HomeMy WebLinkAbout07.07.25 Council Packet
Meeting Location:
Farmington City Hall, Council
Chambers
430 Third Street
Farmington, MN 55024
CITY COUNCIL REGULAR MEETING AGENDA
Monday, July 7, 2025
7:00 PM
Page
1. CALL TO ORDER 7:00 P.M.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. APPROVE AGENDA
5. ANNOUNCEMENTS / COMMENDATIONS
5.1. Parks and Recreation Month Proclamation
Proclaim July 2025 as Parks and Recreation Month in Farmington.
Agenda Item: Parks and Recreation Month Proclamation - Pdf
4 - 5
6. CITIZENS 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
7.1. Minutes of the June 16, 2025 Regular City Council Meeting
Agenda Item: Minutes of the June 16, 2025 Regular City Council
Meeting - Pdf
6 - 16
7.2. Development Contract - Dakota Meadows Preserve 1st Addition
Agenda Item: Development Contract - Dakota Meadows Preserve 1st
Addition - Pdf
17 - 34
7.3. Development Contract - Vita Attiva at South Creek Fourth Addition
Agenda Item: Development Contract - Vita Attiva at South Creek Fourth
Addition - Pdf
35 - 53
7.4. Development Contract - Vita Attiva at South Creek Fifth Addition
Agenda Item: Development Contract - Vita Attiva at South Creek Fifth
54 - 71
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Addition - Pdf
7.5. Payment of Claims
Agenda Item: Payment of Claims - Pdf
72 - 73
Payment of Claims
7.6. Police Captain Job Description
Agenda Item: Police Captain Job Description - Pdf
74 - 77
7.7. Professional Services Agreement with Abdo for Human Resources
Support
Agenda Item: Professional Services Agreement with Abdo for Human
Resources Support - Pdf
78 - 111
7.8. Staff Approvals & Recommendations
Agenda Item: Staff Approvals & Recommendations - Pdf
112
7.9. Declaring Items as Surplus and Authorizing Disposal (Parks and
Recreation)
Agenda Item: Declaring Items as Surplus and Authorizing Disposal
(Parks and Recreation) - Pdf
113 - 114
7.10. Donation of Treadmill for the Rambling River Center by David McKnight
Agenda Item: Donation of Treadmill for the Rambling River Center by
David McKnight - Pdf
115 - 116
7.11. Joint Powers Agreement with Town of Eureka for Shared Road
Maintenance Agreement
Agenda Item: Joint Powers Agreement with Town of Eureka for Shared
Road Maintenance Agreement - Pdf
117 - 127
7.12. Professional Services Agreement with WSB LLC for the 2026 Street
Improvements Preliminary Design
Agenda Item: Professional Services Agreement with WSB LLC for the
2026 Street Improvements Preliminary Design - Pdf
128 - 147
7.13. Receive Quotes and Award a Contract for the 2025 Shade Tree Bond
Grant Planting
Agenda Item: Receive Quotes and Award a Contract for the 2025 Shade
Tree Bond Grant Planting - Pdf
148 - 165
7.14. Receive Quotes and Award a Contract for the 2025 Summer Ash Tree &
Stump Removal
Agenda Item: Receive Quotes and Award a Contract for the 2025
Summer Ash Tree & Stump Removal - Pdf
166 - 184
8. PUBLIC HEARINGS
9. AWARD OF CONTRACT
10. PETITIONS, REQUESTS AND COMMUNICATIONS
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11. UNFINISHED BUSINESS
12. NEW BUSINESS
12.1. 2024 Annual Comprehensive Financial Report and Related Audit
Reports
Staff recommends that the City Council accept the audited financial
statements and independent auditor's reports for the fiscal year ended
December 31, 2024.
Agenda Item: 2024 Annual Comprehensive Financial Report and
Related Audit Reports - Pdf
185 - 417
13. CITY COUNCIL ROUNDTABLE
14. ADJOURN
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kellee Omlid, Parks & Recreation Director
Department: Parks & Recreation
Subject: Parks and Recreation Month Proclamation
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
Since 1985, people in the United States have celebrated Parks and Recreation Month in July to
promote building strong, vibrant, and resilient communities through the power of parks and
recreation and to recognize the more than 160,000 full-time parks and recreation professionals
along with hundreds of thousands of part-time and seasonal workers and volunteers that maintain
our country’s local, state, and community parks.
DISCUSSION:
This year’s theme, “Build Together, Play Together,” is a reminder of the contributions of more
than 160,000 full-time park and recreation professionals — along with hundreds of thousands of
part-time and seasonal workers and volunteers — who maintain our country’s close-to-home parks.
Thank you to the Parks and Recreation Staff, volunteers, businesses, and organizations for all you
do to provide quality facilities, parks, programs, and an environment that improves quality of life and
promotes community unity in Farmington!
The Parks and Recreation Department will celebrate Parks and Recreation Month by hosting a
party in the park on Friday, July 18, at Lake Julia Park. The party starts at 7 pm with Kidsdance,
games, face painting, crafts, and more. Kidsdance is America’s interactive DJ service for kids. At
dusk, the movie IF will be shown. Thank you to the event sponsors, including Castle Rock Bank,
Farmington Youth Hockey Association, Marschall Line, State Farm Sierra Juhl, and VFW Post
#7662. This is a free event, so all are invited to attend.
ACTION REQUESTED:
Proclaim July 2025 as Parks and Recreation Month in Farmington.
ATTACHMENTS:
Parks and Recreation Month Proclamation
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Proclamation
Parks and Recreation Month – July 2025
WHEREAS, parks and recreation is an integral part of communities throughout this
country, including Farmington, promoting health and wellness and
improving the physical and mental health of people who live near parks; and
WHEREAS, parks and recreation promotes time spent in nature, which positively impacts
mental health by increasing cognitive performance and well-being, and
alleviating illnesses such as depression, attention deficit disorders, and
Alzheimer’s; and
WHEREAS, parks and recreation encourages physical activities by providing space for
popular sports, hiking trails, and many other activities designed to promote
active lifestyles; and
WHEREAS, parks and recreation programming and education activities, such as out-of-
school time programming, youth sports, and environmental education, are
critical to child development; and
WHEREAS, parks and recreation increases a community’s economic prosperity through
increased property values, expansion of the local tax base, increased tourism,
the attraction and retention of businesses, and crime reduction; and
WHEREAS, parks and recreation is fundamental to the environmental well-being of our
community and the City’s parks and natural recreation areas ensure the
ecological beauty of Farmington and provide a place for children and adults
to connect with nature and recreate outdoors; and
WHEREAS, the U.S. House of Representatives has designated July as Parks and
Recreation Month, and the City of Farmington recognizes the benefits
derived from parks and recreation resources.
NOW THEREFORE, I, Joshua Hoyt, Mayor, on behalf of the Farmington City Council, do
hereby proclaim July 2025 as
PARKS AND RECREATION MONTH
IN WITNESS WHEREOF,
I have hereunto set my hand
and caused the seal of
the City of Farmington, Minnesota,
to be affixed on this 7th day of July 2025.
___________________________________
Joshua Hoyt, Mayor
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Shirley Buecksler, City Clerk
Department: Administration
Subject: Minutes of the June 16, 2025 Regular City Council Meeting
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
For Council approval are the minutes of the June 16, 2025 Regular City Council Meeting.
ACTION REQUESTED:
Approve the minutes of the June 16, 2025 Regular City Council Meeting.
ATTACHMENTS:
06.16.25 Council Minutes
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Regular City Council Meeting Minutes of June 16, 2025 Page 1 of 10
City of Farmington
Regular Council Meeting Minutes
Monday, June 16, 2025
The City Council met in regular session on Monday, June 16, 2025, at Farmington
City Hall, 430 Third Street, Farmington, Minnesota.
1. CALL TO ORDER
Mayor Hoyt called the meeting to order at 7 pm.
2. PLEDGE OF ALLEGIANCE
Mayor Hoyt led everyone in the Pledge of Allegiance.
3. ROLL CALL
Members Present: Mayor Joshua Hoyt
Councilmembers Holly Bernatz, Jake Cordes, Nick Lien,
and Steve Wilson
Members Absent: None
Staff Present: Lynn Gorski, City Administrator
David Chanski, HR Director/Assistant City Administrator
Amy Schmidt, City Attorney
Deanna Kuennen, Economic & Community Development
Director
Tony Wippler, Planning Manager
Kim Sommerland, Finance Director
Matt Price, Fire Chief
Kellee Omlid, Parks & Recreation Director
Nate Siem, Police Chief
John Powell, Public Works Director
Eric Whitmer, Public Works Superintendent
Caryn Hojnicki, Communications Specialist
Shirley Buecksler, City Clerk
Also Present: Gary Rutherford, Police Chief-Retired
David McKnight, Former City Administrator
Mike Slavik, Dakota County Commissioner
Rambling River Center Advisory Board Commissioners:
Rachel Edwards, Mary Garlets, Pat Hennen, Judy Jenke
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4. APPROVE AGENDA
Motion was made by Councilmember Lien and seconded by Councilmember
Bernatz to approve the agenda, as presented.
Motion carried: 5 ayes / 0 nays
5. ANNOUNCEMENTS / COMMENDATIONS
5.1 Employee Recognitions
Director Chanski: We have the opportunity to recognize two employees
and their service to the City of Farmington:
Ron Ley has served the City for 24 years as Mechanic and then Lead
Mechanic. During those 24 years, there was not a single vehicle that he
did not maintain. Since 2002, he has upfitted every Police cruiser in service.
Ron’s dedication and diligence in not only upfitting but maintaining the
fleet of Police vehicles led Ron to receive the Chief’s Award of Merit in
2024. Council and Staff spoke words of appreciation for Ron’s service to
the City of Farmington for more than two decades. Ron’s professionalism
and dedication will be missed, and we wish him a happy and long
retirement. Ron’s last day with the City will be July 3rd.
Lynn Gorski created a legacy in her four years with the City of Farmington.
Mayor Hoyt, Council, and Staff spoke of her professionalism, leadership,
integrity, honesty, compassion and caring, and that she always led with
her whole heart, putting the needs of Farmington first and never shying
away from the hard decisions when they needed to be made. Lynn
showed up for events, led with grace, always had time for others, and will
be greatly missed by everyone. Lynn’s last day with the City is July 1st.
Lynn said a few words.
To Mayor Hoyt, Councilmembers, Team Farmington, and members of
the Farmington Community:
As I prepare for my final day as City Administrator, I want to take a
moment to express my deepest gratitude for the incredible journey
over the last four years. Serving the City of Farmington has been one
of the greatest honors of my professional life. We have been through
a remarkable period of change and growth together. In just a short
amount of time, we have built a strong foundation, brick by brick.
We’ve been steadily building forward, upward ever since that
momentum we’ve created through strategic initiatives and
strengthened partnerships. We have brought us closer to that top floor
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of excellence and accomplishments. None of this progress would
have been possible without each one of you.
To City Council:
Thank you for your unwavering support and your bold vision, strength,
and your trust in me to help guide this organization.
To Team Farmington:
You are the heartbeat of the City, each and every one of you. Where
would we be without your commitment, your resilience, your
professionalism, and your service above self? Thank you for placing
your trust and confidence in me. Thank you for consistently raising the
bar, for continuing to show up, and sharing Farmington’s story, while
making a difference. I also want to extend many thanks to incredible
people I’ve had the privilege to work alongside in the Farmington
community.
The Farmington School District, Dakota County Chamber, the County,
Rotary, the Farmington Community Foundation, and so many others
who have played a role in making this City stronger, more connected,
and full of promise:
Thank you for the memories, the support, and the opportunity to serve
the City of Farmington. Thank you all.
6. CITIZENS COMMENTS / RESPONSES TO COMMENTS
The following citizen(s) addressed the Council:
• Jeff Schottler, 22420 Calico Ct, Farmington
• Gina Trebil, 22402 Calico Ct, Farmington
• Colby Salonek, 22421 Calico Ct, Farmington
• Jonathan Nygren, 22403 Calico Ct, Farmington
• Kevin Niendorf, 613 12th St, Farmington
• Brian Trebil, 22402 Calico Ct, Farmington
• Nate Ryan, 22390 Cambrian Way, Farmington
• Casey Nelson, 3095 224th St W, Farmington
• Taylor Heitman, 1025 Westview Dr, Farmington
• (Name not provided), 3054 224th St W, Farmington
• Cameron Duncan, 22296 Cambrian Way, Farmington
• Nancy Aarestad, 22165 Beaumont Ave, Castle Rock Township
• Nick Nelson, 3095 224th St W, Farmington
• Terrie Pearson, 2475 225th St W, Castle Rock Township
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7. CONSENT AGENDA
7.1 Minutes of the June 2, 2025 Work Session
7.2 Minutes of the June 2, 2025 Regular City Council Meeting
7.3 Establish Public Hearing Date to Consider Adoption of Five-Year Street
Reconstruction Plan
7.4 Financial Review for the Quarter Ending March 31, 2025
7.5 Payment of Claims
7.6 Creation of Police Captains and Revised Police Department
Organizational Chart
7.7 Staff Recommendations and Approvals, Including the appointment(s) of:
• Tyler Wood, Police Officer
• Christina Calderon, Community Service Officer
• Joselyne Bowen, Paid-on-Call Firefighter
• Andrew Enger, Paid-on-Call Firefighter
• Joshua Hennes, Paid-on-Call Firefighter
• Sarah Simonton, Paid-on-Call Firefighter
• Timothy Nielsen, Paid-on-Call Firefighter
• Brock Wyandt, Seasonal Public Works Maintenance Worker
7.8 Donation of Flowers for Downtown from the Farmington Rotary
7.9 Facility Use Memoranda of Understanding with St. Cloud State University
Precision Driving Center
7.10 Purchase of Playground Equipment for Westview Acres Park
Motion was made by Councilmember Wilson and seconded by
Councilmember Cordes to approve the Consent Agenda, as presented.
Motion carried: 5 ayes / 0 nays
8. PUBLIC HEARINGS
9. AWARD OF CONTRACT
10. PETITIONS, REQUESTS AND COMMUNICATIONS
10.1 Resolution 2025-043 Approving the Final Plat – Farmington Industrial Park
4th Addition
Planning Manager Wippler presented the final plat and Resolution
2025-043 for approval of Farmington Industrial Park 4th Addition and
answered questions for Council.
Motion was made by Councilmember Cordes and seconded by
Councilmember Wilson to adopt Resolution 2025-043 Approving and
Authorizing Signing of Final Plat Farmington Industrial Park 4th Addition,
contingent upon the following:
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a. A Development Contract between the applicant and the City of
Farmington shall be executed, and security fees and costs shall be
paid. Submission of all other documents required under the
Development Contract shall be required.
b. The final plat must be amended to add a signature block to the
instrument of dedication for the Chair of the Planning Commission.
c. The final plat must be amended to show the restricted access along
the entirety of Pilot Knob Road as required by Dakota County.
Motion carried: 5 ayes / 0 nays
10.2 Resolutions 2025-044 and 2025-045 Approving the Final Plats for Vita Attiva
at South Creek Fourth and Fifth Additions
Planning Manager Wippler presented the final plats and Resolutions
2025-044 and 2025-045 for approval of Vita Attiva at South Creek Fourth
and Fifth Additions and answered questions for Council. The applicant
was also present for any questions.
Motion was made by Councilmember Wilson and seconded by
Councilmember Bernatz to adopt Resolution 2025-044 Approving and
Authorizing Signing of Final Plat Vita Attiva at South Creek Fourth Addition,
contingent upon the following:
a. The satisfaction of all engineering comments related to the
construction plans for grading, utilities, and streets.
b. A Development Contract between he applicant and the City of
Farmington shall be executed, and security fees and costs shall be
paid. Submission of all other documents required under the
Development Contract shall be required.
Motion carried: 5 ayes / 0 nays
Motion was made by Councilmember Cordes and seconded by
Councilmember Wilson to adopt Resolution 2025-045 Approving and
Authorizing Signing of Final Plat Vita Attiva at South Creek Fifth Addition,
contingent upon the following:
a. The satisfaction of all engineering comments related to the
construction plans for grading, utilities, and streets.
b. A Development Contract between the applicant and the City of
Farmington shall be executed, and security fees and costs shall be
paid. Submission of all other documents required under the
Development Contract shall be required.
Motion carried: 5 ayes / 0 nays
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10.3 Resolution 2025-046 and Ordinance 2025-003 Approving the Final Plat and
Final Planned Unit Development – Dakota Meadows Preserve 1st Addition
Planning Manager Wippler presented Resolution 2025-046 and
Ordinance 2025-003 for approval of the final plat and final Planned Unit
Development for Dakota Meadows Preserve 1st Addition.
Motion was made by Councilmember Bernatz and seconded by
Councilmember Cordes to adopt Resolution 2025-046 Approving and
Authorizing Signing of Final Plat Dakota Meadows Preserve 1st Addition,
contingent upon the following:
a. Construction plans must be amended to reflect the recommendation
from the Parks and Recreation Commission made at its May 14th
regular meeting regarding trails and sidewalks within this
development.
b. The final plat must be amended to reflect the following street names:
223rd Street W instead of Street A; Denmark Trail for the portion of Street
B north of the intersection with Street A; Denmark Court for the cul-de-
sac portion of Street B south of the intersection with Street A.
c. Satisfaction of all engineering comments related to the construction
plans for grading and utilities and execution of a Development
Contract between the Developer and the City of Farmington and
security and fees paid. Submission of all other documents required
under the Development Contract shall be required.
d. Outlot C can be removed from the final plat and remaining outlots
relabeled as appropriate.
Motion carried: 5 ayes / 0 nays
Motion was made by Councilmember Lien and seconded by
Councilmember Bernatz to pass Ordinance 2025-003 Amending Title 10,
Chapter 5, Section 19, of the Farmington City Code, Adding PUD-2 –
Dakota Meadows Preserve to the Zoning Code and Establishing
Development Standards.
Motion carried: 5 ayes / 0 nays
11. UNFINISHED BUSINESS
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12. NEW BUSINESS
12.1 Resolution Authorizing the Submittal of the Staffing for Adequate Fire and
Emergency Response (SAFER) Grant Program Application
Fire Chief Price presented the SAFER Grant Program, administered by
FEMA. The program aims to help Departments meet staffing standards,
improve emergency response capabilities, and support Firefighter health
and safety, particularly within volunteer and combination Fire
Departments. Chief Price answered questions for Council.
Motion was made by Councilmember Wilson and seconded by
Councilmember Bernatz to adopt Resolution 2025-042 Authorizing to Act
as Legal Sponsor and Authorization for Staffing for Adequate Fire and
Emergency Response (SAFER) Grant Program Application – for hiring of
six (6) full-time Staff and approve the matching funds of 25% for years one
and two, and 65% for year three.
Motion carried: 5 ayes / 0 nays
13. CITY COUNCIL ROUNDTABLE
Councilmember Lien: Thank you to Lynn.
Councilmember Bernatz: Thank you to Ron – the dedication of any and every
employee of the City is worth recognition, whether you’re here four years, 24
years, or somewhere in-between that. If you put your time, energy, and effort
into the work that you’re doing to benefit all our residents, it should be
recognized. So, thank you to him and to Lynn.
Councilmember Cordes: Congratulations to the graduates of Farmington High
School and the brand-new Farmington Tiger alumni. Also, my prayers are with
Senator John Hoffman and his wife for a swift recovery. And I extend my prayers
and condolences to the family and friends of Representative Melissa Hortman
and her husband, Mark. May their memory be a blessing. Violence has no
place in politics. Unfortunately, over the last decade or more, it’s become
easier and easier to dehumanize people that we disagree with, and we all
need to do better. An additional thank you to our law enforcement members
from across the state for the relentless surge throughout the weekend but,
specifically, three of our Farmington Police Department members for their work
over the weekend.
Councilmember Wilson: It’s exciting to have the Rambling River Center building
opening soon and to have had the work done in one phase. And thank you to
the Rambling River Center Advisory Board for being here tonight. Also, there
are a lot of good things that were approved on the Consent Agenda tonight,
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including the Five-Year Street Reconstruction Plan, the generous donation by
the Rotary Club of flowers for downtown, and the purchase of playground
equipment at Westview Acres. I also want to acknowledge the residents that
were tonight. Even if hearing the message is uncomfortable from this end, we
represent them, and we support them. I appreciate that there were a lot of
folks here, including a lot of younger families and kids. In relation to Jake’s last
comment about the obvious change in the political environment , we sign up
because we love the community, work hard for the community, and make
decisions that we feel are in the best interests of the community. The murder of
Representative Melissa Hortman and her husband, Mark, is really, really sad. I
will be praying for the families and would encourage all of us to do so. Steve
also told a story about Lynn’s sense of humor and that she was always
approachable – we will miss you, and thank you, again.
Administrator Gorski: I can’t thank you enough, all of you. Also, Ron Ley is a
great guy and so deserves his retirement. We are so thankful for his work, his
leadership, and the succession planning that he did at the mechanic shop.
Clerk Buecksler: Congratulations to Ron on his retirement and best wishes to
you, Lynn. You will truly be missed.
Director Chanski: City Offices will be closed on Thursday in observance of
Juneteenth. And, Lynn, you still have two weeks, and we have things to do. And
congratulations to Ron. At the last Council meeting, you approved Damon’s
promotion from Mechanic to Mechanics Lead effective July 4th, and we are
excited to see him take that new role.
Director Kuennen: It’s not the number of years; it’s the impact you can have
within that amount of time. Thank you, Lynn, for modeling how to lead with
compassion, how to treat people with kindness – the world needs more of that,
and how to always be a professional. You will definitely be missed. Thank you.
Director Powell: Ron was steady, even keeled, and he and Damon functioned
as a team in every best sense of the word. We have upwards of 150 different
pieces of equipment and vehicles from mowers to tractors to all sorts of pieces
of equipment. Never did I hear a negative word about something being broken
down, not ready to go, or wasn’t fixed yet. There are only two of them, and
they would be in during snowstorms because if something breaks during a
snowstorm, you want someone there to be able to fix it quickly. So, my personal
thanks to Ron for making my job easier during his time here before he retired.
Thank you.
Director Omlid: Congratulations and best wishes to Ron on his retirement. What
I will miss most about him is our conversations about bicycling, and he often
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rode his bicycle to City Hall. Also, Open Door Pantry is tomorrow from 3-4:30 pm
at Faith Church. And as the Rambling River Center Advisory Board stated this
evening, we are officially moved out of the Fire Department. Thank you to Matt
and his team for opening their doors to the seniors. It was very critical and
important, and you let us be a part of your home and share our treats with you.
Thank you for that – we really appreciate it. And to Lynn, when we were trying
to think of a place for the fitness room, we knew it couldn’t be at the Fire Station,
and it was Lynn who suggested Conference Room 169. It was her idea to use
this room, and it was important for the members who still use the fitness center.
Thank you for that idea and being open to that. We are moving back into the
Center, and we will be open one day next week – stay tuned for that. It will be
on our Facebook page and the City’s website. We are still taking registrations
for summer programs, so hop on the City’s website and register.
Director Sommerland: Congratulations to Ron – hopefully he has a wonderful
retirement. To Lynn, best of luck. I appreciate so much your amazing leadership.
You will be missed.
Chief Price: This evening, you approved five individuals for Paid-on-Call
Firefighter. We still have a few more applicants going through the process, and
hopefully by July 7th we will have those for approval. With all luck, we will have
a 13 Paid-on-Call class this year. The last time I can think of that we had double
digits was almost seven years ago. Also, Ron was a great guy – I could pull the
truck over and he, no questions asked, opened the door, brought me in, and
fixed what needed to be fixed. He was phenomenal and could diagnose
anything by listening to it or looking at it. I will really miss him. And, Lynn, best of
luck to you.
Chief Siem: Ron is an incredible man, and I was fortunate enough to be able
to work with him pretty closely over the last couple of years as Admin Sergeant
and Deputy Chief managing the fleet. Almost daily conversations with Ron, and
others mentioned Steady Ron – he’s always focused on work. Whenever I would
go there and start talking with Ron and Damon, you can always tell that Ron
starts to get a little bit annoyed at the length of the conversation, not because
he’s not interested, but he’s focused on his work, and he wants to get back
and get the job done. Thank you to him for that and because he’s leaving us
in a great position with Damon. He’s incredible and has been great for the
Police Department. Thank you again, Lynn, for everything you’ve done for the
City, for me in particular, and getting me to where I am right now, I appreciate
it. Good luck with your future. Also, we are just around the corner from Top the
Tater Days. The Police Department is doing a lot to ramp up our preparations
for that, and we’re all excited to get that going, too.
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Mayor Hoyt: Congratulations to Ron. We had a nice little paragraph in the State
of the City for him and, Ron being who he is, he’s going to quietly disappear
into retirement and just do his thing and enjoy it. That’s what you want people
to do. Congratulations to the Farmington High School Class of 2025.
Congratulations to a few of the sports teams – every year we have State and
sections champions, and it’s great to see the community continue to show up,
especially against the bigger schools that used to push us around. A lot of great
things – Top the Tater Days starts next week, the Rambling River Center will be
opening, and there’s a lot of good stuff going on and sometimes we miss
amongst state headlines, national headlines, and other things that are
happening. There are a lot of good things happening right here in our
community. Lynn, best of luck with all the things and we appreciate everything
you have done. You definitely made a lasting impression on many. So, thank
you very much.
14. ADJOURNMENT
Motion was made by Councilmember Wilson and seconded by
Councilmember Lien to adjourn the meeting at 9:37 pm.
Motion carried: 5 ayes / 0 nays
Respectfully submitted,
Shirley R Buecksler
City Clerk
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Tony Wippler, Planning Manager
Department: Community Development
Subject: Development Contract - Dakota Meadows Preserve 1st Addition
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
The City Council approved the final plat for Dakota Meadows Preserve 1st Addition on June 16,
2025. 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:
Dakota Contract Development the is for and consideration Council's for Attached approval
Meadows Preserve 1st Addition. The attached contract is a standard Development Contract that
spells out the requirements for development of the land, including timelines to complete the platting
process, public the of construction addressing and charges development defining fees,
infrastructure required to serve the development together with the associated sureties.
The Developer has reviewed the attached contract and finds it acceptable.
BUDGET IMPACT:
Below are the fees that will be collected as part of the Development Contract:
Surface Water Quality Management Fee: $1,270
Surface Water Management Fee: $134,832
Watermain Trunk Area Charge: $52,794
Sanitary Sewer Trunk Area Charge: $28,302
Park Dedication (cash in lieu): $65,494
Sealcoating: $7,922
ACTION REQUESTED:
Adopt the attached Development Contract and authorize its execution.
ATTACHMENTS:
Dakota Meadows dc - CC
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Tony Wippler, Planning Manager
Department: Community Development
Subject: Development Contract - Vita Attiva at South Creek Fourth Addition
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
The City Council approved the final plat for Vita Attiva at South Creek Fourth Addition on June 16,
2025. A condition of approval was that a Development Contract between the Developer and the
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 Vita Attiva at
South Creek Fourth Addition. The attached contract is a standard Development Contract that spells
out the requirements for development of land, including timelines to complete the platting process,
defining development charges and fees, 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:
Below are the fees that will be collected as part of the Development Contract:
Surface Water Quality Management Fee: $1,642
Surface Water Management Fee: $174,338
Watermain Trunk Area Charge: $68,263
Sanitary Sewer Trunk Area Charge: $36,594
Park Dedication (cash in lieu): $111,328
Sealcoating: $26,586
ACTION REQUESTED:
Adopt the attached Development Contract and authorize its execution.
ATTACHMENTS:
Vita 4th dc - CC
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Tony Wippler, Planning Manager
Department: Community Development
Subject: Development Contract - Vita Attiva at South Creek Fifth Addition
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
The City Council approved the final plat for Vita Attiva at South Creek Fifth Addition on June 16,
2025. A condition of approval was that a Development Contract between the Developer and the
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 Vita Attiva at
South Creek Fifth Addition. The attached contract is a standard Development Contract that spells
out the requirements for development of the land, including timelines to complete the platting
process, public the of construction addressing fees, and charges development defining
infrastructure required to serve the development, together with the associated sureties.
The Developer has reviewed the attached contract and finds it acceptable.
BUDGET IMPACT:
Below are the fees that will be collected as part of the Development Contract:
Surface Water Quality Management Fee: $268
Surface Water Management Fee: $39,798
Watermain Trunk Charge: $11,128
Sanitary Sewer Trunk Area Charge: $5,965
Park Dedication (cash in lieu): $14,382
Sealcoating: $1,381
ACTION REQUESTED:
Adopt the attached Development Contract and authorize its execution.
ATTACHMENTS:
Vita 5th dc - CC
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kim Sommerland, Finance Director
Department: Finance
Subject: Payment of Claims
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
Minnesota Statutes require that all claims for payment be presented to the City Council for review
and approval.
DISCUSSION:
The City Council has established a process to review and approve claims for payment at each
regular meeting. The list of claims for the period of 06/11/2025 to 07/02/2025 is being presented for
consideration, ensuring compliance with State law and maintaining proper financial oversight.
BUDGET IMPACT:
The claims paid will reduce the available budget for the accounts listed in the detailed report
provided to the Council.
ACTION REQUESTED:
Approve payment of claims.
ATTACHMENTS:
Council Summary Payment of Claims 07-07-2025
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CLAIMS FOR APPROVAL 06/11/2025-07/02/2025
CHECK PAYMENTS 926,052.52$
ELECTRONIC PAYMENTS 451,319.22$
TOTAL 1,377,371.74$
The City Council receives a detail list of claims paid that is available to
the public upon request.
CITY OF FARMINGTON
SUMMARY PAYMENT OF CLAIMS
July 7, 2025
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: David Chanski, Asst City Admin/HR Director
Department: HR
Subject: Police Captain Job Description
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
Staff is seeking approval of a new job description for the position of Police Captain.
DISCUSSION:
The City Council previously approved job descriptions for an Administrative Captain and an
Operations Captain within the Police Department. These positions would replace the existing
Deputy Chief and Administrative Sergeant positions. However, upon further review, Chief Siem and
Assistant City Administrator Chanski came to the decision that it would serve the Police Department
better to have the Captain job description be a bit more generic with Administration and Operations
being duty assignments, similar to how the Sergeant positions are organized.
BUDGET IMPACT:
No Budgetary Impact
ACTION REQUESTED:
Approval of the Police Captain job description.
ATTACHMENTS:
Police Captain Job Description
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CITY OF FARMINGTON, MN
CLASS SPECIFICATION
CLASS SPECIFICATION TITLE: POLICE CAPTAIN
1
BAND GRADE SUBGRADE FLSA STATUS:
D 6 1 Exempt
CLASS SUMMARY:
The Captain is a sworn law enforcement administrator responsible for leading and managing divisions of the Police
Department such as Administration and Operations. This position reports directly to the Chief of Police and plays
a critical leadership role in advancing the department’s mission and goals. The Captain may be assigned to oversee
administrative functions (such as investigations, records, policy development, and technology) or operational
functions (including patrol, scheduling, community engagement, and training), depending on departmental needs.
This job description reflects the general duties and responsibilities necessary to describe the principal functions of
the position. It should not be considered a detailed list of all work requirements. Specific assignments may vary
based on department needs.
TYPICAL CLASS ESSENTIAL DUTIES: (These duties are a representative sample;
position assignments may vary.)
FRE-
QUENCY
BAND/
GRADE
1.
Provides leadership and direction to assigned divisions (Patrol, Investigations,
Records, CSOs, Support Staff).
2. Supervises assigned personnel including Sergeants, Investigators, Records,
CSOs, and other staff.
3. Manages scheduling, time-off approvals, staffing, and shift coverage to ensure
24/7 police operations.
4. Oversees departmental compliance with POST mandates, OSHA, AWAIR,
Right to Know, and other regulatory standards.
5. Coordinates and ensures department-wide training, documentation, and
professional development.
6. Leads investigative operations, assigns cases, reviews outcomes, and ensures
proper evidence handling.
7.
8.
9.
10.
11.
12.
Manages department technology systems including body/squad cameras, video
surveillance, and access control.
Oversees the department’s property and evidence system in accordance with
legal standards.
Coordinates and supervises community-facing programs such as the Chaplain
Program and community outreach.
Oversees fleet management, equipment maintenance, and facility needs.
Assists the Chief of Police in the preparation and monitoring of department
budgets.
Drafts and maintains department policies and procedures, ensuring legal and
operational alignment.
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CITY OF FARMINGTON, MN
CLASS SPECIFICATION
CLASS SPECIFICATION TITLE: POLICE CAPTAIN
2
13.
14.
15.
16.
17.
18.
19.
Represents the department at city council meetings, community functions, and
with public/private stakeholders.
Assists in maintaining the Emergency Operations Plan and oversees the
outdoor warning siren system.
Performs internal investigations, provides evaluations, and recommends
disciplinary action as appropriate.
Responsible for recruitment processes including posting, testing, and making
hiring recommendations.
Acts in the capacity of the Chief of Police during absences or as assigned.
Reviews crime trends and recommends enforcement strategies or resource
allocation adjustments.
Develops and manages grant applications, RFPs, contracts, and other
administrative documents.
Training and Experience (positions in this class typically require):
Minimum Qualifications
Bachelor’s degree in law enforcement or related field and five years law enforcement experience or two-year degree
with eights years experience. Two years of supervisory experience.
Licensing Requirements (positions in this class typically require):
• Valid driver's license
• POST Board license
Knowledge, Skills and Abilities (position requirements at entry):
• Strong leadership and supervisory skills with the ability to manage diverse teams.
• In-depth understanding of law enforcement operations, investigative practices, and police administration.
• Knowledge of budgeting, policy development, and personnel management.
• Proficient in the use and management of law enforcement technology and data systems.
• Excellent written and oral communication skills for public representation and internal communication.
• Ability to assess community needs and develop responsive programs or initiatives.
• Skilled in emergency management planning and coordination.
• Commitment to ethical leadership, accountability, and organizational integrity.
Working Hours (position requirements at entry):
Full-time day shift with flexible hours, but occasionally required to work extended hours including evenings,
weekends, and holidays.
Tools and Equpment Used
Tools and equipment used in a Police Department environment including, but not limited to: computers, fax, copier,
phones, calculator, television, handgun, rifle, shotgun, Taser, baton, handcuffs, breath testing equipment, speed
detection equipment, audio visual equipment, IP security system.
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CITY OF FARMINGTON, MN
CLASS SPECIFICATION
CLASS SPECIFICATION TITLE: POLICE CAPTAIN
3
Physical Demands
Requires the ability to operate, maneuver and/or control the actions of equipment, machinery, tools, and/or
materials used in performing essential functions.
Tasks involve the ability to exert light physical effort in sedentary to light work, but which may involve some lifting,
carrying, pushing and/or pulling of objects and materials of moderate to heavy weight (20- 200 pounds). Position
requires the simultaneous use of arms, legs, hands, and feet in/from various physical positions while in duty gear
including, but not limited to, prone, sitting, kneeling, and standing.
Ability to recognize and identify degrees of similarities or differences between characteristics of colors, shapes,
sounds, tastes, odors and textures associated with job-related objects, materials and tasks.
Some tasks require the ability to perceive and discriminate sounds
Environmental Adaptability
Work is performed in a standard office with some travel to various locations to attend meetings and/or perform
police activities in responding to emergency scenes, disasters, or critical incidents. Occasionally works near moving
mechanical parts; occasionally exposed to outside weather conditions and wet and/or humid conditions;
occasionally works in high precarious places; occasionally exposed to fumes or airborne particles, toxic or caustic
chemicals, extreme cold, extreme heat, risk of electrical shock, risk of radiation, and vibration; the noise level in the
work environment is usually moderate; however, the noise level is occasionally very loud due to sirens, gunfire,
etc.
Judgement and Situational Reasoning Ability
Requires the ability to apply principles of rational systems. Ability to interpret instructions furnished in written, oral,
diagrammatic, or schedule form. Ability to exercise independent judgment to adopt or modify methods and
standards to meet variations in assigned objectives.
Requires the ability to exercise the judgment, decisiveness and creativity required in situations involving the
evaluation of information against sensory, judgmental, or subjective criteria, as opposed to that which is clearly
measurable or verifiable.
Mathematical Ability
Requires the ability to perform addition, subtraction, multiplication and division; ability to calculate decimals and
percentages; may require ability to perform mathematical operations involving basic algebraic principles and
formulas, and basic geometric principles and calculations.
Language Ability and Interpersonal Communication
Requires the ability to evaluate, audit, deduce, and/or assess data and/or information using established criteria.
Includes exercise of discretion in determining actual or probable consequences, and in referencing such evaluation
to identify and select alternatives.
Requires the ability to provide guidance, assistance, and/or interpretation to others on how to apply procedures
and standards to specific situations.
Requires the ability to utilize a wide variety of reference, descriptive, advisory and/or design data and information
such as statutes, financial statements, technical manuals, budgets, miscellaneous reference materials, and
accounting materials.
Classification History:
Draft prepared by City of Farmington
Date: 07/2025
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: David Chanski, Asst City Admin/HR Director
Department: HR
Subject: Professional Services Agreement with Abdo for Human Resources Support
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
Staff is seeking approval to contract with Abdo for HR Director level support while Assistant City
Administrator/HR Director David Chanski assumes the role of Interim City Administrator, which
began July 2.
DISCUSSION:
With the departure of City Administrator Lynn Gorski on July 1, the City Council appointed Assistant
City Administrator/HR Director David Chanski to serve as Interim City Administrator until a new City
Administrator is selected and begins employment. As such, David will execute the responsibilities of
both positions for an estimated 3-4 months.
In addition to day-to-day organizational management, there are a number of projects and priorities
that need to be completed during this period, including but not limited to, renegotiating all 4 of the
City's union contracts, the implementation of a new ERP system, the development of the 2026
Budget, preparation for full-time Firefighters in 2026, and the preparation and implementation of
new health insurance plans, as well as the City's Paid Family & Medical Leave (PFML) plan and
policies, which must go into effective on 1/1/26.
As such, Staff engaged Abdo to provide HR Director level assistance. The proposal elements and
estimated costs include:
General HR Director Level Support ($42,000)
o Estimated 5 hours per week (on site 2-3 days per month) through 12/31/25
Collective Bargaining Negotiation Support ($5,000)
Staff believes these services can be funded through salary savings. Listed costs are estimates and
will be billed by actual hours worked.
Abdo also has the ability to provide additional staff augmentation if the need should arise. In such a
case, a change order to the contract would be developed and submitted for Council approval.
Contracting with Abdo will take some pressure off of David during this interim period, while ensuring
the important work before the City is completed successfully.
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BUDGET IMPACT:
The proposed costs will be funded through salary savings.
ACTION REQUESTED:
Approval of the Professional Services Agreement with Abdo for Human Resources Support.
ATTACHMENTS:
Abdo Professional Services Proposal
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Proposed by
Leah Davis, CPA
Partner |Abdo
leah.davis@abdosolutions.com
P 507.524.2347
June 11, 2025
SERVICE PROPOSAL FOR
City of Farmington
430 Third St,Farmington,Minnesota 55024
abdosolutions.com |Mankato, MN -Edina, MN -Scottsdale, AZ
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Executive
Summary
David Chanski,HR Director/Asst. City Administrator
City of Farmington
430 Third St
Farmington, Minnesota 55024
Dear David,
Thank you for the opportunity to submit this proposal to the City of Farmington (the City) to partner with your team on
a variety of customized human resources and finance related initiatives as you focus on finding your next City
Administrator. Based on our experience with the type of work outlined in the proposal and our in-depth understanding
of government employers, I’m confident the scope of services outlined in this proposal will address your needs and
provide you the clarity you need to confidently move forward with HR/finance related changes and transition.
Abdo’s success has been driven by utilizing staff that is experienced and well trained in governmental planning, human
resources, payroll, compensation systems, and financial operations. We understand that there are certain factors that
are most important to the City in the selection of a consultant. Factors like our attention to detail, overall project
approach, collaboration with City staff and the quality of work and outcomes are just a few of the ways we set
ourselves apart in our abilities and value to your City.
Our approach to this project is to engage with City staff to ensure we have an exceptional understanding of the
project, each individual’s role in the project, overall expectations and needs, as well as exceptions to standard
operations. Throughout the project, there will be periodic meetings with City staff to share information, solicit input
and provide updates. Based on our experience, we will structure each phase of the projects to emphasis efficiencies
and streamline processes. By spending time on the front-end evaluating positions, goals, objectives and needed
deliverables, the end product for the City will be one that provides analysis and recommendations for consistent,
compliant, and forward-thinking programs and policies.
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INVOLVEMENT OF City PERSONNEL-No matter the experience of our Abdo team, we recognize that the most critical
goals and deliverables of any project relies on collaborating with the right people at the right time. Your internal staff
and leadership are key to truly understanding your organization and developing solution that works in "real life."
ABILITY TO SUCCESSFULLY COMPLETE ALL REQUIREMENTS -A component of our mission statement is a
philosophy that we will assist clients in reaching their maximum potential by open communications and teamwork.
This means we will do the following for you:
•Present to you a clear project plan
•Use portal technology to share and collaborate documents
•Provide an environment that solicits and welcomes ideas and strategies from the city team
•Present recommendations in clear, concise and non-technical terms to all members of the city team
•Collaborate with city team and software vendor to ensure alignment
•Return phone calls and emails promptly
EXPERIENCE WITH SIMILAR PROJECTS -We believe our experience with similar projects and our exper tise in
governmental planning, human resources, payroll, compensation systems, and process and planning is greater than
any other CPA or advisory Firm in Minnesota.
UNDERSTANDING OF THE PROJECT AND ABILITY OF THE FIRM TO COMPLETE THE EXPECTED SCOPE OR WORK
ON SCHEDULE AND WITHIN BUDGET -Abdo is committed to a team environment that gives us the ability to complete
projects on time and on budget. We leverage our staff to ensure the work is being completed by the appropriate
individuals and reviewed by a partner of Abdo. We understand the parameters and expectations of this project and will
complete the expected scope of work on schedule and within budget.
ACCOMPLISHING PROJECT OBJECTIVES -Our approach to a project is heavily dependent on communication and
technology. We believe that listening to your needs, concerns and challenges is of the upmost importance for a
successful project. Our experience and knowledge of government operations allows us to provide independent
assessment and recommendations, lighting a clear path forward for City leadership.
We look forward to meeting with you to discuss our proposal and appreciate this oppor tunity to present Abdo for your
consideration.
Abdo
Leah Davis, CPA Victoria Holthaus, CPA
Partner |Abdo Partner |Abdo
2
Executive Summary Continued
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The current state
WHAT WE HEARD
We understand the challenges you face as an organization with ever-changing regulations, financial standards,
staffing changes, and council vision. Through our conversations, we understand these challenges to include:
•Leadership Changes – You're experiencing ongoing turnover in a top leadership role, resulting in the need for
additional director-level expertise to support your key HR and payroll staff as you look to fill the role.
•Pressing Priorities – You have a number of key initiatives, including City time off benefit analysis, collective
bargaining negotiations, and a large ERP implementation, happening in 2025 and it's critical that each of these
priorities are executed successfully.
•Budgeting – You have upcoming finance and cashflow needs that are driving a need to think creatively about
potential funding and revenue sources for 2026.
CONSIDERATIONS AS YOU MOVE FORWARD
Given the challenges and priorities you’ve identified, it's critical that you work with a partner that understands all of the
nuance and details of our needs. As advisors with a deep knowledge of your industry and the specific areas of
expertise that you're seeking, we'd encourage you to keep the following in mind:
•Abdo's team of HR and financial advisors have a long history of supporting local government organizations like
the City of Farmington to navigate change and transition.
•Our team of exper ts is committed to doing more than just helping you get by during your leadership transition.
We strive to help you make real progress during our par tnership and set your city up for future success.
•Abdo advisors understand that there are often a variety of ways to get to your desired outcomes and we'll work
with you to design and execute a plan that's customized to your unique needs and priorities.
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The path forward
WHAT'S YOUR VISION?
Let's build it together.With knowledge and care, Abdo lights your path forward—illuminating opportunity and fueling
your confidence to navigate the future. What do you envision for your future? We believe it could look something like
this:
•Experienced HR leadership support during your current leadership transition to let you focus on your highest
priorities while Abdo keeps you moving forward.
•Supporting your internal team during your critical ERP implementation with Abdo staff that are experienced in
BS&A and can roll up their sleeves and help quickly
•Strategic direction and recommendations driven by creative solutions and effective technologies.
EXPERTISE FOR YOUR CHALLENGES
In the government space, your organization faces unique
challenges that require a specific understanding of
government regulations and operations. Our team not
only has experience working with governmental entities,
but many came directly from city administration and
finance offices, giving them a unique understanding of
the challenges you face.
Meet
Leah
Leah Davis, CPA
Partner, HR & Payroll Advisory
Leah spends her time helping clients find creative ways
to capture opportunities and overcome their most
pressing HR and payroll challenges. With this variety of
experiences, Leah is equipped with a unique
perspective on the complex HR, financial, regulatory,
and strategic planning issues that public and private
employers face every day.
The Abdo Difference
At Abdo, we believe in the impor tance of relationships.
This core value is the foundation of our approach to
delivering the best experience and outcomes for our
clients. It’s inherent in our people and the way we work.
We know that for our clients to be successful, it takes
more than having experience and credentials – we take
the time to listen to their unique motivations, goals, and
challenges. We truly care about their journey and where
their path leads.
LEARN MORE ON OUR WEBSITE
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Based on our ability to provide the requested services, our shared core values, and an understanding of your unique
needs, we have the resources, knowledge, people and services to light the path forward for your city.
We have assembled a team with relevant experience who are committed to working with you to ensure success. Each
team member is briefly profiled below, and full biographies can be found in Appendix C.
Your Team
Manager -HR Advisory
michael.mooney@abdosolutions.com
P 952.715.3043
55
MICHAEL MOONEY, SPHR, SHRM-CP
Senior Associate - HR Advisory
abby.polizine@abdosolutions.com
P 507.304.68.48
ABBY POLZINE, SHRM
Senior Manager - Financial Solutions
julie.mcmackins@abdofs.com
P 952.715.3062
JULIE MCMACKINS
Partner - HR & Payroll Advisory
leah.davis@abdosolutions.com
P 507.524.2347
LEAH DAVIS, CPA
Senior Manager - HR Advisory
brenna.ramy@abdosolutions.com
P 952.449.6216
BRENNA RAMY, PHR, SHRM-CP
Senior Manager - Payroll Advisory
ann.petrowiak@abdosolutions.com
P 507.524.2349
ANN PETROWIAK, CPA
Partner - Financial Solutions
victoria.holthaus@abdofs.com
P 952.715.3069
VICTORIA HOLTHAUS, CPA, MPA
Senior Manager - Financial Solutions
kasha.gansky@abdofs.com
P 952.377.8025
KASHA GANSKY
Manager - Financial Solutions
amanda.watson@abdofs.com
P 952.395.9332
AMANDA WATSON
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We believe technology should enhance our service offerings, making our work less intrusive, our time with you more
productive and everyone’s data more secure. The use of technology in our consulting services enables us to
streamline our processes and helps to automate certain functions of our work so we are able to spend more time
analyzing our results and working directly with you.
