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HomeMy WebLinkAbout06.06.22 Council Packet CITY OF Meeting Location: FARMINGTON Farmington City Hall 430 Third Street ✓"` Farmington,MN 55024 CITY COUNCIL REGULAR MEETING AGENDA June 6, 2022 7:00 P.M. Action Taken 1. CALL TO ORDER 7.00 P.M. 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. A PPR 0 VE A GENDA S. ANNOUNCEMENTS I COMMENDATIONS a) Proclaim Juneteenth Proclamation for the City of Farmington - Administration Proclaimed b) Adopt Resolution and Present Check to Rambling River Center—Liquor Operations R41-22 c) Dakota County Farmington Library Presentation Information Received 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 May 2, 2022, City Council Work Session and Meeting Minutes— Administration Approved b) Approve May 16, 2022, City Council Work Session and Meeting Minutes— Administration Approved c) Approve Temporary On-Sale Liquor License—Rotary Club of Farmington— Administration Approved d) Approve Temporary On-Sale Liquor License—Farmington Lions Club— Administration Approved e) Adopt Resolution Accepting Grant from CenterPoint Energy - Administration R42-22 f) Adopt Resolution Accepting Donation from Happy Harry's Furniture to the Rambling River Center—Parks and Recreation R43-22 g) Adopt Resolution Accepting Donations from the Farmington VFW and Veteran's Steak Fry to the Rambling River Center—Parks and Recreation R44-22 h) Partial Release of Land from Development Contract—Outlot B, Troyhill 3`d Addition—Community Development Approved i) Approve Development Contract—Vermillion Commons—Community Development Approved j) New Software Proposal—Liquor Operations Approved k) Approve Bills - Finance Approved 1) Approve Staff Changes and Recommendations—Human Resources Approved REGULAR AGENDA 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTSAND COMMUNICATIONS a) 2021 Management and Annual Financial Report- Finance Accepted 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution Award of Sale Series 2022A G.O. Bonds - Finance R45-22 13. CITY COUNCIL ROUNDTABLE 14. ADJOURN CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Lynn Gorski, City Administrator SUBJECT: Proclaim Juneteenth Proclamation for the City of Farmington-Administration DATE: June 6, 2022 INTRODUCTION The City has been asked to consider making a proclamation for Juneteenth. DISCUSSION Juneteenth is short for June Nineteenth.Juneteenth marks the day when federal troops arrived in Galveston, Texas in 1865 to take control of the state and ensure that all enslaved people were free.The troops'arrival came over two years after the signing of the Emancipation Proclamation by Abraham Lincoln.Juneteenth honors the end to slavery in the United States. Juneteenth is the longest-running African American holiday. On June 17, 2021,Juneteenth became an official federal holiday. BUDGET IMPACT N/A ACTION REQUESTED Proclaim June 19, 2022, as Juneteenth Day and help us celebrate and honor the holiday. ATTACHMENTS: Type Description ❑ Exhibit Juneteenth Proclamation CITY OF FARMINGTON PROCLAMATION June 19, 2022, as Juneteenth Day WHEREAS,The United States of America is a nation founded on the principles of liberty and justice for all, and the Civil War was fought to ensure that freedom would be shared by all Americans; and WHEREAS,On January 1, 1863,Abraham Lincoln signed the Emancipation Proclamation, which gave freedom to the slaves in the rebelling states; and WHEREAS, Freedom became a reality for enslaved Black people in Texas on June 19, 1865,two years after the Emancipation Proclamation was signed; and WHEREAS,June 19th has a special meaning to African-Americans, and is called "JUNETEENTH" by combining the words June and Nineteenth; it has been celebrated by the African-American community for over 150 years; and WHEREAS,Juneteenth is the oldest known remembrance of the ending of slavery, celebrating freedom and justice for all Americans,and emphasizing education, achievement, and tolerance; and WHEREAS,Communities throughout Minnesota and the United States unite on this day to honor freedom and encourage respect,tolerance, and the acceptance of all cultures. THEREFORE, I, Mayor Hoyt, Mayor of the City of Farmington, do hereby proclaim Sunday,June 19, 2022, as: JUNETEENTH FREEDOM DAY in the City of Farmington, Minnesota. PROCLAIMED this 6th day of June 2022. A/Z Z Joshu oyt, Mayo Date CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 awovog u Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Joshua Solinger, Liquor Operations Manager SUBJECT: Present Check to Rambling River Center- Liquor Operations DATE: June 6, 2022 INTRODUCTION Farmington Liquors held a round up,wine tasting and silent auction to help Rambling River Center(RRC) raise funds for a new 12 passenger van.This van will take members on trips,tours and senior outings. DISCUSSION 100% of the donations from the round up,wine tasting and silent action were donated to the RRC's new van expenditure. The total amount raised by Farmington Liquors was $14, 531.30 BUDGET IMPACT N/A ACTION REQUESTED Please help in presenting the check of$14,531.30 to the Rambling River Center to help with their van purchase and approve the resolution to accept the donation. ATTACHMENTS: Type Description D Resolution Resolution Accepting the Donation from the Farmington Liquors Fundraiser RESOLUTION NO. R41-22 ACCEPTING DONATION OF$14,531.30 FROM THE FARMINGTON LIQUORS FUNDRAISER TO THE RAMBLING RIVER CENTER 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 6th day of June 2022 at 7:00 p.m. Members Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Members Absent: None Member Porter and Member Wilson introduced and seconded the following: WHEREAS, a donation of$14,531.30 was made by the Farmington Liquors fundraiser to the Rambling River Center; and, WHEREAS, it is required by State Statute that such 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 generous donation of $14,531.30 from the Farmington Liquors to the Rambling River Center from a fundraiser. This resolution adopted by recorded vote of the Farmington City Council in ion on the 6th day of June 2022. Kayor Attested to the��'day of June 2022. U A,q(, Mt - City ministrator SEAL CITY O O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 ®a O Farmington MN,gov TO: Mayor, Councilmembers and City Administrator FROM: Lynn Gorski, City Administrator SUBJECT: Dakota County Farmington Library Presentation DATE: June 6, 2022 INTRODUCTION Barb Svoboda will be in attendance to give an update on the Dakota County Farmington Library. DISCUSSION New library staff,Aimee Schrieber and Daniel Schuette will be introduced. The presentation will include highlights of upcoming library activities. BUDGET IMPACT N/A ACTION REQUESTED Listen to the presentation and ask any questions you may have. ATTACHMENTS: Type Description D Presentation Presentation s " y +IT t r } 7 x> z , F 3 4INlLiBFr Barbara Svoboda, Branch Manager Farmington Library 508 Third Street, Farmington n651 -438-0250 Pho e. DAKOTA COUNTY lop LIBRARY At- a -glance 481300 180 , 589 items 9 , 949 people visits. checked out. attended programs. 4MLDAKOTA 0-0 M1 COUNTY LIBRARY 1cpDAKOTA COUNTY LIBRARY System Highlights Due Over } It z 3 € - > No youth fines �1 > Sunda Hours .. y > Community engagement s > On the Go Van > Farmington Outreach �� DAKOTA j ra nc i � s _�'' LIBRARY Mighty Machines < < Aimee Schrieber, r r, Children's Librarian Summer Discovery• _ D ` • • • `�T�.e BdZi��1o1►�S � =. Partnerships . • Parks ® ' j Ift h TPT's Hero Elementary ��� July 9, 9:30-11 :30 am DAKOTA COUNTY LIBRARY Branch Highlights ■ Short-term program — interns work 90 days ■ Specifically for low-income teens ages 15- 17 1� Daniel Schuette, Circulation Supervisor ■ Deadline to apply for summer 2022 is June 8th New Teen Internship program ■ This is a PAID position, sponsored in part a Federal Community Development Block Summer Volunteens Grant ■ We hope to continue offering new cycles of this Internship for as long as the funding continues DAKOTA COUNTY LIBRARY Branch Highlights 1h 1 I\11 11111 I 1-""' > Technology > New microfilm reader/printer > Sewing machines & sergers, and monthly '®111timaker" classes low, I > Calendar of Events https://www.co.dakota.mn.us/ libraries Click on Events a Special Thanks : ■ Missie Kohlbeck Recreation Supervisor ■ Lauren Sienbenaler Communications Specialist ■ Ryan Hayes Recreation Supervisor ■ The Friends of the Farmington Library Special Thanks : � ■ ISD 192 SCFE staff Story time in the Park series ■ Brianna Ostoff & all the CEAC members ■ Dakota County Fleet Management On the Go van & Mighty Machines P < la WTI AA 2 'F 0" n a. ya`. CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ® FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve May 2, 2022, City Council Work Session and Meeting Minutes- Administration DATE: June 6, 2022 INTRODUCTION Attached for your review are the minutes of the May 2, 2022, city council work session and meeting. DISCUSSION N/A BUDGET IMPACT N/A ACTION REQUESTED Approve the minutes of the May 2, 2022, city council work session and meeting. ATTACHMENTS: Type Description D Exhibit May 2 Work Session Minutes D Exhibit May 2 Council Meeting Minutes City of Farmington City Council Work Session Minutes May 2, 2022 1. Call to Order Mayor Hoyt called the work session to order at 5:17 p.m. Present: Hoyt, Lien, Porter, Wilson Absent: Bernhjelm Also Present: Lynn Gorski,City Administrator; Chris Regis, Finance Director;Gary Rutherford, Police Chief,Jim Constantineau, Deputy Police Chief;Justin Elvestad, Fire Chief; Samantha DiMaggio, Community Development Director; Kellee Omlid, Parks and Recreation Director; Peter Gilbertson, IT Director; Cynthia Muller, Administrative Assistant 2. Approve Agenda MOTION by Wilson, second by Porter, to approve the agenda. APIF, MOTION CARRIED. 3. Discussion Items a. American Rescue Plan Act Funds The city was allocated $2,523,436 from the American Rescue Plan Act (ARPA). The funds can be used for: - Road building and maintenance and other infrastructure - General government administration, staff and administration facilities - Provision of police, fire and other public safety services Government services is the most flexible eligible use category. City staff has reviewed the guidelines and developed a list of projects to be funded by ARPA funds totaling$2,935,865. Staff presented each of the projects and asked that council decide which projects they would like to pursue. Staff included items from the 2017 facilities analysis as well. Director Gilbertson presented the city's fiber projects. Council previously approved an internal fiber audit of all city buildings for$35,000. Fiber—Audit Project (External) -$65,000. Staff would also like LOGIS to do an external audit which would discover any dead segments and lead to a more accurate count of what is available for future project build outs. For example, there is a section on Walnut Street where the fiber is dead. An audit will find those issues. Fiber—New Liquor Store Farmington Mall to City Hall -$60,593. Staff would like to run fiber from city hall to the new liquor store in the Farmington Mall to allow us to connect the new store to the city's network. It would also create a backbone that opens opportunities for fiber to parks in the area and future ISP collaboration. Fiber—Along 195th Street from Akin Road to Hwy 3 -$117,878. This would create a middle-mile backbone for future collaboration, park projects and buildout of our water tower project. This cost is with a 50/50 split with the county. Council Work Session Minutes May 2,2022 Page 2 Fiber—Along Hwy 3 from 195th Street to Spruce Street—Backbone-$171,230. This creates a redundant loop in our backbone along with opportunities for fiber to parks and ISP partnerships. There is currently only one fiber provider in Farmington. This puts in fiber the city could lease to providers. Fiber—Parks Project -$327,834. Staff would like to extend fiber and power to city parks to provide residents with free WiFi, cameras to discourage vandalism, and provide extra lighting. This would allow internet service providers to easily extend their reach into neighborhoods by utilizing our fiber backbone. IT and Parks have identified priority sites for these projects: - Rambling River Park$33,817.87 - Lake Julia $54,160.86 - Dodge Middle School Warming House $27,664.74 - Daisy Knoll Park$49,102.70 - Distad Park$40,010.30 - Dakota Estates Park$44,000 - Hill Dee Park$31,214 - Fair Hills Park$27,374 Director Omlid presented Parks and Recreation projects. All-Inclusive Playground at Rambling River Park-$350,000. Playground equipment was removed in 2021 as it failed the safety test. New equipment would be installed in a different location in the park due to flooding. The castle in Rambling River Park would be moved to Meadowview Park.The price includes turf which is ADA accessible and lower maintenance. Providing this equipment in the gateway park to downtown would be a destination for residents and visitors to the community. Minnesota Energy Resources made a $5,400 donation through their charitable giving grants to this project. Replacement of Two Boilers at City Hall -$250,000. The two boilers were installed in 2009, but are constantly breaking down and have led to costly repairs. One boiler hasn't worked for the last six months. The two pulse boilers would be replaced with two high efficient compensating boilers. This quote has a two-year warranty and life expectancy of 20 years. We have to do this now or put it in the 2023 budget. Demolition of Bathhouse -$27,600. Although the bathhouse has two restrooms, it serves no other purpose than storage of some materials and the restrooms are not used regularly. It is a target for vandalism, an eyesore, and a safety concern as we can't see what is happening behind the building. Recreation Scheduling Software (RecTrac) -$34,730. RecTrac is a fully integrated parks and recreation management software that would provide the department with a centralized solution that is more customer and user friendly. We currently have different platforms for program registrations, shelter reservations, ice scheduling, memberships, etc. RecTrac is a LOGIS solution, so support and training Council Work Session Minutes May 2,2022 Page 3 for end users would be local. The $34,730 is the implementation cost; the city will incur approximately$25,000 in annual costs which will need to be budgeted. Tennis Court Improvements at Rambling River Park-$325,000. The courts have major cracking throughout and are a safety issue. One court would be converted into two pickle ball courts and the other would remain a tennis court. The cost includes changing the playing surface to post-tension concrete instead of asphalt, painting the courts, installation of posts and nets, and replacing the fencing. LED Message Display- $60,000. Park and Rec has a message board located at Spruce and Denmark that is from the 1980's. Lettering has to be manually changed and it isn't visible to much of the community. Staff would like to replace this sign with an LED message display on Pilot Knob Road near the Police Station or Hill Dee Park. It would be used to promote parks and recreation programs and for city information and events. There may be a potential sponsor to help with the cost. There was a discussion about placing it near the roundabout by the police station could be a distraction for drivers. There was a suggestion to locate the sign within the police fencing and move it further south. Deputy Police Chief Constantineau presented the police projects. Fencing Entire Police Department Property-$869,500. There are many very important items stored at the police department. If this building was breached,the trickledown of negative results would be substantial. Installing temporary fencing during an incident takes 24-48 hours and is both expensive and dangerous. No grants have been located. Administrator Gorski noted the police station is totally out of room and an expansion needs to be discussed. Mayor Hoyt agreed as population is growing and eventually staff. He would like to look at the cost to expand and determine when. Councilmember Porter would like this to be well in the works before Police Chief Rutherford and Deputy Police Chief Constantineau retire. Councilmember Wilson asked that we not assume we would go to the same architects and contractors. If doing a concept plan is under$10,000, it is worthwhile. Councilmember Lien suggested the fencing not be part of ARPA, but include it with the building expansion. Police Chief Rutherford stated it looks like an extravagant expense and he would agree, but to defend the police station we need to put it up now not after something happens. If we lose the evidence room, we lose resolution to crimes for the victims. Councilmember Porter agreed as it only takes one event for the entire city to go down. Police Chief Rutherford was ok with pausing and including it with the building expansion, but the fence has to get built. Councilmember Wilson supported the fence, but not the use of ARPA funds. He would like to see it done with the building expansion. He asked staff to see if in two to three months we could have a concept plan of what a buildout looks like. EOC Trailer and Cones-$16,500 This would cover the cost of materials for recently built barricades, 100 traffic cones and a trailer to house and transport them. The trailer would have emergency Council Work Session Minutes May 2,2022 Page 4 lighting, including scene lights, and would be used for multiple scenarios. The city does not currently have this capability. Director DiMaggio presented the Community Development projects. Comprehensive Plan Update - $85,000. The plan was last updated in 2019/2020 and there have been several changes since then. We need to tell property owners what their future land use would be and our current plan does not reflect this. Land designations also need to follow property lines. Also, local roads are not currently shown and the county has made some modifications to their future roads. Water and Sewer Capacity Study- $20,000. There is the possibility for development at CR66 and Biscayne Avenue. This is in Empire Township. The city council was not interested in helping Empire develop. Mayor Hoyt asked if we could include the Flagstaff study with the Comp Plan update. Staff agreed that could be done. HKGi is working on the Rambling River Park plan. Mayor Hoyt stated we just need the raw data for now. Councilmember Lien noted we could cut down the amount of the referendum if we use ARPA funds for parks. Councilmember Wilson wanted to see the big picture for parks. It was discussed at the last work session to complete the master plans for the parks. Mayor Hoyt didn't see a way we could not address Rambling River Park before next May. We could earmark the money for Rambling River Park until HKGi comes back with a cost and then pull those dollars out of the referendum. Director Omlid will check with the playground company to see if we can get all-inclusive playground equipment yet this year and inform councilmembers. Councilmembers agreed on using ARPA funds for the following projects: - City Hall boiler replacement - All-inclusive playground at Rambling River Park - Comp Plan update with the Flagstaff study - Police Department Building Expansion - City fiber audit external and internal - Parks and Recreation software - EOC trailer and cones - Demolition of bathhouse Administrator Gorski will send this list to Councilmember Bernhjelm. 4. Adjourn MOTION by Wilson, second by Porter to adjourn at 6:56 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Cynthia Muller Administrative Assistant COUNCIL MINUTES REGULAR May 2, 2022 1. CALL TO ORDER The meeting was called to order by Mayor Hoyt at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Hoyt led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Hoyt, Lien, Porter, Wilson Members Absent: Bernhjelm Also Present: Leah Koch, City Attorney; Lynn Gorski, City Administrator; Chris Regis, Finance Director; Gary Rutherford, Police Chief;Jim Constantineau, Deputy Police Chief;Justin Elvestad, Fire Chief; Samantha DiMaggio, Community Development Director; Kellee Omlid, Parks and Recreation Director; Cynthia Muller, Administrative Assistant Audience: 4. APPROVE AGENDA MOTION by Lien, second by Porter to approve the agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Wilson, second by Porter to approve the Consent Agenda as follows: a) Approved April 18, 2022, City Council Work Session and Meeting Minutes and April 25, 2022, Work Session Minutes—Administration b) Approved Appointment to Rambling River Center Advisory Board— Administration C) Adopted RESOLUTION R32-22 Accepting Donation from Imperial Family Chiropractic to the Dew Run —Parks and Recreation d) Received Financial Review for the Quarter Ending March 31, 2022 —Finance e) Approved Bills—Finance f) Approved Appointment Recommendation—Seasonal Staff—Human Resources g) Approved the 457 Deferred Compensation Match Program Policy—Human Resources h) Adopted RESOLUTION R33-22 Approving the Patrol LELS Union Contract— Human Resources APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT Council Minutes(Regular) May 2,2022 Page 2 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Authorize Contract with Enterprise Leasing for Police and Fire Fleet—Police and Fire Deputy Police Chief Constantineau proposed entering into a lease agreement with Enterprise Leasing to lease police and fire vehicles rather than purchasing them. Enterprise would purchase vehicles to replace our current fleet, and the city would enter into a four-year lease for each vehicle. The city will receive the proceeds from the sale of the vehicles. When the city is done with the vehicles, Enterprise will sell them and the city would receive the equity in the vehicle and receive a replacement vehicle. Enterprise projected a savings of over$220,000 over five years vs. buying the vehicles outright. Council appreciated staff's work on this. MOTION by Porter, second by Wilson to approve the city entering into a contract with Enterprise Leasing to acquire the Police and Fire Department's fleet vehicles and sell our existing fleet, with the proceeds being returned to the city. These proceeds will be returned to the fleet CIP fund. APIF, MOTION CARRIED. 13. COUNCIL ROUNDTABLE Lien: Thank you to the Bachmann Middle School Stn graders for the Shark Tank event this week. Porter: Added the 8th graders were very creative. Encouraged residents to enjoy the parks and trails with the warmer weather. Wilson: Thanked the Mayor and Chamber for a really good State of the City. He learned a lot about Farmington's history. Complimented the Police and Fire Departments for their great work and also City Hall staff for a couple big months of change and turnover. Keep up the great work. Koch: Kathryn Iverson Landrum was appointed as anew judge. Gorski: Thanked the Mayor for his work on the State of the City and attendees for coming. The USDA bid opening has been postponed to May 12 at 2 p.m. DiMaggio: The Farmington networking group will be meeting tomorrow at 7:30 a.m. Omlid: Liquor operations held a fundraiser for the Rambling River Center. She thanked Josh Solinger, Cindy McMillen, the liquor operations team and businesses. The total amount raised is$14,300. Council Minutes(Regular) May 2,2022 Page 3 Regis: Budget work is in full swing and he continues to be in contact with the auditors. Elvestad: On the consent agenda tonight, council approved hiring a paid-on-call firefighter who came from a neighboring city so the training will be much quicker. Hoyt: The State of the City was fun. There were 41 people registered to attend. It was a great opportunity to tell our story. As this is Farmington's 150th anniversary, we went deeper into our history. He thanked Lauren Siebenaler,Jackie Dooley and Dave Schrier as they provided a lot of help. Thank you to those who participated and attended. Teacher appreciation is this week. On Arbor Day he planted trees with the 5th graders. The Farmington Ambassadors held a fundraiser on Saturday. Thank you to the public works team for flushing hydrants, cleaning streets and trimming trees. 14. ADJOURN MOTION by Lien, second by Porter to adjourn at 7:19 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia -"AluCler Cynthia Muller Administrative Assistant CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve May 16, 2022, City Council Work Session and Meeting Minutes- Administration DATE: June 6, 2022 INTRODUCTION Attached for your review are the minutes of the May 16, 2022, city council work session and meeting. DISCUSSION N/A BUDGET IMPACT N/A ACTION REQUESTED Approve the minutes of the May 16, 2022, city council work session and meeting. ATTACHMENTS: Type Description ❑ Exhibit May 16 Work Session Minutes ❑ Exhibit May 16 Meeting Minutes City of Farmington City Council Work Session Minutes May 16, 2022 1. Call to Order Mayor Hoyt called the work session to order at 5:00 p.m. Present: Hoyt, Bernhjelm (arrived 5:50 p.m.), Lien, Wilson Absent: Porter Also Present: Lynn Gorski,City Administrator; Gary Rutherford, Police Chief; Kellee Omlid, Parks and Recreation Director;Cynthia Muller,Administrative Assistant Audience: Kara Hildreth, Reporter;three residents 2. Approve Agenda MOTION by Wilson, second by Lien to approve the agenda. APIF, MOTION CARRIED. 3. Discussion Items a. Juneteenth Proclamation Community members have requested Council approve a Juneteenth proclamation. One resident felt it was important for white people to speak up for non-white people. Council has received a proposed version of a proclamation. Councilmember Bernhjelm had emailed her comments stating she is in favor of a proclamation. It is recognized as a federal holiday and she agreed with editing the proposed version. Councilmember Wilson suggested having a community type proclamation and broader. May is law enforcement month. It is important to recognize things that impact our community. Last year was a missed opportunity, but the timing was off. He would support a proclamation and the direction from Councilmember Bernhjelm to edit the proposed version. Having a proclamation makes sense. Councilmember Lien stated there is a lot of importance on wordsmithing. We don't want to take the important points out. We need to find a good middle ground. We should acknowledge it at some point. We have to be open to editing it. He discussed how this was handled at the company he works for. Perhaps we can tie the proclamation into a community engagement goal. Mayor Hoyt stated last year at the end of the meeting he stated to do something that encompasses all and do all at once or do nothing. The statement in its current state has no action behind it. If we don't do something behind it, are we hurting those it is meant for? He is 100% in favor of doing something all inclusive. If we proclaim this day, be ready to do them all. If we are welcoming to all, do something that encompasses everyone. It's not about Juneteenth. Have a cultural diverse group plan it. A resident explained what they do at her work. Proclaim Juneteenth now and look at a celebration alter. Inaction is also action. Another resident stated at her work they select a day for someone to speak on their heritage. Council Work Session Minutes May 16,2022 Page 2 Mayor Hoyt did not want to experiment with a proclamation with nothing behind it. Council has not heard from any black residents about Juneteenth. A resident replied that last July several people came to a council meeting and spoke on not having a proclamation. Do something that is culturally diverse for the entire community. Councilmember Lien stated inaction is action. Something needs to be done. We are three white guys;the point is to find someone from that racial group to say something. It's the only one that's a federal holiday. So you can put a stop to the slippery slope. Find someone in the black community to prepare the proclamation. Mayor Hoyt asked the audience if someone wants to organize an event at Dew Days? If we proclaim it, we should do something in the community. Councilmember Wilson stated we don't need action behind the proclamation because the proclamation is action. He doesn't see a slippery slope because it is a federal holiday. The best ideas for community engagement come from people who want to be engaged. We do need to acknowledge it. Councilmember Lien added if we do nothing, the action will never come. Mayor Hoyt stated again we need the community to step up to plan an event. A resident commented that making a proclamation shows we're listening to the non-white community. Mayor Hoyt suggested we do a diversity month and include all of the special dates. We'll make the proclamation and hope there is something behind it. He asked staff to set up a diversity inclusion committee and to contact Ron Williams, with the school district, to put a proclamation together. 4. City Administrator Update Park Referendum -Administrator Gorski and Director Omlid met with HKGi on the park referendum. Staff has master plans of different parks, but they are not updated. HKGi is going through each park and making a list of what needs to be replaced. The biggest thing to get a handle on is trails. This information will lay out updates for future years. Staff should receive the information from HKGi tonight. It's a living document so we need to keep it updated. We will look at what has and hasn't been done and when to replace certain items. Councilmember Wilson asked if we should look at trails and trail funding differently. Such as get a dedicated funding source, but not a tax. He asked staff to find out what other communities do. Mayor Hoyt asked if we will still put out a referendum this fall. Director Omlid said no to a referendum, because we want to get this done right. Administrator Gorski added we Council Work Session Minutes May 16,2022 Page 3 want a good product and be able to move forward. Director Omlid noted in 2023 we can issue GO bonds with the streets project and we'd be ready. Councilmember Bernhjelm was concerned about not figuring out the ice arena situation. Councilmember Wilson suggested we should identify a piece of land centrally located and get a couple business partners to move forward with that. Director Omlid noted an ice arena alone won't pass. We need something for the entire community. Staff Appointment—Administrator Gorski stated Julie Flaten will be the new Assistant City Administrator/ HR Director and is excited to start. 5. Adjourn MOTION by Lien, second by Bernhjelm to adjourn at 6:05 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia duller Cynthia Muller Administrative Assistant COUNCIL MINUTES REGULAR May 16, 2022 1. CALL TO ORDER The meeting was called to order by Mayor Hoyt at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Hoyt led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Hoyt, Bernhjelm, Lien, Porter,Wilson Members Absent: None Also Present: Joel Jamnik, City Attorney; Lynn Gorski, City Administrator;Justin Elvestad, Fire Chief; Gary Rutherford, Police Chief; Samantha DiMaggio, Community Development Director; Kellee Omlid, Parks and Recreation Director; Ryan Hayes, Recreation Programs Supervisor; Missie Kohlbeck, Rambling River Center Coordinator; Matt Decur,Assistant City Engineer;Tony Wippler, Planning Manager; Cynthia Muller, Administrative Assistant Audience: Julie Flaten 4. APPROVE AGENDA Councilmember Lien asked about the work session minutes and the interpretation of what was agreed on with the police department fencing. He understood the outcome was more focused on expansion. Councilmember Wilson suggested pulling the minutes for review and bring them back to the June meeting for approval. MOTION by Bernhjelm, second by Porter to approve the agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bernhjelm, second by Lien to approve the Consent Agenda as follows pulling item 7a): a) Pulled May 2, 2022, City Council Work Session and Meeting Minutes— Administration b) Adopted RESOLUTION R34-22 Approving Gambling Event Permit—Farmington Youth Hockey Association—Administration C) Adopted RESOLUTION R35-22 Authorization to Execute Amended and Restated Joint Powers Agreement Establishing Dakota 911—Administration d) Adopted RESOLUTION R36-22 Approving Amendment to Farmington/Empire OAA—Administration e) Approved Pilot Knob Liquor Store Lease—Farmington Liquors f) Approved Temporary On-Sale Liquor License—Farmington Liquors- Administration Council Minutes(Regular) May 16,2022 Page 2 g) Approved Consent to Assignment—Sapphire Lake 4th Addition Development Contract—Community Development h) Approved Final Acceptance of Public Streets and Utilities—Fairhill Estate at North Creek, Fairhill Estate at North Creek 2nd Addition, and Fairhill Estate at North Creek 3rd Addition—Community Development i) Adopted RESOLUTION R37-22 Accepting Donation from the Farmington Sons of the American Legion to the Rambling River Center—Parks and Recreation j) Adopted RESOLUTION R38-22 Accepting Donation from Happy Harry's Furniture to the Rambling River Center—Parks and Recreation k) Approved Out of State Training—Fire 1) Approved Fire Department Helmet Purchase Policy—Fire m) Approved Purchase of SCBA Container Training System —Fire n) Approved Bills— Finance o) Approved Staff Changes and Recommendations—Human Resources APIF, MOTION CARRIED. 8. PUBLIC HEARINGS a) Adopt Resolution Vacating Certain Public Right-of-Way—Community Development Dakota County Lumber is requesting the right-of-way be vacated for 100 5th Street. The existing building and existing storage yard located at 100 5th Street encroaches into the right-of-way of Pine Street by about 55 feet. The area to be vacated is Pine Street between 4th and 5th Streets, which was never constructed and a portion of alley located on the south end of the 100 5th Street property was found through title search not to be vacated and was never constructed. Staff has determined these public rights-of-way are no longer necessary and would never be constructed. Mayor Hoyt asked if there are more rights-of-way that exist, and do we do this case by case or as an overlay? Staff can look at that. MOTION by Wilson, second by Bernhjelm to close the public hearing. APIF, MOTION CARRIED. MOTION by Porter, second by Bernhjelm to adopt RESOLUTION R39-22 vacating the public rights-of-way as mentioned above. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Adopt Ordinance Rezoning Property from R-4(High Density Residential)to B-3 (General Business)—100 5th Street—Community Development Mr. Colin Garvey is the owner of 100 5th Street, and he has entered into an agreement with Dakota County Lumber to purchase the property. Dakota County Lumber has requested a rezoning for 100 5th Street from R-4 to B-3 to allow for expansion of their supply yard. The 2040 Comprehensive Plan will need to be amended to reflect the zoning change. In the next few months, staff will be reviewing the 2040 Comprehensive Plan and will look at specific corridors throughout the community to update and amend the plan. The change for this Council Minutes(Regular) May 16,2022 Page 3 property will be included in that process. The Planning Commission reviewed the request on May 10, 2022, and recommended approval. Councilmember Lien asked why it was zoned R-4? Planning Manager Wippler explained in the 2016 Downtown Redevelopment Study, it was determined what is underutilized and staff thought this would be a good location for multi-family units. Now the property is being sold to accommodate a business. MOTION by Wilson, second by Bernhjelm to adopt ORDINANCE 022-767 rezoning the property located at 100 5th Street from R-4 (High Density Residential)to B-3 (General Business). APIF, MOTION CARRIED. b) Adopt Resolution Approving Final Plat and PUD—Vermillion Commons— Community Development Lennar is proposing 76 townhome units in this first phase of the Vermillion Commons development. Vermillion Commons is located at the northwest intersection of 220th Street W and Denmark Avenue, directly west of Boeckman Middle School. The preliminary plat proposes 276 townhome units over the 75.78 acres yielding 6.7 units/acre. The development is being developed as a Planned Unit Development due to the use of private streets. A deviation that will be addressed through the PUD will be the side corner setback requirement. Code requires a 25-foot side yard setback on a corner, 15 feet is being proposed with this development. This final plat also consists of 19 outlots. Outlot A is 56.17 acres and consists of a mixture of future development. Floodplain/open space as well as easements for four natural gas pipelines. Outlot B is 1.88 acres and will contain a stormwater facility. Outlot J consists of the private roads within the first phase. All remaining outlots consist of common areas around the townhome lots. Access to the site is provided off of Denmark Avenue and 2201h Street W, via the extension of 218th Street W and Denton Avenue. There will be 8 ft. wide trails along Denmark Avenue and 220th Street W to the extents of the first phase. Also, 5 foot wide sidewalks will be installed on the south side of 218th Street W and on the west side of Denton Avenue. The developer is proposing 27 off-street parking spaces with the first phase. The two-story townhomes will consist of two-car garages and space for two cars parked in the driveway of each unit. The PUD Agreement outlines the deviations proposed for this development, which are: - Use of private streets within the development - Reduce the corner side yard setback from a minimum of 25 feet to 15 feet. The Planning Commission reviewed the application on May 10, 2022, and recommended approval. Approval of the final plat and PUD Agreement are contingent upon the following: Council Minutes(Regular) May 16,2022 Page 4 1. The plat should be revised to show 10-foot-wide drainage and utility easements around the perimeter of Outot B instead of the coverall easement currently indicated on the plat. 2. The satisfaction of all engineering comments related to the construction plans for grading and utilities. 3. A Development Contract between the applicant and 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. Councilmember Lien asked about changing the corner setbacks from 25 feet to 15 feet. Staff explained that is on a corner lot to add on to the buildable area. Mayor Hoyt added the challenge with this area is the pipeline. The agreement was to adjust the setbacks because of the pipelines. He asked if there was enough room to park a car in the driveway without it blocking the sidewalk. Staff confirmed there is a 25-foot front yard setback. MOTION by Lien, second by Porter to adopt RESOLUTION R40-22 approving the Vermillion Commons final plat and PUD Agreement with the above contingencies. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Parks and Recreation Department's 2021 Annual Report—Parks and Recreation Parks and Recreation staff members compiled an annual report identifying the department's accomplishments in 2021. The report was presented by Kellee Omlid, Parks and Recreation Director; Ryan Hayes, Recreation Programs Supervisor; and Missie Kohlbeck, Rambling River Center Coordinator. Farmington has had three Parks and Recreation Directors in 47 years—Jim Bell, Randy Distad and Kellee Omlid. In 2021, a park was added along with four miles of trails. The city has formed many community partnerships and Farmington is very generous. Certain events were highlighted. The ice arena is under great care and service of equipment by city staff and fleet maintenance. The bleacher exit project was 100%done by staff and they did an awesome job. A lot of great things are happening at the ice arena. Favorite events include the Daddy Daughter Dance and the Halloween Walk. Building maintenance staff assisted with setting up the new liquor store. Registrations for golf lessons sored as residents got outside due to Covid. The Rambling River Center raised $25,000 in donations and received a new treadmill. The zoom classes have become a regular program. A very moving dedication took place for Distad Park and Greenway. Staff thanked the EDA for the new holiday lights. Metal roofs have been installed on all shelters now thanks to parks maintenance. A storm in September knocked down the ballfield lights. Staff is looking forward to what happens with Jim Bell Park and Preserve and updating other parks. Staff stated they were excited to have Director Omlid leading them and thanked members of Council Minutes(Regular) May 16,2022 Page 5 the Rambling River Center Advisory Board and the Parks and Recreation Commission. Councilmember Wilson gave a huge thank you to staff for all they do. Councilmember Porter stated this was a great presentation. She looks forward to this annual report the most. The list of sponsors shows how businesses continue to show up and give back to the community. Councilmember Bernhjelm felt it was a fabulous report and staff can make a lot of things happened with little resources. Councilmember Lien agreed. Mayor Hoyt stated our Parks and Rec Department digs deep and offers a lot. Covid opened a door and made residents look at what we have. This team does an incredible job. A link to the presentation will be on the website. b) Accept Bids and Award a Contract for the 2022 Spruce and Division Street Improvement Project- Engineering This project includes complete replacement of the sanitary sewer, storm sewer, watermain and street as well as reconstruction of the parking lots at Fire Station 1, Rambling River parking lot near the Veteran's Memorial, the existing parking lot at Schmitz Maki Arena, the expansion of the parking lot at Feely Fields and the police station parking lot and a new bituminous surfaced parking lot on the east side of the arena, and a new street lighting system for both arena parking lots and Feely Fields. Council approved final plans and authorized bids at the April 11, 2022, meeting. Three bids were received. The low bidder is BCM Construction of Faribault in the amount of$4,936,693.82. The estimated project cost is $4,722,600. Councilmember Wilson asked if there will be a communication plan with residents and businesses. Assistant Engineer Decur replied yes, once the schedule is set. There will also be construction meetings with some stakeholders. Councilmember Wilson asked if the county is working with us on TH3 and will that project be on our website? Staff replied we have links for MnDOT's website for TH3 on our website. Any newsletters will be on the website. Councilmember Lien asked if the storm sewer cost is only a price increase and not a delivery problem. Staff stated the price increase is for prompt delivery and trucking costs. Mayor Hoyt asked if in the individual bids are administrative costs the same between the two low bids? Staff noted the administrative costs were comparable. The difference is between an excavating contractor and a road contractor. MOTION by Bernhjelm, second by Porter to accept the bids and award a contract for construction of the 2022 Spruce and Division Street Improvement Project to BCM Construction of Faribault in the amount of$4,936,693.82 and authorize the Mayor and City Administrator to execute the same. APIF, MOTION CARRIED. C) Approve Bid for USDA Tenant Improvement-Administration The current City Hall tenants, the USDA, have requested to amend their current lease to include additional office space. Seven bids were received. The low bid Council Minutes(Regular) May 16,2022 Page 6 was from Derau Construction from Burnsville in the amount of$208,200. The cost will come out of the general fund and the lease amount received from the USDA will be added back into the general fund to repay the project cost. MOTION by Bernhjelm, second by Wilson to award the contract to Derau Construction in the amount of$208,200. APIF, MOTION CARRIED. 13. COUNCIL ROUNDTABLE Lien: Commended Mayor Hoyt for signing up to be a donor to help a firefighter. Mayor Hoyt noted while he wasn't a match, others were identified who were. Bernhjelm: Welcomed Julie Flaten as the new Assistant City Administrator/ HR Director. Porter: The weather is great and her favorite park is White Tail Woods. She encouraged residents to enjoy the fresh air. Wilson: Thanked Fire Chief Elvestad and the Relief Association for all they do. The Fire Department needs a lot of training and equipment which is acquired through donations and grants. Gorski. The city is looking for election judges. Applications are online and at City Hall and are due by June 13, 2022. She also welcomed Julie Flaten. DiMaggio: Reminded residents when they mow their lawn,they should not put grass clippings in the street. Omlid: Thanked Riverview Elementary for having staff come back to hear about ideas for Jim Bell Park. Sam and Joe DiMaggio will be serving salad at the VFW Steak Fry Saturday night which is a fundraiser for the Rambling River Center. Friday there will be a grab-and-go food truck event with Empire Parks and Recreation at Stelzel Fields. Rutherford: This is Police Week and it ends with a Police Department Open House on Saturday. It will be a fun family event, they will be collecting for the food shelf and Bourbon Butcher will be catering. Elvestad: On the Consent Agenda tonight, council approved the retirement of Aasa Just after 11 years of service. He thanked Aasa for his service. Saturday, eight fire fighters will be doing the stair climb. Hoyt: Kids will be out of school soon. He went to the high school with Commissioner Slavik and Jay Christensen and met with a civics class. We have a lot of opportunities for this community. Continue to shop local. 14. ADJOURN Council Minutes(Regular) May 16,2022 Page 7 MOTION by Porter, second by Bernhjelm to adjourn at 7:57 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia .Muller Cynthia Muller Administrative Assistant CITU OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Temporary On-Sale Liquor License- Rotary Club of Farmington- Administration DATE: June 6, 2022 INTRODUCTION The Rotary Club of Farmington is requesting a Temporary On-Sale Liquor License for a fundraiser to be held June 24&25, 2022. DISCUSSION This event will be held outside at the Rambling River Center, 325 Oak Street. Per State Statute, a Temporary Liquor License must first be approved by the city and then forwarded to the state for approval. BUDGET IMPACT The state of Minnesota waives all fees for Temporary Liquor Licenses for non-profit organizations. Therefore,the city has not established a fee for a Temporary On-Sale Liquor License. ACTION REQUESTED Approve the attached application fora Temporary On-Sale Liquor License for the Rotary Club of Farmington,fora fundraiser to be held outside at the Rambling River Center, 325 Oak Street, on June 24 &25, 2022. ATTACHMENTS: Type Description ❑ Exhibit Application AuthenlisignID:37493ABF-CDD6-EC 11-B656-501AC586DF9D Minnesota Department of Public Safety y w: Alcohol and Gambling Enforcement Division ' 445 Minnesota Street,Suite 222,St,Paul,MN 55101 651-201-7500 Fax 651-297-5259 TTY 651-282-6555 Alcohol&Gamb{Ing Enforcement APPLICATION AND PERMIT FOR A 9 DAY TO 4 DAY TEMPORARY ON-SALE LiQUOR LICENSE Name of organization Date organized Tax exempt number The Rotary Club of Farmington 05/18/2022 36-4631800 Address City State Zip Code PO Box 175 Farmington IMInnesota 1155024 Name of person making application Business phone Home phone Shannon Nielsen 651-324-0545 Date(s)of event Type of organization 06/24/22-06/25/22 ❑X Club ❑Charitable ❑ Religious []Other non-profit Organization officer's name City State Zip Code President-Jenna CalhounFarmington Minnesota 55024 Organization officer's name City State Zip Code Treasurer- Nathan Lehmeyer Farmington I IMInnesota 55024 Organization officer's name City State Zip Code Public Relations- Barb Svoboda Farmington Minnesota 1 155024 Organization officer's name City State Zip Code Fundraising Chair-Shannon Nielsen Farmington IMInnesota 55024 Location where permit will be used. If an outdoor area,describe. Rambling River Center, outdoor concert area, g'a's air S rtre� f If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. First National insurance, James Lundquist 651-460-6014x4 APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City or County approving the license Date Approved Fee Amount Permit Date Date Fee Paid City or County E-mail Address i City or County Phone Number Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement CLERKS NOTICE:Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event. ONE SUBMISSION PER EMAIL,APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY CITY/COUNTY TO AGE TEMPORARYAPPLICATIONPSTATE.MN.US CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 goo ®® FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Temporary On-Sale Liquor License- Farmington Lions Club- Administration DATE: June 6, 2022 INTRODUCTION The Farmington Lions Club is requesting a Temporary On-Sale Liquor License for a fundraiser to be held September 8, 2022. DISCUSSION This event will be held outside Church of St. Michael, 22120 Denmark Avenue. Per State Statute, a Temporary Liquor License must first be approved by the city and then forwarded to the state for approval. BUDGET IMPACT The state of Minnesota waives all fees for Temporary Liquor Licenses for non-profit organizations. Therefore,the city has not established a fee for a Temporary On-Sale Liquor License. ACTION REQUESTED Approve the attached application for a Temporary On-Sale Liquor License for the Farmington Lions Club, for a fundraiser to be held at Church of St. Michael, 22120 Denmark Avenue, on September 8, 2022. ATTACHMENTS: Type Description D Exhibit Temporary On-Sale Liquor Application Minnesota Department of Public Safety r: = Alcohol and Gambling Enforcement Division 445 Minnesota Street,Suite 222,St.Paul,MN 55101 651-201-7500 Fax 651-297-5259 TTY 651-282-6555 Alcohol&Gambling Enforcement APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE Name of organization Date organized Tax exempt number FARM I O LIONS CLUB 111953 115939906 Address City State Zip Code PO BOX 184 rARMING TONI IMInnesota Name of person making application Business phone Home phone IVAN KUOPPALA - BOARD MEMBER r 612-246-1474 Date(s)of event Type of organization 9/8/22 IN Club IN Charitable ❑ Religious [—] Other non-profit Organization officer's name City State Zip Code WILLIAM SATHER - CLUB PRESIDENTI I LAKEVILLE Minnesota 55044 Organization officer's name City State Zip Code TIMOTHY SAVAGEAU - SECRETARY I FLAKEVILLE IMinnesota 55044 Organization officer's name City State ZIp Code DUANE ETCH - TREASURER FARMINGTO Minnesota 55024 Organization officer's name City State Zip Code IVAN KUOPPALA - BOARD MEMBER FARMINGTO Minnesota -� _� Location where permit will be used. If an outdoor area,describe. CHURCH OF ST. MICHAEL FARMINGTON, MN If the applicant will contract for Intoxicating liquor service give the name and address of the liquor license providing the service. If the applicant will carry liquor liability Insurance please provide the carrier's name and amount of coverage. APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City or County approving the license Date Approved Fee Amount Permit Date Date Fee Paid Clty or County E-mailAddress City or County Phone Number Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement CLERICS NOTICE;Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event. ONE SUBMISSION PER EMAIL,APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY CITWCOUNTY TO AGE TEMPORARYAPPLICATION@STATE.MN.US i CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Lynn Gorski, City Administrator SUBJECT: Approve Resolution Accepting Grant from CenterPoint Energy-Administration DATE: June 6, 2022 INTRODUCTION The City of Farmington applied for a Community Safety grant through CenterPoint Energy. DISCUSSION The City applied for a Community Safety Grant opportunity that was available to cities.The grant request was to build traffic barricades to be used for providing safer civic events and parade routes,these barricades will also be available for use in natural disasters as well as for private resident uses such as city permitted block parties. BUDGET IMPACT The total equipment/special project cost was $3,500.The grant funding request could not exceed 50 percent of the total equipment cost. Total amount received was$1,700. ACTION REQUESTED Please help me thank CenterPoint Energy for this opportunity and approve the grant and resolution in the amount of$1,700. ATTACHMENTS: Type Description D Exhibit Grant Letter CenterPoint Energy D Resolution Resolution of Grant Award CenterPoint Energy CenterPoint® 505 Nicollet Mall P.O. Box 59038 Energy Minneapolis,MN 55459-0038 May 20, 2022 Lynn Groski, City Administrator City of Farmington 430 3rd Street Farmington, MN 55024 Dear Lynn, The Community Safety Grant program offers an opportunity for CenterPoint Energy to invest in the cities we serve. For over 150 years we have partnered with communities supporting our shared commitment to safety while delivering safe, reliable natural gas. Since 2003, the program has awarded more than $2.5 million in donations and provided funding to support 1288 projects in communities throughout CenterPoint Energy's service area. Through the grant program, we help cities leverage local funds to purchase needed safety equipment or support safety projects that are important to your community. We are pleased to present the City of Farmington with a Community Safety Grant in the amount of$1700 for traffic barricades. IMPORTANTI Please confirm receipt of the check as soon as possible by emailing me at beth.brown(cDcenterpointeneray.com Thank you for your efforts to make our communities safer. Sincerely, Beth Brown Specialist, Community Relations 612-321-4899 • million RESOLUTION NO. R42-22 ACCEPTING$1700 GRANT AWARD FROM CENTERPOINT ENERGY FOR TRAFFIC BARRICADES 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 6th day of June 2022 at 7:00 p.m. Members Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Members Absent: None Member Bernhjelm and Member Porter introduced and seconded the following: WHEREAS,the City of Farmington submitted a grant application for traffic barricades; and, WHEREAS, CenterPoint Energy has awarded a $1700 grant to the City of Farmington for traffic barricades; and, WHEREAS, it is in the city's best interest to accept the grant award. NOW,THEREFORE, BE IT RESOLVED that after due consideration,the Mayor and City Council of the City of Farmington, Minnesota, hereby accept with gratitude the$1700 grant award from CenterPoint Energy for traffic barricades. This resolution adopted by recorded vote of the Farmington City Council in ope sessi on the 6th day of June 2022. yor Attested to the �day of June 2022. b CitAdn4istrator SEAL CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 �® II Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Kellee Omlid, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting Donation from Happy Harry's Furniture to the Rambling River Center- Parks and Recreation DATE: June 6, 2022 INTRODUCTION A donation was recently made to the Rambling River Center(RRC) by Happy Harry's Furniture. DISCUSSION A donation in the amount of$287.70 was recently made by Happy Harry's Furniture to the RRC. The donation was made through a program created in 2011 in which a customer of Happy Harry's Furniture can select a charity of their choice to receive a donation when merchandise is purchased from the store. Then 10%from the sale to the customer is donated to the charity. The RRC is one of the charities that can be selected by customers. With these donations, Happy Harry's Furniture has donated a total of$13,421.27 to the RRC since the program's inception.This partnership with Happy Harry's Furniture has been very beneficial over the long term given the funds that have been donated to the RRC. The donation has been deposited into the RRC Capital Improvement Fund to fund future building improvements and/or purchase new equipment and furniture. Staff will communicate the city's appreciation on behalf of the city council to Happy Harry's Furniture for their generous donation to the RRC. BUDGET IMPACT N/A ACTION REQUESTED Adopt the attached resolution accepting the donation of$287.70 from Happy Harry's Furniture to the RRC. ATTACHMENTS: Type Description ❑ Resolution Donation Resolution RESOLUTION NO. R43-22 ACCEPTING DONATION OF$287.70 FROM HAPPY HARRY'S FURNITURE TO THE RAMBLING RIVER CENTER 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 61h day of June 2022 at 7:00 p.m. Members Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Members Absent: None Member Bernhjelm and Member Porter introduced and seconded the following: WHEREAS, a donation of$287.70 was made by Happy Harry's Furniture to the Rambling River Center; and, WHEREAS, it is required by State Statute that such 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 generous donation of $287.70 from Happy Harry's Furniture to the Rambling River Center. This resolution adopted by recorded vote of the Farmington City Coun ' in s'on on the 6th day of June 2022. ayor Attested to the 1,o'"day of June 2022. City Ad nistrator SEAL CITY OF O 430 Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Kellee Omlid, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting Donations from the Farmington VFW and Veteran's Steak Fry to the Rambling River Center- Parks and Recreation DATE: June 6, 2022 INTRODUCTION The Farmington VFW and Veteran's Steak Fry recently gave donations to the Rambling River Center (RRC)from its annual steak fry. DISCUSSION The Farmington VFW and the Veteran's Steak Fry held its 19th Annual Steak Fry Fundraising event for the Rambling River Center on Saturday, May 21, 2022. The Farmington VFW donated $500 and the Veteran's Steak Fry donated$375 for a total of$875. The donated money will be placed in the RRC Capital I mprovement Fund, so it may either be used for future building improvements and/or to purchase new equipment or furniture. Staff will communicate the city's appreciation on behalf of the city council to the Farmington VFW and Veteran's Steak Fry for these generous donations. BUDGET IMPACT N/A ACTION REQUESTED Adopt the attached resolution accepting the donations of$500.00 from the Farmington VFW and $375.00 from the Veteran's Steak Fry to the RRC. ATTACHMENTS: Type Description D Resolution Donation Resolution RESOLUTION NO. R44-22 ACCEPTING DONATIONS OF$500.00 FROM THE FARMINGTON VFW AND $375.00 FROM THE VETERAN'S STEAK FRY TO THE RAMBLING RIVER CENTER 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 61h day of June 2022 at 7:00 p.m. Members Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Members Absent: None Member Bernhjelm and Member Porter introduced and seconded the following: WHEREAS, a donation of$500.00 was made by the Farmington VFW and $375.00 from the Veteran's Steak Fry to the Rambling River Center; and, WHEREAS, it is required by State Statute that such 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 generous donation of $500.00 from the Farmington VFW and $375.00 from the Veteran's Steak Fry to the Rambling River Center from a steak fry fundraising event. This resolution adopted by recorded vote of the Farmington City Council in ss n on the 6th day of June 2022. 