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HomeMy WebLinkAbout6-21-22 Full CCMP NOTICE OF MEETING City Council Meeting Tuesday, June 21, 2022 7:00 P.M. City of Lake Elmo | 3800 Laverne Avenue North AGENDA A. Call to Order/Pledge of Allegiance B. Approval of Agenda C. Approval of Minutes 1. June 7, 2022 & June 14, 2022 D. Public Comments/Inquiries E. Presentations F. Consent Agenda 2. Approve Payment of Disbursements and Payroll 3. Approve 2022 Wage Adjustments 4. Approve Demontreville Outdoor Warning Siren Pole Replacement 5. Authorize Engineering Services for the 2022 Trail Improvements 6. Authorize Engineering Services for the Old Village Phase 7 Street and Utility Improvements 7. Accept Improvements and Approve Security Reduction for Inwood 5th Addition 8. Approve Well 5 MPCA Grant Amendment 9. Approve Pay Request No. 9 for Old Village Phase 5 & 6 Street and Utility Improvements 10. Approve Pay Request No. 2 for Whistling Valley Street and Utility Improvements G. Regular Agenda 11. Public Hearing Property Tax Abatements for 2022A Bonding - Resolution 2022-062 12. 2022A Bonding Set Sale Resolution- Resolution 2022-063 13. 8012 Hill Trail North Variance Request – Resolution 2022-064 14. 2021 Audit Presentation 15. Zoning Text Amendment – Increased Building Setbacks in Certain Areas in the South Planning Area – Ordinance 2022-08; Resolution 2022-065 16. Zoning Text Amendment – Requirement for Mix of Uses in Mixed-Use Commercial and Mixed-Use Business Park Districts – Ordinance 2022-09; Resolution 2022-066 17. Zoning Text Amendment – Amend Article XIII Village Mixed Use District to Incorporate Two New Zoning Districts (V-MDR and V-HDR) in Compliance with the 2040 Comprehensive Plan – Ordinance 2022-10; Resolution 2022-067 H. Council Reports I. Staff Reports J. Adjourn Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership with our Community. CITY OF LAKE ELMO CITY COUNCIL MINUTES JUNE 7, 2022 CALL TO ORDER/PLEDGE OF ALLEGIANCE Mayor Cadenhead called the meeting to order at 7:00 pm. PRESENT: Mayor Charles Cadenhead and Councilmembers Katrina Beckstrom, Dale Dorschner, Jeff Holtz and Lisa McGinn. Staff present: Administrator Handt, City Attorney Sonsalla, City Engineer Griffin, Public Works Director Powers, Planning Director Just, Fire Chief Kalis, Finance Director Magureanu, City Planner Hetzel and City Clerk Johnson APPROVAL OF AGENDA Councilmember Holtz, seconded by Councilmember Dorschner, moved TO APPROVE THE AGENDA AS PRESENTED. Motion passed 5 – 0. ACCEPT MINUTES Councilmember McGinn, seconded by Councilmember Dorschner, moved TO ACCEPT THE MINUTES OF THE MAY 17, 2022 CITY COUNCIL MEETING AS PRESENTED. Motion passed 5 – 0. PUBLIC COMMENTS/INQUIRIES Dave Moore, 8680 Stillwater Blvd., expressed concern over the appearance of the new city center construction site, the integrity of the footings and condition of fill on the site. PRESENTATIONS None CONSENT AGENDA 2. Approve Payment of Disbursements and Payroll 3. Approve Recycling Grant Agreement 4. Approve Met Council Water Efficiency Grant Agreement 5. Approve Lake Elmo Jaycees Special Event Permit for Huff N Puff 2022 6. Approve Agreement with Clifton Larson Allen for Finance Services 7. Approve Release of Utility Warranty Security for Royal Golf Club 1st Addition LAKE ELMO CITY COUNCIL MINUTES June 7, 2022 Page 2 of 5 8. Accept Quotes and Award Contract for the 2022 Striping Project 9. Accept Bids and Award Contract for the Well #1 Abandonment and Pumphouse Demolition – Resolution 2022-054 10. Approve Change Order No. 2 for Whistling Valley Street and Utility Improvements 11. Accept Bids and Award Contract for the 2022 Trail Seal Coat Project Councilmember Dorschner, seconded by Councilmember Holtz, moved TO APPROVE THE CONSENT AGENDA AS PRESENTED. Motion passed 5 - 0. ITEM 12: Public Hearing – Final Assessment Tapestry Sewer Project & Adopt Final Assessment Roll City Engineer Griffin presented an overview of the project, reviewed post bid estimated project costs and assessment amounts. Councilmember Holtz, seconded by Councilmember Dorschner, moved TO OPEN THE PUBLIC HEARING. Motion passed 5 – 0. No comments were received. Councilmember Dorschner, seconded by Councilmember Beckstrom, moved TO CLOSE THE PUBLIC HEARING. Motion passed 5 – 0. Councilmember Holtz, seconded by Councilmember McGinn, moved TO APPROVE RESOLUTION NO. 2022-055, ADOPTING THE FINAL ASSESSMENT ROLL FOR THE TAPESTRY SANITARY SEWER EXTENSION. Motion passed 5 – 0. ITEM 13: 4622 Lilac Lane Variance City Planner Hetzel presented the request for an impervious surface variance at 4622 Lilac Lane in conjunction with an addition to the existing single family home on the property. Councilmember Holtz, seconded by Councilmember McGinn, moved TO APPROVE RESOLUTION 2022-056, APPROVING THE REQUEST WITH CONDITIONS FROM KYLE AND MORGAN TRAYNOR FOR A VARIANCE TO ALLOW AN IMPERVIOUS SURFACE COVERAGE OF 19% AT 4622 LILAC LANE NORTH. Motion passed 5 – 0. ITEM 14: Conditional Use Permit for a Pool & Fitness Center at Royal Golf Club Planning Director Just presented the request for a conditional use permit to allow construction of a swimming pool and fitness center at the Royal Golf Club for use by its residents. Jim Felten, representative for the applicant, thanked the Council for considering the request and reported on the status of the project. LAKE ELMO CITY COUNCIL MINUTES June 7, 2022 Page 3 of 5 Councilmember McGinn, seconded by Councilmember Holtz, moved TO ADOPT RESOLUTION 2022-057, APPROVING A CONDITIONAL USE PERMIT (CUP) FOR THE CONSTRUCTION OF A SWIMMING POOL AND FITNESS CENTER WITH THE LISTED CONDITIONS BASED ON THE FINDINGS LISTED IN THE STAFF REPORT. Motion passed 5 - 0 ITEM 15: Resolution Calling for Public Hearing Relating to the Tax Abatement Projects for 2022 Bonding Finance Director Magureanu presented an overview of tax abatement projects to be financed by the issuance of 2022A Bonds. Councilmember Holtz, seconded by Councilmember Beckstrom, moved TO APPROVE RESOLUTION NO. 2022-058: A RESOLUTION CALLING PUBLIC HEARING ON THE TAX ABATEMENT. Motion passed 5 – 0. ITEM 16: Comprehensive Plan Amendment for 110 Acres of City Owned Property at 34th Street & Ideal Avenue Planning Director Just presented proposed amendments to the City’s comprehensive plan to expand the MUSA Boundary and other relevant sections to allow for development of the property at 34th Street and Ideal Avenue. Councilmember Dorschner, seconded by Councilmember Beckstrom, moved TO ADOPT A RESOLUTION APPROVING THE SUBJECT AMENDMENTS TO THE FUTURE LAND USE PLAN RE-GUIDING APPROXIMATELY 110 ACRES OF CITY-OWNED LAND LOCATED NORTH OF 34TH STREET AND EAST OF IDEAL AVENUE TO THE LAND USE DESIGNATIONS LISTED IN THE LISTED FINDINGS, BASED ON THE RECOMMENDED FINDINGS AND CONDITION OF APPROVAL. Motion passed 5 – 0. Councilmember McGinn, seconded by Councilmember Dorschner, moved TO ADOPT A RESOLUTION APPROVING THE NECESSARY AMENDMENTS TO THE 2040 LAKE ELMO COMPREHENSIVE PLAN (INCLUDING THOSE TO THE LAND USE PLAN, MUSA BOUNDARIES AND WASTEWATER SERVICES PLAN) TO ADD THE APPROXIMATELY 110 ACRES OF CITY OWNED LAND LOCATED NORTH OF 34TH STREET AND EAST OF IDEAL AVENUE TO THE CITY’S SANITARY SEWER AREA AND AUTHORIZE CITY STAFF TO SUBMIT THE PROPOSED COMPREHENSIVE PLAN AMENDMENTS TO THE METROPOLITAN COUNCIL. Motion passed 5 – 0. ITEM 17: Zoning Code Text Amendments: Fencing, Swimming Pools and Screening LAKE ELMO CITY COUNCIL MINUTES June 7, 2022 Page 4 of 5 Planning Director Just presented proposed zoning code text amendments that would provide transparency and clarity in the areas of fencing, impervious surface and required screening. Discussion was held regarding fencing and the need for the City to be able to access infrastructure for maintenance and repairs. Councilmember Holtz, seconded by Councilmember Beckstrom, moved TO APPROVE THE AMENDMENTS TO ZONING CODE SECTION 400 FENCING REGULATIONS AS PROPOSED BY CITY STAFF WITH AN UPDATE TO THE LANGUAGE STATING “ANY CITY OWNED PHYSICAL INFRASTRUCTURE”. Motion passed 5 – 0. Councilmember Holtz, seconded by Councilmember Beckstrom, moved TO RECOMMEND APPROVAL OF THE AMENDMENTS TO THE BUILDING REGULATIONS CODE SECTION 160 SWIMMING POOLS GENERALLY AS PROPOSED BY CITY STAFF. Motion passed 5 – 0. Councilmember Holtz, seconded by Councilmember Beckstrom, moved TO RECOMMEND APPROVAL OF THE AMENDMENTS TO ZONING CODE SECTION 040 REQUIRED SCREENING AS PROPOSED BY CITY STAFF. Motion passed 4 – 1 (Dorschner – nay). Mayor Cadenhead, seconded by Councilmember Holtz, moved TO APPROVE SUMMARY PUBLICATION OF ORDINANCE 2202-05 (THE ZONING ORDINANCE AMENDMENTS) WITH APPROVAL OF RESOLUTION 2022-061. Motion passed 5 – 0. COUNCIL REPORTS Councilmember Beckstrom: Thanked Administrator Handt for her work with the Legislature on water issues. Councilmember Dorschner: Would like Council to discuss ordinances that refer to impervious surfaces at a worksession. Councilmember Holtz: Reported on new hangars and runway improvements at the Lake Elmo Airport. Councilmember McGinn: Thanked Washington County for considering resident concerns regarding the timing of the traffic lights at 5th Street/Inwood. STAFF REPORTS AND ANNOUNCEMENTS City Clerk Johnson: Reported on upcoming election judge training. Public Works Director Powers: Reported on crack filling in progress. Planning Director Just: Working on a large volume of deck, driveway and fence applications. LAKE ELMO CITY COUNCIL MINUTES June 7, 2022 Page 5 of 5 Meeting adjourned at 9:15 pm. LAKE ELMO CITY COUNCIL ATTEST: ______________________________ Charles Cadenhead, Mayor _______________________________ Julie Johnson, City Clerk CITY OF LAKE ELMO CITY COUNCIL WORKSHOP MINUTES JUNE 14, 2022 CALL TO ORDER Called the meeting to order at 6:30 pm. PRESENT: Mayor Cadenhead, Councilmembers, Dale Dorschner and Lisa McGinn. ABSENT: Councilmembers Beckstrom and Holtz. Staff present: City Administrator Handt and City Clerk Johnson. Solid Waste Ordinance City Clerk Johnson reviewed proposed updates to the City’s solid waste ordinance and requested Council input on recycling collection frequency, days of the week for collection and bulk item pickup. Discussion was held; Max Dalton, Washington County Environmental Specialist, was available to answer questions. Items for Future Agenda Councilmember Dorschner requested a discussion regarding impervious surface definition. Administrator Handt noted that storm water re-use would be discussed at a future worksession. Meeting adjourned at 6:54 p.m. LAKE ELMO CITY COUNCIL ATTEST: ______________________________ Charles Cadenhead, Mayor _______________________________ Julie Johnson, City Clerk STAFF REPORT DATE: June 21, 2021 CONSENT AGENDA ITEM: 2022 Staff Wage Adjustments TO: Mayor and City Council SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: Consistent with the City’s Compensation Policy, annual reviews were given to non-union employees who had successfully completed their probationary period. Below are the recommended changes in employee wages effective with the start of the 6/25/22 pay period. ISSUE BEFORE COUNCIL: Should the proposed wages be effective June 25, 2022? PROPOSAL: The following wage adjustments are recommended effective with the pay period beginning June 25, 2022 for those paid bi-weekly. Employee Current Proposed Frequency P Pay Tanya Batchelor $26.22 $27.79 hourly 2PTO Chris Chandler $37.95 $39.09 hourly Julie Johnson $3,036 $ 3,127.20 bi-weekly Molly Just $4,000.80 $4,118.80 bi-weekly Dustin Kalis $4,100 $4,334.40 bi-weekly Michael Kuehn $30.74 $32.54 hourly Rebecca McGuire $25.48 $27.01 hourly Marty Powers $4,460.80 $4,594.40 bi-weekly $579.90 Anthony Svoboda $42.14 $44.54 hourly $438.26 John Taylor $3,668 $3,779.20 bi-weekly Diane Wendt $25.48 $27.01 hourly In addition to the above, we are proposing a 3% wage adjustment for the firefighter paid on call rates as depicted on the attached. FISCAL IMPACT: These increases were included in the adopted 2022 budget OPTIONS: 1) Approve the wage adjustments as presented 2) Approve different wage adjustments and/or a different effective date 3) Do not approve any wage adjustments RECOMMENDATION: If removed from the consent agenda: Motion to approve the 2022 staff wage adjustments as presented. ATTACHMENTS: • Fire Department Part Time and POC Pay Below are the proposed Fire Department pay rates for 2022. These rates will be effective July 1, 2022. July 1, 2022 Hourly Pay Rates Officer $16.74 Engineer / EMT $15.71 Firefighter $14.42 Probation $12.36 Support Services (eff 1/1) $10.33 Part Time FF/Substitute Firefighter $17.99 EMS Responder Stand-By $5.00 Duty Crew Stand-By $2.50 Annual Officer Stipend Assistant Fire Chief $2,513.22 Captain $1,677.02 Lieutenant $838.51 STAFF REPORT DATE: June 21, 2022 CONSENT TO: City Council FROM: Dustin Kalis, Fire Chief AGENDA ITEM: Demontreville Outdoor Warning Siren Pole Replacement REVIEWED BY: Kristina Handt, City Administrator BACKGROUND: The Fire Department is requesting to replace the Demontreville outdoor warning siren pole. The city and fire department is responsible for the maintenance of 9 outdoor warning sirens sites throughout the city. Operation and activation of these sirens is in coordination with Washington County. The Demontreville site pole is severely damaged by woodpeckers and is at risk of further damage to the equipment mounted and installed if the pole is not replaced. This siren is currently offline until the pole replacement is completed. The 2022 general fund budget included the costs for this pole replacement. ISSUE BEFORE COUNCIL: Should the City Council approve the Demontreville outdoor warning siren pole replacement as recommended by staff? PROPOSAL DETAILS/ANALYSIS: If approved by Council, work will proceed to replace the Demontreville outdoor warning siren pole and re-install all equipment. Upon completion of this work, the siren will be brought back online to provide outdoor warnings to that area. FISCAL IMPACT: The cost of outdoor warning siren pole replacement $17,941.00 and will be a general fund expenditure as identified in the 2022 budget. Following the city’s purchasing policy, two quotations were obtained from Ready Watt Electric and Aid Electric. Aid Electric withdrew their quote as they were not able to perform portions of the work as requested by the city. Ready Watt Electric has been used for previous siren installations and maintenance within the city and are familiar with our outdoor warning siren network. OPTIONS: - Approve outdoor warning siren pole replacement as presented. - Do not approve replacement. RECOMMEDNATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, the outdoor warning siren pole replacement not to exceed $18,000. If removed from the consent agenda, the recommended motion for the action is as follows: “Motion to approve the outdoor warning siren pole replacement at a cost not to exceed $18,000”. ATTACHMENTS: • Ready Watt Electric Quotation • Aid Electric Quotation Estimate Date 2/8/2022 Estimate # 22-609 Name / Address Lake Elmo Fire Department Fire Station #1 3510 Laverne Ave N Lake Elmo, MN 55042 Attention: Chief Dustin Kalis 21269 Jarvis Street NW Nowthen, MN 55330 PH: 763-241-4944 Fax: 763-241-5245 Project 22-609 Siren 8243 Demontreville We look forward to doing business with you. Rob Schiller 612-221-4983 Signature TOTAL rschiller@readywattelectric.comwww.readywattelectric.com Description TOTAL Replace siren pole badly damaged by woodpeckers. Remove siren equipment with boom truck and bucket truck. Remove pole with digger derick reset new pole. Remove equipment re-install on new pole, woodpecker proof pole, work with Power Co to unhook and re-hook power. Have work inspected by electrical inspector. Siren maintenance grease head replace batteries, replace bad charger, clean and adjust contacts. Labor and Construction Equipment 10,610.00 Material 7,331.00 Price does not include Power Co charges, snow removal, restoration, un-augarable soil conditions if any. If augured soil is not usable to tamp pole customer to supply, tree trimming. If there are any additional questions please call me. Rob Schiller 612-221-4983 Over 45 years of Civil Defense Siren experience, installation, maintenance, and consulting. _____________________________________ ACCEPTANCE OF PROPSAL (must be signed and returned for work to begin) NOTE: THis propsal may be withdrawn from us if not accepted with in 15 days. The above prices, specifications and conditions are satisfactory and are herby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. $17,941.00 Dustin Kalis Lake Elmo Fire Department 3.4.22 “Demontreville” Warning Siren Work Scope of Work Remove existing pole from earth, remove from site and recycle Re-install existing equipment on replacment pole Upgrade battery charger to new 48V charging system Upgrade batteries with (4) new batteries Erect new pole Schedule test, or be on-site during regular test to verify operation Items above to be completed on a time and material basis not to exceed: $14,500.00 *Work to be completed in Spring/Frost free conditions* Thank you for the invitation, please let me know if you have any questions Sincerely, Kevin Vanderlinde Partner (c) 952-261-8658 STAFF REPORT DATE: June 21, 2022 CONSENT AGENDA ITEM: Authorize Engineering Services for the 2022 Trail Improvements SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director Adam Swanepoel, Assistant Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council authorize engineering services for the 2022 Trail Improvements? BACKGROUND: On May 3, 2022 the City Council approved the 2022 Parks Commission Work Plan which includes recommendations for trail improvements and connectivity. The plan recommends trail improvements to be completed in the 2022/2023 timeframe that consist of the Ivywood Park to Stonegate trail connection, the Hamlet on Sunfish to Tapestry trail connection, and improving the existing gravel trails in the Stonegate subdivision to paved trails (connecting to the Lake Ridge Crossing subdivision). PROPOSAL DETAILS/ANALYSIS: In order to implement the 2022 Trail Improvements, a task order has been prepared for TKDA, Inc. to provide engineering support services, including topographic survey, property corner survey, preparation of plans and specifications, bidding phase services, construction staking and construction administration support, as may be needed during the project construction. The trail work includes over 3,600 feet of new trail segments or reconstruction and paving existing gravel trail segments. Trail construction or reconstruction will consist of common excavation and grading, installation of an aggregate base, pavement, and pedestrian ramp installation in accordance with the City Engineering Design Standards. The design work will proceed immediately following council authorization with the goal to receive contractor bids by the end of August. Trail construction will proceed during the fall of 2022 and spring of 2023. FISCAL IMPACT: $52,900 for 2022 Trail Improvement engineering support services. The improvements are being funded through the City’s Park Funds and will not be assessed to benefitting properties. TKDA, Inc. will provide design phase engineering services in a not to exceed amount of $40,800. If the improvements are ordered and a construction contract is awarded, TKDA, Inc. will provide construction staking and construction administration support services in a not to exceed amount of $12,100. RECOMMENDATION: Staff is recommending that the City Council authorize TKDA, Inc., as part of the consent agenda, to provide engineering services for the 2022 Trail Improvements as outlined in Task Order No. 11. If removed from the consent agenda, the recommended motion for this action is as follows: “Move to authorize TKDA, Inc. to provide engineering services for the 2022 Trail Improvements as outlined in the attached Task Order No. 11.” ATTACHMENTS: 1. TKDA, Inc. Task Order No. 11 – 2022 Trail Improvements. 2. Project Location Map.     TASK ORDER No. 11 – 2022 TRAIL IMPROVEMENTS                 Page 1 of 4    TASK ORDER               No. 11  CITY OF LAKE ELMO, MINNESOTA – TKDA, INC.  PROFESSIONAL CONSULTING SERVICES AGREEMENT      In accordance with GENERAL AGREEMENT between the City of Lake Elmo (“CITY”) and TKDA, Inc.  (“ENGINEER”), dated February 8, 1988 (“AGREEMENT”), the ENGINEER agrees to provide Professional  Engineering Support Services as follows:    2022 TRAIL IMPROVEMENTS    PROJECT OVERVIEW:  The City of Lake Elmo requires professional engineering services for the 2022  Trail Improvements, including over 3,600 feet of new trail segments or reconstruction and paving  existing gravel trail segments. Trail construction or reconstruction will consist of common excavation  and grading, aggregate base, pavement, and pedestrian ramp installation in accordance with the City  Engineering Design Standards. The improvements are being funded through the City’s Park Funds and  will not be assessed to benefitting properties.      SERVICES TO BE PROVIDED BY CONSULTANT:  TKDA, Inc. will provide the following Professional  Consulting Services:     1. Project  Management  throughout  the  course  of  the  work  including submittal of a weekly  progress memo and job to date budget form.    2. Preparation of Plans and Specifications, and Contract Documents.   Project kick‐off meeting with city staff.   Work with city staff to develop critical success criteria for the project, obtain project  information and formalize the budget and schedule.    Site visit to review existing conditions and survey.   Survey: Coordinate Gopher State One utility locates and perform topographic survey of  existing conditions within project limits and with sufficient detail for the purposes of  preparing design documents and constructing the improvements. Survey to include  property corner locations to establish City right‐of‐way and easement areas.     Prepare soil boring plan and location map for City to retain Geotechnical Services for  the improvements.   Prepare construction plans and specifications for bidding purposes.    Prepare  stormwater  BMP  design(s)  to  address  Valley  Branch  Watershed  permit  requirements for the linear project improvements.   Identify  small  utility  conflicts  related  to  the  proposed  design  to  the  City’s  Project  Manager.  The  City  will  coordinate  necessary  relocation  efforts with the respective  small utility company as needed.      TASK ORDER No. 11 – 2022 TRAIL IMPROVEMENTS                 Page 2 of 4     Provide 60% plans and specifications to city for review, including design criteria and  assumptions memorandum.   Provide 90% plans and specifications to city for review, including  updated  design  criteria and assumptions memorandum.     Revise and finalize plans and specifications based on city comments.   Prepare opinion of probable cost based on final plans.   Identify permits required to complete the proposed work. The design shall incorporate  measures to meet compliance requirements for all permits necessary.   Prepare and submit any necessary permit applications for approval.  DELIVERABLES:   Plans in electronic format (PDF) and hard copy format (1 full size and 4 half size).   Specifications in electronic format and hard copy format (1 copy for the city and the  appropriate number for contracts and required permits).   Opinion of Total Probable Project Costs.    Design Memorandum summarizing final design assumptions and performance criteria  incorporated into the project design.   Identification of easements needed for the construction of the project. Easements  shall be shown on the final plans.   Completed project permit applications ready for signature by city representative.    3. Bidding Phase Services for each bid package.    Submit “Advertisement for Bids” to Oakdale‐Lake Elmo Review and Quest CDN.   Distribute plans and specifications as requested by bidders.   Maintain planholders list.   Respond to bidders’ questions and issue addenda as necessary.   Tabulate bid in electronic format.   Prepare contract award recommendation letter.    4. Construction Phase Services.   Attendance at preconstruction meeting.   Provide technical and construction administration support throughout the project as  requested by the City’s Project Manager (assume 25 hours from the design engineer of  record).   Coordinate and provide construction staking.   Prepare and submit record drawings in electronic format (AutoCAD and PDF) and hard  copy  format  (1  full  size  and  1  half‐size)  based  upon  staking  information  and  information provided by the contractor and city.    Prepare  and  submit  the  utility  as‐built  survey  data  as  GIS  Shape  Files,  including  relevant asset information (i.g. date of install, material type, size, structure type, etc.).      TASK ORDER No. 11 – 2022 TRAIL IMPROVEMENTS                 Page 3 of 4        CITIES RESPONSIBILITIES:  The City (or its consultants) will provide the following:   Provide copy of geotechnical investigations completed for the project area.   Provide signed Tapestry Trail Connection plan sheet and quantities.   Assist  with  stormwater  management  discussion  and  siting  options  for  watershed  permitting requirements.   Coordination with the public and conduct public meetings.   Presentation(s) to the City Council.   Easement negotiations and acquisition, if needed.   Review of 60% and 90% plans and specifications.   Coordination with small utility companies if conflicts are identified.   Construction Administration of the Contract.   Construction Observation.   Material and Compaction testing.   One‐year warranty inspections.  TIMES FOR RENDERING SERVICES:  CONSULTANT shall perform its services and provide deliverables  in accordance with the following schedule:  1. June 21, 2022 – Council approves selection of engineering firm.  2. June 23, 2022 – Project kick‐off meeting.  3. August 2, 2022 – Council approves Plans and Specifications; Authorizes the Ad for Bids.  4. August 30, 2022 – Receive contractor bids.  5. September 6, 2022 – Council accepts bids and awards contract.    CITY’S REPRESENTATIVE AND CONTRACT ADMINISTRATION:  The CITY’s representative with respect  to services rendered by CONSULTANT under this TASK ORDER shall be the City Engineer.  Project  correspondence must be addressed to:  Jack Griffin, P.E., City Engineer   City of Lake Elmo   3880 Laverne Avenue North  Suite 100  Lake Elmo, MN 55042  651.300.4264  Email: Jack.griffin@focusengineeringinc.com    COMPENSATION:  Compensation to CONSULTANT shall be on an hourly rate basis using the hourly  billing rates provided in the CONSULTANT’S Proposal for the work. Invoices shall be submitted once  each month and should be sent to the attention of the City Engineer.  TASK ORDER No. 11 – 2022 TRAIL IMPROVEMENTS    Page 4 of 4  Compensation to CONSULTANT for Project Management, the Preparation of Plans and Specifications,  Contract Documents, and Bidding Phase Services for the 2022 Trail Improvements shall be on an  hourly rate basis in a not to exceed amount of $40,800.  Compensation  to  the  CONSULTANT  for  the  Construction  Phase  Services  for  the  2022  Trail  Improvements shall be on an hourly rate basis in a not to exceed amount of $12,100.  Payment for Services shall be in accordance with GENERAL AGREEMENT dated February 2, 1988.  Invoices should be sent to the attention of the City Engineer.  ADDITIONAL SERVICES:  If authorized by the City, CONSULTANT shall furnish or obtain from others  Additional  Services  which  are  not  considered  under  this  Task  Order.  Such  services  shall  be  compensated for on an Hourly Rate basis in an amount approved by the City prior to any services  being started or as otherwise mutually agreed. The City is not obligated to compensate CONSULTANT  for services completed outside the approved scope of work which are completed prior to  CONSULTANT submitting a written request to the City, and receiving written approval of the City.  ATTACHMENTS:  This agreement supersedes and replaces all previous understandings, agreements  or contracts, written or verbal, between ENGINEER and City, regarding the 2022 Trail Improvements.  The following documents are attached for reference:  1.CONSULTANT’S Fee Estimate to the CITY dated, June 7, 2022. APPROVAL  AND  ACCEPTANCE:    Approval  and  Acceptance  of  this  Task  Order,  including  the  attachment(s)  listed  above,  shall  incorporate  this  document  as part  of  the  AGREEMENT.  CONSULTANT is authorized to begin performance of services upon receipt of a copy of this Task Order  signed by CITY.  The Effective Date of this Task Order is June 21, 2022.  TKDA, INC. CITY OF LAKE ELMO, MINNESOTA  By _________________________________  By  _________________________________  (Authorized Principal of the Firm)  City Administrator  600ft600ft600ft600ft600ft + – 1/1 9971 9997 998499589936 99869954 4075 4103 4044 4076 4102 4120 1014910144 10178 10191 10159 4127 4151 4179 4207 4233 4454 4138 4156 4174 10206 10225 10029 10030 1022010168 101381011810114 10231 10263 10289 10325 10353 10375 1038010368 10356 10342 10316 1027810080 10064 10042 10024 10010 4192 4212 4236 4258 4276 4384 4424 300ft300ft300ft300ft300ft + – STAFF REPORT DATE: June 21, 2022 CONSENT AGENDA ITEM: Authorize Topographic Survey and Preliminary Design for the Old Village Phase 7 Street and Utility Improvements SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council authorize a topographic survey and preliminary design for the Old Village Phase 7 Street and Utility Improvements? BACKGROUND: The City of Lake Elmo is extending sanitary sewer to serve the existing properties in the Old Village MUSA area to replace the use of private on-site sewage treatment systems. The Old Village Capital Improvement projects also include drainage improvements to continue addressing historic flooding issues in the Downtown area, the replacement of aged watermain pipes and reconstructing the public streets that are disturbed during the work. The Improvements are being constructed in phases and through separate projects. The first four phases were constructed in 2015, 2016, 2017, and 2018. Construction for Phases 5 and 6 began in 2021 and will be completed by the end of the 2022 construction season. The final phase of the Old Village Capital Improvement Plan, Phase 7, is programmed for construction in 2023. PROPOSAL DETAILS/ANALYSIS: The Old Village Phase 7 Street and Utility Improvements includes the extension of public sanitary sewer to serve the existing 24 platted properties located along Legion Avenue, south of 30th Street (see attached location map). The extension of sanitary sewer service will likely require a sanitary lift station as part of the project. The sewer service is intended to replace the use of private individual on‐site sewage treatment systems and the Old Village Remote A 201 Community Wastewater Treatment System. The city owned 201 system currently serves 9 of the existing 24 properties. The project work scope includes the replacement of the aged existing 6‐inch watermain along Legion Avenue, from 30th Street to the south end, and the 6‐inch watermain connection to the adjacent Heritage Farms subdivision. The project work scope also includes street and drainage improvements necessary to reconstruct the public streets and to restore the disturbed corridor, and in accordance with watershed permitting requirements. The Legion Avenue streets were last paved in 2009 and are in relatively good condition. The preliminary design work also includes coordination with the Valley Branch Watershed District (VBWD) to potentially incorporate District-developed stormwater improvements that may be identified by the VBWD from the in-progress flood mitigation study for the Legion Pond subwatershed. FOCUS Engineering has prepared the project work plan and engineering services task order to initiate detailed topographic survey and preliminary design for this project. The detailed topographic survey is needed together with the determination of the building low floor elevations to assess the most effective and efficient sanitary sewer plan for the area and to prepare a preliminary drainage plan to address stormwater management. The survey work will also help staff to identify the necessary right-of-way/easement needs for the project. These preliminary design efforts are necessary for this project area to better identify the specific infrastructure improvements that will be needed, before reliable costs and proposed assessments can be determined and brought forward in the feasibility report. The City Engineer worked with SEH, Inc. to review the preliminary design scope of work in detail and a scope and fee has been developed as attached. The preliminary engineering fees will be funded through the project costs which will be part of the project assessments once the improvements proceed to construction. FISCAL IMPACT: $61,400. If authorized, SEH, Inc. will initiate the topographic survey and preliminary design services in a not to exceed amount of $61,400. This amount includes $6,500 for title work. If the improvements are ordered, the preliminary design costs will be charged against the project fund and become assessable to the benefitting properties once the improvements proceed into construction. Should the project not be constructed, these costs cannot be assessed. RECOMMENDATION: Staff is recommending that the City Council authorize SEH, Inc. to complete the topographic survey and preliminary design services for the Old Village Phase 7 Street and Utility Improvements. The recommended motion for this action is as follows: “Move to authorize SEH, Inc. to complete the Topographic Survey and Preliminary Design for the Old Village Phase 7 Street and Utility Improvements as outlined in the attached Task Order No. 20.” ATTACHMENTS: 1. SEH, Inc. Task Order No. 20 – Old Village Phase 7 Street and Utility Improvements. 2. Project Location Map.     TASK ORDER No. 20 – OLD VILLAGE PHASE 7: STREET AND UTILITY IMPROVEMENTS                             Page 1 of 3    TASK ORDER               No. 20  CITY OF LAKE ELMO, MINNESOTA – SHORT ELLIOT HENDRICKSON, INC.  PROFESSIONAL CONSULTING SERVICES AGREEMENT      In accordance with ARTICLE 1 of the Master AGREEMENT between the City of Lake Elmo (“CITY”) and  Short Elliot Hendrickson, Inc. (SEH) (“CONSULTANT”), dated August 13, 2014 (“AGREEMENT”), the  CONSULTANT agrees to provide Professional Consulting Support Services as follows:      OLD VILLAGE PHASE 7: STREET AND UTILITY IMPROVEMENTS    PROJECT OVERVIEW: The City of Lake Elmo requires professional engineering services for preliminary  design efforts for the Old Village Phase 7: Street and Utility Improvements (the Project).  The Project  includes the extension of public sanitary sewer to serve the existing 24 platted properties located in  the Old Village MUSA along Legion Avenue, south from 30th Street. The extension of sanitary sewer  service will likely require a sanitary lift station as part of the project. The sewer service is intended to  replace the use of private individual on‐site sewage treatment systems and the Old Village Remote A  201 Community Wastewater Treatment System (providing service to approximately 9 of the existing  24  properties).  The  project  work  scope  includes  the  replacement of the aged existing 6‐inch  watermain  along  Legion  Avenue,  from  30th  Street  to  the  south  end,  and  the  6‐inch  watermain  connection to the adjacent Heritage Farms subdivision. The project work scope also includes street  and drainage improvements necessary to reconstruct the public streets and to restore the disturbed  corridor, and in accordance with watershed permitting requirements.    SERVICES TO BE PROVIDED BY CONSULTANT:  SEH,  Inc.  will  provide  the  following  Professional  Consulting Services:     1. Project  Management  throughout  the  course  of  the  work  including submittal of a weekly  progress memo and job to date budget form.    2. Preliminary Design.   Project kick‐off meeting with city staff.   Work with city staff to develop critical success criteria for the project, obtain project  information and formalize the budget and schedule.    Site visit to review existing conditions.   Survey:  Coordinate  Gopher  State  One  Call  utility  locates  and  perform  topographic  survey of existing conditions within project limits for the purposes of preparing design  documents.    Right of way verification: Review title work and verify right‐of‐way for all properties  impacted by the proposed improvements.      TASK ORDER No. 20 – OLD VILLAGE PHASE 7: STREET AND UTILITY IMPROVEMENTS                             Page 2 of 3     Prepare preliminary design including recommendations for proposed sanitary sewer  service  alternatives,  street  widths,  stormwater  management,  and replacement of  watermain.  The  preliminary  design  recommendations  with  design  memorandum  should  include  the  proposed  lift  station  site  plan,  lift  station  capacity  and  configuration, and forcemain routing.    Identify right of way and easement needs to construct the proposed infrastructure.   Identify  small  utility  conflicts  related  to  the  proposed  design  to  the  City’s  Project  Manager.  The  city  will  coordinate  necessary  relocation  efforts with the respective  small utility company as needed.   Provide recommendation on the amount and location of soil borings for geotechnical  investigation.   Prepare opinion of probable cost based on the preliminary design layout. Estimates of  project cost to be used by the city for the purposes of levying preliminary assessments  to the benefitting properties.   Identify permits required to complete the proposed work. The design shall incorporate  measures to meet compliance requirements for all permits necessary.  DELIVERABLES:   Exhibits displaying recommended infrastructure to be inserted as part of the Project  Feasibility Report prepared by the city.    Opinion of Total Probable Project Costs.    Design Memorandum summarizing preliminary design assumptions and performance  criteria incorporated into the project design.   Identification of easements needed for the construction of the project.     CITIES RESPONSIBILITIES:  The City (or its consultants) will provide the following:   Coordination with the public and conduct public meetings.   Preparation of the Feasibility Report and Assessment Procedures.   Presentation(s) to the City Council.   Easement negotiations and acquisition, if needed.   Coordination with small utility companies if conflicts are identified.   Hire geotechnical firm for geotechnical investigation based on SEH recommendations.  TIMES FOR RENDERING SERVICES:  CONSULTANT shall perform its services and provide deliverables  in accordance with the following schedule:  1. June 21, 2022 – Council approves Task Order.  2. June 23, 2022 – Project kick‐off meeting.  3. All Task Order Services shall be substantially completed by September 16, 2022.      TASK ORDER No. 20 – OLD VILLAGE PHASE 7: STREET AND UTILITY IMPROVEMENTS                             Page 3 of 3    CITY’S REPRESENTATIVE AND CONTRACT ADMINISTRATION:  The CITY’s representative with respect  to services rendered by CONSULTANT under this TASK ORDER shall be the City Engineer.  Project  correspondence must be addressed to:  Jack Griffin, P.E., City Engineer   City of Lake Elmo   3800 Laverne Avenue North  Lake Elmo, MN 55042  651.300.4264  Email: Jack.griffin@focusengineeringinc.com    COMPENSATION: Compensation to CONSULTANT for Project Management and preliminary design  work for the Old Village Phase 7: Street and Utility Improvements shall be on an hourly rate basis in a  not to exceed amount of $61,400. Invoices shall be submitted once each month and should be sent to  the attention of the City Engineer.  Payment for Services shall be in accordance with ARTICLE 3.2 of the Master AGREEMENT.   