Through the outbreak of COVID-19, our team has been able to seamlessly move to a completely remote work
environment with no loss of productivity, cooperation, or communication. Since March 17, 2020, our staff has been
successfully conducting remote HR, payroll and financial support using the latest video conferencing and secure file
sharing technology. Through Zoom, Microsoft Teams, or whatever technology your city may use, our team will
continue to work through normal procedures, including regular meetings with you during the duration of your projects
to ensure effective collaboration with your team. Through SuraLink, you'll be able to see what documents have been
uploaded, what documents are still needed, and keep track of impor tant documentation securely and easily.
We take the security of our client's data - and our own - very seriously. A number of systems are in place to ensure the
safety of your city’s data. We operate on a remote distributed infrastructure leveraging Microsoft’s Cloud Platform
Azure. This not only allows our staff to securely work from any computer, anywhere, any time, but also provides large-
scale, cutting-edge technology and security for your data. Your data is housed in secure data centers that reside
exclusively in the U.S. and not on laptops or local servers which could be stolen or misplaced. We continually provide
security awareness training to our staff members to ensure they are good digital stewards of your data. In addition to
this, we also consult bi annually with 3rd party security exper ts to conduct risk assessments and conduct annual
penetration tests.
IT ALSO MEANS:
All firm staff use dual
authentication to ensure
that every login to our
remote environment is
secure and authorized.
6
Technology
All data is saved on
redundant servers and
data centers so if one
server fails, another
immediately takes over
with no data lost.
All data is backed up
continually which means
we always have an extra
copy for safe-keeping.
All incoming emails,
attachments, and
embedded links are
scanned for viruses
prior to landing in our
inbox, which allows us
to operate with more
protection from phishing
emails, malware attacks,
and other digital threats.
Our cloud platform, Azure, is globally trusted by companies and governments and
has numerous security compliance standard they adhere to. Reports of these can
be provided as requested.
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You can have confidence in our years of experience performing consulting services and our understanding of the
unique challenges our clients face in the government space. Since 1963, we’ve served cities just like yours. With an
unwavering commitment to streamlining processes, training staff, and finding technology-based solutions, we
proudly offer excellence in city consulting, accounting services and auditing.
Out of our 250-strong, talented staff, a large number of our team members are 100% focused on government clients,
which include over 100 cities and other governmental entities. By serving cities across Minnesota, we have become
experts in the nuances of how to best support cities like Farmington.
PAYROLL
Our talented payroll team members recognize that our primary focus must always be providing outstanding service
to your most valuable resource – your people.Our team is comprised of payroll industry experts with over 75
combined years of service, including two Certified Public Accountants. Beyond having a deep knowledge of payroll
tax, compliance, and processes, our team also understands that payroll is a critical piece of a much larger strategic
objective - attracting and retaining the workforce necessary to drive your city's goals.
HUMAN RESOURCES
When it comes to human resources consulting and support, our team of HR exper ts is laser-focused on what really
matters – your people. Our team is comprised of experienced professionals with over 50 years of combined HR
experience from a wide variety of internal, external, and multi-industry perspectives. The diverse background and
experiences of our staff allows us to offer our clients real-world, people-focused, and best-in-class HR consulting,
compliance, process, and talent management solutions. By advocating the use of technology to efficiently and
effectively service your city, we’re able to dedicate our time to personally suppor ting your team.
PROCESS
Our methods are centered around incorporating technology to deliver unparalleled solutions for government
organizations. In addition to our consulting experience, our firm expertly performs outsourcing for governments
giving us a wealth of experience in a consulting role. We don’t believe in a one-size-fits-all mentality. So together, we’ll
focus on the needs that are relevant to your city and provide the right services to meet them with a customized
methodology based on your needs. We’re focused on developing creative, customized solutions to help your city
mitigate risk and boost efficiency.
FOCUS
Through continuous training and growth opportunities, we’ve established an environment with a focus on serving city
governments. We spend more than 100 hours training and onboarding to ensure success for our clients.
When it comes to our working relationships, we are partners. We’re confidants. We’re the catalyst that sparks true
business growth, providing guidance through every challenge and opportunity along the way.
Government
Experience
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Value
*The City of Farmington anticipates the need for staff augmentation services during
implementation and launch of its new enterprise resource planning solution, BS&A.
Once the City has a better grasp of project plan timing and finance capacity needs,
Abdo will review staff augmentation needs with the City and provide a separate
estimate for services.
88
ABDO CONSULTING SERVICE DESCRIPTION ESTIMATED
COST
ERP Implementation and/or Finance Staff Augmentation*
Interim HR Director Support
Assumes 5 hours per week of as needed (on-site 2-3 times per month) director-level HR
support for your ongoing needs.Fees based on 5 hours per week until 12/31/25
(hourly rates dependent on the level of staff required).
$42,000
2025 Collective Bargaining Negotiation Support
Let Abdo come alongside you during your upcoming contract negotiations, providing
the analysis and as-needed support that you need to evaluate and assess your contract
terms.Estimated 15 hours (hourly rates dependent on the level of staff required)
$5,000
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Value
SERVICE & PRICE GUARANTEE
This quote is valid for thir ty (30) days.
Our work is guaranteed to the complete satisfaction of the client. Upon payment of
your invoices, we will judge you have been satisfied, however, we welcome further
conversation, if, in any way, you feel your expectations are not being met.
Please understand, however, that the price we have quoted considers and relies upon
the following:
•The information you agree to provide is on time and complete to the degree
indicated in our agreement.
•Your key management, finance, or human resources team members don’t
change during our service period.
•No undisclosed or newly arising complexities, claims, or significant
transactions, occur that impact our service period. This includes emergence of
yet unspecified revisions to any prior period work that would need to occur
before we can perform our agreed services.
•No new tax, regulatory, or other repor ting requirements are introduced between
now and the end of our service period.
A full scope of services, including estimated hourly charges, is listed on the following
page.
ADDITIONAL SERVICES
Should you request services in addition to the Contracted Services, we will provide you
with proposed fees for the services to be provided. You shall be required to sign a
written or electronic confirmation of your request for additional services prior to
implementation.
9Page 89 of 417
CLIENT REFERENCES
One of the things we enjoy most about our work is
developing long-term relationships with our clients
and watching their city thrive as we help them to
evolve and grow. Our clients listed below serve as a
sample of references of those we partner with for
similar consulting services. Additional references are
available upon request.
What Our
Clients Say
CITY OF DAYTON
Zach Doud
City Administrator
P 763.427.4589
WRIGHT COUNTY
Schawn Johnson
Human Resources
Director
P 463.684.8450
"Everyone at Abdo is extremely helpful and thorough in their work. I know I can count on them to provide me with accurate information and
a comprehensive finished product, and to provide the education to understand the why behind whatever it is we're working on together.
Working with the team I felt supported, and I trusted them to guide me through everything I needed. All of the employees I've engaged with
are so friendly and personable. I would highly recommend Abdo to all of my colleagues from the past, present, and future.I've truly enjoyed
working with everyone at Abdo and it has been a personally and professionally altering experience for the better."
CITY OF SEDONA, ARIZONA
Renee Stanley |Accounting Manager
10
POLK COUNTY
Chuck Whiting
County Administrator
P 218.281.5408
Page 90 of 417
Value-Added Services
When you partner with Abdo, you get access to our entire catalog of services. Below is
a selection of the additional solutions that we believe could be of great value to your
city. If you have need of these services, please reach out to us so we can help! Our
additional service offerings can be found at www.abdosolutions.com.
ABDO FINANCIAL SOLUTIONS INTERIM ACCOUNTING SERVICES
With a staff of experienced professionals, we develop and implement creative
solutions for entities of all shapes and sizes. We rely on a proven process to provide
your city with the very best quality and value in financial management solutions.Our
outsourced accounting and financial services include:
•Monthly accounting
•Temporary accounting help
•Finance Director outsourcing
PROCESS SOLUTIONS
“Because we’ve always done it that way” is an easy trap to fall into.But outdated
processes or systems might not be delivering the best results and cause
redundancies, unreliable outcomes, and frustrated staff. An ineffective process can
become your Achilles' heel in a crisis. Our customized process improvement solutions
will meet you where you are - and guide you to a better tomorrow.
Our process solution services include:
•Process Mapping Documentation -How do transactions and data flow through
your city?
•Abdo ProEval -Removing waste in your processes allows your team members to
focus on what they were hired to do - and to spend more time on value-added
initiatives.
•Abdo ProEval - Kaizen -Does the project seem too large, or the change too
overwhelming? The Kaizen approach is a pared - down version of our ProEval
service. Instead of a full operational review, we’ll focus on one aspect of your
operation
•Software Inventory & Assessment -Including recommendations for increasing
efficiency and, if possible, reducing software-related costs.
11Page 91 of 417
12
•Assisting with the RFP Process - We’ll define the technical specifications to
include in your RFP and provide suppor t through the ERP vendor selection
process.
•Facilitating a Seamless Implementation - If needed, we can manage the
organization-wide implementation of your ERP system in accordance with your
budget and schedule.
•Communicating Change - We’ll communicate with staff members to explain the
“why” behind ERP and demonstrate how it will make their lives easier. To help
staff members navigate new processes, we’ll provide training as needed.
Page 92 of 417
Why Partner
with Abdo
“Listening to our clients’ needs, understanding their challenges, and
adjusting how we work together is key to our partnership with the
people we serve.”
--Steve McDonald, CPA |Managing Partner
LIGHTING THE PATH FORWARD
In a world of ever-changing complexity, people need caring, empathetic and
highly skilled professionals they can depend on to provide the right advice and
solutions for them. Our clients seek growth and success, but also want security
and confidence. For over 60 years, Abdo has provided insights for our clients to
help them achieve their goals.
That same innovative spirit is also what has earned us the title of being one of
the top accounting firms in the Midwest. Abdo is a better firm today because of
the efforts we made to support a culture driven by our core values of growth,
relationships, and teamwork.
With this foundation in place, we have successfully helped our clients identify
and break through their own growth barriers. Every challenge they face is an
opportunity for us to listen, understand and empower them with solutions and a
plan to achieve their goals. It’s fulfilling to serve as the catalyst that helps them
overcome obstacles that block their progress.
When it comes to our working relationships, we are partners. We’re confidants.
We’re the catalyst that sparks true business growth, providing guidance through
every challenge and opportunity along the way.
ABOUT ABDO
Abdo is a full-service accounting and consulting firm that delivers customized
strategies and innovative solutions to help businesses, governments and
nonprofits succeed. With more than 200 professionals and over six decades of
experience, Abdo is ranked as one of the top accounting firms in the Midwest. It
is a licensed CPA firm with offices located in Minneapolis and Mankato,
Minnesota, and Scottsdale, AZ. Abdo’s commitment to its clients is to gain in-
depth knowledge of their unique challenges, opportunities, and needs. Through
this consultative approach, Abdo partners with organization leaders to light the
path forward to confidently reach their goals.
13Page 93 of 417
Appendix A
AGREEMENT FOR SERVICES
14Page 94 of 417
Agreement for Services
THIS AGREEMENT, is made and entered into on June 11, 2025, by and between the City of Farmington, Minnesota
(hereinafter referred to as the “Client”), and Abdo LLP (hereinafter referred to as “Abdo” or the “Contractor”).
Articles of Agreement & Recitals
WHEREAS, the Client is authorized and empowered to secure from time to time certain professional services
through contracts with qualified consultants; and
WHEREAS, the Contractor understands and agrees that:
The Contractor will act as an Independent Contractor in the performance of all duties under this Agreement.
Accordingly, the Contractor shall be responsible for payment of all taxes, including federal, state and local taxes and
professional/business license fees related to its own operations and arising out of the Contractor’s activities;
The Contractor shall have no authority to bind the Client for the performance of any services or to obligate the
Client. The Contractor is not an agent, servant, or employee of the Client and shall not make any such
representations or hold itself out as such;
The Contractor shall perform all professional services in a competent and professional manner, acting in the best
interests of the Client at all times.
The Contractor may make recommendations and/or perform services on behalf of the Client but the Client is
responsible for all final management decisions and for setting and administering any organizational policies,
procedures, or other guidance that result in the services being performed. Further, with respect to the payroll
services that are being provided, the Client is responsible for all originating documents (i.e. salary or hourly wage
amounts, hours worked, benefits, premium pay policies, etc.) that affect payroll processing, and the Client will
review and approve the payroll before or after its processed. The Contractor will not hold or have access to any
Client funds as part of the services being provided.
The Contractor shall not accrue any continuing contract rights for the services performed under this contract.
NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, it is agreed as follows:
ARTICLE I
INCORPORATION OF RECITALS
The recitals and agreement set forth above are hereby incorporated into this Agreement.
ARTICLE II
LIABILITY INSURANCE
Section 1 Liability Insurance:The Contractor shall obtain professional liability insurance, at its expense with liability
insurance coverage minimums in the amount of $2,000,000, which Contractor must secure and maintain during the
term of this Agreement. Contractor will provide the Client with proof of liability insurance coverage under this
Agreement in writing upon request by the Client.
15Page 95 of 417
ARTICLE III
DURATION OF THE AGREEMENT
Section 1 Duration: This Agreement shall commence upon date of execution by all parties and shall remain in effect
for the duration of the consulting engagement, unless earlier terminated as provided in Subsections 2 or 3.
Section 2 Client’s Termination Rights:Client may terminate this Agreement for its convenience by providing written
notice of termination to Contractor.Upon any termination by Client for convenience, Client shall be obligated to pay
for all services provided by Contractor through the date of termination set forth in the written notice.In addition,
Client may terminate this Agreement for Contractor’s failure to perform its services in accordance with the terms of
this Agreement (termination for “cause”) by providing Contractor written notice of intent to terminate that sets forth in
detail the reasons for cause to terminate, which written notice shall afford Contractor a reasonable period of time of
not less than ten (10) business days to cure the stated grounds for termination to the reasonable satisfaction of
Client. In the event of Client’s termination of the Agreement for cause, Client shall be obligated to pay for all services
provided by Contractor through the date of termination.
Section 3 Contractor’s Termination Rights:Contractor may terminate this Agreement upon thirty (30) days written
notice to the Client in the event the Client does not pay Contractor compensation as required under Article 5, Section
10 within fifteen (15) days after invoice is received by the Client. In the event of non-payment within thirty (30) days,
Contractor shall give the Client an opportunity to cure the default by giving a notice of such non-payment and an
additional five (5) days after the Client’s receipt of the notice to remit such payment, prior to giving a notice of
termination. Contractor can also terminate the Agreement with sixty (60) days written notice.
ARTICLE IV
GENERAL
Section 1 Authorized Client Agent: The Client’s authorized agent for the purpose of administration of this Agreement
is the Client Operations Manager. Said agent shall have final authority for approval and acceptance of the Contractor’s
services performed under this Agreement and shall further have responsibility for administration of the terms and
conditions of this Agreement. All notices under this Agreement shall be sent to the person and address indicated
below on the signature lines.
Section 2 Amendments:No amendments or variations of the terms and conditions of this Agreement shall be valid
unless in writing and signed by the parties.
Section 3 Assignability:The Contractor’s rights and obligations under this Agreement are not assignable or
transferable, but the Client’s rights and obligations may be assigned to any successor entity upon ten (10) days notice.
16
Agreement for Services Continued
Page 96 of 417
17
ARTICLE IV (CONTINUED)
GENERAL (CONTINUED)
Section 4 Data:Any data or materials, including, but not limited to, reports, studies, photographs, negatives, or any and all
other documents prepared by the Contractor or its outside consultants in the performance of the Contractor's obligations
under this Agreement shall be the exclusive property of the Client, and any such data and materials shall be remitted to
the Client by the Contractor upon completion, expiration, or termination of this Agreement. Further, any such data and
materials shall be treated and maintained by the Contractor and its outside consultants in accordance with applicable
federal, state and local laws. Further, Contractor will have access to data collected or maintained by the Client to the
extent necessary to perform Contractor's obligations under this Agreement. Contractor agrees to maintain all data
obtained from the Client in the same manner as the Client is required under the Minnesota Government Data Practices
Act, Minnesota Statutes Chapter 13 or other applicable law (hereinafter referred to as the "Act"). Contractor will not
release or disclose the contents of data classified as not public to any person except at the written direction of the Client.
Upon receipt of a request to obtain and/or review data as defined in the Act, Contractor will immediately notify the Client.
The Client shall provide written direction to Contractor regarding the request within a reasonable time, not to exceed
fifteen (15) days. The Client agrees to indemnify, hold harmless and defend Contractor for any liability, expense, cost,
damages, claim, and action, including attorneys' fees, arising out of or related to Contractor's complying with the Client's
direction. Subject to the aforementioned, Contractor agrees to defend and indemnify the Client from any claim, liability,
damage or loss asserted against the Client as a result of Contractor's failure to comply with the requirements of the Act.
Upon termination and/or completion of this Agreement, Contractor agrees to return all data to the Client, as requested by
the Client.
Section 5 Data Accuracy and Prompt Delivery:Client understands, acknowledges and agrees that Contractor’s
performance of services under this Agreement is dependent on Client promptly providing Contractor with accurate data,
documents, and other information pertinent to the subject consulting engagement. Client shall provide Contractor access
to data, documents and other information requested by Contractor in accordance with the project schedule mutually
agreed to by Client and Contractor. Contractor also represents and warrants that said data, documents and information
shall be reliable and accurate to the best of Client’s knowledge and agrees that Contractor shall be entitled to rely on the
accuracy of the same in the performance of its services under this Agreement. Client agrees to indemnify, hold harmless
and defend Contractor from and against any liability, expense, cost, damages, claim and action, including attorneys’ fees
and costs, arising out of or relating to any errors, inaccuracies, or omissions in the data, documents and other information
provided by Client to Contractor pursuant to this Agreement. Further, in the event of any delay on the part of Client to
provide to Contractor required data, documents or other information or the identification of any errors, inaccuracies, or
omissions in the data, documents or other information provided by Client, Contractor shall be entitled to an equitable
adjustment of the schedule and compensation for the performance of its services resulting from said delay or need to
address any errors, inaccuracies, or omissions in the data, documents or other information provided by Client.
Section 6 No Legal Advice:Client understands, acknowledges and agrees that the consulting services provided by
Contractor under this Agreement do not include or constitute legal advice and that Contractor is not under taking to
provide Client legal advice in connection with the consulting engagement hereunder. Client fur ther understands,
acknowledges and agrees that the subject matter of this engagement, including regulatory compliance, implicates
complex legal issues requiring assessment and advice from competent legal counsel. Client shall be responsible for
engaging and/or consulting with legal counsel of its choosing to assess and advise Client regarding the propriety and
legality of any recommendations, guidance or advice of Contractor arising from or relating to Contractor’s performance of
its services under this Agreement. Client agrees to indemnify, hold harmless and defend Contractor from and against any
liability, expense, cost, damages, claim and action, including attorneys’ fees and costs, arising from or relating to Client’s
payroll or other human resources policies and/or practices both prior to, during and following Contractor’s provision of
services under this Agreement, including, but not limited to, any claims by current or former employees of Client
challenging the propriety or legality of said practices.
Agreement for Services Continued
Page 97 of 417
18
Agreement for Services Continued
ARTICLE IV (CONTINUED)
GENERAL (CONTINUED)
Section 7 Entire Agreement:This Agreement is the entire agreement between the Client and the Contractor and it
supersedes all prior written or oral agreements. There are no other covenants, promises, undertakings, or
understandings outside of this Agreement other than those specifically set forth. Any term, condition, prior course of
dealing, course of performance, usage of trade, understanding, or agreement purporting to modify, vary, supplement, or
explain any provision of this Agreement is null and void and of no effect unless in writing and signed by representatives
of both parties authorized to amend this Agreement.
Section 8 Severability:All terms and covenants contained in this Agreement are severable. In the event any provision of
this Agreement shall be held invalid by any court of competent jurisdiction,this Agreement shall be interpreted as if
such invalid terms or covenants were not contained herein and such holding shall not invalidate or render unenforceable
any other provision hereof.
Section 9 Contractor Fiscal Decision Waiver:Contractor is responsible for providing the Client with timely and accurate
human resource recommendations and information that allows the Client the ability to make final human resource
decisions. Contractor will provide final human resource recommendations, but Contractor is not responsible for the final
decisions made regarding human resource matters and Client shall indemnify and hold Contractor harmless from the
same.
Section 10 Compensation: The parties agree that the Contractor shall be paid compensation for the services provided
hereunder, based on the fees indicated in the proposed client investment schedule and under the attached scope of
services. Additional fees will not be incurred without prior approval of the Client.
Initial invoice for anticipated first month fees will be sent within 10 days of the execution of this Agreement.Monthly
installment fees will be invoiced throughout the remainder of this Agreement. If the Agreement is for an hourly fee basis,
invoices will be sent monthly.
Section 11 Additional Services: Should the Client request additional services in addition to the Contracted Services, the
Contractor will provide the Client with proposed fees for the additional services to be provided. The Client shall provide a
written or electronic confirmation prior to the proposed services implementation.
Section 12 Outside Contractors:It shall be the responsibility of Contractor to compensate any other outside
consultants retained or hired by Contractor to fulfill its obligations under this Agreement and shall be responsible for
their work and Contractor, by using outside contractors, shall not be relieved of its obligations under this Agreement.
Section 13 Equal Employment Opportunity:Abdo, LLP and its subsidiary companies are committed to providing equal
employment opportunities to all employees and applicants for employment without regard to any legally-recognized
basis “protected class” including but not limited to: veteran status, uniform service member status, race, color, religion,
sex, national origin, age, physical or mental disability, sexual orientation or marital preference, genetic information or
any other protected class under federal, state, or local law.
Page 98 of 417
19
ARTICLE IV (CONTINUED)
LIMITATION OF LIABILITY
Section 14 Disputes: If any dispute arises between Abdo and the Client under this Agreement, the dispute shall first be
submitted to mediation. The costs of mediation shall be shared equally by the parties. All disputes between Abdo and
the Client arising out of this Agreement which cannot be settled directly or through mediation shall be resolved through
binding arbitration in Mankato, Minnesota in accordance with the rules for resolution of commercial disputes then in
effect of the American Arbitration Association, and judgment upon the award may be entered in any court having
jurisdiction thereof. It is further agreed that the arbitrator may, in its sole discretion, award attorneys’ fees and costs to
the prevailing party.
Section 15 Limitation of Liability:Abdo’s entire liability, and the Client’s exclusive remedy, for Abdo’s performance or
non-performance under this Agreement shall be for Abdo to reimburse the Client the total charges for related services
provided during the previous twelve months. ABDO WILL NOT, UNDER ANY CIRCUMSTANCES, BE LIABLE FOR ANY
INCIDENTAL,INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR FOR LOST PROFITS, SAVINGS OR REVENUES
WHICH THE CLIENT MAY INCUR AS A RESULT OF ABDO’S FAILURE TO PERFORM ANY TERM OR CONDITION OF THIS
AGREEMENT (EVEN IF IT HAS BEEN SPECIFICALLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES). The Client
shall indemnify Abdo against, and hold each of them harmless from, any and all liabilities, claims, costs, expenses and
damages of any nature (including reasonable attorney’s fees and costs) in any way arising out of or relating to
disputes or legal actions with Client’s employees or any third par ties concerning the provision of the services under this
Agreement. The Client’s obligations under the preceding sentence shall survive termination of this Agreement.
Agreement for Services Continued
Page 99 of 417
Appendix B
AGREEMENT FOR PROVISION OF
PROFESSIONAL SERVICES
20Page 100 of 417
Agreement for the Provision
of Professional Services
WHEREFORE, this Agreement was entered into on the date set forth below and the undersigned, by execution hereof,
represent that they are authorized to enter into this Agreement on behalf of the respective parties and state that this
Agreement has been read by them and that the undersigned understand and fully agree to each, all and every provision
hereof, and hereby, acknowledge receipt of a copy hereof.
City of Farmington
430 Third St
Farmington, Minnesota 55024
SIGNATURE
David Chanski
Abdo, LLP
100 Warren Street, Suite 600
Mankato, Minnesota 56001
Leah Davis, CPA
Partner |Abdo
June 11, 2025
21Page 101 of 417
Appendix C
PROFESSIONAL BIOS
22Page 102 of 417
Leah Davis
CPA
Partner, HR and Payroll Services
leah.davis@abdosolutions.com
Direct Line 507.524.2347
Leah joined Abdo in 2016 and now leads the Firm's HR and Payroll Advisory practice. She spends her time helping
employers find creative ways to capture opportunities and overcome their most pressing HR and payroll challenges. As an
active CPA and after owning and operating an outsourced HR and payroll consulting business for nearly a decade, Leah
has worked with employers across all industries.She also has several years of experience in public accounting, focusing
on business tax and financial institutions. This variety of experiences equip Leah with a unique perspective on the
complex HR, financial, regulatory, and strategic planning issues that public and private employers face every day.
EDUCATION
•Bachelor of Science in Accounting and Business Administration, Minnesota State University, Mankato
•Continuing professional education
PROFESSIONAL MEMBERSHIPS
•American Institute of Certified Public Accountants (AICPA)
•Minnesota Society of Certified Public Accountants (MNCPA)
•Society for Human Resource Management (SHRM)
•National Public Employer Labor Relations Association (NPELRA)
QUALIFICATIONS
•Human Resources management, consulting, and compliance, including a focus on leveraging technology to
maximize employee experience and streamline administrative workflows and compliance
•HR and leadership team coaching and training, focused on strategic thought leadership and building
technical and practical skills to improve overall performance and operational effectiveness
•Employee Benefit Plan Administration and Analysis, including Affordable Care Act (ACA) compliance, benefit
workflow optimization, and evaluation of benefit plan design options to evaluate costs and maximize
employee value recognition
•Employee Incentive and Compensation Plan Development, including public sector position classification and
compensation plan design and total compensation analysis
•Complex State and Federal employment tax and regulatory compliance consulting, including FLSA wage and
hour analysis and tax agency amendments and negotiations
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 23Page 103 of 417
Brenna Ramy
PHR, SHRM-CP
Senior Manager
brenna.ramy@abdosolutions.com
Direct Line 952.449.9216
Brenna joined the Firm in 2019 and is a Senior Manager. She has experience in organization development and
working with leaders to determine the most effective employment model to meet business needs and strategic
direction. She has over 20 years of Human Resources experience in the industries of hospitality, retail, multifamily
housing, and consulting. She has worked in a variety of organizations in size ranging from less than 20 to over
300,000 employees.Brenna believes in finding practical solutions to HR needs and determining where the best
place to spend time is. Brenna brings energy to every meeting, training and event she par ticipates in.She is most at
home connecting with owners, leaders, employers, civil servants and volunteers in meaningful ways that help them
achieve whatever success they're looking for.Brenna has created and presented dozens of webinars, podcasts and
trainings over the last 20 years and loves connecting with groups in that way.
EDUCATION
•Bachelor of Business in Human Resources, University of Minnesota, Duluth
PROFESSIONAL MEMBERSHIPS
•Professional in Human Resources (PHR)
•Society for Human Resource Management Cer tified Professional (SHRM-CP)
QUALIFICATIONS
•Supports Senior Business Leaders in determining leadership needs in the organization and how they can be
met.
•Developed dozens of specialized trainings for organizations and teams and presented for success
•Completes assessments and development tools to leverage team competencies in suppor t of leadership
and business objectives. Also works extensively on employee relations issues
•Partners with Senior Leaders and HR Peers in their professional development and gaining new skill sets
•Experience in leaves – specifically in FMLA and ADA and how they align in meeting state and federal
guidelines
•Engaged in change management strategies for communicating to employees gaining buy-in
•Provide in-depth on-going analysis on current compensation programs, including salary structure, merit
budget, additional pay programs, hiring rates and guidelines
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 24Page 104 of 417
Michael Mooney
SPHR, SHRM-CP
Manager
michael.mooney@abdosolutions.com
Direct Line 952715.3043
Michael joined the Firm in 2022. He brings over 5 years of experience working closely with business leaders,
managers, and employees in a wide variety of HR Functions. He is passionate about utilizing HR technology and
data to support growing businesses.
EDUCATION
•Bachelor of Science in Management with HR Emphasis, Nor th Dakota State University
PROFESSIONAL MEMBERSHIPS
•Society for Human Resource Management
QUALIFICATIONS
•Human Resources management & process development
•HRIS implementation, system utilization, and process improvement
•Compensation and benefits plan design and management
•Manager coaching
•Full cycle recruiting and interview training
•Certified DiSC Workplace Profile facilitator
•Employee engagement, development, performance management and retention
•Experience in banking and multi-family housing industries
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 25Page 105 of 417
Ann Petrowiak
CPA
Senior Manager
ann.petrowiak@abdosolutions.com
Direct Line 507.524.2349
Ann joined the Firm in 2016 as a Payroll Manager. She brings over 10 years of experience in payroll and accounting
services working with clients of various sizes and industries, including business, city government, agriculture, and
non-profit.
EDUCATION
•Bachelor of Arts in Accounting, Saint Mary’s University
•Continuing professional education
PROFESSIONAL MEMBERSHIPS
•American Institute of Certified Public Accountants
•Minnesota Society of Certified Public Accountants
•American Payroll Association
QUALIFICATIONS
•Experience in payroll processing, repor ting and tax filing, timeclock and payroll database implementation,
maintenance and training, departmental labor allocations and costing/ledger reporting, affordable care act
reporting, benefit administration, and accounting
•Experience in managing multi-state payroll systems and ensuring compliance in accordance with federal,
state, and local laws
•Experience in payroll process assessments to help leaders leverage payroll systems and evaluate
efficiencies of current processes
•Works extensively with ADP HR/Payroll system, Paylocity HR/Payroll system, and multiple other payroll,
timeclock and accounting systems
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 26Page 106 of 417
Abby Polzine
SHRM
Senior Associate
abby.polzine@abdosolutions.com
Direct Line 507.304.6848
Abby is a seasoned HR professional with 13 years of experience, including a decade in the public sector with school
districts. She excels in developing recruitment, onboarding, and retention programs, and has extensive knowledge
of FMLA and ADA compliance. Abby is adept with multiple HRIS systems and skilled in employment investigations
and employee relations. She has led policy development, negotiated with union and non-union groups, and delivered
HR training to diverse audiences.
EDUCATION
•Bachelor's Degree - Southwest Minnesota State University (SMSU)
◦Business Management
PROFESSIONAL MEMBERSHIPS
•Society for Human Resource Management (SHRM)
QUALIFICATIONS
•13 years of experience working in Human Resources
•10 years of experience working in the public sector, specifically with school districts
•Development of effective recruiting, hiring, employee onboarding, engagement and retention programs and
policies
•Extensive experience in leaves – specifically FMLA and ADA and how they are to be implemented to follow
local state and federal guidelines
•Worked with multiple HRIS systems and how to leverage each for most effective process and procedures
•Fluent in employment investigations and employee relations matters/grievances
•Led policy development and implementation
•Experience in negotiations with both union and non-union employee groups through collective bargaining
agreements or personnel policies
•Successfully completed training on a number of HR topics to both internal employees and external clients/
customers
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 27Page 107 of 417
Victoria Holthaus
CPA, MPA
Partner |Abdo Financial Solutions
victoria.holthaus@abdofs.com
P 952.715.3069
Vicki aims to simplify the complex for her clients. Her goal is to give them a solid understanding of their finances,
so they can confidently plan ahead. She specializes in working with local governments and nonprofit agencies to
strategize capital improvements, develop strategic long-range financial plans, and troubleshoot accounting and
financial challenges. She also provides process evaluation and process improvement services for nonprofit and
private sector clients. Over the past several years, Vicki has helped many organizations with strategic upgrades to
technology and software as they navigate new ways of interacting with donors, constituents, and customers. Along
with the ability to creatively explain technical terms, Vicki has firsthand knowledge of the issues governments and
non-governmental organizations face.
EDUCATION
•Bachelor of Science in Accounting, National American University
•Master of Ar ts in Public Administration, Hamline University
•Continuing professional education
PROFESSIONAL MEMBERSHIPS
•Minnesota and Arizona Society of Cer tified Public Accountants
•American Institute of Certified Public Accountants
•Minnesota Council of Non-Profits
•Government Finance Officer's Association of the United States and Canada, Minnesota, Arizona, and
Arkansas Government Finance Officer's Association
•Minnesota and Arizona Government Finance Officers Association
AFFILIATIONS
•Hamline School of Business, Accounting Board Member
•Arizona Women Leading Government Member
QUALIFICATIONS
•17 years of experience working with local governments and nonprofits in finance and administration
•Experience with budgeting, capital planning, debt management, as well as being the process evaluation and
improvement engagement lead and non-profit advisory service leader
•Previous speaker at MCFOA Municipal Clerks and Finance Officers Association, League of Minnesota Cities
and has developed newsletter content on fraud prevention, automation, long-term planning and process
improvements
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ
28Page 108 of 417
Julie McMackins
Senior Manager |Abdo Financial Solutions
julie.mcmackins@abdofs.com
P 952.715.3062
Julie joined the Firm in 2021 as a Manager in the Financial Solutions depar tment.Prior to joining Abdo FS, she spent nine
years working for the City of Plymouth in Accounting roles, including Accountant, Supervising Accountant and Interim
Finance Manager. In these roles, Julie was involved in a wide variety of finance responsibilities. Julie also has four years
of experience in accounting and auditing roles. She currently works with clients in a variety of financial roles such as
budgeting, annual and quarterly financial reporting, utility rate studies, long-term planning, and audit preparation.
EDUCATION
•Bachelor of Science in Accounting, Winona State University
◦Graduated Summa Cum Laude
•Certified Public Accountant (Inactive)
•Continuing professional education
PROFESSIONAL MEMBERSHIPS
•Minnesota Government Finance Officers Association
•National Government Finance Officers Association
QUALIFICATIONS
•15 years of experience working with Minnesota municipalities and two years experience in the private sector
•Experience in a variety of roles within local government, including, but not limited to: preparation of 10-year
financial plan, monitoring cash and investment balances, preparation of biennial budget, audit preparation,
preparation of City’s annual financial report, led capital improvement plan processes, preparation of utility
rate studies and cash flow analyses, preparation and submission of financial information for external
reporting agencies
•Experience in analyzing processes and providing recommendations to increase efficiency, accuracy and
transparency
•Experience in supervising and leading staff in the finance division in performing accounts payable, billing,
cash receipts, payroll and general ledger accounting
•Experience in implementation of financial software, billing and payment options for utility billing, as well as
acted as a liaison between staff and the Information Technology division
•Experience training on Fund Accounting and Budget Preparation with the MN Clerks Institute
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ
29Page 109 of 417
Kasha Gansky
CPA
Senior Manager |Abdo Financial Solutions
kasha.gansky@abdofs.com
P 952.377.8025
Kasha joined the Abdo Financial Solutions group in 2023. Kasha has 10 years of experience working in local government in
Arkansas, as well as 4 years of experience in the nonprofit sector. She is proficient in Tyler technologies New World Systems,
as well as other accounting and reporting software. She has experience in budgeting, cash management, accounts
receivable, accounts payable, sales and use tax, grant reporting and internal auditing.
EDUCATION
•Bachelor of Business Administration in Accounting, Henderson State University
•Master of Business Administration, Henderson State University
•Continuing professional education
PROFESSIONAL MEMBERSHIPS
•American Institute of Cer tified Public Accountants
•Government Finance Officers Association
•Minnesota Government Finance Officers Association
•Arkansas Government Finance Officers Association
◦Past Board Member (2019-2023)
•Arkansas Society of Certified Public Accountants
QUALIFICATIONS
•10 years of experience working in Arkansas municipalities and 4 years of experience in the nonprofit sector
•Proficient in Tyler Technologies New World Systems (Financial Management, Human Resources
Management, Utility Management, Community Development, and eSuite Self-Service)
•Experience in Infor Lawson systems, Microsoft Office Suite, Caselle, BS&A and The Reporting Solution ACFR
preparation software
•Project management experience in leading an ERP software implementation
•Experience in budgeting, cash management, accounts receivable, accounts payable, sales and use tax, 1099
reporting, internal audit, fixed assets, grant reporting, process evaluation, audit preparation, chart of
accounts restructuring and policy and procedure development
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ 30Page 110 of 417
Amanda Watson
Manager |Abdo Financial Solutions
amanda.watson@abdofs.com
P 952.395.9332
Amanda joined the Firm in 2024 as a member of the Financial Solutions team.Prior to joining Abdo FS, she spent eight
years working in local governmental accounting. She currently works with clients in a variety of financial roles such as
budgeting, accounts payable, bank reconciliations, and grants.
EDUCATION
•Bachelor of Business Administration in Accounting, University of Arkansas at Little Rock
•Continuing professional education
PROFESSIONAL MEMBERSHIPS
•Arkansas Government Finance Officers Association
•Government Finance Officers Association
QUALIFICATIONS
•8 years of experience working in local governmental accounting
•Experience in accounts payable, bank reconciliations, grants, fixed assets, budgeting, and lease accounting
•Experience in various ERP systems including AS400, Tyler New World, Lawson, Banyon, BS&A, Springbrook,
and Caselle
TEAM MEMBER BIO
abdosolutions.com |Edina, MN -Mankato, MN -Scottsdale, AZ
31Page 111 of 417
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: David Chanski, Asst City Admin/HR Director
Department: HR
Subject: Staff Approvals & Recommendations
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
Staff recommends the appointment of Indigo Brenner, Ryan Gareis, and Brandon Tice as Paid-on-
Call Firefighters.
DISCUSSION:
This is the second group of firefighter candidates from the 2025 paid-on-call recruitment cycle. Staff
is hoping to present the final candidates for approval on July 21. Candidates will begin onboarding
in July with the Fire Academy beginning in September.
BUDGET IMPACT:
All positions are included in the 2025 Budget.
ACTION REQUESTED:
Appointment of Indigo Brenner, Ryan Gareis, and Brandon Tice as Paid-on-Call Firefighters.
Page 112 of 417
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kellee Omlid, Parks & Recreation Director
Department: Parks & Recreation
Subject: Declaring Items as Surplus and Authorizing Disposal (Parks and Recreation)
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
The Parks and Recreation Department is requesting the authorization to dispose of 60 boulders.
DISCUSSION:
Many years ago, the Parks and Recreation Department acquired 60 boulders. None of these
boulders have been used over the last 19 years and we don’t have any use for them. Thus, it is
time to get rid of the boulders.
Rather than disposing of the boulders, the City has an opportunity to sell these surplus items
through MinnBid, which provides services to various government agencies allowing them to sell
surplus items through an online public auction.
BUDGET IMPACT:
The proceeds from the sale will be deposited into the Park Improvement Fund.
ACTION REQUESTED:
Adopt Resolution 2025-048 Declaring Items as Surplus and Authorizing Disposal.
ATTACHMENTS:
2025-048 Declaring Items as Surplus and Authorizing Disposal
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CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2025-048
A RESOLUTION DECLARING ITEMS AS SURPLUS
AND AUTHORIZING DISPOSAL
WHEREAS, the Parks and Recreation Department is requesting authorization to dispose
of the following boulders that are no longer needed and to dispose of the boulders at auction with
funds being deposited into the Park Improvement Fund:
60 Boulders
NOW, THEREFORE, BE IT RESOLVED, that Mayor Hoyt and the Farmington City
Council declare the items listed above as surplus and authorize its disposal with any proceeds to
be placed in the Park Improvement Fund.
Adopted by the City Council of the City of Farmington, Minnesota, this 7th day of July 2025.
ATTEST:
____________________________ ______________________________
Joshua Hoyt, Mayor Shirley R Buecksler, City Clerk
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kellee Omlid, Parks & Recreation Director
Department: Parks & Recreation
Subject: Donation of Treadmill for the Rambling River Center by David McKnight
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
A new treadmill for the Rambling River Center was donated by David McKnight.
DISCUSSION:
David McKnight purchased a brand-new treadmill for the Jack and Bev McKnight Fitness Center at
the Rambling River Center! The value of the treadmill is $6,335. The new treadmill was much
needed as, recently, one of the older treadmills died and it was too old to get replacement parts.
This treadmill was original from when the RRC fitness center first opened in 2005.
David McKnight will pay for the $6,335 donation over a 12-month period. The first check in the
amount of $2,000 was received in June 2025. The second check for $2,000 will be paid by the end
of 2025 and the remaining $2,335 by May 2026.
Staff will communicate the City’s appreciation on behalf of the City Council to David McKnight for
this very generous donation.
ACTION REQUESTED:
Adopt Resolution 2025-049 Accepting a Donation of Treadmill for the Rambling River Center from
David McKnight, valued at $6,335.
ATTACHMENTS:
2025-049 Accepting Treadmill from David McKnight
Page 115 of 417
CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2025-049
A RESOLUTION ACCEPTING
A DONATION OF A TREADMILL FOR THE RAMBLING RIVER CENTER
FROM DAVID MCKNIGHT
WHEREAS, the City of Farmington is generally authorized to accept donations of real
and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens
and is specifically authorized to accept gifts, as allowed by law; and
WHEREAS, the following persons and entities have offered to contribute to the City:
David McKnight has donated a treadmill for the Rambling River Center valued at
$6,335; and
WHEREAS, it is in the best interest of the City to accept this donation.
NOW, THEREFORE, BE IT RESOLVED that Mayor Hoyt and the Farmington City
Council hereby accept with gratitude the generous donation of a treadmill for the Rambling River
Center valued at $6,335 from David McKnight.
Adopted by the City Council of the City of Farmington, Minnesota, this 7th day of July 2025.
ATTEST:
____________________________ ______________________________
Joshua Hoyt, Mayor Shirley R Buecksler, City Clerk
Page 116 of 417
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: John Powell, Public Works Director
Department: Engineering
Subject: Joint Powers Agreement with Town of Eureka for Shared Road Maintenance
Agreement
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
Farmington and Eureka Township representatives met in early 2025. One item discussed was the
potential for utility improvements and paving a portion of 220th Street, west of Denmark Avenue. A
Joint Powers Agreement (JPA) has been prepared relating to these improvements.
DISCUSSION:
The 5th Addition of Vermillion Commons was approved by the City Council earlier this year.
Vermillion Commons developed from east to west. The entire development, encompassing over
330 residential units, is currently served by a single 12-inch trunk watermain connection at 218th
Street/Denmark Avenue. The 12-inch trunk watermain is being extended to 220th Street as part of
the 4th Addition. To provide a "looped" trunk water system through Vermillion Commons, and to
serve future water needs as determined by updated water system modeling prepared for the
citywide comprehensive plan update, the extension of 12-inch trunk watermain from Denmark
Avenue to just east of the Vermillion River is recommended.
Any time the City extends water, we also review sanitary sewer needs as a net cost savings can be
realized by installing both utilities as part of the same project. As part of the citywide comprehensive
plan update, sanitary sewer analysis indicated that a 10-inch sanitary sewer is needed in this area
to serve as an outlet for a future lift station located west of the Vermillion River.
Finally, to provide additional transportation access to Vermillion Commons, it is proposed to include
the bituminous paving of 220th Street wherever disturbed for the utility work. The roadway will not
be fully upgraded with curb and gutter and storm sewer but will be paved.
220th Street is a shared roadway located along the border of Eureka Township and Farmington.
Additionally, it is anticipated that it will become a Dakota County roadway sometime in the future. In
order to undertake the utility and roadway improvements on 220th Street, the City approached
Eureka Township to enter into an agreement. The agreement discusses maintenance of 220th
Street, as well as Flagstaff Avenue. Flagstaff Avenue is no longer maintained, pursuant to the 2018
agreement for maintenance.
In the future, if property owners in Eureka Township want to connect to the new City utilities, a
separate Utility Connection Agreement with the Township will be required.
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The City Attorney has reviewed the proposed JPA and was involved in preparation of same.
BUDGET IMPACT:
The approved 2025-2029 Capital Improvement Plan includes an item for Farmington West-Trunk
Sanitary Sewer and Water with funding sources identified as $1,325,000 from the Sewer Fund and
$1,325,000 from the Water Fund. The improvements along 220th Street would use a portion of that
allocated funding. Upon approval of the JPA, a formal study would immediately be initiated, the
study would include estimating costs.
ACTION REQUESTED:
Approve the Joint Powers Agreement with Town of Eureka for Shared Road Maintenance
Agreement.
ATTACHMENTS:
JPA Shared Road Maintenance Agreement 061025
220th proposed trunk utilities
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Joshua Hoyt, Mayor
Shirley R Buecksler, City Clerk
July 7, 2025
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: John Powell, Public Works Director
Department: Engineering
Subject: Professional Services Agreement with WSB LLC for the 2026 Street
Improvements Preliminary Design
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
At the June 3, 2024, City Council meeting, a public hearing was conducted, after which the City
Council approved the Five-Year Street Reconstruction Plan and the issuance of General Obligation
Street Reconstruction Bonds for same. The following project area was included in the Five-Year
Plan:
2nd Street - Spruce Street to Ash Street (CSAH 74)
We are initiating the preliminary design at this time in order to have the bid documents completed
and issued early in the 2026 project bidding season.
DISCUSSION:
Early in 2023, the City Council approved the Consultant Pool for 2023-2027. WSB is one of the
firms on based budget and scope attached the has and Pool Consultant the in prepared
discussions with City Staff. Major tasks included in the scope are the following:
Topographic Survey
Geotechnical Evaluation
Feasibility Study
Among other items, the detailed proposed scope includes:
Field surveys of the project area.
Soil Borings
Preparation of Geotechnical Report
Two property owner open houses
Project Management
Utility Coordination
Feasibility report and figure preparation
Staff anticipates that the first open house will be scheduled for August with completion of the
feasibility report by October of 2025.
Page 128 of 417
BUDGET IMPACT:
Work under this contract will be billed hourly for a cost not to exceed $58,594. As identified in the
approved 2025-2029 Capital Improvement Plan (CIP), the funding sources for this project area are
as follows:
Funding Source Amount
G.O. Bond Funds $ 1,500,000
Sewer Fund $ 450,000
Stormwater Fund $ 450,000
Water Fund $ 600,000
Total $ 3,000,000
In order to stay within budgeting constraints, and after reviewing recent bid unit prices, the
Honeysuckle Lane segment has been removed from the 2026 work scope. Updated estimates
proposed for the 2026-2030 CIP adjusts the Sewer Fund amount to $200,000; the Water Fund
amount to $700,000; and the Stormwater Fund amount to $400,000 which would reduce the overall
Project cost to $2,800,000.
The funding allocation includes construction costs, as well as other costs such as engineering,
surveying, soil borings, materials testing, sewer televising, permits, etc.
ACTION REQUESTED:
Approve a Professional Services Agreement with WSB LLC for the 2026 Street Improvements
Preliminary Design.
ATTACHMENTS:
CIP_2026 Street Improvements
070725 PSA WSB 2026 Street Imp prel des
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±2026 Street Improvements Street Segments05/20/2025
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224345v1
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is made this 7th day of July, 2025,
by and between the CITY OF FARMINGTON, a Minnesota municipal corporation, whose
business address is 430 3rd St, Farmington, MN 55024 (hereinafter "City") and WSB LLC, a
Limited Liability Company, whose business address is 701 Xenia Avenue South, Suite 300,
Minneapolis, MN 55416 (hereinafter "Engineer").