7yZ r �h Attested to the day of June 2022. ClYy AqVninistrator SEAL CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 i O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Partial Release of Land from Development Contract- Outlot B,Troyhill 3rd Addition -Community Development DATE: June 6, 2022 INTRODUCTION As part of an anticipated transaction, R. Glenn Nord attorney for Robert and Brian Donnelly has requested the release of property owned by the Donnelly's from the development contract for Troyhill 3rd Addition. The subject property is legally described as Outlot B,Troyhill 3rd Addition and consists of 0.13 acres (5,506 square feet). DISCUSSION The development contract for the Troyhill 3rd Addition plat, dated June 17, 1996,was recorded with Dakota County on September 26, 1996. Outlot B is a remnant sliver of land located along the west side of the Troyhill Development currently owned by Robert and Brian Donnelly. This outlot is planned to be platted as part of the future Meadowview Preserve Development as proposed by Summergate Development. The title company handling the sale to Summergate Development has requested the property owners obtain the release of this outlot from the development contract. Staff has reviewed the request and finds it acceptable to grant the release as requested. BUDGET IMPACT NA ACTION REQUESTED Approve and authorize the execution of the attached Partial Release of Land From Development Contract for the Troyhill 3rd Addition plat. ATTACHMENTS: Type Description D Backup Material Partial Release of Development Contract PARTIAL RELEASE OF LAND FROM DEVELOPMENT CONTRACT Date: rT— FOR VALUABLE CONSIDERATION, the real property in Dakota County, Minnesota, legally described as follows: Outlot B, Troyhill 3rd Addition, Dakota County,Minnesota is hereby released from that certain Development Contract between the City of Farmington and Builders Development,Inc., dated June 17, 1996 and filed in the Office of the County Recorder of Dakota County, Minnesota on September 26, 1996 as Document Number 1377447. City of Farmingto By: Its STATE OF MINNESOTA ) )ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this g" day of 20 ,;?.-,2 by the Ire of the City of Farmington. S Notary Public •;�,� CYNTHIAA MULLER NOTARY PUBLIC MINNESOTA < <,a My Commission Expires Jan.31,2025 1 THIS DOCUMENT DRAFTED BY: R.GLENN NORD,P.A. 20686 Holyoke Avenue P.O.Box 427 Lakeville,MN 55044 2 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: Approve Development Contract-Vermillion Commons-Community Development DATE: June 6, 2022 INTRODUCTION The City Council approved the final plat for Vermillion Commons on May 16, 2022. A condition of approval was that a Development Contract between the developer and City of Farmington must be executed and security fees and costs must be paid. DISCUSSION Attached,for Council's consideration and approval is the Development Contract for Vermillion Commons. The attached contract is a standard Development Contract that 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. The developer has reviewed the attached contract and finds it acceptable. BUDGET IMPACT The fees that will be collected as part of the Development Contract are as follows: • Surface Water Quality Management Fee: $1,263 • Surface Water Management Fee: $232,436 • Watermain Trunk Area Charge: $53,187 • Sanitary Sewer Trunk Area Charge: $28,493 • Park Dedication Cash in Lieu: $107,250 • Park Development Fee: $35,597 • Sealcoating: $9,646 ACTION REQUESTED Adopt the attached Development Contract and authorize its execution. ATTACHMENTS: Type Description D Contract Development Contract DEVELOPMENT CONTRACT AGREEMENT dated this oflune 2022 by,between,and among the City of Farmington,a Minnesota municipal corporation (CITY)and U.S.Home,LLC,a Delaware limited liability company(DEVELOPER). 1. Request for Plat Approval. The Developer has asked the City to approve a plat for Vermillion Commons(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": 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) a temporary drainage, and utility easement is to be provided to the city to cover any public drainage that will occur on Outlot A. The temporary easement is to be recorded with the plat mylars. f) Outlot B shall be deeded to the City. The deeds shall be recorded with the Dakota County Recorder with the plat mylars. g) the Developer record the Plat with the County Recorder or Registrar of Titles within 6 months from the date of City Council approval. 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 and filed with the City Clerk, b) The necessary security has been received by the City, c) The necessary insurance for the Developer and its construction contractors has been received by the City, d) The Plat has been submitted for recording with the Dakota County Recorder's Office, e) A temporary drainage,and utility easement across Outlot A has been submitted for recording with the plat mylars, f) A deed shall be provided for Outlot B and be submitted for recording with the plat mylars, g) 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 Plat will be developed in multiple phases in accordance with Plans A—E. Subject to the terms of this Agreement,this Development Contract constitutes approval to develop the Plat. 1 S. Changes in Official Controls. For four (4) years from the date of this Agreement, no amendments to the City's Comprehensive Plan,except an amendment placing the Plat in the current urban service area,or removing any part thereof which has not been final platted, or official controls, shall apply to or affect the use, development density, lot size, lot layout or dedications or platting required or permitted by the approved preliminary plat unless required by State or Federal law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in this Agreement to the contrary, to the full extent permitted by State law,the City may require compliance with any amendments to the City's Comprehensive Plan (including removing unplatted property from the urban service area), official controls, platting or dedication requirements enacted after the date of this Agreement and may require submission of a new plat. 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 have available in the sales office a copy of the approved plat, final utility plan and a zoning map or planned unit development plan are displayed,showing the relationship between this subdivision and the adjoining neighborhood. The zoning and land use classification of all land and network of major streets within 350 feet of the plat shall be included. 7. Zoning Development Map. The Developer shall provide an 81/2"x 14"scaled map of the plat and land within 350'of the Plat containing the following information: 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, unless a grading permit has been approved and issued by the City Engineer. If the Plans vary from the written terms of this Contract the Plans shall control. The required Pians are: Plan A-Final Plat Plan B--Soil Erosion and Sediment Control and Grading Plans Plan C—Landscape and Tree Preservation Plans Plan D-Zoning/Development Map Plan E-Final Construction Plans and Specifications 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 2 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 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 a City inspector 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, by doing so City inspector(s) shall not be waived from liability. 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 his engineer shall schedule a pre-construction meeting at a mutually agreeable time at the City Council chambers 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 file and GIS shape files, 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, Plans B. The plan shall conform to the City of Farmington Engineering Guidelines. Within thirty(30)days after completion of the grading and before the City approves individual building permits, 3 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 S 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. The City issued a Grading Authorization to the Developer on February 7,2022 allowing for rough grading of the Plat. 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, 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 ponding areas,wetlands,and wetland buffers,in accordance with the City's Engineering requirements. Natural Area signs will be installed as directed by the City Engineer. 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. Park Dedication and Trails. The total Park Dedication required for developments in the Vermillion Commons preliminary plat is 6.83 acres. Park Dedication for the entire development will be satisfied through a combination of land dedication and cash in lieu. The Developer will dedicate 1.6 acres as parkland within a future phase of the development. The Developer will pay cash in lieu for the remaining 5.23 acres required for the entire development over several phases with 1.43 acres being paid for as cash in lieu with the first phase. Park Dedication and Park Development Fees are detailed in Exhibit B for this Development. The Developer will construct and pave eight foot(8')wide bituminous trails along Denmark Avenue and 2201h Street W with Vermillion Commons first addition,all as shown in the Plans. 4 17. Landscaping. A. The Developer shall be solely responsible for the installation of all project landscaping, in accordance with the landscape plan. The landscaping shall be accomplished in accordance with a time schedule approved by the City as detailed in Section 22 of the Contract. B. All graded areas,including finish grade on lots,will require a minimum of 6"of black dirt/topsoil. 18. 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. 19. 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. 20. Time of Performance. The Developer shall install all required public improvements by November 15, 2022 with the exception of the final wear course of asphalt on streets. The final wear course on streets shall be installed the first summer after the base layer of asphalt has been in place one freeze thaw cycle. The Developer may,however,request an extension of time from City staff,which City staff 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. 21. 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. Outlot B shall be deeded to the City. The deed shall be recorded with the Dakota County Recorder with the plat mylars. Improvements to Outlot B shall be completed by the developer as required under the Plans. Further improvements to Outlot B may be completed by the Developer with subsequent phases of development and will be included in future Development Contracts. 22. Building Permits.Building permits shall not be issued prior to completion of site grading,submittal of as-built grading plan, public utility installation,curb and gutter,installation of erosion control devices,installation of permanent street signs and wetland buffer and natural area signs,paving with a bituminous surface,site seeding,mulching,and disk anchoring. 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. Landscaping will be installed in accordance with the landscape plan. 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. 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 5 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. A limited number of building permits may be issued for the construction of model homes giving consideration for water supply and access to the select lots. In general,to allow a building permit for a model home,the site needs to be in reach of a hydrant used for firefighting purposes and be accessible to fire apparatus. The Building Official,in consultation with the City Engineer and Fire Chief,is authorized to issue a building permit for two(2)model home buildings in conjunction with this plat. Issuance of the model home building permit temporarily used as an office or show house for on-site real estate sales and for no other purpose(the"Model Townhome Building"),may be authorized by the Community Development Director prior to Substantial Completion of utilities and streets, however, the Model Home Lot(s) (as hereinafter defined) shall have adequate access, including a paved bituminous road within one hundred fifty(150)feet of the building pad for the Model Townhome Building and a temporary gravel access drive, twenty (20) feet in width, from the paved road to the building pad for the Model Townhome Building is installed,adequate parking,and sanitary sewer and water are available upon Model Townhome Building completion,and there is a grading as-built plan submitted and reviewed by the City for the lot identified to include the Model Townhome Building(the"Model Home Lot")and the surrounding improvements. C. A final Certificate of Occupancy will not be issued for any Model Townhome Building until the Model Home Lot has adequate access,parking,and circulation and meet all other building code requirements,including but not necessarily limited to,connection to sanitary sewer and water.. 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 by 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. 23. 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 6 The foilowing 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,haired&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(10) 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. 24. 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. All costs required to be paid or reimbursed by the Developer to the City pursuant to this Section 23.,or otherwise in this Agreement,shall first be paid from the Cash Escrow. The balance of the Cash Escrow will be accounted for by the City. Upon written confirmation,the Developer shall within fifteen(15)days submit additional amounts to the Cash Escrow to reimburse any additional charges. Likewise,upon completion of the Work,the City shall refund any remaining balance to the Developer in accordance with this Agreement. Upon request,and within ten(10)business days of the request,the City will provide copies of detailed invoices of the work performed by the City and its consultants. 25. 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 requires 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. 26. 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 7 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. 27. 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) Water Treatment Plant Fee d) Sanitary Sewer Trunk Area Charge e) Park Dedication f) Park Development g) Sealcoating h) GIs 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. 28. 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$2,536,565. The amount of the security is based on the calculations shown in Exhibit "B". This breakdown is for historical reference; it is not a restriction on the use of the Security. The bank and form of the security shall be subject to the approval of the City Administrator. tetters 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. 29. Warranty.The Developer and the Developer's 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 streets is one(1)year. The warranty period for underground utilities is two(2)years. The warranty period on underground utilities shall commence following its completion and acceptance by the City Engineer in writing. The one(1)year warranty period on streets shall commence after the final wear course has been installed and accepted by the City Engineer. 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 and streets. Failure of the Developer to complete the required testing or request acceptance of the utilities and streets 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 8 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. 30. 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. 31. 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 taws 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 28(Security)of this Agreement. The City may 9 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 30(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 31(Developer's Default)of this Agreement and the Developer will reimburse the City as defined in said Paragraph 24(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 underthis 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. 32. 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: U.S.Home,LLC Attention:Joe Jablonski 16305 36th Ave.No.,Suite 600 Plymouth,MN 55446 10 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: Lynn Gorski,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: Lynn Gorski,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 Lynn Gorski,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 it SIGNATURE PAGE FOR THE DEVELOPER DEVELOPER: U.S.Home,LLC By: [print name] Its: STATE OF MINNESOTA } )ss. COUNTY OF DAKOTA } The foregoing instrument was acknowledged before me this day of_ 20 by _ ,the of U.S.Home,LLC,a Delaware limited liability company,on behalf of the company. Notary Public Drafted by: City of Farmington 430 Third Street Farmington,Minnesota 55024 (651)280-6800 12 EXHIBIT"A" LEGAL DESCRIPTION The East Half of the Southeast Quarter of Section 36,Township 114,Range 20, Exception therefrom the South 190 feet of the West 500 feet,and also Except that part of the East Half of the Southeast Quarter of Section 36,Township 114,Range 20, described as follows: Commencing at the Northeast corner of said East half of the Southeast Quarter;thence South(assumed bearing)along that East line thereof a distance of 450.00 feet to the point of beginning of the land described: thence continuing South along said East line a distance of 2488,91 feet;thence on a bearing of East a distance of 464.00 feet to the point of-beginning,Dakota County,Minnesota. 13 Development Contract Calculations Exhibit B VERMILLION COMMONS IST ADDITION Development Contract Acerages for Platting Calculations Total Platted Area: 75.78 AC Land Use Type Wetland/Floodplain: 14.63 AC WETLAND County/Collector ROW: 8.63 AC ROW Single Family Area: 9.10 AC R-HD Outlot A: 41.54 AC FUTURE Outiot B: 1.88 AC POND Total Development Fee Acreage": 52.52 AC <------Used for Overall Park Ded Calcs Total by Use Type R-LD 0.00 AC R-HD 9.10 AC Comm/I/I 0.00 AC ROW 8.63 AC Pond 1.88 AC Wetland 14.63 AC Park_ 0.00 AC Future 41.54 AC _ Current Phase Development Fee Acreage: 10.98 AC <------Used for all Development Fee Calcs Number of Units(Preliminary Plat) 276 Number of Units(Final Plat) 76 Area of new bituminous 5,918 Sq.Yds. All Public Streets Exhibit B Page 1 of 3 Development Contract Calculations Exhibit B VERMILLION COMMONS 1ST ADDITION Development Contract BasedPlatting Fee Cacluations on 2022 Surface Water Quality Management Fee Residential,single/multi $ 115 per acre $1,263 Comm./Industial/institutional $ 238 per acre $0 r $1,263 Surface Water Management Fee Residential,low density $ 12,744 per acre $0 Residential,high density $ 21,169 per acre $232,436 Comm./IndustiaUlnstitutional $ 25,484 per acre $0 $232,436 Watermain Trunk Area Charge All Land Use Types $4,844 per acre $53,187 Sanitary Sewer Trunk Area Charge All Land Use Types $ 2,595 per acre r $28,493 Park Dedication Dwelling units/acre(Preliminary Plat) 5.26 Percentage of land to be dedicated as Park 13% Required Park Land w/Final Plat 1.43 AC Dedicated Park Land 0.00 AC Balance paid as Cash in Lieu 1.43 AC Appraisal Value/Acre $75,000 per acre $107,250 Park Development Fee Park Development Fee per acre of required parkland $ 24,938 per acre Total Park Development Fee $ 35,597 F7 $35,597 j Sealcoating Bituminous Seal Coating $ 1.63 per square yard �—$9,646 Development Contract Escrow Construction Cost $1,988,552 Contract Administration Fee 3% of Construction Cost $59,657 Construction Observation Escrow 5% of Construction Cost $99,428 $159,084 Total of Fees Due upon Platting $626,956 Oversizing Sanitary Sewer Trunk Oversizing N/A Watermain Trunk Oversizing $24,000 Total Reimbursements Paid upon Proof of Plat Recording $24,000 Exhibit B Page 2 of 3 Development Contract Calculations Exhibit B VERMILLION COMMONS 1ST ADDITION Development Contract "Construction Construction Security Cost Amount Grading/Erosion Control GRADING PERMIT $0 Sanitary Sewer $472,467 $590,584 Water Main $416,552 $520,690 Storm Sewer $411,928 $514,910 Street Construction $687,605 $859,506 Monuments $200 per lot $15,200 $19,000 Street Lights&Signage $25,500 $31,875 Wetland Mitigation N/A N/A Total Security Amount $2,636,566 Exhibit B Page 3 of 3 EXHIBIT"C" IRREVOCABLE LETTER OF CREDIT No. Date: TO: City of Farmington 430 Third Street Farmington,MN 55024 Dear Sir or Madam: We hereby issue,for the account of and in your favor,our irrevocable Letter of Credit in the amount of$ 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 Mayor or City Administrator of the City of Farmington. c)Be presented for payment at (Address of Bank) This Letter of Credit shall automatically renew for successive one-year terms from the date indicated above unless, at least forty-five (45) days prior to the next annual renewal date, 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.400. 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] 14 EXHIBIT"D" MORTGAGE HOLDER CONSENT TO DEVELOPMENT CONTRACT ,a ,which holds a mortgage on the subject property,the development of which is governed by the foregoing Development Contract,which mortgage is dated and recorded with the Dakota County Recorder/Registrar as document number agrees that the Development Contract shall remain in full force and effect even if it forecloses on its mortgage. Dated this day of 20y By: [print name] Its [title] STATE OF ) )ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of_ ,20_,by the of a on behalf of the entity. Notary Public DRAFTED BY: City of Farmington 430 Third Street Farmington,MN 55024 (651)280-6800 15 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 Farmington MN.gov TO: Mayor, Councilmembers and City Administrator FROM: Joshua Solinger- Liquor Operations Manager SUBJECT: New software proposal- Liquor Operations DATE: June 6, 2022 INTRODUCTION *discussed at work session 6/6/22* 1 n February, Peter asked me to investigate cloud-based point of sale systems. His main concern was that if our server ever went out, we would be out of business for a few days while they got it sorted. While researching there are many benefits of a cloud-based system other than just stability! I started my research by reaching out to our municipal liquor partners in the metro. Rite Software kept popping up, and the reviews have been glowing. I reached out the Rite and got a full demo shown to me. I also visited the Northfield municipal liquor store to see the software live.This would be a game changer for us! DISCUSSION The ask: Replace our Point-of-Sale provider ECRS with RITE Software. The benefits: • We would have a local rep(no 1-800#'s!). • I ntegrated employee time clock—igformation sent directly to payroll. Our current system has been and still is the honor system. • Local municipal partners that use the software,we can reach out for best practices. • System available anywhere, anytime to specific users via their smart phone. • Significantly easier to navigate and customize sales data spreadsheets. • Built in purchase order generator—HUGE TI ME SAVER, it would save two full days of labor for us. • Automatically generates end of month reports and emails sent to finance and me. • Very user-friendly interface at the point of sale and back office. There are numerous built-in efficiencies with this software that we would utilize daily! • H ighly customizable in every way. They also take feedback and requests and que them to add in new features. BUDGET IMPACT The cost: • One-time upfront cost$18,746 (upfront costs, new pc's, support package, etc.) • Monthly fee$290 (current POS $355.51) Noteworthy items: • Our contract with our current POS provider runs through October(paid in full), Rite has offered a $750 discount to help offset that loss. Making the move a few months prior to our contract expires is a wise move—it gives RITE ample time to port overall our information! • We would need to switch credit card processors (Tracy approves of this!), our current contract runs through March 2023.There may be$530 in fees to cancel early, but that may be$0 depending on how the contract was negotiated. If we chose RITE's preferred processor,we would save$60/month. It is hard to predict a RO I on this investment. Considering the potential cost of downtime associated with a server outage, some of our PC's reaching end of life,the labor savings with the built-in efficiencies, and monthly savings of$65.51—it seems like a logical decision and a great use of our Cl P funds (if applicable). This change comes with the support of IT and Finance. ACTION REQUESTED Approve the transition to Rite Software. Once approved we can start the process of porting data from our old provider. We would go live in August. ATTACHMENTS: Type Description D Backup Material Estimate summary D Client: Farmington Liquors Sales rep: Gary Noble Date-. 5-102022 Due to global supply chain issues,prices are subject to change upon notice at any time prior to proposal acceptance. Otherwise,proposals automatically expire 60 days from the date above. RITE Proven Process RITE uses our"Proven Process"to deploy systems to new customers. This is a process that has been refined over more than a decade of experience working with retailers like you and we consider it the Mutual Kick off Customer "Full throttle" system review! cuma m evaluation completea self hands on approval (i0 LIVE phase meed guided training deploymenttraining curomr TnlnYp Nmdt This is a time tested process that emphasizes two very simple ideas: ONE:An ounce of prevention is worth a pound of cure. Time spent preparing for go-live is time well spent. If the stakeholders don't take the time, it becomes a debt that always gets paid. If all parties don't do the work upfront the debt will get paid,during go-live- and with a tidy amount of interest. A training issue, as an example, is easy to address early before it becomes a "hair on fire"event on the first day of go-live if people are not prepared. TWO:Getting the proiect done quickly= best results for customer As you learn more about our process you'll notice the emphasis on us moving quickly,and our expectation that the client does the same. There are many benefits, including: • The sooner we deploy,the sooner you reap the benefits of your new system. If the new system will help you sell$X more or save$X per month,the sooner you start the sooner that happens. • Many things we do during the deployment are like an ice cream cake,they melt with time. If we train you today and we wait a month to go-live you know the knowledge will dissipate without use. If we import your data,the longer we wait the more inaccurate the data becomes. The list goes on and on. Understanding our process is critical as we base our proposal pricing on the fact that we can apply these tactics to your project More details can be found in the"RITE Proven Process"document online which was sent as an additional attachment to the email containing this quote—you should review it before accepting the proposal to ensure you're comfortable with the process. If you are serious about your business and making the most out of this investment you'll love this process but, no doubt, it is a commitment on your part. *Although we use the word quickly to describe the pace of the project, deploying the RITE way generally takes 4-6 weeks from the time the proposal is signed and deposit received. Please note that with the growth of the Cloud Retailer product we are quite busy so following these processes is critical to a successful deployment. Page 2 of 16 Initial �. Summary of proposed software, services, and equipment Cloud Retailer POS subscription/upfront Costs � L� N �l�, Ir�IIt� �•CUIII Cloud Retailer standard pricing is $50 per month fee per POS+ $500 per POS upfront License cost. The Cloud Retailer monthly fee includes 2GB of database space per POS. The system does include the ability to archive old data. Included support/premium services There is a basic level of service included in the Cloud Retailer subscription fee—see the Cloud Retailer Wiki site for the terms of this service here: http://wiki.cLoudretaiLer.com/tech-articles/other/support-covered-by-subscription-fee *Subject to change,with notice given. Premium services are used by customers to cover services not included in the base level of service. The majority of our customers buy a block of time and use it as they desire. The block quoted with your system is included below: 5 Hour Support Pack $675 15 Hour Support Pack $1,875 Packages must be purchased before services are rendered to get package rate on work. Cloud Retailer includes a full fledged complement of software components in the price of the base software. In order for us to make functional, configure,train, and optimize your use of those components,there is an additional cost. If intend to utilize a specific module make sure the "Included"column below says YES or it will not be deployed, The price below includes: • Time for our staff to enable a given functionality, including initial configuration that may be needed. • Access to training materials and consulting time. Some training will be self-guided, some one-on-one, and much of this service is conducted through "system review". Which of these methods is utilized depends on the module. We will send (2)TWO individuals through the training process for the price stated. o See details for each module on our wiki site. https://wiki.cLoudretaiLer.com/training o We employ a "train the trainer" approach and us training two users is a sweet spot. One person doesn't allow for enough feedback about the business and is also risky (what if that person moves to another job). Three or more can make our conversations unfocused and have more overhead. Page 3 of 16 Initial • Supportability of your system. While all of these functionalities are generally accessible in the system if you do not have two staff members trained on how to use them—we will not provide support on the functionality. You can schedule additional training at any time post go-live. Software modules to deploy 100 Basic install&training+POS basics and back office basics YES $450 125 End of day reconciliation YES $75 150'i Back office reporting YES $100 175 Shelf tag printing YES $75 200 Age verification YES $50 225 Gift card creation and processing YES $50 250 Employee time clock YES $75 275 Setting up basic promotions YES $50 300 Rentals/kegs*dymo label printer required for tag printing NO $100 Inventory—including purchase orders,inventory transfers, 325 physical inventory counting YES $450 350 Introduction to configuring Taskpads(buttons at POS) YES $150 Creating and managing orders(work orders,layaways,special 375 orders,web orders) NO $200 425 Customer loyalty programs NO $450 450 Basic product importing NO $150 475 Supplier purchase planning YES $350 500 Configuring dynamic attribute sets NO $150 525 Multi-store functionality YES $600 Formula based,advanced promotions.Multi layered, quantity/volume discount schemes,price levels,etc...*requires 575 Basic Promotions 275 training as precursor YES $400 600 Importing of other data types NO $350 Our objective is to train you on how to execute a majority of the functionality you need to ensure you can wield the system to your maximum benefit and keep your support costs low. Taskpad training (the buttons you use at the POS) is a great example. The system comes with a default configuration and we will train you how to adjust as needed. If you want us to perform services like configure your taskpad for you instead of being trained to do so yourself,we will happily do so utilizing premium service package time. If you need many specialized buttons set up (10+buttons)or you require some specialized button workflow make sure that you discuss it with your sales rep ;_that they list this in the"Customer Special Requirements"section of this document. Do not accent the pronosaL unless ALL sgeciaL requests are Listed there. Page 4 of 16 Initial Add-on modules Cloud Retailer includes a number of software Add-On integrations and features that are no included in the price of the base software. In order for us to deploy, configure,train, and support your use of those functionalities,there is an additional upfront and ongoing cost. If yQu are going to utilize a specific module make sure the 'Included"column says YES for each module you intend on deploying. .. Includes Android based inventory scanning device,instaLLation,training.Requires wifi infrastructure with solid coverage throughout Cloud Retailer Mobile $1,695 $19 Per device building. 0 Other file formats supported butthere are Supplier Integration additional costs.A Fintech account is required (Fintech) $400 $80 Per store and does have additionalfees. NO We can integrate to Quickbooks on premise, online,or create a comma separated flat file. Our standard integration assumes that the data wiLL be imported into the accounting system via GL buckets for each department and tender type.Custom mappings are an option however they come with an additional cost.See our wiki Accountina integration $450 $20 Per store site for additional details. NO Assumes the report that would execute the Base email alert alert already exists.Does not include time to configuration $50 $0 Per alert design custom reports that may be needed. NO Credit card processing fees:2.69%+25 cents per transaction E-commerce card processing is more expensive than in-store rates as they are higher risk Uncorked Commerce $850 $180 Per Store transactions(no physical card is present). NO AC Nielsen export $400 $10 Per store YES Drizly integration $110 $10 Per store NO City Hive integration $275 $20 Per store NO If you want us to support a non-standard EDI integration that we have existing adapter for the Addition aUSingLe EDI setup cost is typicalLy$400.To build new importformats $TBD $15 Per format adapters is typically$1500 to$2500. NO Onsite Tech (hardware instaLL day) $1,150 $0 Per Day See details on proposal. 0 Total one way mileage to each Location where Mileage $2 $0 Per mile onsite instaLL/training will occur. 0 Page 5 of 16 Initial More detailed information about the software and add-on modules for Cloud Retailer can be found on our Wiki Page at: http•//wiki cLoudretaiLer com/rite proven process rpp/cloud-retailer-mo -lis *Integrations do not include the work to get that 3rd party site operational- it is merely an integration. Customers should bring their partner into this process to connect with a RITE technical team member. (0) CloudRetailer RITE Handheld ($1,695 per+ $19 per month) This includes a one-time license cost for the CloudRetailer Mobile Manager software, which is a tool to create and receive purchase orders, create and receive inventory transfers, perform physical inventory counts, print labels, and manage item properties. It also includes a RITE handheld running Android OS, with 1D scanner, charging dock, and charging cable*$19 per month software WNW maintenance charge is required. Cloud Retailer credit card processing module Cloud Retailer includes the ability to process credit cards using some of the most secure technology available and can be utilized through multiple payment processors. There is an ongoing hard cost for RITE in supporting these solutions, maintaining and verifying the security required for these solutions and therefore there is a charge to utilizing this technology. Please choose one of the following options: We cannot integrate with WorldPay ❑ I am not processing credit cards or will be using a non-integrated payment terminal ($0) ✓ NAB signed through RITE (NAB preferred—therefore$15 per month waived). Account must be signed via RITE. ❑ I am bringing my existing payment processing account with First Data, Heartland,TSYS (NON-RITE) account- S15 per month per POS If you are processing credit cards through someone else and interested in processing with NAB via RITE (they can usually beat most rates). Assuming you would switch (provided they meet or beat your current terms), and they cannot meet or beat your current pricing (2 months statements required), RITE wiLL credit your CardDefender$15 per month maintenance fees for one year under current processor, AND give you a free month of Cloud Retailer subscription services. If you're in a contract with another provider very often these contracts are "bought out" by NAB to allow you to open an account with them. See contract terms and conditions for details. Typically,the payment processor sources the payment terminals (Certain PAX devices supported) however if you require RITE to provide the terminals Let us know. We REQUIRE that the retailer use a Tailwind mounting stand as it enhances the longevity of the device. Page 6 of 16 Initial If using your existing payment provider please provide Processor contact information here: Company name:_NAB Rep name: _Stacy Carillo Rep email: Rep phone: _ _ Customer wants to use contactless payments (pay w/mobile): YES Customer requires PIN based debit: YES Existing hardware evaluation / deployment If RITE will not be providing hardware to the customer, all existing hardware must meet our minimum standards and be well prepared for use with the new system. See our website for details and a list of compatible barcode scanners, receipt printers, and other peripherals: https•//helpdesk cLoudretaiLer com/support/solutions/articles/67000669628 • Bluetooth scanners are by nature less stable than wired ones and though a brand or model may be compatible,things like RFID and other signal interferences can cause connectivity issues. We prefer to deploy wired barcode scanners. • Cloud Retailer ONLY supports ZPL(Zebra programming language) label printers • Changes in State Driver's License technology requires upgrading to 2D barcode scanners in order to interact with new DL's(age verification and/or setting customer to transaction). • CloudRetailer does NOT support old school green character customer facing pole displays. • A specific handheld bundle has been engineered to work with CloudRetailer. Other handhelds MAY be able to be utilized as a "dumb" device for counting inventory. Under no circumstances do we support off brand POS hardware. Typically we're able to make most mainstream products work,though they may not be able to utilize the entire Cloud Retailer feature set. We will ONLY attemptthis on major hardware manufacturer brands. These brands are specified on the hardware page mentioned above. RITE makes no guarantee that it can make a specific device work, at which point we will apply a credit for the amount paid to make the hardware work against the purchase of new equipment from RITE. If you believe you've received an exemption to these standards, it must be stated in writing here (space below). Looking to retain Epson receipt printers and connected cash drawers, Zebra 5050 label printer, and Honeywell 2D barcode scanners. Will have to replace Computers and Monitors as they have all in ones that don't meet specs. World Pay verifone devices will have to be replaced and sourced by new processor or RITE. Page 7 of 16 Initia POS Hardware included in proposal Hardware components that will be purchased through RITE at this time listed below. **We may need to provide and have your permission to provide"reasonable substitutions" due to COVID shortages AND this also may delay system deployment as chip shortages have delayed all hardware. Inflation has also increased prices on Computer hardware component. (4) POS Station CPU ($1,049 per register) Retail-Ready Business Class mini NUC (Intel processor with a Passmark speed score of at least 3200, 4GB of RAM, 128GB solid state hard drive, and Windows 10 Professional. Includes RITE's Pure POS retail image for Windows. Includes 3-year warranty (4) Logic Controls 15"Touch Screen Monitor ($675 per) (4) EMV Terminal Mounting Bracket ($68 per terminal) A mounting bracket that allows you to bolt the unit to your countertop and have it nicely presented to customers. It also enhances the longevity of the payment terminal. 4- (4) PAX EMV payment terminals sourced by RITE ($450 per) Arie0 Toblet inslaled on POS stantl (4) NAB debit encryption for Aries8 ($25 per) Additional Hardware Options (not currently included or calculated in Total below) *Circle,and Initial next to,anything you as the customer would like to add on to your quoted project. Datalogic QD2430 2D Barcode Scanner ($289 per) Epson TM2011 Thermal Receipt Printer ($255 per) APG Vasario Cash Drawer (19 X 15 inches) ($250 per) Logic Controls LV4000—(8.4" LCD Net Display) $349 per (1) Zebra ZD220 Direct Thermal Label Printer ($450) The ZD410 has a 2" printing width and can print 3.5 inches per second. A great compact label printer for shelf tags or item Labels. This is a thermal barcode label/shelf tag label printer and includes a roll of 2.25 x 1.25 sticky labels. Page 8 of 16 Initial User acceptance testing hardware As per the RITE Proven Process, we have your team do "user acceptance testing". In order to do this properly we need your team to have hardware that can be configured with Cloud Retailer to get the full effect of your new system. Optimally - you'd have a full blown POS that is reconfigured for Cloud Retailer- at the very minimum we need you to have a spare 2D barcode scanner. Please choose from one of the following options. ❑ I am buying a new POS station and can set this up out of the way somewhere for cashiers to train/test on. ✓ I have a barcode scanner that is compatible with Cloud Retailer. I am ok with having two scanners plugged into one of my POS stations temporarily. One that can be used with my existing POS software and the other will be used with Cloud Retailer (as the configurations are incompatible). Data conversion This proposal includes (choose one): ❑ I am starting from scratch—but using a template product DB provided by RITE. Please see terms of use/data ownership agreement for more details: fps:#heLpdesk cLoudretaiLer com/support/solutions/articLes/67000669643 ✓ Conversion of non-RMS database:Allowing our import tech to take a full backup of your database in order to import customers, products, prices,and suppliers.This option does NOT include importing historical data. PLEASE ADD ANY IMPORTANT DETAILS ABOUT YOUR IMPORT HERE Catapult multi-store Here is a link to a very important article with considerations about data conversions—please review carefully. https:#heLpdesk.rite.us/support/solutions/articles/67000669604-best-practices-for-using-the-t emplate-database As stated in the article, garbage in, garbage out. We strongly recommend prior to providing your database that the data is clean and has been translated where needed. Our quoted price does not include any truncating, massaging, manipulation, cleansing, deduplication,transformation, or translation of data unless explicitly stated in the comments above. We DO offer these services at an additional cost to our standard data import costs, as it is often a time-consuming process but can definitely be worth the time for some users. If these are needed,the tech and sales person will work with you on the options and the costs. Page 9 of 16 Initial Standard and custom reporting This proposal assumes that the Cloud Retailer factory reports, receipt templates, and labels will work in a satisfactory way for the end user. In order to view a gallery of our most common templates go to this address: https:#heLpdesk.cLoudretaiLer.com/a/solutions/articles/67000669575?portaLld=67000084453 If you have critical reports and you are not 100% positive the equivalent data is included in a Cloud Retailer report, provide them to us and make sure they are listed below in the "Customer Special Requirements" section. We very likely have them or something similar or can create a report for you (as a premium service). APIs, custom scripts, data exports/imports. Integration processes are a functionality of the system to import, export, or update data in an automated fashion. API's are functionalities that allow for 3rd party apps to integrate with Cloud Retailer. None of these are provided unless specified. If you do not see something that meets your requirements or have questions please ask prior to approving this proposal. If a requirement is not listed in this proposal then it is not included. Any special requests need to be notated in the "Customer Special Requirements" section of this document. If you're unsure, please ask—we're happy to add notes in the special requirements section to make sure everyone is clear on the requirements of the project. *Note to current users of POS systems Be ready to do some new learning and breaking of old habits while adopting a few better ones. "A curve in the road is only a problem....if you don't make the turn" Customer special requirements / notes *Customer may add any notations here that were previously discussed with their Sales Rep that should be highlighted. This is a solely a project notes section and not a place to add or request new features. AC Nielsen. 15% off wines for Wine Members (via a Custom Persistent Discount in CR). Have the following handhelds (purchased this year) and will load Lite version of CR mobile on them. The customer has no other special requirements. All CR factory standard reporting, receipts, and labels are sufficient. We can create CLoudRetailer compatible labels) if provided a sample of what you require via support package time. These samples should be provided before the proposal is signed. Page 10 of 16 Initial Investment summary QTY Cost Total Cost 4 Cloud Retailer core- upfront $500 $2,000 1 Cloud Retailer multistore core- upfront $200 $200 I1 MMBA testimonial and referral discount -$750 -$7501 IDatabase import(2 store spreadsheets) $1,198 IPOS Software Configuration &System Training $2,8751 I 1 15 Hour Support Package $1,875 $1,875 IAdd-on modules- set-up (AC Nielsen) $4001 IPOS Hardware total(4 cpu,4 Touch,ArieSB) $8,7961 IPOS hardware configuration (upfront) $6751 I Subtotal: $17,2691 I Sales tax: 7.13% $1,2301 IOne time cost total: $18,4991 I4 Cloud Retailer POS- monthly subscription $50 $2001 4 Payment processing module $15 $60 I4 Payment processing module discount(NAB) -$15 -$601 I1 Cloud Retailer multi-store- monthly subscription $20 $201 I1 Add-on modules - subscription (AC Nielsen) $10 $101 IRecurring monthly charges: $2301 I Sales tax: 7.13% $161 IProposal total: $18,7461 I IDown payment required: $11,247 *If taoesa a e been at istany ke n�in�mnpe ted, RITE reserves the right to invoice the customer for the app"It's unwise to pay too much, but it's worse to pay too little. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do" Page 11 of 16 Initial Purchase agreement Prices are intended to be honored on this quotation for sixty(60)days from the date of proposal. 