel Energy(Northern States Power) 199,074 2 0.89 86,186 7 0.52 Dakota Electric Association 147,784 3 0.66 141,788 2 0.85 Legacy Partners of Farmington LLC 104,464 4 0.47 — — — Dakota Storage,LLC 82,506 5 0.37 83,378 8 0.50 Valmont Industries 79,698 6 0.36 67,474 10 0.41 Minnesota Energy Resources 76,234 7 0.34 — — — POR-MKR Real Estate,LLC 69,499 8 0.31 — — — Seeger Properties LLC 67,932 9 0.30 — — — Schwiness LLC 67,724 10 0.30 — — — Northern States Power Co. — — — 119,864 3 0.72 Builder's Development and Finance — — — 109,968 4 0.66 Farmington City Center,LLC — — — 99,058 5 0.60 Land,LLC — — — 88,358 6 0.53 RLR Investments,LLC — — — 69,744 9 0.42 Total $ 1,367,937 6.14 % $1,269,966 7.65 % Source:Dakota County -133- 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 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 91,699 11,399,623 99.98 2016 11,718,018 11,656,384 99.47 60,396 11,716,780 99.99 2017 12,133,656 12,073,701 99.51 56,996 12,130,697 99.98 2018 12,681,188 12,601,932 99.38 69,963 12,671,895 99.93 2019 13,020,768 12,950,561 99.46 50,504 13,001,065 99.85 2020 13,036,578 12,967,610 99.47 — 12,967,610 99.47 (1) Includes fiscal disparity revenues. (2) Includes fiscal disparity revenues and is net of county/state adjustments. Source: Dakota County -134- 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 Bonds Bonds Indebtedness (Discounts) 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 2020 7,550,000 2,760,000 — 1,105,000 578,829 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 -135- Business-Type Activities Net Total Percentage Revenue Premiums Primary of Personal Bonds (Discounts) Government Per Capita Income $ 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 655,000 80,944 12,729,773 551 N/A -136- 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 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 2020 7,550,000 1,255,057 6,294,943 2,093,214,877 0.30 (1) Includes all general obligations of the City,including Capital Improvement Plan 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 -137- Percentage of Total City Total City Percentage Tax Capacity Tax Capacity of Personal Per Value Value Population(3) Income(3) Capita $ 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 22,295,554 28.23 23,123 N/A 272 -138- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Direct and Overlapping Governmental Activities Debt December 31,2020 Estimated Estimated Share of Net Debt Percentage Overlapping Governmental Unit Outstanding Applicable(1) Debt Overlapping debt Dakota County(2) $ — — % $ — ISD No. 192 Farmington 166,590,000 0.593 988,064 ISD No. 196 Rosemount—Apple Valley—Eagan 112,785,000 0.000 40 Metropolitan Council(3) 245,380,000 0.040 97,438 Total overlapping debt 524,755,000 1,085,542 Direct debt City of Farmington direct debt 11,993,829 100.000 11,993,829 Total direct and overlapping debt $ 536,748,829 $ 13,079,371 (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 -139- CITY OF FARMINGTON Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 Debt limit $ 45,675,060 $ 40,338,008 $ 37,998,037 $ 39,352,574 Total net debt applicable to the limit 16,919,072 15,916,859 15,442,435 14,520,696 Legal debt margin $ 28,755,988 $ 24,421,149 $ 22,555,602 $ 24,831,878 Total net debt applicable to the limit as a percentage of debt limit 37.04% 39.46% 40.64% 36.90% -140- 2015 2016 2017 2018 2019 2020 $ 44,279,096 $ 48,043,247 $ 50,558,628 $ 54,324,795 $ 59,069,079 $ 62,796,446 16,496,534 20,115,000 12,455,000 9,155,000 8,865,000 7,550,000 $ 27,782,562 $ 27,928,247 $ 38,103,628 $ 45,169,795 $ 50,204,079 $ 55,246,446 37.26% 41.87% 24.63% 16.85% 15.01% 12.02% Legal Debt Margin Calculations for Fiscal Year 2020 Market value $ 2,093,214,877 Debt limit(3%of market value) 62,796,446 Debt applicable to the limit 7,550,000 Legal debt margin $ 55,246,446 -141- 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 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 revenue bonds outstanding from 2013—2018 2014 No revenue bonds outstanding from 2013—2018 2015 No revenue bonds outstanding from 2013—2018 2016 No revenue bonds outstanding fi•om 2013—2018 2017 No revenue bonds outstanding from 2013—2018 2018 No revenue bonds outstanding from 2013—2018 2019 2,281,793 (556,474) 1,725,319 — — — N/A 2020 2,533,753 (613,141) 1,920,612 65,000 39,916 104,916 1,830.62 (a) 2011-2012 includes gross revenues of the Sewer Operations Funds.2019—2020 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. N/A—Not Available -142- 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) 2011 21,558 7,464 6,555 5.2 $ 1,022,905,542 $ 47,449 2012 21,806 7,532 6,560 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 2020 23,123 7,926 6,996 4.3 N/A N/A (1) Numbers for 2011-2015 are from the Farmington Building Inspections Department.The 2016-2020 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 -143- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Principal Employers Current Fiscal Year and Nine Years Prior 2020 2011 Percentage of Total Percentage Employees Employment Employees of Total Taxpayer (1) Rank (2) (1) Rank Employment ISD No. 192,Farmington Public Schools 925 1 17.8 % 796 1 17.8 % Installed Building Solutions 500 2 9.6 — — — Federal Aviation Administration 498 3 9.6 486 2 10.9 Trinity Care Center&Trinity Terrace 240 4 4.6 138 6 3.1 City of Farmington 216 5 4.1 90 10 2.0 Dakota Electric Association 197 6 3.8 210 3 4.7 Marshall Lines,Inc. 190 7 3.6 183 5 4.1 Valmont Industries 154 8 3.0 115 8 2.6 R&L Carriers 150 9 2.9 95 9 2.1 Kemps Dairy 130 10 2.5 121 7 2.7 River Valley Home Care — — — 196 4 4.4 Total 3,200 61.4 % 2,430 54.3 % (1) Per City of Farmington records. (2) Metropolitan Council Employment by Community as of 2019(latest available),5,211 total employment. -144- CITY OF FARMINGTON Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 General government Administration 5.00 5.25 3.50 3.50 Finance 2.75 2.50 4.00 4.00 Human resources/information technology/communications 2.80 1.80 3.00 3.00 Community development 3.00 1.00 2.00 2.50 Total general government 13.55 10.55 12.50 13.00 Public safety Police administration 6.15 6.15 5.15 5.15 Police patrol 16.00 16.50 18.00 17.00 Investigations 7.00 6.50 5.00 5.00 Fire 1.25 1.40 1.40 1.40 Total public safety 30.40 30.55 29.55 28.55 Public works Building inspections 3.00 2.93 2.50 2.50 Engineering 2.42 2.34 5.10 4.60 Streets 4.68 4.68 10.00 10.00 Snowplowing 0.45 0.45 - - Natural resources 1.02 1.02 1.00 1.00 Total public works 11.57 11.42 18.60 18.10 Parks and recreation Park maintenance 4.44 4.44 3.50 3.50 Building maintenance - - 1.00 1.00 Recreation programming 2.00 2.00 2.00 2.00 Total parks and recreation 6.44 6.44 6.50 6.50 Senior center 1.10 1.10 1.50 1.50 Swimming pool 0.40 0.40 0.40 0.40 Arena 2.11 2.11 2.35 2.35 Liquor operations 7.25 7.25 7.25 7.50 Sewer 2.60 2.59 - - Solid waste 6.38 6.38 5.00 5.00 Storm water utility 2.93 2.93 - - Water 3.83 3.83 - - Fleet 2.00 1.00 2.00 2.00 Total employees 90.56 86.55 85.65 84.90 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 -145- 2015 2016 2017 2018 2019 2020 3.00 2.00 1.00 1.00 1.00 1.00 4.50 5.50 5.50 5.50 5.50 5.50 3.00 3.00 4.00 5.00 5.00 5.00 2.50 3.00 3.00 4.00 5.00 4.00 13.00 13.50 13.50 15.50 16.50 15.50 5.15 5.15 5.15 5.00 5.00 5.00 17.00 17.00 17.00 15.00 16.00 17.00 5.00 5.00 5.00 6.00 6.00 6.00 1.50 1.50 1.50 1.00 2.00 2.00 28.65 28.65 28.65 27.00 29.00 30.00 2.50 3.20 3.50 3.50 3.00 4.00 4.50 4.50 5.50 4.50 5.00 5.00 9.00 9.50 9.50 9.00 10.00 10.00 1.00 1.00 - 1.00 1.00 - 17.00 18.20 18.50 18.00 19.00 19.00 3.50 3.50 3.60 4.00 4.00 4.00 1.00 1.00 1.00 1.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 6.50 6.50 6.60 7.00 9.00 9.00 1.00 1.40 1.40 1.00 1.00 1.50 0.40 0.40 0.40 - - - 2.35 2.35 2.35 2.00 2.00 2.00 8.00 8.00 8.00 9.50 9.00 13.00 5.00 5.50 5.50 5.50 5.00 5.00 2.00 2.00 2.00 2.00 2.00 2.00 83.90 86.50 86.90 87.50 92.50 97.00 -146- CITY OF FARMINGTON Operating Indicators by Function Last Ten Years Fiscal Year Function/Program 2011 2012 2013 2014 General government Elections N/A 1 N/A 1 Registered voters N/A 13,358 N/A 12,541 Number of votes cast N/A 11,185 N/A 6,419 Voter participation(registered) N/A 84.0% N/A 51.0% Public safety Police Arrests 527 435 403 266 All citations and warnings* 2,253 4,359 4,517 3,383 Calls for service 13,807 15,094 13,138 13,035 Fire Medical calls 274 290 323 386 Fire calls 227 254 235 241 Inspections Building permits 747 818 679 711 Value of building permits(in millions) $ 25 $ 17 $ 35 $ 24 Parks and recreation Parks Park reservations 67 69 65 66 Pool(closed after 2017) Pool open swim admissions 11,869 13,069 11,566 8,032 Pool swim lesson registrations 410 407 308 267 Pool season passes sold 63 89 78 N/A Pool punch cards sold 142 130 154 193 Swim bus riders 620 641 786 408 Rambling River Center Memberships 430 428 435 406 Program participation 15,817 16,198 16,875 15,285 Number of volunteers 108 152 94 130 Total volunteer hours 4,601 3,741 4,780 4,348 Ice arena Ice skating lessons total participants 195 200 215 230 Arena rental hours 1,271 1,197 1,147 1,197 Outdoor rinks total number of skaters 6,499 5,259 7,819 7,481 Other Recreation program/event participants 6,126 6,607 6,971 6,425 Youth scholarships provided 20 22 25 7 *Beginning in 2012,this figure includes warnings. N/A-Not Available Source:Various city departments -147- 2015 2016 2017 2018 2019 2020 N/A 1 N/A 1 N/A 1 N/A 13,788 N/A 13,403 N/A 14,736 N/A 11,545 N/A 9,632 N/A 12,102 N/A 84.0% N/A 72.0% N/A 82.0% 153 351 281 284 253 232 2,494 2,070 2,021 2,484 2,176 2,319 12,085 11,943 11,221 13,033 14,005 15,413 359 356 452 411 480 467 361 345 407 340 370 284 619 1,184 1,036 1,059 1,049 1,318 $ 15 $ 38 $ 19 $ 26 $ 22 $ 27 66 81 71 64 59 - 7,652 7,372 6,302 - - - 256 309 136 - - - N/A NA N/A - 176 125 139 - 536 507 496 - - - 381 404 467 497 372 305 13,885 13,042 15,203 16,015 17,730 3,651 107 82 80 69 74 31 5,944 8,573 4,298 3,426 3,749 347 216 329 284 296 310 122 1,315 1,285 1,490 1,380 1,390 1,191 7,851 5,187 7,276 5,451 3,892 4,209 5,976 8,344 8,171 7,034 5,657 361 4 6 8 1 - - -148- CITY OF FARMINGTON Capital Assets Statistics by Function/Program Last Ten Years Fiscal Year Function/Program 2011 2012 2013 2014 Public safety Police Stations 1 1 1 1 Patrol squads 18 17 17 16 Fire Stations 2 2 2 2 Fire trucks 7 7 7 6 Public works Vehicles 21 20 21 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 23 Liquor operations Store—building — — — — Solid waste Compactor trucks 6 6 5 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:The City's financial records -149- 2015 2016 2017 2018 2019 2020 1 1 1 1 1 1 16 15 15 16 19 19 2 2 2 2 2 2 6 8 8 8 8 8 24 29 29 29 30 31 89 89 89 89 89 90 1 1 1 1 1 1 1 1 1 - - - 1 1 1 1 1 1 23 23 23 24 26 26 5 5 5 5 5 6 84 84 90 90 87 90 73 73 78 78 78 81 109 109 113 113 113 116 7 7 7 7 8 9 2 2 2 2 2 2 -150- THIS PAGE INTENTIONALLY LEFT BLANK Management Report for City of Farmington,Minnesota December 31,2020 THIS PAGE INTENTIONALLY LEFT BLANK PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA MMKRWilliam J.Lauer,CPA James H.Eichren,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 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, 2020. 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. W4&v7, W , Kms , . .. A . Minneapolis,Minnesota May 11,2021 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, GOVERNMENT AUDITING STANDARDS, AND TITLE 2 U.S. CODE OF FEDERAL REGULATIONS (CFR) PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS(UNIFORM GUIDANCE) 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, 2020. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, 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 31,2020: • We have issued an unmodified opinion on the City's basic financial statements. • We reported one matter involving the City's internal control over financial reporting that we consider to be a material weakness. 