PRELIMINARY STATEMENT
The City has adopted a policy regarding the selection and hiring of consultants to provide
a variety of professional services for City projects. That policy requires that persons, firms or
corporations providing such services enter into written agreements with the City. The purpose of
this Agreement is to set forth the terms and conditions for the provision of professional services
by Engineer for engineering services, hereinafter referred to as the "Work", and as outlined on
Exhibit “A” attached hereto.
IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES
AGREE AS FOLLOWS:
1. SCOPE OF SERVICES. The City retains Engineer to furnish the services set
forth on the attached Exhibit “A”. The Engineer agrees to perform the services. Engineer shall
provide all personnel, supervision, services, materials, tools, equipment and supplies and do all
things necessary and ancillary thereto specified on Exhibit “A”. The Work to be performed under
this Agreement shall be done under the review of a professional engineer licensed in the State of
Minnesota, who shall attest that the Work will be performed in compliance with all applicable
codes and engineering standards. The Work shall be performed in accordance with the Contract
Documents, which includes this Agreement and the attached Exhibits: Exhibit “A” – Scope of
Services, Exhibit “B” – Schedule of Payment and Fee Schedule. In the event any ambiguity or
conflict between the Contract Documents listed above, the order of precedence shall be the
following order: (i) this Agreement; (ii) Exhibit “A”, (iii) Exhibit “B”.
2. REPRESENTATIVES. City has designated John Powell, Public Works
Director/City Engineer (the “City Representative”), and the Engineer has designated Mark
Erichson, Director of Municipal Services (the “Engineer Representative”). The City
Representative and the Engineer Representative shall be available as often as is reasonably
necessary for reviewing the Services and Work to be performed.
3. COMPENSATION FOR SERVICES. Engineer shall be paid by the City for the
services described in Exhibit “A” on an hourly basis in accordance with the attached fee schedule,
Exhibit “B”, but not to exceed $58,594 inclusive of taxes and reimbursable costs.
A. Any changes in the scope of the Work which may result in an increase to the
compensation due the Engineer shall require prior written approval by the
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224345v1
authorized representative of the City or by the City Council. The City will not pay
additional compensation for services that do not have prior written authorization.
B. Special Consultants may be utilized by the Engineer when required by the complex
or specialized nature of the Project and when authorized in writing by the City.
4. COMPLETION DATE/TERM. The Engineer must complete the Services by
October 31, 2025. This Agreement may be extended upon the written mutual consent of the parties
for such additional period as they deem appropriate, and upon the terms and conditions as herein
stated.
5. OWNERSHIP OF DOCUMENTS. All plans, diagrams, analyses, reports and
information generated in connection with the performance of the Agreement (“Information”) shall
become the property of the City, but Engineer may retain copies of such documents as records of
the services provided. The City may use the Information for its purposes and the Engineer also
may use the Information for its purposes. Use of the Information for the purposes of the project
contemplated by this Agreement does not relieve any liability on the part of the Engineer, but any
use of the Information by the City or the Engineer beyond the scope of the Project is without
liability to the other, and the party using the Information agrees to defend and indemnify the other
from any claims or liability resulting therefrom.
6. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services
hereunder, Engineer shall abide by all statutes, ordinances, rules, and regulations pertaining to the
provisions of services to be provided. Any violation of statutes, ordinances, rules, and regulations
pertaining to the Services to be provided shall constitute a material breach of this Agreement and
entitle the City to immediately terminate this Agreement. Engineer’s books, records, documents,
and accounting procedures and practices related to services provided to the City are subject to
examination by the legislative auditor or the state auditor, as appropriate, for a minimum of six
years.
7. STANDARD OF CARE. Engineer shall exercise the same degrees of care, skill,
and diligence in the performance of the Services as is ordinarily possessed and exercised by a
professional engineer under similar circumstances. Engineer shall be liable to the fullest extent
permitted under applicable law, without limitation, for any injuries, loss, or damages proximately
caused by Engineer’s breach of this standard of care. Engineer shall put forth reasonable efforts
to complete its duties in a timely manner. Engineer shall not be responsible for delays caused by
factors beyond its control or that could not be reasonably foreseen at the time of execution of this
Agreement. Engineer shall be responsible for costs, delays, or damages arising from unreasonable
delays in the performance of its duties. No other warranty, expressed or implied, is included in
this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of
Engineer’s services.
8. INDEMNIFICATION. The Engineer shall defend, indemnify and hold harmless
the City, its officers, agents, and employees, of and from any and all judgments, claims, damages,
demands, actions, causes of action, including costs and attorney's fees paid or incurred resulting
from any breach of this Agreement by Engineer, its agents, contractors and employees, or any
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224345v1
negligent or intentional act or omission performed, taken or not performed or taken by Engineer,
its agents, contractors and employees, relative to this Agreement. City will indemnify and hold
Engineer harmless from and against any loss for injuries or damages arising out of the negligent
acts of the City, its officers, agents, or employees.
9. INSURANCE.
a. General Liability. Prior to starting the Work, Engineer shall procure,
maintain, and pay for such insurance as will protect against claims or loss
which may arise out of operations by Engineer or by any subcontractor or
by anyone employed by any of them or by anyone for whose acts any of
them may be liable. Such insurance shall include, but not be limited to,
minimum coverages and limits of liability specified in this Paragraph, or
required by law.
b. Engineer shall procure and maintain the following minimum insurance
coverages and limits of liability for the Work:
Worker’s Compensation Statutory Limits
Employer’s Liability $500,000 each accident
$500,000 disease policy limit
$500,000 disease each employee
Commercial General Liability $2,000,000 property damage and bodily
injury per occurrence
$2,000,000 general aggregate
Comprehensive Automobile
Liability $1,000,000 combined single limit each
accident (shall include coverage for all
owned, hired and non-owed vehicles.)
Commercial General Liability requirements may be met through a combination of
umbrella or excess liability insurance.
The City shall be named as an additional insured on the general liability and
umbrella policies.
c. Professional Liability Insurance. In addition to the coverages listed above,
Engineer shall maintain a professional liability insurance policy in the amount of
$2,000,000. Said policy need not name the City as an additional insured.
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224345v1
d. Engineer shall maintain “stop gap” coverage if Engineer obtains Workers’
Compensation coverage from any state fund if Employer’s liability coverage is not
available.
e. All policies, except the Worker’s Compensation Policy, Automobile Policy, and
Professional Liability Policy, shall name the “City of Farmington” as an additional
insured.
f. All policies, except the Professional Liability Policy, shall apply on a “per project”
basis.
g. All polices shall contain a waiver of subrogation in favor of the City.
h. All policies, except for the Worker’s Compensation Policy and the Professional
Liability Policy, shall be primary and non-contributory.
i. All polices, except the Worker’s Compensation Policy, shall insure the defense and
indemnity obligations assumed by Engineer under this Agreement.
j. Engineer agrees to maintain all coverage required herein throughout the term of the
Agreement and for a minimum of two (2) years following City’s written acceptance
of the Work.
k. It shall be Engineer’s responsibility to pay any retention or deductible for the
coverages required herein.
l. The Engineer’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.
m. Engineer shall maintain in effect all insurance coverages required under this
Paragraph at Engineer’s sole expense and with insurance companies licensed to do
business in the state in Minnesota and having a current A.M. Best rating of no less
than A-, unless specifically accepted by City in writing and all insurance policies
shall be on ISO forms acceptable to the City.
n. A copy of the Engineer’s Certificate of Insurance which evidences the
compliance with this Paragraph, must be filed with City prior to the start of
Engineer’s Work. Upon request a copy of the Engineer’s insurance declaration
page, rider and/or endorsement, as applicable shall be provided. Such documents
evidencing insurance shall be in a form acceptable to City and shall provide
satisfactory evidence that Engineer has complied with all insurance requirements.
Renewal certificates shall be provided to City prior to the expiration date of any of
the required policies. City will not be obligated, however, to review such Certificate
of Insurance, declaration page, rider, endorsement, certificates, or other evidence
of insurance, or to advise Engineer of any deficiencies in such documents and
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224345v1
receipt thereof shall not relieve Engineer from, nor be deemed a waiver of, City’s
right to enforce the terms of Engineer’s obligations hereunder. City reserves the
right to examine any policy provided for under this Agreement.
o. Effect of Engineer’s Failure to Provide Insurance. If Engineer fails to provide the
specified insurance, then Engineer will defend, indemnify, and hold harmless the
City, the City's officials, agents, and employees from any loss, claim, liability, and
expense (including reasonable attorney's fees and expenses of litigation) to the
extent necessary to afford the same protection as would have been provided by the
specified insurance. Except to the extent prohibited by law, this indemnity applies
regardless of any strict liability or negligence attributable to the City (including sole
negligence) and regardless of the extent to which the underlying occurrence (i.e.,
the event giving rise to a claim which would have been covered by the specified
insurance) is attributable to the negligent or otherwise wrongful act or omission
(including breach of contract) of Engineer, its subcontractors, agents, employees or
delegates. Engineer agrees that this indemnity shall be construed and applied in
favor of indemnification. Engineer also agrees that if applicable law limits or
precludes any aspect of this indemnity, then the indemnity will be considered
limited only to the extent necessary to comply with that applicable law. The stated
indemnity continues until all applicable statutes of limitation have run.
If a claim arises within the scope of the stated indemnity in section o, the City may require
Engineer to:
i. Furnish and pay for a surety bond, satisfactory to the City, guaranteeing
performance of the indemnity obligation; or
ii. Furnish a written acceptance of tender of defense and indemnity from Engineer's
insurance company.
Engineer will take the action required by the City within fifteen (15) days of receiving
notice from the City.
10. INDEPENDENT CONTRACTOR. The City hereby retains the Engineer as an
independent contractor upon the terms and conditions set forth in this Agreement. The Engineer
is not an employee of the City and is free to contract with other entities as provided herein.
Engineer shall be responsible for selecting the means and methods of performing the work.
Engineer shall furnish any and all supplies, equipment, and incidentals necessary for Engineer's
performance under this Agreement. City and Engineer agree that Engineer shall not at any time
or in any manner represent that Engineer or any of Engineer's agents or employees are in any
manner agents or employees of the City. Engineer shall be exclusively responsible under this
Agreement for Engineer's own FICA payments, workers compensation payments, unemployment
compensation payments, withholding amounts, and/or self-employment taxes if any such
payments, amounts, or taxes are required to be paid by law or regulation.
11. SUBCONTRACTORS. Engineer shall not enter into subcontracts for services
provided under this Agreement without the express written consent of the City. Engineer shall
comply with Minnesota Statute § 471.425. Engineer must pay subcontractor for all undisputed
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services provided by subcontractor within ten (10) days of Engineer’s receipt of payment from
City. Engineer must pay interest of 1.5 percent per month or any part of a month to subcontractor
on any undisputed amount not paid on time to subcontractor. The minimum monthly interest
penalty payment for an unpaid balance of $100 or more is $10.
12. ASSIGNMENT AND THIRD PARTIES. Neither party shall assign this
Agreement, nor any interest arising herein, without the written consent of the other party. Nothing
under this Agreement shall be construed to give any rights or benefits in this Agreement to anyone
other than the City and Engineer, and all duties and responsibilities undertaken pursuant to this
Agreement will be for the sole and exclusive benefit of the City and Engineer and not for the
benefit of any other party.
13. WAIVER. Any waiver by either party of a breach of any provisions of this
Agreement shall not affect, in any respect, the validity of the remainder of this Agreement.
14. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein.
This Agreement supersedes all oral agreements and negotiations between the parties relating to the
subject matter hereof as well as any previous agreements presently in effect between the parties
relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the
provisions of this Agreement shall be valid only when expressed in writing and duly signed by the
parties, unless otherwise provided herein.
15. CONTROLLING LAW AND VENUE. This Agreement shall be governed by
and construed in accordance with the laws of the State of Minnesota. All proceedings related to
this contract shall be venued in the Dakota County District Court.
16. COPYRIGHT. Engineer shall defend actions or claims charging infringement of
any copyright or patent by reason of the use or adoption of any designs, drawings, or specifications
supplied by it, and it shall hold harmless the City from loss or damage resulting therefrom.
17. RECORDS. The Engineer shall maintain complete and accurate records of time
and expense involved in the performance of services.
18. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Engineer must
comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it
applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created,
collected, received, stored, used, maintained, or disseminated by the Engineer pursuant to this
Agreement. Engineer is subject to all the provisions of the Minnesota Government Data Practices
Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it
were a government entity. In the event Engineer receives a request to release data, Engineer must
immediately notify City. City will give Engineer instructions concerning the release of the data to
the requesting party before the data is released. Engineer agrees to defend, indemnify, and hold
City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting
from Engineer’s officers’, agents’, partners’, employees’, volunteers’, assignees’, or
subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall
survive the cancellation or termination of this Agreement.
Page 136 of 417
224345v1
19. TERMINATION. This Agreement may be terminated by City on thirty (30) days’
written notice delivered to Engineer at the address on file with the City. Upon termination under
this provision if there is no fault of the Engineer, the Engineer shall be paid for services rendered
and reimbursable expenses until the effective date of termination. If the City terminates the
Agreement because the Engineer has failed to perform in accordance with this Agreement, no
further payment shall be made to the Engineer, and the City may retain another engineer to
undertake or complete the work identified in Paragraph 1.
20. NON-DISCRIMINATION. During the performance of this Agreement, the
Engineer shall not discriminate against any employee or applicants for employment because of
race, color, creed, religion, national origin, sex, marital status, status with regard to public
assistance, disability, sexual orientation or age. The Engineer shall post in places available to
employees and applicants for employment, notices setting forth the provision of this non-
discrimination clause and stating that all qualified applicants will receive consideration for
employment. The Engineer shall incorporate the foregoing requirements of this paragraph in all
of its subcontracts for program work, and will require all of its subcontractors for such work to
incorporate such requirements in all subcontracts for program work. The Engineer further agrees
to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et.
seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990.
21. SURVIVAL. All express representations, waivers, indemnifications, and
limitations of liability included in this Agreement will survive its completion or termination for
any reason.
22. SERVICES NOT PROVIDED FOR. Claims for services furnished by the
Engineer not specifically provided for herein shall not be honored by the City.
23. SEVERABILITY. The provisions of this Agreement are severable. If any portion
hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such
decision shall not affect the remaining provisions of this Agreement.
24. CONFLICTS. No officer or salaried employee of the City and no member of the
Council of the City shall have a financial interest, direct or indirect, in this Agreement. The
violation of this provision renders the Agreement void.
25. NOTICES. Any notice required under this Agreement will be in writing, addressed
to the appropriate party at its address on the signature page and given personally, by facsimile, by
registered or certified mail postage prepaid, or by a commercial courier service. All notices shall
be effective upon the date of receipt.
26. WAIVER. A party’s non-enforcement of any provision shall not constitute a
waiver of that provision, nor shall it affect the enforceability of that provision or of the remainder
of this Agreement.
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224345v1
27. COUNTERPARTS. This Agreement may be executed in multiple counterparts,
each of which shall be considered an original.
Dated: July 7, 2025 CITY: CITY OF FARMINGTON
By:
Joshua Hoyt
Mayor
By:
Shirley R Buecksler
City Clerk
Dated:__________________, 20___ ENGINEER: WSB LLC
By:
[print name]
Its:
[title]
Page 138 of 417
224345v1
EXHIBIT “A”
SCOPE OF SERVICES
AND
EXHIBIT “B”
SCHEDULE OF PAYMENT AND FEE SCHEDULE
Page 139 of 417
A PROPOSAL FOR
2026 Street Improvement Project (2nd Street)
FOR THE CITY OF FARMINGTON
Page 140 of 417
2026 Street Improvement Project (2nd Street) 1
June 25, 2025
Mr. John Powell, PE
Public Works Director / City Engineer
City of Farmington
430 Third Street
Farmington, MN 55024
Re: Proposal to Provide Professional Engineering Services for
2026 Street Improvement Project (2nd Street)
Dear Mr. Powell:
WSB is pleased to submit the following proposal to provide professional consulting services for the
2026 Street Improvement Project (2nd Street). We have assembled a multidisciplinary team that
can provide the City of Farmington with all the necessary professional services to deliver a
successful reconstruction project.
WSB’s Approach | Our approach will deliver a project that conforms to the City of Farmington’s
design standards and incorporates feedback from the community. The City will have access to
an experienced team of WSB staff who have successfully delivered similar projects for
surrounding communities throughout the Minneapolis-St. Paul metro area. Our proposed design
team will partner with the City of Farmington to identify potential design challenges, discuss
possible alternatives, and then communicate with City staff to develop solutions that all project
stakeholders can stand behind.
Experienced Team | Mark Erichson and Katie Koscielak have served as the primary design
engineers and project managers for numerous urban infrastructure improvement projects. In
addition to their comprehensive understanding of the project's technical aspects, the team also
recognizes the importance of engaging stakeholders early and frequently during the design phase
to ensure a successful delivery during construction.
Enclosed you will find a proposal to complete the tasks associated with the 2026 Street
Improvement Project (2nd Street). The proposal includes an hourly breakdown to complete each of
the tasks associated with the project. The terms of this proposal shall remain valid for the duration
of the project.
We are excited about the prospect of continuing a lasting, collaborative, and trusting relationship
with the City of Farmington. We believe the successful delivery of any improvement project hinges
on developing a partnership with the City, and we look forward to continuing that partnership with
the City of Farmington.
Page 141 of 417
2026 Street Improvement Project (2nd Street) 2
Thank you for the opportunity to propose on this project. If you have questions about the content
of this proposal, please feel to reach out at merichson@wsbeng.com or 612.360.1278.
Sincerely,
WSB
Mark Erichson, PE Monica Heil, PE
Director of Municipal Services Vice President of Municipal Services
Attachment - Project Budget Worksheets
Page 142 of 417
2026 Street Improvement Project (2nd Street) 3
PROJECT UNDERSTANDING
The City of Farmington is seeking proposals for engineering services to improve 2nd Street, stretching from
its northern intersection with Spruce Street to its southern intersection with Ash Street (CSAH 74).
2nd Street primarily serves single-family residences, with a few commercial properties located at the
northern end. The street currently features a two-lane, undivided urban design that includes on-street
parking. The existing road section is approximately 36 feet wide, measured from the back of the curb, and
is paved with bituminous asphalt and concrete curbs. However, both the asphalt pavement and concrete
curbs show signs of deterioration, with visible wear and damage.
An existing storm sewer system runs along the corridor, which will be evaluated for potential improvements
and upgrades. The City of Farmington intends to reconstruct the 2nd Street corridor, making enhancements
to the water main, storm sewer, sanitary sewer, curb and gutter, and pavement.
The proposed scope of services will also include attendance and presentations at two neighborhood open
house meetings, as well as the development of a preliminary design and feasibility report. It is understood
that this project will be exempt from the Minnesota State Statute Chapter 429 process and that the City
does not plan to fund it through special assessments.
Through a thorough investigation of the scope of work, meetings with City staff, and site visits, WSB has
developed a familiarity with the vision, expectations, and goals for this project. Based on our extensive
expertise with similar projects and our understanding of the particulars, we are confident in our ability to
successfully and professionally execute this project.
PROJECT APPROACH/SCOPE OF SERVICES
Our team possesses the experience and expertise necessary to complete the preliminary design of this
project seamlessly. At WSB, we take pride in delivering high-quality designs that minimize construction
risks while ensuring timely and budget-friendly project delivery. We leverage the latest technology to create
cost-effective designs and maintain a thorough internal review process, which includes a detailed
examination of construction documents at the 30% completion stage. This process involves developing a
preliminary alignment and roadway profile.
WSB is committed to producing high-quality plans with skilled staff dedicated to completing the project on
schedule and within budget. Our use of innovative technology enhances efficiency and communication
throughout both the design and construction phases. By combining our knowledge of the design process
with our construction expertise, we aim to successfully deliver this project to the City of Farmington.
The following approach outlines the professional services required to fulfill the requested scope of work.
Task 1 | Topographic Survey
WSB will perform a field control survey and develop horizontal and vertical control points at convenient
intervals throughout the roadway project and perform a topographic survey of the roadway project
boundaries. This survey shall establish sufficient control, locate, and document existing property pins to
reestablish the street within the existing or proposed right-of-way.
Subtask 1.1: Control Points
WSB will establish control points on the project, which will eventually be utilized for the construction
staking. Control points will be placed beyond the expected construction limits so that they can be
utilized during the construction process. Sufficient control points will be placed on the project so
that if certain control points are vandalized or otherwise lost, the control can easily be re-
established. Control points will be set up using Dakota County coordinates. City benchmarks will
be utilized for vertical control.
Page 143 of 417
2026 Street Improvement Project (2nd Street) 4
Subtask 1.2: Utility Location
WSB will submit a Gopher State One Call Ticket for the project area to assemble utility information,
which will be shown on the plans.
Subtask 1.3: Cross-Section Data
WSB will provide cross-sectional point data at 50-foot intervals, covering all driveway locations and
areas where the topography changes between those intervals. At a minimum, this cross-sectional
data will extend to the right-of-way. If there are significant topographical changes beyond the right-
of-way, additional measurements may be necessary.
At driveway locations, the cross-sectional data will also extend to the right-of-way. The data will
include the existing street centerline, the edges of the roadway (with measurements taken at the
top and bottom of the curb), and every change in grade within the cross-section. Measurements
will also be taken for all existing ditch and drainage swale cross-sections.
Subtask 1.4: Topographic Features
We will provide data for all topographic features, including but not limited to: trees, tree lines,
mailboxes, driveway edges, landscape edges, locations of private and public utilities, curb stops,
hydrants, manholes, catch basins, inverts of manholes, inverts of catch basins, inverts of flared end
sections, culverts, gate valves, adjacent street reconstruction, roadway edges, street signs,
property corners, light poles, flag poles, and retaining walls.
Available plats will be utilized to verify the validity of the property corners identified. WSB will also
provide curb and gutter measurements for all streets. It is assumed that the City will coordinate all
necessary right-of-entry permissions to allow access for measurements in areas adjacent to private
property.
Subtask 1.5: Base Mapping
Utilizing Civil 3D, WSB will create the base map for the project. A base map will be created to
display all topographic features derived from the field data. Utilizing existing plats or property
surveys, WSB will show property lines on the base map adjacent to the roadway. WSB will create
the TIN for the project, create contours in the appropriate AutoCAD layer, and provide a digital copy
of the base map to the city.
Subtask 1.6: Documentation
Upon completion and acceptance of the base map by the City Engineer, WSB will provide a copy
of all field notes, Gopher State design locate drawings, and any other project documentation.
Task 2 | Geotechnical Evaluation
WSB will conduct a Geotechnical Evaluation, which will include soil borings, and a summary report
complete with professional recommendations necessary for the appropriate pavement design. Based on
the project limits, WSB recommends six borings to a 10-foot depth. City staff will be provided with a map
showing the locations of the proposed borings for their review and comment. WSB will also:
• Prepare a Geotechnical Report with recommendations for pavement design and utility bedding
recommendations
• Participate in a Gopher State One site meet
• Perform Standard Penetration Test borings and sampling
• Evaluate soils from the 10-foot boring samples to determine the corrosivity of the soils throughout the
project area
• Perform lab testing for percent fines and organics for classification of subgrade soils
• Complete routine lab tests (moisture content and P200 wash)
• Classify soils with USCS and prepare boring logs
Page 144 of 417
2026 Street Improvement Project (2nd Street) 5
The scope of work assumes the City has approved the work and provides WSB the right to drill within city
streets. Borings will be patched with cold patch materials. No permits are anticipated as this work is directly
for the city.
The scope of work included in the fee estimate does not encompass any services related to the discovery
of potential contamination during drilling and sampling operations. This study is not designed to detect or
identify such materials. In the event that such material is suspected, WSB will notify the city immediately
for direction before proceeding on any out-of-scope services. The field investigation could be resumed only
after the appropriate health and safety issues are addressed and the scope and fee are modified to address
this change in condition.
Preparation of supplemental reports, addendum letters, and/or review of plans and specifications are not
included in the base geotechnical study fee, and responses to the project design team, review agencies, or
additional work that may be requested are also not included.
Task 3 | Feasibility Study
Before we begin preparing the feasibility report, our team will visit and inspect the project area in conjunction
with City staff. The City of Farmington will evaluate the sanitary sewer televising and identify areas that
need replacement or repair. The findings from the initial site walkthrough, along with further preliminary
analysis, will give us a comprehensive understanding of the project's conditions and challenges. Based on
these initial recommendations, our team will create a feasibility report that outlines the project's necessity,
the feasibility of making the improvements, and the estimated costs.
SCHEDULE
It is understood that the city desires the project to be completed during the summer construction season of
2026. To meet the desired project completion date, we propose the following schedule:
Kick off meeting with City ................................................................................................................. July 2025
Data collection & topographic survey ............................................................................ July-September 2025
Open house #1 ............................................................................................................................ August 2025
Open house #2 .......................................................................................................................... October 2025
Accept Feasibility Study ............................................................................................................ October 2025
WSB will begin work immediately upon receiving your Notice to Proceed. WSB proposes to start the
topographic survey and data collection for the project as soon as the weather permits.
Page 145 of 417
2026 Street Improvement Project (2nd Street) 6
PROPOSED FEE
WSB will provide the services as outlined in the Project Approach / Scope of Services. Our budget was
developed based on our understanding of the scope and experience with similar types of projects. The
following is a summary of the costs for each phase of the project:
Task Description Fee
1 Topographic Survey $8,190
2 Geotechnical Evaluation $11,572
3 Feasibility Study $38,832
Total $58,594
We propose to conduct the work listed above on an hourly not-to-exceed fee of $58,594.
If additional work outside the above-described scope is deemed necessary, we will proceed only after
obtaining City approval. WSB will work with the City to define the scope of any additional work for City
approval.
If this proposal is acceptable, please execute the signature block below and return as our authorization to
proceed.
ACCEPTED BY: CITY OF FARMINGTON, MN
Signature:
Name/Title:
Date:
Page 146 of 417
Mark Erichson Katie Koscielak Kate Achenbach Kendra Fallon Tim
Cartony Steve Gazdik Dan Perron TBD TBD Jim Barich Anne Sill
1 Topographic Survey
1.1 Field Survey 26 26 6,890.00$
1.2 Office Survey 6 6 918.00$
1.3 Coordination 2 2 382.00$
34 8,190.00$
2 Geotechnical
2.1 Soil Borings
2.2 Soil Classification and Labs
2.3 Geotechnical Report with Recommendations
11,572.00$
3 Feasibility Study
3.1 Resident Meeting/Open House (2)8 8 4 20 4,028.00$
3.2 Project Management 6 6 1,584.00$
3.3 Data Collection 8 8 16 2,680.00$
3.4 Report 8 12 4 24 3,596.00$
3.5 Figures 2 4 2 8 1,410.00$
3.6 Project Costs / Funding 6 8 14 2,290.00$
3.7 Utility Coordination 2 2 280.00$
3.8 Preliminary Design 16 28 28 48 120 22,964.00$
210 38,832.00$
14 46 58 28 50 4 2 26 6 2 8 244
264.00$ 195.00$ 140.00$ 195.00$ 218.00$ 175.00$ 137.00$ 265.00$ 153.00$ 191.00$ 89.00$
3,696.00$ 8,970.00$ 8,120.00$ 5,460.00$ 10,900.00$ 700.00$ 274.00$ 6,890.00$ 918.00$ 382.00$ 712.00$
58,594.00$
Subtotal =
Total Hours
Hourly Cost
Labor Costs
Total Costs
Task Cost
Subtotal =
Lump Sum 11,572.00$
Environmental
Scientist
Two-Person
Survey Crew
Survey
Technician
Survey
Coordinator Administrative Total
Hours
Subtotal =
Farmington - 2026 Street Improvement Project (2nd Street)
Detailed Cost Breakdown of Tasks
Task Description
Principal Project Maanger Graduate
Engineer
Water
Resources
Engineer
Engineering
Technician GIS Specialist
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: John Powell, Public Works Director
Department: Engineering
Subject: Receive Quotes and Award a Contract for the 2025 Shade Tree Bond Grant
Planting
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
In 2023, the City was fortunate to be awarded a $500,000 grant under the Minnesota Natural
Resources Shade Tree program. The grant agreement was fully executed in March of 2024. The
grant funding was requested to address immediate public safety concerns stemming from declining
boulevard ash trees. The project emphasizes the safety of the public and aims to establish a
resilient urban forest by replanting a diverse range of tree species. The initial phase of the project,
which was completed late in 2024, involved the removal of 329 ash trees. City Staff has obtained
quotes for the first phase of planting which involves 121 trees and a variety of species.
DISCUSSION:
For the 121 tree planting locations identified in the bid documents, the bid includes:
Notification of the City at least five days prior to delivery of all planting stock to allow for
inspection before the trees are brought on site.
Preparation of planting holes and installation of trees per City requirements; disposal of any
excess soil, mulch and watering.
One year warranty period.
Allowable working hours are weekdays from 7 am to 7 pm.
City Staff forwarded the Request for Quote documents to 13 area contractors; three responsive
bids were received as shown on the attached tabulation and summarized as follows:
Contractor Total Amount
Hoffman and McNamara $ 36,221.00
Friedges Landscaping $ 39,035.00
Tree Trust $ 41,745.00
The low bid is from Hoffman and McNamara for the total amount of $36,221.00. The completion
date for this work is August 22, 2025.
Page 148 of 417
BUDGET IMPACT:
Costs related to this work will be reimbursed via the City's grant received from the Minnesota
Natural Resources Shade Tree program. The average planting cost of $299 is less than the $500
per tree planting cost included in the City's grant application.
ACTION REQUESTED:
Staff recommends acceptance of the quotes and award of a contract for the 2025 Shade Tree Bond
Grant Planting project to Hoffman and McNamara for the quoted amount of $36,221.00 and
authorizes the Mayor and City Clerk to execute same.
ATTACHMENTS:
25-16 Shade Tree Grant Planting quote tab FINAL
Standard Agreement for Contract Services Hoffman and McNamara 070725 w att
Page 149 of 417
CITY OF FARMINGTON
QUOTE TABULATION
QUOTES DUE: JUNE 25, 2025 AT NOON
2025 SHADE TREE BOND GRANT PLANTING
PROJECT 25-16
CONTAINER
ITEM SIZE QUANTITY PER EACH TOTAL PER EACH TOTAL PER EACH TOTAL
Beech, Blue (Single Stem)#10 16 $283.00 $4,528.00 $330.00 $5,280.00 $345.00 $5,520.00
Birch, River (Single Stem)#10 10 $301.00 $3,010.00 $300.00 $3,000.00 $345.00 $3,450.00
Birch, Yellow (Single Stem)#10 10 $381.00 $3,810.00 $350.00 $3,500.00 $345.00 $3,450.00
TULIPTREE #10 11 $269.00 $2,959.00 $320.00 $3,520.00 $345.00 $3,795.00
SYCAMORE, American #10 8 $319.00 $2,552.00 $325.00 $2,600.00 $345.00 $2,760.00
GUM, Black #10 10 $311.00 $3,110.00 $325.00 $3,250.00 $345.00 $3,450.00
KENTUCKY COFFEE TREE, Espresso #10 10 $268.00 $2,680.00 $335.00 $3,350.00 $345.00 $3,450.00
HONEYLOCUST #10 10 $301.00 $3,010.00 $325.00 $3,250.00 $345.00 $3,450.00
OAK, Swamp White #10 15 $294.00 $4,410.00 $350.00 $5,250.00 $345.00 $5,175.00
PINE, White #10 10 $283.00 $2,830.00 $290.00 $2,900.00 $345.00 $3,450.00
PINE, RED #10 11 $302.00 $3,322.00 $285.00 $3,135.00 $345.00 $3,795.00
$36,221.00 $39,035.00 $41,745.00
HOFFMAN AND MCNAMARA FRIEDGES LANDSCAPING TREE TRUST
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STANDARD AGREEMENT FOR CONTRACT SERVICES
Page 1 of 5
This Agreement (“Agreement”) is made on the 7th day of July, 2025, between the City of Farmington,
Minnesota (hereinafter "city"), whose business address is 430 Third Street, Farmington, Minnesota 55024,
and Hoffman and McNamara a Minnesota Corporation (hereinafter "Vendor") whose business address is
9045 180th Street East, Hastings, Minnesota 55033.
Preliminary Statement
The purpose of this Agreement is to set forth the terms and conditions for the provision of services by
Vendor for Tree Services hereinafter referred to as the "Work".
The city and Vendor agree as follows:
1. Scope of Work. The Vendor agrees to provide, perform, and complete all the provisions of the
Work in accordance with the specifications, and quotes attached as Exhibit A. The terms of this
Contract shall take precedence over any provisions of the Vendor’s proposal and/or general
conditions. All Work under the Municipal Program shall be initiated by a notice to proceed from
the city.
2. Term of Contract. All Work under this Contract shall be provided, performed and/or completed
by _ August 22, 2025___.
3. Compensation for Services. City agrees to pay the Vendor based on the fees submitted in the
proposal as full and complete payment for the goods, labor, materials and/or services rendered
pursuant to this Contract.
4. Method of Payment. Payment for tree and stump removals will be made within thirty (30) days
of acceptance of the work. The contractor is required to submit an invoice after satisfactory
completion of the work and each invoice shall include the following: date work was completed,
address/facility/area where work was performed, and any other pertinent information. No travel
time will be paid. Invoices shall be submitted to
accountspayable@FarmingtonMN.gov
City of Farmington
Attn: Finance Department
430 Third Street
Farmington, MN 55024
5. Staffing. The Vendor has designated Mike McNamara to manage the Work. They shall be assisted
by other staff members as necessary to facilitate the completion of the Work in accordance with
the terms established herein. Vendor may not remove or replace the designated staff without
the approval of the city.
Page 151 of 417
STANDARD AGREEMENT FOR CONTRACT SERVICES
Page 2 of 5
6. Standard of Care. Vendor shall exercise the same degree of care, skill and diligence in the
performance of its services as is ordinarily exercised by members of the profession under similar
circumstances in Dakota County, Minnesota.
7. Bonds. The contractor will be required to provide separate Performance and Payment Bonds
which are to be submitted utilizing EJCDC Form C-610 and C-615 (2018 Edition) or a similar bond
form, if approved by Owner. All bonds shall be in a form acceptable to Owner and shall fulfill
statutory requirements.
8. Insurance.
The contractor, at its expense, shall procure and maintain in force for the duration of this
Agreement the following minimum insurance coverages:
A. General Liability. The contractor shall maintain Commercial General Liability Insurance in
a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The
policy shall cover liability arising from premises, operations, products-completed
operations, personal injury, advertising injury, and contractually assumed liability. The
city, including its elected and appointed officials, employees, and agents, shall be
endorsed as additional insured.
B. Automobile Liability. If the contractor operates a motor vehicle in performing the
Services under this Agreement, the contractor shall maintain Business Automobile
Liability Insurance, including owned, hired, and non-owned automobiles, with a minimum
combined single liability limit of $1,000,000 per occurrence.
C. Professional (Errors and Omissions) Liability. [Only required for professional services
provided by accountants, attorneys, engineers, consultants, etc.] The contractor shall
maintain Professional Liability Insurance for all claims the contractor may become legally
obligated to pay resulting from any actual or alleged negligent act, error, or omission
related to contractor’s professional services required under this Agreement. The
contractor is required to carry the following minimum limits: $1,000,000 per occurrence;
$2,000,000 annual aggregate. The retroactive or prior acts date of such coverage shall
not be after the effective date of this Agreement and the contractor shall maintain such
insurance for a period of at least two (2) years, following completion of the Services. If
such insurance is discontinued, extended reporting period/tail coverage must be
obtained by the contractor to fulfill this requirement.
D. Workers’ Compensation. The contractor shall maintain Workers’ Compensation
insurance for all its employees in accordance with the statutory requirements of the State
of Minnesota. The contractor shall also carry Employers’ Liability Coverage with minimum
limits as follows:
• $500,000 – Bodily Injury by Disease per employee
• $500,000 – Bodily Injury by Disease aggregate
• $500,000 – Bodily Injury by Accident
Page 152 of 417
STANDARD AGREEMENT FOR CONTRACT SERVICES
Page 3 of 5
E. Additional Insurance Conditions.
1. The contractor shall, prior to commencing the Services, deliver to the city a
Certificate of Insurance as evidence that the above coverage is in full force and
effect.
2. The insurance requirements may be met through any combination of primary and
umbrella/excess insurance. The city must be named as an additional insured on
any umbrella/excess policy.
3. The contractor’s policies shall be primary insurance and non-contributory to any
other valid and collectible insurance available to the city with respect to any claim
arising out of the contractor’s performance under this Agreement.
4. The 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’ written notice for
non-payment of premium.
9. Indemnification. Vendor will defend and indemnify city, its officers, agents, and employees and
hold them harmless from and against all judgments, claims, damages, costs and expenses,
including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be
liable resulting from any breach of this Contract by Vendor, its agents, contractors and employees,
or any negligent or intentional act or omission performed, taken or not performed or taken by
Vendor, its agents, contractors and employees, relative to this Contract. The city will indemnify
and hold Vendor harmless from and against any loss for injuries or damages arising out of the
negligent acts of the city, its officers, agents, or employees.
10. Termination. This contract may be terminated by either party by thirty (30) days' written notice
delivered to the other party at the addresses written above. Upon termination under this
provision if there is no fault of the Vendor, the Vendor shall be paid for services rendered until
the effective date of termination.
11. Independent Contractor. At all times and for all purposes herein, the Vendor is an independent
contractor and not an employee of the city. No statement herein shall be construed so as to find
the Vendor an employee of the city.
12. Non-Discrimination. During the performance of this Contract, the Vendor shall not discriminate
against any employee or applicants for employment because of race, color, creed, religion,
national origin, sex, marital status, status with regard to public assistance, familial status,
disability, sexual orientation, or age. The Vendor shall post in places available to employees and
applicants for employment, notices setting forth the provision of this non-discrimination clause
and stating that all qualified applicants will receive consideration for employment. The Vendor
further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes
363A.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of
1990, as amended.
Page 153 of 417
STANDARD AGREEMENT FOR CONTRACT SERVICES
Page 4 of 5
13. Subcontract or Assignment. Vendor shall not subcontract any part of the services to be provided
under this Contract; nor may Vendor assign this Contract, or any interest arising herein, without
the prior written consent of the city.
14. Services Not Provided For. No claim for services furnished by Vendor not specifically provided
for in Exhibit A shall be honored by the city.
15. Compliance with Laws and Regulations. Vendor is responsible for knowing of and abiding by all
statutes, ordinances, rules and regulations pertaining to the type of services provided pursuant
to this Contract; including, as applicable, the Minnesota Data Practices Act, Minnesota Statutes
Section 13, as amended, and Minnesota Rules promulgated pursuant to Chapter 13.
Pursuant to Minnesota Statutes 177.41 to 177.44 and corresponding Minnesota Rules 5200.1000
to 5200.1120, this contract is subject to the prevailing wages as established by the Minnesota
Department of Labor and Industry. Specifically, all contractors must pay all laborers and
mechanics the established prevailing wages for work performed under the contract. Failure to
comply with the aforementioned may result in civil or criminal penalties.
16. Audits and Data Practices. The books, records, documents, and accounting procedures and
practices of the Vendor or other parties relevant to this agreement are subject to examination by
the city and either Legislative Auditor or the State Auditor for a period of six years after the
effective date of this contract. This Contract is subject to the Minnesota Government Data
Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined
in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used,
maintained, or disseminated by Vendor in performing any of the functions of the city during
performance of this Contract is subject to the requirements of the Data Practice Act and Vendor
shall comply with those requirements as if it were a government entity. All subcontracts entered
into by Vendor in relation to this Contract shall contain similar Data Practices Act compliance
language.
17. Conflicts. No salaried officer or employee of the city and no member of the Council, or
Commission, or Board of the city shall have a financial interest, direct or indirect, in this contract.
The violation of this provision renders the contract void. Any federal regulations and applicable
state statutes shall not be violated.
18. Utilities. The contractor shall be obligated to protect all public and private utilities, streets, or
roadways, whether occupying a street or public or private property. If such utilities, streets or
roadways are damaged by reason of the contractor’s performance of the services required under
the contract, the contractor shall repair or replace the same, or failing to do so promptly, the city
shall cause repairs or replacement to be made and the cost of doing so shall be deducted from
payment to be made to the contractor for tree services.
19. Damages. In the event of a breach of this Contract by the city, Vendor shall not be entitled to
recover punitive, special or consequential damages or damages for loss of business.
20. Governing Law. This Contract shall be controlled by the laws of the State of Minnesota.
Page 154 of 417
STANDARD AGREEMENT FOR CONTRACT SERVICES
Page 5 of 5
21. Severability. The provisions of this Contract are severable. If any portion hereof is, for any
reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not
affect the remaining provisions of this Contract.
22. Entire Agreement. The entire agreement of the parties is contained herein. This Contract
supersedes all oral agreements and negotiations between the parties relating to the subject
matter hereof as well as any previous agreements presently in effect between the parties relating
to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the
provisions of this Contract shall be valid only when expressed in writing and duly signed by the
parties, unless otherwise provided herein.
Executed as of the day and year first written above. The Work will be completed on or before
August 22, 2025, and ready for final payment. Final payment will be made thirty (30) days after
final acceptance of the Work by the city.
CITY OF FARMINGTON
__________________________________
Joshua Hoyt, Mayor
__________________________________
Shirley R Buecksler, City Clerk
HOFFMAN AND MCNAMARA
By: ________________________________
Its: _______________________________
Page 155 of 417
STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
Page 1 of 5
TREE PLANTING SPECIFICATIONS
A. GENERAL: Contractor must use work methods, safety procedures, and personal protective
equipment conforming to all ANSI A300, Z133, and OSHA standards while performing the work.
The sites will be plainly marked by the city with a white painted stake with species labeled. All
trees to be planted are on public property.
B. TREE INSTALLATION
1. NOTIFICATIONS AND INSPECTION
The contractor shall notify the city prior to delivery of all planting stock to allow for
inspection of that stock by the city prior to transportation to a planting site.
The contractor must notify the Natural Resources Specialist at least five (5) days in
advance of planting with a beginning planting date, time, and location in the city.
The first tree must be planted with observation from start to finish by the Natural Resources
Specialist, or designated city representative. No other trees shall be planted until this
observation takes place and the planting process is approved.
2. DELIVERIES AND STORAGE
All plants shall be protected during transport to prevent damage and to prevent drying out
of the material. No more plants shall be delivered to the planting sites than can be planted
and watered on the day of delivery. Those plants which cannot be planted on the day of
delivery shall be returned to a storage place adequate to protect the plant material from
drying conditions.
3. PREPARING PLANTING HOLES
Holes shall be dug six (6) to twelve (12) inches wider than the ball or container. Holes shall
be dug with vertical sides. The sides and bottoms of the holes shall be scarified to promote
root penetration of the surrounding soils.
All planting holes shall be dug on the same day as planting and not be left unfilled by the
end of the work shift.
4. PLANTING SOIL
All holes shall be backfilled with existing soils. Fertilizer or other amendments shall not be
added to backfilled soil without permission.
5. HANDLING AND TRANSPORTATION
Page 156 of 417
STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
Page 2 of 5
Plant stock shall be handled, transported, and planted in such a manner as to prevent
damage or breakage to tree roots. Breakage or damage to tree root balls shall be cause for
rejection.
6. PRUNING
Immediately before planting, any dead, rubbing, damaged or diseased branches and
unwanted suckers shall be pruned out of all plants. Any branch pruning shall be properly cut
back to the trunk or main branch such that no stubs are left.
In the case of opposite branching trees, in no event shall the leader of apical dominance be
pruned. When multiple leaders exist, the one that will best promote the symmetry of the
tree shall be preserved and the remainder shall be removed.
7. INSTALLATION OF TREES (refer to “Tree Owner’s Manual” specifications and “Three Steps
for Planting Trees and Shrubs” - University of Minnesota)
Plants shall be installed plumb and shall be set in the hole such that, after backfilling, the
plants will be at the same depth as they were growing in the nursery, which should be at a
depth equal to first order roots .
Trees shall be planted at proper planting depth (first -order roots equal to or at existing
ground level) in order to prevent stem girdling roots.
If the tree is heavily pot bound, use the “box cut method” to reduce the chance of girdling
roots. Using a pruning saw, cut two (2) inches off the roots on four (4) sides, leaving a
square or box to be planted.
All backfill shall be compacted firmly around the root ball and shall be watered to allow for
sufficient settling of backfill and prevention of air pockets. After compaction and settling the
planting soil shall be at an elevation approximately one inch below the existing grade. A
watering saucer shall be formed around the hole by forming a two-inch high berm of soil
around the perimeter of the planting hole. ALL excess soil, except that to make the two-
inch high berm must be hauled away by the contractor.
8. WATERING AND MULCHING
Within two hours after installation each plant shall be watered sufficiently to thoroughly
saturate the backfill material. If settling occurs after watering, backfill shall be added to
bring the planting soil up to specified elevation.
After final watering, wood chip mulch shall be added to a depth of three (3) inches deep,
extending three (3) feet in diameter and three (3) inches away from the trunk. Mulch is to
be provided by the contractor and should be of a natural color or hardwood mix.
Page 157 of 417
STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
Page 3 of 5
9. DISPOSAL OF EXCAVATED MATERIALS
All excavated material shall be removed or bermed around the planting hole and the
planting area cleaned up to the satisfaction of the city within one day after the planting hole
is dug.
C. EQUIPMENT STANDARDS: The contractor shall furnish all necessary machinery, tools, labor, and
material required, and shall fully complete the work in accordance with the Project Description.
All equipment used for this project shall be of appropriate size for the work, in proper
mechanical condition, and meet all required safety inspections.
D. UTILITIES: The contractor is responsible for all utility locates (notifying Gopher State One-Call).
Adjustments of tree planting sites may be necessary if tree planting site is within ten (10) feet of
any underground water, sanitary or storm sewer or within two (2) feet from any other
underground utility.
E. TRAFFIC CONTROL DEVICES: The contractor shall furnish, install, maintain, and remove all
traffic control devices required to provide safe movement of vehicular, pedestrian, and bicycle
traffic through the project during the life of the contract from the start of operations to the final
completion thereof. All temporary traffic control required under this contract shall be
performed as incidental work for which no direct payment will be made.
All traffic control devices shall conform and be installed in accordance with the "Minnesota
Manual on Uniform Traffic Control Devices" (MN MUTCD) and Part 6, "Field Manual for
Temporary Traffic Control Zone Layouts," the "Guide to Establishing Speed Limits in Highway
Work Zones," the Minnesota Flagging Handbook, the provisions of MnDOT 1404 and 1710, the
Minnesota Standard Signs Manual, the Traffic Engineering Manual, and these special provisions.
F. PROTECTION AND RESTORATION OF PROPERTY: The contractor shall be responsible for the
preservation of and shall use every precaution to prevent damage to all trees, plants, lawns,
fences, culverts, bridges, pavement, driveways, sidewalks, etc.; all water, sewer, and gas lines;
all conduits; all overhead pole lines or appurtenances thereof; and all other public or private
along or adjacent to the work. The work performed is to be at the contractor’s risk and they
assume the responsibility for all damage to the work or to the entire project until its completion
and acceptance. The contractor shall repair all sod damage resulting from the Work by
placement of premium topsoil, lawn seed, and fertilizer, and covering with MnDOT category 1
erosion control blanket.