60%down payment to execute proposal. Balance is due at the time your go-live date is scheduled. ALL rendered services at time of refund request are non-refundable as work already undertaken. There is a 25% restocking fee on aLL standard hardware-any special order hardware is non-refundable. Any pricing information included herein is for quotation purposes only and is not an order or offer to sell. All prices and descriptions are subject to change without notice. ALL products are subject to availability from the manufacturer. This price may not include any applicable taxes,tariffs,or shipping costs. We strive to properly calculate these items but if we do not we reserve the right to collect these at any point in time if it was not calculated properly initially. All billing and support notices will be performed via email to the address listed below. billing@rite.us support@rite.us Please make sure these are in your"safe email"list. IMPORTANT DETAILS ❑ Important:Cloud Retailer subscriptions start 45 days after the kick off meeting occurs,regardless of go-Live date. Please make sure any special notes about your timeline are listed above. If the deployment is completed in Less than 45 days you will receive the subscription days prior to that for free. If you go-live Later than 45 days,the subscription charges will have automatically started on the 45 day mark. ❑ RITE desires the client to provide"always on"remote access to POS stations,at a minimum during the deployment stage but preferably long term. Stores will be sent"invite codes"and wiLL be required to run a process to invite us to each POS station. The client authorizes this activity. ❑ The proposal includes OFFSITE instaLLation and remote training. This means you will be responsible for the physical plugging in of equipment and mounting of the units. Once they are connected to electricity and the network and securely mounted we will work with you to finalize the installation. Configuring the equipment one time is included in the scope of this project. If equipment has to be configured multiple times that would be out of scope. ❑ The customer is aware that the Cloud Retailer subscription includes base services only with the option to purchase premium support services,which bear an additional cost. See Cloud Retailer support terms and conditions for more details on definition for base services versus premium services: http://wi ki.cLoudretaiLer.com/tech-articles/other/su pport-covered-by-subscription-fee ❑ The premium support packages offered by RITE(blocks of time) provide the customer with a discounted price that is lower than the standard hourly rate. If the customer opts not to choose one at this time they acknowledge that any premium service executed by RITE will be done at their current hourly rate biLLed in 15-minute increments and subject to their standard support agreement. ❑ ALL products and services that are to be delivered as per this quote need to be explicitly included in writing in this quote. We want to make sure you know exactly what you're getting and that we understand your expectations to ensure the highest level of customer satisfaction. If something is not expLicitLy Listed on the pr000saL.it's not included. Please make sure any and all special requests or special circumstances are well documented on this contract. ❑ By signing this document you are agreeing to Cloud Retailers Data Ownership,Privacy Policy,and Terms of Service. Details can be found here: hht ps//helpdesk cLoudretaiter com/a/sotutionshrticLes/67000669701?portaLld=67000083022 If any of these options are not acceptable or desirable PLEASE discuss alternatives with us arior to executing this proposal. Page 12 of 16 Initial MONTHLY SUBSCRIPTION CANCELLATION POLICY We fully expect the Cloud Retailer product to earn your continued patronage each and every month. If we are not Living up to your expectations you are free to cancel your service at any time with the following considerations: • If more than the current month's fees have already been paid (i.e.a yearly subscription paid in full),a prorated refund will be issued after the thirty(30) day data retention period,less any discounts that were previously applied. • All licensed POS Devices that have been active for at least one(1) day during the current month will be billed for the entire month. For example,if you wanted to activate service so that you could have additional registers for Christmas,a minimum of one month would be billed. • Written notice of termination is sent to billing@rite.us at least ten (10) business days prior to the end of the current month. Notices sent after this period will end during the next month. • All outstanding or past due balances with RITE have been paid in full(or appropriate arrangements made with the billing department). • Access to the POS terminals and back office will cease at the end of the current month's service. All data required should be exported prior to sending the cancellation notice as data will be removed at this time and will no longer be recoverable. • Cloud Retailer"core"fees represent the cost associated with the service of initially setting up and turning on your Cloud Retailer software.It does not include costs for installation of the point of sale software. It is non-refundable. UPTIME GUARANTEE. Cloud Retailer has a guaranteed uptime of 99%on all hosted services. • The back office application viewed through a browser is considered the"hosted"service. The point of sale/cash register application is reliant on the user's hardware and is not wholly reliant on the hosted back office services. Therefore,the uptime of this functionality is based on the end users responsibility to maintain their equipment and is therefore excluded from this guarantee. • RITE Enterprises Inc.is responsible for the uptime of its"cloud" (servers,network,etc). If a user loses access to hosted services due to a network,the internet,or computer issues on their end it would not be counted as downtime. • Measurement of the uptime excludes time between 1 AM and 3 AM Eastern Standard Time(nightly) as this is a maintenance window for the application. • If Cloud Retailer does not meet this uptime guarantee then the user can submit notice of times they suspect as qualifying as downtime at which point they will be compared to internal records. If valid the user would be credited for that downtime that is in excess of the 1%downtime allowed. This credit will be prorated to their bill based on the percentage of downtime that occurred. This credit cannot exceed the monthly subscription cost of the software for any given month. • Downtime is defined as a problem with the software that inhibits the user from being able to perform more than 80%of the normal functions in any reasonable capacity. The user must report these issues within 15 minutes of the occurrence taking place for them to be logged as downtime. DEFECT. For purposes of support,this agreement defines a defect as a problem with the software or systems not operating in accordance with how the software was originally designed (which may or may not be in agreement with what any given user would prefer). LICENSE. RITE Enterprises Inc.shall retain the ownership of the provided copy of Cloud Retailer software and the documentation provided therewith (referred to as a single entity,or as components,as"the Licensed Software") which is licensed on a non-exclusive basis for use under the following conditions. Page 13 of 16 Initial PERMITTED USES. Subject to the terms hereunder, RITE hereby grants to Licensee a limited,non-exclusive, non-transferable,revocable license,without the right to sub-license,to install and operate the Licensed Software and to operate an account on the RITE website and related applications solely for the benefit of Licensee and not for any third party,until the termination of this Agreement.Any rights not expressly granted hereunder are reserved. There are no implied rights of any kind.To the extent that the Licensed Software includes intellectual property rights of any third party("Third Party Rights'),the license granted is to the extent that RITE is able to license such Third Party Rights. PROHIBITED USES. Licensee shall not(a) make copies of or further distribute the Licensed Software,including copying onto any other medium, (b) distribute,rent,sublicense,lease,resell,or assign the Licensed Software, (c) alter,modify or adapt the Licensed Software or the RITE Services,including but not limited to,translating, decompiling,disassembling,reverse engineering,or creating derivative works, (d)export the Licensed Software without the appropriate foreign government licenses and without RITE prior written approval,(e) resell,rent or otherwise provide access to the RITE services to a third party or(f)take any action in an attempt to obtain any other RITE user's data,cause malfunction,crash,tamper with or otherwise impair the RITE website and related applications,and their services.Any rights not expressly granted hereunder are reserved by RITE. No rights in the Licensed Software or RITE Services are granted,whether expressly or by implication,including, without limitation,any rights in any patents,copyrights,trademarks or trade secrets embodied therein,except in connection with the permitted uses expressly described herein. ARBITRATION. The validity of any controversy or claim arising out of or in connection with this Agreement shall be subject to Arbitration by a single arbitrator under the auspices of the American Arbitration Association ("AAA") pursuant to its Commercial Arbitration Rules. Notice of the hearing is to be given to the parties in writing by registered mail,return receipt requested,addressed to said parties at the addresses herein set forth. All arbitration proceedings shall be conducted in accordance with the rules of the AAA at the branch of the AAA closest to the Vendor's principal place of TAXES. Customer hereby agrees to be responsible for and to pay any and all sales taxes levied by federal,state or Local governments,and such taxes shall be collected by Vendor pursuant to Paragraph 3 above;and,in addition,the Customer shall indemnify and hold Vendor harmless from payment of any taxes,including but not limited to sales,use, or personal property taxes when and if Vendor is required to pay such tax based on this Agreement. LIMITATION OF REMEDY. Customer's exclusive remedy and vendor's entire Liability in contract,tort or otherwise,in the event that vendor,exercising reasonable diligence and having made repeated efforts,is unable to comply with the requirements as set forth herein,shall be the payment of actual damages incurred,but not to exceed the actual contract price for the item as specified herein. INDEMNIFICATION. You agree to indemnify,defend,and hold harmless RITE Enterprises Inc.,its officers,directors, employees,agents,and third parties for any losses,costs,liabilities,and expenses(including reasonable attorneys'fees) relating to or arising out of the use or the ability to use the Site or services,any user posting made by you,your violation of any terms of this Agreement or your violation of any rights of a third party,or your violation of any applicable laws, rules or regulations. NOTICES. All notices required or permitted hereunder shaLL be in writing and shall be deemed duly given,upon dispatch,if sent registered or certified mail,return receipt requested,to the parties at the addresses listed on the first page of this Agreement,or to such other address as the parties may from time to time designate by appropriate notice. Page 14 of 16 Initial Recurring ACH Payment Authorization You authorize regularly scheduled charges to your checking/savings account_ You will be charged the amount indicated below each billing period_A receipt for each payment will be provided to you and the charge will appear on your bank statement_ Business Name: I authorize RITE Enterprises to charge my (Full Name) (Merchant's Name) bank account indicated below for$ on the 1st or 95th of (Amount S) (day) each month (week,month,etc.) This payment is for Recurring software subscription Descri tion of Goods/Services Billing Information I also authorize the one-time charge of for my current order of Initials Billing Address Phone # City, State, Zip Email Bank Details '* ❑ Checking ❑ Savings Account Name Roukang Number Bank Name "-_ --- — Account Number '2 2 2 2 2 2 2 2 l,° Routing Number I understand that this authorization will remain in effect until I cancel it in writing,and 1 agree to notify. RITE Enterprises Inc in writing of any changes in my account information or termination of this authorization at least 15 days prior to the next billing date. If the above noted payment dates fall on a weekend or holiday, I understand that the payments may be executed on the next business day. For.ACH debits to my checking/savings account, I understand that because these are electronic transactions, these funds may be withdrawn from my account as soon as the above noted periodic transaction dates. In the case of an ACH Transaction being rejected for Non-Sufficient Funds(NSF)I understand that RITE Enterprises Inc_ may at its discretion attempt to process the charge again within 30 days,and agree to an additional$ 35 charge for each attempt returned NSF which will be initiated as a separate transaction from the authori curring payment_ 1 acknowledge that the origination of ACH transactions to my acc p with the provisions of U.S. law. I certify that I am an authorized user of this ba nd will ispute these scheduled transactions with my bank; so long as the transa re d t erms indicated in this authorization form. SIGNATUR DATE (Account oider's Signa ) FO copy of a yoaded check with this form. Page 15 of 16 Initial I agree to allow RITE to auto charge me for the Monthly Service Agreement associated with CloudRetailer based upon the amount of $230.00 per month plus tax. I hereby approve and am authorized as such to do so. Number of POS Stations involved -(4)-POS, (1) Store, (4) Integrated EMV, AC Nielsen_ [�I prefer to be bill is invoice for the full year at$2,760 + tax Signature: Date: �1 Z- I certify that I a cept this quo nd have the authority to do so on behalf of the undersigned company and have determined that the solution provided through this system purchased meets our company's requirements and needs as we explained them to RITE. I also agree to participate and in the terms associated with RITE's Proven Process for projects. Name and Job Title: loc4t'rC� ;�h�r_ f T 0+�� �,: Shipping Address Company: e%' o �� 5.,��c r, ( Same as Company Company Address: City, State,Zip: z��ii °-/�-7, /''/�/ ,��oa1 y Phone: Cell Phone: *Email Address: *(C rrespondence will be dir ed to this address) Signature: Date: *Checks can be made out to RITE and mailed to: RITE-Accounting Dept. 10012"Street S-Suite 100 Sartell,MN 56377 In order to process this document efficiently for you,#ALL PAGES*OF THIS DOCUMENT MUST BE INITIALED AND RETURNED. If not,we will contact you to resend it. Thanks for your help! Please fill out form and fax to: 320-230-1796 or email to billing@rite.us Page 16 of 16 Initial Tl� CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 ± Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Chris Regis, Finance Director SUBJECT: Approve Bills - Finance DATE: June 6, 2022 INTRODUCTION Attached is the May 1, 2022—May 31, 2022 city council check register and recently processed automatic payments for your review. DISCUSSION N/A BUDGET IMPACT N/A ACTION REQUESTED Approve the attached payments. ATTACHMENTS: Type Description D Backup Material Council Check Summary R55CKS2 LOGIS60DV COUNCIL MEETING JUNE 6,2022 CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 1 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 100785 5/13/2022 100493 BELLBOY CORPORATION 102.82 LIQUOR SUPPLIES&MIXES ORDER 202770 0105071900 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 523.50 LIQUOR&SPIRITS ORDER 202771 0094668300 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 448.54 LIQUOR SUPPLIES&MIXES ORDER 202891 0105097600 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 168.20 BAG ORDER 202891 0105097800 6110 6250 OTHER SUPPLIES&PARTS DOWNTOWN LIQUOR REV&EXP 06100 02 1,652.40 LIQUOR&SPIRITS ORDER 202912 0094743000 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 199.45 LIQUOR&SPIRITS ORDER 202971 0094752500 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 89.20 LIQUOR SUPPLIES&MIXES ORDER 202973 0105101700 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 291.50 BAG ORDER 202973 0105101700 6115 6250 OTHER SUPPLIES&PARTS PILOT KNOB LIQUOR 06100 02 3,475.61 100786 5/13/2022 117735 CLEAR RIVER BEVERAGE 356.50 BEER ORDER 202777 628844 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 94.04- BEER ORDER CREDIT 202781 628968 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 197.00 BEER ORDER 202937 629699 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 459.46 100787 5/13/2022 100071 COLLEGE CITY BEVERAGE INC 9.93- BEER ORDER CREDIT 202779 1564-00052 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 4,476.55 BEER ORDER 202780 790774 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 8,667.00 BEER ORDER 202906 792955 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 18.10- BEER ORDER CREDIT 202943 1394-00151 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 7,243.80 BEER ORDER 202944 792836 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 17.20- BEER ORDER CREDIT 202946 1394-00128 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 20,344.12 100788 5/13/2022 118139 DIMAGGIO,SAMANTHA 270.48 APR'22 MILEAGE REIMB 202733 20220429 DIMAGGIO 2000 6485 MILEAGE REIMBURSEMENT HRA/ECONOMIC DEVELOPMENT 02000 03 45.00 APR'22 CELL REIMB 202733 20220429 DIMAGGIO 1030 6412 CELLULAR SERVICES PLANNING&ZONING 01000 03 315.48 100789 5/13/2022 100022 FARMINGTON PRINTING INC 80.00 COPY PAPER 202639 14275 1010 6210 OFFICE SUPPLIES ADMINISTRATION 01000 01 80.00 100790 5/13/2022 109232 HELM ELECTRIC INC 126.86 REPLACE SWITCH 202856 14813B 1093 6515 BUILDING REPAIR/MAINTENANCE SENIOR CITIZEN SERVICES 01000 09 120.00 REWIRE NORTH BAY LIGHTING 202857 14816B 1060 6515 BUILDING REPAIR/MAINTENANCE FIRE SERVICES 01000 06 54.21 STREET LIGHT POLE 202979 14815B 6602 6220 EQUIP SUPPLIES&PARTS STREETLIGHT UTILITY EXPEN 06600 08 480.00 INSTALL STREET LIGHT 202979 14815B 6602 6505 EQUIPMENT REPAIR/MAINTENANCE STREETLIGHT UTILITY EXPEN 06600 08 480.00 REPAIR STREET LIGHTS 202981 14818B 6602 6505 EQUIPMENT REPAIR/MAINTENANCE STREETLIGHT UTILITY EXPEN 06600 08 294.82 STREET LIGHT SUPPLIES 202981 14818B 6602 6220 EQUIP SUPPLIES&PARTS STREETLIGHT UTILITY EXPEN 06600 08 600.00 INSTALL STREET LIGHT 202983 148146 6602 6505 EQUIPMENT REPAIR/MAINTENANCE STREETLIGHT UTILITY EXPEN 06600 08 63.21 STREET LIGHT SUPPLIES 202983 14814B 6602 6220 EQUIP SUPPLIES&PARTS STREETLIGHT UTILITY EXPEN 06600 08 2,219.10 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 2 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 100791 5/13/2022 100395 HOISINGTON KOEGLER GROUP INC 9,424.54 MAR'22 SVS:JIM BELL PRK MSTR 202671 022-001-3 1094 6401 PROFESSIONAL SERVICES PARK&RECREATION ADMIN 01000 09 9,424.54 100792 5/13/2022 112416 IMPACT MAILING OF MN,INC 56.42 APR'22 UB MAIL PREP 202819 158301 6202 6401 PROFESSIONAL SERVICES SEWER OPERATIONS EXPENSE 06200 08 56.42 APR'22 UB MAIL PREP 202819 158301 6402 6401 PROFESSIONAL SERVICES STORM WATER UTILITY OPERA 06400 08 56.42 APR'22 UB MAIL PREP 202819 158301 6502 6401 PROFESSIONAL SERVICES WATER UTILITY EXPENSE 06500 08 251.97 APR'22 UB BILL POSTAGE 202819 158301 6202 6445 POSTAGE/SHIPPING FEES SEWER OPERATIONS EXPENSE 06200 08 251.97 APR'22 UB BILL POSTAGE 202819 158301 6302 6445 POSTAGE/SHIPPING FEES SOLID WASTE OPERATIONS 06300 08 251.98 APR'22 UB BILL POSTAGE 202819 158301 6502 6401 PROFESSIONAL SERVICES WATER UTILITY EXPENSE 06500 08 925.18 100793 5/13/2022 117341 INBOUND BREWCO 242.00 BEER ORDER 202769 13481 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 242.00 100794 5/13/2022 110766 JOHNSON CONTROLS FIRE PROTECTION LP 650.20 ALARM MONITORING-POLICE DEPT 202731 22892499 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 93.25 BATTERY REPLACEMENT SVS 202887 88558476 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 133.21 BATTERY REPLACEMENT SVS 202887 88558476 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 66.61 BATTERY REPLACEMENT SVS 202887 88558476 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 106.57 BATTERY REPLACEMENT SVS 202887 88558476 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 66.60 BATTERY REPLACEMENT SVS 202887 88558476 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 1,116.44 100795 5/13/2022 108261 LAMETTRYS COLLISION LAKEVILLE 4,834.62 SQD 61 PURSUIT DAMAGE 202800 535136 7100 6430 INSURANCE DEDUCTIBLE INSURANCE 07100 02 4,834.62 100796 5/13/2022 107747 M.AMUNDSON LLP 1,150.06 CIGARETTES&POP ORDER 202948 341128 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,150.06 100797 5/13/2022 115734 MINNESOTA OCCUPATIONAL HEALTH 681.00 APR'22 EMPLOYMENT TESTING 203020 395446 1011 6405 EMPLOYMENT TESTING HUMAN RESOURCES 01000 04 681.00 100798 5/13/2022 100070 MINNESOTA VALLEY TESTING LABORATORIES 87.50 BAC-T SAMPLE(7) 202512 1138700 6502 6535 OTHER REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 87.50 100799 5/13/2022 113833 MMKR CERTIFIED PUBLIC ACCOUNTANTS 2,000.00 2021 MMKR AUDIT 202494 51891 1021 6401 PROFESSIONAL SERVICES FINANCE 01000 02 2,000.00 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 3 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 100800 5/13/2022 114206 SUN LIFE FINANCIAL 3,876.64 MAY-22 LIFE INSURANCE 203014 237780 MAY'22 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 3,876.64 100801 5/13/2022 108670 TERMINAL SUPPLY COMPANY 165.81 TOOLS FOR SHOP 202522 37273-00 7200 6950 MACHINERY,EQUIPMENT&TOOLS FLEET OPERATIONS 07200 08 165.81 100802 511312022 108808 VINOCOPIA,INC 223.00 WINE ORDER 202759 0302968-IN 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 653.25 WINE ORDER 202933 0303201-IN 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 348.00 WINE ORDER 202970 0303587-IN 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,224.25 100803 6/13/2022 111267 WATER CONSERVATION SERVICE,INC 800.90 LEAK DETECTION/2 MAIN BREAKS 202787 12245 6502 6401 PROFESSIONAL SERVICES WATER UTILITY EXPENSE 06500 08 800.90 100804 5/13/2022 108450 WSB&ASSOCIATES INC 2,047.50 MAR'22 SVS:PARK MSTR PLAN 202713 R-019510-000-4 2331 6401 PROFESSIONAL SERVICES FLAGSTAFF MEADOW PARK 02300 09 2,047.50 100805 5/20/2022 100493 BELLBOY CORPORATION 709.15 LIQUOR&SPIRITS ORDER 203120 0094846800 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 50.65 LIQUOR SUPPLIES&MIXES ORDER 203121 0105132300 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 315.80 BAG ORDER 203121 0105132300 6110 6250 OTHER SUPPLIES&PARTS DOWNTOWN LIQUOR REV&EXP 06100 02 1,075.60 100806 6/20/2022 117735 CLEAR RIVER BEVERAGE 255.40 BEER ORDER 203109 630872 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 255.40 100807 5/20/2022 100071 COLLEGE CITY BEVERAGE INC 405.00 BEER ORDER 203110 795003 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 16.00- BEER ORDER CREDIT 203111 795002 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 9,073.30 BEER ORDER 203112 794941 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 13,516.65 BEER ORDER 203127 794633 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 22,978.95 100808 5/20/2022 109182 DAKOTA COMMUNICATIONS CENTER 9,335.33 JUNE 2022 DCC FEES 202738 FA2022-06 1060 6560 CONTRACTUAL SERVICES FIRE SERVICES 01000 06 18,670.67 JUNE 2022 DCC FEES 202738 FA2022-06 1050 6560 CONTRACTUAL SERVICES POLICE ADMINISTRATION 01000 05 28,006.00 100809 5/20/2022 100022 FARMINGTON PRINTING INC 24.00 NAME PLATE 202643 14276 1010 6210 OFFICE SUPPLIES ADMINISTRATION 01000 01 24.00 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 4 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 100810 6/20/2022 111431 FERGUSON WATERWORKS 88.23 PARKA JCKT GRN XL 203076 0488494-1 1031 6290 UNIFORMS&CLOTHING BUILDING INSPECTIONS 01000 07 88.23 100811 5/20/2022 109232 HELM ELECTRIC INC 882.75 LIGHT POLE REPAIR 203182 14817B 1060 6515 BUILDING REPAIR/MAINTENANCE FIRE SERVICES 01000 06 882.75 100812 5/20/2022 110766 JOHNSON CONTROLS FIRE PROTECTION LP 476.37 ALARM MONITORING FIRE ST 1 203181 22892204 1060 6515 BUILDING REPAIR/MAINTENANCE FIRE SERVICES 01000 06 476.37 100813 6/20/2022 102466 KLM ENGINEERING INC 4,500.00 VERIZON ANTENNA INSPECTIONS 202646 8852 6500 2256 65002 DEVELOPMENT ESCROWS WATER UTILITY 06500 08 4,500.00 100814 5/20/2022 100063 MACQUEEN EQUIPMENT,INC 137.02 STEERING PART FOR 0729 2D2667 P41728 6402 6220 EQUIP SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 137.02 100815 5/20/2022 100070 MINNESOTA VALLEY TESTING LABORATORIES 87.50 BAC-T SAMPLE(7) 202841 1139896 6502 6535 OTHER REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 87.50 100816 5/20/2022 113031 NRG RELIABILITY SOLUTIONS LLC 1,399.46 APR'22 ELEC LAW ENFORCE CNTR 202882 3346-2205 1050 6422 ELECTRIC POLICE ADMINISTRATION 01000 05 1,606.10 APR'22 ELEC CMF 202945 3347-2205 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 44.61 APR'22 ELEC CMF 202945 3347-2205 6402 6422 ELECTRIC STORM WATER UTILITY OPERA 06400 08 66.92 APR'22 ELEC CMF 202945 3347-2205 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 116.89 APR'22 ELEC CMF 202945 3347-2205 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 44.62 APR'22 ELEC CMF 202945 3347-2205 1072 6422 ELECTRIC STREET MAINTENANCE 01000 08 3,278.60 100817 6/20/2022 110954 ULINE SHIPPING&SUPPLY SPECIALISTS,INC 10.67 MOP HEADS 202883 148057467 6502 6242 CLEANING SUPPLIES WATER UTILITY EXPENSE 06500 OB 15.25 MOP HEADS 202883 148057467 6402 6242 CLEANING SUPPLIES STORM WATER UTILITY OPERA 06400 08 7.62 MOP HEADS 202883 148057467 6202 6242 CLEANING SUPPLIES SEWER OPERATIONS EXPENSE 06200 08 7.62 MOP HEADS 202883 148057467 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 6.10 MOP HEADS 202883 148057467 1093 6242 CLEANING SUPPLIES SENIOR CITIZEN SERVICES 01000 09 12.20 MOP HEADS 202883 148057467 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 7.62 MOP HEADS 202683 148057467 1072 6242 CLEANING SUPPLIES STREET MAINTENANCE 01000 08 27.45 MOP HEADS 202883 148057467 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 106.76 MOP HEADS 202883 148057467 1015 6242 CLEANING SUPPLIES CITY HALL 01000 01 201.29 100818 5/20/2022 108808 VINOCOPIA,INC R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 5 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 1,541.66 WINE ORDER 203122 0304132-IN 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 685.17 WINE ORDER 203136 0304126-IN 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,226.83 100819 5/27/2022 100493 BELLBOY CORPORATION 2,055.23 LIQUOR&SPIRITS ORDER 203335 0094937100 6100 1405 10 INVENTORY DOWNTOWN LIQUOR OPERATIONS 06100 02 374.13 LIQUOR SUPPLIES&MIXES ORDER 203357 0105167400 6100 1405 10 INVENTORY DOWNTOWN LIQUOR OPERATIONS 06100 02 765.00 LIQUOR&SPIRITS ORDER 203392 0094955100 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 176.43 LIQUOR&SUPPLIES ORDER 203393 0105175000 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 139.90 BAG ORDER 203393 0105175000 6115 6250 OTHER SUPPLIES&PARTS PILOT KNOB LIQUOR 06100 02 3,510.69 100820 5/27/2022 109503 BIFFS,INC 160.00 MAY'22 PRTBLE RNTL-JIM BELL 203284 #W863035 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-MDW\/W PRK 203285 #W863031 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-PINE KNLL 203286 #W863026 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-PRAIRIEVW 203287 #W863028 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-FIRM PRSRV 203288 #W863032 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-DISTAD PR 203289 #W863034 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-EVRGRN KN 203290 #W863033 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-RRP 203291 #W863029 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-HILL DEE 203292 #W863024 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 131.43 MAY'22 PRTBLE RNTL-LK JULIA 203293 #W863025 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 300.00 MAY'22 PRTBLE RNTL-FEELY FLD 203294 #W863030 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-DKTA EST 203295 #W863023 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-DAISY KNO 203296 #W863022 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 160.00 MAY'22 PRTBLE RNTL-TMRCK PRK 203297 #W863027 1090 6555 RENTAL OF EQUIPMENT PARK MAINTENANCE 01000 09 2,351.43 100821 5/27/2022 100253 CAMPBELL KNUTSON,P.A. 1,547.94 APR'22 LEGAL FEES-GENERAURETN 203073 1852-000OG APR'22 1005 6403 LEGAL LEGISLATIVE CONTROL 01000 01 783.70 APR'22 LEGAL FEES-GENERAURETN 203073 1852-000OG APR'22 1010 6403 LEGAL ADMINISTRATION 01000 01 35.40 APR'22 LEGAL FEES-GENERAURETN 203073 1852-000OG APR'22 1011 6403 LEGAL HUMAN RESOURCES 01000 04 60.40 APR'22 LEGAL FEES-GENERAURETN 203073 1852-000OG APR'22 1021 6403 LEGAL FINANCE 01000 02 363.20 APR'22 LEGAL FEES-GENERAURETN 203073 1852-000OG APR'22 1030 6403 LEGAL PLANNING&ZONING 01000 03 88.50 APR'22 LEGAL FEES-GENERAURETN 203073 1852-OOOOGAPR'22 1050 6403 LEGAL POLICE ADMINISTRATION 01000 05 502.90 APR'22 LEGAL FEES-GENERAURETN 203073 1852-000OG APR'22 1060 6403 LEGAL FIRE SERVICES 01000 06 270.00 APR'22 LEGAL FEES-POLICE 203170 1852-0004G APR'22 1050 6403 LEGAL POLICE ADMINISTRATION 01000 05 8,944.21 APR'22 LEGAL FEES-PROSECUTION 203171 1852-0999G APR'22 1050 6403 LEGAL POLICE ADMINISTRATION 01000 05 12,596.25 100822 5/27/2022 117735 CLEAR RIVER BEVERAGE 1,118.50 BEER ORDER 203337 632039 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,118.50 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 6 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 100823 5/27/2022 100071 COLLEGE CITY BEVERAGE INC 11,489.14 BEER ORDER 203341 796948 6100 1405 15 INVENTORY PILOT KNOB LIQUOR OPERATIONS 06100 02 10,032.94 BEER ORDER 203354 797081 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 102.00 BEER ORDER 203387 796599 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 21,624.08 100824 5/27/2022 100014 GALLS,LLC 480.00 TASER BLUE TRAINING UNITS 203166 021073583 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 480.00 100825 5/27/2022 109758 IMAGE TREND,INC 3,500.98 FIRE REPORTING SOFTWARE 203184 135193 7400 6505 EQUIPMENT REPAIR/MAINTENANCE INFORMATION TECHNOLOGY 07400 04 3,500.98 100826 5/27/2022 117341 INBOUND BREWCO 226.00 BEER ORDER 203360 13657 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 226.00 100827 5/27/2022 100049 LOCAL GOVERNMENT INFORMATION SYSTEMS 390.00 #283689 MAIL MIGRATION 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 260.00 #293334 2023 BUDGET 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 97.50 #294517 ADD OSPF TO CITY SWITC 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 65.00 #295441 NEW MAIL SVR FW CONF 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 32.50 #295498 PD CAM VPN T/S 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 357.50 #296028 VPN DISCONNECTT/S 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 65.00 #296098 PD SWITCH PORT CHANGE 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 130.00 #297203 SQUAD VIDEO ISSUE 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 195.00 #297652 KNOWBE4 FIX 203084 52099 7400 6401 PROFESSIONAL SERVICES INFORMATION TECHNOLOGY 07400 04 404.30 MAR'22 MN IT WAN SERVICE 203085 52149 7400 6402 DATA PROCESSING INFORMATION TECHNOLOGY 07400 04 360.00 Q1 BCA-CJDN&MDT MAINT 203085 52149 7400 6402 DATA PROCESSING INFORMATION TECHNOLOGY 07400 04 1,495.13 MAY-22 APPL SUPPORT INV 203086 52036 6402 6402 DATA PROCESSING STORM WATER UTILITY OPERA 06400 08 1,495.13 MAY-22APPLSUPPORT INV 203086 52036 6502 6402 DATA PROCESSING WATER UTILITY EXPENSE 06500 08 1,169.75 MAY-22 APPL SUPPORT INV 203086 52036 6202 6402 DATA PROCESSING SEWER OPERATIONS EXPENSE 06200 08 382.00 MAY'22 APPL SUPPORT INV 203086 52036 1060 6402 DATA PROCESSING FIRE SERVICES 01000 06 2,365.00 MAY'22 APPL SUPPORT INV 203086 52036 1050 6402 DATA PROCESSING POLICE ADMINISTRATION 01000 05 3,101.00 MAY-22 APPL SUPPORT INV 203086 52036 1031 6402 DATA PROCESSING BUILDING INSPECTIONS 01000 07 4,785.00 MAY-22 APPL SUPPORT INV 203086 52036 1021 6402 DATA PROCESSING FINANCE 01000 02 2,514.00 MAY-22APPLSUPPORT INV 203086 52036 1011 6402 DATAPROCESSING HUMAN RESOURCES 01000 04 3,458.99 MAY'22 APPL SUPPORT INV 203086 52036 7400 6402 DATA PROCESSING INFORMATION TECHNOLOGY 07400 04 23,122.80 100828 5/27/2022 102644 NORTHERN SAFETY TECHNOLOGY,INC 4,981.43 SQD 23 EQUIPMENT 202732 53989 5602 6940 50 VEHICLES-POLICE GEN CAPITAL EQUIP FUND EX 05600 4,981.43 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 7 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 100829 5/27/2022 107945 SCHWINESS,LLC 10,071.10 JUNE-22 RENT PK LIQUOR STORE 203268 2857 6115 6556 BUILDING RENTAL PILOT KNOB LIQUOR 06100 02 10,071.10 100830 5/27/2022 112422 STANTEC CONSULTING SERVICES INC 2,440.00 MAR'22:2021 BRIDGE INSP RPRTS 203411 1915394 1070 6401 PROFESSIONAL SERVICES ENGINEERING SERVICES 01000 07 5,960.00 2021 BRIDGE INSPECTIONS 203432 1850430 1070 6401 PROFESSIONAL SERVICES ENGINEERING SERVICES 01000 07 1,600.00 2021 FISHING PIER INSPECTIONS 203432 1850430 2300 6401 PROFESSIONAL SERVICES PARK IMPROVEMENT FUND 02300 09 10,000.00 100831 5/27/2022 110954 ULINE SHIPPING&SUPPLY SPECIALISTS,INC 549.53 HAND SOAP AND DISH SOAP 202885 148531962 1050 6242 CLEANING SUPPLIES POLICE ADMINISTRATION 01000 05 549.53 100832 5/27/2022 108808 VINOCOPIA,INC 916.50 WINE ORDER 203346 0304325-IN 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 809.26 LIQUOR&SPIRITS ORDER 203347 0304324-IN 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,725.76 100833 5/27/2022 108450 WSB&ASSOCIATES INC 5,400.00 WSB CODE ENFORCEMENT 202745 R-019521-000-3 1030 6401 PROFESSIONAL SERVICES PLANNING&ZONING 01000 03 3,084.00 MAR'22:VRWJPO DRNGE STUDY 203409 R-018756-000-7 6402 6401 PROFESSIONAL SERVICES STORM WATER UTILITY OPERA 06400 08 1,344.25 MAR'22:MS4 PERMIT IMPLMNTN 203410 R-020038-000-1 6402 6401 PROFESSIONAL SERVICES STORM WATER UTILITY OPERA 06400 08 9,828.25 157616 5/13/2022 118698 AT&T MOBILITY-CITY HALL 1,789.30 APR'22 NON-PUBSAFETY CELL SVC 202799 287307208222X050327400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 022 44.55 APR'22 DBB CARAH KOCH'S PHONE 202799 287307208222X050322003 6412 CELLULAR SERVICES DAKOTA BROADBAND 02003 01 022 229.38 APR'22 NON-PUBSAFETY DATA SVC 202799 287307208222X050327400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 022 2,063.23 157617 5/13/2022 118206 AT&T MOBILITY-PUBLIC SAFETY 1,299.82 APR'22 PUB SAFETY DATA SVC 202798 2B7307208195X050327400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 022 1,375.12 APR'22 PUB SAFETY CELL SVC 202798 287307208195X050327400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 022 2,674.94 157618 5/13/2022 100058 ADVANCE AUTO PARTS 125.17 BATTERY FOR 0939 202788 2131-590781 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 110.38 AIR DRYER FOR 0710 202794 2131-590148 6202 6230 VEHICLE SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 30.00- AIR DRYER CORE FOR 0710 202795 2131-590604 CR 6202 6220 EQUIP SUPPLIES&PARTS SEWER OPERATIONS EXPENSE D6200 08 18.06 WHEELS SEALS FOR POLICETRAILER 202796 2131-590493 1051 6220 EQUIP SUPPLIES&PARTS PATROL SERVICES 01000 05 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 8 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 242.64 OIL FOR 0945 202802 2131-590728 7200 6274 LUBRICANTS&ADDITIVES FLEET OPERATIONS 07200 08 29.64 WIPERS BLADES FOR 0564 202805 2131-590780 1051 6230 VEHICLE SUPPLIES&PARTS PATROL SERVICES 01000 05 14.39 WIPER BLADE FOR 0571 202809 2131-591229 1051 6230 VEHICLE SUPPLIES&PARTS PATROL SERVICES 01000 05 13.40 STEERING FLUID FOR 0715 202809 2131-591229 1072 6230 VEHICLE SUPPLIES&PARTS STREET MAINTENANCE 01000 08 22.87 AIR FILTER FOR T706 202812 2131-591188 6202 6220 EQUIP SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 17.84 AIR FILTER FOR 4790 202823 2131-591432 1060 6230 VEHICLE SUPPLIES&PARTS FIRE SERVICES 01000 06 34.96 FILTERS FOR 0945 202824 2131-590886 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 7.19 COMPRESSOR OIL 202935 2131-591312 1072 6220 EQUIP SUPPLIES&PARTS STREET MAINTENANCE 01000 08 11.52 COMPRESSOR OIL 202935 2131-591312 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 7.20 COMPRESSOR OIL 202935 2131-591312 6202 6220 EQUIP SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 14.40 COMPRESSOR OIL 202935 2131-591312 6402 6220 EQUIP SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 10.08 COMPRESSOR OIL 202935 2131-591312 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 649.74 157619 5/13/2022 115438 AMERITAS LIFE INSURANCE CORP 2,833.76 MAY'22 DENTAL INSURANCE 203029 010-44446 MAY 2022 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 2,833.76 157620 5/13/2022 114024 APPLE CHEVROLET BUICK-NORTHFIELD 50.00- CORE RETURN CREDIT 202791 CM81325 CVW CR 1072 6230 VEHICLE SUPPLIES&PARTS STREET MAINTENANCE 01000 08 120.95 DOOR LATCH FOR 4783 202792 82313 CVW 1060 6230 VEHICLE SUPPLIES&PARTS FIRE SERVICES 01000 06 70.95 157621 5/13/2022 116035 ARDEN TITLE,LLC 270.00 REF UTIL CR@4768 186TH ST W 202811 2022-56414 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 270.00 157622 5/13/2022 113303 ARTISAN BEER COMPANY 108.80- BEER ORDER CREDIT 202673 330636 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,093.80 BEER ORDER 202775 3532293 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 733.70 BEER ORDER 202927 3533617 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 778.20 BEER ORDER 202936 3533485 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,496.90 157623 5/13/2022 108446 ASPEN MILLS,INC. 198.35 UNIFORM ALLOWANCE CHRISTENSEN 202739 292627 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 184.24 UNIFORM ALLOWANCE BOLTON 202740 292635 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 44.55 UNIFORM NAME TAGS 202741 292225 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 427.14 157624 5/13/2022 100079 ASPENWALL TREE SERVICE,INC. 3,865.00 EAB TREE REMOVAL RRP 202916 22-1063 1090 6401 PROFESSIONAL SERVICES PARK MAINTENANCE 01000 09 3,865.00 157625 5/13/2022 114472 BREAKTHRU BEVERAGE MN BEER,LLC 3,596.50 BEER ORDER 202762 343875726 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 9 5/1/2022 - 5/31/2022 Check# Date Amount Supplier!Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 67.20 BEER ORDER 202763 343875727 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 22.40 BEER ORDER 202892 343976798 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 9,587.90 BEER ORDER 202913 343976797 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 120.40 BEER ORDER 202975 343976465 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 12,534.60 BEER ORDER 202976 343976464 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 25,929.00 157626 5/13/2022 114471 BREAKTHRU BEVERAGE MN WINE&SPIRITS 57.45 WINE ORDER 202760 343877094 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,923.88 LIQUOR&SPIRITS ORDER 202761 343877095 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 145.45- LIQUOR&SPIRITS ORDER CREDIT 202782 409676619 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,262.04 LIQUOR&SPIRITS ORDER 202917 343978337 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 105.45 WINE ORDER 202918 343978336 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 190.45- LIQUOR&SPIRITS ORDER CREDIT 202931 409564256 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 289.44- LIQUOR&SPIRITS ORDER CREDIT 202932 409514082 CR 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 4,140.59 LIQUOR&SPIRITS ORDER 202974 343977996 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 8,864.07 167627 5/13/2022 110218 BURNET TITLE 69.10 REF UTIL CR@19853 DEERBROOKE 202817 2124022-02297 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 97.25 REF UTIL CR@4929 193RD ST W 203003 2127022-02845 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 115.73 REF UTIL CR@18824 EXCALIBUR TR 203007 2127022-03012 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 282.08 157628 6/13/2022 108360 CANNON RIVER WINERY 336.00 WINE ORDER 202772 13357 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 336.00 157629 6/13/2022 118434 CENTRAL FIRE PROTECTION INC 146.70 FIRE EXTINGUISHER INSPECTION 202746 45152 1015 6505 EQUIPMENT REPAIR/MAINTENANCE CITY HALL 01000 01 195.20 FIRE EXTINGUISHER INSPECTION 202746 45152 1050 6505 EQUIPMENT REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 283.40 FIRE EXTINGUISHER INSPECTION 202746 45152 1060 6505 EQUIPMENT REPAIR/MAINTENANCE FIRE SERVICES 01000 06 71.85 FIRE EXTINGUISHER INSPECTION 202746 45152 2502 6505 EQUIPMENT REPAIR/MAINTENANCE ICE ARENA OPERATIONS EXPE 02500 09 74.25 FIRE EXTINGUISHER INSPECTION 202746 45152 1093 6505 EQUIPMENT REPAIR/MAINTENANCE SENIOR CITIZEN SERVICES 01000 09 771.40 167630 5/13/2022 100026 CINTAS CORP LOC 764 41.27 APRIL 22 WEEKLY UNIFORM SVS 202860 4117760336 6502 6290 UNIFORMS&CLOTHING WATER UTILITY EXPENSE 06500 08 48.15 APRIL 22 WEEKLY UNIFORM SVS 202860 4117760336 6402 6290 UNIFORMS&CLOTHING STORM WATER UTILITY OPERA 06400 08 48.15 APRIL 22 WEEKLY UNIFORM SVS 202860 4117760336 6202 6290 UNIFORMS&CLOTHING SEWER OPERATIONS EXPENSE 06200 08 49.52 APRIL 22 WEEKLY UNIFORM SVS 202860 4117760336 1090 6290 UNIFORMS&CLOTHING PARK MAINTENANCE 01000 09 81.15 APRIL 22 WEEKLY UNIFORM SVS 202860 4117760336 1072 6290 UNIFORMS&CLOTHING STREET MAINTENANCE 01000 08 268.24 167631 5/13/2022 100030 CORE&MAIN,LP R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 10 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 129.20 T-HANDLE WRENCH 202984 Q726332 6502 6950 MACHINERY,EQUIPMENT&TOOLS WATER UTILITY EXPENSE 06500 08 129.20 157632 5/13/2022 115921 CURB 575.00 CURB SIGN PRAIRIE PINES 202881 APRIL 2022 1090 6535 OTHER REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 575.00 157633 5/13/2022 110986 DCA TITLE 65.81 REF UTIL CR@506 MAIN ST 202994 22-040031-R 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 65.81 157634 5/13/2022 113296 EDINA REALTY TITLE 188.49 REF UTIL CR@20903 CARVER ST 203010 2156892/83 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 188.49 167635 5/13/2022 109931 FACTORY MOTOR PARTS 21.70 FILTERS FOR 0946 202523 1-7552014 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 21.70 157636 5/13/2022 118179 FARMINGTON MALL LLC 6,678.50 JUN-22 RENT DT LIQUOR STORE 202980 20220601 DT LIQ 6110 6556 BUILDING RENTAL DOWNTOWN LIQUOR REV&EXP 06100 02 6,678.50 157637 5/13/2022 100223 FEDEX 19.19 SHIP WATER SAMPLES 202987 7-737-98556 6502 6445 POSTAGE/SHIPPING FEES WATER UTILITY EXPENSE 06500 08 19.19 157638 5/13/2022 118051 FUN JUMPS ENTERTAINMENT INC 1,077.30 OPEN HOUSE BOUNCE HOUSES 202730 213129 1050 6480 MEETING EXPENSE POLICE ADMINISTRATION 01000 05 1,077.30 157639 5/13/2022 118703 GEHLOFF,WAYNE 177.14 REF UTIL CR@414 WHSPRNG RVR 202818 MN-03-220315 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 177.14 157640 5/13/2022 118684 GOVERNMENTJOBS.COM INC 24,952.72 HR:NEOGOV 1YR SUB 202951 INV-26852 7400 6505 EQUIPMENT REPAIR/MAINTENANCE INFORMATION TECHNOLOGY 07400 04 24,952.72 157641 5/13/2022 100027 GREAT LAKES COCA-COLA DISTRIBUTION,LLC 446.86 POP ORDER 202776 3608216238 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 446.86 157642 5/13/2022 113797 HEALTH STRATEGIES 149.00 FIREFIGHTER MEDICAL EXAM 203056 122469 1060 6405 EMPLOYMENT TESTING FIRE SERVICES 01000 06 149.00 157643 5/13/2022 100074 HOHENSTEINS INC 564.55 BEER ORDER 202765 499207 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 11 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 175.25 BEER ORDER 202903 501479 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,150.50 BEER ORDER 202938 501473 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,890.30 157644 5/13/2022 109846 JJ TAYLOR DISTRIBUTING COMPANY OF MN INC 35.00- BEER ORDER CREDIT 202747 3262879 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 58.00 BEER ORDER 202766 3282805 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,522.70 BEER ORDER 202778 3296046 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,782.70 BEER ORDER 202896 3296083 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 4,773.70 BEER ORDER 202942 3296082 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 10,102.10 157645 5/13/2022 100033 JOHNSON BROTHERS LIQUOR COMPANY 1,838.70 LIQUOR&SPIRITS ORDER 202748 2038568 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 5,547.53 WINE ORDER 202749 2038563 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 219.68 LIQUOR&SPIRITS ORDER 202750 2038562 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1.70 WINE ORDER 202751 2038565 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,115.43 LIQUOR&SPIRITS ORDER 202752 2038564 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,417.64 WINE ORDER 202753 2038566 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 537.00 WINE ORDER 202754 2041158 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 654.80 LIQUOR&SPIRITS ORDER 202919 2043735 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 403.59 LIQUOR&SPIRITS ORDER 202920 2043743 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,242.89 LIQUOR&SPIRITS ORDER 202921 2043938 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 660.33 WINE ORDER 202922 2043940 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,466.31 LIQUOR&SPIRITS ORDER 202923 2043941 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 492.80 LIQUOR&SPIRITS ORDER 202924 2043942 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,220.22 WINE ORDER 202925 2043943 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 54.74 LIQUOR&SPIRITS ORDER 202926 2043944 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 79.40 LIQUOR&SPIRITS ORDER 202949 2043742 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,678.40 WINE ORDER 202950 2043741 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 628.77 LIQUOR&SPIRITS ORDER 202952 2043740 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 3,804.81 LIQUOR&SPIRITS ORDER 202953 2043739 6100 1405 15 INVENTORY PILOT KNOB LIQUOR OPERATIONS 06100 02 329.49 WINE ORDER 202954 2043737 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 948.77 LIQUOR&SPIRITS ORDER 202955 2043736 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,723.16 LIQUOR&SPIRITS ORDER 202963 2043087 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 76.10 LIQUOR&SPIRITS ORDER 202964 2043136 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 197.84 WINE ORDER 202966 2043088 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 30.00 LIQUOR&SPIRITS ORDER 202978 2043939 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 28,370.10 157646 5/13/2022 115066 JOHNSON,LONELL 18.00 NDCBO 050422 202852 20220504 JOHNSON 1031 6470 TRAINING&SUBSISTANCE BUILDING INSPECTIONS 01D00 07 18.00 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 12 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 157647 6/13/2022 110501 LAND TITLE INC 140.85 REF UTIL CR@435 WHSPRNG RVR LN 202993 658008 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 140.85 157648 5/13/2022 117521 LEGACY TITLE 197.32 REF UTIL CR@18618 EUCLID PATH 203006 MN 28510/52 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 197.32 157649 5/13/2022 115466 LIFE INSURANCE COMPANY OF NORTH AMERICA 157.31 MAY'22 Cl INSURANCE 203016 C1960343 MAY'22 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 144.30 MAY'22 ACCIDENT INSURANCE 203017 A1960331 MAY'22 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 301.61 157650 5/13/2022 118580 MEGA BEER LLC 1,777.00 BEER ORDER 202911 14132 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,777.00 157651 5/13/2022 118682 MESSERLI&KRAMER PA 323.68 05-06-2022 PAYROLL GARNISHMENT 202801 20220506 7000 2128 GARNISHMENT PAYABLE EMPLOYEE EXPENSE FUND 07000 02 GARNISHMENT 323.68 157652 5/13/2022 100155 METROPOLITAN COUNCIL ENVIRO SERVICES 27,335.00 APR'22 MCES SAC FEES 202820 APR'22 SAC FEES 6200 2425 MCES SAC(SWR AVAIL CHG) SEWER OPERATIONS 06200 08 273.35- APR'22 MCES SAC FEES 202820 APR'22 SAC FEES 6201 5030 SAC CHARGE RETAINER SEWER OPERATIONS REVENUE 06200 OB 27,061.65 157653 5/13/2022 118563 MINNESOTA TITLE 203.02 REF UTIL CR@18074 EXETER PL 202816 MT-2203-1471-AV/75 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 32.90 REF UTIL CR@1213 OAK ST 202997 MT-2202-1325-MH/70 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 382.67 REF UTIL CR@5829 UPR 183 ST W 203005 MT-2202-1352-NE/97 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 618.59 157654 5/13/2022 115503 MWIT SERVICES 12.60 PD LANGUAGE LINE MAR'22 202534 W22030570 1051 6401 PROFESSIONAL SERVICES PATROL SERVICES 01000 05 12.60 157655 5/13/2022 117642 MOTOROLA SOLUTIONS CREDIT COMPANY LLC 36,340.10 RADIO LEASE PAYMENT 202735 31017 5602 6940 50 VEHICLES-POLICE GEN CAPITAL EQUIP FUND EX 05600 36,340.10 157656 5/13/2022 103503 NATIONAL BUSINESS FURNITURE 4,449.30 TABLES ST.1 TRAINING ROOM 202743 ZK172018-KRU 4302 6950 MACHINERY,EQUIPMENT&TOOLS FIRE RELIEF 04300 06 4,449.30 157657 5/13/2022 118702 NMC EXTERIORS 70.00 VOID PLBG PRMT 50768 202821 VOID PLBG PRMT 1001 4305 BUILDING PERMITS GENERAL FUND REVENUES 01000 01 50768 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 13 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 1.00 VOID PLBG PRMT 50768 202821 VOID PLBG PRMT 1000 2420 BUILDING PERMIT SURCHARGE GENERAL FUND BALANCE SHEE 01000 50768 71.00 157658 5/13/2022 102936 NORTHERN DOOR COMPANY 139.12 DOOR REPAIR 202878 70729 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 198.74 DOOR REPAIR 202878 70729 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 99.38 DOOR REPAIR 202678 70729 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 158.99 DOOR REPAIR 202878 70729 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 99.37 DOOR REPAIR 202878 70729 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 695.60 157659 5/13/2022 115470 NORTHWESTERN UNIVERSITY 3,600.00 SIEM STAFF AND COMMAND TRNG 203021 19980 1051 6470 TRAINING&SUBSISTANCE PATROL SERVICES 01000 05 3,600.00 157660 5/13/2022 101254 ORKIN EXTERMINATING,LLC 117.00 APR'22 PEST CONTROL CITY HALL 202630 225167512 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 16.00 APR'22 PEST CONTROL-1ST ST G 202631 225168270 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 22.86 APR'22 PEST CONTROL-IST ST G 202631 225168270 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 11.43 APR'22 PEST CONTROL-1ST ST G 202631 225168270 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 18.28 APR'22 PEST CONTROL-1ST ST G 202631 225168270 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 11.43 APR'22 PEST CONTROL-1ST ST G 202631 225168270 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 97.00 2ND QTR 2022 PEST CONTROL-PD 202632 225167421 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 130.00 APR'22 PEST CONTROL-RRC 202634 225168415 1093 6515 BUILDING REPAIR/MAINTENANCE SENIOR CITIZEN SERVICES 01000 09 27.00 APR'22 PEST CONTROL CMF 202636 225167230 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 38.57 APR'22 PEST CONTROL CMF 202636 225167230 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 19.29 APR'22 PEST CONTROL CMF 202636 225167230 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 30.86 APR'22 PEST CONTROL CMF 202636 225167230 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 19.28 APR'22 PEST CONTROL CMF 202636 225167230 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 559.00 157661 5/13/2022 114217 PAUL CONWAY SHIELDS 115.98 HELMET SHIELD LT 202742 0490459 1060 6290 1 TURNOUT GEAR FIRE SERVICES 01000 06 115.98 157662 5/13/2022 100290 PAUSTIS&SONS WINE COMPANY 418.00 WINE ORDER 202773 163091 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 418.00 157663 5/13/2022 100093 PELLICCI HARDWARE&RENTAL 143.76 AIR FILTERS 202736 K50434/F 1050 6240 BUILDING SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 167.76 AIR FILTER 202853 K50478/F 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 21.99 SPRAYER FOR CLEANING CARPETS 202854 K50382/F 1015 6220 EQUIP SUPPLIES&PARTS CITY HALL 01000 01 36.59 PAPER TOWELS 202855 35083/F 6502 6240 BUILDING SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 14 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 52.27 PAPER TOWELS 202855 35083/F 6402 6240 BUILDING SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 26.13 PAPER TOWELS 202855 35083/F 6202 6240 BUILDING SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 26.12 PAPER TOWELS 202855 35083/F 1050 6240 BUILDING SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 20.91 PAPER TOWELS 202855 35083/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 41.81 PAPER TOWELS 202855 35083/1' 1090 6240 BUILDING SUPPLIES&PARTS PARK MAINTENANCE 01000 09 26.13 PAPER TOWELS 202855 35083/1' 1072 6240 BUILDING SUPPLIES&PARTS STREET MAINTENANCE 01000 08 94.08 PAPER TOWELS 202855 35083/1' 1060 6240 BUILDING SUPPLIES&PARTS FIRE SERVICES 01000 06 365.90 PAPER TOWELS 202855 35083/F 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 30.98- RTRN:CARPET CLEANER 202666 K50457/F CR 1015 6220 EQUIP SUPPLIES&PARTS CITY HALL 01000 01 11.03 DRILL BATTERY AND DRILL BIT 202868 K50493/F 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 15.76 DRILL BATTERYAND DRILL BIT 202868 K50493/F 6402 6220 EQUIP SUPPLIES&PARTS STORM WATER UTILITY OPERA 06400 08 7.88 DRILL BATTERYAND DRILL BIT 202868 K50493/F 6202 6220 EQUIP SUPPLIES&PARTS SEWER OPERATIONS EXPENSE 06200 08 7.88 DRILL BATTERY AND DRILL BIT 202868 K50493/F 1050 6220 EQUIP SUPPLIES&PARTS POLICE ADMINISTRATION 01000 05 6.30 DRILL BATTERYAND DRILL BIT 202868 K50493/F 1093 6220 EQUIP SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 12.60 DRILL BATTERYAND DRILL BIT 202868 K50493/F 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 7.88 DRILL BATTERYAND DRILL BIT 202868 K50493/F 1072 6220 EQUIP SUPPLIES&PARTS STREET MAINTENANCE 01000 08 28.36 DRILL BATTERYAND DRILL BIT 202868 K50493/F 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 110.29 DRILL BATTERYAND DRILL BIT 202868 K50493/F 1015 6220 EQUIP SUPPLIES&PARTS CITY HALL 01000 01 8.97 BOWL CLEANER 202870 K50446/F 1090 6242 CLEANING SUPPLIES PARK MAINTENANCE 01000 09 167.76 AIR FILTERS 202872 K50433/F 1093 6240 BUILDING SUPPLIES&PARTS SENIOR CITIZEN SERVICES 01000 09 479.76 AIR FILTERS 202873 K50432/F 1015 6240 BUILDING SUPPLIES&PARTS CITY HALL 01000 01 1,856.94 157664 5/13/2022 100032 PEPSI COLA COMPANY 202.99 POP ORDER 202774 34671808 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 178.08 POP ORDER 202894 32295858 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 381.07 157665 5/13/2022 100034 PHILLIPS WINE AND SPIRITS,INC 47.70 LIQUOR&SPIRITS ORDER 202755 6387804 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 508.78 WINE ORDER 202756 6387803 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,669.90 LIQUOR&SPIRITS ORDER 202764 6387802 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,419.86 LIQUOR&SPIRITS ORDER 202928 6389756 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 578.91 WINE ORDER 202929 6389757 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,226.50 LIQUOR&SPIRITS ORDER 202957 6389594 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 585.43 WINE ORDER 202958 6389595 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 7,037.08 157666 5/13/2022 110664 PREMIER TITLE INSURANCE AGENCY INC 77.66 REF UTIL CR@2716 213TH ST W 202998 FN6071/55 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 80.44 REF UTIL CR@2728 213TH ST W 202999 FN6034/66 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 158.10 167667 5/13/2022 117905 PRYES BREWING COMPANY LLC R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- is 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 179.00 BEER ORDER 202905 W-36350 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 179.00 BEER ORDER 202939 W-36389 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 358.00 157668 5/13/2022 118492 QUALITY LOCKSMITH SERVICE 277.33 ADDITION OF 1 DOOR LOCK 202962 QLS22440 1015 6515 BUILDING REPAIR/MAINTENANCE CITY HALL 01000 01 277.33 157669 5/13/2022 118708 RBS RESIDENTIAL SERVICES LLC 165.00 VOID BLDG PRMT 50450 202972 VOID BLDG PRMT 1001 4305 BUILDING PERMITS GENERAL FUND REVENUES 01000 01 50450 165.00 157670 5/13/2022 117071 RESULTS TITLE 83.17 REF UTIL CR@18887 EXCLUSIVE PA 203009 22-01504 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 83.17 157671 5/13/2022 112561 RICOH USA,INC 887.11 MAY'22 COPIER LEASES 202960 10607-7790 1010 6555 RENTAL OF EQUIPMENT ADMINISTRATION 01000 01 887.11 157672 5/13/2022 112632 RICOH USA,INC 23.43 APR'22 CH PLOTTER USAGE 202961 5064439038 1010 6505 EQUIPMENT REPAIR/MAINTENANCE ADMINISTRATION 01000 01 462.02 APR'22 COPIER MAINTENANCE 202965 5064509300 1010 6505 EQUIPMENT REPAIR/MAINTENANCE ADMINISTRATION 01000 01 485.45 157673 5/13/2022 118480 ROBERT HALF 3,600.00 WK END 04/22/22-PAYROLL SPEC 202722 59877133 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 2,040.00 TEMP BENEFIT SPECIALIST 202990 59938679 1011 6401 PROFESSIONAL SERVICES HUMAN RESOURCES 01000 04 3,555.00 TEMP PAYROLL SPECALIST 202992 59943572 1011 6401 PROFESSIONAL SERVICES HUMAN RESOURCES 01000 04 3,600.00 WK END 04/29/22-PAYROLL SPEC 203008 59899696 1011 6401 PROFESSIONAL SERVICES HUMAN RESOURCES 01000 04 2,210.00 WK END 04/29/22-BNFTS RVW SPEC 203012 59900746 1011 6401 PROFESSIONAL SERVICES HUMAN RESOURCES D1000 04 15,005.00 157674 5/13/2022 110022 SCHWICKERT'S TECTA AMERICA,LLC 79.00 HVAC REPAIR 202858 S510091729 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 112.86 HVAC REPAIR 202858 S510091729 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 56.43 HVAC REPAIR 202858 S510091729 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 90.28 HVAC REPAIR 202858 S510091729 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 56.43 HVAC REPAIR 202858 S510091729 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 165.00 HVAC REPAIR 202859 S510091705 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 165.00 HVAC REPAIR 202861 S510091703 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 767.00 HVAC REPAIR 202862 S510091728 2502 6515 BUILDING REPAIR/MAINTENANCE ICE ARENA OPERATIONS EXPE 02500 09 985.00 HVAC REPAIR 202863 S510091724 2502 6515 BUILDING REPAIR/MAINTENANCE ICE ARENA OPERATIONS EXPE 02500 09 1,630.00 HVAC REPAIR 202865 S510091702 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 1,167.00 HVAC REPAIR 202867 S510091713 1060 6515 BUILDING REPAIR/MAINTENANCE FIRE SERVICES 01000 06 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 16 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 440.00 COOLING SYSTEM MAINTENANCE 202898 S510092055 1093 6515 BUILDING REPAIR/MAINTENANCE SENIOR CITIZEN SERVICES 01000 09 240.00 PREVENTATIVE MAINTENANCE 202899 S510092053 2502 6515 BUILDING REPAIR/MAINTENANCE ICE ARENA OPERATIONS EXPE 02500 09 340.00 PREVENTATIVE MAINTENANCE 202900 S510092052 1050 6515 BUILDING REPAIR/MAINTENANCE POLICE ADMINISTRATION 01000 05 323.93 ROOF LEAK REPAIR 202901 S510092092 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 462.76 ROOF LEAK REPAIR 202901 S510092092 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 231.38 ROOF LEAK REPAIR 202901 S510092092 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 370.21 ROOF LEAK REPAIR 202901 S510092092 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 231.39 ROOF LEAK REPAIR 202901 S510092092 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 415.00 PREVENTATIVE MAINTENANCE 202902 S510092054 1015 6515 BUILDING REPAIR/MAINTENANCE CITY HALL 01000 01 63.00 COOLING SYSTEM MAINTENANCE 202915 S510092051 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 90.00 COOLING SYSTEM MAINTENANCE 202915 S510092051 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 45.00 COOLING SYSTEM MAINTENANCE 202915 S510092051 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 72.00 COOLING SYSTEM MAINTENANCE 202915 S510092051 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 45.00 COOLING SYSTEM MAINTENANCE 202915 S510092051 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 8,643.67 157675 5/13/2022 107018 SHAMROCK GROUP 70.12 ICE CUBE ORDER 202767 2752929 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 77.90 ICE CUBE ORDER 202897 2754872 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 49.80 ICE CUBE ORDER 202910 2752930 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 107.10 ICE CUBE ORDER 202941 2754870 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 304.92 157676 6/13/2022 112051 SOUTHERN GLAZER'S OF MN 1,065.70 WINE ORDER 202757 2204254 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,280.50 LIQUOR&SPIRITS ORDER 202758 2204253 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 .11 LIQUOR&SPIRITS ORDER 202768 2204255 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 210.44 LIQUOR&SPIRITS ORDER 202907 2206910 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,509.98 LIQUOR&SPIRITS ORDER 202908 2206909 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,539.00 LIQUOR&SPIRITS ORDER 202909 2206908 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 597.03 LIQUOR&SPIRITS ORDER 202959 5083647 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,483.36 LIQUOR&SPIRITS ORDER 202967 2206915 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 53.28 WINE ORDER 202968 2206914 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,745.34 WINE ORDER 202969 2206916 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 11,484.74 157677 5/13/2022 100492 SOUTHERN HILLS GOLF COURSE 812.00 GOLF INSTRUCTOR 202977 2022 GOLF LESSONS 1095 6401 PROFESSIONAL SERVICES RECREATION PROGRAM SERVIC 01000 09 812.00 157678 5/13/2022 100100 STREICHER'S 1,176.00 BELLOWS BODY ARMOR 202725 11564004 1051 6290 UNIFORMS&CLOTHING PATROL SERVICES 01000 05 1,537.99 MURPHY BODYARMOR 202726 11565336 1052 6290 UNIFORMS&CLOTHING INVESTIGATION SERVICES 01000 05 1,537.99 SCOVILL BODY ARMOR 202727 11565337 1052 6290 UNIFORMS&CLOTHING INVESTIGATION SERVICES 01000 05 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 17 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 