ADDITIONAL SERVICES:  If authorized by the City, CONSULTANT shall furnish or obtain from others  Additional  Services  which  are  not  considered  under  this  Task  Order.  Such  services  shall  be  compensated for on an Hourly Rate basis in an amount approved by the City prior to any services  being started or as otherwise mutually agreed. The City is not obligated to compensate CONSULTANT  for services completed outside the approved scope of work which are completed prior to  CONSULTANT submitting a written request to the City, and receiving written approval of the City.    ATTACHMENTS:  The following documents are attached for reference:    1. CONSULTANT’S Proposal to the CITY dated June 15, 2022.    APPROVAL  AND  ACCEPTANCE:    Approval  and  Acceptance  of  this  Task  Order,  including  the  attachment(s)  listed  above,  shall  incorporate  this  document  as part  of  the  AGREEMENT.  CONSULTANT is authorized to begin performance of services upon receipt of a copy of this Task Order  signed by CITY.    The Effective Date of this Task Order is June 21, 2022.      SHORT ELLIOT HENDRICKSON, INC.   CITY OF LAKE ELMO, MINNESOTA        By _________________________________   By  _________________________________   (Authorized Principal of the Firm)  City Administrator      June 14, 2022 RE: City of Lake Elmo Old Village Phase 7: Street & Utility Improvements Proposal for Preliminary Design Services SEH No. P-LAKMO 167893 Jack Griffin PE City Engineer City of Lake Elmo 3800 Laverne Avenue N Lake Elmo, MN 55042 Dear Mr. Griffin: Short Elliott Hendrickson Inc. (SEH®) is pleased to submit this proposal for topographic surveying and preliminary design services for proposed street and utility improvements in the Old Village Phase 7 project area. The project consists of Legion Avenue North from 30th St. N. to the southern hammerhead turn-around and will include the extension of public sanitary sewer to serve the existing 26 platted properties located in the Old Village MUSA along Legion Avenue. The sewer service is intended to replace the use of private individual on-site sewage treatment systems and the Old Village Remove A 201 Community Wastewater Treatment System (which provides services to approximately 9 of the 29 properties). Additionally, this project will include the replacement of aged 6- inch water main along Legion Avenue, and the 6-inch connection to the Heritage Farms subdivision. The project work scope also includes street and drainage improvements necessary to reconstruct the public street and restore the disturbed corridor. We understand these improvements would be planned for construction in 2023. We propose the following team to assist the City with this phase of the project: Dave Hutton – Project Manager, Jeff Thene – Lead Technician, Brian Hare – Lead Designer, and Rachel Pichelmann – Lead Stormwater Engineer. If authorized, we would schedule/begin the field work promptly and are prepared to meet your September 16, 2022 completion schedule. If acceptable, we propose to furnish the requested scope of services outlined in Task Order No. 20 in accordance with the Master Agreement between SEH and the City of Lake Elmo on an hourly basis plus reimbursable expenses for a maximum fee of $61,400, which includes $6,500 for title work. A detailed work task and hour breakdown is attached showing the tasks, and staff hours, we anticipate completing our understanding of the work based on our recent discussions. Because of the topography and heavy tree cover in the majority of the project area, we do not anticipate being able to use GPS to perform the topographic survey. For these reasons, our survey fee is based on the use of a total station to complete the work, which is more time-consuming and accurate than GPS. Payment for any additional services shall be based on the actual time required to perform the services and the billable rates for the employees engaged directly on the project, plus actual reimbursable expenses. All services will be invoiced monthly. Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110-3507 651.490.2000 | 800.325.2055 | 888.908.8166 fax | sehinc.com SEH is 100% employee-owned | Affirmative Action–Equal Opportunity Employer Jack Griffin PE June 14, 2022 Page 2 If this proposal is acceptable, please sign below and return a copy for our records. If you need any further information or wish to review this together, please contact me at 952.797.2329 or Scott Haupt at 651.734.3700. Sincerely, SHORT ELLIOTT HENDRICKSON INC. Dave Hutton, PE Scott D. Haupt, PE Senior Project Manager Client Service Manager Accepted this _______ day of _______________, 2022 CITY OF LAKE ELMO, MINNESOTA By ____________________________________ x:\ko\l\lakmo\167893\1-genl\10-setup-cont\03-proposal\ov 7 prelim design proposal.docx Attachment No. 1 Consultant = SEH City = City of Lake Elmo/Focus Engineering Assumptions The City will complete the Feasibility Report, including assessment calculations, assessment roll, and conduct the assessment hearings. The City will retain the geotechnical consultant. SEH will provide input into location, depth, and frequency of borings. There is no public engagement or Council meetings included in the scope. City staff will handle these items. Consultant to identify any areas where either temporary or permanent easements are needed. City staff will complete any easement negotiations and acquisitions. Permits will be identified that will be required for complete the proposed work. These will include, but are not limited to, MDH, VBWD, MPCA, and MCES. Scope includes determination of Lowest Floor Elevations prior to design of Sanitary Sewer, Lift Station, and Force Main. Downstream sanitary sewer pipe capacity has been reviewed by the City to accommodate additional system demands created by this project. No downstream capacity analysis is assumed to be required with this phase. Valley Branch Watershed District is conducting a study of Legion Pond to minimize flood risk. SEH will coordinate with VBWD to obtain information regarding District-developed stormwater design concepts that should be incorporated into the Legion Avenue Improvements. SEH will rely on the stormwater concepts developed by the District and will not be conducting a separate flood study to identify flood mitigation alternatives for Legion Pond. Deliverables Exhibits displaying recommended infrastructure to be inserted as part of the Project Feasibility Report prepared by the City. Opinion of Total Probable Project Costs Design Memorandum summarizing preliminary design assumptions and performance criteria incorporated into the project design. Identification of required easements needed for the construction of the project. City of Lake Elmo - Proposal for Old Village Phase 7 Street and Utility ImprovementsSHORT ELLIOTT HENDRICKSON: PROJECT WORK PLAN PROJECT NAME: Old Village Phase 7 - Street and Utility Improvements SEH PROJECT NUMBER: LAKMO P-167893 CLIENT: CITY OF LAKE ELMO CLIENT CONTACT: Jack Griffin PROJECT MANAGER: David HuttonTOTAL HOURS38016408152162885421964HOURLY BILLING RATE$165.00$165.00$139.00$147.00$141.00$120.00$165.00$118.00$95.00 $165.00$139.00TOTAL LABOR COST$53,672 $7,676$61,400$2,640.00$6,600.00$11,259.00$7,644.00$2,256.00$3,360.00$1,320.00$6,372.00$190.00$3,135.00$8,896.00TaskDESCRIPTION OF TASK David Hutton Brian HareBlake Hanson Jeff Thene Theo Brown Greg TvedtFasil Yitbarek Ryan KiblerKaren AndersonRachel Pichelmann Jordan Van OortProject Mgr.Lead DesignerProject Engineer Lead Tech RLSSurvey Crew ChiefLift Stations ForcemainDesign Engineer Admin.Water Resources EngineerWater Resources Design1 PROJECT MANAGEMENT$5,388.00$5,400Project mgmt throughout including weekly progress memo and JTD budget form (13 wk)$1,320.00$1,320.00 8Internal Kick-off and Progress Meetings (1/2hr/wk, 13 weeks)$4,068.00$4,068.00414244QA/QC2 PRELIMINARY DESIGN SERVICES$48,284.00 $7,676.00$56,000Project Kick-off meeting$495.00$495.00 111Develop critical success criteria, obtain project info, budget and schedule$495.00$495.00 111Site visit to review existing conditions$1,320.00 $70.00$1,390.00323Coordination with private utilities$556.00$556.004Topographic Survey$4,488.00 $1,106.00$5,594.00828Obtain Lowest Floor Elevations and Service Location for Each Parcel (2hr/parcel)$7,644.00$7,644.0052Right of way verification: Review title work and right of way and all property impacts$1,684.00 $6,500.00$8,184.0048Proposed Sanitary Sewer Service Alternatives Recommendation$1,494.00$1,494.00 226Proposed Street and Storm Design Recommendations$13,430.00$13,430.004161064Proposed Water Main Improvements$608.00$608.0022Proposed Lift Station Site Plan$1,180.00$1,180.0010Proposed Lift Station Capacity and Configuration$1,180.00$1,180.0010Proposed Forcemain Routing$1,788.00$1,788.002210Identify Right of Way and Easement Impacts for Project Area$860.00$860.0015Identify and Relay Small Utility Conflicts to City's Project Manager$1,400.00$1,400.00262Provide Recommendation on Amount and Location of Soil Borings$556.00$556.004Review Soil Borings, Provide Geotechnical Recommendations$660.00$660.004Prepare Opinion of Probable Costs$3,220.00$3,220.002148Identify Permits Required for Proposed Work$1,028.00$1,028.0044Final Design Recommendations Memo$4,198.00$4,198.00 412262 2Total:$61,400Expenses TotalLabor TotalTask Total6/14/2022 10:09 AMX:\KO\L\LAKMO\167893\1-genl\10-setup-cont\03-proposal\THB_Old Village Phase 7 Scope and fee 2022.xlsx FIGURE NO. 1 LOCATION MAP OLD VILLAGE PHASE 7 CITY OFLAKE ELMO OLD VILLAGE PHASE 7 STREET, DRAINAGE, AND UTILITY IMPROVEMENTS LEGEND LAKE ELMO OLD VILLAGE PHASE 7: STREET AND UTILITY IMPROVEMENTS STAFF REPORT DATE: June 21, 2022 CONSENT AGENDA ITEM: Accept Improvements, Approve Security Reductions, and Approve City Utility Oversize Cost Reimbursement for Inwood 5th Addition SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Molly Just, Planning Director Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the improvements, approve security reductions, and approve utility oversize cost reimbursement for the Inwood 5th Addition? PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to accept the improvements, reduce the development security, and process city utility oversize cost reimbursements for the Inwood 5th Addition. This request has been reviewed and is being recommended for approval in accordance with the approved Development Agreement, and contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. Utility oversize payments are recommended in the amounts of $56,100 for trunk watermain oversize costs and $3,208 for trunk sanitary sewer oversize costs. The Development Security amount is recommended to be reduced as follows: Current Security Amount Proposed Security Amount 1. Inwood 5th Addition $ 1,367,574 $ 476,827 The Inwood 5th Addition facilities are in the warranty period as identified on the attached Certificate of Completion. In addition, the landscape improvements have been accepted and the 2-year warranty has been initiated. Twenty-five percent (25%) of the original security amount will be retained until the warranty periods have expired. FISCAL IMPACT: It is the City’s goal to retain at all times during the subdivision improvements a security amount that is adequate to ensure completion of all elements of the improvements as protection to the City tax payers against the potential of developer default. RECOMMENDATION: Staff is recommending that the City Council, as part of the Consent Agenda, accept the improvements, approve the security reductions as detailed in the attached worksheet, and approve city utility oversize cost reimbursements as itemized above for the Inwood 5th Addition, all contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement, including a positive escrow balance as required by the City. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to accept the improvements, approve the security reductions as detailed in the attached worksheet, and approve city utility oversize cost reimbursements as itemized above for the Inwood 5th Addition, all contingent on the developer being current with all other payments and obligations in accordance with the Development Agreement.” ATTACHMENTS: 1. Certificate of Completion – Inwood 5th Addition. 2. Landscape Improvements Acceptance Letter – Inwood 5th Addition. 3. Security Reduction Worksheet – Inwood 5th Addition. CERTIFICATE OF COMPLETION DATE OF ISSUANCE: JUNE 21, 2022 OWNER: CITY OF LAKE ELMO, MN DEVELOPER: M/I HOMES OF MINNEAPOLIS/ST. PAUL, LLC SUBDIVISION NAME: INWOOD 5TH ADDITION PROJECT NO.: 2016.140 This Certification of Completion applies to all work under the Development Agreement This Certification of Completion applies to the following specified parts of the Development Agreement Section 34.A – Public sewer and watermain Section 34.B – Public improvements related to street construction including concrete curb and gutter, sidewalks and trails, materials and equipment. I do hereby certify that the work to which this Certificate applies has been constructed in accordance with the Development Agreement dated June 15, 2017. The above-mentioned improvement is hereby declared to be complete and acceptance of this work is recommended. DATE OF COMPLETION: June 21, 2022 Chad Isakson Reg. No. 49028 FOCUS Engineering, inc. Section 34.A Warranty Period Begins March 6, 2018 and ends March 6, 2020 Section 34.B Warranty Period Begins June 21, 2022 and ends June 21, 2023 Memo File: 227701153 To: Molly Just, City of Lake Elmo Planning Director From: Sarah Harding, Landscape Architect Jenna Niday, Landscape Designer File: Inwood 5th Addition Landscape Warranty Initial Reinspection – November 12, 2021 Date: November 19, 2021 Attendees • Jenna Niday, Landscape Designer Landscape Inspection Summary: A walk through of the landscape conditions was completed for the initial reinspection of Inwood 5th addition. Findings: The following punchlist items were identified on the September 15 inspection: • Nine (9) trees were found to be dead or dying and needed to be replaced. Upon follow up inspection on November 12, all punchlist items have been addressed, inspected, and found in acceptable condition. Two (2) evergreen trees, noted on the attached figure, were replaced late in the season, and will have their establishment monitored. Recommendation: It is recommended that the initial acceptance and the start of the 2-year landscape warranty for the 5th addition of Inwood begins. Stantec Consulting Services Inc. Sarah Harding, PLA (MN) City of Lake Elmo Municipal Landscape Architect P: 952-334-4838 E: sarah.harding@stantec.com Initial Inspection Initial Reinspection & Acceptance 1-year Inspection 1-year Reinspection 2-Year Inspection 2-Year Reinspection Final Inspection Acceptance 1st Addition 12/21/2016 ---3/16/2017 ---7/3/2018 ---7/3/2018 2nd Addition 12/21/2016 ---3/16/2017 ---7/3/2018 ---7/3/2018 3rd Addition 12/21/2016 ---3/16/2017 ---6/2/2021 9/15/2021 9/15/2021 4th Addition 10/2/2020 ---6/2/2021 9/15/2021 & 11/12/2021 9/x/2022 5th Addition 6/2/2020 9/15/2021 & 11/12/2021 9/x/2022 Inwood !(!( !(!( !(!( !(!(!(!(!( !(!(!(!(!(!(!( !(!(!(!(!(!( !(!(!(!(!(!( !( !(!(!( !(!( !( !( !( !(!( !( !( !( !(!(!( !(!(!( !(!(!(!( !(!(!(!( !(!(!(!(!( !(!(!(!( !( !( !( !(!( !( !( !( !( !(!(!(!( !(!( !( !( !(!( !(!(!(!(!(!( !(!(!( !( !( !( !( !( !( !( !( !( !( !( !( !(!( !( !( !(!( !( !( !(!(!( !( !( !( !( !(!( !(!( !( !( !( !(!(!( !(!(!( !(!(!( !(!(!( !(!(!(!(!(!(!(!(!(!(!(!(!( !(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!( !(!(!(!(!(!(!(!(!( !( !(!(!(!( !(!( !(!( !(!( !( !( !( !( !(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!( !(!(!( !(!( !(!(!(!(!(!(!(!(!(!(!(!(!(!(!(!( !(!( !(!( !(!( !(!( !(!( !( !( !( !(!(!(!( !( !( !( !( !(!( !( !( !( !( !( !( !( !( !( !( !(!(!(!(!(!(!(!(!(!(!( !( !( Path: V:\2277\active\227701153\gis\Pro\InwoodDevelopment\InwoodDevelopment.aprx 2021-09-24 3:36 PM kberglund Layout: Inwood 5th Addition - Initial Re-Inspection Figure 1a NOV 2021 Inwood 5th Addition - Initial Re-Inspection CITY OF LAKE ELMO 150 0 15075 Feet ¯ Legend !(Accepted !(Watch Washington County Parcels INWOOD 5TH ADDITION October 31, 2018DEVELOPMENT AGREEMENT AMOUNTSCATEGORY CONSTRUCTION 125% REMARKS #1 #2 #3 #4 #5 #6Grading NA NAIncluded in Overall Grading AgreementSanitary Sewer $356,976 $446,220100%$223,110 $111,555 $111,555Watermain $488,479 $610,599100%$305,299 $152,650 $152,650Storm Sewer $189,979 $237,47475%$118,737 $59,369Streets and Sidewalks $673,595 $841,99475%$420,997 $210,498Trails $10,000 $12,50075%$9,375Surface Water Facilities $96,890 $121,11375%$90,834Street Lighting $66,000 $82,50075%$61,875Street Signs and Traffic Control Signs $8,850 $11,06375%$8,297Private Utilities (electricity, natural gas, telephone, and cable)Landscaping $180,000 $225,0000%$168,750Tree Preservation and Restoration NA NAWetland Mitigation and Buffers $2,250 $2,81375%$2,109Monuments $10,100 $12,62575%$9,469Erosion Control NA NAincluded in Grading AgreementTurn Lanes $283,182 $353,97875%$265,483Record Drawings $5,000 $6,25075%$4,688TOTALS $2,371,301 $2,964,127RELEASED AMOUNTS:$1,068,143 $264,205 $264,205 $890,747 $0 $0CUMMULATIVE AMOUNTS:$1,068,143 $1,332,348 $1,596,553 $2,487,300SECURITY AMOUNT REMAINING:$1,895,983 $1,631,779 $1,367,574 $476,827DATE:3/6/2018 1/15/2019 9/21/2021 6/21/2022Time of Performance: REDUCTIONS STAFF REPORT DATE: June 21, 2022 CONSENT AGENDA ITEM: MPCA Grant for Well 5 Amendment #1 TO: Mayor and City Council SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: In June 2019, the city council approved a grant agreement with MPCA to replace well #1 with well # including the watermain extension and pump house. Also included in this grant was the abandonment of well #1. The current grant expires June 30, 2022. ISSUE BEFORE COUNCIL: Should the Council approve the Grant Amendment #1 with the MPCA for the Well 5 project? PROPOSAL: City staff asked for a time extension on the grant in order to get us through the decommissioning of Well #1 which is expected to be completed by the end of the construction season this year. The amendment also deletes the purchasing order number which is a formatting change from when the grant was first approved. Our most recent grant agreements do not have a purchase order number. Lastly, the state has proposed deleting the insurance requirements. FISCAL IMPACT: NA OPTIONS: 1) Approve the Well #5 Grant Agreement Amendment #1 with MPCA 2) Do not approve the Well #5 Grant Agreement Amendment #1 with MPCA RECOMMENDATION: Motion to approve the Well #5 Grant Agreement Amendment #1 with MPCA ATTACHMENTS: • Amendment #1 Grant Agreement Amendment #1 State of Minnesota Doc Type: Contract SWIFT Contract Number: 155932 Purchase Order Number: 3000023886 AI: 90810 Activity ID: PRO20190001 Contract Start Date: June 14, 2019 Total Contract Amount: $ 2,500,000.00 Original Contract Expiration Date: June 30, 2022 Original Contract: $ 2,500,000.00 Current Contract Expiration Date: June 30, 2022 Previous Amendment(s) Total: $ 0.00 Requested Contract Expiration Date: December 31, 2022 This Amendment: $ 0.00 This amendment is between the State of Minnesota, acting through its Commissioner of the Minnesota Pollution Control Agency, 520 Lafayette Road North, St. Paul, MN 55155-4194 (“MPCA” or “State”), and City of Lake Elmo, a Minnesota municipal corporation, 3880 Laverne Avenue North, Lake Elmo, MN 55042 (“Grantee or “LGU”). Recitals 1. The State has a grant contract with the Grantee identified as SWIFT Contract Number 155932 ("Original Grant Contract") to provide the City of Lake Elmo new water supply well (Well Number 5) Project. 2. The Original Agreement is being amended to extend the expiration date and remove Clause 17 Insurance Requirements. 3. The State and the Grantee are willing to amend the Original Grant Contract as stated below. Grant Contract Amendment In this Amendment, changes to pre-existing Agreement language will use strike through for deletions and underlining for insertions. REVISION 1. Clause 1 "Term of Grant Agreement" is amended as follows: 1. Term of Grant Agreement 1.1 Effective date: June 14, 2019, or the date the State obtains all required signatures under Minn. Stat.§16B.98, Subd. 5, whichever is later. Per Minn.Stat.§16B.98 Subd. 7, no payments will be made to the Grantee until this grant agreement is fully executed. 1.2 Expiration date: June 30, 2022 December 31, 2022, or until all obligations have been satisfactorily fulfilled, whichever occurs first. 1.3 Survival of Terms. The following clauses set forth in this grant agreement survive the expiration or cancellation of this grant agreement: Liability; State Audits; Government Data Practices and Intellectual Property Rights; Publicity and Endorsement; Governing Law, Jurisdiction, and Venue; and Data Disclosure. DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 REVISION 2. Clause 17 "Insurance requirements" is removed: 17. Insurance requirements Below are the minimum insurance limits required by the State of Minnesota for any entity that is not a state Agency or Local Government Unit (LGU) unless otherwise noted (**). 17.1 The Grantee shall not commence work under the Agreement until they (or subcontractor) have submitted acceptable evidence of insurance and the State of Minnesota has approved such insurance. LGU or subcontractor shall maintain such insurance in force and effect throughout the term of this grant agreement. A certificate of insurance is acceptable evidence. 17.2 Subcontractor is required to maintain and furnish satisfactory evidence of the following insurance policies: (a) Workers' Compensation Insurance. Subcontractor must provide Workers' Compensation insurance for all of its employees and, in case any work is subcontracted, LGU will require any subcontractors to provide Workers' Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Coverage B, Employer's Liability. Insurance minimum amounts are as follows: $100,000 -- Bodily Injury by Disease per employee $500,000 -- Bodily Injury by Disease aggregate $100,000 -- Bodily Injury by Accident If Minn. Stat. § 176. 041 exempts subcontractor from Workers' Compensation insurance or if the subcontractor has no employees in the State of Minnesota, subcontractor must provide a written statement, signed by an authorized representative, indicating the qualifying exemption that excludes LGU from the Minnesota Workers' Compensation requirements. If during the course of the grant agreement the subcontractor becomes eligible for Worker's Compensation, the subcontractor must comply with the Workers' Compensation Insurance requirements herein and provide the State of Minnesota with a certificate of insurance. (b) Commercial General Liability Insurance. Subcontractor is required to maintain insurance protecting it from claims for damages for bodily injury, including sickness or disease, death, and for care and loss of services as well as from claims for property damage, including loss of use which may arise from operations under this grant agreement and in any case work is subcontracted the LGU will require its subcontractors to provide Commercial General Liability. Insurance minimum amounts are as follows: $2,000,000 -- per occurrence $2,000,000 -- annual aggregate $2,000,000 -- annual aggregate -- Products/Completed Operations **For LGUs, the coverage shall be maintained in conformance with the Tort Claims limits set forth in Minn. Stat. ch. 466, with limits not less than $500,000 per claimant and $1,500,000 per occurrence for bodily injury and property damage. The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability The State of Minnesota shall be named as an Additional Insured (a) Commercial Automobile Liability Insurance. Subcontractor is required to maintain insurance protecting the Grantee from claims for damages for bodily injury as well as from claims for property damage resulting from the ownership, operation, maintenance or use of all owned, hired, and non-owned autos which may arise from operations under this grant agreement, and in case any work is subcontracted the LGU will require its subcontractors to provide Commercial Automobile Liability. Insurance minimum amounts are as follows: $2,000,000 -- per occurrence Combined Single limit for Bodily Injury and Property Damage **For LGUs, the coverage shall be maintained in conformance with the Tort Claims limits set forth in Minn. Stat. Ch. 466, with limits not less than $500,000 per claimant and $1,500,000 per occurrence for bodily injury and property damage. In addition, the following coverages should be included: Owned, Hired, and Non-owned Automobile (b) Professional Liability Insurance. This policy will provide coverage for all claims the Grantee, or its subcontractors, may become legally obligated to pay, resulting from any actual or alleged negligent act, error, or omission related to LGU's or its subcontractors' professional services required under this grant agreement. $2,000,000 -- per claim or event $2,000,000 -- annual aggregate **For LGUs, the coverage shall be maintained in conformance with the Tort Claims limits set forth in Minn. Stat. Ch. 466, with limits not less than $500,000 per claimant and $1,500,000 per occurrence for bodily injury and property damage. Any deductible of the subcontractor will be the sole responsibility of the subcontractor and may not exceed $50,000 without the written approval of the State. If the subcontractor desires authority from the State to have a deductible in a higher amount, the subcontractor shall request in writing, specifying the amount of the desired deductible and providing financial documentation by submitting the most current audited financial statements or other approved documentation so that the State can ascertain the ability of the subcontractor to cover the deductible from its own resources. (c) The retroactive or prior acts date of such coverage shall not be after the effective date of this Agreement and LGU or subcontractor shall maintain such insurance for a period of at least three (3) years, following completion of the work. If such insurance is discontinued, extended reporting period coverage must be obtained by LGU or subcontractor to fulfill this requirement. 17.3 Additional insurance conditions: DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 • LGU's or subcontractor's policy(ies) or subcontractor's shall be primary insurance to any other valid and collectible insurance available to the State of Minnesota with respect to any claim arising out of the performance under this grant agreement. • The LGU or subcontractor is responsible for payment of grant agreement-related insurance premiums and deductibles. • If LGU or subcontractor is self-insured, a Certificate of Self-Insurance must be attached • Include legal defense fees in addition to liability policy limits, with the exception of 13.2 (d) above. • Obtain insurance policies from an insurance company having an "AM BEST" rating of A- (minus); Financial Size Category (FSC) VII or better and must be authorized to do business in the State of Minnesota or obtain comparable coverage under a program of self- insurance. • An Umbrella or Excess Liability insurance policy may be used to supplement the LGU's or subcontractor's policy limits to satisfy the full policy limits required by the grant agreement. • If LGU or subcontractor receives a cancellation notice from an insurance carrier affording coverage herein, the Grantee agrees to notify the State of Minnesota within five (5) business days with a copy of the cancellation notice, unless LGU's or subcontractor's policy(ies) contain a provision that coverage afforded under the policy(ies) will not be cancelled without at least thirty (30) days advance written notice to the State of Minnesota. 17.4 The State reserves the right to immediately terminate this grant agreement if the LGU or subcontractor is not in compliance with the insurance requirements and retains all rights to pursue any legal remedies against the LGU. All insurance policies must be open to inspection by the State, and copies of policies must be submitted to the State's authorized representative upon written request. 17.5 The Grantee is required to submit a Certificate of Insurance acceptable to the State of Minnesota as evidence of insurance coverage requirements prior to commencing work under this grant agreement. Except as amended herein, the terms and conditions of the Original Grant Agreement and all previous amendments and change orders remain in full force and effect. The Original Grant Agreement and any previous amendments and change orders are incorporated into this amendment by reference. Signatures Title Name Signature Date \t1\ \n1\ \s1\ \d1\ \t2\ \n2\ \s2\ \d2\ DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 Katie SheaEncumbrance Verification June 8, 2022 KRISTINA HANDTCity Administrator \t3\ \n3\ \s3\ \d3\ \t4\ \n4\ \s4\ \d4\ \t5\ \n5\ \s5\ \d5\ \t6\ \n6\ \s6\ \d6\ DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 MINNESOTA DEPARTMENT OF LABOR AND INDUSTRY PREVAILING WAGES FOR STATE FUNDED CONSTRUCTION PROJECTS THIS NOTICE MUST BE POSTED ON THE JOBSITE IN A CONSPICUOUS PLACE Construction Type: Commercial County Number: 82 County Name: WASHINGTON Effective: 2018-12-17 Revised: 2019-01-28 This project is covered by Minnesota prevailing wage statutes. Wage rates listed below are the minimum hourly rates to be paid on this project. All hours worked in excess of eight (8) hours per day or forty (40) hours per week shall be paid at a rate of one and one half (1 1/2) times the basic hourly rate. Violations should be reported to: Department of Labor and Industry Prevailing Wage Section 443 Lafayette Road N St Paul, MN 55155 (651) 284-5091 DLI.PrevWage@state.mn.us * Indicates that adjacent county rates were used for the labor class listed. County: WASHINGTON (82) LABOR CODE AND CLASS EFFECT DATE BASIC RATE FRINGE RATE TOTAL RATE LABORERS (101 - 112) (SPECIAL CRAFTS 701 - 730) 101 LABORER, COMMON (GENERAL LABOR WORK)2018-12-17 34.11 19.64 53.75 102 LABORER, SKILLED (ASSISTING SKILLED CRAFT JOURNEYMAN) 2018-12-17 34.11 19.64 53.75 1 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 103 LABORER, LANDSCAPING (GARDENER, SOD LAYER AND NURSERY OPERATOR) 2018-12-17 23.02 15.99 39.01 2019-05-01 24.00 16.96 40.96 104 FLAG PERSON 2018-12-17 34.11 19.64 53.75 105 WATCH PERSON 2018-12-17 30.48 19.29 49.77 106 BLASTER 2018-12-17 34.26 18.54 52.80 107 PIPELAYER (WATER, SEWER AND GAS)2018-12-17 34.15 19.64 53.79 2019-05-01 35.30 20.44 55.74 108*TUNNEL MINER 2018-12-17 30.70 17.44 48.14 109 UNDERGROUND AND OPEN DITCH LABORER (EIGHT FEET BELOW STARTING GRADE LEVEL) 2018-12-17 32.35 19.64 51.99 2019-05-01 33.50 20.44 53.94 110 SURVEY FIELD TECHNICIAN (OPERATE TOTAL STATION, GPS RECEIVER, LEVEL, ROD OR RANGE POLES, STEEL TAPE MEASUREMENT; MARK AND DRIVE STAKES; HAND OR POWER DIGGING FOR AND IDENTIFICATION OF MARKERS OR MONUMENTS; PERFORM AND CHECK CALCULATIONS; REVIEW AND UNDERSTAND CONSTRUCTION PLANS AND LAND SURVEY MATERIALS). THIS CLASSIFICATION DOES NOT APPLY TO THE WORK PERFORMED ON A PREVAILING WAGE PROJECT BY A LAND SURVEYOR WHO IS LICENSED PURSUANT TO MINNESOTA STATUTES, SECTIONS 326.02 TO 326.15. 2018-12-17 34.11 19.64 53.75 111 TRAFFIC CONTROL PERSON (TEMPORARY SIGNAGE)2018-12-17 33.26 18.54 51.80 SPECIAL EQUIPMENT (201 - 204) 201*ARTICULATED HAULER 2018-12-17 38.13 20.30 58.43 202*BOOM TRUCK 2018-12-17 19.00 0.00 19.00 2 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 203 LANDSCAPING EQUIPMENT, INCLUDES HYDRO SEEDER OR MULCHER, SOD ROLLER, FARM TRACTOR WITH ATTACHMENT SPECIFICALLY SEEDING, SODDING, OR PLANT, AND TWO-FRAMED FORKLIFT (EXCLUDING FRONT, POSIT-TRACK, AND SKID STEER LOADERS), NO EARTHWORK OR GRADING FOR ELEVATIONS 2018-12-17 23.02 15.99 39.01 2019-05-01 24.00 16.96 40.96 204*OFF-ROAD TRUCK 2018-12-17 37.83 18.65 56.48 205 PAVEMENT MARKING OR MARKING REMOVAL EQUIPMENT (ONE OR TWO PERSON OPERATORS); SELF-PROPELLED TRUCK OR TRAILER MOUNTED UNITS. 2018-12-17 37.05 19.39 56.44 HIGHWAY/HEAVY POWER EQUIPMENT OPERATOR GROUP 2 *2018-12-17 35.54 19.70 55.24 306 GRADER OR MOTOR PATROL 308 TUGBOAT 100 H.P. AND OVER WHEN LICENSE REQUIRED (HIGHWAY AND HEAVY ONLY) GROUP 3 *2018-12-17 36.34 20.30 56.64 2019-05-01 38.09 20.50 58.59 309 ASPHALT BITUMINOUS STABILIZER PLANT 310 CABLEWAY 312 DERRICK (GUY OR STIFFLEG)(POWER)(SKIDS OR STATIONARY) (HIGHWAY AND HEAVY ONLY) 314 DREDGE OR ENGINEERS, DREDGE (POWER) AND ENGINEER 316 LOCOMOTIVE CRANE OPERATOR 320 TANDEM SCRAPER 322 TUGBOAT 100 H.P AND OVER (HIGHWAY AND HEAVY ONLY) GROUP 4 2018-12-17 36.04 20.30 56.34 2019-05-01 37.79 20.50 58.29 323 AIR TRACK ROCK DRILL 324 AUTOMATIC ROAD MACHINE (CMI OR SIMILAR) (HIGHWAY AND HEAVY ONLY) 325 BACKFILLER OPERATOR 3 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 327 BITUMINOUS ROLLERS, RUBBER TIRED OR STEEL DRUMMED (EIGHT TONS AND OVER) 328 BITUMINOUS SPREADER AND FINISHING MACHINES (POWER), INCLUDING PAVERS, MACRO SURFACING AND MICRO SURFACING, OR SIMILAR TYPES (OPERATOR AND SCREED PERSON) 329 BROKK OR R.T.C. REMOTE CONTROL OR SIMILAR TYPE WITH ALL ATTACHMENTS 330 CAT CHALLENGER TRACTORS OR SIMILAR TYPES PULLING ROCK WAGONS, BULLDOZERS AND SCRAPERS 331 CHIP HARVESTER AND TREE CUTTER 332 CONCRETE DISTRIBUTOR AND SPREADER FINISHING MACHINE, LONGITUDINAL FLOAT, JOINT MACHINE, AND SPRAY MACHINE 334 CONCRETE MOBIL (HIGHWAY AND HEAVY ONLY) 335 CRUSHING PLANT (GRAVEL AND STONE) OR GRAVEL WASHING, CRUSHING AND SCREENING PLANT 336 CURB MACHINE 337 DIRECTIONAL BORING MACHINE 338 DOPE MACHINE (PIPELINE) 340 DUAL TRACTOR 341 ELEVATING GRADER 345 GPS REMOTE OPERATING OF EQUIPMENT 347 HYDRAULIC TREE PLANTER 348 LAUNCHER PERSON (TANKER PERSON OR PILOT LICENSE) 349 LOCOMOTIVE (HIGHWAY AND HEAVY ONLY) 350 MILLING, GRINDING, PLANNING, FINE GRADE, OR TRIMMER MACHINE 352 PAVEMENT BREAKER OR TAMPING MACHINE (POWER DRIVEN) MIGHTY MITE OR SIMILAR TYPE 354 PIPELINE WRAPPING, CLEANING OR BENDING MACHINE 356 POWER ACTUATED HORIZONTAL BORING MACHINE, OVER SIX INCHES 357 PUGMILL 359 RUBBER-TIRED FARM TRACTOR WITH BACKHOE INCLUDING ATTACHMENTS (HIGHWAY AND HEAVY ONLY) 360 SCRAPER 361 SELF-PROPELLED SOIL STABILIZER 362 SLIP FORM (POWER DRIVEN) (PAVING) 363 TIE TAMPER AND BALLAST MACHINE 365 TRACTOR, WHEEL TYPE, OVER 50 H.P. WITH PTO UNRELATED TO LANDSCAPING (HIGHWAY AND HEAVY ONLY) 367 TUB GRINDER, MORBARK, OR SIMILAR TYPE GROUP 5 2018-12-17 33.15 19.72 52.87 4 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 370 BITUMINOUS ROLLER (UNDER EIGHT TONS) 371 CONCRETE SAW (MULTIPLE BLADE) (POWER OPERATED) 372 FORM TRENCH DIGGER (POWER) 375 HYDRAULIC LOG SPLITTER 376 LOADER (BARBER GREENE OR SIMILAR TYPE) 377 POST HOLE DRIVING MACHINE/POST HOLE AUGER 379 POWER ACTUATED JACK 381 SELF-PROPELLED CHIP SPREADER (FLAHERTY OR SIMILAR) 382 SHEEP FOOT COMPACTOR WITH BLADE . 200 H.P. AND OVER 383 SHOULDERING MACHINE (POWER) APSCO OR SIMILAR TYPE INCLUDING SELF-PROPELLED SAND AND CHIP SPREADER 384 STUMP CHIPPER AND TREE CHIPPER 385 TREE FARMER (MACHINE) GROUP 6 *2018-12-17 31.79 20.30 52.09 2019-05-01 33.54 20.50 54.04 387 CAT, CHALLENGER, OR SIMILAR TYPE OF TRACTORS, WHEN PULLING DISK OR ROLLER 389 DREDGE DECK HAND 391 GRAVEL SCREENING PLANT (PORTABLE NOT CRUSHING OR WASHING) 393 LEVER PERSON 395 POWER SWEEPER 396 SHEEP FOOT ROLLER AND ROLLERS ON GRAVEL COMPACTION, INCLUDING VIBRATING ROLLERS 397 TRACTOR, WHEEL TYPE, OVER 50 H.P., UNRELATED TO LANDSCAPING COMMERCIAL POWER EQUIPMENT OPERATOR GROUP 1 *2018-12-17 41.14 20.30 61.44 501 HELICOPTER PILOT (COMMERCIAL CONSTRUCTION ONLY) 502 TOWER CRANE 250 FEET AND OVER (COMMERCIAL CONSTRUCTION ONLY) 503 TRUCK CRAWLER CRANE WITH 200 FEET OF BOOM AND OVER, INCLUDING JIB (COMMERCIAL CONSTRUCTION ONLY) GROUP 2 2018-12-17 40.80 20.30 61.10 504 CONCRETE PUMP WITH 50 METERS/164 FEET OF BOOM AND OVER (COMMERCIAL CONSTRUCTION ONLY) 505 PILE DRIVING WHEN THREE DRUMS IN USE (COMMERCIAL CONSTRUCTION ONLY) 5 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 506 TOWER CRANE 200 FEET AND OVER (COMMERCIAL CONSTRUCTION ONLY) 507 TRUCK OR CRAWLER CRANE WITH 150 FEET OF BOOM UP TO AND NOT INCLUDING 200 FEET, INCLUDING JIB (COMMERCIAL CONSTRUCTION ONLY) GROUP 3 2018-12-17 39.39 20.30 59.69 508 ALL-TERRAIN VEHICLE CRANES (COMMERCIAL CONSTRUCTION ONLY) 509 CONCRETE PUMP 32-49 METERS/102-164 FEET (COMMERCIAL CONSTRUCTION ONLY) 510 DERRICK (GUY & STIFFLEG) (COMMERCIAL CONSTRUCTION ONLY) 511 STATIONARY TOWER CRANE UP TO 200 FEET 512 SELF-ERECTING TOWER CRANE 100 FEET AND OVER MEASURED FROM BOOM FOOT PIN (COMMERCIAL CONSTRUCTION ONLY) 513 TRAVELING TOWER CRANE (COMMERCIAL CONSTRUCTION ONLY) 514 TRUCK OR CRAWLER CRANE UP TO AND NOT INCLUDING 150 FEET OF BOOM, INCLUDING JIB (COMMERCIAL CONSTRUCTION ONLY) GROUP 4 *2018-12-17 39.05 20.30 59.35 515 CRAWLER BACKHOE INCLUDING ATTACHMENTS (COMMERCIAL CONSTRUCTION ONLY) 516 FIREPERSON, CHIEF BOILER LICENSE (COMMERCIAL CONSTRUCTION ONLY) 517 HOIST ENGINEER (THREE DRUMS OR MORE) (COMMERCIAL CONSTRUCTION ONLY) 518 LOCOMOTIVE (COMMERCIAL CONSTRUCTION ONLY) 519 OVERHEAD CRANE ( INSIDE BUILDING PERIMETER) (COMMERCIAL CONSTRUCTION ONLY) 520 TRACTOR . BOOM TYPE (COMMERCIAL CONSTRUCTION ONLY) GROUP 5 2018-12-17 38.13 20.30 58.43 521 AIR COMPRESSOR 450 CFM OR OVER (TWO OR MORE MACHINES) (COMMERCIAL CONSTRUCTION ONLY) 522 CONCRETE MIXER (COMMERCIAL CONSTRUCTION ONLY) 523 CONCRETE PUMP UP TO 31 METERS/101 FEET OF BOOM 524 DRILL RIGS, HEAVY ROTARY OR CHURN OR CABLE DRILL WHEN USED FOR CAISSON FOR ELEVATOR OR BUILDING CONSTRUCTION (COMMERCIAL CONSTRUCTION ONLY) 525 FORKLIFT (COMMERCIAL CONSTRUCTION ONLY) 526 FRONT END, SKID STEER 1 C YD AND OVER 527 HOIST ENGINEER ( ONE OR TWO DRUMS) (COMMERCIAL CONSTRUCTION ONLY) 528 MECHANIC-WELDER (ON POWER EQUIPMENT) (COMMERCIAL CONSTRUCTION ONLY) 529 POWER PLANT (100 KW AND OVER OR MULTIPLES EQUAL TO 100KW AND OVER) (COMMERCIAL CONSTRUCTION ONLY) 530 PUMP OPERATOR AND/OR CONVEYOR (TWO OR MORE MACHINES) (COMMERCIAL CONSTRUCTION ONLY) 6 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 531 SELF-ERECTING TOWER CRANE UNDER 100 FEET MEASURED FROM BOOM FOOT PIN (COMMERCIAL CONSTRUCTION ONLY) 532 STRADDLE CARRIER (COMMERCIAL CONSTRUCTION ONLY) 533 TRACTOR OVER D2 (COMMERCIAL CONSTRUCTION ONLY) 534 WELL POINT PUMP (COMMERCIAL CONSTRUCTION ONLY) GROUP 6 *2018-12-17 36.62 20.30 56.92 535 CONCRETE BATCH PLANT (COMMERCIAL CONSTRUCTION ONLY) 536 FIREPERSON, FIRST CLASS BOILER LICENSE (COMMERCIAL CONSTRUCTION ONLY) 537 FRONT END, SKID STEER UP TO 1 C YD 538 GUNITE MACHINE (COMMERCIAL CONSTRUCTION ONLY) 539 TRACTOR OPERATOR D2 OR SIMILAR SIZE (COMMERCIAL CONSTRUCTION ONLY) 540 TRENCHING MACHINE (SEWER, WATER, GAS) EXCLUDES WALK BEHIND TRENCHER GROUP 7 2018-12-17 35.50 20.30 55.80 541 AIR COMPRESSOR 600 CFM OR OVER (COMMERCIAL CONSTRUCTION ONLY) 542 BRAKEPERSON (COMMERCIAL CONSTRUCTION ONLY) 543 CONCRETE PUMP/PUMPCRETE OR COMPLACO TYPE (COMMERCIAL CONSTRUCTION ONLY) 544 FIREPERSON, TEMPORARY HEAT SECOND CLASS BOILER LICENSE (COMMERCIAL CONSTRUCTION ONLY) 545 OILER (POWER SHOVEL, CRANE, TRUCK CRANE, DRAGLINE, CRUSHERS AND MILLING MACHINES, OR OTHER SIMILAR POWER EQUIPMENT) (COMMERCIAL CONSTRUCTION ONLY) 546 PICK UP SWEEPER (ONE CUBIC YARD HOPPER CAPACITY) (COMMERCIAL CONSTRUCTION ONLY) 547 PUMP AND/OR CONVEYOR (COMMERCIAL CONSTRUCTION ONLY) GROUP 8 *2018-12-17 33.49 20.30 53.79 548 ELEVATOR OPERATOR (COMMERCIAL CONSTRUCTION ONLY) 549 GREASER (COMMERCIAL CONSTRUCTION ONLY) 550 MECHANICAL SPACE HEATER (TEMPORARY HEAT NO BOILER LICENSE REQUIRED) (COMMERCIAL CONSTRUCTION ONLY) TRUCK DRIVERS GROUP 1 *2018-12-17 23.65 6.76 30.41 601 MECHANIC . WELDER 602 TRACTOR TRAILER DRIVER 7 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 603 TRUCK DRIVER (HAULING MACHINERY INCLUDING OPERATION OF HAND AND POWER OPERATED WINCHES) GROUP 2 *2018-12-17 19.90 6.76 26.66 604 FOUR OR MORE AXLE UNIT, STRAIGHT BODY TRUCK GROUP 3 *2018-12-17 22.35 6.76 29.11 605 BITUMINOUS DISTRIBUTOR DRIVER 606 BITUMINOUS DISTRIBUTOR (ONE PERSON OPERATION) 607 THREE AXLE UNITS GROUP 4 2018-12-17 28.00 9.56 37.56 608 BITUMINOUS DISTRIBUTOR SPRAY OPERATOR (REAR AND OILER) 609 DUMP PERSON 610 GREASER 611 PILOT CAR DRIVER 612 RUBBER-TIRED, SELF-PROPELLED PACKER UNDER 8 TONS 613 TWO AXLE UNIT 614 SLURRY OPERATOR 615 TANK TRUCK HELPER (GAS, OIL, ROAD OIL, AND WATER) 616 TRACTOR OPERATOR, UNDER 50 H.P. SPECIAL CRAFTS 701 HEATING AND FROST INSULATORS 2018-12-17 44.60 24.40 69.00 2019-06-01 47.10 24.40 71.50 702*BOILERMAKERS 2018-12-17 37.22 27.14 64.36 2019-01-01 38.33 27.43 65.76 703 BRICKLAYERS 2018-12-17 38.76 20.87 59.63 704 CARPENTERS 2018-12-17 37.18 21.45 58.63 705 CARPET LAYERS (LINOLEUM)2018-12-17 37.84 19.19 57.03 706 CEMENT MASONS 2018-12-17 38.41 19.67 58.08 8 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 707 ELECTRICIANS 2018-12-17 42.28 29.07 71.35 2019-05-01 45.23 29.07 74.30 708 ELEVATOR CONSTRUCTORS 2018-12-17 48.36 32.65 81.01 2019-01-01 49.91 39.24 89.15 709 GLAZIERS 2018-12-17 41.19 18.54 59.73 710 LATHERS 2018-12-17 38.47 20.18 58.65 712 IRONWORKERS 2018-12-17 37.10 27.85 64.95 714*MILLWRIGHT 2018-12-17 35.13 24.98 60.11 715 PAINTERS (INCLUDING HAND BRUSHED, HAND SPRAYED, AND THE TAPING OF PAVEMENT MARKINGS) 2018-12-17 36.75 21.24 57.99 716 PILEDRIVER (INCLUDING VIBRATORY DRIVER OR EXTRACTOR FOR PILING AND SHEETING OPERATIONS) 2018-12-17 38.01 21.08 59.09 2019-05-01 39.96 21.08 61.04 717 PIPEFITTERS . STEAMFITTERS 2018-12-17 47.04 26.05 73.09 718 PLASTERERS 2018-12-17 38.96 19.45 58.41 719 PLUMBERS 2018-12-17 47.27 23.43 70.70 2019-05-01 50.02 23.43 73.45 720 ROOFER 2018-12-17 36.26 17.46 53.72 721 SHEET METAL WORKERS 2018-12-17 43.31 27.72 71.03 2019-05-01 45.91 27.72 73.63 722 SPRINKLER FITTERS 2018-12-17 43.18 25.80 68.98 9 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 723 TERRAZZO WORKERS 2018-12-17 38.91 19.40 58.31 724 TILE SETTERS 2018-12-17 33.55 24.44 57.99 725 TILE FINISHERS 2018-12-17 28.23 19.12 47.35 726 DRYWALL TAPER 2018-12-17 32.07 23.02 55.09 727 WIRING SYSTEM TECHNICIAN 2018-12-17 38.97 17.14 56.11 2019-07-01 40.17 17.14 57.31 728 WIRING SYSTEMS INSTALLER 2018-12-17 27.30 14.31 41.61 2019-07-01 28.14 14.31 42.45 729 ASBESTOS ABATEMENT WORKER 2018-12-17 31.68 18.71 50.39 2019-01-01 32.68 19.66 52.34 730 SIGN ERECTOR 2018-12-17 28.80 14.92 43.72 2019-06-01 30.45 14.92 45.37 10 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 MINNESOTA DEPARTMENT OF LABOR AND INDUSTRY PREVAILING WAGES FOR STATE FUNDED CONSTRUCTION PROJECTS THIS NOTICE MUST BE POSTED ON THE JOBSITE IN A CONSPICUOUS PLACE Construction Type: Highway and Heavy Region Number: 09 Counties within region: ANOKA-02· CARVER-10· CHISAGO-13· DAKOTA-19· HENNEPIN-27· RAMSEY-62· SCOTT-70· WASHINGTON-82· Effective: 2018-11-14 Revised: 2018-12-03 This project is covered by Minnesota prevailing wage statutes. Wage rates listed below are the minimum hourly rates to be paid on this project. All hours worked in excess of eight (8) hours per day or forty (40) hours per week shall be paid at a rate of one and one half (1 1/2) times the basic hourly rate. Violations should be reported to: Department of Transportation Office of Construction Transportation Building MS650 John Ireland Blvd St. Paul, MN 55155 (651) 366-4209 Refer questions concerning the prevailing wage rates to: Department of Labor and Industry Prevailing Wage Section 443 Lafayette Road N St Paul, MN 55155 (651) 284-5091 DLI.PrevWage@state.mn.us 1 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 LABOR CODE AND CLASS EFFECT DATE BASIC RATE FRINGE RATE TOTAL RATE LABORERS (101 - 112) (SPECIAL CRAFTS 701 - 730) 101 LABORER, COMMON (GENERAL LABOR WORK)2018-11-14 31.65 19.64 51.29 2019-05-01 32.80 20.44 53.24 102 LABORER, SKILLED (ASSISTING SKILLED CRAFT JOURNEYMAN) 2018-11-14 31.65 19.64 51.29 2019-05-01 32.80 20.44 53.24 103 LABORER, LANDSCAPING (GARDENER, SOD LAYER AND NURSERY OPERATOR) 2018-11-14 23.02 15.99 39.01 2019-05-01 24.00 16.96 40.96 104 FLAG PERSON 2018-11-14 31.65 19.64 51.29 2019-05-01 32.80 20.44 53.24 105 WATCH PERSON 2018-11-14 28.25 19.09 47.34 2019-05-01 29.40 19.89 49.29 106 BLASTER 2018-11-14 22.08 6.87 28.95 107 PIPELAYER (WATER, SEWER AND GAS)2018-11-14 34.15 19.64 53.79 2019-05-01 35.30 20.44 55.74 108 TUNNEL MINER 2018-11-14 32.35 19.64 51.99 2019-05-01 33.50 20.44 53.94 109 UNDERGROUND AND OPEN DITCH LABORER (EIGHT FEET BELOW STARTING GRADE LEVEL) 2018-11-14 32.35 19.64 51.99 2019-05-01 33.50 20.44 53.94 110 SURVEY FIELD TECHNICIAN (OPERATE TOTAL STATION, GPS RECEIVER, LEVEL, ROD OR RANGE POLES, STEEL TAPE MEASUREMENT; MARK AND DRIVE STAKES; HAND OR POWER DIGGING FOR AND 2018-11-14 31.65 19.64 51.29 2 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 IDENTIFICATION OF MARKERS OR MONUMENTS; PERFORM AND CHECK CALCULATIONS; REVIEW AND UNDERSTAND CONSTRUCTION PLANS AND LAND SURVEY MATERIALS). THIS CLASSIFICATION DOES NOT APPLY TO THE WORK PERFORMED ON A PREVAILING WAGE PROJECT BY A LAND SURVEYOR WHO IS LICENSED PURSUANT TO MINNESOTA STATUTES, SECTIONS 326.02 TO 326.15. 