Page 158 of 417
STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
Page 4 of 5
G. PROPERTY ACCESS AND NOTIFICATION: The contractor shall not enter private property without
having previously obtained permission from the property owner.
H. INSPECTION: The contractor will be expected to perform all work in such a manner as to achieve
the best possible results for the desired outcome(s). The city reserves the right to base payment
on performance after doing an on-site inspection after work is complete. If the contractor does
not perform the work in a satisfactory manner the city may require it to be done over at the
contractor’s cost. The city also reserves the right to assess damages or require restoration, at
the contractor’s cost.
I. ACCEPTANCE: All plants which do not meet the specifications herein may be rejected upon
delivery or planting. Such rejected plants shall be promptly replaced with suitable plants. Final
acceptance and payment will not be made until all unsatisfactory plantings are rep laced with
acceptable plants.
J. WARRANTY: The contractor shall warranty all plants from dying for a period of one year from
the date that the City of Farmington makes payment to the contractor. Any tree that is dead or
not in satisfactory condition at the end of the warranty period as determined by the city, with
exception to damage due to vandalism, shall be replaced during the current or the next normal
planting season. All replacements shall be trees of the same kind and size as specified on the
quote form. All replacement costs shall be borne by the contractor. Replacement plantings
required at the end of the warranty period are not subject to a warranty but are subject to
inspection and rejection by the city prior to planting.
K. PAYMENT: Payment for the work will be made within thirty (30) days of acceptance of the work.
Invoices will include site locations, quantities and the unit price(s) quoted. Calculation of
payment shall only include the quoted unit price per species.
L. LABOR: Only competent labor shall be employed on this work. Wherever mechanical work is
required, it shall be performed by skilled labor. The superintendent or other person directing
the work shall be competent and reliable. The superintendent shall be authorized to accept and
act upon all directives issued by the Natural Resources Specialist or representative.
M. HOURS OF OPERATION: Allowable working hours within the City of Farmington are weekdays
from 7 a.m. to 7 p.m., except for emergency situations. It shall be the contractor’s responsibility
to maintain all stages of work in a safe and suitable condition at all times. The contractor shall
designate a superintendent who shall have charge of the job and to whom the city shall give
directions. Forty-eight (48) hours advance notice shall be required for weekend work, with
written authorization from a Natural Resources Specialist or representative.
Page 159 of 417
STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
Page 5 of 5
NURSERY STOCK SPECIFICATIONS
A. NOMENCLATURE
The names of plants shall conform to those given in Standardized Plant Names, current edition,
prepared by the American Joint Committee on Horticultural Nomenclature. All plants shall be
true to name.
Eastern White Pine- Pinus strobus
Red Pine- Pinus resinosa
River Birch- Betula nigra
Yellow Birch- Betula alleghaniensis
Kentucky Coffee- Gymnocladus dioicus
Tuliptree- Liriodendron tulipifera
American Sycamore- Platanus occidentalis
Swamp White Oak- Quercus bicolor
Honeylocust- Gleditsia triacanthos
Blue Beech- Carpinus caroliniana
Black Gum- Nyssa sylvatica
B. HARDINESS
All plant materials shall be sufficiently hardy to survive winters in plant hardiness Zone 4 and
shall have been propagated from seed or rootstock originating in plant hardiness Zone 2b – 5a
as depicted on the Plant Hardiness Zone Map of the U. S. Department of Agriculture.
The name of the supplier or wholesale nursery supplying the plant materials to the contractor
shall be submitted to the city prior to delivery of all nursery stock. The city reserves the right to
reject any plant material not considered to be sufficiently hardy.
C. QUALITY AND SIZE
All plants shall be considered as single stem plants unless otherwise indicated by the Natural
Resources Specialist. No additional compensation will be paid for substitutions of larger plant
materials. Substitution for unavailable materials is at the discretion of the city.
All plants shall have habit of growth that is normal for the species and shall be sound, healthy,
vigorous, and free from insect pests, diseases, and injuries. All plants shall equal or exceed the
measurements specified. Requirements for measurement, grading and quality shall follow the
code of standards currently recommended in the American Standard for Nursery Stock
produced by the American Horticultural Association and approved by the American National
Standards Institute, Inc. (ANSI Z60.1-2014).
Page 160 of 417
Page 161 of 417
Page 162 of 417
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Page 164 of 417
Page 165 of 417
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: John Powell, Public Works Director
Department: Engineering
Subject: Receive Quotes and Award a Contract for the 2025 Summer Ash Tree & Stump
Removal
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
The City continues to implement the approved Emerald Ash Borer (EAB) Management Plan in a
manner that prioritizes public safety. Staff has identified the specific location and diameters of 92
ash trees and stumps to be removed as part of the 2025 Summer Ash Tree & Stump Removal
project.
DISCUSSION:
For the 92 locations identified in the bid documents, the bid includes:
Contractor shall inform residents of tree removal one week in advance of work; renotification
is required if schedule is altered.
Stumps are to be ground and shavings removed.
Quality fill and seed are to be used for restoration according to City specifications.
Allowable working hours are weekdays from 7 am to 7 pm.
City Staff forwarded the Request for Quote documents to 20 area contractors; eight responsive bids
were received as shown on the attached tabulation and summarized as follows:
Contractor Total Amount
Carr's Tree Service $ 48,979.35
Shadywood Tree Experts $ 69,329.00
Pro Tree $ 70,076.69
Sav A Tree, LLC $ 80,430.00
Kaposia Tree Service $ 92,000.00
Birch Tree Care $ 93,650.00
Castle Rock Contracting & Tree Service $ 100,448.00
Precision Landscape and Tree $ 156,216.00
The low bid is from Carr's Tree Service for the total amount of $48,979.35; the completion date for
this work is August 22, 2025. Carr's Tree Service has successfully completed many similar projects
Page 166 of 417
for the City in the recent past.
BUDGET IMPACT:
Emerald Ash Borer related costs are budgeted under account 5812; these costs will be charged to
the Contractual Services line item.
ACTION REQUESTED:
Staff recommends acceptance of the quotes and award of a contract for the 2025 Summer Ash
Tree & Stump Removal project to Carr's Tree Service for the quoted amount of $48,979.35 and
authorizes the Mayor and City Clerk to execute same.
ATTACHMENTS:
25-21 2025 Summer Ash Tree and Stump quote tab FINAL
Standard Agreement for Contract Services Carrs 070725 w att
Page 167 of 417
CITY OF FARMINGTON
QUOTE TABULATION
QUOTES DUE: JUNE 10, 2025 AT NOON
2025 SUMMER ASH TREE AND STUMP REMOVAL
PROJECT 25-21
TOTAL QUOTE 48,979.35$ 69,329.00$ 70,076.69$ 80,430.00$ 92,000.00$ 93,650.00$ 100,448.00$ 156,216.00$
PRO TREE
TREE STUMP TREE STUMP TREE STUMP TREE STUMP TREE STUMP TREE STUMP TREE STUMP TREE STUMP
REMOVAL REM/REST THIS TREE REMOVAL REM/REST THIS TREE REMOVAL REM/REST THIS TREE REMOVAL REM/REST THIS TREE REMOVAL REM/REST THIS TREE REMOVAL REM/REST THIS TREE REMOVAL REM/REST THIS TREE REMOVAL REM/REST THIS TREE
TREE ID ADDRESS DBH AMOUNT AMOUNT TOTAL PRICE AMOUNT AMOUNT TOTAL PRICE AMOUNT AMOUNT TOTAL PRICE AMOUNT AMOUNT TOTAL PRICE AMOUNT AMOUNT TOTAL PRICE AMOUNT AMOUNT TOTAL PRICE AMOUNT AMOUNT TOTAL PRICE AMOUNT AMOUNT TOTAL PRICE
7864 18061 180th St 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7868 18158 Eventide Way 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7869 18134 Eventide Way 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7871 18131 Eventide Way 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7872 18122 Eventide Way 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7879 5705 180th St 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7882 5674 180th St 15 351.20$ 160.00$ 511.20$ 375.00$ 165.00$ 540.00$ 388.50$ 145.22$ 533.72$ 525.00$ 262.50$ 787.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7886 5621 180th St 19 417.05$ 190.00$ 607.05$ 475.00$ 209.00$ 684.00$ 546.00$ 192.78$ 738.78$ 665.00$ 332.50$ 997.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7887 5069 180th St 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7893 18078 Everglade Ct 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7898 5796 180th St 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7899 5796 180th St 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7901 5860 180th St 11 241.45$ 110.00$ 351.45$ 275.00$ 121.00$ 396.00$ 273.00$ 115.67$ 388.67$ 385.00$ 192.50$ 577.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7902 5860 180th St 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7903 5880 180th St 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7905 5922 180th St 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7907 18085 Exeter Place 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7908 18075 Exeter Place 18 395.10$ 180.00$ 575.10$ 450.00$ 198.00$ 648.00$ 546.00$ 192.78$ 738.78$ 630.00$ 315.00$ 945.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7909 18065 Exeter Place 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7910 18057 Exeter Ct 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7911 18057 Exeter Ct 18 395.10$ 180.00$ 575.10$ 450.00$ 198.00$ 648.00$ 546.00$ 192.78$ 738.78$ 630.00$ 315.00$ 945.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7912 18037 Exeter Ct 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7916 5867 180th St 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7917 5799 180th St 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7919 5785 180th St 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7923 5578 Upper 182nd St 25 548.75$ 250.00$ 798.75$ 1,500.00$ 275.00$ 1,775.00$ 1,155.00$ 250.61$ 1,405.61$ 875.00$ 437.50$ 1,312.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7924 5730 Upper 182nd St 25 548.75$ 250.00$ 798.75$ 1,500.00$ 275.00$ 1,775.00$ 1,155.00$ 250.61$ 1,405.61$ 875.00$ 437.50$ 1,312.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7925 18195 Facade Ave 27 592.65$ 270.00$ 862.65$ 1,700.00$ 297.00$ 1,997.00$ 1,795.50$ 269.89$ 2,065.39$ 945.00$ 472.50$ 1,417.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7927 5965 Upper 182nd St 21 460.95$ 210.00$ 670.95$ 1,000.00$ 231.00$ 1,231.00$ 745.00$ 212.06$ 957.06$ 735.00$ 367.50$ 1,102.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 200.00$ 1,400.00$ 900.00$ 294.00$ 1,194.00$ 1,132.00$ 566.00$ 1,698.00$
7929 5965 Upper 182nd St 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7930 5965 Upper 182nd St 24 526.80$ 240.00$ 766.80$ 1,500.00$ 264.00$ 1,764.00$ 1,155.00$ 250.61$ 1,405.61$ 840.00$ 420.00$ 1,260.00$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 900.00$ 294.00$ 1,194.00$ 1,132.00$ 566.00$ 1,698.00$
7932 5970 Upper 182nd St 21 460.95$ 210.00$ 670.95$ 1,000.00$ 231.00$ 1,231.00$ 745.00$ 212.06$ 957.06$ 735.00$ 367.50$ 1,102.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 200.00$ 1,400.00$ 900.00$ 294.00$ 1,194.00$ 1,132.00$ 566.00$ 1,698.00$
7935 5970 Upper 182nd St 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7937 5875 Upper 182nd St 27 592.65$ 270.00$ 862.65$ 1,700.00$ 297.00$ 1,997.00$ 1,795.50$ 269.89$ 2,065.39$ 945.00$ 472.50$ 1,417.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7938 5835 Upper 182nd St 20 439.00$ 200.00$ 639.00$ 1,000.00$ 220.00$ 1,220.00$ 745.00$ 212.06$ 957.06$ 700.00$ 350.00$ 1,050.00$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 200.00$ 1,400.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7939 5835 Upper 182nd St 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7940 5775 Upper 182nd St 25 548.75$ 250.00$ 798.75$ 1,500.00$ 275.00$ 1,775.00$ 1,155.00$ 250.61$ 1,405.61$ 875.00$ 437.50$ 1,312.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7941 5775 Upper 182nd St 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7943 18317 Exley Ave 27 592.65$ 270.00$ 862.65$ 1,700.00$ 297.00$ 1,997.00$ 1,795.50$ 269.89$ 2,065.39$ 945.00$ 472.50$ 1,417.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7945 5815 Upper 183rd St 25 548.75$ 250.00$ 798.75$ 1,500.00$ 275.00$ 1,775.00$ 1,155.00$ 250.61$ 1,405.61$ 875.00$ 437.50$ 1,312.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7947 18318 Everton Ct 25 548.75$ 250.00$ 798.75$ 1,500.00$ 275.00$ 1,775.00$ 1,155.00$ 250.61$ 1,405.61$ 875.00$ 437.50$ 1,312.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
7949 18325 Everton Ct 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7955 18427 Everton Cir 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7957 5810 184th St 18 395.10$ 180.00$ 575.10$ 450.00$ 198.00$ 648.00$ 546.00$ 192.78$ 738.78$ 630.00$ 315.00$ 945.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7964 18435 Exodus Ave 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7970 18480 Exodus Cir 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7973 18474 Everest Path 11 241.45$ 110.00$ 351.45$ 275.00$ 198.00$ 473.00$ 273.00$ 115.67$ 388.67$ 385.00$ 192.50$ 577.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 150.00$ 950.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7974 18474 Everest Path 19 417.05$ 190.00$ 607.05$ 475.00$ 209.00$ 684.00$ 546.00$ 192.78$ 738.78$ 665.00$ 332.50$ 997.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7975 18475 Everest Path 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7976 18406 Everest Cir 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7977 18397 Everest Path 15 329.25$ 150.00$ 479.25$ 375.00$ 165.00$ 540.00$ 388.50$ 145.22$ 533.72$ 525.00$ 262.50$ 787.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7978 18397 Everest Path 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7979 18397 Everest Path 11 241.45$ 110.00$ 351.45$ 275.00$ 121.00$ 396.00$ 273.00$ 115.67$ 388.67$ 385.00$ 192.50$ 577.50$ 850.00$ 150.00$ 1,000.00$ 400.00$ 150.00$ 550.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7980 18396 Everest Path 19 417.05$ 190.00$ 607.05$ 475.00$ 209.00$ 684.00$ 546.00$ 192.78$ 738.78$ 665.00$ 332.50$ 997.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7981 18370 Everest Path 12 263.40$ 120.00$ 383.40$ 300.00$ 132.00$ 432.00$ 283.50$ 134.95$ 418.45$ 420.00$ 210.00$ 630.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 150.00$ 550.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
7983 5946 Upper 183rd St 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7984 18366 Exodus Ave 18 395.10$ 180.00$ 575.10$ 450.00$ 198.00$ 648.00$ 546.00$ 192.78$ 738.78$ 630.00$ 315.00$ 945.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
7985 18379 Exodus Ave 15 329.25$ 150.00$ 479.25$ 375.00$ 165.00$ 540.00$ 388.50$ 145.22$ 533.72$ 525.00$ 262.50$ 787.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8459 18847 DUNBURY AVE 8 175.60$ 80.00$ 255.60$ 200.00$ 88.00$ 288.00$ 168.00$ 100.00$ 268.00$ 280.00$ 140.00$ 420.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8460 18847 DUNBURY AVE 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8469 4802 189TH ST W 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
8477 18683 DUNBURY AVE 7 153.65$ 70.00$ 223.65$ 175.00$ 77.00$ 252.00$ 141.75$ 85.00$ 226.75$ 245.00$ 122.50$ 367.50$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8488 4768 186TH ST W 6 131.70$ 60.00$ 191.70$ 150.00$ 66.00$ 216.00$ 141.75$ 85.00$ 226.75$ 210.00$ 105.00$ 315.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8490 4813 186TH ST W 6 131.70$ 60.00$ 191.70$ 150.00$ 66.00$ 216.00$ 141.75$ 85.00$ 226.75$ 210.00$ 105.00$ 315.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8491 4803 186TH ST W 6 131.70$ 60.00$ 191.70$ 150.00$ 66.00$ 216.00$ 141.75$ 85.00$ 226.75$ 210.00$ 105.00$ 315.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8492 4828 186TH ST W 6 131.70$ 60.00$ 191.70$ 150.00$ 66.00$ 216.00$ 141.75$ 85.00$ 226.75$ 210.00$ 105.00$ 315.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8507 18627 DUNBURY AVE 8 175.60$ 80.00$ 255.60$ 200.00$ 88.00$ 288.00$ 168.00$ 100.00$ 268.00$ 280.00$ 140.00$ 420.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8515 18655 DYLAN DR 10 219.50$ 100.00$ 319.50$ 250.00$ 110.00$ 360.00$ 273.00$ 115.67$ 388.67$ 350.00$ 175.00$ 525.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 100.00$ 500.00$ 600.00$ 294.00$ 894.00$ 1,132.00$ 566.00$ 1,698.00$
8546 18890 DYLAN DR 19 417.05$ 190.00$ 607.05$ 475.00$ 209.00$ 684.00$ 546.00$ 192.78$ 738.78$ 665.00$ 332.50$ 997.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
8547 18866 DYLAN DR 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
8548 18879 DYLAN DR 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
8549 18867 DYLAN DR 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 150.00$ 950.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8551 18866 DYLAN DR 12 263.40$ 120.00$ 383.40$ 300.00$ 132.00$ 432.00$ 283.50$ 134.95$ 418.45$ 420.00$ 210.00$ 630.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 150.00$ 550.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8571 4852 187TH ST W 15 329.25$ 150.00$ 479.25$ 375.00$ 165.00$ 540.00$ 388.50$ 145.22$ 533.72$ 525.00$ 262.50$ 787.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 150.00$ 950.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8572 4852 187TH ST W 18 395.10$ 180.00$ 575.10$ 450.00$ 198.00$ 648.00$ 546.00$ 192.78$ 738.78$ 630.00$ 315.00$ 945.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
PRECISION LANDSCAPE AND TREESHADYWOOD TREE EXPERTSCARR'S TREE SERVICE SAVATREE, LLC CASTLE ROCK CONTRACTING & TREE SER.BIRCH TREE CAREKAPOSIA TREE SERVICE
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8579 4828 187TH CT W 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 150.00$ 950.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8581 4824 187TH CT W 15 329.25$ 150.00$ 479.25$ 375.00$ 165.00$ 540.00$ 388.50$ 145.22$ 533.72$ 525.00$ 262.50$ 787.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 150.00$ 950.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8582 4824 187TH CT W 12 263.40$ 120.00$ 383.40$ 300.00$ 132.00$ 432.00$ 283.50$ 134.95$ 418.45$ 420.00$ 210.00$ 630.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 150.00$ 550.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8583 4824 187TH CT W 17 373.15$ 170.00$ 543.15$ 425.00$ 187.00$ 612.00$ 462.00$ 173.50$ 635.50$ 595.00$ 297.50$ 892.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
8588 18883 DUPONT WAY 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
8592 18846 DUPONT WAY 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
8594 18816 DUPONT WAY 15 329.25$ 150.00$ 479.25$ 375.00$ 165.00$ 540.00$ 388.50$ 145.22$ 533.72$ 525.00$ 262.50$ 787.50$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
8611 4838 189TH ST W 14 307.30$ 140.00$ 447.30$ 350.00$ 154.00$ 504.00$ 388.50$ 145.22$ 533.72$ 490.00$ 245.00$ 735.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 150.00$ 950.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
10100 701 CENTENNIAL CIR 29 636.55$ 290.00$ 926.55$ 1,700.00$ 319.00$ 2,019.00$ 2,530.00$ 289.17$ 2,819.17$ 1,015.00$ 507.50$ 1,522.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
10101 703 CENTENNIAL CIR 23 504.85$ 230.00$ 734.85$ 1,000.00$ 253.00$ 1,253.00$ 903.00$ 231.34$ 1,134.34$ 805.00$ 402.50$ 1,207.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 250.00$ 1,450.00$ 900.00$ 294.00$ 1,194.00$ 1,132.00$ 566.00$ 1,698.00$
10103 707 CENTENNIAL CIR 29 636.55$ 290.00$ 926.55$ 1,700.00$ 319.00$ 2,019.00$ 2,530.00$ 289.17$ 2,819.17$ 1,015.00$ 507.50$ 1,522.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
10104 711 CENTENNIAL CIR 24 526.80$ 240.00$ 766.80$ 1,200.00$ 264.00$ 1,464.00$ 1,155.00$ 250.61$ 1,405.61$ 840.00$ 420.00$ 1,260.00$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 900.00$ 294.00$ 1,194.00$ 1,132.00$ 566.00$ 1,698.00$
10105 711 CENTENNIAL CIR 21 460.95$ 210.00$ 670.95$ 1,000.00$ 231.00$ 1,231.00$ 745.00$ 212.06$ 957.06$ 735.00$ 367.50$ 1,102.50$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 900.00$ 294.00$ 1,194.00$ 1,132.00$ 566.00$ 1,698.00$
10106 711 CENTENNIAL CIR 26 570.70$ 260.00$ 830.70$ 1,500.00$ 286.00$ 1,786.00$ 1,795.50$ 269.89$ 2,065.39$ 910.00$ 455.00$ 1,365.00$ 850.00$ 150.00$ 1,000.00$ 1,200.00$ 300.00$ 1,500.00$ 1,100.00$ 294.00$ 1,394.00$ 1,132.00$ 566.00$ 1,698.00$
10107 719 CENTENNIAL CIR 16 351.20$ 160.00$ 511.20$ 400.00$ 176.00$ 576.00$ 462.00$ 173.50$ 635.50$ 560.00$ 280.00$ 840.00$ 850.00$ 150.00$ 1,000.00$ 800.00$ 200.00$ 1,000.00$ 800.00$ 294.00$ 1,094.00$ 1,132.00$ 566.00$ 1,698.00$
10707 5842 180th St W 12 263.40$ 120.00$ 383.40$ 300.00$ 132.00$ 432.00$ 283.50$ 134.95$ 418.45$ 420.00$ 210.00$ 630.00$ 850.00$ 150.00$ 1,000.00$ 400.00$ 150.00$ 550.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
10991 18611 Dunbury Ave.13 285.35$ 130.00$ 415.35$ 325.00$ 143.00$ 468.00$ 283.50$ 134.95$ 418.45$ 455.00$ 227.50$ 682.50$ 850.00$ 150.00$ 1,000.00$ 400.00$ 150.00$ 550.00$ 700.00$ 294.00$ 994.00$ 1,132.00$ 566.00$ 1,698.00$
33,649.35$ 15,330.00$ 52,400.00$ 16,929.00$ 54,066.75$ 16,009.94$ 53,620.00$ 26,810.00$ 78,200.00$ 13,800.00$ 75,200.00$ 18,450.00$ 73,400.00$ 27,048.00$ 104,144.00$ 52,072.00$
TOTAL 48,979.35$ 69,329.00$ 70,076.69$ 80,430.00$ 92,000.00$ 93,650.00$ 100,448.00$ 156,216.00$
Indicates error in original bid document
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STANDARD AGREEMENT FOR CONTRACT SERVICES
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This Agreement (“Agreement”) is made on the 7th day of July, 2025, between the City of Farmington,
Minnesota (hereinafter "city"), whose business address is 430 Third Street, Farmington, Minnesota 55024,
and Carr’s Tree Service, Inc. a Minnesota corporation (hereinafter "Vendor") whose business address is
P.O. Box 250, 307 State Highway 78 North, Ottertail, Minnesota 56571
Preliminary Statement
The purpose of this Agreement is to set forth the terms and conditions for the provision of services by
Vendor for Tree Services hereinafter referred to as the "Work".
The city and Vendor agree as follows:
1. Scope of Work. The Vendor agrees to provide, perform, and complete all the provisions of the
Work in accordance with the specifications, and quote attached as Exhibit A. The terms of this
Contract shall take precedence over any provisions of the Vendor’s proposal and/or general
conditions. All Work under the Municipal Program shall be initiated by a notice to proceed from
the city.
2. Term of Contract. All Work under this Contract shall be provided, performed and/or completed
by _August 22, 2025__.
3. Compensation for Services. City agrees to pay the Vendor based on the fees submitted in the
proposal as full and complete payment for the goods, labor, materials and/or services rendered
pursuant to this Contract.
4. Method of Payment. Payment for tree planting will be made within thirty (30) days of acceptance
of the work. The contractor is required to submit an invoice after satisfactory completion of the
work and each invoice shall include the following: date work was completed, address/facility/area
where work was performed, and any other pertinent information. No travel time will be paid.
Invoices shall be submitted to
accountspayable@FarmingtonMN.gov
City of Farmington
Attn: Finance Department
430 Third Street
Farmington, MN 55024
5. Staffing. The Vendor has designated Jim Corrow to manage the Work. They shall be assisted by
other staff members as necessary to facilitate the completion of the Work in accordance with the
terms established herein. Vendor may not remove or replace the designated staff without the
approval of the city.
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STANDARD AGREEMENT FOR CONTRACT SERVICES
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6. Standard of Care. Vendor shall exercise the same degree of care, skill and diligence in the
performance of its services as is ordinarily exercised by members of the profession under similar
circumstances in Dakota County, Minnesota.
7. Insurance.
The contractor, at its expense, shall procure and maintain in force for the duration of this
Agreement the following minimum insurance coverages:
A. General Liability. The contractor shall maintain Commercial General Liability Insurance in
a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The
policy shall cover liability arising from premises, operations, products-completed
operations, personal injury, advertising injury, and contractually assumed liability. The
city, including its elected and appointed officials, employees, and agents, shall be
endorsed as additional insured.
B. Automobile Liability. If the contractor operates a motor vehicle in performing the
Services under this Agreement, the contractor shall maintain Business Automobile
Liability Insurance, including owned, hired, and non-owned automobiles, with a minimum
combined single liability limit of $1,000,000 per occurrence.
C. Professional (Errors and Omissions) Liability. [Only required for professional services
provided by accountants, attorneys, engineers, consultants, etc.] The contractor shall
maintain Professional Liability Insurance for all claims the contractor may become legally
obligated to pay resulting from any actual or alleged negligent act, error, or omission
related to contractor’s professional services required under this Agreement. The
contractor is required to carry the following minimum limits: $1,000,000 per occurrence;
$2,000,000 annual aggregate. The retroactive or prior acts date of such coverage shall
not be after the effective date of this Agreement and the contractor shall maintain such
insurance for a period of at least two (2) years, following completion of the Services. If
such insurance is discontinued, extended reporting period/tail coverage must be
obtained by the contractor to fulfill this requirement.
D. Workers’ Compensation. The contractor shall maintain Workers’ Compensation
insurance for all its employees in accordance with the statutory requirements of the State
of Minnesota. The contractor shall also carry Employers’ Liability Coverage with minimum
limits as follows:
• $500,000 – Bodily Injury by Disease per employee
• $500,000 – Bodily Injury by Disease aggregate
• $500,000 – Bodily Injury by Accident
E. Additional Insurance Conditions.
1. The contractor shall, prior to commencing the Services, deliver to the city a
Certificate of Insurance as evidence that the above coverage is in full force and
effect.
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STANDARD AGREEMENT FOR CONTRACT SERVICES
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2. The insurance requirements may be met through any combination of primary and
umbrella/excess insurance. The city must be named as an additional insured on
any umbrella/excess policy.
3. The contractor’s policies shall be primary insurance and non-contributory to any
other valid and collectible insurance available to the city with respect to any claim
arising out of the contractor’s performance under this Agreement.
4. The 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’ written notice for
non-payment of premium.
8. Indemnification. Vendor will defend and indemnify city, its officers, agents, and employees and
hold them harmless from and against all judgments, claims, damages, costs and expenses,
including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be
liable resulting from any breach of this Contract by Vendor, its agents, contractors and employees,
or any negligent or intentional act or omission performed, taken or not performed or taken by
Vendor, its agents, contractors and employees, relative to this Contract. The city will indemnify
and hold Vendor harmless from and against any loss for injuries or damages arising out of the
negligent acts of the city, its officers, agents, or employees.
9. Termination. This contract may be terminated by either party by thirty (30) days' written notice
delivered to the other party at the addresses written above. Upon termination under this
provision if there is no fault of the Vendor, the Vendor shall be paid for services rendered until
the effective date of termination.
10. Independent Contractor. At all times and for all purposes herein, the Vendor is an independent
contractor and not an employee of the city. No statement herein shall be construed so as to find
the Vendor an employee of the city.
11. Non-Discrimination. During the performance of this Contract, the Vendor shall not discriminate
against any employee or applicants for employment because of race, color, creed, religion,
national origin, sex, marital status, status with regard to public assistance, familial status,
disability, sexual orientation, or age. The Vendor shall post in places available to employees and
applicants for employment, notices setting forth the provision of this non-discrimination clause
and stating that all qualified applicants will receive consideration for employment. The Vendor
further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes
363A.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of
1990, as amended.
12. Subcontract or Assignment. Vendor shall not subcontract any part of the services to be provided
under this Contract; nor may Vendor assign this Contract, or any interest arising herein, without
the prior written consent of the city.
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STANDARD AGREEMENT FOR CONTRACT SERVICES
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13. Services Not Provided For. No claim for services furnished by Vendor not specifically provided
for in Exhibit A shall be honored by the city.
14. Compliance with Laws and Regulations. Vendor is responsible for knowing of and abiding by all
statutes, ordinances, rules and regulations pertaining to the type of services provided pursuant
to this Contract; including, as applicable, the Minnesota Data Practices Act, Minnesota Statutes
Section 13, as amended, and Minnesota Rules promulgated pursuant to Chapter 13.
15. Audits and Data Practices. The books, records, documents, and accounting procedures and
practices of the Vendor or other parties relevant to this agreement are subject to examination by
the city and either Legislative Auditor or the State Auditor for a period of six years after the
effective date of this contract. This Contract is subject to the Minnesota Government Data
Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined
in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used,
maintained, or disseminated by Vendor in performing any of the functions of the city during
performance of this Contract is subject to the requirements of the Data Practice Act and Vendor
shall comply with those requirements as if it were a government entity. All subcontracts entered
into by Vendor in relation to this Contract shall contain similar Data Practices Act compliance
language.
16. Conflicts. No salaried officer or employee of the city and no member of the Council, or
Commission, or Board of the city shall have a financial interest, direct or indirect, in this contract.
The violation of this provision renders the contract void. Any federal regulations and applicable
state statutes shall not be violated.
17. Utilities. The contractor shall be obligated to protect all public and private utilities, streets, or
roadways, whether occupying a street or public or private property. If such utilities, streets or
roadways are damaged by reason of the contractor’s performance of the services required under
the contract, the contractor shall repair or replace the same, or failing to do so promptly, the city
shall cause repairs or replacement to be made and the cost of doing so shall be deducted from
payment to be made to the contractor for tree services.
18. Damages. In the event of a breach of this Contract by the city, Vendor shall not be entitled to
recover punitive, special or consequential damages or damages for loss of business.
19. Governing Law. This Contract shall be controlled by the laws of the State of Minnesota.
20. Severability. The provisions of this Contract are severable. If any portion hereof is, for any
reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not
affect the remaining provisions of this Contract.
21. Entire Agreement. The entire agreement of the parties is contained herein. This Contract
supersedes all oral agreements and negotiations between the parties relating to the subject
matter hereof as well as any previous agreements presently in effect between the parties relating
to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the
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STANDARD AGREEMENT FOR CONTRACT SERVICES
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provisions of this Contract shall be valid only when expressed in writing and duly signed by the
parties, unless otherwise provided herein.
Executed as of the day and year first written above. The Work will be completed on or before
August 22, 2025, and ready for final payment. Final payment will be made thirty (30) days after
final acceptance of the Work by the city.
CITY OF FARMINGTON
__________________________________
Joshua Hoyt, Mayor
__________________________________
Shirley R Buecksler, City Clerk
CARR’S TREE SERVICE, INC.
By: ________________________________
Its: _______________________________
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STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
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I. SPECIFICATIONS
A. TREE REMOVAL: Each tree shall be removed in a safe manner using (American National
Standards Institute) Z133 Safety Standards. The trees to be removed will be plainly marked by
the city with a pink “X” on the bark. All trees to be removed are on public property.
1. Trees shall be cut off within 4” of ground-level and all tree parts removed and disposed .
2. Work shall occur within the public street as much as possible to minimize site damage in
the public right-of-way and adjacent private property.
3. All trimmings, stumps, roots, logs, sod, or any other form of debris resulting from any work
shall be cleaned up and removed from the site by the Contractor in compliance with state
and local regulations at the end of each shift. All Elm, Ash, Red Oak, or Pin Oak shall be
delivered promptly to a licensed compost facility, in compliance with state and local
regulations.
4. Any damaged branches on surrounding trees and vegetation must be pruned and removed
according to ANSI A300 Pruning Standards .
5. The city will not allow the preparing of firewood; i.e. cut to short lengths or removing the
bark.
B. STUMP REMOVAL: The stumps to be removed will be plainly marked by the city with a white
“X” on the trunks. If buried infrastructure is encountered and measures taken to avoid them
involve deviation from these standards, the Contractor will be responsible for notifying the
Natural Resources Specialist or representative.
1. All labor, equipment, and materials necessary for removal, disposal, and backfilling of
stumps and all surface roots shall be provided by the Contractor and included in quoted
prices.
2. The grinding will include the stump, root flare and large surface roots to a minimum depth
of eight (8) inches below grade. It shall further include removing all debris from ground
stumps, backfilling the hole with a 50/50 blend of compost/black dirt. Dirt must be added
to fill removal site and provide substrate for grass seed, at a quantity to exceed grade by
three (3) to four (4) inches to accommodate settling of the site. Perennial rye/bluegrass
grass seed with mulch pellets must be applied to the grinding site (at rate specified by seed
package for seeding new lawns), lightly raked, and tamped down into soil. Submit materials
before start of the project. If turf or landscaping adjacent to stump is damaged it shall be
restored to its original condition. Holes are not to be left open overnight. Backfill shall not
be lower than the existing lawn grade following thirty (30) calendar days of completed
work. Any work deemed by the city to be incomplete or of poor quality after work
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STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
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completion will necessitate the contractor to revisit and finish, clean, or restore the site to
satisfactory condition.
3. Large surface roots beyond the main stump are to be removed to a depth of eight (8)
inches below grade.
4. All brush, stumps, roots, logs, sod, or any other form of debris resulting from any work shall
be cleaned up and removed from the site by the Contractor in compliance with state and
local regulations, disposal costs included in quoted prices. Area surrounding stump will be
raked, cleaned, and restored to satisfactory condition following completion of stump
removal.
5. Any holes left in removal work areas shall be filled with soil equal to or better than
adjacent areas. No brush, chips, stumps, etc. shall be used as filler in such holes.
6. Any delays in work, deviations in the previously agreed upon schedule and renotification of
residents shall be reported in writing to the Natural Resource Specialist or representative
as soon as possible.
II.
A. EQUIPMENT STANDARDS: The Contractor shall furnish all necessary machinery, tools, labor, and
material required, and shall fully complete the work in accordance with the Project Description.
All equipment used for this project shall be of appropriate size for the work, in proper
mechanical condition, and meet all required safety inspections.
B. UTILITIES: The Contractor is responsible for all utility locates (notifying Gopher State One-Call).
C. SAFETY STANDARDS: The Contractor must use work methods, safety procedures and personal
protective equipment conforming to all ANSI A300, Z133 and OSHA standards in performing the
work under this contract. Precautions shall be exercised at all times for the protection of
persons (including employees) and property. The safety provision of applicable laws shall be
observed.
D. TRAFFIC CONTROL DEVICES: The Contractor shall furnish, install, maintain, and remove all
traffic control devices required to provide safe movement of vehicular, pedestrian, and bicycle
traffic through the project during the life of the contract from the start of operations to the final
completion thereof. All temporary traffic control required under this contract shall be
performed as incidental work for which no direct payment will be made.
All traffic control devices shall conform and be installed in accordance to the "Minnesota
Manual on Uniform Traffic Control Devices" (MN MUTCD) and Part 6, "Field Manual for
Temporary Traffic Control Zone Layouts," the "Guide to Establishing Speed Limits in Highway
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STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
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Work Zones," the Minnesota Flagging Handbook, the provisions of MnDOT 1404 and 1710, the
Minnesota Standard Signs Manual, the Traffic Engineering Manual, and these special provisions.
E. PROTECTION AND RESTORATION OF PROPERTY: The Contractor shall be responsible for the
preservation of, and shall use every precaution to prevent damage to all trees, plants, lawns,
fences, culverts, bridges, pavement, driveways, sidewalks, etc.; all water, sewer, and gas lines;
all conduits; all overhead pole lines or appurtenances thereof; and all other public or private
along or adjacent to the work. The work performed is to be at the Contractor’s risk and they
assume the responsibility for all damages to the work or to the entire project until its
completion and acceptance. The Contractor shall repair all sod damage resulting from the Work
by placement of premium top soil, lawn seed, and fertilizer, and covering with MnDOT category
1 erosion control blanket.
F. PROPERTY ACCESS AND NOTIFICATION: The contractor shall not enter private property without
having previously obtained permission from the property owner. Contractor shall be responsible
for informing Farmington residents of tree removals adjacent to the tree marked for removal.
Only residents with marked trees in front of their residence need to be notified. Notice of
removal must be in the form of a door hanger or post card stating the week of expected
removal and contractor representative contact information. Notice can be given no more than
one (1) week in advance. Renotification will be required if schedule is altered.
G. METHOD OF MEASURE: Each tree shall be measured and categorized by the city and may be
verified at any time by the Contractor. The tree’s diameter shall be diameter of the tree at
breast height 4.5 feet above the ground line. The diameter of the tree shall be referred to as
diameter at breast height (DBH). In the case of sloping ground, the point of measure of the
circumference shall be at an average distance of 4.5 feet above ground line. If the tree is forked
at a point no less than 4.5 feet above the ground, the diameter will be measured individually.
Stumps will be measured across the diameter of the surface of the stump to include root flares
at ground level.
H. INSPECTION: The Contractor will be expected to perform all work in such a manner as to
achieve the best possible results for the desired outcome(s). The city reserves the right to base
payment on performance after doing an on-site inspection after work is complete. If the
Contractor does not perform the work in a satisfactory manner the city may require it to be
done over at the Contractor’s cost. The city also reserves the right to assess damages or require
restoration, at the Contractor’s cost.
I. PAYMENT: Payment for tree removals will be made within thirty (30) days of acceptance of the
work. Invoices will include the address, quantities and the unit price(s) quoted. Payment of each
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STANDARDS AND SPECIFICATONS
FOR CONTRACTED TREE SERVICES
Page 4 of 4
invoice shall be made after satisfactory completion and acceptance of the work. Calculation of
payment shall only include the quoted tree unit price.
J. LABOR: Only competent labor shall be employed on this work. Wherever mechanical work is
required, it shall be performed by skilled labor. The superintendent or other person directing
the work shall be competent and reliable. The superintendent shall be authorized to accept and
act upon all directives issued by the Natural Resource Specialist or representative. Please see
attachments for qualifications.
K. HOURS OF OPERATION: Allowable working hours within the City of Farmington are weekdays
from 7:00 a.m. to 7:00 p.m., except for emergency situations. It shall be the Contractor’s
responsibility to maintain all stages of work in a safe and suitable condition at all times,
including nights, weekends, and holidays. The Contractor shall make observations of his work
during such periods as are necessary to ensure proper performance thereof. The Contractor
shall designate a superintendent who shall have charge of the job and to whom the city shall
give directions. Forty-eight (48) hours advance notice shall be required for weekend work, with
written authorization from Natural Resource Specialist or representative.
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REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kim Sommerland, Finance Director
Department: Finance
Subject: 2024 Annual Comprehensive Financial Report and Related Audit Reports
Meeting: Regular Council - Jul 07 2025
INTRODUCTION:
As required by Minnesota law, the City's financial records are audited by an independent public
accounting firm each year. The goal of an independent audit is to provide reasonable assurance
that and financial The presented. accurately analyses statements financial City's the are
management reports done in conjunction with the annual audit function as early warning system for
identifying potential future financial issues.
Upon completion of the audit, the auditors deliver their opinion, discuss their management report
with the City Council, and the City releases an Annual Comprehensive Financial Report (ACFR).
This report aims to furnish the City Council, Staff, citizens, investors, and other stakeholders with
valuable insights to the City's operations and financial position. Annual audit results must be
provided to the Minnesota Office of the State Auditor by the end of June each year.
DISCUSSION:
The City of Farmington assumes full responsibility for the completeness, accuracy, and reliability of
the information presented in the attached ACFR. To provide a reasonable basis for making these
representations, is that framework internal has a established management comprehensive
designed both to protect the government’s assets from loss, theft or misuse, and to compile
sufficient, reliable information for the preparation of the City’s financial statements in conformity with
Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not
outweigh their benefits, the City’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, that it is presented in a manner designed to fairly set
forth the financial position and results of operations of the City of Farmington 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 City's financial records have been audited by LB Carlson, LLP. Based upon their audit, they
concluded there was a reasonable basis for rendering an unmodified (‘clean’) opinion that the City
of Farmington’s financial statements for the fiscal year ended December 31, 2024 are fairly
presented in conformity with GAAP. An unmodified opinion is issued when the auditor assesses
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that the financial statements are true and fair, with no material misstatements. A summary of the
2024 audit, including the auditor’s opinion, can be found in the attached Management Report. The
report also addresses resolution of a finding from the prior year.
In addition to the standard annual audit, the City was required to have a separate examination to
ensure compliance with the requirements of the Coronavirus State and Local Recovery Funds’
program. The related reported has been provided for your review.
Bill Lauer, CPA of LB Carlson, will review the 2024 audit, provide a financial overview of the City's
2024 results, and respond to any questions of the City Council regarding the same.
ACTION REQUESTED:
Staff recommends that the City Council accept the audited financial statements and independent
auditor's reports for the fiscal year ended December 31, 2024.
ATTACHMENTS:
2024 ACFR
2024 Management Report
2024 Special Purpose Audit Reports
2024 ACEE Opinion
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2024
Annual Comprehensive
Financial Report
For the year ended December 31, 2024
430 Third Street
Farmington, Minnesota 55024
www.farmingtonmn.gov
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CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
Annual Comprehensive
Financial Report
for the Year Ended
December 31, 2024
Lynn Gorski
City Administrator
Report Prepared by
Finance Department
Member of Government Finance Officers Association
of the United States and Canada
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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 72–81
CITY OF FARMINGTON
Table of Contents
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Page
SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds 82
Combining Balance Sheet 83
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 84
Nonmajor Special Revenue Funds 85
Combining Balance Sheet 86–87
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 88–89
Nonmajor Capital Projects Funds 90
Combining Balance Sheet 91–92
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 93–96
Nonmajor Debt Service Fund 97
General Debt Service
Combining Balance Sheet by Account 98
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
by Account 99–100
Budgetary Comparison Schedules 101
Utility Trunk Capital Projects Fund 102
Pavement Management Capital Projects Fund 103
Closed Bond Debt Service Fund 104
Nonmajor Special Revenue Funds
Economic Development 105
Special Taxing Areas 106
Police Donations and Forfeitures 107
Park Improvement 108
Arena 109
Nonmajor Capital Projects Funds
Cable Communications 110
Capital Equipment 111
Recreation Facilities 112
Street Improvements 113
Trail Improvements 114
Municipal Buildings 115
Capital Projects Reserve 116
Emerald Ash Borer 117
Nonmajor Debt Service Fund
General Debt Service 118
Internal Service Funds 119
Combining Statement of Net Position 120
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 121
Combining Statement of Cash Flows 122
CITY OF FARMINGTON
Table of Contents (continued)
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Page
STATISTICAL SECTION (UNAUDITED)
STATISTICAL TABLES (UNAUDITED)123
Net Position by Component 124–125
Changes in Net Position 126–129
Fund Balances of Governmental Funds 130–131
Changes in Fund Balances of Governmental Funds 132–133
Tax Capacity Value and Estimated Actual Value of Taxable Property 134–135
Property Tax Rates 136
Principal Property Taxpayers 137
Property Tax Levies and Collections 138
Ratios of Outstanding Debt by Type 139–140
Ratios of General Bonded Debt Outstanding 141–142
Direct and Overlapping Governmental Activities Debt 143
Legal Debt Margin Information 144–145
Pledged Revenue Coverage 146
Demographic and Economic Statistics 147
Principal Employers 148
Full-Time Equivalent City Government Employees by Function 149–150
Operating Indicators by Function 151–152
Capital Asset Statistics by Function/Program 153–154
CITY OF FARMINGTON
Table of Contents (continued)
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INTRODUCTORY SECTION
TAB
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June 24, 2025
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, 2024, 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 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 LB Carlson, 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, 2024, 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, 2024, 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.
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Profile of the Government
The City of Farmington is a suburban community located approximately 30 miles southeast of downtown
Minneapolis in Dakota County. Established in 1872 as a railroad center serving the surrounding
agricultural area, Farmington has steadily evolved into a vibrant residential community. According to the
2010 Census, the City’s population was 21,086; today, it is estimated at 23,895. The City’s geographic
footprint has also expanded, most recently with the annexation of a 178.58-acre parcel in 2024, bringing
the total area to 16.03 square miles. This growth is driven by several factors, including relatively affordable
homeownership compared to communities to the north and west, the appeal of locating further from the
metropolitan core, and the City’s authentic hometown feel, supported by its discernable traditional
downtown and strong sense of community.
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 setting policy and providing leadership through actions such as passing ordinances,
adopting the budget, appointing members to boards and commissions, and hiring the city administrator,
department heads, and other city employees. The city administrator is charged with implementing the
policies and ordinances established by the City Council, overseeing the daily operations of city
government, and managing department heads and staff.
The City delivers a comprehensive array of municipal services to support both residents and businesses.
These include essential services such as police and fire protection, ambulance service, and the upkeep of
roads, highways, and other vital infrastructure. In addition, the City fosters community well-being through
recreational and cultural programs. It manages several enterprise funds, including those for municipal
liquor operations, water, sewer, storm water, and street lighting. The City also provides support for key
community amenities and initiatives, such as the senior center, ice arena, recreation programs, and a
variety of local events and projects that enhance quality of life.
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 nearly 800 people. The Federal Aviation Administration and Installed
Building Solutions employ 368 and 284 people, respectively.
During 2024, a number of new businesses opened or expanded including the start of a large expansion of
an existing building in the Industrial Park, a new day care, and others. 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 also continues to grow. In 2023, the City issued new construction permits
for 87 new single-family units, 61 townhome units, and a 74-unit market rate apartment building, with a
total building valuation of $43,721,566. In 2024, the City issued a combined total of 203 permits for new
single-family and townhomes, plus a permit for a new 168-unit apartment building. The total valuation of
all residential permits in 2024 was $54,545,614 and the total valuation of all commercial permits (including
the apartment building) was $38,089,222.
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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 for the next 1–2 years. The City Council established four priorities:
• Business Growth
• Community Engagement
• Infrastructure Support
• Employee Engagement
In alignment of established objectives, the City has enhanced its procedures for new development to
create a more developer-friendly environment for those considering investment in the City. During the
annual budget process, the City also committed substantial resources to infrastructure priorities—
including street and trail maintenance—and continued its proactive approach to managing the impacts of
emerald ash borer (EAB). These actions reflect the City Council’s ongoing dedication to community well-
being and quality of life.
