HomeMy WebLinkAbout07.06.26 Council Packet
Meeting Location:
Farmington City Hall, Council
Chambers
430 Third Street
Farmington, MN 55024
CITY COUNCIL REGULAR MEETING AGENDA
Monday, July 6, 2026
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 2026 as Parks and Recreation Month in Farmington.
Agenda Item: Parks and Recreation Month Proclamation - Pdf
4 - 6
6. CONSENT AGENDA
6.1. 2026-2027 Labor Agreement and MOU between the City of Farmington
and LELS: Police Captains
Agenda Item: 2026-2027 Labor Agreement and MOU between the City
of Farmington and LELS: Police Captains - Pdf
7 - 25
6.2. 2027 Apple Valley/Lakeville/Farmington (ALF) Ambulance Budget
Agenda Item: 2027 Apple Valley/Lakeville/Farmington (ALF) Ambulance
Budget - Pdf
26 - 27
6.3. Application for Gambling Event Permit for the Church of St. Michael -
Bingo and Raffle
Agenda Item: Application for Gambling Event Permit for the Church of
St. Michael - Bingo and Raffle - Pdf
28 - 37
6.4. Minutes of the June 15, 2026 Regular City Council Meeting
Agenda Item: Minutes of the June 15, 2026 Regular City Council
Meeting - Pdf
38 - 43
6.5. Temporary On-Sale Liquor License for The Church of St. Michael 44 - 45
Page 1 of 356
September 26-27, 2026
Agenda Item: Temporary On-Sale Liquor License for The Church of St.
Michael September 26-27, 2026 - Pdf
6.6. Payment of Claims
Agenda Item: Payment of Claims - Pdf
46 - 47
Payment of Claims
6.7. Staff Approvals and Recommendations
Agenda Item: Staff Approvals and Recommendations - Pdf
48
6.8. Agreement for Construction Services for City Hall Second Floor Project
Agenda Item: Agreement for Construction Services for City Hall Second
Floor Project - Pdf
49 - 65
6.9. Donation from Happy Harry’s Furniture to the Rambling River Center
Agenda Item: Donation from Happy Harry’s Furniture to the Rambling
River Center - Pdf
66 - 67
6.10. Plans and Specifications and Authorize the Advertisement for Bids for
the Jim Bell Park and Preserve Trail Project
Agenda Item: Plans and Specifications and Authorize the Advertisement
for Bids for the Jim Bell Park and Preserve Trail Project - Pdf
68 - 71
6.11. Minnesota Department of Natural Resources 2025 ReLeaf Community
Forestry Grant Contract Agreement
Agenda Item: Minnesota Department of Natural Resources 2025 ReLeaf
Community Forestry Grant Contract Agreement - Pdf
72 - 106
7. PUBLIC HEARINGS
7.1. Public Hearing - Resolution 2026-061 Adopting the City's Capital
Improvement Plan and Authorizing the Issuance of CIP Bonds
Approve Resolution 2026-061 Adopting the City's Capital Improvement
Plan and Authorizing the Issuance of CIP Bonds.
Agenda Item: Public Hearing - Resolution 2026-061 Adopting the City's
Capital Improvement Plan and Authorizing the Issuance of CIP Bonds -
Pdf
107 - 116
8. AWARD OF CONTRACT
9. PETITIONS, REQUESTS AND COMMUNICATIONS
10. UNFINISHED BUSINESS
11. NEW BUSINESS
11.1. 2025 Annual Comprehensive Financial Report and Related Audit 117 - 356
Page 2 of 356
Reports
Staff recommends that the City Council accept the audited financial
statements and independent auditor's reports for the fiscal year ended
December 31, 2025.
Agenda Item: 2025 Annual Comprehensive Financial Report and
Related Audit Reports - Pdf
12. 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.)
13. CITY COUNCIL ROUNDTABLE
14. ADJOURN
Page 3 of 356
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 06 2026
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 parks full-time 160,000 than more recognize to and recreation and the
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, “The Power Of”, celebrates parks and recreation and the people who
make it all possible. Parks and recreation brings us together, strengthens our health and
well-being, and builds more resilient, connected communities.
Thank you to the Parks and Recreation Staff and Volunteers 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 17 at Lake Julia Park. The party starts at 7 pm with
music by Royal Order of Chords and Keys (ROCK), games, water ballons, and crafts
followed by a movie. At dusk, the movie How to Train Your Dragon will be shown.
Thank you to the event sponsors including Castle Rock Bank, Farmington Liquors,
Farmington Youth Hockey Association, Marschall Line, and VFW Post #7662.
This is a free community event, and everyone is invited to attend.
ACTION REQUESTED:
Proclaim July 2026 as Parks and Recreation Month in Farmington.
ATTACHMENTS:
Page 4 of 356
Parks and Recreation Month July 2026
Page 5 of 356
P R O C L A M A T I O N
PARKS AND RECREATION MONTH – JULY 2026
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,our of well-being environmental to the is recreation and parks fundamental
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, Nicholas Lien, Mayor, on behalf of the Farmington City Council, do hereby
proclaim July 2026 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 6th day of July 2026.
___________________________________
Nicholas Lien, Mayor
Page 6 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: David Chanski, Assistant City Administrator
Department: Administration
Subject: 2026-2027 Labor Agreement and MOU between the City of Farmington
and LELS: Police Captains
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
Staff is seeking approval of the 2026-2027 Labor Agreement with the LELS: Captains
bargaining unit.
DISCUSSION:
Captains Andrew Van Dorn and Bob Sauter entered into labor representation with Law
Enforcement Labor Services (LELS) in Fall 2025. Negotiations with the labor unit began in
January 2026. Negotiations were paused for a period when the City was notified that it
had failed MN Pay Equity as staff needed to focus on creating an action plan for
addressing Pay Equity as well as analyze how negotiations with the Captains unit could
impact Pay Equity. As this is the unit's initial labor agreement, negotiations due tend to take
extra time as well.
An agreement with the bargaining unit has been reached for 2026 and 2027. The
agreement follows the same model as those of the other two LELS units (Patrol and
Sergeants), and there are no significant differences from those units. This agreement is
retroactive to January 1, 2026.
Additionally, an agreement on a Memorandum of Understanding (MOU) with the unit has
been drafted to provide Captain Sauter with special assignment pay for 2026 and 2027 as
Captain Sauter will be taking on some additional duties to support Chief Siem throughout
the Police Department remodel & expansion project.
BUDGET IMPACT:
The Police Captain positions were budgeted in 2026 with their former non-union wages
and benefits as CBA negotiations had not commenced at the time the 2026 Budget was
adopted. The budget impact from what was budgeted for the Captains and the labor
agreement is approximately $16,000.
Page 7 of 356
ACTION REQUESTED:
Approve the 2026-2027 Collective Bargaining Agreement and MOU between the City of
Farmington and LELS: Captains
ATTACHMENTS:
2026-2027 LELS Captains Contract - Signed by LELS - Pending Council
Farmington - LELS (Captains) MOU re Special Assginment - signed by LELS - pending
Council
Page 8 of 356
LA
B
O
R
AG
R
E
E
M
NT
BE
T
W
E
E
N
CI
T
Y
OF
FA
R
M
I
N
G
T
O
N
AN
D
LA
W
EN
F
O
R
C
E
M
E
N
T
LA
B
O
R
SE
R
V
I
C
E
S
PO
L
I
C
E
CA
P
T
A
I
N
S
JA
N
U
A
R
Y
1,
20
2
6
-
DE
C
E
M
B
E
R
31
,
20
2
7
Page 9 of 356
Ta
b
l
e
of
Co
n
t
e
n
t
s
AR
T
I
C
L
E
1
-
PU
R
P
O
S
E
OF
AG
R
E
E
M
E
N
T
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
1
AR
T
I
C
L
E
2
-
RE
C
O
G
N
I
T
I
O
N
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1
AR
T
I
C
L
E
3
-
DE
F
I
N
I
T
I
O
N
S
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1
AR
T
I
C
L
E
4
-E
M
P
L
O
Y
E
R
SE
C
U
R
I
T
Y
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
2
AR
T
I
C
L
E
5
-
EM
P
L
O
Y
E
R
AU
T
H
O
R
I
T
Y
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
2
AR
T
I
C
L
E
6
-
UN
I
O
N
SE
C
U
R
I
T
Y
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2
AR
T
I
C
L
E
7
-
EM
P
L
O
Y
E
R
RI
G
H
T
S
-
GR
I
E
V
A
N
C
E
PR
O
C
E
D
U
R
E
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
3
AR
T
I
C
L
E
8
-
SA
V
I
N
G
S
CL
A
U
S
E
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5
AR
T
I
C
L
E
9
SE
N
I
O
R
I
T
Y
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
5
AR
T
I
C
L
E
10
-
DI
S
C
I
P
L
I
N
E
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
6
AR
T
I
C
L
E
11
-
WO
R
K
SC
H
E
D
U
L
E
S
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
6
AR
T
I
C
L
E
12
-
WO
R
K
I
N
G
OU
T
OF
CL
A
S
S
I
F
I
C
A
T
I
O
N
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7
AR
T
I
C
L
E
13
-
IN
S
U
R
A
N
C
E
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
7
AR
T
I
C
L
E
14
-
IN
J
U
R
Y
ON
DU
T
Y
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8
AR
T
I
C
L
E
I
S
HO
L
I
D
A
Y
S
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8
AR
T
I
C
L
E
16
-
FU
N
E
R
A
L
LE
A
V
E
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
9
AR
T
I
C
L
E
17
-
PE
R
S
O
N
A
L
TI
M
E
OF
F
(P
T
O
)
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
9
AR
T
I
C
L
E
18
-
UN
I
F
O
R
M
S
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
AR
T
I
C
L
E
19
-
FA
L
S
E
AR
R
E
S
T
IN
S
U
R
A
N
C
E
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
10
AR
T
I
C
L
E
20
-
JU
R
Y
DU
T
Y
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
AR
T
I
C
L
E
21
-
SC
H
O
O
L
CO
N
F
E
R
E
N
C
E
AN
D
AC
T
I
V
I
T
I
E
S
LE
A
V
E
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
AR
T
I
C
L
E
22
-
PO
S
T
EM
P
L
O
Y
M
E
N
T
HE
A
L
T
H
CA
R
E
SA
V
I
N
G
S
PL
A
N
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
AR
T
I
C
L
E
23
-
WA
I
V
E
R
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
11
AP
P
E
N
D
I
X
A
l3
WA
G
E
S
..
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
l3
Page 10 of 356
2,
1
2.
2
Th
e
em
p
l
o
y
e
r
re
c
o
g
n
i
z
e
s
La
w
En
f
o
rc
e
m
en
t
La
b
o
r
Se
r
v
i
c
e
s
,
In
c
.
as
th
e
ex
c
l
u
s
i
v
e
re
p
r
e
s
e
n
t
a
t
i
v
e
fo
r
al
l
Em
p
l
o
y
e
e
s
in
a
un
i
t
ce
r
t
i
?
e
d
th
e
St
a
t
e
ofMi
n
n
e
s
o
t
a
Bu
r
e
a
u
ofMe
d
i
a
t
i
o
n
Se
r
v
i
c
e
s
,
Ca
s
e
No
.
26
P
C
E
0
2
0
2
de
s
c
r
i
b
e
d
as
Al
l
es
s
e
n
t
i
a
l
li
c
e
n
s
e
d
em
p
l
o
ye
e
s
of
th
e
Fa
r
m
i
n
g
t
o
n
Po
l
i
c
e
De
p
a
r
t
m
e
n
t
,
Fa
r
m
i
n
g
t
o
n
,
Mi
n
n
e
s
o
t
a
in
t h e
jo bcl
a
s
s
i
?c
a
t
i
o
nofCa
p
t
a
i
n
,
wh
o
ar
e
pu
b
l
i
c
em
p
l
o
y
e
e
s
wi
t
h
i
n
th
e
me
a
n
in
g
ofMi
n
n
.
St
a
t
.
§l
7
9
A
.
0
3
,
su
b
d
.
l4
,
ex
c
l
u
d
i
n
g
su
p
e
r
v
i
s
o
r
y
an
d
co
n
?
d
e
n
t
i
a
l
ewi
t
h
i
n
th
eme
a
n
i
n
g
ofMi
n
n
.
St
a
t
.
§l
7
9
A
.
0
3
,
su
b
d
s
.
l7
an
d
4.
In
th
e
ev
e
n
t
th
e
EM
P
L
O
Y
E
R
an
d
t h e
U N I O Nar
e
un
a
b
l
e
toag
r
e
e
as
toth
e
in
c
l
u
s
i
o
n
orex
c
l
u
s
i
o
n
of
a
ne
w
or
mo
d
i
?
e
d
jo
b
cl
a
s
s
,
th
e
i
sh
a
l
lbe
su
b
m
i
t
t
e
d
toth
e
Bu
r
e
a
u
ofMe
d
i
a
t
i
o
n
Se
r
v
i
c
e
s
fo
r
de
t
e
r
m
i
n
a
t
i
o
n
.
Th
i
s
AG
R
E
E
M
E
N
T
is
en
te re d
in
t
o
be
t
w
e
e
n
th
e
CI
T
Y
OF
FA
R
M
l
N
G
T
O
N
,
he
r
e
i
n
a
f
t
e
r
ca
l
l
e
d
th
e
EM
P
L
O
Y
E
R
,
an
d
La
w
E n f o r c e
La
b
o
r
Se
r
v
i
c
e
s
(L
E
L
S
)
,
he
r
e
i
n
a
f
t
e
r
ca
l
l
e
d
th
e
UN
I
O
N
.
It
is
th
e
in
t
e
n
t
an
d
pu
r
p
o
s
e
o fth
i
s
AG
R
E
E
ME
N
T
to
:
1.
1
Es
t
a
b
l
i
s
h
pr
o
c
e
d
ur
e
s
fo
r
th
e
re
s
o
l
u
t
i
o
n
ofdi
s
p
u
t
e
s
co
n
c
e
r
n
i
n
g
th
i
s
AG
R
E
E
M
E
N
T
'
S
in
t
e
r
p
r
e
t
a
t
i
o
n
an
d
/
o
r
ap
p
l
i
c
a
t
i
o
n.
1.
2
Pl
a
c
e
in
wr
i
t
t
e
n
f
th
e
pa
r
t
i
e
s
'
ag
r
e
e
m
e
n
t
up
o
n
th
e
te
r
m
s
an
d
co
n
d
i
t
i
o
n
s
ofem
p
l
o
y
m
e
n
t
co
n
t
a
i
n
e
d
he
r
e
i
n
th
e
du
r
a
t
i
o
nof
th
i
s
AG
R
E
E
M
E
N
T
.
MA
S
T
ER
LA BO RAG
R
E
E
M
E
N
TBE
T
WE
EN
CI
T Y
OF
FA
R
M
I
NG
T
O
NAN
D
LA
W
EN
F
O
R
C
E
ME
N
T
LA
B
O
R
SE
R
V
I
C
E
S
(L
E
L
S
)
,
Ca
p
t
a
i
nsUn
i
t
3.
1
La
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
3.
2
ME
M
B
E
R:AMe
m
b
e
r
ofLa
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
In
c
.
A
1-PRP
O
S
OFAG
R
E
E
M
E
N
T
A R T I C L E
2-RE
C
O
G
N
I
T
IO
N
A R T I C L E
3-DE
F
I
N
I
T
I
O
NS
Page 11 of 356
6.
1
R
U
DE
P
A
R
T
M
E
N
T
:
Th
e
Fa
r
m
i
n
g
t
o
n
De
p
a
r
t
me
n
t
EM
P
L
O
Y
E
R
:
Th
e
Ci
t
y
of
Fa
r
m
i
n
gt
o
n
CH
I
E
F
:
Th
e
Ch
i
e
f
of
th
e
Fa
r
m
i
n
gt
o
n
Po
l
i
ceDe
p
a
r
t
m
e
n
t.
UN
I
O
N
OF
F
I
C
E
R
:
Of
?
c
e
r
el
e
c
t
e
d
orap
p
oi
n
t
edbyLa
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
In
c
.
EM
P
L
O
Y
E
E
:
An
em
p
l
o
y
e
e
wh
o
s
e
c l a s s i ?c a ti o niswi
t
h
i
n
th
e
ex
c
l
u
s
i
v
e
l
y
re
p
r
e
s
e
n
t
e
d
ba
r
g
a
i
n
i
n
g
un
i
t
.
ST
R
I
K
E
:
Co
n
c
e
r
t
e
d
ac
t
i
o
n
in
fa
i
l
in
g
tore
p
o
r
t
fo
r
du
t
y
,
th
e
wi
l
l
f
u
l
ab
s
e
n
c
e
fr
o
m
on
e
'
s
po
s
i
t
i
o
n
,
th
e
st
o
p
p
a
g
e
of
wo
r
k
,
sl
o
w
d
o
w
n
,
ab
st
i
ne nc
einwh
o
l
e
or
inpa
r
t
fr
o
m
th
e
fu
l
l
,
fa
i
t
h
f
u
l
an
d
pr
o
p
e
r
pe
r
f
o
r
m
a
n
c
e
of
th
e
du
t
i
e
s
e m pl o y m e nt
fo
r
th
e
pu
r
p
o
s
e
s
of
in
d
u
c
i
n
g
,
in
?
u
e
n
c
i
n
g
or
co
e
r
c
i
n
g
a
ch
a
n
g
e
in
th
e
co
n
d
i
t
i
o
ns
orco
m
pe
n
s
at
i
o
nor
th
e
ri
g
h
t
s
,
pr
i
v
i
l
e
g
e
s
orob
l
i
g
a
t
i
o
n
s
of
em
p
l
o
y
m
e
n
t
.
5.
1
5.
2
Th
e
EM
P
L
O
Y
E
R
r e t a i n sth
e
fu
l
l
an
d
un
r
e
s
t
r
i
c
t
e
d
ri
g
h
t
toop
e
r
a
t
e
an
d
ma
n
a
g
e
al
lma
n
p
o
w
e
r
,
fa
c
i
l
i
t
i
e
s
,
an
d
eq ui p m en
t;
toes
t
a
b
l
i
s
h
fu
n
c
t
i
o
n
s
an
d
pr
o
g
r
a
m
s
;
tose
t
an
n
u
a
l
bu
d
g
e
t
s
;
tode
t
e
r
m
i
n
e
th
e
ut
i
l
i
z
a
t
i
o
n
of
toes
t
a
b
l
i
s
h
an
d
mo
d
i
f
y
th
e
or
g
a
n
i
z
a
t
i
o
n
a
l
st
r
u
c
t
u
r
e
;
tose
l
e
c
t
,
di
r
e
c
t
an
d
de
t
e
r
m
i
n
e
p er
so n n el
;
toes
t
a
b
l
i
s
h
wo
r
k
sc
h
e
d
u
l
e
s
,
an
d
tope
r
f
o
r
m
an
y
in
h
e
r
e
n
t
ma
n
a
g
e
r
i
a
l
fu
n
c
t
i
o
n
s
no
t
sp
e
ci
?
ca
l
ly
li
m
i
t
e
d
by
th
i
s
AG
R
E
E
M
E
N
T
.
An
y
te
r
m
or
co
n
di
t
i
on
ofem
p
l
o
y
me
n
t
no
t
sp
e
c
i
f
i
c
a
l
l
y
es
t
a
b
l
i
s
h
e
d
ormo
d
i
?
e
d
by
th
i
s
AG
R
E
E
M
E
N
T
s
re
m
ai
n
so
l
e
l
y
wi
t
h
i
n
th
e
di
s
c
r
e
t
i
o
n
of
th
e
EM
P
L
O
Y
E
R
tomo
d
i
f
y
,
es
t
a
b
l
i
s
h
or
el
i
m
i
n
a
t
e
.
Th
e
EM
PL OY
ER
sh
a
l
l
de
d
u
c
t
fr
o
m
th
e
wa
g
e
s
of
em
p
l
o
y
e
e
s
wh
o
au
t
h
o
r
i
z
e
su
c
h
ade
d
u
c
t
i
o
n
in
wr
i
t
i
n
g
a m ou ntne
c
e
s
s
a
r
y
toco
v
e
r
mo
n
t
h
l
y
UN
I
O
N
du
e
s
.
Su
c
h
mo
n
i
e
s
sh
a
l
l
be
re
m
i
t
t
e
d
as
di
r
e
c
t
e
d
La wEn
f
o
r
c
e
me
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
In
c
.
Th
e
U NI O N
ag
r
e
e
sth
a
t
du
r
i
n
g
th
e
li
f
e
of
th
i
s
AG
R
E
E
M
E
N
T
em
p
l
o
y
e
e
s
wi
l
l
no
t
ca
u
s
e
,
en
c
o
u
r
a
g
e
,
pa
r
t
i
c
i
p
at
e
inor
su
p
p
o
r
t
an
y
st
r
i
k
e
,
sl
o
w
-
d
o
w
n
,
orot
h
e
r
in
t
e
r
r
u
p
t
i
o
n
ofor
in
t
e
r
f
e
r
e
n
c
e
wi
t
h
th
e
no
r
m
a
l
fu
n
c
t
i
o
ns
of
th
e
EM
P
L
O
YE
R
.
A R T I C L E
5-EM
P
L
O
Y
E
ATH
O
IT
Y
A
4-EM
P
L
O
Y
E
RSE
C
RI
T
Y
A R T I C L E
6-UN
I
O
N
SE
C
U
R
I
T
Y
Page 12 of 356
ER
R
PR
7.
2
7.
3
7.
4
DE
F
I
N
I
T
I
O
N
OF
A
GR
I
E
V
A
N
C
E
A
gr
i
e
v
a
n
c
e
is
de
?
n
e
d
as
a
di
s
p
u
t
e
or
di
s
a
g
r
e
e
m
e
n
t
as
to
th
e
in
t
e
r
p
r
e
t
a
t
i
o
n
or
ap
p
l
i
c
a
t
io
n
of
th
e
sp
e
c
i
?
c
te
r
m
s
an
d
co
n
d
i
t
i
o
n
s
of
th
i
s
AG
R
E
E
M
E
N
T
.
UN
I
O
N
RE
P
R
E
S
E
N
T
A
T
I
V
E
S
Th
e
EM
P
L
O
Y
E
R
wi
l
l
re
c
o
g
n
i
z
e
re
p
r
e
s
e
n
t
a
t
i
v
e
s
de
s
i
g
n
a
t
e
d
by
th
e
UN
I
O
N
as
th
e
gr
i
ev an ce
re
p
r
e
s
e
n
t
a
t
i
v
e
s
of
th
e
ba
r
g
a
i
n
i
n
g
un
i
t
ha
v
i
n
g
th
e
du
t
i
e
s
an
d
re
s
p
o
n
s
i
b
i
l
i
t
i
e
s
es
t
a
b
l
i
s
h
e
d
b yth
i
s
Ar
t
i
c
l
e
.
Th
e
UN
I
O
N
sh
a
l
l
no
t
i
f
y
th
e
EM
P
L
O
Y
E
R
in
wr
i
t
i
n
g
of
th
e
na
m
e
s
of
su
c
h
U NI O N
Re
p
r
e
s
e
n
t
a
t
i
v
e
s
an
d
of
th
e
i
r
su
c
c
e
s
s
o
r
s
wh
e
n
so
de
s
i
g
n
a
t
e
d
as
pr
o
v
i
d
e
d
by
Se
c
t
i
o
n
7 .2
o fth
i
s
AG
R
E
E
M
E
N
T
.
PR
O
C
E
S
S
I
N
G
OF
A
GR
I
E
V
A
N
C
E
It
is
re
c
o
g
n
i
z
e
d
an
d
ac
c
e
p
t
e
d
by
th
e
UN
I
O
N
an
d
th
e
EM
P
L
O
Y
E
R
th
a
t
th
e
pr
o
c
e
s
s
i
n
g
gr
i
e
v
a
n
c
e
s
as
he
r
e
i
n
a
f
t
e
r
pr
o
v
i
d
e
d
is
li
m
i
t
e
d
by
th
e
jo
b
du
t
i
e
s
an
d
re
s
p
o
n
s
i
b
i
l
i
t
i
e
s
of
em
p
l
o
y
e
e
s
an
d
sh
a
l
l
th
e
r
e
f
o
r
e
be
ac
c
o
m
p
l
i
s
h
e
d
du
r
i
n
g
no
r
m
a
l
wo
r
k
i
n
g
ho
u
r
s
on
l
y
w he n
co
n
s
i
s
t
e
n
t
wi
t
h
su
c
h
em
p
l
o
y
e
e
du
t
i
e
s
an
d
re
s
p
o
n
s
i
b
i
l
i
t
i
e
s
.
Th
e
ag
g
r
i
e
v
e
d
em
p
l
o
y
e
e
a n d
aUN
I
ON
Re
p
r
e
s
e
n
t
a
t
i
v
e
sh
a
l
l
be
al
l
o
w
e
d
a
re
a
s
o
n
a
b
l
e
am
o
u
n
t
of
ti
m
e
wi
t
h
o
u
t
lo
s
s
in
pa
y
wh
e
n
a
gr
i
e
v
a
n
c
e
is
in
v
e
s
t
i
g
a
t
e
d
an
d
pr
e
s
e
n
t
e
d
to
th
e
EM
P
L
O
Y
E
R
du
r
i
n
g
no
r
m
a
l
wo
r
k
i
n
g
h o u r s
pr
o
v
i
d
e
d
th
a
t
th
e
em
p
l
o
y
e
e
an
d
th
e
UN
I
O
N
Re
p
r
e
s
e
n
t
a
t
i
v
e
ha
v
e
no
t
i
f
i
e
d
an
d
re
c
e
i
v
e
d
t h e
ap
p
r
o
v
a
l
of
th
e
de
s
i
g
n
a
t
e
d
su
p
e
r
v
i
s
o
r
wh
o
ha
s
de
t
e
r
m
i
n
e
d
th
a
t
su
c
h
ab
s
e
n
c
e
is
re
a
s
o
na
b
l
e
an
d
wo
u
l
d
no
t
be
de
t
r
i
m
e
n
t
a
l
to
th
e
wo
r
k
pr
o
g
r
a
m
s
of
th
e
EM
P
L
O
Y
E
R
.
PR
O
C
E
D
U
R
E
Gr
i
e
v
a
n
c
e
s
,
as
de
?
n
e
d
by
Se
c
t
i
o
n
7.
1
,
sh
a
l
l
be
re
s
o
l
v
e
d
in
co
n
f
o
r
m
a
n
c
e
wi
t
h
th
e
fo
l
l
ow
i
ng
pr
o
c
e
d
u
r
e
:
St
e
p
1.
An
em
p
l
o
y
e
e
cl
a
i
m
i
n
g
a
vi
o
l
a
t
i
o
n
co
n
c
e
r
n
i
n
g
th
e
in
t
e
r
p
r
e
t
a
t
i
o
n
or
ap
p
l
i
c
a
t
i
o
n
o fth
i
s
AG
R
E
E
M
E
N
T
sh
a
l
l
,
wi
t
h
i
n
tw
e
n
t
y
-
o
n
e
(2
1
)
ca
l
e
n
d
a
r
da
y
s
af
t
e
r
su
c
h
al
l
e
g
e
d
3
6.
3
6.
4
Th
e
UN
I
O
N
ma
y
de
s
i
g
n
a
t
e
em pl
o
ye
e
s
fr
o
m
th
e
ba
r
g
a
i
n
i
n
g
un
i
t
toac
t
asst
e
w
a
r
d
an
d
al
t
e
r
n
a
t
e
an
d
sh
a
l
l
in
f
o
r
m
th
e
EM
P
L
O
Y
E
R
inwr
i
t
i
ngof
su
c
h
ch
o
i
c
e
an
d
ch
a
n
g
e
s
inth
e
po
s
i
t
i
o
n
s
of
st
e
w
a
r
d
an
d
/
o
r
al
t
e
r
n
a
t
e
.
Th
e
EM
P
L
O
Y
E
R
sh
a
l
l
ma
k
e
s p a c e
av
a
i
la
b
l
eon
th
e
em
p
l
o
y
e
e
bu
l
l
e
t
i
n
bo
a
r
d
fo
r
po
s
t
i
n
g
UN
I
O
N
no
t
i
c
e
(
s
)
an
d
an
n
o
u
n
c
e
m
e
n
t
(
s
)
.
La
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
es
,
In
c
.sh
a
l
l
in
d
e
m
n
i
f
y
th
e
Em
p
l
o
y
e
r
fo
r
an
y
su
c
c
e
s
s
f
u
l
em
p
l
o
y
e
e
cl
a
i
m
fo
r
un
a
u
t
h
o
r
i
z
e
d
em
p
l
o
y
er
d e d u c ti o nma
d
e
by
re
l
y
i
n
g
onLa
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
In
c
.
’
s
su
b
m
i
s
s
i
o
n
of
au
t
h
o
r
i
z
a
t
i
o
ns
orce
r
t
i
?
c
a
t
i
o
n
or
re
g
a
r
d
i
n
g
th
e
em
p
l
o
y
e
e
’
s
au
t
h
o
r
i
z
a
t
i
o
n
fo
r
th e
d u e sde
d
u
c
t
io
n
or
fo
r
an
y
su
c
c
e
s
s
f
u
l
em
p
l
o
y
e
e
cl
a
i
m
fo
r
un
a
u
t
h
o
r
i
z
e
d
em
p
l
o
y
e
r
de
d
u
c
t
i
on
s
by
re
l
y
i
n
gon
in
f
o
r
m
a
t
i
o
n
fr
o
m
La
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
In
c
re
g
a
r
d
i
n
g
ch
a
n
g
i
n
g
o rca
n
c
el
i
n
gdu
e
s
de
d
u
c
t
i
o
n
s
in
c
l
u
d
i
n
g
an
y
re
a
s
o
n
a
b
l
e
at
t
o
r
n
e
y
fe
e
s
an
d
li
t
i
g
a
t
i
o
n
co
s
t
s
.
A
7-EMLO
Y
IG
H
T
S
-GIE
V
A
CEOC
E
D
U
R
E
Page 13 of 356
AR
B
St
e
p
2.
St
e
p
3.
ha
s
oc
c
u
r
r
e
d
,
pr
e
s
e
n
t
su
c
h
gr
i
e
v
a
n
c
e
to
th
e
em
p
l
o
y
e
e
'
s
su
p
e
r
v
i
s
o
r
as
de
s
i
g
n
a
t
e
d
by
th
e
EM
P
L
O
Y
E
R
.
Th
e
EM
P
L
O
Y
E
R
-
d
e
s
i
g
n
a
t
e
d
re
p
r
e
s
e
n
t
a
t
i
v
e
wi
l
l
di
s
c
u
s
s
an
d
gi
v
e
an
an
s
w
e
r
to
th
e
em
p
l
o
y
e
e
an
d
th
e
Un
i
o
n
as
to
su
c
h
St
e
p
1
gr
i
e
v
a
n
c
e
wi
t
h
i
n
te
n
(1
0
)
ca
l
e
n
d
a
r
da
y
s
af
t
e
r
re
c
e
i
p
t
.
A
gr
i
e
v
a
n
c
e
no
t
re
s
o
l
v
e
d
in
St
e
p
1
an
d
ap
p
e
a
l
e
d
to
St
e
p
2
sh
a
l
l
be
pl
a
c
e
d
in
wr
i
t
i
n
g
by
th
e
Un
i
o
n
,
se
t
t
i
n
g
fo
r
t
h
th
e
na
t
u
r
e
of
th
e
gr
i
e
v
a
n
c
e
,
th
e
fa
c
t
s
on
wh
i
c
h
it
is
ba
s
e
d
,
th
e
pr
o
v
i
s
i
o
n
or
pr
o
v
i
s
i
o
n
s
of
th
e
AG
R
E
E
M
E
N
T
al
l
e
g
e
d
l
y
vi
o
l
a
t
e
d
,
th
e
re
m
e
d
y
re
q
u
e
s
t
e
d
,
an
d
sh
a
l
l
be
ap
p
e
a
l
e
d
to
St
e
p
2
wi
t
h
i
n
te
n
(1
0
)
ca
l
e
n
d
a
r
da
y
s
af
t
e
r
th
e
EM
P
L
O
Y
E
R
-
de
s
i
g
n
a
t
e
d
re
p
r
e
s
e
n
t
a
t
i
v
e
'
s
?n
a
l
an
s
w
e
r
in
St
e
p
1.
An
y
gr
i
e
v
a
n
c
e
no
t
ap
p
e
a
l
e
d
in
wr
i
t
i
n
g
to
St
e
p
2
by
th
e
UN
I
O
N
wi
t
h
i
n
te
n
(1
0
)
ca
l
e
n
d
a
r
da
y
s
sh
a
l
l
be
co
n
s
i
d
e
r
e
d
wa
i
v
e
d
.
If
ap
p
e
a
l
e
d
,
th
e
wr
i
t
t
e
n
gr
i
e
v
a
n
c
e
sh
a
l
l
be
pr
e
s
e
n
t
e
d
by
th
e
UN
I
O
N
an
d
di
s
c
u
s
s
e
d
wi
t
h
th
e
EM
P
L
O
Y
E
R
-
d
e
s
i
g
n
a
t
e
d
St
e
p
2
Re
p
r
e
s
e
n
t
a
t
i
v
e
.
Th
e
EM
P
L
O
Y
E
R
—
de
s
i
g
n
a
t
e
d
St
e
p
2
Re
p
r
e
s
e
n
t
a
t
i
v
e
sh
a
l
l
gi
v
e
th
e
UN
I
O
N
th
e
EM
P
L
O
Y
E
R
‘
S
St
e
p
2
an
s
w
e
r
in
wr
i
t
i
n
g
wi
t
h
i
n
te
n
(1
0
)
ca
l
e
n
d
a
r
da
y
s
af
t
e
r
re
c
e
i
p
t
of
su
c
h
St
e
p
2
gr
i
e
v
a
n
c
e
.
A
gr
i
e
v
a
n
c
e
no
t
re
s
o
l
v
e
d
in
St
e
p
2
ma
y
be
ap
p
e
a
l
e
d
to
St
e
p
3
wi
t
h
i
n
te
n
(1
0
)
ca
l
e
n
d
a
r
da
y
s
fo
l
l
o
w
i
n
g
th
e
EM
P
L
O
Y
E
R
-
d
e
s
i
g
n
a
t
e
d
Re
p
r
e
s
e
n
t
a
t
i
v
e
'
s
?n
a
l
St
e
p
2
an
s
w
e
r
.
An
y
gr
i
e
v
a
n
c
e
no
t
ap
p
e
a
l
e
d
in
wr
i
t
i
n
g
to
St
e
p
3
by
th
e
UN
I
O
N
wi
t
h
i
n
te
n
(1
0
)
ca
l
e
n
d
a
r
da
y
s
sh
a
l
l
be
co
n
s
i
d
e
r
e
d
wa
i
v
e
d
.
A
gr
i
e
v
a
n
c
e
un
r
e
s
o
l
v
e
d
in
St
e
p
2
an
d
ap
p
e
a
l
e
d
to
St
e
p
3
by
th
e
UN
I
O
N
sh
a
l
l
be
su
b
m
i
t
t
e
d
to
ar
b
i
t
r
a
t
i
o
n
su
b
j
e
c
t
to
th
e
pr
o
v
i
s
i
o
n
s
of
th
e
Pu
b
l
i
c
Em
p
l
o
y
m
e
n
t
La
b
o
r
Re
l
a
t
i
o
n
s
Ac
t
of
19
7
1
,
as
am
e
n
d
e
d
.
Fo
r
gr
i
e
v
a
n
c
e
ma
t
t
e
r
s
in
v
o
l
v
i
n
g
wr
i
t
t
e
n
di
s
c
i
p
l
i
n
a
r
y
ac
t
i
o
n
,
di
s
c
h
a
r
g
e
,
or
te
r
m
i
n
a
t
i
o
n
,
th
e
as
s
i
g
n
m
e
n
t
of
an
ar
b
i
t
r
a
t
o
r
sh
a
l
l
be
co
n
s
i
s
t
e
n
t
wi
t
h
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
62
6
.
8
9
2
.
Fo
r
al
l
ot
h
e
r
gr
i
e
v
a
n
c
e
s
,
th
e
se
l
e
c
t
i
o
n
of
an
ar
b
i
t
r
a
t
o
r
sh
a
l
l
be
ma
d
e
in
ac
c
o
r
d
a
n
c
e
wi
t
h
th
e
“R
u
l
e
s
Go
v
e
r
n
i
n
g
th
e
Ar
b
i
t
r
a
t
i
o
n
of
Gr
i
e
v
a
n
c
e
s
”
as
es
t
a
b
l
i
s
h
e
d
by
th
e
Bu
r
e
a
u
of
Me
d
i
a
t
i
o
n
Se
r
v
i
c
e
s
.
7.
5
IT
R
A
T
O
R
'
S
AU
T
H
O
R
I
T
Y
Th
e
ar
b
i
t
r
a
t
o
r
sh
a
l
l
ha
v
e
no
ri
g
h
t
to
am
e
n
d
,
mo
d
i
f
y
,
nu
l
l
i
f
y
,
ig
n
o
r
e
,
ad
d
to
,
or
su
b
t
r
a
c
t
fr
o
m
th
e
te
r
m
s
an
d
co
n
d
i
t
i
o
n
s
of
th
i
s
AG
R
E
E
M
E
N
T
.
Th
e
ar
b
i
t
r
a
t
o
r
sh
a
l
l
co
n
s
i
d
e
r
an
d
de
c
i
d
e
on
l
y
th
e
sp
e
c
i
?
c
is
s
u
e
(
s
)
su
b
m
i
t
t
e
d
in
wr
i
t
i
n
g
by
th
e
EM
P
L
O
Y
E
R
an
d
th
e
UN
I
O
N
an
d
sh
a
l
l
ha
v
e
no
au
t
h
o
r
i
t
y
to
ma
k
e
a
de
c
i
s
i
o
n
on
an
y
ot
h
e
r
is
s
u
e
no
t
so
su
b
m
i
t
t
e
d
.
th
e
fo
r
c
e
an
d
ef
f
e
c
t
of
la
w
.
Th
e
ar
b
i
t
r
a
t
o
r
'
s
de
c
i
s
i
o
n
sh
a
l
l
be
su
b
m
i
t
t
e
d
in
wr
i
t
i
n
g
wi
t
h
i
n
th
i
r
t
y
(3
0
)
da
y
s
fo
l
l
o
w
i
n
g
th
e
cl
o
s
e
of
th
e
he
a
r
i
n
g
or
th
e
su
b
m
i
s
s
i
o
n
of
br
i
e
f
s
by
th
e
pa
r
t
i
e
s
,
wh
i
c
h
e
v
e
r
be
la
t
e
r
,
un
l
e
s
s
th
e
pa
r
t
i
e
s
ag
r
e
e
to
an
ex
t
e
n
s
i
o
n
.
Th
e
de
c
i
s
i
o
n
sh
a
l
l
be
bi
n
d
i
n
g
on
bo
t
h
th
e
EM
P
L
O
Y
E
R
an
d
th
e
UN
I
O
N
an
d
sh
a
l
l
be
ba
s
e
d
so
l
e
l
y
on
th
e
ar
b
i
t
r
a
t
o
r
'
s
in
t
e
r
p
r
e
t
a
t
i
o
n
or
ap
p
l
i
c
a
t
i
o
n
of
th
e
ex
p
r
e
s
s
te
r
m
s
of
th
i
s
AG
R
E
E
M
E
N
T
an
d
to
th
e
fa
c
t
s
of
th
e
gr
i
e
v
a
n
c
e
pr
e
s
e
n
t
e
d
.
Th
e
fe
e
s
an
d
ex
p
e
n
s
e
s
fo
r
th
e
ar
b
i
t
r
a
t
o
r
'
s
se
r
v
i
c
e
s
an
d
pr
o
c
e
e
d
i
n
g
s
sh
a
l
l
be
bo
r
n
e
eq
u
a
l
l
y
by
th
e
EM
P
L
O
Y
E
R
an
d
th
e
UN
I
O
N
pr
o
v
i
d
e
d
th
a
t
ea
c
h
pa
r
t
y
sh
a
l
l
be
re
s
p
o
n
s
i
b
l
e
fo
r
co
m
p
e
n
s
a
t
i
n
g
it
s
ow
n
re
p
r
e
s
e
n
t
a
t
i
v
e
s
an
d
wi
t
n
e
s
s
e
s
.
If
ei
t
h
e
r
pa
r
t
y
de
s
i
r
e
s
a
ve
r
b
a
t
i
m
re
c
o
r
d
of
th
e
pr
o
c
e
e
d
i
n
g
s
,
it
ma
y
ca
u
s
e
su
c
h
a
re
c
o
r
d
to
be
ma
d
e
,
pr
o
v
i
d
e
d
it
pa
y
s
fo
r
th
e
Page 14 of 356
7.
6
7.
7
re
c
o
r
d
.
If
bo
t
h
pa
r
t
i
e
s
de
s
i
r
e
a
ve
r
b
a
t
i
m
re
c
o
r
d
of
th
e
pr
o
c
e
ed
i
n
g
s
th
e
co
s
t
sh
a
l
l
be
sh
a
r
e
d
eq
u
a
l
l
y
.
WA
I
V
E
R
If
a
gr
i
e
v
a
n
c
e
is
no
t
pr
e
s
e
n
t
e
d
wi
t
h
i
n
th
e
ti
m
e
li
m
i
t
s
se
t
fo
r
t
h
ab
o
v
e
,
i tshal
l
be
co
n
s
i
d
e
r
e
d
"w
a
i
v
e
d
.
"
If
a
gr
i
e
v
a
n
c
e
is
no
t
ap
p
e
a
l
e
d
to
th
e
ne
x
t
st
e
p
wi
t
h
i
n
th
e
s
ti
m
e
li
m
i
t
orag
r
e
e
d
ex
t
e
n
s
i
o
n
th
e
r
e
o
f
,
it
sh
a
l
l
be
co
n
s
i
d
e
r
e
d
se
t
t
l
e
d
on
th
e
ba
s
i
s
of
th
e
E
la
s
t
an
s
w
e
r
.
If
th
e
EM
P
L
O
Y
E
R
do
e
s
no
t
an
s
w
e
r
a
gr
i
e
v
a
n
c
e
or
an
ap
p
e
a
l
th
e
r
e
o
f
th
e
sp
e
c
i
?
e
d
ti
m
e
li
m
i
t
s
,
th
e
UN
I
O
N
ma
y
el
e
c
t
to
tr
e
a
t
th
e
gr
i
e
v
a
n
c
e
as
de
n
i
e
d
at
th
a
t
an
d
im
m
e
d
i
a
te
l
y
ap
p
e
a
l
th
e
gr
i
e
v
a
n
c
e
to
th
e
ne
x
t
st
e
p
.
Th
e
ti
m
e
li
m
i
t
in
ea
c
h
st
e
p
ma
y
be
ex
te nd
ed
bymu
t
u
a
l
wr
i
t
t
e
n
ag
r
e
e
m
e
n
t
of
th
e
EM
P
L
O
Y
E
R
an
d
th
e
UN
I
O
N
.
EL
E
C
T
I
O
N
OF
RE
M
E
D
Y
If
,
as
a
re
s
u
l
t
of
th
e
wr
i
t
t
e
n
EM
P
L
O
Y
E
R
re
s
p
o
n
s
e
in
St
e
p
2,
th
e
gr
i
ev an ce
re
m
a
i
n
sun
r
e
s
o
l
v
e
d
an
d
if
th
e
gr
i
e
v
a
n
c
e
in
v
o
l
v
e
s
th
e
su
s
p
e
n
s
i
o
n
,
de
m
o
t
i
o
n
,
or
di
s
c
h
a
r
g
e
anem
p
l
o
ye
e
wh
o
ha
s
co
m
p
l
e
t
e
d
th
e
re
q
u
i
r
e
d
pr
o
b
a
t
i
o
n
a
r
y
pe
r
i
o
d
,
th
e
gr
i
e
v
a
n
c
e
ma
y
be
a p p e a l e d
ei
t
h
e
r
toSt
e
p
3or
a
pr
o
c
e
d
u
r
e
su
c
h
as
Ci
v
i
l
Se
r
v
i
c
e
,
Ve
t
e
r
a
n
'
s
Pr
e
f
e
r
e
n
c
e
,
or
Fa
i
r
Em
p
l
oy
m
e
nt
.
Ifap
p
e
a
l
e
d
toan
y
pr
o
c
e
d
u
r
e
ot
h
e
r
th
a
n
St
e
p
3,
th
e
gr
i
e
v
a
n
c
e
is
no
t
su
b
j
e
c
t
to
th
e
ar
b
i
t
r
at
i
o
n
pr
o
c
e
du
r
e
aspr
o
v
i
d
e
d
in
St
e
p
3.
Th
e
ag
g
r
i
e
v
e
d
em
p
l
o
y
e
e
sh
a
l
l
in
d
i
c
a
t
e
in
wr
i
t
i
n
g
wh
i
c
h
p r o c e d u r e
is
tobeut
i
l
i
z
e
d
,
St
e
p
3
or
an
o
t
h
e
r
ap
p
e
a
l
pr
o
c
e
d
u
r
e
,
an
d
sh
a
l
l
si
g
n
a
st
a
t
e
m
e
n
t
to
th
e
ef
f
e
ct
t h a tth
e
ch
o
i
c
e
of
an
y
ot
h
e
r
he
a
r
i
n
g
pr
e
c
l
u
d
e
s
th
e
ag
g
r
i
e
v
e
d
em
p
l
o
y
e
e
fr
o
m
ma
k
i
n
g
a
su
b
s
e
q
u
e
nt
a p p e a lth
r
o
u
g
h
St
e
p
3.
Wi
t
h
re
s
p
e
c
t
to
st
a
t
u
t
e
s
un
d
e
r
th
e
ju
r
i
s
d
i
c
t
i
o
n
of
th
e
Un
i
t
e
d
St
a
t
e
s
E q u al
Em
pl
o
y
me
n
t
Op
p
o
r
t
u
n
i
t
y
Co
m
m
i
s
s
i
o
n
,
an
em
p
l
o
y
e
e
pu
r
s
u
i
n
g
a
st
a
t
u
t
o
r
y
re
m
e
d
y
no
t
pr
e
c
l
u
de
d
fr
o
m
al
s
o
pu
r
s
u
i
n
g
an
ap
p
e
a
l
un
d
e
r
th
i
s
gr
i
e
v
a
n
c
e
pr
o
c
e
d
u
r
e
.
9.
2
Se
n
i
o
r
i
t
y
sh
a
l
l
de
te r m in edby
th
e
em
p
l
o
y
e
e
'
s
le
n
g
t
h
of
co
n
t
i
n
u
o
u
s
em
p
l
o
y
m
e
n
t
wi
t
h
th
e
Po
l
i
c
e
De
p
a
r
t
m
e
n
t
an d
inanap
p
r
o
p
r
i
a
t
e
lo
c
a
t
i
o
n
.
Se
n
i
o
r
i
t
y
ro
s
t
e
r
s
ma
y
bema
i
n
t
a
i
n
e
d
by
th
e
Ch
i
e
f
on
th
e
ba
si
s
of
ti
m
e
ingr
a
d
e
an
d
ti
m
e
wi
t
h
i
n
sp
e
c
i
?
c
cl
a
s
s
i
?
c
a
t
i
o
n
s
.
Du
r
i
n
g
th
e
pr
o
ba
t
i
on
a
r
y
pe
r
i
o
d
,
ane
w
l
y
hi
r
e
d
or
re
-
h
i
r
e
d
em
p
l
o
y
e
e
ma
y
bedi
s
c
h
a
r
g
e
d
at
th
e
so
l
e
di
s
c
r
e
t
i
o
n
of
th e
Du
r
i
n
g
th
e
pr
o
b
a
t
i
o
n
a
r
y
pe
r
i
o
d
,
apr
o
m
o
t
e
d
or
re
a
s
s
i
g
n
e
d
em
p
l
o
y
e
e
ma
y
re pl
ac ed
inth
e
i
r
pr
e
v
i
o
u
s
po
s
i
t
i
o
n
at
th
e
so
l
e
di
s
c
r
e
t
i
o
n
of
th
e
EM
P
L
O
Y
E
R
5
Th
i
s
AG
R
E
E
ME
N
T
issu
b
j
e
c
t
tola
w
s
of
th
e
Un
i
t
e
d
St
a
t
e
s
an
d
th
e
St
a
t
e
ofMi
n
n
e
s
o
t
a
.
In
th
e
ev
e
n
t
an
y
pr
o
v
i
s
i
o
n
of
t h is
A G R E E M E N Tsh
a
l
l
behe
l
d
tobe
co
n
t
r
a
r
y
tola
w
by
aco
u
r
t
of
co
m
p
e
t
e
n
t
ju
r
i
s
d
i
c
t
i
o
n
,
or
ad
m
i
n
i
s
t
r
a
t
i
ve
ru
l
in
g
or
isinvi
o
l
a
t
i
o
n
of
le
g
i
s
l
a
t
i
o
n
orad
m
i
n
i
s
t
r
a
t
i
v
e
re
g
u
l
a
t
i
o
n
s
,
su
c
h
pr
o
v
i
s
i
o
n
s
sh
a
l
l
be
vo
i
d
e
d
.
Al
l
pr
o
v
i
si
o
n
s
of
th
i
s
AG
R
E
E
M
E
N
T
sh
a
l
l
co
n
t
i
n
u
e
infu
l
l
fo
r
c
e
an
d
ef
f
e
c
t
.
Th
e
vo
i
d
e
d
pr
o
v
i
s
i
o
n
ma
y
re
-
ne
g
ot
i
at
e
dat
th
e
wr
i
t
t
e
n
re
q
u
e
s
t
of
ei
t
h
e
r
pa
r
t
y
.
A R T I C L E
8-SA
V
I
N
G
S
CL
A
U
S
E
A
9—SE
N
I
O
R
I
T
Y
Page 15 of 356
||
,
l
9.
4
9.
5
An
em
p
l
o
y
e
e
wh
o
is
pr
o
m
o
t
e
d
fr o m
th
e
pa
t
r
o
l
or
se
r
g
e
a
n
t
di
v
i
s
i
o
n
s
toth
e
ra
n
k
of
ca
p
t
a
i
n
ma
y
re
t
u
r
n
to
th
e
i
r
pr
e
v
i
o
u
s
po
s
i
t
i
o
n
lo
s
s
of
se
n
i
o
r
i
t
y
.
Th
i
s
pr
o
v
i
s
i
o
n
ap
p
l
i
e
s
wh
e
t
h
e
r
th
e
em
p
l
o
y
e
e
is
de
m
o
t
e
d
or
vo
l
u
n
t
a
r
i
ly
re
t
ur ns
toth
e
pa
t
r
o
l
di
v
i
s
i
o
n
.
A
re
d
u
c
t
i
o
n
of
th
e
wo
r
k
fo
r
c
e
wi
l
l
ac
c
om pl
i
s
he
d
on
th
e
ba
s
i
s
of
cl
a
s
s
i
?
c
a
t
i
o
n
se
n
i
o
r
i
t
y
.
Em
p
l
o
y
e
e
s
sh
a
l
l
be
re
c
a
l
l
e
d
fr
o
m
on
th
e
ba
s
i
s
of
se
n
i
o
r
i
t
y
.
An
em
p
l
o
y
e
e
on
la
y
o
f
f
sh
a
l
l
ha
v
e
th
e
op
p
o
r
t
u
n
i
t
y
to
re
t
u
r
n
to
wi
t
h
i
ntw
o
ye
a
r
s
of
th
e
ti
m
e
of
th
e
i
r
la
y
o
f
f
be
f
o
r
e
an
y
ne
w
em
p
l
o
y
e
e
is
hi
r
e
d
.
Em
p
l
o
y
e
e
s
wi
t
h
cl
a
s
s
i
?
c
a
t
i
o
n
se ni or
i
ty
wi
l
l
begi
v
e
n
pr
e
f
e
r
e
n
c
e
wi
t
h
re
g
a
r
d
totr
a
n
s
f
e
r
,
jo
b
cl
a
s
s
i
f
i
c
a
t
i
o
n
as
s
i
g
n
m
e
n
t
s
an
d
pr o m ot
i
on
s
wh
e
n
th
e
jo
b
-
r
e
l
e
v
a
n
t
qu
a
l
i
f
i
c
a
t
i
o
n
s
ofem
p
l
o
y
e
e
s
ar
e
eq
u
a
L
Va
c
a
t
i
o
n
pe
r
i
o
d
s
to
a
ma
x
i
m
u
m
o f
t w o(2
)
we
e
k
s
sh
a
l
l
be
se
l
e
c
t
e
d
on
th
e
ba
s
i
s
of
se
n
i
o
r
i
t
y
asa
Ca
p
t
a
i
n
un
t
i
l
Fe
b
r
u
a
r
y
15
t
h
of
ea ch
ca
le nd
arye
a
r
.
10
.
1
10
.
2
10
.
3
10
.
4
10
.
5
10
.
6
Th
e
EM
P
L
O
Y
E
R
wi
l
l
di
s
c
i
p
l
i
n
e
em
p
l
o
y
e
e
s
fo r
jca
u
s
e
on
l
y
.
Di
s
c
i
p
l
i
n
e
wi
l
l
be
inon
e
ormo
r
e
of
th
e
fo
l
l
o
w
i
n
g
fo
r
m
s
:
a)b)C)
d)6)
or
a
l
re
p
r
i
m
a
n
d
;
wr
i
t
t
e
n
re
p
r
i
m
a
n
d
;
su
s
p
e
n
s
i
o
n
;
de
m
o
t
i
o
n
;
or
di
s
c
h
a
r
g
e
.
Su
s
p
e
n
s
i
o
n
s
,
de
m
o
t
i
o
n
s
an
d
di
s
c
h
a
r
g
e
s
wi
l
l
be
iwr
i
tt
e
nfo
r
m
.
Wr
i
t
t
e
n
re
p
r
i
m
a
n
d
s
,
no
t
i
c
e
s
of
su
s
p
e
n
s
i
o
n
,
no
t
ic
e
s
ofde
m
o
t
io
n
,
an
d
no
t
i
c
e
ofdi
s
c
h
a
r
g
e
wh
i
c
h
ar
e
to
be
c
o
m
e
pa
r
t
of
an
em
p
l
o
y
e
e
'
s
pe
r
s
o
n
n
e
l
?l
e
be
re
a
d
an
d
ac
k
n
o
w
l
e
d
g
e
d
by
si
g
n
a
t
u
r
e
of
th
e
em
p
l
o
y
e
e
.
Em
p
l
o
y
e
e
s
wi
l
l
re
c
e
i
v
e
a
co
p
y
s u c hre
p
r
i
m
an
d
s
an
d
/
o
r
no
t
i
c
e
s
.
Em
p
l
o
y
e
e
s
ma
y
ex
a
m
i
n
e
th
e
i
r
ow
n
in
d
i
v
i
d
u
a
l
?l
e
s
at
re
a
s
o
n
a
b
l
e
ti
m
e
s
un
d
e
r
th
e
di
r
e
c
t
su
p
e
r
v
i
s
i
o
n
of
th
e
EM
P
L
O
Y
E
R
.
Em
p
l
o
y
e
e
s
wi
l
l
no
t
be
qu
e
s
t
i
o
n
e
d
re
g
a
r
d
i
n
g
a
th
a
t
ma
y
le
a
d
todi
s
c
i
p
l
i
n
e
un
l
e
s
s
?r
s
t
gi
v
e
n
th
e
op
p
o
r
t
u
n
i
t
y
to
ha
v
e
un
i
o
n
re
p
r
e
s
e
n
t
a
t
i
o
n
pr
es e nt
.
Th
e
no
r
ma
l
wo
r
kye
a
r
is
tw
o
th
o
u
s
a
n
d
an
d
ei
g
h
t
y
(2
0
8
0
)
ho
u
r
s
.
As
ex
e
m
p
t
em
p
l
o
y
e
e
s
,
Ca
p
t
a
i
n
s
ar
e
ex
p
e
ct
e
d
towo
r
k
ho
u
r
s
ne
c
e
s
s
a
r
y
tope
r
f
o
r
m
th
e
i
r
du
t
i
e
s
,
ge
n
e
r
a
l
l
y
wi
t
h
i
n
40ho
u
r
s
,
Mo
n
d
a
y
th
r
o
u
g
h
A R T I C L E
11
-WO
R
K
SC
H
E
D
U
L
E
S
A
10
-
DI
S
C
I
P
L
I
N
E
Page 16 of 356
IN
U
13
.
1
13
.
2
13
.
3
Th
e
Em
p
l
o
y
e
r
’
s
co
n
t
r
i
b
u
t
i
o
n
sh
a
l
l
co
v
e
r
th
e
co
s
t
of
si
n
gl
e
ba
si cli
f
e
,
si
n
g
l
e
de
n
t
a
l
,
an
d
si
n
g
l
e
he
a
l
t
h
in
s
u
r
a
n
c
e
co
v
e
r
a
g
e
at
10
0
%
.
Fo
r
th
e
Em
p
l
o
y
e
e
p l u s
Ch
il
d
(re
n
),Em
p
l
o
y
e
e
pl
u
s
Sp
o
u
s
e
,
or
Fa
m
i
l
y
co
v
e
r
a
g
e
,
th
e
Em
p
l
o
y
e
r
’
s
co
n
t
r
i
b
u
t
i
o
n
sh
a
l
l
co
v
e
r
1 0 0 %of
th
e
co
s
t
ofba
s
i
c
li
f
e
an
d
de
n
t
a
l
in
s
u
r
a
n
c
e
fo
r
th
e
Em
p
l
o
y
e
e
an
d
pr
o
v
i
d
e
a
he
a
l
t
h
co
n
t
r
i
b
u
t
i
on
eq
u
a
l
toth
a
t
of
th
e
pr
e
v
i
o
u
s
ye
a
r
in
c
r
e
a
s
e
d
or
de
c
r
e
a
s
e
d
by
an
am
o
u
n
t
eq
u
al
t osi
x
t
ype
r
c
e
n
t
(6
0
%
)
of
th
e
in
c
r
e
a
s
e
or
de
c
r
e
a
s
e
to
th
e
hi
g
h
e
s
t
va
l
u
e
pl
a
n
.
Th
e
Ci
t
y
’
s
co
n
t
r
i
b
u
t
i
o
n
am
o
u
n
t
in
c
l
u
d
e
s
do
l
l
a
r
s
al
l
o
c
a
t
e
d
toei
t
h
er
th
e
HR
A
orHS
A
.
*
Co
n
t
r
i
b
u
t
i
o
n
s
va
r
y
ba
s
e
d
on
ea
c
h
pl
a
n
an
d
ne
t
w
o
r
k
se
le ct ed
.
Em
p
l
o
ye
e
s
wh
o
wa
i
v
e
he
a
l
t
h
in
s
u
r
a
n
c
e
co
v
e
r
a
g
e
sh
a
l
l
no
t
be
pr
o
v
i
d
e
d
wi
t
h
an
y
co
m
p
en
s
a
t
io
n
inli
e
u
of
co
v
e
r
a
g
e
.
An
y
Em
p
l
o
y
e
r
co
n
t
r
i
b
u
t
i
o
n
do
l
l
a
r
s
re
m
a
i
n
i
n
g
af
t
e
r
ba
s
i
c
l i f eco
v
e
r
ag
e
de
d
u
c
t
i
o
n
,
an
d
op
t
i
o
n
a
l
em
p
l
o
y
e
e
pu
r
c
h
a
s
e
d
he
a
l
t
h
in
s
u
r
a
n
c
e
,
de
n
t
a
l
in
s
u
r
a
n
c
e
,
in
s
u
r
a
nc
e
,
an
d
sh
o
r
t
-
t
e
r
m
di
s
a
b
i
l
i
t
y
in
s
u
r
a
n
c
e
sh
a
l
l
be
ei
t
h
e
r
pa
i
d
ou
t
in
ta
x
a
b
l
e
ca
sh
orco
n
t
r
ib
u
t
e
dtoth
e
Em
p
l
o
y
e
e
’
s
de
f
e
r
r
e
d
co
m
p
e
n
s
a
t
i
o
n
ac
c
o
u
n
t
an
d
/
o
r
He
a
l
t
h
Sa
v
i
n
g
s
A c c o u n t
(B
S
A
)
.
Th
e
em
p
l
o
y
e
e
wi
l
l
pa
y
an
y
ex
c
e
s
s
of
th
e
mo
n
t
h
l
y
co
n
t
r
i
b
u
t
i
o
n
by
th
e
Em
p
l
o
y
e
r
pa
y
r
o
l
l
de
d
u
c
t
i
o
n
.
Th
e
EM
P
L
O
Y
E
R
sh
a
l
l
pr
o
v
i
d
e
a
$5
0
,
0
0
0
te
r
m
li
f
e
in
s
u
ra
n
c
e
po
l
i
c
yfo
r
ea
c
h
em
p
l
o
y
e
e
.
Th
e
EM
P
L
O
Y
E
R
sh
a
l
l
pr
o
v
i
d
e
lo
n
g
-
t
e
r
m
di
s
a
b
i
l
i
t
y
in
s
ur
a
nc
e
toit
s
em
p
l
o
y
e
e
s
.
11
.
2
11
.
3
Be
c
a
u
s
e
ex
e
m
p
t
em
p
l
o
y
e
e
s
a r e
pa
idfo
r
th
e
du
t
i
e
s
th
e
y
pe
r
f
o
r
m
,
th
e
y
ha
v
e
mo
r
e
?e
x
i
b
i
l
i
t
y
in
th
e
i
r
wo
r
k
sc
h
e
d
u
l
e
s
wh
i
c
h
a f f e c t s
ho
w
pa
i
d
le
a
v
e
isus
e
d
.
1.
An
ex
e
m
p
t
em
p
l
o
y
e
e
mu
s
t
hi
s
/
h
e
r
Su
p
e
r
v
i
s
o
r
of
an
y
ab
s
e
n
c
e
.
Th
e
su
p
e
r
v
i
s
o
r
ma
i
n
t
a
i
n
s
th
e
ri
g
h
t
to
de
n
y
th
e
ab
s
e
n
c
e
acr
i
t
i
c
albu
s
i
n
e
s
s
ne
e
d
.
2.
An
ex
e
m
p
t
em
p
l
o
y
e
e
do
e
s
ha
v
etous
e
ac
c
r
u
e
d
le
a
v
e
inth
e
ca
s
e
ofpa
r
t
i
a
l
da
y
ab
s
e
n
c
e
s
.
3.
An
ex
e
m
p
t
em
p
l
o
y
e
e
mu
s
t
ac
c
r
ue
d
le
a
v
e
ifth
e
y
wi
l
l
be
ou
t
of
th
e
of
?
c
e
fo
r
afu
l
l
da
y
fo
r
pe
r
s
o
n
a
l
re
a
s
o
n
s
(s
i
c
k
,
va
c
a
t
i
on
,
PT O)
.
Th
e
EM
P
L
O
Y
E
R
sh
a
l
l
pr
o
v
i
de
ti m eup
toon
e
(1
)
ho
u
r
fo
r
ex
e
r
c
i
s
e
/
p
h
y
s
i
c
a
l
?t
n
e
s
s
du
r
i
n
g
ash
i
f
t
pr
o
v
i
d
i
n
g
th
e
r
e
is
ad
e
q
u
a
t
e
c o v e r a g e ,
an
d
su
b
j
e
c
t
tosu
p
e
r
v
i
s
o
r
ap
p
r
o
v
a
l
.
Th
i
s
ti
m
e
in
c
l
u
d
e
s
be
i
n
g
dr
e
s
s
e
d
an
d
re
a
d
y
fo
r
wi
t
hi
n
on
e
ho
u
r
ti
m
e
fr
a
m
e
.
12
.
1
Fi
e
l
d
Of
?
c
e
r
Pa
y
—If
th
e
r
e
isade
p
a
r
t
m
e
n
t
a
l
ne
e
d
toas
s
i
g
n
Ca
p
t
a
i
n
s
to?e
l
d
tr
a
i
n
i
n
g
of
?
c
e
r
d u ti e s,de
s
i
g
n
a
t
edCa
p
t
a
i
n
s
sh
a
l
l
re
c
e
i
v
e
th
r
e
e
(3
)
ho
u
r
s
atst
r
a
i
g
h
t
ti
m
e
pe
r
sh
i
f
t
.
12
.
2
Co
n
t
ra
c
t
e
d
Of
f
Du
t
y
Pa
y
—Co
n
t
r
a
c
t
e
d
of
f
du
t
y
sh
i
f
t
s
wi
l
l
beof
f
e
r
e
d
?r
s
t
toPa
t
r
o
l
Of
?
c
e
r
s
an
d
Se
r
g
ea
n
t
s
.
Ca
p
t
ai
n
s
wh
o
wo
r
k
co
n
t
r
a
c
t
e
d
of
f
du
t
y
ov
e
r
t
i
m
e
wi
l
l
bepa
i
d
at
th
e
to
p
se
r
g
e
a
n
t
ra
t
e
.
A
12
-WO
GOU
T
OF
CL
A
S
S
I
F
I
C
A
T
I
O
N
A R T I C L E
13
-SRA
N
C
E
Page 17 of 356
14
.
1
14
.
2
Em
p
l
o
y
e
e
s
in
j
u
r
e
d
du
r
i
ng
th epe
r
f
o
rm
a
n
ceof
th
e
i
r
du
t
i
e
s
an
d
th
e
r
e
b
y
re
n
d
e
r
e
d
un
a
b
l
e
towo
r
k
wi
l
l
be
pa
i
d
th
e
di
f
f
e
r
e
n
ce
be
tw ee nth
e
em
p
l
o
y
e
e
'
s
re
g
u
l
a
r
pa
y
an
d
th
eWo
r
k
e
r
'
s
Co
m
p
e
n
s
a
t
i
o
n
in
s
u
r
a
n
c
e
pa
y
m
e
n
t
s
fo
r
p e r i o dno
t
toex
c
e
e
d
fo
u
r
hu
n
d
r
e
d
an
d
ei
g
h
t
y
(4
8
0
)
wo
r
k
ho
u
r
s
pe
r
in
j
u
r
y
no
t
ch
a
r
g
e
d
to
th e
va
c
a
t
i
o
n
,
si
c
k
le
a
v
e
,
orot
h
e
r
ac
c
u
m
u
l
a
t
e
d
be
n
e
?
t
s
af
t
e
r
fo
r
t
y
(4
0
)
wo
r
k
i
n
g
ho
u
r
s
in
i
t
i
al
w ai
ti n gpe
r
i
o
d
pe
r
in
j
u
r
y
.
Th
e
fo
r
t
y
(4
0
)
ho
u
r
s
wa
i
t
i
n
g
pe
r
i
o
d
sh
a
l
l
be
ch
a
r
g
e
d
to
th
e
em
p
l
o
y
e
e'
s
si c kle
a
v
e
ac
c
o
u
n
t
le
s
s
an
yWo
r
k
e
r
'
s
Co
m
p
e
n
s
a
t
i
o
n
in
s
u
r
a
n
c
e
pr
e
m
i
u
m
s
.
Fo
r
pu
r
p
o
s
e
s
th
i
sAr
t
i
c
l
e
,Ca
p
t
a
i
n
s
’
wo
r
k
ho
u
r
s
ar
e
ei
g
h
t
(8
)
ho
u
r
s
pe
r
da
y
,
Mo
n
d
a
y
th
r
o
u
g
h
Fr
i
d
a
y
.
An
em
p
l
o
y
e
e
sh
a
l
l
no
t
r
mo
r
e
th
a
n
th
e
em
p
l
o
y
e
e
'
s
no
r
m
a
l
ta
k
e
ho
m
e
pa
y
asare
s
u
l
t
of
an
y
Ci
t
y
pa
y
su
p
p
l
e
m
e
n
t
to
Co
m
p
e
n
sa
t
i
o
n
be
n
e
?
t
s
.
15
.
1
Em
p
l
o
y
e
e
s
sh
a
l
l
ha
v
e
th
e
ho
l
i
d
a
y
s
li
s
t
e
d
be
l
o
w
o ffwi
t
h
pa
y
.
Ifre
q
u
i
r
e
d
towo
r
k
on
aho
l
i
d
a
y
,
th
e
em
p
l
o
y
e
e
sh
a
l
l
be
al
l
o
w
e
d
to
sw
i
t
c
h
th
e
ho
l
i
d
ay
fo ran
o
t
h
erda
y
of
f
.
Ne
w
Ye
a
r
'
s
Da
y
Ma
r
t
i
n
Lu
t
h
e
r
Ki
n
g
Da
y
Pr
e
s
i
d
e
n
t
'
s
Da
y
Me
m
o
r
i
a
l
Da
y
Ju
n
e
t
e
e
n
t
h
In
d
e
p
e
n
d
e
n
c
e
Da
y
La
b
o
r
Da
y
Ve
t
e
r
a
n
'
s
Da
y
Th
a
n
k
s
g
i
v
i
n
g
Da
y
Th
e
Fr
i
d
a
y
fo
l
l
o
w
i
n
g
Th
a
n
k
s
g
i
v
i
n
g
Ch
r
i
s
t
m
a
s
Ev
e
Da
y
Ch
r
i
s
t
m
a
s
Da
y
15
.