1,087.99 SUNDGREN BODYARMOR 202728 11565338 1052 6290 UNIFORMS&CLOTHING INVESTIGATION SERVICES 01000 05 156.98 K9 SMOKE BADGE 202729 11565100 2200 6220 EQUIP SUPPLIES&PARTS K-9(EFF.2019) 02200 05 5,496.95 157679 6/13/2022 117634 TITLESMART INC. 124.12 REF UTIL CR@21001 FLETCHER WAY 203011 264251/52 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 124.12 157680 5/13/2022 115813 TOP LINE ELECTRIC,INC 20.50 VOID ELECT PRMT 50769 202822 VOID ELECT PRMT 1001 4327 ELECTRIC PERMITS GENERAL FUND REVENUES 01000 01 50769 31.50 VOID ELECT PRMT 50769 202822 VOID ELECT PRMT 1000 2020 CONTRACTS PAYABLE GENERAL FUND BALANCE SHEE 01000 50769 1.00 VOID ELECT PRMT 50769 202822 VOID ELECT PRMT 1000 2420 BUILDING PERMIT SURCHARGE GENERAL FUND BALANCE SHEE 01000 50769 53.00 167681 6/13/2022 114013 TRADEMARK TITLE SERVICES,INC 114.12 REF UTIL CR@17990 EMBERS AVE 202814 22-1490/52 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 62.37 REF UTIL CR@604 14TH ST 202995 22-1368/112 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 63.73 REF UTIL CR@3054 224TH ST W 203001 22-1579/55 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 240.22 157682 5/13/2022 100334 WINE MERCHANTS 281.13 WINE ORDER 202956 7378051 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 281.13 167683 6/20/2022 100068 ADVANCE AUTO PARTS 5.00 ROPE FOR GENERATOR 202813 2131-591816 7200 6220 EQUIP SUPPLIES&PARTS FLEET OPERATIONS 07200 08 133.67 PLUGS AND WIRES FOR 0911 202815 2131-591865 1090 6230 VEHICLE SUPPLIES&PARTS PARK MAINTENANCE 01000 09 50.39 AIR COMPRESSOR OIL 202934 2131-591864 1060 6220 EQUIP SUPPLIES&PARTS FIRE SERVICES 01000 06 189.06 157684 5/20/2022 100011 ANDERSEN,EARL F 412.15 STREET SIGN SUPPLIES 202840 0129395-IN 1072 6220 EQUIP SUPPLIES&PARTS STREET MAINTENANCE 01000 08 412.15 157685 5/20/2022 113303 ARTISAN BEER COMPANY 1,100.40 BEER ORDER 203125 3534746 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 524.80 LIQUOR&SPIRITS ORDER 203163 3534874 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,625.20 167686 6/20/2022 108446 ASPEN MILLS,INC. 99.70 UNIFORM ITEMS:ROUDABUSH,R. 203172 293233 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 99.70 UNIFORM ITEMS:ZEIMET,T. 203173 293234 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 780.75 LT BADGES AND SIGNIA 203174 293232 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 18 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 188.34 UNIFORM ITEMS:DINGMAN,D 203175 293381 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 143.45 UNIFORM ITEMS:LEUBNER,R 203177 293608 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 1,311.94 157687 5/20/2022 102931 BACHMAN'S INC 1,285.35 ARBOR DAY TREES 202871 269343/50 1090 6250 OTHER SUPPLIES&PARTS PARK MAINTENANCE 01000 09 1,285.35 157688 5/20/2022 108671 BIDS LAUNDRY SYSTEMS 263.59 DRYER REPAIR FIRE ST 2 203178 SO10186569 1060 6505 EQUIPMENT REPAIR/MAINTENANCE FIRE SERVICES 01000 06 263.59 157689 5/20/2022 114472 BREAKTHRU BEVERAGE MN BEER,LLC 108.65 BEER ORDER 203118 344067473 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 5,679.42 BEER ORDER 203124 344067472 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 224.00 BEER ORDER 203132 344067178 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 75.00- LIQUOR&SPIRITS ORDER CREDIT 203133 409711813 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 11,653.88 BEER ORDER 203139 344067177 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 17,590.95 157690 5/20/2022 114471 BREAKTHRU BEVERAGE MN WINE&SPIRITS 161.45 WINE ORDER 203114 344068542 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 69.00 LIQUOR&SPIRITS ORDER 203115 344068543 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,019.87 LIQUOR&SPIRITS ORDER 203123 344068541 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 420.35 WINE ORDER 203134 344068096 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,582.86 LIQUOR&SPIRITS ORDER 203140 344068095 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 5,253.53 157691 5/20/2022 108360 CANNON RIVER WINERY 168.00 WINE ORDER 203117 13428 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 168.00 157692 5/20/2022 110511 CHARTER COMMUNICATIONS HOLDINGS,LLC 827.47 MAY'22 CABLE&ALARM LINES 203087 0001792050122 7400 6411 TELEPHONE/CABLE SERVICES INFORMATION TECHNOLOGY 07400 04 16.85 MAY'22 CABLE FD STATION#2 203089 0164297050622 7400 6412 CELLULAR SERVICES INFORMATION TECHNOLOGY 07400 04 844.32 157693 5/20/2022 100030 CORE&MAIN,LP 16.96 HYDRANT PARTS 203002 Q763098 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 OB 16.96 157694 5/20/2022 110844 DAKOTA COUNTY FINANCIAL SRVS 6,895.00 2ND QTR 2022 DBB OPER COSTS 203074 00043985 1020 6570 PROGRAMMING EXPENSE DAKOTA BROAD BAND-DBB 01000 6,895.00 157695 5/20/2022 100081 DAKOTA COUNTY LUMBER COMPANY 294.00 CONCRETE MIX 203101 2205-841512 1072 6253 STREET MATERIALS STREET MAINTENANCE 01000 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 19 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 294.00 157696 5/20/2022 100149 ECM PUBLISHERS,INC 99.75 AD FOR BIDS USDA SITE IMPRVMNT 202642 888445 1010 6455 LEGAL NOTICES ADMINISTRATION 01000 01 99.75 167697 5/20/2022 109931 FACTORY MOTOR PARTS 176.71 STOCK FILTERS 202664 1-7563111 7200 6230 VEHICLE SUPPLIES&PARTS FLEET OPERATIONS 07200 08 16.82 STOCK FILTERS 202789 1-7574936 7200 6230 VEHICLE SUPPLIES&PARTS FLEET OPERATIONS 07200 08 3.74 STOCK FILTERS 202790 112-185564 7200 6230 VEHICLE SUPPLIES&PARTS FLEET OPERATIONS 07200 08 127.99 IGNITION PARTS FOR 0910 202797 1-7577856 1090 6230 VEHICLE SUPPLIES&PARTS PARK MAINTENANCE 01000 09 56.79 STOCK FILTERS 202797 1-7577856 7200 6230 VEHICLE SUPPLIES&PARTS FLEET OPERATIONS 07200 08 67.13- RTRN:TIE ROD ENDS 203097 1-7610675 CR 1090 6230 VEHICLE SUPPLIES&PARTS PARK MAINTENANCE 01000 09 314.92 157698 5/20/2022 100027 GREAT LAKES COCA-COLA DISTRIBUTION,LLC 791.80 POP ORDER 203129 3608216393 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 791.80 167699 5/20/2022 100074 HOHENSTEINS INC 1,586.20 BEER ORDER 203106 503238 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 704.45 BEER ORDER 203126 503450 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,290.65 157700 5/20/2022 107414 JEFFERSON FIRE&SAFETY INC 1,272.59 CLEANING SOLUTION FOR FIRE GEA 203180 IN140145 1060 6242 CLEANING SUPPLIES FIRE SERVICES 01000 06 1,272.59 157701 6/20/2022 109846 JJ TAYLOR DISTRIBUTING COMPANY OF MN INC 6,294.75 BEER ORDER 203113 3296125 6100 1405 10 INVENTORY DOWNTOWN LIQUOR OPERATIONS 06100 02 8,861.04 BEER ORDER 203128 3296124 6100 1405 15 INVENTORY PILOT KNOB LIQUOR OPERATIONS 06100 02 15,155.79 157702 5/20/2022 100033 JOHNSON BROTHERS LIQUOR COMPANY 3,356.20 WINE ORDER 203119 2050957 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 9.62- LIQUOR&SPIRITS ORDER CREDIT 203138 199627 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,411.13 LIQUOR&SPIRITS ORDER 203144 2048337 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 70.05 LIQUOR&SPIRITS ORDER 203145 2048335 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 935.42 WINE ORDER 203146 2048334 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,018.58 LIQUOR&SPIRITS ORDER 203147 2048333 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 349.22 WINE ORDER 203148 2048332 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 60.00 LIQUOR&SPIRITS ORDER 203149 2048331 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 38.70 LIQUOR&SPIRITS ORDER 203150 2048330 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,355.80 LIQUOR&SPIRITS ORDER 203151 2048329 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,335.90 LIQUOR&SPIRITS ORDER 203155 2048327 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 .14 LIQUOR&SPIRITS ORDER 203156 2048328 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 20 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Cc Dept Div 1,771.32 LIQUOR&SPIRITS ORDER 203157 2048524 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 390.80 WINE ORDER 203158 2048336 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 235.21 LIQUOR&SPIRITS ORDER 203159 2048525 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 659.90 WINE ORDER 203160 2048526 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,176.71 LIQUOR&SPIRITS ORDER 203161 2048527 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 522.65 WINE ORDER 203162 2048528 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 15,678.11 157703 5/20/2022 118682 MESSERLI&KRAMER PA 324.13 203246 051922808544 7000 2128 GARNISHMENT PAYABLE EMPLOYEE EXPENSE FUND 07000 02 324.13 157704 5/20/2022 100322 MN NCPERS LIFE INSURANCE 16.00 203245 051922808543 7000 2119 PERA LIFE INS PAYABLE EMPLOYEE EXPENSE FUND 07000 02 16.00 157705 5/20/2022 112901 ON SITE TITLE LLC 57.41 REF UTIL CR@18704 EASTON AVE 203070 22-246 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 57.41 157706 5/20/2022 100290 PAUSTIS&SONS WINE COMPANY 1,121.75 WINE ORDER 203116 164813 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,121.75 157707 6/20/2022 100093 PELLICCI HARDWARE&RENTAL 34.98 SAWZALL BLADES 203090 K50422/F 1072 6220 EQUIP SUPPLIES&PARTS STREET MAINTENANCE 01000 08 34.98 157708 5/20/2022 100034 PHILLIPS WINE AND SPIRITS,INC 423.70 WINE ORDER 203058 6393270 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 470.15 LIQUOR&SPIRITS ORDER 203059 6393451 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 364.02 WINE ORDER 203060 6393452 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 54.45 LIQUOR&SPIRITS ORDER 203061 6393453 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 141.46 WINE ORDER 203152 6393272 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 81.70 WINE ORDER 203153 6393273 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,299.71 LIQUOR&SPIRITS ORDER 203154 6393271 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 544.26 LIQUOR&SPIRITS ORDER 203164 6393269 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 3,379.45 157709 5/20/2022 118046 SHRED RIGHT 33.00 SHRED RIGHT APR 22 203075 574190 4502 6560 CONTRACTUAL SERVICES RRC CAPITAL IMPROVEMENT F 04500 09 33.00 MAR 22 SHRED RIGHT 203247 572081 4502 6560 CONTRACTUAL SERVICES RRC CAPITAL IMPROVEMENT F 04500 09 66.00 157710 5/20/2022 112051 SOUTHERN GLAZER'S OF MN 6.40 DELIVERY FEE 203062 2209565 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 21 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 1,144.19 LIQUOR&SPIRITS ORDER 203063 2209566 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 22.68 LIQUOR&SPIRITS ORDER 203064 2209567 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 22.68 LIQUOR&SPIRITS ORDER 203065 2209568 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,567.00 LIQUOR&SPIRITS ORDER 203066 2209569 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 80.48 LIQUOR&SPIRITS ORDER 203067 2209570 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 291.79 LIQUOR&SPIRITS ORDER 203068 2209571 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 198.02 LIQUOR&SPIRITS ORDER 203069 5083638 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 198.02 LIQUOR&SPIRITS ORDER 203135 5063648 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,135.42 LIQUOR&SPIRITS ORDER 203141 2209575 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 5,125.87 LIQUOR&SPIRITS ORDER 203142 2209574 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 10,792.55 157711 5/20/2022 118440 SUMMER LAKES BEVERAGE LLC 598.50 LIQUOR&SPIRITS ORDER 203130 3732 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 598.50 157712 5/20/2022 118730 THE CAPRI BIG BAND 700.00 MUSIC IN PARK MAY 22 203057 052522 1095 6570 PROGRAMMING EXPENSE RECREATION PROGRAM SERVIC 01000 09 700.00 157713 5/20/2022 109522 TRISTATE BOBCAT INC 360.22 STOCK FILTERS 203098 P72501 7200 6230 VEHICLE SUPPLIES&PARTS FLEET OPERATIONS 07200 08 658.60 TORO MOWER SPARE PARTS 203099 P73365 1090 6220 EQUIP SUPPLIES&PARTS PARK MAINTENANCE 01000 09 1,018.82 157714 5/20/2022 113269 UNIVERSITY OF MN,REGENTS OF 500.00 MAY 5 RANGE FEES 203169 0430006282 1051 6470 TRAINING&SUBSISTANCE PATROL SERVICES 01000 05 500.00 157715 5/20/2022 100334 WINE MERCHANTS 125.70- WINE ORDER CREDIT 203137 744008 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 475.06 WINE ORDER 203143 7378990 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 349.36 157716 5/20/2022 100330 WINEBOW 560.25 WINE ORDER 203131 MN00112708 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 560.25 157717 5/27/2022 118746 FERGUSON,RANDALL L 125.00 PATRIOTIC SING ALONG 203248 052622 1093 6401 PROFESSIONAL SERVICES SENIOR CITIZEN SERVICES 01000 09 125.00 157718 5/27/2022 100160 AFFINITY PLUS FEDERAL CREDIT UNION 37.93 REF UTIL CR@19873 DEVRIE PATH 203440 20220428697/39 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 37.93 167719 5/27/2022 118247 AG PARTNERS COOP R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 22 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 60.89 K9 SMOKE FOOD 202884 210753 2200 6220 EQUIP SUPPLIES&PARTS K-9(EFF.2019) 02200 05 60.89 157720 5/27/2022 103785 AMERICAN TEST CENTER INC 1,147.00 LADDER TESTING 203309 2220927 1060 6510 1 OUTSIDE VEHICLE REPAIR/MAINT FIRE SERVICES 01000 06 1,147.00 157721 5/27/2022 113303 ARTISAN BEER COMPANY 504.60 BEER ORDER 203336 3536068 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,894.90 BEER ORDER 203378 3536206 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,399.50 157722 5/27/2022 108446 ASPEN MILLS,INC. 52.35 UNIFORM GOEDTEL 203250 293953 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 69.70 UNIFORM JACOBSON 203251 293034 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 89.10 NAME TAGS 203252 293075 1060 6290 UNIFORMS&CLOTHING FIRE SERVICES 01000 06 211.15 157723 5/27/2022 100112 BADGER METER INC 422.70 APR'22 BEACON MBL HOSTING SERV 203431 80097860 6502 6505 EQUIPMENT REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 422.70 157724 5/27/2022 112292 BANKERS TITLE LLC 193.49 REF UTIL CR@5253 180TH ST W 203334 22.183.00350 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 193.49 157725 5/27/2022 110290 BOLTON&MENK,INC 760.00 MAR'22 SVS:FAIRHILL 3RD 203324 0288069 4600 2256 70207 DEVELOPMENT ESCROWS PRIVATE CAPITAL PROJECTS 04600 07 950.00 MAR'22 SVS:FAIRHILL 4TH 203325 0288073 4600 2256 70210 DEVELOPMENT ESCROWS PRIVATE CAPITAL PROJECTS 04600 07 847.50 MAR'22 SVS:VERM COMMNS GRADIN 203326 0288247 4600 2256 71002 DEVELOPMENT ESCROWS PRIVATE CAPITAL PROJECTS 04600 07 4,942.50 MAR-22 SVS:VERM CMMNS 1ST PLA 203326 0288247 4600 2256 71003 DEVELOPMENT ESCROWS PRIVATE CAPITAL PROJECTS 04600 07 110,321.80 SPRUCE STREET DESIGN 203327 0288066 5800 6401 02202 PROFESSIONAL SERVICES Spruce Street Reconstruct 05800 07 26,979.75 SPRUCE STREET DESIGN 203327 0288066 5801 6401 02202 PROFESSIONAL SERVICES 2022 Parking Lot Project 05801 07 144,801.55 157726 5/27/2022 114472 BREAKTHRU BEVERAGE MN BEER,LLC 112.10 BEER ORDER 203353 344155557 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 18,097.20 BEER ORDER 203355 344155556 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 11,442.35 BEER ORDER 203365 344154945 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 22.40 BEER ORDER 203389 344154946 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 55.20- BEER ORDER CREDIT 203391 409727304 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 29,618.85 167727 5/27/2022 114471 BREAKTHRU BEVERAGE MN WINE&SPIRITS 96.00 LIQUOR&SPIRITS ORDER 203350 344156547 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 130.45 WINE ORDER 203351 344156545 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 23 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 1,388.65 WINE ORDER 203352 344156544 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,723.51 LIQUOR&SPIRITS ORDER 203356 344156546 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 53.45 WINE ORDER 203363 344155890 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,477.73 LIQUOR&SPIRITS ORDER 203364 344155891 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 6,869.79 167728 5/27/2022 110218 BURNET TITLE 87.73 REF UTIL CR@18602 EUCLID PATH 203438 2121022-03381 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 87.73 157729 5/27/2022 100578 GEMSTONE CONCRETE MATERIALS,LLC 418.50 CONCRETE:CURB MAIN BRK 6TH ST 203102 C2488788 6502 6250 OTHER SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 418.50 157730 5/27/2022 100030 CORE&MAIN,LP 101.09 CURB BOX PARTS 203103 Q795429 6502 6220 EQUIP SUPPLIES&PARTS WATER UTILITY EXPENSE 06500 08 101.09 167731 6/27/2022 100133 DAKOTA COUNTY FINANCIAL SRVS 1,026.52 APRIL 2022 RADIO SUB FEES 203311 00044032 1050 6560 CONTRACTUAL SERVICES POLICE ADMINISTRATION 01000 05 1,539.78 APRIL 2022 RADIO SUB FEES 203311 00044032 1060 6560 CONTRACTUAL SERVICES FIRE SERVICES 01000 06 2,566.30 157732 5/27/2022 100041 DAKOTA COUNTY PROPERTY TAXATION 12.00 OUTLOTG FAIRHILL TAXES 203406 PID# 4600 2256 70208 DEVELOPMENT ESCROWS PRIVATE CAPITAL PROJECTS 04600 07 14-25615-00-070 12.00 167733 6/27/2022 100041 DAKOTA COUNTY PROPERTY TAXATION 8.00 OUTLOT I FAIRHILL TAXES 203407 PID# 4600 2256 70208 DEVELOPMENT ESCROWS PRIVATE CAPITAL PROJECTS 04600 07 14-25615-00-090 2022 8.00 157734 5/27/2022 100041 DAKOTA COUNTY PROPERTY TAXATION 216.00 OUTLOT B VITA ATTIVA TAXES 203408 PID# 4600 2256 70903 DEVELOPMENT ESCROWS PRIVATE CAPITAL PROJECTS 04600 07 14-82900-00-020 2022 216.00 157735 5/27/2022 100147 DAKOTA COUNTY TECHNICAL COLLEGE 600.00 HAGFORS PIT TRAINING 203167 1012521 1051 6470 TRAINING&SUBSISTANCE PATROL SERVICES 01000 05 600.00 157736 6/27/2022 100149 ECM PUBLISHERS,INC 24.75 PC PUBLIC HEARING NOTICE 202982 889829 1030 6455 LEGAL NOTICES PLANNING&ZONING 01000 03 247.50 2022 STREET&UT IMPROV 202985 889826 1070 6455 LEGAL NOTICES ENGINEERING SERVICES 01000 07 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 24 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 22.00 PC PUBLIC HEARING 202986 889827 1030 6455 LEGAL NOTICES PLANNING&ZONING 01000 03 33.00 COUNCIL PUBLIC HEARING 202988 889828 1010 6455 LEGAL NOTICES ADMINISTRATION 01000 01 27.50 PC PUBLIC HEARING 202989 889830 1030 6455 LEGAL NOTICES PLANNING&ZONING 01000 03 354.75 157737 5/27/2022 115221 ESQUIRE TITLE SERVICE LLC 218.86 REF UTIL CR@3095 224TH ST W 203330 22-0358/23 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 218.86 157738 5/27/2022 113096 ETERNITY HOMES,LLC 3,000.00 ER 2892-213TH ST W 203314 ER 2892-213TH ST 4600 2255 DEPOSITS PAYABLE PRIVATE CAPITAL PROJECTS 04600 07 W 3,000.00 157739 5/27/2022 109931 FACTORY MOTOR PARTS 126.13 BATTERY FOR 0911 202804 1-Z29174 1090 6230 VEHICLE SUPPLIES&PARTS PARK MAINTENANCE 01000 09 197.26 SUSPENSION PARTS FOR 0741 202806 1-7589533 1090 6230 VEHICLE SUPPLIES&PARTS PARK MAINTENANCE 01000 09 55.17 POWER WINDOW SWITCH FOR 0737 203091 1-7596116 1072 6230 VEHICLE SUPPLIES&PARTS STREET MAINTENANCE 01000 08 378.56 157740 5/27/2022 116402 FRANA,TREVOR J 70.00 LAX REFUND 203304 LAX REFUND 1001 4662 RECREATION FEES-GENERAL GENERAL FUND REVENUES 01000 01 70.00 157741 5/27/2022 118737 GILBERTSON,SUE 70.00 LAX REFUND 203269 LAX REFUND 1001 4662 RECREATION FEES-GENERAL GENERAL FUND REVENUES 01000 01 70.00 157742 5/27/2022 111456 GLOBAL CLOSING&TITLE SERVICES 98.49 REF UTIL CR@5099 LWR 183 ST W 203333 MN-04-220502 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 22.00 REF UTIL CR@21045 CAMERON WAY 203441 MN-04-220513 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 120.49 157743 5/27/2022 100024 GOPHER STATE ONE-CALL 161.55 APR 2022 LOCATES 202991 2040387 6502 6401 PROFESSIONAL SERVICES WATER UTILITY EXPENSE 06500 08 161.55 APR 2022 LOCATES 202991 2040387 6402 6401 PROFESSIONAL SERVICES STORM WATER UTILITY OPERA 06400 08 161.55 APR 2022 LOCATES 202991 2040387 6202 6401 PROFESSIONAL SERVICES SEWER OPERATIONS EXPENSE 06200 08 484.65 157744 5/27/2022 100027 GREAT LAKES COCA-COLA DISTRIBUTION,LLC 489.64 POP ORDER 203369 3608216474 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 489.64 157745 5/27/2022 116689 GREATAMERICA FINANCIAL SERVICES 217.85 MAY'22 POSTAGE METER RENTAL 203088 31608848 1010 6555 RENTAL OF EQUIPMENT ADMINISTRATION 01000 01 217.85 167746 5/27/2022 118699 HAGFORS,ROBERT R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 25 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 456.50 TACTICAL GEAR 203405 20220511 HAGFORS 1051 6290 UNIFORMS&CLOTHING PATROL SERVICES 01000 05 456.50 157747 5/27/2022 100074 HOHENSTEINS INC 1,613.10 BEER ORDER 203338 505072 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,613.10 157748 5/27/2022 100597 INDEPENDENT BLACK DIRT CO INC 42.00 DIRT FOR ARBOR DAY 202879 31654APRIL22 1090 6250 OTHER SUPPLIES&PARTS PARK MAINTENANCE 01000 09 42.00 157749 5/27/2022 109846 JJ TAYLOR DISTRIBUTING COMPANY OF MN INC 5,912.30 BEER ORDER 203342 3296163 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 8.00- BEER ORDER CREDIT 203343 3266610 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 7,290.47 BEER ORDER 203366 3296164 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 13,194.77 157750 5/27/2022 100033 JOHNSON BROTHERS LIQUOR COMPANY 726.12 LIQUOR&SPIRITS ORDER 203344 2053567 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 666.20 WINE ORDER 203345 2053568 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 487.00 LIQUOR&SPIRITS ORDER 203370 2053090 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 245.10 WINE ORDER 203371 2053091 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 595.40 LIQUOR&SPIRITS ORDER 203372 2053092 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 607.50 LIQUOR&SPIRITS ORDER 203373 2053287 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 327.80 LIQUOR&SPIRITS ORDER 203374 2053288 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 947.04 WINE ORDER 203375 2053289 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 2,104.89 LIQUOR&SPIRITS ORDER 203376 2053290 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 770.91 WINE ORDER 203377 2053291 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 546.30 LIQUOR&SPIRITS ORDER 203395 2053089 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 77.40 LIQUOR&SPIRITS ORDER 203396 2053093 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 252.65 WINE ORDER 203397 2053094 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,037.68 LIQUOR&SPIRITS ORDER 203398 2053095 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 831.82 WINE ORDER 203399 2053096 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 4,227.09 LIQUOR&SPIRITS ORDER 203400 2053097 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 105.45 LIQUOR&SPIRITS ORDER 203430 2057937 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 14,556.35 157751 5/27/2022 100121 LEAGUE OF MINNESOTA CITIES 449.00 LMC CONFERENCE WILSON 203436 364005 1005 6470 TRAINING&SUBSISTANCE LEGISLATIVE CONTROL 01000 01 449.00 157752 5/27/2022 102184 LEWIS,KENNETH R 164.99 2022 REIMB SAFETY SHOES 203322 20220516 1031 6290 UNIFORMS&CLOTHING BUILDING INSPECTIONS 01000 07 164.99 157763 5/27/2022 118580 MEGA BEER LLC R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 26 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 1,925.25 BEER ORDER 203384 14479 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,925.25 157754 5/27/2022 100095 METROPOLITAN COUNCIL ENVIRONMENTAL SVS 149,085.30 JUNE 2022 WASTE WATER MCES FEE 203000 0001139635 6502 6565 MCES FEES WATER UTILITY EXPENSE 06500 08 149,085.30 157755 5/27/2022 118563 MINNESOTA TITLE 144.31 REF UTIL CR@1205 OAK ST 203329 MT-2204-1046-ED/10 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 0 83.67 REF UTIL CR@4820 189TH ST W 203331 MT-2204-1377-BV/77 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 227.98 157756 5/27/2022 116093 MIRROR ME PERFECT 527.23 PHOTO BOOTH 203412 1396 1093 6401 PROFESSIONAL SERVICES SENIOR CITIZEN SERVICES 01000 09 527.23 157767 5/27/2022 118612 MN BUREAU OF CRIMINAL APPREHENSION 33.25 FIREFIGHTER BACKGROUND 203418 20220520 1060 6405 EMPLOYMENT TESTING FIRE SERVICES 01000 06 BACKGROUND CHK 33.25 157758 5/27/2022 107932 MOOD MEDIA 55.86 JUN'22 2022 RADIO SVS-LIQUOR 203414 56866735 6110 6401 PROFESSIONAL SERVICES DOWNTOWN LIQUOR REV&EXP 06100 02 55.85 JUN'22 2022 RADIO SVS-LIQUOR 203414 56866735 6115 6401 PROFESSIONAL SERVICES PILOT KNOB LIQUOR 06100 02 111.71 157759 5/27/2022 100290 PAUSTIS&SONS WINE COMPANY 1,247.75 WINE ORDER 203390 165545 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,247.75 157760 5/27/2022 100032 PEPSI COLA COMPANY 189.60 POP ORDER 203358 31188807 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 336.07 POP ORDER 203367 34680104 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 525.67 157761 5/27/2022 118379 PEQUOD DISTRIBUTING 516.00 BEER ORDER 203404 W-147946 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 516.00 157762 5/27/2022 100034 PHILLIPS WINE AND SPIRITS,INC 1,718.00 LIQUOR&SPIRITS ORDER 203379 6397253 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,800.28 WINE ORDER 203380 6397254 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 54.45 LIQUOR&SPIRITS ORDER 203401 6397079 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,606.20 WINE ORDER 203402 6397078 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 468.87 LIQUOR&SPIRITS ORDER 203403 6397077 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 6,649.80 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 27 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 157763 5/27/2022 100196 QUALITY REFRIGERATION INC 1,067.15 WALK IN COOLER REPAIR 203415 1103237 6115 6505 EQUIPMENT REPAIR/MAINTENANCE PILOT KNOB LIQUOR 06100 02 1,067.15 157764 5/27/2022 116843 RESULTS TITLE 181.85 REF UTIL CR@18090 ELGIN AVE 203437 22-01481 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 181.85 157765 5/27/2022 117646 RESULTS TITLE 97.56 REF UTIL CR@22 PINE PL 203328 22-02572 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 50.96 REF UTIL CR@18840 ENHANCED CT 203439 22-02426 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 148.52 157766 5/27/2022 118150 RISTOW,DENISE 34.00 MAY 22 DAYTIME YOGA 203413 YOGA-MAY'22 1093 6401 PROFESSIONAL SERVICES SENIOR CITIZEN SERVICES 01000 09 34.00 157767 5/27/2022 118480 ROBERT HALF 1,806.25 WK END 05/20/22-BNFTS RVW SPEC 203434 60026094 1011 6401 PROFESSIONAL SERVICES HUMAN RESOURCES 01000 04 3,600.00 WK END 05/20/22-PAYROLL SPEC 203435 60030897 1011 6401 PROFESSIONAL SERVICES HUMAN RESOURCES 01000 04 5,406.25 157768 5/27/2022 110990 SCHINDLER ELEVATOR CORPORATION 44.06 QTRLY ELEVATOR MAINT CONTRACT 203273 9100727924 1015 6515 BUILDING REPAIR/MAINTENANCE CITY HALL 01000 01 44.06 157769 5/27/2022 110022 SCHWICKERT'S TECTA AMERICA,LLC 202.47 BOILER LEAK REPAIR 203277 S500007812 6502 6515 BUILDING REPAIR/MAINTENANCE WATER UTILITY EXPENSE 06500 08 289.25 BOILER LEAK REPAIR 203277 S500007812 6402 6515 BUILDING REPAIR/MAINTENANCE STORM WATER UTILITY OPERA 06400 08 144.62 BOILER LEAK REPAIR 203277 S500007812 6202 6515 BUILDING REPAIR/MAINTENANCE SEWER OPERATIONS EXPENSE 06200 08 231.40 BOILER LEAK REPAIR 203277 S500007812 1090 6515 BUILDING REPAIR/MAINTENANCE PARK MAINTENANCE 01000 09 144.62 BOILER LEAK REPAIR 203277 S500007812 1072 6515 BUILDING REPAIR/MAINTENANCE STREET MAINTENANCE 01000 08 1,012.36 157770 5/27/2022 107018 SHAMROCK GROUP 165.10 ICE CUBE ORDER 203339 2756858 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 87.00 ICE CUBE ORDER 203340 8601230924 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 165.10 ICE CUBE ORDER 203368 2756860 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 417.20 157771 5/27/2022 112061 SOUTHERN GLAZER'S OF MN 699.56 LIQUOR&SPIRITS ORDER 203349 2214455 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,537.22 WINE ORDER 203361 2212051 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 2,651.34 LIQUOR&SPIRITS ORDER 203362 2212050 6100 1405 15 INVENTORY PILOT KNOB LIQUOR OPERATIONS 06100 02 3,869.44 LIQUOR&SPIRITS ORDER 203385 2212047 6100 1405 10 INVENTORY DOWNTOWN LIQUOR OPERATIONS 06100 02 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 28 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 2,551.64 LIQUOR&SPIRITS ORDER 203386 2212046 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 11,309.20 167772 6/27/2022 118440 SUMMER LAKES BEVERAGE LLC 504.00 LIQUOR&SPIRITS ORDER 203383 3733 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 504.00 167773 5/27/2022 114013 TRADEMARK TITLE SERVICES,INC 73.84 REF UTIL CR@4850 192ND ST W 203332 22-1643/63 6200 1310 3 REFUND CIS SEWER OPERATIONS 06200 08 73.84 157774 5/27/2022 118706 TRAFFIC SAFETY STORE 2,593.75 EM TRAILER TRAFFIC CONES 203022 #INV902528 2700 6950 27009 MACHINERY,EQUIP&TOOLS SPEC PROJECTS FUND 02700 02 2,593.75 167775 5/27/2022 100334 WINE MERCHANTS 245.03- WINE ORDER CREDIT 203359 744001 CR 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 672.69 WINE ORDER 203381 7379909 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 129.70 WINE ORDER 203382 7379948 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 73.70 WINE ORDER 203394 7379910 6100 1405 15 INVENTORY-PILOT KNOB LIQUOR OPERATIONS 06100 02 1,120.91 WINE ORDER 203429 7380793 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 1,751.97 157776 5/27/2022 116455 WRS IMPORTS CO,LLC 307.50 LIQUOR&SPIRITS ORDER 203348 3388 6100 1405 10 INVENTORY-DOWNTOWN LIQUOR OPERATIONS 06100 02 307.50 157777 5/27/2022 117801 ZELLMER,RUSSEL 77.00 STRAW FOR LIVE BURN 203306 20220523 1060 6250 OTHER SUPPLIES&PARTS FIRE SERVICES 01000 06 77.00 20220603 5/2/2022 112399 DEARBORN LIFE INSURANCE COMPANY 1,244.53 MAY-22 STD INSURANCE PREMIUMS 203013 019839-1 MAY'22 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 1,244,53 20220604 5/3/2022 117968 EBSO 60,773.60 MAY-22 HEALTH INS PREMIUM 203015 9029-076598-1000 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 60,773.60 20220605 5/3/2022 117965 VSP INSURANCE CO. 228.70 MAY'22 VISION INS PREMIUM 203019 814928881 MAY'22 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 228.70 20220606 6/4/2022 100394 XCEL ENERGY 53.64 DOWN TOWN ST LIGHTS 202321 51-4874005 MAR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 699.19 WELLS 3&1 202321 51-4874005 MAR'22 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 13.13 LIFT STATIONS 202321 51-4874005 MAR'22 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 251.24- LIFT STATIONS CREDIT 202321 51-4874005 MAR'22 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 29 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 59.55 TRAFFIC SIGNAL 202321 51-4874005 MAR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 187.40 ROUNDABOUT 202321 51-4874005 MAR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 7.24 CITY GARAGE 202321 51-4874005 MAR'22 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 173.79 CITY GARAGE 202321 51-4874005 MAR'22 6502 6422 ELECTRIC WATER UTILITY EXPENSE 06500 08 4.82 CITY GARAGE 202321 51-4874005 MAR'22 6402 6422 ELECTRIC STORM WATER UTILITY OPERA 06400 08 4.82 CITY GARAGE 202321 51-4874005 MAR'22 1072 6422 ELECTRIC STREET MAINTENANCE 01000 08 12.67 CITY GARAGE 202321 51-4874005 MAR'22 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 .38- NON METERED ST LIGHTS CREDIT 202321 51-4874005 MAR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 8,251.14 NON METERED ST LIGHTS 202321 51-4874005 MAR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 9,215.77 20220607 5/9/2022 100135 PUBLIC EMPLOYEES RETIREMENT ASSN. 25,626.00 202719 050522833181 7000 2113 PERA PAYABLE EMPLOYEE EXPENSE FUND 07000 02 34,583.42 202720 050522833182 7000 6154 PERA EMPLOYEE EXPENSE FUND 07000 02 60,209.42 20220508 5/10/2022 108980 MINNESOTA ENERGY RESOURCES CORPORATION 92.33 APR'22 GAS 208TH ST WARM HOUSE 202565 0506537581 APR'22 1090 6423 NATURAL GAS PARK MAINTENANCE 01000 09 92.33 20220509 6/12/2022 115438 AMERITAS LIFE INSURANCE CORP 6,104.48 APRIL PREMIUM 202173 010-44446 APR'22 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 2,833.76 MAY'22 DENTAL INSURANCE 203029 010-44446 MAY 2022 7000 6158 EMPLOYEE BENEFITS EMPLOYEE EXPENSE FUND 07000 02 8,936.24 20220510 5/13/2022 108980 MINNESOTA ENERGY RESOURCES CORPORATION 1,204.84 APR'22 GAS FIRE STATION 2 203253 0505001779 1060 6423 NATURAL GAS FIRE SERVICES 01000 06 MAR/APR'22 1,204.84 20220511 5/17/2022 117633 NOKOMIS ENERGY LLC 4,615.18 APR'22 ELEC CITYHALUARENA/RRC 202886 AOR3YP-2022-04-30 1015 6422 ELECTRIC CITY HALL 01000 01 6,507.67 APR'22 ELEC CITYHALUARENA/RRC 202886 AOR3YP-2022-04-30 2502 6422 ELECTRIC ICE ARENA OPERATIONS EXPE 02500 09 634.45 APR'22 ELEC CITYHALUARENA/RRC 202886 AOR3YP-2022-04-30 1093 6422 ELECTRIC SENIOR CITIZEN SERVICES 01000 09 11,757.30 20220512 5/18/2022 108980 MINNESOTA ENERGY RESOURCES CORPORATION 24.10 APR'22 GAS VERM GROVE LIFT STN 202829 0503080372 APR'22 6202 6423 NATURAL GAS SEWER OPERATIONS EXPENSE 06200 08 94.84 APR'22 GAS WELL#5 202830 0507120636 APR'22 6502 6423 NATURAL GAS WATER UTILITY EXPENSE 06500 08 118.94 20220513 6/18/2022 116664 FP MAILING SOLUTIONS/POSTALIA 200.00 POSTAGE FOR POSTAGE METER 203187 11822345 20220516 1050 6445 POSTAGE/SHIPPING FEES POLICE ADMINISTRATION 01000 05 200.00 20220514 5/19/2022 108980 MINNESOTA ENERGY RESOURCES CORPORATION R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 30 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 358.59 APR'22 GAS DT LIQ STORE 202786 0731950432 APR'22 6110 6423 NATURAL GAS DOWNTOWN LIQUOR REV&EXP 06100 02 358.59 20220616 6/20/2022 111046 VOYAGER FLEET SYSTEMS INC 63.39 APR'22 FUEL RECREATION 202712 8690882372218 1093 6272 FUEL SENIOR CITIZEN SERVICES 01000 09 RECREATION 7,065.78 APR'22 FUEL POLICE 202734 8690882372218 1051 6272 FUEL PATROL SERVICES 01000 05 POLICE 146.04 FUEL 202744 8690882372218 BLDG1031 6272 FUEL BUILDING INSPECTIONS 01000 07 INSP 814.68 APR'22 FUEL STORM 202835 8690882372218 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 STORM 106.34 APR'22 FUEL STREET 202836 8690882372218 1072 6272 FUEL STREET MAINTENANCE 01000 08 ST/SN 730.93 APR'22 FUEL WATER 202837 8690882372218 6502 6272 FUEL WATER UTILITY EXPENSE 06500 08 WATER 1,782.38 APR'22 FUEL SEWER 202838 8690882372218 6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 SEWER 80.61 APR'21 FUEL FLEET 202839 8690882372218 7200 6272 FUEL FLEET OPERATIONS 07200 08 FLEET 65.26 APR'22 FUEL BLDG MAINT 202869 8690882372218 BLDG2502 6272 FUEL ICE ARENA OPERATIONS EXPE 02500 09 MAINT 6.27 APR'22 FUEL JANITORIAL 202874 8690882372218 6502 6272 FUEL WATER UTILITY EXPENSE 06500 06 JANITORIAL 8.96 APR'22 FUEL JANITORIAL 202874 8690882372218 6402 6272 FUEL STORM WATER UTILITY OPERA 06400 08 JANITORIAL 4.48 APR'22 FUEL JANITORIAL 202874 8690882372218 6202 6272 FUEL SEWER OPERATIONS EXPENSE 06200 08 JANITORIAL 4.48 APR'22 FUEL JANITORIAL 202674 8690882372218 2502 6272 FUEL ICE ARENA OPERATIONS EXPE 02500 09 JANITORIAL 3.58 APR'22 FUEL JANITORIAL 202874 8690882372218 1093 6272 FUEL SENIOR CITIZEN SERVICES 01000 09 JANITORIAL 7.17 APR'22 FUEL JANITORIAL 202874 8690882372218 1090 6272 FUEL PARK MAINTENANCE 01000 09 JANITORIAL 4.48 APR'22 FUEL JANITORIAL 202874 8690882372218 1072 6272 FUEL STREET MAINTENANCE 01000 08 JANITORIAL 16.12 APR'22 FUEL JANITORIAL 202874 8690882372218 1060 6272 FUEL FIRE SERVICES 01000 06 JANITORIAL 62.69 APR'22 FUEL JANITORIAL 202874 8690882372218 1015 6272 FUEL CITY HALL 01000 01 JANITORIAL 1,474.65 APR;22 FUEL PARKS 202876 8690882372218 1090 6272 FUEL PARK MAINTENANCE 01000 09 PARKS R55CKS2 LOGIS600V CITY OF FARMINGTON 5/31/2022 12:17:29 Note: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. Council Check Summary Page- 31 5/1/2022 - 5/31/2022 Check# Date Amount Supplier/Explanation PO# Doc No Inv No BU Obj Sub Subledger Account Description BU Description Co Dept Div 196.58 APR'22 FUEL NAT RES 203071 8690882372218 NAT 1076 6272 FUEL NATURAL RESOURCES 01000 07 RES 234.11 APR'22 FUEL BLDG INSP 203072 8690882372218 1031 6272 FUEL BUILDING INSPECTIONS 01000 07 ENGINEERING 50.44 APR'22 FUEL ENGINEERING 203072 8690882372218 1070 6272 FUEL ENGINEERING SERVICES 01000 07 ENGINEERING 1,641.27 APR'22 FUEL FIRE 203255 8690882372218 FIRE 1060 6272 FUEL FIRE SERVICES 01000 06 14,570.69 20220516 5/20/2022 100394 XCEL ENERGY 161.11 APR'22 ELEC-190TH ST BRDG LTS 202825 51-9371130 APR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 34.50 APR'22 ELEC-5262 208TH ST LTS 202826 51-8391412 APR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 36.75 APR'22 ELEC-LINDEN ST LFT STN 202827 51-6585658 APR'22 6202 6422 ELECTRIC SEWER OPERATIONS EXPENSE 06200 08 197.73 APR'22 ELEC-321 ELM ST LTS 202828 51-8608862 APR'22 6602 6422 ELECTRIC STREETLIGHT UTILITY EXPEN 06600 08 28.27 APR'22 ELEC-DISTAD PARK WRM HS 202864 51-9027188 APR'22 1090 6422 ELECTRIC PARK MAINTENANCE 01000 09 458.36 Report Totals 1,155,058.43 APP OVALS: HOYT 'p—BERNHJELM LIEN c92POR ER SON CITY OF 0 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Sherrie Le,Temporary Human Resources Director SUBJECT: Approve Staff Changes and Recommendations - Human Resources DATE: June 6, 2022 INTRODUCTION We are wrapping up our hiring for seasonal employees, so there are eight seasonal new hires and one regular full-time hire on this agenda. We are also submitting names and job titles of two employees who have recently resigned from city employment. DISCUSSION Regular Full-time: Full-time Park Maintenance Worker—Austin Holm has a strong background in the field and has professional landscaping experience. He comes highly recommended. He will start at the first step of the salary range. Seasonal Staff: The Parks and Recreation department is looking forward to the eight seasonal hires that will be joining our team. Terminations: There are just two employees who have left employment with the city over the past few weeks. Their names, job titles and effective dates are attached for your review. BUDGET IMPACT A list with names, effective dates, and pay rate for the new hires is attached. ACTION REQUESTED Approve the appointments and terminations of new staff. ATTACHMENTS: Type Description © Exhibit Staffing Changes New Hires: Last Name First Name Position Hourly Effective Date Holm Austin FT Park Maintenance Worker $22.05 6/7/2022 Gifford* Natalie Recreation Assistant $10.75 6/7/2022 *Contingent on successsful drug screen and background check Homick* Mason Recreation Assistant $10.75 6/7/2022 *Contingent on successsful drug screen and background check Topiwala* Dylan Recreation Assistant $10.75 6/7/2022 *Contingent on successsful drug screen and background check Bartell* Nathan Seasonal Park Maintenance Wkr $11.99 6/7/2022 *Contingent on successsful drug screen and background check Carter* Lamar Seasonal Park Maintenance Wkr $11.99 6/7/2022 *Contingent on successsful drug screen and background check Coyer* Ethan Seasonal Park Maintenance Wkr $11.99 6/7/2022 *Contingent on successsful drug screen and background check Haff* Carter Seasonal Park Maintenance Wkr $11.99 6/7/2022 *Contingent on successsful drug screen and background check Becker* Julia Skating Instructor $11.97 6/14/2022 *Contingent on successsful drug screen and background check Employment Terminations: Last Name First Name Job Title Effective Date Koch Carol DBB Executive Director 6/2/2022 Hawes Brittainy PT Liquor Store Clerk 5/17/2022 CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-28o-6800 OFarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Chris Regis, Finance Director SUBJECT: 2021 Management and Annual Financial Report-Finance DATE: June 6, 2022 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, 2021 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, 2021,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$129,610,796 (net position)at the close of the most recent fiscal year. Of this amount, $29,714,679 (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$9,080,332 in 2021, of this amount an increase of$7,578,472 was attributable to governmental activities, and an increase of$1,501,860 was attributable to business- type activities. •The city's outstanding bonded debt decreased by$2,155,000, or 18.4 percent, during the fiscal year due to annual bond principal payments. •The city's governmental funds reported combined ending fund balances of$20,186,036 at December 31, 2021, an increase of$806,051 from the prior year.Approximately 77.7 percent of this total amount, $15,689,980, 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$6,843,396, or 43.5 percent, of 2022 General Fund budgeted expenditures and transfers out. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the city of Farmington for its Annual Report for the year ended December 31, 2020.This was the 12th 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 2021 report to the GFOA to determine eligibility for another certificate. The city received $1,261,718 from the American Recovery Plan Act(ARPA) in response to the COVI D-19 pandemic and the financial stress that the pandemic caused cities. As of 12/31/2021 the city had yet to spend any of the ARPA funds. A single federal audit is required when a non-federal entity expends $750,000 or more in federal grant funds in a fiscal year. Since the city did not expend any of the ARPA funds, a single audit was not required. 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 a number of areas, including, but not limited to, controls over payroll.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 during disbursement testing that one disbursement out of twenty-five tested,was not paid within the required time frame required by Minnesota Statutes.This was an oversight by city personnel. Staff will review its claims and disbursements payment procedures to ensure future compliance with Minnesota Statutes. As stated earlier,the responsibility for both the accuracy and completeness of the financial records rests with the city.This is not accomplished by one person. It takes everyone working together to make this possible. I 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 Human 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 excellentjob. • City staff members diligently code and/or review invoices for payment, enter receipts, submit supporting documentation, answer our many questions and are very conscientious and conservative with their spending. All of these activities directly contribute to the accuracy and completeness of the city's financial records and improved financial strength.Thank you to staff for paying close attention to detail, patience with complying with our numerous accounting requirements, some of which seem very tedious to those outside of Finance and Accounting, and their willingness to learn new ways to process information. •The auditors did an excellent job.They were organized and asked great questions. Each year their depth of understanding of the city and its processes and policies has increased. They were very thorough and respectful. Each staff person was technically strong and they were instrumental in the ongoing reporting for pension accounting and disclosure requirements. •Thank you, Mayor, members of the City Council, and the City Administrator for your willingness to do what you believe is best for the city long-term. I t is not easy as it is a constant balancing act.You have worked hard to strengthen the city's financial position and have demonstrated your commitment to long- term comprehensive financial planning. BUDGET IMPACT N/A ACTION REQUESTED As 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 2021 Farmington Annual Financial Report D Backup Material 2021 Farmington Management Report D Backup Material 2021 Farmington Special Purpose Report Annual Comprehensive Financial Report ,I 1.. - yp1►,. Photo from Nicole J. Pulczinski City of Farmington, Minnesota Year Ended December 31 , 2021 Lynn Gorski - City Administrator Prepared by: Finance Department CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA Annual Comprehensive Financial Report for the Year Ended December 31, 2021 Lynn Gorski 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 32-66 REQUIRED SUPPLEMENTARY INFORMATION PERA—General Employees Retirement Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability 67 Schedule of City Contributions 67 PERA—Public Employees Police and Fire Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability 68 Schedule of City Contributions 68 Farmington Fire Fighters' Relief Association Schedule of Changes in the Relief Association's Net Pension Liability(Asset) and Related Ratios 69 Schedule of City Contributions 70 Other Post-Employment Benefits Plan Schedule of Changes in the City's Total OPEB Liability and Related Ratios 71 Notes to Required Supplementary Information 72-79 CITY OF FARMINGTON Table of Contents (continued) Page SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds 80 Combining Balance Sheet 81 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 82 Nonmajor Special Revenue Funds 83 Combining Balance Sheet 84-85 Combining Statement of Revenues,Expenditures, and Changes in Fund Balances 86-87 Nonmajor Capital Projects Funds 88 Combining Balance Sheet 89-90 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances 91-92 Debt Service Fund 93 Combining Balance Sheet by Account 94-95 Combining Schedule of Revenues,Expenditures, and Changes in Fund Balances by Account 96-97 Budgetary Comparison Schedules 98 Debt Service Fund 99 Maintenance Capital Projects Fund 100 Private Capital Projects Fund 101 Nonmajor Special Revenue Funds Economic Development Authority 102 Trident Housing Tax Increment 103 Police Donations and Forfeitures 104 Park Improvement 105 Arena 106 Nonmajor Capital Projects Funds Sanitary Sewer Trunk 107 Cable Communications 108 State Aid Construction Capital Projects Fund 109 Fire 110 Storm Water Trunk Capital Projects Fund 111 Recreation 112 Permanent Improvement Revolving Capital Projects Fund 113 General Capital Equipment 114 Internal Service Funds 115 Combining Statement of Net Position 116 Combining Statement of Revenues,Expenses,and Changes in Fund Net Position 117 Combining Statement of Cash Flows 118 CITY OF FARMINGTON Table of Contents (continued) Page STATISTICAL SECTION(UNAUDITED) STATISTICAL TABLES(UNAUDITED) 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 O 43o Third St., Farmington, MN 55024 FARMINGTON 0 651-28o-6800 FarmingtonMN.gov pomp mad wow May 31, 2022 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Farmington, Minnesota, The Annual Comprehensive Financial Report (ACFR) of the City of Farmington, Minnesota (the City) for the fiscal year ended December 31, 2021 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 ACFR 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 31,2021,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 basic financial statements, for the year ended December 31, 2021, 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 23,632. 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. It should be noted that the City's solid waste operation ended as of December 31, 2021.The City has contracted with a private solid waste hauler to provide solid waste services for the City. The City also contributes to the senior center operations, ice arena, 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 900 people. The Federal Aviation Administration and Installed Building Solutions employ 498 and 290 people, respectively. During 2021, a number of new businesses opened or expanded, and construction was completed on two new commercial buildings, one in the Farmington Business Park and one in the Industrial Park. The City continues to partner with Dakota County to offer the Open to Business initiative, which provides financial and business advice to small and future business owners. New residential construction was higher in 2021 compared to 2020. In 2021, the City issued new construction permits for 117 new single-family units and two new commercial buildings. The new single-family permits resulted in a total new residential building valuation of$27,434,350. The new commercial buildings had a valuation of $2,472,057. The number of foreclosures in the City remained relatively flat.There were nine foreclosures in the City in 2021, compared to eight in 2020. -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 early 2021,the City Council established three priorities for 2021,which include: • Business Growth • Community Engagement • Infrastructure Support In working towards these established goals, the City reviewed and revised its processes for new development to make it a better experience for developers looking at the City. In addition, as part of the 2022 budget process, the City increased funding for several areas of infrastructure, including street maintenance and trail maintenance. The City Council will continue to strive to fulfill the goals it has set with the ultimate goal being the benefit of our community. During 2021, staff continued to review and revise various capital improvement plans, with an emphasis on those including streets, trails, and equipment. This review and revision process was in line with the Council's priority of infrastructure support.The mill and overlay program that began in 2019 continued in 2021 and will continue in future years,along with street reconstruction projects that are planned for 2022 and beyond. 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.farmingtommn.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 fourth addition of the Sapphire Lake development, which consists of 30 lots. The City Council also approved the fourth and fifth additions for 20 and 13 lots, respectively, in the Fairhill Estate at North Creek development. Lastly,the City Council approved the Vita Attiva at South Creek 1st Addition and the Whispering Fields 1st Addition,which consist of 50 and 60 lots, respectively. The City continued implementation of the Downtown Redevelopment Plan, including a Downtown Facade Improvement Grant Program. Implementation has also continued 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. That improvement continued in 2021. During the year, the downtown store location relocated to a new location on the Highway 3 corridor, with the expectation of further improvements in sales and profits.Store profits have benefited the community and over the past 10 years,the stores have produced an average of$200,000 per year in profits.Notably,the liquor stores have been able to provide roughly$1.6 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 as a 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 treasury notes and 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 of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its ACFR for the year ended December 31, 2020. This is the 12th 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 ACFR. 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 ACFR continues to meet the Certificate of Achievement Program's requirements and are submitting it to the GFOA of the United States and Canada 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, &fvv Q_ba� - Lynn`CVrski,City Administrator CA-, Chris Regis, Finance Director -v- De Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Farmington Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 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 Zoning Planning and Programming Streets Liquor Operations Water CITY OF L LSanitarywer FARMINGTON Surface Water Solid Waste CITY OF FARMINGTON Elected Officials and Executive Staff December 31,2021 ELECTED OFFICIALS Term Expires Joshua Hoyt Mayor December 31, 2024 Katie Bernhjelm Councilmember December 31, 2022 Katie Porter Councilmember December 31, 2024 Steve Wilson Councilmember December 31, 2024 Vacant Councilmember N/A EXECUTIVE STAFF Lynn Gorski City Administrator, appointed March 21,2022 David McKnight City Administrator,through March 11, 2022 Samantha DiMaggio Community Development Director Katy Gehler Engineer Chris Regis Finance Director Justin Elvestad Fire Chief Jennifer Gabbard Human Resources Director Vacant Municipal Services Director Kellee Omlid Parks and Recreation Director Gary Rutherford Police Chief -viii- FINANCIAL SECTION 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 ACCOUNTANT' S 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 OPINIONS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Farmington, Minnesota (the City) as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2021, 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. BASIS FOR OPINIONS We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern within 12 months beyond the financial statements date, including any currently known information that may raise substantial doubt shortly thereafter. (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.mmki.com AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate,they would influence the judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters,the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the required supplementary information (RSI), as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and,although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. (continued) -2- Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements and schedules, as listed in the table of contents, are presented for purpose of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections, but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements,or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists,we are required to describe it in our report. OTHER REPORTING REQUIRED BY GOVERNMENTAUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 31, 2022, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that 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 31,2022 -3- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Management's Discussion and Analysis Year Ended December 31,2021 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, 2021. 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 $129,610,796 (net position) at the close of the most recent fiscal year. Of this amount, $29,714,679 (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 $9,080,332 in 2021, including an increase of $7,578,472 attributable to governmental activities, and an increase of$1,501,860 attributable to business-type activities. • The City's outstanding bonded debt decreased by $2,215,000, or 18.4 percent, during the fiscal year,due to annual bond principal payments. • The City's governmental funds reported combined ending fund balances of $20,186,036 at December 31, 2021, an increase of$806,051 from the prior year. Approximately 77.7 percent of this total amount, $15,689,870,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 $6,843,396,or 43.5 percent, of 2022 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 blended 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 five individual major governmental funds. They are as follows: • General Fund • Federal Aid Special Revenue Fund • Debt Service 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 most capital projects funds. Budgetary comparison statements or schedules have been provided for these funds to demonstrate compliance with their respective budgets. Proprietary Funds—The City maintains six enterprise funds and four internal service funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business-type activities in the governmental-wide financial statements. The City uses enterprise funds to account for its liquor operations, and its sewer, solid waste, storm water, water, and street light utility operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the enterprise funds,all of which are considered to be major funds of the City. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its employee benefits, property and liability insurance, maintaining its fleet of vehicles, and information technology needs. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements, labeled Governmental Activities — Internal Service Funds. Because all of these services predominately benefit governmental, rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Notes to Basic Financial Statements — The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information—In addition to the basic financial statements and accompanying notes,the financial section also presents required supplementary information, and the combining and individual fund statements and schedules (presented as supplementary information) referred to earlier in connection with nonmajor governmental funds and internal service funds, which are presented immediately following the basic financial statements. Furthermore, a statistical section has been included as part of the Annual Comprehensive Financial Report(ACFR)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 $129,610,796 at December 31,2021. City of Farmington's Net Position Governmental Activities Business-Type Activities Total 2021 2020 2021 2020 2021 2020 Current and other assets $ 34,158,685 $ 27,334,327 $ 22,804,678 $ 19,458,340 $ 56,963,363 $ 46,792,667 Capital assets,net 46,526,236 46,682,049 51,439,664 52,712,003 97,965,900 99,394,052 Total assets $ 80,684,921 $ 74,016,376 $ 74,244,342 $ 72,170,343 $154,929,263 $146,186,719 Deferred outflowsofresources $ 5,903,189 $ 2,743,559 $ 355,063 $ 95,316 $ 6,258,252 $ 2,838,875 Current liabilities $ 4,819,176 $ 2,635,556 $ 1,463,113 $ 770,714 $ 6,282,289 $ 3,406,270 Long-term liabilities 16,109,284 20,341,217 1,355,634 1,573,584 17,464,918 21,914,801 Total liabilities $ 20,928,460 $ 22,976,773 $ 2,818,747 $ 2,344,298 $ 23,747,207 $ 25,321,071 Deferred inflows ofresources $ 7,407,172 $ 3,109,156 $ 422,340 $ 64,903 $ 7,829,512 $ 3,174,059 Net position Net investment in capital assets $ 36,819,084 $ 35,883,311 $ 50,773,632 $ 51,976,059 $ 87,592,716 $ 87,859,370 Restricted 9,841,913 5,553,935 2,461,488 2,461,488 12,303,401 8,015,423 Unrestricted 11,591,481 9,236,760 18,123,198 15,418,911 29,714,679 24,655,671 Total net position $ 58,252,478 $ 50,674,006 $ 71,358,318 $ 69,856,458 $129,610,796 $120,530,464 The largest portion of the City's net position, $87,592,716, or 68 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$12,303,401 comprised 9 percent of net position at the close of the fiscal year ended December 31,2021. These assets are subject to external restrictions on how they may be used. The balance of unrestricted net position, $29,714,679, or approximately 23 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, 2021, with comparative totals for the year ended December 31, 2020. The City's total net position increased by$9,080,332, or 7.5 percent,during the current fiscal year. City of Farmington's Change in Net Position Governmental Activities Business-Type Activities Total 2021 2020 2021 2020 2021 2020 Revenues Charges for services $ 3,111,555 $ 1,635,983 $ 15,490,187 $ 14,116,565 $ 18,601,742 $ 15,752,548 Operating grants and contributions 1,062,789 882,939 240,598 26,710 1,303,387 909,649 Capital grants and contributions 4,106,221 50,478 476,930 - 4,583,151 50,478 Property taxes 13,692,990 13,179,138 - - 13,692,990 13,179,138 Franchise taxes 229,355 244,839 - - 229,355 244,839 Unrestricted grants 107,962 2,042,381 - 18,136 107,962 2,060,517 Investment earnings(charges) (91,107) 534,788 (64,522) 411,349 (155,629) 946,137 Gain on disposal of capital assets - 16,174 - - - 16,174 Total revenues 22,219,765 18,586,720 16,143,193 14,572,760 38,362,958 33,159,480 Expenses General government 2,560,243 2,933,062 - - 2,560,243 2,933,062 Public safety 6,549,508 6,834,253 - - 6,549,508 6,834,253 Public works 3,977,134 5,262,979 - - 3,977,134 5,262,979 Parks and recreation 2,789,326 1,430,839 - - 2,789,326 1,430,839 Economic development 406,795 574,406 - - 406,795 574,406 Interest and fiscal charges 189,858 193,167 - - 189,858 193,167 Liquor - - 5,256,311 4,958,705 5,256,311 4,958,705 Sewer - - 2,459,637 2,334,000 2,459,637 2,334,000 Solid waste - - 2,566,976 2,630,874 2,566,976 2,630,874 Storm water - - 581,402 530,438 581,402 530,438 Water - - 1,764,908 1,626,279 1,764,908 1,626,279 Streetlight - 180,528 173,604 180,528 173,604 Total expenses 16,472,864 17,228,706 12,809,762 12,253,900 29,282,626 29,482,606 Change in net position before transfers 5,746,901 1,358,014 3,333,431 2,318,860 9,080,332 3,676,874 Transfers 1,831,571 1,788,680 (1,831,571) (1,788,680) - - Change in net position 7,578,472 3,146,694 1,501,860 530,180 9,080,332 3,676,874 Netposition-beginning 50,674,006 47,527,312 69,856,458 69,326,278 120,530,464 116,853,590 Netposition-ending $ 58,252,478 $ 50,674,006 $ 71,358,318 _L69,856,458L $120,530,464 Governmental Activities- Governmental activities increased the City's net position before transfers by $5,746,901,primarily due to the increase in capital grants and contributions from new special assessments and state aid for street maintenance. Charges for services were higher than last year, due to increases in charges for public works services and parks and recreation programs with the relaxation of COVID-19 restrictions. The decrease in unrestricted grants was due to the one-time federal Coronavirus Relief Fund grant entitlement received in 2020 to provide assistance to the community and fund unanticipated COVID-19-related expenses. Investment earnings (charges) declined from the prior year due to less favorable market conditions and available interest rates. Business-Type Activities-Business-type activities increased the City's net position before transfers by $3,333,431, 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 and Unrestricted Other Contributions Grants <1% Charges for 18% <1% sen-ices _1-1°o Operating Grants and Contribution 5% Franchise Taxes 1% property Taxes 62% 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 Public Safety Public Works Parks and Economic Interest and Government Recreation Development Fiscal Charges ■Program Revenues $872,193 $1,136,717 $5,112,324 $988,091 $171,241 $- 0 Expenses — ■Expenses $2,560,343 $6,549,508 $3,977,134 $2,789,326 $406,795 $189,858 -9- BUSINESS-TYPE ACTIVITIES Revenues—The following chart illustrates the City's revenues by source for its business-type activities: Revenues by Source—Business-Type Activities Capital Grants and Operating Contributions Other Grants and 3% <1% Contributions 1% Charges for Services 96% Expenses—Below is a graph showing the City's program revenues and expenses, excluding transfers, for its business-type activities: Expenses and Program Revenues—Business-Type Activities $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Liquor Fund Sewer Solid Waste Storm Wier Water Fund Street Light Operations ■Program Revenues, $5,725,466 $2,264,006 $3,245,525 $1,315,428 $3,424,912 $232,378 ■Expenses $5,256,311 $2,459,637 $2,566,976 $581,402 $1,764,908 $180,528 -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$20,186,036, a 4 percent increase of$806,051 from 2020. The increase is mainly attributable to positive operating results in the General Fund. Committed and unassigned fund balances, which are available for spending at the government's discretion, had a combined balance of $15,689,870 at year-end. The remainder of the fund balance is either not available for new spending,or available for new spending but limited in use, because it is either nonspendable ($84,453); or restricted: 1) to pay debt service ($3,146,223), 2) for economic development ($292,836), 3) for various police programs ($48,028), 4) for park or recreational capital improvements ($715,797), or 5)to pay for future cable communication expenditures($208,829). 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 2021, the unassigned fund balance of the General Fund was $6,843,396. As a measure of the General Fund's liquidity, it may be useful to compare the fund balance to total fund expenditures. The 2021 unassigned fund balance represents 43.5 percent of total 2022 General Fund budgeted expenditures and transfers out, down slightly from 43.8 percent for the December 31, 2020 unassigned fund balance as a percentage of the 2021 General Fund budgeted expenditures and transfers out. 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 43.5 percent as of December 31, 2021. 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, 2021, the City's General Fund balance meets the minimum fund balance guideline. Total fund balances increased by $724,418 in the General Fund during the 2021 fiscal year. Higher than anticipated revenues from licenses and permits, intergovernmental sources, and charges for services; along with expenditures being held under budget in total,contributed to this increase. Federal Aid Special Revenue Fund—The decrease of$13,763 in fund balance was due to allocated investment charges related to the fair value decline of the City's investment portfolio in 2021. Debt Service Fund — During the year, the City repaid $2,155,000 in bond principal. The fund balance in the Debt Service Fund increased $468,855, because revenues from property taxes, special assessments, and investment charges exceeded the total principal and interest due. -11- Maintenance Capital Projects Fund—The decrease of$88,226 in fund balance was due to the street project costs incurred in 2021, exceeding state aid construction revenues, investment charges, charges for services, and transfers in received during the current year. Private Capital Projects Fund—There were no new projects in this fund during 2021. There was a slight decrease in the fund balance of$8,131 from special assessments received offset by investment charges. Total fund balances in the City's nonmajor governmental funds decreased $277,102 in fiscal 2021, to a year-end total of $8,450,681 Financial highlights for some of the significant changes in the City's nonmajor governmental funds are as follows: Economic Development Authority Special Revenue Fund — The decrease in fund balance of $91,377 is due to current year economic development expenditures exceeding intergovernmental revenues and investment earnings. Park Improvement Special Revenue Fund—The increase in fund balance of$475,143 is mainly a result of increased park development and dedication fees received from new developments. Sanitary Sewer Trunk Capital Projects Fund — During 2021, charges for services revenues and investment charges exceeded the public works expenditures needed,resulting in a net increase in fund balance of$101,825. Fire Capital Projects Fund— During 2021, expenditures exceeded revenues by $1,188,411 for the purchase of an aerial fire truck, which were partially offset by a transfer in of$135,000,resulting in a total decrease of$1,053,411. Storm Water Trunk Capital Projects Fund—There were no new projects in this fund in the current year. The increase of$609,295 in fund balance is mainly due to property taxes and increased trunk charges received from new developments. General Capital Equipment Capital Projects Fund—The decrease in fund balance of$325,380 is mainly a result of current year expenditures for public safety vehicle and equipment needs exceeding transfers in and other revenues used to support these expenditures. 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. Liquor operations produced income before transfers of $465,819, an increase of$29,148 from the prior year, due to a 5.2 percent increase in gross sales. The net position of the Liquor Operations Fund at the end of 2021 totaled $1,807,133, an increase of$300,409, which is net of the $75,000 in funds contributed to community projects noted above. The cash position for both stores increased from $1,406,830 at December 31,2020 to$1,530,326 as of December 31,2021. -12- Sewer Operations Fund—The decrease in net position of$494,040 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, 2021, to cover both operations and depreciation. This fund continues to maintain a significant unrestricted net position of$3,187,173. Solid Waste Fund—The Solid Waste Fund net position increased by$397,598, due to a fee increase that went into effect in January 2021 to address anticipated cost increases. Storm Water Fund—The increase in net position of$203,432 is primarily due to charges for serves being sufficient to cover operating expenses. This fund continues to maintain a significant unrestricted net position of$2,538,442. Water Fund—The increase in net position of$1,043,583 is primarily due to an increase in operating revenue related to increased consumption and water availability charges, due to a significant increase in permits issued. 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, is designed to cover depreciation. This fund continues to maintain a significant unrestricted net position of$8,691,519. 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. This fund has achieved a modest positive net position of$327,581 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$702,807 over budget.Revenue variances from final budget to actual include: • Licenses and permits were$272,889 over budget, due to increased development within the City. • Intergovernmental revenue was $295,850 over budget, mainly due to street maintenance, training reimbursements, and other miscellaneous grants in excess of budget. • Charges for services were$181,935 more than the City's conservative budget. Expenditures were $200,611 less than the budgeted amount, mainly in the public works area. The City benefited from lower salaries and benefits costs partially attributable to vacant positions. Expenditures were also under budget,due to decreases in materials used. -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, 2021 was $97,965,900 (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 1.4 percent, mainly due to 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 2021 2020 2021 2020 2021 2020 Land and easements $ 1,658,302 $ 1,749,824 $ 498,376 $ 498,376 $ 2,156,678 $ 2,248,200 Buildings 13,732,405 14,167,799 1,53 8,759 1,743,890 15,271,164 15,911,689 Improvements other than buildings 350,780 408,286 1,591,499 1,419,454 1,942,279 1,827,740 Machinery and equipment 3,746,498 2,579,622 1,110,177 1,138,309 4,856,675 3,717,931 Infrastructure 27,038,251 27,776,518 — — 27,038,251 27,776,518 Collection/distribution systems — — 46,700,853 47,911,974 46,700,853 47,911,974 Total(net of depreciation) $ 46,526,236 $ 46,682,049 $ 51,439,664 $ 52,712,003 $ 97,965,900 $ 99,394,052 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 $9,855,000. 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$518,184 for unamortized bond premiums, $1,167,530 for compensated absences, $4,754,347 for net pension liabilities, and $1,169,857 for other post-employment benefits. City of Farmington's Outstanding Debt Governmental Activities Business-Type Activities Total 2021 2020 2021 2020 2021 2020 General obligation improvement bonds $ 4,120,000 $ 5,770,000 $ — $ — $ 4,120,000 $ 5,770,000 Capital improvement bonds 4,035,000 4,540,000 — — 4,035,000 4,540,000 Equipment certificates 1,105,000 1,105,000 — — 1,105,000 1,105,000 General obligation revenue bonds — — 595,000 655,000 595,000 655,000 Total bonds outstanding $ 9,260,000 $ 11,415,000 $ 595,000 $ 655,000 $ 9,855,000 $ 12,070,000 Bond principal repayments during 2021 totaled $2,215,000. 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 $67,432,095, 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 2022 by $764,000. The final city total net tax levy for 2022 of$12,032,524 is 6.8 percent higher than the comparable 2021 levy. Of the total General Fund budgeted revenues, including transfers in for 2022, 77.0 percent are from property taxes, including $2.4 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 2022 General Fund expenditures, including transfers out, are estimated at $15,729,719, an increase of 13.7 percent compared to the 2021 budget. The 2022 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 2022. For 2022,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 were 6 subdivisions approved for new homes in 2021 and 2 more currently proposed for 2022, which will result in 1,147 new housing units. The COVID-19 pandemic caused substantial volatility in the economy and changes to the City's operations in 2020. However, in 2021, the City began to show signs of recovery from the economic effects of the pandemic and expects to continue the recovery into 2022 as the impacts of the pandemic lessen. REQUESTS FOR INFORMATION This ACFR is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this ACFR 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 cregis@FarmingtonMN.gov. -15- BASIC FINANCIAL STATEMENTS THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Statement of Net Position as of December 31,2021 Governmental Business-Type Activities Activities Total Assets Cash and investments $ 25,832,407 $ 17,212,179 $ 43,044,586 Receivables Accounts 651,147 2,148,760 2,799,907 Interest 64,905 50,682 115,587 Property taxes 1,198,705 - 1,198,705 Special assessments 3,743,088 305,018 4,048,106 Due from other governments 993,088 70,284 1,063,372 Loan 80,271 - 80,271 Inventory - 552,672 552,672 Prepaid items 49,866 3,595 53,461 Restricted assets-temporarily restricted Cash for future drinking water treatment plant - 2,461,488 2,461,488 Net pension asset-fire relief 1,545,208 - 1,545,208 Capital assets Not depreciated 1,658,302 498,376 2,156,678 Depreciated,net of accumulated depreciation 44,867,934 50,941,288 95,809,222 Total capital assets,net of accumulated depreciation 46,526,236 51,439,664 97,965,900 Total assets 80,684,921 74,244,342 154,929,263 Deferred outflows of resources Pension plan deferments-PERA 5,346,655 349,568 5,696,223 Pension plan deferments-fire relief 505,724 - 505,724 OPEB plan deferments 50,810 5,495 56,305 Total deferred outflows of resources 5,903,189 355,063 6,258,252 Total assets and deferred outflows of resources $ 86,588,110 $ 74,599,405 $ 161,187,515 Liabilities Accounts and contracts payable $ 942,202 $ 483,067 $ 1,425,269 Accrued salaries and employee benefits payable 257,620 - 257,620 Accrued interest payable 114,727 11,649 126,376 Deposits payable 2,241,962 83,076 2,325,038 Due to other governments 947 110,218 111,165 Unearned revenue 1,261,718 775,103 2,036,821 Long-term liabilities Due within one year 2,978,961 151,687 3,130,648 Due in more than one year 7,780,139 629,927 8,410,066 Net pension liability-due in more than one year 4,294,505 459,842 4,754,347 Total OPEB liability-due in more than one year 1,055,679 114,178 1,169,857 Total long-term liabilities 16,109,284 1,355,634 17,464,918 Total liabilities 20,928,460 2,818,747 23,747,207 Deferred inflows of resources Pension plan deferments-PERA 6,885,268 422,340 7,307,608 Pension plan deferments-fire relief 521,904 - 521,904 Total deferred inflows of resources 7,407,172 422,340 7,829,512 Net position Net investment in capital assets 36,819,084 50,773,632 87,592,716 Restricted for Debt service 6,106,097 - 6,106,097 Economic development 294,201 - 294,201 Police programs 48,028 - 48,028 Park improvements 666,571 - 666,571 Capital projects 258,055 - 258,055 State-funded street projects 939,933 - 939,933 Fire relief pensions 1,529,028 - 1,529,028 Water Fund-future drinking water treatment plant - 2,461,488 2,461,488 Unrestricted 11,591,481 18,123,198 29,714,679 Total net position 58,252,478 71,358,318 129,610,796 Total liabilities,deferred inflows of resources,and net position $ 86,588,110 $ 74,599,405 $ 161,187,515 See notes to basic financial statements -16- CITY OF FARMINGTON Statement of Activities Year Ended December 31,2021 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary government Governmental activities General government $ 2,560,243 $ 855,812 $ 16,125 $ 255 Public safety 6,549,508 560,518 546,099 30,100 Public works 3,977,134 708,197 328,261 4,075,866 Parks and recreation 2,789,326 987,028 1,063 — Economic development 406,795 — 171,241 — Interest and fiscal charges 189,858 — — — Total governmental activities 16,472,864 3,111,555 1,062,789 4,106,221 Business-type activities Liquor operations 5,256,311 5,724,828 638 — Sewer operations 2,459,637 2,264,006 — — Solid waste 2,566,976 2,858,958 235,290 151,277 Storm water 581,402 1,158,564 — 156,864 Water 1,764,908 3,251,453 4,670 168,789 Street light 180,528 232,378 — — Total business-type activities 12,809, 2 15,490,187 240,598 476,930 76 Total government $ 29,282,626 $ 18,601,742 $ 1,303,387 $ 4,583,151 General revenues Property taxes Franchise taxes Grants and contributions not restricted to specific programs Investment earnings(charges) 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 Governmental Business-Type Activities Activities Total $ (1,688,051) $ — $ (1,688,051) (5,412,791) — (5,412,791) 1,135,190 — 1,135,190 (1,801,235) — (1,801,235) (235,554) — (235,554) (189,858) — (189,858) (8,192,299) — (8,192,299) — 469,155 469,155 — (195,631) (195,631) — 678,549 678,549 — 734,026 734,026 — 1,660,004 1,660,004 — 51,850 51,850 — 3,397,953 3,397,953 (8,192,299) 3,397,953 (4,794,346) 13,692,990 — 13,692,990 229,355 — 229,355 107,962 — 107,962 (91,107) (64,522) (155,629) 1,831,571 (1,831,571) — 15,770,771 (1,896,093) 13,874,678 7,578,472 1,501,860 9,080,332 50,674,006 69,856,458 120,530,464 $ 58,252,478 $ 71,358,318 $ 129,610,796 -18- CITY OF FARMINGTON Balance Sheet Governmental Funds as of December 31,2021 Special Revenue— Federal Debt Service General Aid Fund Assets Cash and investments $ 5,619,633 $ 1,244,494 $ 3,445,243 Receivables Accounts 325,217 — — Interest 13,172 3,461 8,878 Property taxes Unremitted 1,095,906 — — Delinquent 102,799 — — Special assessments Delinquent — — 1,350 Noncurrent 1,430 — 3,073,251 Due from other funds — — — Due from other governments 8,758 — — Loan 80,271 — — Prepaid items 2,817 — — Total assets $ 7,250,003 $ 1,247,955 $ 6,528,722 Liabilities Accounts and contracts payable $ 189,138 $ — $ 7,898 Deposits payable 29,502 — — Due to other governments 650 — — Due to other funds — — 300,000 Unearned revenue — 1,261,718 — Total liabilities 219,290 1,261,718 307,898 Deferred inflows of resources Unavailable revenue—property taxes 102,799 — — Unavailable revenue—special assessments 1,430 — 3,074,601 Unavailable revenue—long-term receivable — — — Total deferred inflows of resources 104,229 — 3,074,601 Fund balances(deficits) Nonspendable 83,088 — — Restricted — — 3,146,223 Committed — — — Unassigned 6,843,396 (13,763) — Total fund balances(deficits) 6,926,484 (13,763) 3,146,223 Total liabilities,deferred inflows of resources,and fund balances $ 7,250,003 $ 1,247,955 $ 6,528,722 See notes to basic financial statements -19- Capital Capital Projects- Projects- Maintenance Private Nonmajor Total $ 1,857,759 $ 2,292,530 $ 8,154,363 $ 22,614,022 122,387 6,000 181,054 634,658 4,787 5,909 20,660 56,867 - - - 1,095,906 102,799 - - 1,350 486 666,571 3,741,738 - - 300,000 300,000 939,933 - 44,397 993,088 - - - 80,271 - - 1,365 4,182 $ 2,924,866 $ 2,304,925 $ 9,368,410 $ 29,624,881 $ 412,609 $ - $ 241,716 $ 851,361 - 2,200,352 9,145 2,238,999 - 297 947 - 300,000 - - - 1,261,718 412,609 2,200,352 251,158 4,653,025 - - - 102,799 - 486 666,571 3,743,088 939,933 939,933 939,933 486 666,571 4,785,820 - - 1,365 84,453 - - 1,265,490 4,411,713 1,572,324 104,087 7,199,895 8,876,306 - - (16,069) 6,813,564 1,572,324 104,087 8,450,681 20,186,036 $ 2,924,866 $ 2,304,925 $ 9,368,410 $ 29,624,881 -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 31,2021 Total fund balances—governmental funds $ 20,186,036 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 92,841,147 Less accumulated depreciation (46,323,502) Net pension assets are only recorded in the government-wide financial statements as they are not current financial resources to governmental funds. 1,545,208 Long-term liabilities are not payable with current financial resources and,therefore, are not reported in governmental funds. Bonds (9,260,000) Unamortized bond premiums (447,152) Compensated absences (1,008,059) Net pension liability (4,294,505) Total OPEB liability (1,055,679) 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. (114,727) 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. 2,901,874 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 102,799 Delinquent and deferred special assessments 3,743,088 Long-term receivable 939,933 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 5,852,379 Deferred outflows of resources—OPEB plan deferments 50,810 Deferred inflows of resources—pension plan deferments (7,407,172) Total net position—governmental activities $ 58,252,478 See notes to basic financial statements -21- CITY OF FARMINGTON Statement of Revenues,Expenditures,and Changes in Fund Balances Governmental Funds Year Ended December 31,2021 Special Revenue— Federal Debt Service General Aid Fund Revenues Property taxes $ 10,555,567 $ — $ 2,737,093 Franchise taxes 145,000 — — Special assessments 255 — 269,415 Licenses and permits 789,965 — — Intergovernmental 963,762 — — Charges for services 613,132 — — Fines and forfeits 52,340 — — Investment earnings(charges) (23,493) (13,763) (29,165) Other 59,054 — — Total revenues 13,155,582 (13,763) 2,977,343 Expenditures Current General government 2,605,354 — — Public safety 6,346,605 — — Public works 2,470,005 — — Parks and recreation 1,297,574 — — Economic development — Capital outlay General government 14,832 — — Public safety 65,299 — — Public works 4,363 — — Parks and recreation 5,470 — — Economic development — — — Debt service Principal — — 2,155,000 Interest and fiscal charges 353,488 Total expenditures 12,809,502 — 2,508,488 Excess(deficiency)of revenues over expenditures 346,080 (13,763) 468,855 Other financing sources(uses) Sale of capital assets 1,000 — — Transfers in 1,379,689 — — Transfers out (1,002,351) — — Total other financing sources(uses) 378,338 — — Net change in fund balances 724,418 (13,763) 468,855 Fund balances(deficits) Beginning of year 6,202,066 — 2,677,368 End of year $ 6,926,484 $ (13,763) $ 3,146,223 See notes to basic financial statements -22- Capital Capital Projects- Projects- Maintenance Private Nonmajor Total $ - $ - $ 408,127 $ 13,700,787 84,355 229,355 - 861 9,048 279,579 - - 789,965 122,387 - 171,028 1,257,177 111,348 - 973,228 1,697,708 - - - 52,340 (6,005) (8,733) (664) (81,823) - - 541,226 600,280 227,730 (7,872) 2,186,348 18,525,368 - 259 87,815 2,693,428 92,254 6,438,859 152,091 - 17,839 2,639,935 160,165 - 427,107 1,884,846 - - 385,434 385,434 - 3,309 18,141 - - 1,864,393 1,929,692 38,093 - 125,438 167,894 791,063 - 105,808 902,341 - - 27,744 27,744 - 2,155,000 - - 15,250 368,738 1,141,412 259 3,152,391 19,612,052 (913,682) (8,131) (966,043) (1,086,684) 255 - 83,407 84,662 825,201 - 649,901 2,854,791 - - (44,367) (1,046,718) 825,456 - 688,941 1,892,735 (88,226) (8,131) (277,102) 806,051 1,660,550 112,218 8,727,783 19,379,985 $ 1,572,324 $ 104,087 $ 8,450,681 $ 20,186,036 -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 31,2021 Total net change in fund balances—governmental funds $ 806,051 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 1,651,823 Capital contributions 577,184 Depreciation expense (2,282,879) 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 (99,546) Net pension assets are included in net position,but are excluded from fund balances because they do not represent financial resources. 401,127 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. Principal payments for debt 2,155,000 Debt premiums 131,677 Compensated absences 42,851 Net pension liability 2,165,724 Total OPEB liability (254,264) 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. 47,203 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. 284,371 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 (7,797) Delinquent and deferred special assessments 2,158,400 Long-term receivable 939,933 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 3,231,517 Deferred outflows of resources—OPEB plan deferments (71,887) Deferred inflows of resources—pension plan deferments (4,678,717) Deferred inflows of resources—OPEB plan deferments 380,701 Change in net position—governmental activities $ 7,578,472 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 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 10,534,120 $ 10,555,567 $ 21,447 Franchise taxes 145,000 145,000 - Special assessments - 255 255 Licenses and permits 517,076 789,965 272,889 Intergovernmental 667,912 963,762 295,850 Charges for services 431,197 613,132 181,935 Fines and forfeits 49,000 52,340 3,340 Investment earnings(charges) 29,100 (23,493) (52,593) Other 79,370 59,054 (20,316) Total revenues 12,452,775 13,155,582 702,807 Expenditures Current General government 2,647,041 2,605,354 (41,687) Public safety 6,273,481 6,346,605 73,124 Public works 2,761,850 2,470,005 (291,845) Parks and recreation 1,307,541 1,297,574 (9,967) Capital outlay General government - 14,832 14,832 Public safety 8,000 65,299 57,299 Public works 2,400 4,363 1,963 Parks and recreation 9,800 5,470 (4,330) Total expenditures 13,010,113 12,809,502 (200,611) Excess(deficiency)of revenues over expenditures (557,338) 346,080 903,418 Other financing sources(uses) Sale of capital assets - 1,000 1,000 Transfers in 1,379,689 1,379,689 - Transfers out (822,351) (1,002,351) (180,000) Total other financing sources(uses) 557,338 378,338 (179,000) Net change in fund balances $ - 724,418 $ 724,418 Fund balances Beginning of year 6,202,066 End of year $ 6,926,484 See notes to basic financial statements -25- CITY OF FARMINGTON Statement of Net Position Proprietary Funds as of December 31,2021 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Assets Current assets Cash and investments $ 1,530,326 $ 2,368,023 $ 2,390,772 $ 2,271,474 Cash restricted for drinking water treatment plant - - - - Receivables Accounts 49,354 536,415 690,575 275,766 Interest 3,934 6,101 6,160 5,872 Delinquent special assessments - 13,743 - - Deferred special assessments - 291,275 - - Due from other governments - - 69,441 - Inventory 552,672 - - - Prepaid items 3,595 - - - Total current assets 2,139,881 3,215,557 3,156,948 2,553,112 Noncurrent assets Capital assets Land - 85,000 - 84,992 Buildings - - - - Improvements other than buildings 347,172 - - - Machinery and equipment 297,625 999,791 1,450,548 433,883 Distribution system - - - - Collection system - 29,103,326 - 20,992,558 Less accumulated depreciation (324,861) (14,049,886) (1,111,646) (8,717,149) Total capital assets(net of accumulated depreciation) 319,936 16,138,231 338,902 12,794,284 Total assets 2,459,817 19,353,788 3,495,850 15,347,396 Deferred outflows o£resources Pension plan deferments-PERA 196,632 - 152,936 - OPEB plan deferments 3,018 - 2,477 - Total deferred outflows of resources 199,650 - 155,413 - Total assets and deferred outflows of resources $ 2,659,467 $ 19,353,788 $ 3,651,263 $ 15,347,396 Liabilities Current liabilities Accounts and contracts payable $ 191,546 $ 6,019 $ 108,364 $ 14,670 Accrued salaries and employee benefits payable - - - - Deposits payable - - 700 - Due to other governments 54,907 22,365 30,847 - Accrued interest payable - - - Unearned revenue - - 775,103 - Compensated absences payable-current 35,213 - 51,474 - Bonds payable-current - - - - Total current liabilities 281,666 28,384 966,488 14,670 Noncurrent liabilities Compensated absences payable 11,737 - 17,158 - Bonds payable(net of unamortized premiums) - - - - Net pension liability-PERA 258,661 - 201,181 - Total OPEB liability 62,704 - 51,474 - Total noncurrent liabilities 333,102 - 269,813 - Total liabilities 614,768 28,384 1,236,301 14,670 Deferred inflows of resources Pension plan deferments-PERA 237,566 - 184,774 - Net position Net investment in capital assets 319,936 16,138,231 338,902 12,794,284 Restricted for drinking water treatment plant - - - - Unrestricted 1,487,197 3,187,173 1,891,286 2,538,442 Total net position 1,807,133 19,325,404 2,230,188 15,332,726 Total liabilities,deferred inflows of resources,and net position $ 2,659,467 $ 19,353,788 $ 3,651,263 $ 15,347,396 See notes to basic financial statements -26- Govenunental Street Activities- Water Light Total hitemal Service $ 8,319,800 $ 331,784 $ 17,212,179 $ 3,218,385 2,461,488 - 2,461,488 - 570,979 25,671 2,148,760 16,489 27,760 855 50,682 8,038 - - 13,743 - - - 291,275 - 843 - 70,284 - - - 552,672 - 3,595 45,684 11,380,870 358,310 22,804,678 3,288,596 328,384 - 498,376 - 5,290,137 - 5,290,137 - 1,534,818 - 1,881,990 - 523,357 - 3,705,204 99,124 33,365,710 - 33,365,710 - - - 50,095,884 - (19,194,095) - (43,397,637) (90,533) 21,848,311 - 51,439,664 8,591 33,229,181 358,310 74,244,342 3,297,187 - - 349,568 - 5,495 - - - 355,063 $ 33,229,181 $ 358,310 $ 74,599,405 $ 3,297,187 $ 131,739 $ 30,729 $ 483,067 $ 90,841 - - - 257,620 82,376 - 83,076 2,963 2,099 - 110,218 - 11,649 - 11,649 - - - 775,103 - - - 86,687 43,889 65,000 - 65,000 - 292,863 30,729 1,614,800 395,313 - - 28,895 - 601,032 - 601,032 - - - 459,842 - - - 114,178 - 601,032 - 1,203,947 893,895 30,729 2,818,747 395,313 - - 422,340 - 21,182,279 - 50,773,632 8,591 2,461,488 - 2,461,488 - 8,691,519 327,581 18,123,198 2,893,283 32,335,286 327,581 71,358,318 2,901,874 $ 33,229,181 $ 358,310 $ 74,599,405 $ 3,297,187 -27- CITY OF FARMINGTON Statement of Revenues,Expenses,and Changes in Fund Net Position Proprietary Funds Year Ended December 31,2021 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Operating revenue Sales $ 5,621,602 $ - $ - $ - Charges for services - 2,260,523 2,854,452 1,158,564 Insurance reimbursement - - - - Total operating revenue 5,621,602 2,260,523 2,854,452 1,158,564 Cost of goods sold 4,192,176 - - - Gross profit 1,429,426 2,260,523 2,854,452 1,158,564 Operating expenses Personal services 518,127 2,070 466,529 359 Professional services 451,882 1,788,758 1,930,267 110,776 Materials and supplies 72,767 26,088 92,580 19,071 Insurance - - - - Depreciation 21,359 657,780 77,600 451,196 Total operating expenses 1,064,135 2,474,696 2,566,976 581,402 Operating income(loss) 365,291 (214,173) 287,476 577,162 Nonoperating revenues(expenses) Intergovernmental 638 - 235,290 - Investment earnings(charges) (3,336) (5,267) (15,611) (5,643) Gain on sale of capital assets - 16,970 - - Other 103,226 3,483 4,506 - Interest and fiscal charges - (1,911) - - Total nonoperating revenues(expenses) 100,528 13,275 224,185 (5,643) Income(loss)before transfers and capital contributions 465,819 (200,898) 511,661 571,519 Transfers and capital contributions Capital contributions-from others - 151,277 - 156,864 Transfers in - - 35,196 - Transfers out (165,410) (444,419) (149,259) (524,951) Total transfers and capital contributions (165,410) (293,142) (114,063) (368,087) Change in net position 300,409 (494,040) 397,598 203,432 Net position Beginning of year 1,506,724 19,819,444 1,832,590 15,129,294 End of year $ 1,807,133 $ 19,325,404 $ 2,230,188 $ 15,332,726 See notes to basic financial statements -28- Governmental Street Activities- Water Light Total Internal Service $ - $ - $ 5,621,602 $ - 2,908,352 230,479 9,412,370 3,739,865 - - - 331,118 2,908,352 230,479 15,033,972 4,070,983 - - 4,192,176 - 2,908,352 230,479 10,841,796 4,070,983 5,473 - 992,558 3,063,665 534,394 180,055 4,996,132 360,602 215,630 473 426,609 62,464 - - - 307,947 990,949 - 2,198,884 7,895 1,746,446 180,528 8,614,183 3,802,573 1,161,906 49,951 2,227,613 268,410 4,670 - 240,598 1,720 (33,693) (972) (64,522) (9,284) - - 16,970 27 343,101 1,899 456,215 - (18,462) - (20,373) - 295,616 927 628,888 (7,537) 1,457,522 50,878 2,856,501 260,873 168,789 - 476,930 - - - 35,196 23,498 (582,728) - (1,866,767) - (413,939) - (1,354,641) 23,498 1,043,583 50,878 1,501,860 284,371 31,291,703 276,703 69,856,458 2,617,503 $ 32,335,286 $ 327,581 $ 71,358,318 $ 2,901,874 -29- CITY OF FARMINGTON Statement of Cash Flows Proprietary Funds Year Ended December 31,2021 Business-Type Activities-Enterprise Funds Liquor Sewer Solid Storm Operations Operations Waste Water Cash flows from operating activities Cash received from customers $ 5,732,215 $ 2,192,552 $ 2,735,881 $ 1,136,916 Cash receipts from other funds and reimbursements - - - - Cash payments to suppliers (4,561,070) (1,858,448) (2,077,675) (126,336) Cash payments to employees for services (546,756) (2,070) (488,248) (359) Cash payments for interfund services used - - - Net cash flows from operating activities 624,389 332,034 169,958 1,010,221 Cash flows from noncapital financing activities Intergovernmental revenue 638 - 235,290 - Transfers in - - 35,196 Transfers out (165,410) (333,103) (149,259) (402,576) Net cash flows from noncapital financing activities (164,772) (333,103) 121,227 (402,576) Cash flows from capital and related financing activities Acquisition and construction of capital assets (332,376) - - (117,239) Principal payment on bonds - - - Proceeds from the disposal of capital assets - 16,970 - - Prepayment received on future disposal of capital assets - - 775,103 - Interest and fiscal charges paid - (1,911) - Transfers out - (111,316) - (122,375) Net cash flows from capital and related financing activities (332,376) (96,257) 775,103 (239,614) Cash flows from investing activities Interest received and changes in fair value on investments (3,745) (5,947) (19,004) (7,324) Net increase in cash and cash equivalents 123,496 (103,273) 1,047,284 360,707 Cash and cash equivalents Beginning ofyear 1,406,830 2,471,296 1,343,488 1,910,767 End of year $ 1,530,326 $ 2,368,023 $ 2,390,772 $ 2,271,474 Reconciliation of operating income(loss)to net cash flows from operating activities Operating income(loss) $ 365,291 $ (214,173) $ 287,476 $ 577,162 Adjustments to reconcile operating income(loss)to net cash flows from operating activities Depreciation 21,359 657,780 77,600 451,196 Other 103,226 3,483 4,506 - Change in assets,deferred outflows ofresources,liabilities, and deferred inflows of resources Accounts receivable 7,387 (96,984) (69,760) (21,648) Special assessments - 25,530 - - Due from other governments - - (53,317) - Inventory 51,272 - - - Prepaid items 245 - - - Deferred outflows ofresources-pension plan deferments (150,303) - (116,903) - Deferred outflows of resources-OPEB plan deferments 3,954 - 3,505 - Accounts and contracts payable 103,939 (33,662) (57,157) 3,511 Accrued salaries and employee benefits - - - - Deposits payable - - 700 - Due to other governments 299 (9,940) 1,629 - Compensated absences (8,323) - (3,672) - Net pension liability (93,153) - (72,452) - Total OPEB liability 17,162 - 12,400 - Deferred inflows of resources-pension plan deferments 223,668 - 173,965 - Deferred inflows of resources-OPEB plan deferments (21,634) - (18,562) - Net cash flows from operating activities $ 624,389 $ 332,034 $ 169,958 $ 1,010,221 Schedule of noncash capital and related financing activities Capital assets contributed from others $ - $ 151,277 $ - $ 156,864 Amortization of bond premium $ - $ - $ - $ - See notes to basic financial statements -30- Governmental Street Activities- Water Light Total Internal Service $ 3,063,832 $ 237,634 $ 15,099,030 $ - - - - 4,054,494 (843,729) (177,670) (9,644,928) - (5,473) - (1,042,906) (3,014,616) - - (795,418) 2,214,630 59,964 4,411,196 244,460 4,670 - 240,598 1,720 - - 35,196 23,498 (444,037) - (1,494,385) - (439,367) - (1,218,591) 25,218 (449,615) (5,500) (60,000) - (60,000) - 16,970 27 775,103 - (29,550) - (31,461) - (138,691) - (372,382) - (228,241) - (121,385) (5,473) (41,149) (1,245) (78,414) (10,844) 1,505,873 58,719 2,992,806 253,361 9,275,415 273,065 16,680,861 2,965,024 $ 10,781,288 $ 331,784 $ 19,673,667 $ 3,218,385 $ 1,161,906 $ 49,951 $ 2,227,613 $ 268,410 990,949 - 2,198,884 7,895 343,101 1,899 456,215 - (190,214) 5,256 (365,963) (16,489) - - 25,530 - 2,593 - (50,724) - - - 51,272 - - - 245 (39,422) - - (267,206) - - - 7,459 - (69,441) 2,858 (49,952) (70,000) - - - 85,735 (26,363) - (25,663) (724) 2,099 - (5,913) - - - (11,995) 9,055 - - (165,605) - - - 29,562 - - - 397,633 - - - (40,196) - $ 2,214,630 $ 59,964 $ 4,411,196 $ 244,460 $ 168,789 $ - $ 476,930 $ - $ 9,912 $ - $ 9,912 $ - -31- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Notes to Basic Financial Statements December 31,2021 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: Blended Component Unit—The Farmington Economic Development Authority (EDA) is the City's official decision-making body regarding economic development. The EDA 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 the City's mayor and councilmembers, and the City has the ability to impose its will on the EDA. The EDA does not issue separate financial statements. Therefore, the EDA has been reported as a blended component unit of the City, with its funds reported as funds of the City. 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. Federal Aid Special Revenue Fund—This fund accounts for the operations and activities related to the federal funding awarded during the COVID-19 pandemic. 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. 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. 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. -34- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) 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 2021 budget was adopted for the Federal Aid, Dakota Broadband, Police Public Outreach, or K-9 Special Revenue Funds, or for the Spruce Street Reconstruction Capital Projects Fund. 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, 2021, 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 Maintenance Capital Projects $ 638,225 $ 1,141,412 Private Capital Projects $ — $ 259 Nonmajor special revenue funds Economic Development Authority $ 205,190 $ 243,573 Police Donations and Forfeitures $ 2,000 $ 8,876 Park Improvement $ 15,000 $ 18,601 Arena $ 373,917 $ 405,835 Nonmajor capital projects funds Sanitary Sewer Trunk $ — $ 125,438 Fire $ — $ 1,217,937 Storm Water Trunk $ — $ 17,020 Recreation $ 24,500 $ 108,479 General Capital Equipment $ 511,148 $ 678,069 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, net collective difference 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 three sources: property taxes, special assessments, and long-term receivables. These amounts are deferred and recognized as inflows of resources in the period that the amounts become available. O. Long-Term Obligations In the government-wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using the straight-line method. -38- NOTE 1—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. P. Compensated Absences It is the City's policy to permit employees to accumulate earned, but unused leave benefits as either paid time off(PTO), or vacation and sick leave. Under the City's personnel policies and collective bargaining contracts, city employees are granted leave benefits in varying amounts based on length of service. No liability is recorded for nonvesting accumulating rights to receive sick leave benefits. As benefits accrue to employees,the accumulated PTO,vacation, and vested sick leave is reported as expense and liability in the government-wide and proprietary fund financial statements. Accrued PTO, vacation, and any portion of sick leave payable to employees upon termination are reported as expenditures in the governmental fund that will pay them when they become due and payable. Q. State-Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA's fiduciary net position have been determined on the same basis as they are reported by the PERA. 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 Classifications and Flow Assumptions In the government-wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position is displayed in three components: • Net Investment in Capital Assets— Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. • 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 I—SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) When both restricted and unrestricted resources are available for use, the City first uses restricted resources,then unrestricted resources as needed. When committed, assigned, or unassigned resources are available for use, the City uses resources in the following order: 1)committed,2)assigned,and 3)unassigned. U. Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the amounts reported in the financial statements during the reporting period. Actual results could differ from those estimates. V. Change in Reporting Entity In 2021, a change was made to reconfigure the EDA's governing board to be comprised entirely of the City's mayor and councilmembers. Due to this change in governance, under GASB guidelines the EDA became a blended component unit of the City, where it had been reported as a discretely presented component unit in prior years. The EDA's activity and balances for the current year are included in these financial statements as a blended component unit, reported within the(nonmajor)Economic Development Authority Special Revenue Fund and the (nonmajor) Trident Housing Tax Increment Special Revenue Fund. The City's governmental fund balances and governmental activities net position as of January 1, 2021, both increased by$329,920 as a result of this change. NOTE 2—DEPOSITS AND INVESTMENTS A. Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits $ 8,678,345 Investments 36,823,697 Petty cash 4,032 Total $ 45,506,074 Cash and investments are included on the basic financial statements as follows: Statement of Net Position Cash and investments $ 43,044,586 Restricted assets—temporarily restricted Cash for future drinking water treatment plant 2,461,488 Total $ 45,506,074 -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 $8,678,345, while the balance on the bank records was $8,694,412. At December 31, 2021, 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.treasury securities Not rated Level 2 $ 1,994,640 $ 1,991,330 $ — $ 3,985,970 U.S.agency securities AA S&P Level 2 — 584,847 289,524 874,371 Municipal bonds AAA S&P Level 2 — 1,256,603 323,460 1,580,063 Municipal bonds Aa Moody's Level 2 100,654 2,910,216 1,063,692 4,074,562 Municipal bonds AA S&P Level 2 2,971,486 7,028,927 1,279,428 11,279,841 Municipal bonds A Moody's Level 2 — 398,816 — 398,816 Municipal bonds Baa Moody's Level 2 — 374,798 — 374,798 Negotiable certificates of deposit Not rated Level 2 3,864,949 8,558,009 — 12,422,958 $ 8,931,729 $23,103,546 _L 2,956,104 34,991,379 Investment pools/mutual funds AAA S&P Level 1 1,832,318 Total investments _L36,823,697 -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) $ 300,000 (1) Advance of$300,000 to finance G.O.2010C Bonds. Principal due 12/31/2022.Interest at 2.3 percent. 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 $ — $ 452,819 $ 530,534 $ — $ 18,998 $ 1,002,351 Nonmajor — — 44,367 — — 44,367 Proprietary funds Enterprise Liquor Operations 88,910 — 75,000 — 1,500 165,410 Sewer Operations 323,791 111,316 — 6,812 2,500 444,419 Solid Waste 148,759 — — — 500 149,259 Storm Water 395,764 122,375 — 6,812 — 524,951 Water 422,465 138,691 — 21,572 — 582,728 Total $ 1,379,689 $ 825,201 $ 649,901 $ 35,196 $ 23,498 $ 2,913,485 -44- NOTE 4—CAPITAL ASSETS Capital asset activity for the year ended December 31,2021 was as follows: A. Changes in Capital Assets Used in Governmental Activities Beginning Ending Balance Additions Deletions Balance Capital assets,not depreciated Land $ 1,441,957 $ — $ (91,522) $ 1,350,435 Easements 307,867 — — 307,867 Total capital assets,not depreciated 1,749,824 — (91,522) 1,658,302 Capital assets,depreciated Buildings 21,339,531 — — 21,339,531 Improvements other than buildings 1,846,182 2,180 — 1,848,362 Machinery and equipment 7,498,178 1,655,143 (400,270) 8,753,051 Infrastructure 58,763,841 577,184 — 59,341,025 Total capital assets,depreciated 89,447,732 2,234,507 (400,270) 91,281,969 Less accumulated depreciation on Buildings 7,171,732 435,394 — 7,607,126 Improvements other than buildings 1,437,896 59,686 — 1,497,582 Machinery and equipment 4,918,556 480,243 (392,246) 5,006,553 Infrastructure 30,987,323 1,315,451 — 32,302,774 Total accumulated depreciation 44,515,507 2,290,774 (392,246) 46,414,035 Total capital assets,depreciated 44,932,225 (56,267) (8,024) 44,867,934 Net capital assets $ 46,682,049 $ (56,267) $ (99,546) $ 46,526,236 B. Changes in Capital Assets Used in Business-Type Activities Beginning Ending Balance Additions Deletions Balance Capital assets,not depreciated Land $ 498,376 $ — $ — $ 498,376 Capital assets,depreciated Buildings 5,290,137 — — 5,290,137 Improvements other than buildings 1,655,830 262,226 (36,066) 1,881,990 Machinery and equipment 3,597,043 187,389 (79,228) 3,705,204 Collection/distribution systems 82,984,664 476,930 — 83,461,594 Total capital assets,depreciated 93,527,674 926,545 (115,294) 94,338,925 Less accumulated depreciation on Buildings 3,546,247 205,131 — 3,751,378 Improvements other than buildings 236,376 90,181 (36,066) 290,491 Machinery and equipment 2,458,734 215,521 (79,228) 2,595,027 Collection/distribution systems 35,072,690 1,688,051 — 36,760,741 Total accumulated depreciation 41,314,047 2,198,884 (115,294) 43,397,637 Total capital assets,depreciated 52,213,627 (1,272,339) — 50,941,288 Net capital assets $ 52,712,003 $ (1,272,339) $ — $ 51,439,664 -45- NOTE 4—CAPITAL ASSETS (CONTINUED) C. Depreciation Expense by Function Depreciation expense was charged to the following functions: Governmental activities General government $ 185,432 Public safety 376,892 Public works 1,517,474 Parks and recreation 210,976 Total depreciation expense—governmental activities $ 2,290,774 Business-type activities Liquor operations $ 21,359 Sewer operations 657,780 Solid waste 77,600 Storm water 451,196 Water 990,949 Total depreciation expense—business-type activities $ 2,198,884 NOTE 5—OPERATING LEASES PAYABLE The City has two retail liquor stores known colloquially as Downtown and Pilot Knob. 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 moved into the new space in July 2021, when the old City Center lease expired. In 2021, the City paid $88,093 in rent for the Downtown store and$32,586 for common area operating expenses. The Pilot Knob location occupies a 4,758 square foot store in the Farmington Gateway Center. In September 2019,the City exercised its option to renew an existing lease for an additional three-year term at the original rate of a monthly cost of$6,344 plus a proportionate share of common area operating expenses. The City paid $76,128 in rent for the Pilot Knob store and $45,623 for common area operating expenses during 2021. The following is a schedule by year of future minimum payments required under these leases: Year Ending December 31, Amount 2022 $ 130,168 2023 62,195 2024 64,061 2025 65,983 2026 38,868 $ 361,275 -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 $ 520,000 G.O.Street Reconstruction Bonds 2015A $ 3,050,000 2.00-3.00% 10/15/2015 02/01/2030 2,020,000 G.O.Improvement Refunding Bonds 2016A $ 3,450,000 2.00% 12/01/2016 02/01/2023 980,000 G.O.Street Reconstruction Bonds 2019A $ 925,000 5.00% 05/15/2019 02/01/2024 600,000 Total general obligation improvement bonds 4,120,000 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 4,035,000 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 9,260,000 Unamortized premiums 447,152 Compensated absences 1,051,948 Total governmental activities $ 10,759,100 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 $ 595,000 Unamortized premiums 71,032 Compensated absences 115,582 Total business-type activities $ 781,614 B. Changes in Long-Term Debt Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities G.O.improvement bonds $ 5,770,000 $ - $ 1,650,000 $ 4,120,000 $ 1,465,000 G.O.capital improvement bonds 4,540,000 - 505,000 4,035,000 525,000 G.O.equipment certificates 1,105,000 - - 1,105,000 200,000 Unamortized bond premiums 578,829 - 131,677 447,152 - Compensated absences 1,085,744 690,985 724,781 1,051,948 788,961 Total governmental activities 13,079,573 690,985 3,011,458 10,759,100 2,978,961 Business-type activities G.O.revenue bonds 655,000 - 60,000 595,000 65,000 Unamortized bond premiums 80,944 - 9,912 71,032 - Compensated absences 127,577 54,736 66,731 115,582 86,687 Total business-type activities 863,521 54,736 136,643 781,614 151,687 Total government-wide $ 13,943,094 $ 745,721 $ 3,148,101 $ 11,540,714 $ 3,130,648 -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 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 250,000 24,600 595,000 33,625 245,000 6,125 1,090,000 64,350 2027-2030 850,000 38,313 1,235,000 24,850 - - 2,085,000 63,163 Total $4,120,000 $ 289,063 $4,035,000 $ 363,450 $ 1,105,000 $ 143,625 _i9,260,000 $ 796,138 Business-Type Activities Year Ending G.O.Revenue December 31, Principal Interest 2022 $ 65,000 $ 26,425 2023 65,000 23,175 2024 70,000 19,800 2025 70,000 16,300 2026 75,000 12,675 2027-2029 250,000 15,600 Total $ 595,000 $ 113,975 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, 2021, the City had not utilized $60,777,095 of its legal debt limit. • 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 Tenn 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 $ 708,975 $ 89,550 $ 3,251,453 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 $ — $ — $ — $ 1,545,208 $ 1,545,208 Deferred outflows ofresources $ 2,184,801 $ 3,511,422 $ 5,696,223 $ 505,724 $ 6,201,947 Net pension liability $ 2,874,012 $ 1,880,335 $ 4,754,347 $ — $ 4,754,347 Deferred inflows of resources $ 2,639,622 $ 4,667,986 $ 7,307,608 $ 521,904 $ 7,829,512 Pension expense $ 159,317 $ (119,381) $ 39,936 $ 61,446 $ 101,382 -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 PERA of Minnesota. The PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA's defined benefit pension plans are tax qualified plans under Section 401(a)of the Internal Revenue Code. 1. General Employees Retirement Fund(GERF) All full-time and certain part-time employees of the City are covered by the GERF. The GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund(PEPFF) The 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 for each of the first 10 years of service, and 1.7 percent for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7 percent for all years of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90, and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at age 66. -50- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) Benefit increases are provided to benefit recipients each January. The post-retirement increase is equal to 50.0 percent of the cost of living adjustment (COLA) announced by the Social Security Administration, with a minimum increase of at least 1.0 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase, will receive the full increase. Recipients receiving the annuity or benefit for at least one month, but less than a full year as of the June 30 before the effective date of the increase, will receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase will be delayed until normal retirement age(age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014, vest on a prorated basis from 50.0 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. The post-retirement increase is 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. 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 2021, 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, 2021, were $371,254 The City's contributions were equal to the required contributions as set by state statutes. 2. PEPFF Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2021, and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City's contributions to the PEPFF for the year ended December 31,2021, were $526,699. The City's contributions were equal to the required contributions as set by state statutes. -51- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) D. Pension Costs 1. GERF Pension Costs At December 31, 2021, the City reported a liability of$2,874,012 for its proportionate share of the GERF's net pension liability. The City's net pension liability reflected a reduction, due to the state of Minnesota's contribution of $16.0 million. The state of Minnesota is considered a nonemployer contributing entity and the state's contribution meets the definition of a special funding situation. The state of Minnesota's proportionate share of the net pension liability associated with the City totaled $87,697. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 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, 2020 through June 30, 2021, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.0673 percent at the end of the measurement period and 0.0652 percent for the beginning of the period. The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net pension liability that was associated with the City were as follows: City's proportionate share of the net pension liability $ 2,874,012 State's proportionate share of the net pension liability associated with the City $ 87,697 For the year ended December 31, 2021, the City recognized pension expense of$152,231 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $7,086 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, 2021, 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 $ 16,083 $ 87,635 Changes in actuarial assumptions 1,754,813 60,420 Net collective difference between projected and actual investment earnings — 2,491,567 Changes in proportion 210,561 — Contributions paid to the PERA subsequent to the measurement date 203,344 — Total $ 2,184,801 $ 2,639,622 -52- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) A total of$203,344 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2022. 