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 that the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements. • We reported one matter involving the internal control over compliance and its operation that we consider to be a material weakness in our testing of major federal programs, which resulted in material instances of noncompliance with the types of compliance requirements that could have a direct and material effect on the City's major federal program. o The City did not have sufficient controls in place to ensure compliance with federal allowable cost standards for its Coronavirus Relief Fund (CRF) federal program. This resulted in the City charging unallowable costs of $58,018 to the program for two employee salaries tested that did not meet federal allowable cost standards. • We reported no findings based on our testing of the City's compliance with Minnesota laws and regulations. -1- OTHER OBSERVATIONS AND RECOMMENDATIONS Electronic Funds Transfers Fraud As the use of electronic funds transfers and payment methods has become more prevalent, we have seen increases in both the incidences of fraud related to these transactions and the dollar amounts involved. Operational changes related to the COVID-19 pandemic, including greater reliance on technology and more employees working remotely, have tended to increase risk in this area. We urge cities to carefully review controls over these transactions, and consider best practices to address these risks, such as: • Ensuring segregation of duties over these transactions by involving more than one employee in the process. • Requiring multi-factor authentication of requests for electronic payments from new vendors or for changes in wiring instructions for existing vendors. It is recommended that changes for existing vendors be verified through trusted contact information used previously for that vendor, not as provided in the change request,to verify the accuracy of the change. • Educate employees on the controls in place to protect the organization's financial assets and ensure management is supportive and accepting of the processes in place. Attempted fraudulent transactions are often initiated using the profile of a supervisor. Employees must be comfortable questioning unusual transactions or requests, and instructed not to circumvent internal control procedures regardless of whom they believe initiated the transaction. • Recommended cyber security measures, such as limiting network access and requiring robust passwords that are changed regularly, should be implemented and followed by all city employees, not just those directly involved with financial transactions. • Review insurance policies to understand the coverage provided for financial losses due to cybersecurity risks and evaluate whether they provide adequate coverage based on management's assessment of these risks. Uniform Guidance Written Controls and Micro-Purchase Threshold Federal Uniform Guidance requires that nonfederal entities must have and use documented procurement procedures consistent with 2CFR§ 200.317-320 for the acquisition of property or services required under a federal award or sub-award. Effective August 31, 2020, the federal micro-purchase threshold, which is the threshold that allows for procurements without soliciting competitive price or rate quotations given certain conditions,was increased from$3,500 to$10,000 in the Federal Acquisition Regulations(FAR). Effective November 12, 2020, the Uniform Guidance was also revised to allow nonfederal entities to establish a micro-purchase threshold higher than the $10,000 threshold established in the FAR under certain circumstances. The nonfederal entity may self-certify a micro-purchase threshold up to $50,000 if the requirements in 2CFR § 200.320(a)(1)(iv) are followed. Requirements include an annual self-certification and clear documentation of the justification to support the increase in the threshold. Acceptable reasons for justification must meet one of the following criteria: • A qualification as a low-risk auditee, in accordance with the criteria in §200.520 for the most recent audit, • An annual internal institutional risk assessment to identify, mitigate, and manage financial risks, or, • A higher threshold consistent with state law. This flexibility would allow Minnesota local governments to increase and align their federal procurement procedures, specifically the micro-purchase threshold, with state law, which allows for procurements below$25,000 to be made without competitive price or rate quotations. -2- We recommend that the City review its current federal procurement policy. If the micro-purchase threshold in your currently adopted policy is below the allowable FAR limit of$10,000, you would need to make a one-time amendment to the policy to adopt the$10,000 FAR limit before using it. If you prefer to increase your federal micro-purchase threshold to $25,000 to align it with state law, in addition to amending your federal procurement policy, you would need to annually certify the higher threshold and the justification for using the higher threshold. Uniform Guidance Written Controls and Subrecipient Monitoring Federal Uniform Guidance requires nonfederal entities to have and use documented subrecipient monitoring and management procedures consistent with 2CFR § 200.331-333 for disbursements of federal funds determined to be a federal subaward. A subaward is an agreement between the City and an outside party for the purpose of carrying out a portion of a federal award, which creates a federal assistance relationship with the subrecipient. The Uniform Guidance requirements for pass-through entities include,but are not limited to: • Providing the subrecipient with the best information available to describe the key identifiers and terms of the federal award and subaward; • A written risk assessment evaluating each subrecipient's risk of noncompliance with federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring; • Written documentation of monitoring activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with federal statutes, regulations, and the terms and conditions of the subaward, and that the subaward performance goals are achieved; and • Written procedures verifying that every subrecipient is audited as required by the Uniform Guidance Subpart F when it is expected that the subrecipient's federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in 2CFR §200.501. During our audit, we noted that the City had developed and adopted written federal grant procedures; however,these did not fully address procedures specific to subrecipient monitoring as it relates to federal awards. We recommend that the City review its current federal grant procedures to ensure they include and are consistent with the subrecipient requirements specified in 2CFR§ 200.332. 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 31,2020. 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. -3- 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 Governmental Accounting Standards Board 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. 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. 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 11,2021. -4- MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards with management each year prior to retention as the City's auditors.However,these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to the management's discussion and analysis (MD&A) and the 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 and the separately issued Schedule of Expenditures of Federal Awards, which are not RSI. With respect to this supplemental information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplemental information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory 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. -5- THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City's governmental funds, which includes the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City's financial statements focuses on budgetary compliance and the sufficiency of each governmental fund's current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2019 fiscal year, local ad valorem property tax levies provided 40.8 percent of the total governmental fund revenues for cities over 2,500 in population, and 37.6 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2020 increased 6.1 percent from the prior year. The total tax capacity value of property in Minnesota cities increased about 6.5 percent for the 2020 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 2020 were based on assessed market values as of January 1, 2019), so the trend of change in these tax capacity values lags somewhat behind the housing market and economy in general. The City's taxable market value increased 8.7 percent for taxes payable in 2019 and 6.3 percent for taxes payable in 2020. The following graph shows the City's changes in taxable market value over the past 10 years: Taxable Market Value $2,200,000,000 $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 $- -- -- 2011 2012 2013 2014 2015 2016 2017 IN _u11) 2020 -6- 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 8.4 percent and 5.7 percent for taxes payable in 2019 and 2020,respectively. The following graph shows the City's change in tax capacities over the past 10 years: Local Net Tax Capacity $24,000,000 - $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 $- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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 2018 2019 2020 Average tax rate City 57.2 54.4 51.0 County 26.6 25.4 24.1 School 52.8 51.4 >;.I Special taxing 3.2 3.0 2.9 Total 139.8 134.2 131.1 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. -7- 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, 2020,presented both by fund balance classification and by fund: Governmental Funds Change in Fund Balance Fund Balance as of December 31, 2020 2019 Change Fund balances of governmental funds Total by classification Nonspendable $ 1,325,873 $ 109,523 $ 1,216,350 Restricted 3,235,717 3,196,214 39,503 Committed 8,427,605 7,298,103 1,129,502 Unassigned 6,060,870 5,761,747 299,123 Total governmental funds $ 19,050,065 $ 16,365,587 $ 2,684,478 Total by fund General $ 6,202,066 $ 5,871,270 $ 330,796 Debt Service 2,677,368 2,776,623 (99,255) State Aid Construction Capital Projects 130,936 127,578 3,358 Storm Water Trunk Capital Projects 3,604,416 3,469,379 135,037 Permanent Improvement Revolving Capital Projects 179,782 174,912 4,870 Maintenance Capital Projects 1,660,550 867,109 793,441 Private Capital Projects 112,218 76,334 35,884 Nonmajor 4,482,729 3,002,382 1,480,347 Total governmental funds $ 19,050,065 $ 16,365,587 $ 2,684,478 In total, the fund balances of the City's governmental funds increased by $2,684,478 during the year ended December 31, 2020. The increase in nonspendable fund balances of $1,216,350 relates primarily to a prepayment of $1,156,674 in the (nonmajor) Fire Capital Projects Fund for an aerial fire truck ordered for completion and delivery in 2021. Committed fund balance increased $1,129,502, with the majority of the increase in resources committed for pavement management in the Maintenance Capital Projects Fund. Unassigned fund balance increased$299,123, due to positive operating results in the General Fund. -8- 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 31,2019 2018 2019 2020 Population 10,000-20,000 20,000-100,000 22,880 23,123 23,123 Property taxes $ 489 $ 512 $ 554 $ 559 $ 564 Tax increments 28 44 — — — Franchise and other taxes 50 50 12 11 11 Special assessments 38 53 14 27 18 Licenses and permits 35 51 20 18 25 Intergovernmental revenues 297 201 77 78 128 Charges for services 108 115 48 45 36 Other 78 79 25 37 29 Total revenue $ 1,123 $ 1,105 $ 750 $ 775 $ 811 The City's governmental fund revenues for 2020 were $18,742,569, an increase of $810,522 (4.5 percent), or $36 per capita, from the prior year. Intergovernmental revenue was $50 per capita more than last year, due to the City receiving a $1,723,785 federal CRF grant entitlement in 2020 to provide assistance to the community and fund unanticipated COVID-19-related expenses. 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. -9- 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 31,2019 2018 2019 2020 Population 10,000-20,000 20,000-100,000 22,880 23,123 23,123 Current General government $ 128 $ 107 $ 101 $ 104 $ 114 Public safety 282 306 234 247 256 Streets and highways 149 119 118 142 121 Culture and recreation 124 106 70 80 67 All other 75 97 1 2 12 758 735 524 575 570 Capital outlay and construction 376 355 70 204 115 Debt service Principal 182 88 226 105 126 Interest and fiscal charges 41 28 22 18 17 223 116 248 123 143 Total expenditures $ 1,357 $ 1,206 $ 842 $ 902 $ 828 Total expenditures in the City's governmental funds for 2020 were$19,159,806,a decrease of$1,694,882 (8.1 percent), or$74 per capita, from the previous year. Current governmental expenditures for 2020 were $5 per capita less than last year. Capital outlay expenditures were $89 per capita lower than last year, primarily due to a decrease in street improvement project activity. Debt service expenditures were $20 higher than last year,due to an increase in scheduled bond principal payments. -10- 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, $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 - — - 12016 2017 2018 2019 2020 Fund Balance $5,065,291 $5,700,712 $5,722,071 $5,871,270 $6,202,066 O Cash(Net) $3,875,421 $4,493,060 $4,555,548 $4,676,267 $4,837,575 Exp and Trans Out $12,228,226 $11,767,128 $12,801,620 $13,199,638 $14,840,260 The City's General Fund cash and investments, net of interfund borrowing at December 31, 2020 was $161,308 higher than at the previous year-end. Total fund balance at December 31, 2020 of$6,202,066 represented an increase of$330,796 from the prior year, as compared to a breakeven budget. 