2019-05-01 32.80 20.44 53.24 111 TRAFFIC CONTROL PERSON (TEMPORARY SIGNAGE)2018-11-14 31.65 19.64 51.29 2019-05-01 32.80 20.44 53.24 112 QUALITY CONTROL TESTER (FIELD AND COVERED OFF-SITE FACILITIES; TESTING OF AGGREGATE, ASPHALT, AND CONCRETE MATERIALS); LIMITED TO MN DOT HIGHWAY AND HEAVY CONSTRUCTION PROJECTS WHERE THE MN DOT HAS RETAINED QUALITY ASSURANCE PROFESSIONALS TO REVIEW AND INTERPRET THE RESULTS OF QUALITY CONTROL TESTERS. SERVICES PROVIDED BY THE CONTRACTOR. 2018-11-14 16.28 4.07 20.35 SPECIAL EQUIPMENT (201 - 204) 201 ARTICULATED HAULER 2018-11-14 36.04 20.30 56.34 2019-05-01 37.79 20.50 58.29 202 BOOM TRUCK 2018-11-14 36.04 20.30 56.34 2019-05-01 37.79 20.50 58.29 203 LANDSCAPING EQUIPMENT, INCLUDES HYDRO SEEDER OR MULCHER, SOD ROLLER, FARM TRACTOR WITH ATTACHMENT SPECIFICALLY SEEDING, SODDING, OR PLANT, AND TWO-FRAMED FORKLIFT (EXCLUDING FRONT, POSIT-TRACK, AND SKID STEER LOADERS), NO EARTHWORK OR GRADING FOR ELEVATIONS 2018-11-14 23.02 15.99 39.01 2019-05-01 24.00 16.96 40.96 204 OFF-ROAD TRUCK 2018-11-14 36.04 20.30 56.34 2019-05-01 37.79 20.50 58.29 3 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 205 PAVEMENT MARKING OR MARKING REMOVAL EQUIPMENT (ONE OR TWO PERSON OPERATORS); SELF-PROPELLED TRUCK OR TRAILER MOUNTED UNITS. 2018-11-14 32.04 21.26 53.30 HIGHWAY/HEAVY POWER EQUIPMENT OPERATOR GROUP 2 2018-11-14 36.89 20.30 57.19 2019-05-01 38.64 20.50 59.14 302 HELICOPTER PILOT (HIGHWAY AND HEAVY ONLY) 303 CONCRETE PUMP (HIGHWAY AND HEAVY ONLY) 304 ALL CRANES WITH OVER 135-FOOT BOOM, EXCLUDING JIB (HIGHWAY AND HEAVY ONLY) 305 DRAGLINE, CRAWLER, HYDRAULIC BACKHOE (TRACK OR WHEEL MOUNTED) AND/OR OTHER SIMILAR EQUIPMENT WITH SHOVEL-TYPE CONTROLS THREE CUBIC YARDS AND OVER MANUFACTURER.S RATED CAPACITY INCLUDING ALL ATTACHMENTS. (HIGHWAY AND HEAVY ONLY) 306 GRADER OR MOTOR PATROL 307 PILE DRIVING (HIGHWAY AND HEAVY ONLY) 308 TUGBOAT 100 H.P. AND OVER WHEN LICENSE REQUIRED (HIGHWAY AND HEAVY ONLY) GROUP 3 2018-11-14 36.34 20.30 56.64 2019-05-01 38.09 20.50 58.59 309 ASPHALT BITUMINOUS STABILIZER PLANT 310 CABLEWAY 311 CONCRETE MIXER, STATIONARY PLANT (HIGHWAY AND HEAVY ONLY) 312 DERRICK (GUY OR STIFFLEG)(POWER)(SKIDS OR STATIONARY) (HIGHWAY AND HEAVY ONLY) 313 DRAGLINE, CRAWLER, HYDRAULIC BACKHOE (TRACK OR WHEEL MOUNTED) AND/OR SIMILAR EQUIPMENT WITH SHOVEL-TYPE CONTROLS, UP TO THREE CUBIC YARDS MANUFACTURER.S RATED CAPACITY INCLUDING ALL ATTACHMENTS (HIGHWAY AND HEAVY ONLY) 314 DREDGE OR ENGINEERS, DREDGE (POWER) AND ENGINEER 315 FRONT END LOADER, FIVE CUBIC YARDS AND OVER INCLUDING ATTACHMENTS. (HIGHWAY AND HEAVY ONLY) 316 LOCOMOTIVE CRANE OPERATOR 317 MIXER (PAVING) CONCRETE PAVING, ROAD MOLE, INCLUDING MUCKING OPERATIONS, CONWAY OR SIMILAR TYPE 318 MECHANIC . WELDER ON POWER EQUIPMENT (HIGHWAY AND HEAVY ONLY) 319 TRACTOR . BOOM TYPE (HIGHWAY AND HEAVY ONLY) 4 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 320 TANDEM SCRAPER 321 TRUCK CRANE . CRAWLER CRANE (HIGHWAY AND HEAVY ONLY) 322 TUGBOAT 100 H.P AND OVER (HIGHWAY AND HEAVY ONLY) GROUP 4 2018-11-14 36.04 20.30 56.34 2019-05-01 37.79 20.50 58.29 323 AIR TRACK ROCK DRILL 324 AUTOMATIC ROAD MACHINE (CMI OR SIMILAR) (HIGHWAY AND HEAVY ONLY) 325 BACKFILLER OPERATOR 326 CONCRETE BATCH PLANT OPERATOR (HIGHWAY AND HEAVY ONLY) 327 BITUMINOUS ROLLERS, RUBBER TIRED OR STEEL DRUMMED (EIGHT TONS AND OVER) 328 BITUMINOUS SPREADER AND FINISHING MACHINES (POWER), INCLUDING PAVERS, MACRO SURFACING AND MICRO SURFACING, OR SIMILAR TYPES (OPERATOR AND SCREED PERSON) 329 BROKK OR R.T.C. REMOTE CONTROL OR SIMILAR TYPE WITH ALL ATTACHMENTS 330 CAT CHALLENGER TRACTORS OR SIMILAR TYPES PULLING ROCK WAGONS, BULLDOZERS AND SCRAPERS 331 CHIP HARVESTER AND TREE CUTTER 332 CONCRETE DISTRIBUTOR AND SPREADER FINISHING MACHINE, LONGITUDINAL FLOAT, JOINT MACHINE, AND SPRAY MACHINE 333 CONCRETE MIXER ON JOBSITE (HIGHWAY AND HEAVY ONLY) 334 CONCRETE MOBIL (HIGHWAY AND HEAVY ONLY) 335 CRUSHING PLANT (GRAVEL AND STONE) OR GRAVEL WASHING, CRUSHING AND SCREENING PLANT 336 CURB MACHINE 337 DIRECTIONAL BORING MACHINE 338 DOPE MACHINE (PIPELINE) 339 DRILL RIGS, HEAVY ROTARY OR CHURN OR CABLE DRILL (HIGHWAY AND HEAVY ONLY) 340 DUAL TRACTOR 341 ELEVATING GRADER 342 FORK LIFT OR STRADDLE CARRIER (HIGHWAY AND HEAVY ONLY) 343 FORK LIFT OR LUMBER STACKER (HIGHWAY AND HEAVY ONLY) 344 FRONT END, SKID STEER OVER 1 TO 5 C YD 345 GPS REMOTE OPERATING OF EQUIPMENT 346 HOIST ENGINEER (POWER) (HIGHWAY AND HEAVY ONLY) 347 HYDRAULIC TREE PLANTER 348 LAUNCHER PERSON (TANKER PERSON OR PILOT LICENSE) 349 LOCOMOTIVE (HIGHWAY AND HEAVY ONLY) 5 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 350 MILLING, GRINDING, PLANNING, FINE GRADE, OR TRIMMER MACHINE 351 MULTIPLE MACHINES, SUCH AS AIR COMPRESSORS, WELDING MACHINES, GENERATORS, PUMPS (HIGHWAY AND HEAVY ONLY) 352 PAVEMENT BREAKER OR TAMPING MACHINE (POWER DRIVEN) MIGHTY MITE OR SIMILAR TYPE 353 PICKUP SWEEPER, ONE CUBIC YARD AND OVER HOPPER CAPACITY(HIGHWAY AND HEAVY ONLY) 354 PIPELINE WRAPPING, CLEANING OR BENDING MACHINE 355 POWER PLANT ENGINEER, 100 KWH AND OVER (HIGHWAY AND HEAVY ONLY) 356 POWER ACTUATED HORIZONTAL BORING MACHINE, OVER SIX INCHES 357 PUGMILL 358 PUMPCRETE (HIGHWAY AND HEAVY ONLY) 359 RUBBER-TIRED FARM TRACTOR WITH BACKHOE INCLUDING ATTACHMENTS (HIGHWAY AND HEAVY ONLY) 360 SCRAPER 361 SELF-PROPELLED SOIL STABILIZER 362 SLIP FORM (POWER DRIVEN) (PAVING) 363 TIE TAMPER AND BALLAST MACHINE 364 TRACTOR, BULLDOZER (HIGHWAY AND HEAVY ONLY) 365 TRACTOR, WHEEL TYPE, OVER 50 H.P. WITH PTO UNRELATED TO LANDSCAPING (HIGHWAY AND HEAVY ONLY) 366 TRENCHING MACHINE (SEWER, WATER, GAS) EXCLUDES WALK BEHIND TRENCHER (HIGHWAY AND HEAVY ONLY) 367 TUB GRINDER, MORBARK, OR SIMILAR TYPE 368 WELL POINT DISMANTLING OR INSTALLATION (HIGHWAY AND HEAVY ONLY) GROUP 5 2018-11-14 33.00 20.30 53.30 2019-05-01 34.75 20.50 55.25 369 AIR COMPRESSOR, 600 CFM OR OVER (HIGHWAY AND HEAVY ONLY) 370 BITUMINOUS ROLLER (UNDER EIGHT TONS) 371 CONCRETE SAW (MULTIPLE BLADE) (POWER OPERATED) 372 FORM TRENCH DIGGER (POWER) 373 FRONT END, SKID STEER UP TO 1C YD 374 GUNITE GUNALL (HIGHWAY AND HEAVY ONLY) 375 HYDRAULIC LOG SPLITTER 376 LOADER (BARBER GREENE OR SIMILAR TYPE) 377 POST HOLE DRIVING MACHINE/POST HOLE AUGER 378 POWER ACTUATED AUGER AND BORING MACHINE 6 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 379 POWER ACTUATED JACK 380 PUMP (HIGHWAY AND HEAVY ONLY) 381 SELF-PROPELLED CHIP SPREADER (FLAHERTY OR SIMILAR) 382 SHEEP FOOT COMPACTOR WITH BLADE . 200 H.P. AND OVER 383 SHOULDERING MACHINE (POWER) APSCO OR SIMILAR TYPE INCLUDING SELF-PROPELLED SAND AND CHIP SPREADER 384 STUMP CHIPPER AND TREE CHIPPER 385 TREE FARMER (MACHINE) GROUP 6 2018-11-14 31.79 20.30 52.09 2019-05-01 33.54 20.50 54.04 387 CAT, CHALLENGER, OR SIMILAR TYPE OF TRACTORS, WHEN PULLING DISK OR ROLLER 388 CONVEYOR (HIGHWAY AND HEAVY ONLY) 389 DREDGE DECK HAND 390 FIRE PERSON OR TANK CAR HEATER (HIGHWAY AND HEAVY ONLY) 391 GRAVEL SCREENING PLANT (PORTABLE NOT CRUSHING OR WASHING) 392 GREASER (TRACTOR) (HIGHWAY AND HEAVY ONLY) 393 LEVER PERSON 394 OILER (POWER SHOVEL, CRANE, TRUCK CRANE, DRAGLINE, CRUSHERS, AND MILLING MACHINES, OR OTHER SIMILAR HEAVY EQUIPMENT) (HIGHWAY AND HEAVY ONLY) 395 POWER SWEEPER 396 SHEEP FOOT ROLLER AND ROLLERS ON GRAVEL COMPACTION, INCLUDING VIBRATING ROLLERS 397 TRACTOR, WHEEL TYPE, OVER 50 H.P., UNRELATED TO LANDSCAPING TRUCK DRIVERS GROUP 1 2018-11-14 31.25 17.50 48.75 601 MECHANIC . WELDER 602 TRACTOR TRAILER DRIVER 603 TRUCK DRIVER (HAULING MACHINERY INCLUDING OPERATION OF HAND AND POWER OPERATED WINCHES) GROUP 2 2018-11-14 30.70 17.50 48.20 604 FOUR OR MORE AXLE UNIT, STRAIGHT BODY TRUCK GROUP 3 2018-11-14 30.60 17.50 48.10 7 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 605 BITUMINOUS DISTRIBUTOR DRIVER 606 BITUMINOUS DISTRIBUTOR (ONE PERSON OPERATION) 607 THREE AXLE UNITS GROUP 4 2018-11-14 30.35 17.50 47.85 608 BITUMINOUS DISTRIBUTOR SPRAY OPERATOR (REAR AND OILER) 609 DUMP PERSON 610 GREASER 611 PILOT CAR DRIVER 612 RUBBER-TIRED, SELF-PROPELLED PACKER UNDER 8 TONS 613 TWO AXLE UNIT 614 SLURRY OPERATOR 615 TANK TRUCK HELPER (GAS, OIL, ROAD OIL, AND WATER) 616 TRACTOR OPERATOR, UNDER 50 H.P. SPECIAL CRAFTS 701 HEATING AND FROST INSULATORS 2018-11-14 43.90 23.05 66.95 702 BOILERMAKERS 2018-11-14 37.22 27.14 64.36 2019-01-01 38.33 27.43 65.76 703 BRICKLAYERS 2018-11-14 36.05 19.68 55.73 704 CARPENTERS 2018-11-14 38.01 21.08 59.09 2019-05-01 39.96 21.08 61.04 705 CARPET LAYERS (LINOLEUM)FOR RATE CALL 651-284-5091 OR EMAIL DLI.PREVWAGE@STATE.MN.US 706 CEMENT MASONS 2018-11-14 38.55 20.07 58.62 707 ELECTRICIANS 2018-11-14 42.28 29.07 71.35 2019-05-01 45.23 29.07 74.30 711 GROUND PERSON 2018-11-14 31.48 15.66 47.14 8 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 2019-04-01 32.42 16.23 48.65 712 IRONWORKERS 2018-11-14 37.10 27.85 64.95 713 LINEMAN 2018-11-14 44.97 19.44 64.41 2019-04-01 46.32 20.12 66.44 714 MILLWRIGHT 2018-11-14 35.13 24.98 60.11 715 PAINTERS (INCLUDING HAND BRUSHED, HAND SPRAYED, AND THE TAPING OF PAVEMENT MARKINGS) 2018-11-14 38.25 21.24 59.49 716 PILEDRIVER (INCLUDING VIBRATORY DRIVER OR EXTRACTOR FOR PILING AND SHEETING OPERATIONS) 2018-11-14 38.01 21.08 59.09 2019-05-01 39.96 21.08 61.04 717 PIPEFITTERS . STEAMFITTERS 2018-11-14 47.04 26.05 73.09 719 PLUMBERS 2018-11-14 46.91 23.79 70.70 2019-05-01 49.66 23.79 73.45 721 SHEET METAL WORKERS 2018-11-14 40.88 25.10 65.98 723 TERRAZZO WORKERS FOR RATE CALL 651-284-5091 OR EMAIL DLI.PREVWAGE@STATE.MN.US 724 TILE SETTERS 2018-11-14 34.76 23.29 58.05 725 TILE FINISHERS FOR RATE CALL 651-284-5091 OR EMAIL DLI.PREVWAGE@STATE.MN.US 727 WIRING SYSTEM TECHNICIAN 2018-11-14 38.97 17.14 56.11 2019-07-01 40.17 17.14 57.31 728 WIRING SYSTEMS INSTALLER 2018-11-14 27.30 14.31 41.61 9 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 2019-07-01 28.14 14.31 42.45 729 ASBESTOS ABATEMENT WORKER 2018-11-14 31.68 18.71 50.39 2019-01-01 32.68 19.66 52.34 730 SIGN ERECTOR FOR RATE CALL 651-284-5091 OR EMAIL DLI.PREVWAGE@STATE.MN.US 10 DocuSign Envelope ID: 1862ADE5-FF3A-404D-A557-DF401744ADC8 STAFF REPORT DATE: June 21, 2022 CONSENT AGENDA ITEM: Approve Pay Request No. 9 for the Old Village Phase 5 and 6 Street, Drainage and Utility Improvements SUBMITTED BY: Chad Isakson, Project Engineer REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director Jack Griffin, City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve Pay Request No. 9 for the Old Village Phase 5 and 6 Street, Drainage and Utility Improvements? BACKGROUND: A-1 Excavating was awarded a construction contract on March 16, 2021 to complete the Old Village Phase 5 and 6 Street, Drainage and Utility Improvements. Work remains in progress with a milestone 1 completion date of October 15, 2021, milestone 2 completion date of October 14, 2022, substantial completion date of June 30, 2023 and final completion date of July 28, 2023. PROPOSAL DETAILS/ANALYSIS: A-1 Excavating has submitted Partial Pay Request No. 9 in the amount of $857,123.49. The request has been reviewed and payment is recommended in the amount requested. In accordance with the contract documents, the City has retained 5% of the total work completed. The amount retained is $161,995.06. FISCAL IMPACT: None. Partial payment is proposed in accordance with the Contract for the project. Payment remains within the authorized scope and budget. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, Pay Request No. 9 for the Old Village Phase 5 and 6 Street, Drainage and Utility Improvements. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve Pay Request No. 9 to A-1 Excavating. in the amount of $857,123.49 for the Old Village Phase 5 and 6 Street, Drainage and Utility Improvements”. ATTACHMENTS: 1. Partial Pay Estimate No. 9. PARTIAL PAY ESTIMATE NO. 9 OLD VILLAGE PH 5 & 6: STREET, DRAINAGE, & UTILITY IMPROVMENTS CITY OF LAKE ELMO, MINNESOTA PROJECT NO. 2019.116 BASE BID  QUANTITY CO #4 ADJ.UPDATED  QUANTITY UNIT PRICE BASE BID AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT 1 LS 1 1 $369,660.00 $369,660.00 0.15 $55,449.00 0.90 $332,694.00 2 ACRE 2.35 2.35 $7,750.00 $18,212.50 0.00 $0.00 3.20 $24,800.00 3 TREE 99 99 $215.00 $21,285.00 0.00 $0.00 120.00 $25,800.00 4 TREE 104 104 $135.00 $14,040.00 0.00 $0.00 92.00 $12,420.00 5 LF 534 534 $8.00 $4,272.00 0.00 $0.00 550.00 $4,400.00 6 EACH 40 40 $55.00 $2,200.00 0.00 $0.00 15.00 $825.00 7 LF 7062 7062 $2.00 $14,124.00 2,399.00 $4,798.00 5,000.00 $10,000.00 8 LF 1029 1029 $4.00 $4,116.00 0.00 $0.00 365.00 $1,460.00 9 LF 610 610 $14.00 $8,540.00 0.00 $0.00 0.00 $0.00 10 LF 295 ‐26 269 $4.00 $1,180.00 0.00 $0.00 40.00 $160.00 11 LF 1144 1144 $8.00 $9,152.00 0.00 $0.00 971.00 $7,768.00 12 SY 19952 ‐136 19816 $3.00 $59,856.00 0.00 $0.00 18,500.00 $55,500.00 13 SY 2283 ‐30 2253 $3.50 $7,990.50 829.00 $2,901.50 1,000.00 $3,500.00 14 SY 571 571 $4.50 $2,569.50 215.00 $967.50 250.00 $1,125.00 15 EACH 4 4 $550.00 $2,200.00 0.00 $0.00 0.00 $0.00 16 EACH 4 4 $550.00 $2,200.00 0.00 $0.00 0.00 $0.00 17 EACH 17 17 $150.00 $2,550.00 9.00 $1,350.00 12.00 $1,800.00 18 EACH 4 4 $800.00 $3,200.00 0.00 $0.00 4.00 $3,200.00 19 EACH 2 2 $700.00 $1,400.00 0.00 $0.00 0.00 $0.00 20 EACH 14 14 $500.00 $7,000.00 3.00 $1,500.00 8.00 $4,000.00 21 LF 471 ‐12 459 $5.00 $2,355.00 0.00 $0.00 15.00 $75.00 22 LF 1465 ‐7 1458 $2.00 $2,930.00 0.00 $0.00 68.00 $136.00 23 SF 457 ‐15 442 $2.00 $914.00 0.00 $0.00 0.00 $0.00 24 SF 1150 1150 $4.00 $4,600.00 0.00 $0.00 0.00 $0.00 25 SF 495 495 $19.00 $9,405.00 0.00 $0.00 0.00 $0.00 26 LS 1 1 $10,000.00 $10,000.00 0.00 $0.00 0.00 $0.00 27 LS 1 1 $15,000.00 $15,000.00 0.00 $0.00 1.00 $15,000.00 28 LF 105 105 $33.00 $3,465.00 0.00 $0.00 130.00 $4,290.00 29 LF 120 120 $25.00 $3,000.00 0.00 $0.00 0.00 $0.00 30 SF 158 158 $28.00 $4,424.00 0.00 $0.00 0.00 $0.00 31 CY 27965 ‐80 27885 $14.00 $391,510.00 8,550.00 $119,700.00 15,000.00 $210,000.00 32 CY 1950 75 2025 $13.00 $25,350.00 0.00 $0.00 0.00 $0.00 33 CY 1000 1000 $26.00 $26,000.00 0.00 $0.00 400.00 $10,400.00 34 CY 18482 ‐90 18392 $17.00 $314,194.00 7,010.00 $119,170.00 10,000.00 $170,000.00 35 CY 980 980 $19.00 $18,620.00 0.00 $0.00 0.00 $0.00 36 SY 6929 6929 $2.00 $13,858.00 1,302.00 $2,604.00 5,000.00 $10,000.00 37 CY 5528 ‐22 5506 $28.00 $154,784.00 1,504.00 $42,112.00 2,500.00 $70,000.00 38 HOUR 102 102 $150.00 $15,300.00 0.00 $0.00 22.00 $3,300.00 39 GAL 1942 ‐58 1884 $3.40 $6,602.80 0.00 $0.00 0.00 $0.00 40 TON 60 ‐40 20 $160.00 $9,600.00 0.00 $0.00 0.00 $0.00 41 TON 510 510 $108.00 $55,080.00 0.00 $0.00 67.64 $7,305.12 42 TON 2764 ‐17 2747 $69.00 $190,716.00 0.00 $0.00 160.00 $11,040.00 43 TON 2057 ‐14 2043 $80.00 $164,560.00 0.00 $0.00 0.00 $0.00 44 TON 1189 1189 $103.00 $122,467.00 0.00 $0.00 60.70 $6,252.10 45 SF 1118 1118 $52.00 $58,136.00 0.00 $0.00 0.00 $0.00 46 TON 1530 1530 $9.00 $13,770.00 577.00 $5,193.00 677.00 $6,093.00 47 LS 1 1 $30,000.00 $30,000.00 0.00 $0.00 0.00 $0.00 48 HOUR 20 20 $300.00 $6,000.00 0.00 $0.00 10.20 $3,060.00 49 EACH 2 2 $800.00 $1,600.00 0.00 $0.00 0.00 $0.00 50 EACH 10 ‐19$1,000.00 $10,000.00 0.00 $0.00 0.00 $0.00 51 EACH 3 3 $1,100.00 $3,300.00 0.00 $0.00 0.00 $0.00 52 EACH 2 2 $1,475.00 $2,950.00 0.00 $0.00 0.00 $0.00 53 LF 15 15 $65.00 $975.00 0.00 $0.00 0.00 $0.00 54 EACH 3 3 $500.00 $1,500.00 0.00 $0.00 0.00 $0.00 55 LF 4435 ‐140 4295 $18.00 $79,830.00 0.00 $0.00 546.00 $9,828.00 56 EACH 39 ‐237 $390.00 $15,210.00 0.00 $0.00 6.00 $2,340.00 57 SY 196 196 $22.00 $4,312.00 4.00 $88.00 36.00 $792.00 58 LF 600 600 $86.00 $51,600.00 378.00 $32,508.00 600.00 $51,600.00 59 LF 5376 ‐468 4908 $83.00 $446,208.00 969.00 $80,427.00 2,500.00 $207,500.00 60 LF 1422 1422 $121.00 $172,062.00 0.00 $0.00 1,130.00 $136,730.00 61 LF 11 51 62 $63.00 $693.00 0.00 $0.00 0.00 $0.00 62 LF 3897 ‐925 2972 $58.00 $226,026.00 333.00 $19,314.00 1,289.00 $74,762.00 63 LF 666 666 $64.00 $42,624.00 48.00 $3,072.00 100.00 $6,400.00 64 LF 83 83 $82.00 $6,806.00 0.00 $0.00 34.00 $2,788.00 65 LS 1 1 $39,000.00 $39,000.00 0.00 $0.00 1.00 $39,000.00 66 LS 1 1 $71,000.00 $71,000.00 0.00 $0.00 1.00 $71,000.00 67 LS 1 1 $60,000.00 $60,000.00 0.00 $0.00 1.00 $60,000.00 68 LS 1 1 $26,000.00 $26,000.00 0.00 $0.00 1.00 $26,000.00 69 EACH 4 4 $3,500.00 $14,000.00 1.00 $3,500.00 3.00 $10,500.00 REMOVE SEWER PIPE (STORM) BORING PIT #3 REMOVE BITUMINOUS DRIVEWAY AND TRAIL REMOVE CONCRETE DRIVEWAY PAVEMENT SALVAGE AND INSTALL CASTING (SANITARY) SALVAGE AND INSTALL CASTING (STORM) REMOVE CONCRETE CURB & GUTTER REMOVE FENCE PULVERIZE BITUMINOUS PAVEMENT (P) SAWING CONCRETE PAVEMENT (FULL DEPTH) 15" RC PIPE SEWER, DES 3006 CL V BORING PIT #1 BORING PIT #2 TYPE SP 9.5 WEARING COURSE MIX (2,B) (DRIVEWAYS & TRAIL) TEMPORARY SHORING (FOR RETAINING WALL CONSTRUCTION) ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE BASE BID MOBILIZATION TYPE SP 12.5 NON‐ WEARING COURSE MIX (3,C) TYPE SP 9.5 WEARING COURSE MIX (3,C) PAVE AND REMOVE 1.5" THICK 8' WIDE BITUMINOUS WEDGE WET CAST BLOCK RETAINING WALL STREET SWEEPING 18" RC PIPE SEWER, DES 3006 CL V 24" RC PIPE SEWER, DES 3006 CL III 12" CAS SAFETY APRON AND GRATE DESIGN 3128  15" RC PIPE APRON W/TRASH GUARD 18" RC PIPE APRON W/TRASH GUARD 24" RC PIPE APRON W/TRASH GUARD 12" CAS PIPE CULVERT 4" CONCRETE HEADWALL 4" PVC PERF. EDGE DRAIN W/ BACKFILL & WRAP TYPE SP 9.5 WEARING COURSE MIX (3,C) (PATCHING) (LAKE ELMO AVENUE) BIT. MATERIAL FOR TACK COAT CLEARING & GRUBBING  CLEARING GRUBBING COMMON EXCAVATION (EV) (BIOINFILTRATION BASIN) (P) SUBGRADE CORRECTION (EV) (INCLUDES SELECT GRANULAR BORROW ‐ MOD 5%) SELECT GRANULAR BORROW ‐ MOD. 5% (CV) (P) (STREETS) SELECT GRANULAR BORROW ‐ MOD. 5% (CV) (P) (BIOINFILTRATION BASIN) GEOTEXTILE FABRIC, TYPE V AGG. BASE, CL. 6 (CV) (P) REMOVE GATE VALVE & BOX REMOVE SANITARY STRUCTURE REMOVE CATCH BASIN OR MANHOLE (STORM) REMOVE HYDRANT & GATE VALVE ASSEMBLY REMOVE SHRUB REMOVE SIGN TYPE C REMOVE WATER MAIN PIPE REMOVE SEWER PIPE (SANITARY) (3" OR 4" MAIN) SAWING BIT PAVEMENT (FULL DEPTH) REMOVE CONCRETE WALK SALVAGE AND INSTALL LANDSCAPING ROCK OR MULCH SALVAGE AND INSTALL DRIVEWAY PAVERS REMOVE EXISTING SANITARY SEWER DRAIN FIELD (32ND STREET N) REMOVE EXISTING SANITARY SEWER DRAIN FIELD & PUMP STATION (34TH STREET N) SALVAGE AND INSTALL WOOD FENCE CONNECT TO EXISTING SANITARY STRUCTURE (TYPE SPECIAL) CONNECT TO EXISTING SANITARY STRUCTURE DRAINTILE CLEANOUT 2" RIGID INSULATION 8" PVC PIPE SEWER (C900) (DR‐25) 8" PVC PIPE SEWER (SDR 26) 14" PVC PIPE SEWER (C900) (DR‐25) 12" RC PIPE SEWER, DES 3006 CL V ABANDON WATER MAIN PIPE (IN RAILROAD R/W) SALVAGE AND INSTALL BLOCK RETAINING WALL COMMON EXCAVATION (EV) (STREETS) (P) PIPE FOUNDATION ROCK EXPLORATORY DIGGING BASE BID  QUANTITY CO #4 ADJ.UPDATED  QUANTITY UNIT PRICE BASE BID AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE 70 EACH 12 12 $300.00 $3,600.00 0.00 $0.00 0.00 $0.00 71 EACH 1 1 $300.00 $300.00 0.00 $0.00 1.00 $300.00 72 EACH 42 42 $175.00 $7,350.00 7.00 $1,225.00 19.00 $3,325.00 73 EACH 15 15 $250.00 $3,750.00 2.00 $500.00 2.00 $500.00 74 EACH 6 6 $330.00 $1,980.00 6.00 $1,980.00 12.00 $3,960.00 75 EACH 9 9 $800.00 $7,200.00 0.00 $0.00 10.00 $8,000.00 76 EACH 82 82 $115.00 $9,430.00 0.00 $0.00 7.00 $805.00 77 EACH 33 ‐132$4,145.00 $136,785.00 7.00 $29,015.00 19.00 $78,755.00 78 EACH 6 6 $450.00 $2,700.00 0.00 $0.00 0.00 $0.00 79 EACH 3 3 $750.00 $2,250.00 0.00 $0.00 0.00 $0.00 80 EACH 9 9 $770.00 $6,930.00 0.00 $0.00 0.00 $0.00 81 EACH 1 1 $1,400.00 $1,400.00 0.00 $0.00 0.00 $0.00 82 EACH 5 5 $730.00 $3,650.00 0.00 $0.00 0.00 $0.00 83 EACH 5 5 $525.00 $2,625.00 0.00 $0.00 0.00 $0.00 84 EACH 12 12 $450.00 $5,400.00 0.00 $0.00 0.00 $0.00 85 LF 21.5 21.5 $300.00 $6,450.00 0.00 $0.00 0.00 $0.00 86 LF 213.53 0.13 213.66 $270.00 $57,653.10 63.00 $17,010.00 150.00 $40,500.00 87 LF 872 872 $610.00 $531,920.00 0.00 $0.00 0.00 $0.00 88 LF 97 97 $800.00 $77,600.00 0.00 $0.00 86.00 $68,800.00 89 LF 1613 1613 $48.00 $77,424.00 378.00 $18,144.00 1,110.00 $53,280.00 90 LF 445 445 $50.00 $22,250.00 55.00 $2,750.00 55.00 $2,750.00 91 LF 370 370 $50.00 $18,500.00 0.00 $0.00 0.00 $0.00 92 LF 30 30 $50.00 $1,500.00 0.00 $0.00 0.00 $0.00 93 LF 975 975 $27.00 $26,325.00 0.00 $0.00 0.00 $0.00 94 LF 8280 8280 $2.00 $16,560.00 0.00 $0.00 0.00 $0.00 95 LS 1 1 $2,500.00 $2,500.00 1.00 $2,500.00 1.00 $2,500.00 96 LS 1 1 $30,000.00 $30,000.00 0.15 $4,500.00 0.90 $27,000.00 97 EACH 82 82 $195.00 $15,990.00 11.00 $2,145.00 30.00 $5,850.00 98 EACH 1 1 $560.00 $560.00 0.00 $0.00 0.00 $0.00 99 EACH 82 ‐577 $350.00 $28,700.00 11.00 $3,850.00 30.00 $10,500.00 100 EACH 2 2 $750.00 $1,500.00 0.00 $0.00 0.00 $0.00 101 EACH 5 ‐50 $475.00 $2,375.00 0.00 $0.00 0.00 $0.00 102 EACH 6 6 $2,300.00 $13,800.00 1.00 $2,300.00 5.00 $11,500.00 103 EACH 1 ‐10$6,500.00 $6,500.00 0.00 $0.00 0.00 $0.00 104 EACH 71 71 $150.00 $10,650.00 8.00 $1,200.00 18.00 $2,700.00 105 EACH527 $300.00 $1,500.00 0.00 $0.00 0.00 $0.00 106 EACH 21 ‐219$4,750.00 $99,750.00 4.00 $19,000.00 9.00 $42,750.00 107 EACH 28 ‐226$1,600.00 $44,800.00 4.00 $6,400.00 10.00 $16,000.00 108 EACH 24 ‐123$2,150.00 $51,600.00 6.00 $12,900.00 12.00 $25,800.00 109 LF 1873 ‐189 1684 $48.00 $89,904.00 205.00 $9,840.00 840.00 $40,320.00 110 LF 50 50 $63.00 $3,150.00 0.00 $0.00 0.00 $0.00 111 LF 1002 ‐1002 0 $44.00 $44,088.00 0.00 $0.00 0.00 $0.00 112 LF 824 ‐23 801 $58.00 $47,792.00 44.00 $2,552.00 487.00 $28,246.00 113 LF 7605 7605 $64.00 $486,720.00 2,212.00 $141,568.00 4,482.00 $286,848.00 114 LB 4866 ‐500 4366 $10.00 $48,660.00 314.00 $3,140.00 1,000.00 $10,000.00 115 EACH 1 1 $3,050.00 $3,050.00 0.00 $0.00 0.00 $0.00 116 EACH325$2,230.00 $6,690.00 0.00 $0.00 1.00 $2,230.00 117 EACH718$2,600.00 $18,200.00 2.00 $5,200.00 2.00 $5,200.00 118 EACH 32 ‐11 21 $3,125.00 $100,000.00 2.00 $6,250.00 9.00 $28,125.00 119 EACH257$10,530.00 $21,060.00 0.00 $0.00 2.00 $21,060.00 120 EACH 3 3 $1,200.00 $3,600.00 0.00 $0.00 2.00 $2,400.00 121 EACH 1 1 $700.00 $700.00 1.00 $700.00 1.00 $700.00 122 EACH 1 1 $900.00 $900.00 0.00 $0.00 1.00 $900.00 123 LF 4481 ‐925 3556 $2.00 $8,962.00 0.00 $0.00 0.00 $0.00 124 CY 53 17 70 $40.00 $2,120.00 0.00 $0.00 0.00 $0.00 125 LF 7156 415 7571 $11.75 $84,083.00 0.00 $0.00 380.00 $4,465.00 126 LF 1010 1010 $14.00 $14,140.00 0.00 $0.00 0.00 $0.00 127 LF 9546 ‐479 9067 $14.50 $138,417.00 0.00 $0.00 842.00 $12,209.00 128 LF 60 ‐23 37 $31.00 $1,860.00 0.00 $0.00 0.00 $0.00 129 SY 546 546 $67.00 $36,582.00 0.00 $0.00 86.00 $5,762.00 130 SY 77 77 $97.00 $7,469.00 0.00 $0.00 4.00 $388.00 131 SF 1036 ‐200 836 $7.00 $7,252.00 0.00 $0.00 0.00 $0.00 132 SF 315 285 600 $7.50 $2,362.50 0.00 $0.00 32.00 $240.00 133 EACH 67 67 $250.00 $16,750.00 0.00 $0.00 3.00 $750.00 134 LF 220 220 $33.00 $7,260.00 0.00 $0.00 0.00 $0.00 135 LF 144 144 $73.00 $10,512.00 0.00 $0.00 0.00 $0.00 136 LS 1 1 $49,500.00 $49,500.00 0.40 $19,800.00 0.90 $44,550.00 137 EACH 2 ‐11 $300.00 $600.00 0.00 $0.00 0.00 $0.00 138 EACH 8 8 $479.00 $3,832.00 0.00 $0.00 0.00 $0.00 139 SF 269 269 $44.00 $11,836.00 0.00 $0.00 0.00 $0.00 140 LF 6648 6648 $1.75 $11,634.00 0.00 $0.00 3,100.00 $5,425.00 141 EACH 10 10 $500.00 $5,000.00 0.00 $0.00 0.00 $0.00 142 EACH 70 70 $115.00 $8,050.00 0.00 $0.00 8.00 $920.00 143 CY 710 30 740 $37.00 $26,270.00 0.00 $0.00 0.00 $0.00 144 CY 3322 3322 $34.00 $112,948.00 0.00 $0.00 329.50 $11,203.00 145 SY 13767 13767 $9.00 $123,903.00 0.00 $0.00 0.00 $0.00 CONSTRUCT OVERFLOW CONTROL STRUCTURE (W/ CASTING) CONSTRUCT DRAINAGE STRUCTURE DES. 402 (W/ CASTING) CONSTRUCT DRAINAGE STRUCTURE DES. 404 (W/ CASTING) CONSTRUCT DRAINAGE STRUCTURE DES. DES. 406 ‐ 48" (W/ CASTING) 6" CONCRETE DRIVEWAY PAVEMENT 8" CONCRETE DRIVEWAY PAVEMENT 5" CONCRETE WALK 6" CONCRETE WALK SALVAGE AND INSTALL MAILBOX ASSEMBLY RANDOM RIP‐RAP, CLASS III (INCLUDES GEOTEXTILE FABRIC, TYPE IV) 26" CONCRETE RIBBON CURB SURMOUNTABLE CONCRETE CURB & GUTTER B618 CONCRETE CURB & GUTTER CLEAN AND TELEVISE SANITARY SEWER TEMPORARY SANITARY BYPASS PUMPING OF 3" PRESSURE PIPE TEMPORARY WATER SERVICE 1" CORPORATION STOP 8"X6" PVC WYE, SDR 26 8"X4" PVC WYE, C900 14"X4" PVC WYE, C900 TRACER WIRE BOX ‐ (AT PROPERTY LINE) 8"X4" PVC WYE, SDR 26 CONNECT TO EXISTING SANITARY SEWER SERVICE (2" PRESSURE PIPE) CONNECT TO EXISTING SANITARY SEWER SERVICE (4" GRAVITY) 1.25" SANITARY CURB STOP & BOX 8" HDPE WATERMAIN (HORIZONTAL DIRECTIONAL DRILL) 6" WATER MAIN DIP ‐ CL 52 (POLY ENCASED) 8" WATER MAIN DIP ‐ CL 52 (POLY ENCASED) SANITARY SEWER MANHOLE (W/ CASTING) SANITARY CLEANOUT CASTING (R‐1914‐A) SADDLE TAP FOR 1.25" HDPE TO 8" PVC C900 SADDLE TAP FOR 1.25" HDPE TO 14" PVC C900 2" PRESSURE CLEANOUT & CURBSTOP ASSEMBLY 2"X1.25" FUSED TEE CURB STOP & BOX CASTING (R‐1914‐A) SANITARY SEWER 8" OUTSIDE DROP SANITARY SEWER MANHOLE EXTRA DEPTH 24" CASING PIPE (JACKED/AUGERED W/ 15" PVC SDR 26 CARRIER PIPE) 36" CASING PIPE (JACKED/AUGERED W/ 15" PVC SDR 26 CARRIER PIPE) 4" PVC SANITARY SERVICE PIPE ‐ SCH 40 W/ TRACER WIRE 6" PVC SANITARY SERVICE PIPE ‐ SCH 40 W/ TRACER WIRE 1.25" HDPE SERVICE PIPE W/ TRACER WIRE 2" HDPE FORCEMAIN W/ CAP 2" HDPE SANITARY FORCE MAIN (HORIZONTAL DIRECTIONAL DRILL) 2" CORPORATION STOP 1" CURB STOP & BOX 2" CURB STOP & BOX SADDLE TAP 8" HDPE W/ 1" CORPORATION STOP B624 CONCRETE CURB & GUTTER SIGN TYPE C SILT FENCE, PREASSEMBLED TEMPORARY ROCK CONSTRUCTION ENTRANCE CONNECT TO EXISTING WATER MAIN 16"X8" WET TAP W/ 8" GATE VALVE & BOX CONNECT TO EXISTING WATER SERVICE ADJUST GATE VALVE BOX HYDRANT 6" GATE VALVE & BOX 8" GATE VALVE & BOX 1" TYPE K COPPER PIPE 2" TYPE K COPPER PIPE CONSTRUCT DRAINAGE STRUCTURE DES. 405 ‐ 48" (W/ 4' SUMP, MH BAFFLE & CASTIN CONNECT TO EXISTING STORM STRUCTURE CONNECT DRAINTILE TO EXISTING STORM STRUCTURE CONNECT TO EXISTING STORM PIPE CLEAN AND TELEVISE STORM SEWER DUCTILE IRON FITTINGS STORM DRAIN INLET PROTECTION FILTER TOPSOIL BORROW (IN‐PLACE VOLUME) (P) FURNISH AND INSTALL 4' CHAIN LINK FENCE FURNISH AND INSTALL 5' CHAIN LINK FENCE (MOUNTED ON WALL) TRAFFIC CONTROL SALVAGE AND INSTALL SIGN TYPE C SIGN TYPE SPECIAL (STREET NAME SIGN) COMMON TOPSOIL BORROW (PULVERIZED) (LV) SODDING, TYPE MINERAL BASE BID  QUANTITY CO #4 ADJ.UPDATED  QUANTITY UNIT PRICE BASE BID AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE 146 LB 5288 5288 $1.00 $5,288.00 0.00 $0.00 1,000.00 $1,000.00 147 SY 15825 100 15925 $1.50 $23,737.50 0.00 $0.00 0.00 $0.00 148 LF 6675 100 6775 $3.50 $23,362.50 0.00 $0.00 2,100.00 $7,350.00 149 ACRE 1.51 1.51 $3,140.00 $4,741.40 0.00 $0.00 0.00 $0.00 150 ACRE 2.99 2.99 $4,900.00 $14,651.00 0.00 $0.00 0.00 $0.00 151 ACRE 0.38 0.02 0.40 $5,710.00 $2,169.80 0.00 $0.00 0.00 $0.00 152 LF 210 ‐60 150 $3.00 $630.00 0.00 $0.00 0.00 $0.00 153 LF 30 ‐30 0 $5.00 $150.00 0.00 $0.00 0.00 $0.00 154 LF 19 ‐19 0 $14.00 $266.00 0.00 $0.00 0.00 $0.00 155 SF 54 54 $18.00 $972.00 0.00 $0.00 0.00 $0.00 156 SF 13.29 13.29 $37.00 $491.73 0.00 $0.00 0.00 $0.00 $6,488,157.83 $809,123.00 $2,641,509.22 TOTALS ‐ BASE CONTRACT $6,488,157.83 $809,123.00 $2,641,509.22 CHANGE ORDER NO. 1 CO1‐1 LS 1 1 $5,950.56 $5,950.56 0.00 $0.00 1.00 $5,950.56 CO1‐2 SF ‐9 ‐9 $44.00 ‐$396.00 0.00 $0.00 0.00 $0.00 TOTALS ‐ CHANGE ORDER NO. 1 $5,554.56 $0.00 $5,950.56 CHANGE ORDER NO. 2 CO2‐1 CY 200.0 200.0 $19.00 $3,800.00 0.00 $0.00 87.00 $1,653.00 CO2‐2 TON 250.0 250.0 $9.00 $2,250.00 0.00 $0.00 0.00 $0.00 CO2‐3 LF 545.0 545.0 $86.00 $46,870.00 545.00 $46,870.00 545.00 $46,870.00 CO2‐4 LF ‐295.0 ‐295.0 $121.00 ‐$35,695.00 0.00 $0.00 0.00 $0.00 CO2‐5 EA 3.0 3.0 $330.00 $990.00 3.00 $990.00 3.00 $990.00 CO2‐6 EA ‐3.0 ‐3.0 $800.00 ‐$2,400.00 0.00 $0.00 0.00 $0.00 CO2‐7 EA 9.0 9.0 $750.00 $6,750.00 0.00 $0.00 0.00 $0.00 CO2‐8 EA ‐9.0 ‐9.0 $770.00 ‐$6,930.00 0.00 $0.00 0.00 $0.00 CO2‐9 LF ‐11.0 ‐11.0 $300.00 ‐$3,300.00 0.00 $0.00 0.00 $0.00 CO2‐10 LF ‐19.4 ‐19.4 $270.00 ‐$5,238.00 0.00 $0.00 0.00 $0.00 CO2‐11 LF ‐872.0 ‐872.0 $610.00 ‐$531,920.00 0.00 $0.00 0.00 $0.00 CO2‐12 LF ‐718.0 ‐718.0 $2.00 ‐$1,436.00 0.00 $0.00 0.00 $0.00 CO2‐13 LF 50.0 50.0 $14.50 $725.00 0.00 $0.00 0.00 $0.00 CO2‐14 SY 50.0 50.0 $97.00 $4,850.00 0.00 $0.00 0.00 $0.00 CO2‐15 LS 1.0 1.0 $561,415.00 $561,415.00 0.00 $0.00 0.66 $370,533.90 CO2‐16 LF 1,190.0 1,190.0 $67.00 $79,730.00 420.00 $28,140.00 420.00 $28,140.00 CO2‐17 LS 1.0 1.0 $50,441.00 $50,441.00 0.00 $0.00 1.00 $50,441.00 CO2‐18 LF 88.0 88.0 $51.00 $4,488.00 0.00 $0.00 0.00 $0.00 CO2‐19 LF 295.0 295.0 $34.00 $10,030.00 0.00 $0.00 295.00 $10,030.00 CO2‐20 EA 2.0 2.0 $3,940.00 $7,880.00 0.00 $0.00 2.00 $7,880.00 CO2‐21 LF 11.0 11.0 $875.00 $9,625.00 0.00 $0.00 11.00 $9,625.00 CO2‐22 EA 1.0 1.0 $1,025.00 $1,025.00 0.00 $0.00 1.00 $1,025.00 TOTALS ‐ CHANGE ORDER NO. 2 $203,950.00 $76,000.00 $527,187.90 CHANGE ORDER NO. 3 CO3‐1 LS 1.0 1.0 $7,729.75 $7,729.75 0.00 $0.00 1.00 $7,729.75 CO3‐2 LS 1.0 1.0 $1,782.50 $1,782.50 0.00 $0.00 1.00 $1,782.50 TOTALS ‐ CHANGE ORDER NO. 3 $9,512.25 $0.00 $9,512.25 CHANGE ORDER NO. 4 CO4‐1 EA 2.0 2.0 $1,000.00 $2,000.00 0.00 $0.00 0.00 $0.00 CO4‐2 LF 335.0 335.0 $112.00 $37,520.00 0.00 $0.00 300.00 $33,600.00 CO4‐3 EA 1.0 1.0 $14,950.00 $14,950.00 1.00 $14,950.00 1.00 $14,950.00 CO4‐4 LS 1.0 1.0 $3,125.00 $3,125.00 0.00 $0.00 1.00 $3,125.00 CO4‐5 SF 44.0 44.0 $66.00 $2,904.00 0.00 $0.00 0.00 $0.00 CO4‐6 LS 1.0 1.0 $1,904.00 $1,904.00 0.00 $0.00 1.00 $1,904.00 CO4‐7 LS 1.0 1.0 ‐$171,013.65 ‐$171,013.65 0.00 $0.00 0.00 $0.00 TOTALS ‐ CHANGE ORDER NO. 4 ‐$108,610.65 $14,950.00 $53,579.00 CHANGE ORDER NO. 5 CO5‐1 LS 1.0 1.0 $2,162.25 $2,162.25 1.00 $2,162.25 1.00 $2,162.25 TOTALS ‐ CHANGE ORDER NO. 5 $2,162.25 $2,162.25 $2,162.25 TOTALS ‐ REVISED CONTRACT $6,600,726.24 $902,235.25 $3,239,901.18 Install Water Service to 3240 Lake Elmo Ave Sign Type C PAVEMENT MESSAGE PREFORMED THERMOPLASTIC GROUND IN SEEDING (SEED MIXTURE TYPE 21‐113) SEEDING (SEED MIXTURE TYPE 25‐141) 4" DOUBLE SOLID LINE YELLOW EPOXY 24" SOLID LINE WHITE EPOXY CROSSWALK PREFORMED THERMOPLASTIC GROUND IN HYDRAULIC BONDED FIBER MATRIX EROSION CONTROL BLANKET CATEGORY 3N SEDIMENT CONTROL LOG 4" SOLID LINE WHITE EPOXY BASE BID Select Granular Borrow ‐ Mod. 5% (CV) (P) (Bioinfiltration Basin) (FILL AROUND L Pipe Foundation Rock (UNDER VALVE VAULT ‐ FILL TO SUITABLE SOILS) 8" PVC Pipe Sewer (C900) (DR‐25) 14" PVC Pipe Sewer (C900) (DR‐25) 8"X4" PVC Wye, C900 14"X4" PVC WYE, C900 SEEDING (SEED MIXTURE TYPE 33‐261) 6" C‐900 DR18 PVC FOREMAIN TEMPORARY SHORING (AT LIFT STATION) CONC. EDGE REINFORCING RESTOCK 14" PVC, C‐900 DROP MANHOLES PRODUCED/NOT USED SANITARY SEWER 14" OUTSIDE DROP MANHOLE BASE PRODUCED/NOT USED Saddle Tap for 1.25" HDPE to 8" PVC C900 Saddle Tap for 1.25" HDPE to 14" PVC C900 Sanitary Sewer 8" Outside Drop Sanitary Sewer Manhole Extra Depth 24" Casing Pipe (Jacked/Augered w/ 15" PVC SDR 26 Carrier Pipe) Clean and Televise Sanitary Sewer B618 Concrete Curb & Gutter (AT LIFT STATION) 8" Concrete Driveway Pavement *CONSTRUCT LIFT STATION Sanitary Sewer Plug ‐ 34th St / Lake Elmo Avenue 12" RC Pipe Apron w/Trash Guard 8" PVC Pipe Sewer (C900) (DR‐25) ‐ Upper 33rd Street Cut In 16" Butterfly Valve & Box (Incl 16" Sleeve) Temporary Water Service ‐ Upper 33rd St Truncated Domes Locate Water Service at 3442 Lake Elmo Ave Quantity Changes (Itemization Above) Replace Watermain on 32nd Street Remove Leaking Water Valve on 32nd Street STAFF REPORT DATE: June 21, 2022 CONSENT AGENDA ITEM: Approve Pay Request No. 2 for the Whistling Valley Street and Utility Improvements SUBMITTED BY: Mark Scholle, Project Engineer REVIEWED BY: Kristina Handt, City Administrator Marty Powers, Public Works Director Jack Griffin, City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve Pay Request No. 2 for the Whistling Valley Street and Utility Improvements? BACKGROUND: Jacon, LLC was awarded a construction contract on January 4, 2022 to complete the Whistling Valley Street and Utility Improvements. Work remains in progress with a substantial completion date of October 14, 2022 and final completion date of November 25, 2022. PROPOSAL DETAILS/ANALYSIS: Jacon, LLC has submitted Partial Pay Request No. 2 in the amount of $654,156.40. The request has been reviewed and payment is recommended in the amount requested. In accordance with the contract documents, the City has retained 5% of the total work completed. The amount retained is $44,135.70. FISCAL IMPACT: None. Partial payment is proposed in accordance with the Contract for the project. Payment remains within the authorized scope and budget. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, Pay Request No. 2 for the Whistling Valley Street and Utility Improvements. If removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve Pay Request No. 2 to Jacon, LLC in the amount of $654,156.40 for Whistling Valley Street and Utility Improvements”. ATTACHMENTS: 1. Partial Pay Estimate No. 2. PROJECT PAY FORM PARTIAL PAY ESTIMATE NO. PERIOD OF ESTIMATE TO PROJECT OWNER:CONTRACTOR: 1. Original Contract Amount 2. Net Change Order Sum 3. Revised Contract (1+2) 4. *Work Completed 5. *Stored Materials 6. Subtotal (4+5) 7. Retainage* 8. Previous Payments 9. Amount Due (6-7-8) *Detailed Breakdown Attached START DATE:ON SCHEDULE SUBSTANTIAL COMPLETION:X FINAL COMPLETION: ENGINEER'S CERTIFICATION:FOCUS Engineering, inc. DATE CONTRACTOR'S CERTIFICATION:CONTRACTOR DATE APPROVED BY OWNER:CITY OF LAKE ELMO, MINNESOTA DATE DATE BY BY YES NO The undersigned Contractor certifies that to the best of their knowledge, information and belief the work covered by this payment estimate has been completed in accordance with the contract documents, that all amounts have been paid by the contractor for work for which previous payment estimates was issued and payments received from the owner, and that current payment shown herein is now due. The undersigned certifies that the work has been reviewed and to the best of their knowledge and belief, the quantities shown in this estimate are correct and the work has been performed in accordance with the contract documents. ENGINEER BY 4/18/2022 11/25/2022 REVISED DAYS REMAINING 221 0 178 10/14/2022 ORIGINAL DAYS CONTRACT CHANGE ORDER SUMMARY PAY ESTIMATE SUMMARY 2 5/31/20225/1/2022FROM WHISTLING VALLEY UTILITY AND STREET IMPROVEMENTS PROJECT NO. 2020.123 CITY OF LAKE ELMO 3800 LAVERNE AVENUE NORTH LAKE ELMO, MN 55042 ATTN: JACK GRIFFIN, CITY ENGINEER JACON, LLC 3900 LABORE ROAD VADNAIS HEIGHTS, MN 55110 ATTN: JOHN DRESHAR CONTRACT TIME TOTALS $158,026.06 $0.00 $654,156.40 NET CHANGE $158,026.06 $44,135.705.0% $184,421.98 $0.00 $882,714.08 CO-1 3/15/2022 $141,959.85 $0.00 $2,428,632.51 CO-2 6/7/2022 $16,066.21 $882,714.08 No.Approval Date Amount $2,270,606.45 Additions Deductions $158,026.06 FOCUS Engineering, inc.PROJECT PAYMENT FORM 6/9/2022 PARTIAL PAY ESTIMATE NO. 2 WHISTLING VALLEY UTILITY AND STREET IMPROVEMENTS CITY OF LAKE ELMO, MINNESOTA PROJECT NO. 2020.123 QUANTITY UNIT PRICE AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT 1 LUMP SUM 1 $122,784.30 $122,784.30 0.50 $61,392.15 1.00 $122,784.30 2 ACRE 1 $12,012.90 $12,012.90 0.00 $0.00 0.00 $0.00 3 LIN FT 4679 $5.43 $25,406.97 1,592.00 $8,644.56 1,592.00 $8,644.56 4 SQ YD 13 $31.05 $403.65 0.00 $0.00 0.00 $0.00 5 SQ YD 30 $10.35 $310.50 0.00 $0.00 0.00 $0.00 6 SQ YD 34 $190.00 $6,460.00 0.00 $0.00 0.00 $0.00 7 LIN FT 670 $5.00 $3,350.00 636.00 $3,180.00 636.00 $3,180.00 8 SQ YD 55 $35.00 $1,925.00 0.00 $0.00 0.00 $0.00 9 SQ YD 23218 $5.00 $116,090.00 12,000.00 $60,000.00 12,000.00 $60,000.00 10 SQ YD 200 $10.35 $2,070.00 30.00 $310.50 30.00 $310.50 11 EACH 19 $45.00 $855.00 0.00 $0.00 0.00 $0.00 12 EACH 37 $341.89 $12,649.93 10.00 $3,418.90 10.00 $3,418.90 13 EACH 46 $200.00 $9,200.00 0.00 $0.00 0.00 $0.00 14 EACH 18 $150.00 $2,700.00 10.00 $1,500.00 10.00 $1,500.00 15 EACH 12 $50.00 $600.00 0.00 $0.00 0.00 $0.00 16 CU YD 10448 $0.79 $8,253.92 0.00 $0.00 0.00 $0.00 17 SQ FT 824 $7.32 $6,031.68 0.00 $0.00 0.00 $0.00 18 CU YD 4890 $31.20 $152,568.00 1,562.00 $48,734.40 1,562.00 $48,734.40 19 CU YD 3869 $20.30 $78,540.70 2,100.00 $42,630.00 2,100.00 $42,630.00 20 HOUR 40 $120.00 $4,800.00 17.00 $2,040.00 19.00 $2,280.00 21 TON 2210 $90.00 $198,900.00 0.00 $0.00 0.00 $0.00 22 TON 2945 $83.00 $244,435.00 0.00 $0.00 0.00 $0.00 23 TON 200 $156.00 $31,200.00 0.00 $0.00 0.00 $0.00 24 GAL 1628 $2.00 $3,256.00 0.00 $0.00 0.00 $0.00 25 LIN FT 1458 $14.00 $20,412.00 0.00 $0.00 0.00 $0.00 26 EACH 14 $250.00 $3,500.00 0.00 $0.00 0.00 $0.00 27 LIN FT 55 $21.00 $1,155.00 0.00 $0.00 0.00 $0.00 28 EACH 1 $420.00 $420.00 0.00 $0.00 0.00 $0.00 29 EACH 1 $12,300.00 $12,300.00 0.00 $0.00 0.00 $0.00 30 EACH 2 $1,500.00 $3,000.00 0.00 $0.00 0.00 $0.00 31 EACH 18 $675.00 $12,150.00 0.00 $0.00 0.00 $0.00 32 EACH 14 $500.00 $7,000.00 0.00 $0.00 0.00 $0.00 33 EACH 2 $4,025.00 $8,050.00 1.00 $4,025.00 1.00 $4,025.00 34 EACH 12 $7,500.00 $90,000.00 6.00 $45,000.00 6.00 $45,000.00 35 EACH 71 $770.00 $54,670.00 18.00 $13,860.00 24.00 $18,480.00 36 EACH 37 $485.00 $17,945.00 13.00 $6,305.00 13.00 $6,305.00 37 EACH 37 $550.00 $20,350.00 13.00 $7,150.00 13.00 $7,150.00 38 LIN FT 1189 $36.60 $43,517.40 522.00 $19,105.20 522.00 $19,105.20 39 EACH 11 $3,283.15 $36,114.65 9.00 $29,548.35 9.00 $29,548.35 40 LIN FT 112 $116.70 $13,070.40 43.00 $5,018.10 43.00 $5,018.10 41 LIN FT 816 $81.00 $66,096.00 253.00 $20,493.00 253.00 $20,493.00 42 LIN FT 6691 $71.25 $476,733.75 3,724.00 $265,335.00 5,297.00 $377,411.25 43 SQ YD 56 $34.00 $1,904.00 0.00 $0.00 0.00 $0.00 44 LB 3040 $6.83 $20,763.20 1,500.00 $10,245.00 1,500.00 $10,245.00 45 LIN FT 3849 $30.36 $116,855.64 557.00 $16,910.52 557.00 $16,910.52 46 LIN FT 1310 $30.80 $40,348.00 0.00 $0.00 0.00 $0.00 47 LIN FT 5284 $13.86 $73,236.24 0.00 $0.00 0.00 $0.00 48 SQ YD 13 $110.00 $1,430.00 0.00 $0.00 0.00 $0.00 49 EACH 19 $2,079.00 $39,501.00 0.00 $0.00 0.00 $0.00 50 LUMP SUM 1 $6,500.00 $6,500.00 0.00 $0.00 0.50 $3,250.00 51 SQ FT 63.31 $130.00 $8,230.30 0.00 $0.00 0.00 $0.00 52 EACH 10 $340.00 $3,400.00 0.00 $0.00 0.00 $0.00 53 LIN FT 1000 $3.00 $3,000.00 0.00 $0.00 0.00 $0.00 54 EACH 34 $220.00 $7,480.00 0.00 $0.00 15.00 $3,300.00 55 CU YD 678 $40.25 $27,289.50 0.00 $0.00 0.00 $0.00 56 SQ YD 6401 $11.67 $74,699.67 0.00 $0.00 0.00 $0.00 57 ACRE 0.5 $4,500.00 $2,250.00 0.00 $0.00 0.00 $0.00 58 SQ YD 2505 $2.60 $6,513.00 0.00 $0.00 0.00 $0.00 59 CY YD 50 $149.50 $7,475.00 0.00 $0.00 0.00 $0.00 60 EACH 2 $1,750.00 $3,500.00 0.00 $0.00 1.00 $1,750.00 61 LIN FT 12301 $3.00 $36,903.00 4,580.00 $13,740.00 7,080.00 $21,240.00 $2,412,566.30 $688,585.68 $882,714.08 ADJUST CASTING ADJUST CATCH BASIN REMOVE CASTING GEOTEXTILE FABRIC, TYPE V GEOGRID MOBILIZATION** REMOVE BITUMINOUS WALK REMOVE SIGN SALVAGE AND REINSTALL MAIL BOX ASSEMBLY** CLEARING AND GRUBBING** REMOVE CONCRETE CURB AND GUTTER REMOVE CONCRETE DRIVEWAY PAVEMENT REMOVE BITUMINOUS DRIVEWAY PAVEMENT SALVAGE AND REINSTALL DRIVEWAY PAVERS SAWING PAVEMENT (FULL DEPTH) REMOVE SEWER PIPE (STORM) REMOVE BITUMINOUS PAVEMENT (P)** ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE TYPE SP 9.5 WEARING COURSE MIX (2,B) (DRIVEWAYS & TRAIL) BITUMINOUS MATERIAL FOR TACK COAT 4" PVC SCHEDULE 40 PERF PE PIPE DRAIN W/ BACKFILL AND WRAP DRAINTILE CLEANOUT 12" HDPE STORM SEWER PIPE AGGREGATE BASE CL 6 (CV)(P)** COMMON EXCAVATION (P)** STREET SWEEPING TYPE SP 9.5 WEARING COURSE MIX (2,C) TYPE SP 12.5 WEARING COURSE MIXTURE (2,C) 12" FLARED END SECTION 6" CONCRETE HEADWALL CONCRETE FLUME FURNISH AND INSTALL CASTING ASSEMBLY R-3067-V CONNECT DRAINTILE TO EXISTING STORM STRUCTURE CONNECT TO EXISTING WATERMAIN HYDRANT AND GATE VALVE ASSEMBLY 10" HDPE TO 8" DIP TRANSITION FITTING 1.5" CURB STOP & BOX 1.5" CORPORATION STOP 1.5" TYPE K COPPER PIPE 8" GATE VALVE AND BOX 6" WATERMAIN DUCTILE IRON CL 52 8" WATERMAIN DUCTILE IRON CL 52 10" HDPE DR 11 WATERMAIN (DIRECTIONAL DRILLING) W/ 4700 LB TRACER WIRE** 4" INSULATION DUCTILE IRON FITTINGS CONCRETE CURB AND GUTTER DESIGN D412 CONCRETE CURB AND GUTTER DESIGN B618 24" CONCRETE RIBBON CURB 6" CONCRETE DRIVEWAY PAVEMENT INSTALL CONCRETE PEDESTRIAN RAMP TRAFFIC CONTROL SIGN PANELS TYPE C SIGN PANELS TYPE SPECIAL (STREET NAME SIGN) SILT FENCE PREASSEMBLED STORM DRAIN INLET PROTECTION COMMON TOPSOIL BORROW PULVERIZED (LV) SODDING TYPE MINERAL** SEEDING (SEED MIXTURE TYPE 25-141) EROSION CONTROL BLANKETS CATEGORY 3N CLASS 3 RIP-RAP WITH GEOTEXTILE FABRIC TEMPORARY ROCK CONSTRUCTION ENTRANCE SEDIMENT CONTROL LOG QUANTITY UNIT PRICE AMOUNT QUANTITY AMOUNT QUANTITY AMOUNT ITEM DESCRIPTION OF PAY ITEM UNIT CONTRACT THIS PERIOD TOTAL TO DATE NOTE: ** PREVAILING WAGE COSTS INCLUDED IN UNIT PRICE PER CHANGE ORDER NO.1 Orig. Contract Amount $2,270,606.45 CO-1 $141,959.85 TOTALS - BASE CONTRACT $2,412,566.30 $688,585.68 $882,714.08 CO2-1 LS 1 $16,066.21 $16,066.21 0.00 $0.00 0.00 $0.00 $16,066.21 $0.00 $0.00 TOTALS - REVISED CONTRACT $2,428,632.51 $688,585.68 $882,714.08 SUBTOTAL - CHANGE ORDER NO. 2 ADD TRACER WIRE FOR ALL PROJECT SERVICES AND HYDRANTS CHANGE ORDER NO. 2 See note above and Change Order-1 for detail STAFF REPORT DATE: June 21, 2022 REGULAR AGENDA ITEM: Public Hearing relating to the Tax Abatement Projects in the 2022A Bonds SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The City is authorized by Minnesota Statutes, Sections 469.1812 through 469.1815 ( The “Abatement Act”) to grant an abatement of all or a part of the tax levied by the City on real property within its boundaries (the “Abatement”) and to issue general obligation bonds to finance public improvements (the “Abatement Bonds”) The name “tax abatement” is misleading. The enabling statute, noted above, does not authorize the actual “abatement of taxes”. Instead, the City has the ability to levy a property tax (an abatement levy) that is equivalent to taxes that could be abated. The City plans to certify an abatement levy to pay the debt service on the proposed general obligation bonds to be issued to finance the Projects. The statute requires a finding that the use of tax abatement is in the public interest. The statute defines the reasons. Reasons specific to the proposed Projects include to increase or preserve tax base and to finance or provide public infrastructure. Proceeds from the 2022A Bonds (the “Bonds”) will be used to finance the City’s 2022 street and utility projects, and two abatement projects; and to pay the costs associated with the issuance of the Bonds. The “abatement projects” is inclusive of the CSAH 15/30th Street Signal Project and Phase 2 of the Ideal Avenue (CSAH 13) Project. There are no special assessments associated with these projects. The Tax Abatement enabling statute, noted above, provides authority for issuance of bonds for these types of public improvements that benefit a property. The total principal of abatement bonds cannot exceed the sum of estimated abatements for the years granted. The bonds are not subject to the debt limit and do not require an election. The City Council passes a resolution at the June 7th meeting calling for tonight’s public hearing. PROPOSAL DETAILS/ANALYSIS: After opening and closing the public hearing tonight, the City Council will consider a resolution approving a tax abatement (the “Abatement”) and the issuance of General Obligation Tax Abatement Bonds (the “Bonds”) in an amount not to exceed $1,110,000. The maximum term of the Bonds and Abatement is proposed at 10 years. The resolution is proposed to include 120 tax parcels for the Abatement area. Tammy Omdal, from Northland securities, will attend the public hearing on June 21, 2022 to review the proposed bond issue and the tax abatements. ISSUE BEFORE COUNCIL: Should the Council adopt Resolution 2022-062 Approving Property Tax Abatements? FISCAL IMPACT: The total amount of the annual taxes to be abated by the City on the parcels within the Abatement area must at a minimum be equal to the principal amount of the Bonds, collected over a 10-year term. The term for the abatement levy is anticipated to be set at years 2023 through 2032. The City plans to certify a debt service levy to pay interest on the Bonds. OPTIONS: 1) Approve Resolution No. 2022-062 Approving Property Tax Abatements 2) Do not approve Resolution No. 2022-062 Approving Property Tax Abatement s RECOMMENDATION: Motion to approve Resolution No. 2022-062: A Resolution Approving Property Tax Abatements ATTACHMENTS: • Resolution No 2022-062 LA515-108-797816.v1 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2022-062 RESOLUTION APPROVING PROPERTY TAX ABATEMENTS BE IT RESOLVED By the City Council of the City of Lake Elmo, Washington County, Minnesota (the “City”) as follows: Section 1. Recitals. (a) The City proposes to (i) undertake various public improvements, including without limitation the CSAH 15/30th Street Signal and Ideal Avenue (CSAH 13) Phase 2 project (the “Project”) with tax abatement bonds authorized by Minnesota Statutes, Sections 469.1812 through 469.1815 (the “Act”) and (ii) authorize a property tax abatement with respect to various parcels of land that benefit from such public improvements. The City proposes to use property tax abatement pursuant to the Act to finance the Project. The proposed term of the abatement will be for up to 10 years in an estimated not to exceed $1,010,000. The abatement will apply to the City’s share of the property taxes (the “Abatement”) derived from the property described by property identification numbers on the attached Exhibit A (the “Property”). (b) On the date hereof, the Council held a public hearing on the question of the Abatement, and said hearing was preceded by published notice thereof in accordance with the Abatement Law. Section 2. Findings for the Abatement. The City Council hereby makes the following findings: (a) The Council expects the benefits to the City of the Abatement to at least equal the costs to the City thereof. (b) Granting the Abatement is in the public interest because it will help finance the acquisition and construction of public facilities in the City; preserve the tax base; finance public infrastructure; benefit the Property by providing amenities and alternative transit options to those who live and work in the City thereby improving City-based employers’ ability to attract workers; and protect the general health and welfare of the community by maintaining public infrastructure and facilities. (c) The Property will not be located in a tax increment financing district. (d) In any year, the total amount of property taxes abated by the City by this and other resolutions, if any, does not exceed the greater of 10% of the net tax capacity of the City or $200,000. LA515-108-797816.v1 Section 3. Terms of Abatement. The Abatement is hereby approved. The terms of the Abatement are as follows: (a) The Abatement shall be for a up to a 10-year period and shall apply to the taxes payable in the years 2023 through 2032, inclusive. (b) The City will abate the City’s share of the property tax amount which the City receives from the Property, in an amount not to exceed $1,010,000. (c) The maximum amount of Abatement authorized under this resolution is $1,010,000. The maximum principal amount of bonds to be secured by Abatement under this resolution will not exceed the estimated sum of Abatement from the Property for the term authorized under this resolution. (d) The Abatement shall be subject to all the terms and limitations of the Abatement Law. Approved this 21st day of June, 2022 by the City Council of the City of Lake Elmo, Minnesota. ____________________________ Mayor ATTEST: ______________________________ City Clerk A-1 LA515-108-797816.v1 Exhibit A Parcel ID Numbers for the “Property” 1602921220005 1602921220017 1602921220010 0902921340004 2402921120037 1602921220006 1602921220018 0902921340018 0902921340003 2402921120038 1602921220007 1602921220032 0902921340017 0902921340002 2402921110011 1602921220008 1602921220021 0902921340016 0902921340001 2402921110012 1602921220009 1602921220022 0902921340015 2402921120023 2402921110013 1602921220011 1602921220023 0902921340011 2402921120024 2402921110014 1602921210001 1602921220024 0902921340012 2402921120025 2402921110015 1602921210002 1602921220025 0902921340013 2402921120026 2402921110016 1602921210003 1602921220026 0902921330015 2402921120027 2402921110017 1602921210004 1602921210015 0902921330016 2402921120028 2402921110018 1602921210005 1602921210016 0902921330017 2402921120029 2402921110019 1602921210007 1602921210017 0902921340005 2402921130008 2402921140006 1602921210008 1602921210018 0902921340006 2402921130009 2402921140007 1602921210006 1602921210019 0902921340007 2402921130010 2402921140008 1602921210009 1602921210020 0902921340008 2402921130011 2402921140009 1602921210010 1602921210021 0902921340009 2402921130012 2402921140010 1602921210011 1602921210022 0902921330013 2402921130013 2402921120030 1602921210012 1602921210023 0902921330012 2402921120039 2402921120031 1602921210013 1602921220027 0902921330011 2402921120040 2402921120032 1602921210014 1602921220028 0902921330010 2402921120041 2402921120033 1602921220012 1602921220029 0902921330009 2402921120042 2402921110010 1602921220013 1602921220030 0902921330014 2402921120034 2402921110009 1602921220014 1602921220031 0902921330020 2402921120035 2402921110008 1602921220015 1602921220016 0902921330008 2402921120036 2402921110007 STAFF REPORT DATE: June 21, 2022 REGULAR AGENDA ITEM: 2022A Bonding SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The City Council has included a number projects in the 2022-2026 CIP for this year with funding proposed to come from bonding. The Council has previously approved all of the projects we will be bonding for this year. Projects include Old Village 5 and 6, Water Tower 3 and watermain extension, 2022 Streets (Fields of St. Croix and Beaut Crest), Stoplight at Manning and 30th St, Ideal Ave Phase 2, and the Tapestry Sewer extension. ISSUE BEFORE COUNCIL: Should the Council authorize the issuance and sale of $13 million general obligation bonds? PROPOSAL DETAILS/ANALYSIS: Tammy Omdahl from Northland Securities will be at the meeting to go over the finance plan, which is included in your packet, and answer any questions you may have. Also included in the packet is the resolution to authorize the issuance and sale of the bonds. Bids are due the morning of July 19th and council would take final action on approving the bonds at the meeting that evening. At this time the interest rates are an estimate and won’t be known until July 19th. Lastly, included in your packet is the Municipal Advisory Service Agreement with Northland Securities Inc. The agreement sets out the services Northland will provide in the bond issuance and compensation of $42,385. The agreement is just for this bond issuance and will expire 60 days after the closing on the bonds in August. FISCAL IMPACT: The estimated levy schedule can be found on page 12 of the finance plan. The city is required to levy 105% of the general fund portion of the improvement (street) projects. We are bonding for the water tower since the sale of the city land on Ideal Ave has not yet closed. Sewer debt will increase for the Tapestry and Old Village 5 and 6 sewer projects. OPTIONS: 1) Approve Resolution No. 2022-063 2) Amend and then Approve Resolution No 2022-063 3) Do not authorize the issuance of bonds RECOMMENDATION: Motion to approve Resolution No. 2022-063: A Resolution Authorizing Issuance and Sale of $13,000,000 General Obligation Bonds, Series 2022A AND Motion to approve the Municipal Services Agreement with Northland Securities, Inc. ATTACHMENTS: • Finance Plan • Resolution No 2022-063 • Municipal Advisory Services Agreement with Northland Securities, Inc. Finance Plan City of Lake Elmo, Minnesota $13,000,000 General Obligation Improvement, Abatement and Utility Revenue Bonds, Series 2022A June 21, 2022 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered MSRB and SEC Contents Executive Summary Issue Overview Purpose Authority Structure Security and Source of Repayment Plan Rationale Issuing Process Attachment 1 – Preliminary Debt Service Schedules Attachment 2 – Estimated Levy Schedules Attachment 3 – Related Considerations Not Bank Qualified Arbitrage Compliance Continuing Disclosure Premiums Rating Attachment 4 – Calendar of Events Attachment 5 - Risk Factors Northland Securities, Inc. Page 2 Executive Summary The following is a summary of the recommended terms for the issuance of approximately $13,000,000 General Obligation Improvement, Abatement and Utility Revenue Bonds, Series 2022A (the “Bonds”). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 – Related Considerations. Purpose Proceeds from the Bonds will be used to finance the City’s 2022 street and utility projects, a water tower project, and to pay the costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge special assessments collected from benefitted properties, net revenues of the City’s water and sewer systems, an abatement levy, and ad valorem taxes. Repayment Term The Bonds will mature annually each February 1 in the years 2023 through 2038. Interest on the Bonds will be payable on February 1, 2023, and semiannually thereafter on each February 1 and August 1. Estimated Interest Rate True interest cost (TIC): 3.29% Prepayment Option Bonds maturing on and after February 1, 2031 will be subject to redemption on February 1, 2030 and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Moody’s. The City’s general obligation debt is currently rated "Aa1”by Moody’s. Tax Status The Bonds will be tax-exempt, bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Public Sale – Competitive Bids Proposals Received Tuesday, July 19, 2022 @ 10:00 A.M. Council Consideration Tuesday, July 19, 2022 @ 7:00 P.M. Northland Securities, Inc. Page 3 Issue Overview Purpose Proceeds from the Bonds will be used to: • Finance Phase 1 of the OV 5 and 6 Project and the Fields of St. Croix and Beaut Crest Project (the “Improvement Portions”); • Finance the CSAH 15/30th Street Signal Project and Phase 2 of the Ideal Avenue (CSAH 13) Project (the “Abatement Portion”); • Finance two sewer projects, which include Phase 1 of the OV 5 and 6 Project and the Tapestry Neighborhood Sanitary Sewer Extension Project (the “Sewer Portion”); and to • Finance a water tower project (the “Water Portion”). Proceeds will also be used to pay costs associated with issuing the Bonds. The Bonds have been sized based on estimates provided by City staff. The final construction costs are expected to be confirmed on July 1, 2022. The table below contains the sources and uses of funds for the bond issue. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Sections 469.1812 through 469.1815 and Chapters 429, 444, and 475. Abatement Portion Sections 469.1812 through 469.1815 does not authorize the actual “abatement of taxes.” Instead, the City will have the authority to levy a property tax (an abatement levy) that is equivalent to taxes that could be abated. At time of issuance, the City will certify abatement levies to pay the principal on the Bonds and debt service levies to pay interest (together “the tax levies”). A public hearing will be held on June 21, 2022, and following the hearing the City Council will consider adoption of a resolution approving the property tax abatements and issuance of the Abatement Portion of the Bonds. The maximum annual abatement levy to be certified for the Abatement Portion of the Bonds is estimated to be approximately $95,000, which is less than the total amount of abatement levies the City may approve pursuant to State Law. Based on the City’s 2022 net tax capacity, the City has authority to approve total maximum annual abated levies in the amount of $2,473,255 (the Improvement (OV 5 & 6) Improvement (Fields of St. Croix & Beaut Crest) Tax Abatement (Ideal Ave & CSAH 15/30th Signal) Sanitary Sewer Improvements Water Improvements Issue Summary Sources Of Funds Par Amount of Bonds $2,150,000.00 $1,965,000.00 $840,000.00 $3,415,000.00 $4,630,000.00 $13,000,000.00 Total Sources $2,150,000.00 $1,965,000.00 $840,000.00 $3,415,000.00 $4,630,000.00 $13,000,000.00 Uses Of Funds Deposit to Project Construction Fund 2,107,549.00 1,907,000.00 815,572.00 3,353,136.00 4,550,000.00 12,733,257.00 Total Underwriter's Discount (1.100%)23,650.00 21,615.00 9,240.00 37,565.00 50,930.00 143,000.00 Costs of Issuance 14,055.22 12,845.82 5,491.32 22,324.90 30,267.74 84,985.00 Deposit to Capitalized Interest (CIF) Fund -26,828.54 10,068.44 --36,896.98 Rounding Amount 4,745.78 (3,289.36)(371.76)1,974.10 (1,197.74)1,861.02 Total Uses $2,150,000.00 $1,965,000.00 $840,000.00 $3,415,000.00 $4,630,000.00 $13,000,000.00 Northland Securities, Inc. Page 4 “statutory maximum”). The City does not have any other outstanding bonds subject to the maximum abatement levy. Improvement Portions Under Chapter 429, an Improvement means any type of improvement made under authority granted by section 429.021, which includes, but is not limited to, improvements to streets and sidewalks, storm and sanitary sewer systems, and street lighting systems. Before issuing bonds under Chapter 429, the City must hold a public hearing on the Improvements and the proposed bonds, and must pass a resolution ordering the improvements by at least a 4/5 majority. The public hearings were held for the Improvement Portions and all corresponding resolutions passed with a 4/5 majority. System Revenue Portions Under Chapter 444, general obligation system revenue bonds may be issued to build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain sanitary sewer, water and storm sewer facilities, and maintain and operate the facilities inside or outside a city’s corporate limits. Structure The OV 5 and 6 portion of the Improvement Portions has been structured over 14 years, with relatively level debt service payments beginning on February 1, 2024. The Fields of St. Croix and Beaut Crest portion of the Improvement Portions has been structured over 15 years, with relatively level debt service payments beginning on February 1, 2024. The Abatement Portion has been structured over 10 years, with relatively level debt service payments beginning on February 1, 2024. The Water and Sewer Portions of the Bonds have been structured over 15 years, with relatively level debt service payments beginning on February 1, 2023. The proposed structure for the bond issue and preliminary debt service projections for each portion of the Issue are illustrated in Attachment 1 and the estimated levies are illustrated in Attachment 2. Security and Source of Repayment The Bonds will be general obligations of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: • Special Assessments. The City levied $730,092 in special assessments against benefitted properties in 2021 for the OV 5 and 6 portion of the Improvement Portions. The assessments are structured for level annual payments with interest charged at a rate of 3.25% and spread over 15 years. The assessments were levied in 2021 for first collection in 2022. The special assessments collected in 2022 will be used to make the interest payment due on February 1, 2023, for the OV 5 and 6 portion of the Improvement Portions of the Bonds. The City is expected to levy special assessments against benefited properties in the amount of $756,000 for the Fields of St. Croix and Beaut Crest portion of the Improvement Portions of the Bonds. The assessments are structured for level annual payments with interest charged at a rate that is 1.00% over the Average Coupon of the Fields of St. Croix and Beaut Crest portion of the Improvement Portions of the Bonds, rounded to the nearest 0.25% Northland Securities, Inc. Page 5 (currently estimated to be 4.25%). The assessments will be levied in 2022 for first collection in 2023. • System Revenues. Net revenues of the City’s water and sewer funds (operating funds) will be pledged for payment of the Water and Sewer Portions of the Bonds. The City will covenant to adopt water and sewer rates and charges that are sufficient to produce net revenues equal to at least 105% of the debt service requirements on the Water and Sewer Portions of the Bonds. In the event there is a deficiency in the amount of net revenues available for payment of debt service, the City may levy taxes to cover the insufficiency, but only on a temporary basis until rates are adjusted. • Abatement Levy. The City will pledge abatement levies for payment of the Abatement Portion of the Bonds. As required by statute for issuance of Tax Abatement Bonds, the annual City taxes on the parcels to be included within the abatement project area are estimated, at a minimum, to equal the annual principal over the 10-year term of the Abatement Portion of the Bonds. Properties within the abatement project area will pay the same amount (rate) for City taxes as property outside of the abatement project area. Inclusion within the abatement project area has no tax implications for these properties. There is no different impact on individual property tax statements for properties within the tax abatement project area as compared to other properties within the City as a whole. • Property Taxes. The remaining revenues needed to pay debt service on the Bonds are expected to come from property tax levies. The initial projections show a tax levy averaging approximately $139,443 for the OV 5 and 6 portion of the Improvement Portions of the Bonds, a levy averaging approximately $106,146 for the Fields of St. Croix and Beat Crest portion of the Improvement Portions of the Bonds, and a levying ranging from approximately $8,892 to $26,816 for the Abatement Portion of the Bonds is needed to produce the statutory requirement of 105% of debt service, after accounting for abatement levies, system revenues and special assessments. The levies may be adjusted annually based on actual special assessment collections and additional monies in the debt service fund. The initial tax levies will be made in 2022 for taxes payable in 2023. Given the timing of the initial revenue from the tax levy and special assessments, the structure includes capitalized interest for the Fields of St. Croix and Beatu Crest portion of the Improvement Portions of the Bonds and the Abatement Portion of the Bonds to cover the interest payment due on February 1, 2023 for those portions. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives, Northland’s knowledge of the City and our experience in working with similar cities and projects. The issuance of General Obligation Improvement, Abatement and Utility Revenue Bonds provides the best means of achieving the City’s objectives and cost-effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process Northland will receive bids to purchase the Bonds on Tuesday, July 19, 2022, at 10:00 AM. Market conditions and the marketability of the Bonds support issuance through a competitive sale. This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the date and time set to receive bids. The calendar of events for the issuing process can be found in Attachment 4. Northland Securities, Inc. Page 6 Municipal Advisor: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Kennedy & Graven, Chartered, Minneapolis, Minnesota Paying Agent: US Bank Trust Company, N.A., St. Paul, Minnesota Northland Securities, Inc. Page 7 Attachment 1 – Preliminary Debt Service Schedules Total Combined 2022A Bonds *Based on Preliminary Non-Bank Qualified “Aa1” Rates as of June 10, 2022, plus 0.25%. Date Principal Coupon Interest Total P+I Fiscal Total 08/16/2022 ----- 02/01/2023 565,000.00 1.900%170,313.23 735,313.23 735,313.23 08/01/2023 --180,428.75 180,428.75 - 02/01/2024 765,000.00 2.050%180,428.75 945,428.75 1,125,857.50 08/01/2024 --172,587.50 172,587.50 - 02/01/2025 775,000.00 2.200%172,587.50 947,587.50 1,120,175.00 08/01/2025 --164,062.50 164,062.50 - 02/01/2026 800,000.00 2.300%164,062.50 964,062.50 1,128,125.00 08/01/2026 --154,862.50 154,862.50 - 02/01/2027 820,000.00 2.400%154,862.50 974,862.50 1,129,725.00 08/01/2027 --145,022.50 145,022.50 - 02/01/2028 840,000.00 2.500%145,022.50 985,022.50 1,130,045.00 08/01/2028 --134,522.50 134,522.50 - 02/01/2029 855,000.00 2.600%134,522.50 989,522.50 1,124,045.00 08/01/2029 --123,407.50 123,407.50 - 02/01/2030 880,000.00 2.750%123,407.50 1,003,407.50 1,126,815.00 08/01/2030 --111,307.50 111,307.50 - 02/01/2031 905,000.00 2.900%111,307.50 1,016,307.50 1,127,615.00 08/01/2031 --98,185.00 98,185.00 - 02/01/2032 935,000.00 3.050%98,185.00 1,033,185.00 1,131,370.00 08/01/2032 --83,926.25 83,926.25 - 02/01/2033 955,000.00 3.150%83,926.25 1,038,926.25 1,122,852.50 08/01/2033 --68,885.00 68,885.00 - 02/01/2034 885,000.00 3.300%68,885.00 953,885.00 1,022,770.00 08/01/2034 --54,282.50 54,282.50 - 02/01/2035 920,000.00 3.450%54,282.50 974,282.50 1,028,565.00 08/01/2035 --38,412.50 38,412.50 - 02/01/2036 955,000.00 3.600%38,412.50 993,412.50 1,031,825.00 08/01/2036 --21,222.50 21,222.50 - 02/01/2037 985,000.00 3.700%21,222.50 1,006,222.50 1,027,445.00 08/01/2037 --3,000.00 3,000.00 - 02/01/2038 160,000.00 3.750%3,000.00 163,000.00 166,000.00 Total $13,000,000.00 -$3,278,543.23 $16,278,543.23 - Yield Statistics Bond Year Dollars $104,028.33 Average Life 8.002 Years Average Coupon 3.1515868% Net Interest Cost (NIC)3.2890494% True Interest Cost (TIC)3.2894633% Bond Yield for Arbitrage Purposes 3.1277998% All Inclusive Cost (AIC)3.3867756% IRS Form 8038 Net Interest Cost 3.1515868% Weighted Average Maturity 8.002 Years Optional Redemption 02/01/2030 @100.000% Northland Securities, Inc. Page 8 OV 5 & 6 Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/16/2022 ----- 02/01/2023 --28,695.10 28,695.10 28,695.10 08/01/2023 --31,303.75 31,303.75 - 02/01/2024 130,000.00 2.050%31,303.75 161,303.75 192,607.50 08/01/2024 --29,971.25 29,971.25 - 02/01/2025 130,000.00 2.200%29,971.25 159,971.25 189,942.50 08/01/2025 --28,541.25 28,541.25 - 02/01/2026 135,000.00 2.300%28,541.25 163,541.25 192,082.50 08/01/2026 --26,988.75 26,988.75 - 02/01/2027 140,000.00 2.400%26,988.75 166,988.75 193,977.50 08/01/2027 --25,308.75 25,308.75 - 02/01/2028 140,000.00 2.500%25,308.75 165,308.75 190,617.50 08/01/2028 --23,558.75 23,558.75 - 02/01/2029 145,000.00 2.600%23,558.75 168,558.75 192,117.50 08/01/2029 --21,673.75 21,673.75 - 02/01/2030 150,000.00 2.750%21,673.75 171,673.75 193,347.50 08/01/2030 --19,611.25 19,611.25 - 02/01/2031 155,000.00 2.900%19,611.25 174,611.25 194,222.50 08/01/2031 --17,363.75 17,363.75 - 02/01/2032 160,000.00 3.050%17,363.75 177,363.75 194,727.50 08/01/2032 --14,923.75 14,923.75 - 02/01/2033 160,000.00 3.150%14,923.75 174,923.75 189,847.50 08/01/2033 --12,403.75 12,403.75 - 02/01/2034 165,000.00 3.300%12,403.75 177,403.75 189,807.50 08/01/2034 --9,681.25 9,681.25 - 02/01/2035 175,000.00 3.450%9,681.25 184,681.25 194,362.50 08/01/2035 --6,662.50 6,662.50 - 02/01/2036 180,000.00 3.600%6,662.50 186,662.50 193,325.00 08/01/2036 --3,422.50 3,422.50 - 02/01/2037 185,000.00 3.700%3,422.50 188,422.50 191,845.00 Total $2,150,000.00 -$571,525.10 $2,721,525.10 - Northland Securities, Inc. Page 9 Fields of St. Croix & Beaut Crest Portion Abatement Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/16/2022 ----- 02/01/2023 --26,828.54 26,828.54 26,828.54 08/01/2023 --29,267.50 29,267.50 - 02/01/2024 110,000.00 2.050%29,267.50 139,267.50 168,535.00 08/01/2024 --28,140.00 28,140.00 - 02/01/2025 110,000.00 2.200%28,140.00 138,140.00 166,280.00 08/01/2025 --26,930.00 26,930.00 - 02/01/2026 115,000.00 2.300%26,930.00 141,930.00 168,860.00 08/01/2026 --25,607.50 25,607.50 - 02/01/2027 115,000.00 2.400%25,607.50 140,607.50 166,215.00 08/01/2027 --24,227.50 24,227.50 - 02/01/2028 120,000.00 2.500%24,227.50 144,227.50 168,455.00 08/01/2028 --22,727.50 22,727.50 - 02/01/2029 120,000.00 2.600%22,727.50 142,727.50 165,455.00 08/01/2029 --21,167.50 21,167.50 - 02/01/2030 125,000.00 2.750%21,167.50 146,167.50 167,335.00 08/01/2030 --19,448.75 19,448.75 - 02/01/2031 130,000.00 2.900%19,448.75 149,448.75 168,897.50 08/01/2031 --17,563.75 17,563.75 - 02/01/2032 135,000.00 3.050%17,563.75 152,563.75 170,127.50 08/01/2032 --15,505.00 15,505.00 - 02/01/2033 135,000.00 3.150%15,505.00 150,505.00 166,010.00 08/01/2033 --13,378.75 13,378.75 - 02/01/2034 140,000.00 3.300%13,378.75 153,378.75 166,757.50 08/01/2034 --11,068.75 11,068.75 - 02/01/2035 145,000.00 3.450%11,068.75 156,068.75 167,137.50 08/01/2035 --8,567.50 8,567.50 - 02/01/2036 150,000.00 3.600%8,567.50 158,567.50 167,135.00 08/01/2036 --5,867.50 5,867.50 - 02/01/2037 155,000.00 3.700%5,867.50 160,867.50 166,735.00 08/01/2037 --3,000.00 3,000.00 - 02/01/2038 160,000.00 3.750%3,000.00 163,000.00 166,000.00 Total $1,965,000.00 -$571,763.54 $2,536,763.54 - Date Principal Coupon Interest Total P+I Fiscal Total 08/16/2022 ----- 02/01/2023 --10,068.44 10,068.44 10,068.44 08/01/2023 --10,983.75 10,983.75 - 02/01/2024 75,000.00 2.050%10,983.75 85,983.75 96,967.50 08/01/2024 --10,215.00 10,215.00 - 02/01/2025 75,000.00 2.200%10,215.00 85,215.00 95,430.00 08/01/2025 --9,390.00 9,390.00 - 02/01/2026 80,000.00 2.300%9,390.00 89,390.00 98,780.00 08/01/2026 --8,470.00 8,470.00 - 02/01/2027 80,000.00 2.400%8,470.00 88,470.00 96,940.00 08/01/2027 --7,510.00 7,510.00 - 02/01/2028 85,000.00 2.500%7,510.00 92,510.00 100,020.00 08/01/2028 --6,447.50 6,447.50 - 02/01/2029 85,000.00 2.600%6,447.50 91,447.50 97,895.00 08/01/2029 --5,342.50 5,342.50 - 02/01/2030 85,000.00 2.750%5,342.50 90,342.50 95,685.00 08/01/2030 --4,173.75 4,173.75 - 02/01/2031 90,000.00 2.900%4,173.75 94,173.75 98,347.50 08/01/2031 --2,868.75 2,868.75 - 02/01/2032 90,000.00 3.050%2,868.75 92,868.75 95,737.50 08/01/2032 --1,496.25 1,496.25 - 02/01/2033 95,000.00 3.150%1,496.25 96,496.25 97,992.50 Total $840,000.00 -$143,863.44 $983,863.44 - Northland Securities, Inc. Page 10 Sewer Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/16/2022 ----- 02/01/2023 240,000.00 1.900%44,460.63 284,460.63 284,460.63 08/01/2023 --46,222.50 46,222.50 - 02/01/2024 190,000.00 2.050%46,222.50 236,222.50 282,445.00 08/01/2024 --44,275.00 44,275.00 - 02/01/2025 195,000.00 2.200%44,275.00 239,275.00 283,550.00 08/01/2025 --42,130.00 42,130.00 - 02/01/2026 200,000.00 2.300%42,130.00 242,130.00 284,260.00 08/01/2026 --39,830.00 39,830.00 - 02/01/2027 205,000.00 2.400%39,830.00 244,830.00 284,660.00 08/01/2027 --37,370.00 37,370.00 - 02/01/2028 210,000.00 2.500%37,370.00 247,370.00 284,740.00 08/01/2028 --34,745.00 34,745.00 - 02/01/2029 215,000.00 2.600%34,745.00 249,745.00 284,490.00 08/01/2029 --31,950.00 31,950.00 - 02/01/2030 220,000.00 2.750%31,950.00 251,950.00 283,900.00 08/01/2030 --28,925.00 28,925.00 - 02/01/2031 225,000.00 2.900%28,925.00 253,925.00 282,850.00 08/01/2031 --25,662.50 25,662.50 - 02/01/2032 235,000.00 3.050%25,662.50 260,662.50 286,325.00 08/01/2032 --22,078.75 22,078.75 - 02/01/2033 240,000.00 3.150%22,078.75 262,078.75 284,157.50 08/01/2033 --18,298.75 18,298.75 - 02/01/2034 245,000.00 3.300%18,298.75 263,298.75 281,597.50 08/01/2034 --14,256.25 14,256.25 - 02/01/2035 255,000.00 3.450%14,256.25 269,256.25 283,512.50 08/01/2035 --9,857.50 9,857.50 - 02/01/2036 265,000.00 3.600%9,857.50 274,857.50 284,715.00 08/01/2036 --5,087.50 5,087.50 - 02/01/2037 275,000.00 3.700%5,087.50 280,087.50 285,175.00 Total $3,415,000.00 -$845,838.13 $4,260,838.13 - Northland Securities, Inc. Page 11 Water Portion Date Principal Coupon Interest Total P+I Fiscal Total 08/16/2022 ----- 02/01/2023 325,000.00 1.900%60,260.52 385,260.52 385,260.52 08/01/2023 --62,651.25 62,651.25 - 02/01/2024 260,000.00 2.050%62,651.25 322,651.25 385,302.50 08/01/2024 --59,986.25 59,986.25 - 02/01/2025 265,000.00 2.200%59,986.25 324,986.25 384,972.50 08/01/2025 --57,071.25 57,071.25 - 02/01/2026 270,000.00 2.300%57,071.25 327,071.25 384,142.50 08/01/2026 --53,966.25 53,966.25 - 02/01/2027 280,000.00 2.400%53,966.25 333,966.25 387,932.50 08/01/2027 --50,606.25 50,606.25 - 02/01/2028 285,000.00 2.500%50,606.25 335,606.25 386,212.50 08/01/2028 --47,043.75 47,043.75 - 02/01/2029 290,000.00 2.600%47,043.75 337,043.75 384,087.50 08/01/2029 --43,273.75 43,273.75 - 02/01/2030 300,000.00 2.750%43,273.75 343,273.75 386,547.50 08/01/2030 --39,148.75 39,148.75 - 02/01/2031 305,000.00 2.900%39,148.75 344,148.75 383,297.50 08/01/2031 --34,726.25 34,726.25 - 02/01/2032 315,000.00 3.050%34,726.25 349,726.25 384,452.50 08/01/2032 --29,922.50 29,922.50 - 02/01/2033 325,000.00 3.150%29,922.50 354,922.50 384,845.00 08/01/2033 --24,803.75 24,803.75 - 02/01/2034 335,000.00 3.300%24,803.75 359,803.75 384,607.50 08/01/2034 --19,276.25 19,276.25 - 02/01/2035 345,000.00 3.450%19,276.25 364,276.25 383,552.50 08/01/2035 --13,325.00 13,325.00 - 02/01/2036 360,000.00 3.600%13,325.00 373,325.00 386,650.00 08/01/2036 --6,845.00 6,845.00 - 02/01/2037 370,000.00 3.700%6,845.00 376,845.00 383,690.00 Total $4,630,000.00 -$1,145,553.02 $5,775,553.02 - Northland Securities, Inc. Page 12 Attachment 2 – Estimated Levy Schedules OV 5 & 6 Portion Fields of St. Croix & Beaut Crest Portion Date Total P+I 105% Levy Less: Special Assessment Revenue*Net Levy Levy Year Collection Year 02/01/2023 28,695.10 30,129.86 62,518.96 -2021 2022 02/01/2024 192,607.50 202,237.88 62,518.96 139,718.92 2022 2023 02/01/2025 189,942.50 199,439.63 62,518.95 136,920.68 2023 2024 02/01/2026 192,082.50 201,686.63 62,518.95 139,167.68 2024 2025 02/01/2027 193,977.50 203,676.38 62,518.96 141,157.42 2025 2026 02/01/2028 190,617.50 200,148.38 62,518.96 137,629.42 2026 2027 02/01/2029 192,117.50 201,723.38 62,518.97 139,204.41 2027 2028 02/01/2030 193,347.50 203,014.88 62,518.95 140,495.93 2028 2029 02/01/2031 194,222.50 203,933.63 62,518.96 141,414.67 2029 2030 02/01/2032 194,727.50 204,463.88 62,518.95 141,944.93 2030 2031 02/01/2033 189,847.50 199,339.88 62,518.96 136,820.92 2031 2032 02/01/2034 189,807.50 199,297.88 62,518.97 136,778.91 2032 2033 02/01/2035 194,362.50 204,080.63 62,518.95 141,561.68 2033 2034 02/01/2036 193,325.00 202,991.25 62,518.96 140,472.29 2034 2035 02/01/2037 191,845.00 201,437.25 62,518.95 138,918.30 2035 2036 Total $2,721,525.10 $2,857,601.36 $937,784.36 $1,952,206.10 *Special assessment revenue is based on assessments totaling $730,092 assessed at a rate of 3.25% (per the City), spread over 15 years with equal annual payments. Date Total P+I CIF 105% Levy Less: Special Assessment Revenue*Net Levy Levy Year Collection Year 02/01/2023 26,828.54 (26,828.54)--- 02/01/2024 168,535.00 -176,961.75 69,549.86 107,411.89 2022 2023 02/01/2025 166,280.00 -174,594.00 69,549.86 105,044.14 2023 2024 02/01/2026 168,860.00 -177,303.00 69,549.86 107,753.14 2024 2025 02/01/2027 166,215.00 -174,525.75 69,549.86 104,975.89 2025 2026 02/01/2028 168,455.00 -176,877.75 69,549.86 107,327.89 2026 2027 02/01/2029 165,455.00 -173,727.75 69,549.87 104,177.88 2027 2028 02/01/2030 167,335.00 -175,701.75 69,549.85 106,151.90 2028 2029 02/01/2031 168,897.50 -177,342.38 69,549.85 107,792.53 2029 2030 02/01/2032 170,127.50 -178,633.88 69,549.87 109,084.01 2030 2031 02/01/2033 166,010.00 -174,310.50 69,549.87 104,760.63 2031 2032 02/01/2034 166,757.50 -175,095.38 69,549.87 105,545.51 2032 2033 02/01/2035 167,137.50 -175,494.38 69,549.86 105,944.52 2033 2034 02/01/2036 167,135.00 -175,491.75 69,549.86 105,941.89 2034 2035 02/01/2037 166,735.00 -175,071.75 69,549.86 105,521.89 2035 2036 02/01/2038 166,000.00 -174,300.00 69,549.86 104,750.14 2036 2037 Total $2,536,763.54 (26,828.54)$2,635,431.75 $1,043,247.92 $1,592,183.83 *Special assessment revenue is based on assessments totaling $756,000 assessed at a rate of 4.25% (1% over the average coupon, rounded to the nearest 0.25%), spread over 15 years with equal annual payments. Northland Securities, Inc. Page 13 Abatement Portion Date Total P+I CIF 105% Levy Less: Abatement Levy Net Levy Levy Year Collection Year 02/01/2023 10,068.44 (10,068.44)--- 02/01/2024 96,967.50 -101,815.88 75,000.00 26,815.88 2022 2023 02/01/2025 95,430.00 -100,201.50 75,000.00 25,201.50 2023 2024 02/01/2026 98,780.00 -103,719.00 80,000.00 23,719.00 2024 2025 02/01/2027 96,940.00 -101,787.00 80,000.00 21,787.00 2025 2026 02/01/2028 100,020.00 -105,021.00 85,000.00 20,021.00 2026 2027 02/01/2029 97,895.00 -102,789.75 85,000.00 17,789.75 2027 2028 02/01/2030 95,685.00 -100,469.25 85,000.00 15,469.25 2028 2029 02/01/2031 98,347.50 -103,264.88 90,000.00 13,264.88 2029 2030 02/01/2032 95,737.50 -100,524.38 90,000.00 10,524.38 2030 2031 02/01/2033 97,992.50 -102,892.13 95,000.00 7,892.13 2031 2032 Total $983,863.44 (10,068.44)$1,022,484.75 $840,000.00 $182,484.75 Northland Securities, Inc. Page 14 Attachment 3 – Related Considerations Not Bank Qualified The Bonds are more than $10,000,000 in tax-exempt debt. Therefore, the Bonds will not be designated as “bank qualified” obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is the “24-month exception.” Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the “Undertaking”) is contained in the Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake “full” continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report, as well as the reporting of certain “material events.” Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease agreements) must be reported within ten days of occurrence. Northland currently serves as dissemination agent for the City. We will assist with getting your annual report filed in compliance with full continuing disclosure regulations. Premiums In the current market environment, it is likely that bids received from underwriters will include premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects the bidder’s view on future market conditions, tax considerations for investors and other factors. Ultimately, the true interest cost (“TIC”) calculation will determine the lowest bid, regardless of premium. Northland Securities, Inc. Page 15 A premium bid produces additional funds that can be used in several ways: • The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. • The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. • The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff prior to the sale day to determine use of premium (if any). A consideration for use of premium is the bank qualification of the Bonds. Rating A rating will be requested from Moody’s. The City’s general obligation debt is currently rated "Aa1" by Moody’s. The rating process will include a conference call with the rating analyst from Moody’s. Northland will assist City staff in preparing for and conducting the rating calls. Northland Securities, Inc. Page 16 Attachment 4 – Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Date Action Responsible Party May 10 General Information Certificate Relating to the Issuance of the Bonds sent to the City Northland May 13 City confirms parcels to be included in the Tax Abatement area City Staff May 24 General Information Certificate Returned to Northland City Staff May 31 Resolution Calling for the Public Hearing relating to the Tax Abatement Projects sent to City Bond Counsel June 7 City adopts Resolution Calling for the Public Hearing relating to the Tax Abatement Projects City Council Action, Bond Counsel June 8 City to submit Notice of Tax Abatement Hearing to local paper no later than 10:00 am on this date to be published no later than June 11 (at least 10 days prior to Public Hearing) Preliminary Official Statement Sent to City for Sign Off and to Rating Agency (Moody’s) City Staff, Northland May 2022 June 2022 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 15 16 17 18 19 20 21 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 29 30 31 26 27 28 29 30 July 2022 August 2022 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 9 10 11 12 13 10 11 12 13 14 15 16 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 29 30 31 31 Holiday Important Date Northland Securities, Inc. Page 17 Date Action Responsible Party June 14 Resolution Authorizing the Issuance of Tax Abatement Bonds and Set Sale Resolution Sent to City for Council Packets Finance Plan Sent to the City Northland, Bond Counsel June 21 City holds Public Hearing relating to the CSAH 13/30th Street Signal and Ideal Avenue (CSAH 13) Phase 2 Abatement Projects and adopts Resolution Authorizing the Issuance of Tax Abatement Bonds (portion of Series 2022A Bonds). Set Sale Resolution for the Series 2022A Adopted and review of Finance Plan – 7:00 p.m. City Council Action, Northland, Bond Counsel Week of June 20 or June 27 Rating Conference Call Northland, City Staff, Rating Agency July 1 City confirms amounts for project costs to be financed Northland, City Staff July 8 Rating Received Rating Agency, City Staff, Northland July 12 Awarding Resolution sent to City Bond Council, Northland July 19 Bond Sale – 10:00 a.m. Awarding Resolution Adopted – 7:00 p.m. City Council Action, Northland, Bond Counsel August 23 Closing on the Bonds (2022A new money proceeds available) Northland, City Staff, Bond Counsel Northland Securities, Inc. Page 18 Attachment 5 - Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: Special assessments for the some of the financed projects have not been levied at this time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Improvement Portion of the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, has not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. Tax Abatement: The tax abatement levy needs to be calculated annually in accordance with the abatement resolution. The abatement levy must be included in the preliminary levy used for annual Truth in Taxation hearings. A tax abatement levy was authorized as a special levy (not subject to levy limits) under the most recent legislation. Levy limits are not currently enacted. The status of a tax abatement levy under future levy limitations (if any) cannot be predicted. System Revenues: The City pledges the net revenues of the water and sewer systems to the payment of principal and interest on the Water and Sewer Portions of the Bonds, respectively. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the City is required to levy property taxes or use other revenues to cover the deficiency. Property taxes can only be used on a temporary basis and may not be an ongoing source of revenue to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: • Failure to comply with covenants in bond resolution. • Failure to comply with Undertaking for continuing disclosure. • Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. LA515-108-799493.v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF LAKE ELMO, MINNESOTA HELD: June 21, 2022 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lake Elmo, Washington County, Minnesota, was duly held at the City Hall in said City on the 21st day of June, 2022, at 7:00 o’clock P.M. for the purpose in part of authorizing the competitive negotiated sale of the $13,000,000 General Obligation Improvement, Abatement and Utility Revenue Bonds, Series 2022A of said City. The following members were present: and the following were absent: Member ____________ introduced the following resolution and moved its adoption: RESOLUTION 2022-063 PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $13,000,000 GENERAL OBLIGATION IMPROVEMENT, ABATEMENT AND UTILITY REVENUE BONDS, SERIES 2022A WHEREAS, the City Council of the City of Lake Elmo, Minnesota, (the “City”) has heretofore determined that it is necessary and expedient to issue its $13,000,000 General Obligation Improvement, Abatement and Utility Revenue Bonds, Series 2022A (the “Bonds”) to finance (i) street improvement projects; (ii) certain public improvements including without limitation the CSAH 15/30th Street Signal and Ideal Avenue (CSAH 13) Phase 2 project; (iii) utility improvements, (iv) a water tower project; and (iv) costs of issuing the Bonds; and WHEREAS, the City has retained Northland Securities, Inc., in Minneapolis, Minnesota (“Northland”), as its independent municipal advisor and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Northland to solicit bids for the competitive negotiated sale of the Bonds. 2. Meeting; Bid Opening. This City Council shall meet at the time and place specified in the Notice of Sale attached hereto as Exhibit A for the purpose of considering sealed 2 LA515-108-799493.v1 bids for, and awarding the sale of, the Bonds. The Finance Director, or designee, shall open bids at the time and place specified in such Notice of Sale. 3. Notice of Sale. The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the “Notice of Sale” attached hereto as Exhibit A and hereby approved and made a part hereof. 4. Official Statement. In connection with said competitive negotiated sale, the City Administrator and other officers or employees of the City are hereby authorized to cooperate with Northland and participate in the preparation of an official statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by member _____________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: Approved this 21st day of June, 2022, by the City Council of the City of Lake Elmo, Minnesota. CITY OF LAKE ELMO, MINNESOTA _________________________________ Mayor ATTEST: ________________________________ City Clerk A-1 LA515-108-799493.v1 EXHIBIT A NOTICE OF SALE $13,000,000* GENERAL OBLIGATION IMPROVEMENT, ABATEMENT, AND UTILITY REVENUE BONDS, SERIES 2022A CITY OF LAKE ELMO, MINNESOTA (Book-Entry Only) NOTICE IS HEREBY GIVEN that these Bonds will be offered for sale according to the following terms: TIME AND PLACE: Proposals (also referred to herein as “bids”) will be opened by the City’s Finance Director, or designee, on Tuesday, July 19, 2022, at 10:00 A.M., CT, at the offices of Northland Securities, Inc. (the City’s “Municipal Advisor”), 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402. Consideration of the Proposals for award of the sale will be by the City Council at its meeting at the City Offices beginning Tuesday, July 19, 2022 at 7:00 P.M., CT. SUBMISSION OF PROPOSALS Proposals may be: a) submitted to the office of Northland Securities, Inc., b) faxed to Northland Securities, Inc. at 612-851-5918, c) emailed to PublicSale@northlandsecurities.com d) for proposals submitted prior to the sale, the final price and coupon rates may be submitted to Northland Securities, Inc. by telephone at 612-851-5900 or 612-851-4968, or e) submitted electronically. Notice is hereby given that electronic proposals will be received via PARITY™, or its successor, in the manner described below, until 10:00 A.M., CT, on Tuesday, July 19, 2022. Proposals may be submitted electronically via PARITY™ or its successor, pursuant to this Notice until 10:00 A.M., CT, but no Proposal will be received after the time for receiving Proposals specified above. To the extent any instructions or directions set forth in PARITY™, or its successor, conflict with this Notice, the terms of this Notice shall control. For further information about PARITY™, or its successor, potential bidders may contact Northland Securities, Inc. or i-Deal at 1359 Broadway, 2nd floor, New York, NY 10018, telephone 212-849-5021. Neither the City nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARITY™ or its successor. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the Proposal is submitted. * The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. A-2 LA515-108-799493.v1 BOOK-ENTRY SYSTEM The Bonds will be issued by means of a book-entry system with no physical distribution of bond certificates made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of Depository Trust Company (“DTC”), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the City through U.S. Bank Trust Company, National Association, St. Paul, Minnesota (the “Paying Agent/Registrar”), to DTC, or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The successful bidder, as a condition of delivery of the Bonds, will be required to deposit the bond certificates with DTC. The City will pay reasonable and customary charges for the services of the Paying Agent/Registrar. DATE OF ORIGINAL ISSUE OF BONDS Date of Delivery (Estimated to be August 16, 2022) AUTHORITY/PURPOSE/SECURITY The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429, 444, and 475 and Sections 469.1812-469.1815. Proceeds will be used to finance street improvement projects, a tax abatement project, utility improvements, and a water tower project within the City and to pay the costs associated with the issuance of the bonds. The Bonds are payable from tax abatement levy, special assessments against benefited property, net revenues of the City’s water and sewer utility systems, and additionally secured by ad valorem taxes on all taxable property within the City. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy ad valorem taxes in the event of any deficiency in the debt service account established for this issue. INTEREST PAYMENTS Interest is due semiannually on each February 1 and August 1, commencing February 1, 2023, to registered owners of the Bonds appearing of record in the Bond Register as of the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such interest payment date. MATURITIES Principal is due annually on February 1, inclusive, in each of the years and amounts as follows: A-3 LA515-108-799493.v1 Year Amount Year Amount Year Amount 2023 $565,000 2029 $855,000 2035 $920,000 2024 765,000 2030 880,000 2036 955,000 2025 775,000 2031 905,000 2037 985,000 2026 800,000 2032 935,000 2038 160,000 2027 820,000 2033 955,000 2028 840,000 2034 885,000 Proposals for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. INTEREST RATES All rates must be in integral multiples of 1/20th or 1/8th of 1%. The rate for any maturity may not be more than 2.00% less than the rate for any preceding maturity. All Bonds of the same maturity must bear a single uniform rate from date of issue to maturity. ESTABLISHMENT OF ISSUE PRICE (HOLD-THE-OFFERING-PRICE RULE MAY APPLY – BIDS NOT CANCELLABLE) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at closing an “issue price” or similar certificate setting forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel. All actions to be taken by the City under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf of the City by the City’s Municipal Advisor and any notice or report to be provided to the City may be provided to the City’s Municipal Advisor. The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the “competitive sale requirements”) because: (1) the City shall disseminate this Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2) all bidders shall have an equal opportunity to bid; (3) the City may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest cost), as set forth in this Notice of Sale. Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. A-4 LA515-108-799493.v1 In the event that the competitive sale requirements are not satisfied, the City shall promptly so advise the winning bidder. The City may then determine to treat the initial offering price to the public as of the award date of the Bonds as the issue price of each maturity by imposing on the winning bidder the Hold-the-Offering-Price Rule as described in the following paragraph (the “Hold-the-Offering-Price Rule”). Bids will not be subject to cancellation in the event that the City determines to apply the Hold-the-Offering-Price Rule to the Bonds. Bidders should prepare their bids on the assumption that the Bonds will be subject to the Hold-the-Offering-Price Rule in order to establish the issue price of the Bonds. By submitting a bid, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the “Initial Offering Price”), or at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the Hold-the-Offering Price Rule shall apply to any person at a price that is higher than the Initial Offering Price to the public during the period starting on the award date for the Bonds and ending on the earlier of the following: (1) the close of the fifth (5th) business day after the award date; or (2) the date on which the underwriters have sold at least 10% of a maturity of the Bonds to the public at a price that is no higher than the Initial Offering Price to the public (the “10% Test”), at which time only that particular maturity will no longer be subject to the Hold-the-Offering-Price Rule. The City acknowledges that, in making the representations set forth above, the winning bidder will rely on (i) the agreement of each underwriter to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter or dealer who is a member of the selling group is a party to a third-party distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution agreement to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule if applicable to the Bonds. By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any A-5 LA515-108-799493.v1 selling group agreement and each third-party distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such third-party distribution agreement, as applicable, (A) to comply with the Hold-the-Offering-Price Rule, if applicable if and for so long as directed by the winning bidder and as set forth in the related pricing wires, (B) to promptly notify the winning bidder of any sales of Bonds that to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer, the winning bidder shall assume that each order submitted by the underwriter, dealer or broker- dealer is a sale to the public, and (ii) any agreement among underwriters or selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter or dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement to comply with the Hold-the-Offering-Price Rule, if applicable, in each case if and for so long as directed by the winning bidder or the underwriter and as set forth in the related pricing wires. Notes: Sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale: (1) “public” means any person other than an underwriter or a related party, (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public). (3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation or another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (4) “sale date” means the date that the Bonds are awarded by the City to the winning bidder. A-6 LA515-108-799493.v1 ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. Such adjustments shall be made promptly after the sale and prior to the award of Proposals by the City and shall be at the sole discretion of the City. The successful bidder may not withdraw or modify its Proposal once submitted to the City for any reason, including post-sale adjustment. Any adjustment shall be conclusive and shall be binding upon the successful bidder. OPTIONAL REDEMPTION Bonds maturing on February 1, 2031 through 2038 are subject to redemption and prepayment at the option of the City on February 1, 2030 and any date thereafter, at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and principal amounts within each maturity to be redeemed shall be determined by the City and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder thereof to accept delivery of and pay for the Bonds in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the successful bidder. DELIVERY Delivery of the Bonds will be within thirty days after award, subject to an approving legal opinion by Kennedy & Graven, Chartered, Bond Counsel. The legal opinion will be paid by the City and delivery will be anywhere in the continental United States without cost to the successful bidder at DTC. TYPE OF PROPOSAL Proposals of not less than $12,857,000 (98.90%) and accrued interest on the principal sum of $13,000,000 must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to legality. Proposals for the Bonds should be delivered to Northland Securities, Inc. and addressed to: Kristina Handt, City Administrator 3800 Laverne Ave N.. Lake Elmo, Minnesota 55042 A-7 LA515-108-799493.v1 A good faith deposit (the “Deposit”) in the amount of $260,000 in the form of a federal wire transfer (payable to the order of the City) is only required from the apparent winning bidder, and must be received within two hours after the time stated for the receipt of Proposals. The apparent winning bidder will receive notification of the wire instructions from the Municipal Advisor promptly after the sale. If the Deposit is not received from the apparent winning bidder in the time allotted, the City may choose to reject their Proposal and then proceed to offer the Bonds to the next lowest bidder based on the terms of their original proposal, so long as said bidder wires funds for the Deposit amount within two hours of said offer. The City will retain the Deposit of the successful bidder, the amount of which will be deducted at settlement and no interest will accrue to the successful bidder. In the event the successful bidder fails to comply with the accepted Proposal, said amount will be retained by the City. No Proposal can be withdrawn after the time set for receiving Proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City’s computation of the interest rate of each Proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The City will reserve the right to: (i) waive non-substantive informalities of any Proposal or of matters relating to the receipt of Proposals and award of the Bonds, (ii) reject all Proposals without cause, and (iii) reject any Proposal which the City determines to have failed to comply with the terms herein. INFORMATION FROM SUCCESSFUL BIDDER The successful bidder will be required to provide, in a timely manner, certain information relating to the initial offering price of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. OFFICIAL STATEMENT By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide to the senior managing underwriter of the syndicate to which the Bonds are awarded, the Final Official Statement in an electronic format as prescribed by the Municipal Securities Rulemaking Board (MSRB). FULL CONTINUING DISCLOSURE UNDERTAKING The City will covenant in the resolution awarding the sale of the Bonds and in a Continuing Disclosure Undertaking to provide, or cause to be provided, annual financial information, including audited financial statements of the City, and notices of certain material events, as required by SEC Rule 15c2-12. A-8 LA515-108-799493.v1 BANK QUALIFICATION The City will not designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BOND INSURANCE AT UNDERWRITER’S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the successful bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the successful bidder of the Bonds. Any increase in the costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the successful bidder, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the successful bidder. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the successful bidder shall not constitute cause for failure or refusal by the successful bidder to accept delivery on the Bonds. The City reserves the right to reject any and all Proposals, to waive informalities and to adjourn the sale. Dated: June 21, 2022 BY ORDER OF THE CITY OF LAKE ELMO CITY COUNCIL /s/ Kristina Handt City Administrator Additional information may be obtained from: Northland Securities, Inc. 150 South 5th Street, Suite 3300 Minneapolis, Minnesota 55402 Telephone No.: 612-851-5900 A-9 LA515-108-799493.v1 EXHIBIT A (ISSUE PRICE CERTIFICATE – COMPETITIVE SALE SATISFIED) The undersigned, for and on behalf of [NAME OF PURCHASER/REPRESENTATIVE] (the [“Purchaser”] [“Representative,” on behalf of itself and other underwriters listed below (collectively, the “Underwriting Group”))], with respect to the sale and issuance of the General Obligation Improvement, Abatement, and Utility Revenue Bonds, Series 2022A (the “Bonds”), issued by the City of Lake Elmo, Minnesota (the “Issuer”), in the original aggregate principal amount of $____________, certifies as follows: 1. Reasonably Expected Initial Offering Price. (a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the [Purchaser] [Underwriting Group] are the prices listed in EXHIBIT A attached hereto (the “Expected Offering Prices”). The Expected Offering Prices are the prices of the Maturities of the Bonds used by the [Purchaser] [Underwriting Group] in formulating its bid to purchase the Bonds. Attached hereto as EXHIBIT B is a true and correct copy of the bid provided by the [Purchaser] [Underwriting Group] to purchase the Bonds. (b) The [Purchaser] [Underwriting Group] was not given the opportunity to review other bids prior to submitting its bid. (c) The bid submitted by the [Purchaser] [Underwriting Group] constituted a firm offer to purchase the Bonds. (d) Capitalized terms that are used herein that are otherwise not defined shall have the meanings assigned to such terms in Section 5 hereof. 2. Purchase Price. The [Purchaser] [Representative] acknowledges that it is purchasing the Bonds for an aggregate purchase price of $_______________ (par amount of Bonds of $__________, plus original issue premium of $_______, less original issue discount of $________, less [a Purchaser’s] [an underwriter’s] discount of $________). 3. Receipt of Bonds. The undersigned hereby acknowledges receipt of $____________ in original aggregate principal amount of the Bonds from the Issuer, fully executed and authenticated. [The [Purchaser] [Representative] has paid to [NAME OF INSURER] the sum of $______________ as a premium for an insurance policy for the Bonds.] 4. Representations. The representations set forth in this Certificate of Purchaser (the “Certificate”) are limited to factual matters only. Nothing in this Certificate represents the interpretation by the [Purchaser] [Representative] of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder. The undersigned understands that the foregoing information will be relied upon by: (i) the Issuer with respect to certain of the representations set forth in a tax certificate of the Issuer executed on the date hereof with respect to compliance with the federal A-10 LA515-108-799493.v1 income tax rules affecting the Bonds; and (ii) Kennedy & Graven, Chartered, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Information Return for Tax-Exempt Governmental Bonds, Form 8038-G (Rev. September 2018), and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. 5. Defined Terms. (a) “Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (b) “Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this Certificate means, with respect to a purchaser of the Bonds, if the Underwriter and the purchaser are subject, directly or indirectly, to (i) more than fifty percent (50%) common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another); (ii) more than fifty percent (50%) common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another); or (iii) more than fifty percent (50%) common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). (c) “Sale Date” means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ___________. (d) “Underwriter” means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). IN WITNESS WHEREOF, the undersigned officer has executed this Certificate of Purchaser as of the date and year first written above. [PURCHASER] [REPRESENTATIVE] By Name Its [Account Members:] A-11 LA515-108-799493.v1 (ISSUE PRICE CERTIFICATE – HOLD THE PRICE) The undersigned, for and on behalf of [NAME OF PURCHASER/REPRESENTATIVE] (the [“Purchaser”] [“Representative,” on behalf of itself and other underwriters listed below (collectively, the “Underwriting Group”))],, with respect to the sale and issuance of the General Obligation Improvement, Abatement, and Utility Revenue Bonds, Series 2022A (the “Bonds”), by the City of Lake Elmo, Minnesota (the “Issuer”), in the original aggregate principal amount of $____________, certifies as follows: 1. Initial Offering Price for the Bonds. (a) The [Purchaser] [Underwriting Group] offered each Maturity of the Bonds to the Public for purchase at the respective initial offering prices listed in EXHIBIT A attached hereto (the “Initial Offering Prices”). A copy of the pricing wire or equivalent communication for the Bonds is attached hereto as EXHIBIT A. Capitalized terms used herein that are otherwise not defined shall have the meanings assigned to such terms in Section 5 hereof. (b) As set forth in the Notice of Sale and the bid award, the [Purchaser has] [members of the Underwriting Group have] agreed in writing that, (i) for each Maturity of the Bonds, [it] [they] would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “Hold-the-Offering-Price Rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution agreement, to comply with the Hold-the-Offering-Price Rule. Pursuant to such agreement, no Underwriter has offered or sold any Maturity of the Bonds at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 2. Purchase Price. The [Purchaser] [Representative] acknowledges that it is purchasing the Bonds for an aggregate purchase price of $_______________ (par amount of Bonds of $__________, plus original issue premium of $_______, less original issue discount of $________, less [a Purchaser’s] [an underwriter’s] discount of $________). 3. Receipt of Bonds. The undersigned hereby acknowledges receipt of $_________ in original aggregate principal amount of the Bonds from the Issuer, fully executed and authenticated. 4. Representations. The representations set forth in this Certificate of Purchaser (the “Certificate”) are limited to factual matters only. Nothing in this Certificate represents the interpretation by the [Purchaser] [Representative] of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder. The undersigned understands that the foregoing information will be relied upon by: (i) the Issuer with respect to certain of the representations set forth in a tax certificate of the Issuer executed on the date hereof with respect to compliance with the federal income tax rules affecting the Bonds; and (ii) Kennedy & Graven, Chartered, in connection with A-12 LA515-108-799493.v1 rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Information Return for Tax-Exempt Governmental Bonds, Form 8038-G (Rev. September 2018), and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. 5. Defined Terms. (a) “Holding Period” means, with respect to each Maturity of the Bonds, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date, or (ii) the date on which the [Purchaser has] [Underwriters have] sold at least ten percent (10%) of such Maturity to the Public at prices that are no higher than the Initial Offering Price for such Maturity. (b) “Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) “Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this Certificate means, with respect to a purchaser of the Bonds, if the Underwriter and the purchaser are subject, directly or indirectly, to (i) more than fifty percent (50%) common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another); (ii) more than fifty percent (50%) common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another); or (iii) more than fifty percent (50%) common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). (d) “Sale Date” means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ___________. (e) “Underwriter” means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). IN WITNESS WHEREOF, the undersigned officer has executed this Certificate of Purchaser as of the date and year first written above. [PURCHASER] [REPRESENTATIVE] By A-13 LA515-108-799493.v1 Name Its MUNICIPAL ADVISORY SERVICE AGREEMENT BY AND BETWEEN THE CITY OF LAKE ELMO, MINNESOTA AND NORTHLAND SECURITIES, INC. This Agreement is made and entered into by and between the City of Lake Elmo, Minnesota (hereinafter "Client") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "Northland"). WITNESSETH WHEREAS, the Client desires to have Northland provide it with advice on the structure, terms, timing and other matters related to the issuance of the General Obligation Improvement, Abatement and Utility Revenue Bonds, Series 2022A (the “Debt”) serving in the role of municipal (financial) advisor, and WHEREAS, Northland is a registered municipal advisor with both the Securities and Exchange Commission (“SEC”) and the Municipal Securities Rulemaking Board (“MSRB”) (registration # 866- 00082-00), and WHEREAS, Northland will act as municipal advisor in accordance with the duties and responsibilities of Rule G-42 of the MSRB, and WHEREAS, the MSRB provides a municipal advisory client brochure on its website (www.msrb.org) that describes the protections that may be provided by the MSRB rules, including professional competency, fair dealing, duty of loyalty, remedies for disputes and how to file a complaint with an appropriate regulatory authority, and WHEREAS, the Client and Northland are entering into this Agreement to define the municipal advisory relationship at the earliest opportunity related to the inception of the municipal advisory relationship for the Debt, and WHEREAS, Northland desires to furnish services to the Client as hereinafter described, NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NORTHLAND Northland shall provide the Client with services necessary to analyze, structure, offer for sale and close the Debt. The services will be tailored to meet the needs of this engagement and may include: Planning and Development 1. Assist Client officials to define the scope and the objectives for the Debt. 2. Investigate and consider reasonably feasible financing alternatives. Municipal Advisory Service Agreement 2 3. Assist the Client in understanding the material risks, potential benefits, structure and other characteristics of the recommended plan for the Debt, including issue structure, estimated debt service payments, projected revenues, method of issuance, bond rating, sale timing, and call provisions. 4. Prepare a schedule of events related to the issuance process. 5. Coordinate with bond counsel any actions needed to authorize the issuance of the Debt. 6. Attend meetings of the Client and other project and bond issue related meetings as needed and as requested. Bond Sale 1. Assist the Client with the preparation, review and approval of the preliminary official statement (POS). 2. Assist the Client and bond counsel with preparing and publishing the Official Notice of Sale if required by law. 3. Prepare and submit application for bond rating(s) and assist the Client with furnishing the rating agency(s) with any additional information required to conduct the rating review. Assist the Client with preparing and conducting the rating call or other presentation. 4. Assist the Client in receiving the bids, compute the accuracy of the bids received, and recommend to the Client the most favorable bid for award. 5. Coordinate with bond counsel the preparation of required contracts and resolutions. Post-Sale Support 1. Assist the Client with the preparation of final official statement, distribution to the underwriter and posting on EMMA. 2. Coordinate the bond issue closing, including making all arrangements for bond printing, registration, and delivery. 3. Furnish to the Client a complete transcript of the transaction, if not provided by bond counsel. There are no specific limitations on the scope of this agreement. COMPENSATION For providing these services with respect to the Debt, Northland shall be paid a lump sum of $42,385. The fee due to Northland shall be payable by the Client upon the closing of the Bonds. Northland agrees to pay the following expenses from its fee: • Out-of-pocket expenses such as travel, long distance phone, and copy costs. • Production and distribution of material to rating agencies and/or bond insurance companies. • Preparation of the bond transcript. The Client agrees to pay for all other expenses related to the processing of the bond issue(s) including, but not limited to, the following: • Engineering and/or architectural fees. • Publication of legal notices. • Bond counsel and local attorney fees. • Fees for various debt certificates. • The cost of printing Official Statements, if any. • Client staff expenses. Municipal Advisory Service Agreement 3 • Airfare and lodging expenses of one Northland official and Client officials when and if traveling for rating agency presentations. • Rating agency fees, if any. • Bond insurance fees, if any. • Accounting and other related fees. It is expressly understood that there is no obligation on the part of the Client under the terms of this Agreement to issue the Debt. If the Debt is not issued, Northland agrees to pay its own expenses and receive no fee for any municipal advisory services it has rendered pursuant to this Agreement. CONFLICTS OF INTEREST Northland, as your Municipal Advisor, mitigates conflicts through its adherence to its fiduciary duty to the Client, which includes a duty of loyalty to the Client in performing all municipal advisory activities for the Client. This duty of loyalty obligates Northland to deal honestly and with the utmost good faith with the Client and to act in the Client’s best interests without regard to our own financial or other interests. In addition, because Northland is a broker-dealer with significant capital due to the nature of its overall business, the success and profitability of Northland is not dependent on maximizing short-term revenue generated from individualized recommendations to its clients but instead is dependent on long-term profitably built on a foundation of integrity, quality of service and strict adherence to its fiduciary duty. Furthermore, Northland’s municipal advisory supervisory structure leverages our long-standing and comprehensive broker-dealer supervisory processes and practices, and provides strong safeguards against individual representatives of Northland potentially departing from our regulatory duties due to personal interests. The disclosures below describe, as applicable, any additional mitigations that may be relevant with respect to any specific conflict disclosed below. Northland serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of the Client. For example, Northland serves as Municipal Advisor to other Municipal Advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to the Client under this Agreement. These other clients may, from time to time and depending on the specific circumstances, have competing interests, such as accessing the new issue market with the most advantageous timing and with limited competition at the time of the offering. In acting in the interests of its various clients, Northland could potentially face a conflict of interest arising from these competing client interests. In other cases, as a broker-dealer that engages in underwritings of new issuances of municipal securities by other municipal entities, the interests of Northland to achieve a successful and profitable underwriting for its municipal entity underwriting clients could potentially constitute a conflict of interest if, as in the example above, the municipal entities that Northland serves as underwriter or municipal advisor have competing interests in seeking to access the new issue market with the most advantageous timing and with limited competition at the time of the offering. However, none of these other engagements or relationships would impair Northland’s ability to fulfill its regulatory duties to the Client. The compensation for services provided in this Agreement is customary in the municipal securities market, however, it may pose a conflict of interest. The fees due under this Agreement are in a fixed Municipal Advisory Service Agreement 4 amount established at the outset of the Agreement. The amount is usually based upon an analysis by Client and Northland of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by Northland. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Northland may suffer a loss. Thus, Northland may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest is mitigated by supervisory policies and procedures to ensure the scope of services within the transaction align with other comparable engagements. By executing this Agreement, the Client acknowledges and accepts the potential conflicts of interest posed by the compensation to Northland. Northland does not participate in any payments to be retained, nor participate in any fee splitting agreements or arrangements. Northland is also a broker-dealer that engages in a broad range of securities-related activities to service its clients, in addition to serving as a Municipal Advisor or Underwriter. Such securities-related activities, which may include but are not limited to the buying and selling of outstanding securities, including securities of the Client, may be undertaken on behalf of, or as counterparty to, the Client, and current or potential investors in the securities of the Client. These other Northland clients may, from time to time and depending on the specific circumstances, have interests in conflict with those of the Client, such as when their buying or selling of the Client’s securities may have an adverse effect on the market for the Client’s securities. However, any potential conflict arising from Northland effecting or otherwise assisting such other clients in connection with such transactions is mitigated by means of such activities being engaged in on customary terms through other business units of Northland that operate independently from Northland’s Municipal Advisory business, thereby reducing or eliminating the likelihood that the interests of such other clients would have an impact on the services provided by Northland to the Client under this Agreement. Northland has policies and procedures in place to ensure that Northland as a broker-dealer is not participating in bidding or determining market prices for the Client’s transaction that is covered under this Agreement. Northland Capital Holdings is the parent company of Northland Securities. A subsidiary of Northland Capital Holdings is Northland Trust, Inc. Northland Trust provides paying agent services to issuers of municipal bonds. The Client is solely responsible for the decision on the source of paying agent services. Any engagement of Northland Trust is outside the scope of this Agreement. No compensation paid to Northland Trust is shared with Northland Securities. Northland is not aware of any additional material conflicts of interest that could reasonably be anticipated to impair Northland’s ability to provide advice to or on behalf of the Client in accordance with the standards of conduct for municipal advisors. LEGAL AND DISCIPLINARY ACTIONS There are no legal or disciplinary events reported by the Securities and Exchange Commission contained in Form MA or Form MA-I. The Client can find information about these forms and accessing information related to Northland at www.sec.gov/municipal/oms-edgar-links. Municipal Advisory Service Agreement 5 SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the Client and Northland and their successors or assigns. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the Client or Northland and it shall terminate sixty (60) days following the closing date related to the issuance of the Debt. Dated this 21st day of June, 2022. Northland Securities, Inc. By: Tammy Omdal, Managing Director By: _________________________________ Clifton Schultz, Managing Director City of Lake Elmo, Minnesota By: _________________________________ Its: _________________________________ STAFF REPORT DATE: 06/21/2022 REGULAR ITEM#: 13 MOTION TO: City Council FROM: Ben Hetzel, Lake Elmo City Planner AGENDA ITEM: Impervious Surface Coverage Variance Request at 8012 Hill Trail N REVIEWED BY: Molly Just, Planning Director INTRODUCTION: Zawadski Homes on behalf Daniel and Anne Stoudt (Owners) recently submitted an application for an impervious surface coverage variance for the property located at 8012 Hill Trail N – Parcel 04.029.21.33.0044 (Subject Property). The applicant proposes to expand the living space within their single-family home, add an attached garage, and add a porch. To do this, the applicants are proposing to construct the expansions onto the east side of the existing home and relocate a portion of the driveway to access the proposed garage. The paved area in front of the existing detached garage will be removed, along with a paved area to the east of the garage. The maximum impervious surface coverage for an unsewered lot in a Shoreland District is 15%. The applicants are asking the City Council to allow an impervious surface coverage of 19.1%. The Planning Commission recommended approval of the variance request at the May 9, 2022 meeting with a 4-1 vote. ISSUE BEFORE CITY COUNCIL: The City Council is being asked to hold a public hearing, review, and make a recommendation on the request to allow the applicants to allow an impervious surface coverage of 19.1% where a maximum of 15% is allowed. VARIANCE REQUEST DETAILS/ANALYSIS: Address: 8012 Hill Trail North PID: 04.029.21.33.0044 Existing Zoning: Rural Single Family, Shoreland Management Zone, Valley Branch Watershed Surrounding Zoning: South, East, & West: Rural Single Family Deadline for Action: Application Complete – 4/12/2022 60 Day Deadline – 6/12/2022 Extension Letter Mailed – 5/12/22 120 Day Deadline – 8/12/22 Applicable Regulations: Article V - Zoning Administration and Enforcement Article XI - Rural Districts Article XIX -Shoreland Overlay District 2 Reason for Request: The applicants propose to expand the living space of the single family dwelling, add an attached garage, and add a porch within a Shoreland Management Zone. According to Section 105.12.1260 Table 17-3 of the City of Lake Elmo Municipal Code, an unsewered lot is allowed a maximum impervious surface coverage of 15%. REVIEW AND ANALYSIS/DRAFT FINDINGS: An applicant must establish and demonstrate compliance with the variance criteria set forth in Lake Elmo City Code Section 105.12.320 before the City may grant an exception or modification to city code requirements. These criteria are listed below, along with comments from Staff about the applicability of these criteria to the applicant’s request. 1) Practical Difficulties. A variance to the provision of this chapter may be granted by the Board of Adjustment upon the application by the owner of the affected property where the strict enforcement of this chapter would cause practical difficulties because of circumstances unique to the individual property under consideration and then only when it is demonstrated that such actions will be in keeping with the spirit and intent of this chapter. Definition of practical difficulties - “Practical difficulties” as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by an official control. FINDINGS: Strict enforcement of the municipal code denies the applicant the use of a functional garage and adequate living space for a growing family. According to the applicant, the existing tuck under garage was built so that only compact cars fit inside. The inability to park vehicles inside creates parking problems for the owners and guests. Additionally, there is currently an inadequate amount of bedrooms for a family of six. The current home has a total of 3 bedrooms. This arrangement will not be practical in the near future. 2) Unique Circumstances. The plight of the landowner is due to circumstances unique to the property not created by the landowner. FINDINGS: The previous owners of the property chose the existing home location and constructed the existing home and tuck under. The applicant has explored other alternatives such as expanding the existing garage to lessen the total impervious coverage. Expansion of the existing garage is not practical due to its proximity to the west property line and the living space above located above. 3) Character of Locality. The proposed variance will not alter the essential character of the locality in which the property in question is located. FINDINGS: The proposed additions would not alter the essential character of the neighborhood. The general style of the addition would be consistent with the existing principal structure. The applicant proposes to use natural colors and preserve as many trees as possible to maintain the wooded character of the neighborhood. Several surrounding properties consist of 3 principal structures with larger footprints, consistent with what is being proposed. All required Shoreland District setbacks and property line setbacks would be met with this proposal. 4) Adjacent Properties and Traffic. The proposed variance will not impair an adequate supply of light and air to properties adjacent to the property in question or substantially increase the congestion of the public streets or substantially diminish or impair property values within the neighborhood. FINDINGS: The proposed variance does not impair adjacent properties. The closest point of the proposed addition would be approximately 40 ft from the neighboring home to the east. The subject property is heavily wooded which provides natural screening from the public street and neighboring properties. The proposal would not increase the congestion of the public street or diminish property values. CITY AGENCY REVIEW: This request was distributed to several city departments for review on April 21, 2022. The following departments provided comments on the variance request. • City Engineer- Grading should be done in a manner that does not direct storm water runoff towards the sanitary system. • Valley Branch Watershed District Engineer – The project does not require a Valley Branch Watershed District Permit. There is less than 6,000 square feet of new and/or fully reconstructed surfaces. 4,378 square feet of new and/or fully reconstructed surfaces is proposed. • Fire Department- Ensure address numbers are plainly visible from the street fronting the property and shall have contrasting color from the background. PUBLIC COMMENT: A hearing notice was sent to surrounding properties on April 27, 2022. A hearing notice was published in the local newspaper on April 29, 2022. At this time, staff has not received any comments from the public on the requested variance. FISCAL IMPACT: None RECOMMENDED CONDITIONS OF APPROVAL 1. The applicant may not exceed the proposed 19.1% impervious surface coverage unless receiving approval from the City of Lake Elmo. 2. If approved this variance shall expire if the work does not commence within 12 months of the date of granting the variance. 3. Storm water shall not be directed towards the sanitary system or neighboring properties. 4. During construction, silt fencing and other environmental measures shall be taken to preserve and protect the lake and surrounding vegetation. 5. Building materials used must be similar in color to the existing principal structure. 4 OPTIONS: The City Council may: • Approve the variance. • Approve the variance with conditions. • Deny the variance, citing recommended findings of fact for denial. RECOMMENDATION: Staff recommends that the City Council approve of the request with conditions from Zawadski Homes on behalf of Daniel and Anne Stoudt for a variance to allow an impervious surface coverage of 19.1% at 8012 Hill Trail North. “Move to approve Resolution No. 2022-064, approving the request with conditions from Zawadski Homes on behalf of Daniel and Anne Stoudt for a variance to allow an impervious surface coverage of 19.1% at 8012 Hill Trail North.” ATTACHMENTS: 1) Land Use Application 2) Written Statements 3) Location Map 4) Certificate of Survey 5) Proposed Addition Plans 6) May 9, 2022 Planning Commission Minutes 1 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2022-064 A RESOLUTION APPROVING THE REQUEST WITH CONDITIONS FROM ZAWADSKI HOMES ON BEHALF OF DANIEL AND ANNE STOUDT FOR A VARIANCE TO ALLOW AN IMPERVIOUS SURFACE COVERAGE OF 19.1% ON THE PROPERTY LOCATED AT 8012 HILL TRAIL N. WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, Zawadski Homes (the “Applicant”) on behalf of Daniel and Anne Stoudt, owners of the property located at 8012 Hill Trail N – Parcel 04.029.33.0044, Lake Elmo, MN 55042 (the “Property”) have submitted an application to the City of Lake Elmo (the “City”) for a variance request to allow an impervious surface coverage of 19.1% where a maximum of 15% is allowed; and WHEREAS, notice has been published, mailed, and posted pursuant to the Lake Elmo Zoning Code, Section 103.00.120; and WHEREAS, the Lake Elmo Planning Commission held a public hearing on said matter on May 9, 2022; and WHEREAS, the Lake Elmo Planning Commission has submitted its report and recommendation to the City Council as part of a Staff Memorandum dated June 21, 2022; and WHEREAS, the City Council considered said matter at its June 21, 2022 meeting and directed City staff to draft a resolution approving the variance for its consideration; and NOW, THEREFORE, based on the testimony elicited and information received, the City Council makes the following: FINDINGS 1) That the procedures for obtaining a variance are found in Section 105.12.320 of the Lake Elmo Zoning Code. 2) That all submission requirements of Section 105.12.320 and 105.12.1260 of the Lake Elmo Zoning Code have been met by the Applicant. 3) That the proposed variance includes the following components: 2 a) The applicants propose to expand the living space within the existing single family home, add a detached garage, and add a porch. The expansions are proposed on the east side of the home and a paved portion of the driveway will be removed in front of the existing detached garage along with a paved area to the east of the garage. The proposed expansion will increase the impervious surface coverage from 17.2% to 19.1%. b) As per Table 17-3 of Section 105.12.1260 of the Lake Elmo City Code, the maximum impervious surface coverage for an unsewered lot in a Shoreland Management District is 15%. c) The applicant proposes a storm water management plan to infiltrate a portion of the newly constructed impervious surfaces. 4) Practical Difficulties as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by an official control: Strict enforcement of the municipal code denies the applicant the use of a functional garage and adequate living space for a growing family. According to the applicant, the existing tuck under garage was built so that only compact cars fit inside. The inability to park vehicles inside creates parking problems for the owners and guests. Additionally, there is currently an inadequate amount of bedrooms for a family of six. The current home has a total of 3 bedrooms. This arrangement will not be practical in the near future. 5) Unique Circumstances the plight of the landowner is due to circumstances not created by the landowner: The previous owners of the property chose the existing home location and constructed the existing home and tuck under. The applicant has explored other alternatives such as expanding the existing garage to lessen the total impervious coverage. Expansion of the existing garage is not practical due to its proximity to the west property line and the living space above located above. 6) Character of Locality the proposed variance will not alter the essential character of the locality in which the property in question is located: The proposed additions would not alter the essential character of the neighborhood. The general style of the addition would be consistent with the existing principal structure. The applicant proposes to use natural colors and preserve as many trees as possible to maintain the wooded character of the neighborhood. Several surrounding properties consist of principal structures with larger footprints, consistent with what is being proposed. All required Shoreland District setbacks and property line setbacks would be met with this proposal. 3 7) Adjacent Properties and Traffic the proposed variance will not impair an adequate supply of light and air to properties adjacent to the property in question or substantially increase the congestion of the public streets or substantially diminish or impair property values within the neighborhood: The proposed variance does not impair adjacent properties. The closest point of the proposed addition would be approximately 40 feet from the neighboring home to the east. The subject property is heavily wooded which provides natural screening from the public street and neighboring properties. The proposal would not increase the congestion of the public street or diminish property values. DECISION NOW, THEREFORE, BE IT FURTHER RESOLVED, and based upon the information received and the above Findings, that the City Council of the City of Lake Elmo hereby approves the request with conditions by Zawadski Homes on behalf of Daniel and Anne Stoudt for a variance request to allow an impervious surface coverage of 19.1% on the property located at 8012 Hill Trail N. The conditions for approval are outlined below: 1. The applicant may not exceed the proposed 19.1% impervious surface coverage unless receiving approval from the City of Lake Elmo. 2. If approved this variance shall expire if the work does not commence within 12 months of the date of granting the variance. 3. Storm water shall not be directed towards the sanitary system or neighboring properties. 4. During construction, silt fencing and other environmental measures shall be taken to preserve and protect the lake and surrounding vegetation. 5. Building materials used must be similar in color to the existing principal structure. Passed and duly adopted this 21st day of June, 2022 by the City Council of the City of Lake Elmo, Minnesota. ____________________________________ Mayor Charles Cadenhead ATTEST: _______________________________ Julie Johnson, City Clerk 8009 8012 8018 8024 8000 ArcGIS Web AppBuilder Esri Community Maps Contributors, Metropolitan Council, MetroGIS,Washington County, MN, © OpenStreetMap, Microsoft, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, EPA, NPS, US Census Bureau, USDA Parcels Address Points DNR Protected Waters ID MNWASH038007.sid Red: Band_1 Green: Band_2 Blue: Band_3 MNWASH032009.sid Red: Band_1 Green: Band_2 Blue: Band_3 MNWASH026009.sid Red: Band_1 Green: Band_2 Blue: Band_3 MNWASH020009.sid Red: Band_1 5/5/2022, 11:37:39 AM 0 0.01 0.020.01 mi 0 0.02 0.040.01 km 1:1,128 Esri Community Maps Contributors, Metropolitan Council, MetroGIS, Washington County, MN, © OpenStreetMap, Microsoft, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, From:Anne Stoudt To:Ben Hetzel Subject:Re: Variance Application Date:Saturday, April 9, 2022 2:44:25 PM Caution: This email originated outside our organization; please use caution. Yes, Zawadski Homes has our permission to apply for the below-referenced variance on ourbehalf. Thanks! Sent from my iPhone On Apr 8, 2022, at 2:11 PM, Ben Hetzel <BHetzel@lakeelmo.org> wrote:  Mrs. Stoudt, I wasn’t aware of this until now, but apparently I need a form of permission for Zawadski Homes to apply for the variance on your behalf. Could you please just respond to this email explaining that Zawadski Homes has permission to apply for a variance to impervious surface coverage for the City of Lake Elmo? Thank you. Ben Hetzel City PlannerCity of Lake Elmo 3800 Laverne Ave. N.Lake Elmo, MN 55042651-747-3911 May 4, 2022 Ben Hetzel City Planner City of Lake Elmo 3880 Laverne Ave. N. Lake Elmo, MN 55042 Re: Variance Request re: 8012 Hill Trl N., Lake Elmo, MN 55042 Mr. Hetzel: Thank you for the opportunity to provide clarity with respect to question (g) of the required written statements portion of the above-referenced variance application. g. The plight of the landowner is due to circumstances unique to the property and not created by the landowner. ORIGINAL RESPONSE: Our lot is long and narrow and the current house lacks (1) an adequate garage and (2) enough bedrooms. On a larger parcel that is wider, there would be more flexibility as to placement and size of the addition. Given the unique narrowness, lot size and distance of setbacks, we were somewhat limited as to the location and size of the addition. From front to back, the existing home is already tucked close to the bluff setback. As a result, (a) the driveway is already relatively long, using up a significant portion of the impervious surface area, and (b) the placement of any addition without violating the bluff and perimeter setbacks was a challenge. After exploring several ideas, our projected plan is the result of careful consideration of all setbacks and adherence thereto. The result is that the driveway, in addition to being long enough to reach the house, must also be extended across the front of our house, further increasing impervious surface area. However, as mentioned above, the new projected driveway also presents an opportunity to redirect runoff so that stormwater is actually managed more efficiently than it is currently. In any event, neither the lot size nor the current garage/floorplan, which have each presented unique obstacles, were created by us, the owners. CLARIFICATION: The narrow shape of the lot alone does not, by itself, create a unique situation necessitating the variance we request. However, the narrowness of the lot combined with the pre-existing driveway, garage and house, the location and specifications of each having been solely determined by the previous owners of our property, are what have contributed to the unique circumstances that now warrant the granting of a variance. Specifically, the previous owners of our property opted to place the home as far back on the lot as possible, necessitating a relatively long driveway to reach the house. Per the as-is survey, which you have been provided, the driveway installed by previous owners currently occupies 2,440 of the total 6,440 square feet (37.8%) of impervious surface area. Furthermore, the previous owners placed the driveway so that it would lead directly to the existing garage, which is located on the west side of the home. The previous owners also built the existing garage, problems with which are set out in our original written submission in response to question (f). In light of the above, due to the previous owners’ placement of the home and driveway, and construction of a too-small garage, we had very limited options to accomplish an addition that our family now needs in order to stay in the home. The tuck-under garage itself cannot simply be made larger, as there is living space occupying the level above. Also, the previous owners placed the home in such a position that adding on to the west side of the home is not an option, given the close proximity to the perimeter setback along the west perimeter of the property. Our only option is to add is to add a functional garage onto the east side of the house with bedrooms above. With adding a garage onto the east side of the property being our only option, the existing driveway must extend eastward across the front of the house, after already extending from the road to the house. As mentioned in our original written statement, this plan is the result of careful consideration of all setbacks, but also careful consideration of working with what the previous owners of the property created. Given the situation we inherited from previous owners’, our proposed design will actually reduce impervious square footage from the driveway, which we will accomplish by removing a large portion of the existing driveway and areas of concrete/pavers. As projected, the new driveway will occupy only 2,332 of the total 7,150 feet (32.6%) of impervious surface area. This reflects our mindfulness of the impervious surface limitation and efforts to minimize the overall increase in impervious areas as much as possible. Thank you again for considering our request. Sincerely, Dan and Anne Stoudt HILL TRAIL NORTH7.5CANT.LAKE DEMONTREVILLEX 986.7X 986.32.0%5.0%X 986.12.0%REMOVEEXISTINGWALLTW=988.0BW=984.5TW=988.7BW=986.3TW=988.7BW=986.7X 989.0X 988.7X 988.5TW=988.0BW=985.8TW=986.0BW=985.3REMOVEEXISTINGWALLREMOVE E'LYPORTION DRIVEPROPOSEDGARAGEPROPOSEDADDITIONPROPPORCHREMOVEEXISTINGWALLSSTEPSPROPOSEDWALLPROPOSEDWALLTW=986.5BW=982.8TW=984.5BW=982.4P R O P O S E D D R I V E 984.2 X 7 .0%REMOVESHED4.5%TW=985.5BW=982.6REMOVE WALL TOACCOMODATE SWALE)X 986.5WALK 100.9 125.7REMOVEPAVINGX 983.3 4.0%6.5%REMOVEPAVINGGFE=987.0TW=986.5BW=982.8EXISTINGSEPTIC AREA(BY OTHERS)ABANDON EX. SEPTICTANK (BY OTHERS)PROPOSED LIFT TANK(BY OTHERS)PROPOSED TRASHTANK (BY OTHERS)PROPOSED PUMPTANK (BY OTHERS)PROPOSEDFILTRATION SWALE(SEE CIVIL PLANS)PROPOSEDFILTRATION SWALE(SEE CIVIL PLANS)XXXXXXXXX10.810.99889849889869869849 8 2984982986986TW=988.0BW=986.2TW=984.5BW=982.5X 986.9 XX 98 1 .5XwPROPOSEDWELL980X 979.4PROPOSED RAIN GARDENTOP ELEV = 980.4BOT ELEV = 979.4OVERFLOW = 980.5TOP = 175 SQ. FT. +/-980.4980.5 XXTW=988.7BW=986.5LEGENDUNDERGROUND ELECTRICUNDERGROUND CABLE TVUNDERGROUND FIBER OPTICUNDERGROUND TELEPHONEOVERHEAD UTILITYUNDERGROUND GASSANITARY SEWERSTORM SEWERWATERMAINFENCECURB [TYPICAL]CONTOURSFOUND MONUMENT 1/2" IPMARKED RLS 15480SET 1/2" IRON PIPEMARKED RLS NO. 25718CABLE TV PEDESTALAIR CONDITIONERELECTRIC MANHOLEELECTRIC METERELECTRIC PEDESTALELECTRIC TRANSFORMERLIGHT POLEGUY WIREPOWER POLEGAS MANHOLEGAS METERTELEPHONE MANHOLETELEPHONE PEDESTALSANITARY CLEANOUTSANITARY MANHOLECATCH BASINSTORM DRAINFLARED END SECTIONSTORM MANHOLEFIRE DEPT. CONNECTIONHYDRANTCURB STOPWATER WELLWATER MANHOLEWATER METERPOST INDICATOR VALVEWATER VALVEBOLLARDFLAG POLEMAIL BOXTRAFFIC SIGNUNKNOWN MANHOLESOIL BORINGSPOT ELEVATIONTRAFFIC SIGNALCONIFEROUS TREEDECIDUOUS TREEBUILDING LINEBITUMINOUS SURFACECONCRETE SURFACEAREA OF LOT TO OHWL = 37,540EXISTING IMPROVEMENTSA-HOUSE = 2772B-SHED = 41C-CONC/PAVERS = 1187D-DRIVEWAY = 2440TOTAL EXISTING= 644017.2% (% OF OHW AREA)DECKS, WOOD STAIRS AND WALLS NOT SHOWN PEREMAIL FROM BEN PRCHAL TO ANNE STOUDT DATEDJULY 6, 2020.LAKE DECK AND STAIRS = 512DECK AND STEPS AT HOUSE = 849RETAINING WALLS =250*ALL STAIRS ARE WOODEN WITH GAPS AND ABOVEGROUND.EXISTING AREAS:(IN SQUARE FEET)SETBACKSTHE FOLLOWING SETBACKS ARE SHOWN INTHE CITY OF LAKE ELMO ZONING CODE FORTHE RS ZONING DISTRICT (SUBJECT TOLAKESHORE REGULATIONS)VERIFY ALL THE FOLLOWING SETBACKSSHOWN WITH THE CITY OF LAKE ELMOZONING ADMINISTRATOR PRIOR TO DESIGN.FRONT BUILDING SETBACK FROM ROAD = 30'SIDE BUILDING SETBACK = 10'BUILDING SETBACK FROM THE OHWL = 100'SEPTIC SETBACK FROM THE OHWL = 75'BUILDING SETBACK FROM TOP OF BLUFF (18%)= 30'MAXIMUM 15% LOT IMPERVIOUS AREARESERVED 20,000 FOR SEPTIC AREA.MAXIMUM BUILDING HEIGHT = 35'PID#0402921330044BENCHMARKSELEVATIONS BASED ON INFORMATION AS SHOWN ON THE MNDOT GEODETICWEBSITE. SURVEY DISK 8286C WITH AN ELEVATION OF 995.90 WAS USED TOESTABLISH VERTICAL CONTROL FOR THIS SURVEY (NAVD 88). PROJECTBENCHMARK SHOWN ON SURVEYCONTACT:ANNE STOUDT8012 HILL TRAIL N.LAKE ELMO, MN 55042e-mail:anne.stoudt@gmail.comUNDERGROUND UTILITIES NOTES:THE UNDERGROUND UTILITIES SHOWN HAVE BEEN LOCATED FROM FIELD SURVEYINFORMATION AND EXISTING DRAWINGS. THE SURVEYOR MAKES NO GUARANTEETHAT THE UNDERGROUND UTILITIES SHOWN COMPRISE ALL SUCH UTILITIES IN THEAREA, EITHER IN SERVICE OR ABANDONED. THE SURVEYOR FURTHER DOES NOTWARRANT THAT THE UNDERGROUND UTILITIES SHOWN ARE IN THE EXACTLOCATION INDICATED ALTHOUGH HE DOES CERTIFY THAT THEY ARE LOCATED ASACCURATELY AS POSSIBLE FROM THE INFORMATION AVAILABLE. THIS SURVEY HASNOT PHYSICALLY LOCATED THE UNDERGROUND UTILITIES. GOPHER STATE ONECALL LOCATE TICKET NUMBER(S) 180820838. SOME MAPS WERE RECEIVED, WHILEOTHER UTILITIES DID NOT RESPOND TO THE LOCATE REQUEST. ADDITIONALUTILITIES OF WHICH WE ARE UNAWARE MAY EXIST.COUNTY/CITY:REVISIONS:PROJECT LOCATION:DATEREVISION8012CALL BEFORE YOU DIG!TWIN CITY AREA:TOLL FREE:1-800-252-1166651-454-0002Gopher State One CallLEGAL DESCRIPTION:HILL TRAIL N.1. BEARINGS ARE BASED ON COORDINATES SUPPLIED BY THE WASHINGTONCOUNTY SURVEYORS OFFICE.2. UNDERGROUND UTILITIES SHOWN PER GOPHER ONE LOCATES ANDAS-BUILTS PLANS PROVIDED BY THE CITY OF LAKE ELMO PUBLIC WORKSDEPARTMENT.3. THERE MAY SOME UNDERGROUND UTILITIES, GAS, ELECTRIC, ETC. NOTSHOWN OR LOCATED.SURVEY NOTES:CITY OF LAKE ELMOWASHINGTONCOUNTY(AS SHOWN ON CERTIFICATE OF TITLE NO. 73027)Lots Four hundred thirty-two (432) Four hundred thirty-three (433), Four hundredthirty-four (434), Four hundred thirty-five (435), Four hundred thirty-six (436), Fourhundred thirty-seven (437), and the Westerly one-half of Lot Four hundred thirty-eight(W'ly 1/2 Lot 438);ANDThe Westerly one-half of Lot seven hundred four (W'ly 1/2 Lot 704), and all of LotsSeven hundred five (705), Seven hundred six (706), Seven hundred seven (707), Sevenhundred eight (708), Seven hundred nine (709), and Seven hundred ten (710),LANE'S DEMONTREVILLE COUNTRY CLUB, according to the plat thereof on file and ofrecord in the office of the Registrar of Titles, Washington County, Minnesota.03-27-2018 INITIAL ISSUE07-24-2021 VARIANCE SKETCH/REV02-09-2022 VARIANCE REV03-17-2022 ADD SEPTIC/CIVIL03-24-2022 OWNER REVISIONS03-25-2022 OWNER REVISIONSCERTIFICATION:I hereby certify that this plan was prepared byme, or under my direct supervision, and that I ama duly Licensed Land Surveyor under the laws ofthe state of Minnesota.Daniel L. Thurmes Registration Number: 25718Date:__________________TITLE NOTES:STOUDTRESIDENCE0NORTH2040ZZ05092DSURVZZ92DPROPOSED IMPROVEMENTSSURVEYLAND SURVEYING, INC.CORNERSTONESuite #16750 Stillwater Blvd. N.Stillwater, MN 55082Phone 651.275.8969Fax 651.275.8976dan@cssurvey.netPROJECT NO.FILE NAME3-27-18(AS SHOWN ON THE MEMORIAL TO THE CERTIFICATE OF TITLE NO. 73027)Resolution 87-32 City of Lake Elmo Washington County, Minnesota. NOW,THEREFORE, be it resolved that the transfer of ownership/title in Lane'sDeMontreville Country Club shall be prohibited without the approval of the Cityof Lake Elmo as to the conformity of such transfer with the provisions of theLake Elmo Municipal Code.PORTIONS OF THIS PROPERTY LIES WITHIN ZONE AE,AREAS DETERMINED TO BE WITHIN THE 0.2% ANNUAL CHANCE FLOODPLAIN OTHERAREAS INCLUDING ALL BUILDINGS ARE LOCATED IN ZONE X, AREAS DETERMINED TOBE OUTSIDE THE 0.2% ANNUAL CHANCE FLOODPLAIN AS SHOWN ON FEMA FLOODINSURANCE RATE MAP NUMBER 27163c0240e HAVING AN EFFECTIVE DATE OFFEBRUARY 3RD, 2010. THE BASE FLOOD ELEVATION OF 931.0 IS SHOWN ON THESURVEY FOR REFERENCE PURPOSES ONLY. NOT FIELD VERIFIED.FLOOD INFORMATION:SEPTICSEPTIC MANHOLE AND CLEANOUTS SHOWN ON SURVEY. CONSULT SEPTICSPECIALIST AS TO THE LOCATION OF THE SEPTIC SYSTEM.AREA OF LOT TO OHWL = 37,540EXISTING IMPROVEMENTSA-HOUSE = 2772B-HOUSE ADDN = 1409C-PORCH= 149D-DRIVEWAY= 2322E-FRONT WALK= 35F - PORCH STEPS= 44G - REAR PATIO= 419TOTAL PROPOSED= 7150% IMPERVOUS 19.1% (% OF OHW AREA)DECKS, WOOD STAIRS AND WALLS NOT SHOWN PEREMAIL FROM BEN PRCHAL TO ANNE STOUDT DATEDJULY 6, 2020.LAKE DECK/STAIRS = 512DECK/STEPS AT HOUSE = 704RETAINING WALLS = 360*ALL DECK/STAIRS ARE WOODEN WITH GAPS ANDABOVE GROUND.PROPOSED AREAS:(IN SQUARE FEET)DENOTES SPOT ELEVATIONDENOTES DRAINAGE AND SLOPEDENOTES TREES TO BE REMOVEDGARAGE ADD. FLOOR= 987.0HOUSE ADD. LOWEST FLOOR = 982.0PROPOSED ELEVATION ADDITION:X 983.34.0%XDENOTES PROPOSED CONTOUR930SITE NOTES:GRADES AND LAYOUT SHOWN ON THISSURVEY ARE PRELIMINARY IN NATURE FORVARIANCE REVIEW ONLY. FINAL DESIGN WILLINCORPORATE FINAL DESIGN OFARCHITECTURAL, ENGINEERING ANDLANDSCAPE ELEMENTS. THIS DRAWING ISFOR VARIANCE REVIEW ONLY.PROPOSED NOTES:DIMENSIONS AND HOUSE ELEVATIONS PER DFP JULY 16, 2020STORMWATER AND ELEVATIONS AS SHOWN ON PLANS BY SITE DESIGN, LLCDATED MARCH 15, 2022.VERIFY ELEVATIONS AND DIMENSIONS WITH FINAL CONSTRUCTION PLANS ANDNOTIFY CORNERSTONE IF THERE ARE ANY DISCREPANCIES. HILL TRAIL NORTHX 986.7X 986.32.0%5.0%X 986.12.0%TW=988.0BW=984.5TW=988.7BW=986.3TW=988.7BW=986.7X 989.0X 988.7X 988.5TW=988.0BW=986.2TW=988.0BW=985.8TW=986.0BW=985.39 88984988986 PROPOSEDGARAGEPROPOSEDADDITIONPROPPORCHSTEPSPROPOSEDWALLPROPOSEDWALL9869849 8 2TW=986.5BW=982.8TW=984.5BW=982.4PROPOSED DRIVE 984.2 X7.0%4.5%984982986TW=985.5BW=982.6986X 986.5WALKX 983.34.0%6.5%GFE=987.0TW=984.5BW=982.5TW=986.5BW=982.8I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION,OR REPORT WAS PREPARED BY ME OR UNDER MYDIRECT SUPERVISION AND THAT I AM A DULYLICENSED ENGINEERUNDER THELAWS OF THE NAME:SIGNATURE:DATE:LIC. No:REV DESCRIPTION BY STATE OF MINNESOTA1530STOUDT RESIDENCE 8012 HILL TRAIL N. LAKE ELMO 1 MARCH 2022 PROPOSED STORMWATER PLAN C1.0STORM LEGEND:DETAIL 500: FILTRATION SWALE HILL TRAIL NORTHI HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION,OR REPORT WAS PREPARED BY ME OR UNDER MYDIRECT SUPERVISION AND THAT I AM A DULYLICENSED ENGINEERUNDER THELAWS OF THE NAME:SIGNATURE:DATE:LIC. No:REV DESCRIPTION BY STATE OF MINNESOTA1530STOUDT RESIDENCE 8012 HILL TRAIL N. LAKE ELMO 4 MAY 2021 EXISTING DRAINAGE CONDITIONS EX-1 Lake Elmo Planning Commission Minutes: 5-9-2022 City of Lake Elmo Planning Commission Meeting Minutes of May 9, 2022 Commission Chair Risner called to order the meeting of the Lake Elmo Planning Commission at 7:00 p.m. COMMISSIONERS PRESENT: Risner, Steil, Graen, Rehkamp, Vrieze COMMISSIONERS ABSENT: Mueller STAFF PRESENT: Planning Director Just & City Planner Hetzel Pledge of Allegiance at 7:00 PM Approve Agenda: M/S/P: Graen / Vrieze made a motion to approve the agenda. Vote: 5-0, motion carried unanimously. Approve Minutes: M/S/P: Steil / Vrieze moved to approve the Planning Commission minutes of April 25th , 2022. Vote: 5-0, motion carried unanimously. Public Hearings: a. 8012 Hill Trail N. Variance for impervious surface coverage in a Shoreland Management Overlay District. Applicant Zawadski Homes, on behalf of Daniel and Anne Stoudt, owners of the property located at 8012 Hill Trail N, is seeking an impervious surface coverage variance. The applicants would like to expand their living space, add an attached garage, and add a porch. To construct the addition, the applicants are requesting a variance for 19.1% impervious surface coverage where a maximum of 15% is allowed. RS Zoning District, Shoreland Management Overlay District, Valley Branch Watershed District. PID 04.029.21.33.0044 City Planner Hetzel gave presentation: Zawadski Homes on behalf Daniel and Anne Stoudt (Owners) recently submitted an application for an impervious surface coverage variance for the property located at 8012 Hill Trail N – Parcel 04.029.21.33.0044 (Subject Property). The applicant proposes to expand the living space within their single- family home, add an attached garage, and add a porch. To do this, the applicants are proposing to construct the expansions onto the east side of the existing home and relocate a portion of the driveway to access the proposed garage. The paved area in front of the existing detached garage will be removed, along with a paved area to the east of the garage. The maximum impervious surface coverage for an unsewered lot in a Shoreland District is 15%. The applicants are asking the City Council to allow an impervious surface coverage of 19.1%. City Planner Hetzel answered questions. Staff recommends that the Planning Commission recommend approval of the request with conditions from Zawadski Homes on behalf of Daniel and Anne Stoudt for a variance to allow an impervious surface coverage of 19.1% at 8012 Hill Trail North. Applicants Anne & Daniel Stoudt (8012 Hill Trail N, Lake Elmo) spoke as to why this variance is being requested. Lake Elmo Planning Commission Minutes: 5-9-2022 Rich Riemersma with Zawadski Homes spoke regarding the that of the 19.1% the house is 11.53% and the rest is the driveway. Public hearing opened at 7:16 PM. Public hearing closed at 7:17 PM. Commissioner Rahkamp requested that the extra bump-out in the driveway be removed as a concession. M/S/P: Graen/Vrieze Moved to recommend approval of the request with conditions as stated by city staff. Vote: 4-1, (Commissioner Rehkamp – Nay) b. 4622 Lilac Lane N. Variance for impervious surface coverage in a Shoreland Management Overlay District. Kyle and Morgan Traynor, Owners of the property located at 4622 Lilac Lane N, is seeking an impervious surface coverage variance. The applicants would like to expand the living space of the existing home by adding an addition. To construct the addition, the applicants are requesting a variance for 19% impervious surface coverage where a maximum of 15% is allowed. Open Space PUD, Shoreland Management Overlay District, Valley Branch Watershed District. PID 07.029.20.23.0011. City Planner Hetzel gave presentation: Kyle and Morgan Traynor (Applicants) recently submitted an application for a Shoreland impervious surface coverage variance for the property located at 4622 Lilac Lane North – Parcel 07.029.20.23.0011 (Subject Property). The applicant is looking to expand the living space within their single-family home. To do this, the applicants are proposing to remove an area of existing pavers and a deck to construct a 12- foot by 14-foot two story addition. The maximum impervious surface coverage for an unsewered lot in a Shoreland District is 19%. City Planner Hetzel answered questions. Applicant Morgan Traynor (4622 Lilac Lane N) spoke as to why this variance is being requested. An email was received from Joe & Shelly Holmberg (4602 Lilac Lane N) in support of granting this variance. Public hearing opened at 7:32 PM. Public hearing closed at 7:33 PM. M/S/P: Steil/Rehkamp Moved to recommend approval of the request from Kyle and Morgan Traynor for a variance to allow an impervious surface coverage of 19% at 4622 Lilac Lane North. Vote: 5-0, New/Unfinished Business: a. Comprehensive Plan Implementation in the Village Planning Area- Draft Village Districts with Overlay District Director Just gave presentation and answered questions. As per the April 25th Planning Commission meeting, staff asked each Commissioner to provide recommendations as to what uses they would like to see as a permitted use, conditional use, or prohibited use in the V-MDR and V- HDR zoning districts. The results concluded that the Planning Commission would like to see mixed uses located outside of just the Village Mixed Use district. Taking this into account, the Village Overlay draft shows a variety of Lake Elmo Planning Commission Minutes: 5-9-2022 non-residential uses allowed as conditional uses in the V-HDR districts while limiting to a select few in the V-MDR districts. The reasoning for drastically limiting non-residential uses in the V-MDR district is due to the geography of where these districts are located and given that single-family detached units are recommended for this district. The only V-HDR district in the City is located directly adjacent to the Old Village District in the Elmo Station District. By allowing non-residential uses in the V-HDR (first floor only) and limiting them in the V-MDR, concentrations of people will be drawn closer to the Old Village District which is important for its vitality. Communications/Updates a. City Council Update: Approved the Banna Variance, and the Parks work plan. b. Staff Update c. Upcoming PC Meetings: 1. May 23, 2022 2. June 13, 2022 Meeting adjourned at 8:36 PM. Respectfully submitted, Diane Wendt Permit Technician STAFF REPORT DATE: June 21, 2022 REGULAR AGENDA ITEM: Presentation & Acceptance of the 2021 Annual Comprehensive Financial Report (ACFR) FROM: Kristina Handt, City Administrator BACKGROUND: Annually, the City engages the services of an independent outside audit firm to audit and assist with the preparation of the financial statements. The auditors are asked to assure that the financial statements are free from material misstatement in accordance with U.S. Generally Accepted Accounting Principles (GAAP). The firm also performs testing and makes inquiries to help ensure that proper internal controls are in place. This is the ninth year that the City of Lake Elmo has presented the report in the Annual Comprehensive Financial Report (ACFR) layout. As such, the City has retained the services of Redpath and Company, to perform the City of Lake Elmo’s audit for 2021. The 2021 Annual Comprehensive Financial Report and Management Reports will be presented to the City Council by Mr. Andy Hering – Director Audit and Attest Services, from Redpath and Company with the opportunity to ask questions of both Mr. Hering and City Staff. ISSUE BEFORE THE CITY COUNCIL: 1) Does the City Council have any questions regarding the 2021 ACFR? DISCUSSION: Mr. Andy Hering, will present information regarding the 2021 Audit, answer any questions the City Council may have pertaining to the 2021 Audit and the 2021 ACFR. The City received an unmodified audit opinion, meaning the Financial Statements are fairly stated in all material respects. There were no findings related to Minnesota Legal Compliance. Two findings related to Internal Controls over Financial Reporting are noted in the report- Financial Statement Corrections and Lack of Ideal Segregation of Duties. The details of these exceptions and the City’s response are outlined in the reports attached. At December 31, 2021, the unassigned fund balance of the General Fund was $5,618,812 or 78% of 2022 budgeted expenditures and transfers. FISCAL IMPACT: Overall sound policies, fiscal management, effective operational, capital, and long range planning are all integral parts of City business leading up to the audit and completion of the ACFR. As such, continued investment in the aforementioned items will help position the City to continue to provide quality, efficient, timely and cost effective services to the constituents of the community. RECOMMENDATION: 1) No formal recommendation is required, but the City Council at its discretion may accept the results of the 2021 Audit and 2021 ACFR. MOTION: “Motion to accept the 2021 Annual Comprehensive Financial Report.” ATTACHMENTS: 1) 2021 Annual Comprehensive Financial Report (ACFR) 2) Redpath and Company Letter, Communication With Those Charged With Governance 3) Redpath and Company Report, 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 4) Redpath and Company Report, Minnesota Legal Compliance Report ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF LAKE ELMO, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2021 Prepared By: Finance Department - This page intentionally left blank - CITY OF LAKE ELMO, MINNESOTA TABLE OF CONTENTS Page Reference No. Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 9 Principal City Officials 11 Organization Chart 12 Independent Auditor's Report 15 Management's Discussion and Analysis 21 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 35 Statement of Activities Statement 2 36 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 38 Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position Statement 4 39 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Statement 5 40 Reconciliation of the Statement of Revenues, Expenditures and Changes In Fund Balance of Governmental Funds to the Statement of Activities Statement 6 41 Statement of Net Position - Proprietary Funds Statement 7 42 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 8 43 Statement of Cash Flows - Proprietary Funds Statement 9 44 Notes to Financial Statements 45 INTRODUCTORY SECTION FINANCIAL SECTION CITY OF LAKE ELMO, MINNESOTA TABLE OF CONTENTS Page Reference No. Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 10 84 Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 11 88 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 89 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 90 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 14 91 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 92 Schedule of Changes in the Net Pension Liability and Related Ratios - Lake Elmo Firefighters Relief Association Statement 16 93 Schedule of Contributions - Lake Elmo Firefighters Relief Association Statement 17 94 Notes to RSI 95 Combining and Individual Nonmajor Fund Financial Statements: Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 19 101 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 102 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 21 103 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 22 105 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 23 108 Balance Sheet - Debt Service Fund by Bond Issue Statement 24 112 Statement of Revenues, Expenditures and Changes in Fund Balance - Debt Service Fund by Bond Issue Statement 25 114 CITY OF LAKE ELMO, MINNESOTA TABLE OF CONTENTS Page Reference No. Financial Trends: Net Position by Component Table 1 120 Changes in Net Position Table 2 122 Fund Balances, Governmental Funds Table 3 126 Changes in Fund Balances, Governmental Funds Table 4 128 Revenue Capacity: Tax Capacity and Estimated Actual Value of Taxable Property Table 5 131 Direct and Overlapping Property Tax Rates Table 6 132 Principal Property Taxpayers Table 7 133 Property Tax Levies and Collections Table 8 134 Water and Sanitary Sewer Charges by Customer Table 9 137 Debt Capacity: Ratios of Outstanding Debt by Type Table 10 138 Ratios of Net General Bonded Debt Table 11 140 Direct and Overlapping Governmental Activities Debt Table 12 142 Legal Debt Margin Information Table 13 143 Pledged Revenue Coverage Table 14 144 Demographic and Economic Information: Demographic and Economic Statistics Table 15 145 Principal Employers Table 16 147 Operating Information: Full-Time Equivalent Employees By Function/Program Table 17 148 Operating Indicators by Function/Program Table 18 151 Capital Asset Statistics by Function/Program Table 19 152 STATISTICAL SECTION (UNAUDITED) - This page intentionally left blank - INTRODUCTORY SECTION 1 - This page intentionally left blank - 2 June 14, 2022 Honorable Mayor, Members of the City Council, and Citizens of the City of Lake Elmo: Minnesota Statutes require all cities to issue an annual report on its financial position and activity prepared in accordance with generally accepted accounting principles (GAAP), under the guidance of the Governmental Accounting Standards Board (GASB), and audited in accordance with generally accepted auditing standards (GAAS) by a firm of licensed certified public accountants or the Office of the State Auditor. Pursuant to that requirement, we hereby issue the annual comprehensive financial report of the City of Lake Elmo, MN for the fiscal year ended December 31, 2021. This report consists of management’s representation concerning the finances of the City of Lake Elmo. Consequently, management assumes full responsibility for the completeness, accuracy and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, the management of the City of Lake Elmo has established a thorough internal control system designed to both protect the City’s assets from loss, theft and misuse and to compile all necessary information for the preparation of the City of Lake Elmo’s financial statements in conformity with GAAP and GASB. As a management team, we assert that the financial statements will be free from material misstatement and that the financial report is reliable in all material respects. The City of Lake Elmo’s financial statements have been audited by Redpath and Company, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Lake Elmo for the fiscal year ended December 31, 2021 are free from material misstatement. The independent audit involved examining, on an approved test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City of Lake Elmo’s financial statements for fiscal year ended December 31, 2021 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of the report. A “Single Audit” designed to meet the special needs of a federal grantor agency was not performed for the year ended December 31, 2021 as the City’s federal expenditures did not meet the single audit threshold for this additional independent audit. 3 GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in form of the Management’s Discussion and Analysis (MD&A). This letter of transmittal is included to complement the MD&A and should be read in conjunction with it. The City of Lake Elmo’s MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE GOVERNMENT The City of Lake Elmo was incorporated in 1926 and is a statutory city in the State of Minnesota six miles east of St. Paul Minnesota. Located in Washington County, it covers 25 square miles and has an estimated 2020 population of 12,655 which represents 4,004 households. Policy-making and legislative authority are vested in a governing council consisting of an elected Mayor and four council members. Per Minnesota State Statute, the governing council is responsible for passing ordinances, adopting an annual budget, appointing committees and hiring both the city’s administrator and attorney. The City Administrator is responsible for carrying out the policies and ordinances of the governing council and overseeing the day-to-day operations of the city. The Council is elected on a non-partisan basis. The Mayor serves a four-year term and council members serve a four-year staggered term, with two of these positions elected every two years. The Mayor and the Council are elected at-large. The City of Lake Elmo provides a full range of Services including fire protection services, construction and maintenance of streets and infrastructure; recreational facilities; and water, sanitary sewer and storm water utility services. The City contracts with the Washington County Sheriff’s Department for police services. The annual budget serves as the foundation for the City of Lake Elmo’s financial management and fiscal stewardship. City departments and agencies of the City submit their requested budget to the City Administrator and the Finance Director in order to compile a preliminary balanced budget for submission to the City Council. The preliminary balanced budget is presented to the City Council in September each year so that the preliminary property tax levy can be submitted to Washington County by the annual due date. The preliminary property tax levy may be decreased but not increased. The 2021 Adopted Budget and final property tax levy was required to be adopted by and submitted to Washington County by December 28, 2020. Included in the City annual budget process is the compilation of a Capital Improvement Plan which allows for strategic planning of City infrastructure and equipment needs while maintaining a reasonable level of debt and a strong unassigned fund balance. Quarterly budget to actual comparison reports are provided to the City Council to keep them apprised of the financial performance of the City. FACTORS AFFECTING FINANCIAL 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 of Lake Elmo operates. 4 LOCAL ECONOMY Lake Elmo is home to numerous businesses that are leaders in their respective industries. New residential developments platted since 2014 numbering approximately 2,871 have been approved. In 2021 and early 2022, the City continued to see increased residential and commercial growth and entered into several new development agreements:  Easton Village 7th addition – 26 New Single-Family Homes  Wildflower 4th addition – 41 New Single-Family Homes  Legacy at North Star 4th addition – 62 New Single-Family Homes  Union Park West 1st addition – 102 New Townhomes  Union Park West 2nd addition – 71 New Townhomes  Launch Properties and Crossroads Properties – Two-building business park  Enterprise Holdings – sale and rentals of vehicles Further, several projects have been fully completed in 2021:  Boulder Ponds 3rd addition – 33 New Single-Family Homes  Boulder Ponds 4th addition – 95 Senior Assisted Living Units  Lake Elmo Senior Living (Independent Living) – 42-unit Senior Living three-story apartment building and 18 Patio Homes (9 buildings) The City’s highway infrastructure continues to make Lake Elmo a desirable residential location. Rapid growth is further reflected in 2020 population estimates of 12,655, or an increase of 57%, since the 2010 census. New housing starts in 2021 numbered 297 with a total value of $128,265,000 and an average value of $431,872. There were 5 new Commercial construction projects in 2021, and a number of remodels and expansions. All these new starts have been built in 2021 or will be finished in 2022, which will greatly strengthen the existing tax base of the City. LONG TERM FINANCIAL PLANNING Total unassigned General Fund balance as of December 31, 2021 was 78% of the next year’s general fund expenditures and other financing uses. Although the State Auditor recommends maintaining a level of 35% - 50%, the City has consistently exceeded that rate, showing the City’s financial strength. The City’s 5-year Capital Improvement Plan serves as the foundation for long-term financial planning. Funding needs for capital replacements are reflected in tax levies for the street renewal and general fund asset replacements. Funding needs for capital infrastructure in the enterprise funds are funded through user fees in those funds. During 2017, Moody’s Investors Service increased the City’s long-term debt rating of AA+, and reaffirmed this rating in 2020 and 2021. In their assessment of the City, Moody’s noted the following:  Wealthy tax base favorably located in the Twin Cities metropolitan area with strong resident incomes  Strong financial operations supported by ample reserves and liquidity  Low pension burden 5 Projections for the next 5 years indicate that property tax contributions, user fees and investment income will continue to grow based on planned development and expansion within the City. RELEVANT FINANCIAL POLICIES Trends of the past decade, changes in state tax law, and recent legislation indicate that the City will have a greater reliance on property taxes as a source of financing for city operations in the future and less reliance on the intergovernmental revenues (federal and state) and building permit fees. Changes in state tax law over the past decade have resulted in funding changes for both schools and local governments. The elimination of the homestead and agricultural credit aids program, and large cuts in both local government aid and the market value homestead credit programs resulted in revenue losses to the City. In addition, as the City continues toward full development, we anticipate future decreases in building permit revenues. MAJOR INITIATIVES 2021 was again an extremely robust year for the City due to continuation of on-going infrastructure upgrades, projects, and oversight of on-going residential and commercial development activity. Some of the 2021 infrastructure projects included the following:  Construction of a New City Center was approved and began in 2021. The New City Center consists of a combined City Hall & Public Safety Facility. The new facility combines City Hall staff and functions, the entire Fire Department, and a satellite office for Washington County Sheriff’s department. This co-location involves renovating and expanding the City-owned Brookfield Office building to concentrate civic resources into a single structure at the historic core of the City. In addition, the Public Works facility will also be expanded to accommodate City growth and expanded service needs. The project is expected to be completed Spring of 2023.  The Old Village Improvement project on phases V & VI of the project were under construction in 2021. The projects cover full reconstruction of the streets as well as upgrading the existing water system and installation of a new sewer system and storm water drainage system.  Heritage Farms Street and Utility Improvements to reconstruct approximately 1.2 miles of residential streets and install a new sanitary sewer main.  The City began work on several expedited watermain projects to bring water to neighborhoods with PFAS contamination at no cost to the City or residents due to grants from the MPCA. These projects include watermain extensions, road construction and in some cases the extension of sewer. Sewer costs of the project will be assessed 100% to the benefitting property owners.  Well #5 Pumphouse in Tana Ridge Park was completed.  A stoplight was installed at Inwood Ave and 5th Street to improve safety of the intersection as growth and development continue in the residential and commercial properties in the area.  Use of Parkland dedication fees to continue to make improvements to existing and new parks. 6 AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to the City again for the fiscal year ending December 31, 2020. This certificate is a prestigious national award recognizing conformance with the highest standards for preparation for state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to program standards. Such reports must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A certificate is valid for one year only. The City of Lake Elmo is pleased to present its Annual Comprehensive Financial Report, which will be submitted to the Government Finance Officers Association (GFOA) for consideration of a Certificate of Achievement for Excellence in Financial Reporting for its financial reports for the fiscal year ended December 31, 2021. The preparation of this report would not have been possible without the efficient and dedicated services of the personnel of the City of Lake Elmo. Further, we would like to express our appreciation to all members of the organization who assisted in contributing to the preparation of the report. Credit must also be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of management of the City of Lake Elmo’s finances. Respectfully submitted, Kristina Handt Sam Magureanu City Administrator Finance Director 7 - This page intentionally left blank - 8 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lake Elmo Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 Executive Director/CEO 9 - This page intentionally left blank - 10 CITY OF LAKE ELMO, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2021 Term Expires Mayor: Charles Cadenhead December 31, 2025 Councilmembers: Dale Dorschner January 2, 2023 Lisa McGinn January 2, 2023 Jeff Holtz January 1, 2025 Katrina Beckstrom January 1, 2025 Appointed Officials City Administrator:Kristina Handt Appointed Finance Director:Sam Magureanu Appointed City Clerk:Julie Johnson Appointed 11 =Ci�zen Appointees =Contractor Rela�onship Public Works Operators Public Works Director Fire Chief Planner Building Inspector (2)Accountant Deputy Clerk Lead Worker Assistant Chief CaptainsInternPermit Technician Assessor Intern U�lity Billing Clerk Ci�zens of Lake Elmo City Administrator City A�orney Sheriff's Office - Sergeant (1) - Deputy (4) Park Commission Economic Development Authority Commissions Commi�ees Seasonal Public Works FireFighters (POC, PT) City Engineer ORGANIZATION CHART 202 Planning Director Building Official Finance Director Assistant Administrator City Clerk Capital Improvement Committee Planning Commission City Council Fire Inspector /Lieutenant 12 FINANCIAL SECTION 13 - This page intentionally left blank - 14 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Lake Elmo, Minnesota Report on the Audit of the Financial Statements Opinions 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 of Lake Elmo, Minnesota, as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City of Lake Elmo, Minnesota's basic financial statements as listed in the table of contents. In our opinion, the accompanying 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 of Lake Elmo, Minnesota, as of December 31, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof 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 (GAAS) 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 of Lake Elmo, Minnesota 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. 15 Report on Summarized Comparative Information We have previously audited the City of Lake Elmo, Minnesota’s 2020 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated June 4, 2021. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2020 is consistent, in all material respects, with the audited financial statements from which it has been derived. 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 of Lake Elmo, Minnesota’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 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 GAAS 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. 16 In performing an audit in accordance with GAAS and Governmental 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 of Lake Elmo, Minnesota'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 of Lake Elmo, Minnesota'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, the budgetary comparison schedule, and the schedules of OPEB and pension information, 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 required supplementary information 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. 17 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lake Elmo, Minnesota's basic financial statements. The combining and individual nonmajor fund financial statements are presented for purposes 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 combining and individual nonmajor fund financial statements are 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. 18 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2022 on our consideration of the City of Lake Elmo, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 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 of Lake Elmo, Minnesota'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 of Lake Elmo, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 14, 2022 19 - This page intentionally left blank - 20 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Lake Elmo, Minnesota (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $130,891,464 (net position). Of this amount, $31,990,087 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City’s total net position increased by $24,791,436. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $30,410,931, an increase of $18,227,180. Of this amount, $17,458,949 is restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. At the end of the current fiscal year, the General Fund balance was $5,618,812. Unassigned fund balance for the General Fund was $5,618,812, or 78% of the next year’s total General Fund expenditures and other financing uses. Total outstanding debt increased by $14,519,000 during 2021. The increase is a result of the City issuing the 2021A G.O. Improvement, CIP, and Refunding Bonds. The Bonds were issued in order to finance a number of projects from the 2021-2025 CIP. Projects include the New City Center and Public Works Addition, Heritage Farms Street and Utility, Tamarack Farms Street, Hamlet on Sunfish Lake Sewer, Old Village 5 and 6. Further, the bonds refunded the 2018A bonds, which were issued to pay for the purchase of the Brookfield building, and refinancing the water and sewer portion of the 2013A bonds. The City used cash to pre-pay the street portion of the 2013A bonds and only refinanced the water and sewer portions of the bond. 21 Management’s Discussion and Analysis Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the net amount reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, culture and recreation, and economic development. The business-type activities of the City include water, sewer and storm sewer utilities. The government-wide financial statements are statements 1 and 2 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on 22 Management’s Discussion and Analysis balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures and change in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains six individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balance for the following major funds:  General Fund  Debt Service  Park Dedication  Vehicle Acquisition  Heritage Farms Street & Utility Improvements  City Hall/Fire Station Building Project Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with its budget. The basic governmental fund financial statements are statements 3 through 6 of this report. Proprietary funds. The City maintains three enterprise funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer and storm sewer utilities. The proprietary fund statements provide the same type of information as the government- wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sewer and storm sewer funds, which are considered to be major funds of the City. The basic proprietary fund financial statements are statements 7 through 9 of this report. 23 Management’s Discussion and Analysis Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government–wide and fund financial statements. The notes to the financial statements can be found following Statement 9. Other information. The combining statements referred to earlier in connection with non- major governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements are presented as Statements 18 through 25. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $130,891,464 at the close of the most recent fiscal year. The largest portion of the City’s net position ($88,652,285, or 68%) reflects its net investment in capital assets (e.g. land, buildings, equipment, and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Lake Elmo’s Net Position 2021 2020 2021 2020 2021 2020 Assets: Current and other assets $39,470,683 $18,815,135 $21,461,986 $20,448,133 $60,932,669 $39,263,268 Capital assets 52,689,633 45,484,720 77,034,129 64,643,579 129,723,762 110,128,299 Total assets 92,160,316 64,299,855 98,496,115 85,091,712 190,656,431 149,391,567 Deferred outflows of resources 823,855 389,102 153,623 41,513 977,478 430,615 Liabilities: Long-term liabilities outstanding 29,274,372 17,125,639 23,095,670 20,453,002 52,370,042 37,578,641 Other liabilities 5,450,707 3,996,027 1,602,968 1,717,425 7,053,675 5,713,452 Total liabilities 34,725,079 21,121,666 24,698,638 22,170,427 59,423,717 43,292,093 Deferred inflows of resources 1,123,890 417,445 194,838 12,616 1,318,728 430,061 Net position: Net investment in capital assets 34,784,806 29,694,288 53,867,479 44,371,375 88,652,285 74,065,663 Restricted 10,249,092 8,171,161 - - 10,249,092 8,171,161 Unrestricted 12,101,304 5,284,397 19,888,783 18,578,807 31,990,087 23,863,204 Total net position $57,135,202 $43,149,846 $73,756,262 $62,950,182 $130,891,464 $106,100,028 Governmental Activities Business-Type Activities Totals 24 Management’s Discussion and Analysis $10,249,092 of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($31,990,087) may be used to meet ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. Governmental Activities Net position of governmental activities increased $13,985,356 during the year. The primary reasons for the increase were developer contributed infrastructure in the amount of $4,861,037, as well as a $5,250,000 transfer from Business-Type Activities to the City Center Capital Project fund. This transfer represents the water and sewer contributions to the City Center Project. Other factors that contributed to the change in net positions included increased revenues from services, operating grants and contributions and general property tax revenue. Business-Type Activities Net position of business-type activities increased $10,806,080 during the year. The most significant reason for the increase was developer contributed infrastructure in the amount of $4,919,108. The City also received $4,102,200 of connection charge revenue, for which the offsetting expense is recognized in future years as depreciation expense. Other factors that contributed to the change in net position included intergovernmental revenues for $7,006,533. These were mostly related to reimbursements from the State in relation to the 3M grant for water infrastructure. Lastly, as noted above, transfers for $5,250,000 were done during the year to contribute to the City Center Capital Project fund. 25 Management’s Discussion and Analysis City of Lake Elmo’s Changes in Net Position 2021 2020 2021 2020 2021 2020 Revenues: Program revenues: Charges for services $2,847,821 $2,901,761 $2,773,787 $2,041,676 $5,621,608 $4,943,437 Operating grants and contributions 279,690 1,039,823 35,635 21,893 315,325 1,061,716 Capital grants and contributions 8,981,866 4,823,628 18,326,363 15,636,661 27,308,229 20,460,289 General revenues: General property taxes 5,294,950 4,960,342 - - 5,294,950 4,960,342 Grants and contributions not restricted to specific programs 4,639 4,337 - - 4,639 4,337 Unrestricted investment earnings (loss) (13,874) 348,766 (20,945) 286,350 (34,819) 635,116 Gain on disposal of assets 17,300 13,805 - - 17,300 13,805 Transfers 5,250,000 - (5,250,000) - - - Total revenues 22,662,392 14,092,462 15,864,840 17,986,580 38,527,232 32,079,042 Expenses: General government 1,052,188 1,008,916 - - 1,052,188 1,008,916 Public safety 3,091,321 2,681,784 - - 3,091,321 2,681,784 Public works 3,735,767 4,012,661 - - 3,735,767 4,012,661 Culture and recreation 391,240 428,083 - - 391,240 428,083 Economic development authority 53,264 46,371 - - 53,264 46,371 Interest on long-term debt 353,256 363,988 - - 353,256 363,988 Water - - 2,665,708 2,383,252 2,665,708 2,383,252 Sewer - - 1,563,008 1,481,586 1,563,008 1,481,586 Storm sewer - - 830,044 753,177 830,044 753,177 Total expenses 8,677,036 8,541,803 5,058,760 4,618,015 13,735,796 13,159,818 Change in net position 13,985,356 5,550,659 10,806,080 13,368,565 24,791,436 18,919,224 Net position - January 1 43,149,846 37,599,187 62,950,182 49,581,617 106,100,028 87,180,804 Net position - December 31 $57,135,202 $43,149,846 $73,756,262 $62,950,182 $130,891,464 $106,100,028 Business-Type Activities TotalsGovernmental Activities 26 Management’s Discussion and Analysis Governmental Activities Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: 27 Management’s Discussion and Analysis Business-Type Activities Below are specific graphs which provide comparisons of the business-type activities revenues and expenses: 28 Management’s Discussion and Analysis Financial Analysis of the Government's Funds Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $30,410,931. Approximately 57%, or $17,458,949, of this total amount constitutes fund balance restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. $0 of fund balance is not in a spendable form, $7,673 has been committed, $7,571,501 has been assigned, and $5,372,808 is unassigned. The fund balance of the General Fund increased by $385,171 in 2021, while the City anticipated no change in General Fund balance. The primary reason for the increase was caused by a net positive variance of revenues over expenditures of $1,084,653, which is $793,907 more than budgeted. Licenses and permits exceeded budgets by $472,158 and charges for services by $306,711. The positive variance was reduced by actual transfers exceeding budgeted transfers by $408,736. A large portion of budgeted transfers included a $260,746 transfer to the Vehicle Acquisition fund, and $378,736 of unbudgeted transfers to the Village Project capital project fund. This transfer was approved during the year by council in order to close down the fund and remove the fund deficit. The Debt Service fund balance decreased by $662,636 primarily relating to the early prepayment of the street portion of the 2013A G.O. Improvement Bond for $957,816. This large expenditure was offset by $478,300 revenues collected from special assessment prepayments in relation to the 2021 CIP projects, funded with special assessments. Other factors that contributed related to debt service payments that were higher than the collected revenues from property taxes and special assessments. The Park Dedication fund balance increased by $1,830,367. This increase was the result of park dedication fees collected from developers during the year. One large collection for $1,000,000 was collected from one developer, Royal Golf 3rd Addition, and is restricted for Ballfields improvements. The Vehicle Acquisition fund balance decreased by $158,068. During the year, the City incurred a total of $429,779 of capital outlay expenditures within the fund, $319,895 for the purchase of equipment and vehicles for public safety. One large purchase for $259,558 for a Tender and $57,372 for a public safety vehicle CV1 – Chevrolet Tahoe. Additionally, $109,884 were spent for public works department for the acquisition of a Mack Plow Truck. The expenditures above were partially offset by budgeted transfers from the General Fund for $260,746. 29 Management’s Discussion and Analysis The Heritage Farms Street & Utility Improvements fund balance increased by $295,817. This increase was a result of capital outlay activity within the fund for $2,143,893. These expenditures were offset with proceeds from the 2021A bond issuance for $2,439,248. This project is expected to be completed in 2022. The City Hall/Fire Station Building Project fund balance increased by $15,232,743. This increase was the result of proceeds from the 2021A bond issuance. The total amount of bond proceeds for the project were $10,539,438. Additionally, $5,250,000 of contributions were transferred in to the fund from the water and sewer funds. The combined fund balance of other governmental funds increased $1,303,786 during 2021. The primary reason for the increase relates to proceeds from the 2021A bond issuance to finance the 2021 CIP capital projects, including $3,030,460 of proceeds. These were offset by public works capital outlay activity within the capital funds for $1,717,634. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The water fund has total net position at year-end of $40,073,644, of which $4,723,160 is unrestricted. The increase in net position of $6,422,372 was primarily due to capital contributions of $1,837,010, intergovernmental revenues of $7,006,533 and $2,104,200 of connection charges. The increase was partially offset by a transfer to the City Center project fund for $3,750,000. The sewer fund has total net position at year-end of $22,485,630, of which $13,709,112 is unrestricted. The increase in net position of $3,097,469 was primarily due to capital contributions of $1,476,603, connection charges of $1,998,000 and special assessments of $2,143,642. The increase was partially offset by a transfer to the City Center project fund for $1,500,000. The storm sewer fund has total net position at year-end of $11,196,988, of which $1,456,511 is unrestricted. The increase in net position of $1,286,239 was due to capital contributions of $1,605,495. The increase was partially offset by a net operating loss and interest and fees on long-term debt. Budgetary Highlights General Fund The General Fund budget was not amended during the year. The City budgeted for no change in fund balance, while the actual increase in fund balance was $385,171. Revenues were $828,833 over budget for the year. This was mainly due to licenses and permits, which were over budget by $472,158 and charges for services, which were over budget by $306,711. 30 Management’s Discussion and Analysis Expenditures came in over budget by $34,926. Building inspection expenditures were over budget by $305,378. The large variance from budget related to inspector contracted services being over budget by $450,630. This was partially offset by a positive variance from budget for $122,629 from personal services for building inspection, and an additional positive variance from budget for public works for $108,627 in personal services. Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business- type activities as of December 31, 2021, amounted to $129,723,762 (net of accumulated depreciation), an increase of $19,595,463 from the prior year. This investment in capital assets includes land, construction in progress, buildings, other improvements, machinery and equipment, and infrastructure. A large portion of the increase, $9,780,145, is due to 2021 capital contributions from private sources. Further, the City substantially completed the Old Village Phase 5 & 6, Heritage Farms Street & Utility Improvement, and Tamarack Farm Estates Street Improvements. Additionally, projects that were funded with the 3M state grants for water infrastructure, such as, 38th/39th Street & Innsdale were also substantially completed. Lastly, the City began preliminary work on the new City Center, with an expected completion date of 2023. City of Lake Elmo’s Capital Assets (Net of Depreciation) 2021 2020 2021 2020 2021 2020 Land $3,453,979 $3,453,979 $3,668,869 $3,668,869 $7,122,848 $7,122,848 Construction in progress 4,903,907 637,739 9,961,990 5,843,234 14,865,897 6,480,973 Buildings 2,994,635 3,084,801 - - 2,994,635 3,084,801 Other improvements 1,444,544 1,546,483 - - 1,444,544 1,546,483 Machinery and equipment 2,905,174 2,811,392 138,668 168,092 3,043,842 2,979,484 Infrastructure 36,987,394 33,950,326 63,264,602 54,963,384 100,251,996 88,913,710 Total $52,689,633 $45,484,720 $77,034,129 $64,643,579 $129,723,762 $110,128,299 Governmental Activities Business-Type Activities Totals Additional information on the City’s capital assets can be found in Note 5 to the financial statements. 31 Management’s Discussion and Analysis Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $49,655,000, an increase of $14,519,000, which was the amount of principal retired during the year. City of Lake Elmo’s Outstanding Debt 2021 2020 2021 2020 2021 2020 G.O. Improvement bonds $26,705,000 $13,695,000 $22,195,000 $19,710,000 $48,900,000 $33,405,000 G.O. Equipment certificates 755,000 850,000 - - 755,000 850,000 Taxable lease revenue bonds - 881,000 - - - 881,000 Total $27,460,000 $15,426,000 $22,195,000 $19,710,000 $49,655,000 $35,136,000 Business-Type Activities TotalsGovernmental Activities Additional information on the City’s long-term debt can be found in Note 6 to the financial statements. Requests for information. This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Lake Elmo, 3880 Laverne Ave N, Suite 100, Lake Elmo, Minnesota, 55042. 32 BASIC FINANCIAL STATEMENTS 33 - This page intentionally left blank - 34 CITY OF LAKE ELMO, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2021 With Comparative Totals For December 31, 2020 Governmental Business-Type Activities Activities 2021 2020 Assets: Cash and investments $35,612,736 $15,974,639 $51,587,375 $31,751,728 Accrued interest receivable 22,144 15,119 37,263 68,954 Due from other governmental units 10,709 665,541 676,250 790,668 Accounts receivable - net 2,635 777,087 779,722 749,614 Prepaid items - - - 573,239 Property taxes receivable 101,050 - 101,050 99,649 Special assessments receivable 3,215,987 4,029,600 7,245,587 4,856,343 Net pension asset 505,422 - 505,422 373,073 Capital assets - nondepreciable 8,357,886 13,630,859 21,988,745 13,603,821 Capital assets - net of accumulated depreciation 44,331,747 63,403,270 107,735,017 96,524,478 Total assets 92,160,316 98,496,115 190,656,431 149,391,567 Deferred outflows of resources related to pensions 823,855 153,623 977,478 430,615 Liabilities: Accounts payable 948,763 256,195 1,204,958 588,573 Due to other governmental units - 20,401 20,401 234,894 Salaries and benefits payable 54,247 12,737 66,984 59,174 Contracts and retainage payable 124,102 324,991 449,093 166,838 Deposits payable 3,145,755 - 3,145,755 3,232,294 Accrued interest payable 156,834 159,644 316,478 381,450 Unearned revenue 1,021,006 829,000 1,850,006 1,050,230 Compensated absences payable: Due within one year 64,280 21,255 85,535 102,812 Due in more than one year 21,427 7,085 28,512 34,271 Bonds payable: Due within one year 1,870,000 1,345,000 3,215,000 3,452,000 Due in more than one year 26,454,553 21,496,659 47,951,212 32,443,798 Other postemployment benefits: Due in more than one year 80,792 18,997 99,789 79,303 Net pension liability: Due in more than one year 783,320 206,674 989,994 1,466,456 Total liabilities 34,725,079 24,698,638 59,423,717 43,292,093 Deferred inflows of resources related to pensions 1,123,890 194,838 1,318,728 430,061 Net position: Net investment in capital assets 34,784,806 53,867,479 88,652,285 74,065,663 Restricted for: Fire Relief Association pension plan 360,513 - 360,513 272,554 Debt service 6,864,359 - 6,864,359 6,620,135 Park improvements 3,024,220 - 3,024,220 1,193,853 Street improvements - - - 84,619 Unrestricted 12,101,304 19,888,783 31,990,087 23,863,204 Total net position $57,135,202 $73,756,262 $130,891,464 $106,100,028 Primary Government Total The accompanying notes are an integral part of these financial statements. 