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 2022 $ (24,812) 2023 $ 39,482 2024 $ 6,047 2025 $ (678,882) 2. PEPFF Pension Costs At December 31, 2021, the City reported a liability of$1,880,335 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. 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, 2020 through June 30, 2021, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.2436 percent at the end of the measurement period and 0.2410 percent for the beginning of the period. The state of Minnesota contributed $18.0 million to the PEPFF in the plan fiscal year ended June 30, 2021. The contribution consisted of$9.0 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in supplemental state aid that does not meet the definition of a special funding situation. The $9.0 million direct state aid was paid on October 1, 2020. Thereafter, by October 1 of each year, the state will pay $9.0 million to the PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9.0 million in supplemental 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. Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of these state contributions, although we do not anticipate them to be phased out during the fiscal year ending 2022. 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 $9.0 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 68 special funding situation accounting and financial reporting requirements. For the year ended December 31,2021, the City recognized negative pension expense of $134,779 for its proportionate share of the Police and Fire Plan's pension expense. The City recognized $15,398 as grant revenue for its proportionate share of the state of Minnesota's pension expense for the contribution of $9.0 million to the PEPFF. -53- 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 $ 1,880,335 State's proportionate share of the net pension liability associated with the City $ 84,551 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 supplemental state aid. The City recognized$21,924 for the year ended December 31, 2021 as revenue and an offsetting reduction of net pension liability for its proportionate share of the state of Minnesota's on-behalf contributions to the PEPFF. At December 31,2021,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 $ 358,820 $ — Changes in actuarial assumptions 2,763,596 1,004,908 Net collective difference between projected and actual investment earnings — 3,591,443 Changes in proportion 92,335 71,635 Contributions paid to the PERA subsequent to the measurement date 296,671 — Total $ 3,511,422 $ 4,667,986 A total of$296,671 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, 2022. 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 2022 $ (1,265,857) 2023 $ (226,411) 2024 $ (210,939) 2025 $ (360,741) 2026 $ 610,713 -54- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) E. Long-Term Expected Return on Investments The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best-estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic equity 33.50 % 5.10 % International equity 16.50 5.30 % Fixed income 25.00 0.75 % Private markets 25.00 5.90 % Total 100.00 % F. Actuarial Assumptions The total pension liability in the June 30, 2021, actuarial valuation was determined using an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 6.50 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 6.50 percent was deemed to be within that range of reasonableness for financial reporting purposes. Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan. The Police and Fire Plan benefit increase is fixed at 1.00 percent per year and that increase was used in the valuation. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.00 percent after 29 years of service, and 6.00 percent per year thereafter. In the Police and Fire Plan, salary growth assumptions range from 11.75 percent after one year of service to 3.00 percent after 24 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit the PERA's experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study for the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was completed in 2020, adopted by the Board,and became effective with the July 1,2021 actuarial valuation. -55- NOTE S—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) The following changes in actuarial assumptions occurred in 2021: 1. GERF CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,for financial reporting purposes. • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2. PEPFF CHANGES IN ACTUARIAL ASSUMPTIONS The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,for financial reporting purposes. The inflation assumption was changed from 2.50 percent to 2.25 percent. The payroll growth assumption was changed from 3.25 percent to 3.00 percent. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MP-2020. The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019)to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020). • Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. • Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates.The changes result in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall,proposed rates result in more projected disabilities. • Assumed percent married for active female members was changed from 60.00 percent to 70.00 percent. Minor changes to form of payment assumptions were applied. G. Discount Rate The discount rate used to measure the total pension liability in 2021 was 6.50 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net 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. -56- NOTE 8—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) H. 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 5.50% 6.50% 7.50% City's proportionate share of the GERF net pension liability $ 5,861,516 $ 2,874,012 $ 422,581 City's proportionate share of the PEPFF net pension liability(asset) $ 5,969,742 $ 1,880,335 $ (1,471,968) I. 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 internet at www.mnpera.org. NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION A. Plan Description Volunteer firefighters of the Farmington Volunteer 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, 2020, the plan covered 54 active firefighters and 9 vested terminated firefighters whose pension benefits are deferred. The Association maintains a separate Special Fund to accumulate assets to fund the retirement benefits earned by the Department's membership. B. Benefits Provided A firefighter who completes at least 20 years as an active member of the Department is entitled, after age 50,to a full service pension upon retirement. The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60 percent of the pension as described by the bylaws. This percentage increases 4 percent per year, so that at 20 years of service, the full amount prescribed is paid. Members who retire with less than 20 years of service and have reached the age of 50 and have completed at least 10 years of active membership, are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member's service pension for the completed years of service times the applicable nonforfeitable percentage of pension. -57- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION (CONTINUED) 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 $169,822 in fire state aid to the plan on behalf of the Department for the year ended December 31, 2021, 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, 2021 were $0; however, the City made a voluntary contribution of $150,000 to the plan. D. Pension Costs At December 31, 2021, the City reported a net pension liability (asset) of($1,545,208) for the plan. The net pension liability (asset) was measured as of December 31, 2020. 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, 2020. 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 1,2021 $ 2,234,920 $ 3,379,001 $ (1,1449081) Changes for the year Service cost 177,922 — 177,922 Interest 119,981 — 119,981 Differences between expected and actual experience (51,474) — (51,474) Changes of assumptions 18,063 — 18,063 Changes of benefit terms (368) — (368) Contributions(state and local) — 315,539 (315,539) Net investment income — 366,662 (366,662) Benefit payments (254,977) (254,977) — Administrative costs — (169950) 16,950 Total net changes 9,147 410,274 (401,127) Ending balance—December 31,2021 $ 2,244,067 $ 3,789,275 $ (1,545,208) For the year ended December 31, 2021, the City recognized pension revenue of$160,789 and pension expense of$61,446. -58- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION (CONTINUED) At December 31, 2021,the City reported deferred inflows of resources and deferred outflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference between expected and actual liability $ — $ 65,808 Change of assumptions 185,902 9,003 Net difference between projected and actual earnings on plan investments — 277,271 City contributions subsequent to the measurement date 150,000 — State aid to the City subsequent to the measurement date 169,822 169,822 Total $ 505,724 $ 521,904 Deferred outflows of resources totaling $319,822 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, 2022. Deferred inflows of resources totaling $169,822 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, 2022. 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 2022 $ (67,765) 2023 $ (27,350) 2024 $ (94,121) 2025 $ (22,635) 2026 $ 15,496 Thereafter $ 30,195 E. Actuarial Assumptions The total pension liability at December 31, 2020 was determined using the entry-age normal actuarial cost method and the following actuarial assumptions: Retirement eligibility at 100 percent service pension at age 50 with 20 years of service, early vested retirement at age 50 with 10 years of service vested at 60 percent and increased by 4 percent for each additional year of service up to 20 and eligibility for deferred service pension payable at age 50 with 20 years of service. Inflation rate 2.25%per year Investment rate of return 5.25% 20-year municipal bond yield 2.00% Actuarial assumption changes since the prior valuation included an inflation rate assumption update from 2.50 percent to 2.25 percent. Mortality assumptions were also changed to those used in the most recent Minnesota PERA Police and Fire Plan actuarial valuation. -59- NOTE 9—DEFINED BENEFIT PENSION PLAN—FIRE RELIEF ASSOCIATION (CONTINUED) Plan changes since the last valuation included a change in interest earned on deferred lump-sum amounts, which has been updated from 5.00 percent for all members, to 5.00 percent for members hired before July 1,2019,and 2.00 percent for members hired on or after July 1,2019. 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. 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 50.17 % 4.90 % 7.15 % International equity 13.45 5.32 % 7.57 % Fixed income 30.23 1.40 % 3.65 % Real estate and alternatives 1.18 4.43 % 6.68 % Cash and equivalents 4.97 0.09 % 2.34 % 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) $ (1,409,656) $ (1,545,208) $ (1,673,102) 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$56,305. D. Membership Membership in the plan consisted of the following as of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 7 Active plan members 89 Total members 96 E. Total OPEB Liability of the City The City's total OPEB liability of$1,169,857 as of year-end was measured as of December 31,2020, and was determined by an actuarial valuation as of that date. -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. Liability gains and losses and plan changes are recognized immediately, in accordance with GASB Statement No. 75 Alternative Measurement Method requirements. The following actuarial assumptions applied to all periods included in the measurement,unless otherwise specified: Discount rate 2.12% 20-year municipal bond yield 2.12% Inflation rate 2.50% Healthcare trend rate 6.50%grading to 3.90%over 54 years The actuarial assumptions used in the latest valuation were 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 2.12 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. Mortality rates were based on the July 1,2014 through June 30,2018 PERA and TRA experience studies. G. Changes in the Total OPEB Liability Total OPEB Liability Beginning balance—January 1,2021 $ 886,031 Changes for the year Service cost 92,066 Interest 26,170 Differences between expected and actual experience 489,862 Changes of assumptions (278,274) Benefit payments—employer-financed (45,998) Total net changes 283,826 Ending balance—December 31,2021 $ 1,169,857 Assumption changes since the prior measurement date include the following: • Medical trend was updated based on recently published trend model and trend surveys to better reflect future anticipated experience. • Medical per capital claims tables were updated based on recent experience and demographics. • The discount rate was updated from 2.74 percent to 2.12 percent based on recent municipal bond index rates. • Withdrawal, mortality and salary scale assumptions were updated to those included in the recently published PERA General Plan and Police and Fire Plan actuarial valuations. • Assumed retirement ages were updated from the PERA General Plan and Police and Fire Plan assumptions to age 56 for Police and Fire Plan members and 63 for General Plan members. This update was made to comply with the alternative measurement method standard assumptions. • Assumed future retiree spouse participation was updated from 40.00 percent to current coverage elections. This is a simplification as allowed by the alternative measurement method process. • The inflation rate was changed from 2.00 percent to 2.50 percent since the prior valuation. -62- NOTE 10—OTHER POST-EMPLOYMENT BENEFITS(OPEB)PLAN(CONTINUED) Changes in plan provisions since the prior measurement date include the following: • Medical premiums and retiree contributions were updated to current levels. H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: I%Decrease in 1%Increase in Discount Rate Discount Rate Discount Rate OPEB discount rate 1.12% 2.12% 3.12% Total OPEB liability $ 1,265,463 $ 1,169,857 $ 1,079,702 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 trend rates: 1%Decrease in Healthcare Trend I%Increase in Healthcare Trend Rate Rate Healthcare Trend Rate OPEB healthcare trend rate 5.50%decreasing to 6.50%decreasing to 7.50%decreasing to 2.90%over 54 years 3.90%over 54 years 4.90%over 54 years Total OPEB liability $ 1,026,011 $ 1,169,857 $ 1,341,019 I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources For the current year, the City recognized negative OPEB expense of $1,420. 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 Contributions subsequent to the measurement date $ 56,305 $ Deferred outflows of resources reported $56,305 related to OPEB resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the total OPEB liability in the year ending December 31,2022. NOTE 11—DEFICIT FUND BALANCES At December 31,2021,the Federal Aid Special Revenue Fund reported a deficit fund balance of$13,763, and the (nonmajor) Spruce Street Reconstruction Capital Projects Fund reported a deficit fund balance of $16,069. These deficits are due to investment charges or project expenditures incurred in advance of funding and will be eliminated through future revenues and other financing sources. -63- NOTE 12-NET POSITION/FUND BALANCES A. Net Investment in Capital Assets The government-wide Statement of Net Position at December 31,2021 includes the City's net investment in capital assets, calculated as follows: Governmental Business-Type Activities Activities Total Net investment in capital assets Capital assets Not depreciated $ 1,658,302 $ 498,376 $ 2,156,678 Depreciated,net of accumulated depreciation 44,867,934 50,941,288 95,809,222 Less capital-related long-term debt outstanding (9,707,152) (666,032) (10,373,184) Total net investment in capital assets $ 36,819,084 $ 50,773,632 $ 87,592,716 B. Governmental Fund Balance Classifications At December 31,2021,the City had the following governmental fund balances: Special Revenue- Debt Capital Projects- General Federal Aid Service Maintenance Private Nonmajor Total Nonspendable Prepaid items $ 2,817 $ - $ - $ - $ - $ 1,365 $ 4,182 Loan 80,271 - - - - - 80,271 Total nonspendable 83,088 - - - - 1,365 84,453 Restricted Debt service - - 3,146,223 - - - 3,146,223 Economic development - - - - - 292,836 292,836 Police programs - - - - - 48,028 48,028 Park improvements - - - - - 666,571 666,571 PEG fees - - - - - 208,829 208,829 Recreational capital projects - - - - - 49,226 49,226 Total restricted - - 3,146,223 - - 1,265,490 4,411,713 Committed Pavement management - - - 1,572,324 - - 1,572,324 Improvement projects - - - - 104,087 282,948 387,035 Park improvements - - - - - 320,777 320,777 Ice arena capital - - - - - 117,352 117,352 Sanitary sewer trunk - - - - - 634,002 634,002 Cable communications - - - - - 792,163 792,163 Street construction - - - - - 130,677 130,677 Fire capital programs - - - - - 286,971 286,971 Storm water trunk - - - - - 4,213,711 4,213,711 Capital equipment - - - - - 421,294 421,294 Total committed - - - 1,572,324 104,087 7,199,895 8,876,306 Unassigned 6,843,396 (13,763) - - - (16,069) 6,813,564 Total $ 6,926,484 $ (13,763) $ 3,146,223 $ 1,572,324 $ 104,087 $ 8,450,681 $20,186,036 C. 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, 2021, the unassigned fund balance of the General Fund was 43.5 percent of the subsequent year's budgeted expenditures and transfers out. -64- NOTE 13—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 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 2021. 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, 2021 of $80,271 is reported as a loan receivable in the City's General Fund. NOTE 14—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 had significant financial and operational impacts on the City for the last two fiscal years. 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. -65- NOTE 15—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$119,815 of property tax increment in the current year. The remaining principal balance as of December 31, 2021 for this agreement was $1,240,884. 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. NOTE 16—SUBSEQUENT EVENTS A. New Accounting Standards A new standard has been issued by the GASB that will result in significant changes in the reporting of leases once it becomes effective for governmental entities. This standard will be adopted by the City beginning in 2022, and will require the restatement of certain balances reported as of December 31, 2021. The effects of this change have not yet been determined and are not reflected in these financial statements. B. Solid Waste Operations Beginning in 2022,the City will cease providing solid waste and recycling collection services directly to its residents and businesses, opting to contract with a commercial provider for these services in the future. The private contractor will purchase the City's waste haulers and garbage carts in January 2022 as part of this agreement. To facilitate this transition, and to avoid having the City's solid waste customers receive two billings in the same timeframe due to differences in billing practices, the City Council also adopted a resolution authorizing the use of a portion of the year-end net position in its Solid Waste Enterprise Fund to pay the initial first quarter billings from the new service provider to former city customers. The effects of this change have not yet been determined and are not reflected in these financial statements. -66- THIS PAGE INTENTIONALLY LEFT BLANK 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 31,2021 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% 12/31/2021 06/30/2021 0.0673% $ 2,874,012 $ 87,697 $ 2,961,709 $ 4,840,585 59.37% 87.00% PERA—General Employees Retirement Fund Schedule of City Contributions Year Ended December 31,2021 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% 12/31/2021 $ 371,254 $ 371,254 $ — $ 4,950,057 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. -67- 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 31,2021 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% 12/31/2021 06/30/2021 0.2436% $ 1,880,335 $ 84,551 $ 1,964,886 $ 2,879,369 65.30% 93.70% PERA—Public Employees Police and Fire Fund Schedule of City Contributions Year Ended December 31,2021 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% 12/31/2021 $ 526,699 $ 526,699 $ — $ 2,975,703 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. -68- CITY OF FARMINGTON Farmington Fire Fighters'Relief Association Schedule of Changes in the Relief Association's Net Pension Liability(Asset)and Related Ratios Year Ended December 31,2021 City fiscal year-end dated December 31, 2015 2016 2017 2018 2019 2020 2021 Farmington Fire Fighters'Relief Association year-end dated(measurement date) December 3l, 2014 2015 2016 2017 2018 2019 2020 Total pension liability Service cost $ 69,285 $ 71,190 $ 86,788 $ 93,501 $ 112,754 $ 163,690 $ 177,922 Interest 110,249 92,788 82,702 95,308 105,418 118,151 119,981 Differences between expected and actual experience - - (14,504) - (13,870) - (51,474) Changes ofassumptions - 116,780 (15,678) - 86,336 61,961 18,063 Changes of benefits terms - - 143,662 171,894 169,797 - (368) Benefit payments (265,643) (596,137) (1,194) (292,064) (156,771) - (254,977) Net change in total pension liability (86,109) (315,379) 281,776 68,639 303,664 343,802 9,147 Total pension liability Beginning of year 1,638,527 1,552,418 1,237,039 1,518,815 1,587,454 1,891,118 2,234,920 End of year $ 1,552,418 $ 1,237,039 $ 1,518,815 $ 1,587,454 $ 1,891,118 $ 2,234,920 $ 2,244,067 Plan fiduciary net position Contributions(state and local) $ 283,461 $ 291,915 $ 291,510 $ 301,508 $ 297,548 $ 301,797 $ 315,539 Net investment income 84,277 (33,543) 163,457 342,985 (168,667) 508,896 366,662 Benefit payments (265,643) (596,137) (1,194) (292,064) (156,771) - (254,977) Administrative costs (10,848) (15,756) (17,200) (18,282) (16,720) (18,400) (16,950) Net change in plan fiduciary net position 91,247 (353,521) 436,573 334,147 (44,610) 792,293 410,274 Plan fiduciary net position Beginning ofyear 2,122,872 2,214,119 1,860,598 2,297,171 2,631,318 2,586,708 3,379,001 End of year $ 2,214,119 $ 1,860,598 $ 2,297,171 $ 2,631,318 $ 2,586,708 $ 3,379,001 $ 3,789,275 Net pension liability(asset)-ending $ (661,701) $ (623,559) __L_L778,356) $(1,043,864) $ (695,590) $(1,144,081) $(1,545,208) Plan fiduciary net position as a percentage ofthe total pension liability 142.62% 150.41% 151.25% 165.76% 136.78% 151.19% 168.86% 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 Farmington Fire Fighters'Relief Association Schedule of City Contributions Year Ended December 31,2021 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 12/31/2021 $ — $ — $ — $ 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. -70- CITY OF FARMINGTON Other Post-Employment Benefits Plan Schedule of Changes in the City's Total OPEB Liability and Related Ratios Year Ended December 31,2021 Fiscal Year 2018 2019 2020 2021 Total OPEB liability Service cost $ 113,275 $ 85,451 $ 74,564 $ 92,066 Interest 40,190 40,509 49,025 26,170 Differences between expected and actual experience — — (424,559) 489,862 Changes of assumptions 28,356 (57,133) 79,584 (278,274) Benefit payments (38,891) (40,361) (33,373) (45,998) Net change in total OPER liability 142,930 28,466 (254,759) 283,826 Total OPEB liability—beginning of year 969,394 1,112,324 1,140,790 886,031 TotalOPEBliability—endofyear $ 1,112,324 $ 1,140,790 $ 886,031 $ 1,169,857 Covered-employee payroll $5,800,000 $ 6,000,000 $ 7,300,000 $ 7,300,000 Total OPEB liability as a percentage of covered-employee payroll 19.18% 19.01% 12.14% 16.03% Note 1: The City has not established a trust fund to finance GASB Statement No.75 related benefits. Note:2: 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. -71- CITY OF FARMINGTON Notes to Required Supplementary Information December 31, 2021 PERA—GENERAL EMPLOYEES RETIREMENT FUND 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,for financial reporting purposes. • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 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. -72- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2021 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. -73- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2021 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. -74- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2021 PERA—PUBLIC EMPLOYEES POLICE AND FIRE FUND 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent,for financial reporting purposes. • The inflation assumption was changed from 2.50 percent to 2.25 percent. • The payroll growth assumption was changed from 3.25 percent to 3.00 percent. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 Public Safety Mortality Table. The mortality improvement scale was changed from MP-2019 to MP-2020. • The base mortality table for disabled annuitants was changed from the RP-2014 Healthy Annuitant Mortality Table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety Disabled Annuitant Mortality Table (with future mortality improvement according to Scale MP-2020). • Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. • Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall,proposed rates result in more projected disabilities. • Assumed percent married for active female members was changed from 60.00 percent to 70.00 percent.Minor changes to form of payment assumptions were applied. 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. -75- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31,2021 PERA—PUBLIC EMPLOYEES POLICE AND FIRE FUND(CONTINUED) 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. 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. -76- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2021 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. FARMINGTON FIRE FIGHTERS' RELIEF ASSOCIATION 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality assumptions were updated from the rates used in the July 1, 2018 Minnesota PERA Police and Fire Plan actuarial valuation to the rates used in the July 1, 2020 Minnesota PERA Police and Fire Plan actuarial valuation • The inflation rate was changed from 2.50 percent to 2.25 percent. 2021 CHANGES IN PLAN PROVISIONS Interest earned on deferred lump sum amounts has been updated from 5.00 percent for all members to 5.00 percent for member hired before July 1, 2019 and 2.00 percent for members hired on or after July 1,2019. 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. -77- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31, 2021 FARMINGTON FIRE FIGHTERS' RELIEF ASSOCIATION(CONTINUED) 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. -78- CITY OF FARMINGTON Notes to Required Supplementary Information(continued) December 31,2021 OTHER POST-EMPLOYMENT BENEFITS PLAN 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • Medical trend was updated based on recently published trend model and trend surveys to better reflect future anticipated experience. • Medical per capita claims tables were updated based on recent experience and demographics. • The actuarial assumptions for the single discount rate changed from 2.74 percent to 2.12 percent. • Withdrawal, mortality, and salary scale assumptions were updated to those included in the recently published PERA General Plan and Police and Fire Plan actuarial valuations. • Assumed retirement ages were updated from the PERA General Plan and Police and Fire Plan assumptions to age 56 for Police and Fire Plan members and 63 for General Plan members. • Assumed future retiree spouse participation was updated from 40.00 percent to current coverage elections. • The assumed inflation rate changed from 2.00 percent to 2.50 percent. 2021 CHANGES IN PLAN PROVISIONS • Medical premiums and retiree contributions were updated to current levels. 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. -79- SUPPLEMENTARY 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. -80- CITY OF FARMINGTON Nonmajor Governmental Funds Combining Balance Sheet as of December 31,2021 Special Capital Revenue Projects Total Assets Cash and investments $ 1,353,903 $ 6,800,460 $ 8,154,363 Receivables Accounts 122,379 58,675 181,054 Interest 3,485 17,175 20,660 Special assessments Noncurrent — 666,571 666,571 Due from other funds — 300,000 300,000 Due from other governments 44,397 — 44,397 Prepaid items 1,365 — 1,365 Total assets $ 1,525,529 $ 7,842,881 $ 9,368,410 Liabilities Accounts and contracts payable $ 69,158 $ 172,558 $ 241,716 Deposits payable 9,145 — 9,145 Due to other governments 297 — 297 Total liabilities 78,600 172,558 251,158 Deferred inflows of resources Unavailable revenue—special assessments — 666,571 666,571 Fund balances(deficits) Nonspendable 1,365 — 1,365 Restricted 1,007,435 258,055 1,265,490 Committed 438,129 6,761,766 7,199,895 Unassigned — (16,069) (16,069) Total fund balances 1,446,929 7,003,752 8,450,681 Total liabilities,deferred inflows of resources,and fund balances $ 1,525,529 $ 7,842,881 $ 9,368,410 -81- CITY OF FARMINGTON Nonmajor Governmental Funds Combining Statement of Revenues,Expenditures,and Changes in Fund Balances Year Ended December 31,2021 Special Capital Revenue Projects Total Revenue Property taxes $ 133,127 $ 275,000 $ 408,127 Franchise taxes - 84,355 84,355 Special assessments - 9,048 9,048 Intergovernmental 171,028 - 171,028 Charges for services 402,929 570,299 973,228 Investment earnings(charges) (6,165) 5,501 (664) Other Donations 51,564 68,821 120,385 Rentals 11,783 - 11,783 Miscellaneous 409,058 - 409,058 Total revenues 1,173,324 1,013,024 2,186,348 Expenditures Current General government - 87,815 87,815 Public safety 58,064 34,190 92,254 Public works - 17,839 17,839 Parks and recreation 409,997 17,110 427,107 Economic development 385,434 - 385,434 Capital outlay General government - 3,309 3,309 Public safety 2,577 1,861,816 1,864,393 Public works - 125,438 125,438 Parks and recreation 14,439 91,369 105,808 Economic development 27,744 - 27,744 Debt service Interest and fiscal charges - 15,250 15,250 Total expenditures 898,255 2,254,136 3,152,391 Excess(deficiency)of revenues over expenditures 275,069 (1,241,112) (966,043) Other financing sources(uses) Sale of capital assets 42,387 41,020 83,407 Transfers in 204,367 445,534 649,901 Transfers out (44,367) - (44,367) Total other financing sources(uses) 202,387 486,554 688,941 Net change in fund balances 477,456 (754,558) (277,102) Fund balances Beginning of year 969,473 7,758,310 8,727,783 End of year $ 1,446,929 $ 7,003,752 $ 8,450,681 -82- 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: Economic Development Authority—Used to account for the general economic development activities of the City's Economic Development Authority. Dakota Broadband—Used to account for the City's agreement with Dakota Broadband. Trident Housing Tax Increment—Used to account for the development of this tax increment district. 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. KK=9—Used to account for the operations and activities related to K-9 program donations and allows for the expenditure of those revenues for costs related to the City's K-9 program. Park Improvement—Used to account for the operations and activities related to the collection of park dedication fees and other revenues earmarked for construction and improvement of the City's park and trail system. Arena(Ice)—Used to account for the operation of the City's ice arena; one sheet of indoor ice for use by hockey and figure skating groups,both school and youth organizations supported. -83- CITY OF FARMINGTON Nonmajor Special Revenue Funds Combining Balance Sheet as of December 31,2021 Economic Police Development Dakota Trident Housing Donations Authority Broadband Tax Increment and Forfeitures Assets Cash and investments $ 199,987 $ — $ 107,631 $ 11,332 Receivables Accounts — — — — Interest 515 — 277 29 Due from other governments — 44,397 — — Prepaid items 1,365 — — — Total assets $ 201,867 $ 44,397 $ 107,908 $ 11,361 Liabilities Accounts and contracts payable $ 20 $ 44 $ 59,907 $ 1,717 Deposits payable — — — 3,000 Due to other governments — — — — Total liabilities 20 44 59,907 4,717 Fund balances Nonspendable 1,365 — — — Restricted for economic development 200,482 44,353 48,001 — Restricted for police programs — — — 6,644 Restricted for park improvements — — — — Committed for park improvements — — — — Committed for ice arena capital — — — — Total fund balances 201,847 44,353 48,001 6,644 Total liabilities and fund balances $ 201,867 $ 44,397 $ 107,908 $ 11,361 -84- Police Public Park Outreach K-9 Improvement Arena Total $ 42,224 $ 2,628 $ 986,123 $ 3,978 $ 1,353,903 - - - 122,379 122,379 108 7 2,541 8 3,485 - - - - 44,397 - - - - 1,365 $ 42,332 $ 2,635 $ 988,664 $ 126,365 $ 1,525,529 $ 3,488 $ 95 $ 1,316 $ 2,571 $ 69,158 - - - 6,145 9,145 - - - 297 297 3,488 95 1,316 9,013 78,600 - - - - 1,365 - - - - 292,836 38,844 2,540 - - 48,028 - - 666,571 - 666,571 - - 320,777 - 320,777 - - - 117,352 117,352 38,844 2,540 987,348 117,352 1,446,929 $ 42,332 $ 2,635 $ 988,664 $ 126,365 $ 1,525,529 -85- CITY OF FARMINGTON Nonmajor Special Revenue Funds Combining Statement of Revenues,Expenditures, and Changes in Fund Balances Year Ended December 31,2021 Economic Police Development Dakota Trident Housing Donations Authority Broadband Tax Increment and Forfeitures Revenues Property taxes $ - $ - $ 133,127 $ - Intergovernmental 122,313 48,715 - - Charges for services - - - - Investment earnings(charges) 250 - (946) (82) Other Donations - - - - Rentals - - - - Miscellaneous - - - 420 Total revenues 122,563 48,715 132,181 338 Expenditures Current Public safety - - - 8,876 Parks and recreation - - - - Economic development 215,829 48,729 120,876 - Capital outlay Public safety - - - - Parks and recreation - - - - Economic development 27,744 - - - Total expenditures 243,573 48,729 120,876 8,876 Excess(deficiency)of revenues over expenditures (121,010) (14) 11,305 (8,538) Other financing sources(uses) Sale of capital assets 34,000 - - 8,387 Transfers in 40,000 44,367 - - Transfers out (44,367) - - - Total other financing sources(uses) 29,633 44,367 - 8,387 Net change in fund balances (91,377) 44,353 11,305 (151) Fund balances Beginning of year 293,224 - 36,696 6,795 End of year $ 201,847 $ 44,353 $ 48,001 $ 6,644 -86- Police Public Park Outreach K-9 Improvement Arena Total $ - $ - $ 133,127 171,028 402,929 402,929 (264) 117 (5,595) 355 (6,165) 27,596 9,950 7,298 6,720 51,564 8,403 3,380 11,783 - - 408,638 - 409,058 27,332 10,067 418,744 413,384 1,173,324 21,286 27,902 - - 58,064 - - 6,861 403,136 409,997 - 385,434 2,577 - - 2,577 - 11,740 2,699 14,439 - - - - 27,744 21,286 30,479 18,601 405,835 898,255 6,046 (20,412) 400,143 7,549 275,069 - - 42,387 75,000 45,000 204,367 - - (44,367) 75,000 45,000 202,387 6,046 (20,412) 475,143 52,549 477,456 32,798 22,952 512,205 64,803 969,473 $ 38,844 $ 2,540 $ 987,348 $ 117,352 $ 1,446,929 -87- 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. State Aid Construction — Used to account for street construction and road/street rehabilitation or reconstruction projects related to municipal state aids. Fire—Used to account for the operations and activities related to fire capital projects and donations to the fire department. Storm Water Trunk — Used to account for the construction and improvement of storm water trunk infrastructure within the City. 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. Permanent Improvement Revolving— Used to account for street construction projects financed with multiple funding sources. General Capital Equipment— Used to account for the operations and activities related to the City's general capital equipment. Spruce Street Reconstruction—Used to account for street improvements related to Spruce Street. -88- CITY OF FARMINGTON Nonmajor Capital Projects Funds Combining Balance Sheet as of December 31,2021 Sanitary Sewer Cable State Aid Trunk Communications Construction Fire Assets Cash and investments $ 756,935 $ 941,044 $ 130,341 $ 298,780 Receivables Accounts 555 58,120 — — Interest 1,950 2,425 336 422 Special assessments Noncurrent — — 232,453 — Due from other funds — — — — Total assets $ 759,440 $ 1,001,589 $ 363,130 $ 299,202 Liabilities Accounts and contracts payable $ 125,438 $ 597 $ — $ 12,231 Deferred inflows of resources Unavailable revenue—special assessments 232,453 — Fund balances(deficits) Restricted for public,educational,and governmental fees — 208,829 — — Restricted for recreational capital projects — — — — Committed for sanitary sewer trunk 634,002 — — — Committed for cable communications — 792,163 — — Committed for street construction — — 130,677 — Committed for fire capital programs — 286,971 Committed for storm water trunk — — — — Committed for improvement projects — — Committed for capital equipment — — Unassigned — — — — Total fund balances(deficits) 634,002 1,000,992 130,677 286,971 Total liabilities,deferred inflows of resources,and fund balances $ 759,440 $ 1,001,589 $ 363,130 $ 299,202 -89- Permanent General Spruce Storm Water Improvement Capital Street Trunk Recreation Revolving Equipment Reconstruction Total $ 3,903,653 $ 143,451 $ 187,869 $ 438,387 $ - $ 6,800,460 - - - - - 58,675 10,058 370 484 1,130 - 17,175 - - 434,118 - - 666,571 300,000 - - - - 300,000 $ 4,213,711 $ 143,821 $ 622,471 $ 439,517 $ - $ 7,842,881 $ - $ - $ - $ 18,223 $ 16,069 $ 172,558 - - 434,118 - - 666,571 - - - - - 208,829 49,226 - - - 49,226 - - - - - 634,002 - - - - 792,163 - - - - 130,677 - - - - 286,971 4,213,711 - - - - 4,213,711 - 94,595 188,353 - - 282,948 - - 421,294 - 421,294 - - - - (16,069) (16,069) 4,213,711 143,821 188,353 421,294 (16,069) 7,003,752 $ 4,213,711 $ 143,821 $ 622,471 $ 439,517 $ - $ 7,842,881 -90- CITY OF FARMINGTON Nonmajor Capital Projects Funds Combining Statement of Revenues,Expenditures, and Changes in Fund Balances Year Ended December 31,2021 Sanitary Sewer Cable State Aid Trunk Communications Construction Fire Revenues Property taxes $ — $ — $ — $ — Franchise taxes — 84,355 — — Special assessments — — — — Charges for services 230,195 — Investment earnings(charges) (2,932) (1,669) (259) (574) Other Donations — — — 30,100 Total revenues 227,263 82,686 (259) 29,526 Expenditures Current General government — 87,815 — — Public safety — — — 33,665 Public works — — — — Parks and recreation — — — — Capital outlay General government — 3,309 — — Public safety — — — 1,184,272 Public works 125,438 — — — Parks and recreation — — — — Debt service Interest and fiscal charges — — Total expenditures 125,438 91,124 — 1,217,937 Excess(deficiency)of revenues over expenditures 101,825 (8,438) (259) (1,188,411) Other financing sources Sale of capital assets — — — — Transfers in — — — 135,000 Total other financing sources — — — 135,000 Net change in fund balances 101,825 (8,438) (259) (1,053,411) Fund balances(deficits) Beginning of year 532,177 1,009,430 130,936 1,340,382 End of year $ 634,002 $ 1,000,992 $ 130,677 $ 286,971 -91- Permanent General Spruce Storm Water Improvement Capital Street Trunk Recreation Revolving Equipment Reconstruction Total $ 275,000 $ - $ - $ - $ - $ 275,000 - - - 84,355 - - 9,048 - - 9,048 340,104 - - 570,299 11,211 (144) (477) 345 - 5,501 - 37,931 - 790 - 68,821 626,315 37,787 8,571 1,135 - 1,013,024 - - 87,815 - - - 525 - 34,190 1,770 - 16,069 17,839 - 17,110 - - - 17,110 - - - - 3,309 677,544 - 1,861,816 - - - - 125,438 - 91,369 - - - 91,369 15,250 - - 15,250 17,020 108,479 - 678,069 16,069 2,254,136 609,295 (70,692) 8,571 (676,934) (16,069) (1,241,112) - - - 41,020 - 41,020 - 310,534 - 445,534 - - - 351,554 - 486,554 609,295 (70,692) 8,571 (325,380) (16,069) (754,558) 3,604,416 214,513 179,782 746,674 - 7,758,310 $ 4,213,711 $ 143,821 $ 188,353 $ 421,294 $ (16,069) $ 7,003,752 -92- 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. 2013A General Obligation Improvement Refunding Bonds — The bonds were issued to refund the 2005B and 2006A bonds,which were originally issued for the Ash Street, Hill Dee, and Spruce Street Projects. 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 Refunding Bonds—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. -93- CITY OF FARMINGTON Debt Service Fund Combining Balance Sheet by Account as of December 31,2021 2010A G.O. 2013A G.O. 2015A G.O. 2016A G.O. Improvement Improvement Street Improvement Refunding Refunding Construction Refunding Bonds Bonds Bonds Bonds Assets Cash and investments $ 59,376 $ 569,641 $ 417,046 $ 1,280,566 Receivables Interest 153 1,468 1,075 3,299 Special assessments Delinquent — 297 — 1,053 Noncurrent — 2,521,287 — 551,964 Total assets $ 59,529 $ 3,092,693 $ 418,121 $ 1,836,882 Liabilities Accounts and contracts payable $ — $ 483 $ 483 $ 2,983 Due to other funds — 300,000 Total liabilities — 483 483 302,983 Deferred inflows of resources Unavailable revenue— special assessments — 2,521,584 — 553,017 Fund balances Restricted for debt service 59,529 570,626 417,638 980,882 Total liabilities,deferred inflows of resources,and fund balances $ 59,529 $ 3,092,693 $ 418,121 $ 1,836,882 -94- 2016B G.O. Capital 2019A G.O. Improvement Street 2020A G.O. Refunding Construction Equipment Bonds Bonds Certificates Total $ 635,965 $ 243,624 $ 239,025 $ 3,445,243 1,639 628 616 8,878 — — — 1,350 — — — 3,073,251 $ 637,604 $ 244,252 $ 239,641 $ 6,528,722 $ 2,983 $ 483 $ 483 $ 7,898 — — — 300,000 2,983 483 483 307,898 — — — 3,074,601 634,621 243,769 239,158 3,146,223 $ 637,604 $ 244,252 $ 239,641 $ 6,528,722 -95- CITY OF FARMINGTON Debt Service Fund Combining Schedule of Revenues,Expenditures, and Changes in Fund Balances by Account Year Ended December 31,2021 2010A G.O. 2013A G.O. 2015A G.O. 2016A G.O. Improvement Improvement Street Improvement Refunding Refunding Construction Refunding Bonds Bonds Bonds Bonds Revenues Property taxes $ 292,253 $ 443,000 $ 293,500 $ 574,327 Special assessments - 29,157 - 240,258 Investment earnings(charges) (221) (5,144) (3,172) (9,388) Total revenues 292,032 467,013 290,328 805,197 Expenditures Debt service Principal - 720,000 210,000 540,000 Interest and fiscal charges 3,332 18,809 56,433 38,628 Total expenditures 3,332 738,809 266,433 578,628 Net change in fund balances 288,700 (271,796) 23,895 226,569 Fund balances(deficits) Beginning of year (229,171) 842,422 393,743 754,313 End of year $ 59,529 $ 570,626 $ 417,638 $ 980,882 -96- 2016B G.O. Capital 2019A G.O. Improvement Street 2020A G.O. Refunding Construction Equipment Bonds Bonds Certificates Total $ 635,000 $ 231,000 $ 268,013 $ 2,737,093 — — — 269,415 (6,360) (2,374) (2,506) (29,165) 628,640 228,626 265,507 2,977,343 505,000 180,000 — 2,155,000 119,707 35,483 81,096 353,488 624,707 215,483 81,096 2,508,488 3,933 13,143 184,411 468,855 630,688 230,626 54,747 2,677,368 $ 634,621 $ 243,769 $ 239,158 $ 3,146,223 -97- THIS PAGE INTENTIONALLY LEFT BLANK BUDGETARY COMPARISON SCHEDULES Debt Service Fund Maintenance Capital Projects Fund Private Capital Projects Fund Nonmajor Special Revenue Funds Economic Development Authority Trident Housing Tax Increment Police Donations and Forfeitures Park Improvement Arena(Ice) Nonmajor Capital Projects Funds Sanitary Sewer Trunk Cable Communications State Aid Construction Fire Storm Water Trunk Recreation Permanent Improvement Revolving General Capital Equipment -98- CITY OF FARMINGTON Debt Service Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 2,737,093 $ 2,737,093 $ — Special assessments 345,075 269,415 (75,660) Investment earnings(charges) 10,600 (29,165) (39,765) Total revenues 3,092,768 2,977,343 (115,425) Expenditures Debt service Principal 2,155,000 2,155,000 — Interest and fiscal charges 358,703 353,488 (5,215) Total expenditures 2,513,703 2,508,488 (5,215) Excess(deficiency)of revenues over expenditures 579,065 468,855 (110,210) Other financing sources(uses) Transfers out (299,153) — 299,153 Net change in fund balances $ 279,912 468,855 $ 188,943 Fund balances Beginning of year 2,677,368 End of year $ 3,146,223 -99- CITY OF FARMINGTON Maintenance Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Intergovernmental $ 92,000 $ 122,387 $ 30,387 Charges for service — 111,348 111,348 Investment earnings(charges) 11,500 (6,005) (17,505) Total revenues 103,500 227,730 124,230 Expenditures Current Public works 574,465 152,091 (422,374) Parks and recreation 63,760 160,165 96,405 Capital outlay Public works — 38,093 38,093 Parks and recreation — 791,063 791,063 Total expenditures 638,225 1,141,412 503,187 Excess(deficiency)of revenues over expenditures (534,725) (913,682) (378,957) Other financing sources Sale of capital assets — 255 255 Transfers in 652,819 825,201 172,382 Total other financing sources 652,819 825,456 172,637 Net change in fund balances $ 118,094 (88,226) $ (206,320) Fund balances Beginning of year 1,660,550 End of year $ 1,572,324 -100- CITY OF FARMINGTON Private Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Special assessments $ — $ 861 $ 861 Investment earnings(charges) 6,200 (8,733) (14,933) Total revenues 6,200 (7,872) (14,072) Expenditures Current General government — 259 259 Net change in fund balances $ 6,200 (8,131) $ (14,331) Fund balances Beginning of year 112,218 End of year $ 104,087 -101- CITY OF FARMINGTON Economic Development Authority Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Intergovernmental $ 180,474 $ 122,313 $ (58,161) Investment earnings 2,100 250 (1,850) Total revenues 182,574 122,563 (60,011) Expenditures Current Economic development 205,190 215,829 10,639 Capital outlay Economic development — 27,744 27,744 Total expenditures 205,190 243,573 38,383 Excess(deficiency)of revenues over expenditures (22,616) (121,010) (98,394) Other financing sources(uses) Sale of capital assets — 34,000 34,000 Transfers in 40,000 40,000 — Transfers out — (44,367) (44,367) Total other financing sources(uses) 40,000 29,633 (10,367) Net change in fund balances $ 17,384 (91,377) $ (108,761) Fund balances Beginning of year 293,224 End of year $ 201,847 -102- CITY OF FARMINGTON Trident Housing Tax Increment Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 146,210 $ 133,127 $ (13,083) Investment earnings(charges) 200 (946) (1,146) Total revenues 146,410 132,181 (14,229) Expenditures Current Economic development 134,439 120,876 (13,563) Net change in fund balances $ 11,971 11,305 $ (666) Fund balances Beginning of year 36,696 End of year $ 48,001 -103- CITY OF FARMINGTON Police Donations and Forfeitures Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings(charges) $ 100 $ (82) $ (182) Other Miscellaneous — 420 420 Total revenues 100 338 238 Expenditures Current Public safety 2,000 8,876 6,876 Excess(deficiency)of revenues over expenditures (1,900) (8,538) (6,638) Other financing sources Sale of capital assets 2,950 8,387 5,437 Net change in fund balances $ 1,050 (151) $ (1,201) Fund balances Beginning of year 6,795 End of year $ 6,644 -104- CITY OF FARMINGTON Park Improvement Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings(charges) $ 2,800 $ (5,595) $ (8,395) Other Donations — 7,298 7,298 Rentals 8,400 8,403 3 Miscellaneous 25,000 408,638 383,638 Total revenues 36,200 418,744 382,544 Expenditures Current Parks and recreation 15,000 6,861 (8,139) Capital outlay Parks and recreation — 11,740 11,740 Total expenditures 15,000 18,601 3,601 Excess of revenues over expenditures 21,200 400,143 378,943 Other financing sources Transfers in 75,000 75,000 — Net change in fund balances $ 96,200 475,143 $ 378,943 Fund balances Beginning of year 512,205 End of year $ 987,348 -105- CITY OF FARMINGTON Arena Special Revenue Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Charges for services $ 370,700 $ 402,929 $ 32,229 Investment earnings 300 355 55 Other Donations 5,000 6,720 1,720 Rentals 3,000 3,380 380 Miscellaneous 1,000 — (1,000) Total revenues 380,000 413,384 33,384 Expenditures Current Parks and recreation 373,417 403,136 29,719 Capital outlay Parks and recreation 500 2,699 2,199 Total expenditures 373,917 405,835 31,918 Excess of revenues over expenditures 6,083 7,549 1,466 Other financing sources Transfers in — 45,000 45,000 Net change in fund balances $ 6,083 52,549 $ 46,466 Fund balances Beginning of year 64,803 End of year $ 117,352 -106- CITY OF FARMINGTON Sanitary Sewer Trunk Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Charges for services $ 26,085 $ 230,195 $ 204,110 Investment earnings(charges) 2,900 (2,932) (5,832) Total revenues 28,985 227,263 198,278 Expenditures Capital outlay Public works — 125,438 125,438 Net change in fund balances $ 28,985 101,825 $ 72,840 Fund balances Beginning of year 532,177 End of year $ 634,002 -107- CITY OF FARMINGTON Cable Communications Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Franchise taxes $ 140,000 $ 84,355 $ (55,645) Investment earnings(charges) 6,000 (1,669) (7,669) Total revenues 146,000 82,686 (63,314) Expenditures Current General government 93,000 87,815 (5,185) Capital outlay General government 30,000 3,309 (26,691) Total expenditures 123,000 91,124 (31,876) Net change in fund balances $ 23,000 (8,438) $ (31,438) Fund balances Beginning of year 1,009,430 End of year $ 1,000,992 -108- CITY OF FARMINGTON State Aid Construction Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings(charges) $ 900 $ (259) $ (1,159) Net change in fund balances $ 900 (259) $ (1,159) Fund balances Beginning of year 130,936 End of year $ 130,677 -109- CITY OF FARMINGTON Fire Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings(charges) $ 800 $ (574) $ (1,374) Other Donations — 30,100 30,100 Total revenues 800 29,526 28,726 Expenditures Current Public safety — 33,665 33,665 Capital outlay Public safety — 1,184,272 1,184,272 Total expenditures — 1,217,937 1,217,937 Excess(deficiency)of revenues over expenditures 800 (1,188,411) (1,189,211) Other financing sources Transfers in — 135,000 135,000 Net change in fund balances $ 800 (1,053,411) $ (1,054,211) Fund balances Beginning of year 1,340,382 End of year $ 286,971 -110- CITY OF FARMINGTON Storm Water Trunk Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Property taxes $ 275,000 $ 275,000 $ — Charges for service — 340,104 340,104 Investment earnings 13,200 11,211 (1,989) Total revenues 288,200 626,315 338,115 Expenditures Current Public works — 1,770 1,770 Debt service Interest and fiscal charges — 15,250 15,250 Total expenditures — 17,020 17,020 Excess of revenues over expenditures 288,200 609,295 321,095 Other financing sources Transfers in 299,153 — (299,153) Net change in fund balances $ 587,353 609,295 $ 21,942 Fund balances Beginning of year 3,604,416 End of year $ 4,213,711 -111- CITY OF FARMINGTON Recreation Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings(charges) $ 900 $ (144) $ (1,044) Other Donations 15,000 37,931 22,931 Total revenues 15,900 37,787 21,887 Expenditures Current Parks and recreation 18,500 17,110 (1,390) Capital outlay Parks and recreation 6,000 91,369 85,369 Total expenditures 24,500 108,479 83,979 Net change in fund balances $ (8,600) (70,692) $ (62,092) Fund balances Beginning of year 214,513 End of year $ 143,821 -112- CITY OF FARMINGTON Permanent Improvement Revolving Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Special assessments $ — $ 9,048 $ 9,048 Investment earnings(charges) 1,200 (477) (1,677) Total revenues 1,200 8,571 7,371 Net change in fund balances $ 1,200 8,571 $ 7,371 Fund balances Beginning of year 179,782 End of year $ 188,353 -113- CITY OF FARMINGTON General Capital Equipment Capital Projects Fund Budgetary Comparison Schedule Year Ended December 31,2021 Original and Variance With Final Budget Actual Final Budget Revenues Investment earnings $ 7,000 $ 345 $ (6,655) Other Miscellaneous — 790 790 Total revenues 7,000 1,135 (5,865) Expenditures Current Public safety — 525 525 Capital outlay Public safety 511,148 677,544 166,396 Total expenditures 511,148 678,069 166,921 Excess(deficiency)of revenues over expenditures (504,148) (676,934) (172,786) Other financing sources Sale of capital assets — 41,020 41,020 Transfers in 310,534 310,534 — Total other financing sources 310,534 351,554 41,020 Net change in fund balances $ (193,614) (325,380) $ (131,766) Fund balances Beginning of year 746,674 End of year $ 421,294 -114- THIS PAGE INTENTIONALLY LEFT BLANK INTERNAL SERVICE FUNDS Employee Expense— Used to account for the costs of employer-paid benefits, including pension, Social Security,health, life and dental insurance, and workers' compensation insurance. 