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 73.9 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$6,060,870 at the end of the 2020 fiscal year represents approximately 43.8 percent of budgeted expenditures and transfers out for 2021. 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. -11- The following graph reflects the City's General Fund revenue sources for 2020 compared to budget: General Fund Revenue Budget and Actual Property Taxes Intergovernmental Fines and Forfeits Charges for Services Licenses and Permits All Other 8j 82 ��' 8St 8J 86 �j 8d' 89 81 8J °00 °00 °00 °00 °00 °00 °00 �O00 °°0 -00 j00 900 1019° ,000 ,000 1019° 1000 1000 1019° ,000 O°� O° 00 ■Budget ■Actual General Fund revenue for 2020 was$13,863,486,which was$1,528,704(12.4 percent)more than budget. Intergovernmental revenue exceeded budget by $1,339,380, mainly due to the majority of the CRF federal grant funds, which was not budgeted, being used to finance General Fund expenditures. Licenses and permits were $115,232 higher than budget, due to an increase in building permits. Investment earnings, included in the "all other"revenue category above, exceeded the City's conservative budget by $102,761. 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, $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 —— - Property Fines and Charges for Licenses Taxes Intergovernmental Forfeits Services and Permits All Other 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 02019 $9,714,270 $1,085,065 $63,561 $502,902 $421,578 $317,205 02020 $10,244,358 $2,261,674 $45,959 $419,761 $588,347 $303,387 Total General Fund revenue for 2020 was $1,758,905 (14.5 percent)higher than last year. Property taxes were $530,088 higher than last year, due to the increased tax levy. Intergovernmental revenues increased $1,176,609 from last year,mainly due to the federal CRF grant revenue, as discussed above. -12- The following graph illustrates the components of General Fund spending for 2020 compared to budget: General Fund Expenditures Budget and Actual General Government Public Safety Public Works Parks and Recreation Economic Development sr 5r 8r 8Jr 86 6' '0" 60, s00 °0b s00 °� .s°0 0% s00 0% sIb o% rLb 0 .00 100 100 100 100 .00 100 1°0 10 0 100 1°0 10 0 0 0 0 0 0 0 0 0 0 0 0 0 ■Budget ■ Actual General Fund expenditures for 2020 were $12,458,956, which was $291,189 (2.3 percent) under budget. Current expenditures were under budget in all functional areas shown above, due to savings from open positions, training and activity cancellations due to COVID-19 restrictions, lower snow removal costs, and conservative spending. Capital outlay was over budget in the general government and public safety areas,primarily due to COVID-19-related improvements and technology upgrades. 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, $7,000,000 - $6,000,000 $5,000,000 -- $4,000,000 -- -- -— $3,000,000 $2,000,000 $1,000,000 — $- - - General Public Safety Public Works Parks and Economic Government Recreation Development 02016 $1,996,410 $5,303,440 $1,941,856 $1,208,035 $41,178 M 201 $1,984,002 $5,461,319 $2,094,946 $1,232,069 $40,000 02018 $2,248,227 $5,406,394 $2,278,842 $1,217,733 $30,000 02019 $2,369,885 $5,733,766 $2,605,435 $1,209,414 $50,000 02020 $2,695,928 $6,093,624 $2,484,231 $1,145,173 $40,000 Total General Fund expenditures for 2020 were$490,456(4.1 percent) higher than the previous year. The increase was mainly in general government (up $326,043) and public safety (up $359,858) areas, due to additional positions, election costs, and COVD-19-related capital outlay. Public works expenditures were $121,204 lower than last year,mainly due to lower snow removal and street maintenance costs. -13- 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 include 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 31,2020,presented both by classification and by fund: Enterprise Funds Change in Financial Position Net Position as of December 31, 2020 2019 Change Net position of enterprise funds Total by classification Net investment in capital assets $ 51,976,059 $ 53,677,776 $ (1,701,717) Restricted—future drinking water treatment plant 2,461,488 2,461,488 — Unrestricted 15,418,911 13,187,014 2,231,897 Total enterprise funds $ 69,856,458 $ 69,326,278 $ 530,180 Total by fund Liquor Operations $ 1,506,724 $ 1,606,511 $ (99,787) Sewer Operations 19,819,444 20,258,195 (438,751) Solid Waste 1,832,590 1,782,038 50,552 Storm Water 15,129,294 14,861,023 268,271 Water 31,291,703 30,607,578 684,125 Street Light 276,703 210,933 65,770 Total enterprise funds $ 69,856,458 $ 69,326,278 $ 530,180 In total, the net position of the City's enterprise funds increased by $530,180 during the year ended December 31, 2020. The City's net investment in capital assets decreased by $1,701,717 during the year, mainly due to depreciation, as there were relatively few capital asset additions in the enterprise funds in 2020. Almost all of the City's enterprise operations had positive operating results for the year prior, generating income before transfers of $2,318,860 across all funds. The enterprise funds transferred $1,788,680 to the governmental and internal service funds during the year to support the General Fund and help finance capital improvements. -14- 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 $— 30 2016 2017 2018 2019 2020 0 Sales $4,742,313 $4,967,468 $5,256,645 $5,608,012 $5,347,194 ■Cost of Sales $3,537,858 $3,707,363 $3,923,968 $4,183,615 $3,984,504 0Oper Exp 1 $911,074 $927,125 $966,336 $1,073,621 $974,201 0Oper Income 1 $293,381 $332,980 $366,341 $350,776 $388,489 The City's Liquor Operations Fund ended 2020 with a total net position of$1,506,724, a decrease of $99,787 from the prior year. Of this, $8,919 represents the investment in liquor capital assets, leaving an unrestricted net position of$1,497,805. The Liquor Operations Fund had gross sales of$5,347,194 in 2020, a decrease of$260,818 (4.7 percent) from the previous year. Sales were down, due to temporary closures and limited store hours related to COVID-19. Gross profit was $1,362,690, about 25.5 percent of sales, which is consistent with recent years. Operating expenses for 2020 decreased $99,420 (9.3 percent) from the previous year, mainly in salaries and benefits,due to the COVID-19-related closures and operating hour limitations as discussed above. -15- 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 I $250,000 $(250,000) 2016 2017 2018 2019 2020 OOper Rev $2,043,859 $2,068,388 $2,045,728 $2,117,934 $2,160,808 �OperExp $2,049,273 $2,107,816 $1,930,839 $2,310,312 $2,331,935 Oper Inc(Loss) $(5,414) $(39,428) $114,889 $(192,378) $(171,127) Inc Before Depr $591,786 $556,961 $711,639 $421,184 $474,161 The Sewer Operations Fund ended 2020 with a total net position of$19,819,444, a decrease of$438,751 from the prior year. Of this, $16,644,734 represents the investment in sewer collection system capital assets,leaving an unrestricted net position of$3,174,710. Operating revenue in the Sewer Operations Fund was similar to the prior year with no increase to rates for 2020, increasing by$42,874(2.0 percent). Operating expenses for 2020 were$21,623 (0.9 percent) higher than the previous year. -16- 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, $2,800,000 $2,600,000 $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) 2016 2017 2018 2019 2020 OOper Rev $2,041,561 $2,061,324 $2,071,672 $2,244,569 $2,692,155 �OperExp $1,775,162 $1,864,175 $2,101,344 $1,941,102 $2,630,874 Oper Inc(Loss) $266,399 $197,149 $(29,672) $303,467 $61,281 Inc Before Depr $346,778 $305,022 $51,763 $379,383 $162,475 The Solid Waste Fund ended 2020 with a total net position of$1,832,590, an increase of$50,552 from the prior year. Of this, $416,502 represents the investment in solid waste operation capital assets, leaving an unrestricted net position of$1,416,088. Operating revenue in the Solid Waste Fund increased$447,586 (19.9 percent)from the prior year, due to an increase of 17.0 percent in solid waste rates. Operating expenses for 2020 were $689,772 (35.5 percent) more than the previous year. Landfill tipping fees increased, due to a change in processers, and recycling costs were also up significantly. -17- 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 00000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 - $200,000 $100,000 2016 2017 2018 2019 2020 o0per Rev $643,479 $647,767 $737,115 $1,130,563 $1,149,665 �Oper Exp $534,988 $551,793 $533,465 $553,584 $530,438 Oper Inc(Loss) $108,491 $95,974 $203,650 $576,979 $619,227 Inc Before Depr $520,482 $508,053 $628,404 $1,014,979 $1,059,648 The Storm Water Fund ended 2020 with a total net position of$15,129,294,an increase of$268,271 from the prior year. Of this, $12,971,377 represents the investment in storm water operation capital assets, leaving an unrestricted net position of$2,157,917. Operating revenue in the Storm Water Fund was similar to the prior year with no increase to rates in 2020, increasing$19,102(1.7 percent). Operating expenses for 2020 were $23,146 (4.2 percent) lower than the previous year, mainly due to a decrease in contracted services expense. -18- WATER FUND The following graph presents five years of comparative operating results for the City's Water Fund: Water Fund Year Ended December 31, $2,600,000 $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 -- 2016 2017 2018 2019 2020 O0per Rev $1,631,643 $1,681,079 $1,852,381 $2,281,793 $2,533,753 �0per Exp $1,359,111 $1,313,735 $1,247,662 $1,393,568 $1,604,792 Oper Inc(Loss) $272,532 $367,344 $604,719 $888,225 $928,961 Inc Before Depr $1,042,252 $1,134,553 $1,335,659 $1,725,319 $1,920,612 The Water Fund ended 2020 with a total net position of$31,291,703, an increase of$684,125 from the prior year. Of this, $21,934,527 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 $6,895,688. Operating revenue in the Water Fund for 2020 increased $251,960 (11.0 percent) from the prior year, resulting from the combination of a 4.0 percent rate increase and higher consumption, due in part to increased irrigation usage. Water Fund operating expenses for 2020 were $211,224 (15.2 percent) higher than the previous year, mainly due to increases in utilities and depreciation. -19- 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) 2016 2017 2018 2019 2020 OOper Rev $224,781 $225,570 $226,674 $226,971 $232,990 �OperExp $288,924 $197,150 $180,254 $165,886 $173,604 Oper Inc(Loss) $(64,143) $28,420 $46,420 $61,085 $59,386 Street Light Fund operating revenue for 2020 increased$6,019(2.7 percent)from the prior year. Operating expenses were $7,718 (4.7 percent)higher than the previous year,mainly in utilities expense. Unrestricted net position increased$65,770 in 2020,ending the year at$276,703. -20- 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, 2020 and 2019, for governmental activities and business-type activities: As of December 31, 2020 2019 Change Net position Governmental activities Net investment in capital assets $ 35,883,311 $ 33,867,761 $ 2,015,550 Restricted 5,224,015 5,343,074 (119,059) Unrestricted 9,236,760 8,001,782 1,234,978 Total governmental activities 50,344,086 47,212,617 3,131,469 Business-type activities Net investment in capital assets 51,976,059 53,677,776 (1,701,717) Restricted 2,461,488 2,461,488 — Unrestricted 15,418,911 13,187,014 _ 2,231,897 Total business-type activities 69,856,458 69,326,278 530,180 Total net position $ 120,200,544 $ 116,538,895 $ 3,661,649 The City's total net position at December 31, 2020 was $3,661,649 higher than the previous year-end. The City's net position increased $3,131,469 from current year governmental activities and $530,180 from current year business-type activities. The governmental activities net investment in capital assets increased $2,015,550, due to the relationship between capital asset additions, the rate at which capital assets are depreciated, and the repayment of the debt issued to construct or acquire the assets. The increase in governmental activities unrestricted net position of$1,234,978 in 2020, reflects positive operating results in the City's governmental funds, along with resources transferred from the City's business-type activities for future capital needs. Changes to the net position of the business-type activities are as detailed in the previous discussion of the City's enterprise fund operations. -21- 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, 2020 and 2019: 2020 2019 Program Expenses Revenues Net Change Net Change Net(expense)revenue Governmental activities General government $ 2,933,062 $ 657,793 $ (2,275,269) $ (2,041,320) Public safety 6,834,253 924,083 (5,910,170) (5,121,330) Public works 5,262,979 427,870 (4,835,109) (4,395,790) Parks and recreation 1,430,839 390,185 (1,040,654) (1,595,371) Economic development 276,900 — (276,900) (50,000) Interest on long-term debt 193,167 — (193,167) (404,893) Business-type activities Liquor 4,958,705 5,347,194 388,489 350,776 Sewer 2,334,000 2,160,808 (173,192) (208,696) Solid waste 