2
Em
p
l
o
y
e
e
s
sh
a
l
l
re
c
e
i
v
e
th
r
e
e
(3
)
?o
a
t
i
n
g
ho
l
id
a
ys
tobeus
e
d
on
ada
y
of
th
e
i
r
ch
o
i
c
e
wi
t
h
ap
p
r
o
v
a
l
fr
o
m
th
e
i
r
su
p
e
r
v
i
s
o
r
.
Ea
c
h
?o
a
t
i
n
g
mu
s
t
be
ta
k
e
n
be
f
o
r
e
th
e
la
s
t
pa
y
pe
r
i
o
d
be
g
i
n
s
in
De
c
e
m
b
e
r
an
d
wi
l
l
co
v
e
r
up
to
on
e
up
toama
x
i
m
u
m
of
te
n
(1
0
)
ho
u
r
s
.
E m pl o y ee
sma
y
su
p
p
l
e
m
e
n
t
Mi
n
n
e
s
o
t
a
Pa
i
d
Le
a
v
e
be
n
e
?
t
s
wi
t
h
Pa
i
d
Ti
m
e
Of
f
ho
u
r
s
soas
to re ce
iv eano
r
m
a
l
pa
y
c
h
e
c
k
.
A R TI C L E
14
—IN
J
U
R
Y
ONDTY
A R T I C L
15
—
HO
L
I
AY
S
Page 18 of 356
UN
R
A
E
E
PR
M
\\
16
.
1
16
.
2
16
.
3
16
.
4
Th
e
EM
P
L
O
Y
E
R
wi
l
l
ap
p
r
ov
e
le
a
vewi
t
h
pa
y
inca
s
e
s
ofde
a
t
h
inth
e
im
m
e
d
i
a
t
e
fa
m
i
l
y
.
Fo
r
re
g
u
l
a
r
,
fu
l
l
-
t
i
m
e
em
p
l
o
y
e
e
s
le
a
v
e
sh
a
l
l
be
li
m
i
t
e
d
toama
x
i
m
u
m
of
th
r
e
e
wo
r
k
sh
i
f
t
s
wi
t
h
i
n
a
ca
l
e
n
d
a
r
ye
a
r
.
In
th
e
ev
e
n
t
an ot
h
erde
a
t
h
of
afa
m
i
l
y
me
m
b
e
r
inth
e
sa
m
e
ye
a
r
,
are
q
u
e
s
t
ma
y
be
su
b
m
i
t
t
e
d
to
th
e
Ch
i
e
f
a n d
th eCh
i
e
f
ma
y
ap
p
r
o
v
e
ad
d
i
t
i
o
n
a
l
le
a
v
e
ifde
e
m
e
d
ap
p
r
o
p
r
i
a
t
e
.
Th
e
te
r
m
"i
m
m
e
d
i
a
t
e
fa
m
i
l
y"
as
re
f
e
r
re
d
tointh
i
s
Ar
t
i
c
l
e
sh
a
l
l
in
c
l
u
d
e
th
e
pa
r
e
n
t
s
,
si
b
l
i
n
g
s
,
sp
o
u
s
e
,
ch
i
l
d
r
e
n
,
gr
a
n
d
c
h
i
l
dr
e
n
,
an
d
gr
a
n
d
p
a
r
en
t
s
of
th
e
em
p
l
o
y
e
e
or
th
e
em
p
l
o
y
e
e
'
s
sp
o
u
s
e
.
Th
e
em
p
l
o
y
e
e
is
re
q
u
i
r
e
d
to
no
t
i
c
e
ofFu
n
e
r
a
l
Le
a
v
e
as
so
o
n
aspo
s
s
i
b
l
e
an
d
mu
s
t
ke
e
p
th
e
i
r
su
p
e
r
v
i
s
o
r
in
f
o
r
m
e
d
of
ap
p
ro
x
i
ma
t
eda
t
e
of
th
e
em
p
l
o
y
e
e
'
s
re
t
u
r
n
towo
r
k
.
Fu
n
e
r
a
l
le
a
v
e
be
n
e
f
i
t
s
pr
o
v
i
de
d
inth
i
s
Ar
t
i
c
l
e
ar
e
inad
d
i
t
i
o
n
toan
y
Ea
r
n
e
d
Si
c
k
an
d
Sa
f
e
Ti
m
e
ho
u
r
s
us
e
d
fo
r
be
r
e
a
v
e
m
e
n
t
un
d
e
r
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
18
1
.
9
4
4
5
,
etse
q
.
AR
T
I
C
L
E
17
-
E
SO
N
A
L
TI
E
OF
F
(P
T
O
)
17
.
1
Em
p
l
o
y
e
e
s
wo
u
l
d
be
li
m
i
t
e
d
to
ca
r
r
y
i
n
g
ov
e
r
a
ma
x
i
m
u
m
7 6 0ho
u
r
s
ofPT
O
fr
o
m
ye
a
r
toye
a
r
.
Em
p
l
o
y
e
e
s
ma
y
ac
c
r
u
e
ov
e
r
th
e
ma
x
i
m
u
m
am
o
u
n
t
du
r
i
n
g
ye
a
run
t
i
l
De
c
e
m
b
e
r
1.On
De
c
e
m
b
e
r
1,
an
y
ho
u
r
s
in
ex
c
e
s
s
of
76
0
sh
a
l
l
be
fo
r
f
e
i
t
e
d
.
17
.
2
Em
p
l
o
y
e
e
s
sh
a
l
l
ea
r
n
PT
O
at
th
e
fo
l
l
o
w
i
n
g
ra
t
e
s
ac
c
o
r
d
i
n
g
tth
e
irye
a
r
s
of
se
r
v
i
c
e
:
Em
p
l
o
y
e
e
s
sh
a
l
l
ea
r
n
PT
O
at
th
e
fo
l
l
o
w
i
n
g
ra
t
e
s
ac
c
o
r
d
i
n
g
tth
e
irye
a
r
s
of
se
r
v
i
c
e
:
'
(1
9
2
ho
u
r
s
)
(2
0
0
ho
u
r
s
)
(2
0
8
ho
u
r
s
)
(2
1
6
ho
u
r
s
)
(2
2
4
ho
u
r
s
)
(2
3
2
ho
u
r
s
)
(2
4
0
ho
u
r
s
)
(2
4
8
ho
u
r
s
)
(2
5
6
ho
u
r
s
)
(2
6
4
ho
u
r
s
)
,
sh al
l
bepa
i
d
ou
t
as
fo
l
l
o
w
s
up
o
n
oo d
s t awi
t
h
th
e
Ci
t
y
.
Ye
a
r
1
7.
3
8
5
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
2
7.
6
9
2
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
3
8.
0
0
0
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
4
8.
3
0
8
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
5
8.
6
1
5
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
6
8.
9
2
3
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
7
9.
2
3
1
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
8
9.
5
3
8
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
9
9.
8
4
6
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
Ye
a
r
10
10
.
1
5
4
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
17
.
3
Pa
i
d
Ti
m
e
Of
f
(P
T
O
)
,
up
to
th
e
ma
x
i
m
u
m
of
76
0
ho
u
r
s
re
t
i
r
e
m
e
n
t
or
re
s
i
g
n
a
t
i
o
n
,
pr
o
v
i
d
e
d
th
e
em
p
l
o
y
e
e
is
in
g
Ye
a
r
1
0%
Ye
a
r
2
25
°
0
Ye
a
r
3
50
°
0
Ye
a
r
4
75
°
0
Ye
a
r
5+
10
0
°
0
17
.
4
Pe
r
s
o
n
a
l
le
a
v
e
ti
m
e
(P
T
O
)
,
up
to
th
e
ma
x
i
m
u
m
of
76
0
ho
u
r
s
sbepa
i
d
up
o
n
re
t
i
r
e
m
e
n
t
or
re
s
i
g
n
a
t
i
o
n
pr
o
v
i
d
e
d
th
e
em
p
l
o
y
e
e
is
in
go
o
d
st
a
n
d
i
n
g
wi
t
h
Ci
t
y.
9
A
ELLAV
Page 19 of 356
l0
17
.
5
17
.
6
17
.
7
Th
e
"P
T
O
"
pa
y
ou
t
wi
l
l
be
pu
t
in
t
o
th
e
H ea
lt h
Ca
r
e
Sa
v
i
n
g
s
Ac
c
o
u
n
t
be
l
o
n
g
i
n
g
toea
c
h
em
p
l
o
y
e
e
in
th
i
s
ba
r
g
a
i
n
i
n
g
un
i
t
at
th
e
ti
m
e
of
th
e
i
r
or
re
s
i
g
n
a
t
i
o
n
fr
o
m
th
e
ci
t
y
.
If
th
e
em
p
l
o
y
e
e
di
e
s
,
th
e
se
v
e
r
a
n
c
e
pa
y
b e n e ?t
sh
a
l
l
bepa
i
d
toth
e
em
p
l
o
y
e
e
’
s
sp
o
u
s
e
,
or
la
c
k
i
n
g
th
e
r
e
o
f
,
th
e
em
p
l
o
y
e
e
’
s
es
t
a
t
e
.
Em
p
l
o
y
e
e
s
em
p
l
o
y
e
d
in
Em
p
l
o
y
e
r
po
l
i
c
e
asof
Ja
n
u
a
r
y
1,20
2
6
wh
o
ha
d
ov
e
r
15
ye
a
r
s
of
se
r
v
i
c
e
in
th
e
po
l
i
c
e
de
p
a
r
t
m
e
n
t
o fJa
n
u
ar
y
1,20
2
6
,
wh
o
we
r
e
ac
c
r
u
i
n
g
PT
O
atan
an
n
u
a
l
ra
t
e
of
30
0
ho
u
r
s
as
of
De
c
e
m
b
e
r
20 25
,
sh
a
l
l
ac
c
r
u
e
PT
O
atara
t
e
of11
.
5
4
ho
u
r
s
pe
r
pa
y
pe
r
i
o
d
(3
0
0
ho
u
r
s
pe
r
ye
a
r
)
.
Ef
f
e
c
t
i
v
e
Ja
n
u
a
r
y
20
2
6
,
em
p
l
o
y
e
e
s
wh
o
at
le
a
s
t
10
0
ho
u
r
s
ofPT
O
,
wi
l
l
ha
v
e
th
e
ab
i
l
i
t
y
to
ca
s
h
ou
t
up
to
40
ho
u
r
s
of
th
e
i
r
PT
O
ac
c
r
ua
l
s
pe
r
ye
a
r
.
Ea
c
h
em
p
l
o
y
e
e
mu
s
t
no
t
i
f
y
Hu
m
a
n
Re
s
o
u
r
c
e
s
wi
t
h
a
co
m
p
l
e
t
e
d
fo
r
m
be
f
o
r
e
15
t
h
.Th
e
pa
y
o
u
t
wi
l
l
be
on
th
e
?r
s
t
pa
y
r
o
l
l
inJu
n
e
ea
c
h
ye
a
r
.
Ad
d
i
t
i
o
n
a
l
l
y
,
th
i
s
pa
y
o
u
t
wi
l
l
b e
s u b j e c ttoal
l
ta
x
e
s
.
No
t
w
i
t
h
s
t
a
n
d
i
n
g
po
l
i
c
i
e
s
re
g
a
r
d
i
n
g
us
e
o f
em
p
l
o
ye
e
s
ma
y
us
e
PT
O
asEa
r
n
e
d
Si
c
k
an
d
Sa
f
e
Ti
m
e
le
a
v
e
in
ac
c
o
r
d
a
n
c
e
wi
t
h
Mi
n
n
e
s
o
t
a
18
1
.
9
4
4
5
,etse
q
.
19
.
1
Th
e
EM
PL OY
ER
sh
a
l
l
pr
o
v
i
d
e
fa
l
s
e
ar
r
e
s
t
in
s
u
r
a
n
c
e
fo
r
al
l
em
p
l
o
y
e
e
s
.
19
.
2
Th
e
EM
PL OY
ER
pr
o
v
i
d
e
s
le
g
a
l
re
p
r
e
s
e
n
t
a
t
i
o
n
fo
r
th
e
Ca
p
t
a
i
n
s
pr
o
v
i
d
e
d
th
e
r
e
isno
t
an
y
mi
s
c
o
n
d
uc
t
on
th
e
pa
r
t
of
th
e
Ca
p
t
a
i
n
s
.
Ho
w
e
v
e
r
,
ifth
e
EM
P
L
O
Y
E
R
de
c
i
d
e
d
toma
k
e
a
se
t
t
l
e
m
e
nt
an dth
e
Ca
p
t
a
i
n
s
di
d
no
t
wa
n
t
tose
t
t
l
e
,
th
e
Ca
p
t
a
i
n
s
wo
u
l
d
th
e
n
ha
v
e
tohi
r
e
th
e
i
r
ow
n
re
p
r
e
s
e
n
ta
t
i
o
n
.
Th
e
Em
p
l
o
ye
r
wi
l
lpr
o
v
i
d
e
anan
n
u
a
l
cl
o
t
h
i
n
g
al
l
o
w
a
n
c
e
eq
u
a
l
toth
e
su
m
of
$9
0
0
.
Th
i
s
al
l
o
w
a
n
c
e
bepa
i
d
inase
p
a
r
a
t
e
ch
e
c
k
inFe
b
r
u
a
r
y
op
p
o
s
i
t
e
ofpa
y
r
o
l
l
we
e
k
s
an
d
sh
a
l
l
be
co
n
s
i
d
e
r
e
d
in
c
o
m
e
toth
e
em
p
l
o
y
e
e
asou
t
l
i
n
e
d
inIR
S
Pu
b
l
i
c
a
t
i
o
n
lS
-
B
,
Em
p
l
o
y
e
r
'
s
Ta
x
Gu
i
d
e
to
F ri n g e
Be
n
e?
t
s
.
Em
p
l
oy
e
e
s
ca
l
l
e
d
fo
r
ju
r
y
du
t
y
sh
a
l
l
re
c
e
i
v
e
th
e
i
r
re
g
u
l
a
r
co
m
p
e
n
s
a
t
i
o
n
an
d
fr
i
n
g
e
be
n
e
?
t
s
.
Pa
y
re
c
e
i
v
e
d
fo
r
ju ry
d ut ymu
s
t
begi
v
e
n
toth
e
EM
P
L
O
Y
E
R
.
Pa
y
fo
r
ex
p
e
n
s
e
s
ma
y
beke
p
t
by
th
e
em
p
l
o
y
e
e
.
A
19
-FA
L
S
AR
R
E
S
T
IN
S
U
R
A
N
C
E
A R T I C L
20
-JUYDU
T
Y
A
18
-
U
N
I
OR
M
S
Page 20 of 356
ll
23
.
1
23
.
2
An
y
an
d
al
l
pr
i
o
r
ag
r
e
e
m
e
n
t
s
,
re
s
o
l
ut
i
o
n
s,
pr
a
c
t
i
c
es
,
po
l
i
c
i
e
s
,
ru
l
e
s
,
an
d
re
g
u
l
a
t
i
o
n
s
re
g
a
r
d
i
n
g
te
r
m
s
an
d
co
n
d
i
t
i
o
n
s
of
em
p
l
o
y
m
e
nt
,
toth
e
ex
t
e
n
t
in
c
o
n
s
i
s
t
e
n
t
wi
t
h
th
e
pr
o
v
i
s
i
o
n
s
of
th
i
s
AG
R
E
E
M
E
N
T
,
ar
e
he
r
e
b
y
su
p
e
r
s
e
de
d
.
Th
e
pa
r
t
i
e
s
mu
t
u
a
l
l
y
ac
k
n
o
w
l
e
d
g
e
du
r
i
ng
th
e
ne
g
o
t
i
a
t
i
o
n
s
wh
i
c
h
re
s
u
l
t
e
d
inth
i
s
AG
R
E
E
M
E
N
T
,
ea
c
h
ha
d
th
e
un
l
i
m
it
e
d
ri
g
h
tan
d
op
p
o
r
t
u
n
i
t
y
toma
k
e
de
m
a
n
d
s
an
d
pr
o
p
o
s
a
l
s
wi
t
h
re
s
p
e
c
t
to
an
y
te
r
m
or
co
n
d
i
t
i
o
n
ofem
p
lo
y me
n
tno
t
re
m
o
v
e
d
by
la
w
fr
o
m
ba
r
g
a
i
n
i
n
g
.
Al
l
ag
r
e
e
m
e
n
t
s
an
d
un
d
e
r
s
t
a
n
d
i
n
g
s
ar
r
i
ve
d
atby
th
e
pa
r
t
i
e
s
ar
e
se
t
fo
r
t
h
inwr
i
t
i
n
g
inth
i
s
AG
R
E
E
M
E
N
T
fo
r
th
e
st
i
p
u
l
a
t
e
d
d ur
at
io n
of
th
i
s
AG
R
E
E
M
E
N
T.Th
e
EM
P
L
O
Y
E
R
an
d
th
e
UN
I
O
N
ea
c
h
vo
l
u
n
t
a
r
i
l
y
an
d
un
q
u
al
i
f
i
e
dl
y
wa
i
v
e
s
th
e
ri
g
h
t
tome
e
t
an
d
ne
g
o
t
i
a
t
e
re
g
a
r
d
i
n
g
an
y
an
d
al
l
te
r
m
s
an
d
co
n
d
i
t
i
o
n
s
of
em pl
o
ym
en
t
re
f
e
r
r
e
d
toorco
v
e
r
e
d
inth
i
s
AG
R
E
E
M
E
N
T
orwi
t
h
re
s
p
e
c
t
to
an
y
te
r
m
or
co
n
d
i
t
i
o
n
of
no
t
sp
e
c
i
?
c
a
l
l
y
re
f
e
r
r
e
d
toorco
v
e
r
e
d
by
th
i
s
AG
R
E
E
M
E
N
T
,
ev
e
n
th
o
u
g
h
su
c
h
t e r
orco
n
d
i
t
i
on
s
ma
y
no
t
ha
v
e
be
e
n
wi
t
h
i
n
th
e
kn
o
w
l
e
d
g
e
or
co
n
t
e
m
p
l
a
t
i
o
n
of
ei
t
h
e
r
or
bo
t
h
t h epa
r
t
i
es
at
th
e
ti
m
e
th
i
s
co
n
t
r
a
c
t
wa
s
ne
g
o
t
i
a
t
e
d
or
ex
e
c
u
t
e
d
.
Al
l
em
p
lo
y
e
es
of
th
i
s
ba
r
g
a
i
n
i
n
g
gr
o
u
p
sh
a
l
l
co
n
t
r
i
b
u
t
e
toth
e
Po
s
t
-
R
e
t
i
r
e
m
e
n
t
He
a
l
t
h
Sa
v
i
n
g
s
Pl
a
n
(H
C
S
P
)
th
e
fo
l
l
o
w
i
n
gco
n
t
r
i
b
u
t
i
o
n
:
$2
0
0
.
0
0
pe
r
pa
y
pe
r
i
o
d
.
Th
e
Po
s
t
-
R
e
t
i
r
e
m
e
n
t
He
a
l
t
h
Sa
v
i
n
g
s
Pl
a
n
is
by
th
eMi
n
n
e
s
o
t
a
St
a
t
e
Re
t
i
r
e
m
e
n
t
Sy
s
t
e
m
(M
S
R
S
)
.
AR
T
IC
L
E
22
-OS
T
EM
P
L
O
Y
M
E
N
T
EA
L
T
H
CA
R
E
SA
V
I
N
G
S
PL
A
N
A
21
-SC
H
O
O
L
CO
N
F
E
R
E
N
C
E
ANAC
T
I
V
I
T
I
E
S
LAV
Th
e
sh
a
l
l
gr
a
n
t
un
p
a
i
d
sc
h
o
o
l
co
n
f
e
r
e
n
c
e
an
d
ac
t
i
v
i
t
i
e
s
le
a
v
e
inac
c
o
r
d
a
n
c
e
wi
t
h
ap
p
l
i
c
a
b
l
e
Mi
n
ne
s
o
ta
St
a
t
u
t
esan
d
fe
d
e
r
a
l
la
w
.
Th
i
s
sh
a
l
l
be
ef
f
e
c
t
i
v
e
asof
Ja
n
u
a
r
y
1,20
2
6
,
an
d
sh
a
l
l
re
m
a
i
n
Infu
l
l
fo
r
c
e
an
d
ef
f
e
c
t
un
t
i
l
De
c
e
mb
e
r
31
,
20
2
7
.
A R T I C L E
24
—UR
A
T
I
O
N
A
23
-WA
I
V
E
R
Page 21 of 356
12
Fo
r
th
e
Un
i
o
n
5W
5m
m
mg
41
¢
IN
WI
TN ES
S
WH
E
R
EO
F
th
e
pa
r
t
i
e
s
he
r
e
t
o
ha
v
e
ex
e
c
u
t
e
d
th
i
s
AG
R
E
E
M
E
N
T
on
th
i
s
da
y
of
,20
2
6
F or
t h eEm
p
l
oy
e
r
Page 22 of 356
PP
FR
E
l3
De
f
e
r
r
e
d
Co
m
p
e
n
s
a
t
i
o
n
is
a
vo
l
u
n
t
a
r
y
pr
o
gr
a
m
th
a
t
al
l
o
w
s
em
p
l
o
y
e
e
s
tosa
v
e
an
d
in
v
e
s
t
fo
r
re
t
i
r
e
m
e
n
t
.
Fe
d
e
r
a
l
an
d
St
a
t
e
in
c
o
m
e
s
ta
x
e
s
a r ede
f
e
r
re
d
un
t
i
l
fu
n
d
s
ar
ewi
t
h
d
r
a
w
n
.
Th
e
Ci
t
y
en
c
o
u
r
a
g
e
s
al
l
em
p
l
o
y
e
e
s
to
do
mo
r
e
to
sa ve
fo rth
e
i
r
re
t
i
r
e
m
e
n
t
.
Cu
r
r
e
n
t
l
y
,
th
e
Ci
t
y
of
f
e
r
s
45
7
De
f
e
r
r
e
d
Co
m
p
e
n
s
a
t
i
o
n
ac
c
o
u
n
t
s
th
r
o
u
g
h
Mi
s
s
i
onSq
u
a
r
e
orMi
n
n
e
s
o
t
a
St
a
t
e
Re
t
i
r
e
m
e
n
t
Sy
s
t
e
m
(M
N
Co
m
p
e
n
s
a
t
i
o
n
)
.
Ef
f
e
c
t
i
v
e
Ja
n
u
a
r
y
1,
20
2
6
,
th
e
Ci
t
y
wi
l
l
pr ov
id e
ama
t
c
h
i
ng
co
n
t
r
i
b
u
t
i
o
n
up
toama
x
i
m
u
m
of
$5
0
pe
r
mo
n
t
h
to
Em
p
l
o
y
e
e
s
wh
o
st
a
r
t
an
d
ma
i
n
t
a
in
a45
7
De
f
e
r
r
e
dCo
m
p
e
n
s
a
t
i
o
n
ac
c
o
u
n
t
.
To
be
el
i
g
i
b
l
e
fo
r
th
e
Ci
t
y
ma
t
c
h
,
an
em
p
l
o
y
ee
m us
t
:
0
Ma
i
n
t
a
i
n
a
45
7
De
f
e
r
r
e
d
Co
m
p
e
n
s
a
t
io
n
ac
c
o
un
t
0
Co
n
t
r
i
b
u
t
e
at
le
a
s
t
$5
0
/
m
o
n
t
h
to
th
e
45
7
De
f
e
r
r
e
d
Co
m
p
e
n
s
a
t
i
o
n
ac
c
o
u
n
t
Th
i
s
ar
t
i
c
l
e
do
e
s
no
t
ch
a
n
g
e
th
e
em
p
l
o
y
e
es
’
ri
g
ht
toin
c
r
e
a
s
e
,
de
c
r
e
a
s
e
or
st
o
p
th
e
i
r
co
n
t
r
i
b
u
t
i
o
n
s
at
an
y
ti
m
e
fo
r
an
y
re
a
s
o
n
.
WA
G
S
St
e
p
1
St
ep2St
e
p
3St
e
p
4ISt
e
p
5St
e
p
6St
e
p
7St
e
p
8ISt
e
p
9St
e
p
10
20
2
6
-
5%
$6
0
.
1
1
$62
.
40$64
.
1
2
$65
.
8
4
I$67
.
5
5
$69
.
2
7
$70
.
9
9
$72
.
7
1
I$74
.
4
3
$76
.
2
1
$78
.
0
4
20
2
7
—
3
.
5
°
o
$6
2
.
2
1
$64
.58$6
6
.
3
6
$6
8
.
1
4
I$6
9
.
9
1
$7
1
.
6
9
$7
3
.
4
7
$7
5
.
2
5
I$7
7
.
0
4
$7
8
.
8
8
$8
0
.
7
7
DE
F
E
EN
S
A
T
I
O
20
2
6
Wa
g
e
s
s h al
l
ha ve
anad
j
u
s
t
m
e
n
t
of?v
e
pe
r
c
e
n
t
(5
°
0)ef
f
e
c
t
i
v
e
Ja
n
u
a
r
y
1,20
2
6
.
20
2
7
Wa
g
e
s
s h al
l
ha ve
anad
j
u
s
t
m
e
n
t
of
th
r
e
e
an
d
on
e
-
h
a
l
f
(3
.
5
%
)
ef
f
e
c
t
i
v
e
Ja
n
u
a
r
y
1,20
2
7
.
St
e
p
mo
v
e
m
e
n
t
oc
c
u
r
an
n
u
a
l
l
y
on
th
e
Em
p
l
o
y
e
e
s
’
an
n
i
v
e
r
s
a
r
y
of
th
e
i
r
pr
o
m
o
t
i
o
n
toth
i
s
cl
a
s
s
i
?
c
a
t
i
o
n
.
E NIX
A
Page 23 of 356
ME
M
O
R
A
N
D
U
M
OF
UN
D
E
R
S
T
A
N
D
I
N
G
Th
i
s
Me
m
o
r
a
n
d
u
m
of
Un
d
e
r
s
t
a
n
d
i
n
g
(“
M
O
U
”
)
is
ma
d
e
by
an
d
be
t
w
e
e
n
th
e
Ci
t
y
of
Fa
r
r
n
i
n
g
t
o
n
(“
E
m
p
l
o
y
e
r
”
)
an
d
La
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
In
c
.
(P
o
l
i
c
e
Ca
p
t
a
i
n
s
)
(“
U
n
i
o
n
”
)
.
WH
E
R
E
A
S
,
th
e
Un
i
o
n
is
th
e
ex
c
l
u
s
i
v
e
re
p
r
e
s
e
n
t
a
t
i
v
e
fo
r
ce
r
t
a
i
n
em
p
l
o
y
e
e
s
of
th
e
Em
p
l
o
y
e
r
in
th
e
ap
p
r
o
p
r
i
a
t
e
un
i
t
(“
B
a
r
g
a
i
n
i
n
g
Un
i
t
Em
p
l
o
y
e
e
s
”
)
;
WH
E
R
E
A
S
,
th
e
pa
r
t
i
e
s
ar
e
pa
r
t
i
e
s
to
a
la
b
o
r
ag
r
e
e
m
e
n
t
fo
r
Ja
n
u
a
r
y
1,
20
2
6
th
r
o
u
g
h
De
c
e
m
b
e
r
31
,
20
2
7
(“
L
a
b
o
r
Ag
r
e
e
m
e
n
t
”
)
;
WH
E
R
E
A
S
,
Em
p
l
o
y
e
r
wi
l
l
as
s
i
g
n
wo
r
k
to
Ba
r
g
a
i
n
i
n
g
Un
i
t
Em
p
l
o
y
e
e
Bo
b
Sa
u
t
e
r
in
20
2
6
an
d
20
2
7
th
a
t
wi
l
l
re
s
u
l
t
in
a
ma
t
e
r
i
a
l
in
c
r
e
a
s
e
in
th
e
na
t
u
r
e
,
le
v
e
l
,
fr
e
q
u
e
n
c
y
,
an
d
qu
a
n
t
i
t
y
of
wo
r
k
fo
r
su
c
h
em
p
l
o
y
e
e
;
an
d
WH
E
R
E
A
S
,
th
e
pa
r
t
i
e
s
de
s
i
r
e
to
es
t
a
b
l
i
s
h
sp
e
c
i
a
l
as
s
i
g
n
m
e
n
t
pa
y
fo
r
Bo
b
Sa
u
t
e
r
wh
i
l
e
th
e
y
ar
e
so
as
s
i
g
n
e
d
su
c
h
wo
r
k
.
NO
W
,
TH
E
R
E
F
O
R
E
,
al
l
pa
r
t
i
e
s
he
r
e
t
o
un
d
e
r
s
t
a
n
d
as
fo
l
l
o
w
s
:
Ar
t
i
c
l
e
1.
Sp
e
c
i
a
l
As
s
i
g
n
m
e
n
t
Pa
y
In
ca
l
e
n
d
a
r
ye
a
r
20
2
6
an
d
20
2
7
,
Ba
r
g
a
i
n
i
n
g
Un
i
t
Em
p
l
o
y
e
e
Bo
b
Sa
u
t
e
r
wi
l
l
be
pa
i
d
sp
e
c
i
a
l
as
s
i
g
n
m
e
n
t
pa
y
of
$5
,
0
0
0
an
n
u
a
l
i
z
e
d
ea
c
h
ca
l
e
n
d
a
r
ye
a
r
in
ad
d
i
t
i
o
n
to
an
y
ot
h
e
r
co
m
p
e
n
s
a
t
i
o
n
ot
h
e
r
w
i
s
e
ow
i
n
g
to
th
e
m
.
Th
i
s
pa
y
m
e
n
t
wi
l
l
be
pa
i
d
an
d
pr
o
r
a
t
e
d
ea
c
h
pa
y
r
o
l
l
fo
r
th
e
re
s
p
e
c
t
i
v
e
pa
y
pe
r
i
o
d
.
Th
i
s
sp
e
c
i
a
l
as
s
i
g
n
m
e
n
t
pa
y
m
e
n
t
wi
l
l
no
t
be
in
c
l
u
d
e
d
in
de
t
e
r
m
i
n
i
n
g
ot
h
e
r
pa
y
ow
i
n
g
to
Bo
b
Sa
u
t
e
r
,
un
l
e
s
s
ot
h
e
r
w
i
s
e
re
q
u
i
r
e
d
by
la
w
.
Ar
t
i
c
l
e
2.
En
t
i
r
e
Un
d
e
r
s
t
a
n
d
i
n
g
Th
i
s
MO
U
co
n
s
t
i
t
u
t
e
s
th
e
en
t
i
r
e
un
d
e
r
s
t
a
n
d
i
n
g
am
o
n
g
th
e
pa
r
t
i
e
s
he
r
e
t
o
.
No
re
p
r
e
s
e
n
t
a
t
i
o
n
s
,
wa
r
r
a
n
t
i
e
s
,
co
v
e
n
a
n
t
s
,
or
in
d
u
c
e
m
e
n
t
s
ha
v
e
be
e
n
ma
d
e
to
an
y
pa
r
t
y
co
n
c
e
r
n
i
n
g
th
i
s
MO
U
,
ot
h
e
r
th
a
n
th
e
re
p
r
e
s
e
n
t
a
t
i
o
n
s
,
co
v
e
n
a
n
t
s
,
or
in
d
u
c
e
m
e
n
t
s
co
n
t
a
i
n
e
d
an
d
me
m
o
r
i
a
l
i
z
e
d
in
th
i
s
MO
U
.
Th
i
s
MO
U
su
p
e
r
s
e
d
e
s
al
l
pr
i
o
r
ne
g
o
t
i
a
t
i
o
n
s
,
or
a
l
an
d
wr
i
t
t
e
n
un
d
e
r
s
t
a
n
d
i
n
g
s
,
po
l
i
c
i
e
s
an
d
pr
a
c
t
i
c
e
s
wi
t
h
re
s
p
e
c
t
th
e
r
e
t
o
ad
d
r
e
s
s
i
n
g
th
e
sp
e
c
i
?
c
su
b
j
e
c
t
ma
t
t
e
r
ad
d
r
e
s
s
e
d
in
th
i
s
OU
.
Ar
t
i
c
l
e
3.
Wa
i
v
e
r
of
Ba
r
g
a
i
n
i
n
g
Em
p
l
o
y
e
r
an
d
Un
i
o
n
ea
c
h
vo
l
u
n
t
a
r
i
l
y
an
d
un
q
u
a
l
i
?
e
d
l
y
wa
i
v
e
s
th
e
ri
g
h
t
an
d
ea
c
h
ag
r
e
e
s
th
a
t
wh
i
l
e
th
e
cu
r
r
e
n
t
La
b
o
r
Ag
r
e
e
m
e
n
t
is
in
fu
l
l
fo
r
c
e
an
d
ef
f
e
c
t
th
e
ot
h
e
r
sh
a
l
l
no
t
be
ob
l
i
g
a
t
e
d
to
ba
r
g
a
i
n
co
l
l
e
c
t
i
v
e
l
y
wi
t
h
re
s
p
e
c
t
to
th
e
ex
p
r
e
s
s
su
b
j
e
c
t
s
or
ma
t
t
e
r
s
in
c
l
u
d
e
d
in
th
i
s
MO
U
.
Ar
t
i
c
l
e
4.
Li
m
i
t
a
t
i
o
n
s
Th
i
s
MO
U
is
in
t
e
n
d
e
d
fo
r
th
e
so
l
e
an
d
li
m
i
t
e
d
pu
r
p
o
s
e
sp
e
c
i
f
i
e
d
he
r
e
i
n
.
Th
i
s
MO
U
ca
n
n
o
t
be
co
n
s
t
r
u
e
d
to
be
no
r
do
e
s
it
co
n
s
t
i
t
u
t
e
or
es
t
a
b
l
i
s
h
an
y
ad
m
i
s
s
i
o
n
of
th
e
Em
p
l
o
y
e
r
,
pr
e
c
e
d
e
n
t
,
pa
s
t
pr
a
c
t
i
c
e
,
in
t
e
r
p
r
e
t
a
t
i
o
n
of
th
e
La
b
o
r
Ag
r
e
e
m
e
n
t
,
or
ot
h
e
r
w
i
s
e
pl
a
c
e
an
y
pr
o
h
i
b
i
t
i
o
n
or
li
m
i
t
a
t
i
o
n
on
Me
m
o
r
a
n
d
u
m
of
Un
d
e
r
s
t
a
n
d
i
n
g
be
t
w
e
e
n
Ci
t
y
of
F
ar
m
i
n
g
t
o
n
an
d
La
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
Lo
c
a
l
No
.
61
2
Pa
g
e
1
of
2
Page 24 of 356
an
y
ma
n
a
g
e
m
e
n
t
ri
g
h
t
of
th
e
Em
p
l
o
y
e
r
.
Th
e
Em
p
l
o
y
e
r
do
e
s
no
t
wa
i
v
e
an
d
ex
p
r
e
s
s
ly
re se
rv es
th
e
ri
g
h
t
to
ex
e
r
c
i
s
e
al
l
of
it
s
ma
n
a
g
e
m
e
n
t
ri
g
h
t
s
wi
t
h
o
u
t
li
m
i
t
a
t
i
o
n
.
Th
i
s
MO
U
ca
n
n
o
t
us
ed
inan
y
co
n
t
e
s
t
e
d
pr
o
c
e
e
d
i
n
g
,
ex
c
e
p
t
in
a
pr
o
c
e
e
d
i
n
g
re
l
a
t
e
d
to
en
f
o
r
c
i
n
g
th
e
sp
e
c
i
?
c
te
r
m
s
o fth
i
s
MO
U
,
as
ev
i
d
e
n
c
e
of
th
e
pa
r
t
i
e
s
’
in
t
e
r
p
r
e
t
a
t
i
o
n
of
th
e
La
b
o
r
Ag
r
e
e
m
e
n
t
or
as
ju
s
t
i
?
c
a
t
i
o
n
th
e
te
r
m
s
of
an
y
su
b
s
e
q
u
e
n
t
la
b
o
r
ag
r
e
e
m
e
n
t
.
Ar
t
i
c
l
e
5.
Am
e
n
d
m
e
n
t
or
Mo
d
i
?
c
a
t
i
o
n
Th
i
s
MO
U
or
an
y
of
it
s
te
r
m
s
ma
y
on
l
y
be
am
e
n
d
e
d
or
mo
d
i
?
e
d
by
a
wr
i
t
t
e
n
in
s
t
ru me
nt
th
a
t
:
(l
)
ex
p
r
e
s
s
l
y
st
a
t
e
s
it
is
am
e
n
d
i
n
g
or
mo
d
i
f
y
i
n
g
th
e
MO
U
;
an
d
(2
)
is
si
g
n
e
d
by
or
on
of
al
l
of
th
e
pa
r
t
i
e
s
he
r
e
t
o
or
th
e
i
r
su
c
c
e
s
s
o
r
s
in
in
t
e
r
e
s
t
.
Ar
t
i
c
l
e
6.
Vo
l
u
n
t
a
r
y
Un
d
e
r
s
t
a
n
d
i
n
g
of
th
e
Pa
r
t
i
e
s
Th
e
pa
r
t
i
e
s
he
r
e
t
o
ac
k
n
o
w
l
e
d
g
e
an
d
ag
r
e
e
th
a
t
th
i
s
MO
U
is
vo
l
u
n
t
a
r
i
l
y
en
t
e
r
e
d
in to
by
al
l
pa
r
t
i
e
s
he
r
e
t
o
as
th
e
re
s
u
l
t
of
ar
m
’
s
-
l
e
n
g
t
h
ne
g
o
t
i
a
t
i
o
n
s
du
r
i
n
g
wh
i
c
h
al
l
su
c
h
pa
r
t
i
e
s
we
r
e
Ar
t
i
c
l
e
7.
ff
e
c
t
i
v
e
an
d
Ex
p
i
r
a
t
i
o
n
Da
t
e
Th
i
s
MO
U
is
ef
f
e
c
t
i
v
e
on
th
e
la
t
e
s
t
da
t
e
af
?
x
e
d
to
th
e
si
g
n
a
t
u
r
e
s
be
l
o
w
.
Th
i
s
MO
U
e x p ir e son
De
c
e
m
b
e
r
31
,
20
2
7
an
d
wi
l
l
no
lo
n
g
e
r
be
in
fo
r
c
e
or
ef
f
e
c
t
,
ef
f
e
c
t
i
v
e
Ja
n
u
a
r
y
1,
2 0 2 8.
IN
WI
T
N
E
S
S
HE
R
E
O
F
,
th
e
pa
r
t
i
e
s
he
r
e
t
o
ha
v
e
ma
d
e
th
i
s
MO
U
on
th
e
la
t
e
s
t
da
t
e
a f ?x e dtoth
e
si
g
n
a
t
u
r
e
s
be
l
o
w
.
FO
R
TH
E
CI
T
Y
OF
FA
R
M
I
N
G
T
O
N
:
FO
R
LA
W
EN
F
O
R
C
E
M
E
N
T
L
SE
R
V
I
C
E
S
,
IN
C
.
54
.
2
4
.
»
51
9
m
Da
t
e
:
06
/
1
7 /2 0 2 6
Me
mo
r
a
nd
u
m
ofUn
d
e
r
s
t
a
n
d
i
ngbe
t
w
e
e
n
Ci
t
y
ofFar
m
i
n
g
t
o
n
an
d
La
w
En
f
o
r
c
e
m
e
n
t
La
b
o
r
Se
r
v
i
c
e
s
,
Lo
c
a
l
No
.
61
2
Pa
g
e
2of2
D at e:
D at e:D at
Page 25 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Lynn Gorski, City Administrator
Department: Administration
Subject: 2027 Apple Valley/Lakeville/Farmington (ALF) Ambulance Budget
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
Attached for your review and consideration is the 2027 Apple Valley/Lakeville/Farmington
(ALF) Budget.
DISCUSSION:
The Joint Powers Agreement governing the Apple Valley/Lakeville/Farmington (ALF)
Ambulance service requires that, by July of each year, the annual operating budget for
the upcoming calendar year as recommended by the ALF Board be submitted to each
member City Council for approval.
ALF has contracted Allina to handle the day-to-day operations of the ambulance service,
resulting in a relatively simple budget.
The ALF Board approved the proposed budget at its May 21, 2026, meeting, contingent
upon approval by the member City Councils.
Councilmember Wilson, who serves as the City Council’s representative on the ALF Board,
has recommended approval of the budget.
BUDGET IMPACT:
There is no budget impact.
ACTION REQUESTED:
Motion to approve the 2027 ALF Ambulance budget, as presented.
ATTACHMENTS:
2027 ALF Budget
Page 26 of 356
ALF AMBULANCE 2027 BUDGET
Additions
Townships /City
Interest on investments
Total additions
Deductions
Expenses
Other
Total deductions
Net changes in cash be?ire
distributions
Net changes in cash position
Cash balance,January 1
Cash balance,December 31
Statement of Cash Flows
2025 2026 2026 2027
Actual Adopted Estimate Proposed
5 1,500 $1,500 $1,500 S 1,500
8,886 5,000 5,000 7,000
10,386 6,500 6,500 8,500
33 500 500 200
33 500 500 200
10,353 6,000 6,000 8,300
10.353 6.000 6,000 8,300
222,091 216,531 232,444 238,444
S 232,444 $222.531 $238,444 $246,744
Page 27 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Melissa Geis, City Clerk
Department: Administration
Subject: Application for Gambling Event Permit for the Church of St. Michael - Bingo
and Raffle
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
For Council approval is a Gambling Event Permit application from the Church of St.
Michael for a bingo and raffle on September 27, 2026.
DISCUSSION:
The City has received an application from the Church of St. Michael for approval of an
application to conduct a bingo and raffle on September 27, 2026.
Per Minnesota Statute, City approval is required prior to the Applicant submitting their
application to the Gambling Control Board. A background investigation is not required for
a Gambling Event Permit.
Staff recommends approval of this application and adoption of Resolution 2026-059
ACTION REQUESTED:
Adopt Resolution 2025-059 Concurring with the Issuance of a Minnesota Lawful Gambling
Exempt Permit for to Conduct Off-Site Gambling, Bingo and Raffle September 27, 2026 at
the Church of St. Michael, 22120 Denmark Avenue Farmington.
ATTACHMENTS:
2026-059 Gambling Event Permit, Church of St. Michael docs
2026-059 Gambling Event Permit, Church of St. Michael
Page 28 of 356
MINNESOTA LAWFUL GAMBLING
LG220 Application for Exempt Permit An exempt permit may be issued to a nonprofit Application Fee (non-refundable)
4/23 Page 1 of 3
organization that: Applications are processed in the order received. If the application •conducts lawful gambling on five or fewer days, and•awards less than $50,000 in prizes during a calendaryear.If total raffle prize value for the calen dar year will be $1,500 or less, contact the Licensing Specialist assigned to your county by calling 651-539-1900.
ORGANIZATION INFORMATION
����;zation(:l)u re1 D� .St_ YY\iltae-) Minnesota Tax ID Number, if any:
Mailing Address: ¢11) lJi Q tm YYVL( is h ve,,
is postmarked or received 30 days or more before the event, the application fee is $100; otherwise the fee is $150.Due to the high volume of exempt applications, payment of additional fees prior to 30 days before your event will not expedite service, nor are telephone requests for exped ited service accepted.
Previ�us Gambling Jtfir(),JD �& O 11 Permit Number: X--Federal Employer ID 4I-D'7tJQ�D1 Number (FEIN), if any:
City:fa"'(W\ irg±on State: mn Zip: !:JSQd.J-/ County: lribotcv
Name of Chief Executive Officer (CEO):
CEO Daytime Phone:�f3 l -4 k3...,. 33{d) CEO Email ·f-ra,�-j]J('@,/2-};n L ehi.ei-P Mm (�fDf>,O � (permit will be emailed to this email address unssotherwis �dicated below) Email permit to (if other than the CEO):
NONPROFIT STATUS
Type of Nonpr ofit Organization (check one): D Fraternal �Religious D Veterans D Other Nonprofit Organization
Attach a copy of one of the following showing proof of nonprofit status: (DO NOT attach a sales tax exempt statu s or federal employer ID number, as they are not proof of nonprofit status .) □A current calendar year Certificate of Good Standing Don 't have a copy? Obtain this certificate from: MN Secretary of State, Business Services Division Secretary of State website, phone numbers: 60 Empire Drive, Suite 100 www.sos.state.mn.us St. Paul, MN 55103 651-296-2803, or toll free 1-877-551-6767□IRS income tax exemption (501(c)) letter in your organization's name Don't have a copy? To obtain a copy of your federal income tax exempt letter, have an organization officer contact the IRS toll free at 1-877-829-5500. □IRS -Affiliate of national, statewide, or international parent nonprofit organization (charter}If your organization falls under a parent organization, attach copies of both of the following: 1.IRS letter showing your parent organization is a nonprofit 501(c) organization with a group ruling; and2.the charter or letter from your parent organization recognizing your organization as a subordinate.
GAMBLING PREMISES INFORMATION Name of premises where the gambling event will be conducted (!�r�' v+ Sf tv1 lci.t u L(for raffles, list the site where the drawing will take place):
Physical Address (do not use P.O. box): Ul�Q k,v'V'v1£K �
Check one:fu tlJ-City :/'m /JJjfoY\
0Township:
Date(s) of activity (for raffles, indicate the date of the drawing):
Zip: :5ooad Zip:
qLJ,1/J.ro . .
Check each type of gambling activity that your organization will conduct: �Bingo D Paddlewheels □Pull-Tabs OTipboards
County: jJtJ.,.f6fliP.-/ County:
�ffle
Gambling equipment for bingo paper, bin go boards, raffle boards, paddlewheels, pull-tabs, and tipboards must be obtained from a distributor licen sed by the Minnesota Gambling Control Board. EXCEPTION: Bingo hard cards and bingo ball selection devices may be borrowed from another organization authorized t o conduct bingo. To find a licensed distributor, go to
www.mn.gov/gcb and click on Distributors under the List of Licensees tab, or call 651-539-1900.
x
Page 29 of 356
City of Farmington
Page 30 of 356
Page 31 of 356
Page 32 of 356
Page 33 of 356
Page 34 of 356
Page 35 of 356
Page 36 of 356
CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2026-059
A RESOLUTION CONCURRING WITH THE ISSUANCE
OF A MINNESOTA LAWFUL GAMBLING EXEMPT PERMIT
FOR THE CHURCH OF ST. MICHAEL
TO CONDUCT OFF-SITE GAMBLING, BINGO AND RAFFLE, SEPTEMBER 27, 2026
AT CHURCH OF ST. MICHAEL 22120 DENMARK AVENUE, FARMINGTON
WHEREAS, the Church of St. Michael has made application for a Lawful Gambling
Exempt Permit to the Gambling Control Board to conduct off-site gambling in the form of bingo
and raffle on September 27, 2026 at the Church of St. Michael, 22120 Denmark Avenue
Farmington; and
WHEREAS, the City of Farmington has no objections to the said activity.
NOW, THEREFORE, BE IT RESOLVED that the Farmington Mayor and City Council
hereby concur with the issuance of a Lawful Gambling Exempt Permit by the Gambling Control
Board to the Church of St. Michael, September 27, 2026 at the Church of St. Michael, 22120
Denmark Avenue Farmington.
Adopted by the City Council of the City of Farmington, Minnesota, this 6 th day of July 2026.
ATTEST:
_____________________________ ____________________________
Nicholas Lien, Mayor Melissa Geis, City Clerk
Page 37 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Melissa Geis, City Clerk
Department: Administration
Subject: Minutes of the June 15, 2026 Regular City Council Meeting
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
For approval are the minutes of the June 15, 2026 Regular City Council Meeting.
ACTION REQUESTED:
Approve the minutes of the June 15, 2026 Regular City Council Meeting.
ATTACHMENTS:
06.15.26 Council Minutes
Page 38 of 356
Regular City Council Meeting Minutes of June15, 2026 Page 1 of 5
City of Farmington
Regular Council Meeting Minutes
Monday, June 15, 2026
The City Council met in regular session on Monday, June 15, 2026, at Farmington
City Hall, 430 Third Street, Farmington, Minnesota.
1. CALL TO ORDER
Mayor Lien called the meeting to order at 7 pm.
2. PLEDGE OF ALLEGIANCE
Mayor Lien led everyone in the Pledge of Allegiance.
3. ROLL CALL
Members Present: Mayor Lien
Councilmembers Holly Bernatz, Jake Cordes,
and Phil Windschitl
Members Absent: Councilmember Steve Wilson
Staff Present: Lynn Gorski, City Administrator
David Chanski, Assistant City Administrator
Amy Schmidt, City Attorney
Deanna Kuennen, Economic & Community Development
Director
Stephanie Aman, Economic Development Coordinator
Matt Price, Fire Chief
Kellee Omlid, Parks & Recreation Director
Nate Siem, Police Chief
John Powell, Public Works Director
Melissa Geis, City Clerk
Others Present: Joya Stetson, Community & Economic Development
Director, Minnesota Valley Transit Authority
Luther Wynder, CEO, Minnesota Valley Transit Authority
4. APPROVE AGENDA
Motion was made by Councilmember Cordes and seconded by
Councilmember Bernatz to approve the agenda as presented.
Motion carried: 4 ayes / 0 nays
Page 39 of 356
Regular City Council Meeting Minutes of June15, 2026 Page 2 of 5
5. ANNOUNCEMENTS / COMMENDATIONS
5.1 Minnesota RE Journal 2026 City of the Year
City Council recognized City Staff, Commissions and Boards on their efforts
and their Minnesota RE Journal 2026 City of the Year Award.
6. CONSENT AGENDA
6.1 Application for Gambling Event Permit for Farmington Youth Football
Association -Raffle
6.2 Election Judge Appointments for the 2026 Election Cycle
6.3 Minutes of the June 15, 2026 City Council Work Session
6.4 Minutes of the June 15, 2026 Regular City Council Meeting
6.5 Payment of Claims
6.6 Approve the Shared Fit Test Machine Joint Powers Agreement
6.7 Staff Approvals and Recommendations
6.8 Agreement with DSM Excavation for Soil Correction for Skatepark
6.9 Active Transportation Grant Applications for Trail Projects
6.10 Donation from Farmington Greenhouse to the Rambling River Center
6.11 Donation of Flowers for Downtown from the Farmington Rotary
6.12 Donation from Happy Harry’s Furniture to the Rambling River Center
6.13 Professional Services Agreement with WSB for Construction Materials
Testing and Special Inspections
6.14 State of Minnesota Grant Agreement for Skatepark
6.15 RFQ for Police Department Expansion and Remodel Project
6.16 Joint County Traffic Signal for with Dakota Powers Agreement
Replacement at the CSAH 31 and CSAH 50 Intersection
6.17 Metropolitan Council Clean Water Grant Agreement for 2026-2028
6.18 Purchase of a 2021 John Deere 324L Compact Wheel Loader, Bucket
Attachment, and Tires
6.19 Real Estate Sale Contract for Real Property in the City of Farmington,
Dakota County, Minnesota PID:14-77000-31-023 and PID 14-77000-31-010
6.20 Receive Quotes and Award a Contract for the 2026 Summer Ash Tree &
Stump Removal
6.21 Vermillion River Watershed Joint Powers Organization Stewardship Grant
Agreement
Motion was by Councilmember Cordes and seconded by made
Councilmember Bernatz s to approve the Consent Agenda, as presented.
Motion carried: 4 ayes / 0 nays
7. PUBLIC HEARINGS
8. AWARD OF CONTRACT
Page 40 of 356
Regular City Council Meeting Minutes of June15, 2026 Page 3 of 5
9. PETITIONS, REQUESTS AND COMMUNICATIONS
10. UNFINISHED BUSINESS
11. NEW BUSINESS
11.1 Letter of Support – Minnesota Valley Transit Authority’s Regional Solicitation
Application
Motion Windschitl was made by Councilmember and seconded by
Councilmember Bernatz to authorize the Mayor sending a letting of
support Transit Valley Solicitation for Authority’s Minnesota Regional
Application to expand their Connect microtransit services to the south
metro, serving Farmington.
Motion carried: 4 ayes / 0 nays
12. CITIZENS COMMENTS / RESPONSES TO COMMENTS
The following citizen(s) addressed the Council:
David Pritzlaff, Farmington
Nancy Aarestad, Castle Rock Township
Nate Ryan, Farmington
13. CITY COUNCIL ROUNDTABLE
Councilmember Bernatz acknowledged the difficulty of the transition from
Citizen Comments to Roundtable, she said the purpose of the Roundtable is to
let people know about other things happening in community. Top the Tater
Days is coming up on the 4th weekend in June. She thanked all the people who
put the event on and encouraged everyone that is able to come out and enjoy
the festival, there is something for everyone. She encouraged everyone to look
for the volunteers and thank them for all of their efforts.
Councilmember Cordes recommended everyone attend whatever events you
can at Top the Tater Days and thanked everyone in the organization for putting
the on. of Class Graduating the of then He 2026 event congratulated
Farmington High School. He thanked everyone for their well wishes on the birth
of his daughter.
City Administrator Gorski shared the finance department is currently short
staffed so there may be a delay in customer service, particularly in Utility Billing.
She shared that on July 6th there will be a work session regarding E-Bikes, E-
Motos, E-Scooters, and side by sides.
Page 41 of 356
Regular City Council Meeting Minutes of June15, 2026 Page 4 of 5
City Administrator Gorski thanked all of the City Staff, Commissions, Council,
Attorney, and all of the champions of the City that support us.
City Clerk Geis shared the City is looking for additional Election Judges for the
upcoming Election.
Assistant City Administrator Chanski spoke about the approval of the new
staffing appointments, Torey Christensen, Full-Time Liquor Store Clerk and
Jeremiah Baumann, Communications & Public Affairs Manager.
Director Kuennen shared that at EDA meeting tonight they awarded four
MicorGrants to: Chill Studios, Farmington Greenhouse, Farmington Gymnastics
and Cheer and Salaam Global Flavors. She thanked the EDA for supporting
local businesses.
Director Powell spoke about the Metropolitan Council Clean Water Grant
Agreement approved in the Consent Agenda and thanked Torri Wolf for her
efforts with this grant. He then spoke about the Vermillion Watershed Joint
Powers Organization Stewardship Grant Agreement and thanked Ben Humlie
and Kari Kubicek for the work on that grant.
Director Omlid shared that to kick off Top the Tater Days next week there will be
Music in the Park on Wednesday June 24th, with Dang Ol’ Tri’ole performing. She
thanked the sponsors, Castle Rock Bank, Dakota Electric Association,
Farmington Youth Hockey Association, Hobo, Sierra Juhl State Farm Insurance
and VFW Post 7662. She then shared the Tater Trot is on Saturday morning, June
27th. The Kiss the Pig contest has Briana Anderson, Dr. Mel Blanchard, Spencer
Elvebak, Ryan LaBrash, and Councilmember Steve Wilson as the “kissers”, event
will be Saturday, 4:00 pm.
Chief Siem said they are getting ready for Top the Tater Days and asked
everyone to come down, have fun and drink responsibly. He then said e-
transportation is welcome but please secure outside of downtown area.
Mayor Lien acknowledged in a couple of previous meetings that there were
some breaks in process and accepts ownership as presider of meeting and will
work to avoid in the future.
Mayor Lien then spoke about the E-Bikes and said there will be a lot of
conversations regarding them, how do we enforce and manage while staying
safe and reasonable as we move forward. It isn’t as simple as telling the Police
to go stop it as some of it does go back to parenting.
Page 42 of 356
Regular City Council Meeting Minutes of June15, 2026 Page 5 of 5
Mayor Lien hopes to see everyone out at Top the Tater Days. He then
congratulated the Baseball and Softball teams on their 3 rd place finish and Boys
Lacrosse on winning the State Championship.
14. ADJOURNMENT
Motion was made by Councilmember Bernatz and seconded by
Councilmember Cordes to adjourn the meeting at 7:52 pm.
Motion carried: 4 ayes / 0 nays
Respectfully submitted,
Melissa Geis
City Clerk
Page 43 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Melissa Geis, City Clerk
Department: Administration
Subject: Temporary On-Sale Liquor License for The Church of St. Michael September
26-27, 2026
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
For approval is a Temporary On-Sale Liquor License for The Church of St. Michael for an
event to be held September 26-27, 2026
DISCUSSION:
The Church of St. Michael will be hosting an event September 26-27, 2026 and are
requesting approval of a Temporary On-Sale Liquor License. This event will be held at the
Church of St. Michael, 22120 Denmark Avenue, Farmington.
ACTION REQUESTED:
Approve the Temporary On-Sale Liquor License for the Church of St. Michael for an event
to be held September 26-27, 2026 at the Church of St. Michael, 22120 Denmark Avenue,
Farmington.
ATTACHMENTS:
09-26 to 09-27 Church of St. Michael Temp On Sale App
Page 44 of 356
Alcohol & Gambling Enforcement
Minnesota Department of Public Safety
Alcohol and Gambling Enforcement Division
445 Minnesota Street, Suite 1600, St. Paul, MN 55101
651-201-7507 TTY 651-282-6555
APPLICATION AND PERMIT FOR A 1 DAY
TO 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE
Name of organization Date of organization
'--I -------""'-t..:...:....:ru1..,-=-----r_ch_;__oJ_;__-=-$t_M:----=-----=i 6h-'--'-ae____,L=-----____ __,I I IO -I 81 rs--Tax exempt number
II OC/12organization Address (No PO Boxes) City State Zip Code '--I _;,;__c:1_,_d._a __ Deft __ m_a..,_r_k_____c_J4w.. _____ __,I I ra.r M/()�lvn I !Minneso ta II '5!i0d-l/ Name of person making application �usiness phone Home phone �I -&---'-tYl-S�,e-v e.,---=rc.......:.-sorv-'-------------11 la51 ,q &3 -33&0 I .--I &-51----'----3-�--o-1p-o 1---,I
Date(s) of event Type of organization D Microdistillery D Small Brewer �, -SgJ
-'-'
t-,;>.-�---.Q.pt--,2-7-,-;l.-D-�---------., D Club D Charitable 0-Religious D Other non-profit Organization officer's name City State Zip Code
�' �tV�t W�f;-�[ig�----'--tr�o�e/ri�le-____ �11 E{l/m1rg,f(f)L 1 '----IMi_nn e _sot
_
a -�' I 550:2'-I
Organization officer's name City State Zip Code
�------------------�-----�' �M-in-n-es-ot_a __ ____,I �' ----�' Organization officer's name City State Zip Code
'---------------------�-----��IM _in_n _es_o _ta ___ l�l ____ �ILocation where permit will be used. If an outdoor area, describe.
fu1siv Soud-Ht.uU , y I 'I .., Jt ii✓
If th/ill contract for intoxicating liquor service give the name and address of the liquor license providing the service.
If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage.
APPROVAL
APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT
City or County approving the license Date Approved
Fee Amount Permit Date Event in conjunction with a community festival D Yes D No City or County E-mail Address Current population of city
Please Print Name of City Clerk or County Official Signature City Clerk or County Official
CLERKS NOT ICE: Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event
No Temp Applications faxed or mailed. Only emailed.
ONE SUBMISSION PER EMAIL, APPLICATION ONLY.
PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY /COUNTY AS ALL TEMPORARY
PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY
CITY/COUNTY TO AGE. TEMPORARYAPPLICATION@STATE.MN.US
City of Farmington
N/A
x
23,632
Melissa Geis, City Clerk
09/26/2026 -09/27/2026
MGeis@FarmingtonMN.gov
Page 45 of 356
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 06 2026
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 06/10/2026 to 06/30/2026 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:
070626 COUNCIL SUMMARY
Page 46 of 356
CLAIMS FOR APPROVAL 06/10/2026-06/30/2026
CHECK PAYMENTS 1,048,585.62$
ELECTRONIC PAYMENTS 1,424,960.29$
TOTAL 2,473,545.91$
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 6, 2026
Page 47 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Samantha Hazelrigg, Human Resources Manager
Department: HR
Subject: Staff Approvals and Recommendations
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
Staff recommends the following appointments:
Jacob Seppelt - Assistant Finance Director
Ruiz Acosta - Accounting Specialist
Robert Chapman - Full-time Liquor Store Clerk
Ryder Anderson - Paid-On-Call Firefighter
Rebecca Leubner - Paid-On-Call Firefighter
Bryan Monahan - Paid-On-Call Firefighter
Logan Smith - Paid-On-Call Firefighter
DISCUSSION:
Council for appointments employee following pleased recommend to is Staff the
approval. We are welcoming: Jacob Seppelt as Assistant Finance Director; Ruiz Acosta as
Accounting Specialist; Robert Chapman as Full-time Liquor Store Clerk; Ryder Anderson,
Bryan Monahan, and Logan Smith as Paid-On-Call Firefighters.
BUDGET IMPACT:
Included in 2026 budget.
ACTION REQUESTED:
Approve the appointments of Jacob Seppelt, Ruiz Acosta, Robert Chapman, Ryder
Anderson, Rebecca Leubner, Bryan Monahan, and Logan Smith.
Page 48 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kellee Omlid, Parks & Recreation Director
Department: Parks & Recreation
Subject: Agreement for Construction Services for City Hall Second Floor Project
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
At the December 1, 2025 City Council meeting, the Council approved an AIA Owner /
Architect Agreement with JLG Architects for the City Hall Project. The original scope
included preparation of construction drawings to address exiting and work area security
improvements, as well as schematic design to improve the efficiency of the second-floor
office layout.
During the design process, City staff and JLG Architects identified an opportunity to
convert an existing storage room into two offices. Because evaluating this option and
preparing the associated construction documents were outside the original project scope,
the City Council approved an Amendment to the AIA Owner/Architect Agreement at its
March 16, 2026, meeting.
The Amendment expanded the project scope to include the design of two new offices
within the existing storage room. It also included an alternate option to separate the
thermal control of the new offices from the surrounding open office area, along with
updated construction cost estimates.
JLG Architects prepared construction drawings that included, but were not limited to, an
updated life safety plan, updated floor plan showing the work area, enlarged floor plan
and reflected ceiling plan of the scope area, updated wall sections, as required for code
compliance and to indicate design intent, and any updated outline specifications and
door schedule.
DISCUSSION:
Staff solicited bids from three (3) construction companies for the project. Two (2) bids were
received by the June 22, 2026 at 3 pm deadline. CM Construction Company, Inc., of
Burnsville, which $121,080, of amount the bid includes lowest the submitted in Add
Alternate No. 1 for separate thermal control of the two new offices. JLG Architects'
construction cost estimate for the project, including the Add Alternate, was $120,116.10.
Page 49 of 356
The bid summary is as follows:
Center River the completed Rambling Inc. Company, Construction CM successfully
Renovation Project in 2025 and has demonstrated the ability to perform work of this nature.
Staff’s recommendation is to accept Add Alternate No. 1, which provides separate
thermal control for the two new offices. Thus, the total contract amount would be
$121,080.
BUDGET IMPACT:
Funding for the project will be from the Building Maintenance Fund. The 2026 adopted
budget amount for this project was $175,000.
With construction projects there might be surprises or issues requiring a change that can’t
wait for the next City Council meeting for approval. Thus, Staff is requesting approval of
change orders for a total amount of $30,270 with this also being the maximum amount
allowed for any single change order increase without prior City Council approval.
ACTION REQUESTED:
Services Construction CM with Construction Approve Agreement attached the for
Company, Inc. for the City Hall Second Floor Project in the amount of $121,080. Also
approve change orders for a total of $30,270 with this also being the maximum amount
allowed for any single change order increase without prior City Council approval.
ATTACHMENTS:
Agreement for Construction Services with CM Construction Company, Inc.
CM Construction Company Bid
Page 50 of 356
AG
R
E
E
M
E
N
T
FO
R
CO
N
S
T
R
U
C
T
I
O
N
SE
R
V
I
C
E
S
CI
T
Y
OF
F
AR
M
I
N
G
T
O
N
FA
R
M
I
N
G
T
O
N
CI
T
Y
HA
L
L
SE
C
O
N
D
FL
O
O
R
PR
O
J
E
C
T
Th
i
s
AG
R
E
E
M
E
N
T
FO
R
CO
N
S
T
R
U
C
T
I
O
N
SE
R
V
I
C
E
S
(“
A
g
r
e
e
m
e
n
t
”
)
is
ma
d
e
th
i
s
6t
h
da
y
of
Ju
l
y
,
20
2
6
(t
h
e
“E
f
f
e
c
t
i
v
e
Da
t
e
”
)
,
an
d
is
by
an
d
be
t
w
e
e
n
th
e
CI
T
Y
OF
FA
R
M
I
N
G
T
O
N
,
a
Mi
n
n
e
s
o
t
a
mu
n
i
c
i
p
a
l
co
r
p
o
r
a
t
i
o
n
,
43
0
Th
i
r
d
St
r
e
e
t
,
Fa
r
m
i
n
g
t
o
n
,
Mi
n
n
e
s
o
t
a
55
0
2
4
(“
C
i
t
y
”
)
,
an
d
,
CM
CO
N
S
T
R
U
C
T
I
O
N
CO
M
P
A
N
Y
,
IN
C
.
a
Mi
n
n
e
s
o
t
a
li
m
i
t
e
d
li
a
b
i
l
i
t
y
co
r
p
o
r
a
t
i
o
n
,
wh
o
s
e
pr
i
n
c
i
p
a
l
pl
a
c
e
of
bu
s
i
n
e
s
s
is
at
12
2
1
5
Ni
c
o
l
l
e
t
Av
e
n
u
e
So
u
t
h
,
Bu
r
n
s
v
i
l
l
e
,
Mi
n
n
e
s
o
t
a
,
55
3
3
7
(“
C
o
n
t
r
a
c
t
o
r
”
)
.
RE
C
I
T
A
L
S
Th
e
Ci
t
y
is
th
e
fe
e
ow
n
e
r
of
ce
r
t
a
i
n
re
a
l
pr
o
p
e
r
t
y
lo
c
a
t
e
d
at
43
0
Th
i
r
d
St
r
e
e
t
in
th
e
Ci
t
y
of
Fa
r
m
i
n
g
t
o
n
,
Co
u
n
t
y
of
Da
k
o
t
a
,
St
a
t
e
of
Mi
n
n
e
s
o
t
a
,
wh
i
c
h
is
co
m
m
o
n
l
y
kn
o
w
n
as
Fa
r
m
i
n
g
t
o
n
Ci
t
y
Ha
l
l
(P
I
D
:
14
7
7
0
0
0
1
9
0
9
5
)
(t
h
e
“B
u
i
l
d
i
n
g
”
)
.
Th
e
Ci
t
y
ha
s
ap
p
r
o
v
e
d
a
pr
o
j
e
c
t
fo
r
th
e
co
n
s
t
r
u
c
t
i
o
n
of
ce
r
t
a
i
n
im
p
r
o
v
e
m
e
n
t
s
to
th
e
Bu
i
l
d
i
n
g
,
wh
i
c
h
im
p
r
o
v
e
m
e
n
t
s
ar
e
de
s
c
r
i
b
e
d
mo
r
e
fu
l
l
y
in
Se
c
t
i
o
n
3
of
th
i
s
Ag
r
e
e
m
e
n
t
(t
h
e
“P
r
o
j
e
c
t
”
)
.
Th
e
Ci
t
y
an
d
th
e
Co
n
t
r
a
c
t
o
r
wi
s
h
to
en
t
e
r
in
t
o
th
i
s
Ag
r
e
e
m
e
n
t
se
t
t
i
n
g
fo
r
t
h
th
e
te
r
m
s
an
d
co
n
d
i
t
i
o
n
s
fo
r
th
e
co
n
s
t
r
u
c
t
i
o
n
of
th
e
Pr
o
j
e
c
t
.
NO
W
,
TH
E
R
E
F
O
R
E
,
in
co
n
s
i
d
e
r
a
t
i
o
n
of
th
e
mu
t
u
a
l
pr
o
m
i
s
e
s
se
t
fo
r
t
h
in
th
i
s
Ag
r
e
e
m
e
n
t
,
th
e
Ci
t
y
an
d
th
e
Co
n
t
r
a
c
t
o
r
ha
v
e
ag
r
e
e
d
as
fo
l
l
o
w
s
:
1.
Te
r
m
an
d
Te
r
m
i
n
a
t
i
o
n
.
Th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
co
m
m
e
n
c
e
as
of
th
e
Ef
f
e
c
t
i
v
e
Da
t
e
?r
s
t
wr
i
t
t
e
n
ab
o
v
e
,
an
d
wi
l
l
co
n
t
i
n
u
e
un
t
i
l
?n
a
l
co
m
p
l
e
t
i
o
n
of
th
e
Pr
o
j
e
c
t
,
un
l
e
s
s
ot
h
e
r
w
i
s
e
te
r
m
i
n
a
t
e
d
as
pr
o
v
i
d
e
d
in
Se
c
t
i
o
n
12
of
th
i
s
Ag
r
e
e
m
e
n
t
.