In 2024, the City advanced its infrastructure planning efforts through a detailed review and update of
capital improvement plans, with particular attention to streets, trails, and essential equipment. These
updates focused on aligning near-term priorities with the City Council’s ongoing commitment to
maintaining and improving critical infrastructure. The mill and overlay program, which began in 2019,
remained a key part of the City’s street maintenance strategy, complemented by targeted street
reconstruction projects. In support of long-term fiscal sustainability, the City also developed a
comprehensive financial plan encompassing all municipal funds, providing a clearer, more coordinated
approach to future investments and resource allocation.
The City’s 2040 Comprehensive Plan was completed in 2019. Late in 2022, it was decided to amend the
2040 Comprehensive Plan to update the vision of the City that will guide the next stage of planning and
development, and to secure additional mixed-use areas including commercial and industrial areas. One of
the City’s primary objectives is to increase mixed-use commercial and industrial zones strategically
throughout the community, focusing on transportation corridors, key intersections, and areas served
and/or easily served with infrastructure. This initiative is crucial for diversifying our tax base, fostering
economic resilience, and creating a vibrant, dynamic community. By incorporating mixed-use
development, we aim to provide adequate areas for existing businesses to expand, attract new
businesses, enhance employment opportunities, and cultivate a thriving local economy that benefits all
residents for years to come. The ongoing work on our visioning plan and the update to the comprehensive
plan marks a significant milestone for our community. Engaging residents in defining the City’s vision
ensures that their voices are heard, and that the future development aligns with our shared goals and
aspirations. Additional information about the update of the Comprehensive Plan may be found on the
City’s website, www.farmingtonmn.gov.
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Major Initiatives
The City continues to place a high priority on planning for the community’s needs as growth and expansion
issues impact city operations. The availability of land, infrastructure, and services continue to drive the
community development focus of the City.
Investments in the community by the City have a positive impact on the net worth of property owners,
contributing to the overall value growth. The City has prioritized the development of various services,
facilities, and infrastructure, strengthening its financial foundation for residents and stakeholders.
Sustaining high-quality services is instrumental in fostering favorable appreciation of property values
within the community. Significant investments in infrastructure have prolonged the lifespan of existing
roadways and enhanced the quality and safety of others. Recognizing that homes and businesses are
primary assets in citizens' portfolios, the City remains committed to further enhancing their value. The
City observes a continuous increase in average residential home values, reflecting the effectiveness of
these efforts.
The City is committed to advancing its community through ongoing development and revitalization
efforts. Leveraging the strength of both its community and organizational resources, the City aims to
foster increased opportunities for its constituents. Regular review and updates of city ordinances facilitate
new business opportunities. In 2024, the City Council approved the Third and Fourth Additions of
Vermillion Commons, encompassing 67 townhome and 67 single-family lots, and the Meadowview
Preserve Final Plat for 63 single-family lots. Furthermore, many other planning and zoning actions were
taken to support future and proposed development initiatives that involved adoption of two Alternative
Urban Areawide Reviews (AUARs) encompassing over 600 acres, approval of site plans, conditional use
permits, rezoning/comprehensive plan amendment to support a data center master plan, variances, and
code amendments.
Farmington Municipal Liquor Operations have shown remarkable progress over recent years, a trend that
persisted through 2024. Liquor sales rose by nearly $200,000 compared to 2023, with reported operating
income reaching $630,000. These profits have greatly enriched the community, with the liquor operation
contributing more than $1.9 million since 2005 to various city departments and community organizations
over the past decade.
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.
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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, 2023. This is the 15th 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.
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 employees for their meticulousness and adept management of the budget over
the past year. Credit also must be given to the Mayor and the City Council for their steadfast support and
proactive measures in fortifying the City's financial resilience and fostering long-term financial planning.
Respectively Submitted,
_____
Lynn Gorski, City Administrator
Kim Sommerland, Finance Director
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Term Expires
Joshua Hoyt Mayor December 31, 2024
Holly Bernatz Councilmember December 31, 2026
Katie Bernhjelm Councilmember December 31, 2024
Nick Lien Councilmember December 31, 2026
Steve Wilson Councilmember December 31, 2024
Lynn Gorski City Administrator
Matthew Price Fire Chief
Gary Rutherford Police Chief
Kim Sommerland Finance Director
Deanna Kuennen Community and Economic Development Director
Kellee Omlid Parks and Recreation Director
John Powell Public Works Director/City Engineer
EXECUTIVE STAFF
ELECTED OFFICIALS
CITY OF FARMINGTON
Elected Officials and Executive Staff
December 31, 2024
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FINANCIAL SECTION
TAB
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Farmington, Minnesota
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
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, 2024, 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, 202 4, 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 the 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 for 12 months beyond the financial statements date, including any currently known
information that may raise substantial doubt shortly thereafter.
(continued)
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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 judgment 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)
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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 accompanying combining and individual fund
statements and schedules, as listed in the table of contents, are presented for the 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 GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2025,
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.
Respectfully submitted,
LB CARLSON, LLP
Minneapolis, Minnesota
June 24, 2025
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CITY OF FARMINGTON
Management’s Discussion and Analysis
Year Ended December 31, 2024
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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, 2024. Management’s discussion and analysis (MD&A) 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 $149,658,117 (net position) at the close of the most recent fiscal year. Of this
amount, $45,728,567 (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 $12,383,056 from fiscal 2024 activity, including an
increase of $7,142,568 attributable to governmental activities, and an increase of $5,240,488
attributable to business-type activities.
• The City’s outstanding debt, including general obligation bonds and lease liabilities, increased by
$1,570,722, or 13 percent, during the fiscal year, as new improvement and tax abatement bonds
issued exceeded scheduled debt principal payments during the year.
• The City’s governmental funds reported combined ending fund balances of $37,027,237 at
year-end, an increase of $8,675,463 from fiscal 2024 activity. Approximately 83 percent of this
total, or $30,718,810, is available for use within the City’s constraints and policies.
• At the end of the current fiscal year, the unassigned fund balance of the General Fund was
$11,268,652, equal to 57 percent of 2025 General Fund budgeted expenditures and transfers out.
OVERVIEW OF THE FINANCIAL STATEMENTS
This MD&A 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 basic 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.
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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.
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 numerous 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 six individual major governmental funds. They are as follows:
• General Fund
• Program Aid and Grants Special Revenue Fund
• Private Capital Projects Fund
• Utility Trunk Capital Projects Fund
• Pavement Management Capital Projects Fund
• Closed Bond Debt Service Fund
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Data from the other governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in this report.
The City adopts annual appropriated budgets for its General Fund, most special revenue funds, debt
service funds, 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 within 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. The
City began the process of transitioning its solid waste operations to a private contractor beginning in
fiscal 2022, and this fund was closed in the current year. Proprietary funds provide the same type of
information as the government-wide financial statements, only in more detail. The proprietary funds
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 combining and individual fund statements
and schedules (presented as supplementary information) referred to earlier in connection with nonmajor
governmental funds, internal service funds, budgetary comparison schedules, 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, which is the third and final section of the report.
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GOVERNMENT-WIDE FINANCIAL ANALYSIS
An analysis of the City’s financial position begins with a review of the government-wide 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 $149,658,117 on
December 31, 2024.
City of Farmington’s Net Position
2024 2023 2024 2023 2024 2023
Current and other assets 50,923,092$ 40,953,662$ 25,200,815$ 25,002,090$ 76,123,907$ 65,955,752$
Capital assets, net 51,760,419 49,003,064 51,418,896 49,830,438 103,179,315 98,833,502
Total assets 102,683,511$ 89,956,726$ 76,619,711$ 74,832,528$ 179,303,222$ 164,789,254$
Deferred outflows of resources 6,464,504$ 8,239,235$ 51,512$ 102,195$ 6,516,016$ 8,341,430$
Current liabilities 5,052,007$ 5,105,522$ 984,340$ 684,958$ 6,036,347$ 5,790,480$
Long-term liabilities 19,466,700 20,014,829 1,526,519 1,825,000 20,993,219 21,839,829
Total liabilities 24,518,707$ 25,120,351$ 2,510,859$ 2,509,958$ 27,029,566$ 27,630,309$
Deferred inflows of resources 8,961,123$ 8,099,929$ 170,432$ 125,385$ 9,131,555$ 8,225,314$
Net position
Net investment in capital assets 41,670,431$ 39,137,210$ 50,255,385$ 48,486,110$ 91,925,816$ 87,623,320$
Restricted 9,542,246 9,132,767 2,461,488 2,461,488 12,003,734 11,594,255
Unrestricted 24,455,508 16,705,704 21,273,059 21,351,782 45,728,567 38,057,486
Total net position 75,668,185$ 64,975,681$ 73,989,932$ 72,299,380$ 149,658,117$ 137,275,061$
Governmental Activities Business-Type Activities Total
The largest portion of the City’s net position, $91,925,816, or 61 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 $12,003,734 comprised 8 percent of net position at the close of the current fiscal
year. These assets are subject to external restrictions on how they may be used.
The balance of unrestricted net position, $45,728,567, or approximately 31 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.
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CHANGE IN NET POSITION
The following table provides a condensed version of the Statement of Activities for the year ended
December 31, 2024, with comparative totals for the year ended December 31, 2023. The City’s total net
position increased by $12,383,056, or 9 percent, during the current fiscal year.
City of Farmington’s Change in Net Position
2024 2023 2024 2023 2024 2023
Revenues
Charges for services 5,856,007$ 3,425,186$ 14,287,985$ 13,908,710$ 20,143,992$ 17,333,896$
Operating grants and contributions 1,191,276 1,924,255 16,485 10,822 1,207,761 1,935,077
Capital grants and contributions 3,165,413 1,002,806 2,573,529 – 5,738,942 1,002,806
Property taxes 16,210,861 15,284,709 – – 16,210,861 15,284,709
Franchise taxes 179,503 201,431 – – 179,503 201,431
Unrestricted grants 1,117,153 944,364 – – 1,117,153 944,364
Investment earnings (charges)1,492,084 1,407,087 833,016 913,579 2,325,100 2,320,666
Gain on sale of capital assets 88,177 136,368 41,040 – 129,217 136,368
Total revenues 29,300,474 24,326,206 17,752,055 14,833,111 47,052,529 39,159,317
Expenses
General government 5,759,500 5,200,453 – – 5,759,500 5,200,453
Public safety 8,592,752 8,712,115 – – 8,592,752 8,712,115
Public works 4,625,171 3,806,386 – – 4,625,171 3,806,386
Parks and recreation 2,715,378 2,583,554 – – 2,715,378 2,583,554
Economic development 137,901 177,927 – – 137,901 177,927
Interest and fiscal charges 327,204 239,992 – – 327,204 239,992
Liquor operations – – 6,359,443 6,256,081 6,359,443 6,256,081
Sewer – – 3,241,040 2,872,236 3,241,040 2,872,236
Solid waste – – – 76,270 – 76,270
Storm water – – 680,636 725,039 680,636 725,039
Water – – 2,032,420 1,889,215 2,032,420 1,889,215
Street light – – 198,028 214,757 198,028 214,757
Total expenses 22,157,906 20,720,427 12,511,567 12,033,598 34,669,473 32,754,025
Change in net position before transfers 7,142,568 3,605,779 5,240,488 2,799,513 12,383,056 6,405,292
Transfers 3,549,936 (418,547) (3,549,936) 418,547 – –
Change in net position 10,692,504 3,187,232 1,690,552 3,218,060 12,383,056 6,405,292
Net position – beginning 64,975,681 61,788,449 72,299,380 149,658,117 137,275,061 211,446,566
Net position – ending 75,668,185$ 64,975,681$ 73,989,932$ 72,299,380$ 149,658,117$ 137,275,061$
Governmental Activities Business-Type Activities Total
Governmental Activities – Governmental activities net position increased by $10,692,504. Increases in
building permits, development fees and capital contributions, state funding utilized for street
improvements and maintenance, and the approved property tax levy contributed to a $4,974,268 increase
in total governmental activities revenues compared to the previous year. Governmental activities expenses
were $1,437,479 higher than the previous year, with the increase mainly in the general government and
public works functions. Increased grant spending, contractual salary increases, and inflationary increases
to employee benefits, utilities, supplies, and other purchased services contributed to the overall increase.
Business-Type Activities – Business-type activities net position increased by $1,690,552. Increases in
liquor operations gross sales, utility rate increases, and capital contributions from developers and
governmental activities contributed to a $2,918,944 increase in total business-type activities revenues
compared to the previous year. Major repairs to one of the City’s wells and higher sewer disposal charges
were the primary factors in a $477,969 increase in total business-type activities expenses. The City
completed transitioning its solid waste and recycling collection operation to a private contractor in fiscal
2023, and there was no activity reported in this function for fiscal 2024 as the related enterprise fund was
closed with a transfer during the year.
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GOVERNMENTAL ACTIVITIES
Revenues – The following chart illustrates the City’s revenues by source for its governmental activities:
Revenues by Source – Governmental Activities
Charges for
Services
20%
Property Taxes
55%
Franchise Taxes
1%
Operating Grants
and Contributions
4%
Capital Grants and
Contributions
11%
Unrestricted Grants
4%
Other
5%
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
General
Government Public Safety Public Works Parks and
Recreation
Economic
Development
Interest and
Fiscal Charges
Program Revenues $1,787,253 $1,382,530 $5,689,731 $1,264,633 $88,549 $–
Expenses $5,759,500 $8,592,752 $4,625,171 $2,715,378 $137,901 $327,204
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
$7,500,000
$8,000,000
$8,500,000
$9,000,000
Page 214 of 417
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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
Charges for
Services
80%
Capital Grants and
Contributions
15%
Other
5%
Expenses – Below is a graph showing the City’s expenses and program revenues, excluding transfers, for
its business-type activities:
Expenses and Program Revenues – Business-Type Activities
Liquor
Operations Sewer Storm Water Water Street Light
Program Revenues $6,962,372 $4,309,275 $2,202,022 $3,152,599 $251,731
Expenses $6,359,443 $3,241,040 $680,636 $2,032,420 $198,028
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
$7,500,000
Page 215 of 417
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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 $37,027,237, reflecting a 31 percent increase of $8,675,463 from 2023 activity. The increase
is mainly attributable to development fees for park and utility infrastructure improvement, unspent bond
proceeds, transfers from the City’s enterprise funds, and positive operating results in the General Fund.
Committed, assigned, and unassigned fund balances, which are available for spending at the City’s
discretion, were a combined $30,718,810 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 for prepaids ($2,249); or restricted for: 1) Local affordable housing ($88,549), 2) economic
development ($574,408), 3) public safety programs ($896,376), 4) park or recreational capital
improvements ($2,593,653), 5) future cable communication expenditures ($221,224), or 6) to pay debt
service ($1,931,968).
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 20 24, the
unassigned fund balance of the General Fund was $11,268,652. As a measure of the General Fund’s
liquidity, it may be useful to compare the fund balance to total fund expenditures. The
2024 unassigned fund balance represents approximately 57 percent of total 2025 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 steadily from 21 percent as of December 31, 2011 to
57 percent as of December 31, 2024. 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 community growth and tight budgetary control of expenditures, which have
contributed to the strengthening of the General Fund’s balance over that period.
In recent years, the City Council also amended the City’s fund balance policy to establish a target
General Fund balance of 40–50 percent of the subsequent year’s budgeted expenditures and transfers
out. This level is intended to provide adequate funding to sustain operations until the receipt of
semiannual tax revenues in June/July. As of December 31, 2024, the City’s General Fund balance
meets the minimum fund balance guideline.
Total fund balances increased by $2,370,713 in the General Fund during the 2024 fiscal year. Higher
than anticipated revenues from building permits, intergovernmental sources, charges for development
related services, and investment earnings; along with expenditures being held under budget in total,
contributed to this increase.
Program Aid and Grants Special Revenue Fund – The decrease in fund balance of $220,907 was
mainly due to a transfer of $215,000 to fund public safety capital equipment purchased in 2024. The
City utilized $1,106,404 of available federal funding for various projects during the year.
Page 216 of 417
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Private Capital Projects Fund – There were no significant projects in this fund during 2024. The
increase in fund balance of $105,548 was due to allocated investment earnings.
Utility Trunk Capital Projects Fund – The increase of $2,398,116 in fund balance was due to
revenues from developer trunk fees and allocated investment earnings exceeding expenditures for
fiscal 2024.
Pavement Management Capital Projects Fund – The increase of $280,390 in fund balance was due
to investment income and transfers in exceeding expenditures for fiscal 2024.
Closed Bond Debt Service Fund – The City established this fund to account for accumulated
resources related to bond issues that fully matured or were called by the City using internal resources
in prior years. Fund balance decreased by $78,939, mainly due to approved transfers, bringing fund
balance to $1,519,085 at year-end, which is assigned for future debt service.
Total fund balances in the City’s nonmajor governmental funds increased $3,820,542 in fiscal 2024, to a
year-end total of $10,231,447. Financial highlights for some of the significant changes in the City’s
nonmajor governmental funds are as follows:
Park Improvement Special Revenue Fund – A $734,469 increase in fund balance was mainly due
to increased park dedication fees and an annual transfer from the Liquor Operations Enterprise Fund.
Recreation Facilities Capital Projects Fund – Unspent proceeds from the City’s 2024A G.O. Tax
Abatement Bonds, issued to finance improvements to the Rambling River Center, resulted in a
$1,631,644 increase to fund balance in 2024, as the majority of the related project costs will be
incurred in 2025.
Emerald Ash Borer Capital Projects Fund – Transfers from the General Fund and the Solid Waste
Enterprise Fund exceeded current year emerald ash borer mitigation project expenditures, increasing
fund balance by $1,298,781.
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 $699,497, an increase of $95,357 from the
prior year, mainly due to increased sales. The net position of the Liquor Operations Fund at the end of
2024 totaled $2,920,421, an increase of $475,607. The cash position for both stores increased from
$2,352,268 on December 31, 2023, to $2,852,168 as of December 31, 2024.
Sewer Operations Fund – The current year increase in net position of $600,436 is primarily due to
capital infrastructure asset contributions of $1,069,664 received from developers and governmental
fund activities during the year. An increase of approximately 19 percent in charges for services, due
to increases in both rates and usage, was partially offset by a 13 percent increase in operating
expenses. The City has implemented a series of rate increases designed to provide sufficient funds to
cover both operations and depreciation. This fund continues to maintain a significant unrestricted net
position of $3,147,947.
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Solid Waste Fund – The Solid Waste Fund was closed in fiscal 2024, with the City Council opting to
transfer the residual fund equity to the Emerald Ash Borer Capital Projects Fund to help finance
mitigation costs anticipated in the next few years.
Storm Water Fund – The increase in net position of $1,005,646 is primarily due charges for services
being sufficient to cover operating expenses, resulting in operating income of $742,001 for the year.
This fund also received capital infrastructure asset contributions of $1,182,675 from developers and
governmental fund activities during the year. This fund continues to maintain a significant
unrestricted net position of $3,546,246.
Water Fund – The increase in net position of $1,003,668 is primarily due to charges for services
being sufficient to cover depreciation expense, improved investment earnings, and capital
infrastructure asset contributions of $1,082,986 received from developers and governmental fund
activities during the year. This fund continues to maintain a significant unrestricted net position of
$11,380,951.
Street Light Fund – The Street Light Fund was established in 2010. By making this a utility fund, all
properties within the City, including tax-exempt properties, pay for street lighting. This fund has
accumulated a modest positive net position of $454,057 at year-end, an increase of $70,284 from last
year.
GENERAL FUND BUDGETARY HIGHLIGHTS
The City’s original and final budgets are the same, as no budget amendments were made during the year.
Actual revenues were $1,479,045 over budget. Revenue variances from final budget to actual include:
• Licenses and permits were $433,387 over budget, due to several large valuation building permits.
• Intergovernmental revenue was $253,511 over budget, mainly due to an unanticipated new local
affordable housing state grant received in 2024, and other miscellaneous grants exceeding budget.
• Charges for services were $270,463 more than the City’s conservative budget, with higher than
expected charges for engineering due to increased development.
• Investment earnings were $344,282 over budget, mainly due to improvements in the fair values of
the City’s investment portfolio. As the City generally intends to hold investments to maturity, it is
anticipated that this temporary market gain will fluctuate before the investments mature.
• Other revenue sources exceeded budget by $234,603, mainly due to reimbursements received for
tenant improvements under an amended lease agreement in City Hall.
Expenditures were $950,614 under budget, mainly in the public safety and public works areas. The City
realized reduced salary and benefits cost, influenced by both position vacancies and staffing adjustments
across departments after the budget was adopted. Spending on public works supplies and materials, some
of which can be significant in cost, were also lower than anticipated.
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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, 2023, was $103,179,315 (net of accumulated depreciation/amortization). This
investment in capital assets includes land, buildings, improvements other than buildings, park facilities,
machinery and equipment, vehicles, roads, bridges, infrastructure, intangibles, water mains, water
reservoirs, sewer mains, lift stations, and storm water mains. The City’s investment in capital assets for
the current fiscal year increased by 4 percent, mainly due to capitalized street and utility infrastructure
and lease asset additions, offset by current year depreciation/amortization.
City of Farmington’s Capital Assets
2024 2023 2024 2023 2024 2023
Land and easements 1,658,302$ 1,658,302$ 498,376$ 498,376$ 2,156,678$ 2,156,678$
Construction in progress 272,806 554,953 – – 272,806 554,953
Buildings 12,430,592 12,863,478 922,807 1,128,499 13,353,399 13,991,977
Improvements other than buildings 2,218,584 824,468 1,285,987 1,392,088 3,504,571 2,216,556
Machinery and equipment 3,980,369 3,626,858 961,995 510,021 4,942,364 4,136,879
Infrastructure 30,462,565 28,762,779 – – 30,462,565 28,762,779
Collection/distribution systems – – 47,095,883 45,526,648 47,095,883 45,526,648
Leases – vehicles 737,201 712,226 – – 737,201 712,226
Leases – buildings – – 653,848 774,806 653,848 774,806
Total (net of depreciation)51,760,419$ 49,003,064$ 51,418,896$ 49,830,438$ 103,179,315$ 98,833,502$
Governmental Activities Business-Type Activities Total
Most capital asset additions in 2024 related to ongoing street and utility improvement activity. Additional
information on the City’s capital assets can be found in Note 5 of the notes to basic financial statements.
Long-Term Debt – At the end of the current fiscal year, the City had total debt (bonds and lease
liabilities) outstanding of $13,271,136. All City bonded debt is general obligation debt, which is backed
by the full faith and credit of the government. Furthermore, at year-end, the City has long-term liabilities
of $1,065,823 for compensated absences, $5,439,221 for net pension liabilities, and $1,217,039 for other
post-employment benefits.
City of Farmington’s Outstanding Long-Term Debt
2024 2023 2024 2023 2024 2023
G.O. improvement bonds 6,115,000$ 5,435,000$ –$ –$ 6,115,000$ 5,435,000$
G.O. capital improvement bonds 2,405,000 2,965,000 – – 2,405,000 2,965,000
G.O. tax abatement bonds 1,695,000 – – – 1,695,000 –
G.O. equipment certificates 475,000 695,000 – – 475,000 695,000
G.O. revenue bonds – – 395,000 465,000 395,000 465,000
Unamortized premiums 663,305 544,915 41,297 51,207 704,602 596,122
Lease liabilities 754,320 716,171 727,214 828,121 1,481,534 1,544,292
Total debt outstanding 12,107,625$ 10,356,086$ 1,163,511$ 1,344,328$ 13,271,136$ 11,700,414$
Governmental Activities Business-Type Activities Total
Bond principal repayments during 2024 totaled $1,590,000. The City issued $1,420,000 of
G.O. improvement bonds and $1,695,000 of G.O. tax abatement bonds in 2024. The City’s credit rating
from Standard & Poor’s of “AA+” was affirmed in 2024.
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 $91,597,973, 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.
Page 219 of 417
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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City increased its General Fund operating levy for 2025 by $1,127,504. The final total city net tax
levy of $14,883,351 represents a 5.9 percent increase over the 2024 levy. Of the total budgeted General
Fund revenues for 2025, including transfers in, 77.4 percent is derived from property taxes, which
includes $2.4 million in fiscal disparities revenue. The remaining General Fund budgeted revenues were
adjusted to reflect anticipated development activity, increased state aid and service charges, and changes
in internal transfers.
Proposed General Fund expenditures for 2025, including transfers out, are estimated at $19,805,780, an
increase of 4.9 percent compared to the 2024 budget. The 2025 budget continues to support core services
such as police and fire protection, street maintenance and snow removal, parks and recreation, and general
administration. It also maintains long-term funding commitments for seal coating, trail and building
maintenance, and police and fire equipment replacement.
The City’s Capital Improvement Plan for 2025 includes ongoing investments in police vehicles and
public safety equipment, as well as the scheduled replacement of public works and parks equipment, and
continued investment in street and infrastructure improvements.
The City remains firmly committed to its four strategic priorities: fostering business growth, enhancing
community engagement, supporting critical infrastructure, and strengthening employee engagement. In
doing so, the City aims to provide high-quality essential services to current residents while promoting
new development to expand the tax base and support long-term community vitality.
REQUESTS FOR INFORMATION
This ACFR is designed to provide a general overview of the City’s finances for all those with an interest
in the government’s finances. Questions concerning any of the information provided in this report, or
requests for additional financial information, should be addressed to the Finance Director at the
City of Farmington, 430 Third Street, Farmington, Minnesota 55024. Email requests can be sent to
ksommerland@farmingtonmn.gov.
Page 220 of 417
BASIC FINANCIAL STATEMENTS
Page 221 of 417
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Page 222 of 417
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 42,812,028$ 20,102,496$ 62,914,524$
Receivables
Accounts 400,380 1,582,544 1,982,924
Interest 242,915 131,925 374,840
Property taxes 1,244,360 – 1,244,360
Special assessments 2,573,861 271,372 2,845,233
Due from other governments 1,301,782 229 1,302,011
Lease 787,372 – 787,372
Inventory – 650,721 650,721
Prepaid items 2,249 40 2,289
Restricted assets – temporarily restricted
Cash for future drinking water treatment plant – 2,461,488 2,461,488
Net pension asset – fire relief 1,558,145 – 1,558,145
Capital assets
Not depreciated/amortized 1,931,108 498,376 2,429,484
Depreciated/amortized, net 49,829,311 50,920,520 100,749,831
Total capital assets, net 51,760,419 51,418,896 103,179,315
Total assets 102,683,511 76,619,711 179,303,222
Deferred outflows of resources
Pension plan deferments – PERA 5,563,269 49,118 5,612,387
Pension plan deferments – fire relief 863,732 – 863,732
OPEB plan deferments 37,503 2,394 39,897
Total deferred outflows of resources 6,464,504 51,512 6,516,016
Total assets and deferred outflows of resources 109,148,015$ 76,671,223$ 185,819,238$
Liabilities
Accounts and contracts payable 1,178,470$ 422,087$ 1,600,557$
Accrued salaries and employee benefits payable 332,031 – 332,031
Accrued interest payable 162,268 7,496 169,764
Deposits payable 3,002,195 31,800 3,033,995
Due to other governments 1,402 522,957 524,359
Unearned revenue 375,641 – 375,641
Long-term liabilities
Due within one year
Bonds, certificates, lease liabilities, and compensated absences 2,344,602 208,095 2,552,697
Total OPEB liability 39,897 – 39,897
Due in more than one year
Bonds, certificates, lease liabilities, and compensated absences 10,780,301 1,003,961 11,784,262
Net pension liability 5,197,780 241,441 5,439,221
Total OPEB liability 1,104,120 73,022 1,177,142
Total long-term liabilities 19,466,700 1,526,519 20,993,219
Total liabilities 24,518,707 2,510,859 27,029,566
Deferred inflows of resources
Pension plan deferments – PERA 7,530,893 170,432 7,701,325
Pension plan deferments – fire relief 642,858 – 642,858
Lease revenue for subsequent years 787,372 – 787,372
Total deferred inflows of resources 8,961,123 170,432 9,131,555
Net position
Net investment in capital assets 41,670,431 50,255,385 91,925,816
Restricted for
Local affordable housing 88,549 – 88,549
Debt service 3,921,702 – 3,921,702
Economic development 574,408 – 574,408
Public safety programs 896,376 – 896,376
Park improvements 886,457 – 886,457
Capital projects 401,015 – 401,015
State-funded street projects 1,215,594 – 1,215,594
Fire relief pensions 1,558,145 – 1,558,145
Water Fund – future drinking water treatment plant – 2,461,488 2,461,488
Unrestricted 24,455,508 21,273,059 45,728,567
Total net position 75,668,185 73,989,932 149,658,117
Total liabilities, deferred inflows of resources, and net position 109,148,015$ 76,671,223$ 185,819,238$
CITY OF FARMINGTON
Statement of Net Position
as of December 31, 2024
See notes to basic financial statements -16-
Page 223 of 417
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government
Governmental activities
General government 5,759,500$ 1,675,600$ 111,653$ –$
Public safety 8,592,752 602,687 634,543 145,300
Public works 4,625,171 2,332,256 337,362 3,020,113
Parks and recreation 2,715,378 1,245,464 19,169 –
Economic development 137,901 – 88,549 –
Interest and fiscal charges 327,204 – – –
Total governmental activities 22,157,906 5,856,007 1,191,276 3,165,413
Business-type activities
Liquor operations 6,359,443 6,951,096 11,276 –
Sewer 3,241,040 3,284,422 – 1,024,853
Storm water 680,636 1,422,651 – 779,371
Water 2,032,420 2,378,085 5,209 769,305
Street light 198,028 251,731 – –
Total business-type activities 12,511,567 14,287,985 16,485 2,573,529
Total government 34,669,473$ 20,143,992$ 1,207,761$ 5,738,942$
General revenues
Property taxes
Franchise taxes
Grants and contributions not restricted
to specific programs
Investment earnings
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position – beginning
Net position – ending
CITY OF FARMINGTON
Statement of Activities
Year Ended December 31, 2024
See notes to basic financial statements -17-
Page 224 of 417
Governmental Business-Type
Activities Activities Total
(3,972,247)$ –$ (3,972,247)$
(7,210,222) – (7,210,222)
1,064,560 – 1,064,560
(1,450,745) – (1,450,745)
(49,352) – (49,352)
(327,204) – (327,204)
(11,945,210) – (11,945,210)
– 602,929 602,929
– 1,068,235 1,068,235
– 1,521,386 1,521,386
– 1,120,179 1,120,179
– 53,703 53,703
– 4,366,432 4,366,432
(11,945,210) 4,366,432 (7,578,778)
16,210,861 – 16,210,861
179,503 – 179,503
1,117,153 – 1,117,153
1,492,084 833,016 2,325,100
88,177 41,040 129,217
3,549,936 (3,549,936) –
22,637,714 (2,675,880) 19,961,834
10,692,504 1,690,552 12,383,056
64,975,681 72,299,380 137,275,061
75,668,185$ 73,989,932$ 149,658,117$
Changes in Net Position
Net (Expense) Revenue and
-18-
Page 225 of 417
Special Capital
Revenue –Capital Projects –
Program Aid Projects –Utility
General and Grants Private Trunk
Assets
Cash and investments 10,227,320$ 1,297,124$ 2,929,113$ 9,798,884$
Receivables
Accounts 172,944 – – –
Interest 66,238 3,038 17,122 57,278
Property taxes
Unremitted 1,038,532 – – –
Delinquent 205,828 – – –
Special assessments
Delinquent 261 – – –
Noncurrent – – – –
Due from other funds 55,151 – – 47,692
Due from other governments 86,158 – – –
Lease 787,372 – – –
Prepaid items 1,949 – – –
Total assets 12,641,753$ 1,300,162$ 2,946,235$ 9,903,854$
Liabilities
Accounts and contracts payable 257,872$ 117,568$ –$ 24,621$
Deposits payable 30,205 – 2,714,862 –
Due to other governments 1,065 – – –
Due to other funds – – – –
Unearned revenue – 375,641 – –
Total liabilities 289,142 493,209 2,714,862 24,621
Deferred inflows of resources
Unavailable revenue – property taxes 205,828 – – –
Unavailable revenue – special assessments 261 – – –
Unavailable revenue – long-term receivable – – – –
Lease revenue for subsequent years 787,372 – – –
Total deferred inflows of resources 993,461 – – –
Fund balances
Nonspendable 1,949 – – –
Restricted 88,549 806,953 – –
Committed – – 231,373 9,879,233
Assigned – – – –
Unassigned 11,268,652 – – –
Total fund balances 11,359,150 806,953 231,373 9,879,233
Total liabilities, deferred inflows
of resources, and fund balances 12,641,753$ 1,300,162$ 2,946,235$ 9,903,854$
Balance Sheet
CITY OF FARMINGTON
Governmental Funds
as of December 31, 2024
See notes to basic financial statements -19-
Page 226 of 417
Capital
Projects –Debt
Pavement Service –
Management Closed Bond Nonmajor Total
2,910,340$ 1,510,309$ 11,075,074$ 39,748,164$
– – 224,617 397,561
17,011 8,776 55,544 225,007
– – – 1,038,532
– – – 205,828
– 7,417 – 7,678
– 2,144,584 421,599 2,566,183
84,035 – 1,800 188,678
1,215,594 – 30 1,301,782
– – – 787,372
– – 300 2,249
4,226,980$ 3,671,086$ 11,778,964$ 46,469,034$
11,390$ –$ 684,101$ 1,095,552$
– – 252,802 2,997,869
– – 337 1,402
– – 188,678 188,678
– – – 375,641
11,390 – 1,125,918 4,659,142
– – – 205,828
– 2,152,001 421,599 2,573,861
1,215,594 – – 1,215,594
– – – 787,372
1,215,594 2,152,001 421,599 4,782,655
– – 300 2,249
– – 5,410,676 6,306,178
2,999,996 – 5,264,337 18,374,939
– 1,519,085 – 1,519,085
– – (443,866) 10,824,786
2,999,996 1,519,085 10,231,447 37,027,237
4,226,980$ 3,671,086$ 11,778,964$ 46,469,034$
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37,027,237$
Capital assets used in governmental activities are not financial resources and,therefore,are not
reported in governmental funds.
Cost of capital assets 103,722,383
Less accumulated depreciation/amortization (51,963,610)
Net pension assets are only recorded in the government-wide financial statements as they are not
current financial resources to governmental funds.1,558,145
Long-term liabilities are not payable with current financial resources and,therefore,are not reported
in governmental funds.
Bonds (10,690,000)
Unamortized bond premiums (663,305)
Lease liability (754,320)
Compensated absences (962,738)
Net pension liability (5,197,780)
Total OPEB liability (1,144,017)
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.(162,268)
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.2,612,422
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 205,828
Delinquent and deferred special assessments 2,573,861
Long-term receivables 1,215,594
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 6,427,001
Deferred outflows of resources – OPEB plan deferments 37,503
Deferred inflows of resources – pension plan deferments (8,173,751)
Total net position – governmental activities 75,668,185$
Amounts reported for governmental activities in the Statement of Net Position are different because:
as of December 31, 2024
CITY OF FARMINGTON
Reconciliation of the Balance Sheet to the
Statement of Net Position
Governmental Funds
Total fund balances – governmental funds
See notes to basic financial statements -21-
Page 229 of 417
Special Capital
Revenue –Capital Projects –
Program Aid Projects –Utility
General and Grants Private Trunk
Revenues
Property taxes 14,127,525$ –$ –$ –$
Franchise taxes 120,000 – – –
Special assessments 970 – – –
Licenses and permits 1,212,437 – – –
Intergovernmental 1,022,621 1,106,404 250,000 –
Charges for services 880,393 – – 2,242,116
Fines and forfeits 63,011 – – –
Investment earnings 354,282 36,818 105,548 356,053
Other 297,703 – – –
Total revenues 18,078,942 1,143,222 355,548 2,598,169
Expenditures
Current
General government 3,355,264 1,106,405 250,000 –
Public safety 7,463,149 34,415 – –
Public works 3,188,601 – – 200,053
Parks and recreation 1,729,974 – – –
Economic development – – – –
Capital outlay
General government 235,750 – – –
Public safety 39,283 8,309 – –
Public works 26,229 – – –
Parks and recreation 26,543 – – –
Debt service
Principal – – – –
Interest and fiscal charges – – – –
Total expenditures 16,064,793 1,149,129 250,000 200,053
Excess (deficiency) of revenues
over expenditures 2,014,149 (5,907) 105,548 2,398,116
Other financing sources (uses)
Sale of capital assets 510 – – –
Bonds issued – – – –
Premiums on bonds issued – – – –
Leases issued – – – –
Transfers in 2,284,510 – – –
Transfers out (1,928,456)(215,000)– –
Total other financing sources (uses)356,564 (215,000) – –
Net change in fund balances 2,370,713 (220,907) 105,548 2,398,116
Fund balances (deficits)
Beginning of year, as previously reported 8,988,437 (7,246) 125,825 5,368,207
Change in reporting entity – change in fund structure – 1,035,106 – 2,112,910
Change in reporting entity – nonmajor funds to major – – – –
Beginning of year, as restated 8,988,437 1,027,860 125,825 7,481,117
End of year 11,359,150$ 806,953$ 231,373$ 9,879,233$
CITY OF FARMINGTON
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2024
See notes to basic financial statements -22-
Page 230 of 417
Capital
Projects –Debt
Pavement Service –
Management Closed Bond Nonmajor Total
–$ –$ 2,028,020$ 16,155,545$
– – 59,503 179,503
– 278,113 – 279,083
– – – 1,212,437
10,395 – 170,738 2,560,158
53,240 – 429,853 3,605,602
– – – 63,011
131,151 54,760 337,033 1,375,645
– – 822,554 1,120,257
194,786 332,873 3,847,701 26,551,241
– – 103,668 4,815,337
– – 76,112 7,573,676
718,396 – 833,507 4,940,557
– – 715,823 2,445,797
– – 137,901 137,901
– – 688 236,438
– – 1,192,892 1,240,484
– – 2,103,695 2,129,924
– – 87,372 113,915
– – 1,712,484 1,712,484
– – 412,062 412,062
718,396 – 7,376,204 25,758,575
(523,610) 332,873 (3,528,503) 792,666
– – 87,667 88,177
– – 3,115,000 3,115,000
– – 231,831 231,831
– – 230,633 230,633
804,000 51,308 3,835,222 6,975,040
– (463,120) (151,308) (2,757,884)
804,000 (411,812) 7,349,045 7,882,797
280,390 (78,939) 3,820,542 8,675,463
– 1,598,024 12,278,527 28,351,774
– – (3,148,016) –
2,719,606 – (2,719,606) –
2,719,606 1,598,024 6,410,905 28,351,774
2,999,996$ 1,519,085$ 10,231,447$ 37,027,237$
-23-
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Page 232 of 417
8,675,463$
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/amortization expense.
Capital outlay 6,372,816
Transfer of capital assets to business-type activities (761,796)
Depreciation/amortization expense (2,832,961)
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 balances. (19,601)
Net pension assets are included in net position,but are excluded from fund balances because they do not represent
financial resources. 21,592
The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of
long-term debt consumes the current financial resources of governmental funds.Neither transaction,however,has
any effect on net position.Other long-term adjustments are also made between the governmental funds and the
Statement of Activities for debt premiums, compensated absences, pension liabilities, and OPEB obligations.
Debt issued (3,345,633)
Principal payments for debt 1,712,484
Debt premiums (118,390)
Compensated absences 38,441
Net pension liability 2,380,093
Total OPEB liability (116,108)
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.(28,583)
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.(35,769)
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 55,316
Delinquent and deferred special assessments (176,155)
Long-term receivable 821,384
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 (1,778,988)
Deferred outflows of resources – OPEB plan deferments 4,257
Deferred inflows of resources – pension plan deferments (175,358)
Change in net position – governmental activities 10,692,504$
Amounts reported for governmental activities in the Statement of Activities are different because:
Total net change in fund balances – governmental funds
Revenues, Expenditures, and Changes in Fund Balances
Reconciliation of the Statement of
CITY OF FARMINGTON
Year Ended December 31, 2024
Governmental Funds
to the Statement of Activities
See notes to basic financial statements -24-
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Page 234 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Property taxes 14,193,707$ 14,127,525$ (66,182)$
Franchise taxes 120,000 120,000 –
Special assessments – 970 970
Licenses and permits 779,050 1,212,437 433,387
Intergovernmental 769,110 1,022,621 253,511
Charges for services 609,930 880,393 270,463
Fines and forfeits 55,000 63,011 8,011
Investment earnings 10,000 354,282 344,282
Other 63,100 297,703 234,603
Total revenues 16,599,897 18,078,942 1,479,045
Expenditures
Current
General government 3,486,985 3,355,264 (131,721)
Public safety 7,973,660 7,463,149 (510,511)
Public works 3,735,946 3,188,601 (547,345)
Parks and recreation 1,768,414 1,729,974 (38,440)
Capital outlay
General government 2,000 235,750 233,750
Public safety 25,268 39,283 14,015
Public works 5,634 26,229 20,595
Parks and recreation 17,500 26,543 9,043
Total expenditures 17,015,407 16,064,793 (950,614)
Excess (deficiency) of revenues over expenditures (415,510) 2,014,149 2,429,659
Other financing sources (uses)
Sale of capital assets – 510 510
Transfers in 2,284,510 2,284,510 –
Transfers out (1,869,000)(1,928,456) (59,456)
Total other financing sources (uses)415,510 356,564 (58,946)
Net change in fund balances –$ 2,370,713 2,370,713$
Fund balances
Beginning of year 8,988,437
End of year 11,359,150$
CITY OF FARMINGTON
Year Ended December 31, 2024
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
See notes to basic financial statements -25-
Page 235 of 417
Liquor Sewer Solid Storm
Operations Operations Waste Water
Assets
Current assets
Cash and investments 2,852,168$ 2,610,512$ –$ 3,216,226$
Cash restricted for drinking water treatment plant – – – –
Receivables
Accounts 52,756 718,299 – 318,337
Interest 16,651 15,259 – 18,800
Delinquent special assessments – 16,132 – –
Deferred special assessments – 255,240 – –
Due from other governments – – – –
Inventory 650,721 – – –
Prepaid items 40 – – –
Total current assets 3,572,336 3,615,442 – 3,553,363
Noncurrent assets
Capital assets
Land – 85,000 – 84,992
Buildings – – – –
Improvements other than buildings 358,276 – – –
Machinery and equipment 332,626 1,359,158 – 433,883
Distribution system – – – –
Collection system – 30,772,782 – 22,890,354
Leases – buildings 951,551 – – –
Less accumulated depreciation/amortization (738,676) (15,813,648) – (10,037,007)
Total capital assets (net of accumulated depreciation/amortization)903,777 16,403,292 – 13,372,222
Total assets 4,476,113 20,018,734 – 16,925,585
Deferred outflows of resources
Pension plan deferments – PERA 49,118 – – –
OPEB plan deferments 2,394 – – –
Total deferred outflows of resources 51,512 – – –
Total assets and deferred outflows of resources 4,527,625$ 20,018,734$ –$ 16,925,585$
Liabilities
Current liabilities
Accounts and contracts payable 278,047$ 15,225$ –$ 7,117$
Accrued salaries and employee benefits payable – – – –
Deposits payable – – – –
Due to other governments 68,503 452,270 – –
Accrued interest payable – – – –
Compensated absences payable – current 36,409 – – –
Bonds payable – current – – – –
Lease liability – current 101,686 – – –
Total current liabilities 484,645 467,495 – 7,117
Noncurrent liabilities
Compensated absences payable 12,136 – – –
Bonds payable (net of unamortized premiums)– – – –
Lease liability 625,528 – – –
Net pension liability – PERA 241,441 – – –
Total OPEB liability 73,022 – – –
Total noncurrent liabilities 952,127 – – –
Total liabilities 1,436,772 467,495 – 7,117
Deferred inflows of resources
Pension plan deferments – PERA 170,432 – – –
Net position
Net investment in capital assets 176,563 16,403,292 – 13,372,222
Restricted for drinking water treatment plant – – – –
Unrestricted 2,743,858 3,147,947 – 3,546,246
Total net position 2,920,421 19,551,239 – 16,918,468
Total liabilities, deferred inflows of resources, and net position 4,527,625$ 20,018,734$ –$ 16,925,585$
as of December 31, 2024
Business-Type Activities – Enterprise Funds
CITY OF FARMINGTON
Statement of Net Position
Proprietary Funds
See notes to basic financial statements -26-
Page 236 of 417
Governmental
Street Activities –
Water Light Total Internal Service
10,980,284$ 443,306$ 20,102,496$ 3,063,864$
2,461,488 – 2,461,488 –
468,188 24,964 1,582,544 2,819
78,624 2,591 131,925 17,908
– – 16,132 –
– – 255,240 –
229 – 229 –
– – 650,721 –
– – 40 –
13,988,813 470,861 25,200,815 3,084,591
328,384 – 498,376 –
5,290,137 – 5,290,137 –
1,534,818 – 1,893,094 –
559,247 – 2,684,914 99,124
35,149,460 – 35,149,460 –
– – 53,663,136 –
– – 951,551 –
(22,122,441)– (48,711,772) (97,478)
20,739,605 – 51,418,896 1,646
34,728,418 470,861 76,619,711 3,086,237
– – 49,118 –
– – 2,394 –
– – 51,512 –
34,728,418$ 470,861$ 76,671,223$ 3,086,237$
104,894$ 16,804$ 422,087$ 82,918$
– – – 332,031
31,800 – 31,800 4,326
2,184 – 522,957 –
7,496 – 7,496 –
– – 36,409 54,540
70,000 – 70,000 –
– – 101,686 –
216,374 16,804 1,192,435 473,815
– – 12,136 –
366,297 – 366,297 –
– – 625,528 –
– – 241,441 –
– – 73,022 –
366,297 – 1,318,424 –
582,671 16,804 2,510,859 473,815
– – 170,432 –
20,303,308 – 50,255,385 1,646
2,461,488 – 2,461,488 –
11,380,951 454,057 21,273,059 2,610,776
34,145,747 454,057 73,989,932 2,612,422
34,728,418$ 470,861$ 76,671,223$ 3,086,237$
-27-
Page 237 of 417
Liquor Sewer Solid Storm
Operations Operations Waste Water
Operating revenue
Sales 6,946,827$ –$ –$ –$
Charges for services – 3,278,646 – 1,422,637
Insurance reimbursement – – – –
Total operating revenue 6,946,827 3,278,646 – 1,422,637
Cost of goods sold 5,083,818 – – –
Gross profit 1,863,009 3,278,646 – 1,422,637
Operating expenses
Personal services 723,987 2,807 – 2,640
Professional services 326,946 2,507,620 – 159,574
Materials and supplies 20,173 35,519 – 28,084
Insurance – – – –
Depreciation/amortization 165,402 692,820 – 490,338
Total operating expenses 1,236,508 3,238,766 – 680,636
Operating income (loss)626,501 39,880 – 742,001
Nonoperating revenues (expenses)
Intergovernmental 11,276 – – –
Investment earnings 96,568 82,575 – 123,018
Gain (loss) on sale of capital assets – 41,200 – (160)
Other 4,269 5,776 – 14
Interest and fiscal charges (39,117) (2,274)– –
Total nonoperating revenues (expenses)72,996 127,277 – 122,872
Income (loss) before
contributions and transfers 699,497 167,157 – 864,873
Capital contributions – 1,069,664 – 1,182,675
Transfers in – – – –
Transfers out (223,890)(636,385)(1,465,089) (1,041,902)
Change in net position 475,607 600,436 (1,465,089) 1,005,646
Net position
Beginning of year 2,444,814 18,950,803 1,465,089 15,912,822
End of year 2,920,421$ 19,551,239$ –$ 16,918,468$
Business-Type Activities – Enterprise Funds
CITY OF FARMINGTON
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Year Ended December 31, 2024
See notes to basic financial statements -28-
Page 238 of 417
Governmental
Street Activities –
Water Light Total Internal Service
–$ –$ 6,946,827$ –$
2,089,774 249,441 7,040,498 4,231,211
– – – 351,110
2,089,774 249,441 13,987,325 4,582,321
– – 5,083,818 –
2,089,774 249,441 8,903,507 4,582,321
4,487 – 733,921 3,685,986
586,665 191,236 3,772,041 603,178
409,949 6,792 500,517 133,826
– – – 405,012
1,022,728 – 2,371,288 1,103
2,023,829 198,028 7,377,767 4,829,105
65,945 51,413 1,525,740 (246,784)
5,209 – 16,485 –
514,274 16,581 833,016 116,439
– – 41,040 –
288,311 2,290 300,660 –
(8,591)– (49,982) –
799,203 18,871 1,141,219 116,439
865,148 70,284 2,666,959 (130,345)
1,082,986 – 3,335,325 –
– – – 344,576
(944,466)– (4,311,732) (250,000)
1,003,668 70,284 1,690,552 (35,769)
33,142,079 383,773 72,299,380 2,648,191
34,145,747$ 454,057$ 73,989,932$ 2,612,422$
-29-
Page 239 of 417
Liquor Sewer Solid Storm
Operations Operations Waste Water
Cash flows from operating activities
Cash received from customers 6,989,298$ 3,165,869$ 734$ 1,392,271$
Cash receipts from other funds and reimbursements – – – –
Cash payments to suppliers (5,439,335) (2,176,446) – (193,753)
Cash payments to employees for services (745,921) (2,807) – (2,640)
Cash payments for interfund services used – – – –
Net cash flows from operating activities 804,042 986,616 734 1,195,878
Cash flows from noncapital financing activities
Intergovernmental revenue 11,276 – – –
Transfers in – – – –
Transfers out (223,890) (636,385) (1,465,089) (1,041,902)
Net cash flows from noncapital financing activities (212,614) (636,385) (1,465,089) (1,041,902)
Cash flows from capital and related financing activities
Proceeds from sale of capital assets – 41,513 – –
Acquisition and construction of capital assets (41,112) (583,782) – –
Principal payment on bonds and leases (100,907) – – –
Interest and fiscal charges paid (39,117) (2,274) – –
Net cash flows from capital and related financing activities (181,136) (544,543) – –
Cash flows from investing activities
Interest received and changes in fair value on investments 89,608 78,565 6,017 116,373
Net increase in cash and cash equivalents 499,900 (115,747) (1,458,338) 270,349
Cash and cash equivalents
Beginning of year 2,352,268 2,726,259 1,458,338 2,945,877
End of year 2,852,168$ 2,610,512$ –$ 3,216,226$
Reconciliation of operating income (loss) to net cash flows from
operating activities
Operating income (loss)626,501$ 39,880$ –$ 742,001$
Adjustments to reconcile operating income (loss) to net cash flows
from operating activities
Depreciation/amortization 165,402 692,820 – 490,338
Other 4,269 5,776 – 14
Change in assets, deferred outflows of resources, liabilities,
and deferred inflows of resources
Accounts receivable 38,202 (118,105) 734 (30,380)
Special assessments – (448) – –
Due from other governments – – – –
Inventory 3,710 – – –
Prepaid items – – – –
Deferred outflows of resources – pension plan deferments 50,978 – – –
Deferred outflows of resources – OPEB plan deferments (295) – – –
Accounts and contracts payable (11,770) (11,027) – (6,095)
Accrued salaries and employee benefits – – – –
Deposits payable – – – –
Due to other governments (338) 377,720 – –
Compensated absences 3,529 – – –
Net pension liability (129,301) – – –
Total OPEB liability 8,108 – – –
Deferred inflows of resources – pension plan deferments 45,047 – – –
Net cash flows from operating activities 804,042$ 986,616$ 734$ 1,195,878$
Schedule of noncash capital and related financing activities
Capital assets contributed from developers and governmental funds –$ 1,069,664$ –$ 1,182,675$
Net book values of capital asset disposals –$ 313$ –$ 160$
Amortization of bond premium –$ –$ –$ –$
Business-Type Activities – Enterprise Funds
CITY OF FARMINGTON
Statement of Cash Flows
Proprietary Funds
Year Ended December 31, 2024
See notes to basic financial statements -30-
Page 240 of 417
Governmental
Street Activities –
Water Light Total Internal Service
2,373,309$ 260,961$ 14,182,442$ –$
– – – 4,595,364
(1,027,675) (214,621) (9,051,830) –
(4,487) – (755,855) (3,577,318)
– – – (1,140,868)
1,341,147 46,340 4,374,757 (122,822)
5,209 – 16,485 –
– – – 344,576
(944,466) – (4,311,732) (250,000)
(939,257) – (4,295,247) 94,576
– – 41,513 –
– – (624,894) –
(70,000) – (170,907) –
(19,955) – (61,346) –
(89,955) – (815,634) –
487,712 15,564 793,839 110,832
799,647 61,904 57,715 82,586
12,642,125 381,402 22,506,269 2,981,278
13,441,772$ 443,306$ 22,563,984$ 3,063,864$
65,945$ 51,413$ 1,525,740$ (246,784)$
1,022,728 – 2,371,288 1,103
288,311 2,290 300,660 –
(5,742) 9,230 (106,061) (2,819)
– – (448) –
966 – 966 15,862
– – 3,710 –
– – – 4,125
– – 50,978 –
– – (295) –
26,721 (16,593) (18,764) (3,215)
– – – 104,542
(56,785) – (56,785) 1,606
(997) – 376,385 –
– – 3,529 2,758
– – (129,301) –
– – 8,108 –
– – 45,047 –
1,341,147$ 46,340$ 4,374,757$ (122,822)$
1,082,986$ –$ 3,335,325$ –$
–$ –$ 473$ –$
9,910$ –$ 9,910$ –$
-31-
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CITY OF FARMINGTON
Notes to Basic Financial Statements
December 31, 2024
-32-
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, 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.