2,630,874 2,714,617 83,743 443,813 Storm water 530,438 1,149,665 619,227 572,814 Water 1,626,279 2,538,001 911,722 845,937 Street light 173,604 232,990 59,386 61,085 Total net(expense)revenue $ 29,185,100 $ 16,543,206 (12,641,894) (11,542,975) General revenues Property taxes 13,044,381 12,916,115 Franchise taxes 244,839 262,148 Unrestricted grants 2,060,517 317,172 Investment earnings 937,632 1,206,287 Gain on disposal of capital assets 16,174 17,218 Total general revenues 16,303,543 14,718,940 Change in net position $ 3,661,649 $ 3,175,965 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 increase in unrestricted grants reflects the federal CRF grant received in 2020. -22- LEGISLATIVE UPDATES The 2020 legislative session, coming in the second half of the state's fiscal biennium, was expected to be a typical short session focused primarily on making relatively minor modifications to the biennial budget. Given a projected budget surplus of$1.5 billion going into the session, consideration of a substantial capital investment and bonding bill was also a potential focus. The start of the legislative session in February was followed by a series of significant events that changed the course of the session, including a world-wide health pandemic, the death of George Floyd while in police custody and the ensuing protests and unrest, and a hotly contested national election. On March 13, 2020,the Governor issued an executive order declaring a peacetime emergency,giving his administration the ability to quickly impose restrictions and measures aimed at mitigating the COVID-19 outbreak. By early May, the state's budget outlook had changed from a robust surplus to a projected deficit of $2.4 billion. The legislative session ultimately encompassed an unprecedented seven special sessions, more than double the previous state record of three,with the final special session in mid-December. In the end, a $1.87 billion omnibus bonding bill was passed that included $1.36 billion in general obligation state bonding for capital improvements, $31.0 million in supplemental General Fund budget spending, and provisions for tax relief and economic assistance. The session also yielded a new Police Accountability Act, and a$217.0 million economic relief package to help businesses negatively impacted by the pandemic. The following is a brief summary of legislative changes from the 2020 session or previous legislative sessions potentially impacting Minnesota cities. Coronavirus Aid, Relief, and Economic Security (CARES) Act — The CARES Act provided federal economic relief to protect the American people from the public health and economic impacts of COVID-19. Minnesota received approximately$2.2 billion in funding under the CARES Act. When the first legislative special session ended without an agreement on the distribution of approximately $841.5 million of federal Coronavirus Relief Fund (CRF) funding earmarked for Minnesota local governments, the Governor distributed the funds by executive order based on the framework of the legislative agreement debated during the first special session. This resulted in $350.4 million being distributed directly to Minnesota cities with populations equal to or greater than 200. The funds were authorized for use for unbudgeted costs related to the COVID-19 pandemic, but not to replace lost revenues. In accordance with CARES Act provisions,the CRF funding was available to cover costs that; 1) were necessary expenditures incurred due to the public health emergency related to COVID-19; 2)were not accounted for in the entity's budget most recently approved as of March 27, 2020; and 3)were incurred during the period from March 1, 2020 through December 31, 2020 (the availability period end date was revised by the state to November 15,2020 for Minnesota cities). Emergency Small Business Assistance Program — The Legislature created a program to appropriate $60.0 million of federal CRF funding to make grants available through the Minnesota Department of Employment and Economic Development for eligible small businesses impacted by COVID-19. Small businesses employing up to 50 full-time employees are eligible to receive grants of up to $10,000. The allocation is split between the metro area and greater Minnesota, with specific allocations for businesses owned by minorities, veterans, and women. $18.0 million of the allocation is earmarked for businesses with 6 or less employees. Workers' Compensation Claims — COVID-19 Presumption — The Legislature adopted several new provisions to state unemployment statutes related to COVID-19, including a presumption that an employee who contracts COVID-19 has an "occupational disease" arising out of, and in the course of, employment if the employee works in one of the specified occupations and has a confirmed case of COVID-19. Covered occupations include nurses, healthcare workers, and workers required to provide childcare for first responders and healthcare workers under Executive Orders 20-02 and 20-19. The COVID-19 presumption provision sunsets on May 1,2021. -23- Bonding Bill — The 2020 bonding bill provided financing for approximately $1.36 billion of projects. Some of the more significant appropriations for local infrastructure included: $105 million in undesignated grants for local road improvement and bridge replacement; $100 million for water infrastructure and point source implementation grants; $25 million for state match of federal grants for public facilities improvements, $20 million for natural resource asset preservation, $17 million for flood control mitigation, $15 million for the Local Government Roads Wetlands Replacement Program; $5 million for Metropolitan Council inflow and infiltration grants; and $5 million for metropolitan regional parks and trails. The bill also included funding for a number of state initiatives, including: $300 million in trunk highway bonds for the improvement of the state trunk highway system; $145 million in appropriation bonds to fund the infrastructure and capital needs of the Minnesota Housing Finance Agency, Minnesota Pollution Control Agency, and Minnesota Public Television; $30 million for state agency projects aimed at promoting racial equity, $29.5 million for the state Emergency Operations Center; and$16 million for the Minnesota Housing Finance Agency. The bill provides authority for eligible local governments to own and operate childcare facilities, and permits local governments to enter into management agreements with licensed childcare providers to operate in publicly-owned facilities. It also makes cities, counties, school districts, and joint powers boards located outside of the seven-county metro area eligible to apply for grants through the Greater Minnesota Childcare Facility Capital Grant Program. The bill also included a provision extending the equal pay certificate of compliance requirement to contracts by any public entity, including political subdivisions, using state general obligation bond proceeds for all or part of a capital project. Local governments will be responsible for requiring that bids include proper certification on applicable projects, which applies to projects for goods or services valued at more than$1 million utilizing appropriated bond proceeds on or after January 1,2022. Elections —A number of measures were passed to help ensure the safe and secure conduct of the 2020 state primary and general elections, including; allowing for the processing of absentee ballots to begin 14 days prior to the date of the election, extending the period during which absentee ballots could be processed for 2 days following the election, accepting electronic filings for affidavits of candidacy or nominating petitions, and specifying that municipalities were to use schools as polling places only when no other public or private location was reasonably available. Funds from the federal Help America Vote Act were made available for modernizing, securing, and improving election facilities, a portion of which was made available for grants to local governments to fund activities prescribed by this program. Minors Operating Lawn Care Equipment — Effective May 28, 2020, Minnesota Statutes lowered the employment age for operating lawn care equipment to age 16. Minors aged 16 and 17 must be trained in the safe operation of the equipment and wear appropriate personal protective equipment when operating the lawn care equipment. The exception under this statute applies only to minors directly employed by golf courses, resorts, rental property owners, or municipalities to perform lawn care on golf courses, resort grounds,rental property, or municipal grounds. Open Meeting Law Exception — The interactive television provision of the Minnesota Open Meeting Law was amended to allow for participation in meetings by interactive electronic means, such as Skype or Zoom, without requiring that an elected official be advised to do so by a healthcare professional for personal or family medical reasons. This allowance is available only when a national security or peacetime emergency has been declared and may be used up to 60 days after the emergency declaration has been lifted. Whenever public meetings are held via interactive electronic means of this type, votes must be conducted by roll call and be recorded in the minutes. Expanded Authority for Electronic Signatures During COVID-19 — Effective May 17, 2020, cities are allowed to accept certain documents, signatures, or filings electronically, by mail, or facsimile during the COVID-19 pandemic, including; planning and zoning applications and permits; land use documents; documents requiring the signature of licensed architects, engineers, land surveyors, geoscientists, or interior designers; applications for birth or death certificates; or recording notary commissions. This accommodation expires January 16, 2021, or 60 days following the termination of the peacetime public health emergency. -24- Solid Waste Recycling Exemption—The requirement that not more than 15 percent of mixed municipal solid waste received by recycling or composting facilities be disposed of, rather than recycled or composted, is suspended as long as the need for the exception is triggered by operational changes implemented to address the COVID-19 pandemic. Pension Changes — Effective January 1, 2021, the maximum lump-sum pension amount for volunteer firefighters is increased from $10,000 to $15,000 per year of service. Municipalities are permitted to split state fire aid received between its career firefighters and its affiliated volunteer firefighters, but only if the amount allocated to the career firefighters is approved by the membership of the volunteer firefighter relief association. Any aid allocated to career firefighters must be used to pay the Public Employees Retirement Association (PERA) employer contributions on their behalf within 18 months of the transfer or be returned to the relief association. Police Accountability Act — The Legislature passed the Police Accountability Act, which enacted a number of changes to laws governing police conduct,training, and oversight.Among the more significant changes adopted were: • Defined and authorized "public safety peer counseling" and "critical incident stress management,"and classifies information shared in these settings as private data. • Established an Independent Use of Force Investigations Unit within the Bureau of Criminal Apprehension to investigate all officer-involved deaths in the state, as well as criminal sexual assault allegations against peace officers, effective August 1,2020. • Authorized statutory or home rule charter cities to offer incentives to encourage a person hired as a peace officer to be a resident of the city. • Limited the use of certain restraint methods by peace officer unless the use of deadly force is authorized in a given situation. • Established and modified provisions related to law enforcement use of deadly force. • Defined and prohibited"warrior-style"training for peace officers. • Established a 15-member "Ensuring Police Excellence and Improving Community Relations Advisory Council" under the Police Officer Standards and Training (POST) Board, to assist the POST Board in maintaining policies and regulating peace officers in a manner that ensures the protection of civil and human rights. • Established a duty for peace officers to intercede when another officer is using excessive force and report incidents of excessive force to supervisors. -25- THIS PAGE INTENTIONALLY LEFT BLANK ACCOUNTING AND AUDITING UPDATES The following is a summary of Governmental Accounting Standards Board (GASB) standards expected to be implemented in the next few years. Due to the COVID-19 pandemic, the GASB has delayed the original implementation dates of these and other standards as described below. 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 June 15,2021. -26- GASB Statement No. 91,Conduit Debt 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. 