Up
o
n
?n
a
l
co
m
p
l
e
t
i
o
n
of
th
e
Pr
o
j
e
c
t
,
as
is
de
?
n
e
d
in
Se
c
t
i
o
n
2
of
th
i
s
Ag
r
e
e
m
e
n
t
,
th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
te
r
m
i
n
a
t
e
au
t
o
m
a
t
i
c
a
l
l
y
wi
t
h
o
u
t
fu
r
t
h
e
r
ac
t
i
o
n
by
th
e
pa
r
t
i
e
s
,
ex
c
e
p
t
fo
r
th
o
s
e
pr
o
v
i
s
i
o
n
s
th
a
t
ar
e
sp
e
c
i
?
c
a
l
l
y
id
e
n
t
i
?
e
d
as
su
r
v
i
v
i
n
g
te
r
m
i
n
a
t
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
.
Ti
m
e
of
Pe
r
f
o
r
m
a
n
c
e
.
Co
n
t
r
a
c
t
o
r
wi
l
l
co
m
p
l
e
t
e
ea
c
h
ob
l
i
g
a
t
i
o
n
wi
t
h
i
n
th
e
ti
m
e
f
r
a
m
e
s
as
ou
t
l
i
n
e
d
in
Co
n
t
r
a
c
t
o
r
’
s
qu
o
t
a
t
i
o
n
fo
r
th
e
Pr
o
j
e
c
t
.
Fi
n
a
l
co
m
p
l
e
t
i
o
n
of
th
e
Pr
o
j
e
c
t
wi
l
l
oc
c
u
r
up
o
n
?n
a
l
ac
c
e
p
t
a
n
c
e
of
th
e
Pr
o
j
e
c
t
by
th
e
Ci
t
y
,
wh
i
c
h
mu
s
t
oc
c
u
r
no
la
t
e
r
th
a
n
Oc
t
o
b
e
r
31
,
20
2
6
(t
h
e
“C
o
m
p
l
e
t
i
o
n
Da
t
e
”
)
.
Th
e
Co
m
p
l
e
t
i
o
n
Da
t
e
ma
y
be
ex
t
e
n
d
e
d
by
wa
y
of
am
e
n
d
m
e
n
t
to
th
i
s
Ag
r
e
e
m
e
n
t
if
mu
t
u
a
l
l
y
ag
r
e
e
d
up
o
n
by
bo
t
h
pa
r
t
i
e
s
.
a
to
se
c
u
r
e
wo
r
k
ar
e
a
an
d
to
di
v
i
d
e
an
ex
i
s
t
i
n
g
Fi
n
a
n
c
e
st
o
r
a
g
e
ro
o
m
in
t
o
tw
o
ne
w
of
?
c
e
s
wi
t
h
bu
s
i
n
e
s
s
oc
c
u
p
a
n
c
y
,
to
be
co
n
s
t
r
u
c
t
e
d
ac
c
o
r
d
i
n
g
to
th
e
co
n
s
t
r
u
c
t
i
o
n
pl
a
n
s
de
s
i
g
n
e
d
fo
r
th
e
Ci
t
y
by
JL
G
Ar
c
h
i
t
e
c
t
s
(t
h
e
“P
l
a
n
s
”
)
.
Th
e
Pl
a
n
s
ar
e
on
?l
e
wi
t
h
th
e
Ci
t
y
,
an
d
we
r
e
ma
d
e
av
a
i
l
a
b
l
e
to
Co
n
t
r
a
c
t
o
r
pr
i
o
r
to
th
e
Ci
t
y
’
s
so
l
i
c
i
t
a
t
i
o
n
of
qu
o
t
e
s
fo
r
th
e
Pr
o
j
e
c
t
.
23
90
6
7
v
3
Page 51 of 356
4.
Co
n
s
t
r
u
c
t
i
o
n
.
Co
n
t
r
a
c
t
o
r
wi
l
l
pe
r
f
o
r
m
th
e
fo
l
l
o
w
i
n
g
co
n
s
t
r
u
c
t
i
o
n
se
r
v
i
c
e
s
:
A.
C.
Pr
e
—
C
o
n
s
n
'
u
c
t
i
o
n
Me
e
t
i
n
g
.
Co
n
t
r
a
c
t
o
r
’
s
Co
n
s
t
r
u
c
t
i
o
n
Su
p
e
r
i
n
t
e
n
d
e
n
t
wi
l
l
me
e
t
wi
t
h
Ci
t
y
St
a
f
f
to
re
v
i
e
w
th
e
sc
o
p
e
of
wo
r
k
,
sc
h
e
d
u
l
e
,
an
d
po
i
n
t
s
of
co
o
r
d
i
n
a
t
i
o
n
be
t
w
e
e
n
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
.
On
e
we
e
k
pr
i
o
r
to
th
i
s
Pi
e
—
C
o
n
s
t
r
u
c
t
i
o
n
Me
e
t
i
n
g
,
Co
n
t
r
a
c
t
o
r
wi
l
l
pr
o
v
i
d
e
an
ag
e
n
d
a
fo
r
th
i
s
me
e
t
i
n
g
,
al
o
n
g
wi
t
h
a
dr
a
f
t
sc
h
e
d
u
l
e
fo
r
co
n
s
t
r
u
c
t
i
o
n
.
Wi
t
h
i
n
on
e
we
e
k
fo
l
l
o
w
i
n
g
th
i
s
Pr
e
-
C
o
n
s
t
r
u
c
t
i
o
n
Me
e
t
i
n
g
,
Co
n
t
r
a
c
t
o
r
wi
l
l
pr
o
v
i
d
e
a
su
m
m
a
r
y
of
th
i
s
me
e
t
i
n
g
in
th
e
fo
r
m
of
me
e
t
i
n
g
mi
n
u
t
e
s
an
d
a
?n
a
l
co
n
s
t
r
u
c
t
i
o
n
sc
h
e
d
u
l
e
.
.
Co
n
s
t
r
u
c
t
i
o
n
.
Co
n
t
r
a
c
t
o
r
wi
l
l
pr
o
v
i
d
e
co
m
p
r
e
h
e
n
s
i
v
e
co
n
s
t
r
u
c
t
i
o
n
se
r
v
i
c
e
s
in
c
l
u
d
i
n
g
la
b
o
r
,
ma
t
e
r
i
a
l
s
,
an
d
eq
u
i
p
m
e
n
t
re
q
u
i
r
e
d
to
ex
e
c
u
t
e
th
e
Pr
o
j
e
c
t
as
de
t
a
i
l
e
d
in
th
e
Pl
a
n
s
.
Pr
o
j
e
c
t
Cl
o
s
e
o
u
t
.
Up
o
n
co
m
p
l
e
t
i
o
n
of
Co
n
s
t
r
u
c
t
i
o
n
,
Co
n
t
r
a
c
t
o
r
wi
l
l
pr
o
v
i
d
e
th
e
fo
l
l
o
w
i
n
g
to
th
e
Ci
t
y
:
(1
)
Ac
c
e
p
t
a
n
c
e
Le
t
t
e
r
(P
D
F
)
;
(2
)
Ow
n
e
r
’
s
Ma
n
u
a
l
(P
D
F
)
;
(3
)
Wa
r
r
a
n
t
y
In
f
o
r
m
a
t
i
o
n
(P
D
F
)
an
d
;
(4
)
Co
n
t
r
a
c
t
o
r
’
s
Re
v
i
s
e
d
Pl
a
n
Se
t
(P
D
F
)
.
5.
Bi
l
l
i
n
g
an
d
Pa
y
m
e
n
t
.
Co
n
t
r
a
c
t
o
r
ac
k
n
o
w
l
e
d
g
e
s
th
a
t
th
e
Pr
o
j
e
c
t
mu
s
t
be
co
m
p
l
e
t
e
d
fo
r
an
am
o
u
n
t
no
t
to
ex
c
e
e
d
$1
2
1
,
0
8
0
(t
h
e
“N
T
E
”
)
.
Bi
l
l
i
n
g
an
d
pa
y
m
e
n
t
fo
r
wo
r
k
pe
r
f
o
r
m
e
d
an
d
ma
t
e
r
i
a
l
s
wi
l
l
be
as
fo
l
l
o
w
s
:
A.
Co
n
t
r
a
c
t
o
r
wi
l
l
pr
o
v
i
d
e
th
e
Ci
t
y
wi
t
h
mo
n
t
h
l
y
in
v
o
i
c
e
s
th
a
t
it
e
m
i
z
e
wo
r
k
pe
r
f
o
r
m
e
d
an
d
ma
t
e
r
i
a
l
s
pu
r
c
h
a
s
e
d
.
.
If
th
e
wo
r
k
an
d
ma
t
e
r
i
a
l
s
it
e
m
i
z
e
d
on
an
in
v
o
i
c
e
ar
e
un
d
i
s
p
u
t
e
d
,
th
e
pa
y
m
e
n
t
fo
r
su
c
h
un
d
i
s
p
u
t
e
d
wo
r
k
an
d
ma
t
e
r
i
a
l
s
wi
l
l
be
c
o
m
e
du
e
af
t
e
r
35
da
y
s
fo
l
l
o
w
i
n
g
re
c
e
i
p
t
of
th
e
in
v
o
i
c
e
by
th
e
Ci
t
y
.
Th
e
Ci
t
y
sh
a
l
l
co
m
p
l
y
wi
t
h
ap
p
l
i
c
a
b
l
e
pr
o
v
i
s
i
o
n
s
of
Mi
n
n
e
s
o
t
a
Pr
o
m
p
t
Pa
y
m
e
n
t
Ac
t
,
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
§
47
1
.
4
2
5
,
in
c
l
u
d
i
n
g
an
y
pr
o
v
i
s
i
o
n
s
fo
r
pa
y
m
e
n
t
of
in
t
e
r
e
s
t
fo
r
un
d
i
s
p
u
t
e
d
am
o
u
n
t
s
.
Be
f
o
r
e
a
?n
a
l
in
v
o
i
c
e
is
su
b
m
i
t
t
e
d
by
Co
n
t
r
a
c
t
o
r
,
Co
n
t
r
a
c
t
o
r
mu
s
t
sh
o
w
sa
t
i
s
f
a
c
t
o
r
y
co
m
p
l
i
a
n
c
e
wi
t
h
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
§
29
0
.
9
2
,
wh
i
c
h
re
q
u
i
r
e
s
th
e
wi
t
h
h
o
l
d
i
n
g
of
st
a
t
e
in
c
o
m
e
ta
x
e
s
fo
r
wa
g
e
s
pa
i
d
to
em
p
l
o
y
e
e
s
on
th
e
Pr
o
j
e
c
t
.
Su
b
m
i
t
t
a
l
of
a
Ce
r
t
i
?
c
a
t
e
of
Co
m
p
l
i
a
n
c
e
fr
o
m
th
e
Mi
n
n
e
s
o
t
a
Co
m
m
i
s
s
i
o
n
e
r
of
Re
v
e
n
u
e
wi
l
l
sa
t
i
s
f
y
th
i
s
re
q
u
i
r
e
m
e
n
t
.
no
t
an
y
ex
t
r
a
or
be
y
o
n
d
th
e
sc
o
p
e
of
th
i
s
Ag
r
e
e
m
e
n
t
,
or
th
e
NT
E
pr
i
c
e
fo
r
th
e
se
r
v
i
c
e
s
id
e
n
t
i
?
e
d
in
th
i
s
Ag
r
e
e
m
e
n
t
,
wi
t
h
o
u
t
wr
i
t
t
e
n
su
b
m
i
t
t
a
l
by
Co
n
t
r
a
c
t
o
r
in
th
e
fo
r
m
of
a
ch
a
n
g
e
or
d
e
r
ba
s
e
d
on
Co
n
t
r
a
c
t
o
r
’
s
qu
o
t
e
,
an
d
ap
p
r
o
v
a
l
of
su
c
h
ch
a
n
g
e
or
d
e
r
by
th
e
Ci
t
y
.
An
y
ch
a
n
g
e
or
d
e
r
mu
s
t
in
c
l
u
d
e
sp
e
c
i
?
c
es
t
i
m
a
t
e
s
of
ty
p
e
,
ti
m
e
,
an
d
ma
x
i
m
u
m
co
s
t
s
fo
r
ex
t
r
a
se
r
v
i
c
e
s
,
an
d
mu
s
t
be
su
b
m
i
t
t
e
d
an
d
ap
p
r
o
v
e
d
pr
i
o
r
to
co
m
m
e
n
c
e
m
e
n
t
of
th
e
ex
t
r
a
se
n
/
i
c
e
s
by
Co
n
t
r
a
c
t
o
r
.
23
9
0
6
7
v
3
Page 52 of 356
7.
Ci
g
Re
q
u
i
r
e
m
e
n
t
s
.
Co
n
t
r
a
c
t
o
r
ac
k
n
o
w
l
e
d
g
e
s
th
a
t
th
e
Pr
o
j
e
c
t
su
b
j
e
c
t
to
va
r
i
o
u
s
po
l
i
c
i
e
s
of
th
e
Ci
t
y
.
Ac
c
o
r
d
i
n
g
l
y
,
Co
n
t
r
a
c
t
o
r
wi
l
l
co
m
p
l
y
wi
t
h
al
l
re
q
u
i
r
e
m
e
n
t
s
of
th
e
Ci
t
y
th
a
t
be
a
r
on
th
e
Co
n
t
r
a
c
t
o
r
’
s
pe
r
f
o
r
m
a
n
c
e
on
th
e
Pr
o
j
e
c
t
.
Co
n
t
r
a
c
t
o
r
wi
l
l
sp
e
c
i
?
c
a
l
l
y
co
m
p
l
y
wi
t
h
th
e
fo
l
l
o
w
i
n
g
:
A.
23
9
0
6
7
v
3
Mi
n
n
e
s
o
t
a
Pr
o
m
p
t
Pa
y
m
e
n
t
Ac
t
.
Pu
r
s
u
a
n
t
to
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
§
47
1
.
4
2
5
,
su
b
d
.
4a
,
Co
n
t
r
a
c
t
o
r
mu
s
t
pa
y
an
y
su
b
c
o
n
t
r
a
c
t
o
r
wi
t
h
i
n
te
n
da
y
s
of
Co
n
t
r
a
c
t
o
r
’
s
re
c
e
i
p
t
of
pa
y
m
e
n
t
fr
o
m
th
e
Ci
t
y
fo
r
un
d
i
s
p
u
t
e
d
se
r
v
i
c
e
s
pr
o
v
i
d
e
d
by
th
e
su
b
c
o
n
t
r
a
c
t
o
r
.
Co
n
t
r
a
c
t
o
r
mu
s
t
pa
y
in
t
e
r
e
s
t
of
on
e
an
d
on
e
-
h
a
l
f
pe
r
c
e
n
t
(1
1
/
2
%
)
pe
r
mo
n
t
h
or
an
y
pa
r
t
of
a
mo
n
t
h
to
su
b
c
o
n
t
r
a
c
t
o
r
on
an
y
un
d
i
s
p
u
t
e
d
am
o
u
n
t
no
t
pa
i
d
on
ti
m
e
to
th
e
su
b
c
o
n
t
r
a
c
t
o
r
.
Th
e
mi
n
i
m
u
m
mo
n
t
h
l
y
in
t
e
r
e
s
t
pe
n
a
l
t
y
pa
y
m
e
n
t
fo
r
an
un
p
a
i
d
ba
l
a
n
c
e
of
$1
0
0
.
0
0
or
mo
r
e
is
$1
0
.
0
0
.
Fo
r
an
un
p
a
i
d
ba
l
a
n
c
e
of
le
s
s
th
a
n
$1
0
0
.
0
0
,
Co
n
t
r
a
c
t
o
r
mu
s
t
pa
y
th
e
ac
t
u
a
l
pe
n
a
l
t
y
du
e
to
th
e
su
b
c
o
n
t
r
a
c
t
o
r
.
A
su
b
c
o
n
t
r
a
c
t
o
r
wh
o
pr
e
v
a
i
l
s
in
a
ci
v
i
l
ac
t
i
o
n
to
co
l
l
e
c
t
in
t
e
r
e
s
t
pe
n
a
l
t
i
e
s
fr
o
m
Co
n
t
r
a
c
t
o
r
wi
l
l
be
aw
a
r
d
e
d
it
s
co
s
t
s
an
d
di
s
b
u
r
s
e
m
e
n
t
s
,
in
c
l
u
d
i
n
g
at
t
o
r
n
e
y
’
s
fe
e
s
,
in
c
u
r
r
e
d
in
br
i
n
g
i
n
g
th
e
ac
t
i
o
n
.
Mi
n
n
e
s
o
t
a
Go
v
e
r
n
m
e
n
t
Da
t
a
Pr
a
c
t
i
c
e
s
Ac
t
.
Co
n
t
r
a
c
t
o
r
mu
s
t
co
m
p
l
y
wi
t
h
th
e
Mi
n
n
e
s
o
t
a
Go
v
e
r
n
m
e
n
t
Da
t
a
Pr
a
c
t
i
c
e
s
Ac
t
,
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
Ch
a
p
t
e
r
13
,
as
it
ap
p
l
i
e
s
to
(1
)
al
l
da
t
a
pr
o
v
i
d
e
d
by
th
e
Ci
t
y
pu
r
s
u
a
n
t
to
th
i
s
Ag
r
e
e
m
e
n
t
,
an
d
(2
)
al
l
da
t
a
,
cr
e
a
t
e
d
,
co
l
l
e
c
t
e
d
,
re
c
e
i
v
e
d
,
st
o
r
e
d
,
us
e
d
,
ma
i
n
t
a
i
n
e
d
,
or
di
s
s
e
m
i
n
a
t
e
d
by
Co
n
t
r
a
c
t
o
r
pu
r
s
u
a
n
t
to
th
i
s
Ag
r
e
e
m
e
n
t
.
Co
n
t
r
a
c
t
o
r
is
su
b
j
e
c
t
to
al
l
th
e
pr
o
v
i
s
i
o
n
s
of
th
e
Mi
n
n
e
s
o
t
a
Go
v
e
r
n
m
e
n
t
Da
t
a
Pr
a
c
t
i
c
e
s
Ac
t
,
in
c
l
u
d
i
n
g
bu
t
no
t
li
m
i
t
e
d
to
th
e
ci
v
i
l
re
m
e
d
i
e
s
of
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
§
13
.
0
8
,
as
if
it
we
r
e
a
go
v
e
r
n
m
e
n
t
en
t
i
t
y
.
In
th
e
ev
e
n
t
Co
n
t
r
a
c
t
o
r
re
c
e
i
v
e
s
a
re
q
u
e
s
t
to
re
l
e
a
s
e
da
t
a
,
Co
n
t
r
a
c
t
o
r
mu
s
t
im
m
e
d
i
a
t
e
l
y
no
t
i
f
y
th
e
Ci
t
y
.
Th
e
Ci
t
y
wi
l
l
gi
v
e
Co
n
t
r
a
c
t
o
r
in
s
t
r
u
c
t
i
o
n
s
co
n
c
e
r
n
i
n
g
th
e
re
l
e
a
s
e
of
th
e
da
t
a
to
th
e
re
q
u
e
s
t
i
n
g
pa
r
t
y
be
f
o
r
e
th
e
da
t
a
is
re
l
e
a
s
e
d
.
Co
n
t
r
a
c
t
o
r
ag
r
e
e
s
to
de
f
e
n
d
,
in
d
e
m
n
i
f
y
,
an
d
ho
l
d
Ci
t
y
,
it
s
of
?
c
i
a
l
s
,
of
?
c
e
r
s
,
ag
e
n
t
s
,
em
p
l
o
y
e
e
s
,
an
d
vo
l
u
n
t
e
e
r
s
ha
r
m
l
e
s
s
?‘
o
m
an
y
cl
a
i
m
s
re
s
u
l
t
i
n
g
?‘
o
m
an
y
un
l
a
w
f
u
l
di
s
c
l
o
s
u
r
e
an
d
/
o
r
us
e
of
pr
o
t
e
c
t
e
d
da
t
a
by
Co
n
t
r
a
c
t
o
r
,
it
s
of
?
c
e
r
s
,
ag
e
n
t
s
,
pa
r
t
n
e
r
s
,
em
p
l
o
y
e
e
s
,
vo
l
u
n
t
e
e
r
s
,
as
s
i
g
n
e
e
s
,
or
su
b
c
o
n
t
r
a
c
t
o
r
s
.
Th
e
te
r
m
s
of
th
i
s
Se
c
t
i
o
n
7.
E
.
wi
l
l
su
r
v
i
v
e
th
e
te
r
m
i
n
a
t
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
.
No
n
d
i
s
c
r
i
m
i
n
a
t
i
o
n
.
Co
n
t
r
a
c
t
o
r
wi
l
l
en
s
u
r
e
th
a
t
no
pe
r
s
o
n
wi
l
l
on
th
e
gr
o
u
n
d
s
of
ra
c
e
,
co
l
o
r
,
re
l
i
g
i
o
n
s
,
se
x
,
se
x
u
a
l
or
i
e
n
t
a
t
i
o
n
,
ge
n
d
e
r
id
e
n
t
i
t
y
,
ha
n
d
i
c
a
p
,
fa
m
i
l
i
a
l
st
a
t
u
s
,
or
na
t
i
o
n
a
l
or
i
g
i
n
be
ex
c
l
u
d
e
d
fr
o
m
pa
r
t
i
c
i
p
a
t
i
o
n
in
,
be
de
n
i
e
d
th
e
be
n
e
?
t
s
of
,
or
be
su
b
j
e
c
t
e
d
to
di
s
c
r
i
m
i
n
a
t
i
o
n
un
d
e
r
an
y
sc
o
p
e
of
wo
r
k
ca
r
r
i
e
d
ou
t
by
Co
n
t
a
c
t
o
r
.
Co
n
t
r
a
c
t
o
r
ag
r
e
e
s
to
be
bo
u
n
d
by
th
e
pr
o
v
i
s
i
o
n
s
of
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
§
18
1
.
5
9
,
th
a
t
pr
o
h
i
b
i
t
s
ce
r
t
a
i
n
di
s
c
r
i
m
i
n
a
t
o
r
y
pr
a
c
t
i
c
e
s
an
d
th
e
te
r
m
s
of
sa
i
d
se
c
t
i
o
n
ar
e
in
c
o
r
p
o
r
a
t
e
d
in
t
o
th
i
s
Ag
r
e
e
m
e
n
t
.
Co
n
t
r
a
c
t
o
r
ag
r
e
e
s
th
a
t
al
l
bo
o
k
s
,
re
c
o
r
d
s
,
do
c
u
m
e
n
t
s
,
an
d
ac
c
o
u
n
t
i
n
g
pr
o
c
e
d
u
r
e
s
an
d
pr
a
c
t
i
c
e
s
of
Co
n
t
r
a
c
t
o
r
th
a
t
ar
e
re
l
e
v
a
n
t
to
th
i
s
Ag
r
e
e
m
e
n
t
ar
e
su
b
j
e
c
t
to
ex
a
m
i
n
a
t
i
o
n
by
th
e
Ci
t
y
,
th
e
Ci
t
y
’
s
au
d
i
t
o
r
,
an
d
th
e
Mi
n
n
e
s
o
t
a
st
a
t
e
au
d
i
t
o
r
fo
r
a
mi
n
i
m
u
m
of
si
x
ye
a
r
s
.
Co
n
t
r
a
c
t
o
r
mu
s
t
ma
i
n
t
a
i
n
su
c
h
re
c
o
r
d
s
fo
r
a
mi
n
i
m
u
m
of
si
x
ye
a
r
s
af
t
e
r
?n
a
l
pa
y
m
e
n
t
by
th
e
Ci
t
y
.
Th
e
te
r
m
s
of
th
i
s
Se
c
t
i
o
n
7.
E
.
wi
l
l
su
r
v
i
v
e
th
e
te
r
m
i
n
a
t
i
o
n
of
th
i
s
Page 53 of 356
Ag
r
e
e
m
e
n
t
.
Co
m
p
l
i
a
n
c
e
wi
t
h
Ci
t
y
Re
q
u
e
s
t
s
.
Co
n
t
r
a
c
t
o
r
wi
l
l
pr
o
m
p
t
l
y
fu
r
n
i
s
h
th
e
Ci
t
y
wi
t
h
in
f
o
r
m
a
t
i
o
n
,
do
c
u
m
e
n
t
s
,
an
d
ot
h
e
r
ma
t
e
r
i
a
l
s
th
a
t
th
e
Ci
t
y
or
th
e
Fu
n
d
e
r
ma
y
re
q
u
e
s
t
fr
o
m
ti
m
e
to
ti
m
e
.
Co
n
t
r
a
c
t
o
r
wi
l
l
al
s
o
pr
o
m
p
t
l
y
pr
o
v
i
d
e
su
c
h
ce
r
t
i
?
c
a
t
i
o
n
s
,
co
n
s
e
n
t
s
,
su
b
o
r
d
i
n
a
t
i
o
n
s
,
or
ot
h
e
r
do
c
u
m
e
n
t
s
as
ma
y
be
re
q
u
e
s
t
e
d
by
th
e
Ci
t
y
or
th
e
Fu
n
d
e
r
.
Ot
h
e
r
Re
q
u
i
r
e
m
e
n
t
s
.
Co
n
t
r
a
c
t
o
r
wi
l
l
co
m
p
l
y
wi
t
h
an
y
ot
h
e
r
re
q
u
i
r
e
m
e
n
t
s
im
p
o
s
e
d
on
th
e
Ci
t
y
by
th
e
Fu
n
d
e
r
up
o
n
no
t
i
c
e
to
Co
n
t
r
a
c
t
o
r
of
su
c
h
re
q
u
i
r
e
m
e
n
t
s
.
8.
Ci
?
Ob
l
i
g
a
t
i
o
n
s
.
Th
e
Ci
t
y
is
ob
l
i
g
a
t
e
d
to
do
th
e
fo
l
l
o
w
i
n
g
:
A.
B.
Pr
o
v
i
d
e
to
Co
n
t
r
a
c
t
o
r
su
c
h
in
f
o
r
m
a
t
i
o
n
ab
o
u
t
th
e
Bu
i
l
d
i
n
g
th
a
t
is
in
th
e
Ci
t
y
’
s
po
s
s
e
s
s
i
o
n
an
d
co
n
t
r
o
l
,
in
c
l
u
d
i
n
g
:
(1
)
Le
g
a
l
li
m
i
t
a
t
i
o
n
s
;
(2
)
Ut
i
l
i
t
y
lo
c
a
t
i
o
n
s
;
an
d
(3
)
Pl
a
n
Se
t
.
Pa
y
Co
n
t
r
a
c
t
o
r
ac
c
o
r
d
i
n
g
to
th
e
re
q
u
i
r
e
m
e
n
t
s
of
th
i
s
Ag
r
e
e
m
e
n
t
.
9.
Co
n
t
r
a
c
t
o
r
’
s
In
s
u
r
a
n
c
e
.
Co
n
t
r
a
c
t
o
r
,
at
Co
n
t
r
a
c
t
’
s
so
l
e
co
s
t
an
d
ex
p
e
n
s
e
,
mu
s
t
pr
o
c
u
r
e
an
d
ma
i
n
t
a
i
n
in
fo
r
c
e
fo
r
th
e
du
r
a
t
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
th
e
fo
l
l
o
w
i
n
g
mi
n
i
m
u
m
in
s
u
r
a
n
c
e
co
v
e
r
a
g
e
s
:
A.
Ge
n
e
r
a
l
Li
a
b
i
l
i
t
y
.
Co
n
t
r
a
c
t
o
r
wi
l
l
ma
i
n
t
a
i
n
Co
m
m
e
r
c
i
a
l
Ge
n
e
r
a
l
Li
a
b
i
l
i
t
y
in
s
u
r
a
n
c
e
in
a
mi
n
i
m
u
m
am
o
u
n
t
of
$1
,0
0
0
,
0
0
0
pe
r
oc
c
u
r
r
e
n
c
e
;
$2
,
0
0
0
,
0
0
0
an
n
u
a
l
ag
g
r
e
g
a
t
e
.
Th
e
po
l
i
c
y
mu
s
t
co
v
e
r
li
a
b
i
l
i
t
y
ar
i
s
i
n
g
fr
o
m
pr
e
m
i
s
e
s
,
op
e
r
a
t
i
o
n
s
,
pr
o
d
u
c
t
s
—
c
o
m
p
l
e
t
e
d
op
e
r
a
t
i
o
n
s
,
pe
r
s
o
n
a
l
in
j
u
r
y
,
ad
v
e
r
t
i
s
i
n
g
in
j
u
r
y
,
an
d
co
n
t
r
a
c
t
u
a
l
l
y
as
s
u
m
e
d
li
a
b
i
l
i
t
y
.
Th
e
Ci
t
y
,
in
c
l
u
d
i
n
g
it
s
el
e
c
t
e
d
an
d
ap
p
o
i
n
t
e
d
of
?
c
i
a
l
s
,
em
p
l
o
y
e
e
s
,
an
d
ag
e
n
t
s
,
mu
s
t
be
en
d
o
r
s
e
d
as
ad
d
i
t
i
o
n
a
l
in
s
u
r
e
d
.
B.
Au
t
o
m
o
b
i
l
e
Li
a
b
i
l
i
t
y
.
If
Co
n
t
r
a
c
t
o
r
op
e
r
a
t
e
s
a
mo
t
o
r
ve
h
i
c
l
e
in
pe
r
f
o
r
m
i
n
g
th
e
Se
r
v
i
c
e
s
23
90
6
7
v
3
un
d
e
r
th
i
s
Ag
r
e
e
m
e
n
t
,
Co
n
t
r
a
c
t
o
r
wi
l
l
ma
i
n
t
a
i
n
co
m
m
e
r
c
i
a
l
au
t
o
m
o
b
i
l
e
li
a
b
i
l
i
t
y
in
s
u
r
a
n
c
e
,
in
c
l
u
d
i
n
g
ow
n
e
d
,
hi
r
e
d
,
an
d
no
n
-
o
w
n
e
d
au
t
o
m
o
b
i
l
e
s
,
wi
t
h
a
mi
n
i
m
u
m
li
a
b
i
l
i
t
y
li
m
i
t
of
$2
,
0
0
0
,
0
0
0
,
co
m
b
i
n
e
d
si
n
g
l
e
li
m
i
t
.
Wo
r
k
e
r
s
’
Co
m
p
e
n
s
a
t
i
o
n
;
Em
p
l
o
y
e
r
s
’
Li
a
b
i
l
i
t
y
Co
v
e
r
a
g
e
.
Co
n
t
r
a
c
t
o
r
wi
l
l
pr
o
v
i
d
e
Wo
r
k
e
r
s
’
Co
m
p
e
n
s
a
t
i
o
n
in
s
u
r
a
n
c
e
fo
r
al
l
it
s
em
p
l
o
y
e
e
s
in
ac
c
o
r
d
a
n
c
e
wi
t
h
th
e
ar
e
as
(1
)
$1
,
0
0
0
,
0
0
0
—
Bo
d
i
l
y
In
j
u
r
y
by
Di
s
e
a
s
e
pe
r
em
p
l
o
y
e
e
(2
)
$1
,
0
0
0
,
0
0
0
—
Bo
d
i
l
y
In
j
u
r
y
by
Di
s
e
a
s
e
ag
g
r
e
g
a
t
e
(3
)
$1
,
0
0
0
,
0
0
0
—
Bo
d
i
l
y
In
j
u
r
y
by
Ac
c
i
d
e
n
t
Page 54 of 356
D.
Er
r
o
r
s
an
d
Om
i
s
s
i
o
n
s
/
P
r
o
f
e
s
s
i
o
n
a
l
Li
a
b
i
l
i
t
y
.
Co
n
t
r
a
c
t
o
r
wi
l
l
ma
i
n
t
a
i
n
Er
r
o
r
s
an
d
Om
i
s
s
i
o
n
s
/
P
r
o
f
e
s
s
i
o
n
a
l
Li
a
b
i
l
i
t
y
in
s
u
r
a
n
c
e
in
th
e
am
o
u
n
t
of
$2
,
0
0
0
,
0
0
0
pe
r
oc
c
u
r
r
e
n
c
e
,
$2
,
0
0
0
,
0
0
0
an
n
u
a
l
ag
g
r
e
g
a
t
e
.
E.
Ex
c
e
s
s
Li
a
b
i
l
i
t
y
or
Um
b
r
e
l
l
a
In
s
u
r
a
n
c
e
.
Co
n
t
r
a
c
t
o
r
wi
l
l
ma
i
n
t
a
i
n
Ex
c
e
s
s
Li
a
b
i
l
i
t
y
or
Um
b
r
e
l
l
a
Co
v
e
r
a
g
e
in
s
u
r
a
n
c
e
in
a
mi
n
i
m
u
m
am
o
u
n
t
of
$5
,
0
0
0
,
0
0
0
.
F.
Mi
s
c
e
l
l
a
n
e
o
u
s
In
s
u
r
a
n
c
e
Re
q
u
i
r
e
m
e
n
t
s
.
(1
)
(2
)
(3
)
(4
)
Co
n
t
r
a
c
t
o
r
mu
s
t
,
pr
i
o
r
to
co
m
m
e
n
c
i
n
g
th
e
an
y
wo
r
k
un
d
e
r
th
i
s
Ag
r
e
e
m
e
n
t
,
de
l
i
v
e
r
to
th
e
Ci
t
y
Ce
r
t
i
?
c
a
t
e
(
s
)
of
In
s
u
r
a
n
c
e
as
ev
i
d
e
n
c
e
th
a
t
th
e
co
v
e
r
a
g
e
s
ou
t
l
i
n
e
d
ab
o
v
e
ar
e
in
fu
l
l
fo
r
c
e
an
d
ef
f
e
c
t
.
Th
e
in
s
u
r
a
n
c
e
re
q
u
i
r
e
m
e
n
t
s
ma
y
be
me
t
th
r
o
u
g
h
an
y
co
m
b
i
n
a
t
i
o
n
of
pr
i
m
a
r
y
an
d
um
b
r
e
l
l
a
/
e
x
c
e
s
s
in
s
u
r
a
n
c
e
.
Th
e
Ci
t
y
mu
s
t
be
na
m
e
d
as
an
ad
d
i
t
i
o
n
a
l
in
s
u
r
e
d
on
an
y
um
b
r
e
l
l
a
/
e
x
c
e
s
s
po
l
i
c
y
.
Wh
e
r
e
ap
p
l
i
c
a
b
l
e
,
Co
n
t
r
a
c
t
o
r
’
s
po
l
i
c
i
e
s
wi
l
l
be
pr
i
m
a
r
y
in
s
u
r
a
n
c
e
an
d
no
n
-
co
n
t
r
i
b
u
t
o
r
y
to
an
y
ot
h
e
r
va
l
i
d
an
d
co
l
l
e
c
t
i
b
l
e
in
s
u
r
a
n
c
e
av
a
i
l
a
b
l
e
to
th
e
Ci
t
y
wi
t
h
re
s
p
e
c
t
to
an
y
cl
a
i
m
ar
i
s
i
n
g
ou
t
of
Co
n
t
r
a
c
t
o
r
’
s
pe
r
f
o
r
m
a
n
c
e
un
d
e
r
th
i
s
Ag
r
e
e
m
e
n
t
.
Co
n
t
r
a
c
t
o
r
’
s
po
l
i
c
i
e
s
an
d
Ce
r
t
i
?
c
a
t
e
of
In
s
u
r
a
n
c
e
mu
s
t
co
n
t
a
i
n
a
pr
o
v
i
s
i
o
n
th
a
t
co
v
e
r
a
g
e
af
f
o
r
d
e
d
un
d
e
r
th
e
po
l
i
c
i
e
s
wi
l
l
no
t
be
ca
n
c
e
l
l
e
d
wi
t
h
o
u
t
at
le
a
s
t
30
da
y
s
’
ad
v
a
n
c
e
d
wr
i
t
t
e
n
no
t
i
c
e
to
th
e
Ci
t
y
,
or
10
da
y
s
’
wr
i
t
t
e
n
no
t
i
c
e
fo
r
no
n
p
a
y
m
e
n
t
of
pr
e
m
i
u
m
.
10
.
In
d
e
m
n
i
f
i
c
a
t
i
o
n
.
Co
n
t
r
a
c
t
o
r
ag
r
e
e
s
to
de
f
e
n
d
,
ho
l
d
ha
r
m
l
e
s
s
,
an
d
in
d
e
m
n
i
f
y
th
e
Ci
t
y
,
it
s
of
?
c
i
a
l
s
,
em
p
l
o
y
e
e
s
,
ag
e
n
t
s
,
co
n
s
u
l
t
a
n
t
s
,
an
d
vo
l
u
n
t
e
e
r
s
,
fo
r
an
d
ag
a
i
n
s
t
an
y
an
d
al
l
cl
a
i
m
s
,
de
m
a
n
d
s
,
ac
t
i
o
n
s
,
or
ca
u
s
e
s
of
ac
t
i
o
n
,
of
wh
a
t
e
v
e
r
na
t
u
r
e
or
ch
a
r
a
c
t
e
r
,
ar
i
s
i
n
g
fr
o
m
Co
n
t
r
a
c
t
o
r
’
s
pe
r
f
o
r
m
a
n
c
e
of
wo
r
k
or
se
r
v
i
c
e
s
pr
o
v
i
d
e
d
fo
r
in
th
i
s
Ag
r
e
e
m
e
n
t
.
Co
n
t
r
a
c
t
o
r
wi
l
l
ta
k
e
al
l
re
a
s
o
n
a
b
l
e
pr
e
c
a
u
t
i
o
n
s
fo
r
th
e
sa
f
e
t
y
of
al
l
of
it
s
em
p
l
o
y
e
e
s
,
ag
e
n
t
s
,
an
d
su
b
c
o
n
t
r
a
c
t
o
r
s
in
an
d
ar
o
u
n
d
th
e
Bu
i
l
d
i
n
g
an
d
wi
l
l
pr
o
v
i
d
e
re
a
s
o
n
a
b
l
e
pr
o
t
e
c
t
i
o
n
to
pr
e
v
e
n
t
da
m
a
g
e
or
lo
s
s
to
an
y
pr
o
p
e
r
t
y
in
an
d
ar
o
u
n
d
th
e
Bu
i
l
d
i
n
g
,
or
pr
o
p
e
r
t
i
e
s
ad
j
a
c
e
n
t
to
th
e
Bu
i
l
d
i
n
g
an
d
to
th
e
wo
r
k
,
ma
t
e
r
i
a
l
s
,
an
d
eq
u
i
p
m
e
n
t
un
d
e
r
Co
n
t
r
a
c
t
o
r
’
s
co
n
t
r
o
l
.
1
1.
Su
r
e
t
y
.
Co
n
t
r
a
c
t
o
r
wi
l
l
fu
r
n
i
s
h
,
an
d
at
al
l
ti
m
e
s
ma
i
n
t
a
i
n
,
a
pe
r
f
o
r
m
a
n
c
e
bo
n
d
an
d
a
pa
y
m
e
n
t
bo
n
d
in
at
le
a
s
t
th
e
fu
l
l
am
o
u
n
t
of
th
e
NT
E
se
t
fo
r
t
h
in
Se
c
t
i
o
n
5
of
th
i
s
Ag
r
e
e
m
e
n
t
fo
r
ea
c
h
bo
n
d
wi
t
h
a
co
r
p
o
r
a
t
e
su
r
e
t
y
th
a
t
is
sa
t
i
s
f
a
c
t
o
r
y
to
th
e
Ci
t
y
.
Pe
r
s
o
n
a
l
su
r
e
t
i
e
s
wi
l
l
no
t
be
ac
c
e
p
t
e
d
.
Co
n
t
r
a
c
t
o
r
mu
s
t
fu
r
n
i
s
h
th
e
bo
n
d
s
to
th
e
Ci
t
y
fo
r
re
v
i
e
w
an
d
ap
p
r
o
v
a
l
pr
i
o
r
to
co
m
m
e
n
c
i
n
g
an
y
wo
r
k
on
th
e
Pr
o
j
e
c
t
.
A.
Th
e
Ci
t
y
ma
y
te
r
m
i
n
a
t
e
th
i
s
Ag
r
e
e
m
e
n
t
if
Co
n
t
r
a
c
t
o
r
vi
o
l
a
t
e
s
an
y
ma
t
e
r
i
a
l
te
r
m
or
co
n
d
i
t
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
or
do
e
s
no
t
fu
l
?
l
l
in
a
ti
m
e
l
y
an
d
pr
o
p
e
r
ma
n
n
e
r
it
s
ob
l
i
g
a
t
i
o
n
s
un
d
e
r
th
i
s
Ag
r
e
e
m
e
n
t
.
In
th
e
ev
e
n
t
th
a
t
th
e
Ci
t
y
ex
e
r
c
i
s
e
s
it
s
ri
g
h
t
of
23
9
0
6
7
V
3
te
r
m
i
n
a
t
i
o
n
un
d
e
r
th
i
s
Se
c
t
i
o
n
12
,
th
e
Ci
t
y
wi
l
l
su
b
m
i
t
wr
i
t
t
e
n
no
t
i
c
e
to
Co
n
t
r
a
c
t
o
r
an
d
it
s
su
r
e
t
y
,
if
an
y
,
sp
e
c
i
f
y
i
n
g
th
e
re
a
s
o
n
s
fo
r
te
r
m
i
n
a
t
i
o
n
.
Te
r
m
i
n
a
t
i
o
n
wi
l
l
be
Page 55 of 356
im
m
e
d
i
a
t
e
l
y
ef
f
e
c
t
i
v
e
up
o
n
th
e
fa
i
l
u
r
e
of
Co
n
t
r
a
c
t
o
r
to
cu
r
e
th
e
de
f
a
u
l
t
wi
t
h
i
n
10
bu
s
i
n
e
s
s
da
y
s
of
re
c
e
i
p
t
of
th
e
no
t
i
c
e
of
de
f
a
u
l
t
.
Up
o
n
te
r
m
i
n
a
t
i
o
n
,
Co
n
t
r
a
c
t
o
r
mu
s
t
ta
k
e
al
l
ac
t
i
o
n
s
ne
c
e
s
s
a
r
y
to
di
s
c
o
n
t
i
n
u
e
fu
r
t
h
e
r
co
m
m
i
t
m
e
n
t
s
of
fu
n
d
s
,
an
d
th
e
Ci
t
y
wi
l
l
ta
k
e
po
s
s
e
s
s
i
o
n
of
al
l
ma
t
e
r
i
a
l
s
an
d
fi
n
i
s
h
th
e
Pr
o
j
e
c
t
by
wh
a
t
e
v
e
r
me
t
h
o
d
th
e
Ci
t
y
ma
y
de
e
m
ex
p
e
d
i
e
n
t
.
.
Th
e
Ci
t
y
ma
y
te
r
m
i
n
a
t
e
th
i
s
Ag
r
e
e
m
e
n
t
up
o
n
im
m
e
d
i
a
t
e
wr
i
t
t
e
n
no
t
i
c
e
to
Co
n
t
r
a
c
t
o
r
in
th
e
ev
e
n
t
th
a
t
an
y
pa
r
t
of
th
e
fu
n
d
i
n
g
fo
r
th
e
Pr
o
j
e
c
t
is
ca
n
c
e
l
l
e
d
or
ot
h
e
r
w
i
s
e
be
c
o
m
e
s
un
a
v
a
i
l
a
b
l
e
.
In
su
c
h
ev
e
n
t
,
Co
n
t
r
a
c
t
o
r
wi
l
l
be
en
t
i
t
l
e
d
to
re
c
e
i
v
e
co
m
p
e
n
s
a
t
i
o
n
fo
r
se
r
v
i
c
e
s
pr
o
v
i
d
e
d
in
ac
c
o
r
d
a
n
c
e
wi
t
h
th
i
s
Ag
r
e
e
m
e
n
t
up
to
an
d
in
c
l
u
d
i
n
g
th
e
ef
f
e
c
t
i
v
e
da
t
e
of
te
r
m
i
n
a
t
i
o
n
.
.
Th
e
Ci
t
y
ma
y
te
r
m
i
n
a
t
e
th
i
s
Ag
r
e
e
m
e
n
t
wi
t
h
o
u
t
ca
u
s
e
up
o
n
gi
v
i
n
g
at
le
a
s
t
30
bu
s
i
n
e
s
s
da
y
s
of
wr
i
t
t
e
n
no
t
i
c
e
of
te
r
m
i
n
a
t
i
o
n
to
Co
n
t
r
a
c
t
o
r
.
In
su
c
h
ev
e
n
t
,
Co
n
t
r
a
c
t
o
r
wi
l
l
be
en
t
i
t
l
e
d
to
re
c
e
i
v
e
co
m
p
e
n
s
a
t
i
o
n
fo
r
se
r
v
i
c
e
s
pr
o
v
i
d
e
d
in
ac
c
o
r
d
a
n
c
e
wi
t
h
th
i
s
Ag
r
e
e
m
e
n
t
up
to
an
d
in
c
l
u
d
i
n
g
th
e
ef
f
e
c
t
i
v
e
da
t
e
of
te
r
m
i
n
a
t
i
o
n
.
.
Th
e
Ci
t
y
ma
y
te
r
m
i
n
a
t
e
th
i
s
Ag
r
e
e
m
e
n
t
up
o
n
im
m
e
d
i
a
t
e
wr
i
t
t
e
n
no
t
i
c
e
to
Co
n
t
r
a
c
t
o
r
in
th
e
ev
e
n
t
th
a
t
th
e
Pr
o
j
e
c
t
is
ab
a
n
d
o
n
e
d
.
If
su
c
h
te
r
m
i
n
a
t
i
o
n
oc
c
u
r
s
,
th
e
Ci
t
y
wi
l
l
pa
y
Co
n
t
r
a
c
t
o
r
fo
r
se
r
v
i
c
e
s
co
m
p
l
e
t
e
d
an
d
fo
r
pr
o
v
e
n
lo
s
s
su
s
t
a
i
n
e
d
up
o
n
ma
t
e
r
i
a
l
s
,
eq
u
i
p
m
e
n
t
,
to
o
l
s
,
co
n
s
t
r
u
c
t
i
o
n
eq
u
i
p
m
e
n
t
,
an
d
ma
c
h
i
n
e
r
y
.
.
Th
e
Ci
t
y
ma
y
im
m
e
d
i
a
t
e
l
y
te
r
m
i
n
a
t
e
th
i
s
Ag
r
e
e
m
e
n
t
if
an
y
pr
o
c
e
e
d
i
n
g
or
ot
h
e
r
ac
t
i
o
n
is
fi
l
e
d
by
or
ag
a
i
n
s
t
th
e
Co
n
t
r
a
c
t
o
r
se
e
k
i
n
g
re
o
r
g
a
n
i
z
a
t
i
o
n
,
li
q
u
i
d
a
t
i
o
n
,
di
s
s
o
l
u
t
i
o
n
,
or
in
s
o
l
v
e
n
c
y
of
Co
n
t
r
a
c
t
o
r
un
d
e
r
an
y
la
w
re
l
a
t
i
n
g
to
ba
n
k
r
u
p
t
c
y
,
in
s
o
l
v
e
n
c
y
,
or
re
l
i
e
f
of
de
b
t
o
r
s
.
Co
n
t
r
a
c
t
o
r
mu
s
t
no
t
i
f
y
th
e
Ci
t
y
up
o
n
th
e
co
m
m
e
n
c
e
m
e
n
t
of
su
c
h
pr
o
c
e
e
d
i
n
g
s
or
ot
h
e
r
ac
t
i
o
n
.
.
An
y
te
r
m
i
n
a
t
i
o
n
by
th
e
Ci
t
y
wi
l
l
be
wi
t
h
o
u
t
pr
e
j
u
d
i
c
e
to
th
e
ri
g
h
t
s
of
th
e
Ci
t
y
to
pu
r
s
u
e
ot
h
e
r
re
m
e
d
i
e
s
ag
a
i
n
s
t
Co
n
t
r
a
c
t
o
r
.
l3
.
Te
r
m
i
n
a
t
i
o
n
by
Co
n
t
r
a
c
t
o
r
.
If
th
e
Ci
t
y
fa
i
l
s
to
ma
k
e
pa
y
m
e
n
t
of
un
d
i
s
p
u
t
e
d
am
o
u
n
t
s
or
ot
h
e
r
w
i
s
e
vi
o
l
a
t
e
s
an
y
ma
t
e
r
i
a
l
te
r
m
or
co
n
d
i
t
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
,
Co
n
t
r
a
c
t
o
r
ma
y
gi
v
e
wr
i
t
t
e
n
no
t
i
c
e
th
a
t
Co
n
t
r
a
c
t
o
r
in
t
e
n
d
s
to
te
r
m
i
n
a
t
e
th
i
s
Ag
r
e
e
m
e
n
t
,
gi
v
i
n
g
th
e
sp
e
c
i
f
i
c
re
a
s
o
n
s
fo
r
su
c
h
te
r
m
i
n
a
t
i
o
n
.
Te
r
m
i
n
a
t
i
o
n
wi
l
l
be
im
m
e
d
i
a
t
e
l
y
ef
f
e
c
t
i
v
e
up
o
n
th
e
fa
i
l
u
r
e
of
th
e
Ci
t
y
to
cu
r
e
th
e
de
f
a
u
l
t
wi
t
h
i
n
10
bu
s
i
n
e
s
s
da
y
s
of
re
c
e
i
p
t
of
th
e
no
t
i
c
e
of
de
f
a
u
l
t
.
A
go
o
d
fa
i
t
h
di
s
p
u
t
e
by
th
e
Ci
t
y
re
g
a
r
d
i
n
g
th
e
am
o
u
n
t
of
pa
y
m
e
n
t
an
d
fa
i
l
u
r
e
to
pa
y
di
s
p
u
t
e
d
am
o
u
n
t
s
,
wh
i
c
h
is
su
b
j
e
c
t
to
th
e
pr
o
v
i
s
i
o
n
s
of
th
e
Mi
n
n
e
s
o
t
a
Pr
o
m
p
t
Pa
y
m
e
n
t
Ac
t
,
Mi
n
n
e
s
o
t
a
St
a
t
u
t
e
s
§
47
1
.
4
2
5
,
su
b
d
.
4a
,
do
e
s
no
t
co
n
s
t
i
t
u
t
e
gr
o
u
n
d
s
fo
r
te
r
m
i
n
a
t
i
o
n
by
Co
n
t
r
a
c
t
o
r
un
d
e
r
th
i
s
14
.
Co
n
s
t
r
u
c
t
i
o
n
Co
n
s
i
d
e
r
a
t
i
o
n
s
.
Th
e
fo
l
l
o
w
i
n
g
te
r
m
s
wi
l
l
ap
p
l
y
on
l
y
du
r
i
n
g
co
n
s
t
r
u
c
t
i
o
n
of
th
e
Pr
o
j
e
c
t
:
A.
23
9
0
6
7
v
3
Ch
a
n
g
e
s
to
th
e
Pr
o
j
e
c
t
.
Co
n
t
r
a
c
t
o
r
mu
s
t
co
n
s
u
l
t
wi
t
h
th
e
Ci
t
y
pr
i
o
r
to
ma
k
i
n
g
ch
a
n
g
e
s
to
th
e
wo
r
k
ne
c
e
s
s
a
r
y
to
co
m
p
l
e
t
e
th
e
Pr
o
j
e
c
t
,
in
c
l
u
d
i
n
g
mi
n
o
r
ch
a
n
g
e
s
th
a
t
mi
g
h
t
be
Page 56 of 356
15
.
co
n
s
i
s
t
e
n
t
wi
t
h
th
e
in
t
e
n
t
of
th
e
pr
o
j
e
c
t
de
s
i
g
n
or
th
a
t
mi
g
h
t
no
t
ha
v
e
an
y
ef
f
e
c
t
on
th
e
ov
e
r
a
l
l
co
s
t
s
of
th
e
Pr
o
j
e
c
t
.
B.
Co
n
c
e
a
l
e
d
Co
n
d
i
t
i
o
n
s
.
If
co
n
c
e
a
l
e
d
co
n
d
i
t
i
o
n
s
ar
e
en
c
o
u
n
t
e
r
e
d
at
th
e
Si
t
e
th
a
t
ar
e
(l
)
su
b
s
u
r
f
a
c
e
or
ot
h
e
r
w
i
s
e
co
n
c
e
a
l
e
d
ph
y
s
i
c
a
l
co
n
d
i
t
i
o
n
s
th
a
t
di
f
f
e
r
ma
t
e
r
i
a
l
l
y
fr
o
m
th
o
s
e
kn
o
w
n
du
r
i
n
g
th
e
de
s
i
g
n
of
th
e
Pr
o
j
e
c
t
,
or
ar
e
(2
)
un
k
n
o
w
n
ph
y
s
i
c
a
l
co
n
d
i
t
i
o
n
s
of
an
un
u
s
u
a
l
na
t
u
r
e
th
a
t
di
f
f
e
r
ma
t
e
r
i
a
l
l
y
fr
o
m
th
o
s
e
or
d
i
n
a
r
i
l
y
fo
u
n
d
to
ex
i
s
t
an
d
ge
n
e
r
a
l
l
y
re
c
o
g
n
i
z
e
d
as
in
h
e
r
e
n
t
in
co
n
s
t
r
u
c
t
i
o
n
ac
t
i
v
i
t
i
e
s
of
th
e
ch
a
r
a
c
t
e
r
si
m
i
l
a
r
to
th
e
Pr
o
j
e
c
t
,
th
e
n
wr
i
t
t
e
n
no
t
i
c
e
by
th
e
pa
r
t
y
wh
o
ob
s
e
r
v
e
d
th
e
co
n
d
i
t
i
o
n
s
(t
h
e
“O
b
s
e
r
v
i
n
g
Pa
r
t
y
”
)
mu
s
t
be
gi
v
e
n
pr
o
m
p
t
l
y
be
f
o
r
e
co
n
d
i
t
i
o
n
s
ar
e
di
s
t
u
r
b
e
d
an
d
in
no
ev
e
n
t
la
t
e
r
th
a
n
se
v
e
n
bu
s
i
n
e
s
s
da
y
s
af
t
e
r
?r
s
t
ob
s
e
r
v
a
n
c
e
of
th
e
co
n
d
i
t
i
o
n
s
.
Up
o
n
ti
m
e
l
y
no
t
i
c
e
in
wr
i
t
i
n
g
by
th
e
Ob
s
e
r
v
i
n
g
Pa
r
t
y
to
th
e
ot
h
e
r
pa
r
t
y
,
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
wi
l
l
at
t
e
m
p
t
to
va
l
u
e
en
g
i
n
e
e
r
th
e
Pr
o
j
e
c
t
to
st
a
y
wi
t
h
i
n
th
e
NT
E
an
d
to
ad
d
r
e
s
s
th
e
co
n
c
e
a
l
e
d
co
n
d
i
t
i
o
n
s
;
th
e
ac
t
i
o
n
s
to
be
ta
k
e
n
;
an
d
th
e
re
s
p
o
n
s
i
b
i
l
i
t
y
fo
r
co
s
t
s
of
su
c
h
ac
t
i
o
n
s
,
wh
i
c
h
mu
s
t
be
mu
t
u
a
l
l
y
ag
r
e
e
d
to
by
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
.
Al
t
e
r
n
a
t
i
v
e
l
y
,
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
ma
y
ag
r
e
e
to
mo
d
i
f
y
th
e
Ag
r
e
e
m
e
n
t
in
wr
i
t
i
n
g
to
in
c
r
e
a
s
e
th
e
NT
E
or
ot
h
e
r
ag
r
e
e
d
—
up
o
n
am
e
n
d
m
e
n
t
.
If
Co
n
t
r
a
c
t
o
r
is
th
e
Ob
s
e
r
v
i
n
g
Pa
r
t
y
,
an
d
fa
i
l
s
to
gi
v
e
no
t
i
c
e
to
th
e
Ci
t
y
wi
t
h
i
n
th
e
se
v
e
n
-
d
a
y
ti
m
e
pe
r
i
o
d
,
th
e
Ci
t
y
re
s
e
r
v
e
s
th
e
ri
g
h
t
to
de
m
a
n
d
an
d
re
c
e
i
v
e
se
r
v
i
c
e
s
fr
o
m
Co
n
t
r
a
c
t
o
r
to
ad
d
r
e
s
s
an
d
co
r
r
e
c
t
su
c
h
co
n
c
e
a
l
e
d
co
n
d
i
t
i
o
n
s
wi
t
h
o
u
t
ad
d
i
t
i
o
n
a
l
co
s
t
to
th
e
Ci
t
y
.
Co
n
t
r
a
c
t
o
r
’
s
Wa
r
r
a
n
t
y
.
Co
n
t
r
a
c
t
o
r
’
s
wa
r
r
a
n
t
y
is
as
se
t
fo
r
t
h
in
Ex
h
i
b
i
t
A.
Th
e
te
r
m
s
of
th
i
s
Se
c
t
i
o
n
15
,
an
d
th
e
te
r
m
s
of
th
e
Co
n
t
r
a
c
t
o
r
’
s
wa
r
r
a
n
t
y
,
wi
l
l
su
r
v
i
v
e
th
e
te
r
m
i
n
a
t
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
.
16
.
Li
e
n
s
.
Co
n
t
r
a
c
t
o
r
wi
l
l
no
t
su
f
f
e
r
or
pe
r
m
i
t
to
be
en
f
o
r
c
e
d
ag
a
i
n
s
t
th
e
Bu
i
l
d
i
n
g
or
Ci
t
y
-
o
w
n
e
d
l7
.
pr
o
p
e
r
t
y
an
y
me
c
h
a
n
i
c
’
s
,
ma
t
e
r
i
a
l
m
e
n
’
s
,
co
n
t
r
a
c
t
o
r
’
s
or
su
b
c
o
n
t
r
a
c
t
o
r
’
s
li
e
n
s
or
an
y
cl
a
i
m
s
fo
r
da
m
a
g
e
s
ar
i
s
i
n
g
fr
o
m
Co
n
t
r
a
c
t
o
r
’
s
wo
r
k
pe
r
f
o
r
m
e
d
un
d
e
r
th
i
s
Ag
r
e
e
m
e
n
t
.
If
an
y
me
c
h
a
n
i
c
’
s
li
e
n
is
?l
e
d
ag
a
i
n
s
t
th
e
Bu
i
l
d
i
n
g
or
Ci
t
y
-
o
w
n
e
d
pr
o
p
e
r
t
y
as
a
re
s
u
l
t
of
wo
r
k
an
d
/
o
r
se
r
v
i
c
e
s
pe
r
f
o
r
m
e
d
by
or
on
be
h
a
l
f
of
,
an
d
/
o
r
as
a
re
s
u
l
t
of
ma
t
e
r
i
a
l
s
fu
r
n
i
s
h
e
d
fo
r
th
e
us
e
of
,
Co
n
t
r
a
c
t
o
r
,
th
e
n
Co
n
t
r
a
c
t
o
r
ag
r
e
e
s
to
ca
u
s
e
su
c
h
li
e
n
to
be
di
s
c
h
a
r
g
e
d
pr
i
o
r
to
en
t
r
y
of
fi
n
a
l
ju
d
g
m
e
n
t
(a
f
t
e
r
al
l
ap
p
e
a
l
s
)
fo
r
th
e
fo
r
e
c
l
o
s
u
r
e
of
su
c
h
li
e
n
an
d
fu
i
t
h
e
r
ag
r
e
e
s
to
in
d
e
m
n
i
f
y
,
de
f
e
n
d
,
an
d
ho
l
d
ha
r
m
l
e
s
s
th
e
Ci
t
y
an
d
th
e
Bu
i
l
d
i
n
g
or
Ci
t
y
-
o
w
n
e
d
pr
o
p
e
r
t
y
ag
a
i
n
s
t
li
a
b
i
l
i
t
i
e
s
,
lo
s
s
e
s
,
da
m
a
g
e
s
,
co
s
t
s
or
ex
p
e
n
s
e
s
(i
n
c
l
u
d
i
n
g
re
a
s
o
n
a
b
l
e
at
t
o
r
n
e
y
s
’
fe
e
s
an
d
co
s
t
s
of
su
i
t
)
on
ac
c
o
u
n
t
of
su
c
h
cl
a
i
m
of
li
e
n
.
Up
o
n
re
q
u
e
s
t
of
th
e
Ci
t
y
,
Co
n
t
r
a
c
t
o
r
ag
r
e
e
s
to
pr
o
m
p
t
l
y
ca
u
s
e
su
c
h
li
e
n
to
be
re
l
e
a
s
e
d
an
d
di
s
c
h
a
r
g
e
d
of
re
c
o
r
d
,
ei
t
h
e
r
by
pa
y
i
n
g
th
e
in
d
e
b
t
e
d
n
e
s
s
th
a
t
ga
v
e
ri
s
e
to
su
c
h
li
e
n
,
or
by
po
s
t
i
n
g
a
bo
n
d
or
ot
h
e
r
se
c
u
r
i
t
y
as
wi
l
l
be
re
q
u
i
r
e
d
by
la
w
to
ob
t
a
i
n
su
c
h
re
l
e
a
s
e
an
d
di
s
c
h
a
r
g
e
.
Th
e
fo
r
e
g
o
i
n
g
wi
l
l
no
t
be
de
e
m
e
d
to
pr
e
v
e
n
t
Co
n
t
r
a
c
t
o
r
fr
o
m
co
n
t
e
s
t
i
n
g
th
e
va
l
i
d
i
t
y
of
an
y
li
e
n
in
an
y
ma
n
n
e
r
Co
n
t
r
a
c
t
o
r
ch
o
o
s
e
s
so
lo
n
g
as
su
c
h
co
n
t
e
s
t
is
am
o
u
n
t
,
to
g
e
t
h
e
r
wi
t
h
an
y
in
t
e
r
e
s
t
,
pe
n
a
l
t
i
e
s
,
co
s
t
s
,
or
ot
h
e
r
ch
a
r
g
e
s
ne
c
e
s
s
a
r
y
to
re
l
e
a
s
e
su
c
h
li
e
n
.
No
t
i
c
e
s
.
An
y
no
t
i
c
e
re
q
u
i
r
e
d
by
th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
be
in
wr
i
t
i
n
g
(u
n
l
e
s
s
ot
h
e
r
w
i
s
e
sp
e
c
i
f
i
e
d
in
th
i
s
Ag
r
e
e
m
e
n
t
)
,
de
l
i
v
e
r
e
d
to
th
e
pe
r
s
o
n
be
l
o
w
at
th
e
in
d
i
c
a
t
e
d
ad
d
r
e
s
s
,
un
l
e
s
s
ot
h
e
r
w
i
s
e
23
9
0
6
7
V
3
Page 57 of 356
de
s
i
g
n
a
t
e
d
in
wr
i
t
i
n
g
.
On
l
y
ma
i
l
i
n
g
by
ce
r
t
i
?
e
d
Un
i
t
e
d
St
a
t
e
s
Ma
i
l
,
re
t
u
r
n
-
r
e
c
e
i
p
t
re
q
u
e
s
t
e
d
;
ov
e
r
n
i
g
h
t
co
u
r
i
e
r
(e
.
g
.
,
UP
S
,
Fe
d
E
x
)
;
pe
r
s
o
n
a
l
de
l
i
v
e
r
y
;
or
ot
h
e
r
re
a
s
o
n
a
b
l
e
me
t
h
o
d
ma
y
be
us
e
d
.
No
t
i
c
e
s
ar
e
de
e
m
e
d
de
l
i
v
e
r
e
d
wh
e
n
ac
t
u
a
l
l
y
re
c
e
i
v
e
d
(p
r
i
m
a
fa
c
i
e
ev
i
d
e
n
c
e
of
re
c
e
i
p
t
wi
l
l
be
an
y
ty
p
e
of
de
l
i
v
e
r
y
re
c
e
i
p
t
pr
o
v
i
d
e
d
by
th
e
af
o
r
e
m
e
n
t
i
o
n
e
d
me
a
n
s
of
de
l
i
v
e
r
y
)
.
Al
l
no
t
i
c
e
s
wi
l
l
be
se
n
t
to
:
If
to
th
e
Ci
t
y
:
Ci
t
y
of
F
ar
m
i
n
g
t
o
n
43
0
Th
i
r
d
St
r
e
e
t
Fa
r
m
i
n
g
t
o
n
,
MN
55
0
2
4
AT
T
N
:
Ke
l
l
e
e
Om
l
i
d
,
Pa
r
k
s
an
d
Re
c
r
e
a
t
i
o
n
Di
r
e
c
t
o
r
If
to
Co
n
t
r
a
c
t
o
r
:
CM
Co
n
s
t
r
u
c
t
i
o
n
Co
m
p
a
n
y
,
In
c
.
12
2
1
5
Ni
c
o
l
l
e
t
Av
e
n
u
e
So
u
t
h
Bu
r
n
s
v
i
l
l
e
,
MN
55
3
3
7
AT
T
N
:
Ma
r
y
Pe
t
e
r
s
o
n
,
Pr
e
s
i
d
e
n
t
18
.
Mi
s
c
e
l
l
a
n
e
o
u
s
.
A.
23
9
0
6
7
V
3
En
t
i
r
e
Ag
r
e
e
m
e
n
t
.
Th
i
s
Ag
r
e
e
m
e
n
t
co
n
s
t
i
t
u
t
e
s
th
e
en
t
i
r
e
ag
r
e
e
m
e
n
t
be
t
w
e
e
n
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
re
g
a
r
d
i
n
g
th
e
su
b
j
e
c
t
ma
t
t
e
r
in
th
i
s
Ag
r
e
e
m
e
n
t
.
No
su
p
p
l
e
m
e
n
t
s
,
mo
d
i
f
i
c
a
t
i
o
n
s
,
or
am
e
n
d
m
e
n
t
s
of
th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
be
bi
n
d
i
n
g
un
l
e
s
s
in
wr
i
t
i
n
g
,
ex
e
c
u
t
e
d
by
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
.
.
As
s
i
g
n
m
e
n
t
.
Ne
i
t
h
e
r
th
e
Ci
t
y
no
r
Co
n
t
r
a
c
t
o
r
ma
y
as
s
i
g
n
,
su
b
l
e
t
,
or
tr
a
n
s
f
e
r
an
y
in
t
e
r
e
s
t
,
or
ob
l
i
g
a
t
i
o
n
in
th
i
s
Ag
r
e
e
m
e
n
t
wi
t
h
o
u
t
th
e
pr
i
o
r
wr
i
t
t
e
n
co
n
s
e
n
t
of
th
e
ot
h
e
r
pa
r
t
y
,
an
d
th
e
n
on
l
y
up
o
n
su
c
h
te
r
m
s
an
d
co
n
d
i
t
i
o
n
s
as
bo
t
h
pa
r
t
i
e
s
ma
y
ag
r
e
e
to
an
d
se
t
fo
r
t
h
in
wr
i
t
i
n
g
.
.
Se
v
e
r
a
b
i
l
i
t
y
.
If
an
y
pr
o
v
i
s
i
o
n
or
te
r
m
of
th
i
s
Ag
r
e
e
m
e
n
t
fo
r
an
y
re
a
s
o
n
is
de
c
l
a
r
e
d
in
v
a
l
i
d
,
il
l
e
g
a
l
or
un
e
n
f
o
r
c
e
a
b
l
e
,
su
c
h
de
c
i
s
i
o
n
wi
l
l
no
t
af
f
e
c
t
th
e
va
l
i
d
i
t
y
of
an
y
re
m
a
i
n
i
n
g
pr
o
v
i
s
i
o
n
s
,
pr
o
v
i
d
e
d
th
a
t
:
(i
)
ea
c
h
pa
r
t
y
re
c
e
i
v
e
s
th
e
su
b
s
t
a
n
t
i
a
l
be
n
e
?
t
of
it
s
ba
r
g
a
i
n
wi
t
h
re
s
p
e
c
t
to
th
e
tr
a
n
s
a
c
t
i
o
n
co
m
p
l
e
t
e
d
he
r
e
b
y
;
an
d
(i
i
)
th
e
in
e
f
f
e
c
t
i
v
e
n
e
s
s
of
su
c
h
pr
o
v
i
s
i
o
n
wo
u
l
d
no
t
re
s
u
l
t
in
su
c
h
a
ma
t
e
r
i
a
l
ch
a
n
g
e
as
to
ca
u
s
e
co
m
p
l
e
t
i
o
n
of
th
e
ob
l
i
g
a
t
i
o
n
s
co
n
t
e
m
p
l
a
t
e
d
by
th
i
s
Ag
r
e
e
m
e
n
t
to
be
un
r
e
a
s
o
n
a
b
l
e
fo
r
ei
t
h
e
r
pa
r
t
y
.