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. -115- CITY OF FARMINGTON Internal Service Funds Combining Statement of Net Position as of December 31,2021 Property Employee and Liability Information Expense Insurance Fleet Technology Total Assets Current assets Cash and investments $ 1,804,035 $ 496,330 $ 191,591 $ 726,429 $ 3,218,385 Receivables Accounts - 6,086 5,827 4,576 16,489 Interest 4,393 1,279 494 1,872 8,038 Prepaid items - - - 45,684 45,684 Total current assets 1,808,428 503,695 197,912 778,561 3,288,596 Noncurrent assets Capital assets Machinery and equipment - - 99,124 - 99,124 Less accumulated depreciation - - (90,533) - (90,533) Total capital assets - - 8,591 - 8,591 Total assets $ 1,808,428 $ 503,695 $ 206,503 $ 778,561 $ 3,297,187 Current liabilities Accounts and contracts payable $ 90,841 $ - $ - $ - $ 90,841 Accrued salaries and employee benefits payable 257,620 - - - 257,620 Deposits payable 2,963 - - - 2,963 Compensated absences payable - - 30,722 13,167 43,889 Total current liabilities 351,424 - 30,722 13,167 395,313 Net position Investment in capital assets - - 8,591 - 8,591 Unrestricted 1,457,004 503,695 167,190 765,394 2,893,283 Total net position 1,457,004 503,695 175,781 765,394 2,901,874 Total liabilities and net position $ 1,808,428 $ 503,695 $ 206,503 $ 778,561 $ 3,297,187 -116- CITY OF FARMINGTON Internal Service Funds Combining Statement of Revenues,Expenses, and Changes in Fund Net Position Year Ended December 31,2021 Property Employee and Liability Information Expense Insurance Fleet Technology Total Operating revenues Charges for services $ 2,820,549 $ - $ 300,840 $ 618,476 $ 3,739,865 Insurance reimbursement - 331,118 - - 331,118 Total operating revenues 2,820,549 331,118 300,840 618,476 4,070,983 Operating expenses Personal services 2,622,108 - 223,897 217,660 3,063,665 Professional services 2,207 - 34,790 323,605 360,602 Materials and supplies - - 37,234 25,230 62,464 Insurance - 307,947 - - 307,947 Depreciation - - 7,895 - 7,895 Total operating expenses 2,624,315 307,947 303,816 566,495 3,802,573 Operating income(loss) 196,234 23,171 (2,976) 51,981 268,410 Nonoperating revenue Intergovernmental 1,720 - - - 1,720 Investment earnings(charges) (5,723) (1,952) (311) (1,298) (9,284) Gain on sale of capital assets - - - 27 27 Total nonoperating revenue (4,003) (1,952) (311) (1,271) (7,537) Income(loss)before transfers 192,231 21,219 (3,287) 50,710 260,873 Transfers in 13,022 10,476 23,498 Change in net position 205,253 31,695 (3,287) 50,710 284,371 Net position Beginning of year 1,251,751 472,000 179,068 714,684 2,617,503 End of year $ 1,457,004 $ 503,695 $ 175,781 $ 765,394 $ 2,901,874 -117- CITY OF FARMINGTON Internal Service Funds Combining Statement of Cash Flows Year Ended December 31,2021 Property Employee and Liability Information Expense Insurance Fleet Technology Total Cash flows from operating activities Cash receipts from other funds and reimbursements $ 2,820,549 $ 325,032 $ 295,013 $ 613,900 $ 4,054,494 Cash payments to employees for services (2,582,114) - (218,162) (214,340) (3,014,616) Cash payments for interfund services used (2,207) (307,947) (89,847) (395,417) (795,418) Net cash flows from operating activities 236,228 17,085 (12,996) 4,143 244,460 Cash flows from noncapital financing activities Intergovernmental 1,720 - - - 1,720 Transfers in 13,022 10,476 - - 23,498 Net cash flows from noncapital financing activities 14,742 10,476 - - 25,218 Cash flows from capital and related financing activities Acquisition and construction of capital assets (5,500) - (5,500) Proceeds from the disposal of capital assets - - - 27 27 Net cash flows from capital and related financing activities - - (5,500) 27 (5,473) Cash flows from investing activities Interest received and changes in fair value on investments (6,695) (2,198) (343) (1,608) (10,844) Net increase(decrease)in cash and cash equivalents 244,275 25,363 (18,839) 2,562 253,361 Cash and cash equivalents Beginning of year 1,559,760 470,967 210,430 723,867 2,965,024 End of year $ 1,804,035 $ 496,330 $ 191,591 $ 726,429 $ 3,218,385 Reconciliation of operating income(loss)to net cash flows from operating activities Operating income(loss) $ 196,234 $ 23,171 $ (2,976) $ 51,981 $ 268,410 Adjustments to reconcile operating income(loss) to net cash flows from operating activities Depreciation - - 7,895 - 7,895 Change in assets and liabilities Accounts receivable - (6,086) (5,827) (4,576) (16,489) Prepaid items - - - (39,422) (39,422) Accounts and contracts payable (45,017) - (17,823) (7,160) (70,000) Accrued salaries and employee benefits 85,735 - - - 85,735 Deposits payable (724) - - - (724) Compensated absences payable - - 5,735 3,320 9,055 Total adjustments 39,994 (6,086) (10,020) (47,838) (23,950) Net cash flows from operating activities $ 236,228 $ 17,085 $ (12,996) $ 4,143 $ 244,460 -118- STATISTICAL SECTION (UNAUDITED) STATISTICAL TABLES (UNAUDITED) This part of the City's Annual Comprehensive Financial Report(ACFR) presents detailed information as a context for understanding this year's financial statements, note disclosures, and supplementary information. This information has not been audited by the independent auditor. The contents of the statistical section include: Financial Trends–These tables contain trend information that may assist the reader in assessing the City's current financial performance by placing it in historical perspective. Revenue Capacity – These 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 ACFR for the relevant year. -119- CITY OF FARMINGTON Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2012 2013 2014 2015 Governmental activities Net investment in capital assets $ 21,263,670 $ 23,462,934 $ 23,383,175 $ 21,417,203 Restricted 11,034,909 11,669,054 9,235,448 9,063,587 Unrestricted 11,131,928 9,628,139 13,150,789 8,920,144 Total governmental activities net position $ 43,430,507 $ 44,760,127 $ 45,769,412 $ 39,400,934 Business-type activities Net investment in capital assets $ 58,728,008 $ 57,427,060 $ 55,685,476 $ 54,807,938 Restricted 2,159,566 2,159,566 2,160,566 2,160,566 Unrestricted 7,845,545 8,891,769 10,396,218 11,439,369 Total business-type activities net position $ 68,733,119 $ 68,478,395 $ 68,242,260 $ 68,407,873 Primary government Net investment in capital assets $ 79,991,678 $ 80,889,994 $ 79,068,651 $ 76,225,141 Restricted 13,194,475 13,828,620 11,396,014 11,224,153 Unrestricted 18,977,473 18,519,908 23,547,007 20,359,513 Total primary government net position $112,163,626 $113,238,522 $114,011,672 $107,808,807 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- 2016 2017 2018 2019 2020 2021 $ 23,684,773 $ 28,820,307 $ 32,909,853 $ 33,867,761 $ 35,883,311 $ 36,819,084 10,441,391 6,961,837 4,797,191 5,343,074 5,224,015 9,841,913 5,142,435 6,576,959 7,997,614 8,001,782 9,236,760 11,591,481 $ 39,268,599 $ 42,359,103 $ 45,704,658 $ 47,212,617 $ 50,344,086 $ 58,252,478 $ 53,225,787 $ 51,464,649 $ 50,747,479 $ 53,677,776 $ 51,976,059 $ 50,773,632 2,231,966 2,238,206 2,316,500 2,461,488 2,461,488 2,461,488 12,575,526 13,508,485 14,594,293 13,187,014 15,418,911 18,123,198 $ 68,033,279 $ 67,211,340 $ 67,658,272 $ 69,326,278 $ 69,856,458 $ 71,358,318 $ 76,910,560 $ 80,284,956 $ 83,657,332 $ 87,545,537 $ 87,859,370 $ 87,592,716 12,673,357 9,200,043 7,113,691 7,804,562 7,685,503 12,303,401 17,717,961 20,085,444 22,591,907 21,188,796 24,655,671 29,714,679 $107,301,878 $109,570,443 $113,362,930 $116,538,895 $120,200,544 $129,610,796 -121- CITY OF FARMINGTON Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2012 2013 2014 2015 Expenses Governmental activities General government $ 1,865,415 $ 1,778,549 $ 1,940,630 $ 2,284,974 Public safety 4,989,522 5,156,950 5,192,091 5,357,738 Public works 3,063,908 3,849,742 4,893,341 7,473,095 Park and recreation 1,719,254 1,775,967 1,730,734 1,815,882 Economic development 44,114 50,000 49,417 90,000 Interest and fiscal charges 1,302,605 1,290,439 1,020,096 992,422 Total governmental activities expenses $ 12,984,818 $ 13,901,647 $ 14,826,309 $ 18,014,111 Business-type activities Liquor operations $ 4,116,030 $ 4,206,058 $ 4,315,834 $ 4,352,597 Sewer operations 1,891,872 1,627,927 1,712,146 1,875,225 Solid waste 1,727,384 1,658,547 1,600,434 1,658,128 Storm water 734,516 513,582 615,684 731,444 Water 1,705,167 1,427,298 1,410,214 1,339,588 Streetlight 176,513 184,834 174,957 173,212 Total business-type activities 10,351,482 9,618,246 9,829,269 10,130,194 Total primary government expenses $ 23,336,300 $ 23,519,893 $ 24,655,578 $ 28,144,305 Program revenues Governmental activities Charges for services General government $ 436,113 $ 684,528 $ 534,008 $ 399,053 Public safety 423,721 482,759 409,460 351,038 Public works 225,497 115,092 94,416 9,624 Parks and recreation 581,341 596,165 607,566 604,111 Operating grants and contributions 533,939 713,378 677,999 649,541 Capital grants and contributions 4,976,219 645,233 477,833 671,671 Total governmental activities program revenues $ 7,176,830 $ 3,237,155 $ 2,801,282 $ 2,685,038 -122- 2016 2017 2018 2019 2020 2021 $ 2,268,779 $ 2,178,067 $ 2,511,818 $ 2,609,059 $ 2,933,062 $ 2,560,243 6,979,608 6,472,115 5,728,925 6,118,203 6,834,253 6,549,508 5,497,796 3,888,778 4,358,465 5,612,872 5,262,979 3,977,134 1,904,792 1,782,783 1,772,351 2,202,631 1,430,839 2,789,326 40,000 40,000 30,000 50,000 276,900 406,795 1,032,748 549,075 350,431 404,893 193,167 189,858 $ 17,723,723 $ 14,910,818 $ 14,751,990 $ 16,997,658 $ 16,931,200 $ 16,472,864 $ 4,448,932 $ 4,634,488 $ 4,890,304 $ 5,257,236 $ 4,958,705 $ 5,256,311 2,051,152 2,105,901 1,931,276 2,326,630 2,334,000 2,459,637 1,753,162 1,864,175 2,092,844 1,913,258 2,630,874 2,566,976 534,988 571,572 521,465 557,749 530,438 581,402 1,359,215 1,313,482 1,246,667 1,439,178 1,626,279 1,764,908 288,924 197,150 180,254 165,886 173,604 180,528 10,436,373 10,686,768 10,862,810 11,65 9,937 12,253,900 12,809,762 $ 28,160,096 $ 25,597,586 $ 25,614,800 $ 28,657,595 $ 29,185,100 $ 29,282,626 $ 668,849 $ 434,411 $ 467,417 $ 471,569 $ 631,118 $ 855,812 459,240 405,648 408,434 437,054 413,594 560,518 195,716 76,049 273,695 189,282 201,401 708,197 651,936 619,026 709,490 582,631 389,870 987,028 744,730 684,376 702,853 838,569 713,470 1,062,789 818,545 848,167 942,627 869,849 50,478 4,106,221 $ 3,539,016 $ 3,067,677 $ 3,504,516 $ 3,388,954 $ 2,399,931 $ 8,280,565 -123- CITY OF FARMINGTON Changes in Net Position Last Ten Fiscal Years(continued) (accrual basis of accounting) Fiscal Year 2012 2013 2014 2015 Program revenues(continued) Business-type activities Charges for services Liquor operations $ 4,397,572 $ 4,521,454 $ 4,639,194 $ 4,607,417 Sewer operations 1,787,957 1,816,763 1,843,746 1,957,902 Solid waste 1,869,426 1,952,177 1,979,623 1,991,179 Storm water 475,060 565,166 559,327 670,353 Water 1,595,116 1,558,400 1,499,091 1,439,873 Street light 215,029 216,719 219,052 222,159 Operating grants and contributions 20,010 19,300 21,000 22,000 Capital grants and contributions 100,525 108,642 - 945,938 Total business-type activities program revenues 10,460,695 10,758,621 10,761,033 11,856,821 Total primary government program revenues $ 17,637,525 $ 13,995,776 $ 13,562,315 $ 14,541,859 Net(expense)revenue Governmental activities $ (5,807,988) $(10,664,492) $(12,025,027) $(15,329,073) Business-type activities 109,213 1,140,375 931,764 1,726,627 Total primary government net expense $ (5,698,775) $ (9,524,117) $(11,093,263) $(13,602,446) General revenues and other changes in net position Governmental activities Property taxes $ 10,897,074 $ 10,748,581 $ 10,962,860 $ 11,460,209 Franchise taxes 243,635 259,671 269,208 265,485 Unrestricted grants and contributions 1,816 24,845 257,386 278,974 Unrestricted investment earnings(charges) 77,276 (32,408) 130,739 189,540 Gain on sale of capital assets - 18,268 - - Transfers 909,284 1,410,114 1,414,119 1,222,807 Total governmental activities $ 12,129,085 $ 12,429,071 $ 13,034,312 $ 13,417,015 Business-type activities Unrestricted grants and contributions $ - $ - $ - $ - Unrestricted investment earnings(charges) 110,549 (40,071) 246,220 152,954 Gain on disposal of capital assets - 55,086 - - Transfers (909,284) (1,410,114) (1,414,119) (1,222,807) Total business-type activities (798,735) (1,395,099) (1,167,899) (1,069,853) Total primary government $ 11,330,350 $ 11,033,972 $ 11,866,413 $ 12,347,162 Change in net position Governmental activities $ 6,321,097 $ 1,764,579 $ 1,009,285 $ (1,912,058) Business-type activities (689,522) (254,724) (236,135) 656,774 Total primary government $ 5,631,575 $ 1,509,855 $ 773,150 $ (1,255,284) -124- 2016 2017 2018 2019 2020 2021 $ 4,742,313 $ 4,967,468 $ 5,256,645 $ 5,608,012 $ 5,347,194 $ 5,724,828 2,043,859 2,068,388 2,045,728 2,117,934 2,160,808 2,264,006 2,041,561 2,061,324 2,071,672 2,244,569 2,692,155 2,858,958 643,479 647,767 737,115 1,130,563 1,149,665 1,158,564 1,631,643 1,681,079 1,852,381 2,281,793 2,533,753 3,251,453 224,781 225,570 226,674 226,971 232,990 232,378 23,000 24,000 30,263 34,190 26,710 240,598 - - - 81,634 - 476,930 11,350,636 11,675,596 12,220,478 13,725,666 14,143,275 16,207,715 $ 14,889,652 $ 14,743,273 $ 12,220,478 $ 13,807,300 $ 14,143,275 $ 16,684,645 $(14,184,707) $(11,843,141) $(11,247,474) $(13,608,704) $(14,531,269) $ (8,192,299) 914,263 988,828 1,357,668 2,065,729 1,889,375 3,397,953 $(13,270,444) $(10,854,313) $ (9,889,806) $(11,542,975) $(12,641,894) $ (4,794,346) $ 11,806,302 $ 12,181,830 $ 12,659,480 $ 12,916,115 $ 13,044,381 $ 13,692,990 275,691 266,728 266,324 262,148 244,839 229,355 287,252 289,854 316,100 317,172 2,042,381 107,962 255,021 200,851 239,714 657,977 526,283 (91,107) - 54,408 531 17,218 16,174 - 1,428,106 1,939,974 1,110,880 946,033 1,788,680 1,831,571 $ 14,052,372 $ 14,933,645 $ 14,593,029 $ 15,116,663 $ 17,662,738 $ 15,770,771 $ - $ - $ - $ - $ 18,136 $ - 139,249 129,207 200,144 548,310 411,349 (64,522) (1,428,106) (1,939,974) (1,110,880) (946,033) (1,788,680) (1,831,571) (1,288,857) (1,810,767) (910,736) (397,723) (1,359,195) (1,896,093) $ 12,763,515 $ 13,122,878 $ 13,682,293 $ 14,718,940 $ 16,303,543 $ 13,874,678 $ (132,335) $ 3,090,504 $ 3,345,555 $ 1,507,959 $ 3,131,469 $ 7,578,472 (374,594) (821,939) 446,932 1,668,006 530,180 1,501,860 $ (506,929) $ 2,268,565 $ 3,792,487 $ 3,175,965 $ 3,661,649 $ 9,080,332 -125- CITY OF FARMINGTON Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2012 2013 2014 2015 General Fund Nonspendable $ 612,518 $ 13,388 $ 33,369 $ 6,034 Committed — — — — Assigned — — 81,000 4,250 Unassigned 2,067,246 3,079,013 3,993,191 4,734,534 Total General Fund $ 2,679,764 $ 3,092,401 $ 4,107,560 $ 4,744,818 All other governmental funds Nonspendable $ 146 $ — $ 160 $ 150 Restricted 2,950,166 6,881,858 5,673,161 5,776,314 Committed — 8,025,185 Assigned 9,134,820 7,865,678 7,531,076 — Unassigned — — — — Total all other governmental funds $ 12,085,132 $ 14,747,536 $ 13,204,397 $ 13,801,649 Total all funds $ 14,764,896 $ 17,839,937 $ 17,311,957 $ 18,546,467 Note: The City modified its fund balance policy in 2015,resulting in an increase in committed fund balances. -126- 2016 2017 2018 2019 2020 2021 $ 33,762 $ 34,529 $ 5,045 $ 109,523 $ 141,196 $ 83,088 - - 240,000 - - - 5,031,529 5,666,183 5,477,026 5,761,747 6,060,870 6,843,396 $ 5,065,291 $ 5,700,712 $ 5,722,071 $ 5,871,270 $ 6,202,066 $ 6,926,484 $ 110 $ - $ - $ - $ 1,184,677 $ 1,365 16,959,150 4,071,837 2,009,629 3,196,214 3,235,717 4,411,713 5,158,828 6,373,022 7,586,959 7,298,103 8,427,605 8,876,306 - - - - - (29,832) $ 22,118,088 $ 10,444,859 $ 9,596,588 $ 10,494,317 $ 12,847,999 $ 13,259,552 $ 27,183,379 $ 16,145,571 $ 15,318,659 $ 16,365,587 $ 19,050,065 $ 20,186,036 -127- CITY OF FARMINGTON Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2012 2013 2014 2015 Revenues Property taxes $ 11,112,325 $ 10,808,636 $ 11,031,219 $ 11,462,986 Franchise taxes 243,635 259,671 269,208 265,485 Special assessments 3,296,216 913,313 821,331 661,187 Licenses and permits 423,153 664,673 514,728 370,889 Intergovernmental 556,496 1,329,395 1,011,221 2,097,509 Charges for services 1,015,835 865,736 890,281 820,445 Fines and forfeits 73,210 81,919 65,482 52,299 Investment earnings (charges) 158,657 46,707 130,739 172,818 Other 222,083 233,808 174,959 160,193 Total revenues 17,101,610 15,203,858 14,909,168 16,063,811 Expenditures Current General government 1,830,470 1,686,263 1,717,994 1,947,768 Public safety 4,702,399 4,850,400 4,871,745 5,131,076 Public works 1,402,838 2,081,956 2,038,161 1,971,079 Park and recreation 1,427,257 1,530,238 1,448,951 1,538,452 Economic development 91,165 50,000 49,417 90,000 Capital outlay 555,293 1,290,875 1,839,726 4,695,581 Debt service Principal 2,912,213 7,394,424 2,376,739 2,899,162 Interest and fiscal charges 1,336,414 1,379,551 1,096,007 1,041,780 Total expenditures 14,258,049 20,263,707 15,438,740 19,314,898 Excess(deficiency)of revenues over expenditures 2,843,561 (5,059,849) (529,572) (3,251,087) Other financing sources(uses) Debt issued - 7,088,037 - 3,184,641 Payment of refunded debt - - (1,435,000) - Sale of capital assets 105,746 26,154 22,473 157,599 Transfers in 3,997,318 7,492,556 2,330,331 5,937,539 Transfers out (3,088,034) (6,082,442) (916,212) (4,794,182) Total other financing sources(uses) 1,015,030 8,524,305 1,592 4,485,597 Net change in fund balances $ 3,858,591 $ 3,464,456 $ (527,980) $ 1,234,510 Debt service as a percentage of noncapital expenditures 31.0% 46.2% 24.8% 21.0% -128- 2016 2017 2018 2019 2020 2021 $ 11,852,567 $ 12,186,789 $ 12,665,721 $ 12,926,730 $ 13,049,745 $ 13,700,787 275,691 266,728 266,324 262,148 244,839 229,355 545,777 532,744 314,594 625,308 407,412 279,579 650,311 415,005 449,350 421,578 588,347 789,965 1,633,388 1,632,170 1,768,219 1,796,575 2,948,939 1,257,177 1,077,860 929,784 1,094,360 1,042,292 890,408 1,697,708 41,750 45,102 60,182 63,561 45,959 52,340 237,224 183,402 209,968 567,539 455,233 (81,823) 260,564 201,288 305,014 226,316 161,687 600,280 16,575,132 16,393,012 17,133,732 17,932,047 18,792,569 18,525,368 1,996,410 2,051,143 2,311,024 2,407,932 2,637,945 2,693,428 5,301,211 5,537,937 5,348,888 5,705,820 5,917,499 6,438,859 2,006,606 2,381,695 2,690,271 3,272,313 2,794,566 2,639,935 1,513,411 1,585,656 1,595,924 1,855,261 1,560,781 1,884,846 40,000 40,000 30,000 50,000 276,900 385,434 2,755,780 586,495 1,597,191 4,715,989 2,664,884 3,045,812 4,411,534 6,395,000 5,180,000 2,435,000 2,910,000 2,155,000 1,095,380 818,144 503,061 412,373 397,231 368,738 19,120,332 19,396,070 19,256,359 20,854,688 19,159,806 19,612,052 (2,545,200) (3,003,058) (2,122,627) (2,922,641) (367,237) (1,086,684) 10,120,095 - - 1,009,555 1,279,300 - - (9,990,000) - - - - 13,043 54,408 11,000 18,939 12,867 84,662 5,590,211 2,981,402 3,214,991 4,280,247 4,263,090 2,854,791 (4,541,237) (1,080,560) (1,930,276) (1,339,172) (2,503,542) (1,046,718) 11,182,112 (8,034,750) 1,295,715 3,969,569 3,051,715 1,892,735 $ 8,636,912 $ (11,037,808) $ (826,912) $ 1,046,928 $ 2,684,478 $ 806,051 29.5% 37.9% 31.3% 16.5% 18.5% 14.1% -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 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) 2021 20,067,551 3,129,074 519,937 266,742 (106,443) 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 $ (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 (996,932) 4,468,538 27,348,467 49.251 2,247,736,496 1.22 -131- CITY OF FARMINGTON Property Tax Rates(1) Direct and Overlapping Governments Last Ten Fiscal Years City Direct Rates Overlapping Rates(2) Total Direct and Fiscal Debt Total Dakota Other Special Overlapping Year Operating Service City County ISD No. 192 Districts Tax Rate 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 2021 38.300 10.951 49.251 22.710 50.796 2.764 125.521 N/A-Not Available (1) Information reflects total tax rates levied by each entity. Tax rates are expressed in terms of"net tax capacity." A property's tax capacity is determined by multiplying its taxable market value by a state determined class rate. Class rates vary by property type and change periodically based on state legislation. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all of the City's property owners. Source: Dakota County -132- CITY OF FARMINGTON Principal Property Taxpayers Current Fiscal Year and Nine Years Prior 2021 2012 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 $ 482,632 1 2.01 % $ 404,148 1 2.74 % Xcel Energy(Northern States Power) 207,000 2 0.86 206,050 2 1.40 Dakota Electric Association 155,540 3 0.65 141,788 3 0.96 Legacy Partners of Farmington LLC 107,724 4 0.45 — — — Dakota Storage,LLC 92,014 5 0.38 83,378 9 0.56 Valmont Industries 88,692 6 0.37 — — — Minnesota Energy Resources 87,188 7 0.36 — — — POR-MKR Real Estate,LLC 74,958 8 0.31 — — — RLR Investments,LLC 74,370 9 0.31 — — — Seeger Properties,LLC 72,969 10 0.30 — — — St.Francis Health Systems 129,831 4 0.88 Builder's Development and Finance — — — 109,968 5 0.74 Farmington City Center,LLC — — — 99,058 6 0.67 Valley Mining,LLC — — — 92,250 7 0.62 Farmington Land,LLC 88,358 8 0.60 Castle Rock Development — — — 73,674 10 0.50 Total $ 1,443,087 6.02 % $1,428,503 9.68 % 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 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 60,558 11,716,942 99.99 2017 12,133,656 12,073,701 99.51 59,735 12,133,436 100.00 2018 12,681,188 12,601,932 99.38 75,562 12,677,494 99.97 2019 13,020,768 12,950,561 99.46 62,766 13,013,327 99.94 2020 13,036,578 12,967,610 99.47 55,600 13,023,210 99.90 2021 13,546,213 13,476,144 99.48 — 13,476,144 99.48 (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) 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 2021 6,655,000 1,500,000 — 1,105,000 447,152 N/A—Not Applicable 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. -135- Business-Type Activities Net Total Percentage Revenue Premiums Primary of Personal Bonds (Discounts) Government Per Capita Income $ 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 3.0 — — 20,555,061 920 1.6 — — 15,281,475 682 1.1 720,000 90,856 14,562,916 636 1.0 655,000 80,944 12,729,773 551 0.9 595,000 71,032 10,373,184 439 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 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 2021 6,655,000 1,296,028 5,358,972 2,247,736,496 0.24 N/A—Not Applicable (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. 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 $ 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 1.38 544 18,171,280 56.61 22,343 1.41 460 19,457,656 38.88 22,421 1.43 337 21,083,287 34.21 22,880 1.49 315 22,295,554 28.23 23,123 1.49 272 23,983,304 22.34 23,632 N/A 227 -138- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Direct and Overlapping Governmental Activities Debt December 31,2021 Estimated Estimated Share of Net Debt Percentage Overlapping Governmental Unit Outstanding Applicable(1) Debt Overlapping debt Dakota County $ 77,475,000 4.043 % $ 3,132,301 ISD No. 192,Farmington 151,275,000 59.581 90,131,626 ISD No. 196,Rosemount—Apple Valley—Eagan 110,985,000 0.004 3,968 Metropolitan Council(2) 193,320,000 4.055 7,839,312 Total overlapping debt 533,055,000 101,107,207 Direct debt City of Farmington direct debt 9,707,152 100.000 9,707,152 Total direct and overlapping debt $ 542,762,152 $ 110,814,359 (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) 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 ACFRs -139- CITY OF FARMINGTON Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2012 2013 2014 2015 Debt limit $ 40,338,008 $ 37,998,037 $ 39,352,574 $ 44,279,096 Total net debt applicable to the limit 15,916,859 15,442,435 14,520,696 16,496,534 Legal debt margin $ 24,421,149 $ 22,555,602 $ 24,831,878 $ 27,782,562 Total net debt applicable to the limit as a percentage of debt limit 39.46% 40.64% 36.90% 37.26% -140- 2016 2017 2018 2019 2020 2021 $ 48,043,247 $ 50,558,628 $ 54,324,795 $ 59,069,079 $ 62,796,446 $ 67,432,095 20,115,000 12,455,000 9,155,000 8,865,000 7,550,000 6,655,000 $ 27,928,247 $ 38,103,628 $ 45,169,795 $ 50,204,079 $ 55,246,446 $ 60,777,095 41.87% 24.63% 16.85% 15.01% 12.02% 9.87% Legal Debt Margin Calculations for Fiscal Year 2021 Market value $2,247,736,496 Debt limit(3%of market value) 67,432,095 Debt applicable to the limit 6,655,000 Legal debt margin $ 60,777,095 -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 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 from 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 2021 2,908,352 (755,497) 2,152,855 60,000 29,550 89,550 2,404.08 N/A—Not Applicable (a) Fiscal year 2012 includes gross revenues of the Sewer Operations Fund. Fiscal years 2019-2021 include 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. -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) 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 1,251,486,093 55,743 2017 22,343 7,691 7,126 2.7 1,287,805,834 57,638 2018 22,421 7,779 7,138 2.7 1,357,344,919 60,539 2019 22,880 7,925 7,143 3.0 1,418,033,760 61,977 2020 23,123 7,926 6,996 4.3 1,497,168,004 64,748 2021 23,632 7,906 6,825 2.4 N/A N/A N/A-Not Applicable (1) Numbers for 2012-2015 are from the Farmington Building Inspections Department.The 2016-2021 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) ISD No. 192,Farmington Public Schools-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. -143- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON Principal Employers Current Fiscal Year and Nine Years Prior 2021 2012 Percentage of Total Percentage Employees Employment Employees of Total Taxpayer (1) Rank (2) (1) Rank Employment ISD No. 192,Farmington Public Schools 900 1 20.3 % 800 1 18.1 % Federal Aviation Administration 498 2 11.2 460 2 10.4 Installed Building Solutions 290 3 6.5 — — — Trinity Care Center and Trinity Terrace 234 4 5.3 138 5 3.1 City of Farmington 232 5 5.2 86 10 1.9 Dakota Electric Association 196 6 4.4 210 3 4.7 R&L Carriers 175 7 3.9 95 9 2.1 Marshall Lines,Inc. 160 8 3.6 193 4 4.4 Valmont Industries 142 9 3.2 115 7 2.6 Kemps Dairy 130 10 2.9 124 6 2.8 River Valley Home Care — — — 110 8 2.5 Total 2,957 66.7 % 2,331 52.7 % (1) Per City of Farmington records. (2) Metropolitan Council Employment by Community as of 2020(latest available),4,431 total employment. -144- CITY OF FARMINGTON Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year 2012 2013 2014 2015 General government Administration 5.25 3.50 3.50 3.00 Finance 2.50 4.00 4.00 4.50 Human resources/information technology/communications 1.80 3.00 3.00 3.00 Community development 1.00 2.00 2.50 2.50 Total general government 10.55 12.50 13.00 13.00 Public safety Police administration 6.15 5.15 5.15 5.15 Police patrol 16.50 18.00 17.00 17.00 Investigations 6.50 5.00 5.00 5.00 Fire 1.40 1.40 1.40 1.50 Total public safety 30.55 29.55 28.55 28.65 Public works Building inspections 2.93 2.50 2.50 2.50 Engineering 2.34 5.10 4.60 4.50 Streets 4.68 10.00 10.00 9.00 Snowplowing 0.45 - - - Natural resources 1.02 1.00 1.00 1.00 Total public works 11.42 18.60 18.10 17.00 Parks and recreation Park maintenance 4.44 3.50 3.50 3.50 Building maintenance - 1.00 1.00 1.00 Recreation programming 2.00 2.00 2.00 2.00 Total parks and recreation 6.44 6.50 6.50 6.50 Senior center 1.10 1.50 1.50 1.00 Swimming pool 0.40 0.40 0.40 0.40 Arena 2.11 2.35 2.35 2.35 Liquor operations 7.25 7.25 7.50 8.00 Sewer 2.59 - - - Solid waste 6.38 5.00 5.00 5.00 Storm water utility 2.93 - - - Water 3.83 - - - Fleet 1.00 2.00 2.00 2.00 Total employees 86.55 85.65 84.90 83.90 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- 2016 2017 2018 2019 2020 2021 2.00 1.00 1.00 1.00 1.00 2.00 5.50 5.50 5.50 5.50 5.50 5.50 3.00 4.00 5.00 5.00 5.00 5.00 3.00 3.00 4.00 5.00 4.00 4.00 13.50 13.50 15.50 16.50 15.50 16.50 5.15 5.15 5.00 5.00 5.00 5.00 17.00 17.00 15.00 16.00 17.00 17.00 5.00 5.00 6.00 6.00 6.00 6.00 1.50 1.50 1.00 2.00 2.00 2.00 28.65 28.65 27.00 29.00 30.00 30.00 3.20 3.50 3.50 3.00 4.00 4.00 4.50 5.50 4.50 5.00 5.00 5.00 9.50 9.50 9.00 10.00 10.00 10.00 1.00 - 1.00 1.00 - - 18.20 18.50 18.00 19.00 19.00 19.00 3.50 3.60 4.00 4.00 4.00 4.00 1.00 1.00 1.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 6.50 6.60 7.00 9.00 9.00 9.00 1.40 1.40 1.00 1.00 1.50 1.50 0.40 0.40 - - - - 2.35 2.35 2.00 2.00 2.00 2.00 8.00 8.00 9.50 9.00 13.00 13.00 5.50 5.50 5.50 5.00 5.00 5.00 2.00 2.00 2.00 2.00 2.00 2.00 86.50 86.90 87.50 92.50 97.00 98.00 -146- CITY OF FARMINGTON Operating Indicators by Function Last Ten Years Fiscal Year Function/Program 2012 2013 2014 2015 General government Elections 1 N/A 1 N/A Registered voters 13,358 N/A 12,541 N/A Number of votes cast 11,185 N/A 6,419 N/A Voter participation(registered) 84.0% N/A 51.0% N/A Public safety Police Arrests 435 403 266 153 All citations and warnings 4,359 4,517 3,383 2,494 Calls for service 15,094 13,138 13,035 12,085 Fire Medical calls 290 323 386 359 Fire calls 254 235 241 361 Inspections Building permits 818 679 711 619 Value of building permits(in millions) $ 17 $ 35 $ 24 $ 15 Parks and recreation Parks Park reservations 69 65 66 66 Pool(closed after 2017) Pool open swim admissions 13,069 11,566 8,032 7,652 Pool swim lesson registrations 407 308 267 256 Pool season passes sold 89 78 N/A N/A Pool punch cards sold 130 154 193 176 Swim bus riders 641 786 408 536 Rambling River Center Memberships 428 435 406 381 Program participation 16,198 16,875 15,285 13,885 Number of volunteers 152 94 130 107 Total volunteer hours 3,741 4,780 4,348 5,944 Ice arena Ice skating lessons total participants 200 215 230 216 Arena rental hours 1,197 1,147 1,197 1,315 Outdoor rinks total number of skaters 5,259 7,819 7,481 7,851 Other Recreation program/event participants 6,607 6,971 6,425 5,976 Youth scholarships provided 22 25 7 4 N/A-Not Available Source: Various city departments -147- 2016 2017 2018 2019 2020 2021 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% N/A 351 281 284 253 232 268 2,070 2,021 2,484 2,176 2,319 1,982 11,943 11,221 13,033 14,005 15,413 11,361 356 452 411 480 467 712 345 407 340 370 284 353 1,184 1,036 1,059 1,049 1,318 1,705 $ 38 $ 19 $ 26 $ 22 $ 27 $ 40 81 71 64 59 - 78 7,372 6,302 - - - - 309 136 - - - - NA N/A - - - - 125 139 - - - - 507 496 - - - - 404 467 497 372 305 471 13,042 15,203 16,015 17,730 3,651 8,728 82 80 69 74 31 57 8,573 4,298 3,426 3,749 347 1,732 329 284 296 310 122 221 1,285 1,490 1,380 1,390 1,191 1,641 5,187 7,276 5,451 3,892 4,209 4,142 8,344 8,171 7,034 5,657 361 5,927 6 8 1 - - 1 -148- CITY OF FARMINGTON Capital Assets Statistics by Function/Program Last Ten Years Fiscal Year Function/Program 2012 2013 2014 2015 Public safety Police Stations 1 1 1 1 Patrol squads 17 17 16 16 Fire Stations 2 2 2 2 Fire trucks 7 7 6 6 Public works Vehicles 20 21 21 24 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 23 23 Liquor operations Store—building — — — — Solid waste Compactor trucks 6 5 5 5 Sanitary sewer Collection system(miles) 84 84 84 84 Storm sewer Storm sewer(miles) 71 71 71 73 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- 2016 2017 2018 2019 2020 2021 1 1 1 1 1 1 15 15 16 19 19 19 2 2 2 2 2 2 8 8 8 8 8 8 29 29 29 30 31 31 89 89 89 89 90 90 1 1 1 1 1 1 1 1 - - - - 1 1 1 1 1 1 23 23 24 26 26 26 5 5 5 5 6 6 84 90 90 87 90 92 73 78 78 78 81 84 109 113 113 113 116 119 7 7 7 8 9 9 2 2 2 2 2 2 -150- THIS PAGE INTENTIONALLY LEFT BLANK Management Report for City of Farmington,Minnesota December 31, 2021 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 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, 2021. We have organized this report into the following sections: • Audit Summary • Governmental Funds Overview • Enterprise Funds Overview • Government-Wide Financial Statements • Legislative Updates • Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during the course of our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly,this report is not suitable for any other purpose. Minneapolis,Minnesota May 31,2022 Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com THIS PAGE INTENTIONALLY LEFT BLANK AUDIT SUMMARY The following is a 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,GO VERNMENTAUDITINGSTANDARDs We have audited the financial statements of the governmental activities,the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2021. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally, in our audit engagement letter, and in a separate letter dated April 5, 2022. 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, 2021: • We have issued an unmodified opinion on the City's basic financial statements. • We reported one matter involving the City's internal control over financial reporting that we 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 one finding based on our testing of the City's compliance with Minnesota laws and regulations. Minnesota Statutes require prompt payment of local government bills within a standard payment period of 35 days from the receipt of goods and services for governing boards that meet at least once a month. If such obligations are not paid within the appropriate time period, local governments must pay interest on the unpaid obligations at the rate of 1.5 percent per month or part of a month. One of twenty-five disbursements tested was not paid within the statutory time limit. FOLLOW-UP ON PRIOR YEAR FINDINGS AND RECOMMENDATIONS As a part of our audit of the City's financial statements for the year ended December 31, 2021, we performed procedures to follow-up on the findings and recommendations that resulted from our prior year audit. We reported the following finding that was corrected by the City in the current year: 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. There was no similar finding in the current year. -1- SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 of the notes to basic financial statements.No new accounting policies were adopted and the application of existing policies was not changed during the year ended December 31,2021. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus.All significant transactions have been recognized in the financial statements in the proper period. SIGNIFICANT UNUSUAL ACCOUNTING TRANSACTIONS—CHANGE IN REPORTING ENTITY In 2021, a change was made to reconfigure the Farmington Economic Development Authority's (EDA) governing board to be comprised entirely of the City's mayor and councilmembers. Due to this change in governance, under Governmental Accounting Standards Board (GASB) guidelines, the EDA became a blended component unit of the City, where it had been reported as a discretely presented component unit in prior years. The EDA's activity and balances for the current year are included within the City's financial statements as a blended component unit,reported within the(nonmajor)Economic Development Authority Special Revenue Fund and the (nonmajor) Trident Housing Tax Increment Special Revenue Fund. The City's governmental fund balances and governmental activities net position as of January 1, 2021,both increased by$329,920 as a result of this change ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: • Pensions and Other Post-Employment Benefits (OPEB) Liabilities — The City has recorded liabilities and activity for pension benefits and OPEB. These obligations are calculated using actuarial methodologies described in GASB Statement Nos. 68 and 75. These actuarial calculations include significant assumptions, including projected changes, healthcare insurance costs, investment returns,retirement ages,proportionate share, and employee turnover. • Depreciation — Management's estimates of depreciation expense are based on the estimated useful lives of the assets. • Compensated Absences—Management's estimate is based on current rates of pay,compensated absence balances,and the likelihood that sick leave will ultimately be paid at termination. We evaluated the key factors and assumptions used by management to develop these estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to OPEB and pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex estimates involved in determining the disclosures. The financial statement disclosures are neutral, consistent, and clear. -2- 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 31,2022. 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. -3- 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 supplementary information accompanying the financial statements which is not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and statistical sections,which accompany the financial statements,but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. -4- GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City's governmental funds, which includes the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City's financial statements focuses on budgetary compliance and the sufficiency of each governmental fund's current assets to finance its current liabilities. PROPERTY TAXES Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. For the 2020 fiscal year, local ad valorem property tax levies provided 40.9 percent of the total governmental fund revenues for cities over 2,500 in population, and 36.5 percent for cities under 2,500 in population. Total property taxes levied by all Minnesota cities for taxes payable in 2021 increased 4.0 percent compared to the prior year,and 5.9 percent for taxes payable in 2022. The total tax capacity value of property in Minnesota cities increased about 6.3 percent for the 2021 levy year. The tax capacity values used for levying property taxes are based on the assessed market values for the previous fiscal year(e.g., tax capacity values for taxes levied in 2021 were based on assessed market values as of January 1, 2020), so the trend of change in these tax capacity values lags somewhat behind the housing market and economy in general. The City's taxable market value increased 6.3 percent for taxes payable in 2020 and 7.4 percent for taxes payable in 2021. The following graph shows the City's changes in taxable market value over the past 10 years: Taxable Market Value $2,400,000,000 $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 a ,11I 1II1` 2016 2017 2018 2019 2020 2021 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 5.7 percent and 7.6 percent for taxes payable in 2020 and 2021,respectively. The following graph shows the City's change in tax capacities over the past 10 years: Local Net Tax Capacity $26,000,000 $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 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 The following table presents the average tax rates applied to city residents for each of the last three levy years: Rates Expressed as a Percentage of Net Tax Capacity City of Farmington 2019 2020 2021 Average tax rate City 54.4 51.0 49.3 County 25.4 24.1 22.7 School 51.4 53.1 50.8 Special taxing 3.0 2.9 2.8 Total 134.2 131.1 125.6 Despite the City historically having a higher dependence on property taxes than the average Minnesota city, both the City portion of the tax rate and the overall tax rate on Farmington residents have been steadily declining in recent years,due to the increasing taxable market value of property within the City. -6- GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City's governmental funds during the year ended December 31,2021,presented both by fund balance classification and by major fund: Governmental Funds Change in Fund Balance Fund Balance as of December 31, 2021 2020 Change Fund balances of governmental funds Total by classification Nonspendable $ 84,453 $ 1,325,873 $ (1,241,420) Restricted 4,411,713 3,565,637 846,076 Committed 8,876,306 8,427,605 448,701 Unassigned 6,813,564 6,060,870 752,694 Total governmental funds $ 20,186,036 $ 19,379,985 $ 806,051 Total by fund General $ 6,926,484 $ 6,202,066 $ 724,418 Federal Aid Special Revenue (13,763) — (13,763) Debt Service 3,146,223 2,677,368 468,855 Maintenance Capital Projects 1,572,324 1,660,550 (88,226) Private Capital Projects 104,087 112,218 (8,131) Nonmajor 8,450,681 8,727,783 (277,102) Total governmental funds $ 20,186,036 $ 19,379,985 $ 806,051 In total,the fund balances of the City's governmental funds increased by$806,051 during the year ended December 31, 2021. The decrease in nonspendable fund balances of $1,241,420 relates primarily to a prepayment of $1,156,674 in the (nonmajor) Fire Capital Projects Fund for an aerial fire truck in the prior year that was ordered for completion and delivery in 2021. Increases in the fund balance restricted for debt service and in park development and dedication fees restricted for park improvements contributed to an overall increase of $846,076 in restricted fund balances. Committed fund balance increased$448,701, with the majority of the increase in resources committed for storm water trunk in the Storm Water Trunk Capital Projects Fund. Unassigned fund balance increased $752,694, mainly due to positive operating results in the General Fund. -7- GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES The following table presents the per capita revenue of the City's governmental funds for the past three years, along with state-wide averages. We have included the most recent comparative state-wide averages available from the Office of the State Auditor to provide a benchmark for interpreting the City's data. The amounts received from the typical major sources of governmental fund revenue will naturally vary between cities based on factors such as a city's stage of development, location, size and density of its population, property values, services it provides, and other attributes. It will also differ from year-to-year, due to the effect of inflation and changes in its operation. Also, certain data in these tables may be classified differently than how they appear in the City's financial statements in order to be more comparable to the state-wide information, particularly in separating capital expenditures from current expenditures. We have designed this section of our management report using per capita data in order to better identify unique or unusual trends and activities of the City. We intend for this type of comparative and trend information to complement, rather than duplicate, information in the MD&A. An inherent difficulty in presenting per capita information is the accuracy of the population count, which for most years is based on estimates. Governmental Funds Revenue per Capita With State-Wide Averages by Population Class State-Wide City of Farmington Year December 31,2020 2019 2020 2021 Population 10,000-20,000 20,000-100,000 23,123 23,632 23,632 Property taxes $ 517 $ 537 $ 559 $ 552 $ 580 Tax increments 33 44 — — — Franchise and other taxes 60 46 11 10 10 Special assessments 39 54 27 17 12 Licenses and permits 39 46 18 25 33 Intergovernmental revenues 367 273 78 125 53 Charges for services 89 91 45 38 72 Other 69 69 37 28 24 Total revenue $ 1,213 $ 1,160 $ 775 $ 795 $ 784 The City's governmental fund revenues for 2021 were$18,525,368, a decrease of$267,201 (1.4 percent), or $11 per capita, from the prior year. Intergovernmental revenue was $72 per capita less than last year, due to the City receiving one-time federal CRF grant entitlement in 2020 to provide assistance to the community and fund unanticipated COVID-19-related expenses. This was partially offset by increases in revenues from property taxes($28 per capita)and charges for services($34 per capita) The City has historically received more of its governmental fund revenue from property taxes than the average Minnesota city, due to the lower than average amount of aid it typically receives from the state and the debt levies for the City's capital improvement bonds. -8- The expenditures of governmental funds will also vary from state-wide averages and from year-to-year, based on the City's circumstances.Expenditures are classified into three types as follows: • Current — These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. • Capital Outlay and Construction—These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year-to-year. Many of these expenditures are project-oriented, and are often funded by specific sources that have benefited from the expenditure,such as special assessment improvement projects. • Debt Service—Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources, such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The City's expenditures per capita of its governmental funds for the past three years, together with state-wide averages,are presented in the following table: Governmental Funds Expenditures per Capita With State-Wide Averages by Population Class State-Wide City of Farmington Year December 31,2020 2019 2020 2021 Population 10,000-20,000 20,000-100,000 23,123 23,632 23,632 Current General government $ 140 $ 118 $ 104 $ 112 $ 114 Public safety 288 320 247 250 272 Streets and highways 122 112 142 118 112 Culture and recreation 112 95 80 66 80 All other 108 104 2 12 16 770 749 575 558 594 Capital outlay and construction 429 331 204 113 129 Debt service Principal 149 91 105 123 91 Interest and fiscal charges 42 33 18 17 16 191 124 123 140 107 Total expenditures $ 1,390 $ 1,204 $ 902 $ 811 $ 830 Total expenditures in the City's governmental funds for 2021 were $19,612,052, an increase of$452,246 (2.4 percent), or$19 per capita, from the previous year. Current governmental expenditures for 2021 were $36 per capita more than last year, mainly due to increased personnel costs in public safety and culture and recreation. Capital outlay expenditures were $16 per capita more than last year, primarily due to the purchase of an aerial fire truck in the current year. Debt service expenditures were $33 lower than last year, due to a decrease in scheduled bond principal payments. -9- GENERAL FUND The City's General Fund accounts for the financial activity of the basic services provided to the community. The primary services included within this fund are the administration of the municipal operation,police and fire protection, building inspection, streets and highway maintenance, and parks and recreation. The graph below illustrates the change in the General Fund financial position over the last five years. We have also included a line representing annual expenditures and transfers out to reflect the change in the size of the General Fund operation over the same period. General Fund Financial Position Year Ended December 31, $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 --- $- 2017 2018 2019 2020 2021 Fund Balance $5,700,712 $5,722,071 $5,871,270 $6,202,066 $6,926,484 D Cash(Net) $4,493,060 $4,555,548 $4,676,267 $4,837,575 $5,619,633 Exp and Trans Out $11,767,128 $12,801,620 $13,199,638 $14,840,260 $13,811,853 The City's General Fund cash and investments, net of interfund borrowing at December 31, 2021 was $782,058 higher than at the previous year-end. Total fund balance at December 31, 2021 of$6,926,484 represented an increase of$724,418 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. Maintaining an adequate fund balance has become increasingly important given the fluctuations in state funding for cities in recent years. A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual cash flow experienced throughout the year. The City's General Fund cash disbursements are made fairly evenly during the year other than the impact of seasonal services,such as snowplowing, street maintenance, and park activities. Cash receipts of the General Fund are quite a different story. Property taxes comprise about 80.2 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$6,843,396 at the end of the 2021 fiscal year represents approximately 43.5 percent of budgeted expenditures and transfers out for 2022. This is within the City's policy that calls for maintaining an unassigned fund balance of between 40.0-50.0 percent of the subsequent year's budgeted expenditures and transfers out. -10- The following graph reflects the City's General Fund revenue sources for 2021 compared to budget: General Fund Revenue Budget and Actual Property Taxes Intergovernmental Fines and Forfeits Charges for Services Licenses and Permits All Other Zb Zb 00 00 q9 1000 1 000 1 000 1 000 1000 1 000 1 000 1 000 0000 0000 ■Budget ■Actual General Fund revenue for 2021 was $13,155,582, which was $702,807 (5.6 percent) more than budget. Intergovernmental revenue exceeded budget by $295,850, mainly due to street maintenance, training reimbursements, and other miscellaneous grants in excess of budget. Licenses and permits were$272,889 higher than budget, due to increased development within the City. Charges for services exceeded the City's conservative budget by$181,935. 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 02017 $9,142,126 $926,926 $45,102 $518,912 $415905 $202,478 02018 $9,450,249 $965,250 $60,182 $479,637 S449,350 $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 ■2021 $10,555,567 $963,762 $52,340 $613,132 $789,965 $180,816 Total General Fund revenue for 2021 was $707,904 (5.1 percent) lower than last year. Intergovernmental revenues decreased $1,297,912 from last year, mainly due to the one-time federal CRF grant revenue received in 2020, as previously discussed. Property taxes were $311,209 higher than last year, due an increased tax levy. Revenues from charges for services and licenses and permits were $193,371 and $201,618, respectively, higher than last year, mainly due to increases in development activity and recreation programs that had been reduced due to COVID-19 restrictions. -11- The following graph illustrates the components of General Fund spending for 2021 compared to budget: General Fund Expenditures Budget and Actual General Government Public Safety Public Works Parks and Recreation 'I `8J' X/ 'r! It" 82 lr�? J.I? Iry 'Pv Its Jill 86 86 '0 b sib °�b s00 °�b s00 10 "n00 sob o00 s00 °6b s00 O° °° '00 .O° .°° °° 00 00 ,°O O° °° °° 00 O O O O O O O O O O D O ■Budget ■ Actual General Fund expenditures for 2021 were $12,809,502, which was $200,611 (1.5 percent) under budget. Current expenditures were under budget in all functional areas shown above except for public safety, due to savings from open positions and decreases in materials used. Public safety was over budget, mainly in personnel costs due to an increase in level of services needed. 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 y Government Recreation Develo ment 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 ■2021 $2,620,186 $6,411,904 $2,474,368 $1,303,044 $- Total General Fund expenditures for 2021 were$350,546 (2.8 percent) higher than the previous year. The increase was mainly in public safety (up $318,280) and parks and recreation (up $157,871) areas, due to increases in personnel, fuel, supplies, and training costs. General government expenditures were $75,742 lower than last year, mainly due to a decrease in expenditures related to elections, which take place every other year. -12- ENTERPRISE FUNDS OVERVIEW The City maintains several enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City's enterprise funds, which 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, 2021,presented both by classification and by fund: Enterprise Funds Change in Financial Position Net Position as of December 31, 2021 2020 Change Net position of enterprise funds Total by classification Net investment in capital assets $ 50,773,632 $ 51,976,059 $ (1,202,427) Restricted—future drinking water treatment plant 2,461,488 2,461,488 — Unrestricted 18,123,198 15,418,911 2,704,287 Total enterprise funds $ 71,358,318 $ 69,856,458 $ 1,501,860 Total by fund Liquor Operations $ 1,807,133 $ 1,506,724 $ 300,409 Sewer Operations 19,325,404 19,819,444 (494,040) Solid Waste 2,230,188 1,832,590 397,598 Storm Water 15,332,726 15,129,294 203,432 Water 32,335,286 31,291,703 1,043,583 Street Light 327,581 276,703 50,878 Total enterprise funds $ 71,358,318 $ 69,856,458 $ 1,501,860 In total, the net position of the City's enterprise funds increased by $1,501,860 during the year ended December 31, 2021. The City's net investment in capital assets decreased by $1,202,427 during the year, mainly due to depreciation, as there were relatively few capital asset additions in the enterprise funds in 2021. Almost all of the City's enterprise operations had positive operating results for the year prior, generating income before transfers and capital contributions of $2,856,501 across all funds. The enterprise funds transferred $1,831,568 to the governmental and internal service funds during the year to support the General Fund and help finance capital improvements. -13- LIQUOR OPERATIONS FUND The following graph presents five years of comparative operating results for the City's Liquor Operations Fund: Liquor Operations Fund Year Ended December 31, $6,000,000 $5,500,000 $5,000,000 $4,500,000 -- $4,000,000 - $3,500,000 $3,000,000 $2,500,000 - $2,000,000 $1,500,000 $1,000,000 - $500,000 2017 2018 ?019 2020 2021 ■Sales $4,967,468 $5,256,645 $5,608,012 $5,347,194 $5,621,602 0 Cost of Sales $3,707,363 $3,923,968 $4,183,615 $3,984,504 $4,192,176 0OperExp $927,125 $966,336 $1,073,621 $974,201 $1,064,135 0 Oper Income $332,980 $366,341 $350,776 $388,489 $365,291 The City's Liquor Operations Fund ended 2021 with a total net position of$1,807,133, an increase of $300,409 from the prior year. Of this, $319,936 represents the investment in liquor capital assets, leaving an unrestricted net position of$1,487,197. The Liquor Operations Fund had gross sales of$5,621,602 in 2021, an increase of$274,408 (5.1 percent) from the previous year. Sales were up in the current year, due to temporary closures and limited store hours related to COVID-19 in 2020. Gross profit was $1,429,426, about 25.4 percent of sales, which is consistent with recent years. Operating expenses for 2021 increased $89,934 (9.2 percent) from the previous year, mainly in supplies and materials for costs incurred to move the Downtown store to its new location, as well as in salaries and benefits, due to the prior year COVID-19-related closures and operating hour limitations as discussed above. -14- SEWER OPERATIONS FUND The following graph presents five years of comparative operating results for the City's Sewer Operations Fund: Sewer Operations Fund Year Ended December 31, $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 - $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 — $(250,000) 2017 2018 2019 2020 2021 OOperRev $2,068,388 $2,045,728 $2,117,934 $2,160,808 $2,260,523 �OperExp $2,107,816 $1,930,839 $2,310,312 $2,331,935 $2,474,696 Oper Inc(Loss) $(39,428) $114,889 $(192,378) $(171,127) $(214,173) Inc Before Depr $556,961 $711,639 $421,184 1 $474,161 $443,607 The Sewer Operations Fund ended 2021 with a total net position of$19,325,404, a decrease of$494,040 from the prior year. Of this, $16,138,231 represents the investment in sewer collection system capital assets, leaving an unrestricted net position of$3,187,173. Operating revenue in the Sewer Operations Fund increased by $99,715 (4.6 percent) from the prior year, due to an increase of 4.0 percent in sewer rates. Operating expenses for 2021 were $142,761 (6.1 percent) higher than the previous year, mainly in professional services due to increased municipal wastewater charges. -15- SOLID WASTE FUND The following graph presents five years of comparative operating results for the City's Solid Waste Fund: Solid Waste Fund Year Ended December 31, $3,000,000 $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) 2017 2018 2019 2020 2021 OOperRev $2,061,324 $2,071,672 $2,244,569 $2,692,155 $2,854,452 �0per Exp $1,864,175 $2,101,344 $1,941,102 $2,630,874 $2,566,976 Oper Inc(Loss) $197,149 $(29,672) $303,467 $61,281 $287,476 Inc Before Depr $305,022 $51,763 1 $379,383 $162,475 $365,076 The Solid Waste Fund ended 2021 with a total net position of$2,230,188, an increase of$397,598 from the prior year. Of this, $338,902 represents the investment in solid waste operation capital assets, leaving an unrestricted net position of$1,891,286. Operating revenue in the Solid Waste Fund increased $162,297 (6.0 percent) from the prior year, due to an increase of 5.0 percent in solid waste rates. Operating expenses for 2021 were $63,898 (2.4 percent) less than the previous year, due to decreases in professional services and depreciation. Beginning in 2022,the City will cease providing solid waste and recycling collection services directly to its residents and businesses,opting to contract with a commercial provider for these services in the future. -16- STORM WATER FUND The following graph presents five years of comparative operating results for the City's Storm Water Fund: Storm Water Fund Year Ended December 31, $1,200,000 $1,100,000 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 —- $400,000 $300,000 $200,000 $100,000 2017 - ' i I 2019 2020 2021 = per Rev $647,767 S737.115 $1,130,563 $1,149,665 $1,158,564 Oper Exp $551,793 $533,465 $553,584 $530,438 $581,402 Oper Inc(Loss) $95,974 $203,650 $576,979 $619,227 $577,162 Inc Before Depr $508,053 $628,404 $1,014,979 1 $1,059,648 $1,028,358 The Storm Water Fund ended 2021 with a total net position of$15,332,726,an increase of$203,432 from the prior year. Of this, $12,794,284 represents the investment in storm water operation capital assets, leaving an unrestricted net position of$2,538,442. Operating revenue in the Storm Water Fund was similar to the prior year with no increase to rates in 2021, increasing$8,899(0.8 percent). Operating expenses for 2021 were $50,964 (9.6 percent) higher than the previous year, mainly due to an increase in contracted services expense. -17- WATER FUND The following graph presents five years of comparative operating results for the City's Water Fund: Water Fund Year Ended December 31, $3,000,000 $2,800,000 $2,600,000 $2,400,000 - - $2,200,000 - $2,000,000 $1, 00,000 $1,6600,000 -.