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 15,2021. Earlier application is encouraged. -27- GASB Statement No. 92, Omnibus 2020 The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics and includes specific provisions about the following: • The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases, for interim financial reports • Reporting of intra-entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other post-employment benefit (OPEB)plan • The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for post-employment benefits • The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to post-employment benefit arrangements • Measurement of liabilities (and assets, if any) related to asset retirement obligations in a government acquisition • Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers • Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature • Terminology used to refer to derivative instruments The requirements of this statement are effective for fiscal years beginning after June 15, 2021. Earlier application is encouraged. GASB Statement No.96,Subscription-Based Information Technology Arrangements This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87,Leases, as amended. An SBITA is defined as a contract that conveys control of the right to use another party's (an SBITA vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. Under this statement, a government generally should recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability. This statement provides an exception for short-term SBITAs with a maximum possible term under the SBITA contract of 12 months, including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability,and other essential information. The requirements of this statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. -28- GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an Amendment of GASB Statement No. 14 and No. 84, and a Supersession of GASB Statement No. 32 The primary objectives of this statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3)enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The requirements of this statement that (1) exempt primary governments that perform the duties that a government board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans, and (2) limit the applicability of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74, respectively,are effective immediately. The requirements of this statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15,2021.For purposes of determining whether a primary government is financially accountable for a potential component unit,the requirements of this statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021. Earlier application of those requirements is encouraged and permitted by requirement as specified within this statement. -29- CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA Special Purpose Audit Reports Year Ended December 31,2020 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31,2020 Table of Contents Page Schedule of Expenditures of Federal Awards 1 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 2-3 Independent Auditor's Report on Compliance for Each Major Federal Program;Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 4-6 Independent Auditor's Report on Minnesota Legal Compliance 7 Schedule of Findings and Questioned Costs 8-10 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Schedule of Expenditures of Federal Awards Year Ended December 31,2020 Pass-Through Entity Federal Identification Federal Federal Grantor/Pass-Through Grantor/Program Title CFDA No. Number Expenditures Executive Office of the President—Office of National Drug Control Policy Passed through the City of Eagan High Intensity Drug Trafficking Areas Program 95.001 $ 926 U.S.Department of Housing and Urban Development Passed through Dakota County Community Development Agency Community Development Block Grants/Entitlement Grants 14.218 1,132 U.S.Department of Justice Direct Program Bulletproof Vest Partnership Program 16.607 2,899 U.S.Department of Transportation Passed through the City of Mendota Heights Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 1,197 U.S.Department of the Treasury Passed through the State of Minnesota— Department of Management and Budget COVID-19—Coronavirus Relief Fund 21.019 SLT0016 1,723,785 U.S.Election Assistance Commission Passed through Dakota County COVID-19—2018 HAVA Election Security Grants 90.404 7,828 Total federal awards $ 1,737,767 Note 1: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the OMB's Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from the amounts presented in,or used in the preparation of,the City's basic financial statements. Note 2: Unless noted in the table above,the pass-through entities use the same CFDA numbers as the federal grantors to identify these grants,and have not assigned any additional identifying numbers. Note 3: The City did not elect to use the 10 percent de minimis indirect cost rate. Note 4: Unaudited Disclosure—The City received donated personal protective equipment(PPE)with an estimated value of less than $2,000.The City was unable to determine whether federal dollars were used to purchase the donated PPE. -1- 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 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, 2020, 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 11,2021. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements,we considered the City's internal control over financial reporting(internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis.A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore,material weaknesses or significant deficiencies may exist that have not been identified. We did identify one deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as finding 2020-001,that we consider to be a material weakness. (continued) -2- 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 financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CITY'S RESPONSE TO FINDING The City's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. 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. Wa'1�7, W0u , Minneapolis,Minnesota May 11,2021 -3- PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA KR William J.Lauer,CPA James H.Eichten,CPA C ERT IFIED PUBLIC Aaron J.Nielsen,CPA A C C OUNTANTS Victoria L.Holinka,CPA/CMA Jaclyn M.Huegel,CPA Kalen T.Karnowski,CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;REPORT ON INTERNAL CONTROL OVER COMPLIANCE• AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE To the City Council and Management City of Farmington,Minnesota REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM We have audited the City of Farmington,Minnesota's (the City) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, 2020. The City's major federal programs are identified in the Summary of Audit Results section of the accompanying Schedule of Findings and Questioned Costs. MANAGEMENT'S RESPONSIBILITY Management is responsible for compliance with federal statutes,regulations, and the terms and conditions of its federal awards applicable to its federal programs. AUDITOR'S RESPONSIBILITY Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above,that could have a direct and material effect on a major federal program, occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our qualified opinion on compliance for major federal programs.However, our audit does not provide a legal determination of the City's compliance. (continued) -4- 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 BASIS FOR QUALIFIED OPINION ON CORONAVIRUS RELIEF FUND-CFDA NO.21.019 As described in the accompanying Schedule of Findings and Questioned Costs, the City did not comply with requirements regarding allowable costs for Coronavirus Relief Fund — CFDA No. 21.019, as identified in finding 2020-002. Compliance with such requirements is necessary, in our opinion, for the City to comply with the requirements applicable to that program. QUALIFIED OPINION ON CORONAVIRUS RELIEF FUND-CFDA NO.21.019 In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph,the City complied, in all material respects, with the types of compliance requirements referred to on the previous page that could have a direct and material effect on Coronavirus Relief Fund — CFDA No.21.019 for the year ended December 31,2020. REPORT ON INTERNAL CONTROL OVER COMPLIANCE Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to on the previous page. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances, for the purpose of expressing an opinion on compliance for each major federal program, and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we have identified one deficiency in internal control over compliance that we consider to be a material weakness. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as finding 2020-002 to be a material weakness. CITY'S RESPONSE TO FINDING The City's response to the internal control over compliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The City's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly,we express no opinion on it. (continued) -5- PURPOSE OF THIS REPORT The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.Accordingly,this report is not suitable for any other purpose. REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE 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, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated May 11, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management, and was derived from and relates directly to, the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. i�lael , Kms , - Minneapolis,Minnesota May 11,2021 -6- 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 Ll 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, 2020, 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 11,2021. 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. iNa&'7, ?tel" , K ; /2.� ..& ' &., Minneapolis,Minnesota May 11,2021 -7- 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 Questioned Costs Year Ended December 31,2020 A. SUMMARY OF AUDIT RESULTS This summary is formatted to provide federal granting agencies and pass-through agencies answers to specific questions regarding the audit of federal awards. Financial Statements What type of auditor's report is issued? X Unmodified Qualified Adverse Disclaimer Internal control over financial reporting: Material weakness(es)identified? X Yes No Significant deficiency(ies)identified? Yes X None reported Noncompliance material to the financial statements noted? Yes X No Federal Awards Internal controls over major federal award programs: Material weakness(es)identified? X Yes No Significant deficiency(ies)identified? Yes X None reported Type of auditor's report issued on compliance for major programs? U.S.Department of the Treasury—COVID-19—Coronavirus Relief Fund Qualified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? X Yes No Programs tested as major programs: Program or Cluster(s) CFDA No. U.S.Department of the Treasury—COVID-19—Coronavirus Relief Fund 21.019 Threshold for distinguishing between type A and B programs. $750,000 Does the auditee qualify as a low-risk auditee? Yes X No -8- CITY OF FARMINGTON Schedule of Findings and Questioned Costs (continued) Year Ended December 31,2020 B. FINANCIAL STATEMENT FINDINGS MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING 2020-001 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. Questioned Costs—Not applicable. Context—The condition applies to multiple areas as noted above. Repeat Finding—This is a current year and prior year finding. Cause— The 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. View of Responsible Official and Planned Corrective Actions—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. The City has separately issued a Corrective Action Plan related to this finding. -9- CITY OF FARMINGTON Schedule of Findings and Questioned Costs(continued) Year Ended December 31,2020 C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE - U.S. DEPARTMENT OF THE TREASURY, PASSED THROUGH MINNESOTA DEPARTMENT OF MANAGEMENT AND BUDGET,CORONAVIRUS RELIEF FUND-CFDA NO.21.019 2020-002 INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE WITH FEDERAL ALLOWABLE COSTS REQUIREMENTS Criteria — 42 U.S. Code § 601(d)(1) requires the City to use the funds provided under this section to cover only those costs that are necessary expenditures incurred due to the public health emergency,with respect to the coronavirus pandemic. Condition — During our audit, we noted that the City charged costs to the federal Coronavirus Relief Fund program that did not meet the standard for an allowable cost as defined by 86 FR 4182 allowable cost standards. Questioned Costs—$58,018. Context — The City had charged unallowable costs to the program for 2 of 25 transactions tested. This was not a statistically valid sample. Repeat Finding—This is a current year finding. Cause—This was an oversight by city personnel. Effect—This is a potential violation of the award agreement. Recommendation — We recommend that the City review its internal control procedures relating to allowable costs for its Coronavirus Relief Fund federal program. View of Responsible Official and Planned Corrective Actions—There is no disagreement with the audit finding. The City will review and update its policies and procedures relating to allowable costs for its federal programs to ensure compliance with federal requirements, regulations, and the terms and conditions of federal awards in the future. The City has separately issued a Corrective Action Plan related to this finding. D. MINNESOTA LEGAL COMPLIANCE FINDINGS None. -10- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ® 43o Third St„ Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov Corrective Action Plans and Summary Schedule of Prior Audit Findings Year Ended December 31,2020 A. FINANCIAL STATEMENT FINDINGS MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING 2020-001 SEGREGATION OF DUTIES Finding Summary The City of Farmington, Minnesota (the City) has limited segregation of duties in a number of areas,due to the limited size of the City's Finance Department staff. Corrective Action Plan Actions Planned — 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. Official Responsible—Teah Malecha,Finance Director. Planned Completion Date—December 31, 2021. Disagreement With or Explanation of Finding—The City agrees with this finding. Plan to Monitor—Teah Malecha, Finance Director, will continue to work with staff and the City Council to develop controls to mitigate risks in areas where limited segregation of duties exists. -1- CITY OF FARMINGTON Corrective Action Plans and Summary Schedule of Prior Audit Findings(continued) Year Ended December 31, 2020 B. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE — U.S. DEPARTMENT OF THE TREASURY, PASSED THROUGH MINNESOTA DEPARTMENT OF MANAGEMENT AND BUDGET,CORONAVIRUS RELIEF FUND—CFDA NO.21.019 2020-002 INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE WITH FEDERAL ALLOWABLE COSTS REQUIREMENTS Finding Summary 42 U.S. Code § 601(d)(1)requires the City to use the funds provided under this section to cover only those costs that are necessary expenditures incurred due to the public health emergency with respect to the coronavirus pandemic. The City charged costs to the federal Coronavirus Relief Fund program that did not meet the standard for an allowable cost as defined by 86 FR 4182 allowable cost standards. The expenditures in question relate to two employees that did spend a portion of their time performing tasks that would be allowable costs under this program. However, these employees did not fall under the "administrative convenience" allowed for health or safety related employees, and adequate records were not kept supporting the amount of their salaries claimed for federal reimbursement that were for a "substantially different purpose" than their normal functions. The City had more than enough eligible costs that were not claimed for federal reimbursement to offset the questioned costs in this finding. Corrective Action Plan Actions Planned — In the future, the City will ensure that all costs claimed for federal program reimbursement meet federal allowable cost requirements, and are supported by adequate documentation. Official Responsible—Teah Malecha,Finance Director. Planned Completion Date—June 30,2021. Disagreement With or Explanation of Finding—The City agrees with this finding. Plan to Monitor — Teah Malecha, Finance Director, will continue to work with city personnel responsible for federal program oversight to ensure all expenditures for salaries claimed for federal reimbursement meet federal allowable cost requirements, and all salaries claimed are supported by adequate time and effort documentation. C. MINNESOTA LEGAL COMPLIANCE FINDINGS None. -2- CITY OF FARMINGTON Corrective Action Plans and Summary Schedule of Prior Audit Findings(continued) Year Ended December 31,2020 D. SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS FINANCIAL STATEMENT FINDING—MATERIAL WEAKNESS 2019-001 SEGREGATION OF DUTIES Repeat Finding—The City has limited segregation of duties in a number of areas, due to the limited size of the City's Finance Department staff. Actions Planned — 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. Current Status — The City continues its efforts to segregate duties as best it can within the limits of what the City considers to be cost-beneficial. See finding 2020-001 for the current status of this condition. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No audit findings were reported for the year ended December 31, 2019. The City did not require an audit of its federal awards expenditures for the year ended December 31,2019. -3- CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ® O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Dakota Meadows Schematic PUD Plan and Comprehensive Plan Amendment and Rezoning DATE: May 17, 2021 INTRODUCTION Attached,for city council review and action is the Schematic PUD Plan for the proposed Dakota Meadows development. This property is located east of Denmark Avenue and south of St, Michael's Church and Dakota Electric Association (see attached schematic plan). DISCUSSION Schematic Plan Review The subject property currently consists of three parcels totaling approximately 41 acres owned by Adelmann Family Beanfield Limited Partnership. The existing use of the property consists of cultivated farmland with approximately six acres of wetland being present on the southside of the property. The property is currently zoned R-3 (Medium Density Residential) and is guided for Medium Density Residential and Park/Open Space within the City's 2040 Comprehensive Plan. The proposed Schematic Plan shows the development of 110 single-family lots spread over the 41 acres for a net density of 3.6 units per acre. The property is currently zoned Medium Density Residential and comprehensively guided for Medium Density Residential and Park and Open Space. Applications for Rezoning and Comprehensive Plan Amendment have been received and are requesting rezoning of the property to R-2 (Low/Medium Density Residential) and amending the 2040 Comprehensive Land Use Plan from Medium Density Residential and Park/Open Space to Low Medium Density Residential. This is discussed further below. The proposed PUD minimum lot standards are as follows: • Lot widths: 45'and 55' (minimum standard lot in R-2 zone is 60'). • Lot areas will be between 5,850 square feet and 7,150 square feet in area (minimum standard for lot area in R-2 zone is 6,000 square feet). • Front yard setback: 25 feet(minimum in R-2 zone is 20 feet) • Rear yard setback: 20 feet(minimum in R-2 zone is 6 feet) • Side yard setback: 6 feet(minimum in R-2 zone is 6 feet) The Schematic Plan shows that 45% (50 lots) of the lots would consist of the 45 foot wide lots and 55% (60 lots) would consist of the 55 foot wide lots. A 2.1 acre park is located near the southeast corner of the proposed development. The Existing and Proposed Park, Trail and Open Space Plan within the city's 2040 Comprehensive Plan has identified a neighborhood park at this location. Trails are shown along the east side of Denmark Avenue, and along the northern and southern boundaries of the development. The portion of trail on the northern boundary of the development identified as "Future Trail By Others" can be removed as it is located on property owned by the railroad. The railroad company will likely not allow a trail to be placed on property that they own. Access to this development is proposed from Denmark Avenue. A secondary emergency access is shown towards the southern end of the development near the wetland area. The secondary access would consist of an enhanced trail section that would provide emergency access in and out of the site from Denmark Avenue to the internal cul-de-sac. The emergency access would have to be gated and closed to motorized vehicle of the general public. Based on initial discussions with Dakota County, the two accesses as shown on the Schematic Plan would be acceptable. This Schematic Plan is scheduled to go to the Dakota County Plat Commission on May 12, 2021. The Schematic Plan shows three road stubs, one to the property to the north owned by the Dakota County CDA, one to the property to the south owned by Bernard Murphy Farms, LP. and one near the northeast corner of the development to provide future access to the north. All roads within the development are proposed to be public streets and will have to meet the minimum standards for a residential street section. Comprehensive Plan and Rezoning As previously mentioned, applications for rezoning and comprehensive plan amendment have been made by Dakota Meadows, LLC for this property. The rezoning would be to R-2 (Low/Medium Density Residential) Planned Unit Development and the Comprehensive Land Use Amendment would be to change the land use designation to Low Medium Density Residential from Medium Density Residential and Park/Open Space. The comprehensive plan amendment has been submitted to the adjacent jurisdictions for the 60 day comment period as required by the Metropolitan Council. Planning Commission Review The Planning Commission did review the schematic plan as well as hold a public hearing for the proposed comprehensive plan amendment and rezoning at its regular meeting on May 11, 2021. The Commission voted 5-0 to recommend approval of the schematic plan and comprehensive plan amendment and rezoning to the City Council. BUDGET IMPACT NA ACTION REQUESTED Approve the following by separate motion: 1. The schematic PUD plan for Dakota Meadows contingent upon agreement from Dakota County on the proposed accesses for the development. 2. Resolution approving the comprehensive plan amendment for Dakota Meadows changing the land use guidance from Medium Density Residential and Park/Open Space to Low Medium Density Residential. 3. Ordinance approving the rezoning of the Dakota Meadows development from R-3 (Medium Density Residential)to R-2 (Low Medium Density Residential) Planned Unit Development. ATTACHMENTS: Type Description D Backup Material Schematic PUD Plan D Resolution Comp Plan Amendment Resolution D Ordinance Rezone Ordinance RESOLUTION NO. R24-21 AMENDING THE 2040 COMPREHENSIVE PLAN TO CHANGE THE LAND USE GUIDANCE FOR THE DEVELOPMENT KNOWN AS DAKOTA MEADOWS FROM MEDIUM DENSITY RESIDENTIALAND PARK/OPEN SPACE TO LOW MEDIUM DENSITY RESIDENTIAL 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 17th day of May, 2021 at 7:OOP.M. Members Present: Hoyt, Bernhj elm, Pearson, Porter, Wilson Members Absent: None Member Porter and Member Wilson introduced and seconded the following: WHEREAS, Dakota Meadows, LLC has petitioned for a Comprehensive Plan Amendment for the development known as Dakota Meadows. The subject property is depicted in the attached Exhibit A. The said request proposes that the land use guidance for the subject property be changed from Medium Density Residential and Park/Open Space to Low Medium Density Residential; and WHEREAS, the Planning Commission held a public hearing on the 11th day of May 2021 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 in Exhibit A changing the land use guidance from Medium Density Residential and Park/Open Space to Low Medium Density Residential. 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 depictedin Exhibit A changing the land use designation from Medium Density Residential and Park/Open Space to Low Medium Density Residential. The resolution adopted by recorded vote of the Farmington City open ses'' n on the 17th day of May, 2021. Mayor Attest to the 12-?'1 day of May, 2021. City Administrate SEAL j� SITE DATA: 7r GROSS AREA: ±41 ACRES WETLAND AREA: f6 ACRES(NOT DELINEATED) NET DEVELOPABLE AREA: -135 ACRES v DEDICATED PARK: -12.1 ACRES DEDICATED TRAIL CORRIDOR: -12.1 ACRES !3L NET AREA: -130.8 ACRES - •y�<.�: �d �: EXISTING ZONING: R-3 (6-12 UNITS/ACRE) I /� 2040 COMP PLAN: MEDIUM DENSITY RESIDENTIAL(6-12 UNIT5/ACRE) ji PROPOSED ZONING: R-2(3.5-6 UNITS/ACRE)PUD PROPOSED LAND USE: LOW MEDIUM DENSITY RESIDENTIAL(3.5-6 UNITS/ACRE) PROPOSED PUD MINIMUM LOT STANDARDS: WIDTH: 45', 55, i,- AREA: 5,850 SF, 7,150 SF FRONT SETBACK: 25' REAR SETBACK: 20' SIDE SETBACK: 6' PROPOSED LOTS: 110 1 r •- C !'[; n,n ° 45': 50(45X) 55': 60(55X) i A 41. L •� ' NET DENSITY: 3.6 UNITS/ACRE f i g g 4 PROPOSED ROW: 4,300 LF � s CONCEPT PLAN BASED ON AVAILABLE DATA NO ENGINEERING NO SURVEYING LIDAR TOPO USED WETLANDS HAVE NOT BEEN DELINEATED f '' I • '�?'' ey ' ` ..'` lt. )' 41 4, \tl ���Cy 1 G; j = ,'� /'r ,Ev - AIC• -PROPOSED TRAIL PROPOSED TRAIL/EMERGENCY ACCESS ———FUTURE TRAIL BY OTHERS �S •� td►%r. tr[ `•`�I- !I ` HOA OPEN SPACE TRAIL CORRIDOR(CITY) -12.1 ACRES _PARK (CITY) -12.1 ACRES I Y n I M PISNEERenenee71:,1g .