Th
e
re
m
a
i
n
i
n
g
pr
o
v
i
s
i
o
n
s
wi
l
l
re
m
a
i
n
in
fu
l
l
fo
r
c
e
an
d
ef
f
e
c
t
as
if
th
i
s
Ag
r
e
e
m
e
n
t
ha
d
be
e
n
ex
e
c
u
t
e
d
wi
t
h
th
e
in
v
a
l
i
d
po
r
t
i
o
n
of
th
e
Ag
r
e
e
m
e
n
t
el
i
m
i
n
a
t
e
d
.
Th
e
pa
r
t
i
e
s
de
c
l
a
r
e
th
e
i
r
re
s
p
e
c
t
i
v
e
in
t
e
n
t
i
o
n
th
a
t
th
e
y
wo
u
l
d
ha
v
e
ex
e
c
u
t
e
d
th
e
re
m
a
i
n
i
n
g
po
r
t
i
o
n
s
of
th
i
s
Ag
r
e
e
m
e
n
t
wi
t
h
o
u
t
in
c
l
u
d
i
n
g
an
y
su
c
h
pa
r
t
or
po
r
t
i
o
n
wh
i
c
h
ma
y
be
de
c
l
a
r
e
d
in
v
a
l
i
d
af
t
e
r
ex
e
c
u
t
i
o
n
.
or
co
n
s
t
r
u
e
d
to
cr
e
a
t
e
a
pa
r
t
n
e
r
s
h
i
p
,
jo
i
n
t
ve
n
t
u
r
e
,
jo
i
n
t
en
t
e
r
p
r
i
s
e
,
or
ot
h
e
r
fi
d
u
c
i
a
r
y
re
l
a
t
i
o
n
s
h
i
p
be
t
w
e
e
n
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
as
re
l
a
t
e
d
to
th
e
Bu
i
l
d
i
n
g
or
th
e
Pr
o
j
e
c
t
.
Ne
i
t
h
e
r
pa
r
t
y
is
au
t
h
o
r
i
z
e
d
to
ac
t
as
an
ag
e
n
t
or
on
be
h
a
l
f
of
th
e
ot
h
e
r
pa
r
t
y
.
Co
n
t
r
a
c
t
o
r
is
an
d
wi
l
l
re
m
a
i
n
an
in
d
e
p
e
n
d
e
n
t
co
n
t
r
a
c
t
o
r
th
r
o
u
g
h
o
u
t
th
e
te
r
m
of
th
i
s
Ag
r
e
e
m
e
n
t
.
Page 58 of 356
E.
G.
23
90
6
7
V
3
Di
s
p
u
t
e
Re
s
o
l
u
t
i
o
n
.
Fo
r
a
di
s
p
u
t
e
th
a
t
ar
i
s
e
s
ou
t
of
th
e
te
r
m
s
of
th
i
s
Ag
r
e
e
m
e
n
t
,
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
ma
y
ch
o
o
s
e
to
re
s
o
l
v
e
th
a
t
di
s
p
u
t
e
th
r
o
u
g
h
mu
t
u
a
l
l
y
ag
r
e
e
d
-
u
p
o
n
al
t
e
r
n
a
t
i
v
e
di
s
p
u
t
e
re
s
o
l
u
t
i
o
n
,
bu
t
no
t
h
i
n
g
in
th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
pr
e
c
l
u
d
e
ei
t
h
e
r
pa
r
t
y
fr
o
m
ex
e
r
c
i
s
i
n
g
th
a
t
pa
r
t
y
’
s
le
g
a
l
or
eq
u
i
t
a
b
l
e
ri
g
h
t
s
.
Go
v
e
r
n
i
n
g
La
w
an
d
Ve
n
u
e
.
Th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
ag
r
e
e
th
a
t
th
e
la
w
s
of
th
e
St
a
t
e
of
Mi
n
n
e
s
o
t
a
wi
l
l
go
v
e
r
n
al
l
qu
e
s
t
i
o
n
s
an
d
in
t
e
r
p
r
e
t
a
t
i
o
n
s
co
n
c
e
r
n
i
n
g
th
e
va
l
i
d
i
t
y
an
d
co
n
s
t
r
u
c
t
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
,
an
d
th
e
le
g
a
l
re
l
a
t
i
o
n
s
be
t
w
e
e
n
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
,
an
d
pe
r
f
o
r
m
a
n
c
e
un
d
e
r
it
,
wi
t
h
o
u
t
re
g
a
r
d
to
th
e
pr
i
n
c
i
p
l
e
s
of
co
n
?
i
c
t
s
of
la
w
.
Th
e
la
n
g
u
a
g
e
of
th
i
s
Ag
r
e
e
m
e
n
t
is
an
d
wi
l
l
be
de
e
m
e
d
th
e
re
s
u
l
t
of
ne
g
o
t
i
a
t
i
o
n
am
o
n
g
th
e
pa
r
t
i
e
s
an
d
th
e
i
r
re
s
p
e
c
t
i
v
e
le
g
a
l
co
u
n
s
e
l
an
d
wi
l
l
no
t
be
st
r
i
c
t
l
y
co
n
s
t
r
u
e
d
fo
r
or
ag
a
i
n
s
t
an
y
pa
r
t
y
.
Th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
ag
r
e
e
th
a
t
an
y
ac
t
i
o
n
ar
i
s
i
n
g
ou
t
of
or
in
co
n
n
e
c
t
i
o
n
wi
t
h
th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
be
br
o
u
g
h
t
so
l
e
l
y
in
th
e
co
u
r
t
s
of
th
e
St
a
t
e
of
Mi
n
n
e
s
o
t
a
,
Fi
r
s
t
Ju
d
i
c
i
a
l
Di
s
t
r
i
c
t
,
or
th
e
Un
i
t
e
d
St
a
t
e
s
Di
s
t
r
i
c
t
Co
u
r
t
fo
r
th
e
Di
s
t
r
i
c
t
of
Mi
n
n
e
s
o
t
a
.
N0
Wa
i
v
e
r
.
No
wa
i
v
e
r
by
th
e
Ci
t
y
or
Co
n
t
r
a
c
t
o
r
of
an
y
of
th
e
pr
o
v
i
s
i
o
n
s
of
th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
be
de
e
m
e
d
a
wa
i
v
e
r
of
an
y
ot
h
e
r
pr
o
v
i
s
i
o
n
s
,
wh
e
t
h
e
r
or
no
t
si
m
i
l
a
r
,
no
r
wi
l
l
an
y
wa
i
v
e
r
by
th
e
Ci
t
y
or
Co
n
t
r
a
c
t
o
r
be
a
co
n
t
i
n
u
i
n
g
wa
i
v
e
r
.
N0
wa
i
v
e
r
by
th
e
Ci
t
y
or
Co
n
t
r
a
c
t
o
r
wi
l
l
be
bi
n
d
i
n
g
un
l
e
s
s
ex
e
c
u
t
e
d
in
wr
i
t
i
n
g
by
th
e
Ci
t
y
or
Co
n
t
r
a
c
t
o
r
,
re
s
p
e
c
t
i
v
e
l
y
.
Fo
r
c
e
Ma
j
e
u
r
e
.
Ne
i
t
h
e
r
pa
r
t
y
wi
l
l
be
li
a
b
l
e
fo
r
an
y
lo
s
s
or
da
m
a
g
e
in
c
u
r
r
e
d
by
th
e
ot
h
e
r
pa
r
t
y
as
a
re
s
u
l
t
of
ev
e
n
t
s
ou
t
s
i
d
e
th
e
co
n
t
r
o
l
of
th
e
pa
r
t
y
in
c
l
u
d
i
n
g
,
bu
t
no
t
li
m
i
t
e
d
to
:
wa
r
,
st
o
r
m
s
,
?o
o
d
i
n
g
,
?r
e
s
,
st
r
i
k
e
s
,
le
g
a
l
ac
t
s
of
pu
b
l
i
c
au
t
h
o
r
i
t
i
e
s
,
or
ac
t
s
of
go
v
e
r
n
m
e
n
t
in
ti
m
e
of
wa
r
or
na
t
i
o
n
a
l
em
e
r
g
e
n
c
y
.
Si
g
n
a
t
u
r
e
s
/
E
x
e
c
u
t
i
o
n
.
Ea
c
h
pe
r
s
o
n
ex
e
c
u
t
i
n
g
th
i
s
Ag
r
e
e
m
e
n
t
on
be
h
a
l
f
of
a
pa
i
t
y
to
th
e
Ag
r
e
e
m
e
n
t
re
p
r
e
s
e
n
t
s
an
d
wa
r
r
a
n
t
s
th
a
t
su
c
h
pe
r
s
o
n
is
du
l
y
an
d
va
l
i
d
l
y
au
t
h
o
r
i
z
e
d
to
do
so
on
be
h
a
l
f
of
su
c
h
pa
r
t
y
,
wi
t
h
fu
l
l
ri
g
h
t
an
d
au
t
h
o
r
i
t
y
to
ex
e
c
u
t
e
th
i
s
Ag
r
e
e
m
e
n
t
an
d
to
bi
n
d
su
c
h
pa
r
t
y
wi
t
h
re
s
p
e
c
t
to
al
l
of
it
s
ob
l
i
g
a
t
i
o
n
s
in
c
l
u
d
e
d
in
th
i
s
Ag
r
e
e
m
e
n
t
.
Th
i
s
Ag
r
e
e
m
e
n
t
ma
y
be
ex
e
c
u
t
e
d
in
co
u
n
t
e
r
p
a
r
t
s
,
ea
c
h
of
wh
i
c
h
wi
l
l
be
de
e
m
e
d
an
or
i
g
i
n
a
l
,
bu
t
al
l
of
wh
i
c
h
ta
k
e
n
to
g
e
t
h
e
r
wi
l
l
co
n
s
t
i
t
u
t
e
bu
t
on
e
an
d
th
e
sa
m
e
in
s
t
r
u
m
e
n
t
.
Th
e
pa
r
t
i
e
s
ag
r
e
e
th
a
t
th
e
el
e
c
t
r
o
n
i
c
si
g
n
a
t
u
r
e
of
a
pa
r
t
y
to
th
i
s
Ag
r
e
e
m
e
n
t
wi
l
l
be
as
va
l
i
d
as
an
or
i
g
i
n
a
l
si
g
n
a
t
u
r
e
of
su
c
h
pa
r
t
y
an
d
wi
l
l
be
ef
f
e
c
t
i
v
e
to
bi
n
d
su
c
h
pa
r
t
y
to
th
i
s
Ag
r
e
e
m
e
n
t
.
He
a
d
i
n
g
s
.
Th
e
se
c
t
i
o
n
he
a
d
i
n
g
s
of
th
i
s
Ag
r
e
e
m
e
n
t
ar
e
fo
r
re
f
e
r
e
n
c
e
pu
r
p
o
s
e
s
on
l
y
an
d
wi
l
l
no
t
ot
h
e
r
w
i
s
e
af
f
e
c
t
th
e
me
a
n
i
n
g
,
co
n
s
t
r
u
c
t
i
o
n
,
or
in
t
e
r
p
r
e
t
a
t
i
o
n
of
an
y
pr
o
v
i
s
i
o
n
of
th
i
s
Ag
r
e
e
m
e
n
t
.
Ag
r
e
e
m
e
n
t
,
an
d
th
e
Ex
h
i
b
i
t
th
a
t
is
at
t
a
c
h
e
d
to
th
i
s
Ag
r
e
e
m
e
n
t
,
ar
e
ea
c
h
tr
u
e
an
d
co
r
r
e
c
t
an
d
,
by
th
i
s
re
f
e
r
e
n
c
e
,
ar
e
in
c
o
r
p
o
r
a
t
e
d
in
t
o
an
d
ma
d
e
a
pa
r
t
of
th
i
s
Ag
r
e
e
m
e
n
t
.
[S
i
g
n
a
t
u
r
e
pa
g
e
fo
l
l
o
w
s
]
Page 59 of 356
23
90
6
7
v
3
10
Page 60 of 356
SI
G
N
A
T
U
R
E
PA
G
E
FO
R
AG
R
E
E
M
E
N
T
FO
R
CO
N
S
T
R
U
C
T
I
O
N
SE
R
V
I
C
E
S
CI
T
Y
OF
FA
R
M
I
N
G
T
O
N
F
AR
M
I
N
G
T
O
N
CI
T
Y
HA
L
L
SE
C
O
N
D
FL
O
O
R
PR
O
J
E
C
T
IN
WI
T
N
E
S
S
WH
E
R
E
O
F
,
th
e
Ci
t
y
an
d
Co
n
t
r
a
c
t
o
r
ha
v
e
ex
e
c
u
t
e
d
th
i
s
Ag
r
e
e
m
e
n
t
th
r
o
u
g
h
th
e
i
r
du
l
y
au
t
h
o
r
i
z
e
d
of
?
c
e
r
s
an
d
re
p
r
e
s
e
n
t
a
t
i
v
e
s
to
be
ef
f
e
c
t
i
v
e
as
of
th
e
Ef
f
e
c
t
i
v
e
Da
t
e
?r
s
t
wr
i
t
t
e
n
ab
o
v
e
.
Da
t
e
d
:
,
20
2
6
Da
t
e
d
:
7/
,
20
2
6
23
9
0
6
7
v
3
CI
T
Y
OF
FA
R
M
I
N
G
T
O
N
By
:
Ni
c
h
o
l
a
s
Li
e
n
,
Ma
y
o
r
By
:
Me
l
i
s
s
a
Ge
i
s
,
Ci
t
y
Cl
e
r
k
CO
N
T
R
A
C
T
O
R
:
CM
CO
N
S
T
R
U
C
T
I
O
N
CO
M
P
A
N
Y
,
IN
C
.
-
I
'/
//
/
'
W4
5
1'
“I
L
ri
n
t
e
d
na
m
e
"Q
M
/Z
Z:
[p
r
i
n
t
e
d
ti
t
l
e
l
11
Page 61 of 356
AG
R
E
E
M
E
N
T
FO
R
DE
S
I
G
N
AN
D
CO
N
S
T
R
U
C
T
I
O
N
SE
R
V
I
C
E
S
CI
T
Y
OF
F
AR
M
I
N
G
T
O
N
FA
R
M
I
N
G
T
O
N
CI
T
Y
HA
L
L
SE
C
O
N
D
FL
O
O
R
PR
O
J
E
C
T
Ex
h
i
b
i
t
A
Co
n
t
r
a
c
t
o
r
’S
Wa
r
r
a
n
t
y
12
23
90
6
7
v
3
Page 62 of 356
CO
N
S
T
R
U
C
T
I
O
N
CO
M
P
A
N
Y
12
2
1
5
NI
C
O
L
L
E
T
AV
E
N
U
E
SO
U
T
H
,
BU
R
N
S
V
I
L
L
E
,
MN
55
3
3
7
n
(9
5
2
)
89
5
8
2
2
3
0
FA
X
(9
5
2
)
89
5
-
8
1
8
3
-
EM
A
I
L
:
cm
c
o
n
s
t
@
c
m
c
o
n
s
t
r
u
c
?
o
n
c
o
.
c
o
m
Ju
l
y
1,
20
2
6
Ci
t
y
of
Fa
r
m
i
n
g
t
o
n
43
0
3r
d
St
r
e
e
t
Fa
r
m
i
n
g
t
o
n
,
MN
55
0
2
4
At
t
n
:
Ke
l
l
e
e
Om
l
i
d
—
Pa
r
k
s
&
Re
c
r
e
a
t
i
o
n
Di
r
e
c
t
o
r
Re
:
Fa
r
m
i
n
g
t
o
n
Ci
t
y
Ha
l
l
~
Se
c
o
n
d
Fl
o
o
r
Pr
o
j
e
c
t
Ar
c
h
i
t
e
c
t
Pr
o
j
e
c
t
#2
5
0
3
0
3
WA
R
R
A
N
T
Y
CM
Co
n
s
t
r
u
c
t
i
o
n
Co
m
p
a
n
y
,
In
c
.
,
fo
r
go
o
d
an
d
va
l
u
a
b
l
e
co
n
s
i
d
e
r
a
t
i
o
n
an
d
in
ac
c
o
r
d
wi
t
h
th
e
co
n
t
r
a
c
t
da
t
e
d
Ju
l
y
7,
20
2
6
,
ex
p
r
e
s
s
l
y
wa
r
r
a
n
t
s
an
d
gu
a
r
a
n
t
e
e
s
to
th
e
ow
n
e
r
th
a
t
al
l
wo
r
k
pe
r
f
o
r
m
e
d
an
d
al
l
ma
t
e
r
i
a
l
s
fu
r
n
i
s
h
e
d
un
d
e
r
th
e
ab
o
v
e
co
n
t
r
a
c
t
,
sh
a
l
l
be
fr
e
e
fr
o
m
de
f
e
c
t
s
in
ma
t
e
r
i
a
l
s
an
d
wo
r
k
m
a
n
s
h
i
p
wh
i
c
h
ap
p
e
a
r
wi
t
h
i
n
a
pe
r
i
o
d
of
on
e
(1
)
ye
a
r
fr
o
m
th
e
da
t
e
of
su
b
s
t
a
n
t
i
a
l
co
m
p
l
e
t
i
o
n
,
Oc
t
o
b
e
r
31
,
20
2
6
.
Th
i
s
wa
r
r
a
n
t
y
wi
l
l
ex
p
i
r
e
on
Oc
t
o
b
e
r
31
,
20
2
7
,
on
e
(1
)
ye
a
r
fr
o
m
co
m
m
e
n
c
e
da
t
e
.
Si
n
c
e
r
e
l
y
,
»
Ch
a
r
l
e
s
M.
Pe
t
e
r
s
o
n
CM
Co
n
s
t
r
u
c
t
i
o
n
Co
m
p
a
n
y
,
In
c
.
Page 63 of 356
Page 64 of 356
Page 65 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kellee Omlid, Parks & Recreation Director
Department: Parks & Recreation
Subject: Donation from Happy Harry’s Furniture to the Rambling River Center
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
A donation was recently made to the Rambling River Center (RRC) by Happy Harry’s
Furniture.
DISCUSSION:
A donation in the amount of $99.90 was recently made by Happy Harry’s Furniture to the
RRC. The donation was made through a program created in 2011 in which a customer of
Happy Harry’s Furniture can select a charity of their choice to receive a donation when
merchandise is purchased from the store. Then 10% from the sale to the customer is
donated to the charity. The RRC is one of the charities that can be selected by customers.
With these donations, Happy Harry’s Furniture has donated a total of $19,140.49 to the RRC
since the program’s inception. This partnership with Happy Harry’s Furniture has been very
beneficial over the long term given the funds that have been donated to the RRC.
The donation has been deposited into the RRC Capital Improvement Fund to fund future
building improvements and/or purchase new equipment and furniture.
Staff will communicate the City’s appreciation on behalf of the City Council to Happy
Harry’s Furniture for their generous donation to the RRC.
ACTION REQUESTED:
Adopt Resolution 2026-060 Accepting a Donation of $99.90 from Happy Harry’s Furniture to
the Rambling River Center.
ATTACHMENTS:
2026-060 Accepting $99.90 from Happy Harry's Furniture
Page 66 of 356
CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2026-060
A RESOLUTION ACCEPTING
A DONATION OF $99.90 FROM HAPPY HARRY’S FURNITURE
TO THE RAMBLING RIVER CENTER
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:
Happy Harry’s Furniture has donated $99.90 to the Rambling River Center
; and
WHEREAS, it is in the best interest of the City to accept this donation.
NOW, THEREFORE, BE IT RESOLVED that Mayor Lien and the Farmington City
Council hereby accept with gratitude the generous donation of $99.90 from Happy Harry’s
Furniture to the Rambling River Center.
Adopted by the City Council of the City of Farmington, Minnesota, this 6th day of July 2026.
ATTEST:
____________________________ ______________________________
Nicholas Lien, Mayor Melissa Geis, City Clerk
Page 67 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kellee Omlid, Parks & Recreation Director
Department: Parks & Recreation
Subject: Plans and Specifications and Authorize the Advertisement for Bids for the
Jim Bell Park and Preserve Trail Project
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
At the March 2, 2026, City Council meeting, the Council approved a Professional Services
Agreement with Bolton & Menk to provide design and construction services for the Jim Bell
Park and Preserve Trail Project. The scope of work included geotechnical exploration,
evaluation of the CSAH 64 (195th Street) crossing, preparation of construction plans and
specifications, bidding assistance, and construction administration services.
Staff from Dakota County Parks and Dakota County Traffic were involved throughout the
design process. Dakota County Parks identified the primary trail through Jim Bell Park and
Preserve as the interim alignment for the North Creek Greenway.
pedestrian safe a for alternatives in collaborated Traffic County Dakota evaluating
crossing of 195th Street, a Dakota County roadway. Bolton & Menk used Dakota County’s
Pedestrian Crossing Safety Assessment to identify and recommend appropriate design
parameters for the pedestrian crossing treatment at the study location of 195th Street.
The Plans and Specifications have been completed; thus, it is time to authorize the
Advertisement for Bids.
DISCUSSION:
The project includes reclamation of the main trail just south of 189th Street through the Jim
Bell Park and Preserve to 195th Street. This trail will also be widened to 10 feet to meet
Dakota County Greenway standards. In addition, the local trail connections from the park
to Dunbury Avenue and 190th Street will be reclaimed. These City trail connections will
remain 8-foot wide. A project location map is attached.
A root barrier will be installed along the pond side of the trail in areas where existing willow
roots have damaged the pavement. The installation process is extensive and includes the
complete removal and replacement of all root-contaminated base material beneath the
affected trail sections. The specified root barrier are engineered panels designed to
Page 68 of 356
redirect tree roots downward, protecting adjacent sidewalks, curbs, paving, and
structures. This root barrier system has been successfully used throughout the Three Rivers
Park District trail system.
Based on the results of Dakota County’s Pedestrian Crossing Safety Assessment, a mid-
block pedestrian crossing with Rectangular Rapid Flashing Beacon (“RRFB”) traffic control
devices reviewed, was treatment crossing recommended. The were recommended
approved, and signed off on by Dakota County Traffic staff.
The proposed crossing will be located east of the intersection of 195th Street and Embers
Avenue. It will connect to the existing trail on the south side of 195th Street and the future
final segment of the North Creek Greenway between Mystic Meadows and Riverview
Elementary School.
pedestrian three and island raised refuge include will a improvements crossing The
pedestrian activated crosswalk flasher systems. In addition, Dakota County has identified a
mill and overlay project for 195th Street in its 2027 Capital Improvement Program (CIP), so
timing of the two projects will align well.
With design completed, the next step in the process is to approve Plans and Specifications
and Authorize the Advertisement for Bids. The City is required to advertise for bids and
receive sealed bids as the project will exceed $175,000.
The project schedule is as follows:
July 6, 2026 Approve Plans and Specifications and Authorize the
Advertisement for Bids
July 8 - 29, 2026 Bidding
July 10 & 17, 2026 Advertisement for Bids
July 29, 2026 Bid Opening
August 17, 2026 Accept Bids and Award Contract
June 18, 2027 Project Completion
Contractors will have the option of completing the project either during the current
construction season or in the spring of next year. If a contractor elects to begin
construction this fall, the project must be completed this year. City staff, Dakota County
staff, and the project consultant agreed that providing this flexibility will expand the pool of
potential bidders by accommodating contractors with available capacity either this year
or next spring, while avoiding the cost premium that could result from requiring completion
during the current construction season.
BUDGET IMPACT:
The Engineer's estimated construction cost, including contingency, is $735,900. The total
estimated project cost is $816,639, which includes $30,000 for the RRFB system to be
furnished by Dakota County and $50,739 for design and construction administration.
Page 69 of 356
Dakota County will fund 85% of the North Creek Greenway trail construction costs, with the
City responsible for the remaining 15%. Costs associated with the local trail connections to
the Greenway will be shared equally, with Dakota County and the City each paying 50%.
Dakota County will also fund 100% of the RRFB traffic control system. A Joint Powers
Agreement outlining these cost-sharing arrangements will be presented to the City Council
for approval at a future meeting.
Funding for the City's share of the project will come from the Trail Maintenance Fund. The
2026 adopted budget includes $350,000 for trail maintenance and specifically identified
this project for funding.
ACTION REQUESTED:
Approve Plans and Specifications and Authorize the Advertisements for Bids for the Jim Bell
Park and Preserve Trail Project.
ATTACHMENTS:
Jim Bell Park and Preserve Trail Reclamation
Page 70 of 356
G0.01
TITLE SHEET
SHEET
B
o
l
t
o
n
&
M
e
n
k
,
I
n
c
.
20
2
6
,
A
l
l
R
i
g
h
t
s
R
e
s
e
r
v
e
d
c h:
\
f
a
r
m
i
n
g
t
_
c
i
_
m
n
\
2
5
x
1
4
1
4
5
6
0
0
0
\
C
A
D
\
C
3
D
\
2
5
X
1
4
1
4
5
6
_
G
0
0
1
.
d
w
g
6/
9
/
2
0
2
6
5
:
1
7
:
5
6
P
M
P
l
o
t
t
e
d
b
y
:
Br
i
a
n
P
e
t
e
r
s
DESIGNED
DRAWN
CHECKED
CLIENT PROJ. NO.
ISSUED FOR DATENO.CITY OF FARMINGTON, MINNESOTA
JIM BELL PARK TRAIL RECLAMATION
25X141456000DATELIC. NO.
I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED
BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED
PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF MINNESOTA.
MATTHEW R. BLAZER
56110 MM/DD/YYYY
BAP
BAP
JH/MB
12224 NICOLLET AVENUE
BURNSVILLE, MN 55337
Phone: (952) 890-0509
Email: Burnsville@bolton-menk.com
www.bolton-menk.comR
NOTE: EXISTING UTILITY INFORMATION SHOWN ON THIS
PLAN HAS BEEN PROVIDED BY THE UTILITY OWNER. THE
CONTRACTOR SHALL FIELD VERIFY EXACT LOCATIONS PRIOR
TO COMMENCING CONSTRUCTION AS REQUIRED BY STATE
LAW. NOTIFY GOPHER STATE ONE CALL, 1-800-252-1166 OR
651-454-0002.
THE SUBSURFACE UTILITY INFORMATION IN THIS PLAN IS
UTILITY QUALITY LEVEL “D”. THIS UTILITY QUALITY LEVEL
WAS DETERMINED ACCORDING TO THE GUIDELINES OF
CI/ASCE 38-22, ENTITLED “STANDARD GUIDELINES FOR
INVESTIGATING AND DOCUMENTING EXISTING UTILITIES.”
PROJECT LOCATION
PROJECT LIMITS
MAP LEGEND
SHEET NUMBER SHEET TITLE
GENERAL
G0.01 - G0.02 TITLE SHEET, GENERAL NOTES
G1.01 STATEMENT OF ESTIMATED QUANTITIES
G2.01 LOCATION PLAN
CIVIL
C0.01 - C0.07 EXISTING CONDITIONS, REMOVALS PLAN
C1.01 - C1.02 TABLES, DETAILS, TYPICAL SECTIONS, PHASING PLAN
C6.01 - C6.07 STREET PLAN & PROFILE, INTERSECTION DETAILS
C7.01 - C7.02 SIGNING & STRIPING
THIS PLAN SET CONTAINS 22 SHEETS.
FEETSCALE
0 500250
TRAIL REHABILITATION
MAP OF THE
CITY OF FARMINGTON
DAKOTA COUNTY, MN
CITY OF FARMINGTON
CONSTRUCTION PLANS FOR
JIM BELL PARK RECLAMATION
APRIL, 2026
R
190TH ST W
189T
H
S
T
W
DU
N
B
U
R
Y
A
V
E
E
M
B
E
R
S
A
V
E
195TH ST W
DI
A
M
O
N
D
P
A
T
H
191ST ST W
192TH ST W
6/9/2026
JUNE
Pa
g
e
7
1
o
f
3
5
6
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: John Powell, Public Works Director
Department: Engineering
Subject: Minnesota Department of Natural Resources 2025 ReLeaf Community
Forestry Grant Contract Agreement
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
The City of Farmington applied for, and received, a Minnesota Department of Natural
Resources (MnDNR) 2025 ReLeaf Community Forestry Grant. Per the MnDNR website, the
funding can support tree inventory, planting, assessment, maintenance, improvement,
protection, and restoration. The City received a grant for the full requested amount of
$204,000; no City match is required.
The grant will be used to remove and replace 120 diseased ash trees, and conduct
tree pruning, within multiple Dakota County Estates and River Bend subdivisions which are
located east of Pilot Knob Road at the north end of the city.
DISCUSSION:
As stated in the City's application, the MnDNR grant of $204,000 is to remove and replace
120 diseased ash trees and conduct tree pruning to enhance public safety, improve tree
health, and strengthen the resilience of Farmington’s urban forest through a diverse
replanting strategy. City project deliverables include removal of 120 diseased ash trees,
replanting with a diverse mix of species, and pruning to improve canopy health and safety.
All work will be completed by qualified tree care contractors selected through a Request
for Quotes (RFQ) process.
When estimating grant related costs:
The estimated cost for tree and stump removal is $900 per tree based on invoices
from similar recent projects and assuming a slight increase in labor costs.
The estimated cost for planting new trees is $500 per tree and includes the tree,
installation, mulching, a one-year warranty, and watering. Pricing was developed
using recent quotes from area nurseries for similar work in the city.
The estimated cost for pruning approximately 4 ½ miles of roadway trees in the grant
area is $1,875 per day for approximately eight full days.
The City will implement public engagement including the following:
Page 72 of 356
Notify residents individually about planned removals, plantings, and pruning, with
options to provide input on species, access concerns, or special needs.
Invite residents and volunteers to assist with maintenance and monitoring of newly
planted trees.
Engage school groups in planting and mulching events.
The proposed grant agreement is very similar in form to past grant agreement with the
MnDNR and includes a detailed description of the proposed work activity. Key aspects of
the grant agreement include the following:
The expiration date for the grant is June 30, 2027, unless amended.
The City agrees to complete the program in accordance with the approved budget
to the extent practicable and within the program period specified. Any material
change in the grant contract agreement shall require an amendment by the State.
Prevailing wage requirements apply.
The City will pay for grant expenses then request reimbursement from the State of
Minnesota.
The City can expect to be reimbursed within 30 days of the MnDNR receiving a
complete and accurate reimbursement request.
The City will not contract with vendors or subcontractors who are on the suspension
or debarment lists for either the State of Minnesota or the federal government
The overall grant totals $204,000 and requires no in-kind contribution by the City. The grant
application is attached to the agreement. Procurement for the tree removals will begin
immediately upon full execution of the agreement and processing through the MnDNR.
Public Works Staff are very familiar with the program requirements, the reporting process,
and can deliver the work within the grant constraints.
BUDGET IMPACT:
No matching funding from the City is required; City Staff time will be required to administer
the grant.
ACTION REQUESTED:
Approve the Minnesota Department of Natural Resources 2025 ReLeaf Community Forestry
Grant Contract Agreement and Authorize the Mayor to execute same.
ATTACHMENTS:
2025 MnDNR ReLeaf Grant Contract Agreement w exhibits
Page 73 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 1
STATE OF MINNESOTA
GRANT CONTRACT AGREEMENT
Swift Contract Number: 289742
This Grant Contract Agreement is between the State of Minnesota, acting through its Department of Natural Resources,
Division of Forestry, 500 Lafayette Road, St. Paul, MN 55155 ("State") and Farmington, City of, 430 Third Street,
Farmington, MN 55024. ("Grantee").
Recitals
Under Minnesota Statutes §84.026, §84.085, Subd. 1, §84.705, §88.82, and MN Session Laws - 2025, 1st Special Session,
Chapter 1, Article 1, Section 3, Subdivision 4 (g) the State is empowered to enter into this Grant Contract Agreement.
The State is in need of enhancing community forest ecosystem health and sustainability. The Grantee represents that it
is duly qualified and agrees to perform all services described in this Grant Contract Agreement to the satisfaction of the
State.
Grant Contract Agreement
1 Term of Grant Contract Agreement
1.1 Effective Date. May 4, 2026, or the date the State obtains all required signatures, whichever is later.
Per Minnesota Statutes § 16B.98, Subd. 5, the Grantee must not begin work until this Grant Contract
Agreement is fully executed and the State's Authorized Representative has notified the Grantee that work may
commence.
Per Minnesota Statutes § 16B.98 Subd. 7, no payments will be made to the Grantee until this Grant Contract
Agreement is fully executed.
1.2 Expiration Date.
A. June 30, 2027, or, in the event this Grant Contract Agreement is continued by way of amendment or new
agreement, the date the amendment or new agreement is fully executed, whichever is later. In the event an
amendment or new agreement is not fully executed within 60 calendar days of the stated expiration date, this
grant agreement will expire on August 30, 2027.
1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this Grant Contract
Agreement: Liability; State Audits; Government Data Practices and Intellectual Property; Publicity and
Endorsement; Governing Law, Jurisdiction, and Venue; and Data Disclosure.
2 Specifications, Duties, and Scope of Work
• The parties will perform the services outlined in Exhibit A: Grant Project Deliverables.
• The Grantee will comply with the required grants management policies and procedures set forth through Minn.
Stat. §16B.97, subd 4 (a)(1), and M.L. 2025, First Special Session, Chapter 1
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 74 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 2
• The Grantee agrees to complete the program in accordance with the approved budget to the extent practicable
and within the program period specified in the grant contract agreement. Any material change in the grant
contract agreement shall require an amendment by the State (see Section 9.2).
• The grantee shall be responsible for the administration supervision, management, record keeping, and program
oversight required for the work performed under this agreement. · The Grantee is responsible for maintaining
an adequate conflict of interest policy. Throughout the term of this agreement, the Grantee shall monitor and
report any actual, potential, or perceived conflicts of interest to the State's Authorized Representative. The
Grantee must sign and return Attachment C, Conflict of Interest Disclosure, when countersigning this
agreement.
3 Time
The Grantee must comply with all the time requirements described in this Grant Contract Agreement. In the
performance of this Grant Contract Agreement, time is of the essence and failure to meet a deadline date may
be a basis for a determination by the State’s Authorized Representative that the Grantee has not complied with
the terms of the Grant Contract Agreement. The Grantee is required to perform all the duties cited within clause
two “Specifications, Duties, and Scope of Work” within the grant period. The State is not obligated to extend the
grant period.
4 Consideration and Terms of Payment
The consideration for all services performed by the Grantee pursuant to this Grant Contract Agreement shall be
paid by the State as follows:
4.1 Compensation. The total obligation of the State under this Grant Contract Agreement, including all
compensation and reimbursements, is not to exceed $204,000.00, which shall be paid in accordance with the
terms outlined in Exhibit A: Grant Project Deliverables, which is attached and incorporated into this Grant
Contract Agreement.
4.2 Administrative Costs. Grantee administrative costs must be necessary and reasonable.
4.3 Travel Expenses. Reimbursement for travel and subsistence expenses actually and necessarily incurred by the
Grantee because of this Grant Contract Agreement will not exceed $0.00. The Grantee will not be reimbursed
for travel and subsistence expenses incurred outside Minnesota unless it has received the State’s prior written
approval for out of state travel. Minnesota will be considered the home state for determining whether travel is
out of state.
The Grantee will be reimbursed for travel and subsistence expenses in the same manner and in no greater
amount than provided in the current Commissioner’s Plan promulgated by the Commissioner of Minnesota
Management and Budget.
4.4 Invoices. Payments shall be made by the State after the Grantee’s presentation of invoices for services
satisfactorily performed and the written acceptance of such services by the State’s Authorized Representative.
Invoices shall be submitted timely, with additional details as requested by the State, and according to the
following schedule in Exhibit A: Grant Project Deliverables
4.5 Unexpended Funds. The Grantee must promptly return to the State any unexpended funds that have not been
accounted for in a financial report to the State.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 75 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 3
5 Conditions of Payment
All services provided by the Grantee under this Grant Contract Agreement must be performed to the State’s
satisfaction, as determined at the sole discretion of the State’s Authorized Representative and in accordance
with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive
payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local
law.
6 Contracting and Bidding Requirements
The Grantee is required to comply with Minnesota Statutes § 471.345, Uniform Municipal Contracting Law.
6.1 The Grantee and any subrecipients must comply with prevailing wage rules per Minnesota Statutes §§ 177.41
through 177.50, as applicable.
6.2 The Grantee and any subrecipients must not contract with vendors who are suspended or debarred by the
State of Minnesota or the federal government: Suspended and Debarred Vendors, Minnesota Office of State
Procurement.
6.3 The Grantee must maintain written standards of conduct covering conflicts of interest and governing the
actions of its employees engaged in the selection, award and administration of contracts.
7 Authorized Representatives
7.1 The State’s Authorized Representative is Mark Kruse MN DNR Forestry, 500 Lafyette Road, St Paul MN 55155,
651-259-5274, mark.kruse@state.mn.us, or their successor, and has the responsibility to monitor the Grantee’s
performance and the authority to accept the services provided under this Grant Contract Agreement. If the
services are satisfactory, the State’s Authorized Representative will certify acceptance on each invoice
submitted for payment.
7.2 The Grantee’s Authorized Representative is Ben Humlie, Natural Resources Specialist
bhumlie@farmingtonmn.gov, 651-280-6842 or their successor. If the Grantee’s Authorized Representative
changes at any time during this Grant Contract Agreement, the Grantee must immediately notify the state.
7.3 The Grantee must clearly post on the Grantee’s website the names of, and contact information for, the
Grantee’s leadership and the employee or other person who directly manages and oversees this Grant Contract
Agreement on behalf of the Grantee.
8 Assignment, Amendments, Waiver, and Contract Complete
8.1 Assignment. The Grantee may neither assign nor transfer any rights or obligations under this Grant Contract
Agreement without the prior consent of the State and a fully executed agreement, executed and approved by
the authorized parties or their successors.
8.2 Amendments. Any amendment to this Grant Contract Agreement must be in writing and will not be effective
until it has been executed and approved by the same parties who executed and approved the original Grant
Contract Agreement or their successors.
8.3 Waiver. If the State fails to enforce any provision of this Grant Contract Agreement, that failure does not waive
the provision or its right to enforce it.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 76 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 4
8.4 Contract Complete. This Grant Contract Agreement contains all negotiations and agreements between the
State and the Grantee. No other understanding regarding this Grant Contract Agreement, whether written or
oral, may be used to bind either party.
9 Subcontracting and Subcontract Payment
9.1 A subrecipient is a person or entity that has been awarded a portion of the work authorized by this Grant
Contract Agreement by Grantee. The Grantee must document any subaward through a formal legal agreement.
The Grantee must provide timely notice to the State of any subrecipient(s) prior to the subrecipient(s)
performing work under this Grant Contract Agreement.
9.2 The Grantee must monitor the activities of the subrecipient(s) to ensure the subaward is used for authorized
purposes; is in compliance with the terms and conditions of the subaward, Minnesota Statutes § 16B.97, Subd.4
(a) (1) and other relevant statutes and regulations; and that subaward performance goals are achieved.
9.3 During this Grant Contract Agreement, if a subrecipient is determined to be performing unsatisfactorily by the
State’s Authorized Representative, the Grantee will receive written notification that the subrecipient can no
longer be used for this Grant Contract Agreement.
9.4 No subagreement shall serve to terminate or in any way affect the primary legal responsibility of the Grantee
for timely and satisfactory performances of the obligations contemplated by the Grant Contract Agreement.
9.5 The Grantee must pay any subrecipient in accordance with Minnesota Statutes § 16A.1245.
9.6 The Grantee and any subrecipients must not contract with vendors who are suspended or debarred by the
State of Minnesota or the federal government.
10 Liability
The Grantee must indemnify, save, and hold the State, its agents, and employees harmless from any claims or
causes of action, including attorney’s fees incurred by the State, arising from performance of this Grant Contract
Agreement by the Grantee or the Grantee’s agents or employees. This clause will not be construed to bar any
legal remedies the Grantee may have for the State’s failure to fulfill its obligations under this Grant Contract
Agreement.
11 State Audits
Under Minnesota Statutes § 16B.98, Subd. 8, the Grantee’s books, records, documents, and accounting
procedures and practices relevant to this Grant Contract Agreement are subject to examination by the
Commissioner of Administration, the State granting agency, the State Auditor, the Attorney General, and the
Legislative Auditor, as appropriate, for a minimum of six years from the expiration or termination of this Grant
Contract Agreement, receipt and approval of all final reports, or the required period of time to satisfy all State
and program retention requirements, whichever is later.
12 Government Data Practices and Intellectual Property Rights
12.1 Government Data Practices. The Grantee and State must comply with the Minnesota Government Data
Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by the State under this grant
contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by
the Grantee under this grant contract. The civil remedies of Minnesota Statutes § 13.08 apply to the release of
the data referred to in this clause by either the Grantee or the State.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 77 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 5
If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately
notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting
party before the data is released. The Grantee’s response to the request shall comply with applicable law.
12.2 Intellectual Property Rights.
A. Intellectual Property Rights. The State owns all rights, title, and interest in all of the intellectual property
rights, including copyrights, patents, trade secrets, trademarks, and service marks in the Works and
Documents created and paid for under this grant contract agreement. Works means all inventions,
improvements, discoveries (whether or not patentable), databases, computer programs, reports, notes,
studies, photographs, negatives, designs, drawings, specifications, materials, tapes, and disks conceived,
reduced to practice, created or originated by the Grantee, its employees, agents, and subcontractors, either
individually or jointly with others in the performance of this grant contract agreement. Works includes
“Documents.” Documents are the originals of any databases, computer programs, reports, notes, studies,
photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials,
whether in tangible or electronic forms, prepared by the Grantee, its employees, agents, or subcontractors,
in the performance of this grant contract agreement. The Documents will be the exclusive property of the
State, and all such Documents must be immediately returned to the State by the Grantee upon completion
or cancellation of this grant contract agreement. To the extent possible, those Works eligible for copyright
protection under the United States Copyright Act will be deemed to be “works made for hire.” The Grantee
assigns all right, title, and interest it may have in the Works and the Documents to the State. The Grantee
must, at the request of the State, execute all papers and perform all other acts necessary to transfer or
record the State’s ownership interest in the Works and Documents.
The federal awarding agency may receive royalty-free, non-exclusive and an irrevocable right to reproduce,
publish, or otherwise use the work for Federal purposes, and to authorize others to do so as noted in 2 CFR
200.315.
B. Obligations.
i. Notification. Whenever any invention, improvement, or discovery (whether or not patentable) is made
or conceived for the first time or actually or constructively reduced to practice by the Grantee, including
its employees and subcontractors, in the performance of this contract, the Grantee will immediately
give the State’s Authorized Representative written notice thereof, and must promptly furnish the
Authorized Representative with complete information and/or disclosure thereon.
ii. Representation. The Grantee must perform all acts, and take all steps necessary to ensure that all
intellectual property rights in the Works and Documents are the sole property of the State, and that
neither Grantee nor its employees, agents, or subcontractors retain any interest in and to the Works and
Documents. The Grantee represents and warrants that the Works and Documents do not and will not
infringe upon any intellectual property rights of other persons or entities. Notwithstanding Clause 9, the
Grantee will indemnify; defend, to the extent permitted by the Attorney General; and hold harmless the
State, at the Grantee’s expense, from any action or claim brought against the State to the extent that it
is based on a claim that all or part of the Works or Documents infringe upon the intellectual property
rights of others. The Grantee will be responsible for payment of any and all such claims, demands,
obligations, liabilities, costs, and damages, including but not limited to, attorney fees. If such a claim or
action arises, or in the Grantee’s or the State’s opinion is likely to arise, the Grantee must, at the State’s
discretion, either procure for the State the right or license to use the intellectual property rights at issue
or replace or modify the allegedly infringing Works or Documents as necessary and appropriate to
obviate the infringement claim. This remedy of the State will be in addition to and not exclusive of other
remedies provided by law.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 78 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 6
13 Workers Compensation
The Grantee certifies that it is in compliance with Minnesota Statutes § 176.181, Subd. 2, pertaining to workers’
compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees.
Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and
any claims made by any third party as a consequence of any act or omission on the part of these employees are
in no way the State’s obligation or responsibility.
14 Governing Law, Jurisdiction, Venue
Venue for all legal proceedings out of this Grant Contract Agreement, or its breach, must be in the appropriate
state or federal court with competent jurisdiction in Ramsey County, Minnesota.
15 Termination
15.1 Termination by the State.
A. Without Cause.
The State may terminate this Grant Contract Agreement without cause, upon 30 days’ written notice to the
Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for
services satisfactorily performed.
B. With Cause.
The State may immediately terminate this Grant Contract Agreement if the State finds that there has been a
failure to comply with the provisions of this grant contract, that reasonable progress has not been made, or
that the purposes for which the funds were granted have not been or will not be fulfilled. The State may take
action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and
requiring the return of all or part of the funds already disbursed.
15.2 Termination by the Commissioner of Administration.
The Commissioner of Administration may immediately and unilaterally terminate this Grant Contract
Agreement if further performance under the agreement would not serve agency purposes or performance
under the Grant Contract Agreement is not in the best interest of the State.
15.3 Termination for Insufficient Funding.
The State may immediately terminate this Grant Contract Agreement if it does not obtain funding from the
Minnesota Legislature, or other funding source; or if funding cannot be continued at a level sufficient to allow
for the payment of the services addressed within this Grant Contract Agreement. Termination must be by
written notice to the Grantee. The State is not obligated to pay for any services that are provided after notice
and effective date of termination. However, the Grantee will be entitled to payment, determined on a pro rata
basis, for services satisfactorily performed to the extent that dedicated funds are available.
In the event of temporary lack of funding or appropriation, the State may pause its obligations under this Grant
Contract Agreement without terminating it. This pause will be for the duration of the lack of funding or
appropriation and shall not be considered a termination of the Grant Contract Agreement. The Grantee will be
notified in writing of the temporary pause, and the Grantee’s ability to provide services may be temporarily
suspended during this period. The State will provide reasonable notice to the Grantee of the lack of funding or
appropriation and shall notify the Grantee once funding is restored or appropriated, at which point the
provision of services under the Grant Contract Agreement may resume.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 79 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 7
The State will not be assessed any penalty if the Grant Contract Agreement is terminated due to insufficient
funding. The State must provide the Grantee notice of the lack of funding within a reasonable time of the
State’s receiving notice.
16 Publicity and Endorsement
16.1 Publicity. Any publicity pertaining to the services resulting from this Grant Contract Agreement shall identify
the State as the sponsoring agency. Publicity includes, but is not limited to: websites, social media platforms,
notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared
by or for the Grantee or its employees individually or jointly with others or any subcontractors. All projects
primarily funded by state grant appropriations must publicly credit the State, including on the grantee’s
website, when practicable.
16.2 Endorsement. The Grantee must not claim that the State endorses its products or services.
16.3 Signage. Any site funded by this grant contract shall display a sign at a prominent location at the entrance to
the site and in a form approved by the State that acknowledges funding through this grant.
17 Data Disclosure
Under Minnesota Statutes § 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of
its social security number, federal employer tax identification number, and/or Minnesota tax identification
number, already provided to the State, to federal and state tax agencies and state personnel involved in the
payment of state obligations. These identification numbers may be used in the enforcement of federal and state
tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent state tax
liabilities, if any.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 80 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 8
18 Use of Funds as Match to Other Grants or Programs. The Grantee must inform the State’s Authorized
Representative whenever the grant funds will be used as match or for reimbursement for any other grant or
program.
18.1 The Grantee must inform the State’s Authorized Representative or their grant specialist of the following
information: grant program, grant name, the amount of grant or match funds to be used, location where funds
were or will be used, activity the funds will support, and current landowner (if applicable).
18.2 The Grantee must also inform the State’s Authorized Representative before work begins if the new
grant or program will add any encumbrances to state land where grant or match funds will be spent.
19 Americans With Disabilities Act. The Grantee must comply with the 2010 American Disabilities Act Standards
for Accessible Design.
20 Non-Discrimination Requirements. No person in the United States must, on the ground of race, color, national
origin, handicap, age, religion, or sex, be excluded from participation in, be denied the benefits of, or be subject
to discrimination under, any program or activity receiving Federal financial assistance. Including but not limited
to:
20.1 Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.) and DOC implementing regulations
published at 15 C.F.R. Part 8 prohibiting discrimination on the grounds of race, color, or national origin under
programs or activities receiving Federal financial assistance; Title IX of the Education Amendments of 1972 (20
U.S.C. § 1681 et seq.) prohibiting discrimination on the basis of sex under Federally assisted education
programs or activities.
20.2 Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), and DOC implementing
regulations published at 15 C.F.R. Part 8b prohibiting discrimination on the basis of handicap under any
program or activity receiving or benefiting from Federal assistance.
20.3 The Age Discrimination Act of 1975, as amended (42 U.S.C. § 6101 et seq.), and DOC implementing
regulations published at 15 C.F.R. Part 20 prohibiting discrimination on the basis of age in programs or activities
receiving Federal financial assistance.
20.4 Title II of the Americans with Disabilities Act (ADA) of 1990 which prohibits discrimination against
qualified individuals with disabilities in services, programs, and activities of public entities.
20.5 Any other applicable non-discrimination law(s).
21 Reporting Requirements
Provide a progress report to the State’s Authorized Representative in the format explained in Exhibit A with the final
invoice.
22 Invasive Species Prevention.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 81 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 9
Grantees must follow Minnesota DNR’s Operational Order 113, which requires preventing or limiting the
introduction, establishment and spread of invasive species during activities on public waters and DNR-
administered lands. This applies to all activities performed on all lands under this grant contract agreement and
is not limited to lands under DNR control or public waters. Duties are listed under Sections II and III (p. 5-8) of
Operational Order 113 which may be found here: Link to Operational Order 113
(http://files.dnr.state.mn.us/assistance/grants/habitat/heritage/oporder_113.pdf)
23 Pollinator Best Management Practices.
Habitat restorations and enhancements conducted on DNR lands and prairie restorations on state lands or on
any lands using state funds are subject to pollinator best management practices and habitat restoration
guidelines pursuant to Minnesota Statutes, section 84.973. Practices and guidelines ensure an appropriate
diversity of native species to provide habitat for pollinators through the growing season. Current specific
practices and guidelines to be followed for contract and grant work can be found here: Link to Specific Pollinator
Best Management Practices for DNR Grants and Contracts
(http://files.dnr.state.mn.us/natural_resources/npc/bmp_contract_language.pdf).
24 Monitoring.
The state shall be allowed at any time to conduct periodic site visits and inspections to ensure work progress in
accordance with this grant agreement, including a final inspection upon program completion. At least one
monitoring visit per grant period on all state grants of over $50,000 will be conducted and at least annual
monitoring visits on grants of over $250,000.
Following closure of the program, the State’s authorized representatives shall be allowed to conduct post-
completion inspections of the site to ensure that the site is being properly operated and maintained, and that no
conversion of use has occurred.
25 Minnesota Historical Sites Act and Minnesota Field Archaeology Act
For projects involving land acquisition and/or construction, the State Historic Preservation Office must review
the project to determine if the site is a potential location for historical or archeological findings. If the State
Historic Preservation Office determines that a survey is required, the survey would need to be completed,
review and approved prior to any site disturbance for development projects and prior to the final
reimbursement of the grant funds for acquisition projects.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 82 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 10
Exhibits
The following Exhibits are attached and incorporated into this Grant Contract Agreement. In the event of a conflict
between the terms of this Grant Contract Agreement and its Exhibits, or between Exhibits, the order of precedence is
first the Grant Contract Agreement, and then in the following order:
Exhibit A: Grant Project Deliverables
Exhibit B: 3-Year Tree Establishment Plan
Exhibit C: Requirements for DNR Grantees
Exhibit D: Conflict of Interest Statement
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 83 of 356
GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES
REV. 7.10.2025 11
Grant Contract Agreement Signature Page
State Encumbrance Verification
Individual certifies that funds have been encumbered as
required by Minnesota Statutes §§ 16A.15
Print Name: Donna Edelman ______________________
Signature: _____________________________________
Title: Grants and Contract Specialist Date: ___________
SWIFT Contract No. 289742 / 3-289522 ____________
Grantee
With delegated authority
Print Name: __________________________________
Signature: _____________________________________
Title: Date: ______________
Print Name: ___________________________________
Signature: _____________________________________
Title: Date: ______________
Print Name: ___________________________________
Signature: _____________________________________
Title: Date: ______________
Print Name: ___________________________________
Signature: _____________________________________
Title: Date: ______________
State Agency
With delegated authority
Print Name: ___________________________________
Signature: _____________________________________
Title: Date: ______________
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 84 of 356
Exhibit A: Grant Project Deliverables
2025 ReLeaf Grants City of Farmington Deliverables
Grant Sum Total: $204,000.00
RISK MITIGATION
If changes occur to grantee’s organization during the grant period such as key personnel or financial
status, grantees must notify their UCF grant administrator as soon as possible. Changes to grantee
status, and/or information provided through reporting, may result in changes to risk mitigation plan.
Grant Contact Deliverables
Trees Removed: 120
Trees Planted: 120
Prune trees in Dakota County Estates
Communications: Updates in city newsletter, social media, and city website. Mailers and direct
messages to residents of properties directly affected by the project.
Regardless of requests for reimbursement, a written update must be submitted by each reporting
deadline, to ensure project is moving forward and on track to completion. Add written reports below
corresponding to each reporting date:
June 8, 2026 Update:
December 8, 2026 Update:
June 30, 2027 FINAL REPORT:
As work is completed, thoroughly address all applicable bullet points below. Add in the date of reporting
(i.e. 12/1/2026) and change the font color of your update to red, to show where information has been
added. Continually add to this document over the lifetime of your grant, making sure that all bullet
points are addressed by the time of the grant’s completion.
Work with DNR to fully execute and report on the impacts of the work plan by meeting the requirements
as negotiated:
Priority
Consistent with legislative direction, priority for ReLeaf Grant awards was given to projects located in a
census block group with a supplemental demographic index score in the 70th percentile or higher within
the state of Minnesota and the justification of Priority Area focus methodology.
The supplemental demographic index is a combination of five socioeconomic factors averaged together
for each Census block group. The supplemental demographic index can provide an additional perspective
on potential community vulnerability. The formula is as follows: supplemental demographic index = (%
low-income + % persons with disabilities + % less than high school education + % limited English speaking
+ low life expectancy) / 5.
The Priority Area map can be accessed through the DNR website, or by clicking here.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 85 of 356
Percent project occurs within Priority Area: 80%
Project Overview and Need
The City of Farmington requests $204,000 to remove and replace 120 diseased ash trees and conduct
tree pruning within the Dakota County Estates subdivision to enhance public safety, improve tree
health, and strengthen the resilience of Farmington’s urban forest through a diverse, climate-adapted
replanting strategy.
Dakota County Estates, located in northern Farmington, was developed in the 1980s–90s and includes
single-family homes, townhomes, and Dakota County Estates Park, a 4.4-acre park supporting recreation
and neighborhood connection. The project area lies within Census Block 609.074, ranking in the 70th
percentile or higher on Minnesota’s Supplemental Demographic Index (SDI). Within this area, 13.4% of
residents age 25+ lack a high school diploma (vs. 6% citywide), 4.3% report no formal schooling (vs. 0.5%
citywide), and 5% of households have limited English proficiency (vs. 3.5% citywide), demonstrating the
need for targeted environmental investment.
Project deliverables include removal of 120 diseased ash trees, replanting with a diverse mix of climate-
adapted species, and pruning to improve canopy health and safety. All work will be completed by
qualified tree care contractors selected through a Request for Quotes (RFQ) process and performed by
TCIA-accredited and/or ISA-certified professionals. Utility and trunk locates and site measurements will
be completed prior to replanting.
When infrastructure, utilities, or space constraints prevent planting in the same location, the Project
Manager will request approval from the grant administrator to utilize the following replacement
sequence, while adhering to the City's tree planting ordinance: (1) on-site replacement when feasible;
(2) Priority Area boulevards; (3) Dakota County Estates Park (in Priority Area); (4) Distad and Hill Dee
Parks, directly adjacent to the Priority Area; and (5) Lake Julia Park, ¼ mile from the Priority Area.
This initiative supports the City’s Emerald Ash Borer (EAB) Management Plan (adopted March 2023),
which directs removal of up to 800 hazardous trees annually through 2028. Limited local funding
prioritizes safety-driven removals, leaving replanting and proactive pruning unfunded. Grant funding
allows the City to extend EAB resources to other neighborhoods, maximizing impact and fiscal
responsibility.
Farmington recognizes that a healthy, equitable urban canopy supports quality of life and community
resilience. Without external funding, many trees would be removed without replacement, reducing
canopy cover and neighborhood livability.
Project Timeline
This project will follow a timeline that ensures the timely removal of declining ash trees, pruning of
existing trees, and replanting for successful establishment. All removals, plantings, and pruning will be
performed by qualified tree care contractors selected through a Request for Quotes (RFQ) process and
carried out by TCIA-accredited and/or ISA-certified professionals. Upon project approval and grant
award, planning and outreach will begin to coordinate tree removals and maintenance activities.
In late February/early March 2026, an RFQ will be issued to select a qualified contractor with TCIA
and/or ISA-certified staff and competitive pricing for tree removals. From late spring through June 2026,
the selected contractor will remove approximately 120 hazardous ash trees and stumps within the
priority area. All removals will follow Emerald Ash Borer (EAB) best management practices to protect
remaining trees and the surrounding environment.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 86 of 356
A second RFQ will be issued in early July 2026 to select qualified contractors with TCIA and/or ISA-
certified staff to install, mulch, and water 120 replacement trees, which will include a one-year warranty
for establishment care.
Upon selection of a contractor, tree planting will occur in Dakota County Estates between late August
and October 2026. Where direct replacement is not possible due to infrastructure, utility, or space
constraints, and upon approval from the Grant Administrator, replacement trees will be planted based
on the following replacement sequence: 1) on-site replacement when feasible; (2) Priority Area
boulevards; (3) Dakota County Estates Park (in Priority Area); (4) Distad and Hill Dee Parks, directly
adjacent to the Priority Area; and (5) Lake Julia Park, ¼ mile from the Priority Area.
A final RFQ will be issued in the fall of 2026 to select qualified contractors with TCIA and/or ISA-certified
staff to prune approximately 4 ½ miles of existing roadway trees in Dakota County Estates Priority Area
to improve canopy structure, safety, and overall tree health.
Upon selection of a contractor, pruning will take place in late fall 2026 through early spring 2027 based
on best practices related to the growing season.
During spring and early summer 2027, the newly planted trees will be evaluated during the growing
season. Any trees found in poor condition or dead will be replaced under warranty. Ongoing
maintenance and monitoring will be conducted by city staff, with additional support from volunteers,
residents, and school groups as available. Establishment care, including watering, will continue
throughout the growing season and be incorporated into the city’s boulevard tree maintenance
program.
This phased approach ensures that removals, pruning, planting, and establishment care are completed
efficiently, safely, and in alignment with the city’s EAB Management Plan and best management
practices.
Project Budget Explanation
The budget for this project includes costs for 120 tree and stump removals in the Priority Area, Dakota
County Estates subdivision, the installation of 120 climate-adapted replacement trees, and the clearance
pruning of approximately 4 ½ miles of roadway in the grant Priority Area. We are intentionally using
grant funds, rather than internal funds, for work in this area to maximize the reach of the City’s overall
EAB Management Program and ensure resources can be distributed equitably across all affected
neighborhoods.
The estimated cost for tree and stump removal is $900 per tree, based on invoices from two similar
projects that began in 2023 and were supervised by contractors with TCIA- and ISA-certified staff. This
cost has been adjusted to reflect increased labor expenses.
The estimated cost for planting new trees is $500 per tree and includes the tree, installation, mulching, a
one-year warranty, and watering. Pricing was developed using quotes from Bachman’s Tree Nursery and
Hoffman and McNamara, both of whom participated in the referenced projects. Costs (adjusted for
labor increases) are based on an average of #15, #10, and 20# containerized climate-adapted species
from Bachman’s, with installation and warranty services priced by Hoffman and McNamara.
The estimated cost for pruning the approximately 4 ½ miles of roadway trees in the grant Priority Area is
$1,875 per day for approximately eight full days. This estimate is based on contractor invoices from a
pruning project in 2024.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 87 of 356
These figures are consistent with the scope and goals of the current project. Final pricing may vary
depending on project scale, species availability, and overall budget. All trees purchased with grant funds
will be climate-adapted and suitable for Minnesota’s changing climate.
Work not eligible under this grant, such as ongoing watering beyond the warranty period, structural
pruning in subsequent years, and other citywide EAB management activities, will be funded through the
City’s Forestry and Natural Resources budget.
The project will be awarded through a competitive bidding process in accordance with the City’s
purchasing policy. After the initial establishment period, ongoing care and maintenance will be carried
out by City staff, supported through the City’s Forestry or Natural Resources budget.
Community Engagement and Impact
The Dakota County Estates subdivision, developed in the mid-1980s–early 1990s, is a residential
neighborhood with single-family homes, townhouses, and a 4.4-acre community park that serves as a
key gathering space. Located in Census Block 609.074, the area ranks in the 70th percentile or higher on
Minnesota’s Supplemental Demographic Index. Key indicators include: 13.4% of residents 25+ lack a
high school diploma (vs. 6% citywide), 4.3% report no schooling (vs. 0.5%), and 5% of households are
limited English-speaking (vs. 3.5%). These demographics highlight the need for inclusive outreach and
community-centered planning.
Project outcomes reflect the neighborhood’s limited resources for private tree care and reliance on
shared spaces. Removing hazardous trees addresses safety concerns for residents who walk, bike, or use
the community park. Replanting with diverse, climate-adapted species ensures long-term access to
urban canopy benefits—cleaner air, reduced heat, stormwater capture, and improved mental health—
especially critical for vulnerable populations. By focusing investment here, the City supports
environmental justice and neighborhood resilience.
To ensure meaningful engagement, the City will:
• Notify residents individually about planned removals, plantings, and pruning, with options to
provide input on species, access concerns, or special needs.
• Invite residents and volunteers to assist with maintenance and monitoring of newly planted
trees.
• Engage school groups in planting and mulching events.
This project will replace 120 failing ash trees with diverse, climate-resilient species, providing long-term
cooling benefits to residential areas and parks. Trees not actively cared for by residents will be
maintained by City staff or volunteers, ensuring equitable access to canopy benefits. By engaging
residents in planning, planting, and stewardship, the City fosters environmental justice, community
resilience, and long-term neighborhood investment—particularly for older adults, children, and other
vulnerable populations who rely on public spaces for recreation and wellness.
Communications
Project communications will be delivered through multiple channels. Updates will be featured in
Currents, the city’s quarterly newsletter, including information on the project’s timeline, scope, and
anticipated impact. The city will share updates through social media to keep residents informed in real
time. Additionally, the city’s website will host project details, including tree removal and planting
schedules.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 88 of 356
For properties directly affected by the project, residents will receive mailers or direct messages outlining
removal and planting plans. Communications will include information about new trees and their
establishment, as well as city contact details to encourage public engagement.
The city includes Emerald Ash Borer (EAB)-related messaging and updates on other similar projects in
newsletters and has produced a podcast episode focused on EAB. The city is committed to continuing
public outreach that promotes best management practices for EAB control and tree replacement efforts.
Key Personnel
The project manager will be Farmington’s Natural Resources Specialist (NRS), Ben Humlie. The NRS holds
a Bachelor of Science degree in Natural Resource Management and Associates of Science degree in
Wilderness Management, is both a Certified Minnesota Tree Inspector and Certified ISA Arborist, and
has 15 years of experience in working in natural areas and urban tree settings. The NRS will utilize
approximately 10-15% of his time handling project planning and implementation, contract reporting,
monitoring work progress, and directing staff.
Non-forestry staff involved in this project will include John Powell, PE, City Engineer/Public Works
Director; Kari Kubicek, Regional Funding Manager; and Danielle Olson, GIS Specialist. John Powell, who
holds a B.S. in Engineering from the University of Minnesota, will assist with project components such as
procurement and supervision, contributing approximately six hours over the course of the project. Both
the City Engineer/Public Works Director and the NRS have experience planning, executing, and
completing municipal tree service projects. Kari Kubicek brings several years of grant management
experience and will facilitate project reporting and submissions, serving as the primary contact for any
reporting questions or updates, dedicating roughly 10–15 hours over the life of the project. GIS
Specialist Danielle Olson will contribute approximately 10 hours developing maps and other GIS
materials to support project planning and documentation. Danielle holds a Bachelor’s Degree in
Geography with GIS and other Environmental Studies and has a cumulative of 10 years of experience as
a GIS professional in both the private and public sectors.
Through three separate RFQ processes, the City intends to contract with tree care companies that have
staff supervising work that are ISA or TCIA qualified insured, and have competitive pricing for tree
removal, tree installation and maintenance, and tree pruning.
The City will also collaborate closely with its Parks and Recreation Department to implement phases of
the proposed tree removal and replanting project. Parks and Recreation brings extensive experience in
managing public green spaces, tree inventories, and community beautification efforts.
The successful implementation of the 2023 Shade Tree Program multi-year grant and the 2023
Preparing for Emerald Ash Borer two-year grant demonstrates the City's capability and dedication to
continuing this vital work, contingent upon obtaining additional funding.
Grant Requirements
All components and requirements within the Request for Application must be adhered to.
TREE REMOVALS AND PLANTING
• Planting trees can take place without removal.
• Tree removals from boulevards and parks, must be replaced at least one-for-one (i.e.,
at least one tree planted for every tree removed), and trees must be replanted at the
same location of the removal whenever possible and feasible.
• Tree removals conducted in park woodlands:
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 89 of 356
o For the purposes of this grant, park woodlands are defined as publicly owned
spaces that, beyond trail creation or access, are not regularly mowed.
o Removals in woodlands need to be mitigating a public safety concern or to
address degraded ecosystems.
o Removals must meet a minimum of one tree planted for five trees removed.
• Tree planting projects must follow the best practices set in A Pocket Guide to Planting
Trees.
• Tree planting projects must identify the tree species to be planted; site location(s);
and number, and type/size of planting stock:
o Trees planted must be a climate-adapted species to Minnesota.
o The species identified for planting must increase the diversity of the
community’s tree canopy and advance the goal of working toward the 20-10-
5 guidelines, meaning a community has no more than 20% of their trees
within a single family, no more than 10% of their trees within a single genus,
and no more than 5% of their trees within a single species. Numbers derived
from the Minnesota Department of Natural Resources 2020 Rapid
Assessment will be used unless an updated inventory is provided. For your
community this means grant funds cannot be spent on purchasing:
• Acer (maple): 25%
• Fraxinus (ash): 14%
• Picea (spruce): 14%
• Tilia (basswood/linden): 12%
o Tree species listed on the Minnesota Invasive Terrestrial Plants list are not
eligible for grant expenses, including Amur cork tree, Amur maple, autumn
olive, black locust, buckthorn, Norway maple, Russian olive, Siberian elm, and
tree of heaven.
o Species list for trees to be planted must be submitted to and approved by
DNR prior to planting.
o Species list and numbers can be amended following the submission of tree
inventory/survey data.
o Tree stock must meet ANSI Z-60.1 and can be:
• ¾-2 inch caliper bareroot,
• a container class size #20 or smaller, or
• balled and burlapped trees smaller than 2.5” caliper (MNDOT
Certified Landscape Specialist training required by planting
organization in order for B&B trees to be eligible).
• Flexibility is possible in instances where desired stock in
unavailable.
• DNR recommends trees be purchased with a one-year warranty.
• All trees removed and planted on public property must be mapped and submitted as
shapefiles, with the planted trees identified by species. If your community does not
have access to shapefile-generating software, please contact the DNR at
ucf.dnr@state.mn.us to discuss options for addressing this requirement.
• Projects that incorporate tree planting must submit a 3-year establishment plan with application.
RESIDENTIAL TREE CARE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 90 of 356
• Work conducted on residential property must be completed by residents (tree planting
only), or by tree care companies holding liability insurance and with a MNDOT Certified
Landscape Specialist, International Society of Arboriculture (ISA) Certified Arborist on
staff, or Tree Care Industry Association (TCIA) accreditation, or equivalent certification.
• A link to, or paper copy of, the Forest Service’s Tree Owner’s Manual (English / Spanish)
must be provided to residents receiving a newly planted tree.
• For activities on residential land, a formal agreement between the resident and the
Community Tree Planting Grant recipient is required. Each residential agreement must
contain the following language:
o The State of Minnesota is released from any liability associated with work completed
on private property.
o Access is granted by the landowner for all planned activities within agreement; this
may include, but is not limited to, planting, follow-up maintenance, monitoring, or
other on-site work.
o I will plant and care for my tree according to the Tree Owner’s Manual for as long as
it is within my right to do so.
Requesting Reimbursement and Reporting
Accomplishment reports must be submitted by the following deadlines: Update - June 8, 2026; Update -
December 8, 2026 Update; Final Report - June 30, 2027.