--- ---- $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 LA) - 2017 2018 2019 2020 2021 DOper Rev $1,681,079 $1,852,381 $2,281,793 $2,533,753 $2,908,352 �OperExp $1,313,735 $1,247,662 $1,393,568 $1,604,792 $1,746,446 Oper Inc(Loss) $367,344 $604,719 $888,225 $928,961 $1,161,906 Inc Before Depr $1,134,553 $1,335,659 $1,725,319 $1,920,612 $2,152,855 The Water Fund ended 2021 with a total net position of$32,335,286, an increase of$1,043,583 from the prior year. Of this, $21,182,279 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 $8,691,519. Operating revenue in the Water Fund for 2021 increased $374,599 (14.8 percent) from the prior year, resulting from the combination of increased consumption and water availability charges due to a significant increase in permits issued. Water Fund operating expenses for 2021 were $141,654 (8.8 percent) higher than the previous year, mainly due to an increase in repairs and maintenance costs. -18- STREET LIGHT FUND The following graph presents five years of comparative operating results for the City's Street Light Fund: Street Light Fund Year Ended December 31, $250,000 $200,000 ---- $150,000 $100,000 $50,000 2017 2018 2019 2020 2021 OOper Rev $225,570 $226,674 y226,971 $232,990 $230,479 �OperExp $197,150 $180,254 5105,886 $173,604 $180,528 Oper Inc(Loss)1 $28,420 $46,420 $61,085 $59,386 $49,951 Street Light Fund operating revenue for 2021 decreased$2,511 (1.1 percent)from the prior year. Operating expenses were$6,924(4.0 percent)higher than the previous year,mainly in utilities expense. Unrestricted net position increased$50,878 in 2021,ending the year at$327,581. -19- THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENT-WIDE FINANCIAL STATEMENTS In addition to fund-based information, the current reporting model for governmental entities also requires the inclusion of two government-wide financial statements designed to present a clear picture of the City as a single, unified entity. These government-wide financial statements provide information on the total cost of delivering services, including capital assets and long-term liabilities. STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what the City owns and owes at a given point in time, the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to use for providing services after its debts are settled. However,those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components:net investment in capital assets,restricted, and unrestricted. The following table presents the components of the City's net position as of December 31, 2021 and 2020, for governmental activities and business-type activities: As of December 31, 2021 2020 Change Net position Governmental activities Net investment in capital assets $ 36,819,084 $ 35,883,311 $ 935,773 Restricted 9,841,913 5,553,935 4,287,978 Unrestricted 11,591,481 9,236,760 2,354,721 Total governmental activities 58,252,478 50,674,006 7,578,472 Business-type activities Net investment in capital assets 50,773,632 51,976,059 (1,202,427) Restricted 2,461,488 2,461,488 — Unrestricted 18,123,198 15,418,911 2,704,287 Total business-type activities 71,358,318 69,856,458 1,501,860 Total net position $ 129,610,796 $ 120,530,464 $ 9,080,332 The City's total net position at December 31, 2021 was $9,080,332 higher than the previous year-end. The City's net position increased $7,578,472 from current year governmental activities and $1,501,860 from current year business-type activities. The governmental activities net investment in capital assets increased $935,773, 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. Restricted net position increased $4,287,978, mainly in the amount restricted for debt service due to new special assessments, the amount restricted for park improvements due to increased park development and dedication fees received from new developments, and the amount restricted for state-funded street projects from unspent aid. The increase in governmental activities unrestricted net position of$2,354,721 in 2021, 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. -20- STATEMENT OF ACTIVITIES The Statement of Activities tracks the City's yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2021 and 2020: 2021 2020 Program Expenses Revenues Net Change Net Change Net(expense)revenue Governmental activities General government $ 2,560,243 $ 872,192 $ (1,688,051) $ (2,275,269) Public safety 6,549,508 1,136,717 (5,412,791) (5,910,170) Public works 3,977,134 5,112,324 1,135,190 (4,835,109) Parks and recreation 2,789,326 988,091 (1,801,235) (1,040,654) Economic development 406,795 171,241 (235,554) (404,937) Interest and fiscal charges 189,858 — (189,858) (193,167) Business-type activities Liquor operations 5,256,311 5,725,466 469,155 388,489 Sewer operations 2,459,637 2,264,006 (195,631) (173,192) Solid waste 2,566,976 3,245,525 678,549 83,743 Storm water 581,402 1,315,428 734,026 619,227 Water 1,764,908 3,424,912 1,660,004 911,722 Street light 180,528 232,378 51,850 59,386 Total net(expense)revenue $ 29,282,626 $ 24,488,280 (4,794,346) (12,769,931) General revenues Property taxes 13,692,990 13,179,138 Franchise taxes 229,355 244,839 Unrestricted grants 107,962 2,060,517 Investment earnings(charges) (155,629) 946,137 Gain on disposal of capital assets — 16,174 Total general revenues 13,874,678 16,446,805 Change in net position $ 9,080,332 $ 3,676,874 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. The significant net change from public works activity is primarily due to increases in capital grants and contributions from new special assessments and street maintenance aid recognized. The decrease in unrestricted grants reflects the one-time federal CRF grant received in 2020. The change in investment earnings (charges) is due to changes in the fair value of the City's investment portfolio caused by less favorable market conditions and available interest rates in 2021. -21- LEGISLATIVE UPDATES As the first year of the fiscal biennium,the primary focus of the 2021 Minnesota legislative session would typically have been the development of the state's fiscal year (FY) 2022-2023 biennial budget. Positive news on the state's budget forecast entering the session,with projections for the end of the FY 2020-2021 biennium improving from a $2.4 billion shortfall predicted in a May 2020 special pandemic budget projection to a$940.0 million surplus predicted in the February 2021 budget and economic forecast, was expected to ease the budget process and relieve the pressure to make budget cuts during an already uncertain time. However, given the significant events of the preceding year, including the COVID-19 pandemic and death of George Floyd,the focus of the regular session shifted to legislation responding to the pressing issues that resulted from those events. The business of setting a biennial budget was ultimately not addressed until a June special session that ended in the early morning hours of July 1 st. The following is a brief summary of legislative changes from the 2021 session or previous legislative sessions potentially impacting Minnesota cities. American Rescue Plan (ARP) Act — The federal ARP Act, signed into law in March 2021, provided federal economic recovery funding for federal, state, and local government responses to the COVID-19 pandemic. Minnesota local governments received approximately$2.1 billion in funding under the ARP Act, including $644.0 million awarded to 21 large cities (over 50,000 population) and $377.0 million awarded to cities and towns with a population below 50,000, with half distributed in FY 2021 and half in FY 2022. Local governments can use ARP Act funding in four broad categories:responding to public health and economic impacts; providing premium pay to essential workers; providing general government services to the extent of revenue loss; or investments in water, sewer, and broadband infrastructure. Potential State Aid Enhancements — The 2021 Legislature increased state general fund base spending by approximately $1.3 billion. Included are funding increases for several programs potentially of benefit to Minnesota cities,including: • A one-time appropriation of$5.5 million for supplemental aid to cities for FY 2022, to offset losses of local government aid (LGA) for 96 cities under the current formula. It is expected the Legislature will review and consider updating the LGA formula during the 2022 session. • Annual appropriations of$1.8 million for the Greater Minnesota Business Development Public Infrastructure Grant Program, intended to bolster local economic growth by providing grant assistance to cities for public infrastructure needed to create and retain jobs. • Annual appropriations of $2.5 million for local community childcare grants, intended to assist local communities to increase the number of childcare providers to support economic development. • Allocating a total of $70.0 million from the state's ARP Act funds over the biennium ($35.0 million per year)to fund the Border-to-Border Broadband Grant Program,which provides grants to local governments for enhancing broadband availability. • Annual allocations of $4.5 million for reimbursements to local governments for firefighter training and education costs. • Annual allocations of $2.9 million for reimbursement to local governments for peace officer training costs. • A one-time appropriation of$18.0 million for FY 2022 to the small cities assistance account to provide additional road repair funding for cities under 5,000 population. Truth-in-Taxation Changes — Effective for property taxes payable in 2023 and thereafter, county auditors will be required to prepare a new statement for inclusion in its parcel-specific truth-in-taxation notices that contains summary budget information for the county, cities, and school districts for which they spread and collect tax levies. Cities with a population greater than 500 will be required to compile and provide current and proposed summary budget information to the county auditor, based on the summary budget information cities are required to submit each year to the Minnesota state auditor. -22- Tax Base Change for Low-Income Rental Property — Effective for assessment years 2022 and 2023, the first-tier limit for class 4d low-income rental property is reduced from $174,000 to $100,000, with class rates remaining at 0.75 percent on the first$100,000 and 0.25 percent on the remaining balance. The tier limit will once again be adjusted annually after assessment year 2023. Local Sales Tax Projects Defined—Minnesota cities are authorized to include up to five capital projects in proposals for local sales taxes. The definition of a capital project for this purpose was updated to include: a single building or structure, including associated infrastructure; improvements within a single park or recreation area,or; a contiguous trail. Tax Increment Financing (TIF) Flexibility — The Legislature enacted several measures that provide additional flexibility for TIF spending, including: • Allowing unobligated TIF to be used to provide loans, interest rate subsidies, or other assistance to private developers for the construction or substantial rehabilitation of buildings and ancillary facilities, if doing so will create jobs. Transfer authority expires on December 31, 2022, and all transferred increment must be spent by December 31,2025,or returned to the TIF district. • Allowing TIF districts that have elected to increase pooling by 10 percent to use the increment for owner-occupied housing that meets the requirements of a housing TIF district, in addition to current low-income rental housing. • Providing three-year extensions of the five-year and six-year rules for redevelopment districts created after December 31,2017, but before June 30,2020,thereby extending their duration. • Creating a three-city pilot program, giving temporary authority to transfer unobligated housing TIF district increment to the cities affordable housing trust funds. Sales and Use Tax Refund Process—Effective for purchases made after June 30, 2021, cities and other local governments are allowed to utilize a streamlined process to secure a sales tax refund on construction materials purchased by a contractor on behalf of the city for construction, remodeling, expansion, or improvement of public safety facilities owned by local governments, such as police and fire stations. The process also applies to materials used in related facilities, such as access roads, lighting, sidewalks, and utility components. Under the process, local governments would continue to initially pay sales tax on these materials, but would then be allowed to file for a refund of the sales tax paid. Contractors would be required to provide the local government with the information necessary to file for the refund. Fire Protection Special Taxing District Authority— Effective for property tax levies payable in 2023 and thereafter,the current law giving emergency medical districts taxing authority is expanded to include fire protection districts. Two or more local units of government are now permitted to establish a special taxing district to provide fire protection, emergency medical services, or both. The special taxing district will have authority to levy property taxes to finance district operations, spread either across the entire district at a set rate, or allocated to each participating jurisdiction based on factors, such as population or service calls. Districts will also have authority to issue debt related to the function of the district. The property tax and debt issuance authority also apply to existing districts established prior to June 30,2021. Open Meeting Law—The Legislature made several pandemic-related changes to the Open Meeting Law, including removing the statutory cap of three times per year for elected officials to utilize a medical exception for attending meetings remotely between January 1, 2021, and July 1, 2021, and removing the requirement for elected officials participating in public meetings remotely, due to military service or medical exceptions, to disclose their remote locations. The law changes also updated the definition of "interactive technology"to replace"interactive television"throughout the text of the Open Meeting Laws, and added requirements for public bodies meeting remotely to enable remote participation by the public free of charge and enable public comment from remote locations,when practical. -23- 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. -24- 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. -25- 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. -26- 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. GASB Statement No.98, The Annual Comprehensive Financial Report This statement establishes the term annual comprehensive financial report and its acronym 4CFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. This statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive annual financial report sounds like a profoundly objectionable racial slur. This statement's introduction of the new term is founded on a commitment to promoting inclusiveness. The requirements of this statement are effective for fiscal years ending after December 15, 2021. Earlier application is encouraged. -27- CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2021 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF FARMINGTON DAKOTA COUNTY,MINNESOTA Special Purpose Audit Reports Year Ended December 31,2021 Table of Contents Page Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1-2 Independent Auditor's Report on Minnesota Legal Compliance 3-4 Schedule of Findings and Responses 5-6 THIS PAGE INTENTIONALLY LEFT BLANK PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA MMKRWilliam J.Lauer,CPA James H.Eichten,CPA C E RT I F I E D PUBLIC Aaron J.Nielsen,CPA ACCOUNTANTS Victoria L.Holinka,CPA/CMA Jaclyn M.Huegel,CPA Kalen T.Karnowski,CPA INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the City Council and Management City of Farmington,Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, 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, 2021, and the related notes to the financial statements,which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 31,2022. REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements,we considered the City's internal control over financial reporting(internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis.A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore,material weaknesses or significant deficiencies may exist that have not been identified. We identified one deficiency in internal control, described in the accompanying Schedule of Findings and Responses as finding 2021-001, that we consider to be a material weakness. (continued) -- Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 - Fax: 952-545-0569 • www.mmkr.com REPORT ON COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CITY'S RESPONSE TO FINDING Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the finding identified in our audit and described in the accompanying Schedule of Findings and Responses. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this report is not suitable for any other purpose. Minneapolis,Minnesota May 31,2022 -2- PRINCIPALS Thomas A.Karnowski,CPA Paul A.Radosevich,CPA MMKRWilliam J.Lauer,CPA James H.Eichten,CPA C E R T I F I E D P U B L I C Aaron J.Nielsen,CPA ACCOUNTANTS Victoria L.Holinka,CPA/CMA Jaclyn M.Huegel,CPA Kalen T.Karnowski,CPA INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of Farmington,Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, 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, 2021, and the related notes to the financial statements,which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 31,2022. MINNESOTA LEGAL COMPLIANCE In connection with our audit, we noted that the City failed to comply with provisions of the claims and disbursements section of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters as described in the Schedule of Findings and Responses as finding 2021-002. Also, in connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting—bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. CITY'S RESPONSE TO FINDING Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the legal compliance finding identified in our audit and described in the accompanying Schedule of Findings and Responses. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and,accordingly,we express no opinion on the response. (continued) -3- Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com 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. I''��`J f /"1 G'f,.f � �A�u�eou�0�r /r•u..t+-as+.t.i�.. � �o.� � A . Minneapolis,,Minnesota May 31,2022 -4- CITY OF FARMINGTON Schedule of Findings and Responses Year Ended December 31, 2021 FINDINGS—MATERIAL WEAKNESS IN INTERNAL CONTROL OVER FINANCIAL REPORTING 2021-001 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. Management Response—There is no disagreement with the audit finding. The City reviews and makes improvements to its internal control structure on an ongoing basis to maximize the segregation of duties in all areas within the limits of the staff available. However, the City does not consider it cost-beneficial at this time to increase the size of its Finance Department staff in order to further segregate accounting functions. -5- CITY OF FARMINGTON Schedule of Findings and Responses(continued) Year Ended December 31,2021 FINDINGS—MINNESOTA LEGAL COMPLIANCE 2021-002 CLAIMS AND DISBURSEMENTS Criteria—Minnesota Statutes § 471.425, Subd. 2. Condition —Minnesota Statutes require prompt payment of local government bills within a standard payment period of 35 days from the receipt of goods and services for governing boards that meet at least once a month. If such obligations are not paid within the appropriate time period, local governments must pay interest on the unpaid obligations at the rate of 1.5 percent per month or part of a month. One of twenty-five disbursements tested was not paid within the statutory time limit. Questioned Costs—Not applicable. Context—One of twenty-five disbursements tested was not in compliance. Repeat Finding—This is a current year finding only. Cause—This was an oversight by city personnel. Effect— Certain payments made to vendors were not paid within the timeframe as required by state statutes. Recommendation — We recommend that the City review its claims and disbursements payment procedures to ensure that all invoices are paid within statutory requirements. Management Response — There is no disagreement with the audit finding. The City will review its claims and disbursements payment procedures to ensure future compliance with Minnesota Statutes. -6- CITY OF O 43o Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 It Farmington M N.gov TO: Mayor, Councilmembers and City Administrator FROM: Chris Regis, Finance Director SUBJECT: Award of Sale Series 2022A G.O. Bonds- Finance DATE: June 6, 2022 INTRODUCTION At the April 18, 2022 city council meeting,the city council authorized the city's financial advisor, Northland Securities,to solicit proposals for the Series 2022A General Obligation Bonds.The bond proceeds will be used to fund parking lot improvements and the reconstruction of Spruce and Division Streets within the city. DISCUSSION Competitive bids will be received on Monday June 6, 2022 at the office of Northland Securities, I nc.The number of bidders and the interest rates received will be presented at the June 6, 2022 city council meeting.The draft resolution (attached)will be updated with the final amounts. BUDGET IMPACT The estimated debt service has been included in the 2023 debt levies. ACTION REQUESTED Staff recommends the city council adopt the updated resolution awarding the sale of$3,965,000* General Obligation Bonds, Series 2022A to the low bidder, as presented by Northland Securities, I nc. *Preliminary, subject to change. ATTACHMENTS: Type Description ❑ Resolution Series 2022A Bond Resolution CERTIFICATION OF MINUTES RELATING TO $3,650,000 GENERAL OBLIGATION BONDS, SERIES 2022A City: City of Farmington,Minnesota Governing Body: City Council Kind,date,time and place of meeting: A regular meeting held on June 6, 2022,at 7:00 o'clock p.m., at City Hall,430 Third Street in Farmington,Minnesota. Members present: Hoyt, Bernhjelm, Lien, Porter, Wilson Members absent: None Documents Attached: Minutes of said meeting (including): RESOLUTION NO. R45-22 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF$3,650,000 GENERAL OBLIGATION BONDS, SERIES 2022A I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above,pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer on� , 2022. Ax-hm 6tw,,�,- City Administrator 4873-5541481014 It was reported that four (4) proposals for the purchase of$3,650,000 General Obligation Bonds, Series 2022A were received prior to 10:30 a.m., Central time, on Monday, June 6, 2022, pursuant to the Official Statement distributed to potential purchasers of the Bonds by Northland Securities, Inc., municipal advisors to the City. The proposals have been publicly opened, read and tabulated and were found to be as follows: See Attached 4873-55414810\4 tlS:LJRiilE� TABULATION OF BIDS CITY OF FAFUNMINGTON.hUNNESOTA 53,966,000, GENERAL OBLIGATION BONDS,SERIES 2022A AWARD: ROBERT W.BAIRD&CO.,INC_ DATE OF SALE: MONDAY,TUNE 6,2022 STANDARD&POOR'S UNDERLYING RATMG AA+ TRUE PURCHASE NET INTEREST BIDDER PRICE INTEREST COST COST(TIC) ROBERT W_BAIRD&CO.,INC_ $4,312,606.30 S631,370.98 2.62196369'6 h-il,waukee,IVI Syndicate:C.L.King&As=sociates,Colliers Securities LLC;Fidelih,Capital hiarkets;Crews&Associates,Inc.,Davenport&Co.LLC;Loop Capital lUarkets;Country Club Bank;Sierra Pacific Securities;Celadon Financial Group,LLC;Isaak Bond Investments,Inc.;Cart),& Company,Inc.;UMB Bank,NA;FINIS Bonds Inc.;Midland Securities;First Southam LLC;Dinosaur Securities;First Bankers' Banc Securities,Inc.;Mountainside Securities LLC;5KqWXFinancia1 Inc.;Commerce Bank,NA;Seaport Global Securities LLC PIPER SANDLER&CO $4,216,336.45 5634,765.63 2.6766170% h4inneapolis,XVi R..AYNIOND JAMES&ASSOCLATES,INC_ 54,362,366.20 5718,787.27 2.7329335% Memphis,TN BOK FINANCIAL SECURIITES,INC. 54,149,004.30 5715,055.42 2.8097163% Dallas,TX 3 4873-55414810\4 Councilmember Porter introduced the following resolution and moved its adoption, which motion was seconded by Councilmember Lien RESOLUTION NO. R45-22 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $3,650,000 GENERAL OBLIGATION BONDS, SERIES 2022A BE IT RESOLVED by the City Council (this "Council") of the City of Farmington, Minnesota(the"City"), as follows: SECTION 1. AUTHORIZATION AND SALE. 1.01. Authorization. This Council, by resolution adopted April 18, 2022, authorized the issuance and sale of its General Obligation Bonds, Series 2022A, in the approximate principal amount of $3,965,000 (the "Bonds"), pursuant to Minnesota Statutes, Sections 469.1812 — 469.1815 (the "Abatement Act") and 475.58 subdivision 3b (the "Street Reconstruction Act"), and Chapter 475, upon the terms and conditions hereinafter set forth. The portion of the Bonds ($1,415,000)that is being issued pursuant to the Abatement Act (the "Abatement Bonds") will be used to finance certain parking lot improvements within the City (the "Abatement Projects"). This Council, by resolution duly adopted on April 18, 2022, authorized the issuance of the Abatement Bonds for the purpose of financing the Abatement Projects. To finance the Abatement Projects, this Council, by resolution adopted after a public hearing held April 18, 2022, granted a ten (10) year abatement of property taxes to be imposed by the City on certain parcels in the City (the "Tax Abatement"), pursuant to the Abatement Act. The revenues received by the City from such Tax Abatement are herein referred to as the "Tax Abatement Revenue." The portion of the Bonds ($2,235,000) that is being issued pursuant to the Street Reconstruction Act (the "Street Reconstruction Plan Bonds") will be used to finance the cost of certain street reconstruction projects (the "Street Reconstruction Projects"; together with the Abatement Projects, the "Projects") described in the modified Five-Year Street Reconstruction Plan adopted by this Council, following a public hearing, on April 18, 2022. A petition requesting a vote on the question of issuing the Street Reconstruction Plan Bonds, signed by voters equal to five percent of the votes cast in the last municipal general election, was not filed with the City within 30 days of the public hearing. Accordingly, the issuance of the Street Reconstruction Plan Bonds is authorized without an election. Maturity schedules for each portion of the Bonds are attached hereto as Exhibit B. 1.02. Sale. Pursuant to the Notice of Sale and the Official Statement prepared on behalf of the City by Northland Securities, Inc., sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost 4873-55414810\4 under the terms of each proposal have been determined. The most favorable proposal received is that of Robert W. Baird & Co., Inc., in Milwaukee, Wisconsin (the "Purchaser"), and associates, to purchase the Bonds at a price of$3,967,062.06, plus accrued interest, if any, on all Bonds to the day of issuance and delivery, on the further terms and conditions hereinafter set forth. 1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Administrator are hereby authorized and directed to execute a contract on behalf of the City for the sale of the Bonds in accordance with the notice of sale. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered, and shall be deducted from the purchase price paid at settlement. SECTION 2. BOND TERMS-, REGISTRATION• EXECUTION AND DELIVERY. 2.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the Council to establish the form and terms of the Bonds,to provide security therefor and to issue the Bonds forthwith. 2.02. Maturities; Interest Rates; Denominations and Payment. The Bonds shall be originally dated as of July 6, 2022, shall be in the denomination of$5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 2024 $295,000 5.000% 2029 $375,000 5.000% 2025 310,000 5.000 2030 390,000 5.000 2026 320,000 5.000 2031 410,000 4.000 2027 335,000 5.000 2032 425,000 3.000 2028 350,000 5.000 2033 440,000 3.000 The Bonds shall be issuable only in fully registered form. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest on and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein, provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 2.03. Dates and Interest Payment Dates. Upon initial delivery of the Bonds pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing February 1, 2 4873-5541-4810\4 2023, each such date being referred to herein as an Interest Payment Date, to the persons in whose names the Bonds are registered on the Bond Register, as hereinafter defined, at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. 2.04. Redemption. Bonds maturing on or after February 1, 2031, shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000, on February 1, 2030, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City Administrator shall cause notice of the call for redemption thereof to be published if and as required by law, and,at least thirty (30) and not more than sixty (60) days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the Registrar and registered holders of any Bonds to be redeemed at their addresses as they appear on the register described in Section 2.06 hereof, provided that notice shall be given to any securities depository in accordance with its operational arrangements. No defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. 2.05. Appointment of Initial Registrar. The City hereby appoints U.S. Bank Trust Company, National Association, St. Paul, Minnesota, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The Mayor and City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company organized under the laws of the United States or one of the states of the United States and authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar, effective upon not less than thirty (30) days' written notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. 2.06. Registration. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Re ister. The Registrar shall keep at its principal corporate trust office a register (the Bond Register) in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. The term Holder or Bondholder as used herein 3 4873-55414810\4 shall mean the person (whether a natural person, corporation, association, partnership, trust, governmental unit, or other legal entity) in whose name a Bond is registered in the Bond Register. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered for payment, transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may-treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on the Bond and for all other purposes; and all payments made to any registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and 4 4873-5541-4810\4 upon cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. 0) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf of the City by the signatures of the Mayor and City Administrator, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been prepared, executed and authenticated, the City Administrator shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.08. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. 5 4873-5541-4810\4 "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York,New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter pursuant to which the City agrees to comply with DTC's Operational Arrangements. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph(e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of physical certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and 6 4873-5541-4810\4 discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph(e)hereof. (d) The execution and delivery of the Representation Letter to DTC by the Mayor or City Administrator, if not previously filed with DTC, is hereby authorized and directed. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of physical certificates and the method of payment of principal of and interest on such Bonds in the form of physical certificates. 2.09. Form of Bonds. The Bonds shall be printed in substantially the form found at Exhibit A hereto. SECTION 3. GENERAL OBLIGATION BONDS SERIES 2022A CONSTRUCTION FUND. There is hereby established on the official books and records of the City a General Obligation Bonds, Series 2022A Construction Fund (the "Construction Fund") to be held and administered by the City Administrator separate and apart from all other funds of the City. Within the Construction Fund are established the following accounts: (a) Abatement Account. The Abatement Account shall be credited with (i) $1,499,707.26, representing the estimated cost of the Abatement Projects ($1,476,159.71), costs of issuance of the Abatement Bonds ($21,067.99), and rounding amount ($2,479.56) from the proceeds of the Abatement Bonds. Additionally, the Abatement Account shall be credited with City equity in the amount of$67,840.29. The City Administrator shall maintain the Abatement Account until payment of all costs and expenses incurred in connection with the Abatement Projects have been paid. (b) Street Reconstruction Account. The Street Reconstruction Account shall be credited with $2,375,617.30, representing the estimated cost of the Street Reconstruction Projects ($2,342,340.29) and costs of issuance of the Street Reconstruction Plan Bonds ($33,277.01), from the proceeds of the Street Reconstruction Plan Bonds. Additionally, the Street Reconstruction Account shall be credited with City equity in the amount of $107,159.71. The City Administrator shall maintain the Street Reconstruction Account until all costs and expenses incurred by the City in connection with Street Reconstruction Projects have been paid. From the Construction Fund there shall be paid all costs and expenses related to the construction and acquisition of the Projects, including costs of issuance of the Bonds. After payment of all such costs and expenses, the Construction Fund shall be terminated. All funds on hand in the Construction Fund when terminated shall be credited to the Bond Fund described in Section 4.01 7 4873-5541481014 hereof, unless and except as such proceeds may be transferred to some other fund or account as to which the City has received from bond counsel an opinion that such other transfer is permitted by applicable laws and does not impair the exemption of interest on the Bonds from federal income taxes. SECTION 4. GENERAL OBLIGATION BONDS, SERIES 2022A BOND FUND. 4.01. General Obligation Bonds, Series 2022A Bond Fund. The Bonds shall be payable from a separate General Obligation Bonds, Series 2022A Bond Fund (the "Bond Fund") of the City, which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. Within the Debt Service Account(described below)within the Bond Fund are established the following subaccounts: (a) Abatement Subaccount. There shall be credited to the Abatement Subaccount the following: (i) Bond proceeds in the amount of $35,561.81, representing capitalized interest; (ii) the amounts specified in Section 3(a) above, after payment of all costs of the Abatement Projects; (iii) Tax Abatement Revenues collected in accordance with this Resolution and allocable to the Abatement Bonds; (iv) any taxes levied and collected in accordance with this Resolution and allocable to the Abatement Bonds; and (v) any other funds appropriated by the Council for the payment of the Abatement Bonds. (b) Street Reconstruction Subaccount. There shall be credited to the Street Reconstruction Subaccount the following: (i) Bond proceeds in the amount of $56,175.69, representing capitalized interest; (ii) the amounts specified in Section 3(b) above, after payment of all costs of the Street Reconstruction Projects; (iii) taxes levied and collected in accordance with Section 5 of this Resolution and allocable to the Street Reconstruction Plan Bonds; and (iv) any other funds appropriated by this Council for the payment of the Street Reconstruction Plan Bonds. 8 4873-5541-4810\4 The principal of and interest on the Bonds shall be payable from the Bond Fund, and the money on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. On or before each principal and interest payment date for the Bonds, the City Administrator is directed to remit to the Registrar from funds on deposit in the Bond Fund the amount needed to pay principal and interest on the Bonds on the next succeeding principal and interest payment date. There are hereby established two accounts in each Subaccount of the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." There shall initially be deposited into the Debt Service Accounts upon the issuance of the Bonds the amount of $91,737.50 (as described in (a)(1) and (b)(1) in this Section). Thereafter, during each bond year (each twelve month period commencing on February 2 and ending on the following February 1, a "Bond Year"), as monies are received into the Bond Fund, the City Administrator shall first deposit such monies into the applicable Debt Service Account until an amount has been appropriated thereto sufficient to pay all principal and interest due on the respective Bonds through the end of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year shall be appropriated to the Surplus Accounts. If at any time the amount on hand in the Debt Service Accounts is insufficient for the payment of principal and interest then due, the City Administrator shall transfer to the Debt Service Accounts amounts on hand in the Surplus Accounts to the extent necessary to cure such deficiency. Investment earnings (and losses) on amounts from time to time held in the Debt Service Accounts and Surplus Accounts shall be credited or charged to said accounts. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Accounts when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. SECTION 5. PLEDGE OF TAXING POWERS. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts not less than five percent in excess of amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, said taxes to be levied and collected in the following years and amounts: Levy Years Collection Years Amount See attached levy computation Said taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce said levies from other legally available funds in accordance with the provisions of Minnesota Statutes, Section 475.61. 9 4873-5541-4810\4 SECTION 6. RESERVED. SECTION 7. DEFEASANCE. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the registered owners of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full, or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms by depositing with the Registrar on or before that date an amount equal to the principal, redemption premium, if any, and interest then due, provided that notice of such redemption has been duly given as provided herein. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with the Registrar or with a bank or trust company qualified by law to act as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited for such purpose, bearing interest payable at such times and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been irrevocably provided for, to an earlier designated redemption date, provided, however, that if such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the City shall have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 8. TAX COVENANTS; ARBITRAGE MATTERS AND CONTINUING DISCLOSURE. 8.01. General Tax Covenant. The City covenants and agrees with the registered owners of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any actions that would cause interest on the Bonds to become includable in the gross income of the recipient under the Internal Revenue Code of 1986, as amended (the "Code") and applicable Treasury Regulations (the "Regulations"), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income of the recipient under the Code and the Regulations. In particular, the City covenants and agrees that all proceeds of the Bonds deposited in the Construction Fund will be expended solely for the payment of the costs of the Project. All improvements so financed will be owned and maintained by the City as part of the public infrastructure of the City and available for use by members of the general public on a substantially equal basis. The City has not entered and will not enter into any lease, management, use or other agreement or contract relating to the use of the Project, or any portion thereof, or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 10 4873-5541-4810\4 8.02. Arbitrage Certification. The Mayor and City Administrator, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with Section 148 of the Code and applicable Regulations stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be"arbitrage bonds" within the meaning of the Code and Regulations. 8.03. Arbitrage Rebate. (a) It is hereby found that the City has general taxing powers, that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the City, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all subordinate entities thereof during the year 2022 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to Section 148(f)(4)(D) of the Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs(2) and(3) of Section 148(f) of the Code. (b) Notwithstanding the provisions of paragraph (a) of this Section 8.03, if the arbitrage rebate provisions of Section 148(f) of the Code apply to the Bonds, the City hereby covenants and agrees to make the determinations, retain records and rebate to the United States the amounts at the times and in the manner required by said Section 148(f) and applicable Regulations. 8.04. Qualified Tax-Exem tp Obligations. The City Council hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of tax-exempt obligations which are not private activity bonds (not treating qualified 501(c)(3) bonds under Section 145 of the Code as private activity bonds for the purpose of this representation) and are not excluded from this calculation by Section 265(b)(3)(C)(ii) of the Code which will be issued by the City and all subordinate entities during calendar year 2022 does not exceed $10,000,000. 8.05. Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the Projects which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations, provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the Project meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii)with respect to "preliminary expenditures"for the Projects as defined in Section 1.150-2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% of the"issue price" of the Bonds. 8.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to 11 4873-5541-4810\4 comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit of the Owners (as hereinafter defined) from time to time of the outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. If the City fails to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein,Beneficial Owner means, in respect of a Bond, any person or entity which(a)has the power, directly or indirectly,to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection(c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before twelve (12) months after the end of each fiscal year of the City, commencing with the fiscal year ending December 31, 2021, the following financial information and operating data in respect of the City (the Disclosure Information): (A) the audited financial statements of the City for such fiscal year, prepared in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period 12 4873-5541-4810\4 most recently available of the type contained in the Official Statement under the headings: "Economic and Financial Information—Valuations," "—Tax Capacity Rates" and "—Tax Levies and Collections" and "Summary of Debt and Debt Statistics," which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to the Municipal Securities Rulemaking Board (the MSRB) through its Electronic Municipal Market Access System (EMMA) or the SEC. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner, not in excess of 10 business days after the occurrence of the event, to the MSRB through EMMA, notice of the occurrence of any of the following events (each a"Material Fact," as hereinafter defined): (A) principal and interest payment delinquencies; (B) non-payment related defaults, if material; (C) unscheduled draws on debt service reserves reflecting financial difficulties; (D) unscheduled draws on credit enhancements reflecting financial difficulties; (E) substitution of credit or liquidity providers, or their failure to perform; (F) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; (G) modifications to rights of Bond holders, if material; (H) Bond calls, if material and tender offers; 13 4873-5541.4810\4 (I) defeasances; (J) release, substitution, or sale of property securing repayment of the Bonds if material; (K) rating changes; (L) bankruptcy, insolvency, receivership, or similar event of the obligated person; (M) the consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (N) appointment of a successor or additional trustee or the change of name of a trustee, if material; (0) Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material; "financial obligation" means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of a debt obligation or any such derivative instrument; provided that "financial obligation" shall not include municipal securities as to which a final official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule; and (P) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties. As used herein, for those events that must be reported if material, an event is material if a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, an event is also material if it would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. For the purposes of the event identified in (L)hereinabove, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an 14 4873-55414810\4 order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (3) In a timely manner,to the MSRB through EMMA, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph(b)(1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection(d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection(d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection(d); (D) any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. (1) The City agrees to make available to the MSRB through EMMA, in an electronic format as prescribed by the MSRB, the information described in subsection(b). (2) All documents provided to the MSRB pursuant to this subsection (c) shall be accompanied by identifying information as prescribed by the MSRB from time to time. (d) Term;Amendments; Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(2) hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office of the recording 15 4873-5541-4810\4 officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement(a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii)this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, of the change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of the Rule. SECTION 9. CERTIFICATION OF PROCEEDINGS. 9.01. Registration of Bonds. The City Administrator is hereby authorized and directed to file a certified copy of this resolution in the records of Dakota County, together with such additional information as is required, and to issue a certificate that the Bonds have been duly entered upon the County Treasurer-Auditor's bond register and the tax required by law has been levied. 9.02. Authentication of Transcript. The officers of the City and the City Administrator are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the Bonds and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the City as to the correctness of all statements contained therein. 9.03. Official Statement. The Preliminary Official Statement relating to the Bonds prepared and distributed by Northland Securities, Inc., is hereby approved. Northland Securities, Inc. is hereby authorized on behalf of the City to prepare and distribute to the Purchaser within seven business days from the date hereof, a supplement to the Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Bonds as is required to be included in the Official Statement by 16 4873-55414810\4 Rule 15c2-12 adopted by the Securities and Exchange Commission (the SEC) under the Securities Exchange Act of 1934. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Upon vote being taken thereon,the following voted in favor thereof: Hoyt,Bernhjelm,Lien, Porter,Wilson and the following voted against the same: None whereupon the resolution was declared duly passed and adopted. 17 4873-5541-4810\4 APPENDIX I Taxes Levied City of Faimington,Minnesota $3,650,000 G.O. Bonds, Series 2022A FINAL 105% Levy Abatement Debt service Date Total P+I CIF 105%Levy Levy Levy Levy Year Collection Year 02/01/2023 91,737.50 (91,737.50) - - - - - 02/01/2024 456,100.00 478,905.00 115,000.00 363,905.00 2022 2023 02/01/2025 456,350.00 479,167.50 120,000.00 359,167.50 2023 2024 02/01/2026 450,850.00 473,392.50 125,000.00 348,392.50 2024 2025 02/01/2027 449,850.00 472,342.50 130,000.00 342,342.50 2025 2026 02/01/2028 448,100.00 470,5 5.00 135,000.00 335,505.00 2026 2027 02/01/2029 455,600.00 478,380.00 145,000.00 333,380.00 2027 2028 02/01/2030 451,850.00 474,442.50 150,000.00 324,442.50 2028 2029 02/01/2031 452,350.00 474,967.50 160,000.00 314,967.50 2029 2030 02/01/2032 450,950.00 473,497.50 165,000.00 308,497.50 2030 2031 02/01/2033 453,20 .00 475,8 0.00 170,000.00 305,8 0.00 2031 2032 Total $4,616,937.50 (91,737.50) $4,751,460.00 $1,415,000.00 $3,336,460.00 4873-554111810\4 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF FARMINGTON GENERAL OBLIGATION BOND, SERIES 2022A R- $ Interest Rate Maturity Date Date of Original Issue CUSIP No. _% February 1,20_ July 6, 2022 REGISTERED OWNER: CEDE&CO. PRINCIPAL AMOUNT: THOUSAND DOLLARS THE CITY OF FARMINGTON, MINNESOTA (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above on the maturity date specified above, and promises to pay interest thereon fi•om the date of original issue specified above or from the most recent Interest Payment Date(as hereinafter defined) to which interest has been paid or duly provided for, at the annual interest rate specified above, payable on February 1 and August 1 in each year, commencing February 1, 2023 (each such date,an"Interest Payment Date"),to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding calendar month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof at the principal office of the agent of the Registrar described below, the principal hereof are payable in lawful money of the United States of America by check or draft drawn on U.S. Bank Trust Company, National Association, St. Paul, Minnesota, as bond registrar, transfer agent and paying agent, or its successor designated under the Resolution described herein (the "Registrar") or other agreed-upon means of payment by the Registrar. For the prompt and full payment of such principal and interest as the same respectively become due,the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue (the "Bonds") in the aggregate principal amount of$3,650,000, issued pursuant to a resolution adopted by the City Council (the Council) on June 6, 2022 (the "Resolution") to provide funds to finance certain street reconstruction projects and parking lot improvement projects in the City, and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapter 475 and Sections 469.1812 — 469.1815 and 475.58 subdivision 3b. The Bonds are issuable only in fully registered form, in denominations of$5,000 or any integral multiple thereof, of single maturities. 4873-5541-4810\4 Bonds maturing on or after February 1, 2031 shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of$5,000, on February 1, 2030, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City Administrator shall cause notice of the call for redemption thereof to be published if and as required by law, and, at least thirty(30) and not more than sixty (60) days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail,to the Registrar and registered holders of any Bonds to be redeemed at their addresses as they appear on the register, provided that notice shall be given to any securities depository in accordance with its operational arrangements. No defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date(unless the City shall default in the payment of the redemption price)such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. The Bonds have been designated as"qualified tax-exempt obligations"pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner,of the same aggregate principal amount,bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository,the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done,to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required;that, prior to the issuance hereof,the City Council has by the Resolution covenanted and agreed to collect and apply to payment of the Bonds ad valorem taxes 4873-55414810\4 A-3 levied on all taxable property in the City and tax abatement revenues, which taxes and tax abatement revenues are estimated to be collectible in years and amounts sufficient to produce sums not less than 5% in excess of the principal of and interest on the Bonds when due, and has appropriated such revenues and taxes to its General Obligation Bonds, Series 2022A Bond Fund for the payment of such principal and interest; that if necessary for the payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; that all proceedings relative to the projects financed by this Bond have been or will be taken according to law and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. 4873-55414810\4 A-4 IN WITNESS WHEREOF, the City of Farmington, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below. CITY OF FARMINGTON,MINNESOTA (facsimile signatul acsi • e signature—City Administrator) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: U.S. BANK TRUST COMPANY,NATIONAL ASSOCIATION, as Registrar By Authorized Representative 4873-55414810\4 A-5 TEN COM--as tenants in common UTMA ................. as Custodian for .................. (Cust) (Minor) TEN ENT--as tenants by the entireties under Uniform Transfers to Minors Act ........................... (State) JT TEN--as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond,with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other"signature guaranty program"as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934,as amended. Please insert social security or other identifying number of assignee: 4873-5541-4810\4 A-6 EXHIBIT B MATURITY SCHEDULES Year Street Reconstruction Plan Abatement Bonds Total Bonds 2024 $ 115,000 $ 180,000 $ 295,000 2025 120,000 190,000 310,000 2026 125,000 195,000 320,000 2027 130,000 205,000 335,000 2028 135,000 215,000 350,000 2029 145,000 230,000 375,000 2030 150,000 240,000 390,000 2031 160,000 250,000 410,000 2032 165,000 260,000 425,000 2033 170,000 270,000 440,000 Total $1,415,000 $2,235,000 $3,650,000 4873-5541-4810\4 DAKOTA COUNTY TREASURER-AUDITOR'S CERTIFICATE AS TO REGISTRATION AND TAX LEVY The undersigned, being the duly qualified and acting County Treasurer-Auditor of Dakota County, Minnesota,hereby certifies that there has been filed in my office a certified copy of a resolution duly adopted on June 6, 2022, by the City Council of Farmington, Minnesota, setting forth the form and details of an issue of $3,650,000 General Obligation Bonds, Series 2022A, dated as of July 6,2022, and levying taxes for the payment of the Bonds. I further certify that the issue has been entered on my bond register and the tax levy has been filed as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand and official seal this day of , 2022. Dakota County Treasurer-Auditor (SEAL) 4873-55414810\4 6/612/22,,,1110:333AMr PARITY Bid Form Dea m Wtro xnba: Parity Calendar Deal urt llpxx,ming Calendar I Overview I Resul I Excel Robert W.Baird&Co.,Inc.-Milwaukee,WI's Bid r Farmington $3,965,000 General Obligation Bonds,Series 2022A For the aggregate principal amount of$3,965,000.00,we will pay you$4,312,606.80,plus accrued Interest from the date of Issue to the date of delivery.The Bonds are to bear interest at the following rate(s): Maturity Dat ount$Coupon%Yield%Dollar Price 02/01/2024 360M 5.0000 1.7800 104.960 02/01/2025 365M 5.0000 1.9600 107.580 02/01/2028 375M 5.0000 2.0500 110.102 0F01J2027 385m 5.0000 2,1300 1 2.43 02/01P2028 390M 5.0000 2.2300 114.430 02/01/2029 400M 6.0000 2.3800 115.845 02/01/2030 410M 5.0000 2.45001 117.516 02/0112031 415M 4.0000 2.5300 110.067 02/01/2032 425M 3.0000 2.7000102.040 02/01/2033 440M 3.0000 2.8000 101.3 Totallnterest at 1,028,977.78 Premium: $347,608.80 Net Interest Cost $681,370.98 TIC: 2.621964 Time Last Bid Received On:06/06/2022 10:17:29 CDST This proposal is made subject to all of the terns and conditions of the Official Bid Form,the Official Notice of Sale,and the Preliminary Official Statement,all of which are made a part hereof. Bidder. Robert W.Baird&Co.,Inc,Milwaukee,wl Contact: Peter Anderson Tine: Telephone:414-7657331 Fax: https:/Iwww.neWssuehome.i-deal.com/Parity/asp/main.asp?page=parityBidform&customer-TM3&issue_key_no=324017&bid_no=1&sec type=BD&bi... 1/1 This bid is a firm offer for the purchase of the Bonds identified in the Notice of Sale, on the terms set forth in the bid form and the Notice of Sale, and is not subject to any conditions, except as permitted by the Notice of Sale. By submitting this bid, we confirm that we have an established industry reputation for underwriting new issuances of municipal bonds. Issuer Name: Farmington, M Company Name: Robert W. Baird &Co, Inc. Accepted By: Accepted By: yo , Accepted By: Date: June 6, 2022 ity ministrator Date: June 6, 2022