•..,....,,.".°r"w+svm".o�...,,., ,m'N� �"` �� wm. CONCEPT PLAN 3 KURT MANLEY DAKOTA MEADOWS 1 w ] rnwuwra+.wnnnsmn CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA ORDINANCE NO. 021 -757 An Ordinance Amending Title 10 of the Farmington City Code, the Farmington Zoning Ordinance,Rezoning the Development Known as Dakota Meadows 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 on the attached Exhibit A from R-3 (Medium Density Residential) to R-2 (Low/Medium Density Residential)Planned Unit Development. 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. SECTION 3. This ordinance shall be effective immediately upon its passage. Adopted this 17th day of May 2021, by the City Council of the City of Farmington. CITY O MI G ayor ATTEST: dministrator Approved as to form the_ 18th day of May , 2021. Ci Atto y 011 Published in the Dakota County Tribune the qday of May 2021. ,.. -. 3 A `.'• r_ i 'r I� SITE DATA: GROSS AREA: ±41 ACRES WETLAND AREA: ±6 ACRES(NOT DELINEATED) NET DEVELOPABLE AREA: ±35 ACRES f �3 DEDICATED PARK: ±2.1 ACRES DEDICATED TRAIL CORRIDOR: ±2.1 ACRES -X—-- ��'g'•* e NET AREA: ±30.8 ACRES EXISTING ZONING: R-3(6-12 UNITS/ACRE) 2040 COMP PLAN: MEDIUM DENSITY RESIDENTIAL(6-12 UNITS/ACRE) PROPOSED ZONING: R-2} j i i 3 UNITS/ACRE) PUD PROPOSED LAND USE: L MEDIUM WDENSITY RESIDENTIAL(3.5-6 UNITS/ACRE) PROPOSED PUD MINIMUM LOT STANDARDS: o ; WIDTH: 45', 55' AREA: 5,850 SF, 7,150 SF FRONT SETBACK: 25` REAR SETBACK: 20' • ,1E"�' C _ 1 SIDE SETBACK: 6' nz r PROPOSED LOTS: 110 45': 50(45X) 55': 60 (55%) NET DENSITY: 3.6 UNITS/ACRE x�cwcr ff s..wocmx \, PROPOSED ROW. 4,300 LF 5h#� CONCEPT PLAN BASED ON AVAILABLE DATA y m^ I' gi0 a�, e "• K+- "� NO ENGINEERING NO SURVEYING LIDAR TOPO USED w • f. rkrt •R WETLANDS HAVE NOT BEEN DELINEATED PROPOSED TRAIL PROPOSED TRAIL/EMERGENCY ACCESS FUTURE TRAIL BY OTHERS HOA OPEN SPACE x t TRAIL CORRIDOR(CITY) ±2.1 ACRES s < ' 5 _ PARK (CITY) ±2.1 ACRES 910 v GB.QPIflC sc—IX ILEI' a PISNEERellginee ng 2°'�ciuipnu°"rcVV,I,'N4�1•,u1 `.µee19eei-�+ —rTrtr— •••• CONCEPT PLAN 3 KURT MANLEY DAKOTA MEADOWS (FU14 MrnG,v HciMFix.MN IM3n ww65tSQIA 1 OF 1 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 �I O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Comprehensive Plan Amendment and Rezoning-River's Edge Development DATE: May 17, 2021 INTRODUCTION Application has been made by Hunter Homes, LLC for a Comprehensive Plan Amendment and Rezoning for the proposed development known as River's Edge. DISCUSSION The City Council reviewed the schematic plan for the River's Edge development at its regular meeting on April 19, 2021. The schematic plan provides for 281 attached townhome units (updated schematic plan attached)spread over the 68 acres parcel. The property currently consists of three zoning districts and comp plan guidance's. These are: • The northern and central part of the site (27 acres) is zoned Parks and Open Space and is guided in the 2040 Comprehensive Plan as Park/Open Space. • The western portion of the site (15 acres) is zoned R-3 (Medium Density Residential) and is guided in the 2040 Comprehensive Plan as Medium Density Residential. • The eastern portion of the site (26 acres) is zoned R-5 (High Density Residential) and is guided in the 2040 Comprehensive Plan as High Density Residential. The applicant is requesting a Rezoning and Comprehensive Plan Amendment to rezone and re-guide the eastern 26 acres from R-5 (High Density Residential) to R-3 (Medium Density Residential) and High Density Residential to Medium Density Residential, respectively. The Comprehensive Plan Amendment is also to change the anticipated development staging in the 2040 Comprehensive Plan for the entire 68- acre parcel from post 2040 to 2020-2030. Planning Commission Review The Planning Commission did review and hold a public hearing regarding the proposed comprehensive plan amendment and rezoning at its regular meeting on May 11, 2021. The Commission voted 5-0 to recommend approval. BUDGET IMPACT NA ACTION REQUESTED Approve the following by separate motion: 1. Resolution amending the 2040 Comprehensive Plan to change the land use guidance for the eastern 26-acres of the development known as River's Edge from High Density Residential to Medium Density Residential and change the development staging for the entire 68-acre River's Edge parcel from post 2040 to 2020-2030. 2. Ordinance rezoning the eastern 26-acres of the development known as River's Edge from R-5 (High Density Residential)to R-3 (Medium Density Residential). ATTACHMENTS: Type Description D Backup Material Schematic PUD Plan D Resolution Comp Plan Amendment Resolution D Backup Material Comp Plan Map ❑ Ordinance Rezone Ordinance ❑ Backup Material Rezone Map X� I — / Hh �eos <�.1� s � i r r \ �(I/ O r CYI LLJ . N y At v �� Z, 806 W c }} y� D l l QI ) <? m ADO / -D co W � -6 191 s G� CZ) FTI� J0.-H3 HO3, 3 i� a iJJ'9ls i3 ndds x Ud wlo i \\ 'I 1J � fr. o 1 CL'606 X I RESOLUTION NO. R 2 5-21 AMENDING THE 2040 COMPREHENSIVE PLAN TO CHANGE THE LAND USE GUIDANCE FOR THE EASTERN 26 ACRES OF THE DEVELOPMENT KNOWN AS RIVER'S EDGE FROM HIGH DENSITY RESIDENTIAL TO MEDIUM DENSITY RESIDENTIAL AND CHANGE THE DEVELOPMENT STAGING FOR THE ENTIRE 68-ACRE RIVER'S EDGE PARCEL FROM POST 2040TO 2020-2030 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 17th day of May, 2021 at 7:OOP.M. Members Present: Hoyt, Bernhjelm, Pearson, Porter, Wilson Members Absent: None Member Wilson and Member Bernhj elm introduced and seconded the following: WHEREAS, Hunter Homes, LLC has petitioned for a Comprehensive Plan Amendment for the development known as River's Edge. The subject property is depicted in the attached Exhibit A. The said request proposes that the land use guidance for the eastern 26 acres of subject property be changed from High Density Residential to Medium Density Residential as well as to change the development staging for the entire 68-acre parcel from post 2040 to 2020-2030; and WHEREAS,the Planning Commission held a public hearing on the 11th day of May 2021 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 in Exhibit A changing the land use guidance from High Density Residential to Medium Density Residential and to change the development staging for the entire 68-acre parcel from post 2040 to 2020-2030. 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 in Exhibit A changing the land use designation for the eastern 26 acres from High Density Residential to Medium Density Residential and to change the development staging for the entire 68-acre parcel from post 2040 to 2020-2030. The resolution adopted by recorded vote of the Farmington City Counc' o ssion the 17th day of May, 2021. Attest to the /�.4ti day of May, 2021. ayor r IML.-I- — SEALi y Administrator River's Edge: 2040 Comprehensive Land Use Plan Current Land Use Amended Land Use r 50 so t. m r w Pios P/OS � P/OS PIGS `- COM COM MUCK ' .. I Pios PJSP Plos PSP, a MDR 47 .rimae L[63 "INDR yLi�1�,; Al D R yA''11 IIP _'JfL .JI IP ��'perwnys - Aa �L� '=7107 Sx11NE31OU P�P� PISP• ® s HDR HDR LDR- Low Density Residential [1.0-3.5 u/a] ® COM -Commercial MDR - Medium Density Residential [6.0-12.0 u/a] P/SP- Public/Semi-Public HDR - High Density Residential [12.0-40.0 u/a] P/OS - Park/Open Space MUCR- Mixed-Use (Comm./Res.) [6.0-40.0 u/a] i i CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 021 -758 I An Ordinance Amending Title 10 of the Farmington City Code, the Farmington Zoning Ordinance,Rezoning the Eastern 26 Acres of the Development Known as River's Edge THE CITY COUNCIL OF THE CITY OF FARMINGTON HEREBY ORDAINS AS FOLLOWS: i SECTION 1. Section 10-5-1 of the Farmington City Code is amended by rezoning the eastern 26 acres of property depicted on the attached Exhibit A fiom R-5 (High Density Residential)to R-3 (Medium Density Residential). i 1 SECTION 2. The Zoning Map of the City of Farmington, adopted under Section 10-5-1 of the FanningtonCity Code, shall be republished to show the aforesaid zoning. ! I SECTION 3. This ordinance shall be effective immediately upon its passage. I Adopted this 171h day of May,2021,by the City Council of the City of Farmington. CITY OF F NGT ayor ATTEST: y Administrator i a Approved as to form the 18th day_of May , 9021. Att ey Published in the Dakota County Tribune theme day of May, 2021. River's Edge: Re-Zoning Current Zoning Re-Zoning - - 5050 00, P/OS j - // � /;✓J � P/OS ssc r ssc - C,,-�^+•-• �-SPR I�ETST�ai�r _ ... _ �......._ '"'--. MU MU �I i i •1 _J i d _ R-2 R=2 Pios R-5 R-1 �A R=1 �A R`3 i lil- R-3 � , YYY A"- IL1fO '�^ RMS�Wj-kms - R-2 '�T�.dM,C. R 9rtgr R-343 Y ,F R_3 • , ; -s [ !�' �.!..+tea R=1 R=1 y —-- IF. tti i R-5 � R-5�' ' �a•i Parks and Open Space R-3 (Medium Density Residential) R-1 (Low Density Residential) R-5 (High Density Residential) R-2 (Low/Medium Density Residential) %/, SCC (Spruce Street Commerical) MU Mixed Use CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 iIII11111V�1 � ® 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 4th Addition DATE: May 17, 2021 INTRODUCTION M/1 Homes of Minneapolis/St. Paul LLC is proposing to plat 20 single-family lots within the Fairhill Estate at North Creek 4th Addition. The 20 lots are located towards the southeast corner of the development. DISCUSSION The 20 single-family lots are part of the 244 overall single-family lots that were proposed with the preliminary plat for this project. The Fairhill Estate at North Creek 4th 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: 1.435 acres Block 2 Area: 3.873 acres Total Outlot Area: 15.159 acres Total Right-of-Way: 4.393 acres Total Area: 24.86 acres As previously mentioned the Fairhill Estate at North Creek 4th Addition final plat will consist of 20 single- family lots. The average lot size is 11,560 square feet with the smallest lot being 8,986 square feet in size and the largest lot being 20,369 square feet in size. Additionally,the attached final plat shows 10 outlots (A-J). A description of the outlots are as follows: 0utlot A: Future platted lots Outlot B: Future platted lots 0utlot C: Future platted lots Outlot D: Future platted lots Outlot E: Private open space Outlot F: Future platted lots 0utlot G: Pipeline easement and trail corridor Outlot H: Future platted lots Outlot I: Storm water facility 0utlotJ: Future platted lots Transportation With the 4th Addition plat all remaining right-of-way within the development will be platted. Additionally, all roadways will be constructed in the 4th Addition with the exception of the portion of Clearwater Loop extending from Lot 1 of Block 1 and Lot 14 of Block 2 west to Colonial Trail as well as the cul-de-sac portion of Clearwater Loop on the west side of Colonial Trail. These portions of roadway will be constructed with the future 5th Addition (please see attached phasing map). The street section for Clearwater Loop is shown as a 50 foot right-of-way with a 30 foot wide roadway measured face of curb to face of curb. A temporary cul-de-sac will be provided until the remaining portion of this roadway is completed with the future 5th Addition. The street section for Colonial Trail is shown as a 66 foot right-of-way with a 34 foot wide roadway measured face of curb to face of curb. The street section for Crystal Terrace is shown as a 60 foot right-of-way with a 30 foot wide roadway measured face of curb to face of curb. As part of the 4th Addition, 194th Street will be connected to the existing portion of roadway within Empire Township. The street section for 194th Street is shown as a 60 foot right-of-way with a 30 foot wide roadway measured face of curb to face of curb. I t should be noted that 194th Street, within the 4th Addition,will be an emergency access only and will not be open to the general public. An emergency access gate will be installed at the boundary of the development. Five foot wide sidewalks will be provided on the east and south sides of Clearwater Loop as well as on both sides of Colonial Trail. The north side of 194th Street and the north side of Crystal Terrace will also have five foot wide sidewalk. An eight foot wide bituminous trail will be constructed through the gas easement(Outlot G)from the intersection of Colonial Trail and Crystal Terrace north to connect with existing trail. Engineering Review The Engineering Department has reviewed the Fairhill Estate of North Creek 4th Addition final plat and recommend approval 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 fees and costs paid. Planning Commission Review The Planning Commission reviewed the final plat pm May 11, 2021 and recommended approval with a 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, and it is attached. The Development Contract spells out the requirements for development of this land including timelines to complete platting process, defining development charges, and addressing construction of the public infrastructure required to serve the development together with the associated sureties. BUDGET IMPACT NA 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 4th Addition subject to the following contingencies: 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. 