If two successive updates are missed, DNR staff will contact grantee requesting a grant progress update
and explanation of why grant reporting has been late. If a report is not received within 60 days of the
request, DNR will assume work is not being conducted and begin steps to close-out the grant contract
and reallocate funds. This may result in a grant agreement being closed out early, and DNR staff noting
in the grant closeout report the lack of performance and contract compliance by the grantee.
If within two successive updates necessary progress has not been made in accomplishing work within the
grant contract, DNR staff may request a meeting to discuss why progress is not being made and may
begin steps to close-out the grant contract and reallocate funds. This may result in a grant agreement
being closed out early, and DNR staff noting in the grant closeout report the lack of performance and
contract compliance by the grantee.
The following documentation is required to obtain reimbursement unless specifically described.
• Partial payment form along with invoices and proof of payment for grant-funded purchases,
• Cash Match form along with proof of payment (as applicable), and
• In-Kind Match form (as applicable)
• Accomplishment reports will include grant contract deliverables and their impacts
• Photo documentation of the project’s progress at appropriate phases, and illustrations,
diagrams, charts, graphs, and maps to show results
• All trees removed, stumps ground (if not connected to a removed tree), and planted will be
mapped and submitted as shapefiles, with the planted trees identified by species and size, to
obtain grand fund reimbursement. If your community does not have access to shapefile-
generating software, please notify your DNR Urban and Community Forestry Team Member,
and they will work to assist you. Maps must:
o Identify the location of trees that have been removed
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 91 of 356
o Identify the location of stumps that have been ground
o Identify the location and species of trees that have been planted
All complete reimbursement requests received by the deadlines will be reviewed by DNR staff. Provided
that the grantee is in compliance with all terms of the Request for Application and grant contracts,
verified project activities and eligible expenses will be reimbursed up to 90%, with 10% retained until
the project is completed.
Accommodations may be offered in select circumstances, and in accordance with Office of Grants
Management policies, at the discretion of the agency. Please reach out to DNR staff at
ucf.dnr@state.mn.us for more information on requesting accommodations.
Following the submission of invoices and accomplishment reports, a compliance check will be conducted
by Minnesota Department of Natural Resources staff. Staff will do a site evaluation ensuring that grant
work has been properly completed including tree removals are accurately reported on and stump
grinding was complete if applicable, tree species submitted on maps are correctly identified and planted
in accordance with the standards set in the Minnesota Department of Natural Resources Pocket Guide
to Planting Trees, trees treated are properly tagged and identified, etc.
Ineligible Project Expenses
Ineligible project expenses include, but are not limited to:
• Costs incurred prior to the start date of the fully executed grant agreement.
• Purchase of trees listed on the Minnesota Noxious Weed List, or the DNR’s Invasive
Terrestrial Plants List, including Amur cork tree, Amur maple, autumn olive, black
locust, buckthorn, Norway maple, Russian olive, Siberian elm, and tree of heaven.
• Purchase of balled and burlapped trees larger than 2.5” caliper, containerized
trees larger than #20, or bareroot trees greater than 2” caliper diameter.
• Purchase of tree species in a genus that already makes up 10% or more of the
community’s trees or in a family that makes up 20% or more of the trees.
• Purchase of plants other than trees, such as shrubs, living ground covers, sod, grass seed, and
flowers.
• Purchase of land or easements.
• Major soil purchases, grade changes or construction.
• Capital expenditures (items with a unit cost of $5,000 or more), such as buildings,
motor vehicles, trails, or other permanent structures.
• Experimental practices not approved by DNR.
Questions about additional eligible or ineligible expenses can be directed to ucf.dnr@state.mn.us.
Grant Performance
Grant performance will be reviewed on timeliness, budget management, reporting and documentation,
meeting outcomes and deliverables, responsiveness and communication, and acknowledgement and
reflection on grant performance. This information may be considered during future grant application
and award processes.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 92 of 356
Acknowledgments
Minnesota Department of Natural Resources
The Minnesota Department of Natural Resources needs to be acknowledged in publications,
audiovisuals, and electronic media developed as a result of this award.
• Including any publications or outreach materials related to this grant or agreement, a statement
of affiliation with Minnesota Department of Natural Resources, e.g., “This publication made
possible through a grant from the Minnesota Department of Natural Resources.” OR “This
project was conducted in cooperation with the Minnesota Department of Natural Resources.”
• Logo is permitted for use and can be obtained by contacting the UCF Team.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 93 of 356
Attachment B.
3-Year Tree Establishment Plan Template for Newly Planted Trees
Organization/LUG: Year and Season of Planting:
Project Coordinator:
Phone: Email:
# of Trees to be Planted: Size (caliper for deciduous, height for conifers):
Type of Stock to be Planted (Bare root, etc.):
Describe how the activities below will be completed.
1.Tree Establishment Personnel
a. Describe who is responsible for maintaining new trees to ensure establishment.
b.Volunteers, homeowners, or inexperienced staff that will provide maintenance should receive basic
training and literature on proper maintenance techniques. Is training needed and how will you do it?
c.How will you inspect tree maintenance work periodically to make sure it is being done correctly?
2.Tree Watering Process
Describe in detail how trees will be watered, the time period and frequency of watering. Trees should be
watered weekly for the first 3 to 5 years when the ground is thawed unless it has rained 1 inch in a week.
City of Farmington Early Fall 2026
Ben Humlie
651-280-6842 bhumlie@farmingtonmn.gov
120 #10, #15, #20
Container
The Natural Resources Specialist (NRS), seasonal staff, contractors, residents, and
volunteers will oversee and perform maintenance activities of trees. The contractor
who installs the trees will do establishment care for one year following installation.
The NRS will provide proper planting practices instruction to volunteers, or seasonal
staff. Before growing seasons, the NRS will instruct, and direct staff involved with
proper maintenance practices of newly planted trees. Residents will receive
information about the newly planted tree in the boulevard in front of their home with
care information.
The NRS, seasonal staff, or other staff directed by the NRS will routinely inspect
planted trees during the growing season following planting for 3 years. Staff will look
for mechanical damage, water stress, vandalism and ensure proper care. If staff
suspects improper maintenance or damage while under the warranty, the contractor
will be liable for the tree replacement or remedial action. If the tree is outside the
warrantied period, efforts will be made to correct who ever damaged the tree. If it is
the homeowner, notice will be given, and information will be provided to the resident.
If damage was incurred by seasonal staff or volunteers, appropriate action will be
taken to ensure the person is retrained in proper tree care practices.
Watering will be required weekly and will be performed by a contractor for the first
growing season. Watering will be done as needed for the next two growing seasons
depending on weekly rainfall during the growing season. Watering information will be
provided to the homeowner following the installation of the tree. The NRS will monitor
drought conditions during the growing season to ensure watering done as needed.
Trees that are not watered by residents will be watered as needed by staff or
volunteers. It is the intention of the city to ensure trees are watered for three growing
seasons and closely monitored during the establishment period.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 94 of 356
3. Mulching Trees
Will you mulch your trees and if so, how will you maintain mulch?
4. Staking and Tying Trees
Explain if staking is necessary due to mowing, vandalism, or wind conditions, and describe plans for
inspection and removal.
5. Checking Tree Health
The grantee will check trees every 6 – 12 months to identify and address problems. Describe inspection
process and follow-up.
6. Tree Protection
Young trees in busy urban areas may be easily damaged by human activity, animals, and equipment.
Describe how planted trees will be protected.
7. Pruning
Newly planted trees should need little pruning, if they were properly cared for in the nursery. In the first
year after planting, remove only dead or broken branches. In later years, weakly attached limbs can be
removed, and corrective pruning can be done if needed. Describe your pruning maintenance cycle.
8. Tree Warranty
Tree planting should include a warranty from the nursery for replacement (due to poor condition or
mortality). The grantee should be prepared to fully replace all trees that are in poor condition or die
prior to inspection at the end of the project grant agreement, unless loss was due to natural disaster.
Describe your tree warranty or how trees will be replaced.
The contractor will include mulch with the installation of the tree. Mulching
maintenance will be included in the outreach materials to residents receiving trees in
front of their homes in the boulevard.
The contractor will stake the trees at the time of installation as a necessity due to
high wind conditions. Staking will be assessed in the spring of 2027 and throughout
the growing season. Re-inspection of staked trees will be done in the fall of 2027,
and staking will be removed if tree appears to be stable. Monitoring will continue
next growing season.
Staff will look for vigor, pest damage, mechanical damage, and proper care. If the
tree appears stressed, the NRS or staff directed by the NRS will apply suitable
methods to improve tree health. Follow-up will occur after corrective actions have
taken place and will be monitored until the tree has improved.
For the first three growing seasons mulch and tree protectors (as needed
depending on species) will be used to prevent damage to newly planted trees.
Public outreach will be used to remind residents to be careful around newly planted
trees. Outreach will include the city's social media pages and quarterly newsletter.
An initial pruning will be preformed during planting to remove dead wood. Seasonal
staff will be utilized to help prune newly planted trees. After the initial establishment,
period pruning will be done (if applicable) every 5-7 years as part of our boulevard
tree maintenance program.
The city will contract with a qualified, licensed and insured company that will install
trees with a one-year warranty. If a tree dies during the grant period and while under
warranty, it will be replaced by the contractor. If the tree dies outside the warranty
period and during the grant agreement, it will be replaced with similar stock and
species approved by the NRS.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 95 of 356
Requirements for DNR Grantees 1
Requirements for DNR grantees
Effective date: January 31, 2026
The following policies apply to all DNR grants, except where specifically noted. These requirements are in
addition to requirements in program-specific manuals. In case of any conflicts with an existing grant program
manual, the stricter document will control.
Questions about these requirements should be directed to the grant specialist for your grant program.
Questions may also be directed to grantsteam.dnr@state.mn.us. When sending an email to this address, please
include information on your grant funding source, program, and question.
Admin’s Office of Grants Management policies
Under Minn. Statutes, section 16b.97 subd. 2, the Minnesota Department of Administration is required to create
general grants management policies and procedures applicable to all state agencies. Admin’s OGM implemented
grant policies for the State of Minnesota. Please review OGM grant policies (select the Current Policies tab).
Information especially relevant to grantees is summarized below. Unless otherwise noted, these policies do not
apply to bonding grants and grants under Minn. Statutes section 16A.86 or section 16A.642.
Grants conflict of interest (OGM Policy 08-01)
All grantees must sign a conflict-of-interest disclosure form or certify they will disclose conflicts of interest when
signing their grant agreements/grant award notifications. Grantees must also maintain a written standard of
conduct covering conflicts of interest and governing the actions of their employees or board members engaged
in the selection, award, and administration of contracts. State staff may request this written standard when
conducting grant monitoring activities or if otherwise relevant. These requirements apply to all grants, including
bonding grants and grants under Minn. Statutes section 16A.86 and section 16A.642.
OGM Policy 08-01 states that a conflict of interest occurs “when a person has actual or apparent duty or loyalty
to more than one organization and the competing duties or loyalties may result in actions which are adverse to
one or both parties. A conflict of interest exists even if no unethical, improper, or illegal act results from it.” Per
the OGM policy, there are several types of conflicts of interest:
Actual conflict of interest
An actual conflict of interest occurs when a person’s decision or action would compromise a duty to a party
without taking immediate appropriate action to eliminate the conflict.
Exhibit C: Requirements for DNR Grantees
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 96 of 356
Requirements for DNR Grantees 2
Potential conflict of interest
A potential conflict of interest may exist if a person has a relationship, affiliation, or other interest that could
create an inappropriate influence if the person is called on to make a decision or recommendation that would
affect one or more of those relationships, affiliations, or interest.
Individual conflict of interest
A conflict of interest that may benefit an individual employee or a grant reviewer is any situation in which their
judgement, actions, or non-action could be interpreted to be influenced by something that would benefit them
directly or through indirect gain to an immediate family member, business, or organization with which they are
involved.
Organizational conflict of interest
A conflict of interest can also occur with an organization that is a grant applicant in a competitive grant process
or grantee of a state agency. Organizational conflicts of interest occur when:
• A grantee’s objectivity in carrying out the grant is impaired or compromised due to competing duties or
loyalties
• A grantee, potential grantee, or grant applicant has an unfair competitive advantage through being
furnished unauthorized proprietary information or source selection information that is not available to
all competitors
Use of grant contract agreements and grant award notifications (OGM Policy 08-04)
All grants need a written grant contract agreement or grant award notification. State agencies cannot award a
grant to a grantee that is on either the suspension or debarment lists for the state of Minnesota or the federal
government. If a grantee becomes suspended or debarred, that may be cause for the State to cancel their grant.
Grant agreements/GANs must contain a provision for the grantee to clearly post on the grantee’s website the
names and contact information for the grantee organization’s leadership and the person(s) who directly
manages and oversees the grant.
A fully executed copy of the grant agreement or GAN and all relevant records must be kept on file for a
minimum of six years from the end date, receipt, and approval of all final reports, OR the period of time
required to satisfy all state and program retention requirements, whichever is later.
Grantees must complete work in accordance with the terms and conditions of their grant agreement/GAN.
Work not covered under the grant agreement/GAN will not be reimbursed without a prior amendment request.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 97 of 356
Requirements for DNR Grantees 3
Public questions and comments concerning fraud and waste in state grants (OGM
Policy 08-05)
OGM will serve as the central point of contact for questions and comments about fraud and waste in state
grants and about the violation of statewide grants policies. OGM will also respond to other public questions and
concerns about state grants.
Grant payments (OGM Policy 08-08)
State agencies may not issue grant payments until the funds are encumbered, and the grant agreement is fully
executed, or the GAN is completed.
Reimbursement is the State’s preferred method for making grant payments. DNR grants operate on a
reimbursement basis, unless the grant agreement/GAN contains explicit language specifying otherwise.
Grantee reimbursement requests must correspond to the line items in the approved grant budget. Grant
managers must review each reimbursement request against the approved grant budget, grant expenditures to
date, and the latest grant progress report before approving payment. If grant managers see a discrepancy or
have any questions about reimbursement requests and/or related documentation, they will follow up with the
grantee.
Any deviation from this policy must be approved by the agency wide grants manager prior to signing a grant
agreement/GAN and must be in accordance with state laws and OGM policies.
Grants in which the payment terms are defined in statute are not covered by this policy.
DNR reimbursement procedures
• Grantees must pay for project expenses before seeking reimbursement from the grant and should only
request reimbursement for paid expenses. Expenses are reviewed and those deemed eligible are then
reimbursed under the terms of the agreement/GAN with the State of Minnesota.
• Grantees are not allowed to request reimbursement for invoices from a vendor that have not yet been
paid by the grantee. Please also see the Proof of Payment section below.
• Grantees can expect to be reimbursed within 30 days of the DNR receiving a complete and accurate
reimbursement request. If documentation to process the request is missing, or the request has
discrepancies or incorrect information, the 30-day clock does not start until all necessary information
has been submitted to the DNR and the request has been deemed complete and whole.
• The DNR will pay final reimbursement when the state determines that the grantee has satisfactorily
fulfilled all the terms of their grant agreement/GAN, unless a grant term is altered or excluded by the
DNR in writing.
Grantees should keep the following documentation on file for monitoring and audit purposes:
• Proof of payment of grant expenses (e.g. copies of cancelled checks, electronic bank statements, etc.)
• Contracting/purchasing bidding documentation
• Organization’s conflict of interest policy
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 98 of 356
Requirements for DNR Grantees 4
• Prevailing wage documentation (if applicable): project assessment form, certified payroll reports, etc.
Grant progress reports (OGM Policy 08-09)
Grantees are required to submit written progress reports at least annually until all grant funds have been
expended and all the terms in the grant agreement/GAN have been met. Information requested in a grant
progress report may include (but is not limited to): goals and objectives, activities, outcomes, challenges, lessons
learned, and financial information. State agencies cannot make grant payments on grants with past due progress
reports (unless the agency has given the grantee a written extension).
Grant monitoring (OGM Policy 08-10)
All state grants over $50,000 are required to have at least one monitoring visit before final payment is made. All
state grants over $250,000 are required to have annual monitoring visits. In-person visits are preferred where
possible, but telephone or virtual visits are also used where reasonable.
The purpose of a monitoring visit is to review and ensure progress towards the grant’s goals, address any
problems or issues before the end of the grant period, and build a relationship between the agency and grantee.
For state grants over $50,000, state agencies must conduct a financial reconciliation of grantees’ expenditures at
least once before final payment is made. A financial reconciliation involves reconciling a grantee’s request for
payment for a given period with supporting documentation (e.g. purchase orders, receipts, payroll records, etc.)
for that request.
If previously reimbursed costs are found to be ineligible upon further review during monitoring (or at any other
point during the grant period), repayment of those costs or other corrective action may be required.
Proof of payment
The State requires proof of payment documentation to ensure that funds are being provided on a
reimbursement basis. The grantee must maintain proof of payment documentation and make it available when
requested by the State. Proof of payment documentation may include:
• A copy of a bank statement with photocopies of cleared checks
• An electronic bank statement
• A copy of cancelled checks or other certified financial records
• Employee original time records and payroll documentation
Cost share/required match
For grants which require cost share or match, the requirements for documenting work completed or expenses
incurred as match are the same as for expenses for which grantees are requesting reimbursement. The State
may disallow otherwise-eligible costs for reimbursement if the grantee cannot provide proof of the expenses
being used as match.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 99 of 356
Requirements for DNR Grantees 5
For grants with in-kind match (i.e. non-cash donations of a good or service), grantees should provide
documentation similar to a payment request.
If the in-kind match is volunteer time, grantees will need volunteer logs and to show the calculation used to
convert volunteer hours to time. If the in-kind match is something other than volunteer time (e.g. use of
equipment, or donated materials), grantees must perform due diligence to determine how much the in-kind
match would cost. For example, if the in-kind match is a land donation, the documentation should include an
appraisal. If the in-kind match is use of equipment, the documentation should demonstrate a realistic cost for
the type of equipment and amount of time.
Legislatively mandated grants (OGM Policy 08-11)
State agencies must manage legislatively mandated grants with the same level of oversight (including
monitoring) applied to other state grants, while respecting and maintaining the legislative intent.
Grantees for legislatively mandated grants must submit a work plan and budget. The grant agreement/GAN
must be based on the legislation, the grantee’s work plan and budget, and negotiations between the state
agency and the grantee.
Grant amendments (OGM Policy 08-12)
During the grant period, it may be necessary to make changes to the grant contract agreement/GAN. Generally,
these modifications could include changes to the grant timeframe, to the scope of work, or to the budget
categories.
A formal grant contract amendment is required for any changes. Should a situation arise that requires any
changes to the project, it is the grantee’s responsibility to communicate immediately with the DNR grants
specialist.
The purpose of grant amendments must be similar to the original purpose of the grant and the grantee duties
should be within the scope of the original RFP/notice of grant opportunity/application.
If an amendment is allowed, it must be fully executed before additional costs can be incurred.
Contracting and bidding
Competitive bidding needs to follow a fair and transparent public process.
Grantees must not contract with vendors or subcontractors who are on the suspension or debarment lists for
either the State of Minnesota or the federal government.
Grantees must take all necessary affirmative steps to assure that targeted vendors from businesses with active
certifications through the entities below are used when possible:
• Minnesota Department of Administration’s Certified Target Group, Economically Disadvantaged, and
Veteran-Owned Vendor List
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 100 of 356
Requirements for DNR Grantees 6
• Metropolitan Council’s Targeted Vendor list: Minnesota Unified Certification Program
• Small Business Certification Program through Hennepin County, Ramsey County, and the City of St. Paul:
Central Certification Program
Grantees must maintain support documentation of the purchasing and/or bidding process utilized to contract
services in their financial records, including support documentation justifying a single/sole source bid, if
applicable. Grantees must retain the following documentation in the project file:
• Copies of executed subcontract agreements
• A copy of the request for proposal/request for quote, all submitted bids, and the bid tabulation (if
applicable)
• Written documentation that describes the rationale for selection of each subcontractor
• Documentation of the contract/bid approval, if required by grantee internal controls (such as meeting
minutes)
This documentation may be reviewed during monitoring visits or when requested by the state.
Contracting and bidding for political subdivisions of the state
In addition to the general contracting and bidding requirements above, municipalities (defined in Minn.
Statutes, chapter 471.345 subd. 1 as a county, town, city, school district, or other municipal corporation or
political subdivision of the state authorized by law to enter into contracts) must also follow the Uniform
Municipal Contracting Law.
Contracting and bidding for non-governmental organizations
In addition to the general contracting and bidding requirements at the beginning of this section, non-
government organizations must follow the contracting policies/procedures below.
Contracting and bidding for Tribal governments
Tribal governments are subject to neither the Uniform Municipal Contracting Law nor the DNR contracting
policies/procedures below. Tribal governments are subject to the contracting and bidding procedures of their
own governance.
Contracting and bidding thresholds and process
• Services and/or materials that are expected to cost between $10,000 and $24,999 must be
competitively awarded, based on a minimum of two verbal quotes or bids or awarded to a targeted
vendor.
• Services and/or materials that are expected to cost between $25,000 and $99,999 must be
competitively awarded based on a minimum of three verbal quotes or bids.
• Any services or materials that are expected to cost $100,000 or more must undergo a formal notice and
bidding process.
• Grantees must use an RFP/RFQ process to competitively select professional and technical services.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 101 of 356
Requirements for DNR Grantees 7
• The advertisement for bid processes must allow for fair competition among potential qualified bidders.
Prevailing wage
Prevailing wage (Minn. Statutes, sections 177.41-177.45) is the minimum hourly wage employers must pay
certain workers who work on construction and public works projects funded by state dollars. Prevailing wage
includes the employer’s cost of benefits. Other prevailing wage information can be found at the Minnesota
Department of Labor and Industry. Prevailing wage rules apply to any grant award of $25,000 or more that
qualifies as a “project” per the following definition:
Project: demolition, erection, construction, alteration, improvement, restoration, remodeling, or
repairing of a public building, structure, facility, land, or other public work, which includes any work
suitable for and intended for use by the public, or for the public benefit, financed in whole or part by
state funds. “Project” also includes demolition, erection, construction, alteration, improvement,
restoration, remodeling, or repairing of a building, structure, facility, land, or public work when the
acquisition of property, predesign, design, or demolition is financed in whole or part by state funds
(Minn. Statutes, section 177.42).
If the award is $25,000 or more and contains activities in the work/accomplishment plan that qualify as a
“project” per the definition above, prevailing wage rules in Minn. Statutes, sections 177.41-177.44 apply. If you
are unsure if a project is subject to prevailing wage, ask the grant specialist for a copy of DLI’s Project
Assessment Form. Grantees must complete the form and return it to the grant specialist. Once ready, the DNR
grant specialist will submit it to DLI and copy the grantee on the e-mail.
When prevailing wage applies, all bid requests and RFPs must state that the project is subject to prevailing wage
to ensure that incoming bids have factored prevailing wage rates into their submittal. A prevailing wage form
should accompany these bid submittals.
Grantees must retain documentation in the project file either the prevailing wage forms, or a notice from DLI
that the project is not subject to prevailing wage.
Fraud reporting
In addition to OGM policy, various state statutes govern reporting of suspected fraud or misuse of state dollars.
State workers with information indicating that public resources (including public money) may have been used
for an unlawful purpose must report that information. Any other person with such information is strongly urged
to report that information. The DNR takes a “no wrong door” approach for reporting suspected fraud;
essentially, the DNR encourages its workforce to report suspected fraud to any DNR supervisor or member of
agency leadership, who will connect the person reporting to the correct contact or procedure, as needed.
All state agencies are required to report suspected fraud cases to the Department of Revenue for tax fraud
investigation, in addition to referring all allegations of suspected fraud to the Office of the Legislative Auditor
and the Minnesota Bureau of Criminal Apprehension’s Financial Crimes and Fraud section
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 102 of 356
Requirements for DNR Grantees 8
(mnfraud.bureau@state.mn.us or 651-739-3750). Grantees may report suspected fraud directly to these
agencies, as well, or to their DNR grant manager or any DNR employee.
Requirements for working on state land
When working on state land, grantees must follow all applicable policies and requirements of that land.
Grantees should work with the appropriate management staff for the state land to determine these
requirements. Insurance is required to do work on state land, following the requirements of Admin.
Audits
Under Minn. Statutes, chapter 16B.98 subd. 8, the state (the grantmaking agency, state auditor, attorney
general, legislative auditor, Admin, etc.) has the right to perform programmatic or financial audits of the
grantee. The grantee’s books, records, documents, and accounting procedures and practices relevant to the
grant are subject to state examination for a minimum of six years from the expiration or termination of the
grant agreement/GAN, receipt and approval of all final reports, or the required period of time to satisfy state
and program retention requirements, whichever is later. This provision is also included in grant
agreements/GANs.
Records retention
Grantees must maintain a file for each project with all project agreements, correspondence, and the records
pertaining to project expenses requested for reimbursement. Project records are required for monitoring/audit
purposes and must be readily available for review. As with all provisions of the grant agreement/GAN, if the
state finds a failure to comply, the State may take action, including immediate termination of the grant
agreement/GAN with cause, refusal to disburse additional funds, and/or requiring the return of all or part of the
funds already disbursed.
All records related to the project must be retained for a minimum of six years from the grant agreement/GAN
end date, or the receipt and approval of all final reports, whichever is later. Some grant funds require
permanent retention of the grant records, and in those cases, that requirement supersedes the six-year
standard.
Data practices
• Grantees must comply with the Minnesota Government Data Practices Act as it applies to all data
created, collected, received, stored, used, maintained, or disseminated by the grantee under their grant
agreement/GAN. If a grantee receives a request to release this data, the grantee must immediately
notify the State. Following this notification, the State will provide instructions to the grantee concerning
the release of data.
• Grantees should instruct and train their staff regarding the governing privacy and data practices
provisions; maintaining data in a secure manner; and limiting access to work duties and assignments.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 103 of 356
Requirements for DNR Grantees 9
• Grantees must mitigate risks associated with the unauthorized access or data breach and report to the
DNR any real or perceived security or privacy incident regarding any private data in accordance with
MGDPA.
• Grantees are not permitted to use private data with artificial intelligence services unless it is approved
through the DNR/Minnesota IT vendor security risk and compliance process. AI services are reviewed
and verified through a process that includes understanding the AI’s training, ownership of data and level
of security.
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 104 of 356
Grant Contract Agreement for Legislatively named Municipality FY24: Updated July 2023 8
Conflict of Interest Disclosure
Conflict of Interest:
A conflict of interest occurs when a person has actual or apparent duty or loyalty to more than one organization
and the competing duties or loyalties may result in actions which are adverse to one or both parties. A conflict of
interest exists even if no unethical, improper or illegal act results from it.
Actual Conflict of Interest:
An actual conflict of interest occurs when a person’s decision or action would compromise a duty to a party without
taking immediate appropriate action to eliminate the conflict. Examples include, but are not limited to:
•One party uses his or her position to obtain special advantage, benefit, or access to the other party’s time, services,
facilities, equipment, supplies, badge, uniform, prestige, or influence.
•One party receives or accepts money (or anything else of value) from another party or has equity or a financial
interest in or partial or whole ownership of the other party’s organization.
•One party is an employee, board member or family member of the other party.
Potential Conflict of Interest:
A potential conflict of interest may exist if a person has a relationship, affiliation, or other interest that could
create an inappropriate influence if the person is called on to make a decision or recommendation that would
affect one or more of those relationships, affiliations, or interests.
Organizational Conflict of Interest:
A conflict of interest can also occur with an organization that is a grant applicant in a competitive grant process or
grantee of a state agency. Organizational conflicts of interest occur when:
•A grantee’s objectivity in carrying out the grant is impaired or compromised due to competing duties or loyalties
•A grantee, potential grantee or grant applicant has an unfair competitive advantage through being furnished
unauthorized proprietary information or source selection information that is not available to all competitors
Exhibit D:
Minnesota Department of Natural Resources
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 105 of 356
Grant Contract Agreement for Legislatively named Municipality FY24: Updated July 2023 9
This section to be completed by Grantee’s Authorized Representative (AR):
I certify that we will maintain an adequate Conflict of Interest Policy, and throughout the term of our agreement, we
will monitor and report any actual, potential, individual, or organizational conflicts of interest to the State’s
Authorized Representative.
I also certify that I have read and understand the description of conflict of interest above and as of this date (check
one of the two boxes below):
I do not have any conflicts of interest relating to this project.
I have an actual, potential, individual, or organizational (indicate below) conflict of interest. The nature of the
conflict is as follows:
If at any time during the grant project I discover a conflict of interest, I will disclose that conflict immediately to the
State’s Authorized Representative.
Grantee AR’s Printed Name: Date:
Grantee AR’s Signature:
Organization Name: _____________________________________________________________
Project Name: __________________________________________________________________
Legal Citation: ML______, Chapter ______, Article ___, Section ___, Subdivision ____
---------------------------------------------------------------------------------------------------------------------------------
State AR’s Printed Name: ________________________________ Date:
State AR’s Signature: ____________________________________
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBEDocusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Docusign Envelope ID: B26CBFAD-2C86-83DB-839F-AF5EC1933CBE
Page 106 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kim Sommerland, Finance Director
Department: Finance
Subject: Public Hearing - Resolution 2026-061 Adopting the City's Capital
Improvement Plan and Authorizing the Issuance of CIP Bonds
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
The purpose of this hearing is to receive public input on the proposed Five-Year Capital
Improvement Plan and the potential bond financing to support it.
DISCUSSION:
City Staff have prepared a proposed Capital Improvement Plan (CIP) covering the period
of 2026 through 2030. In accordance with State law, the City Council is required to hold a
public hearing prior to adopting this plan. Required notice of the hearing was published in
the Dakota County Tribune on June 26, 2026, meeting the statutory requirement that
notice be provided at least 10 days, but no more than 28 days, before the hearing date.
It is important to note that this CIP in not the City's broader capital plan, which serves as a
foundational budgeting and planning tool across the organization. Instead, it is a separate,
statutorily required document specifically related to the potential issuance of General
Obligation Capital Improvement Plan (G.O. CIP) Bonds. State law requires cities to adopt a
separate, statutorily compliant plan which is narrower in scope. Adoption of this plan
provides the legal authority for the City to issue G.O. CIP Bonds should that option be
pursued in the future.
The purpose of the public hearing is to present the plan and receive public input. The plan
identifies Police City's the of expansion the renovation project, capital one and
Department facility, with an estimated cost not to exceed $25,000,000. The City's analysis
concludes that the improvements to the facility are necessary to meet current and future
service needs.
A representative from Northland Securities will outline the statutory process for the CIP and
for the potential issuance of corresponding bonds.
Following the public hearing, the City Council is asked to consider adoption of the five-
year plan and authorize the issuance of CIP bonds. Adoption does not obligate the City to
Page 107 of 356
undertake the project or issue debt. Rather, it establishes the authority needed to use G.O.
CIP Bonds in the future, should the Council determine that issuing such debt is appropriate.
BUDGET IMPACT:
Adoption of the Plan does not create an immediate budget impact. Future financial
effects will occur only if the City chooses to proceed with the identified projects or in issuing
G.O. CIP Bonds.
ACTION REQUESTED:
Approve Resolution 2026-061 Adopting the City's Capital Improvement Plan and
Authorizing the Issuance of CIP Bonds.
ATTACHMENTS:
Final CIP 2026-2030
2026-061 CIP Approving Resolution
Page 108 of 356
4899-4757-2920\1
2026 through 2030
Five-Year Capital Improvement Plan
Draft for Public Hearing: July 6, 2026
Prepared by:
The City of Farmington
&
Page 109 of 356
1
4899-4757-2920\1
CITY OF FARMINGTON
FIVE-YEAR CAPITAL IMPROVEMENT PLAN
2026 THROUGH 2030
I.INTRODUCTION
In 2003, the Minnesota State Legislature adopted a statute that generally exempts city and town general
obligation bonds issued under a capital improvement plan from the referendum requirements of Minnesota
Statutes, Section 475.58 usually required for city halls, public works, public safety facilities and libraries.
The statute on general obligation capital improvement plan bonds is Minnesota Statutes, Section 475.521
(the “Act”).
II.PURPOSE
Under the Act, a capital improvement is a major expenditure of City funds for the acquisition or betterment
to public lands, buildings, or other improvements used as a city hall, town hall, library, public safety, or
public works facility, which improvements must have a useful life of five years or more. Under the Act,
capital improvements do not include light rail transit or related activities, parks, road/bridges, administrative
buildings other than a city hall or town hall, or land for those facilities. A Capital Improvement Plan (“CIP”
or “Plan”) is a document designed to anticipate capital improvement expenditures and schedule them over
a five-year period so that they may be purchased in the most efficient and cost-effective method possible.
A CIP allows the matching of expenditures with anticipated income. As potential expenditures are
reviewed, the City considers the benefits, costs, alternatives and impact on operating expenditures.
Before issuing bonds under a CIP, the City must publish notice of and hold a public hearing on the CIP and
the proposed bonds and must then approve the CIP and authorize the issuance of the bonds by an affirmative
vote of three-fifths of the members of the governing board for a five-member body (two-thirds affirmative
vote for a governing body having more or less than five members) .
If a petition signed by voters equal to at least 5% of the votes cast in the last general City election requesting
a vote on the issuance of bonds is received by the municipal clerk within 30 days after the public hearing,
then the bonds may not be issued unless approved by the voters at an election.
The statute has established certain criteria that must be considered for each project to be undertaken
pursuant to this Plan (the “Project”). These criteria are:
1. Condition of the City’s existing infrastructure and projected need for repair or replacement
2. Demand for the improvement
3. Cost of the improvement
4. Availability of public resources
Page 110 of 356
2
4899-4757-2920\1
5. Level of overlapping debt
6. Cost/benefits of alternative uses of funds
7. Operating costs of the proposed improvements
8. Alternatives for providing services most efficiently through shared facilities with other
municipalities or local governments
The Plan is designed to be updated on an annual basis. In this manner, it becomes an ongoing fiscal
planning tool that continually anticipates future capital expenditures and funding sources.
III. PLAN SUMMARY
This Plan is intended to describe and analyze the need for the Project (as defined below) in accordance
with the Act. The City may modify this Plan from year to year as authorized by the Act.
Following is a summary of estimated expenditures for the Project:
2026 Expenditures
The City intends to complete a building renovation and expansion to it police station (the “Project”).
The Project, inclusive of capitalized interest and costs of financing, is anticipated to be no more than
$25,000,000
2027 Expenditures
None anticipated at this time.
2028 Expenditures
None anticipated at this time.
2029 Expenditures
None anticipated at this time.
2030 Expenditures
None anticipated at this time.
Analysis
The City has analyzed the eight points required by the Act for the Project on an individual basis and as
a whole. The findings are as follows:
1. Conditions of City Infrastructure, Including the Projected Need for Repair or Replacement
and Need for the Project
The City recently completed a space-needs analysis to assess current and future facility needs specific
to the Farmington Police Department (the “Department”). The Department’s current facility was
Page 111 of 356
3
4899-4757-2920\1
originally constructed in 2001 and has undergone only minor renovations since that time. The study
identified the need for the following improvements to the facility to allow the Department to safely and
efficiently continue providing essential public safety services to the Farmington community: new 30-
stall indoor garage for police fleet vehicle and equipment, additional office and workspace to
accommodate current and future staffing, additional locker room space, and improvements related to
staff wellness and support functions. Current conditions of facility necessitate the reorganization,
renovation, and expansion of the police facility.
2. Likely Demand for the Project
The new facility will allow safe and effective spaces in an open and engaging climate that encourages
flexibility, efficiency, and collaboration. In addition, the City will implement technology and
sustainability practices within the Project, where appropriate.
3. Estimated Cost of the Project
The estimated cost, including architectural/engineering, construction, contingency, legal and bonding,
of the Project to be undertaken in 2026 (the only Project for which bond authorization is requested) is
approximately $18,000,000 to $22,000,000, based on current project estimates. The improvements
planned for any given year of the Plan and may be constructed and bonded for in any other year of the
CIP, as long as the total planned improvements and maximum bonding authority do not change.
4. Available Public Resources
The City may choose to use reserves (cash) to finance a portion of the Project. Remaining project costs
will be financed with bond proceeds. Based on current project estimates, the City intends to issue bonds
in an amount of approximately $18,000,000 to $22,000,000; however, this document has been drafted
to provide the City with authority to bond for up to the total of: project cost based on actual bid amounts,
costs of issuance for the bonds, and capitalized interest, for a total not to exceed amount of $25,000,000.
5. Level of Overlapping Debt in the City
Indirect Debt∗
Issuer 2024/2025
Tax
Capacity
Value(1)
2024/2025
Tax
Capacity
Value
in City(1)
Percentage
Applicable
in City
Outstanding
General
Obligation
Debt(2)
Taxpayers’
Share
of Debt
ISD No. 192,
Farmington
$ 61,543,212
$36,312,965
59.00%
$63,250,000
$ 37,317,500
ISD No. 196,
Rosemount-Apple
Valley-Eagan
308,302,768
9,073
.00
437,075,000
12,863
Metropolitan Council 6,330,160,332 36,322,038 .57 12,100,000(3) 68,970
5,538,527,403 Metro Transit 36,322,038 .66 223,650,000 (4) 1,476,090
Total Indirect Debt: $ 38,875,423
Page 112 of 356
4
4899-4757-2920\1
6. Relative Benefits and Costs of Alternative Uses of the Funds
The proposed Project could potentially be financed through the issuance of lease-revenue bonds.
However, costs of issuance and overall debt service payments would be more expensive as lease-revenue
bonds are not general obligation debt and are therefore not as attractive to potential purchasers. The
issuance of general obligation capital improvement plan bonds represents the most cost-efficient method
of financing the proposed Project.
7. Operating Costs of the Proposed Project
Increased operating costs are expected to include utility services such as electricity, natural gas, water,
and sanitary sewer services, with other services representative of a public safety facility such as cleaning
services, repairs and maintenance, professional contracted services such as pest control, HVAC, security
system and fire alarms.
working diligently with their ArchThe City is itectural, Engineering, and Construction Management
partners to design and build facilities that will be energy efficient and lessen the impacts on climate to
the extent feasible and within budget.
8. Alternatives for Providing Services Most Efficiently Through Shared Facilities with Other
Municipalities or Local Government Units
Partnering with other municipalities or local units of government is not a feasible option. Locating the
Project outside of the City of Farmington would increase response and travel times, causing levels of
service and efficiencies to decrease.
IV. FINANCING THE CAPITAL IMPROVEMENT PLAN
The total amount of requested expenditures under the CIP is expected not-to-exceed $25,000,000. These
expenditures are to be funded, in part, by the sale of the City’s general obligation capital improvement
plan bonds in the maximum amount of $25,000,000. The City may choose to use reserve funds (cash) to
pay project costs in excess of net bond proceeds. It is the City’s intent to issue bonds in 2026 for the
Project listed under the 2026 Expenditures. However, the improvements planned for in any given year
may be constructed and bonded for in any other year of the CIP, as long as the total planned improvements
and maximum bonding authority do not change.
In the financing of the CIP, two statutory limitations apply. Under Minnesota Statutes, Chapter 475, as
amended, with few exceptions, a municipality cannot incur debt in excess of 3% of the assessor’s
Estimated Market Value (“EMV”) for the municipality. In the case of a municipality with a population
of 2,500 or less, the bonds are not subject to the net debt limits. The City’s estimated 2025 population
was 24,970. Therefore, the proposed general obligation capital improvement plan bonds to be issued in
the years 2026 through 2030 would be subject to the debt limit. The City’s 2026 EMV is $3,551,061,300.
3% of EMV = $106,531,839. As of August 2, 2026, the City has $8,040,000 in outstanding bond issues
applicable to the legal debt limit. Based on an issuance amount of $25,000,000 authorized under the Plan,
the proposed issuance is within the City’s debt limit.
Another limitation on bonding under the Act is that without referendum, the total amount that can be used
for principal and interest in any one year for CIP debt cannot exceed 0.16% of the EMV for the City. The
maximum annual principal and interest for the City is $5,681,698 based upon the City’s 2026 EMV
($3,551,061,300 x .0016).
Page 113 of 356
5
4899-4757-2920\1
Under this Plan, the City may issue up to $25,000,000 in general obligation capital improvement plan
bonds in the years 2026 through 2030 to finance the Project. The bonds are intended to be structured
with a term of 25 years. Principal payments will begin on February 1, 2028. The principal and interest
payments for the proposed bonds are estimated to be approximately $1,650,000 in the calendar years
2028 through 2052. This is based on the estimated par amount of $25,000,000 of bonds to be issued
pursuant to the CIP Plan, over a term of 25 years. Estimated debt service on the proposed bonds for the
Project to be financed in 2026 is within statutory limits.
Annual Review of the Capital Improvement Plan
The City Council, using the process outlined in this Plan, may review this Plan annually, taking into
account proposed expenditures, making priority decisions and seeking funding for those expenditures it
deems necessary for the City. If deemed appropriate, the City Council will prepare an update or
amendment to this Plan.
Page 114 of 356
CITY OF FARMINGTON
RESOLUTION NO. 2026-061
A RESOLUTION APPROVING THE 5-YEAR CAPITAL
IMPROVEMENT PLAN AND AUTHORIZING ISSUANCE AND
SALE OF GENERAL OBLIGATION CAPITAL IMPROVEMENT
PLAN BONDS
BE IT RESOLVED by the City Council (the “Council”) of the City of Farmington,
Minnesota (the “City”), as follows:
Section 1. Authorization and Recitals.
1.01. The City has published notice of its intent to hold a hearing on the adoption of its Five-Year
Capital Improvement Plan for 2026 through 2030 (the “Plan”) and the issuance of its
general obligation capital improvement plan bonds (the “CIP Bonds”) under Minnesota
Statutes, Chapter 475, at least ten (10) but not more than twenty-eight (28) days prior to the
date hereof, pursuant to and in accordance with Minnesota Statutes, Section 475.521 (the
“CIP Act”).
1.02. Pursuant to the CIP Act, on the date hereof, this Council conducted a public hearing on the
adoption of the Plan and the issuance of the CIP Bonds for the purpose of financing a portion
of the capital improvements identified in the Plan (the “CIP Project”), including renovation
and expansion of the City’s police department facility.
1.03. Notice of the public hearing was duly published as required by law in the Dakota County
Tribune, the official newspaper of the City, on June 26, 2026, which date is at least ten (10)
but no more than twenty-eight (28) days prior to the date hereof.
Section 2. CIP Findings and Approval.
2.01. In preparing the Plan, the Council has considered for the CIP Project and for the overall
Plan:
(1) the condition of the City’s existing infrastructure, including the projected need for
repair or replacement;
the likely demand for the improvement; (2)
the estimated cost of the improvement; (3)
the available public resources; (4)
the level of overlap(5) ping debt in the City;
the relative benefits and costs (6) of alternative uses of the funds;
(7) operating costs of the proposed improvements; and
(8) alternatives for providing services more efficiently through shared facilities with
other counties or local government units.
2.02. The Council hereby adopts the Plan and authorizes the issuance of CIP Bonds for the
purposes described herein in an amount not to exceed $25,000,000, contingent upon the satisfaction of the
conditions described in the CIP Act.
Page 115 of 356
Section 3. Bond Authorization; Purpose. It is hereby determined to be in the best interests of the
City to issue its CIP Bonds, in an amount not to exceed $25,000,000, as authorized pursuant to the CIP
Act and Chapter 475, for the purpose of financing the CIP Project, and funding costs of issuance of the
Bonds. The City hereby indicates its official intent to reimburse all of a portion of the costs of the CIP
Project from proceeds of the CIP Bonds issued on a tax-exempt basis.
Adopted by City Council of the City of Farmington, Minnesota this 6th day of July, 2026.
CITY OF FARMINGTON
By: _____________________________ ATTEST: _______________________________
Nicholas Lien, Mayor Melissa Geis, City Clerk
Page 116 of 356
REGULAR COUNCIL AGENDA MEMO
To: Mayor, Councilmembers and City Administrator
From: Kim Sommerland, Finance Director
Department: Finance
Subject: 2025 Annual Comprehensive Financial Report and Related Audit Reports
Meeting: Regular Council - Jul 06 2026
INTRODUCTION:
As required by Minnesota law, the City's financial records are audited by an independent
public accounting firm each year. The purpose of an independent audit is to provide
reasonable assurance that the City's financial statements are fairly and accurately
presented. The financial analyses and management reports prepared as part of the
annual audit continue to serve as an early warning system for identifying potential future
financial issues.
Upon completion of the audit, the auditors issue their opinion, review their management
report with the City Council, and the City releases an Annual Comprehensive Financial
Report (ACFR). This report provides the City Council, Staff, residents, investors, and other
stakeholders with important information regarding the City's operations and financial
position. The 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, management has established a comprehensive
internal framework that is designed both to protect the government’s assets from loss, theft
or misuse, and to ensure the preparation of financial statements in conformity with
Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls
should not outweigh their benefits, this framework 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. It is presented in a manner intended
to fairly reflect the financial position and results of operations of the City of Farmington,
based on the financial activity of its various funds. All necessary disclosures have been
Page 117 of 356
included to enable stakeholders to gain a full understanding of the City’s financial
condition and operations.
The City's financial records have been audited by LB Carlson, LLP. Based upon their audit
of the year ended December 31, 2025, the auditors issued an unmodified (‘clean’) opinion,
concluding that the City's financial statements are fairly presented in accordance with
GAAP. material no statements the contain indicates opinion unmodified An that
misstatements. A summary of the 2025 audit, including the auditor’s opinion and required
communications, is included in the attached Management Report.
Related to the annual audit, the City was also subject to a federal Single Audit for the year
ended December 31,2025. A Single Audit is required when a municipality expends $750,000
or more in federal awards during a fiscal year. Because the City exceeded this threshold in
2025, testing the issued and compliance the the performed auditors required
accompanying special purpose reports.
Bill Lauer, CPA of LB Carlson, will present the results of the 2025 audit, including the financial
overview and required communication, and respond to any questions of the City Council
regarding the same.
BUDGET IMPACT:
There is no direct budget impact. Indirectly the audit process supports strong financial
management practices, helps identify areas for improvement, and contributes to long-
term fiscal stability by reinforcing transparency and accountability.
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, 2025.
ATTACHMENTS:
2025 ACFR
2025 Farmington Mgmt Rpt
2025 Farmington Spec Purp
Page 118 of 356
2025
Annual Comprehensive
Financial Report
For the year ended December 31, 2025
City of Farmington
430 Third Street
Farmington, Minnesota 55024
www.farmingtonmn.gov
Rambling River Center
Rye Apartments Groundbreaking
Rye Apartments
Page 119 of 356
Page 120 of 356
CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
Annual Comprehensive
Financial Report
for the Year Ended
December 31, 2025
Lynn Gorski
City Administrator
Report Prepared by
Finance Department
Member of Government Finance Officers Association
of the United States and Canada
Page 121 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 122 of 356
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
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Program Aid and Grants Special Revenue Fund 26
Proprietary Funds
Statement of Net Position 27–28
Statement of Revenues, Expenses, and Changes in Fund Net Position 29–30
Statement of Cash Flows 31–32
Notes to Basic Financial Statements 33–68
REQUIRED SUPPLEMENTARY INFORMATION
PERA – General Employees Retirement Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 69
Schedule of City Contributions 69
PERA – Public Employees Police and Fire Fund
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability 70
Schedule of City Contributions 70
Farmington Fire Fighters’ Relief Association
Schedule of Changes in the Relief Association’s Net Pension Liability (Asset)
and Related Ratios 71
Schedule of City Contributions 72
Other Post-Employment Benefits Plan
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 73
Notes to Required Supplementary Information 74–83
CITY OF FARMINGTON
Table of Contents
Page 123 of 356
Page
SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds 84
Combining Balance Sheet 85
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 86
Nonmajor Special Revenue Funds 87
Combining Balance Sheet 88–89
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 90–91
Nonmajor Capital Projects Funds 92
Combining Balance Sheet 93–94
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 95–96
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
Budgetary Comparison Schedules 100
Private Capital Projects Fund 101
Utility Trunk Capital Projects Fund 102
Pavement Management Capital Projects Fund 103
Street Improvements Capital Projects Fund 104
Closed Bond Debt Service Fund 105
Nonmajor Special Revenue Funds
Economic Development 106
Special Taxing Areas 107
Public Safety Engagement 108
Park Improvement 109
Arena 110
Nonmajor Capital Projects Funds
Cable Communications 111
Capital Equipment 112
Recreation Facilities 113
Trail Improvements 114
Municipal Buildings 115
Emerald Ash Borer 116
Nonmajor Debt Service Fund
General Debt Service 117
Internal Service Funds 118
Combining Statement of Net Position 119
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 120
Combining Statement of Cash Flows 121
CITY OF FARMINGTON
Table of Contents (continued)
Page 124 of 356
Page
STATISTICAL SECTION (UNAUDITED)
STATISTICAL TABLES (UNAUDITED)122
Net Position by Component 123–124
Changes in Net Position 125–128
Fund Balances of Governmental Funds 129–130
Changes in Fund Balances of Governmental Funds 131–132
Tax Capacity Value and Estimated Actual Value of Taxable Property 133–134
Property Tax Rates 135
Principal Property Taxpayers 136
Property Tax Levies and Collections 137
Ratios of Outstanding Debt by Type 138–139
Ratios of General Bonded Debt Outstanding 140–141
Direct and Overlapping Governmental Activities Debt 142
Legal Debt Margin Information 143–144
Pledged Revenue Coverage 145
Demographic and Economic Statistics 146
Principal Employers 147
Full-Time Equivalent City Government Employees by Function 148–149
Operating Indicators by Function 150–151
Capital Asset Statistics by Function/Program 152–153
CITY OF FARMINGTON
Table of Contents (continued)
Page 125 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 126 of 356
INTRODUCTORY SECTION
Page 127 of 356
Page 128 of 356
-i-
June 23, 2026
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, 2025, is hereby submitted. This report continues the City’s
commitment to transparent, accurate, and high-quality financial reporting. It has been prepared by the
Finance Department in accordance with accounting principles generally accepted in the United States of
America (GAAP) as established by the Governmental Accounting Standards Board (GASB).
Responsibility for the accuracy, completeness, and fairness of the information presented, including all
disclosures, schedules and statistical tables, rests with city management. To provide a reasonable basis
for these representations, the City maintains a comprehensive internal control framework designed to
protect city assets, ensure reliable financial information, and support compliance with applicable laws,
regulations, and policies. Because the cost of internal controls should not exceed the anticipated benefits,
this framework provides reasonable, rather than absolute, assurance that the financial statements are
free from material misstatement.
As management, we assert that this ACFR is complete and reliable in all material respects and fairly
presents the City’s financial position and results of operations for the fiscal year ended December 31,
2025. All necessary disclosures have been included to assist readers in gaining an informed understanding
of the City’s financial condition.
The organization, form, and content of this report were prepared in accordance with the standards
established by the GASB, the Government Finance Officers Association (GFOA) of the United States and
Canada, the American Institute of Certified Public Accountants (AICPA), the Minnesota Office of the State
Auditor (OSA), and applicable city policies and procedures. These standards ensure that the ACFR is
presented in a manner that is both comprehensive and transparent, enabling readers to understand the
City’s financial position and results of operations.
The City’s financial statements have been audited by LB Carlson, LLP (LB Carlson), a certified public
accounting firm engaged by the City to perform an independent review for the fiscal year ended
December 31, 2025. The audit was conducted in accordance with generally accepted auditing standards
and Government Auditing Standards. These standards require the auditor to plan and perform the audit
to obtain reasonable assurance that the financial statements are free of material misstatement. The audit
includes 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. LB Carlson issued an unmodified opinion on the
City’s financial statements, indicating that the statements fairly present, in all material respects, the
financial position of the City and conform with GAAP.
This transmittal letter is designed to provide context for the accompanying financial statements and
should be read in conjunction with the Management’s Discussion and Analysis (MD&A), which
immediately follows the independent auditor’s report.
Page 129 of 356
-ii-
Profile of the Government
The City is located in Dakota County, approximately 30 miles southeast of downtown Minneapolis. The
City continues to blend its agricultural heritage with steady suburban growth. According to the
2010 Census, the City’s population was 21,086; today, it is estimated at 24,361. 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 government, consisting of the mayor and four other
council members that are 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 provides policy direction
while the City Administrator oversees daily operations, implements policy decisions and manages City
staff.
The City provides a broad range of municipal services to support both residents and businesses. These
include essential services such as police and fire protection, emergency medical services, infrastructure
maintenance, planning and zoning, and several enterprise operations such as water, sewer, stormwater,
street lighting, and municipal liquor operations. In addition, the City fosters community well-being
through its recreational and cultural programs and provides support for key community amenities, such
as the senior center and ice arena that enhance the 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
The City’s economy in 2025 remained stable with continued residential and commercial development
activity. Local employment is supported by Independent School District No. 192, federal and regional
employers, manufacturing firms, service providers, and small businesses. Community vitality remains
strong, supported by steady construction activity and ongoing investment in both public and private
infrastructure.
Residential development continued with projects such as the Rye Apartments and multiple subdivision
additions progressing through approvals during 2025. Commercial and industrial projects likewise
advanced through various planning and development processes, reflecting ongoing interest in the
community as a place to invest and grow.
The community’s traditional downtown, accessible location, schools, parks, and community events
continue to contribute to the City’s attractiveness to residents and businesses.
Long-Term Planning
The City Council annually reviews strategic priorities that guide organizational focus and resource
allocation. These priorities support the City’s long-range vision and emphasize community engagement,
infrastructure stewardship, economic development, and organizational excellence. In 2025, the City
continued advancing planning efforts to ensure that services, infrastructure, and financial capacity
remained aligned with projected growth and community expectations.
Page 130 of 356
-iii-
As part of its ongoing commitment to support responsible development, the City continues to promote
procedures that create a more developer-friendly environment. These improvements are designed to
streamline review processes, support high-quality development, and encourage reinvestment in areas
guided by the City’s long-term land use vision. Efforts to maintain a predictable and transparent
development review framework help support the City’s economic growth and tax base diversification
goals.
The City also continued work related to the 2040 Comprehensive Plan amendment and associated
visioning efforts. This ongoing initiative focuses on updating the City’s long-range land use direction,
including identifying opportunities for mixed-use commercial and industrial areas, strengthening
transportation corridors, and supporting strategic growth in locations served, or easily served, by existing
infrastructure. These efforts remain essential for fostering a balanced tax base, supporting employment
opportunities, and maintaining long-term economic resilience.
Long-priority a remained planning capital range therefined and updated City The 2025. in
2026–2030 Capital Improvement Plan, which outlines anticipated investments in streets, utilities, parks,
equipment, and public facilities, and supports proactive, coordinated decision-making. This process helps
the City balance service needs with financial sustainability and ensures that major capital projects are
integrated into multi-year budget and funding strategies.
In addition to capital planning, the City continued work on several planning initiatives focusing on
transportation, utilities, stormwater management, and natural resources. These studies help ensure that
infrastructure systems can support existing needs and future development, while also maintaining
community assets and environmental stewardship.
Taken together, these long-term planning efforts reflect the City’s commitment to thoughtful growth
management, strategic capital investment, and sustainable financial planning which are key components
of maintaining strong fiscal health and long-term community vitality.
Major Initiatives
In 2025, the City continued to prioritize planning and investment efforts that support community vitality,
high-quality services, and long-term financial stability. A major accomplishment during the year was the
completion of the renovation of the Rambling River Center. The enhanced facility now offers improved
accessibility, functionality, and expanded programming capacity for residents.
The City also saw the completion of the Rye Apartments, adding new multi-family housing options within
the community and contributing to the continued diversification of the local housing stock. In addition,
several subdivision phases, development contracts, and planned unit developments advanced through
the City Council during the year, reflecting consistent reinvestment and supporting long-term growth.
Infrastructure improvements remained a significant priority. Throughout 2025, the City advanced and
executed numerous street and utility projects, including street reconstruction and rehabilitation efforts,
mill and overlay work, pavement rejuvenation, stormwater and drainage enhancements, water system
maintenance, and well abandonment projects. These initiatives ensure the continued reliability of core
public systems and maintain the City’s strong infrastructure foundation.
Page 131 of 356
-iv-
The City’s municipal liquor operations also continued to meaningfully support the community’s financial
stability. Since inception, the Liquor Fund has contributed more than $2,114,000 to support city services,
parks and recreation, public safety, and community programs. These revenues help reduce the amount
that would otherwise need to be funded through the property tax levy, supporting city services and
strengthening the City’s overall long-term fiscal position.
Relevant Financial Policies
The City’s financial management practices continue to be guided by formal policies that promote stability,
transparency, and long-term sustainability. The City strives to maintain an unassigned General Fund
balance of 40 to 50 percent of subsequent year’s budgeted expenditures to ensure adequate cash flow,
support operations during periods of revenue fluctuation, and provide flexibility for unforeseen needs.
The City’s debt policy restricts the use of long-term borrowing to capital equipment, public facilities, or
infrastructure projects with a useful life of more than five years and cannot be financed from current
revenues. In accordance with this policy, the City aims to retire at least 50 percent of outstanding principal
within 10 years, helping manage long-term obligations and reduce interest costs.
The City’s investment policy prioritizes safety, liquidity, and yield, in that order. Idle cash is invested in
U.S. treasury and agency securities, high-quality municipal obligations, certificates of deposit, and money
market instruments that comply with state statutes and city policy. This conservative approach supports
achieving the highest investment return with limited risk and provides sufficient liquidity for the City’s
daily operations.
These financial policies form an essential foundation for maintaining the City’s strong financial position
and support responsible planning for future capital needs, especially as the City prepares for anticipated
debt issuance in 2026.
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, 2024. This is the 16th year
the City has received this prestigious award. This award represents the highest form of recognition for
governmental financial reporting and reflects the City’s commitment to producing a transparent,
well-organized, and high-quality ACFR.
A Certificate of Achievement is valid for a period of one year only. The City believes that the 2025 ACFR
continues to meet the program’s requirements and is submitting it to the GFOA for consideration for
another certificate.
Page 132 of 356
-v-
Acknowledgments
The preparation of this report would not have been possible without the dedicated efforts of the entire
Finance Department and the support of staff throughout the organization. Their professionalism,
attention to detail and commitment to responsible financial management have been essential to the
successful completion of this annual report. We also extend our appreciation to all city employees for
their continued dedication to high-quality service and prudent stewardship of public resources
throughout the year.
Credit is also due to the Mayor and City Council for their leadership and ongoing support of strong financial
policies, long-term planning, and sound management practices. Their guidance and commitment to the
community’s financial health help position the City for continued stability and success.
Respectively Submitted,
_____
Lynn Gorski, City Administrator
Kim Sommerland, Finance Director
Page 133 of 356
-vi-Page 134 of 356
Residents
City Council
City
Administrator
Assistant City
Administrator
Administration
Human
Resources
Communications
Liquor
Operations
Community &
Economic
Development
Building
Inspections
Planning and
Zoning
Finance
Utility Billing
Fire Information
Technology Public Works
Engineering
Streets
Water
Sanitary Sewer
Surface Water
Parks &
Recreation
Facilities
Programming
Police
-vii-
Page 135 of 356
-viii-
Term Expires
Joshua Hoyt Mayor December 31, 2028
Holly Bernatz Councilmember December 31, 2026
Jacob Cordes Councilmember December 31, 2028
Nick Lien Councilmember December 31, 2026
Steve Wilson Councilmember December 31, 2028
Lynn Gorski City Administrator
David Chanski Assistant City Administrator/Human Resources Director
Peter Gilbertson Information Technology Director
Deanna Kuennen Community and Economic Development Director
Kellee Omlid Parks and Recreation Director
John Powell Public Works Director/City Engineer
Matthew Price Fire Chief
Nate Siem Police Chief
Kim Sommerland Finance Director
EXECUTIVE STAFF
ELECTED OFFICIALS
CITY OF FARMINGTON
Elected Officials and Executive Staff
December 31, 2025
Page 136 of 356
FINANCIAL SECTION
Page 137 of 356
Page 138 of 356
-1-
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, 2025, 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 5, and the respective
changes in financial position, and, where applicable, cash flows thereof, and the budgetary comparisons
for the General Fund and Program Aid and Grants Special Revenue 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)
Page 139 of 356
-2-
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)
Page 140 of 356
-3-
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 23, 2026,
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 23, 2026
Page 141 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 142 of 356
CITY OF FARMINGTON
Management’s Discussion and Analysis
Year Ended December 31, 2025
-4-
As management of the City of Farmington, Minnesota (City), we present the following narrative overview
and analysis of the City’s financial performance for the fiscal year ended December 31, 2025. The intent of
this section, Management’s Discussion and Analysis (MD&A), is to provide readers with both context and
analytical insight into the City’s financial activities and position. It should be read in conjunction with the
accompanying financial statements and notes, as well as the Letter of Transmittal.
FINANCIAL HIGHLIGHTS
• The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows
by $157,080,207 (net position) at the close of the most recent fiscal year. Of this amount,
$49,918,490 (unrestricted net position) may be used to meet the government’s ongoing obligation
to citizens and creditors.
• The City’s total net position increased by $7,422,090 from fiscal 2025 activity. Governmental
activities accounted for $5,627,793 of this increase, while business-type activities contributed
$1,794,297.
• Governmental funds reported combined ending fund balances of $41,536,254, an increase of
$4,509,017. Approximately 82 percent of this amount, or $34,048,802, is available for use within
the City’s constraints and policies.
• The General Fund’s unassigned fund balance at year-end was $12,970,921, equal to 69 percent of
2026 budgeted General Fund expenditures and transfers out.
• Capital assets (net of depreciation/amortization) totaled $106,225,360, reflecting continued
investment in roadway, utility, and facility infrastructure.
• Outstanding debt, including bonds and lease liabilities, increased by $1,745,487, or 13 percent,
primarily due to new street reconstruction bonds issued during the year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This MD&A is intended to serve as an introduction to the City’s basic financial statements which consist
of three primary components: 1) government-wide financial statements, 2) fund financial statements, and
3) notes to basic financial statements. This report also includes supplementary information in addition to
the basic financial statements.
These financial statements include not only the City itself (the primary government) but also the Farmington
Economic Development Authority (EDA). The EDA is presented as a blended component unit in the City’s
financial statements in accordance with accounting principles generally accepted in the United States of
America.
Page 143 of 356
-5-
Government-Wide Financial Statements – The government-wide financial statements 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 the City’s assets, liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, changes in net
position may serve as an indicator of whether the City’s financial position is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the
year. All changes in net position are reported when the underlying event giving rise to the change occurs,
regardless of the timing of cash flows. As a result, revenues and expenses reported in this statement may
relate to cash flows that occur in future years. Examples include uncollected property taxes and earned, but
unused leave time.
Both government-wide statements distinguish functions that are primarily supported by taxes and
intergovernmental revenues (governmental activities) from those that recover a significant portion of their
costs through user fees and charges (business-type activities). City governmental activities include general
government, public safety, public works, parks and recreation, and economic development. Business-type
activities include liquor operations and the City’s sewer, storm water, water, and street light utility
operations.
Fund Financial Statements – A fund is a grouping of related accounts used to maintain control over
resources that have been segregated for specific activities or objectives. Like other state and local
governments, the City uses fund accounting to demonstrate compliance with finance-related legal
requirements. The City’s funds fall 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 statements, governmental fund statements emphasize near-term inflows, outflows, and
balances of spendable resources. This perspective is helpful for assessing the City’s short -term financing
needs and its ability to meet immediate obligations.
Because governmental fund information focuses on near-term financing, it differs from the more
comprehensive, long-term view reflected in the government-wide statements. To help readers understand
these differences, both the governmental funds Balance Sheet and the Statement of Revenues, Expenditures,
and Changes in Fund Balances include reconciliations to the corresponding government-wide statements.
The City maintains numerous individual governmental funds. Information is presented separately for each
of the City’s seven major governmental funds:
• General Fund
• Program Aid and Grants Special Revenue Fund
• Private Capital Projects Fund
• Utility Trunk Capital Projects Fund
• Pavement Management Capital Projects Fund
• Street Improvements Capital Projects Fund
• Closed Bond Debt Service Fund
All other governmental funds are combined into a single aggregated presentation. Individual data for each
nonmajor governmental fund is included in the combining statements provided elsewhere in this report.
The City adopts annual appropriated budgets for the General Fund, most special revenue funds, the debt
service funds, and most capital projects funds. Budgetary comparison statements or schedules are presented
to demonstrate compliance with these budgets.
Page 144 of 356
-6-
Proprietary Funds – The City maintains five enterprise funds and four internal service funds within its
proprietary fund type. Enterprise funds account for the same activities reported as business -type activities
in the government-wide statements, including the City’s liquor operations and its sewer, storm water,
water, and street light utility operations. Proprietary fund statements provide the same type of information
as the government-wide statements, but in more detail. All enterprise funds are presented as major funds.
Internal service funds are used to accumulate and allocate costs internally across the City’s various
functions. These funds support employee benefits, property and liability insurance, fleet maintenance, and
information technology services. Because these services primarily benefit governmental rather than
business-type activities, the internal service fund results are included within governmental activities at the
government-wide level. Combining statements for the internal service funds appear elsewhere in this
report.
Notes to Basic Financial Statements – The notes provide essential detail and context for understanding
the government-wide and fund financial statements and are considered an integral part of the basic financial
statements.
Other Information – In addition to the basic financial statements and notes, the financial section includes
required supplementary information, as well as combining and individual fund statements and schedules
for nonmajor governmental funds, internal service funds, and budgetary comparisons. A statistical section
is also included to provide historical, demographic, and economic context for the City’s finances and
operations.
Page 145 of 356
-7-
GOVERNMENT-WIDE FINANCIAL ANALYSIS
An assessment of the City’s financial position begins with an examination of the government -wide
Statement of Net Position and the Statement of Activities. These statements provide both the City’s net
position and changes in net position. It should be noted that in addition to financial activity, the City’s
financial position may be influenced by nonfinancial factors such as economic conditions, population
growth, and changes in regulatory requirements.
As noted earlier, net position is a useful indicator of financial health over time. At December 31, 2025, the
City’s assets and deferred outflows exceeded liabilities and deferred inflows by $157,080,207.
City of Farmington’s Net Position
2025 2024 2025 2024 2025 2024
Current and other assets 56,979,724$ 50,923,092$ 27,484,963$ 25,200,815$ 84,464,687$ 76,123,907$
Capital assets, net 55,052,353 51,760,419 51,173,007 51,418,896 106,225,360 103,179,315
Total assets 112,032,077$ 102,683,511$ 78,657,970$ 76,619,711$ 190,690,047$ 179,303,222$
Deferred outflows of resources 4,665,120$ 6,464,504$ 70,213$ 51,512$ 4,735,333$ 6,516,016$
Current liabilities 6,039,912$ 5,052,007$ 934,660$ 984,340$ 6,974,572$ 6,036,347$
Long-term liabilities 22,218,898 19,466,700 1,865,062 1,526,519 24,083,960 20,993,219
Total liabilities 28,258,810$ 24,518,707$ 2,799,722$ 2,510,859$ 31,058,532$ 27,029,566$
Deferred inflows of resources 7,142,409$ 8,961,123$ 144,232$ 170,432$ 7,286,641$ 9,131,555$
Net position
Net investment in capital assets 43,468,579$ 41,670,431$ 49,785,378$ 50,255,385$ 93,253,957$ 91,925,816$
Restricted 11,446,272 9,542,246 2,461,488 2,461,488 13,907,760 12,003,734
Unrestricted 26,381,127 24,455,508 23,537,363 21,273,059 49,918,490 45,728,567
Total net position 81,295,978$ 75,668,185$ 75,784,229$ 73,989,932$ 157,080,207$ 149,658,117$
Governmental Activities Business-Type Activities Total
The largest portion of the City’s net position, $93,253,957, or 59 percent, represents its investment in capital
assets (e.g., land, buildings and equipment), net of related debt issued to acquire the assets. These assets are
used to provide services to residents and are not available for future spending. Although the City reports its
capital assets net of accumulated depreciation and related debt, the resources required to repay this debt
must come from other sources, as the capital assets themselves cannot be used to liquidate liabilities.
Restricted net position totaled $13,907,760, or 9 percent of total net position, and reflects resources subject
to external restrictions on how they may be used.
Unrestricted net position totaled $49,918,490, representing 32 percent of total net position, and is available
to meet the City’s ongoing operational and financial obligations. While unrestricted, portions of these
resources may be subject to internal commitments or limitations adopted by the City.
Page 146 of 356
-8-
CHANGE IN NET POSITION
The City’s total net position increased by $7,422,090, or 5 percent, during 2025. Governmental activities
contributed an increase of $5,627,793, and business-type activities contributed $1,794,297.