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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/amortization 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 governm ent-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 liab ilities 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 investment earnings. 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.
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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/amortization 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 propriet ary
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.
Program Aid and Grants Special Revenue Fund – This fund tracks program-specific revenues and
expenditures for noncapital programs supported by various federal, state, or local sources.
Private Capital Projects Fund – This fund accounts for engineering and administrative fee deposits
related to private development projects within the City.
Utility Trunk Capital Projects Fund – This fund accounts for the planning, construction, and
improvement of utility trunk infrastructure, such as major water, sewer, and stormwater lines to
accommodate future growth within the City.
Pavement Management Capital Projects Fund – This fund accounts for the maintenance of city
paved surfaces, such as streets and parking lots, with a focus on resurfacing and preservation to
extend the infrastructure life and functionality.
Closed Bond Debt Service Fund – This fund accounts for the accumulated resources related to bond
issues that have fully matured or were called by the City using internal resources.
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 accounted for the operation of the City’s garbage
collection and recycling programs, which were transitioned to a private contractor beginning in 2022.
This fund was closed in 2024.
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.
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Water Fund – The Water Fund accounts for the operations of the City’s water distribution system,
including wells and reservoirs.
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, most special revenue funds, the debt service funds, and most capital projects funds. No
fiscal 2024 budgets were adopted for the Program Aids and Grants or Public Safety Engagement Special
Revenue Funds; or for the Private, Maintenance, Water Trunk, Sanitary Sewer Trunk, Fire Capital
Equipment, Spruce Street Reconstruction, or 2024 Street Improvements Capital Projects Funds. Budgeted
expenditure appropriations lapse at year-end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The city administrator submits a proposed operating budget for the fiscal year commencing the
following January 1 to the City Council. The operating budget includes proposed expenditures
and the means of financing them.
2. The City Council reviews the proposed budgets and makes the appropriate changes.
3. Public hearings are conducted to obtain taxpayer comments.
4. The budgets are legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual expenditure
accounts.
5. Formal budgetary integration is employed as a management control device during the year for the
governmental and enterprise funds.
6. The legal level of budgetary control is at the fund level. Expenditures may not legally exceed
budgeted appropriations at the total fund level. Monitoring of budgets is maintained at the
expenditure category level (e.g., personnel services, supplies, other services and charges, etc.)
within each department. Management can exceed appropriations at the department level without
City Council approval. The City Council must approve any expenditures 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.
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For the year ended December 31, 2024, 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
Utility Trunk Capital Projects –$ 200,053$
Nonmajor special revenue funds
Park Improvement 7,000$ 15,330$
Nonmajor capital projects funds
Capital Equipment 926,150$ 1,442,898$
Recreation Facilities 11,000$ 279,355$
Emerald Ash Borer 300,000$ 535,153$
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.
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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. Receivables not expected to be fully
collected within one year include leases, special assessments, property taxes, and certain state-aid
receivables.
H. Interfund Balances and Transfers
In the fund financial statements, balances between funds that are representative of lending or borrowing
arrangements are 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.” Interfund
balances and transfers reported in the fund financial statements are eliminated to the extent possible in the
government-wide financial statements. 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.
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M. Capital Assets
Capital assets, which include property, buildings, improvements, equipment, 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
and in the proprietary fund financial statements, but not in the governmental fund financial statements.
Such assets are capitalized at historical cost, or estimated historical cost for assets where actual his torical
cost is not available. Donated assets are recorded as capital assets at their estimated acquisition value on
the date of donation. Lease assets are recorded based on the measurement of payments applicable to the
lease term. 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. Groups of similar assets acquired at or near the same time
for a single objective, with individual costs below this threshold, are also capitalized if the aggregate cost
of the assets is considered significant. 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.
Land, easements, and construction in progress are not depreciated. Lease assets are amortized over the
term of the lease or over the useful life of the applicable asset class previously described, if future
ownership is anticipated. 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 of resources or deferred inflows of resources. These
separate financial statement elements represent a consumption or acquisition of net assets, respectively,
that apply to future periods and will not be recognized as an outflow of financial 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 proprietary fund Statements 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.
The City also reports deferred inflows of resources related to leases. Lessors are required to recognize
deferred inflows of resources corresponding to lease receivables, which are reported in both the
governmental fund financial statements and the government-wide financial statements. These amounts are
deferred and amortized in a systematic and rationale manner over the term of the lease.
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: 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.
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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.
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
The City recognizes a liability for compensated absences for leave time that (1) has been earned for
services previously rendered by the employees, (2) accumulates and is allowed to be carried over to
subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in
cash to the employee or payment to an employee flex spending account) during or upon separation from
employment. Based on the criteria listed, three types of leave qualify for liability recognition for
compensated absences – vacation, sick leave, and paid time off (PTO). The liability for compensated
absences is reported as incurred in the government-wide and proprietary fund financial statements.
Compensated absences are accrued in the governmental funds when matured due to use or separation. The
liability for compensated absences includes salary-related benefits, where applicable.
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.
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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
and amortization, 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.
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.
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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. Changes in Reporting Entity
The City’s financial statements reflect changes in reporting entity of the following types:
1. Change in Fund Structure – The City reorganized and simplified the governmental funds it
reports in its external financial statements, electing to combine certain similar internal accounts
that had previously been reported as separate funds. The effects of these changes are reflected as
additions or deletions to the applicable opinion unit beginning fund balances in the governmental
fund basic financial statements.
2. Nonmajor Fund to Major – The Pavement Management Capital Projects Fund, reported as a
nonmajor fund in the previous year, met the quantitative threshold to be reported as a major fund
in the current year. The effect of this change is reflected as an addition or deletion to the
applicable opinion unit beginning fund balances in the governmental fund basic financial
statements.
NOTE 2 – DEPOSITS AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 6,963,601$
Investments 58,408,404
Petty cash 4,007
Total 65,376,012$
Cash and investments are included on the basic financial statements as follows:
Statement of Net Position
Cash and investments 62,914,524$
Restricted assets – temporarily restricted
Cash for future drinking water treatment plant 2,461,488
Total 65,376,012$
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B. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council, including checking and savings accounts.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a bank failure, the
City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bond, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes
treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or
better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the
Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in
an account at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral. The City has no additional deposit
policies addressing custodial credit risk.
At year-end, the carrying amount of the City’s deposits was $6,963,601, while the balance on the
bank records was $6,833,618. At December 31, 2024, all deposits were fully covered by federal
deposit insurance, surety bonds, or by collateral held by the City’s agent in the City’s name.
C. Investments
The City has the following investments at year-end:
Fair Value
Measurements
Investment Type Rating Agency Using Less Than 1 1 to 5 6 to 10 Total
U.S. treasury securities Level 2 995,845$ 3,501,545$ –$ 4,497,390$
U.S. agency securities Aaa Moody’s Level 2 476,040 – – 476,040
U.S. agency securities AA S&P Level 2 7,039,305 7,239,393 – 14,278,698
U.S. agency securities Level 2 – 982,160 – 982,160
Municipal bonds AAA S&P Level 2 234,672 2,180,893 1,403,612 3,819,177
Municipal bonds Aaa Moody’s Level 2 399,668 96,847 – 496,515
Municipal bonds AA S&P Level 2 1,700,291 7,743,861 2,352,580 11,796,732
Municipal bonds Aa Moody’s Level 2 2,692,155 5,951,804 2,102,326 10,746,285
Municipal bonds A Moody’s Level 2 – 381,896 – 381,896
Negotiable certificates
of deposit Level 2 3,337,071 6,877,704 – 10,214,775
16,875,047$ 34,956,103$ 5,858,518$ 57,689,668
Investment pools/mutual funds AAA S&P Level 1 718,736
Total investments 58,408,404$
Interest Risk – Maturity
Duration in YearsCredit Risk
Not Rated
Not Applicable
Not Rated
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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 $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The City’s investment policies do not further address
credit risk.
Concentration Risk – This is the risk associated with investing a significant portion of the City’s
investments (considered 5.0 percent or more) in the securities of a single issuer, excluding
U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City’s
investment policy places no limit on the amount the City may invest in any one issuer . However, it
discusses the need to diversify investments to minimize risk. Of the City’s investment portfolio at
December 31, 2024, 10.9 percent were issued by the Federal Home Loan Bank and 7.0 percent were
issued by the Federal Farm Credit Bank.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The City’s investment policy states the investment portfolio should be structured to
meet cash requirements for ongoing operations. The policy limits investment maturities as a means of
managing exposure to fair value losses arising from increasing interest rates, stating that no more than
30.0 percent of total investments should extend beyond 5 years and none should extend beyond
15 years. The City’s year-end investment portfolio maturities comply with this policy.
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NOTE 3 – INTERFUND BALANCES AND TRANSFERS
A. Interfund Balances
The City had the following interfund balances at year-end:
Payable Fund Purpose Amount
Governmental Governmental
General Nonmajor Cash flow 55,151$
Utility Trunk Nonmajor Cash flow 47,692
Pavement Management Nonmajor Cash flow 84,035
Nonmajor Nonmajor Cash flow 1,800
188,678$
Receivable Fund
B. Interfund Transfers
The following transfers were made during the year:
Proprietary
Pavement Closed Internal
General Management Bond Nonmajor Service Total
Governmental
General –$ 684,000$ (2)–$ 1,165,000$ (4)79,456$ (1)1,928,456$
Program Aid and Grants – – – 215,000 (5)– 215,000
Closed Bond 200,000 (1)– – – 263,120 (1)463,120
Nonmajor 100,000 (1)– 51,308 (3)– – 151,308
Proprietary – Enterprise
Liquor Operations 97,890 (1)– – 125,000 (6)1,000 (1)223,890
Sewer Operations 536,390 (1)40,000 (2)– 58,995 (7)1,000 (1)636,385
Solid Waste – – – 1,465,089 (8)– 1,465,089
Storm Water 562,920 (1)40,000 (2)– 438,982 (7)– 1,041,902
Water 537,310 (1)40,000 (2)– 367,156 (7)– 944,466
Proprietary – Internal Service 250,000 (1)– – – – 250,000
2,284,510$ 804,000$ 51,308$ 3,835,222$ 344,576$ 7,319,616$
(1)To support general City operations.
(2)To fund pavement management program costs.
(3)To close debt service accounts for matured or called bond issues.
(4)For EDA operations ($50,000), ice arena ($20,000), emerald ash borer mitigation ($300,000), or capital purposes ($795,000).
(5)To fund fire capital equipment purchases with state public safety aid.
(6)For park improvements.
(7)For street improvements.
(8)To close Solid Waste Enterprise Fund, to be used for emerald ash borer mitigation.
Transfers In
Transfers Out
Total
Governmental
NOTE 4 – LEASES RECEIVABLE
In 2024, the City entered into an agreement to lease space in City Hall to the U.S. Department of
Agriculture (USDA), which amended and replaced a previous space lease agreement. The USDA is
required to make monthly payments for the space rental for a 169-month term maturing September 30,
2038, with a 6.0 percent interest rate. As part of this agreement, the City made improvements to the space
in accordance with USDA specifications with a total cost of $414,674. The USDA reimbursed the City
for $169,970 of the improvements during 2024, and will reimburse the City for the remaining $244,704
through noncancelable monthly payments over a five-year period, with 6.0 percent interest. During the
current year, the City received principal and interest payments of $44,902. Additionally, the City received
$14,053 in other variable payments for common area maintenance fees, which are not a part of the lease
asset.
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NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2024 was as follows:
A. Changes in Capital Assets Used in Governmental Activities
Beginning Completed Ending
Balance Additions Deletions Construction Transfers Balance
Capital assets, not depreciated/amortized
Land 1,350,435$ –$ –$ –$ –$ 1,350,435$
Easements 307,867 – – – – 307,867
Construction in progress 554,953 2,950,049 (19,601) (2,450,799) (761,796) 272,806
Total capital assets, not
depreciated/amortized 2,213,255 2,950,049 (19,601) (2,450,799) (761,796) 1,931,108
Capital assets, depreciated/amortized
Buildings 21,303,850 – – – – 21,303,850
Improvements other than buildings 2,449,714 587,732 (187,345) 974,365 – 3,824,466
Machinery and equipment 9,253,027 917,970 (521,126) – 8,094 9,657,965
Infrastructure 63,029,338 1,686,432 (139,038) 1,476,434 – 66,053,166
Leases – vehicles 820,319 230,633 – – – 1,050,952
Total capital assets,
depreciated/amortized 96,856,248 3,422,767 (847,509) 2,450,799 8,094 101,890,399
Less accumulated depreciation/amortization
Buildings 8,440,372 432,886 – – – 8,873,258
Improvements other than buildings 1,625,246 167,981 (187,345) – – 1,605,882
Machinery and equipment 5,626,169 564,459 (521,126) – 8,094 5,677,596
Infrastructure 34,266,559 1,463,080 (139,038) – – 35,590,601
Leases – vehicles 108,093 205,658 – – – 313,751
Total accumulated
depreciation/amortization 50,066,439 2,834,064 (847,509) – 8,094 52,061,088
Net capital assets,
depreciated/amortized 46,789,809 588,703 – 2,450,799 – 49,829,311
Total capital assets, net 49,003,064$ 3,538,752$ (19,601)$ –$ (761,796)$ 51,760,419$
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NOTE 5 – CAPITAL ASSETS (CONTINUED)
B. Changes in Capital Assets Used in Business-Type Activities
Beginning Ending
Balance Additions Deletions Transfers Balance
Capital assets, not depreciated/amortized
Land 498,376$ –$ –$ –$ 498,376$
Capital assets, depreciated/amortized
Buildings 5,290,137 – – – 5,290,137
Improvements other than buildings 1,893,094 – – – 1,893,094
Machinery and equipment 2,304,959 624,896 (236,847) (8,094) 2,684,914
Collection/distribution systems 85,507,273 2,573,527 (30,000) 761,796 88,812,596
Leases – buildings 951,551 – – – 951,551
Total capital assets,
depreciated/amortized 95,947,014 3,198,423 (266,847) 753,702 99,632,292
Less accumulated depreciation/amortization
Buildings 4,161,638 205,692 – – 4,367,330
Improvements other than buildings 501,006 106,101 – – 607,107
Machinery and equipment 1,794,938 172,922 (236,847) (8,094) 1,722,919
Collection/distribution systems 39,980,625 1,765,615 (29,527) – 41,716,713
Leases – buildings 176,745 120,958 – – 297,703
Total accumulated
depreciation/amortization 46,614,952 2,371,288 (266,374) (8,094) 48,711,772
Net capital assets,
depreciated/amortized 49,332,062 827,135 (473) 761,796 50,920,520
Total capital assets, net 49,830,438$ 827,135$ (473)$ 761,796$ 51,418,896$
C. Depreciation/Amortization Expense by Function
Depreciation/amortization expense was charged to the following functions:
Governmental activities
General government 1,726,799$
Public safety 560,343
Public works 242,174
Parks and recreation 303,645
Internal Service Funds 1,103
Total depreciation/amortization expense – governmental activities 2,834,064$
Business-type activities
Liquor operations 165,402$
Sewer operations 692,820
Storm water 490,338
Water 1,022,728
Total depreciation/amortization expense – business-type activities 2,371,288$
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NOTE 6 – LONG-TERM LIABILITIES
A. Components of Long-Term Liabilities
Original Interest Issue Maturity Balance –
Issue Rate Date Date End of Year
Governmental activities
General obligation improvement bonds
G.O. Street Reconstruction Bonds 2015A 3,050,000$ 2.00–3.00%10/15/2015 02/01/2030 1,340,000$
G.O. Street Reconstruction Bonds 2022A 3,650,000$ 3.00–5.00%07/06/2022 02/01/2033 3,355,000
G.O. Street Reconstruction Bonds 2024A 1,420,000$ 4.00–5.00%08/15/2024 02/01/2035 1,420,000
Total general obligation improvement bonds 6,115,000
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 2,405,000
General obligation tax abatement bonds
G.O. Tax Abatement Bonds 2024A 1,695,000$ 4.00–5.00%08/15/2024 02/01/2040 1,695,000
General obligation equipment certificates
G.O. Equipment Certificates of Indebtedness 2020A 1,105,000$ 5.00%02/19/2020 02/01/2026 475,000
Total bonds and certificates 10,690,000
Unamortized premiums 663,305
Lease liabilities
Lease – vehicle 31,238$ 6.62%06/23/2022 06/30/2026 13,513
Lease – vehicle 31,238$ 6.62%06/23/2022 06/30/2026 15,182
Lease – vehicle 29,970$ 7.71%09/23/2022 09/30/2026 13,513
Lease – vehicle 30,637$ 2.68%03/13/2023 03/31/2028 20,137
Lease – vehicle 30,590$ 2.68%03/16/2023 03/31/2028 20,137
Lease – vehicle 30,590$ 2.68%03/16/2023 03/31/2028 20,137
Lease – vehicle 30,590$ 2.68%03/16/2023 03/31/2028 20,137
Lease – vehicle 44,510$ 3.53%04/19/2023 04/30/2028 29,994
Lease – vehicle 50,395$ 2.31%05/25/2023 05/31/2028 34,868
Lease – vehicle 39,285$ 2.79%07/24/2023 07/31/2027 25,675
Lease – vehicle 42,292$ 2.74%07/27/2023 07/31/2028 30,740
Lease – vehicle 40,296$ 2.74%08/21/2023 08/31/2028 29,847
Lease – vehicle 40,296$ 2.74%08/21/2023 08/31/2028 29,847
Lease – vehicle 40,296$ 2.74%08/21/2023 08/31/2028 29,847
Lease – vehicle 40,129$ 2.74%08/24/2023 08/31/2028 29,769
Lease – vehicle 39,267$ 2.79%08/25/2023 08/31/2027 26,478
Lease – vehicle 57,934$ 2.74%08/31/2023 08/31/2028 43,131
Lease – vehicle 39,264$ 3.53%10/12/2023 10/31/2027 27,939
Lease – vehicle 39,302$ 3.53%10/12/2023 10/31/2027 27,959
Lease – vehicle 39,302$ 3.53%10/12/2023 10/31/2027 27,959
Lease – vehicle 39,264$ 3.53%10/12/2023 10/31/2027 27,939
Lease – vehicle 86,768$ 2.62%06/01/2024 05/01/2029 77,009
Lease – vehicle 48,349$ 2.62%06/01/2024 05/01/2029 42,935
Lease – vehicle 47,758$ 2.32%10/01/2024 09/01/2028 44,814
Lease – vehicle 47,758$ 2.32%10/01/2024 09/01/2028 44,814
Total lease liabilities 754,320
Compensated absences 1,017,278
Total governmental activities 13,124,903$
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 395,000$
Unamortized premiums 41,297
Lease liabilities
Lease – buildings (Downtown liquor store)745,373$ 6.62%10/01/2021 05/31/2036 659,144
Lease – buildings (Pilot Knob liquor store)211,684$ 5.00%12/01/2022 11/30/2025 68,070
Total lease liabilities 727,214
Compensated absences 48,545
Total business-type activities 1,212,056$
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NOTE 6 – LONG-TERM LIABILITIES (CONTINUED)
B. Bonds and Certificates Payable
• 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.
• 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.
Minimum annual payments required to retire bonds and certificates are as follows:
Governmental Activities
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2025 1,125,000$ 356,570$ 230,000$ 18,000$ 1,355,000$ 374,570$
2026 1,300,000 320,550 245,000 6,125 1,545,000 326,675
2027 1,400,000 275,025 – – 1,400,000 275,025
2028 1,450,000 228,675 – – 1,450,000 228,675
2029 870,000 186,281 – – 870,000 186,281
2030–2034 3,070,000 472,906 – – 3,070,000 472,906
2035–2039 850,000 103,000 – – 850,000 103,000
2040 150,000 3,000 – – 150,000 3,000
Total 10,215,000$ 1,946,007$ 475,000$ 24,125$ 10,690,000$ 1,970,132$
G.O. Bonds TotalG.O. Equipment Certificates
Business-Type Activities
Year Ending
December 31,Principal Interest
2025 70,000$ 16,300$
2026 75,000 12,675
2027 80,000 8,800
2028 85,000 5,100
2029 85,000 1,700
Total 395,000$ 44,575$
G.O. Revenue
C. Revenue Pledged
Future revenue pledged for the payment of long-term bonded debt is as follows:
Percent Remaining Principal Pledged
Use of of Debt Term of Principal and Interest Revenue
Bond Issue Proceeds Type Service Pledge and Interest Paid Received
G.O. Water Revenue Bonds 2019A Utility improvements Utility charges 100%2019–2029 439,575$ 89,800$ 2,089,774$
Current YearRevenue Pledged
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NOTE 6 – LONG-TERM LIABILITIES (CONTINUED)
D. Ultimate Responsibility for Debt
All general obligation bonds are backed by 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 equal to 3.0 percent of the taxable market value of property in the City. As
of December 31, 2024, the City had not utilized $80,907,973 of its $91,597,973 legal debt limit.
E. Lease Liabilities
• Leases – Vehicles – The City is leasing a number of vehicles under agreements that are secured
by the leased equipment. The total amount of underlying lease assets by major classes and the
related accumulated amortization is presented in Note 5 of the notes to basic financial statements.
The leases are being paid by the (nonmajor) Capital Equipment Capital Projects Fund.
• Leases – Buildings – The City operates two retail liquor stores known colloquially as Downtown
and Pilot Knob. The City leases building space through two agreements that are being paid by the
Liquor Operations Enterprise Fund. The Downtown store lease is for an approximately
7,400 square foot space in the Farmington Mall, for which the City paid $26,058 in common area
operating expenses in 2024 that are not included in the lease liability. The Pilot Knob location
occupies a 4,758 square foot store in the Farmington Gateway Center, for which the City paid
$46,549 in common area operating expenses in 2024 that are not included in the lease liability.
The total amount of underlying lease assets by major classes and the related accumulated
amortization is presented in Note 5 of the notes to basic financial statements.
Minimum annual payments required to retire bonds and certificates are as follows:
Year Ending
December 31,Principal Interest Principal Interest
2025 226,643$ 19,051$ 101,686$ 33,920$
2026 222,162 11,379 37,356 30,440
2027 197,153 5,356 41,348 28,482
2028 96,490 1,265 45,607 26,318
2029 11,872 74 50,147 23,935
2030–2034 – – 329,922 75,191
2035–2036 – – 121,148 4,621
Total 754,320$ 37,125$ 727,214$ 222,907$
Vehicle Leases Liquor Store Building Leases
Governmental Activities Business-Type Activities
F. Other Long-Term Liabilities
The City provides its employees with various benefits, including compensated absences, and pension
benefits and OPEB as further described elsewhere in these notes. The General Fund and Liquor
Operations Enterprise Fund will be used to liquidate these liabilities.
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NOTE 6 – LONG-TERM LIABILITIES (CONTINUED)
G. Changes in Long-Term Liabilities
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities
G.O. improvement bonds 5,435,000$ 1,420,000$ 740,000$ 6,115,000$ 550,000$
G.O. capital improvement bonds 2,965,000 – 560,000 2,405,000 575,000
G.O. tax abatement bonds – 1,695,000 – 1,695,000 –
G.O. equipment certificates 695,000 – 220,000 475,000 230,000
Unamortized premiums 544,915 231,831 113,441 663,305 –
Lease liabilities 716,171 230,633 192,484 754,320 226,643
Compensated absences 1,052,961 671,614 707,297 1,017,278 762,959
Total governmental activities 11,409,047 4,249,078 2,533,222 13,124,903 2,344,602
Business-type activities
G.O. revenue bonds 465,000 – 70,000 395,000 70,000
Unamortized premiums 51,207 – 9,910 41,297 –
Lease liabilities 828,121 – 100,907 727,214 101,686
Compensated absences 45,016 25,620 22,091 48,545 36,409
Total business-type activities 1,389,344 25,620 202,908 1,212,056 208,095
Total government-wide 12,798,391$ 4,274,698$ 2,736,130$ 14,336,959$ 2,552,697$
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’
Relief Total
GERF PEPFF Total Association All Plans
Net pension asset –$ –$ –$ 1,558,145$ 1,558,145$
Deferred outflows of resources 491,177$ 5,121,210$ 5,612,387$ 863,732$ 6,476,119$
Net pension liability 2,414,414$ 3,024,807$ 5,439,221$ –$ 5,439,221$
Deferred inflows of resources 1,704,319$ 5,997,006$ 7,701,325$ 642,858$ 8,344,183$
Pension expense 220,861$ 555,096$ 775,957$ 301,837$ 1,077,794$
State-Wide PERA Pension Plans
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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. These plan provisions are established and administered
according to Minnesota Statutes, Chapters 353 and 356. Minnesota Statutes Chapter 356 defines each
plan’s financial reporting requirements. The PERA’s defined benefit pension plans are tax qualified plans
under Section 401(a) of the Internal Revenue Code (IRC).
1. General Employees Retirement Fund (GERF)
Membership in the GERF includes employees of counties, cities, townships, schools in
noncertified positions, and other governmental entities whose revenues are derived from taxation,
fees, or assessments. Plan membership is required for any employee who is expected to earn more
than $425 in a month, unless the employee meets exclusion criteria.
2. Public Employees Police and Fire Fund (PEPFF)
Membership in the PEPFF includes full-time, licensed police officers and firefighters who meet
the membership criteria defined in Minnesota Statutes Section 353.64 and who are not earning
service credit in any other PERA retirement plan or a local relief association for the same service.
Employers can provide PEPFF coverage for part-time positions and certain other public safety
positions by submitting a resolution adopted by the entity’s governing body. The resolution must
state that the position meets plan requirements.
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. When a member is “vested,” they have earned enough service credit to
receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age.
Members who retire at or over their Social Security full retirement age with at least one year of service
qualify for a retirement benefit.
1. GERF Benefits
The GERF requires three years of service to vest. 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 GERF members. Members
hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level
formula is used for members hired after June 30, 1989. Under the Step formula, GERF members
receive 1.2 percent of the highest average salary for each of the first 10 years of service, and
1.7 percent for each additional year. Under the Level formula, GERF members receive
1.7 percent of highest average salary for all years of service. For members hired prior to July 1,
1989, a full retirement benefit is available when age plus years of service equal 90, and normal
retirement age is 65. Members can receive a reduced retirement benefit as early as age 55 if they
have three or more years of service. Early retirement benefits are reduced by 0.25 percent for
each month under age 65. Members with 30 or more years of service can retire at any age with a
reduction of 0.25 percent for each month the member is younger than age 62. The Level formula
allows GERF members to receive a full retirement benefit at age 65 if they were first hired before
July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at
age 55 with an actuarial reduction applied to the benefit.
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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. The 2024 annual increase was 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 prorated increase.
2. PEPFF Benefits
Benefits for PEPFF members first hired before July 1, 2010, are vested after three years of
service. Members hired on or after July 1, 2010, are 50.0 percent vested after five years of
service, and 100.0 percent vested after 10 years. After five years, vesting increases by
10.0 percent each full year of service until members are 100.0 percent vested after ten years.
Police and Fire Plan members receive 3.0 percent of highest average salary for all years of
service. Police and Fire Plan members receive a full retirement benefit when they are age 55
and vested, or when their age plus their years of service equals 90 or greater if they were first
hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are
reduced by 0.417 percent each month members are younger than age 55.
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 prorated increase.
C. Contributions
Minnesota Statutes, Chapter 353 and 356 set the rates for employer and employee contributions.
Contribution rates can only be modified by the State Legislature.
1. GERF Contributions
General Plan members were required to contribute 6.50 percent of their annual covered salary in
fiscal year 2024, and the City was required to contribute 7.50 percent for General Plan members.
The City’s contributions to the GERF for the year ended December 31, 2024, were $438,852. 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 2024, 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, 2024,
were $565,880. The City’s contributions were equal to the required contributions as set by state
statutes.
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
D. Pension Costs
1. GERF Pension Costs
At December 31, 2024, the City reported a liability of $2,414,414 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 $62,432.
City’s proportionate share of the net pension liability 2,414,414$
State’s proportionate share of the net pension liability
associated with the City 62,432
Total 2,476,846$
The net pension liability was measured as of June 30, 2024, 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, 2023
through June 30, 2024, relative to the total employer contributions received from all of the
PERA’s participating employers. The City’s proportionate share was 0.0653 percent at the end of
the measurement period and 0.0663 percent for the beginning of the period.
For the year ended December 31, 2024, the City recognized pension expense of $219,187 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $1,674 as pension expense (and grant revenue) for its proportionate share of the state
of Minnesota’s contribution of $16.0 million to the GERF.
During the plan year ended June 30, 2024, the state of Minnesota contributed $170.1 million to
the General Employees Fund. The state of Minnesota is not included as a nonemployer
contributing entity in the General Employees Plan pension allocation schedules for the
$170.1 million in direct state aid because this contribution was not considered to meet the
definition of a special funding situation. The City recognized $111,085 for the year ended
December 31, 2024 as revenue and an offsetting reduction of net pension liability for its
proportionate share of the state of Minnesota’s on-behalf contributions to the General Employees
Fund.
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 228,003$ –$
Changes in actuarial assumptions 11,839 923,946
Net difference between projected and actual earnings
on pension plan investments – 720,645
Changes in proportion 27,720 59,728
Employer contributions subsequent to the
measurement date 223,615 –
Total 491,177$ 1,704,319$
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The $223,615 reported as deferred outflows of resources related to pensions resulting from city
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ending December 31, 2025. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2025 (805,777)$
2026 (135,050)$
2027 (310,879)$
2028 (185,051)$
2. PEPFF Pension Costs
At December 31, 2024, the City reported a liability of $3,024,807 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2024,
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 proportionate share 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, 2023 through June 30, 2024, relative to the total
employer contributions received from all of the PERA’s participating employers. The City’s
proportionate share was 0.2299 percent at the end of the measurement period and 0.2456 percent
for the beginning of the period.
The state of Minnesota contributed $37.4 million to the PEPFF in the plan fiscal year ended
June 30, 2024. The contribution consisted of $9.0 million in direct state aid that meets the
definition of a special funding situation, additional one-time direct state aid contribution of
$19.4 million, and $9.0 million in supplemental state aid that does not meet the definition of a
special funding situation. Additionally, the $9.0 million supplemental state aid was paid on
October 1, 2024. 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. The state of Minnesota’s proportionate share of the net pension liability associated
with the City totaled $115,304.
City’s proportionate share of the net pension liability 3,024,807$
State’s proportionate share of the net pension liability
associated with the City 115,304
Total 3,140,111$
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
For the year ended December 31, 2024, the City recognized pension expense of $542,199 for its
proportionate share of the Police and Fire Plan’s pension expense. The City recognized $12,897
as grant revenue and pension expense for its proportionate share of the state of Minnesota’s
pension expense for the contribution of $9.0 million to the PEPFF special funding situation.
The state of Minnesota is not included as a nonemployer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $28.4 million in supplemental state aid because
this contribution was not considered to meet the definition of a special funding situation. The City
recognized $65,290 for the year ended December 31, 2024 as revenue and an offsetting reduction
of net pension liability for its proportionate share of the state of Minnesota ’s on-behalf
contributions to the PEPFF.
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 1,236,026$ –$
Changes in actuarial assumptions 3,560,642 4,757,741
Net difference between projected and actual earnings
on pension plan investments – 961,358
Changes in proportion 31,239 277,907
Employer contributions subsequent to the
measurement date 293,303 –
Total 5,121,210$ 5,997,006$
The $293,303 reported as deferred outflows of resources related to pensions resulting from city
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ending December 31, 2025. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2025 (172,132)$
2026 799,329$
2027 (520,267)$
2028 (1,300,598)$
2029 24,569$
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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:
Asset Class
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 %
Long-Term Expected
Allocation
Target
Real Rate of Return
F. Actuarial Methods and Assumptions
The total pension liability for each of the cost-sharing defined benefit plans was determined by an
actuarial valuation as of June 30, 2024, using the 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 7.00 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 investment return rates considered
reasonable by the actuary. An investment return of 7.00 percent is within that range.
Inflation is assumed to be 2.25 percent for the General Employees Plan and the Police and Fire Plan.
Benefit increases after retirement are assumed to be 1.25 percent for the General Employees Plan and
1.00 percent for the Police and Fire Plan.
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 27 years of service. In the Police and Fire Plan, salary
growth assumptions range in annual increments 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 General
Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and
became effective with the July 1, 2023 actuarial valuation. The Police and Fire Plan was reviewed
in 2024. The PERA anticipates the experience study will be approved by the Legislative Commission on
Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation.
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The following changes in actuarial assumptions and plan provisions occurred in 2024:
1. GERF
CHANGES IN ACTUARIAL ASSUMPTIONS
• Rates of merit and seniority were adjusted, resulting in slightly higher rates.
• Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced
retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early
retirement rates for Tier 1 and Tier 2 members.
• Minor increase in assumed withdrawals for males and females.
• Lower rates of disability.
• Continued use of Pub-2010 General Mortality Table, with slight rate adjustments as
recommended in the most recent experience study.
• Minor changes to form of payment assumptions for male and female retirees.
• Minor changes to assumptions made with respect to missing participant data.
CHANGES IN PLAN PROVISIONS
• The workers’ compensation offset for disability benefits was eliminated. The actuarial
equivalent factors were updated to reflect the changes in assumptions.
2. PEPFF
CHANGES IN PLAN PROVISIONS
• The state contribution of $9.0 million per year will continue until the earlier of 1) both the
Police and Fire Plan and the State Patrol Retirement Fund attain 90.00 percent funded status
for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The
contribution was previously due to expire after attaining a 90.00 percent funded status for
one year.
• The additional $9.0 million contribution will continue until the Police and Fire Plan is fully
funded for a minimum of three consecutive years on an actuarial value of assets basis, or
July 1, 2048, whichever is earlier. This contribution was previously due to expire upon
attainment of fully funded status on an actuarial value of assets basis for one year (or July 1,
2048 if earlier).
G. Discount Rate
The discount rate used to measure the total pension liability in 2024 was 7.00 percent. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net
position of the General Employees Fund and the Police and Fire Fund were projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
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NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
H. Pension Liability Sensitivity
The following table presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding section, as well as what the
City’s proportionate share of the net pension liability (asset) would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
City’s proportionate share of
the GERF net pension liability
City’s proportionate share of the
PEPFF net pension liability (asset)
62,581$
7,148,211$ (361,370)$
5,273,469$
3,024,807$
2,414,414$
1% Decrease in
(6.00%)
1% Increase in
Discount Rate
Current
Discount RateDiscount Rate
(7.00%)(8.00%)
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, 2022, the plan covered 50 active firefighters and 12 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 equivalent to $9,500 per year of service. The plan benefit
level increased from $8,500 to $9,500 per year of service since the previous valuation.
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.
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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 $232,490 in fire state aid to the plan on behalf of the Department for
the year ended December 31, 2024, 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, 2024 were $0; however, the City made a voluntary contribution of
$150,000 to the plan.
D. Pension Costs
At December 31, 2024, the City reported a net pension liability (asset) of ($1,558,145) for the plan. The
net pension liability (asset) was measured as of December 31, 2023. The total pension liability used to
calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by
applying an actuarial formula to specific census data certified by the Department as of December 31,
2022. Update procedures were used to roll forward the total pension liability to the measurement date.
The following table presents the changes in net pension liability (asset) during the year:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a)(b)(a-b)
Beginning balance 2,504,952$ 4,041,505$ (1,536,553)$
Changes for the year
Service cost 168,434 – 168,434
Interest 139,161 – 139,161
Difference between expected and actual experience 253,683 – 253,683
Changes in benefit terms 227,671 – 227,671
Contributions (state and local)– 360,460 (360,460)
Net investment income – 474,981 (474,981)
Benefit payments (45,415) (45,415) –
Administrative costs – (24,900) 24,900
Total net changes 743,534 765,126 (21,592)
Ending balance 3,248,486$ 4,806,631$ (1,558,145)$
For the year ended December 31, 2024, the City recognized pension revenue of $210,460 and pension
expense of $301,837.
Page 270 of 417
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NOTE 9 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
At December 31, 2024, the City reported deferred inflows of resources and deferred outflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual liability 228,136$ 396,264$
Change of assumptions 112,231 14,104
Net difference between projected and actual earnings on
plan investments 140,875 –
City contributions subsequent to the measurement date 150,000 –
State aid to the City subsequent to the measurement date 232,490 232,490
Total 863,732$ 642,858$
Deferred outflows of resources totaling $382,490 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, 2024. Deferred inflows of resources totaling $232,490 related to state
aid received subsequent to the measurement date will be recognized for its impact on the net pension
liability in the year ending December 31, 2024. Other amounts reported as deferred outflows and inflows
of resources related to the plan will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2025 27,261$
2026 65,392$
2027 99,545$
2028 (58,915)$
2029 (4,626)$
Thereafter (57,783)$
E. Actuarial Methods and Assumptions
The total pension liability (asset) at year-end was determined using the entry-age normal actuarial cost
method and the following actuarial assumptions:
Retirement eligibility at 100 percent service pension at age 50 with 20 years of service,
early vested retirement at age 50 with 10 years of service vested at 60 percent and
increased by 4 percent for each additional year of service up to 20 and eligibility for
deferred service pension payable at age 50 with 20 years of service.
Inflation rate – 2.50% per year
Investment rate of return – 5.25%
20-year municipal bond yield – 4.05%
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NOTE 9 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
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:
Asset Class
Domestic equity 65.74 %4.10 %6.60 %
International equity 9.84 4.64 %7.14 %
Fixed income – 1.05 %3.55 %
Real estate and alternatives 4.90 3.54 %6.04 %
Cash and equivalents 19.52 (0.45) %2.05 %
Total 100.00 %5.25 %
Long-Term
Expected Nominal
Rate of Return
Long-Term
Target Expected Real
Allocation Rate of Return
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 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)(1,396,855)$ (1,558,145)$ (1,711,661)$
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.
Page 272 of 417
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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 GASB codification P52.101 to
pay related benefits for the OPEB Plan.
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 $39,897.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits 11
Active plan members 74
Total members 85
E. Total OPEB Liability of the City
The City’s total OPEB liability of $1,217,039 as of year-end was measured as of December 31, 2023, and
was determined by an actuarial valuation as of December 31, 2022. Update procedures were used to roll
forward the total OPEB liability to the measurement date.
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NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
F. Actuarial Methods and Assumptions
The total OPEB liability was determined using the entry-age normal cost method. Liability gains and
losses and plan changes are recognized immediately, in accordance with GASB Statement No. 75
Alternative Measurement Method requirements. The following actuarial assumptions applied to all
periods included in the measurement, unless otherwise specified:
Discount rate 3.77%
20-year municipal bond yield 3.77%
Inflation rate 2.60%
Healthcare trend rate 8.00% grading to 4.04% over 52 years
The actuarial assumptions used in the latest valuation were based on input from a variety of published
sources of historical and projected future financial data. Each assumption was reviewed for
reasonableness with the source information, as well as for consistency with the other economic
assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal
bond yield rate of 3.77 percent, which was set by considering published rate information for 20-year high
quality, tax-exempt, general obligation municipal bonds as of the measurement date.
Withdrawal rates, retirement rates, mortality rates, and salary scale were based on the July 1, 2014
through June 30, 2018 PERA experience studies.
Assumption changes since the prior measurement date include the following:
• The discount rate was updated from 4.05 percent to 3.77 percent based on recent municipal bond
index rates.
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning balance – January 1, 2024 1,092,823$
Changes for the year
Service cost 100,500
Interest 47,265
Differences between expected and actual experience 1,938
Changes of assumptions 27,044
Benefit payments – employer-financed (52,531)
Total net changes 124,216
Ending balance – December 31, 2024 1,217,039$
Page 274 of 417
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NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability
would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point
higher than the current discount rate:
OPEB discount rate
Total OPEB liability $ 1,317,831 $ 1,122,892
2.77%4.77%
1% Decrease in 1% Increase in
Discount Rate Discount Rate
Current
Discount Rate
$ 1,217,039
3.77%
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:
OPEB healthcare trend rate
Total OPEB liability $ 1,064,887 $ 1,395,654
3.04% over 52 years 5.04% over 52 years
1% Decrease in 1% Increase in
Healthcare Trend Rate Healthcare Trend Rate
7.00% decreasing to 9.00% decreasing to
Current
Healthcare Trend Rate
8.00% decreasing to
4.04% over 52 years
$ 1,217,039
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources
For the current year, the City recognized OPEB expense of $176,747. As of year-end, the City reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Contributions subsequent to the measurement date 39,897$ –$
Deferred outflows of resources reported $39,897 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, 2025.
NOTE 11 – DEFICIT FUND BALANCES
At December 31, 2024, the (nonmajor) Street Improvements Capital Projects Fund reported a deficit fund
balance of $443,866. This deficit is generally due to project or other expenditures incurred in advance of
funding, and will be eliminated through future revenues and other financing sources.