2) Adopt the attached Development Contract and authorize its execution contingent upon final edits by city staff and legal review. ATTACHMENTS: Type Description ❑ Backup Material Final Plat ❑ Backup Material Phasing map ❑ Backup Material Final Plat Resolution ❑ Contract Development Contract FAIRHILL ESTATE AT NORTH CREEK 4TH ADDITION KNOW ALL PERSONS BY THESE PRESENTS:That WWI Homes of MlnneaWliz/St.Paul,LLG a MlnFeso[a Ilmitee liability company,owner of[M1e CITY PIANNING COMMISSION,Clry OF FARMINGTON,STATE OF MINNESOTA —h,,deudbed property: ppoetl by the Planning Commission^f tM1eeryof Farmington,Mlnnemra ata regularmeeting[Hereof an the_ yof Oudot A,FAIRHILL ESTATE AT NORTH CREEK END AODNION,aaording to the rxoNetl plat thereat,Daka[a[aunty,Minnesota. ]O— to be sued ane platted as FAIRHILL ESTATE AT NORTH CREEK 4TH ADDITION and does hereby tleaicate to the Planning Commission,CIN of Farmiw-Minnesota public I.publicusee[M1e publirveyc w and th,drainage and utility—Nbbms as[reared by this plat. R: saitl AgAH sof Minneapolis/St.Paul,LLC,a Minn to limited liability comp Y. scausetltM1 pezents to be Chair,—, xgnee evils proal r afitb,msm_nay of Signed:Mn Hames of MlnneaWlH/SF.PaN,LLC Cm COUNCIL,CITY OF FARMINGTON,STAT[OF MINNESOTA IIIa as approved ane arreptea by[he OF,Council of tM1e CRY&Farm Bbg BY' peer vela mHTMA a pa�..F wmp was wdn roe P'. amn4 of Mmneuta SN"Ib,Semon'US.PE,Saba.zany City Counnl,City of Farmington.Minnesota RIF STATE Mayor COUNTYFOF Tnis instrument was aKk.HdgAJ before me an Ihis_day of _,hy 011 ISURVEYOR,COUNry DF DRACTA,STATE OF MINNESOTA a NO Homes ofMinneapolis/St.Paul,LLC,on behalf at the comp y I Hereby ur[ify U.,m accordance with Minn Sutear ,Sehon50S.011,Suba.11,Obb,pia,M1as been rewewM and approved rhi5 _nay or 20_. By: x ryPubkc, Dusty,Minnesota NotaryPrintetl Name Totld B.Tolfelsan,Dakota County Surveyor My Commission Fx'I— COUNTY PROPERTY TAXATION AND RECORDS,COUNTY OF DAKOTA,STATE OF MINNESOTA R.Salo tlo M1ereby<enrv[Hat[Ms plat was DreWretl by me or under mytllreasupervislan;that am a duty Licensed Land Surveyor In tMa9tate or Mlnnewta;that rnls pletkarumarepresenraNan oftheboundarysu1,II,atall matM1emaNnl data and labels are mrrenty ^ n hd9,taxes payable ln[heyear3O—on the land hereinb—aesMhed nave peen aesl don tM1k plat;that all manumen[s de M1ls ty [ year;tM1at all water Wia�uap�pMapant taaMin^grata sw[pm:Sxmon:n.lz,mere are Fa eegnwent uKea dna�anneremeree mia_aav or gna[e pitted onr plat M1ave been,orwlll he correct u wltnln one bouneades aIW wet lanes,av etlinetl in—F-1.statutes,—50SD1,sued 3,as ofrM1e date afthiz—U i-Ib,,are 20— labeled On Ne amt;and all publk ways are Shown and labeled on Nk R.I. D-d IN, day^r A.Koe[ne,Direttor, epartment or PropeM Tavation and Records Mah R.Salo,UcKb-land Surveyor,MIFFesota Ucense No,13933 COUNTY RECORDER,COUNTY OF DAKOTA,STATE OF MINNESOTA herebyttrdry[ha[[M1isplat or FAIRNILL ESTATE AT NORTH CREEK 4TH ADDITION was Rlea in me olha of the—ty RK.—for public COUNTY OF INNESOTA dayar z0�a[_o'clock_ ,antl was duly liletl In Book o Placa;Pagehs s ocummt Number Theforegoing lnsarumem was ahnowledgee before me Mls day of Eby Mark R.Sala. Amv A Koerte,Dakala County F—Id., Public, county.Minneuta 1111,ri^tetl Name SAMBATEK,INC. ENGINEERINGJI.ANNING AND LANDSURMING SHEET 1 OF 3 SHEETS FAIRHILL ESTATE AT NORTH CREEK 4TH ADDITION IN dr58'01 23 ------------- C.Bg.—N6S*Z3'14'W 2 G—oz • ----- R-135.00 I L 100. DETAIL"A" R-300 '• `TJ��' /L�13.89 'W rg.-N5745'is -9&45 S7 IS 'E' x4to 17.20.� OUTLOT H 2 OUTLOT J 71. % S54*50'05*E N51'37*7E 3g 1 G3 :j 40 -_183.37 5732I!rl2'E 99'83S89*40F24*E i 49 Lawn' S 7841ms. 'M*E-.-. NOT TOSCALE "W.-0 00 -11D.44.., X11'18'29 OUTLOT 0. F 711*18! 0 7 OUTLOT A 6 I N ICO 7 Y/;p 4q 14 13 lz 11 10 E, 1.1 OUTLOT I ,, il k — V _ NU, A OUTLOT B Sam 'k OUTLOT H ————————— N89*59'1"944.55 N7 0 A 0 BIDS R. N14.30'04•W _514WO4"E 10.00 0. ...... WAY NZZ*M'41*W 10.00 OUTLOT F,A - b. .1 it, :I- ��UUIL E --I94TH ST.W. OUTLOT C T ACE VICINITY MAPfa -ERRTA'-' 9. yS OUTLOT D SEC.19,T.114 N,R.19 W NN -1-7=7fr ------- --- NORTH N8959'19•W Mazz so 1. r 7 lC! SITE 0 C—ESSECTION MRNER MONUMENT 7- 0 DENOTES/2 INCH V14SNCH IRON MKINUMENTSET ARCED P LICENSE NO.43933 ROUND ML/2 NON BY 14 INCN IRON MONUMENT ARKED BY UCENSE NO.46530 T.ESO 11-JUME.I.—I.B.—S—AT NORTH CREEK 3RO ADDITION 15 ASSUMED TO—A BEARING FNDRTHHDEGREES59MINUM19 SECONDS— SAM BATEK,INC. NOTTOSCALE ENGINEERING,PLANNING AND LAND SURVEYING SHEET 2 OF 3 SHEETS FAIRHILL ESTATE AT NORTH CREEK 4TH ADDITION L-100. 2' I �.1�/ a4r45'OY 7 1 I � �� /d1y'i9• C.Brg-N57'45'IB'W /�� 2 C.-68.45_.. 1 l�i� // INSET L�86.11 A..5691.23• C.Br6.-N65'23'14'W Cz0.00.. •.•�\y'8 /;9d1•''"u�nm r C.-52.48 ,_ <yi r- 3 a I a r+9z I 6 31 4 i e gl 1 �I wvx'tv_tr J y -- o 1 0 Nggg1'03'E 386.83rwao Faw � __ _ r -tw.z - - p---1 81 5I 8 n r----i i--- 1 1 I I 1 1 Is o 1 1 1 I I 1 1' 1 11 2 g 1 0s1 Ik I IV BI Im 3 4 all II 5 1 6 I 11 USI 1 Fg 1 1I 1 / uee v- I NORTH .L` I 0 SO100 FEETSCALE INXu-a.oON._ L____J L av-__'� 4'•;�,ie.a' L,_�1 L / ,ry .0 O:WNO ES SECTION CORN ON MONUMENT B .y,pyty t1..03 -�, #N,'j..•,�� (,V /f11 t �\� ARE0. I _ O pENOTESIEi INCHBY16INCH IRON MONUMENT SET 8 0 - _ "�'M AI - ( \� EAmr-`ti ND MAxK O BY LICENSE NO.43933 r- .z,Tve"Sr-1 f sv''3'p°'x 13g el ab ^\\\ `�`"' iWxo MPRKEDBY II<ENSE NO.ans]D MONUMENT r` f�� \\ ` \� DENOTES 1R INCHUY14INCH IRON MONY I I 18H. R 1 1 T„u°`'�115 r - 1 1 e• \\ 5�.; I \\ uTH UNE or ounoTq FaIRHaL ESTATE Ar nTSFOi<RREN BRO ADDITION IS-UMEO TO HAVEA j I I j l 8I I 10 g \\ tl�V II p'xj K� sECONOSWEn.NOR TH 89 DEGREES 59 MINUTES 19 14 ti13 12 1 1-11iI'iiIlIII ne30.1t J2si Ix �\\\V\\\�W�•N,�Z_w_.wt� p}5bpz¢aIs�S4/��yT^ fY4 qgn/6'E YYvsCRS ORaINAGEANO unvSSEASIEII M ENTS ARE sxowxTXus: wC,roscALEI-__--- -- _________ '_ - __L____J 11 m I I zD BEING FNE FEET IN WIDTH AND ADJOINING SIDE LOT ONES AND BEING IO FEET IN WIDTH AND ADJOINING PUBLIC WAYS AND NUE LOT LINES,UNLESS OTHERMASE AND ON THIS Pwi. SAMBATEK,INC. ENGINEERING,PLANNING AND LAND SURVEY I NG SHEET 3 OF 3 SHEETS 1 1 ON!:'-i'rNSIH 31V1 t'. L v c 0 O O (B a+ 7 -0 'd N 7 Q t LO LL t r.+ LO 0 : _ C NN z t0 r+ o � 3 r 'r ✓rT ,x I �I I I I RESOLUTION NO. R26-21 APPROVING FINAL PLAT AND AUTHORIZING SIGNING OF FINAL PLAT FAIRHILL ESTATE AT NORTH CREEK 4th 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 17th day of May, 2021 at 7:00 P.M. Members Present: Hoyt, Bernhj elm, Pearson, Porter, Wilson Members Absent: None Member Porter and Member Bernhj elm introduced and seconded the following: WHEREAS, the final plat for Fairhill Estate at North Creek 4th 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 July 14, 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 Coun ' s n the 17th day of May, 2021. a or Attested to the :i? ti day of May, 2021. SEAL City Administrator DEVELOPMENT CONTRACT AGREEMENT dated this of May 2021 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 4th 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 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 of the following conditions have been satisfied: a) This Agreement has been fully executed by both parties submitted for recording with the Dakota County Recorder's Office, 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,and e) A deed shall be provided for Outlots G and I 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 4th ADDITION is part of a multiple phase development and will be developed in accordance with Plans A— C. 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. 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 8 1/2"x 14"scaled map of the plat and land within 350'of the Plat containing the following information: 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 Plans 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: Plan A—Final Plat(Approved May 17, 2021) Plan B—Final Construction Plans and Specifications(Including Soil Erosion and Sediment Control, Grading Plans and Landscape Plans) Plan C—Zoning/Development Map 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: 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 g) Erosion and Sediment Control,Site Grading and Stormwater Treatment h) Underground Utilities i) Setting Iron Monuments j) Surveying and Staking k) Sidewalks and Trails 1) Landscaping and Screening collectively the"Improvements". 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 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 been installed. 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 Plan 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. 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 MPCA 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 Development. Satisfied with the First and Second Additions. 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 maybe met by placing trees in the front of private lots. If the Developer uses lot frontage 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 costs. 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, 2022. 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 G and I shall be deeded to the city. The deed shall be recorded with the Dakota County Recorder with the plat mylars. Improvements to Outlots G and I shall be completed by the developer as required under the Plans. 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. 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 15t Addition. No additional model homes will be constructed in the 0 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 caused by the City, Developer, its contractors,subcontractors, materialmen, employees,agents or third parties. F. Retaining walls that require a building permit shall be constructed in accordance with plans and specifications 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. 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: $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. 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) 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. 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 full 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 2021 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. 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. Oversizing 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. Security. 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$ . The amount of the security is based on the 125%of the estimated construction costs as 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 C). 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 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 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. 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. 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 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, 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 SIGNATURE PAGE FOR THE CITY CITY: CITY OF FARMINGTON By: Joshua Hoyt, 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 Joshua Hoyt, 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 SIGNATURE PAGE FOR THE DEVELOPER DEVELOPER: M/I HOMES OF MINNEAPOLIS/ST.PAUL,LLC By: John Rask Vice President of Land STATE OF ) (ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 20_, by ,the of a on its behalf. Notary Public DRAFTED BY: CITY OF FARMINGTON 430 Third Street Farmington, MN 55024 Telephone: (651) 280-6800 EXHIBIT A LEGAL DESCRIPTION Outlot A, FAIRHILL ESTATE AT NORTH CREEK 3RD ADDITION, according to the recorded plat thereof, Dakota County, Minnesota. EXHIBIT B Fee Calculations EXHIBIT C 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. The draft must: a) Bear the clause, "Drawn under Letter of Credit No. ,dated ,20_, 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 any way 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. [NAME OF BANK] By: [name] Its: [identify official] CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 ®�� O Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director SUBJECT: 2020 Public Works Annual Report DATE: May 17, 2021 INTRODUCTION May 16th marks the start of Public Works Week across the nation. We would like to take time to highlight the accomplishments of the department for 2020 and note some of the more substantial initiatives planned for 2021 and 2022. DISCUSSION Public Works is a very diverse department encompassing several divisions to provide basic road and utility services to the city. The eight divisions are; streets,water, sewer, storm water, solid waste, engineering, natural resources, and fleet. Staff will make a presentation on a variety of topics at the meeting and answer any questions you may have. BUDGET IMPACT N/A ACTION REQUESTED No action is required. This is informational only. 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