City of Farmington’s Change in Net Position
2025 2024 2025 2024 2025 2024
Revenues
Charges for services 4,625,164$ 5,856,007$ 15,483,595$ 14,287,985$ 20,108,759$ 20,143,992$
Operating grants and contributions 1,674,937 1,191,276 7,258 16,485 1,682,195 1,207,761
Capital grants and contributions 2,082,374 3,165,413 – 2,573,529 2,082,374 5,738,942
Property taxes 17,391,710 16,210,861 – – 17,391,710 16,210,861
Franchise taxes 228,334 179,503 – – 228,334 179,503
Unrestricted grants 345,293 1,117,153 – – 345,293 1,117,153
Investment earnings 2,146,682 1,492,084 1,184,189 833,016 3,330,871 2,325,100
Gain on sale of capital assets – 88,177 – 41,040 – 129,217
Other general revenues 6,453 – – – 6,453 –
Total revenues 28,500,947 29,300,474 16,675,042 17,752,055 45,175,989 47,052,529
Expenses
General government 5,025,813 5,759,500 – – 5,025,813 5,759,500
Public safety 10,216,219 8,592,752 – – 10,216,219 8,592,752
Public works 6,665,255 4,625,171 – – 6,665,255 4,625,171
Parks and recreation 2,632,572 2,715,378 – – 2,632,572 2,715,378
Economic development 193,567 137,901 – – 193,567 137,901
Interest and fiscal charges 227,449 327,204 – – 227,449 327,204
Liquor operations – – 6,418,634 6,359,443 6,418,634 6,359,443
Sewer – – 3,158,763 3,241,040 3,158,763 3,241,040
Solid waste – – – – – –
Storm water – – 969,117 680,636 969,117 680,636
Water – – 2,013,156 2,032,420 2,013,156 2,032,420
Street light – – 233,354 198,028 233,354 198,028
Total expenses 24,960,875 22,157,906 12,793,024 12,511,567 37,753,899 34,669,473
Change in net position before transfers 3,540,072 7,142,568 3,882,018 5,240,488 7,422,090 12,383,056
Transfers 2,087,721 3,549,936 (2,087,721) (3,549,936) – –
Change in net position 5,627,793 10,692,504 1,794,297 1,690,552 7,422,090 12,383,056
Net position – beginning 75,668,185 64,975,681 73,989,932 72,299,380 149,658,117 137,275,061
Net position – ending 81,295,978$ 75,668,185$ 75,784,229$ 73,989,932$ 157,080,207$ 149,658,117$
Governmental Activities Business-Type Activities Total
Governmental Activities – Governmental activities net position increased by $5,627,793. Revenues
decreased by $799,527 compared to the prior year, primarily due to lower building permit and
development-related fees. Development activity in 2025 remained strong, but it did not match the
exceptionally high level experienced in 2024, which resulted in lower permit-related revenues. In addition,
a decrease in unrestricted grants resulting from the use of available federal funds contributed to a $799,527
decline in total governmental activities revenues compared to the previous year. These decreases were
partially offset by an increase in the City’s certified property tax levy, which reflected both rate changes
and new construction, and by higher investment earnings attributable to favorable interest rate conditions.
Expenses increased by $2,802,969, largely within public safety and public works. The increase was driven
by contractual wage adjustments, cost-of-living increases, and the filling of previously vacant positions,
particularly within the Police Department. Expenses also rose due to inflationary increases in employee
benefits, utilities, supplies, and purchased services, along with higher grant-funded spending.
Business-Type Activities – Business-type activities net position increased by $1,794,297. Charges for
services grew, primarily within the water and sewer utilities due to increased rates and consumption.
Investment earnings also improved. However, total revenues decreased by $1,077,013, primarily due to a
reduction in capital contributions. In the prior year, the City recorded higher capital contributions associated
with street reconstruction projects in the capital project funds, which were partially funded by the utility
funds. These contributions were lower in the current year, resulting in the overall decline. Expenses
increased by $281,457, primarily due to increased storm water maintenance activity, including vegetation
and debris management, along with other routine cost increases across the utility operations.
Page 147 of 356
-9-
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
16%
Property Taxes
61%
Franchise Taxes
1%
Operating Grants
and Contributions
6%
Capital Grants and
Contributions
7%
Unrestricted Grants
1%Other
8%
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 $1,332,010 $2,156,091 $3,653,244 $996,327 $244,803 $–
Expenses $5,025,813 $10,216,219 $6,665,255 $2,632,572 $193,567 $227,449
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
Page 148 of 356
-10-
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
93%
Capital Grants and
Contributions
<1%
Other
7%
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 $6,918,271 $3,930,807 $1,485,547 $2,890,735 $265,493
Expenses $6,418,634 $3,158,763 $969,117 $2,013,156 $233,354
$–
$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
Page 149 of 356
-11-
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 resources that are currently available. This information is useful in
assessing the City’s short-term financing requirements. In particular, unassigned fund balance serves as an
important measure of the resources available for spending at the end of the fiscal year.
Governmental funds ended the year with combined fund balances of $41,536,254, a 12 percent increase of
$4,509,017 from 2025 activity. The increase reflects development fees for park and utility infrastructure,
unspent bond proceeds, transfers from enterprise funds, and positive operating results in the General Fund.
Committed, assigned, and unassigned fund balances available for spending at the City’s discretion totaled
$34,048,802. The remainder of the fund balance is either not available for spending or is available but
restricted for specific purposes. Amounts are nonspendable for prepaids ($2,756) or restricted for economic
development capital street or park improvements programs safety public ($783,852), ($80,830),
($3,629,106), future cable communication expenditures ($240,485), program aid or grants ($564,146), and
debt service ($2,186,277).
Financial highlights for the City’s major governmental funds are as follows:
General Fund – The General Fund is the City’s primary operating fund. Its unassigned fund balance
at year-end was $12,970,921, equal to 69 percent of 2026 budgeted expenditures and transfers out. This
ratio has steadily increased since 2011 due to long-term financial planning, budget discipline, and
community growth. The City’s fund balance policy establishes a target range of 40 to 50 percent of the
subsequent year’s budget, and the 2025 balance exceeds the minimum guideline.
General Fund balance increased $1,614,527 in 2025. Revenues exceeded expectations for licenses and
permits, revenue, developmentintergovernmental -investment and services, for related charges
earnings. Revenues were $1,598,299 higher than 2024, driven primarily by levy growth and federal
funding utilized during the year. Expenditures increased $1,805,093, largely due to personnel costs in
public safety and public works.
Program Aid and Grants Special Revenue Fund – Fund balance decreased $242,672, primarily due
to a transfer supporting public safety capital equipment purchased in 2025.
Private Capital Projects Fund – Fund balance decreased $231,373, reflecting the final transfer that
closed the fund.
Utility Trunk Capital Projects Fund – Fund balance increased $1,529,579, driven by developer trunk
fees and investment earnings exceeding capital expenditures.
Pavement Management Capital Projects Fund – Fund balance increased $230,552, largely
attributable to investment income, with charges for services and transfers in providing sufficient
resources to finance fiscal 2025 expenditures.
Street Improvements Capital Projects Fund – Fund balance increased $1,692,159, reflecting new
street improvement bonds issued in 2025.
Closed Bond Debt Service Fund – Fund balance increased $90,559, mainly due to the collection of
outstanding special assessments.
Page 150 of 356
-12-
Total fund balances in the City's nonmajor governmental funds decreased $174,314 in fiscal 2025. Notable
activity in these funds are as follows:
Park Improvement Special Revenue Fund – Fund balance increased by $513,922, primarily due to
higher park dedication fee collections and an annual transfer from the Liquor Operations Enterprise
Fund.
Recreation Facilities Capital Projects Fund – Project costs associated with the City’s 2024A G.O.
Tax Abatement Bonds, issued to finance improvements to the Rambling River Center, resulted in a
$1,546,011 decrease in fund balance during 2025.
Emerald Ash Borer Capital Projects Fund – Expenditures related to emerald ash borer mitigation
efforts, combined with transfers out that exceeded revenues from grants and investment earnings,
resulted in a $313,204 decrease in fund balance.
Proprietary Funds – The City’s proprietary funds provide the same type of information presented in the
government-wide financial statements, but in greater detail. Financial highlights for the significant changes
in the City’s proprietary funds are summarized below:
Liquor Operations Fund – The City annually evaluates the financial performance of its liquor
operations. After reserving funds for operations and administrative transfers, the remaining resources
are allocated to community investment and future capital improvements. Liquor operati ons generated
income before transfers of $614,650, a decrease of $84,847 from the prior year, primarily due to lower
sales and higher personnel costs. Net position at year-end totaled $3,277,265, an increase of $356,844.
The cash position for both stores increased from $2,852,168 on December 31, 2024, to $3,506,590 on
December 31, 2025.
Sewer Operations Fund – Net position decreased by $61,936, primarily due to transfers totaling
$1,074,007 to support governmental fund activity. Charges for services increased approximately
20 percent from the prior year as a result of higher rates and usage, while operating expenses decreased
by 3 percent, largely due to lower disposal charges. The City has implemented a series of rate
adjustments designed to ensure sufficient funding for operations and depreciation. The fund continues
to maintain a strong unrestricted net position of $3,656,772.
Storm Water Fund – Net position decreased by $138,164, primarily due to transfers totaling
$1,278,852 to support governmental fund activity. Charges for services were sufficient to cover
operating expenses, resulting in operating income of $530,870 for the year. The fund als o received
$440,163 in capital infrastructure asset contributions associated with street improvement projects. It
continues to maintain a significant unrestricted net position of $3,475,501.
Water Fund – Net position increased by $1,578,552, driven primarily by a 15 percent increase in
charges for services resulting from higher rates and consumption. Improved investment earnings and
capital infrastructure asset contributions of $1,111,902 related to street improvement projects also
contributed to the overall increase. The fund maintains a substantial unrestricted net position of
$12,786,303.
Street Light Fund – The Street Light Fund, established in 2010, ensures that all properties within the
City, including tax-exempt properties, contribute to the cost of street lighting. The fund reported a
positive net position of $513,058 at year-end, an increase of $59,001 from the prior year.
Page 151 of 356
-13-
GENERAL FUND BUDGETARY HIGHLIGHTS
The City adopted a balanced original budget for 2025. Amendments increased intergovernmental revenues
and transfers in by $200,000 and increased expenditures and transfers out by $206,585.
Actual revenues were $1,513,767 above budget. Major variances included:
• Licenses and permits exceeded the conservative budget by $255,448, primarily due to several
high-valuation building permits issued during the year.
• Intergovernmental revenues were $383,820 above budget, largely as a result of miscellaneous state
grants that surpassed expectations.
• Charges for services were $106,817 higher than budget, driven mainly by stronger-than-anticipated
engineering service revenues.
• Investment earnings exceeded budget by $548,285, primarily due to improvements in the fair value
of the City’s investment portfolio. Because the City generally intends to hold investments to
maturity, these market value gains are expected to fluctuate prior to maturity.
• Other revenue sources exceeded budget by $186,087, mainly due to reimbursements received for
tenant improvements under an amended lease agreement for space in City Hall.
Expenditures were $274,479 under budget, primarily in public safety and public works due to vacancies,
staffing adjustments across departments after the budget was adopted, and lower-than-anticipated materials
and supply costs.
Page 152 of 356
-14-
CAPITAL ASSETS AND LONG-TERM DEBT
Capital Assets – The City’s investment in capital assets totaled $106,225,360, net of accumulated
depreciation and amortization as of December 31, 2025. This includes land, buildings, park facilities,
streets, bridges, utility systems, vehicles, equipment, and lease assets. Capital assets increased 3 percent in
2025, reflecting continued investment in street and utility infrastructure and capitalized lease additions.
City of Farmington’s Capital Assets
2025 2024 2025 2024 2025 2024
Land and easements 1,658,302$ 1,658,302$ 498,376$ 498,376$ 2,156,678$ 2,156,678$
Construction in progress 2,127,136 272,806 1,669,365 – 3,796,501 272,806
Buildings 14,755,060 12,430,592 718,118 922,807 15,473,178 13,353,399
Improvements other than buildings 3,050,838 2,218,584 1,180,124 1,285,987 4,230,962 3,504,571
Machinery and equipment 3,985,731 3,980,369 855,857 961,995 4,841,588 4,942,364
Infrastructure 28,821,963 30,462,565 – – 28,821,963 30,462,565
Collection/distribution systems – – 45,306,018 47,095,883 45,306,018 47,095,883
Leases – vehicles 653,323 737,201 – – 653,323 737,201
Leases – buildings – – 945,149 653,848 945,149 653,848
Total (net of depreciation)55,052,353$ 51,760,419$ 51,173,007$ 51,418,896$ 106,225,360$ 103,179,315$
Governmental Activities Business-Type Activities Total
Most 2025 capital asset additions related to ongoing street and utility projects. More information is provided
in Note 5 of the notes to the 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 $15,016,623. All of the City’s bonded debt is general obligation debt, backed by the full
faith and credit of the government. The City’s credit rating of “AA+” from Standard & Poor’s was affirmed
in 2025. During 2025, bond and certificate principal repayments totaled $1,425,000, and the City issued
$2,950,000 in new bonds. At year-end, the City has long-term liabilities of $1,143,051 for compensated
absences, $4,827,799 for net pension liabilities, and $3,096,487 for other post-employment benefits.
City of Farmington’s Outstanding Long-Term Debt
2025 2024 2025 2024 2025 2024
G.O. improvement bonds 8,515,000$ 6,115,000$ –$ –$ 8,515,000$ 6,115,000$
G.O. capital improvement bonds 1,830,000 2,405,000 – – 1,830,000 2,405,000
G.O. tax abatement bonds 1,695,000 1,695,000 – – 1,695,000 1,695,000
G.O. equipment certificates 245,000 475,000 – – 245,000 475,000
G.O. revenue bonds – – 325,000 395,000 325,000 395,000
Unamortized premiums 661,679 663,305 31,385 41,297 693,064 704,602
Lease liabilities 682,315 754,320 1,031,244 727,214 1,713,559 1,481,534
Total debt outstanding 13,628,994$ 12,107,625$ 1,387,629$ 1,163,511$ 15,016,623$ 13,271,136$
Governmental Activities Business-Type Activities Total
Minnesota Statutes limit the amount of general obligation debt a city may issue to 3 percent of its total
estimated market value. The City’s debt limit for 2025 was $91,520,359, which is substantially higher than
the City’s outstanding general obligation debt. Additional information regarding the City’s long-term debt
can be found in Note 6 of the notes to the basic financial statements.
Page 153 of 356
-15-
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City increased its General Fund operating levy for 2026 by $437,860. The final net tax levy of
$15,321,211 represents a 2.9 percent increase over the 2025 levy. Of the total budgeted General Fund
revenues for 2026, including transfers in, 78.9 percent is derived from property taxes, which includes
$2.4 million in fiscal disparities revenue. The remaining revenue estimates reflect anticipated development
activity, expected increases in state aid and service charges, and adjustments to internal transfers.
Projected General Fund expenditures for 2026, including transfers out, total $18,838,494, a 4.9 percent
decrease compared to the 2025 budget. The 2026 budget continues to support core municipal services such
as police and fire protection, street maintenance and snow removal, parks and recreation programming, and
general administration. It also maintains long-term funding commitments for street seal coating, building
and trail maintenance, and the scheduled replacement of public safety equipment.
The City’s 2026 Capital Improvement Plan includes continued investments in police vehicles and public
safety equipment, scheduled replacements of public works and parks equipment, and ongoing infrastructure
improvements to support operational needs and community growth.
The City remains committed to its four strategic priorities: fostering business growth, enhancing community
engagement, supporting critical infrastructure, and strengthening employee engagement. These priorities
guide the City’s efforts to provide high-quality services, meet the needs of current residents, and encourage
development that expands the tax base and promotes long-term community vitality.
REQUESTS FOR INFORMATION
This ACFR is intended to provide a general overview of the City’s finances for all interested parties.
Questions regarding the information presented in this report, or requests for additional financial details,
should be directed to the Finance Director, City of Farmington, 430 Third Street, Farmington,
Minnesota 55024. Email inquiries may be sent to ksommerland@farmingtonmn.gov.
Page 154 of 356
BASIC FINANCIAL STATEMENTS
Page 155 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 156 of 356
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments 47,341,744$ 21,895,237$ 69,236,981$
Receivables
Accounts 318,368 2,076,374 2,394,742
Interest 242,604 111,505 354,109
Property taxes 1,407,166 – 1,407,166
Special assessments 2,073,739 312,423 2,386,162
Due from other governments 2,965,944 1,466 2,967,410
Lease 725,157 – 725,157
Inventory – 626,180 626,180
Prepaid items 15,641 290 15,931
Restricted assets – temporarily restricted
Cash for future drinking water treatment plant – 2,461,488 2,461,488
Net pension asset – fire relief 1,889,361 – 1,889,361
Capital assets
Not depreciated/amortized 3,785,438 2,167,741 5,953,179
Depreciated/amortized, net 51,266,915 49,005,266 100,272,181
Total capital assets, net 55,052,353 51,173,007 106,225,360
Total assets 112,032,077 78,657,970 190,690,047
Deferred outflows of resources
Pension plan deferments – PERA 4,063,072 63,499 4,126,571
Pension plan deferments – fire relief 496,869 – 496,869
OPEB plan deferments 105,179 6,714 111,893
Total deferred outflows of resources 4,665,120 70,213 4,735,333
Total assets and deferred outflows of resources 116,697,197$ 78,728,183$ 195,425,380$
Liabilities
Accounts and contracts payable 2,453,895$ 697,684$ 3,151,579$
Accrued salaries and employee benefits payable 374,004 21,664 395,668
Accrued interest payable 146,878 6,043 152,921
Deposits payable 3,002,217 36,800 3,039,017
Due to other governments 480 138,961 139,441
Unearned revenue 62,438 33,508 95,946
Long-term liabilities
Due within one year
Bonds, certificates, lease liabilities, and compensated absences 2,610,541 234,558 2,845,099
Total OPEB liability 67,651 – 67,651
Due in more than one year
Bonds, certificates, lease liabilities, and compensated absences 12,094,775 1,219,800 13,314,575
Net pension liability 4,602,884 224,915 4,827,799
Total OPEB liability 2,843,047 185,789 3,028,836
Total long-term liabilities 22,218,898 1,865,062 24,083,960
Total liabilities 28,258,810 2,799,722 31,058,532
Deferred inflows of resources
Pension plan deferments – PERA 6,018,351 144,232 6,162,583
Pension plan deferments – fire relief 398,901 – 398,901
Lease revenue for subsequent years 725,157 – 725,157
Total deferred inflows of resources 7,142,409 144,232 7,286,641
Net position
Net investment in capital assets 43,468,579 49,785,378 93,253,957
Restricted for
Debt service 3,690,458 – 3,690,458
Economic development 783,852 – 783,852
Public safety programs 80,830 – 80,830
Program aid and grants 564,146 – 564,146
Street improvements 524,377 – 524,377
Park improvements 1,589,298 – 1,589,298
Capital projects 240,485 – 240,485
State-funded street projects 2,083,465 – 2,083,465
Fire relief pensions 1,889,361 – 1,889,361
Water Fund – future drinking water treatment plant – 2,461,488 2,461,488
Unrestricted 26,381,127 23,537,363 49,918,490
Total net position 81,295,978 75,784,229 157,080,207
Total liabilities, deferred inflows of resources, and net position 116,697,197$ 78,728,183$ 195,425,380$
CITY OF FARMINGTON
Statement of Net Position
as of December 31, 2025
See notes to basic financial statements -16-
Page 157 of 356
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government
Governmental activities
General government 5,025,813$ 1,269,597$ 62,413$ –$
Public safety 10,216,219 645,884 807,498 702,709
Public works 6,665,255 1,714,430 559,149 1,379,665
Parks and recreation 2,632,572 995,253 1,074 –
Economic development 193,567 – 244,803 –
Interest and fiscal charges 227,449 – – –
Total governmental activities 24,960,875 4,625,164 1,674,937 2,082,374
Business-type activities
Liquor operations 6,418,634 6,918,271 – –
Sewer 3,158,763 3,930,807 – –
Storm water 969,117 1,485,547 – –
Water 2,013,156 2,883,477 7,258 –
Street light 233,354 265,493 – –
Total business-type activities 12,793,024 15,483,595 7,258 –
Total government 37,753,899$ 20,108,759$ 1,682,195$ 2,082,374$
General revenues
Property taxes
Franchise taxes
Grants and contributions not restricted
to specific programs
Investment earnings
Other general revenues
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, 2025
See notes to basic financial statements -17-
Page 158 of 356
Governmental Business-Type
Activities Activities Total
(3,693,803)$ –$ (3,693,803)$
(8,060,128) – (8,060,128)
(3,012,011) – (3,012,011)
(1,636,245) – (1,636,245)
51,236 – 51,236
(227,449) – (227,449)
(16,578,400) – (16,578,400)
– 499,637 499,637
– 772,044 772,044
– 516,430 516,430
– 877,579 877,579
– 32,139 32,139
– 2,697,829 2,697,829
(16,578,400) 2,697,829 (13,880,571)
17,391,710 – 17,391,710
228,334 – 228,334
345,293 – 345,293
2,146,682 1,184,189 3,330,871
6,453 – 6,453
2,087,721 (2,087,721) –
22,206,193 (903,532) 21,302,661
5,627,793 1,794,297 7,422,090
75,668,185 73,989,932 149,658,117
81,295,978$ 75,784,229$ 157,080,207$
Changes in Net Position
Net (Expense) Revenue and
-18-
Page 159 of 356
Special Capital
Revenue –Capital Projects –
Program Aid Projects –Utility
General and Grants Private Trunk
Assets
Cash and investments 12,347,446$ 626,123$ 2,710,692$ 11,472,127$
Receivables
Accounts 173,419 – – –
Interest 76,130 596 – 65,997
Property taxes
Unremitted 1,230,298 – – –
Delinquent 176,868 – – –
Special assessments
Delinquent 261 – – –
Noncurrent – – – –
Due from other funds 46,249 – – –
Due from other governments 104,123 – – –
Lease 725,157 – – –
Prepaid items 2,756 – – –
Total assets 14,882,707$ 626,719$ 2,710,692$ 11,538,124$
Liabilities
Accounts and contracts payable 628,027$ –$ –$ 129,312$
Accrued salaries and employee benefits payable 349,894 – – –
Deposits payable 28,709 – 2,710,692 –
Due to other governments 114 – – –
Due to other funds – – – –
Unearned revenue – 62,438 – –
Total liabilities 1,006,744 62,438 2,710,692 129,312
Deferred inflows of resources
Unavailable revenue – property taxes 176,868 – – –
Unavailable revenue – special assessments 261 – – –
Unavailable revenue – long-term receivable – – – –
Lease revenue for subsequent years 725,157 – – –
Total deferred inflows of resources 902,286 – – –
Fund balances (deficit)
Nonspendable 2,756 – – –
Restricted – 564,146 – –
Committed – 135 – 11,408,812
Assigned – – – –
Unassigned 12,970,921 – – –
Total fund balances 12,973,677 564,281 – 11,408,812
Total liabilities, deferred inflows
of resources, and fund balances 14,882,707$ 626,719$ 2,710,692$ 11,538,124$
Balance Sheet
CITY OF FARMINGTON
Governmental Funds
as of December 31, 2025
See notes to basic financial statements -19-
Page 160 of 356
Capital Capital
Projects –Projects –Debt
Pavement Street Service –
Management Improvements Closed Bond Nonmajor Total
2,815,454$ 2,731,802$ 1,600,437$ 10,121,805$ 44,425,886$
– – – 142,661 316,080
16,197 1,689 9,207 58,027 227,843
– – – – 1,230,298
– – – – 176,868
– – – – 261
– – 1,651,059 422,419 2,073,478
441,516 – – – 487,765
2,083,465 – – 778,356 2,965,944
– – – – 725,157
– – – – 2,756
5,356,632$ 2,733,491$ 3,260,703$ 11,523,268$ 52,632,336$
42,619$ 1,043,682$ –$ 281,124$ 2,124,764$
– – – 9,298 359,192
– – – 262,813 3,002,214
– – – 366 480
– 441,516 – 46,249 487,765
– – – – 62,438
42,619 1,485,198 – 599,850 6,036,853
– – – – 176,868
– – 1,651,059 422,419 2,073,739
2,083,465 – – – 2,083,465
– – – – 725,157
2,083,465 – 1,651,059 422,419 5,059,229
– – – – 2,756
524,377 1,515,431 – 4,880,742 7,484,696
2,706,171 – – 5,620,257 19,735,375
– – 1,609,644 – 1,609,644
– (267,138) – – 12,703,783
3,230,548 1,248,293 1,609,644 10,500,999 41,536,254
5,356,632$ 2,733,491$ 3,260,703$ 11,523,268$ 52,632,336$
-20-
Page 161 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 162 of 356
41,536,254$
Capital assets used in governmental activities are not financial resources and,therefore,are not
reported in governmental funds.
Cost of capital assets 109,428,451
Less accumulated depreciation/amortization (54,376,644)
Net pension assets are only recorded in the government-wide financial statements as they are not
current financial resources to governmental funds.1,889,361
Long-term liabilities are not payable with current financial resources and,therefore,are not reported
in governmental funds.
Bonds (12,285,000)
Unamortized bond premiums (661,679)
Lease liability (682,315)
Compensated absences (1,039,954)
Net pension liability (4,602,884)
Total OPEB liability (2,910,698)
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.(146,878)
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.2,566,024
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 176,868
Delinquent and deferred special assessments 2,073,739
Long-term receivables 2,083,465
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 4,559,941
Deferred outflows of resources – OPEB plan deferments 105,179
Deferred inflows of resources – pension plan deferments (6,417,252)
Total net position – governmental activities 81,295,978$
Amounts reported for governmental activities in the Statement of Net Position are different because:
as of December 31, 2025
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 163 of 356
Special Capital
Revenue –Capital Projects –
Program Aid Projects –Utility
General and Grants Private Trunk
Revenues
Property taxes 15,358,041$ –$ –$ –$
Franchise taxes 120,000 – – –
Special assessments – – – –
Licenses and permits 1,099,213 – – –
Intergovernmental 1,380,130 315,705 – –
Charges for services 822,105 – – 1,559,879
Fines and forfeits 53,980 – – –
Investment earnings 622,585 9,754 – 615,377
Other 221,187 5,425 – –
Total revenues 19,677,241 330,884 – 2,175,256
Expenditures
Current
General government 3,172,619 181,751 – –
Public safety 8,401,023 7,817 – –
Public works 4,439,261 – – 133,791
Parks and recreation 1,810,963 – – –
Economic development – – – –
Capital outlay
General government 1,332 – – –
Public safety 19,215 138,801 – –
Public works 3,011 – – 148,330
Parks and recreation 22,462 – – –
Debt service
Principal – – – –
Interest and fiscal charges – – – –
Total expenditures 17,869,886 328,369 – 282,121
Excess (deficiency) of revenues
over expenditures 1,807,355 2,515 – 1,893,135
Other financing sources (uses)
Sale of capital assets – – – –
Bonds issued – – – –
Premiums on bonds issued – – – –
Leases issued – – – –
Transfers in 1,872,358 – – –
Transfers out (2,065,186)(245,187)(231,373) (363,556)
Total other financing sources (uses)(192,828) (245,187) (231,373) (363,556)
Net change in fund balances 1,614,527 (242,672) (231,373) 1,529,579
Fund balances (deficits)
Beginning of year, as previously reported 11,359,150 806,953 231,373 9,879,233
Change in reporting entity – nonmajor funds to major – – – –
Beginning of year, as adjusted 11,359,150 806,953 231,373 9,879,233
End of year 12,973,677$ 564,281$ –$ 11,408,812$
CITY OF FARMINGTON
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2025
See notes to basic financial statements -22-
Page 164 of 356
Capital Capital
Projects –Projects –Debt
Pavement Street Service –
Management Improvements Closed Bond Nonmajor Total
–$ –$ –$ 2,062,629$ 17,420,670$
– – – 108,334 228,334
– – 247,588 – 247,588
– – – – 1,099,213
– 34,095 – 1,703,029 3,432,959
41,303 – – 376,572 2,799,859
– – – – 53,980
163,795 6,853 89,659 483,285 1,991,308
– 1,496 – 443,425 671,533
205,098 42,444 337,247 5,177,274 27,945,444
– – – 282,531 3,636,901
– – – 200,606 8,609,446
774,546 522,054 – 457,175 6,326,827
– – – 594,211 2,405,174
– – – 193,567 193,567
– – – 1,216 2,548
– – – 1,596,756 1,754,772
– 2,996,558 – 850 3,148,749
– – – 2,355,217 2,377,679
– – – 1,610,000 1,610,000
– 80,170 1,199 410,257 491,626
774,546 3,598,782 1,199 7,702,386 30,557,289
(569,448) (3,556,338) 336,048 (2,525,112) (2,611,845)
– – – 45,972 45,972
– 2,950,000 – – 2,950,000
– 247,161 – – 247,161
– – – 182,995 182,995
800,000 2,243,028 – 2,280,426 7,195,812
– (191,692) (245,489) (158,595) (3,501,078)
800,000 5,248,497 (245,489) 2,350,798 7,120,862
230,552 1,692,159 90,559 (174,314) 4,509,017
2,999,996 – 1,519,085 10,231,447 37,027,237
– (443,866) – 443,866 –
2,999,996 (443,866) 1,519,085 10,675,313 37,027,237
3,230,548$ 1,248,293$ 1,609,644$ 10,500,999$ 41,536,254$
-23-
Page 165 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 166 of 356
4,509,017$
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 8,326,124
Transfer of capital assets to business-type activities (1,669,365)
Depreciation/amortization expense (3,019,547)
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. (344,178)
Net pension assets are included in net position,but are excluded from fund balances because they do not represent
financial resources. 331,216
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 (3,132,995)
Principal payments for debt 1,610,000
Debt premiums 1,626
Compensated absences (77,216)
Net pension liability 594,896
Total OPEB liability (1,766,681)
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.15,390
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.(46,398)
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 (28,960)
Delinquent and deferred special assessments (500,122)
Long-term receivable 867,871
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 (1,867,060)
Deferred outflows of resources – OPEB plan deferments 67,676
Deferred inflows of resources – pension plan deferments 1,756,499
Change in net position – governmental activities 5,627,793$
CITY OF FARMINGTON
Year Ended December 31, 2025
Governmental Funds
to the Statement of Activities
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
See notes to basic financial statements -24-
Page 167 of 356
Variance With
Original Budget Final Budget Actual Final Budget
Revenues
Property taxes 15,321,211$ 15,321,211$ 15,358,041$ 36,830$
Franchise taxes 120,000 120,000 120,000 –
Licenses and permits 843,765 843,765 1,099,213 255,448
Intergovernmental 846,310 996,310 1,380,130 383,820
Charges for services 715,288 715,288 822,105 106,817
Fines and forfeits 57,500 57,500 53,980 (3,520)
Investment earnings 74,300 74,300 622,585 548,285
Other 35,100 35,100 221,187 186,087
Total revenues 18,013,474 18,163,474 19,677,241 1,513,767
Expenditures
Current
General government 3,064,394 3,009,624 3,172,619 162,995
Public safety 8,388,524 8,655,014 8,401,023 (253,991)
Public works 4,555,052 4,545,142 4,439,261 (105,881)
Parks and recreation 1,880,554 1,876,744 1,810,963 (65,781)
Capital outlay
General government 5,500 5,500 1,332 (4,168)
Public safety 22,500 22,500 19,215 (3,285)
Public works 3,000 3,000 3,011 11
Parks and recreation 20,256 26,841 22,462 (4,379)
Total expenditures 17,939,780 18,144,365 17,869,886 (274,479)
Excess of revenues over expenditures 73,694 19,109 1,807,355 1,788,246
Other financing sources (uses)
Transfers in 1,792,306 1,842,306 1,872,358 30,052
Transfers out (1,866,000)(1,868,000)(2,065,186) (197,186)
Total other financing sources (uses)(73,694) (25,694) (192,828) (167,134)
Net change in fund balances –$ (6,585)$ 1,614,527 1,621,112$
Fund balances
Beginning of year 11,359,150
End of year 12,973,677$
CITY OF FARMINGTON
Year Ended December 31, 2025
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
See notes to basic financial statements -25-
Page 168 of 356
Variance With
Original Budget Final Budget Actual Final Budget
Revenues
Intergovernmental –$ –$ 315,705$ 315,705$
Investment earnings – – 9,754 9,754
Other – – 5,425 5,425
– – 330,884 330,884
Expenditures
Current
General government – 167,065 181,751 14,686
Public safety – 3,575 7,817 4,242
Capital outlay
Public safety – 147,534 138,801 (8,733)
Total expenditures – 318,174 328,369 10,195
Excess (deficiency) of revenues
over expenditures – (318,174) 2,515 320,689
Other financing (uses)
Transfers out – – (245,187) (245,187)
Net change in fund balances –$ (318,174)$ (242,672) 75,502$
Fund balances
Beginning of year 806,953
End of year 564,281$
CITY OF FARMINGTON
Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual
Year Ended December 31, 2025
Program Aid and Grants Special Revenue Fund
See notes to basic financial statements -26-
Page 169 of 356
Business-Type Activities – Enterprise Funds
Liquor Sewer Storm
Operations Operations Water Water
Assets
Current assets
Cash and investments 3,506,590$ 2,465,769$ 3,187,512$ 12,253,887$
Cash restricted for drinking water treatment plant – – – 2,461,488
Receivables
Accounts 53,676 938,574 361,285 657,046
Interest 6,778 13,127 18,337 70,493
Delinquent special assessments – 24,692 – –
Deferred special assessments – 287,731 – –
Due from other governments – – – 1,466
Inventory 626,180 – – –
Prepaid items 290 – – –
Total current assets 4,193,514 3,729,893 3,567,134 15,444,380
Noncurrent assets
Capital assets
Land – 85,000 84,992 328,384
Construction in process – 117,300 440,163 1,111,902
Buildings – – – 5,231,253
Improvements other than buildings 358,276 – – 1,534,818
Machinery and equipment 385,999 1,359,158 433,883 556,187
Distribution system – – – 35,141,067
Collection system – 30,766,057 22,875,913 –
Leases – buildings 1,152,719 – – –
Less accumulated depreciation/amortization (694,214) (16,494,984) (10,530,148)(23,070,718)
Total capital assets (net of accumulated depreciation/amortization)1,202,780 15,832,531 13,304,803 20,832,893
Total assets 5,396,294 19,562,424 16,871,937 36,277,273
Deferred outflows of resources
Pension plan deferments – PERA 63,499 – – –
OPEB plan deferments 6,714 – – –
Total deferred outflows of resources 70,213 – – –
Total assets and deferred outflows of resources 5,466,507$ 19,562,424$ 16,871,937$ 36,277,273$
Liabilities
Current liabilities
Accounts and contracts payable 444,078$ 15,966$ 91,633$ 109,023$
Accrued salaries and employee benefits payable 21,034 – – 630
Deposits payable – – – 36,800
Due to other governments 71,221 57,155 – 10,585
Unearned revenue – – – 33,508
Accrued interest payable – – – 6,043
Compensated absences payable – current 50,047 – – –
Bonds payable – current – – – 75,000
Lease liability – current 109,511 – – –
Total current liabilities 695,891 73,121 91,633 271,589
Noncurrent liabilities
Compensated absences payable 16,682 – – –
Bonds payable (net of unamortized premiums)– – – 281,385
Lease liability 921,733 – – –
Net pension liability – PERA 224,915 – – –
Total OPEB liability 185,789 – – –
Total noncurrent liabilities 1,349,119 – – 281,385
Total liabilities 2,045,010 73,121 91,633 552,974
Deferred inflows of resources
Pension plan deferments – PERA 144,232 – – –
Net position
Net investment in capital assets 171,536 15,832,531 13,304,803 20,476,508
Restricted for drinking water treatment plant – – – 2,461,488
Unrestricted 3,105,729 3,656,772 3,475,501 12,786,303
Total net position 3,277,265 19,489,303 16,780,304 35,724,299
Total liabilities, deferred inflows of resources, and net position 5,466,507$ 19,562,424$ 16,871,937$ 36,277,273$
CITY OF FARMINGTON
Statement of Net Position
Proprietary Funds
as of December 31, 2025
See notes to basic financial statements -27-
Page 170 of 356
Business-Type Activities – Enterprise Funds Governmental
Street Activities –
Light Total Internal Service
481,479$ 21,895,237$ 2,915,858$
– 2,461,488 –
65,793 2,076,374 2,288
2,770 111,505 14,761
– 24,692 –
– 287,731 –
– 1,466 –
– 626,180 –
– 290 12,885
550,042 27,484,963 2,945,792
– 498,376 –
– 1,669,365 –
– 5,231,253 –
– 1,893,094 –
– 2,735,227 99,124
– 35,141,067 –
– 53,641,970 –
– 1,152,719 –
– (50,790,064) (98,578)
– 51,173,007 546
550,042 78,657,970 2,946,338
– 63,499 –
– 6,714 –
– 70,213 –
550,042$ 78,728,183$ 2,946,338$
36,984$ 697,684$ 329,131$
– 21,664 14,812
– 36,800 3
– 138,961 –
– 33,508 –
– 6,043 –
– 50,047 36,368
– 75,000 –
– 109,511 –
36,984 1,169,218 380,314
– 16,682 –
– 281,385 –
– 921,733 –
– 224,915 –
– 185,789 –
– 1,630,504 –
36,984 2,799,722 380,314
– 144,232 –
– 49,785,378 546
– 2,461,488 –
513,058 23,537,363 2,565,478
513,058 75,784,229 2,566,024
550,042$ 78,728,183$ 2,946,338$
-28-
Page 171 of 356
Business-Type Activities – Enterprise Funds
Liquor Sewer Storm
Operations Operations Water Water
Operating revenue
Sales 6,914,243$ –$ –$ –$
Charges for services – 3,920,624 1,485,547 2,405,260
Insurance reimbursement – – – –
Total operating revenue 6,914,243 3,920,624 1,485,547 2,405,260
Cost of goods sold 5,023,983 – – –
Gross profit 1,890,260 3,920,624 1,485,547 2,405,260
Operating expenses
Personal services 834,787 1,987 5,262 27,123
Professional services 330,370 2,435,234 428,064 653,167
Materials and supplies 26,768 31,055 28,209 308,395
Insurance – – – –
Depreciation/amortization 167,222 681,336 493,142 1,010,220
Total operating expenses 1,359,147 3,149,612 954,677 1,998,905
Operating income (loss)531,113 771,012 530,870 406,355
Nonoperating revenues (expenses)
Intergovernmental – – – 7,258
Investment earnings 115,013 122,727 184,095 735,492
Gain (loss) on sale of capital assets – (6,725) (14,440) (8,394)
Other 4,028 10,183 – 478,217
Interest and fiscal charges (35,504) (2,426)– (5,857)
Total nonoperating revenues (expenses)83,537 123,759 169,655 1,206,716
Income (loss) before contributions
and transfers 614,650 894,771 700,525 1,613,071
Capital contributions – 117,300 440,163 1,111,902
Transfers in – – – 191,692
Transfers out (257,806)(1,074,007)(1,278,852)(1,338,113)
Change in net position 356,844 (61,936) (138,164) 1,578,552
Net position
Beginning of year 2,920,421 19,551,239 16,918,468 34,145,747
End of year 3,277,265$ 19,489,303$ 16,780,304$ 35,724,299$
CITY OF FARMINGTON
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Year Ended December 31, 2025
See notes to basic financial statements -29-
Page 172 of 356
Business-Type Activities – Enterprise Funds Governmental
Street Activities –
Light Total Internal Service
–$ 6,914,243$ –$
264,749 8,076,180 4,504,919
– – 338,701
264,749 14,990,423 4,843,620
– 5,023,983 –
264,749 9,966,440 4,843,620
– 869,159 3,661,398
225,589 4,072,424 977,380
7,765 402,192 87,668
– – 383,812
– 2,351,920 1,100
233,354 7,695,695 5,111,358
31,395 2,270,745 (267,738)
– 7,258 –
26,862 1,184,189 155,374
– (29,559) –
744 493,172 3,614
– (43,787) –
27,606 1,611,273 158,988
59,001 3,882,018 (108,750)
– 1,669,365 –
– 191,692 62,352
– (3,948,778) –
59,001 1,794,297 (46,398)
454,057 73,989,932 2,612,422
513,058$ 75,784,229$ 2,566,024$
-30-
Page 173 of 356
Business-Type Activities – Enterprise Funds
Liquor Sewer Storm
Operations Operations Water Water
Cash flows from operating activities
Cash received from customers 6,917,351$ 3,669,481$ 1,442,599$ 2,726,890$
Cash receipts from other funds and reimbursements – – – –
Cash payments to suppliers (5,188,081) (2,860,663) (371,757) (944,032)
Cash payments to employees for services (744,229) (1,987) (5,262) (26,493)
Cash payments for interfund services used – – – –
Net cash flows from operating activities 985,041 806,831 1,065,580 1,756,365
Cash flows from noncapital financing activities
Intergovernmental revenue – – – 7,258
Transfers in – – – 191,692
Transfers out (257,806) (1,074,007) (1,278,852) (1,338,113)
Net cash flows from noncapital financing activities (257,806) (1,074,007) (1,278,852) (1,139,163)
Cash flows from capital and related financing activities
Acquisition and construction of capital assets (53,373) – – –
Principal payment on bonds and leases (108,822) – – (70,000)
Interest and fiscal charges paid (35,504) (2,426) – (17,222)
Net cash flows from capital and related financing activities (197,699) (2,426) – (87,222)
Cash flows from investing activities
Interest received on investments 124,886 124,859 184,558 743,623
Net increase in cash and cash equivalents 654,422 (144,743) (28,714) 1,273,603
Cash and cash equivalents
Beginning of year 2,852,168 2,610,512 3,216,226 13,441,772
End of year 3,506,590$ 2,465,769$ 3,187,512$ 14,715,375$
Reconciliation of operating income (loss) to net cash flows from
operating activities
Operating income (loss)531,113$ 771,012$ 530,870$ 406,355$
Adjustments to reconcile operating income (loss) to net cash flows
from operating activities
Depreciation/amortization 167,222 681,336 493,142 1,010,220
Other 4,028 10,183 – 478,217
Change in assets, deferred outflows of resources, liabilities,
and deferred inflows of resources
Accounts receivable (920) (220,275) (42,948) (188,858)
Special assessments – (41,051) – –
Due from other governments – – – (1,237)
Inventory 24,541 – – –
Prepaid items (250) – – –
Deferred outflows of resources – pension plan deferments (14,381) – – –
Deferred outflows of resources – OPEB plan deferments (4,320) – – –
Accounts and contracts payable 166,031 741 84,516 4,129
Accrued salaries and employee benefits 21,034 – – 630
Deposits payable – – – 5,000
Due to other governments 2,718 (395,115) – 8,401
Unearned revenue – – – 33,508
Compensated absences 18,184 – – –
Net pension liability (16,526) – – –
Total OPEB liability 112,767 – – –
Deferred inflows of resources – pension plan deferments (26,200) – – –
Net cash flows from operating activities 985,041$ 806,831$ 1,065,580$ 1,756,365$
Schedule of noncash capital and related financing activities
Capital assets contributed from developers and governmental funds –$ 117,300$ 440,163$ 1,111,902$
Capital assets acquired through lease 412,852$ –$ –$ –$
Net book values of capital asset disposals –$ 6,725$ 14,440$ 8,394$
Amortization of bond premium –$ –$ –$ 9,912$
CITY OF FARMINGTON
Statement of Cash Flows
Proprietary Funds
Year Ended December 31, 2025
See notes to basic financial statements -31-
Page 174 of 356
Business-Type Activities – Enterprise Funds Governmental
Street Activities –
Light Total Internal Service
224,664$ 14,980,985$ –$
– – 4,847,765
(213,174) (9,577,707) –
– (777,971) (3,944,318)
– – (1,272,326)
11,490 4,625,307 (368,879)
– 7,258 –
– 191,692 62,352
– (3,948,778) –
– (3,749,828) 62,352
– (53,373) –
– (178,822) –
– (55,152) –
– (287,347) –
26,683 1,204,609 158,521
38,173 1,792,741 (148,006)
443,306 22,563,984 3,063,864
481,479$ 24,356,725$ 2,915,858$
31,395$ 2,270,745$ (267,738)$
– 2,351,920 1,100
744 493,172 3,614
(40,829) (493,830) 2,819
– (41,051) –
– (1,237) (2,288)
– 24,541 –
– (250) (12,885)
– (14,381) –
– (4,320) –
20,180 275,597 246,213
– 21,664 (317,219)
– 5,000 (4,323)
– (383,996) –
– 33,508 –
– 18,184 (18,172)
– (16,526) –
– 112,767 –
– (26,200) –
11,490$ 4,625,307$ (368,879)$
–$ 1,669,365$ –$
–$ 412,852$ –$
–$ 29,559$ –$
–$ 9,912$ –$
-32-
Page 175 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 176 of 356
CITY OF FARMINGTON
Notes to Basic Financial Statements
December 31, 2025
-33-
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.
Page 177 of 356
-34-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The government-wide Statement of Activities demonstrates the extent to which the direct expense of a
given function (general government, public safety, public works, parks and recreation, and economic
development) or business-type activity (liquor operations, utility services) is offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function or business-type activity.
Interest on debt is considered an indirect expense and is reported separately in the Statement of Activities.
Depreciation/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.
Page 178 of 356
-35-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Proprietary fund financial statements are reported using the economic resources measurement focus and
accrual basis of accounting, similar to the government-wide financial statements. Proprietary funds
distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise
funds and internal service funds are charges to customers for sales and services. The operating expenses
for the enterprise funds and internal service funds include the cost of sales and services, administrative
expenses, and depreciation/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.
Street Improvement Capital Projects Fund – This fund accounts for major street construction or
improvement projects.
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.
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.
Page 179 of 356
-36-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 2025 budgets were adopted for the Police Donations and Forfeitures Special Revenue Fund or the
Capital Projects Reserve Capital Projects Fund. Budgeted expenditure appropriations lapse at year-end.
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The city administrator submits a proposed operating budget for the fiscal year commencing the
following January 1 to the City Council. The operating budget includes proposed expenditures
and the means of financing them.
2. The City Council reviews the proposed budgets and makes the appropriate changes.
3. Public hearings are conducted to obtain taxpayer comments.
4. The budgets are legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual expenditure
accounts.
5. Formal budgetary integration is employed as a management control device during the year for the
governmental and enterprise funds.
6. The legal level of budgetary control is at the fund level. Expenditures may not legally exceed
budgeted appropriations at the total fund level. Monitoring of budgets is maintained at the
expenditure category level (e.g., personnel services, supplies, other services and charges, etc.)
within each department. Management can exceed appropriations at the department level without
City Council approval. The City Council must approve any 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.
Page 180 of 356
-37-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
For the year ended December 31, 2025, 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
Program Aid and Grants Special Revenue 318,174$ 328,369$
Utility Trunk Capital Projects –$ 282,121$
Closed Bond Debt Service –$ 1,199$
Nonmajor special revenue funds
Public Safety Engagement 53,472$ 55,472$
Nonmajor capital projects funds
Capital Equipment 1,053,849$ 1,305,675$
Recreation Facilities 2,312,635$ 2,382,313$
Emerald Ash Borer 372,485$ 458,025$
Nonmajor debt service funds
General 1,740,020$ 1,740,178$
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.
Page 181 of 356
-38-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Receivables
Utility and miscellaneous accounts receivable are reported at gross. Since the City is generally able to
certify delinquent amounts to the county for collection as special assessments; no allowance for
uncollectible accounts has been provided on current receivables. 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.
Page 182 of 356
-39-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 capitalizes assets with a useful life greater than five years when they meet the
applicable capitalization thresholds: $50,000 for land and building improvements, $50,000 for buildings,
$25,000 for machinery, equipment, and vehicles, $100,000 for infrastructure, and $10,000 for intangible
and other capital assets; all land is capitalized. Groups of similar items purchased together are capitalized
when total cost is $200,000 or more. Routine maintenance and repairs are expensed as incurred. Land,
permanent easements, and construction in progress are not depreciated. Lease assets are amortized over
the lease term (or the useful life of the underlying asset if ownership transfer is expected). All other
capital assets are depreciated using the straight-line method over the following estimated useful lives:
Buildings 30–50 years
Improvements other than buildings 10–20 years
Machinery and equipment 5–20 years
Infrastructure 30–50 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 periodfuture to s of outflow an recognized be as will and not 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. Governmental funds report unavailable revenue from:
property taxes, assessmentsspecial and , long-receivablesterm deferred are amounts These . and
recognized as inflows of resources in the period that the amounts become available.
Page 183 of 356
-40-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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. 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.
Page 184 of 356
-41-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Workers’ Compensation Insurance – Workers’ compensation coverage is provided through a pooled
self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is
subject to supplemental assessments as deemed necessary by the LMCIT. The LMCIT reinsures through
the Workers’ Compensation Reinsurance Association as required by law. The City’s premiums are
determined after loss experience is known. The amount of premium adjustment, if any, is considered
immaterial, and is not recorded until received or paid.
S. Net Position Classifications and Flow Assumptions
In the government-wide and proprietary fund financial statements, net position represents the difference
between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position
is displayed in three components:
• Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation
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.
Page 185 of 356
-42-
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
U. Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in
the United States of America, requires management to make estimates and assumptions that affect the
amounts reported in the financial statements during the reporting period. Actual results could differ from
those estimates.
NOTE 2 – DEPOSITS AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 10,827,861$
Investments 60,866,525
Petty cash 4,083
Total 71,698,469$
Cash and investments are included on the basic financial statements as follows:
Statement of Net Position
Cash and investments 69,236,981$
Restricted assets – temporarily restricted
Cash for future drinking water treatment plant 2,461,488
Total 71,698,469$
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 $10,827,861, while the balance on the
bank records was $10,831,260. At December 31, 2025, all deposits were fully covered by federal
deposit insurance, surety bonds, or by collateral held by the City’s agent in the City’s name.
Page 186 of 356
-43-
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
C. Investments
The City has the following investments at year-end:
Fair Value
Measurements
Investment Type Rating Agency Using Less Than 1 1 to 5 6 to 10 Total
U.S. treasury securities Level 2 5,018,636$ 20,175$ –$ 5,038,811$
U.S. agency securities AA S&P Level 2 4,387,328 3,595,383 – 7,982,711
U.S. agency securities Level 2 – 1,446,365 – 1,446,365
Municipal bonds AAA S&P Level 2 1,004,443 4,153,878 – 5,158,321
Municipal bonds Aaa Moody’s Level 2 – 101,222 – 101,222
Municipal bonds AA S&P Level 2 2,050,154 10,995,585 444,450 13,490,189
Municipal bonds Aa Moody’s Level 2 1,863,104 7,107,741 110,630 9,081,475
Municipal bonds A S&P Level 2 801,432 – – 801,432
Municipal bonds A Moody’s Level 2 394,872 358,342 919,270 1,672,484
Negotiable certificates of deposit Level 2 3,915,587 5,153,446 492,139 9,561,172
19,435,556$ 32,932,137$ 1,966,489$ 54,334,182
Investment pools/mutual funds AAA S&P Level 1 6,532,343
Total investments 60,866,525$
Interest Risk – Maturity
Duration in YearsCredit Risk
Not Rated
Not Applicable
Not Rated
Page 187 of 356
-44-
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
Investments are subject to various risks, the following of which are considered the most significant:
Custodial Credit Risk – For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker-dealer) the City would not be able to
recover the value of its investments or collateral securities that are in the possession of an outside
party. The City’s investment policies do not further address this risk.
Credit Risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations
guaranteed by the United States or its agencies; shares of investment companies registered under the
Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the
two highest rating categories by a statistical rating agency, and all of the investments have a final
maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA”
or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’
acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial
paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of
a foreign bank, or a United States insurance company, and with a credit quality in one of the top
two highest categories; repurchase or reverse purchase agreements and securities lending agreements
with financial institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a
primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or
certain Minnesota securities broker-dealers. The City’s investment policies do not further address
credit risk.
Concentration Risk – This is the risk associated with investing a significant portion of the City’s
investments (considered 5.0 percent or more) in the securities of a single issuer, excluding
U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City’s
investment policy places no limit on the amount the City may invest in any one issuer . However, it
discusses the need to diversify investments to minimize risk. Of the City’s investment portfolio at
December 31, 2025, 6.9 percent were issued by the Federal Farm Credit Bank.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The City’s investment policy states the investment portfolio should be structured to
meet cash requirements for ongoing operations. The policy limits investment maturities as a means of
managing exposure to fair value losses arising from increasing interest rates, stating that no more than
30.0 percent of total investments should extend beyond 5 years and none should extend beyond
15 years. The City’s year-end investment portfolio maturities comply with this policy.
Page 188 of 356
-45-
NOTE 3 – INTERFUND BALANCES AND TRANSFERS
A. Interfund Balances
The City had the following interfund balances at year-end:
Payable Fund Purpose Amount
Governmental Governmental
General Nonmajor Cash flow 46,249$
Pavement Management Street Improvements Cash flow 441,516
487,765$
Receivable Fund
B. Interfund Transfers
The following transfers were made during the year:
Pavement Street Water Internal
General Management Improvements Nonmajor Enterprise Service Total
Governmental
General –$ 680,000$ (2)–$ 1,324,834$ (4)–$ 60,352$ (9)2,065,186$
Program Aid and Grants 50,000 (1)– – 195,187 (5)– – 245,187
Private – – – 231,373 (4)– – 231,373
Utility Trunk – – 363,556 (3)– – – 363,556
Street Improvements – – – – 191,692 (8)– 191,692
Closed Bond – – – 245,489 (6)– – 245,489
Nonmajor 30,052 (1)– – 128,543 (4)– – 158,595
Proprietary – Enterprise
Liquor Operations 101,806 (1)– – 155,000 (7)– 1,000 (9)257,806
Sewer Operations 549,863 (1)40,000 (2)483,144 (3)– – 1,000 (9)1,074,007
Storm Water 590,855 (1)40,000 (2)647,997 (3)– – – 1,278,852
Water 549,782 (1)40,000 (2)748,331 (3)– – – 1,338,113
1,872,358$ 800,000$ 2,243,028$ 2,280,426$ 191,692$ 62,352$ 7,449,856$
(1)To support general City operations.
(2)To fund pavement management program costs.
(3)To fund street improvement costs.
(4)To fund capital maintenance and equipment purchases.
(5)To fund fire capital equipment purchases with state public safety aid.
(6)For debt service.
(7)To fund park improvements.
(8)To fund water infrastructure improvements
(9)For employee benefits ($40,352) and insurance ($22,000).
Transfers In
Transfers Out
Total
Governmental Proprietary
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 $107,765. Additionally, the City
received $33,728 in other variable payments for common area maintenance fees, which are not a part of
the lease asset.
Page 189 of 356
-46-
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2025 was as follows:
A. Changes in Capital Assets Used in Governmental Activities
Beginning Completed Ending
Balance Additions Deletions Construction Transfers Balance
Capital assets, not depreciated/amortized
Land 1,350,435$ –$ –$ –$ –$ 1,350,435$
Easements 307,867 – – – – 307,867
Construction in progress 272,806 4,232,085 – (708,390) (1,669,365) 2,127,136
Total capital assets, not
depreciated/amortized 1,931,108 4,232,085 – (708,390) (1,669,365) 3,785,438
Capital assets, depreciated/amortized
Buildings 21,303,850 2,567,712 (551,247) 408,169 – 23,728,484
Improvements other than buildings 3,824,466 1,064,495 (10,769) – – 4,878,192
Machinery and equipment 9,657,965 278,837 (244,301) 300,221 – 9,992,722
Infrastructure 66,053,166 – (144,374) – – 65,908,792
Leases – vehicles 1,050,952 182,995 – – – 1,233,947
Total capital assets,
depreciated/amortized 101,890,399 4,094,039 (950,691) 708,390 – 105,742,137
Less accumulated depreciation/amortization
Buildings 8,873,258 451,609 (351,443) – – 8,973,424
Improvements other than buildings 1,605,882 232,241 (10,769) – – 1,827,354
Machinery and equipment 5,677,596 573,696 (244,301) – – 6,006,991
Infrastructure 35,590,601 1,496,228 – – – 37,086,829
Leases – vehicles 313,751 266,873 – – – 580,624
Total accumulated
depreciation/amortization 52,061,088 3,020,647 (606,513) – – 54,475,222
Net capital assets,
depreciated/amortized 49,829,311 1,073,392 (344,178) 708,390 – 51,266,915
Total capital assets, net 51,760,419$ 5,305,477$ (344,178)$ –$ (1,669,365)$ 55,052,353$
Page 190 of 356
-47-
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$
Construction in progress – – – 1,669,365 1,669,365
Total capital assets, not
depreciated/amortized 498,376 – – 1,669,365 2,167,741
Capital assets, depreciated/amortized
Buildings 5,290,137 – (58,884) – 5,231,253
Improvements other than buildings 1,893,094 – – – 1,893,094
Machinery and equipment 2,684,914 53,373 (3,060) – 2,735,227
Collection/distribution systems 88,812,596 – (29,559) – 88,783,037
Leases – buildings 951,551 412,852 (211,684) – 1,152,719
Total capital assets,
depreciated/amortized 99,632,292 466,225 (303,187) – 99,795,330
Less accumulated depreciation/amortization
Buildings 4,367,330 204,689 (58,884) – 4,513,135
Improvements other than buildings 607,107 105,863 – – 712,970
Machinery and equipment 1,722,919 159,511 (3,060) – 1,879,370
Collection/distribution systems 41,716,713 1,760,306 – – 43,477,019
Leases – buildings 297,703 121,551 (211,684) – 207,570
Total accumulated
depreciation/amortization 48,711,772 2,351,920 (273,628) – 50,790,064
Net capital assets,
depreciated/amortized 50,920,520 (1,885,695) (29,559) – 49,005,266
Total capital assets, net 51,418,896$ (1,885,695)$ (29,559)$ 1,669,365$ 51,173,007$
C. Depreciation/Amortization Expense by Function
Depreciation/amortization expense was charged to the following functions:
Governmental activities
General government 1,812,668$
Public safety 618,922
Public works 276,978
Parks and recreation 310,979
Internal service funds 1,100
Total depreciation/amortization expense – governmental activities 3,020,647$
Business-type activities
Liquor operations 167,222$
Sewer operations 681,336
Storm water 493,142
Water 1,010,220
Total depreciation/amortization expense – business-type activities 2,351,920$
Page 191 of 356
-48-
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 1,100,000$
G.O. Street Reconstruction Bonds 2022A 3,650,000$ 3.00–5.00%07/06/2022 02/01/2033 3,045,000
G.O. Street Reconstruction Bonds 2024A 1,420,000$ 4.00–5.00%08/15/2024 02/01/2035 1,420,000
G.O. Street Reconstruction Bonds 2025A 1,440,000$ 4.00–5.00%09/30/2025 02/01/2036 1,440,000
G.O. Street Reconstruction Bonds 2025A 1,510,000$ 4.00–5.00%09/30/2025 02/01/2037 1,510,000
Total general obligation improvement bonds 8,515,000
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 1,830,000
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 245,000
Total bonds and certificates 12,285,000
Unamortized premiums 661,679
Lease liabilities
Lease – vehicle 31,238$ 6.62%06/23/2022 06/30/2026 4,654
Lease – vehicle 31,238$ 6.62%06/23/2022 06/30/2026 6,757
Lease – vehicle 29,970$ 7.71%09/23/2022 09/30/2026 4,654
Lease – vehicle 30,637$ 2.68%03/13/2023 03/31/2028 14,127
Lease – vehicle 30,590$ 2.68%03/16/2023 03/31/2028 14,127
Lease – vehicle 30,590$ 2.68%03/16/2023 03/31/2028 14,127
Lease – vehicle 30,590$ 2.68%03/16/2023 03/31/2028 14,127
Lease – vehicle 44,510$ 3.53%04/19/2023 04/30/2028 21,237
Lease – vehicle 50,395$ 2.31%05/25/2023 05/31/2028 24,946
Lease – vehicle 39,285$ 2.79%07/24/2023 07/31/2027 15,955
Lease – vehicle 42,292$ 2.74%07/27/2023 07/31/2028 22,462
Lease – vehicle 40,296$ 2.74%08/21/2023 08/31/2028 22,000
Lease – vehicle 40,296$ 2.74%08/21/2023 08/31/2028 22,000
Lease – vehicle 40,296$ 2.74%08/21/2023 08/31/2028 22,000
Lease – vehicle 40,129$ 2.74%08/24/2023 08/31/2028 21,944
Lease – vehicle 39,267$ 2.79%08/25/2023 08/31/2027 16,778
Lease – vehicle 57,934$ 2.74%08/31/2023 08/31/2028 31,793
Lease – vehicle 39,264$ 3.53%10/12/2023 10/31/2027 18,395
Lease – vehicle 39,302$ 3.53%10/12/2023 10/31/2027 18,404
Lease – vehicle 39,302$ 3.53%10/12/2023 10/31/2027 18,404
Lease – vehicle 39,264$ 3.53%10/12/2023 10/31/2027 18,395
Lease – vehicle 86,768$ 2.62%06/01/2024 05/01/2029 60,260
Lease – vehicle 48,349$ 2.62%06/01/2024 05/01/2029 33,644
Lease – vehicle 47,758$ 2.32%10/01/2024 09/01/2028 33,242
Lease – vehicle 47,758$ 2.32%10/01/2024 09/01/2028 33,242
Lease – vehicle 57,263$ 4.97%03/01/2025 02/01/2030 48,530
Lease – vehicle 36,779$ 5.35%02/01/2025 01/01/2029 28,896
Lease – vehicle 51,802$ 4.91%04/01/2025 03/01/2030 44,643
Lease – vehicle 37,151$ 4.81%05/01/2025 04/01/2030 32,572
Total lease liabilities 682,315
Compensated absences 1,076,322
Total governmental activities 14,705,316$
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 325,000$
Unamortized premiums 31,385
Lease liabilities
Lease – buildings (Downtown liquor store)739,867$ 6.62%10/01/2021 05/31/2036 625,529
Lease – buildings (Pilot Knob liquor store)412,852$ 5.00%12/01/2025 11/01/2030 405,715
Total lease liabilities 1,031,244
Compensated absences 66,729
Total business-type activities 1,454,358$
Page 192 of 356
-49-
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
2026 1,300,000$ 436,519$ 245,000$ 6,125$ 1,545,000$ 442,644$
2027 1,495,000 411,350 – – 1,495,000 411,350
2028 1,690,000 356,625 – – 1,690,000 356,625
2029 1,125,000 301,856 – – 1,125,000 301,856
2030 975,000 253,181 – – 975,000 253,181
2031–2035 4,215,000 650,125 – – 4,215,000 650,125
2036–2040 1,240,000 90,200 – – 1,240,000 90,200
Total 12,040,000$ 2,499,856$ 245,000$ 6,125$ 12,285,000$ 2,505,981$
G.O. Bonds TotalG.O. Equipment Certificates
Business-Type Activities
Year Ending
December 31,Principal Interest
2026 75,000$ 12,675$
2027 80,000 8,800
2028 85,000 5,100
2029 85,000 1,700
Total 325,000$ 28,275$
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 353,275$ 86,300$ 2,405,260$
Current YearRevenue Pledged
Page 193 of 356
-50-
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, 2025, the City had not utilized $82,110,359 of its $91,520,359 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 approximately an is lease store for The Fund. Enterprise Downtown
7,400 square foot space in the Farmington Mall, for which the City paid $29,295 in common area
operating expenses in 2025 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
$48,611 in common area operating expenses in 2025 that are not included in the lease liability.
The total amount of underlying lease assets by major classes and the related accumulated
amortization is presented in Note 5 of the notes to basic financial statements.
Minimum annual payments required to retire bonds and certificates are as follows:
Year Ending
December 31,Principal Interest Principal Interest
2026 258,298$ 18,468$ 109,511$ 44,127$
2027 235,193 10,542 118,615 39,436
2028 136,533 4,447 128,178 34,348
2029 44,489 1,354 138,219 28,842
2030 7,802 71 140,637 22,898
2031–2035 – – 359,235 58,032
2036 – – 36,849 461
Total 682,315$ 34,882$ 1,031,244$ 228,144$
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.
Page 194 of 356
-51-
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 6,115,000$ 2,950,000$ 550,000$ 8,515,000$ 655,000$
G.O. capital improvement bonds 2,405,000 – 575,000 1,830,000 595,000
G.O. tax abatement bonds 1,695,000 – – 1,695,000 50,000
G.O. equipment certificates 475,000 – 230,000 245,000 245,000
Unamortized premiums 663,305 247,161 248,787 661,679 –
Lease liabilities 754,320 182,995 255,000 682,315 258,298
Compensated absences 1,017,278 760,727 701,683 1,076,322 807,243
Total governmental activities 13,124,903 4,140,883 2,560,470 14,705,316 2,610,541
Business-type activities
G.O. revenue bonds 395,000 – 70,000 325,000 75,000
Unamortized premiums 41,297 – 9,912 31,385 –
Lease liabilities 727,214 412,852 108,822 1,031,244 109,511
Compensated absences 48,545 31,589 13,405 66,729 50,047
Total business-type activities 1,212,056 444,441 202,139 1,454,358 234,558
Total government-wide 14,336,959$ 4,585,324$ 2,762,609$ 16,159,674$ 2,845,099$
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-of PERA the by administered employer pension benefit defined plans
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 –$ –$ –$ 1,889,361$ 1,889,361$
Deferred outflows of resources 635,628$ 3,490,943$ 4,126,571$ 496,869$ 4,623,440$
Net pension liability 2,251,403$ 2,576,396$ 4,827,799$ –$ 4,827,799$
Deferred inflows of resources 1,443,760$ 4,718,823$ 6,162,583$ 398,901$ 6,561,484$
Pension expense (92,524)$ 620,140$ 527,616$ 174,180$ 701,796$
State-Wide PERA Pension Plans
Page 195 of 356
-52-
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.
1. General Employees Retirement Fund (GERF)
in schools townships, cities, counties, of includes GERF the in Membership employees
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 1.20 percent of the highest average salary for each of the first 10 years of service, and
1.70 percent for each additional year. Under the Level formula, GERF members receive
1.70 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.
Page 196 of 356
-53-
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 50.00 percent of the cost of living adjustment (COLA) announced by the Social
Security Administration, with a minimum increase of at least 1.00 percent and a maximum of
1.50 percent. The 2025 annual increase was 1.25 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 50.00 percent vested after five years of
service, and 100.00 percent vested after 10 years. After five years, vesting increases by
10.00 percent each full year of service until members are 100.00 percent vested after 10 years.
Police and Fire Plan members receive 3.00 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 1.00 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 2025, 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, 2025 were $483,828. 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 2025, 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, 2025
were $614,543. The City’s contributions were equal to the required contributions as set by state
statutes.
Page 197 of 356
-54-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
D. Pension Costs
1. GERF Pension Costs
At December 31, 2025, the City reported a liability of $2,251,403 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 $54,311.
City’s proportionate share of the net pension liability 2,251,403$
State’s proportionate share of the net pension liability
associated with the City 54,311
Total 2,305,714$
The net pension liability was measured as of June 30, 2025, 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, 2024
through June 30, 2025, relative to the total employer contributions received from all of the
PERA’s participating employers. The City’s proportionate share was 0.0679 percent at the end of
the measurement period and 0.0653 percent for the beginning of the period.
For the year ended December 31, 2025, the City recognized negative pension expense of $84,193
for its proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $8,331 as negative pension expense (and grant revenue) for its proportionate share of
the state of Minnesota’s contribution of $16.0 million to the GERF.
At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 214,509$ –$
Changes in actuarial assumptions 54,246 518,040
Net difference between projected and actual earnings
on pension plan investments – 895,855
Changes in proportion 123,362 29,865
Employer contributions subsequent to the
measurement date 243,511 –
Total 635,628$ 1,443,760$
Page 198 of 356
-55-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The $243,511 reported as deferred outflows of resources related to pensions resulting from city
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ending December 31, 2026. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2026 (220,287)$
2027 (400,741)$
2028 (270,580)$
2029 (160,035)$
2. PEPFF Pension Costs
At December 31, 2025, the City reported a liability of $2,576,396 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2025,
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, 2024 through June 30, 2025, relative to the total
employer contributions received from all of the PERA’s participating employers. The City’s
proportionate share was 0.2199 percent at the end of the measurement period and 0.2299 percent
for the beginning of the period.
The state of Minnesota contributed $18.0 million to the PEPFF in the plan fiscal year ended
June 30, 2025. The contribution consisted of $9.0 million in direct state aid that meets the
definition of a special funding situation and $9.0 million in supplemental state aid that does not
meet the definition of a special funding situation. The $9.0 million direct state aid was paid on
October 1, 2024. The direct state aid payment will increase by $17.7 million, which was paid on
October 1, 2025. Thereafter, by October 1 of each year, the state will pay $26.7 million to the
Police and Fire Fund until the fund is 110.00 percent funded for a minimum of three consecutive
years (on an actuarial value of assets basis). The $9.0 million in supplemental state aid will
continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement
System) are 100.00 percent funded for three consecutive years (on an actuarial value of assets
basis). The state of Minnesota’s proportionate share of the net pension liability associated with
the City totaled $89,311.