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NOTE 12 – NET POSITION/FUND BALANCES
A. Net Investment in Capital Assets
The government-wide Statement of Net Position at December 31, 2024 includes the City’s net investment
in capital assets, calculated as follows:
Governmental Business-Type
Activities Activities Total
Net investment in capital assets
Capital assets, net 51,760,419$ 51,418,896$ 103,179,315$
Less capital-related long-term debt outstanding (12,107,625) (1,163,511) (13,271,136)
Add unused bond proceeds 2,017,637 – 2,017,637
Total net investment in capital assets 41,670,431$ 50,255,385$ 91,925,816$
B. Governmental Fund Balance Classifications
At December 31, 2024, the City had the following governmental fund balances:
Program Aid Utility Pavement
General and Grants Private Trunk Management Closed Bond Nonmajor Total
Nonspendable
Prepaid items 1,949$ –$ –$ –$ –$ –$ 300$ 2,249$
Restricted
Local Affordable Housing 88,549 – – – – – – 88,549
Economic development – – – – – – 574,408 574,408
Public safety programs – 806,953 – – – – 89,423 896,376
Park improvements – – – – – – 886,457 886,457
PEG fees – – – – – – 221,224 221,224
Recreational projects – – – – – – 1,707,196 1,707,196
Debt service – – – – – – 1,931,968 1,931,968
Total restricted 88,549 806,953 – – – – 5,410,676 6,306,178
Committed
Improvement projects – – 231,373 – – – 305,065 536,438
Utility trunk – – – 9,879,233 – – – 9,879,233
Pavement management – – – – 2,999,996 – – 2,999,996
Park improvements – – – – – – 1,219,338 1,219,338
Ice arena capital – – – – – – 120,228 120,228
Cable communications – – – – – – 695,962 695,962
Capital equipment – – – – – – 815,582 815,582
Trail maintenance – – – – – – 468,738 468,738
Building maintenance – – – – – – 358,618 358,618
Emerald ash borer mitigation – – – – – – 1,280,806 1,280,806
Total committed – – 231,373 9,879,233 2,999,996 – 5,264,337 18,374,939
Assigned
Future debt payments – – – – – 1,519,085 – 1,519,085
Unassigned 11,268,652 – – – – – (443,866) 10,824,786
Total 11,359,150$ 806,953$ 231,373$ 9,879,233$ 2,999,996$ 1,519,085$ 10,231,447$ 37,027,237$
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,
2024, the unassigned fund balance of the General Fund was 56.8 percent of the subsequent year’s
budgeted expenditures and transfers out.
Page 276 of 417
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NOTE 13 – 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 $51,714 of property tax increment in the current year. The remaining principal balance
as of December 31, 2024 for this agreement was $1,060,366. 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 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. Contracts Payable
At December 31, 2024, the City is committed to various construction contracts for the improvement of
city property. The City’s remaining commitment under these contracts is approximately $1,968,920 at
year-end.
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Page 278 of 417
REQUIRED SUPPLEMENTARY INFORMATION
Page 279 of 417
Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.0623% 3,228,709$ –$ 3,228,709$ 3,660,794$ 88.20% 78.2%
06/30/2016 0.0583% 4,733,671$ 61,864$ 4,795,535$ 3,618,268$ 130.83% 68.9%
06/30/2017 0.0597% 3,811,209$ 47,942$ 3,859,151$ 3,847,797$ 99.05% 75.9%
06/30/2018 0.0607% 3,367,387$ 110,472$ 3,477,859$ 4,034,230$ 83.47% 79.5%
06/30/2019 0.0613% 3,389,141$ 105,329$ 3,494,470$ 4,340,798$ 78.08% 80.2%
06/30/2020 0.0652% 3,909,039$ 120,522$ 4,029,561$ 4,647,499$ 84.11% 79.1%
06/30/2021 0.0673% 2,874,012$ 87,697$ 2,961,709$ 4,840,585$ 59.37% 87.0%
06/30/2022 0.0656% 5,195,542$ 152,265$ 5,347,807$ 4,915,505$ 105.70% 76.7%
06/30/2023 0.0663% 3,707,422$ 102,159$ 3,809,581$ 5,255,710$ 70.54% 83.1%
06/30/2024 0.0653% 2,414,414$ 62,432$ 2,476,846$ 5,507,711$ 43.84% 89.1%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
271,726$ 271,726$ –$ 3,623,009$ 7.50%
279,774$ 279,774$ –$ 3,730,581$ 7.50%
290,225$ 290,225$ –$ 3,872,895$ 7.49%
312,863$ 312,863$ –$ 4,171,664$ 7.50%
340,100$ 340,100$ –$ 4,534,664$ 7.50%
372,817$ 372,817$ –$ 4,970,884$ 7.50%
371,254$ 371,254$ –$ 4,950,057$ 7.50%
360,931$ 360,931$ –$ 4,814,017$ 7.50%
396,285$ 396,285$ –$ 5,283,820$ 7.50%
438,852$ 438,852$ –$ 5,851,374$ 7.50%
Year-End Date
City Fiscal
12/31/2016
12/31/2015
12/31/2018
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2024
12/31/2023
Year Ended December 31, 2024
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
12/31/2017
12/31/2018
12/31/2023
CITY OF FARMINGTON
PERA – General Employees Retirement Fund
PERA – General Employees Retirement Fund
Schedule of City Contributions
Year-End Date
City Fiscal
12/31/2016
12/31/2015
12/31/2017
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2024
Year Ended December 31, 2024
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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
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2015 0.2450% 2,783,773$ –$ 2,783,773$ 2,242,616$ 124.13%86.6%
06/30/2016 0.2430% 9,752,013$ –$ 9,752,013$ 2,344,593$ 415.94%63.9%
06/30/2017 0.2370% 3,199,781$ –$ 3,199,781$ 2,431,157$ 131.62%85.4%
06/30/2018 0.2300% 2,451,563$ –$ 2,451,563$ 2,424,781$ 101.10%88.8%
06/30/2019 0.2381% 2,534,816$ –$ 2,534,816$ 2,513,262$ 100.86%89.3%
06/30/2020 0.2410% 3,176,637$ 74,843$ 3,251,480$ 2,720,577$ 116.76%87.2%
06/30/2021 0.2436% 1,880,335$ 84,551$ 1,964,886$ 2,879,369$ 65.30%93.7%
06/30/2022 0.2474% 10,765,871$ 470,299$ 11,236,170$ 3,003,762$ 358.41%70.5%
06/30/2023 0.2456% 4,241,193$ 170,843$ 4,412,036$ 3,225,401$ 131.49%86.5%
06/30/2024 0.2299% 3,024,807$ 115,304$ 3,140,111$ 3,183,751$ 95.01%90.2%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
374,503$ 374,503$ –$ 2,311,741$ 16.20%
384,033$ 384,033$ –$ 2,370,262$ 16.20%
395,621$ 395,621$ –$ 2,442,894$ 16.19%
396,439$ 396,439$ –$ 2,447,155$ 16.20%
442,727$ 442,727$ –$ 2,611,958$ 16.95%
515,909$ 515,909$ –$ 2,914,733$ 17.70%
526,699$ 526,699$ –$ 2,975,703$ 17.70%
536,433$ 536,433$ –$ 3,030,694$ 17.70%
560,404$ 560,404$ –$ 3,166,126$ 17.70%
565,880$ 565,880$ –$ 3,194,725$ 17.71%
City Fiscal
Year Ended December 31, 2024
Year Ended December 31, 2024
12/31/2017
12/31/2015
12/31/2024
12/31/2018
12/31/2019
12/31/2020
Year-End Date
12/31/2016
12/31/2021
12/31/2022
12/31/2023
12/31/2024
CITY OF FARMINGTON
PERA – Public Employees Police and Fire Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
PERA – Public Employees Police and Fire Fund
Schedule of City Contributions
12/31/2016
12/31/2015
Year-End Date
City Fiscal
12/31/2017
12/31/2018
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
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Page 281 of 417
City fiscal year-end December 31,2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Relief Association year-end
(measurement date)
December 31,2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total pension liability
Service cost 69,285$ 71,190$ 86,788$ 93,501$ 112,754$ 163,690$ 177,922$ 190,066$ 218,873$ 168,434$
Interest 110,249 92,788 82,702 95,308 105,418 118,151 119,981 125,065 149,757 139,161
Differences between expected
and actual experience – – (14,504) – (13,870) – (51,474) – (425,928) 253,683
Changes of assumptions – 116,780 (15,678) – 86,336 61,961 18,063 – (11,048) –
Changes of benefits terms – – 143,662 171,894 169,797 – (368) 238,686 – 227,671
Benefit payments (265,643) (596,137) (1,194) (292,064) (156,771) – (254,977) (103,887) (120,699) (45,415)
Net change in
total pension liability (86,109) (315,379) 281,776 68,639 303,664 343,802 9,147 449,930 (189,045) 743,534
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 2,244,067 2,693,997 2,504,952
End of year 1,552,418$ 1,237,039$ 1,518,815$ 1,587,454$ 1,891,118$ 2,234,920$ 2,244,067$ 2,693,997$ 2,504,952$ 3,248,486$
Plan fiduciary net position
Contributions (state and local)283,461$ 291,915$ 291,510$ 301,508$ 297,548$ 301,797$ 315,539$ 321,822$ 337,645$ 360,460$
Net investment income 84,277 (33,543) 163,457 342,985 (168,667) 508,896 366,662 419,642 (566,313) 474,981
Benefit payments (265,643) (596,137) (1,194) (292,064) (156,771) – (254,977) (103,887) (120,699) (45,415)
Administrative costs (10,848) (15,756) (17,200) (18,282) (16,720) (18,400) (16,950) (18,750) (17,230) (24,900)
Net change in plan
fiduciary net position 91,247 (353,521) 436,573 334,147 (44,610) 792,293 410,274 618,827 (366,597) 765,126
Plan fiduciary net position
Beginning of year 2,122,872 2,214,119 1,860,598 2,297,171 2,631,318 2,586,708 3,379,001 3,789,275 4,408,102 4,041,505
End of year 2,214,119$ 1,860,598$ 2,297,171$ 2,631,318$ 2,586,708$ 3,379,001$ 3,789,275$ 4,408,102$ 4,041,505$ 4,806,631$
Net pension liability (asset) (661,701)$ (623,559)$ (778,356)$ (1,043,864)$ (695,590)$ (1,144,081)$ (1,545,208)$ (1,714,105)$ (1,536,553)$ (1,558,145)$
Plan fiduciary net position
as a percentage of the
total pension liability 142.62%150.41%151.25%165.76%136.78%151.19%168.86%163.63%161.34%147.97%
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, 2024
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Page 282 of 417
Contributions in
Relation to the
Statutorily Statutorily Contribution Voluntary
Required Required Deficiency City
Contributions (a)Contributions (b)(Excess) (a-b)Contribution
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
–$ –$ –$ 150,000$
CITY OF FARMINGTON
City Fiscal
Year-End Date
12/31/2017
12/31/2015
12/31/2016
Year Ended December 31, 2024
12/31/2024
12/31/2023
Schedule of City Contributions
Farmington Fire Fighters’ Relief Association
12/31/2018
12/31/2019
12/31/2020
12/31/2021
12/31/2022
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Page 283 of 417
2018 2019 2020 2021 2022 2023 2024
Total OPEB liability
Service cost 113,275$ 85,451$ 74,564$ 92,066$ 114,711$ 121,679$ 100,500$
Interest 40,190 40,509 49,025 26,170 26,625 27,861 47,265
Differences between expected
and actual experience – – (424,559) 489,862 3,834 141,132 1,938
Changes of assumptions 28,356 (57,133) 79,584 (278,274) 6,058 (395,696) 27,044
Benefit payments (38,891) (40,361) (33,373) (45,998) (57,384) (65,854) (52,531)
Net change in total OPEB liability 142,930 28,466 (254,759) 283,826 93,844 (170,878) 124,216
Total OPEB liability – beginning of year 969,394 1,112,324 1,140,790 886,031 1,169,857 1,263,701 1,092,823
Total OPEB liability – end of year 1,112,324$ 1,140,790$ 886,031$ 1,169,857$ 1,263,701$ 1,092,823$ 1,217,039$
Covered-employee payroll 5,800,000$ 6,000,000$ 7,300,000$ 7,300,000$ 8,600,000$ 9,200,000$ 9,200,000$
Total OPEB liability as a percentage
of covered-employee payroll 19.18% 19.01% 12.14% 16.03% 14.69% 11.88% 13.23%
Note 1:
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.
Fiscal Year
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, 2024
No plan assets are accumulated in a trust that meets the criteria in GASB codification P52.101 to pay related benefits for the OPEB plan.
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Page 284 of 417
CITY OF FARMINGTON
Notes to Required Supplementary Information
December 31, 2024
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PERA – GENERAL EMPLOYEES RETIREMENT FUND
2024 CHANGES IN ACTUARIAL ASSUMPTIONS
• Rates of merit and seniority were adjusted, resulting in slightly higher rates.
• Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced
retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early
retirement rates for Tier 1 and Tier 2 members.
• Minor increase in assumed withdrawals for males and females.
• Lower rates of disability.
• Continued use of Pub-2010 General Mortality Table, with slight rate adjustments as
recommended in the most recent experience study.
• Minor changes to form of payment assumptions for male and female retirees.
• Minor changes to assumptions made with respect to missing participant data.
2024 CHANGES IN PLAN PROVISIONS
• The workers’ compensation offset for disability benefits was eliminated. The actuarial
equivalent factors were updated to reflect the changes in assumptions.
2023 CHANGES IN ACTUARIAL ASSUMPTIONS
• The investment return assumption and single discount rate were changed from 6.50 percent to
7.00 percent.
2023 CHANGES IN PLAN PROVISIONS
• An additional one-time direct state aid contribution of $170.1 million will be contributed to the
Plan on October 1, 2023.
• The vesting period of those hired after June 30, 2010, was changed from five years of allowable
service to three years of allowable service.
• The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
• A one-time, noncompounding benefit increase of 2.50 percent minus the actual
2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024.
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
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.
Page 285 of 417
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PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
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 chang ed 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.
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.
Page 286 of 417
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PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
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.
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.
Page 287 of 417
-75-
PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
2015 CHANGES IN ACTUARIAL ASSUMPTIONS
• The assumed post-retirement benefit increase rate was changed from 1.00 percent per year
through 2030 and 2.50 percent per year thereafter, to 1.00 percent per year through 2035, and
2.50 percent per year thereafter.
2015 CHANGES IN PLAN PROVISIONS
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892.0 million. Upon consolidation, state and employer
contributions were revised; the state’s contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
Page 288 of 417
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PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND
2024 CHANGES IN PLAN PROVISIONS
• The state contribution of $9.0 million per year will continue until the earlier of 1) both the
Police and Fire Plan and the State Patrol Retirement Fund attain 90.00 percent funded status
for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The
contribution was previously due to expire after attaining a 90.00 percent funded status for
one year.
• The additional $9.0 million contribution will continue until the Police and Fire Plan is fully
funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1,
2048, whichever is earlier. This contribution was previously due to expire upon attainment of
fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier).
2023 CHANGES IN ACTUARIAL ASSUMPTIONS
• The investment return assumption was changed from 6.50 percent to 7.00 percent.
• The single discount rate changed from 5.40 percent to 7.00 percent.
2023 CHANGES IN PLAN PROVISIONS
• Additional one-time direct state aid contribution of $19.4 million will be contributed to the
Plan on October 1, 2023.
• Vesting requirement for new hires after June 30, 2014, was changed from a graded 20 -year
vesting schedule to a graded 10-year vesting schedule, with 50.00 percent vesting after
five years, increasing incrementally to 100.00 percent after 10 years.
• A one-time, noncompounding benefit increase of 3.00 percent will be payable in a lump sum
for calendar year 2024 by March 31, 2024.
• Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability
benefit for a psychological condition relating to the member’s occupation.
• The total and permanent duty disability benefit was increased, effective July 1, 2023.
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
• This single discount rate changed from 6.50 percent to 5.40 percent.
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.
Page 289 of 417
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PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND
2021 CHANGES IN ACTUARIAL ASSUMPTIONS (CONTINUED)
• 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.
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.
Page 290 of 417
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PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2017 CHANGES IN ACTUARIAL ASSUMPTIONS (CONTINUED)
• 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.
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.
Page 291 of 417
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FARMINGTON FIRE FIGHTERS’ RELIEF ASSOCIATION
2024 CHANGES IN PLAN PROVISIONS
• The plan benefit level increased from $8,500 to $9,500 per year of service.
2023 CHANGES IN ACTUARIAL ASSUMPTIONS
• The disability, mortality, and withdrawal assumptions were updated from the rates used in the
July 1, 2020 Minnesota PERA Police and Fire Plan actuarial valuation to the rates used in the
July 1, 2022 Minnesota PERA Police and Fire Plan actuarial valuation.
• The inflation rate was changed from 2.25 percent to 2.50 percent.
2022 CHANGES IN PLAN PROVISIONS
• The plan benefit level increased from $7,500 to $8,500 per year of service.
2021 CHANGES IN ACTUARIAL ASSUMPTIONS
• The disability, mortality, and withdrawal 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 members 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.
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.
Page 292 of 417
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FARMINGTON FIRE FIGHTERS’ RELIEF ASSOCIATION (CONTINUED)
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.
Page 293 of 417
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OTHER POST-EMPLOYMENT BENEFITS PLAN
2024 CHANGES IN ACTUARIAL ASSUMPTIONS
• The actuarial assumptions for the single discount rate changed from 4.05 percent to
3.77 percent.
2023 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 discount rate was updated from 2.06 percent to 4.05 percent based on recent municipal
bond index rates.
• Membership participation was updated from 65 percent to 50 percent based on experience and
demographics.
2022 CHANGES IN ACTUARIAL ASSUMPTIONS
• The actuarial assumptions for the single discount rate changed from 2.12 percent to
2.06 percent.
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.
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.
Page 294 of 417
SUPPLEMENTARY INFORMATION
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NONMAJOR GOVERNMENTAL FUNDS
The statements that follow are to provide further detail and support additional analysis for the City ’s
nonmajor special revenue, capital projects, and debt service funds.
Page 297 of 417
Special Capital Debt Service
Revenue Projects Fund Total
Assets
Cash and investments 3,006,209$ 6,099,128$ 1,969,737$ 11,075,074$
Receivables
Accounts 181,286 43,331 – 224,617
Interest 17,394 26,637 11,513 55,544
Special assessments
Noncurrent – 421,599 – 421,599
Due from other funds 1,800 – – 1,800
Due from other governments – 30 – 30
Prepaid items 300 – – 300
Total assets 3,206,989$ 6,590,725$ 1,981,250$ 11,778,964$
Liabilities
Accounts and contracts payable 6,745$ 675,766$ 1,590$ 684,101$
Deposits payable 252,802 – – 252,802
Due to other governments 337 – – 337
Due to other funds 56,951 84,035 47,692 188,678
Total liabilities 316,835 759,801 49,282 1,125,918
Deferred inflows of resources
Unavailable revenue – special assessments – 421,599 – 421,599
Fund balances (deficits)
Nonspendable 300 – – 300
Restricted 1,550,288 1,928,420 1,931,968 5,410,676
Committed 1,339,566 3,924,771 – 5,264,337
Unassigned – (443,866) – (443,866)
Total fund balances 2,890,154 5,409,325 1,931,968 10,231,447
Total liabilities, deferred inflows
of resources, and fund balances 3,206,989$ 6,590,725$ 1,981,250$ 11,778,964$
CITY OF FARMINGTON
Nonmajor Governmental Funds
Combining Balance Sheet
as of December 31, 2024
-83-
Page 298 of 417
Special Capital Debt Service
Revenue Projects Fund Total
Revenue
Property taxes 264,920$ –$ 1,763,100$ 2,028,020$
Franchise taxes – 59,503 – 59,503
Intergovernmental – 170,738 – 170,738
Charges for services 429,853 – – 429,853
Investment earnings 101,705 190,063 45,265 337,033
Other
Donations 83,973 190,379 – 274,352
Rentals 13,324 – – 13,324
Miscellaneous 534,878 – – 534,878
Total revenues 1,428,653 610,683 1,808,365 3,847,701
Expenditures
Current
General government – 103,668 – 103,668
Public safety 42,300 33,812 – 76,112
Public works – 833,507 – 833,507
Parks and recreation 483,009 232,814 – 715,823
Economic development 137,901 – – 137,901
Capital outlay
General government – 688 – 688
Public safety – 1,192,892 – 1,192,892
Public works – 2,103,695 – 2,103,695
Parks and recreation 11,891 75,481 – 87,372
Debt service
Principal – 192,484 1,520,000 1,712,484
Interest and fiscal charges – 109,283 302,779 412,062
Total expenditures 675,101 4,878,324 1,822,779 7,376,204
Excess (deficiency) of revenues
over expenditures 753,552 (4,267,641) (14,414) (3,528,503)
Other financing sources (uses)
Sale of capital assets 1,093 86,574 – 87,667
Bonds issued – 3,115,000 – 3,115,000
Premiums on bonds issued – 231,831 – 231,831
Leases issued – 230,633 – 230,633
Transfers in 195,000 3,640,222 – 3,835,222
Transfers out – (100,000) (51,308) (151,308)
Total other financing sources (uses)196,093 7,204,260 (51,308) 7,349,045
Net change in fund balances 949,645 2,936,619 (65,722) 3,820,542
Fund balances
Beginning of year, as previously reported 2,975,615 7,202,467 2,100,445 12,278,527
Change in reporting entity – change in fund structure (1,035,106) (2,010,155) (102,755) (3,148,016)
Change in reporting entity – nonmajor funds to major – (2,719,606) – (2,719,606)
Beginning of year, as restated 1,940,509 2,472,706 1,997,690 6,410,905
End of year 2,890,154$ 5,409,325$ 1,931,968$ 10,231,447$
Year Ended December 31, 2024
CITY OF FARMINGTON
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
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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 – Used to account for the general economic development activities of the
City’s Economic Development Authority.
Special Taxing Areas – Used to account for the development within tax increment districts.
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.
Public Safety Engagement – Used to account for activities related to public outreach aimed at
fostering positive community-police relations, as well as supporting the K9 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
system.
Arena (Ice) – Used to account for the operation and maintenance of the City’s arena, which includes
one sheet of ice and hosts various community activities.
Dakota Broadband – Used to account for the City’s agreement with Dakota Broadband. Reported
within the Economic Development Special Revenue Fund being in 2024.
K-9 – Used to account for the operations and activities related to K-9 program donations and allows
for the expenditure of those revenues for costs related to the City’s K-9 program. Reported within the
Public Safety Engagement Special Revenue Fund beginning in 2024.
Public Safety – Used to account for state aid restricted for public safety program purposes. Reported
within the (major) Program Aid and Grants Special Revenue Fund beginning in 2024.
Page 301 of 417
Police Public
Economic Special Donations Safety
Development Taxing Areas and Forfeitures Engagement
Assets
Cash and investments 686,391$ 134,317$ 14,115$ 77,527$
Receivables
Accounts – – – –
Interest 3,837 785 82 454
Due from other funds 1,800 – – –
Prepaid items 300 – – –
Total assets 692,328$ 135,102$ 14,197$ 77,981$
Liabilities
Accounts and contracts payable 779$ 143$ –$ 2,755$
Deposits payable 250,000 – – –
Due to other governments – – – –
Due to other funds – 1,800 – –
Total liabilities 250,779 1,943 – 2,755
Fund balances
Nonspendable for prepaid items 300 – – –
Restricted for economic development 441,249 133,159 – –
Restricted for public safety programs – – 14,197 75,226
Restricted for park improvements – – – –
Committed for park improvements – – – –
Committed for ice arena capital – – – –
Total fund balances 441,549 133,159 14,197 75,226
Total liabilities and fund balances 692,328$ 135,102$ 14,197$ 77,981$
as of December 31, 2024
Combining Balance Sheet
Nonmajor Special Revenue Funds
CITY OF FARMINGTON
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Park
Improvement Arena Total
2,093,559$ 300$ 3,006,209$
– 181,286 181,286
12,236 – 17,394
– – 1,800
– – 300
2,105,795$ 181,586$ 3,206,989$
–$ 3,068$ 6,745$
– 2,802 252,802
– 337 337
– 55,151 56,951
– 61,358 316,835
– – 300
– – 574,408
– – 89,423
886,457 – 886,457
1,219,338 – 1,219,338
– 120,228 120,228
2,105,795 120,228 2,890,154
2,105,795$ 181,586$ 3,206,989$
-87-
Page 303 of 417
Police Public
Economic Special Donations Safety
Development Taxing Areas and Forfeitures Engagement
Revenues
Property taxes 150,000$ 114,920$ –$ –$
Charges for services – – – –
Investment earnings 19,252 3,499 568 2,355
Other
Donations – – – 60,898
Rentals – – – –
Miscellaneous – – – 2,229
Total revenues 169,252 118,419 568 65,482
Expenditures
Current
Public safety – – 265 42,035
Parks and recreation – – – –
Economic development 82,701 55,200 – –
Capital outlay
Parks and recreation – – – –
Total expenditures 82,701 55,200 265 42,035
Excess (deficiency) of revenues
over expenditures 86,551 63,219 303 23,447
Other financing sources (uses)
Sale of capital assets – – – 1,093
Transfers in 50,000 – – –
Total other financing sources (uses)50,000 – – 1,093
Net change in fund balances 136,551 63,219 303 24,540
Fund balances (deficits)
Beginning of year, as previously reported 274,946 69,940 13,894 50,845
Change in reporting entity – change in fund structure 30,052 – – (159)
Beginning of year, as restated 304,998 69,940 13,894 50,686
End of year 441,549$ 133,159$ 14,197$ 75,226$
Combining Statement of Revenues, Expenditures,
Nonmajor Special Revenue Funds
CITY OF FARMINGTON
Year Ended December 31, 2024
and Changes in Fund Balances
-88-
Page 304 of 417
Park Dakota
Improvement Arena Broadband K-9 Public Safety Total
–$ –$ –$ –$ –$ 264,920$
– 429,853 – – – 429,853
74,954 1,077 – – – 101,705
13,075 10,000 – – – 83,973
7,836 5,488 – – – 13,324
528,934 3,715 – – – 534,878
624,799 450,133 – – – 1,428,653
– – – – – 42,300
8,525 474,484 – – – 483,009
– – – – – 137,901
6,805 5,086 – – – 11,891
15,330 479,570 – – – 675,101
609,469 (29,437) – – – 753,552
– – – – – 1,093
125,000 20,000 – – – 195,000
125,000 20,000 – – – 196,093
734,469 (9,437) – – – 949,645
1,371,326 129,665 30,052 (159) 1,035,106 2,975,615
– – (30,052) 159 (1,035,106) (1,035,106)
1,371,326 129,665 – – – 1,940,509
2,105,795$ 120,228$ –$ –$ –$ 2,890,154$
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-90-
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:
Cable Communications – Used to account for the operations and activities related to the provision of
cable communications for public access.
Capital Equipment – Used to account for the acquisition and replacement of capital equipment, such
as vehicles and machinery, necessary for city operations.
Recreation Facilities – Used to account for capital improvements to city-owned recreation facilities,
including the senior center and ice arena, supporting community activities and any related donations
received for the purpose of funding upgrades.
Street Improvements – Used to account for street construction or improvement projects.
Trail Improvements – Used to account for improvements to city trails.
Municipal Buildings – Used to account for improvements to city buildings.
Capital Projects Reserve – Used to account for residual funds remaining from completed projects and
reserved to finance future capital improvement projects.
Emerald Ash Borer – Used to account for costs associated with emerald ash borer mitigation.
Maintenance – Used to account for maintenance of city roads and facilities. Reported within the
(major) Pavement Management Capital Projects fund beginning in 2024.
Water Trunk – Used to account for the construction and improvement of water trunk infrastructure.
Reported within the (major) Utility Trunk Capital projects Fund beginning in 2024.
Sanitary Sewer Trunk – Used to account for construction and improvement of sanitary sewer trunk
infrastructure. Reported within the (major) Utility Trunk Capital Projects Fund beginning in 2024.
Fire Capital Equipment – Used to account for fire capital equipment and donations to the fire
department. Reported within the Capital Equipment Capital Projects Fund beginning in 2024.
Spruce Street Reconstruction – Used to account for street improvements related to Spruce Street.
Reported within the Street Improvements Capital Projects Fund beginning in 2024.
2024 Street Improvements – Used to account for the 2024 street improvement projects. Reported
within the Street Improvements Capital Projects Fund beginning in 2024.
Page 307 of 417
Cable Capital Recreation Street
Communications Equipment Facilities Improvements
Assets
Cash and investments 868,776$ 821,830$ 1,862,140$ 198,546$
Receivables
Accounts 43,331 – – –
Interest 5,079 4,804 10,885 691
Special assessments
Noncurrent – – – –
Due from other governments – 30 – –
Total assets 917,186$ 826,664$ 1,873,025$ 199,237$
Liabilities
Accounts and contracts payable –$ 11,082$ 76,998$ 559,068$
Due to other funds – – – 84,035
Total liabilities – 11,082 76,998 643,103
Deferred inflows of resources
Unavailable revenue – special assessments – – – –
Fund balances (deficits)
Restricted for public, educational, and
governmental (PEG) fees 221,224 – – –
Restricted for recreational projects – – 1,707,196 –
Committed for cable communications 695,962 – – –
Committed for improvement projects – – 88,831 –
Committed for capital equipment – 815,582 – –
Committed for trail maintenance – – – –
Committed for building maintenance – – – –
Committed for emerald ash borer mitigation – – – –
Unassigned – – – (443,866)
Total fund balances (deficits)917,186 815,582 1,796,027 (443,866)
Total liabilities, deferred inflows
of resources, and fund balances 917,186$ 826,664$ 1,873,025$ 199,237$
CITY OF FARMINGTON
Nonmajor Capital Projects Funds
Combining Balance Sheet
as of December 31, 2024
-91-
Page 308 of 417
Trail Municipal Capital Projects Emerald Ash
Improvements Buildings Reserve Borer Total
473,037$ 356,205$ 216,234$ 1,302,360$ 6,099,128$
– – – – 43,331
2,765 2,413 – – 26,637
– – 421,599 – 421,599
– – – – 30
475,802$ 358,618$ 637,833$ 1,302,360$ 6,590,725$
7,064$ –$ –$ 21,554$ 675,766$
– – – – 84,035
7,064 – – 21,554 759,801
– – 421,599 – 421,599
– – – – 221,224
– – – – 1,707,196
– – – – 695,962
– – 216,234 – 305,065
– – – – 815,582
468,738 – – – 468,738
– 358,618 – – 358,618
– – – 1,280,806 1,280,806
– – – – (443,866)
468,738 358,618 216,234 1,280,806 5,409,325
475,802$ 358,618$ 637,833$ 1,302,360$ 6,590,725$
-92-
Page 309 of 417
Cable Capital Recreation Street
Communications Equipment Facilities Improvements
Revenues
Franchise taxes 59,503$ –$ –$ –$
Intergovernmental – 82,774 19,767 –
Investment earnings 34,618 36,628 39,368 –
Other
Donations – 145,300 45,079 –
Total revenues 94,121 264,702 104,214 –
Expenditures
Current
General government 102,668 – – –
Public safety – 33,812 – –
Public works – – – 300,733
Parks and recreation – – 180,585 –
Capital outlay
General government 688 – – –
Public safety – 1,192,892 – –
Public works – – – 2,101,316
Parks and recreation – – 52,206 –
Debt service
Principal – 192,484 – –
Interest and fiscal charges – 23,710 46,564 39,009
Total expenditures 103,356 1,442,898 279,355 2,441,058
Excess (deficiency) of revenues
over expenditures (9,235) (1,178,196) (175,141) (2,441,058)
Other financing sources (uses)
Sale of capital assets – 86,549 25 –
Bonds issued – – 1,695,000 1,420,000
Premiums on bonds issued – – 111,760 120,071
Leases issued – 230,633 – –
Transfers in – 765,000 – 865,133
Transfers out – – – –
Total other financing sources (uses)– 1,082,182 1,806,785 2,405,204
Net change in fund balances (9,235) (96,014) 1,631,644 (35,854)
Fund balances (deficits)
Beginning of year, as previously reported 926,421 697,570 164,383 (132,740)
Change in reporting entity – change in fund structure – 214,026 – (275,272)
Change in reporting entity – nonmajor funds to major – – – –
Beginning of year, as restated 926,421 911,596 164,383 (408,012)
End of year 917,186$ 815,582$ 1,796,027$ (443,866)$
Year Ended December 31, 2024
and Changes in Fund Balances
Combining Statement of Revenues, Expenditures,
Nonmajor Capital Projects Funds
CITY OF FARMINGTON
-93-
Page 310 of 417
Trail Municipal Capital Projects Emerald Ash
Improvements Buildings Reserve Borer
–$ –$ –$ –$
46,433 – – 21,764
18,136 14,232 – 47,081
– – – –
64,569 14,232 – 68,845
– 1,000 – –
– – – –
– – – 532,774
52,229 – – –
– – – –
– – – –
– – – 2,379
23,275 – – –
– – – –
– – – –
75,504 1,000 – 535,153
(10,935) 13,232 – (466,308)
– – – –
– – – –
– – – –
– – – –
170,000 75,000 – 1,765,089
– – (100,000) –
170,000 75,000 (100,000) 1,765,089
159,065 88,232 (100,000) 1,298,781
309,673 270,386 316,234 (17,975)
– – – –
– – – –
309,673 270,386 316,234 (17,975)
468,738$ 358,618$ 216,234$ 1,280,806$
-94-(continued)
Page 311 of 417
Sanitary
Pavement Water Sewer
Management Maintenance Trunk Trunk
Revenues
Franchise taxes –$ –$ –$ –$
Intergovernmental – – – –
Investment earnings – – – –
Other
Donations – – – –
Total revenues – – – –
Expenditures
Current
General government – – – –
Public safety – – – –
Public works – – – –
Parks and recreation – – – –
Capital outlay
General government – – – –
Public safety – – – –
Public works – – – –
Parks and recreation – – – –
Debt service
Principal – – – –
Interest and fiscal charges – – – –
Total expenditures – – – –
Excess (deficiency) of revenues
over expenditures – – – –
Other financing sources (uses)
Sale of capital assets – – – –
Bonds issued – – – –
Premiums on bonds issued – – – –
Leases issued – – – –
Transfers in – – – –
Transfers out – – – –
Total other financing sources (uses)– – – –
Net change in fund balances – – – –
Fund balances (deficits)
Beginning of year, as previously reported 523,005 2,196,601 1,027,237 982,918
Change in reporting entity – change in fund structure 2,196,601 (2,196,601) (1,027,237) (982,918)
Change in reporting entity – nonmajor funds to major (2,719,606) – – –
Beginning of year, as restated – – – –
End of year –$ –$ –$ –$
CITY OF FARMINGTON
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances (continued)
Year Ended December 31, 2024
-95-
Page 312 of 417
Fire Spruce
Capital Street 2024 Street
Equipment Reconstruction Improvements Total
–$ –$ –$ 59,503$
– – – 170,738
– – – 190,063
– – – 190,379
– – – 610,683
– – – 103,668
– – – 33,812
– – – 833,507
– – – 232,814
– – – 688
– – – 1,192,892
– – – 2,103,695
– – – 75,481
– – – 192,484
– – – 109,283
– – – 4,878,324
– – – (4,267,641)
– – – 86,574
– – – 3,115,000
– – – 231,831
– – – 230,633
– – – 3,640,222
– – – (100,000)
– – – 7,204,260
– – – 2,936,619
214,026 (209,989) (65,283) 7,202,467
(214,026) 209,989 65,283 (2,010,155)
– – – (2,719,606)
– – – 2,472,706
–$ –$ –$ 5,409,325$
-96-
Page 313 of 417
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Page 314 of 417
-97-
NONMAJOR DEBT SERVICE FUND
The General Debt Service Fund is used to account for the accumulation of resources for the payment of
principal and interest on general obligation debt obligations other than those issued for and serviced by an
enterprise fund. The City maintains accounts within the fund to internally track funding sources for the
various types of general obligation bonds outstanding.
Street Reconstruction Bonds – This account is used to accumulate resources for debt service related to
the City’s outstanding general obligation street reconstruction bond issues.
Capital Improvement Bonds – This account is used to account for the repayment of general obligation
bonds issued to finance public facility improvements, excluding roads and utilities. An internal fund
formerly reported here is being reported within the Utility Trunk Capital Projects Fund beginning in
2024.
Equipment Certificates – This account is used to account for the repayment of equipment certificates
used to finance the purchase of city equipment.
Tax Abatement Bonds – This account is used to account for the repayment of bonds issued under
Minnesota’s tax abatement law to finance public improvements.
2019A General Obligation Street Construction Bonds – The bonds were issued to fund the Westview
Street improvement project. Reported within the Street Reconstruction Bonds Debt Service Account
beginning in 2024.
2022A General Obligation Street Construction Bonds – The bonds were issued to fund the Spruce
Street and Parking Lot improvement projects. Reported within the Street Reconstruction Bonds Debt
Service Account beginning in 2024.
Page 315 of 417
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Page 316 of 417
Street Capital Tax
Reconstruction Improvement Equipment Abatement
Bonds Bonds Certificates Bonds Total
Assets
Cash and investments 969,689$ 708,341$ 291,707$ –$ 1,969,737$
Receivables
Interest 5,668 4,140 1,705 – 11,513
Total assets 975,357$ 712,481$ 293,412$ –$ 1,981,250$
Liabilities
Accounts and contracts payable 625$ 654$ 155$ 156$ 1,590$
Due to other funds – 47,692 – – 47,692
Total liabilities 625 48,346 155 156 49,282
Fund balances (deficits)
Restricted for debt service 974,732 664,135 293,257 (156) 1,931,968
Total liabilities and
fund balances 975,357$ 712,481$ 293,412$ –$ 1,981,250$
CITY OF FARMINGTON
General Debt Service Fund
Combining Balance Sheet by Account
as of December 31, 2024
-98-
Page 317 of 417
Street Capital Tax
Reconstruction Improvement Equipment Abatement
Bonds Bonds Certificates Bonds
Revenues
Property taxes 764,662$ 732,000$ 266,438$ –$
Investment earnings 22,718 17,132 5,415 –
Total revenues 787,380 749,132 271,853 –
Expenditures
Debt service
Principal 740,000 560,000 220,000 –
Interest and fiscal charges 199,296 73,421 29,906 156
Total expenditures 939,296 633,421 249,906 156
Excess (deficiency) of revenues
over expenditures (151,916) 115,711 21,947 (156)
Other financing (uses)
Transfers out (51,308) – – –
Net change in fund balances (203,224) 115,711 21,947 (156)
Fund balances (deficits)
Beginning of year, as previously reported 504,356 651,179 271,310 –
Change in reporting entity – change in fund structure 673,600 (102,755) – –
Beginning of year, as restated 1,177,956 548,424 271,310 –
End of year 974,732$ 664,135$ 293,257$ (156)$
CITY OF FARMINGTON
General Debt Service Fund
Combining Schedule of Revenues, Expenditures,
and Changes in Fund Balances by Account
Year Ended December 31, 2024
-99-
Page 318 of 417
2019A G.O.2022A G.O.
Street Street
Construction Construction
Bonds Bonds Total
–$ –$ 1,763,100$
– – 45,265
– – 1,808,365
– – 1,520,000
– – 302,779
– – 1,822,779
– – (14,414)
– – (51,308)
– – (65,722)
269,779 403,821 2,100,445
(269,779) (403,821) (102,755)
– – 1,997,690
–$ –$ 1,931,968$
-100-
Page 319 of 417
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Page 320 of 417
-101-
BUDGETARY COMPARISON SCHEDULES
Utility Trunk Capital Projects Fund
Pavement Management Capital Projects Fund
Closed Bond Debt Service Fund
Nonmajor Special Revenue Funds
Economic Development
Special Taxing Areas
Police Donations and Forfeitures
Park Improvement
Arena
Nonmajor Capital Projects Funds
Cable Communications
Capital Equipment
Recreation Facilities
Street Improvements
State Aid Construction
Trail Improvements
Municipal Buildings
Capital Projects Reserve
Emerald Ash Borer
Nonmajor Debt Service Fund
General
Page 321 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Charges for services 588,400$ 2,242,116$ 1,653,716$
Investment earnings – 356,053 356,053
Total revenues 588,400 2,598,169 2,009,769
Expenditures
Current
Public works – 200,053 200,053
Excess of revenues over expenditures 588,400 2,398,116 1,809,716
Other financing sources
Transfers in 96,000 – (96,000)
Net change in fund balances 684,400$ 2,398,116 1,713,716$
Fund balances
Beginning of year, as previously reported 5,368,207
Change in reporting entity – change in fund structure 2,112,910
Beginning of year, as restated 7,481,117
End of year 9,879,233$
CITY OF FARMINGTON
Utility Trunk Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-102-
Page 322 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 10,395$ 10,395$
Charges for service – 53,240 53,240
Investment earnings – 131,151 131,151
Total revenues – 194,786 194,786
Expenditures
Current
Public works 1,008,000 718,396 (289,604)
Excess (deficiency) of revenues
over expenditures (1,008,000) (523,610) 484,390
Other financing sources
Transfers in 804,000 804,000 –
Net change in fund balances (204,000)$ 280,390 484,390$
Fund balances
Beginning of year 2,719,606
End of year 2,999,996$
CITY OF FARMINGTON
Pavement Management Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-103-
Page 323 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Special assessments 437,000$ 278,113$ (158,887)$
Investment earnings – 54,760 54,760
Total revenues 437,000 332,873 (104,127)
Other financing sources (uses)
Transfers in – 51,308 51,308
Transfers out (463,120) (463,120) –
Total other financing sources (uses)(463,120) (411,812) 51,308
Net change in fund balances (26,120)$ (78,939) (52,819)$
Fund balances
Beginning of year 1,598,024
End of year 1,519,085$
CITY OF FARMINGTON
Closed Bond Debt Service Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-104-
Page 324 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Property taxes 150,000$ 150,000$ –$
Investment earnings 1,000 19,252 18,252
Total revenues 151,000 169,252 18,252
Expenditures
Current
Economic development 150,000 82,701 (67,299)
Excess of revenues over expenditures 1,000 86,551 85,551
Other financing sources
Transfers in 50,000 50,000 –
Net change in fund balances 51,000$ 136,551 85,551$
Fund balances
Beginning of year, as previously reported 274,946
Change in reporting entity – change in fund structure 30,052
Beginning of year, as restated 304,998
End of year 441,549$
CITY OF FARMINGTON
Economic Development Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-105-
Page 325 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Property taxes 125,000$ 114,920$ (10,080)$
Investment earnings 400 3,499 3,099
Total revenues 125,400 118,419 (6,981)
Expenditures
Current
Economic development 117,850 55,200 (62,650)
Net change in fund balances 7,550$ 63,219 55,669$
Fund balances
Beginning of year 69,940
End of year 133,159$
CITY OF FARMINGTON
Special Taxing Areas Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-106-
Page 326 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Investment earnings 50$ 568$ 518$
Expenditures
Current
Public safety 7,500 265 (7,235)
Excess (deficiency) of revenues
over expenditures (7,450) 303 7,753
Other financing sources
Sale of capital assets 10,000 – (10,000)
Net change in fund balances 2,550$ 303 (2,247)$
Fund balances
Beginning of year 13,894
End of year 14,197$
CITY OF FARMINGTON
Police Donations and Forfeitures Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-107-
Page 327 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Investment earnings 1,000$ 74,954$ 73,954$
Other
Donations – 13,075 13,075
Rentals 7,560 7,836 276
Miscellaneous 50,000 528,934 478,934
Total revenues 58,560 624,799 566,239
Expenditures
Current
Parks and recreation 7,000 8,525 1,525
Capital outlay
Parks and recreation – 6,805 6,805
Total expenditures 7,000 15,330 8,330
Excess of revenues
over expenditures 51,560 609,469 557,909
Other financing sources
Transfers in 125,000 125,000 –
Net change in fund balances 176,560$ 734,469 557,909$
Fund balances
Beginning of year 1,371,326
End of year 2,105,795$
CITY OF FARMINGTON
Park Improvement Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-108-
Page 328 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Charges for services 429,500$ 429,853$ 353$
Investment earnings 400 1,077 677
Other
Donations 10,000 10,000 –
Rentals 6,500 5,488 (1,012)
Miscellaneous – 3,715 3,715
Total revenues 446,400 450,133 3,733
Expenditures
Current
Parks and recreation 495,051 474,484 (20,567)
Capital outlay
Parks and recreation 43,000 5,086 (37,914)
Total expenditures 538,051 479,570 (58,481)
Excess (deficiency) of revenues
over expenditures (91,651) (29,437) 62,214
Other financing sources
Transfers in 20,000 20,000 –
Net change in fund balances (71,651)$ (9,437) 62,214$
Fund balances
Beginning of year 129,665
End of year 120,228$
CITY OF FARMINGTON
Arena Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-109-
Page 329 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Franchise taxes 77,000$ 59,503$ (17,497)$
Investment earnings – 34,618 34,618
Total revenues 77,000 94,121 17,121
Expenditures
Current
General government 96,850 102,668 5,818
Capital outlay
General government 20,000 688 (19,312)
Total expenditures 116,850 103,356 (13,494)
Net change in fund balances (39,850)$ (9,235) 30,615$
Fund balances
Beginning of year 926,421
End of year 917,186$
CITY OF FARMINGTON
Cable Communications Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-110-
Page 330 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Intergovernmental 215,000$ 82,774$ (132,226)$
Investment earnings – 36,628 36,628
Other
Donations – 145,300 145,300
Total revenues 215,000 264,702 49,702
Expenditures
Current
Public safety 15,650 33,812 18,162
Capital outlay
Public safety 910,500 1,192,892 282,392
Debt service
Principal – 192,484 192,484
Interest and fiscal charges – 23,710 23,710
Total expenditures 926,150 1,442,898 516,748
Excess (deficiency) of revenues
over expenditures (711,150) (1,178,196) (467,046)
Other financing sources
Sale of capital assets 48,000 86,549 38,549
Leases issued – 230,633 230,633
Transfers in 550,000 765,000 215,000
Total other financing sources 598,000 1,082,182 484,182
Net change in fund balances (113,150)$ (96,014) 17,136$
Fund balances
Beginning of year, as previously reported 697,570
Change in reporting entity – change in fund structure 214,026
Beginning of year, as restated 911,596
End of year 815,582$
CITY OF FARMINGTON
Capital Equipment Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-111-
Page 331 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 19,767$ 19,767$
Investment earnings – 39,368 39,368
Other
Donations 20,000 45,079 25,079
Total revenues 20,000 104,214 84,214
Expenditures
Current
Parks and recreation 5,000 180,585 175,585
Capital outlay
Parks and recreation 6,000 52,206 46,206
Debt service
Interest and fiscal charges – 46,564 46,564
Total expenditures 11,000 279,355 268,355
Excess (deficiency) of revenues
over expenditures 9,000 (175,141) (184,141)
Other financing sources
Sale of capital assets – 25 25
Bonds issued – 1,695,000 1,695,000
Premiums on bonds issued – 111,760 111,760
Total other financing sources – 1,806,785 1,806,785
Net change in fund balances 9,000$ 1,631,644 1,622,644$
Fund balances
Beginning of year 164,383
End of year 1,796,027$
CITY OF FARMINGTON
Recreation Facilities Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-112-
Page 332 of 417
Original and Variance With
Final Budget Actual Final Budget
Expenditures
Current
Public works 3,000,000$ 300,733$ (2,699,267)$
Capital outlay
Public works – 2,101,316 2,101,316
Debt service
Interest and fiscal charges – 39,009 39,009
Total expenditures 3,000,000 2,441,058 (558,942)
Other financing sources
Bonds issued 1,420,000 1,420,000 –
Premiums on bonds issued 80,000 120,071 40,071
Transfers in 1,500,000 865,133 (634,867)
Total other financing sources 3,000,000 2,405,204 (594,796)
Net change in fund balances –$ (35,854) (35,854)$
Fund balances (deficits)
Beginning of year, as previously reported (132,740)
Change in reporting entity – change in fund structure (275,272)
Beginning of year, as restated (408,012)
End of year (443,866)$
CITY OF FARMINGTON
Street Improvements Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-113-
Page 333 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 46,433$ 46,433$
Investment earnings – 18,136 18,136
Total revenues – 64,569 64,569
Expenditures
Current
Parks and recreation 170,000 52,229 (117,771)
Capital outlay
Parks and recreation – 23,275 23,275
Total expenditures 170,000 75,504 (94,496)
Excess (deficiency) of revenues
over expenditures (170,000) (10,935) 159,065
Other financing sources
Transfers in 170,000 170,000 –
Net change in fund balances –$ 159,065 159,065$
Fund balances
Beginning of year 309,673
End of year 468,738$
CITY OF FARMINGTON
Trail Improvements Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-114-
Page 334 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Investment earnings –$ 14,232$ 14,232$
Expenditures
Current
General government 75,000 1,000 (74,000)
Excess (deficiency) of revenues
over expenditures (75,000) 13,232 88,232
Other financing sources
Transfers in 75,000 75,000 –
Net change in fund balances –$ 88,232 88,232$
Fund balances
Beginning of year 270,386
End of year 358,618$
CITY OF FARMINGTON
Municipal Buildings Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-115-
Page 335 of 417
Original and Variance With
Final Budget Actual Final Budget
Other financing (uses)
Transfers out (100,000)$ (100,000)$ –$
Fund balances
Beginning of year 316,234
End of year 216,234$
CITY OF FARMINGTON
Capital Projects Reserve Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-116-
Page 336 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 21,764$ 21,764$
Investment earnings – 47,081 47,081
– 68,845 68,845
Expenditures
Current
Public works 300,000 532,774 232,774
Capital outlay
Public works – 2,379 2,379
Total expenditures 300,000 535,153 235,153
Excess (deficiency) of revenues
over expenditures (300,000) (466,308) (166,308)
Other financing sources
Transfers in 300,000 1,765,089 1,465,089
Net change in fund balances –$ 1,298,781 1,298,781$
Fund balances (deficits)
Beginning of year (17,975)
End of year 1,280,806$
CITY OF FARMINGTON
Emerald Ash Borer Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-117-
Page 337 of 417
Original and Variance With
Final Budget Actual Final Budget
Revenues
Property taxes 1,763,100$ 1,763,100$ –$
Investment earnings – 45,265 45,265
Total revenues 1,763,100 1,808,365 45,265
Expenditures
Debt service
Principal 1,520,000 1,520,000 –
Interest and fiscal charges 305,250 302,779 (2,471)
Total expenditures 1,825,250 1,822,779 (2,471)
Excess (deficiency) of revenues
over expenditures (62,150) (14,414) 47,736
Other financing (uses)
Transfers out (96,000) (51,308) 44,692
Net change in fund balances (158,150)$ (65,722) 92,428$
Fund balances
Beginning of year, as previously reported 2,100,445
Change in reporting entity – change in fund structure (102,755)
Beginning of year, as restated 1,997,690
End of year 1,931,968$
CITY OF FARMINGTON
General Debt Service Fund
Budgetary Comparison Schedule
Year Ended December 31, 2024
-118-
Page 338 of 417
-119-
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 associated with vehicle maintenance services provided by city staff
to various city departments.