City’s proportionate share of the net pension liability 2,576,396$
State’s proportionate share of the net pension liability
associated with the City 89,311
Total 2,665,707$
Page 199 of 356
-56-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
For the year ended December 31, 2025, the City recognized pension expense of $576,927 for its
proportionate share of the Police and Fire Plan’s pension expense. The City recognized $43,213
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 $9.0 million in supplemental state aid because
this contribution was not considered to meet the definition of a special funding situation. The City
recognized $58,711 for the year ended December 31, 2025, as revenue and an offsetting reduction
of net pension liability for its proportionate share of the state of Minnesota’s on -behalf
contributions to the PEPFF.
At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 1,190,377$ –$
Changes in actuarial assumptions 1,953,734 3,228,117
Net difference between projected and actual earnings
on pension plan investments – 1,149,882
Changes in proportion 23,886 340,824
Employer contributions subsequent to the
measurement date 322,946 –
Total 3,490,943$ 4,718,823$
The $322,946 reported as deferred outflows of resources related to pensions resulting from city
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ending December 31, 2026. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Pension
Year Ending Expense
December 31,Amount
2026 539,703$
2027 (643,449)$
2028 (1,340,344)$
2029 (145,426)$
2030 38,690$
Page 200 of 356
-57-
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, 2025, 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 1.50 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 11.50 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 10.75 percent after one year of service to
3.00 `percent after 23 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 assumption changes were adopted by the Board and became effective with the July 1, 2025
actuarial valuation.
Page 201 of 356
-58-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
The following changes in actuarial assumptions and plan provisions occurred in 2025:
1. GERF
CHANGES IN ACTUARIAL ASSUMPTIONS
• The combined service annuity loading factors increased from 15.00 percent to 19.00 percent
for vested terminated members and from 3.00 percent to 44.00 percent for nonvested,
terminated members.
• The assumed post-retirement benefit increase changed from 1.25 percent to 1.50 percent.
CHANGES IN PLAN PROVISIONS
• The post-retirement benefit increase formula changed to 100.00 percent of the Social Security
annual increase, between 1.00 percent and 1.75 percent , beginning January 1, 2026. If the
funded ratio (on a market value of assets basis) is less than 85.00 percent for the last
two consecutive annual valuations or is less than 80.00 percent in the most recent actuarial
valuation, the maximum is reduced to 1.50 percent. Previously, the benefit increase was
50.00 percent of the Social Security annual increase, between 1.00 percent and 1.50 percent.
• The 1.00 percent additional employer contribution is eliminated when the plan reaches
98.00 percent funded status (on an actuarial value of assets basis); this contribution was
previously scheduled to stop when the plan reached 100.00 percent funded status.
2. PEPFF
CHANGES IN ACTUARIAL ASSUMPTIONS
• Assumed rates of salary increases were reduced slightly.
• Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full)
retirements and an overall increase in reduced (early) retirements.
• Assumed rates of withdrawal were modified; the new rates will increase predicted
terminations, especially in the first few years of employment.
• Assumed rates of disabled retirement were significantly increased, especially for ages over
age 30.
• Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit
observed experience.
• Percent married assumption for female retirees lowered from 70.00 percent to 65.00 percent.
• Minor changes were made to form of payment assumptions for retirees.
• Minor changes were made to assumptions made with respect to missing participant data.
• The combined service annuity load changed from 33.00 percent to 13.00 percent for vested,
terminated members and from 2.00 percent to 38.00 percent for nonvested, terminated
members.
Page 202 of 356
-59-
NOTE 8 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED)
CHANGES IN PLAN PROVISIONS
• The period of time needed for benefit recipients to receive their first benefit increase was
reduced by one year (from 36 months to 24 months for a full increase).
• The January 1, 2026 benefit increase changed from 1.00 percent to 3.00 percent; subsequent
January 1 increases will be 1.00 percent.
• The threshold to end the $9.0 million annual state aid contribution changed from the earlier of
July 1, 2048 or 90.00 percent funded for both PERA Police & Fire and MSRS State Patrol for
three consecutive years to 100.00 percent funded for both PERA Police & Fire and MSRS
State Patrol for three consecutive years (on an actuarial value of assets basis).
• The threshold to end the additional $9.0 million annual state aid contribution changed from
the earlier of July 1, 2048 or 100.00 percent funded for a minimum of three consecutive years
to 110.00 percent funded for a minimum of three consecutive years (on an actuarial value of
assets basis).
• An additional $17.7 million in direct state aid will be paid annually each October 1 beginning
October 1, 2025 through June 30, 2048.
• Joint and survivor actuarial equivalent factors were updated to reflect changes in
assumptions.
G. Discount Rate
The discount rate used to measure the total pension liability in 2025 was 7.00 percent. The projection of
cash flows used to determine the discount rate assumed that contributions from plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net
position of the General Employees Fund and the Police and Fire Fund were projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
H. Pension Liability Sensitivity
The following table presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding section, as well as what the
City’s proportionate share of the net pension liability (asset) would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
City’s proportionate share of
the GERF net pension liability (asset)
City’s proportionate share of the
PEPFF net pension liability (asset)
1% Decrease in
(6.00%)
1% Increase in
Discount Rate
Current
Discount RateDiscount Rate
(7.00%)(8.00%)
(358,228)$
6,750,704$ (851,369)$
5,468,305$
2,576,396$
2,251,403$
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.
Page 203 of 356
-60-
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, 2024, the plan covered 47 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 of $9,500 per year of service was unchanged from 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.
C. Contributions
relief fire volunteer for benefits pension 424A and 424 Chapters Statutes, Minnesota authorize
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 $267,667 in fire state aid to the plan on behalf of the Department for
the year ended December 31, 2025, and an additional $4,000 of supplemental benefit reimbursement aid,
which were 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, 2025 were $0; however, the City made a voluntary contribution of $150,000 to the plan.
D. Pension Costs
At December 31, 2025, the City reported a net pension liability (asset) of ($1,889,361) for the plan. The
net pension liability (asset) was measured as of December 31, 2024. The total pension liability used to
calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by
applying an actuarial formula to specific census data certified by the Department as of December 31,
2024.
Page 204 of 356
-61-
NOTE 9 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
The following table presents the changes in net pension liability (asset) during the year:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a)(b)(a-b)
Beginning balance 3,248,486$ 4,806,631$ (1,558,145)$
Changes for the year
Service cost 217,776 – 217,776
Interest 165,796 – 165,796
Difference between expected and actual experience 38,530 – 38,530
Changes of assumptions (39,074) – (39,074)
Contributions (state and local)– 385,490 (385,490)
Net investment income – 352,354 (352,354)
Benefit payments (616,497) (616,497) –
Administrative costs – (23,600) 23,600
Total net changes (233,469) 97,747 (331,216)
Ending balance 3,015,017$ 4,904,378$ (1,889,361)$
For the year ended December 31, 2025, the City recognized pension revenue of $232,490 and pension
expense of $174,180.
At December 31, 2025, the City reported deferred inflows of resources and deferred outflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference between expected and actual liability 237,239$ 351,964$
Change of assumptions 87,674 46,937
Net difference between projected and actual earnings on
plan investments 21,956
City contributions subsequent to the measurement date 150,000 –
Total 496,869$ 398,901$
Deferred outflows of resources totaling $150,000 related to pensions resulting from city contributions to
the plan subsequent to the measurement date will be recognized as a reduction of the net pension liability
in the year ending December 31, 2026. Other amounts reported as deferred outflows and inflows of
resources related to the plan will be recognized in pension expense as follows:
Year Ending Pension Expense
December 31,Amount
2026 41,548$
2027 75,701$
2028 (82,759)$
2029 (28,470)$
2030 (4,681)$
Thereafter (53,371)$
Page 205 of 356
-62-
NOTE 9 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
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 – 5.50%
20-year municipal bond yield – 4.08%
The 5.50 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 34.60 %4.52 %7.02 %
International equity – 5.08 %7.58 %
Fixed income 18.80 2.44 %4.94 %
Real estate and alternatives 43.50 3.73 %6.23 %
Cash and equivalents 3.10 0.99 %3.49 %
Total 100.00 %5.50 %
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 5.50 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. The discount
rate used in the previous actuarial study was 5.25 percent,
Page 206 of 356
-63-
NOTE 9 – DEFINED BENEFIT PENSION PLAN – FIRE RELIEF ASSOCIATION
(CONTINUED)
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
(4.50%)(5.50%)(6.50%)
Net pension liability (asset)(1,730,294)$ (1,889,361)$ (2,040,987)$
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.
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
provides postCity The -through its employees eligible certain to employment insurance benefits
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.
Page 207 of 356
-64-
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
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 $111,893.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
Active plan members – waived coverage 14
Active plan members – electing medical coverage 69
Total members 83
E. Total OPEB Liability of the City
The City’s total OPEB liability of $3,096,487 as of year-end was measured as of December 31, 2024, and
was determined by an actuarial valuation as of December 31, 2024.
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 4.08%
20-year municipal bond yield 4.08%
Inflation rate 2.60%
Healthcare trend rate 8.50% grading to 4.00% over 20 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 4.08 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.
For participation rates, 50.00 percent of all benefits eligible employees are assumed to elect coverage at
retirement, and 100.00 percent of all disabled in the line of duties are assumed to elect coverage at
retirement.
Withdrawal rates, retirement rates, mortality rates, and salary scale were based on the July 1, 2018
through June 30, 2022 PERA General Plan experience studies and the July 1, 2019 through June 30, 2023
PERA Police and Fire Plan experience studies.
Page 208 of 356
-65-
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
Assumption changes since the prior measurement date include the following:
• Medical trend was updated based on recently published trend model and trend surveys to better
reflect future anticipated experience.
• Medical per capita claims tables were updated based on recent experience and demographics.
• The discount rate was updated from 3.77 percent to 4.08 percent based on recent municipal bond
index rates.
• Mortality, termination, disability incidence (for Police and Fire members only) and salary scale
assumptions were updated to the most recently published PERA valuation assumptions.
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning balance – January 1, 2025 1,217,039$
Changes for the year
Service cost 110,339
Interest 48,836
Differences between expected and actual experience 1,583,235
Changes of assumptions 200,998
Benefit payments – employer-financed (63,960)
Total net changes 1,879,448
Ending balance – December 31, 2025 3,096,487$
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 $ 3,377,386 $ 2,840,084
3.08%5.08%
1% Decrease in 1% Increase in
Discount Rate Discount Rate
Current
Discount Rate
$ 3,096,487
4.08%
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 $ 2,737,439 $ 3,511,130
3.00% over 20 years 5.00% over 20 years
1% Decrease in 1% Increase in
Healthcare Trend Rate Healthcare Trend Rate
7.50% decreasing to 9.50% decreasing to
Current
Healthcare Trend Rate
8.50% decreasing to
4.00% over 20 years
$ 3,096,487
Page 209 of 356
-66-
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources
For the current year, the City recognized OPEB expense of $1,943,408. As of year-end, the City reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Contributions subsequent to the measurement date 111,893$ –$
Deferred outflows of resources reported $111,893 related to OPEB resulting from city contributions
subsequent to the measurement date that will be recognized as a reduction of the total OPEB liability in
the year ending December 31, 2026.
Page 210 of 356
-67-
NOTE 11 – NET POSITION/FUND BALANCES
A. Net Investment in Capital Assets
The government-wide Statement of Net Position at December 31, 2025 includes the City’s net investment
in capital assets, calculated as follows:
Governmental Business-Type
Activities Activities Total
Net investment in capital assets
Capital assets, net 55,052,353$ 51,173,007$ 106,225,360$
Less capital-related long-term debt outstanding (13,628,994) (1,387,629) (15,016,623)
Add unused bond proceeds 2,045,220 – 2,045,220
Total net investment in capital assets 43,468,579$ 49,785,378$ 93,253,957$
B. Governmental Fund Balance Classifications
At December 31, 2025, the City had the following governmental fund balances:
Program Aid Utility Pavement Street
General and Grants Private Trunk Management Improvements Closed Bond Nonmajor Total
Nonspendable
Prepaid items 2,756$ –$ –$ –$ –$ –$ –$ –$ 2,756$
Restricted
Economic development – – – – – – – 783,852 783,852
Public safety programs – – – – – – – 80,830 80,830
Park improvements – – – – – – – 1,589,298 1,589,298
PEG fees – – – – – – – 240,485 240,485
Program aid and grants – 564,146 – – – – – – 564,146
Street Improvements – – – – 524,377 1,515,431 – – 2,039,808
Debt service – – – – – – – 2,186,277 2,186,277
Total restricted – 564,146 – – 524,377 1,515,431 – 4,880,742 7,484,696
Committed
Improvement projects – – – – – – – 471,184 471,184
Utility trunk – – – 11,408,812 – – – – 11,408,812
Pavement management – – – – 2,706,171 – – – 2,706,171
Park improvements – – – – – – – 1,030,419 1,030,419
Ice arena capital – – – – – – – 41,570 41,570
Cable communications – – – – – – – 666,893 666,893
Capital equipment – – – – – – – 791,770 791,770
Programs aids and grants – 135 – – – – – – 135
Public safety programs – – – – – – – 11,557 11,557
Trail maintenance – – – – – – – 733,706 733,706
Building maintenance – – – – – – – 905,556 905,556
Emerald ash borer mitigation – – – – – – – 967,602 967,602
Total committed – 135 – 11,408,812 2,706,171 – – 5,620,257 19,735,375
Assigned
Future debt payments – – – – – – 1,609,644 – 1,609,644
Unassigned 12,970,921 – – – – (267,138) – – 12,703,783
Total 12,973,677$ 564,281$ –$ 11,408,812$ 3,230,548$ 1,248,293$ 1,609,644$ 10,500,999$ 41,536,254$
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,
2025, the unassigned fund balance of the General Fund was 68.9 percent of the subsequent year’s
budgeted expenditures and transfers out.
Page 211 of 356
-68-
NOTE 12 – 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 $55,945 of property tax increment in the current year. The remaining principal balance
as of December 31, 2025 for this agreement was $983,980. 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 13 – COMMITMENTS AND CONTINGENCIES
A. Federal and State Funding
Amounts recorded or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot
be determined at this time, although the City expects such amounts, if any, to be immaterial.
B. Legal Claims
The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although
the outcome of these lawsuits is not presently determinable, the City’s management believes that the City
will not incur any material monetary loss resulting from these claims. No loss has been recorded on the
City’s financial statements relating to these claims.
C. Tax Increment Districts
The City’s tax increment districts are subject to review by the Minnesota Office of the State Auditor. Any
disallowed claims or misuse of tax increments could become a liability of the applicable fund.
Management has indicated that it’s not aware of any instances of noncompliance, which would have a
material effect on the financial statements.
D. Contracts Payable
At December 31, 2025, the City is committed to various construction contracts for the improvement of
city property. The City’s remaining commitment under these contracts is approximately $134,118 at
year-end.
Page 212 of 356
REQUIRED SUPPLEMENTARY INFORMATION
Page 213 of 356
Proportionate
Share of the
City’s Net Pension
Proportionate Liability and City’s
Share of the the City’s Proportionate Plan Fiduciary
State of Share of the Share of the Net Position
City’s City’s Minnesota’s State of Net Pension as a
PERA Fiscal Proportion Proportionate Proportionate Minnesota’s Liability as a Percentage
Year-End Date of the Net Share of the Share of the Share of the City’s Percentage of of the Total
(Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension
Date)Liability Liability Liability Liability Payroll Payroll Liability
06/30/2016 0.0583% 4,733,671$ 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%
06/30/2025 0.0679% 2,251,403$ 54,311$ 2,305,714$ 6,185,767$ 36.40% 90.8%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
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%
483,828$ 483,828$ –$ 6,451,028$ 7.50%
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
12/31/2017
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2024
Year Ended December 31, 2025
Year Ended December 31, 2025
Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability
12/31/2017
12/31/2018
12/31/2023
12/31/2025
Year-End Date
City Fiscal
12/31/2016
12/31/2018
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2024
12/31/2023
12/31/2025
-69-
Page 214 of 356
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
06/30/2016 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%
06/30/2025 0.2199% 2,576,396$ 89,311$ 2,665,707$ 3,302,183$ 78.02%91.8%
Contributions Contributions
in Relation to as a
Statutorily the Statutorily Contribution Percentage
Required Required Deficiency Covered of Covered
Contributions Contributions (Excess)Payroll Payroll
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%
614,543$ 614,543$ –$ 3,471,993$ 17.70%
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
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
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
12/31/2025
City Fiscal
Year Ended December 31, 2025
Year Ended December 31, 2025
12/31/2017
12/31/2024
12/31/2025
-70-
Page 215 of 356
City fiscal year-end December 31,2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Relief Association year-end
(measurement date)
December 31,2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total pension liability
Service cost 71,190$ 86,788$ 93,501$ 112,754$ 163,690$ 177,922$ 190,066$ 218,873$ 168,434$ 217,776$
Interest 92,788 82,702 95,308 105,418 118,151 119,981 125,065 149,757 139,161 165,796
Differences between expected
and actual experience – (14,504) – (13,870) – (51,474) – (425,928) 253,683 38,530
Changes of assumptions 116,780 (15,678) – 86,336 61,961 18,063 – (11,048) – (39,074)
Changes of benefits terms – 143,662 171,894 169,797 – (368) 238,686 – 227,671 –
Benefit payments (596,137) (1,194) (292,064) (156,771) – (254,977) (103,887) (120,699) (45,415) (616,497)
Net change in
total pension liability (315,379) 281,776 68,639 303,664 343,802 9,147 449,930 (189,045) 743,534 (233,469)
Total pension liability
Beginning 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
End of year 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$ 3,015,017$
Plan fiduciary net position
Contributions (state and local)291,915$ 291,510$ 301,508$ 297,548$ 301,797$ 315,539$ 321,822$ 337,645$ 360,460$ 385,490$
Net investment income (33,543) 163,457 342,985 (168,667) 508,896 366,662 419,642 (566,313) 474,981 352,354
Benefit payments (596,137) (1,194) (292,064) (156,771) – (254,977) (103,887) (120,699) (45,415) (616,497)
Administrative costs (15,756) (17,200) (18,282) (16,720) (18,400) (16,950) (18,750) (17,230) (24,900) (23,600)
Net change in plan
fiduciary net position (353,521) 436,573 334,147 (44,610) 792,293 410,274 618,827 (366,597) 765,126 97,747
Plan fiduciary net position
Beginning 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
End of year 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$ 4,904,378$
Net pension liability (asset) (623,559)$ (778,356)$ (1,043,864)$ (695,590)$ (1,144,081)$ (1,545,208)$ (1,714,105)$ (1,536,553)$ (1,558,145)$ (1,889,361)$
Plan fiduciary net position
as a percentage of the
total pension liability 150.41% 151.25% 165.76% 136.78% 151.19% 168.86% 163.63% 161.34% 147.97% 162.67%
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, 2025
-71-
Page 216 of 356
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$
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
12/31/2025
CITY OF FARMINGTON
City Fiscal
Year-End Date
12/31/2017
12/31/2016
Year Ended December 31, 2025
-72-
Page 217 of 356
2018 2019 2020 2021 2022 2023 2024 2025
Total OPEB liability
Service cost 113,275$ 85,451$ 74,564$ 92,066$ 114,711$ 121,679$ 100,500$ 110,339$
Interest 40,190 40,509 49,025 26,170 26,625 27,861 47,265 48,836
Differences between expected
and actual experience – – (424,559) 489,862 3,834 141,132 1,938 1,583,235
Changes of assumptions 28,356 (57,133) 79,584 (278,274) 6,058 (395,696) 27,044 200,998
Benefit payments (38,891) (40,361) (33,373) (45,998) (57,384) (65,854) (52,531) (63,960)
Net change in total OPEB liability 142,930 28,466 (254,759) 283,826 93,844 (170,878) 124,216 1,879,448
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 1,217,039
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$ 3,096,487$
Covered-employee payroll 5,800,000$ 6,000,000$ 7,300,000$ 7,300,000$ 8,600,000$ 9,200,000$ 9,200,000$ 9,900,000$
Total OPEB liability as a percentage
of covered-employee payroll 19.18% 19.01% 12.14% 16.03% 14.69% 11.88% 13.23% 31.28%
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.
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.
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, 2025
-73-
Page 218 of 356
CITY OF FARMINGTON
Notes to Required Supplementary Information
December 31, 2025
-74-
PERA – GENERAL EMPLOYEES RETIREMENT FUND
2025 CHANGES IN ACTUARIAL ASSUMPTIONS
• The combined service annuity loading factors increased from 15.00 percent to 19.00 percent
for vested terminated members and from 3.00 percent to 44.00 percent for nonvested,
terminated members. • The assumed post-retirement benefit increase changed from 1.25 percent to 1.50 percent.
2025 CHANGES IN PLAN PROVISIONS
• The post-retirement benefit increase formula changed to 100.00 percent of the Social Security
annual increase, between 1.00 percent and 1.75 percent, beginning January 1, 2026. If the
funded ratio (on a market value of assets basis) is less than 85.00 percent for the last
two consecutive annual valuations or is less than 80.00 percent in the most recent actuarial
valuation, the maximum is reduced to 1.50 percent. Previously, the benefit increase was
50.00 percent of the Social Security annual increase, between 1.00 percent and 1.50 percent. • The 1.00 percent additional employer contribution is eliminated when the plan reaches
98.00 percent funded status (on an actuarial value of assets basis); this contribution was
previously scheduled to stop when the plan reached 100.00 percent funded status.
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.
Page 219 of 356
-75-
PERA – GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED)
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.
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 220 of 356
-76-
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 221 of 356
-77-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND
2025 CHANGES IN ACTUARIAL ASSUMPTIONS
• Assumed rates of salary increases were reduced slightly.
• Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full)
retirements and an overall increase in reduced (early) retirements.
• Assumed rates of withdrawal were modified; the new rates will increase predicted terminations,
especially in the first few years of employment.
• Assumed rates of disabled retirement were significantly increased, especially for ages over
age 30.
• Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit
observed experience.
• Percent married assumption for female retirees lowered from 70.00 percent to 65.00 percent.
• Minor changes were made to form of payment assumptions for retirees.
• Minor changes were made to assumptions made with respect to missing participant data.
• The combined service annuity load changed from 33.00 percent to 13.00 percent for vested,
terminated members and from 2.00 percent to 38.00 percent for nonvested, terminated
members.
2025 CHANGES IN PLAN PROVISIONS
• The period of time needed for benefit recipients to receive their first benefit increase was
reduced by one year (from 36 months to 24 months for a full increase).
• The January 1, 2026 benefit increase changed from 1.00 percent to 3.00 percent; subsequent
January 1 increases will be 1.00 percent.
• The threshold to end the $9.0 million annual state aid contribution changed from the earlier of
July 1, 2048, or 90.00 percent funded for both PERA Police & Fire and MSRS State Patrol for
three consecutive years to 100.00 percent funded for both PERA Police & Fire and MSRS State
Patrol for three consecutive years (on an actuarial value of assets basis).
• The threshold to end the additional $9.0 million annual state aid contribution changed from the
earlier of July 1, 2048, or 100.00 percent funded for a minimum of three consecutive years to
110.00 percent funded for a minimum of three consecutive years (on an actuarial value of assets
basis).
• An additional $17.7 million in direct state aid will be paid annually each October 1 beginning
October 1, 2025 through June 30, 2048.
• Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions.
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.
Page 222 of 356
-78-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
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.
• 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.
Page 223 of 356
-79-
PERA – PUBLIC EMPLOYEES POLICE AND FIRE FUND (CONTINUED)
2018 CHANGES IN ACTUARIAL ASSUMPTIONS
• The mortality projection scale was changed from MP-2016 to MP-2017.
2018 CHANGES IN PLAN PROVISIONS
• Post-retirement benefit increases were changed to 1.00 percent for all years, with no trigger.
• An end date of July 1, 2048 was added to the existing $9.0 million state contribution.
• New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter, until the plan reaches 100.00 percent funding, or July 1, 2048, if earlier.
• Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective
January 1, 2019, and 11.80 percent of pay, effective January 1, 2020.
• Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective
January 1, 2019, and 17.70 percent of pay, effective January 1, 2020.
• Interest credited on member contributions decreased from 4.00 percent to 3.00 percent,
beginning July 1, 2018.
• Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation
that has already accrued for deferred members will still apply.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 CHANGES IN ACTUARIAL ASSUMPTIONS
• Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has
been changed to 33.00 percent for vested members, and 2.00 percent for nonvested members.
• The base mortality table for healthy annuitants was changed from the RP-2000 Fully
Generational Table to the RP-2014 Fully Generational Table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed
from the RP-2000 Disabled Mortality Table to the mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3.00 percent for the first three years of service.
Rates beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
• Assumed percentage of married female members was decreased from 65.00 percent to
60.00 percent.
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• The assumed percentage of female members electing joint and survivor annuities was
increased.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years,
to 1.00 percent per year through 2064, and 2.50 percent thereafter.
• The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum.
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.
Page 224 of 356
-80-
FARMINGTON FIRE FIGHTERS’ RELIEF ASSOCIATION
2025 CHANGES IN ACTUARIAL ASSUMPTIONS
• The actuarial assumptions for investment rate of return and the single discount rate both
changed from 5.25 percent to 5.50 percent.
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 225 of 356
-81-
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 226 of 356
-82-
OTHER POST-EMPLOYMENT BENEFITS PLAN
2025 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 3.77 percent to 4.08 percent based on recent municipal
bond index rates.
• Mortality, termination, disability incidence (for Police and Fire members only), and salary scale
assumptions were updated to the most recently published PERA valuation assumptions.
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.
Page 227 of 356
-83-
OTHER POST-EMPLOYMENT BENEFITS PLAN (CONTINUED)
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 228 of 356
SUPPLEMENTARY INFORMATION
Page 229 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 230 of 356
-84-
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 231 of 356
Special Capital Debt Service
Revenue Projects Fund Total
Assets
Cash and investments 3,753,303$ 4,189,970$ 2,178,532$ 10,121,805$
Receivables
Accounts 109,995 32,666 – 142,661
Interest 21,389 24,105 12,533 58,027
Special assessments
Noncurrent – 422,419 – 422,419
Due from other governments – 778,356 – 778,356
Total assets 3,884,687$ 5,447,516$ 2,191,065$ 11,523,268$
Liabilities
Accounts and contracts payable 28,435$ 247,901$ 4,788$ 281,124$
Accrued salaries and employee benefits payable 9,298 – – 9,298
Deposits payable 262,813 – – 262,813
Due to other governments 366 – – 366
Due to other funds 46,249 – – 46,249
Total liabilities 347,161 247,901 4,788 599,850
Deferred inflows of resources
Unavailable revenue – special assessments – 422,419 – 422,419
Fund balances
Restricted 2,453,980 240,485 2,186,277 4,880,742
Committed 1,083,546 4,536,711 – 5,620,257
Total fund balances 3,537,526 4,777,196 2,186,277 10,500,999
Total liabilities, deferred inflows
of resources, and fund balances 3,884,687$ 5,447,516$ 2,191,065$ 11,523,268$
CITY OF FARMINGTON
Nonmajor Governmental Funds
Combining Balance Sheet
as of December 31, 2025
-85-
Page 232 of 356
Special Capital Debt Service
Revenue Projects Fund Total
Revenue
Property taxes 384,936$ –$ 1,677,693$ 2,062,629$
Franchise taxes – 108,334 – 108,334
Intergovernmental – 1,703,029 – 1,703,029
Charges for services 376,572 – – 376,572
Investment earnings 194,921 217,059 71,305 483,285
Other
Donations 58,573 53,179 – 111,752
Rentals 16,681 – – 16,681
Miscellaneous 307,243 7,749 – 314,992
Total revenues 1,338,926 2,089,350 1,748,998 5,177,274
Expenditures
Current
General government – 282,531 – 282,531
Public safety 55,820 144,786 – 200,606
Public works – 457,175 – 457,175
Parks and recreation 488,453 105,758 – 594,211
Economic development 193,567 – – 193,567
Capital outlay
General government – 1,216 – 1,216
Public safety – 1,596,756 – 1,596,756
Public works – 850 – 850
Parks and recreation 78,662 2,276,555 – 2,355,217
Debt service
Principal – 255,000 1,355,000 1,610,000
Interest and fiscal charges – 25,079 385,178 410,257
Total expenditures 816,502 5,145,706 1,740,178 7,702,386
Excess (deficiency) of revenues
over expenditures 522,424 (3,056,356) 8,820 (2,525,112)
Other financing sources (uses)
Sale of capital assets – 45,972 – 45,972
Leases issued – 182,995 – 182,995
Transfers in 155,000 1,879,937 245,489 2,280,426
Transfers out (30,052) (128,543) – (158,595)
Total other financing sources (uses)124,948 1,980,361 245,489 2,350,798
Net change in fund balances 647,372 (1,075,995) 254,309 (174,314)
Fund balances
Beginning of year, as previously reported 2,890,154 5,409,325 1,931,968 10,231,447
Change in reporting entity – nonmajor funds to major – 443,866 – 443,866
Beginning of year, as adjusted 2,890,154 5,853,191 1,931,968 10,675,313
End of year 3,537,526$ 4,777,196$ 2,186,277$ 10,500,999$
Year Ended December 31, 2025
CITY OF FARMINGTON
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
-86-
Page 233 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 234 of 356
-87-
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.
Page 235 of 356
Police Public
Economic Special Donations Safety
Development Taxing Areas and Forfeitures Engagement
Assets
Cash and investments 885,117$ 156,141$ 14,571$ 86,762$
Receivables
Accounts – – – –
Interest 4,891 898 84 499
Total assets 890,008$ 157,039$ 14,655$ 87,261$
Liabilities
Accounts and contracts payable 13,195$ –$ –$ 9,529$
Accrued salaries and employee benefits payable – – – –
Deposits payable 250,000 – – –
Due to other governments – – – –
Due to other funds – – – –
Total liabilities 263,195 – – 9,529
Fund balances
Restricted for economic development 626,813 157,039 – –
Restricted for public safety programs – – 13,280 67,550
Restricted for park improvements – – – –
Committed for public safety programs – – 1,375 10,182
Committed for park improvements – – – –
Committed for ice arena capital – – – –
Total fund balances 626,813 157,039 14,655 77,732
Total liabilities and fund balances 890,008$ 157,039$ 14,655$ 87,261$
as of December 31, 2025
Combining Balance Sheet
Nonmajor Special Revenue Funds
CITY OF FARMINGTON
-88-
Page 236 of 356
Park
Improvement Arena Total
2,610,411$ 301$ 3,753,303$
– 109,995 109,995
15,017 – 21,389
2,625,428$ 110,296$ 3,884,687$
5,711$ –$ 28,435$
– 9,298 9,298
– 12,813 262,813
– 366 366
– 46,249 46,249
5,711 68,726 347,161
– – 783,852
– – 80,830
1,589,298 – 1,589,298
– – 11,557
1,030,419 – 1,030,419
– 41,570 41,570
2,619,717 41,570 3,537,526
2,625,428$ 110,296$ 3,884,687$
-89-
Page 237 of 356
Police Public
Economic Special Donations Safety
Development Taxing Areas and Forfeitures Engagement
Revenues
Property taxes 250,000$ 134,936$ –$ –$
Charges for services – – – –
Investment earnings 41,553 6,274 806 4,505
Other
Donations – – – 53,473
Rentals – – – –
Miscellaneous – – – –
Total revenues 291,553 141,210 806 57,978
Expenditures
Current
Public safety – – 348 55,472
Parks and recreation – – – –
Economic development 76,237 117,330 – –
Capital outlay
Parks and recreation – – – –
Total expenditures 76,237 117,330 348 55,472
Excess (deficiency) of revenues
over expenditures 215,316 23,880 458 2,506
Other financing sources (uses)
Transfers in – – – –
Transfers out (30,052) – – –
Total other financing sources (uses)(30,052) – – –
Net change in fund balances 185,264 23,880 458 2,506
Fund balances
Beginning of year 441,549 133,159 14,197 75,226
End of year 626,813$ 157,039$ 14,655$ 77,732$
Combining Statement of Revenues, Expenditures,
Nonmajor Special Revenue Funds
CITY OF FARMINGTON
Year Ended December 31, 2025
and Changes in Fund Balances
-90-
Page 238 of 356
Park
Improvement Arena Total
–$ –$ 384,936$
– 376,572 376,572
140,423 1,360 194,921
100 5,000 58,573
7,466 9,215 16,681
303,243 4,000 307,243
451,232 396,147 1,338,926
– – 55,820
16,375 472,078 488,453
– – 193,567
75,935 2,727 78,662
92,310 474,805 816,502
358,922 (78,658) 522,424
155,000 – 155,000
– – (30,052)
155,000 – 124,948
513,922 (78,658) 647,372
2,105,795 120,228 2,890,154
2,619,717$ 41,570$ 3,537,526$
-91-
Page 239 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 240 of 356
-92-
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.
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.
Page 241 of 356
Cable Capital Recreation Trail
Communications Equipment Facilities Improvements
Assets
Cash and investments 996,554$ 803,822$ 277,797$ 729,509$
Receivables
Accounts 17,863 8,049 6,754 –
Interest 5,733 4,625 1,598 4,197
Special assessments
Noncurrent – – – –
Due from other governments – – 10,226 –
Total assets 1,020,150$ 816,496$ 296,375$ 733,706$
Liabilities
Accounts and contracts payable 112,772$ 24,726$ 46,359$ –$
Deferred inflows of resources
Unavailable revenue – special assessments – – – –
Fund balances
Restricted for public, educational, and
governmental (PEG) fees 240,485 – – –
Committed for cable communications 666,893 – – –
Committed for improvement projects – – 250,016 –
Committed for capital equipment – 791,770 – –
Committed for trail maintenance – – – 733,706
Committed for building maintenance – – – –
Committed for emerald ash borer mitigation – – – –
Total fund balances 907,378 791,770 250,016 733,706
Total liabilities, deferred inflows
of resources, and fund balances 1,020,150$ 816,496$ 296,375$ 733,706$
CITY OF FARMINGTON
Nonmajor Capital Projects Funds
Combining Balance Sheet
as of December 31, 2025
-93-
Page 242 of 356
Municipal Capital Projects Emerald Ash
Buildings Reserve Borer Total
204,969$ 219,903$ 957,416$ 4,189,970$
– – – 32,666
1,179 1,265 5,508 24,105
– 422,419 – 422,419
702,709 – 65,421 778,356
908,857$ 643,587$ 1,028,345$ 5,447,516$
3,301$ –$ 60,743$ 247,901$
– 422,419 – 422,419
– – – 240,485
– – – 666,893
– 221,168 – 471,184
– – – 791,770
– – – 733,706
905,556 – – 905,556
– – 967,602 967,602
905,556 221,168 967,602 4,777,196
908,857$ 643,587$ 1,028,345$ 5,447,516$
-94-
Page 243 of 356
Cable Capital Recreation Trail
Communications Equipment Facilities Improvements
Revenues
Franchise taxes 108,334$ –$ –$ –$
Intergovernmental – 2,500 740,459 6,004
Investment earnings 54,651 47,475 31,106 38,964
Other
Donations – – 53,179 –
Miscellaneous – – 7,749 –
Total revenues 162,985 49,975 832,493 44,968
Expenditures
Current
General government 171,577 – – –
Public safety – 144,786 – –
Public works – – – –
Parks and recreation – – 105,758 –
Capital outlay
General government 1,216 – – –
Public safety – 880,810 – –
Public works – – – –
Parks and recreation – – 2,276,555 –
Debt service
Principal – 255,000 – –
Interest and fiscal charges – 25,079 – –
Total expenditures 172,793 1,305,675 2,382,313 –
Excess (deficiency) of revenues
over expenditures (9,808) (1,255,700) (1,549,820) 44,968
Other financing sources (uses)
Sale of capital assets – 44,163 1,809 –
Leases issued – 182,995 – –
Transfers in – 1,004,730 2,000 220,000
Transfers out – – – –
Total other financing sources (uses)– 1,231,888 3,809 220,000
Net change in fund balances (9,808) (23,812) (1,546,011) 264,968
Fund balances (deficits)
Beginning of year, as previously reported 917,186 815,582 1,796,027 468,738
Change in reporting entity – nonmajor funds to major – – – –
Beginning of year, as adjusted 917,186 815,582 1,796,027 468,738
End of year 907,378$ 791,770$ 250,016$ 733,706$
Year Ended December 31, 2025
and Changes in Fund Balances
Combining Statement of Revenues, Expenditures,
Nonmajor Capital Projects Funds
CITY OF FARMINGTON
-95-
Page 244 of 356
Municipal Capital Projects Emerald Ash Street
Buildings Reserve Borer Improvements Total
–$ –$ –$ –$ 108,334$
702,709 – 251,357 – 1,703,029
17,922 4,934 22,007 – 217,059
– – – – 53,179
– – – – 7,749
720,631 4,934 273,364 – 2,089,350
110,954 – – – 282,531
– – – – 144,786
– – 457,175 – 457,175
– – – – 105,758
– – – – 1,216
715,946 – – – 1,596,756
– – 850 – 850
– – – – 2,276,555
– – – – 255,000
– – – – 25,079
826,900 – 458,025 – 5,145,706
(106,269) 4,934 (184,661) – (3,056,356)
– – – – 45,972
– – – – 182,995
653,207 – – – 1,879,937
– – (128,543) – (128,543)
653,207 – (128,543) – 1,980,361
546,938 4,934 (313,204) – (1,075,995)
358,618 216,234 1,280,806 (443,866) 5,409,325
– – – 443,866 443,866
358,618 216,234 1,280,806 – 5,853,191
905,556$ 221,168$ 967,602$ –$ 4,777,196$
-96-
Page 245 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 246 of 356
-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.
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.
Page 247 of 356
Street Capital Tax
Reconstruction Improvement Equipment Abatement
Bonds Bonds Certificates Bonds Total
Assets
Cash and investments 961,072$ 702,332$ 275,850$ 239,278$ 2,178,532$
Receivables
Interest 5,529 4,041 1,587 1,376 12,533
Total assets 966,601$ 706,373$ 277,437$ 240,654$ 2,191,065$
Liabilities
Accounts and contracts payable 4,100$ 172$ 172$ 344$ 4,788$
Fund balances
Restricted for debt service 962,501 706,201 277,265 240,310 2,186,277
Total liabilities and
fund balances 966,601$ 706,373$ 277,437$ 240,654$ 2,191,065$
CITY OF FARMINGTON
General Debt Service Fund
Combining Balance Sheet by Account
as of December 31, 2025
-98-
Page 248 of 356
Street Capital Tax
Reconstruction Improvement Equipment Abatement
Bonds Bonds Certificates Bonds Total
Revenues
Property taxes 494,396$ 646,000$ 226,438$ 310,859$ 1,677,693$
Investment earnings 35,115 22,496 9,242 4,452 71,305
Total revenues 529,511 668,496 235,680 315,311 1,748,998
Expenditures
Debt service
Principal 430,000 575,000 230,000 120,000 1,355,000
Interest and fiscal charges 184,597 51,919 21,672 126,990 385,178
Total expenditures 614,597 626,919 251,672 246,990 1,740,178
Excess (deficiency) of revenues
over expenditures (85,086) 41,577 (15,992) 68,321 8,820
Other financing sources (uses)
Transfers in 203,350 489 – 41,650 245,489
Intra-fund transfers between accounts (130,495) – – 130,495 –
Total other financing sources (uses)72,855 489 – 172,145 245,489
Net change in fund balances (12,231) 42,066 (15,992) 240,466 254,309
Fund balances (deficits)
Beginning of year 974,732 664,135 293,257 (156) 1,931,968
End of year 962,501$ 706,201$ 277,265$ 240,310$ 2,186,277$
CITY OF FARMINGTON
General Debt Service Fund
Combining Schedule of Revenues, Expenditures,
and Changes in Fund Balances by Account
Year Ended December 31, 2025
-99-
Page 249 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 250 of 356
-100-
BUDGETARY COMPARISON SCHEDULES
Private Capital Projects Fund
Utility Trunk Capital Projects Fund
Pavement Management Capital Projects Fund
Street Improvements Capital Projects Fund
Closed Bond Debt Service Fund
Nonmajor Special Revenue Funds
Economic Development
Special Taxing Areas
Public Safety Engagement
Park Improvement
Arena
Nonmajor Capital Projects Funds
Cable Communications
Capital Equipment
Recreation Facilities
Trail Improvements
Municipal Buildings
Emerald Ash Borer
Nonmajor Debt Service Fund
General
Page 251 of 356
Variance With
Original Budget Final Budget Actual Final Budget
Revenues
Investment earnings 22,600$ 22,600$ –$ (22,600)$
Other financing sources (uses)
Transfers out – (231,373) (231,373) –
Net change in fund balances 22,600$ (208,773)$ (231,373) (22,600)$
Fund balances
Beginning of year 231,373
End of year –$
CITY OF FARMINGTON
Private Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-101-
Page 252 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Charges for services 1,056,000$ 1,559,879$ 503,879$
Investment earnings 74,100 615,377 541,277
Total revenues 1,130,100 2,175,256 1,045,156
Expenditures
Current
Public works – 133,791 133,791
Capital outlay
Public works – 148,330 148,330
Total expenditures – 282,121 282,121
Excess of revenues over expenditures 1,130,100 1,893,135 763,035
Other financing sources (uses)
Transfers in 49,000 – (49,000)
Transfers out (1,750,000) (363,556) 1,386,444
Total other financing sources (uses)(1,701,000) (363,556) 1,337,444
Net change in fund balances (570,900)$ 1,529,579 2,100,479$
Fund balances
Beginning of year 9,879,233
End of year 11,408,812$
CITY OF FARMINGTON
Utility Trunk Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-102-
Page 253 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Charges for service –$ 41,303$ 41,303$
Investment earnings 31,200 163,795 132,595
Total revenues 31,200 205,098 173,898
Expenditures
Current
Public works 1,000,000 774,546 (225,454)
Excess (deficiency) of revenues
over expenditures (968,800) (569,448) 399,352
Other financing sources
Transfers in 800,000 800,000 –
Net change in fund balances (168,800)$ 230,552 399,352$
Fund balances
Beginning of year 2,999,996
End of year 3,230,548$
CITY OF FARMINGTON
Pavement Management Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-103-
Page 254 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Intergovernmental 700,000$ 34,095$ (665,905)$
Investment earnings 200 6,853 6,653
Other – 1,496 1,496
Total revenues 700,200 42,444 (657,756)
Expenditures
Current
Public works – 522,054 522,054
Capital outlay
Public works 3,800,000 2,996,558 (803,442)
Debt service
Interest and fiscal charges – 80,170 80,170
Total expenditures 3,800,000 3,598,782 (201,218)
Excess (deficiency) of revenues
over expenditures (3,099,800) (3,556,338) (456,538)
Other financing sources (uses)
Bonds issued 1,500,000 2,950,000 1,450,000
Premiums on bonds issued – 247,161 247,161
Transfers in 1,600,000 2,243,028 643,028
Transfers out – (191,692) (191,692)
Total other financing sources (uses)3,100,000 5,248,497 2,148,497
Net change in fund balances 200$ 1,692,159 1,691,959$
Fund balances (deficits)
Beginning of year (443,866)
End of year 1,248,293$
CITY OF FARMINGTON
Street Improvements Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-104-
Page 255 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Special assessments 286,052$ 247,588$ (38,464)$
Investment earnings 12,900 89,659 76,759
Total revenues 298,952 337,247 38,295
Expenditures
Debt service
Interest and fiscal charges – 1,199 1,199
Excess of revenues over expenditures 298,952 336,048 37,096
Other financing (uses)
Transfers out (255,000) (245,489) 9,511
Net change in fund balances 43,952$ 90,559 46,607$
Fund balances
Beginning of year 1,519,085
End of year 1,609,644$
CITY OF FARMINGTON
Closed Bond Debt Service Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-105-
Page 256 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Property taxes 250,000$ 250,000$ –$
Investment earnings 2,600 41,553 38,953
Total revenues 252,600 291,553 38,953
Expenditures
Current
Economic development 188,350 76,237 (112,113)
Excess of revenues over expenditures 64,250 215,316 151,066
Other financing (uses)
Transfers out – (30,052) (30,052)
Net change in fund balances 64,250$ 185,264 121,014$
Fund balances
Beginning of year 441,549
End of year 626,813$
CITY OF FARMINGTON
Economic Development Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-106-
Page 257 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Property taxes 170,000$ 134,936$ (35,064)$
Investment earnings 700 6,274 5,574
Total revenues 170,700 141,210 (29,490)
Expenditures
Current
Economic development 155,750 117,330 (38,420)
Net change in fund balances 14,950$ 23,880 8,930$
Fund balances
Beginning of year 133,159
End of year 157,039$
CITY OF FARMINGTON
Special Taxing Areas Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-107-
Page 258 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Investment earnings –$ 4,505$ 4,505$
Other
Donations 53,472 53,473 1
Total revenues 53,472 57,978 4,506
Expenditures
Current
Public safety 53,472 55,472 2,000
Net change in fund balances –$ 2,506 2,506$
Fund balances
Beginning of year 75,226
End of year 77,732$
CITY OF FARMINGTON
Public Safety Engagement Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-108-
Page 259 of 356
Variance With
Original Budget Final Budget Actual Final Budget
Revenues
Investment earnings 15,200 15,200$ 140,423$ 125,223$
Other
Donations – – 100 100
Rentals 8,465 8,465 7,466 (999)
Miscellaneous 200,000 200,000 303,243 103,243
Total revenues 223,665 223,665 451,232 227,567
Expenditures
Current
Parks and recreation 7,000 32,000 16,375 (15,625)
Capital outlay
Parks and recreation 155,000 78,352 75,935 (2,417)
Total expenditures 162,000 110,352 92,310 (18,042)
Excess of revenues
over expenditures 61,665 113,313 358,922 245,609
Other financing sources
Transfers in 155,000 155,000 155,000 –
Net change in fund balances 216,665$ 268,313$ 513,922 245,609$
Fund balances
Beginning of year 2,105,795
End of year 2,619,717$
CITY OF FARMINGTON
Park Improvement Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-109-
Page 260 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Charges for services 427,100$ 376,572$ (50,528)$
Investment earnings 400 1,360 960
Other
Donations 10,000 5,000 (5,000)
Rentals 5,500 9,215 3,715
Miscellaneous 4,500 4,000 (500)
Total revenues 447,500 396,147 (51,353)
Expenditures
Current
Parks and recreation 536,948 472,078 (64,870)
Capital outlay
Parks and recreation – 2,727 2,727
Total expenditures 536,948 474,805 (62,143)
Net change in fund balances (89,448)$ (78,658) 10,790$
Fund balances
Beginning of year 120,228
End of year 41,570$
CITY OF FARMINGTON
Arena Special Revenue Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-110-
Page 261 of 356
Variance With
Original Budget Final Budget Actual Final Budget
Revenues
Franchise taxes 75,000$ 75,000$ 108,334$ 33,334$
Investment earnings 8,500 8,500 54,651 46,151
Total revenues 83,500 83,500 162,985 79,485
Expenditures
Current
General government 106,030 223,005 171,577 (51,428)
Capital outlay
General government 20,000 20,000 1,216 (18,784)
Total expenditures 126,030 243,005 172,793 (70,212)
Net change in fund balances (42,530)$ (159,505)$ (9,808) 149,697$
Fund balances
Beginning of year 917,186
End of year 907,378$
CITY OF FARMINGTON
Cable Communications Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-111-
Page 262 of 356
Variance With
Original Budget Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 2,500$ 2,500$ –$
Investment earnings 11,600 11,600 47,475 35,875
Total revenues 11,600 14,100 49,975 35,875
Expenditures
Current
Public safety – 290,515 144,786 (145,729)
Capital outlay
Public safety 680,633 763,334 880,810 117,476
Debt service
Principal – – 255,000 255,000
Interest and fiscal charges – – 25,079 25,079
Total expenditures 680,633 1,053,849 1,305,675 251,826
Excess (deficiency) of revenues
over expenditures (669,033) (1,039,749) (1,255,700) (215,951)
Other financing sources
Sale of capital assets 48,000 48,000 44,163 (3,837)
Leases issued – – 182,995 182,995
Transfers in 681,000 922,487 1,004,730 82,243
Total other financing sources 729,000 970,487 1,231,888 261,401
Net change in fund balances 59,967$ (69,262)$ (23,812) 45,450$
Fund balances
Beginning of year 815,582
End of year 791,770$
CITY OF FARMINGTON
Capital Equipment Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-112-
Page 263 of 356
Variance With
Final Budget Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 730,233$ 740,459$ 10,226$
Investment earnings 1,800 1,800 31,106 29,306
Other
Donations – 22,335 53,179 30,844
Miscellaneous – – 7,749 7,749
Total revenues 1,800 754,368 832,493 78,125
Expenditures
Current
Parks and recreation – – 105,758 105,758
Capital outlay
Parks and recreation – 2,312,635 2,276,555 (36,080)
Total expenditures – 2,312,635 2,382,313 69,678
Excess (deficiency) of revenues
over expenditures 1,800 (1,558,267) (1,549,820) 8,447
Other financing sources
Sale of capital assets – – 1,809 1,809
Transfers in – 2,000 2,000 –
Total other financing sources – 2,000 3,809 1,809
Net change in fund balances 1,800$ (1,556,267)$ (1,546,011) 10,256$
Fund balances
Beginning of year 1,796,027
End of year 250,016$
CITY OF FARMINGTON
Recreation Facilities Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-113-
Page 264 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 6,004$ 6,004$
Investment earnings 3,900 38,964 35,064
Total revenues 3,900 44,968 41,068
Expenditures
Current
Parks and recreation 220,000 – (220,000)
Excess (deficiency) of revenues
over expenditures (216,100) 44,968 261,068
Other financing sources
Transfers in 220,000 220,000 –
Net change in fund balances 3,900$ 264,968 261,068$
Fund balances
Beginning of year 468,738
End of year 733,706$
CITY OF FARMINGTON
Trail Improvements Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-114-
Page 265 of 356
Variance With
Final Budget Final Budget Actual Final Budget
Revenues
Intergovernmental –$ 869,000$ 702,709$ (166,291)$
Investment earnings 3,000 3,000 17,922 14,922
Other
Rental 142,000 142,000 – (142,000)
Total revenues 145,000 1,014,000 720,631 (293,369)
Expenditures
Current
General government 389,800 93,000 110,954 17,954
Capital outlay
General government – 869,000 715,946 (153,054)
Total expenditures 389,800 962,000 826,900 (135,100)
Excess (deficiency) of revenues
over expenditures (244,800) 52,000 (106,269) (158,269)
Other financing sources
Transfers in 265,000 496,373 653,207 156,834
Net change in fund balances 20,200$ 548,373$ 546,938 (1,435)$
Fund balances
Beginning of year 358,618
End of year 905,556$
CITY OF FARMINGTON
Municipal Buildings Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-115-
Page 266 of 356
Variance With
Original Budget Final Budget Actual Final Budget
Revenues
Intergovernmental –$ –$ 251,357$ 251,357$
Investment earnings – – 22,007 22,007
– – 273,364 273,364
Expenditures
Current
Public works 500,000 372,485 457,175 84,690
Capital outlay
Public works – – 850 850
Total expenditures 500,000 372,485 458,025 85,540
Excess (deficiency) of revenues
over expenditures (500,000) (372,485) (184,661) 187,824
Other financing (uses)
Transfers out – (127,515) (128,543) (1,028)
Net change in fund balances (500,000)$ (500,000)$ (313,204) 186,796$
Fund balances
Beginning of year 1,280,806
End of year 967,602$
CITY OF FARMINGTON
Emerald Ash Borer Capital Projects Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-116-
Page 267 of 356
Original and Variance With
Final Budget Actual Final Budget
Revenues
Property taxes 1,677,692$ 1,677,693$ 1$
Investment earnings 5,200 71,305 66,105
Total revenues 1,682,892 1,748,998 66,106
Expenditures
Debt service
Principal 1,355,000 1,355,000 –
Interest and fiscal charges 385,020 385,178 158
Total expenditures 1,740,020 1,740,178 158
Excess (deficiency) of revenues
over expenditures (57,128) 8,820 65,948
Other financing sources (uses)
Transfers in 255,000 245,489 (9,511)
Transfers out (49,000) – 49,000
Total other financing sources (uses)206,000 245,489 39,489
Net change in fund balances 148,872$ 254,309 105,437$
Fund balances
Beginning of year 1,931,968
End of year 2,186,277$
CITY OF FARMINGTON
General Debt Service Fund
Budgetary Comparison Schedule
Year Ended December 31, 2025
-117-
Page 268 of 356
-118-
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 269 of 356
Property
Employee and Liability Information
Expense Insurance Fleet Technology Total
Assets
Current assets
Cash and investments 1,236,879$ 486,206$ 6,389$ 1,186,384$ 2,915,858$
Receivables
Accounts 2,288 – – – 2,288
Interest 5,102 2,797 37 6,825 14,761
Prepaid items – – – 12,885 12,885
Total current assets 1,244,269 489,003 6,426 1,206,094 2,945,792
Noncurrent assets
Capital assets
Machinery and equipment – – 99,124 – 99,124
Less accumulated depreciation – – (98,578)– (98,578)
Total capital assets – – 546 – 546
Total assets 1,244,269$ 489,003$ 6,972$ 1,206,094$ 2,946,338$
Current liabilities
Accounts and contracts payable 56,816$ 4,811$ 9,483$ 258,021$ 329,131$
Accrued salaries and employee
benefits payable – – 6,662 8,150 14,812
Deposits payable 3 – – – 3
Compensated absences payable – – 12,525 23,843 36,368
Total current liabilities 56,819 4,811 28,670 290,014 380,314
Net position
Investment in capital assets – – 546 – 546
Unrestricted 1,187,450 484,192 (22,244) 916,080 2,565,478
Total net position 1,187,450 484,192 (21,698) 916,080 2,566,024
Total liabilities and net position 1,244,269$ 489,003$ 6,972$ 1,206,094$ 2,946,338$
as of December 31, 2025
CITY OF FARMINGTON
Internal Service Funds
Combining Statement of Net Position
-119-
Page 270 of 356
Property
Employee and Liability Information
Expense Insurance Fleet Technology Total
Operating revenues
Charges for services 3,021,049$ –$ 377,902$ 1,105,968$ 4,504,919$
Insurance reimbursement – 338,701 – – 338,701
Total operating revenues 3,021,049 338,701 377,902 1,105,968 4,843,620
Operating expenses
Personal services 3,107,605 – 254,321 299,472 3,661,398
Professional services 87 – 42,118 935,175 977,380
Materials and supplies – – 47,991 39,677 87,668
Insurance – 383,812 – – 383,812
Depreciation – – 1,100 – 1,100
Total operating expenses 3,107,692 383,812 345,530 1,274,324 5,111,358
Operating income (loss)(86,643) (45,111) 32,372 (168,356) (267,738)
Nonoperating revenue
Investment earnings (charges)72,279 25,160 (193)58,128 155,374
Other – – 118 3,496 3,614
Total nonoperating revenues 72,279 25,160 (75) 61,624 158,988
Income (loss) before transfers (14,364) (19,951) 32,297 (106,732) (108,750)
Transfers in 40,352 22,000 – – 62,352
Change in net position 25,988 2,049 32,297 (106,732) (46,398)
Net position
Beginning of year 1,161,462 482,143 (53,995)1,022,812 2,612,422
End of year 1,187,450$ 484,192$ (21,698)$ 916,080$ 2,566,024$
Year Ended December 31, 2025
CITY OF FARMINGTON
Internal Service Funds
Combining Statement of Revenues, Expenses,
and Changes in Fund Net Position
-120-
Page 271 of 356
Property
Employee and Liability Information
Expense Insurance Fleet Technology Total
Cash flows from operating activities
Cash receipts from other funds and reimbursements 3,018,761$ 341,520$ 378,020$ 1,109,464$ 4,847,765$
Cash payments to employees for services (3,387,165) – (278,026) (279,127) (3,944,318)
Cash payments for interfund services used (87) (389,503) (93,595) (789,141) (1,272,326)
Net cash flows from operating activities (368,491) (47,983) 6,399 41,196 (368,879)
Cash flows from noncapital financing activities
Transfers in 40,352 22,000 – – 62,352
Cash flows from investing activities
Interest received (charged) on investments 75,881 25,210 (230) 57,660 158,521
Net increase (decrease) in cash and
cash equivalents (252,258) (773) 6,169 98,856 (148,006)
Cash and cash equivalents
Beginning of year 1,489,137 486,979 220 1,087,528 3,063,864
End of year 1,236,879$ 486,206$ 6,389$ 1,186,384$ 2,915,858$
Reconciliation of operating income (loss) to net
cash flows from operating activities
Operating income (loss) (86,643)$ (45,111)$ 32,372$ (168,356)$ (267,738)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities
Depreciation – – 1,100 – 1,100
Other – – 118 3,496 3,614
Change in assets and liabilities
Accounts receivable – 2,819 – – 2,819
Due from other governments (2,288) – – – (2,288)
Prepaid items – – – (12,885) (12,885)
Accounts and contracts payable 56,794 (5,691) (3,486) 198,596 246,213
Accrued salaries and employee benefits (332,031) – 6,662 8,150 (317,219)
Deposits payable (4,323) – – – (4,323)
Compensated absences payable – – (30,367) 12,195 (18,172)
Total adjustments (281,848) (2,872) (25,973) 209,552 (101,141)
Net cash flows from operating activities (368,491)$ (47,983)$ 6,399$ 41,196$ (368,879)$
Year Ended December 31, 2025
CITY OF FARMINGTON
Internal Service Funds
Combining Statement of Cash Flows
-121-
Page 272 of 356
STATISTICAL SECTION
(UNAUDITED)
Page 273 of 356
Page 274 of 356
-122-
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 275 of 356
2016 2017 2018 2019
Governmental activities
Net investment in capital assets 23,684,773$ 28,820,307$ 32,909,853$ 33,867,761$
Restricted 10,441,391 6,961,837 4,797,191 5,343,074
Unrestricted 5,142,435 6,576,959 7,997,614 8,001,782
Total governmental activities net position 39,268,599$ 42,359,103$ 45,704,658$ 47,212,617$
Business-type activities
Net investment in capital assets 53,225,787$ 51,464,649$ 50,747,479$ 53,677,776$
Restricted 2,231,966 2,238,206 2,316,500 2,461,488
Unrestricted 12,575,526 13,508,485 14,594,293 13,187,014
Total business-type activities net position 68,033,279$ 67,211,340$ 67,658,272$ 69,326,278$
Primary government
Net investment in capital assets 76,910,560$ 80,284,956$ 83,657,332$ 87,545,537$
Restricted 12,673,357 9,200,043 7,113,691 7,804,562
Unrestricted 17,717,961 20,085,444 22,591,907 21,188,796
Total primary government net position 107,301,878$ 109,570,443$ 113,362,930$ 116,538,895$
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.
Fiscal Year
CITY OF FARMINGTON
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-123-
Page 276 of 356
2020 2021 2022 2023 2024 2025
35,883,311$ 36,819,084$ 37,033,206$ 39,137,210$ 41,670,431$ 43,468,579$
5,224,015 9,841,913 10,556,611 9,132,767 9,542,246 11,446,272
9,236,760 11,591,481 14,198,632 16,705,704 24,455,508 26,381,127
50,344,086$ 58,252,478$ 61,788,449$ 64,975,681$ 75,668,185$ 81,295,978$
51,976,059$ 50,773,632$ 48,353,192$ 48,486,110$ 50,255,385$ 49,785,378$
2,461,488 2,461,488 2,461,488 2,461,488 2,461,488 2,461,488
15,418,911 18,123,198 18,266,640 21,351,782 21,273,059 23,537,363
69,856,458$ 71,358,318$ 69,081,320$ 72,299,380$ 73,989,932$ 75,784,229$
87,859,370$ 87,592,716$ 85,386,398$ 87,623,320$ 91,925,816$ 93,253,957$
7,685,503 12,303,401 13,018,099 11,594,255 12,003,734 13,907,760
24,655,671 29,714,679 32,465,272 38,057,486 45,728,567 49,918,490
120,200,544$ 129,610,796$ 130,869,769$ 137,275,061$ 149,658,117$ 157,080,207$
-124-
Page 277 of 356
2016 2017 2018 2019
Expenses
Governmental activities
General government 2,268,779$ 2,178,067$ 2,511,818$ 2,609,059$
Public safety 6,979,608 6,472,115 5,728,925 6,118,203
Public works 5,497,796 3,888,778 4,358,465 5,612,872
Park and recreation 1,904,792 1,782,783 1,772,351 2,202,631
Economic development 40,000 40,000 30,000 50,000
Interest and fiscal charges 1,032,748 549,075 350,431 404,893
Total governmental activities expenses 17,723,723$ 14,910,818$ 14,751,990$ 16,997,658$
Business-type activities
Liquor operations 4,448,932$ 4,634,488$ 4,890,304$ 5,257,236$
Sewer operations 2,051,152 2,105,901 1,931,276 2,326,630
Solid waste 1,753,162 1,864,175 2,092,844 1,913,258
Storm water 534,988 571,572 521,465 557,749
Water 1,359,215 1,313,482 1,246,667 1,439,178
Street light 288,924 197,150 180,254 165,886
Total business-type activities 10,436,373 10,686,768 10,862,810 11,659,937
Total primary government expenses 28,160,096$ 25,597,586$ 25,614,800$ 28,657,595$
Program revenues
Governmental activities
Charges for services
General government 668,849$ 434,411$ 467,417$ 471,569$
Public safety 459,240 405,648 408,434 437,054
Public works 195,716 76,049 273,695 189,282
Parks and recreation 651,936 619,026 709,490 582,631
Operating grants and contributions 744,730 684,376 702,853 838,569
Capital grants and contributions 818,545 848,167 942,627 869,849
Total governmental activities program revenues 3,539,016$ 3,067,677$ 3,504,516$ 3,388,954$
CITY OF FARMINGTON
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
-125-
Page 278 of 356
2020 2021 2022 2023 2024 2025
2,933,062$ 2,560,243$ 3,626,853$ 5,200,453$ 5,759,500$ 5,025,813$
6,834,253 6,549,508 7,936,364 8,712,115 8,592,752 10,216,219
5,262,979 3,977,134 5,333,328 3,806,386 4,625,171 6,665,255
1,430,839 2,789,326 2,522,085 2,583,554 2,715,378 2,632,572
276,900 406,795 247,970 177,927 137,901 193,567
193,167 189,858 288,751 239,992 327,204 227,449
16,931,200$ 16,472,864$ 19,955,351$ 20,720,427$ 22,157,906$ 24,960,875$
4,958,705$ 5,256,311$ 5,977,403$ 6,256,081$ 6,359,443$ 6,418,634$
2,334,000 2,459,637 2,606,288 2,872,236 3,241,040 3,158,763
2,630,874 2,566,976 87,359 76,270 – –
530,438 581,402 719,225 725,039 680,636 969,117
1,626,279 1,764,908 1,814,354 1,889,215 2,032,420 2,013,156
173,604 180,528 210,174 214,757 198,028 233,354
12,253,900 12,809,762 11,414,803 12,033,598 12,511,567 12,793,024
29,185,100$ 29,282,626$ 31,370,154$ 32,754,025$ 34,669,473$ 37,753,899$
631,118$ 855,812$ 999,320$ 1,048,415$ 1,675,600$ 1,269,597$
413,594 560,518 550,052 581,869 602,687 645,884
201,401 708,197 1,215,397 965,032 2,332,256 1,714,430
389,870 987,028 913,710 829,870 1,245,464 995,253
713,470 1,062,789 1,076,883 1,924,255 1,191,276 1,674,937
50,478 4,106,221 833,090 1,002,806 3,165,413 2,082,374
2,399,931$ 8,280,565$ 5,588,452$ 6,352,247$ 10,212,696$ 8,382,475$
-126-(continued)
Page 279 of 356
2016 2017 2018 2019
Program revenues (continued)
Business-type activities
Charges for services
Liquor operations 4,742,313$ 4,967,468$ 5,256,645$ 5,608,012$
Sewer 2,043,859 2,068,388 2,045,728 2,117,934
Solid waste 2,041,561 2,061,324 2,071,672 2,244,569
Storm water 643,479 647,767 737,115 1,130,563
Water 1,631,643 1,681,079 1,852,381 2,281,793
Street light 224,781 225,570 226,674 226,971
Operating grants and contributions 23,000 24,000 30,263 34,190
Capital grants and contributions – – – 81,634
Total business-type activities program revenues 11,350,636 11,675,596 12,220,478 13,725,666
Total primary government program revenues 14,889,652$ 14,743,273$ 12,220,478$ 13,807,300$
Net (expense) revenue
Governmental activities (14,184,707)$ (11,843,141)$ (11,247,474)$ (13,608,704)$
Business-type activities 914,263 988,828 1,357,668 2,065,729
Total primary government net expense (13,270,444)$ (10,854,313)$ (9,889,806)$ (11,542,975)$
General revenues and other changes in net position
Governmental activities
Property taxes 11,806,302$ 12,181,830$ 12,659,480$ 12,916,115$
Franchise taxes 275,691 266,728 266,324 262,148
Unrestricted grants and contributions 287,252 289,854 316,100 317,172
Unrestricted investment earnings (charges)255,021 200,851 239,714 657,977
Gain on sale of capital assets – 54,408 531 17,218
Transfers 1,428,106 1,939,974 1,110,880 946,033
Total governmental activities 14,052,372$ 14,933,645$ 14,593,029$ 15,116,663$
Business-type activities
Unrestricted grants and contributions –$ –$ –$ –$
Unrestricted investment earnings (charges)139,249 129,207 200,144 548,310
Gain on sale of capital assets – – – –
Transfers (1,428,106) (1,939,974) (1,110,880) (946,033)
Total business-type activities (1,288,857) (1,810,767) (910,736) (397,723)
Total primary government 12,763,515$ 13,122,878$ 13,682,293$ 14,718,940$
Change in net position
Governmental activities (132,335)$ 3,090,504$ 3,345,555$ 1,507,959$
Business-type activities (374,594) (821,939) 446,932 1,668,006
Total primary government (506,929)$ 2,268,565$ 3,792,487$ 3,175,965$
Fiscal Year
CITY OF FARMINGTON
Changes in Net Position
Last Ten Fiscal Years (continued)
(accrual basis of accounting)
-127-
Page 280 of 356
2020 2021 2022 2023 2024 2025
5,347,194$ 5,724,828$ 6,391,785$ 6,770,039$ 6,951,096$ 6,918,271$
2,160,808 2,264,006 2,611,202 2,762,566 3,284,422 3,930,807
2,692,155 2,858,958 27,491 10,605 – –
1,149,665 1,158,564 1,227,091 1,327,620 1,422,651 1,485,547
2,533,753 3,251,453 2,533,222 2,799,075 2,378,085 2,883,477
232,990 232,378 236,117 238,805 251,731 265,493
26,710 240,598 30,616 10,822 16,485 7,258
– 476,930 – – 2,573,529 –
14,143,275 16,207,715 13,057,524 13,919,532 16,877,999 15,490,853
14,143,275$ 16,684,645$ 13,057,524$ 13,919,532$ 19,451,528$ 15,490,853$
(14,531,269)$ (8,192,299)$ (14,366,899)$ (14,368,180)$ (11,945,210)$ (16,578,400)$
1,889,375 3,397,953 1,642,721 1,885,934 4,366,432 2,697,829
(12,641,894)$ (4,794,346)$ (12,724,178)$ (12,482,246)$ (7,578,778)$ (13,880,571)$
13,044,381$ 13,692,990$ 14,463,106$ 15,284,709$ 16,210,861$ 17,391,710$
244,839 229,355 227,017 201,431 179,503 228,334
2,042,381 107,962 207,501 944,364 1,117,153 345,293
526,283 (91,107) (874,200) 1,407,087 1,492,084 2,146,682
16,174 – 81,008 136,368 88,177 6,453
1,788,680 1,831,571 3,393,908 (418,547) 3,549,936 2,087,721
17,662,738$ 15,770,771$ 17,498,340$ 17,555,412$ 22,637,714$ 22,206,193$
18,136$ –$ –$ –$ –$ –$
411,349 (64,522) (525,811) 913,579 833,016 1,184,189
– – – – 41,040 –
(1,788,680) (1,831,571) (3,393,908) 418,547 (3,549,936) (2,087,721)
(1,359,195) (1,896,093) (3,919,719) 1,332,126 (2,675,880) (903,532)
16,303,543$ 13,874,678$ 13,578,621$ 18,887,538$ 19,961,834$ 21,302,661$
3,131,469$ 7,578,472$ 3,131,441$ 3,187,232$ 10,692,504$ 5,627,793$
530,180 1,501,860 (2,276,998) 3,218,060 1,690,552 1,794,297
3,661,649$ 9,080,332$ 854,443$ 6,405,292$ 12,383,056$ 7,422,090$
-128-
Page 281 of 356
2016 2017 2018 2019
General Fund
Nonspendable 33,762$ 34,529$ 5,045$ 109,523$
Restricted – – – –
Committed – – 240,000 –
Unassigned 5,031,529 5,666,183 5,477,026 5,761,747
Total General Fund 5,065,291$ 5,700,712$ 5,722,071$ 5,871,270$
All other governmental funds
Nonspendable 110$ –$ –$ –$
Restricted 16,959,150 4,071,837 2,009,629 3,196,214
Committed 5,158,828 6,373,022 7,586,959 7,298,103
Assigned – – – –
Unassigned – – – –
Total all other governmental funds 22,118,088$ 10,444,859$ 9,596,588$ 10,494,317$
Total all funds 27,183,379$ 16,145,571$ 15,318,659$ 16,365,587$
Fiscal Year
CITY OF FARMINGTON
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-129-
Page 282 of 356
2020 2021 2022 2023 2024 2025
141,196$ 83,088$ 1,635$ 1,169$ 1,949$ 2,756$
– – – – 88,549 –
– – – – – –
6,060,870 6,843,396 7,829,882 8,987,268 11,268,652 12,970,921
6,202,066$ 6,926,484$ 7,831,517$ 8,988,437$ 11,359,150$ 12,973,677$
1,184,677$ 1,365$ 2,500$ 14,714$ 300$ –$
3,235,717 4,411,713 4,799,381 5,007,682 6,217,629 7,484,696
8,427,605 8,876,306 13,005,454 13,191,023 18,374,939 19,735,375
– – – 1,598,024 1,519,085 1,609,644
– (29,832) (172,932) (448,106) (443,866) (267,138)
12,847,999$ 13,259,552$ 17,634,403$ 19,363,337$ 25,668,087$ 28,562,577$
19,050,065$ 20,186,036$ 25,465,920$ 28,351,774$ 37,027,237$ 41,536,254$
-130-
Page 283 of 356
2016 2017 2018 2019
Revenues
Property taxes 11,852,567$ 12,186,789$ 12,665,721$ 12,926,730$
Franchise taxes 275,691 266,728 266,324 262,148
Special assessments 545,777 532,744 314,594 625,308
Licenses and permits 650,311 415,005 449,350 421,578
Intergovernmental 1,633,388 1,632,170 1,768,219 1,796,575
Charges for services 1,077,860 929,784 1,094,360 1,042,292
Fines and forfeits 41,750 45,102 60,182 63,561
Investment earnings (charges)237,224 183,402 209,968 567,539
Other 260,564 201,288 305,014 226,316
Total revenues 16,575,132 16,393,012 17,133,732 17,932,047
Expenditures
Current
General government 1,996,410 2,051,143 2,311,024 2,407,932
Public safety 5,301,211 5,537,937 5,348,888 5,705,820
Public works 2,006,606 2,381,695 2,690,271 3,272,313
Park and recreation 1,513,411 1,585,656 1,595,924 1,855,261
Economic development 40,000 40,000 30,000 50,000
Capital outlay 2,755,780 586,495 1,597,191 4,715,989
Debt service
Principal 4,411,534 6,395,000 5,180,000 2,435,000
Interest and fiscal charges 1,095,380 818,144 503,061 412,373
Total expenditures 19,120,332 19,396,070 19,256,359 20,854,688
Excess (deficiency) of revenues
over expenditures (2,545,200) (3,003,058) (2,122,627) (2,922,641)
Other financing sources (uses)
Debt issued 10,120,095 – – 1,009,555
Payment of refunded debt – (9,990,000) – –
Sale of capital assets 13,043 54,408 11,000 18,939
Transfers in 5,590,211 2,981,402 3,214,991 4,280,247
Transfers out (4,541,237) (1,080,560) (1,930,276) (1,339,172)
Total other financing sources (uses)11,182,112 (8,034,750) 1,295,715 3,969,569
Net change in fund balances 8,636,912$ (11,037,808)$ (826,912)$ 1,046,928$
Debt service as a percentage of noncapital
expenditures 29.5% 37.9% 31.3% 16.5%
Fiscal Year
CITY OF FARMINGTON
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-131-
Page 284 of 356
2020 2021 2022 2023 2024 2025
13,049,745$ 13,700,787$ 14,449,100$ 15,251,002$ 16,155,545$ 17,420,670$
244,839 229,355 227,017 201,431 179,503 228,334
407,412 279,579 533,337 520,116 279,083 247,588
588,347 789,965 823,729 927,731 1,212,437 1,099,213
2,948,939 1,257,177 1,268,198 4,943,868 2,560,158 3,432,959
890,408 1,697,708 2,275,257 2,031,701 3,605,602 2,799,859
45,959 52,340 58,400 57,509 63,011 53,980
455,233 (81,823) (793,738) 1,277,985 1,375,645 1,991,308
161,687 600,280 648,430 437,525 1,120,257 671,533
18,792,569 18,525,368 19,489,730 25,648,868 26,551,241 27,945,444
2,637,945 2,693,428 3,191,346 4,184,318 4,815,337 3,636,901
5,917,499 6,438,859 6,834,703 7,206,927 7,573,676 8,609,446
2,794,566 2,639,935 3,261,324 3,866,764 4,940,557 6,326,827
1,560,781 1,884,846 1,939,271 2,243,990 2,445,797 2,405,174
276,900 385,434 241,518 177,927 137,901 193,567
2,664,884 3,045,812 3,978,547 5,661,851 3,720,761 7,283,748
2,910,000 2,155,000 2,199,417 1,706,097 1,712,484 1,610,000
397,231 368,738 361,727 396,541 412,062 491,626
19,159,806 19,612,052 22,007,853 25,444,415 25,758,575 30,557,289
(367,237) (1,086,684) (2,518,123) 204,453 792,666 (2,611,845)
1,279,300 – 4,088,692 714,239 3,577,464 3,380,156
– – – – – –
12,867 84,662 80,249 136,368 88,177 45,972
4,263,090 2,854,791 9,437,491 4,943,204 6,975,040 7,195,812
(2,503,542) (1,046,718) (6,212,955) (3,112,410) (2,757,884) (3,501,078)
3,051,715 1,892,735 7,393,477 2,681,401 7,882,797 7,120,862
2,684,478$ 806,051$ 4,875,354$ 2,885,854$ 8,675,463$ 4,509,017$
18.5% 14.1% 13.7% 10.9% 11.0% 9.5%
-132-
Page 285 of 356
Commercial/
Industrial,Less
Public Utility,Captured
Residential Railroads, and Agricultural Tax Increment
Property Personal Property Apartments Property Tax Capacity
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)
27,229,010 4,558,911 555,311 399,837 (125,936)
Note:
Source:
CITY OF FARMINGTON
Payable
Year
Tax Capacity Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
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.
2017
2016
2018
2019
2020
2021
2022
2023
2024
2025
-133-
Page 286 of 356
Less Estimated
Contributions Actual
to Fiscal Fiscal Disparities Total Tax Taxable
Disparities Pool Distribution Capacity Value Value
(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
(1,654,788) 5,359,694 36,322,039 47.908 3,050,678,639 1.19
Rate
Tax Capacity
Value as a
Percentage of
Actual Value
Total Direct
Tax Capacity
-134-
Page 287 of 356
Total Direct
and
Debt Total Dakota Other Special Overlapping
Operating Service City County ISD No. 192 Districts Tax Rate
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
43.248 4.660 47.908 19.948 37.794 2.229 107.878
N/A – Not Available
(1)
(2)
Source:
2017
Year
Fiscal
2016
CITY OF FARMINGTON
Property Tax Rates (1)
Direct and Overlapping Governments
Last Ten Fiscal Years
City Direct Rates Overlapping Rates (2)
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
2025
-135-
Page 288 of 356
Net Tax Net Tax
Capacity Capacity
Taxpayer Value Rank Value Rank
Northern Natural Gas 1,211,408$ 1 3.70 %527,830$ 1 3.05 %
Xcel Energy (Northern States Power)144,762 2 0.44 190,064 2 1.10
Dakota Storage, LLC 135,596 3 0.41 81,608 4 0.47
RLR Investments, LLC 129,915 4 0.40 67,886 7 0.39
Valmont Industries 122,458 5 0.37 68,696 6 0.40
Legacy Partners of Farmington, LLC 116,834 6 0.36 – – –
Dakota Electric Association 115,568 7 0.35 130,920 3 0.76
Minnesota Energy Resources 104,874 8 0.32 72,038 5 0.42
Seeger Properties, LLC 97,299 9 0.30 – – –
B&L Adventures, LLC 88,776 10 0.27 – – –
St. Francis Health Systems – – – 67,281 8 0.39
POR-MKR Real Estate, LLC – – – 65,470 9 0.38
Farmington City Center, LLC – – – 63,618 10 0.37
Total 2,267,490$ 6.93 %1,335,411$ 7.72 %
Source: Dakota County
Percentage
of Total
City Tax
Capacity
Value
Percentage
of Total
City Tax
Capacity
Value
2025 2016
Current Fiscal Year and Nine Years Prior
Principal Property Taxpayers
CITY OF FARMINGTON
-136-
Page 289 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 290 of 356
Total Tax Delinquent
Levy for Tax
Fiscal Year (1)Amount Collections (2)Amount
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 65,931 13,016,492 99.97
13,036,578 12,967,610 99.47 67,378 13,034,988 99.99
13,546,213 13,476,144 99.48 68,960 13,545,104 99.99
14,383,924 14,309,308 99.48 69,530 14,378,838 99.96
15,157,495 15,063,278 99.38 74,328 15,137,606 99.87
16,106,807 15,985,438 99.25 85,431 16,070,869 99.78
17,248,901 17,139,921 99.37 – 17,139,921 99.37
(1)
(2)
Source:
CITY OF FARMINGTON
Property Tax Levies and Collections
Last Ten Fiscal Years
Total Collections to Date
Collected Within the
Fiscal Year of Levy (2)
Percentage
of
Levy
2019
2018
2017
Year
Fiscal
2016
Percentage
of
Levy
2021
Includes fiscal disparity revenues.
Includes fiscal disparity revenues and is net of county/state adjustments.
Dakota County
2020
2022
2023
2024
2025
-137-
Page 291 of 356
General Special Certificates Net
Obligation Assessment of Premiums Lease
Bonds Bonds Indebtedness (Discounts)Liabilities
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
12,040,000 – 245,000 661,679 682,315
N/A – Not Applicable
Note 1:
Note 2:
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
2025
2017
Governmental Activities
CITY OF FARMINGTON
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
2023
2016
Fiscal Year
-138-
Page 292 of 356
Net Total
Revenue Premiums Lease Primary
Bonds (Discounts)Liabilities Government Per Capita
–$ –$ –$ 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
325,000 31,385 1,031,244 15,016,623 616 N/A
Income
of Personal
Percentage
Business-Type Activities
-139-
Page 293 of 356
Less Amounts
General Restricted for Market
Obligation Repaying Value of
Bonds (1)Principal Total Property
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
12,946,679 2,186,277 10,760,402 3,050,678,639 0.35
(1)
(2)
Note:
Source:
2024
CITY OF FARMINGTON
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Percentage of
Market Value of
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
N/A – Not Available
2022
2023
2021
2020
Property
2019
2018
2025
-140-
Page 294 of 356
Total City
Tax Capacity Per
Value Population (2)Capita
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
32,743,069 32.86 24,361 N/A 442
Percentage of
Total City
Tax Capacity
Value
Percentage
of Personal
Income (2)
-141-
Page 295 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 296 of 356
Estimated
Share of
Net Debt Overlapping
Outstanding Debt
Overlapping debt
Dakota County CDA 62,295,000$ 4.066 %2,533,026$
ISD No. 192, Farmington 82,410,000 56.935 46,920,321
ISD No. 196, Rosemount–Apple Valley–Eagan 358,710,000 0.560 2,008,045
Metropolitan Council (2)235,750,000 4.078 9,614,639
Total overlapping debt 739,165,000 61,076,030
Direct debt
City of Farmington direct debt 13,628,994 13,628,994
Total direct and overlapping debt 752,793,994$ 74,705,024$
(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, 2025
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)
-142-
Page 297 of 356
2016 2017 2018 2019
Debt limit 48,043,247$ 50,558,628$ 54,324,795$ 59,069,079$
Total net debt applicable to the limit 20,115,000 12,455,000 9,155,000 8,865,000
Legal debt margin 27,928,247$ 38,103,628$ 45,169,795$ 50,204,079$
Total net debt applicable to the limit
as a percentage of debt limit 41.87% 24.63% 16.85% 15.01%
Fiscal Year
CITY OF FARMINGTON
Legal Debt Margin Information
Last Ten Fiscal Years
-143-
Page 298 of 356
2020 2021 2022 2023 2024 2025
62,796,446$ 67,432,095$ 70,719,430$ 86,808,834$ 91,597,973$ 91,520,359$
8,655,000 7,760,000 10,275,000 9,095,000 7,695,000 9,410,000
54,141,446$ 59,672,095$ 60,444,430$ 77,713,834$ 83,902,973$ 82,110,359$
13.78% 11.51% 14.53% 10.48% 8.40% 10.28%
Market value 3,050,678,639$
Debt limit (3% of market value)91,520,359
Debt applicable to the limit 9,410,000
Legal debt margin 82,110,359$
Legal Debt Margin Calculations for Fiscal Year 2025
-144-
Page 299 of 356
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
2,405,260 (988,685) 1,416,575 70,000 16,300 86,300 1,641.45
(a)
(b)
Note:
Pledged Revenue Coverage
CITY OF FARMINGTON
Debt Service RequirementsFiscal
Last Ten Fiscal Years
Coverage
2020
2019
2018 No revenue bonds outstanding from 2015–2018
2017 No revenue bonds outstanding from 2015–2018
No revenue bonds outstanding from 2015–20182016
Year
2021
Fiscal years 2019–2025 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
2025
-145-
Page 300 of 356
Total
School Unemployment Personal Per Capita
Population (1)Households (1)Enrollment (3)Rate (2)Income (5)Income (4)
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
24,361 8,328 6,359 3.8 N/A N/A
(1)
(2)
(3)
(4)
(5)
2018
2019
2020
2021
2023
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
Metropolitan Council, one-year lag in reporting.
Minnesota Department of Employment and Economic Development – Dakota County Annual Rate.
ISD No. 192, Farmington Public Schools
U.S. Bureau of Economic Analysis – Per capita personal income for Dakota County residents.
2016
2022
2024
2017
2025
-146-
Page 301 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 302 of 356
Employees Employees
(1)Rank (1)Rank
ISD No. 192, Farmington Public Schools 880 1 17.5 %900 1 19.2 %
Federal Aviation Administration 368 2 7.3 600 2 12.8
Installed Building Solutions 309 3 6.1 – – –
Marschall Lines, Inc.230 4 4.6 175 4 3.7
Dakota Electric Association 202 5 4.0 200 3 4.3
Trinity Care Center and Trinity Terrace 200 6 4.0 175 4 3.7
City of Farmington 194 7 3.8 96 9 2.0
Valmont Industries 182 8 3.6 130 8 2.8
R&L Carriers 160 9 3.2 163 6 3.5
Kemps Dairy 145 10 2.9 132 7 2.8
JIT Powder Coating – – – 65 10 1.4
Total 2,870 56.9 %2,636 56.1 %
(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
2025
Taxpayer (2)
Employment
of Total
Employment
of Total
Percentage
Percentage
2016
-147-
Page 303 of 356
2016 2017 2018 2019
General government
Administration 2.00 1.00 1.00 1.00
Finance 5.50 5.50 5.50 5.50
Human resources/information
technology/communications 3.00 4.00 5.00 5.00
Community development 3.00 3.00 4.00 5.00
Total general government 13.50 13.50 15.50 16.50
Public safety
Police administration 5.15 5.15 5.00 5.00
Police patrol 17.00 17.00 15.00 16.00
Investigations 5.00 5.00 6.00 6.00
Fire 1.50 1.50 1.00 2.00
Total public safety 28.65 28.65 27.00 29.00
Public works
Building inspections 3.20 3.50 3.50 3.00
Engineering 4.50 5.50 4.50 5.00
Streets 9.50 9.50 9.00 10.00
Natural resources 1.00 – 1.00 1.00
Total public works 18.20 18.50 18.00 19.00
Parks and recreation
Park maintenance 3.50 3.60 4.00 4.00
Building maintenance 1.00 1.00 1.00 3.00
Recreation programming 2.00 2.00 2.00 2.00
Total parks and recreation 6.50 6.60 7.00 9.00
Senior center 1.40 1.40 1.00 1.00
Swimming pool 0.40 0.40 – –
Arena 2.35 2.35 2.00 2.00
Liquor operations 8.00 8.00 9.50 9.00
Solid waste 5.50 5.50 5.50 5.00
Fleet 2.00 2.00 2.00 2.00
Total employees 86.50 86.90 87.50 92.50
Note:
Source: Various city departments
CITY OF FARMINGTON
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Fiscal Year
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.
-148-
Page 304 of 356
2020 2021 2022 2023 2024 2025
1.00 2.00 2.00 2.00 2.00 3.00
5.50 5.50 5.50 4.50 4.50 4.50
5.00 5.00 6.00 6.00 6.00 6.00
4.00 4.00 3.00 4.00 4.00 4.00
15.50 16.50 16.50 16.50 16.50 17.50
5.00 5.00 5.00 5.00 5.00 6.00
17.00 17.00 18.00 19.00 19.00 20.00
6.00 6.00 6.00 6.00 6.00 5.00
2.00 2.00 2.00 2.00 3.00 3.00
30.00 30.00 31.00 32.00 33.00 34.00
4.00 4.00 5.00 5.00 5.00 5.00
5.00 5.00 5.00 6.00 6.00 5.00
10.00 10.00 9.50 10.00 10.00 12.00
– – 1.00 1.00 1.00 1.00
19.00 19.00 20.50 22.00 22.00 23.00
4.00 4.00 7.00 7.00 7.00 7.50
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 12.00 12.00 12.00 12.50
1.50 1.50 1.50 1.50 1.50 1.70
– – – – – –
2.00 2.00 1.50 1.50 1.50 1.50
13.00 13.00 13.00 13.00 13.00 13.00
5.00 5.00 – – – –
2.00 2.00 2.00 2.00 2.00 2.00
97.00 98.00 98.00 100.50 101.50 105.20
-149-
Page 305 of 356
2016 2017 2018 2019
General government
Elections 1 N/A 1 N/A
Registered voters 13,788 N/A 13,403 N/A
Number of votes cast 11,545 N/A 9,632 N/A
Voter participation (registered) 84.0%N/A 72.0%N/A
Public safety
Police
Arrests 351 281 284 253
All citations and warnings 2,070 2,021 2,484 2,176
Calls for service 11,943 11,221 13,033 14,005
Fire
Medical calls 356 452 411 480
Fire calls 345 407 340 370
Inspections
Building permits 1,184 1,036 1,059 1,049
Value of building permits (in millions)38$ 19$ 26$ 22$
Parks and recreation
Parks
Park reservations 81 71 64 59
Pool (closed after 2017)
Pool open swim admissions 7,372 6,302 – –
Pool swim lesson registrations 309 136 – –
Pool season passes sold NA N/A – –
Pool punch cards sold 125 139 – –
Swim bus riders 507 496 – –
Rambling River Center
Memberships 404 467 497 372
Program participation 13,042 15,203 16,015 17,730
Number of volunteers 82 80 69 74
Total volunteer hours 8,573 4,298 3,426 3,749
Ice arena
Ice skating lessons total participants 329 284 296 310
Arena rental hours 1,285 1,490 1,380 1,390
Outdoor rinks total number of skaters 5,187 7,276 5,451 3,892
Other
Recreation program/event participants 8,344 8,171 7,034 5,657
Youth scholarships provided 6 8 1 –
Source:Various city departments
Function/Program
N/A – Not Available
Fiscal Year
CITY OF FARMINGTON
Operating Indicators by Function
Last Ten Years
-150-
Page 306 of 356
2020 2021 2022 2023 2024 2025
1 N/A 1 N/A 1 N/A
14,736 N/A 14,480 N/A 16,108 N/A
12,102 N/A 9,479 N/A 13,538 N/A
82.0%N/A 65.0%N/A 84.0%N/A
232 268 230 222 173 151
2,319 1,982 2,434 2,552 2,745 3,134
15,413 11,361 13,567 13,564 14,226 14,798
467 712 747 714 653 819
284 353 465 436 418 457
1,318 1,705 1,155 1,960 1,672 1,541
27$ 40$ 42$ 53$ 93$ 62$
– 78 85 71 79 84
– – – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –
305 471 399 371 369 409
3,651 8,728 11,777 15,273 12,172 13,243
31 57 65 52 32 55
347 1,732 2,135 1,932 1,656 1,443
122 221 211 155 168 184
1,191 1,641 1,537 1,546 1,601 1,549
4,209 4,142 6,115 4,694 902 3,104
361 5,927 6,746 7,397 6,069 6,495
– 1 2 5 – –
-151-
Page 307 of 356
Function/Program 2016 2017 2018 2019
Public safety
Police
Stations 1 1 1 1
Patrol squads 15 15 16 19
Fire
Stations 2 2 2 2
Fire trucks 8 8 8 8
Public works
Vehicles 29 29 29 30
Streets (miles)89 89 89 89
Parks and recreation
Senior center – building 1 1 1 1
Swimming pool (closed after 2017)1 1 – –
Ice arena – building 1 1 1 1
Parks 23 23 24 26
Solid waste
Compactor trucks 5 5 5 5
Sanitary sewer
Collection system (miles)84 90 90 87
Storm sewer
Storm sewer (miles)73 78 78 78
Water
Water main (miles)109 113 113 113
Wells 7 7 7 8
Water reservoirs 2 2 2 2
Source: The City’s financial records
CITY OF FARMINGTON
Capital Assets Statistics by Function/Program
Last Ten Years
Fiscal Year
-152-
Page 308 of 356
2020 2021 2022 2023 2024 2025
1 1 1 1 1 1
19 19 21 18 17 17
2 2 2 2 2 2
8 8 8 5 6 17
31 31 28 27 26 26
90 90 90 92 93 94
1 1 1 1 1 1
– – – – – –
1 1 1 1 1 1
26 26 27 27 28 28
6 6 – – – –
90 92 94 97 98 98
81 84 85 86 87 87
116 119 121 123 124 124
9 9 9 9 9 7
2 2 2 2 2 2
-153-
Page 309 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 310 of 356
Management Report
for
City of Farmington, Minnesota
December 31, 2025
Page 311 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 312 of 356
To the City Council and Management
City of Farmington, Minnesota
We have prepared this management report in conjunction with our audit of the City of Farmington,
Minnesota’s (the City) financial statements for the year ended December 31, 2025. We have organized this
report into the following sections:
•Audit Summary
•Governmental Funds Overview
•General Fund Overview
•Enterprise Funds Overview
•Government-Wide Financial Statements
•Accounting and Auditing Updates
We would be pleased to further discuss any of the information contained in this report or any other concerns
that you would like us to address. We would also like to express our thanks for the courtesy and assistance
extended to us during our audit.
The purpose of this report is solely to provide those charged with governance of the City, management, and
those who have responsibility for oversight of the financial reporting process comments resulting from our
audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable
for any other purpose.
Respectfully submitted,
LB CARLSON, LLP
Minneapolis, Minnesota
June 23, 2026
Page 313 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 314 of 356
-1-
AUDIT SUMMARY
The following is a summary of our audit work, key conclusions, and other information that we consider
important or that is required to be communicated to the City Council, administration, or those charged with
governance of the City.
OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED
STATES OF AMERICA, GOVERNMENT AUDITING STANDARDS, AND TITLE 2 U.S. CODE OF
FEDERAL REGULATIONS (CFR) PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST
PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE)
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2025. Professional standards require that we provide you with information about our
responsibilities under auditing standards generally accepted in the United States of America, Government
Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope
and timing of our audit. We have communicated such information to you verbally and in our audit
engagement letter. Professional standards also require that we communicate the following information
related to our audit.
PLANNED SCOPE AND TIMING OF THE AUDIT
We performed the audit according to the planned scope and timing previously discussed and coordinated
in order to obtain sufficient audit evidence and complete an effective audit.
AUDIT OPINIONS AND FINDINGS
Based on our audit of the City’s financial statements for the year ended December 31, 2025:
• We have issued unmodified opinions on the City’s basic financial statements.
• We reported no deficiencies involving the City’s internal control over financial reporting that we
consider to be material weaknesses.
• The results of our testing disclosed no instances of noncompliance that are required to be reported
under Governmental Auditing Standards.
• We reported that the Schedule of Expenditures of Federal Awards is fairly stated, in all material
respects, in relation to the basic financial statements.
• The results of our tests indicate that the City has complied, in all material respects, with the types
of compliance requirements that could have a direct and material effect on each of its major federal
programs.
• We reported two deficiencies in the City’s internal controls over compliance that we considered to
be significant deficiencies with the types of compliance requirements that could have a direct and
material effect on each of its major federal programs.
o The City’s internal controls over compliance with federal suspension and debarment were
not sufficient to ensure the City’s determination that vendors participating in federal
contracts were not suspended or debarred was adequately documented.
o The City’s internal controls over compliance were not sufficient to ensure the Schedule of
Expenditures of Federal Awards was prepared accurately.
• We reported no findings based on our testing of the City’s compliance with Minnesota laws and
regulations.
Page 315 of 356
-2-
OTHER OBSERVATIONS AND RECOMMENDATIONS
Internal Controls Over Vendors
A relatively common method of attempting to defraud local governments involves inducing them to pay
claims from fictitious vendors for goods or services that were never provided. Strong safeguards over
adding new vendors or making changes to existing vendors within the government’s accounts payable
system is an important control to mitigate this risk. Some considerations in this area include:
• Limiting the number of employees with access to add or alter vendor records within the accounts
payable system,
• Requiring vendor additions or changes to be reviewed and approved by supervisory personnel,
preferably one not directly involved in processing accounts payable,
• Verifying the legitimacy of vendors by obtaining a W-9 or other means,
• Verifying any changes to vendor address or banking information prior to processing payments, and
• Periodically reviewing the vendor listing to remove inactive vendors from the system.
Uniform Guidance Revisions
The U.S. Office of Management and Budget issued a revision to Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance) in 2024, aiming to streamline grant management and reduce grantor agency
and recipient burden. The revised guidance is effective for new federal grant entitlements awarded on or
after October 1, 2024.
The revision includes a number of significant changes to the federal Single Audit process, including: an
increase in dollar threshold for requiring a Single Audit from $750,000 to $1,000,000; changes to the
thresholds and process used for determining major programs; an increase in the threshold for the disposition
of equipment and remitting unused supplies from $5,000 to $10,000; and an increase in the federal
de minimis indirect cost rate from 10 percent to 15 percent. Key changes to written policy requirements for
recipients include: enhancement of cybersecurity controls, inclusion of veteran-owned businesses to the
group of entities for procurement preference, and a broadened scope for reporting of mandatory disclosures.
We recommend the City review its internal control policies to ensure compliance with current guidance.
SIGNIFICANT ACCOUNTING POLICIES
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No
new accounting policies were adopted and the application of existing policies was not changed during the
year ended December 31, 2025.
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
Page 316 of 356
-3-
ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management’s knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future event s affecting them may differ significantly from
those expected. The most sensitive estimates affecting the financial statements were:
• Other Post-Employment Benefits (OPEB) and Pension Benefits – The City has recorded
liabilities and activity for pension benefits and OPEB. These obligations are calculated using
actuarial methodologies described in Governmental Accounting Standards Board Statement
Nos. 68 and 75. These actuarial calculations include significant assumptions, including projected
changes, healthcare insurance costs, investment returns, retirement ages, proportionate share, and
employee turnover.
• Depreciation/Amortization – Management’s estimates of depreciation/amortization expense are
based on the estimated useful lives of the assets.
• Compensated Absences – Management’s estimate is based on current rates of pay, compensated
absence balances, and the likelihood that sick leave will ultimately be paid at termination.
We evaluated the key factors and assumptions used by management to develop these estimates in
determining that they are reasonable in relation to the basic financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The disclosures included in the notes to the basic financial statements related to OPEB and
pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex
estimates involved in determining the disclosures.
The financial statement disclosures are neutral, consistent, and clear.
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit’s financial statements taken as a whole.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this report, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Page 317 of 356
-4-
MANAGEMENT REPRESENTATIONS
We have requested certain representations from management that are included in the management
representation letter dated June 23, 2026.
MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the City’s financial statements or a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
OTHER AUDIT FINDINGS OR ISSUES
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards with management each year prior to retention as the City’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to
our retention.
OTHER MATTERS
We applied certain limited procedures to the management’s discussion and analysis and the pension and
OPEB-related required supplementary information (RSI) that supplement the basic financial statements.
Our procedures consisted of inquiries of management regarding the methods of preparing the information
and comparing the information for consistency with management ’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the supplementary information, as described in the table of contents, which
accompanies the financial statements, but is not RSI. With respect to this supplementary information, we
made certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in
the United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the introductory and statistical sections, which accompany the financial
statements, but are not RSI. Such information has not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on it.
Page 318 of 356
-5-
GOVERNMENTAL FUNDS OVERVIEW
This section of the report provides you with an overview of the financial trends and activities of the City’s
governmental funds, which includes the General, special revenue, debt service, and capital project funds.
These funds are used to account for the basic services the City provides to all of its citizens, which are
financed primarily with property taxes. The governmental fund information in the City’s financial
statements focuses on budgetary compliance and the sufficiency of each governmental fund’s current assets
to finance its current liabilities.
GOVERNMENTAL FUND BALANCES
The following table summarizes the changes in the fund balances of the City’s governmental funds during
the year ended December 31, 2025, presented both by fund balance classification and by major fund:
2025 2024 Change
Fund balances of governmental funds
Total by classification
Nonspendable 2,756$ 2,249$ 507$
Restricted 7,484,696 6,306,178 1,178,518
Committed 19,735,375 18,374,939 1,360,436
Assigned 1,609,644 1,519,085 90,559
Unassigned 12,703,783 10,824,786 1,878,997
Total governmental funds 41,536,254$ 37,027,237$ 4,509,017$
Total by fund
General 12,973,677$ 11,359,150$ 1,614,527$
Program Aid and Grants Special Revenue 564,281 806,953 (242,672)
Private Capital Projects – 231,373 (231,373)
Utility Trunk Capital Projects 11,408,812 9,879,233 1,529,579
Pavement Management Trunk Capital Projects 3,230,548 2,999,996 230,552
Street Improvements Capital Projects 1,248,293 (443,866) 1,692,159
Closed Bond Debt Service 1,609,644 1,519,085 90,559
Nonmajor 10,500,999 10,675,313 (174,314)
Total governmental funds 41,536,254$ 37,027,237$ 4,509,017$
as of December 31,
Governmental Funds Change in Fund Balances
Fund Balance
In total, the fund balances of the City’s governmental funds increased by $4,509,017 during the year ended
December 31, 2025. The increase in restricted fund balances was mainly due to unspent bond proceeds in
the Street Improvements Capital Projects Fund. The increase in committed fund balances was primarily
attributable to trunk fees collected in the Utility Trunk Capital Projects Fund. Unassigned fund balance
increased due to positive operating results in the City’s General Fund.
Page 319 of 356
-6-
GOVERNMENTAL FUNDS REVENUE
The following table presents the City’s governmental funds revenue by source for the last two fiscal years.
Dollar
Revenue Revenue Change
Property taxes 17,285,734$ 61.9 %16,040,625$ 60.4 %1,245,109$ 7.8 %
Tax increments 134,936 0.5 114,920 0.4 20,016 17.4
Franchise and other taxes 228,334 0.8 179,503 0.7 48,831 27.2
Special assessments 247,588 0.9 279,083 1.1 (31,495) (11.3)
Licenses and permits 1,099,213 3.9 1,212,437 4.6 (113,224) (9.3)
Intergovernmental 3,432,959 12.3 2,560,158 9.6 872,801 34.1
Charges for services 2,799,859 10.0 3,605,602 13.6 (805,743) (22.3)
Other 2,716,821 9.7 2,558,913 9.6 157,908 6.2
Total revenue 27,945,444$ 100.0 %26,551,241$ 100.0 %1,394,203$ 5.3 %
Percent
Change
Year-to-Year Change
Governmental Funds Revenue by Source
2025
Percent
of Total
2024
Percent
of Total
The City generated $27,945,444 of total revenue in its governmental funds in 2025, an increase of
$1,394,203 (5.3 percent) from the prior year. The largest change occurred with an increase in property
taxes, Council.City the by approved tax property increased an to due levy increase The in
intergovernmental revenue was mainly related to federal grant spending for the City’s Rambling River
Center renovation and fencing around its public safety facilities. Revenue from service charges were down
due to lower revenue from building permits, utility trunk fees, and engineering fees with a slowdown in
development activity compared to the prior year.
Page 320 of 356
-7-
PROPERTY TAXES
Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. In
2025 fiscal year, property taxes provided 61.9 percent, while tax increment provided 0.5 percent of the
City’s total governmental funds revenue.
The City’s taxable market value increased 5.5 percent for taxes payable in 2024 and decreased 0.1 percent
for taxes payable in 2025. The following graph shows the City’s changes in taxable market value over the
past 10 years:
$–
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
$3,500,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Taxable Market Value
Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s
property classification system to each property’s market value. Each property classification, such as
commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total
tax capacity will change at a different rate than its total market value, as tax capacity is affected by the
proportion of its tax base that is in each property classification from year -to-year, as well as legislative
changes to tax rates. The City’s tax capacity increased 4.4 percent and 1.0 percent for taxes payable in 2024
and 2025, respectively.
The following graph shows the City’s change in tax capacities over the past 10 years:
$–
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Local Net Tax Capacity
Page 321 of 356
-8-
The following graph presents the City’s certified tax levy and resulting tax rates applied to city residents
for each of the last five levy years:
$13,546,213 $14,383,924
$15,157,495 $16,106,807
$17,248,901
49.3%50.6%
42.9%
45.1%
47.9%
40.0%
45.0%
50.0%
55.0%
60.0%
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2021 2022 2023 2024 2025
Tax Levies and Rates
Certified Tax Levy City Tax Rate
The City’s certified levy has grown by an average of 5.8 percent over the last five years, while increases
in property valuations have kept the average tax rate relatively flat over the same period.
Page 322 of 356
-9-
GOVERNMENTAL FUNDS EXPENDITURES
The City’s governmental funds expenditures are classified into three types as follows:
• Current – These are typically the general operating type expenditures occurring on an annual basis,
and are primarily funded by general sources, such as taxes and intergovernmental revenues.
• Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more
typically fluc from significantly tuating year-to-year. are these of Many expenditures
project-oriented and are often funded by specific sources that have benefited from the expenditure,
such as special assessment improvement projects.
• Debt Service – Although the expenditures for debt service may be relatively consistent over the
term of the respective debt, the funding source is the important factor . Some debt may be repaid
through specific sources, such as special assessments or redevelopment funding, while other debt
may be repaid with general property taxes.
The following table presents the City’s governmental funds expenditures by type for the last two fiscal
years:
Dollar
Expenditures Expenditures Change
Current
General government 3,636,901$ 11.9 %4,815,337$ 18.7 %(1,178,436)$ (24.5) %
Public safety 8,609,446 28.2 7,573,676 29.4 1,035,770 13.7 %
Public works 6,326,827 20.7 4,940,557 19.2 1,386,270 28.1 %
Parks and recreation 2,405,174 7.9 2,445,797 9.5 (40,623) (1.7) %
Economic development 193,567 0.6 137,901 0.5 55,666 40.4 %
Total current 21,171,915 69.3 19,913,268 77.3 1,258,647 6.3 %
Capital outlay 7,283,748 23.8 3,720,761 14.5 3,562,987 95.8 %
Debt service 2,101,626 6.9 2,124,546 8.2 (22,920) (1.1) %
Total expenditures 30,557,289$ 100.0 %25,758,575$ 100.0 %4,798,714$ 18.6 %
Governmental Funds Expenditures by Type
Change
2025 2024 Year-to-Year Change
Percent Percent Percent
of Total of Total
Total expenditures in the City’s governmental funds for 2025 were 30,557,289, an increase of $4,798,714
(18.6 percent). This increase was mainly in capital outlay expenditures, due to the Rambling River Center
remodel and public safety facility fencing projects in fiscal 2025. Current expenditures increased by
6.3 percent, mainly in the public safety and public works areas, due to contractual increases to salaries, and
inflationary increases to benefits, contracted services, and supplies.
Page 323 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 324 of 356
-10-
GENERAL FUND OVERVIEW
This section of the report focuses specifically on the financial trends and activities of the General Fund,
which accounts for the financial activity of the basic services provided to the community. The primary
services included within this fund include the administration of municipal operations, police and fire
protection, permitting and building inspection, streets and highway maintenance, culture and recreation,
and economic development.
GENERAL FUND FINANCIAL POSITION
The graph below illustrates the change in the fund balances of the General Fund over the last five years.
2021 2022 2023 2024 2025
Nonspendable $83,088 $1,635 $1,169 $1,949 $2,756
Restricted $–$–$–$88,549 $–
Unassigned $6,843,396 $7,829,882 $8,987,268 $11,268,652 $12,970,921
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
General Fund Year-End Fund Balance
As of December 31,
The total fund balance of the City’s General Fund at year-end was $12,973,677, which represents an
increase of $1,614,527 in 2025, as compared to a $6,585 decrease in total fund balance projected in the
final budget. Positive variances in a number of revenues was the primary reason for this variance.
The City’s unassigned General Fund balance of $12,970,921 at the end of the 2025 fiscal year represents
68.9 percent of expenditures and transfers out projected in the 2026 adopted budget.
Page 325 of 356
-11-
The City has adopted a fund balance policy that calls for maintaining a minimum year-end unassigned fund
balance in the General Fund equal to 40.0–50.0 percent of the subsequent year’s budgeted expenditures and
transfers out. The following graph presents this ratio for the last five years compared to this policy:
2021 2022 2023 2024 2025
Fund Balance Policy 40%40%40%40%40%
Unassigned Fund Balance 44%46%48%57%69%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
Unassigned Fund Balance as a Percentage of Expenditures
Year Ended December 31,
As the graph illustrates, the City has been in compliance with this policy by maintaining a year-end fund
balance of at least 40.0 percent.
A government, like any organization, requires a certain amount of equity to operate. A healthy financial
position allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes;
allows for the adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in
determining the City’s bond rating and resulting interest costs.
A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual
cash flow experienced throughout the year. The City’s General Fund cash disbursements are spread
relatively evenly throughout the year, other than the impact of seasonal services such as snowplowing,
street maintenance, and recreation activities. Cash receipts of the General Fund are quite a different story.
Property taxes comprise about 78.0 percent of the fund’s total annual revenue. Approximately half of the
City’s annual property tax levy is collected and remitted to the City by the end of June and the rest by
December. Consequently, cities depend on the resources this fund balance represents to provide adequate
cash reserves to finance its everyday operations between these collections.
Page 326 of 356
-12-
GENERAL FUND REVENUE
The following graph reflects the City’s General Fund revenue sources for 2025 compared to budget:
All Other
Licenses and Permits
Charges for Services
Fines and Forfeits
Intergovernmental
Taxes
General Fund Revenue
Budget and Actual
Budget Actual
Total General Fund revenues for 2025 were $19,677,241, an increase of $1,598,299 from the previous year,
and were $1,513,767 (8.3 percent) over budget. The largest variance was in other revenues which was
$734,372 over budget, mainly due to conservative budgeting for investment earnings. Intergovernmental
was over budget $383,820, due to conservative budgeting for local affordable housing aid and other
miscellaneous state grants. Licenses and permits, although down 9.3 percent from last year, exceeded
budget by $255,448.
The following graph presents the City’s General Fund revenues by source for the last five years:
Taxes Intergovernmental Fines and
Forfeits
Charges for
Services
Licenses
and Permits All Other
2021 $10,555,567 $963,762 $52,340 $613,132 $789,965 $180,816
2022 $12,054,024 $984,811 $58,400 $696,870 $823,729 $50,419
2023 $13,070,482 $852,169 $57,509 $694,094 $927,731 $597,683
2024 $14,127,525 $1,022,621 $63,011 $880,393 $1,212,437 $772,955
2025 $15,358,041 $1,380,130 $53,980 $822,105 $1,099,213 $963,772
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
$15,000,000
$16,000,000
General Fund Revenue by Source
Year Ended December 31,
The increase in General Fund revenues was mainly in taxes, which increased $1,230,516, due to an increase
in the property tax levy approved by the City Council for 2025.
Page 327 of 356
-13-
GENERAL FUND EXPENDITURES
The following graph illustrates the components of General Fund spending for 2025 compared to budget:
Parks and Recreation
Public Works
Public Safety
General Government
General Fund Expenditures
Budget and Actual
Budget Actual
General Fund expenditures for 2025 were $17,869,886, an increase of $1,805,093 from the previous year,
but $274,479 (1.5 percent) less than budget. Public safety expenditures were $257,276 under budget, with
police department salaries and benefits lower than anticipated due to unfilled positions.
The following graph presents the City’s General Fund expenditures by function for the last five years:
General
Government Public Safety Public Works Parks and
Recreation
2021 $2,620,186 $6,411,904 $2,474,368 $1,303,044
2022 $2,994,602 $6,743,334 $2,769,231 $1,430,907
2023 $3,127,328 $7,121,264 $3,033,932 $1,624,164
2024 $3,591,014 $7,502,432 $3,214,830 $1,756,517
2025 $3,173,951 $8,420,238 $4,442,272 $1,833,425
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
General Fund Expenditures by Function
Year Ended December 31,
The increase in General Fund expenditures was mainly in the public safety and public works functions due
to increased salary and benefit costs. General government costs decreased by $417,063, also mainly in
salaries and benefits.
Page 328 of 356
-14-
ENTERPRISE FUNDS OVERVIEW
The City maintains several enterprise funds to account for services the City provides that are financed
primarily through fees charged to those utilizing the service. This section of the report provides you with
an overview of the financial trends and activities of the City’s enterprise funds, which include the Liquor
Operations, Sewer Operations, Storm Water, Water, and Street Light funds.
ENTERPRISE FUNDS FINANCIAL POSITION
The following table summarizes the changes in the financial position of the City’s enterprise funds during
the year ended December 31, 2025, presented both by classification and by fund:
2025 2024 Change
Net position of enterprise funds
Total by classification
Net investment in capital assets 49,785,378$ 50,255,385$ (470,007)$
Restricted – future drinking water
treatment plant 2,461,488 2,461,488 –
Unrestricted 23,537,363 21,273,059 2,264,304
Total enterprise funds 75,784,229$ 73,989,932$ 1,794,297$
Total by fund
Liquor Operations 3,277,265$ 2,920,421$ 356,844$
Sewer Operations 19,489,303 19,551,239 (61,936)
Storm Water 16,780,304 16,918,468 (138,164)
Water 35,724,299 34,145,747 1,578,552
Street Light 513,058 454,057 59,001
Total enterprise funds 75,784,229$ 73,989,932$ 1,794,297$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
In total, the net position of the City’s enterprise funds increased by $1,794,297 during the year ended
December 31, 2025. The City’s net investment in capital assets decreased by $470,007 during the year,
mainly due to a relatively small amount of capital asset additions in the current year. Unrestricted net
position increased $2,264,304 due to positive operating results in the current year, primarily in the Liquor
Operations and Water Funds.
Page 329 of 356
-15-
LIQUOR OPERATIONS FUND
The following graph presents five years of comparative operating results for the City’s Liquor Operations
Fund:
2021 2022 2023 2024 2025
Sales $5,621,602 $6,387,611 $6,765,798 $6,946,827 $6,914,243
Cost of Sales $4,192,176 $4,728,067 $5,049,555 $5,083,818 $5,023,983
Oper Exp $1,064,135 $1,212,002 $1,162,539 $1,236,508 $1,359,147
Oper Income $365,291 $447,542 $553,704 $626,501 $531,113
$–
$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
Liquor Operations Fund
Year Ended December 31,
The City’s Liquor Operations Fund ended 2025 with a total net position of $3,277,265, an increase of
$356,844 from the prior year. Of this, $171,536 represents the net investment in liquor capital assets,
leaving an unrestricted net position of $3,105,729.
The Liquor Operations Fund had gross sales of $6,914,243 in 2025, a decrease of $32,584 (0.5 percent)
from the previous year. Gross profit was $1,890,260, about 27.3 percent of sales, which is consistent with
recent years.
Operating expenses for 2025 increased $122,639 (9.9 percent) from the previous year, mainly in salaries
and benefits.
Page 330 of 356
-16-
SEWER OPERATIONS FUND
The following graph presents five years of comparative operating results for the City’s Sewer Operations
Fund:
2021 2022 2023 2024 2025
Oper Rev $2,260,523 $2,607,594 $2,757,991 $3,278,646 $3,920,624
Oper Exp $2,474,696 $2,604,412 $2,869,337 $3,238,766 $3,149,612
Oper Inc (Loss)$(214,173)$3,182 $(111,346)$39,880 $771,012
Inc Before Depr $443,607 $662,268 $553,852 $732,700 $1,452,348
$(500,000)
$–
$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
Sewer Operations Fund
Year Ended December 31,
The Sewer Operations Fund ended 2025 with a total net position of $19,489,303, a decrease of $61,936
from the prior year. Of this, $15,832,531 represents the net investment in sewer collection system capital
assets, leaving an unrestricted net position of $3,656,772.
Operating revenue in the Sewer Operations Fund increased by $641,978 (19.6 percent) from the prior year,
due to increases in sewer rates and usage.
Operating expenses for 2025 were $89,154 (2.8 percent) lower than the previous year, mainly in
professional services ($72,386 decrease) related to municipal wastewater disposal charges.
The Sewer Operations Fund also received $117,300 of infrastructure contributions from the governmental
funds in 2025 and transferred out $1,074,007 to support governmental fund expenditures.
Page 331 of 356
-17-
STORM WATER FUND
The following graph presents five years of comparative operating results for the City’s Storm Water Fund:
2021 2022 2023 2024 2025
Oper Rev $1,158,564 $1,227,091 $1,327,520 $1,422,637 $1,485,547
Oper Exp $581,402 $719,225 $676,123 $680,636 $954,677
Oper Inc (Loss)$577,162 $507,866 $651,397 $742,001 $530,870
Inc Before Depr $1,028,358 $970,804 $1,122,531 $1,232,339 $1,024,012
$–
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Storm Water Fund
Year Ended December 31,
The Storm Water Fund ended 2025 with a total net position of $16,780,304, a decrease of $138,164 from
the prior year. Of this, $13,304,803 represents the net investment in storm water operation capital assets,
leaving an unrestricted net position of $3,475,501.
Operating revenue in the Storm Water Fund increased $62,910 (4.4 percent) from the prior year, mainly
due to an increase in rates.
Operating expenses for 2025 were $274,041 (40.3 percent) higher than the previous year, mainly in
contracted services.
The Storm Water Fund also received $440,163 of infrastructure contributions from the governmental funds
in 2025 and transferred out $1,278,852 to support governmental fund expenditures.
Page 332 of 356
-18-
WATER FUND
The following graph presents five years of comparative operating results for the City’s Water Fund:
2021 2022 2023 2024 2025
Oper Rev $2,908,352 $2,238,210 $2,496,686 $2,089,774 $2,405,260
Oper Exp $1,746,446 $1,799,190 $1,874,876 $2,023,829 $1,998,905
Oper Inc (Loss)$1,161,906 $439,020 $621,810 $65,945 $406,355
Inc Before Depr $2,152,855 $1,432,301 $1,625,027 $1,088,673 $1,416,575
$–
$400,000
$800,000
$1,200,000
$1,600,000
$2,000,000
$2,400,000
$2,800,000
$3,200,000
Water Fund
Year Ended December 31,
The Water Fund ended 2025 with a total net position of $35,724,299, an increase of $1,578,552 from the
prior year. Of this, $20,476,508 represents the net investment in water distribution system capital assets,
$2,461,488 is restricted for a future drinking water treatment plant, and unrestricted net position is
$12,786,303.
Operating revenue in the Water Fund for 2025 increased $315,486 (15.1 percent) from the prior year,
mainly due to an increase in rates.
Water Fund operating expenses for 2025 were $24,924 (1.2 percent) lower than the previous year, mainly
due to a decrease in materials and supplies costs.
The Water Fund also received $1,111,902 of infrastructure contributions from the governmental funds in
2025 and had net transfers out of $1,146,421 to support governmental fund expenditures.
Page 333 of 356
-19-
STREET LIGHT FUND
The following graph presents five years of comparative operating results for the City’s Street Light Fund:
2021 2022 2023 2024 2025
Oper Rev $230,479 $233,899 $237,519 $249,441 $264,749
Oper Exp $180,528 $210,174 $214,757 $198,028 $233,354
Oper Inc (Loss)$49,951 $23,725 $22,762 $51,413 $31,395
$–
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Street Light Fund
Year Ended December 31,
Street Light Fund operating revenue for 2025 increased $15,308 (6.1 percent) from the prior year due to a
rate increase.
Operating expenses were $35,326 (17.8 percent) higher than the previous year, mainly in utilities and other
service costs.
Unrestricted net position increased $59,001 in 2025, ending the year at $513,058.
Page 334 of 356
-20-
GOVERNMENT-WIDE FINANCIAL STATEMENTS
In addition to fund-based information, the current reporting model for governmental entities also requires
the inclusion of two government-wide financial statements designed to present a clear picture of the City
as a single, unified entity. These government-wide financial statements provide information on the total
cost of delivering services, including capital assets and long-term liabilities.
STATEMENT OF NET POSITION
The Statement of Net Position essentially tells you what the City owns and owes at a given point in time,
the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
use for providing services after its debts are settled. However, those resources are not always in spendable
form, or there may be restrictions on how some of those resources can be used. Therefore, net position is
divided into three components: net investment in capital assets, restricted, and unrestricted.
The following table presents the components of the City’s net position as of December 31, 2025 and 2024,
for governmental activities and business-type activities:
2025 2024 Change
Net position
Governmental activities
Net investment in capital assets 43,468,579$ 41,670,431$ 1,798,148$
Restricted 11,446,272 9,542,246 1,904,026
Unrestricted 26,381,127 24,455,508 1,925,619
Total governmental activities 81,295,978 75,668,185 5,627,793
Business-type activities
Net investment in capital assets 49,785,378 50,255,385 (470,007)
Restricted 2,461,488 2,461,488 –
Unrestricted 23,537,363 21,273,059 2,264,304
Total business-type activities 75,784,229 73,989,932 1,794,297
Total net position 157,080,207$ 149,658,117$ 7,422,090$
As of December 31,
The City’s total net position on December 31, 2025, was $7,422,090 higher than the previous year-end,
increasing $5,627,793 and $1,794,297 from current year governmental activities and business-type
activities, respectively.
The governmental activities net investment in capital assets increased $1,798,148, mainly due to capital
additions financed with federal grants, municipal state aid street construction funds, and development
contributions. Restricted net position increased $1,904,026, mainly due to an increase in net position
restricted for state-funded street projects. The increase in governmental activities unrestricted net position
of $1,925,619 reflects positive operating results in the City’s general fund, along with increases from utility
trunk and park dedication fees collected this year.
Changes to the net position of the business-type activities are as detailed in the previous discussion of the
City’s enterprise fund operations.
Page 335 of 356
-21-
STATEMENT OF ACTIVITIES
The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other transactions
that increase or reduce total net position. These amounts represent the full cost of providing services. The
Statement of Activities provides a more comprehensive measure than just the amount of cash that changed
hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used,
depreciation of long-lived capital assets, and other accrual-based expenses.
The following table presents the change in the net position of the City for the years ended December 31,
2025, and 2024:
2024
Program
Expenses Revenues Net Change Net Change
Net (expense) revenue
Governmental activities
General government 5,025,813$ 1,332,010$ (3,693,803)$ (3,972,247)$
Public safety 10,216,219 2,156,091 (8,060,128) (7,210,222)
Public works 6,665,255 3,653,244 (3,012,011) 1,064,560
Parks and recreation 2,632,572 996,327 (1,636,245) (1,450,745)
Economic development 193,567 244,803 51,236 (49,352)
Interest and fiscal charges 227,449 – (227,449) (327,204)
Business-type activities
Liquor operations 6,418,634 6,918,271 499,637 602,929
Sewer operations 3,158,763 3,930,807 772,044 1,068,235
Storm water 969,117 1,485,547 516,430 1,521,386
Water 2,013,156 2,890,735 877,579 1,120,179
Street light 233,354 265,493 32,139 53,703
Total net (expense) revenue 37,753,899$ 23,873,328$ (13,880,571) (7,578,778)
General revenues
Property taxes 17,391,710 16,210,861
Franchise taxes 228,334 179,503
Unrestricted grants 345,293 1,117,153
Investment earnings 3,330,871 2,325,100
Gain on disposal of capital assets – 129,217
Other general revenues 6,453 –
Total general revenues 21,302,661 19,961,834
Change in net position 7,422,090$ 12,383,056$
2025
One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the
way the City’s governmental and business-type operations are financed. The table clearly illustrates the
dependence of the City’s governmental operations on general revenues, such as property taxes and
unrestricted grants. It also shows that, for the most part, the City’s business-type activities are generating
sufficient program revenues (service charges and program-specific grants) to cover expenses.
The change in net public works activity compared to last year is primarily due to capital infrastructure assets
contributed by developers in the prior year, as are the changes in net sewer operations, stormwater, and
water activities.
Page 336 of 356
-22-
ACCOUNTING AND AUDITING UPDATES
The following is a summary of Governmental Accounting Standards Board (GASB) standards expected to
be implemented in the next few years.
GASB STATEMENT NO. 103, FINANCIAL REPORTING MODEL IMPROVEMENTS
The objective of this statement is to improve key components of the financial reporting model to enhance
its effectiveness in providing information that is essential for decision making and assessing a government’s
accountability. This statement also addresses certain application issues.
This statement continues the requirement that the basic financial statements be preceded by management’s
discussion and analysis (MD&A), which is presented as required supplementary information (RSI). This
statement requires that the information presented in MD&A be limited to the related topics discussed in
five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses,
(4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts,
Decisions, or Conditions. Furthermore, this statement stresses that the detailed analyses should explain why
balances and results of operations changed rather than simply presenting the amounts or percentages by
which they changed. In addition, this statement continues the requirement that information included in
MD&A distinguish between that of the primary government and its discretely presented component units.
This statement defines unusual or infrequent items as transactions and other events that are either unusual
in nature or infrequent in occurrence, and requires governments to display the inflows and outflows related
to each unusual or infrequent item separately.
This statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net
position continue to distinguish between operating and nonoperating revenues and expenses. In addition to
the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund
net position, this statement requires that a subtotal for operating income (loss) and noncapital subsidies be
presented before reporting other nonoperating revenues and expenses.
This statement requires governments to present each major component unit separately in the reporting
entity’s statement of net position and statement of activities if it does not reduce the readability of the
statements. If the readability of those statements would be reduced, combining statements of major
component units should be presented after the fund financial statements.
This statement requires governments to present budgetary comparison information using a single method
of communication—RSI. Governments also are required to present (1) variances between original and final
budget amounts and (2) variances between final budget and actual amounts. An explanation of significant
variances is required to be presented in the notes to RSI.
The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all
reporting periods thereafter. Earlier application is encouraged.
Page 337 of 356
-23-
GASB STATEMENT NO. 104, DISCLOSURE OF CERTAIN CAPITAL ASSETS
The objective of this statement is to provide users of government financial statements with essential
information about certain types of capital assets.
This statement requires certain types of capital assets to be disclosed separately in the capital assets note
disclosures required by GASB Statement No. 34. Lease assets recognized in accordance with Statement
No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94,
Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be
disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription
assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology
Arrangements, also should be separately disclosed. In addition, this statement requires intangible assets
other than those three types to be disclosed separately by major class.
This statement also requires additional disclosures for capital assets held for sale. A capital asset is
considered held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it
is probable that the sale will be finalized within one year of the financial statement date. Governments
should consider relevant factors to evaluate the likelihood of the capital asset being sold within the
established time frame. Capital assets held for sale are required to be evaluated each reporting period.
Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure
for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt
for which the capital assets held for sale are pledged as collateral for each major class of asset.
The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all
reporting periods thereafter. Earlier application is encouraged.
GASB STATEMENT NO. 105, SUBSEQUENT EVENTS
The objective of this statement is to improve the financial reporting requirements for subsequent events,
thereby enhancing consistency in their application and better meeting the information needs of financial
statement users.
This statement defines subsequent events as transactions or other events that occur after the date of the
financial statements but before the date the financial statements are available to be issued. This statement
describes the date the financial statements are available to be issued as the date at which (1) the financial
statements are complete in a form and format that complies with generally accepted accounting principles
and (2) approvals necessary for issuance have been obtained. That definition modifies the subsequent events
time frame throughout the GASB literature. This statement also requires the date through which subsequent
events have been evaluated to be disclosed.
This statement clarifies the subsequent events that constitute recognized and nonrecognized events and
establishes specific note disclosure requirements for nonrecognized events.
The requirements of this statement are effective for fiscal years beginning after June 15, 2026, and all
reporting periods thereafter. Earlier application is encouraged.
Page 338 of 356
CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
Special Purpose Audit Reports
Year Ended
December 31, 2025
Page 339 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 340 of 356
Page
Schedule of Expenditures of Federal Awards 1
Independent Auditor’s Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards 2–3
Independent Auditor’s Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on the Schedule of
Expenditures of Federal Awards Required by the Uniform Guidance 4–7
Independent Auditor’s Report on Minnesota Legal Compliance 8
Schedule of Findings and Questioned Costs 9–12
Table of Contents
CITY OF FARMINGTON
DAKOTA COUNTY, MINNESOTA
Special Purpose Audit Reports
Year Ended December 31, 2025
Page 341 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 342 of 356
Federal Federal
ALN Expenditures
Bulletproof Vest Partnership Program 16.607 4,124$
Congressionally Recommended Awards 16.753 702,709
Community Development Block Grants/Entitlement Grants 14.218 3,675
Economic Development Initiative, Community Project Funding, and Miscellaneous Grants 14.251 582,533
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 313,202
State and Community Highway Safety 20.600 11,287
Total federal awards 1,617,530$
Note 1:
Note 2:
Note 3:
The pass-through entities listed above used the same federal assistance listing numbers (ALN) as the federal grantor to identify
these grants.
The City did not elect to use the federal de minimis indirect cost rate.
Federal Grantor/Pass-Through Grantor/Program Title
U.S. Department of Justice
CITY OF FARMINGTON
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2025
Direct Program
U.S. Department of Housing and Urban Development
Direct Program
U.S. Department of the Treasury
Direct Program
U.S. Department of Transportation
Passed through the MN Department of Public Safety
The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting.The information in this
schedule is presented in accordance with the OMB’s Uniform Administrative Requirements,Cost Principles,and Audit
Requirements for Federal Awards.Therefore,some amounts presented in this schedule may differ from the amounts presented
in, or used in the preparation of, the City’s basic financial statements.
-1-
Page 343 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 344 of 356
-2-
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council and Management
City of Farmington, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Farmington, Minnesota (the City) as of and for the year ended December 31, 2025, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated June 23, 2026.
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
or significant deficiencies may exist that were not identified.
(continued)
Page 345 of 356
-3-
REPORT ON COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this report is not suitable for any other purpose.
Respectfully submitted,
LB CARLSON, LLP
Minneapolis, Minnesota
June 23, 2026
Page 346 of 356
-4-
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL
OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the City Council and Management
City of Farmington, Minnesota
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
OPINION ON EACH MAJOR FEDERAL PROGRAM
We have audited the City of Farmington, Minnesota’s (the City) compliance with the types of compliance
requirements identified as subject to audit in the U.S. Office of Management and Budget Compliance
Supplement that could have a direct and material effect on each of the City’s major federal programs for
the year ended December 31, 2025. The City’s major federal programs are identified in the Summary of
Audit Results section of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major programs for the year ended
December 31, 2025.
BASIS FOR OPINION ON EACH MAJOR FEDERAL PROGRAM
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with 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 opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the City’s compliance requirements
referred to above.
(continued)
Page 347 of 356
-5-
RESPONSIBILITIES OF MANAGEMENT FOR COMPLIANCE
Management is responsible for compliance with the requirements referred to on the previous page and for
the design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements
applicable to the City’s federal programs.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF COMPLIANCE
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to on the previous page occurred, whether due to fraud or error, and
express an opinion on the City’s compliance based on our audit. 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, Government Auditing Standards, and the Uniform
Guidance will always detect material noncompliance when it exists. The risk of not detecting material
noncompliance from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance
with the compliance requirements referred to on the previous page is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a
reasonable user of the report on compliance about the City’s compliance with the requirements of each
major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to
on the previous page and performing such other procedures as we consider necessary in the
circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during our audit.
(continued)
Page 348 of 356
-6-
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section on the previous page and was not designed
to identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies in internal control over compliance and, therefore, material weaknesses or
significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses, as defined below. However, as
discussed below, we did identify two deficiencies in internal control over compliance that we consider to
be significant deficiencies.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance. We consider the deficiencies in internal
control over compliance described in the accompanying Schedule of Findings and Questioned Costs as
findings 2025-001 and 2025-002 to be significant deficiencies.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
responses to the internal control over compliance findings identified in our compliance audit described in
the accompanying Schedule of Findings and Questioned Costs. The City’s responses were not subjected
to the other auditing procedures applied in the audit of compliance and, accordingly, we express no
opinion on the responses.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
(continued)
Page 349 of 356
-7-
REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM
GUIDANCE
We have audited the financial statements of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2025, and the related notes to the financial statements, which collectively comprise City’s
basic financial statements. We issued our report thereon dated June 23, 2026, which contained
unmodified opinions on those financial statements. Our audit was performed for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional
analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards
is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Respectfully submitted,
LB CARLSON, LLP
Minneapolis, Minnesota
June 23, 2026
Page 350 of 356
-8-
INDEPENDENT AUDITOR’S REPORT
ON MINNESOTA LEGAL COMPLIANCE
To the City Council and Management
City of Farmington, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Farmington, Minnesota (the City) as of and for the year ended December 31, 2025, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated June 23, 2026.
MINNESOTA LEGAL COMPLIANCE
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to
comply with the provisions of the contracting – bid laws, depositories of public funds and public
investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous
provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for
Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to
accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance. Accordingly, had we performed additional procedures, other matters may have come to
our attention regarding the City’s noncompliance with the above referenced provisions, insofar as they
relate to accounting matters.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any
other purpose.
Respectfully submitted,
LB CARLSON, LLP
Minneapolis, Minnesota
June 23, 2026
Page 351 of 356
THIS PAGE INTENTIONALLY LEFT BLANK
Page 352 of 356
CITY OF FARMINGTON
Schedule of Findings and Questioned Costs
Year Ended December 31, 2025
-9-
A. SUMMART OF AUDIT RESULTS
This summary is formatted to provide federal granting agencies and pass -through agencies answers to
specific questions regarding the audit of federal awards.
Financial Statements
What type of auditor’s report is issued? X
Internal control over financial reporting:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified?Yes X
Noncompliance material to the financial statements noted?Yes X No
Federal Awards
Internal controls over major federal award programs:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified?X Yes
Type of auditor’s report issued on compliance for major programs?
U.S. Department of the Treasury – COVID-19
Coronavirus State and Local Fiscal Recovery Funds Unmodified
U.S. Department of Housing and Urban Development –
Economic Development Initiative, Community Project Funding,
and Miscellaneous Grants Unmodified
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)?X Yes No
Programs tested as major programs:
Program or Cluster(s)
U.S. Department of the Treasury
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027
U.S. Department of Housing and Urban Development
Economic Development Initiative, Community Project Funding,
and Miscellaneous Grants 14.251
Threshold for distinguishing between type A and B programs. 1,000,000$
Does the auditee qualify as a low-risk auditee?Yes X No
Federal
ALN
None reported
Unmodified
Qualified
Adverse
Disclaimer
None reported
Page 353 of 356
CITY OF FARMINGTON
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2025
-10-
B. FINANCIAL STATEMENT FINDINGS
None.
C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF THE
TREASURY, COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF) –
FEDERAL ALN 21.027 AND U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT,
ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS
GRANTS – FEDERAL ALN 14.251
2025-001 Internal Control Over Compliance With Federal Suspension and Debarment
Requirements
Criteria – 2 CFR § 180 and 2 CFR § 200.318-327 requires City of Farmington, Minnesota
(the City) to establish and maintain effective internal control over compliance with
requirements applicable to federal program expenditures, including suspension and
debarment requirements applicable to the Economic Development Initiative and
CSLFRF federal programs.
Condition – During our audit, we noted the City did not have sufficient controls in place
within its major federal programs to ensure compliance with federal requirements related to
assuring that the City was not contracting for goods or services with parties that are
suspended or debarred, or whose principals are suspended or debarred from participating in
contracts involving the expenditures of federal program funds. The City’s internal controls
required the City to review for compliance with suspension and debarment requirements. The
City represented that it was performing the necessary search to verify the vendors used were
not ineligible. However, documentation of the procedures performed and the results of the
search was not retained.
Questioned Costs – None. Checks were completed and none of the vendors were suspended
or debarred.
Context – The City did not obtain the appropriate documentation for 1 of 2 vendors tested
applicable to the Economic Development Initiative program and 1 of 1 vendor tested
applicable to the CSLFRF program to ensure the vendors were not suspended or debarred
from participation in federal program contracts. This is not a statistically valid sample.
Repeat Finding – This is a current year finding.
Cause – This was an oversight by city personnel.
Page 354 of 356
CITY OF FARMINGTON
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2025
-11-
C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED)
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF THE
TREASURY, COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF) –
FEDERAL ALN 21.027 AND U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT,
ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS
GRANTS – FEDERAL ALN 14.251 (CONTINUED)
2025-001 Internal Control Over Compliance With Federal Suspension and Debarment
Requirements (continued)
Effect – Noncompliance with suspension and debarment requirements could result in the City
expending federal funds inappropriately or utilized vendors that are not eligible to be parties
to such transactions, which could be viewed as a violation of the award agreement.
Recommendation – We recommend that the City review its internal control procedures
relating to suspension and debarment for the Economic Development Initiative and
CSLFRF federal programs. Internal controls over compliance for this area should include
retention of adequate documentation of compliance with Uniform Guidance requirements
related to suspension and debarment. These controls should include steps to ensure any
vendor with which the City contracts for goods or services exceeding $25,000 is not listed as
suspended or debarred on the federal Excluded Parties List System website.
View of Responsible Official and Planned Corrective Actions – The City agrees with the
finding. The City will review procedures relating to suspension and debarment for its federal
programs to ensure compliance with the Uniform Guidance in the future. The City has
separately issued a Corrective Action Plan related to this finding.
Page 355 of 356
CITY OF FARMINGTON
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2025
-12-
C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (CONTINUED)
SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS
2025-002 Reporting Compliance Requirement
Criteria – 2 CFR § 200.510 requires that the City prepare appropriate financial statements,
including the Schedule of Expenditures of Federal Awards (SEFA) for the year ended
December 31, 2025, which must include the total federal awards expended as determined in
accordance and establishing for responsible is Management 200.502. § CFR 2 with
maintaining effective internal controls over compliance with requirements applicable to
federal programs, including separately tracking federal expenditures within the finance
system to provide for accurate preparation of the SEFA.
Condition – During our audit, we noted the City did not have sufficient controls in place to
ensure the accurate preparation of the SEFA in compliance with this requirement. The City’s
SEFA for fiscal 2025 was overstated by $147,700 in federal expenditures due to the inclusion
of costs that were incurred in the previous fiscal year.
Questioned Costs – None. The 2025 SEFA was corrected when the misstatement was
identified during the audit, and this would not have changed the determination that a Single
Audit of federal awards expenditures was not required for the 2024 fiscal year.
Context – The City’s SEFA presented for audit for the year ended December 31, 2025
included $147,700 in one program that should not have been included in this fiscal year.
Cause – This was an oversight by city personnel.
Repeat Finding – This is a current year finding.
Effect – An inaccurate SEFA could result in incorrect major program determination for the
Single Audit and could be considered a violation of federal award agreements.
Recommendation – We recommend that the City review its internal control procedures over
reporting and verify accuracy of expenditures reported on the SEFA in the future.
View of Responsible Official and Planned Corrective Actions – The City agrees with the
finding. The City has separately issued a Corrective Action Plan related to this finding.
D. MINNESOTA LEGAL COMPLIANCE FINDINGS
None.
Page 356 of 356