Information Technology – Used to account for the costs associated with technology services, including
hardware, software, internet access, and staff support, provided by city personnel to various city
departments.
Page 339 of 417
Property
Employee and Liability Information
Expense Insurance Fleet Technology Total
Assets
Current assets
Cash and investments 1,489,137$ 486,979$ 220$ 1,087,528$ 3,063,864$
Receivables
Accounts – 2,819 – – 2,819
Interest 8,704 2,847 – 6,357 17,908
Total current assets 1,497,841 492,645 220 1,093,885 3,084,591
Noncurrent assets
Capital assets
Machinery and equipment – – 99,124 – 99,124
Less accumulated depreciation – – (97,478)– (97,478)
Total capital assets – – 1,646 – 1,646
Total assets 1,497,841$ 492,645$ 1,866$ 1,093,885$ 3,086,237$
Current liabilities
Accounts and contracts payable 22$ 10,502$ 12,969$ 59,425$ 82,918$
Accrued salaries and employee
benefits payable 332,031 – – – 332,031
Deposits payable 4,326 – – – 4,326
Compensated absences payable – – 42,892 11,648 54,540
Total current liabilities 336,379 10,502 55,861 71,073 473,815
Net position
Investment in capital assets – – 1,646 – 1,646
Unrestricted 1,161,462 482,143 (55,641) 1,022,812 2,610,776
Total net position 1,161,462 482,143 (53,995) 1,022,812 2,612,422
Total liabilities and net position 1,497,841$ 492,645$ 1,866$ 1,093,885$ 3,086,237$
as of December 31, 2024
CITY OF FARMINGTON
Internal Service Funds
Combining Statement of Net Position
-120-
Page 340 of 417
Property
Employee and Liability Information
Expense Insurance Fleet Technology Total
Operating revenues
Charges for services 2,988,456$ –$ 269,930$ 972,825$ 4,231,211$
Insurance reimbursement – 351,110 – – 351,110
Total operating revenues 2,988,456 351,110 269,930 972,825 4,582,321
Operating expenses
Personal services 3,152,412 – 267,817 265,757 3,685,986
Professional services 640 – 33,258 569,280 603,178
Materials and supplies 260 – 54,287 79,279 133,826
Insurance – 405,012 – – 405,012
Depreciation – – 1,103 – 1,103
Total operating expenses 3,153,312 405,012 356,465 914,316 4,829,105
Operating income (loss)(164,856) (53,902) (86,535) 58,509 (246,784)
Nonoperating revenue
Investment earnings 62,125 16,749 759 36,806 116,439
Income (loss) before transfers (102,731) (37,153) (85,776) 95,315 (130,345)
Transfers in 37,456 22,000 22,000 263,120 344,576
Transfers out (250,000) – – – (250,000)
Change in net position (315,275) (15,153) (63,776) 358,435 (35,769)
Net position
Beginning of year 1,476,737 497,296 9,781 664,377 2,648,191
End of year 1,161,462$ 482,143$ (53,995)$ 1,022,812$ 2,612,422$
Year Ended December 31, 2024
CITY OF FARMINGTON
Internal Service Funds
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
-121-
Page 341 of 417
Property
Employee and Liability Information
Expense Insurance Fleet Technology Total
Cash flows from operating activities
Cash receipts from other funds and reimbursements 3,004,318$ 348,291$ 269,930$ 972,825$ 4,595,364$
Cash payments to employees for services (3,046,502) – (261,175) (269,641) (3,577,318)
Cash payments for interfund services used (640) (394,510) (82,352) (663,366) (1,140,868)
Net cash flows from operating activities (42,824) (46,219) (73,597) 39,818 (122,822)
Cash flows from noncapital financing activities
Transfers in 37,456 22,000 22,000 263,120 344,576
Transfers out (250,000) – – – (250,000)
Net cash flows from noncapital financing activities (212,544) 22,000 22,000 263,120 94,576
Cash flows from investing activities
Interest received and changes in fair value on
investments 60,370 15,945 969 33,548 110,832
Net increase (decrease) in cash and
cash equivalents (194,998) (8,274) (50,628) 336,486 82,586
Cash and cash equivalents
Beginning of year 1,684,135 495,253 50,848 751,042 2,981,278
End of year 1,489,137$ 486,979$ 220$ 1,087,528$ 3,063,864$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss) (164,856)$ (53,902)$ (86,535)$ 58,509$ (246,784)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation – – 1,103 – 1,103
Change in assets and liabilities
Accounts receivable – (2,819) – – (2,819)
Due from other governments 15,862 – – – 15,862
Prepaid items – – – 4,125 4,125
Accounts and contracts payable 22 10,502 5,193 (18,932) (3,215)
Accrued salaries and employee benefits 104,542 – – – 104,542
Deposits payable 1,606 – – – 1,606
Compensated absences payable – – 6,642 (3,884) 2,758
Total adjustments 122,032 7,683 12,938 (18,691) 123,962
Net cash flows from operating activities (42,824)$ (46,219)$ (73,597)$ 39,818$ (122,822)$
Year Ended December 31, 2024
CITY OF FARMINGTON
Internal Service Funds
Combining Statement of Cash Flows
-122-
Page 342 of 417
STATISTICAL SECTION
(UNAUDITED)
TAB
Page 343 of 417
Page 344 of 417
-123-
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.
Page 345 of 417
Fiscal Year
2015 2016 2017 2018
Governmental activities
Net investment in capital assets 21,417,203$ 23,684,773$ 28,820,307$ 32,909,853$
Restricted 9,063,587 10,441,391 6,961,837 4,797,191
Unrestricted 8,920,144 5,142,435 6,576,959 7,997,614
Total governmental activities net position 39,400,934$ 39,268,599$ 42,359,103$ 45,704,658$
Business-type activities
Net investment in capital assets 54,807,938$ 53,225,787$ 51,464,649$ 50,747,479$
Restricted 2,160,566 2,231,966 2,238,206 2,316,500
Unrestricted 11,439,369 12,575,526 13,508,485 14,594,293
Total business-type activities net position 68,407,873$ 68,033,279$ 67,211,340$ 67,658,272$
Primary government
Net investment in capital assets 76,225,141$ 76,910,560$ 80,284,956$ 83,657,332$
Restricted 11,224,153 12,673,357 9,200,043 7,113,691
Unrestricted 20,359,513 17,717,961 20,085,444 22,591,907
Total primary government net position 107,808,807$ 107,301,878$ 109,570,443$ 113,362,930$
Note:The City implemented GASB Statement No.87 in fiscal 2022,recording a change in accounting principle that
decreased unrestricted net position. Prior year balances were not restated.
CITY OF FARMINGTON
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-124-
Page 346 of 417
2019 2020 2021 2022 2023 2024
33,867,761$ 35,883,311$ 36,819,084$ 37,033,206$ 39,137,210$ 41,670,431$
5,343,074 5,224,015 9,841,913 10,556,611 9,132,767 9,542,246
8,001,782 9,236,760 11,591,481 14,198,632 16,705,704 24,455,508
47,212,617$ 50,344,086$ 58,252,478$ 61,788,449$ 64,975,681$ 75,668,185$
53,677,776$ 51,976,059$ 50,773,632$ 48,353,192$ 48,486,110$ 50,255,385$
2,461,488 2,461,488 2,461,488 2,461,488 2,461,488 2,461,488
13,187,014 15,418,911 18,123,198 18,266,640 21,351,782 21,273,059
69,326,278$ 69,856,458$ 71,358,318$ 69,081,320$ 72,299,380$ 73,989,932$
87,545,537$ 87,859,370$ 87,592,716$ 85,386,398$ 87,623,320$ 91,925,816$
7,804,562 7,685,503 12,303,401 13,018,099 11,594,255 12,003,734
21,188,796 24,655,671 29,714,679 32,465,272 38,057,486 45,728,567
116,538,895$ 120,200,544$ 129,610,796$ 130,869,769$ 137,275,061$ 149,658,117$
-125-
Page 347 of 417
Fiscal Year
2015 2016 2017 2018
Expenses
Governmental activities
General government 2,284,974$ 2,268,779$ 2,178,067$ 2,511,818$
Public safety 5,357,738 6,979,608 6,472,115 5,728,925
Public works 7,473,095 5,497,796 3,888,778 4,358,465
Park and recreation 1,815,882 1,904,792 1,782,783 1,772,351
Economic development 90,000 40,000 40,000 30,000
Interest and fiscal charges 992,422 1,032,748 549,075 350,431
Total governmental activities expenses 18,014,111$ 17,723,723$ 14,910,818$ 14,751,990$
Business-type activities
Liquor operations 4,352,597$ 4,448,932$ 4,634,488$ 4,890,304$
Sewer operations 1,875,225 2,051,152 2,105,901 1,931,276
Solid waste 1,658,128 1,753,162 1,864,175 2,092,844
Storm water 731,444 534,988 571,572 521,465
Water 1,339,588 1,359,215 1,313,482 1,246,667
Street light 173,212 288,924 197,150 180,254
Total business-type activities 10,130,194 10,436,373 10,686,768 10,862,810
Total primary government expenses 28,144,305$ 28,160,096$ 25,597,586$ 25,614,800$
Program revenues
Governmental activities
Charges for services
General government 399,053$ 668,849$ 434,411$ 467,417$
Public safety 351,038 459,240 405,648 408,434
Public works 9,624 195,716 76,049 273,695
Parks and recreation 604,111 651,936 619,026 709,490
Operating grants and contributions 649,541 744,730 684,376 702,853
Capital grants and contributions 671,671 818,545 848,167 942,627
Total governmental activities program revenues 2,685,038$ 3,539,016$ 3,067,677$ 3,504,516$
CITY OF FARMINGTON
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
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Page 348 of 417
2019 2020 2021 2022 2023 2024
2,609,059$ 2,933,062$ 2,560,243$ 3,626,853$ 5,200,453$ 5,759,500$
6,118,203 6,834,253 6,549,508 7,936,364 8,712,115 8,592,752
5,612,872 5,262,979 3,977,134 5,333,328 3,806,386 4,625,171
2,202,631 1,430,839 2,789,326 2,522,085 2,583,554 2,715,378
50,000 276,900 406,795 247,970 177,927 137,901
404,893 193,167 189,858 288,751 239,992 327,204
16,997,658$ 16,931,200$ 16,472,864$ 19,955,351$ 20,720,427$ 22,157,906$
5,257,236$ 4,958,705$ 5,256,311$ 5,977,403$ 6,256,081$ 6,359,443$
2,326,630 2,334,000 2,459,637 2,606,288 2,872,236 3,241,040
1,913,258 2,630,874 2,566,976 87,359 76,270 –
557,749 530,438 581,402 719,225 725,039 680,636
1,439,178 1,626,279 1,764,908 1,814,354 1,889,215 2,032,420
165,886 173,604 180,528 210,174 214,757 198,028
11,659,937 12,253,900 12,809,762 11,414,803 12,033,598 12,511,567
28,657,595$ 29,185,100$ 29,282,626$ 31,370,154$ 32,754,025$ 34,669,473$
471,569$ 631,118$ 855,812$ 999,320$ 1,048,415$ 1,675,600$
437,054 413,594 560,518 550,052 581,869 602,687
189,282 201,401 708,197 1,215,397 965,032 2,332,256
582,631 389,870 987,028 913,710 829,870 1,245,464
838,569 713,470 1,062,789 1,076,883 1,924,255 1,191,276
869,849 50,478 4,106,221 833,090 1,002,806 3,165,413
3,388,954$ 2,399,931$ 8,280,565$ 5,588,452$ 6,352,247$ 10,212,696$
-127-(continued)
Page 349 of 417
2015 2016 2017 2018
Program revenues (continued)
Business-type activities
Charges for services
Liquor operations 4,607,417$ 4,742,313$ 4,967,468$ 5,256,645$
Sewer 1,957,902 2,043,859 2,068,388 2,045,728
Solid waste 1,991,179 2,041,561 2,061,324 2,071,672
Storm water 670,353 643,479 647,767 737,115
Water 1,439,873 1,631,643 1,681,079 1,852,381
Street light 222,159 224,781 225,570 226,674
Operating grants and contributions 22,000 23,000 24,000 30,263
Capital grants and contributions 945,938 – – –
Total business-type activities program revenues 11,856,821 11,350,636 11,675,596 12,220,478
Total primary government program revenues 14,541,859$ 14,889,652$ 14,743,273$ 12,220,478$
Net (expense) revenue
Governmental activities (15,329,073)$ (14,184,707)$ (11,843,141)$ (11,247,474)$
Business-type activities 1,726,627 914,263 988,828 1,357,668
Total primary government net expense (13,602,446)$ (13,270,444)$ (10,854,313)$ (9,889,806)$
General revenues and other changes in net position
Governmental activities
Property taxes 11,460,209$ 11,806,302$ 12,181,830$ 12,659,480$
Franchise taxes 265,485 275,691 266,728 266,324
Unrestricted grants and contributions 278,974 287,252 289,854 316,100
Unrestricted investment earnings (charges)189,540 255,021 200,851 239,714
Gain on sale of capital assets – – 54,408 531
Transfers 1,222,807 1,428,106 1,939,974 1,110,880
Total governmental activities 13,417,015$ 14,052,372$ 14,933,645$ 14,593,029$
Business-type activities
Unrestricted grants and contributions –$ –$ –$ –$
Unrestricted investment earnings (charges)152,954 139,249 129,207 200,144
Gain on sale of capital assets – – – –
Transfers (1,222,807) (1,428,106) (1,939,974) (1,110,880)
Total business-type activities (1,069,853) (1,288,857) (1,810,767) (910,736)
Total primary government 12,347,162$ 12,763,515$ 13,122,878$ 13,682,293$
Change in net position
Governmental activities (1,912,058)$ (132,335)$ 3,090,504$ 3,345,555$
Business-type activities 656,774 (374,594) (821,939) 446,932
Total primary government (1,255,284)$ (506,929)$ 2,268,565$ 3,792,487$
Fiscal Year
CITY OF FARMINGTON
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
-128-
Page 350 of 417
2019 2020 2021 2022 2023 2024
5,608,012$ 5,347,194$ 5,724,828$ 6,391,785$ 6,770,039$ 6,951,096$
2,117,934 2,160,808 2,264,006 2,611,202 2,762,566 3,284,422
2,244,569 2,692,155 2,858,958 27,491 10,605 –
1,130,563 1,149,665 1,158,564 1,227,091 1,327,620 1,422,651
2,281,793 2,533,753 3,251,453 2,533,222 2,799,075 2,378,085
226,971 232,990 232,378 236,117 238,805 251,731
34,190 26,710 240,598 30,616 10,822 16,485
81,634 – 476,930 – – 2,573,529
13,725,666 14,143,275 16,207,715 13,057,524 13,919,532 16,877,999
13,807,300$ 14,143,275$ 16,684,645$ 13,057,524$ 13,919,532$ 19,451,528$
(13,608,704)$ (14,531,269)$ (8,192,299)$ (14,366,899)$ (14,368,180)$ (11,945,210)$
2,065,729 1,889,375 3,397,953 1,642,721 1,885,934 4,366,432
(11,542,975)$ (12,641,894)$ (4,794,346)$ (12,724,178)$ (12,482,246)$ (7,578,778)$
12,916,115$ 13,044,381$ 13,692,990$ 14,463,106$ 15,284,709$ 16,210,861$
262,148 244,839 229,355 227,017 201,431 179,503
317,172 2,042,381 107,962 207,501 944,364 1,117,153
657,977 526,283 (91,107) (874,200) 1,407,087 1,492,084
17,218 16,174 – 81,008 136,368 88,177
946,033 1,788,680 1,831,571 3,393,908 (418,547) 3,549,936
15,116,663$ 17,662,738$ 15,770,771$ 17,498,340$ 17,555,412$ 22,637,714$
–$ 18,136$ –$ –$ –$ –$
548,310 411,349 (64,522) (525,811) 913,579 833,016
– – – – – 41,040
(946,033) (1,788,680) (1,831,571) (3,393,908) 418,547 (3,549,936)
(397,723) (1,359,195) (1,896,093) (3,919,719) 1,332,126 (2,675,880)
14,718,940$ 16,303,543$ 13,874,678$ 13,578,621$ 18,887,538$ 19,961,834$
1,507,959$ 3,131,469$ 7,578,472$ 3,131,441$ 3,187,232$ 10,692,504$
1,668,006 530,180 1,501,860 (2,276,998) 3,218,060 1,690,552
3,175,965$ 3,661,649$ 9,080,332$ 854,443$ 6,405,292$ 12,383,056$
-129-
Page 351 of 417
Fiscal Year
2015 2016 2017 2018
General Fund
Nonspendable 6,034$ 33,762$ 34,529$ 5,045$
Restricted – – – –
Committed – – – 240,000
Assigned 4,250 – – –
Unassigned 4,734,534 5,031,529 5,666,183 5,477,026
Total General Fund 4,744,818$ 5,065,291$ 5,700,712$ 5,722,071$
All other governmental funds
Nonspendable 150$ 110$ –$ –$
Restricted 5,776,314 16,959,150 4,071,837 2,009,629
Committed 8,025,185 5,158,828 6,373,022 7,586,959
Assigned – – – –
Unassigned – – – –
Total all other governmental funds 13,801,649$ 22,118,088$ 10,444,859$ 9,596,588$
Total all funds 18,546,467$ 27,183,379$ 16,145,571$ 15,318,659$
CITY OF FARMINGTON
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
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Page 352 of 417
2019 2020 2021 2022 2023 2024
109,523$ 141,196$ 83,088$ 1,635$ 1,169$ 1,949$
– – – – – 88,549
– – – – – –
– – – – – –
5,761,747 6,060,870 6,843,396 7,829,882 8,987,268 11,268,652
5,871,270$ 6,202,066$ 6,926,484$ 7,831,517$ 8,988,437$ 11,359,150$
–$ 1,184,677$ 1,365$ 2,500$ 14,714$ 300$
3,196,214 3,235,717 4,411,713 4,799,381 5,007,682 6,217,629
7,298,103 8,427,605 8,876,306 13,005,454 13,191,023 18,374,939
– – – – 1,598,024 1,519,085
– – (29,832) (172,932) (448,106) (443,866)
10,494,317$ 12,847,999$ 13,259,552$ 17,634,403$ 19,363,337$ 25,668,087$
16,365,587$ 19,050,065$ 20,186,036$ 25,465,920$ 28,351,774$ 37,027,237$
-131-
Page 353 of 417
Fiscal Year
2015 2016 2017 2018
Revenues
Property taxes 11,462,986$ 11,852,567$ 12,186,789$ 12,665,721$
Franchise taxes 265,485 275,691 266,728 266,324
Special assessments 661,187 545,777 532,744 314,594
Licenses and permits 370,889 650,311 415,005 449,350
Intergovernmental 2,097,509 1,633,388 1,632,170 1,768,219
Charges for services 820,445 1,077,860 929,784 1,094,360
Fines and forfeits 52,299 41,750 45,102 60,182
Investment earnings (charges)172,818 237,224 183,402 209,968
Other 160,193 260,564 201,288 305,014
Total revenues 16,063,811 16,575,132 16,393,012 17,133,732
Expenditures
Current
General government 1,947,768 1,996,410 2,051,143 2,311,024
Public safety 5,131,076 5,301,211 5,537,937 5,348,888
Public works 1,971,079 2,006,606 2,381,695 2,690,271
Park and recreation 1,538,452 1,513,411 1,585,656 1,595,924
Economic development 90,000 40,000 40,000 30,000
Capital outlay 4,695,581 2,755,780 586,495 1,597,191
Debt service
Principal 2,899,162 4,411,534 6,395,000 5,180,000
Interest and fiscal charges 1,041,780 1,095,380 818,144 503,061
Total expenditures 19,314,898 19,120,332 19,396,070 19,256,359
Excess (deficiency) of revenues
over expenditures (3,251,087) (2,545,200) (3,003,058) (2,122,627)
Other financing sources (uses)
Debt issued 3,184,641 10,120,095 – –
Payment of refunded debt – – (9,990,000) –
Sale of capital assets 157,599 13,043 54,408 11,000
Transfers in 5,937,539 5,590,211 2,981,402 3,214,991
Transfers out (4,794,182) (4,541,237) (1,080,560) (1,930,276)
Total other financing sources (uses)4,485,597 11,182,112 (8,034,750) 1,295,715
Net change in fund balances 1,234,510$ 8,636,912$ (11,037,808)$ (826,912)$
Debt service as a percentage of noncapital
expenditures 21.0%29.5%37.9%31.3%
CITY OF FARMINGTON
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
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Page 354 of 417
2019 2020 2021 2022 2023 2024
12,926,730$ 13,049,745$ 13,700,787$ 14,449,100$ 15,251,002$ 16,155,545$
262,148 244,839 229,355 227,017 201,431 179,503
625,308 407,412 279,579 533,337 520,116 279,083
421,578 588,347 789,965 823,729 927,731 1,212,437
1,796,575 2,948,939 1,257,177 1,268,198 4,943,868 2,560,158
1,042,292 890,408 1,697,708 2,275,257 2,031,701 3,605,602
63,561 45,959 52,340 58,400 57,509 63,011
567,539 455,233 (81,823) (793,738) 1,277,985 1,375,645
226,316 161,687 600,280 648,430 437,525 1,120,257
17,932,047 18,792,569 18,525,368 19,489,730 25,648,868 26,551,241
2,407,932 2,637,945 2,693,428 3,191,346 4,184,318 4,815,337
5,705,820 5,917,499 6,438,859 6,834,703 7,206,927 7,573,676
3,272,313 2,794,566 2,639,935 3,261,324 3,866,764 4,940,557
1,855,261 1,560,781 1,884,846 1,939,271 2,243,990 2,445,797
50,000 276,900 385,434 241,518 177,927 137,901
4,715,989 2,664,884 3,045,812 3,978,547 5,661,851 3,720,761
2,435,000 2,910,000 2,155,000 2,199,417 1,706,097 1,712,484
412,373 397,231 368,738 361,727 396,541 412,062
20,854,688 19,159,806 19,612,052 22,007,853 25,444,415 25,758,575
(2,922,641) (367,237) (1,086,684) (2,518,123) 204,453 792,666
1,009,555 1,279,300 – 4,088,692 714,239 3,577,464
– – – – – –
18,939 12,867 84,662 80,249 136,368 88,177
4,280,247 4,263,090 2,854,791 9,437,491 4,943,204 6,975,040
(1,339,172) (2,503,542) (1,046,718) (6,212,955) (3,112,410) (2,757,884)
3,969,569 3,051,715 1,892,735 7,393,477 2,681,401 7,882,797
1,046,928$ 2,684,478$ 806,051$ 4,875,354$ 2,885,854$ 8,675,463$
16.5%18.5%14.1%13.7%10.9%11.0%
-133-
Page 355 of 417
Commercial/
Industrial,Less
Public Utility,Captured
Residential Railroads, and Agricultural Tax Increment
Property Personal Property Apartments Property Tax Capacity
12,802,297$ 2,688,017$ 271,615$ 266,387$ (113,361)$
14,005,748 2,739,868 280,096 272,897 (117,585)
14,798,507 2,805,453 295,234 272,086 (118,368)
15,932,445 2,884,545 382,700 257,966 (37,168)
17,392,473 2,937,228 487,014 266,572 (146,966)
18,650,539 2,893,434 476,353 275,228 (145,234)
20,067,551 3,129,074 519,937 266,742 (106,443)
21,162,785 3,085,886 533,529 277,064 (104,238)
26,060,779 3,962,038 573,811 309,162 (108,548)
27,451,041 4,310,475 599,755 350,738 (112,704)
Note:
Source:Dakota County
The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the
estimated market value of the property.
2015
2017
2016
2018
2019
2020
2021
2022
2023
2024
CITY OF FARMINGTON
Payable
Year
Tax Capacity Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
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Page 356 of 417
Less Estimated
Contributions Actual
to Fiscal Fiscal Disparities Total Tax Taxable
Disparities Pool Distribution Capacity Value Value
(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
(1,186,065) 4,774,320 28,543,281 50.623 2,357,314,320 1.21
(1,099,790) 4,756,013 34,453,465 42.933 2,893,627,784 1.19
(1,516,166) 4,886,705 35,969,844 45.069 3,053,265,771 1.18
Rate
Tax Capacity
Value as a
Percentage of
Actual Value
Total Direct
Tax Capacity
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Page 357 of 417
Total Direct
and
Debt Total Dakota Other Special Overlapping
Operating Service City County ISD No. 192 Districts Tax Rate
44.964 16.491 61.455 29.625 53.460 3.741 148.281
44.220 15.019 59.239 28.562 57.570 3.802 149.173
44.050 14.710 58.760 27.996 54.256 3.692 144.704
42.451 14.710 57.161 26.573 52.813 3.203 139.750
43.721 10.651 54.372 25.379 51.390 2.983 134.124
N/A N/A 50.971 24.126 53.095 2.880 131.072
38.300 10.951 49.251 22.710 50.796 2.764 125.521
42.649 7.974 50.623 21.630 49.481 2.412 124.146
37.071 5.862 42.933 18.816 38.497 2.065 102.311
39.397 5.672 45.069 18.323 36.439 2.244 102.075
N/A – Not Available
(1)
(2)
Source:Dakota County
2019
2018
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.
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.
2020
2021
2022
2023
2024
CITY OF FARMINGTON
Property Tax Rates (1)
Direct and Overlapping Governments
Last Ten Fiscal Years
City Direct Rates Overlapping Rates (2)
2017
Year
Fiscal
2016
2015
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Page 358 of 417
Net Tax Net Tax
Capacity Capacity
Taxpayer Value Rank Value Rank
Northern Natural Gas 1,140,914$ 1 3.49 %458,348$ 1 2.86 %
Xcel Energy (Northern States Power)128,074 2 0.39 188,162 2 1.17
Dakota Storage, LLC 128,070 3 0.39 81,608 4 0.51
Valmont Industries 114,272 4 0.35 – – –
Legacy Partners of Farmington, LLC 113,985 5 0.35 – – –
Dakota Electric Association 107,696 6 0.33 129,580 3 0.81
RLR Investments, LLC 100,694 7 0.31 68,204 6 0.43
Seeger Properties, LLC 97,044 8 0.30 – – –
Minnesota Energy Resources 94,440 9 0.29 69,838 5 0.44
POR-MKR Real Estate, LLC 86,147 10 0.26 65,370 8 0.41
St. Francis Health Systems – – – 67,269 7 0.42
Farmington City Center, LLC – – – 63,618 9 0.40
Schwiness LLC – – – 63,322 10 0.40
Total 2,111,336$ 6.45 %1,255,319$ 7.83 %
Source: Dakota County
2024 2015
Current Fiscal Year and Nine Years Prior
Principal Property Taxpayers
CITY OF FARMINGTON
Percentage
of Total
City Tax
Capacity
Value
Percentage
of Total
City Tax
Capacity
Value
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Page 360 of 417
Total Tax Delinquent
Levy for Tax
Fiscal Year (1)Amount Collections (2)Amount
11,402,145$ 11,307,924$ 99.17 %91,699$ 11,399,623$ 99.98 %
11,718,018 11,656,384 99.47 60,558 11,716,942 99.99
12,133,656 12,073,701 99.51 59,735 12,133,436 100.00
12,681,188 12,601,932 99.38 78,074 12,680,006 99.99
13,020,768 12,950,561 99.46 65,064 13,015,625 99.96
13,036,578 12,967,610 99.47 67,111 13,034,721 99.99
13,546,213 13,476,144 99.48 49,608 13,525,752 99.85
14,383,924 14,309,308 99.48 56,390 14,365,698 99.87
15,157,495 15,063,278 99.38 55,447 15,118,725 99.74
16,106,807 15,985,438 99.25 – 15,985,438 99.25
(1)
(2)
Source:
2021
Includes fiscal disparity revenues.
Includes fiscal disparity revenues and is net of county/state adjustments.
Dakota County
2020
2022
2023
2024
Percentage
of
Levy
2019
2018
2017
Year
Fiscal
2016
2015
Percentage
of
Levy
CITY OF FARMINGTON
Property Tax Levies and Collections
Last Ten Fiscal Years
Total Collections to Date
Collected Within the
Fiscal Year of Levy (2)
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General Special Certificates Net
Obligation Assessment of Premiums Lease
Bonds Bonds Indebtedness (Discounts)Liabilities
16,496,534$ 13,930,000$ 660,000$ 277,972$ –$
20,115,000 15,645,000 535,000 738,645 –
12,455,000 7,455,000 – 645,061 –
9,155,000 5,575,000 – 551,475 –
8,865,000 4,355,000 – 532,060 –
7,550,000 2,760,000 1,105,000 578,829 –
6,655,000 1,500,000 1,105,000 447,152 –
9,370,000 445,000 905,000 668,370 83,029
8,400,000 – 695,000 544,915 716,171
10,215,000 – 475,000 663,305 754,320
N/A – Not Applicable
Note 1:
Note 2:
CITY OF FARMINGTON
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2023
2016
2015
Fiscal Year
2017
Governmental Activities
2018
2019
2020
2021
2022
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
See Demographic and Economic Statistics schedule for population and personal income information.
2024
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Net Total
Revenue Premiums Lease Primary
Bonds (Discounts)Liabilities Government Per Capita
–$ –$ –$ 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 71,032 951,551 11,324,735 479 0.7
530,000 61,121 922,305 12,984,825 549 0.8
465,000 51,207 828,121 11,700,414 493 0.7
395,000 41,297 727,214 13,271,136 555 N/A
Income
of Personal
Percentage
Business-Type Activities
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Less Amounts
General Restricted for Market
Obligation Repaying Value of
Bonds (1)Principal Total Property
16,496,534$ 1,157,993$ 15,338,541$ 1,475,969,866$ 1.04 %
20,115,000 7,894,089 12,220,911 1,601,441,554 0.76
12,455,000 2,167,387 10,287,613 1,685,287,604 0.61
9,155,000 1,588,980 7,566,020 1,810,826,485 0.42
8,865,000 1,651,796 7,213,204 1,968,969,293 0.37
7,550,000 1,255,057 6,294,943 2,093,214,877 0.30
6,961,052 1,296,028 5,665,024 2,247,736,496 0.25
9,945,146 1,130,750 8,814,396 2,357,314,320 0.37
9,639,915 2,100,445 7,539,470 2,893,627,784 0.26
11,353,305 1,939,554 9,413,751 3,053,265,771 0.31
(1)
(2)
Note:
Source: Dakota County website and Dakota County Assessor’s Office
Includes all general obligations of the City,including Capital Improvement Plan Bonds and Certificates of
Indebtedness.
2017
Year
See Demographic and Economic Statistics schedule for population and personal income information.
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
2016
2015
N/A – Not Available
2022
2023
2021
2020
Property
2019
2018
CITY OF FARMINGTON
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Percentage of
Market Value of
2024
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Total City
Tax Capacity Per
Value Population (2)Capita
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 23.62 23,632 1.49 240
25,059,264 35.17 23,654 1.47 373
30,905,790 24.40 23,719 1.74 318
32,712,009 28.78 23,895 N/A 394
Percentage
of Personal
Income (2)
Percentage of
Total City
Tax Capacity
Value
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Estimated
Share of
Net Debt Overlapping
Outstanding Debt
Overlapping debt
Dakota County CDA 66,145,000$ 4.127 %2,729,675$
ISD No. 192, Farmington 97,115,000 58.183 56,504,722
ISD No. 196, Rosemount–Apple Valley–Eagan 372,305,000 0.569 2,117,116
Metropolitan Council (2)178,505,000 4.139 7,387,953
Total overlapping debt 714,070,000 68,739,467
Direct debt
City of Farmington direct debt 12,107,625 – 12,107,625
Total direct and overlapping debt 726,177,625$ 80,847,092$
(1)
(2)
Note:
Source:Dakota County Property Taxation Office
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.
CITY OF FARMINGTON
Direct and Overlapping Governmental Activities Debt
December 31, 2024
Governmental Unit
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.
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.
Estimated
Percentage
Applicable (1)
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Fiscal Year
2015 2016 2017 2018
Debt limit 44,279,096$ 48,043,247$ 50,558,628$ 54,324,795$
Total net debt applicable to the limit 16,496,534 20,115,000 12,455,000 9,155,000
Legal debt margin 27,782,562$ 27,928,247$ 38,103,628$ 45,169,795$
Total net debt applicable to the limit
as a percentage of debt limit 37.26% 41.87% 24.63% 16.85%
CITY OF FARMINGTON
Legal Debt Margin Information
Last Ten Fiscal Years
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2019 2020 2021 2022 2023 2024
59,069,079$ 62,796,446$ 67,432,095$ 70,719,430$ 86,808,834$ 91,597,973$
8,865,000 8,655,000 7,760,000 10,275,000 9,095,000 7,695,000
50,204,079$ 54,141,446$ 59,672,095$ 60,444,430$ 77,713,834$ 83,902,973$
15.01% 13.78% 11.51% 14.53% 10.48% 8.40%
Market value 3,053,265,771$
Debt limit (3% of market value)91,597,973
Debt applicable to the limit 7,695,000
Legal debt margin 83,902,973$
Legal Debt Margin Calculations for Fiscal Year 2024
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Less
Direct Net Revenue
Gross Operating Available for
Revenue (a)Expenses (b)Debt Service Principal Interest Total
2,281,793$ (556,474)$ 1,725,319$ –$ –$ –$ N/A
2,533,753 (613,141) 1,920,612 65,000 39,916 104,916 1,830.62 %
2,908,352 (755,497) 2,152,855 60,000 29,550 89,550 2,404.08
2,238,210 (805,909) 1,432,301 65,000 26,426 91,426 1,566.62
2,496,686 (871,659) 1,625,027 65,000 23,175 88,175 1,842.96
2,089,774 (1,001,101) 1,088,673 70,000 19,800 89,800 1,212.33
(a)
(b)
Note:
2021
Fiscal years 2019–2024 include gross revenues of the Water Fund.
Exclusive of depreciation.
Details regarding the City’s outstanding debt can be found in the notes to basic financial statements.
N/A – Not Applicable
2022
2023
2024
Coverage
2020
2019
2018 No revenue bonds outstanding from 2015–2018
2017 No revenue bonds outstanding from 2015–2018
No revenue bonds outstanding from 2015–2018
No revenue bonds outstanding from 2015–2018
2016
2015
Year
Pledged Revenue Coverage
CITY OF FARMINGTON
Debt Service RequirementsFiscal
Last Ten Fiscal Years
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Total
School Unemployment Personal Per Capita
Population (1)Households (1)Enrollment (3)Rate (2)Income (5)Income (4)
22,622 7,959 7,019 3.3 1,215,027,620$ 53,710$
22,451 7,657 7,074 3.4 1,251,486,093 55,743
22,343 7,691 7,126 2.7 1,287,805,834 57,638
22,421 7,779 7,138 2.7 1,357,344,919 60,539
22,880 7,925 7,143 3.0 1,418,033,760 61,977
23,123 7,926 6,996 4.3 1,497,168,004 64,748
23,632 7,906 6,825 2.4 1,605,250,864 67,927
23,654 7,936 6,853 2.5 1,698,948,550 71,825
23,719 8,011 6,767 2.2 1,779,375,661 75,019
23,895 8,152 6,589 2.2 N/A N/A
(1)
(2)
(3)
(4)
(5)
N/A – Not Available
Per capita personal income for Dakota County residents multiplied by the estimated city population.
CITY OF FARMINGTON
Demographic and Economic Statistics
Last Ten Fiscal Years
Year
Fiscal
2015
Numbers for 2015 are from the Farmington Building Inspections Department.The 2016–2024 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.
Minnesota Department of Employment and Economic Development – Dakota County Annual Rate.
ISD No. 192, Farmington Public Schools – October enrollment count.
U.S. Bureau of Economic Analysis – Per capita personal income for Dakota County residents.
2016
2022
2024
2017
2018
2019
2020
2021
2023
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Employees Employees
(1)Rank (1)Rank
ISD No. 192, Farmington Public Schools 775 1 15.4 %900 1 19.8 %
Federal Aviation Administration 368 2 7.3 400 2 8.8
Installed Building Solutions 284 3 5.6 – – –
Dakota Electric Association 206 4 4.1 200 3 4.4
Trinity Care Center and Trinity Terrace 201 5 4.0 140 5 3.1
Marschall Line, Inc.201 6 4.0 182 4 4.0
City of Farmington 177 7 3.5 91 9 2.0
R&L Carriers 160 8 3.2 110 8 2.4
Valmont Industries 150 9 3.0 130 7 2.9
Kemps Dairy 134 10 2.7 131 6 2.9
JIT Powder Coating – – – 65 10 1.4
Total 2,656 52.7 %2,349 51.7 %
(1)
(2)
Per City of Farmington records.
Metropolitan Council Employment by Community as of 2024, 5,042 total employment.
Current Fiscal Year and Nine Years Prior
Principal Employers
CITY OF FARMINGTON
2024
Taxpayer (2)
Employment
of Total
Employment
of Total
Percentage
Percentage
2015
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Fiscal Year
2015 2016 2017 2018
General government
Administration 3.00 2.00 1.00 1.00
Finance 4.50 5.50 5.50 5.50
Human resources/information
technology/communications 3.00 3.00 4.00 5.00
Community development 2.50 3.00 3.00 4.00
Total general government 13.00 13.50 13.50 15.50
Public safety
Police administration 5.15 5.15 5.15 5.00
Police patrol 17.00 17.00 17.00 15.00
Investigations 5.00 5.00 5.00 6.00
Fire 1.50 1.50 1.50 1.00
Total public safety 28.65 28.65 28.65 27.00
Public works
Building inspections 2.50 3.20 3.50 3.50
Engineering 4.50 4.50 5.50 4.50
Streets 9.00 9.50 9.50 9.00
Natural resources 1.00 1.00 – 1.00
Total public works 17.00 18.20 18.50 18.00
Parks and recreation
Park maintenance 3.50 3.50 3.60 4.00
Building maintenance 1.00 1.00 1.00 1.00
Recreation programming 2.00 2.00 2.00 2.00
Total parks and recreation 6.50 6.50 6.60 7.00
Senior center 1.00 1.40 1.40 1.00
Swimming pool 0.40 0.40 0.40 –
Arena 2.35 2.35 2.35 2.00
Liquor operations 8.00 8.00 8.00 9.50
Solid waste 5.00 5.50 5.50 5.50
Fleet 2.00 2.00 2.00 2.00
Total employees 83.90 86.50 86.90 87.50
Note:
Source: Various city departments
CITY OF FARMINGTON
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
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.
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2019 2020 2021 2022 2023 2024
1.00 1.00 2.00 2.00 2.00 2.00
5.50 5.50 5.50 5.50 4.50 4.50
5.00 5.00 5.00 6.00 6.00 6.00
5.00 4.00 4.00 3.00 4.00 4.00
16.50 15.50 16.50 16.50 16.50 16.50
5.00 5.00 5.00 5.00 5.00 5.00
16.00 17.00 17.00 18.00 19.00 19.00
6.00 6.00 6.00 6.00 6.00 6.00
2.00 2.00 2.00 2.00 2.00 3.00
29.00 30.00 30.00 31.00 32.00 33.00
3.00 4.00 4.00 5.00 5.00 5.00
5.00 5.00 5.00 5.00 6.00 6.00
10.00 10.00 10.00 9.50 10.00 10.00
1.00 – – 1.00 1.00 1.00
19.00 19.00 19.00 20.50 22.00 22.00
4.00 4.00 4.00 7.00 7.00 7.00
3.00 3.00 3.00 3.00 3.00 3.00
2.00 2.00 2.00 2.00 2.00 2.00
9.00 9.00 9.00 12.00 12.00 12.00
1.00 1.50 1.50 1.50 1.50 1.50
– – – – – –
2.00 2.00 2.00 1.50 1.50 1.50
9.00 13.00 13.00 13.00 13.00 13.00
5.00 5.00 5.00 – – –
2.00 2.00 2.00 2.00 2.00 2.00
92.50 97.00 98.00 98.00 100.50 101.50
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Fiscal Year
2015 2016 2017 2018
Fire
Medical calls 359 356 452 411
Fire calls 361 345 407 340
Inspections
Building permits 619 1,184 1,036 1,059
Value of building permits (in millions)15$ 38$ 19$ 26$
Parks and recreation
Parks
Park reservations 66 81 71 64
Pool (closed after 2017)
Pool open swim admissions 7,652 7,372 6,302 –
Pool swim lesson registrations 256 309 136 –
Pool season passes sold N/A NA N/A –
Pool punch cards sold 176 125 139 –
Swim bus riders 536 507 496 –
Rambling River Center
Memberships 381 404 467 497
Program participation 13,885 13,042 15,203 16,015
Number of volunteers 107 82 80 69
Total volunteer hours 5,944 8,573 4,298 3,426
Ice arena
Ice skating lessons total participants 216 329 284 296
Arena rental hours 1,315 1,285 1,490 1,380
Outdoor rinks total number of skaters 7,851 5,187 7,276 5,451
Other
Recreation program/event participants 5,976 8,344 8,171 7,034
Youth scholarships provided 4 6 8 1
Source:Various city departments
Function/Program
N/A – Not Available
CITY OF FARMINGTON
Operating Indicators by Function
Last Ten Years
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2019 2020 2021 2022 2023 2024
480 467 712 747 714 653
370 284 353 465 436 418
1,049 1,318 1,705 1,155 1,960 1,672
22$ 27$ 40$ 42$ 53$ 93$
59 – 78 85 71 79
– – – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –
372 305 471 399 371 369
17,730 3,651 8,728 11,777 15,273 12,172
74 31 57 65 52 32
3,749 347 1,732 2,135 1,932 1,656
310 122 221 211 155 168
1,390 1,191 1,641 1,537 1,546 1,601
3,892 4,209 4,142 6,115 4,694 902
5,657 361 5,927 6,746 7,397 6,069
– – 1 2 5 –
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Fiscal Year
Function/Program 2015 2016 2017 2018
Public safety
Police
Stations 1 1 1 1
Patrol squads 16 15 15 16
Fire
Stations 2 2 2 2
Fire trucks 6 8 8 8
Public works
Vehicles 24 29 29 29
Streets (miles)89 89 89 89
Parks and recreation
Senior center – building 1 1 1 1
Swimming pool (closed after 2017)1 1 1 –
Ice arena – building 1 1 1 1
Parks 23 23 23 24
Solid waste
Compactor trucks 5 5 5 5
Sanitary sewer
Collection system (miles)84 84 90 90
Storm sewer
Storm sewer (miles)73 73 78 78
Water
Water main (miles)109 109 113 113
Wells 7 7 7 7
Water reservoirs 2 2 2 2
Source: The City’s financial records
CITY OF FARMINGTON
Capital Assets Statistics by Function/Program
Last Ten Years
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Fiscal Year
2019 2020 2021 2022 2023 2024
1 1 1 1 1 1
19 19 19 21 18 17
2 2 2 2 2 2
8 8 8 8 5 6
30 31 31 28 27 26
89 90 90 90 92 93
1 1 1 1 1 1
– – – – – –
1 1 1 1 1 1
26 26 26 27 27 28
5 6 6 – – –
87 90 92 94 97 98
78 81 84 85 86 87
113 116 119 121 123 124
8 9 9 9 9 9
2 2 2 2 2 2
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