35 CITY OF LAKE ELMO, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $1,052,188 $485,785 Public safety 3,091,321 2,199,655 Public works 3,735,767 104,817 Culture and recreation 391,240 25 Economic development authority 53,264 57,539 Interest and fees on long-term debt 353,256 - Total governmental activities 8,677,036 2,847,821 Business-type activities: Water 2,665,708 1,711,596 Sewer 1,563,008 549,567 Storm sewer 830,044 512,624 Total business-type activities 5,058,760 2,773,787 Total primary government $13,735,796 $5,621,608 The accompanying notes are an integral part of these financial statements. 36 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2021 2020 $30,078 $26,668 ($509,657) $ - ($509,657) ($530,776) 83,160 - (808,506) - (808,506) 261,619 163,776 7,109,827 3,642,653 - 3,642,653 513,035 2,676 1,845,371 1,456,832 - 1,456,832 302,112 - - 4,275 - 4,275 41,407 - - (353,256) - (353,256) (363,988) 279,690 8,981,866 3,432,341 0 3,432,341 223,409 35,635 11,102,421 - 10,183,944 10,183,944 7,823,058 - 5,618,245 - 4,604,804 4,604,804 3,353,785 - 1,605,697 - 1,288,277 1,288,277 1,905,372 35,635 18,326,363 0 16,077,025 16,077,025 13,082,215 $315,325 $27,308,229 3,432,341 16,077,025 19,509,366 13,305,624 General revenues: General property taxes 5,294,950 - 5,294,950 4,960,342 Grants and contributions not restricted to specific programs 4,639 - 4,639 4,337 Unrestricted investment earnings (loss)(13,874)(20,945) (34,819) 635,116 Gain on disposal of capital assets 17,300 - 17,300 13,805 Transfers 5,250,000 (5,250,000) - - Total general revenues and transfers 10,553,015 (5,270,945) 5,282,070 5,613,600 Change in net position 13,985,356 10,806,080 24,791,436 18,919,224 Net position - January 1 43,149,846 62,950,182 106,100,028 87,180,804 Net position - December 31 $57,135,202 $73,756,262 $130,891,464 $106,100,028 Program Revenues Net (Expense) Revenue and Changes in Net Position - Primary Government Total The accompanying notes are an integral part of these financial statements. 37 CITY OF LAKE ELMO, MINNESOTA BALANCE SHEET Statement 3 GOVERNMENTAL FUNDS December 31, 2021 Heritage Farms City Hall / Debt Park Vehicle Street & Utility Fire Station Other General Fund Service Dedication Acquisition Improvements Bldg Project Governmental (101) (300s) (404) (410) (434) (437) Funds Assets 2021 2020 Cash and investments $9,577,831 $3,886,866 $3,022,945 $1,557,696 $234,866 $15,229,837 $2,102,695 $35,612,736 $15,760,221 Accrued interest receivable 7,576 2,696 2,155 925 167 7,115 1,510 22,144 36,118 Due from other governmental units 10,709 - - - - - - 10,709 3,305 Accounts receivable - net 2,635 - - - - - - 2,635 131,664 Prepaid items - - - - - - - - 21,206 Due from other funds 222,457 - - - - - - 222,457 1,497,284 Property taxes receivable: Due from county 54,832 - - - - - - 54,832 44,828 Delinquent 46,218 - - - - - - 46,218 54,821 Special assessments receivable: Due from county 409 1,339 - - - - - 1,748 1,055 Delinquent 66,114 708 - - - - - 66,822 1,892 Deferred - 3,129,584 - - - - 17,833 3,147,417 2,254,603 Total assets $9,988,781 $7,021,193 $3,025,100 $1,558,621 $235,033 $15,236,952 $2,122,038 $39,187,718 $19,806,997 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $859,436 $ - $880 $406 $7,171 $16,786 $64,084 $948,763 $258,815 Salaries and benefits payable 54,247 - - - - - - 54,247 52,307 Contracts and retainage payable - - - - 95,911 - 28,191 124,102 - Due to other funds - - - - - - 222,457 222,457 1,497,284 Deposits payable 3,070,755 - - - - - 75,000 3,145,755 3,232,294 Unearned revenue 273,199 - - - - - 747,807 1,021,006 271,230 Total liabilities 4,257,637 0 880 406 103,082 16,786 1,137,539 5,516,330 5,311,930 Deferred inflows of resources: Unavailable revenue 112,332 3,130,292 - - - - 17,833 3,260,457 2,311,316 Fund balance: Nonspendable - - - - - - - - 21,206 Restricted - 3,890,901 3,024,220 - 131,951 9,963,112 448,765 17,458,949 5,814,832 Committed - - - - - - 7,673 7,673 7,691 Assigned - - - 1,558,215 - 5,257,054 756,232 7,571,501 2,653,503 Unassigned 5,618,812 - - - - - (246,004) 5,372,808 3,686,519 Total fund balance 5,618,812 3,890,901 3,024,220 1,558,215 131,951 15,220,166 966,666 30,410,931 12,183,751 Total liabilities, deferred inflowsof resources, and fund balance $9,988,781 $7,021,193 $3,025,100 $1,558,621 $235,033 $15,236,952 $2,122,038 $39,187,718 $19,806,997 With Comparative Totals For December 31, 2020 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 38 CITY OF LAKE ELMO, MINNESOTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4 FUNDS TO THE STATEMENT OF NET POSITION December 31, 2021 With Comparative Totals For December 31, 2020 2021 2020 Fund balance - total governmental funds (Statement 3) $30,410,931 $12,183,751 Net position reported for governmental activities in the Statement of Net Position is different because: Certain assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. Capital assets 52,689,633 45,484,720 Net pension asset 505,422 373,073 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable revenue in the funds: Delinquent taxes receivable 46,218 54,821 Delinquent special assessments receivable 66,822 1,892 Deferred special assessments receivable 3,147,417 2,254,603 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Long-term liabilities at year end consist of: Bonds payable (27,460,000) (15,426,000) Unamortized bond premiums (864,553) (364,432) Accrued interest payable (156,834) (181,381) Compensated absences payable (85,707) (109,369) Other postemployment benefits (80,792) (65,397) Net pension liability (783,320) (1,160,441) Deferred outflows and inflows of resources related to pensions are associated with long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds. Balances at year end are: Deferred outflows of resources 823,855 521,451 Deferred inflows of resources (1,123,890) (417,445) Net position of governmental activities (Statement 1) $57,135,202 $43,149,846 The accompanying notes are an integral part of these financial statements. 39 CITY OF LAKE ELMO, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND Statement 5 CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 Heritage Farms City Hall / Debt Park Vehicle Street & Utility Fire Station Other General Fund Service Dedication Acquisition Improvements Bldg Project Governmental (101) (300s) (404) (410)(434)(437)Funds Revenues:2021 2020 General property taxes $3,865,164 $1,438,389 $ - $ - $ - $ - $ - $5,303,553 $4,947,133 Licenses and permits 1,485,658 - - - - - - 1,485,658 1,425,695 Intergovernmental 267,180 - - - - - 454,948 722,128 1,023,193 Charges for services 1,064,375 - - - - - 87,539 1,151,914 1,273,241 Fines and forfeits 45,749 - - - - - - 45,749 33,584 Special assessments 930 861,836 - - - - - 862,766 474,099 Park dedication fees - - 1,845,371 - - - - 1,845,371 714,558 Investment income (loss)(13,605) (19,864) 6,337 (6,335)462 19,631 (500) (13,874) 348,766 Miscellaneous 177,000 - - - - - - 177,000 183,711 Total revenues 6,892,451 2,280,361 1,851,708 (6,335)462 19,631 541,987 11,580,265 10,423,980 Expenditures: Current: General government 1,056,983 - - - - - - 1,056,983 1,009,543 Public safety 3,003,677 - - - - - - 3,003,677 2,641,770 Public works 1,488,448 - - - - - - 1,488,448 1,489,081 Culture and recreation 258,690 - - - - - - 258,690 310,066 Economic development authority - - - - - - 53,264 53,264 46,371 Capital outlay: General government - - - - - 576,326 26,668 602,994 - Public safety - - - 319,895 - - - 319,895 297,090 Public works - - 21,341 109,884 2,143,893 - 1,717,634 3,992,752 1,549,753 Debt service: Principal - 2,760,000 - - - - 881,000 3,641,000 1,790,000 Interest and fiscal charges - 364,408 - - - - 61,389 425,797 420,299 Total expenditures 5,807,798 3,124,408 21,341 429,779 2,143,893 576,326 2,739,955 14,843,500 9,553,973 Revenues over (under) expenditures 1,084,653 (844,047) 1,830,367 (436,114) (2,143,431) (556,695) (2,197,968) (3,263,235) 870,007 Other financing sources (uses): Transfers in - 113,792 - 260,746 - 5,250,000 508,182 6,132,720 1,900,244 Transfers out (699,482) - - - - - (183,238) (882,720) (1,900,244) Issuance of debt - 67,619 - - 2,332,995 10,243,926 3,030,460 15,675,000 - Bond premium - - - - 106,253 295,512 146,350 548,115 - Proceeds from sale of capital assets - - - 17,300 - - - 17,300 13,805 Total other financing sources (uses)(699,482) 181,411 0 278,046 2,439,248 15,789,438 3,501,754 21,490,415 13,805 Net change in fund balance 385,171 (662,636) 1,830,367 (158,068) 295,817 15,232,743 1,303,786 18,227,180 883,812 Fund balance - January 1 5,233,641 4,553,537 1,193,853 1,716,283 (163,866) (12,577) (337,120) 12,183,751 11,299,939 Fund balance - December 31 $5,618,812 $3,890,901 $3,024,220 $1,558,215 $131,951 $15,220,166 $966,666 $30,410,931 $12,183,751 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 40 CITY OF LAKE ELMO, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 6 EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 2021 2020 Net change in fund balance - total governmental funds (Statement 5) $18,227,180 $883,812 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Depreciation (2,557,696) (2,294,552) Capital outlay 4,915,641 1,846,843 Capital outlay not capitalized (14,069) (525,221) Various other transactions involving capital assets increase (decrease) net position on the Statement of Activities, but are not reported in governmental funds because they do not provide (or use) current financial resources: Contributions of infrastructure from private sources 4,861,037 3,937,057 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Change in delinquent taxes receivable (8,603) 13,209 Change in delinquent special assessments receivable 64,930 (1,071) Change in deferred special assessments receivable 892,814 (301,015) The issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effects of bond premiums and discounts when the debt is first issued, whereas amounts are deferred and amortized over the life of the debt in the Statement of Activities. Bonds issued (15,675,000) - Premium on bonds issued (548,115) - Repayment of principal 3,641,000 1,790,000 Amortization of bond premiums 47,994 47,993 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Expenses reported in the Statement of Activities include the effects of the changes in these expense accruals as follows: Change in accrued interest payable 24,547 8,318 Change in compensated absences payable 23,662 (46,621) Change other post employment benefits liability (15,395) (4,081) Governmental funds report pension contributions as expenditures, however pension expense is reported in the Statement of Activities. This is the amount by which pension expense differed from pension contributions. 105,429 195,988 Change in net position of governmental activities (Statement 2) $13,985,356 $5,550,659 The accompanying notes are an integral part of these financial statements. 41 CITY OF LAKE ELMO, MINNESOTA STATEMENT OF NET POSITION Statement 7 PROPRIETARY FUNDS December 31, 2021 Storm Water (601) Sewer (602) Sewer (603) 2021 2020 Assets: Current assets: Cash and investments $4,820,465 $10,092,392 $1,061,782 $15,974,639 $15,991,507 Accrued interest receivable 6,103 8,259 757 15,119 32,836 Due from other governmental units 665,541 - - 665,541 787,363 Accounts receivable - net 216,168 141,113 419,806 777,087 617,950 Prepaid items - - - - 419,684 Total current assets 5,708,277 10,241,764 1,482,345 17,432,386 17,849,340 Noncurrent assets: Special assessments receivable 316,158 3,672,068 41,374 4,029,600 2,598,793 Capital assets: Land 3,668,869 - - 3,668,869 3,668,869 Construction in progress 6,908,569 3,053,421 - 9,961,990 5,843,234 Machinery and equipment 340,696 73,003 - 413,699 413,699 Infrastructure 44,483,712 19,219,271 14,128,874 77,831,857 66,599,944 Total capital assets 55,401,846 22,345,695 14,128,874 91,876,415 76,525,746 Less: Allowance for depreciation (9,796,976) (3,322,887) (1,722,423) (14,842,286) (11,882,167) Net capital assets 45,604,870 19,022,808 12,406,451 77,034,129 64,643,579 Total assets 51,629,305 32,936,640 13,930,170 98,496,115 85,091,712 Deferred outflows of resources related to pensions 94,261 38,175 21,187 153,623 41,513 Liabilities: Current liabilities: Accounts payable 203,214 52,072 909 256,195 329,758 Due to other governmental units 97 20,304 - 20,401 234,894 Salaries and benefits payable 8,007 3,133 1,597 12,737 6,867 Contracts and retainage payable 224,643 100,348 - 324,991 166,838 Accrued interest payable 78,721 56,149 24,774 159,644 200,069 Unearned revenue 829,000 - - 829,000 779,000 Compensated absences payable - current portion 14,238 4,774 2,243 21,255 20,785 Bonds payable - current portion 825,000 315,000 205,000 1,345,000 1,455,000 Total current liabilities 2,182,920 551,780 234,523 2,969,223 3,193,211 Noncurrent liabilities: Compensated absences payable - noncurrent portion 4,746 1,591 748 7,085 6,929 Bonds payable - noncurrent portion 9,204,743 9,830,942 2,460,974 21,496,659 18,650,366 Other postemployment benefits 11,151 5,096 2,750 18,997 13,906 Net pension liability 126,812 51,359 28,503 206,674 306,015 Total noncurrent liabilities 9,347,452 9,888,988 2,492,975 21,729,415 18,977,216 Total liabilities 11,530,372 10,440,768 2,727,498 24,698,638 22,170,427 Deferred inflows of resources related to pensions 119,550 48,417 26,871 194,838 12,616 Net position: Net investment in capital assets 35,350,484 8,776,518 9,740,477 53,867,479 44,371,375 Unrestricted 4,723,160 13,709,112 1,456,511 19,888,783 18,578,807 Total net position $40,073,644 $22,485,630 $11,196,988 $73,756,262 $62,950,182 With Comparative Totals For December 31, 2020 Business-Type Activities - Enterprise Funds Total The accompanying notes are an integral part of these financial statements. 42 CITY OF LAKE ELMO, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 8 PROPRIETARY FUNDS For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 Storm Water (601) Sewer (602) Sewer (603) 2021 2020 Operating revenues: Charges for services $1,538,316 $539,130 $457,517 $2,534,963 $1,720,180 Water meter sales 149,944 - - 149,944 155,675 Other operating revenue 23,336 10,437 55,107 88,880 165,821 Total operating revenues 1,711,596 549,567 512,624 2,773,787 2,041,676 Operating expenses: Personal services 411,561 135,765 67,497 614,823 630,426 Materials and supplies 212,515 16,062 5,935 234,512 213,890 Professional services 131,108 63,876 46,269 241,253 239,162 Repairs and maintenance 19,628 9,850 42,031 71,509 69,053 Utilities 138,466 284,641 - 423,107 331,431 Depreciation 1,467,694 880,861 611,565 2,960,120 2,600,589 Other 61,466 26,469 7,388 95,323 69,409 Total operating expenses 2,442,438 1,417,524 780,685 4,640,647 4,153,960 Operating income (loss)(730,842) (867,957) (268,061) (1,866,860) (2,112,284) Nonoperating revenues (expenses): Investment income (loss)(11,572) (7,335) (2,038) (20,945) 286,350 Intergovernmental revenue 35,635 - - 35,635 21,893 Interest and fees on long-term debt (223,270) (145,484) (49,359) (418,113) (464,055) Total nonoperating operating revenues (expenses)(199,207) (152,819) (51,397) (403,423) (155,812) Income (loss) before contributions and transfers (930,049) (1,020,776) (319,458) (2,270,283) (2,268,096) Capital contributions: Intergovernmental revenue 7,006,533 - - 7,006,533 4,774,955 Special assessments 154,678 2,143,642 202 2,298,522 119,844 Refunds and reimbursements - - - - 223,615 Capital contributions from private sources 1,837,010 1,476,603 1,605,495 4,919,108 6,946,150 Connection charges 2,104,200 1,998,000 - 4,102,200 3,572,097 Transfer out (3,750,000) (1,500,000) - (5,250,000) - Total contributions and transfers 7,352,421 4,118,245 1,605,697 13,076,363 15,636,661 Change in net position 6,422,372 3,097,469 1,286,239 10,806,080 13,368,565 Net position - January 1 33,651,272 19,388,161 9,910,749 62,950,182 49,581,617 Net position - December 31 $40,073,644 $22,485,630 $11,196,988 $73,756,262 $62,950,182 CHANGES IN FUND NET POSITION Business-Type Activities - Enterprise Funds Total The accompanying notes are an integral part of these financial statements. 43 CITY OF LAKE ELMO, MINNESOTA STATEMENT OF CASH FLOWS Statement 9 PROPRIETARY FUNDS For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 Storm Water (601) Sewer (602) Sewer (603) 2021 2020 Cash flows from operating activities: Receipts from customers and users $2,512,836 $500,866 $423,946 $3,437,648 $2,141,859 Payments to suppliers (501,152) (328,905) (104,019) (934,076) (1,108,499) Payments to employees (394,804) (153,861) (83,800) (632,465) (484,601) Net cash flows provided by (used in) operating activities 1,616,880 18,100 236,127 1,871,107 548,759 Cash flows from capital and related financing activities: Intergovernmental revenue 6,340,992 - - 6,340,992 3,987,592 Special assessments 136,390 740,098 (8,773) 867,715 375,404 Refunds and reimbursements - - - - 223,615 Connection charges 2,154,200 1,998,000 - 4,152,200 3,622,097 Proceeds from issuance of bonds 605,002 6,026,615 - 6,631,617 - Principal paid on long-term debt (1,385,000) (2,240,000) (200,000) (3,825,000) (1,380,000) Interest and fees paid on long-term debt (264,270) (207,579) (57,014) (528,863) (505,151) Acquisition of capital assets (7,693,521) (2,579,887) - (10,273,408) (5,608,382) Transfer out (3,750,000) (1,500,000) - (5,250,000) - Net cash flows provided by (used in) capital and related financing activities (3,856,207) 2,237,247 (265,787) (1,884,747) 715,175 Cash flows from investing activities: Investment earnings (2,980)411 (659) (3,228) 306,530 Net increase (decrease) in cash and cash equivalents (2,242,307) 2,255,758 (30,319) (16,868) 1,570,464 Cash and cash equivalents - January 1 7,062,772 7,836,634 1,092,101 15,991,507 14,421,043 Cash and cash equivalents - December 31 $4,820,465 $10,092,392 $1,061,782 $15,974,639 $15,991,507 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss)($730,842) ($867,957) ($268,061) ($1,866,860) ($2,112,284) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Intergovernmental revenue 35,635 - - 35,635 21,893 Depreciation 1,467,694 880,861 611,565 2,960,120 2,600,589 Changes in assets and liabilities: Decrease (increase) in receivables 765,605 (48,701) (88,678) 628,226 78,290 Decrease (increase) in prepaid items - 419,684 - 419,684 (400,527) Decrease (increase) in deferred outflows of resources (72,241) (26,113) (13,756) (112,110) (22,322) Increase (decrease) in payables 62,031 (347,691) (2,396) (288,056) 214,973 Increase (decrease) in salaries and benefits payable 3,271 1,579 1,020 5,870 (9,120) Increase (decrease) in compensated absences 4,965 (1,899) (2,440)626 5,951 Increase (decrease) in other post employment benefits 3,411 1,143 537 5,091 1,434 Increase (decrease) in net pension liability (35,507) (37,557) (26,277) (99,341) 179,932 Increase (decrease) in deferred inflows of resources 112,858 44,751 24,613 182,222 (10,050) Total adjustments 2,347,722 886,057 504,188 3,737,967 2,661,043 Net cash provided by (used in) operating activities $1,616,880 $18,100 $236,127 $1,871,107 $548,759 Noncash investing, capital and financing activities: Capital asset contributions $1,837,010 $1,476,603 $1,605,495 $4,919,108 $6,946,150 Total Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 44 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lake Elmo, Minnesota (the City) is a statutory City under Optional Plan A as defined in the State of Minnesota statutes. The City is governed by an elected Mayor and a four-member Council. The Council exercises legislative authority and determines all matters of policy. The Council appoints personnel responsible for the proper administration of all affairs relating to the City. The basic financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by accounting principles generally accepted in the United States of America, the financial statements of the reporting entity include those of the City (the primary government) and its component units. Generally, component units are legally separate organizations for which the officials of the primary government are financially accountable. COMPONENT UNITS The City has one component unit, the Economic Development Authority (EDA). The financial statements of the EDA are included as a blended component unit because its governing body is substantively the same as the City Council, the City is in a relationship of financial burden with the EDA, and because management of the City have operational responsibilities for the EDA. Separate financial statements for the EDA are not prepared. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or business-type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. 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. The fund financial statements are provided for governmental and proprietary funds. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. The City reports the following major governmental funds: General 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. 45 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Debt Service Fund is an accumulation of resources (primarily special assessments and property tax revenues) for the payments of principal and interest on long-term general obligation debt of governmental funds. Park Dedication Fund accounts for the accumulation of resources (primarily park dedication fees) that are used to make improvements to existing parks as well as building new parks. Vehicle Acquisition Fund accounts for the accumulation of resources for the purchase of vehicles to be used by various City departments. Heritage Farms Street & Utility Improvements Fund accounts for the activities related to the Heritage Farms streets improvements project. The improvements include the reconstruction of approximately 1.2 miles of residential streets. City Hall/Fire Station Building Project Fund accounts for the activities related to the construction of a new City Center/Fire Station and Public Works addition. The project is expected to be completed in 2023. The City reports the following major proprietary funds: The Water Fund accounts for the activities of the City’s water distribution operations. The Sewer Fund accounts for revenues and costs associated with the City’s sewer system. The Storm Sewer Fund accounts for costs associated with the City’s storm sewer system. These costs are financed by the storm sewer surcharge. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. 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 46 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 period. All other revenue items are considered to be measurable and available only when cash is received by the City. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 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 water, sewer and storm sewer enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETS Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are legally adopted by Council resolution for the General Fund and enterprise funds. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. The City follows these legal compliance procedures in establishing the budgetary data reflected in the financial statements: 1. Budget requests are submitted by all department heads to the City Administrator and Finance Director in July of each year. The Finance Director’s office compiles the budget request into an overall preliminary City budget, balancing budget requests with available revenue. 2. In July, the Finance Committee reviews the budget and recommends the budget to the City Council. 3. The preliminary budget is submitted to the City Council in September for its review and/or modification. 4. City administration presents the proposed budget to the City Council which in turn, when required, holds a truth-in-taxation public hearing on the proposed budget. The budget resolution adopted by the City Council sets forth the budget at the department level for the General Fund and the fund level for the enterprise funds. 5. All budgets appropriations lapse at the end of the fiscal year. The legal level of control (the level on which expenditures may not legally exceed appropriations) for each budget is at the department level. Administration cannot legally amend or transfer appropriations between departments without the approval of the City Council once the budget has been approved. Any over expenditures of appropriations or transfers of appropriated amounts must be approved by the City Council. 47 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 6. Budgeted amounts are originally adopted, or as amended by the City Council. The budget cannot be amended without approval by the City Council. E. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of the fund's equity in the cash and investment pool. Investments are stated at fair value, except for investments in external investment pools that meet GASB 79 requirements, which are stated at amortized cost. Interest earnings are accrued at year-end. For purposes of the Statement of Cash Flows, the Proprietary Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. F. RECEIVABLES The estimated portion of uncollectible property taxes and special assessments is not material and has not been reported. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables. G. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Within the government-wide financial statements, the City recognizes property tax revenue in the period for which taxes were levied. Uncollectible property taxes are not material and have not been reported. Within the governmental fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and received by the City in July, December, and the following January are recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to the City the following January) are classified as due from county. Taxes not collected by the county by December 31 are classified as delinquent taxes receivable. Delinquent taxes receivable are fully offset by deferred inflows of resources because they are not available to finance current expenditures. 48 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 H. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. Within the government-wide financial statements, the City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. Within the fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflows of resources. I. INVENTORY The original cost of materials and supplies has been recorded as expenditures/expenses at the time of purchase. The City does not maintain material amounts of inventories of goods and supplies. J. PREPAID ITEMS Certain prepayments 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. K. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks, street lights, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not 49 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Useful Life in Years Buildings 10-50 Other Improvements 10-20 Machinery and Equipment 5-20 Infrastructure 20-40 L. COMPENSATED ABSENCES It is the City’s policy to permit employees to accumulate earned but unused PTO (Personal Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay allowable as severance is accrued in the government-wide and proprietary fund financial statements. The current portion is calculated based on historical trends. M. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are amortized over the life of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts 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. N. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense) that time. The City has one item that qualifies for reporting in the category. It is the pension related deferred outflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue) until that time. The City has pension related deferred inflows of resources reported in the government- wide Statement of Net Pension and the proprietary funds Statements of Net Position. The City also has a type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from property taxes and special assessments not collected within 60 days from year-end. 50 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 O. FUND BALANCE CLASSIFICATIONS 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. 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. These constraints are established by a resolution approved by the City Council, and committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by resolution. Assigned - consists of internally imposed constraints for the specific purpose of the City’s intended use. These constraints are established by the City Council and/or management. The City Council has delegated the power to assign fund balances to the City’s finance committee. Unassigned - is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed 2) assigned and 3) unassigned. P. NET POSITION Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources in the government-wide financial statements. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the government-wide financial statements when there are limitations on its use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Q. INTERFUND TRANSACTIONS During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund. Such advances are classified as “due to/from other funds.” Long-term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” All other interfund transactions are reported as transfers. 51 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 R. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. S. RECLASSIFICATIONS Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. T. COMPARATIVE TOTALS The basic financial statements, required supplementary information, and combining and individual nonmajor fund financial statements include certain prior year summarized comparative information in total but not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended December 31, 2020 from which the summarized information was derived. U. PENSION PLANS COST SHARING MULTIPLE - EMPLOYER 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 PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. SINGLE EMPLOYER PLAN For purposes of measuring the net pension liability (asset), deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Lake Elmo Firefighters Relief Association (the Association) and additions to/deductions from the Association’s fiduciary net position have been determined on the same basis as they were reported by the Association. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 52 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains its deposits at depository banks authorized by the City Council. All such banks are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bonds or collateral. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. Securities pledged as collateral are required to be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. Minnesota Statute 118A.03 identifies allowable forms of collateral. Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City has no additional deposit policies addressing custodial credit risk. At December 31, 2021, the bank balance of the City’s deposits with financial institutions was $35,841,489 and the carrying amount was $35,709,102. All deposits were covered by federal depository insurance or by collateral pledged and held in the City’s name. B. INVESTMENTSN Subject to rating, yield, maturity and issuer requirements as prescribed by statute, Minnesota Statutes 118A.04 and 118A.05 authorize the City to invest in United States securities, state and local securities, commercial paper, time deposits, high-risk mortgage-backed securities, temporary general obligation bonds, repurchase agreements, Minnesota joint powers investment trusts and guaranteed investment contracts. At December 31, 2021, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1 - 5 6 - 10 Brokered certificates of deposit Not rated $4,403,367 $1,296,828 $3,106,539 $ - Federal Farm Credit Bank notes AAA 535,734 - 535,734 - Federal Home Loan Bank notes AAA 7,651,581 - 7,651,581 - Municipal bonds (1)3,240,845 242,614 2,205,062 793,169 Money market funds Not rated 44,998 44,998 - - Total $15,876,525 $1,584,440 $13,498,916 $793,169 (1) $857,816 are rated AAA, $754,351 are rated AA,Total investments $15,876,525 $459,307 are rated AA+, $102,890 are rated Aa2,Deposits 35,709,102 $617,095 are rated Aa3, $204,668 are rated A+,Petty cash 1,748 $204,718 are rated A. Total cash and investments $51,587,375 Investment Maturities (in Years) The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3 investments are valued using inputs that are unobservable. The City has the following recurring fair value measurements at December 31, 2021: 53 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 The City has the following recurring fair value measurements at December 31, 2021: Investment Type 12/31/2021 Level 1 Level 2 Level 3 Investments at fair value: Brokered certificates of deposit $4,403,367 $ - $4,403,367 $ - Municipal bonds 3,240,845 - 3,240,845 - Federal Farm Credit Bank notes 535,734 - 535,734 - Federal Home Loan Bank notes 7,651,581 - 7,651,581 - 15,831,527 $0 $15,831,527 $0 Investments not categorized: Money market funds 44,998 Total investments $15,876,525 Fair Value Measurement Using C. INVESTMENT RISKS Custodial Credit Risk – Investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires its brokers be licensed with the appropriate federal and state agencies. A minimum capital requirement of $10,000,000 and at least five years of operation is mandatory. Investments in securities are held by the City’s broker-dealers. The securities at each broker-dealer are insured $500,000 through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts. Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City’s investment policy states that extended maturities may be utilized to take advantage of higher yields; however no more than 25% of total investments should extend beyond five years and in no circumstance should any extend beyond ten years. The City’s investment portfolio is structured so that securities mature to meet cash requirements for ongoing operations. Credit Risk – Credit risk is the risk than an issuer of an investment will not fulfill its obligation to the holder of the investment. The City’s policy to minimize credit risk includes limiting investing funds to those allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Concentration of Credit Risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City places no limit on the amount it may invest in any one issuer. At December 31, 2021, 15% of the City’s total cash and investments were in notes issued by the Federal Home Loan Bank. 54 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 3 RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2021 are as follows: Property Special Taxes Assessments Receivable Receivable Total Major Funds: General Fund $15,067 $32,762 $47,829 Debt Service Fund - 2,823,681 2,823,681 Water Fund - 226,363 226,363 Sewer Fund - 3,412,829 3,412,829 Storm Sewer Fund - 808 808 Nonmajor Funds - 17,833 17,833 Total $15,067 $6,514,276 $6,529,343 Note 4 UNAVAILABLE REVENUE Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds are as follows: Property Special Taxes Assessments Receivable Receivable Total Major Funds: General Fund $46,218 $66,114 $112,332 Debt Service Fund - 3,130,292 3,130,292 Nonmajor Funds - 17,833 17,833 Total $46,218 $3,214,239 $3,260,457 55 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2021 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $3,453,979 $ - $ - $3,453,979 Construction in progress 637,739 4,901,572 (635,404) 4,903,907 Total capital assets, not being depreciated 4,091,718 4,901,572 (635,404) 8,357,886 Capital assets, being depreciated: Buildings 4,330,670 - - 4,330,670 Other improvements 2,780,348 - - 2,780,348 Machinery and equipment 5,478,510 426,344 (80,677) 5,824,177 Infrastructure 41,630,654 5,070,097 - 46,700,751 Total capital assets, being depreciated 54,220,182 5,496,441 (80,677) 59,635,946 Less accumulated depreciation for: Buildings 1,245,870 90,165 - 1,336,035 Other improvements 1,233,865 101,939 - 1,335,804 Machinery and equipment 2,667,118 332,562 (80,677) 2,919,003 Infrastructure 7,680,327 2,033,030 - 9,713,357 Total accumulated depreciation 12,827,180 2,557,696 (80,677) 15,304,199 Total capital assets being depreciated - net 41,393,002 2,938,745 0 44,331,747 Governmental activities capital assets - net $45,484,720 $7,840,317 ($635,404) $52,689,633 Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $3,668,869 $ - $ - $3,668,869 Construction in progress 5,843,234 10,431,561 (6,312,805) 9,961,990 Total capital assets, not being depreciated 9,512,103 10,431,561 (6,312,805) 13,630,859 Capital assets, being depreciated: Machinery and equipment 413,699 - - 413,699 Infrastructure 66,599,944 11,231,913 - 77,831,857 Total capital assets, being depreciated 67,013,643 11,231,913 0 78,245,556 Less accumulated depreciation for: Machinery and equipment 245,607 29,424 - 275,031 Infrastructure 11,636,560 2,930,695 - 14,567,255 Total accumulated depreciation 11,882,167 2,960,119 0 14,842,286 Total capital assets being depreciated - net 55,131,476 8,271,794 0 63,403,270 Business-type activities capital assets - net $64,643,579 $18,703,355 ($6,312,805) $77,034,129 56 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Depreciation expense was charged to functions/programs of the City as follows: Governmental activities: General government $16,398 Public safety 147,495 Public works 2,257,449 Culture and recreation 136,354 Total depreciation expense - governmental activities $2,557,696 Business-type activities: Water $1,467,694 Sewer 880,861 Storm sewer 611,565 Total depreciation expense - business-type activities $2,960,120 57 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 6 LONG-TERM DEBT The City issues general obligation bonds to provide funds for economic development and for the acquisition and construction of major capital assets including infrastructure. General obligation bonds have been issued for both governmental and business-type activities. Bonds issued to provide funds for business-type activities are reported in proprietary funds if they are expected to be repaid from proprietary revenues. General obligation bonds are direct obligations and pledge the full faith and credit of the City. General obligation improvement bonds are expected to be repaid, in part, from assessments to the benefited properties. A summary of long-term debt outstanding at December 31, 2021 is as follows: Issue Interest Maturity Payable Date Rates Date 12/31/2021 Governmental Activities: General obligation improvement bonds: 2010B CIP Refunding bonds 11/30/10 1.00% - 3.20% 02/01/25 $730,000 2011A Improvement bonds 10/01/11 1.25% - 2.30% 02/01/22 90,000 2012B Improvement bonds 08/16/12 1.25% - 1.90% 02/01/23 190,000 2014A Improvement bonds 07/15/14 2.00% - 3.50% 01/15/30 1,610,000 2015A Improvement bonds 08/13/15 2.00% - 3.00% 01/15/26 815,000 2016A Improvement bonds 06/01/16 2.00% 01/15/27 1,675,000 2017A Improvement bonds 06/08/17 2.50% - 3.00% 01/15/28 3,300,000 2019A Improvement bonds 10/24/19 2.00% - 3.00% 02/01/35 2,620,000 2021A Improvement bonds 12/07/21 1.75% - 3.00% 02/01/42 15,675,000 Total general obligation improvement bonds 26,705,000 General obligation equipment certificates: 2018A Equipment certificates 10/16/18 2.70% 02/01/28 755,000 Unamortized bond premiums 864,553 Compensated absences payable 85,707 Total governmental activities $28,410,260 Business-Type Activities: General obligation revenue bonds: 2012A Refunding bonds 08/13/12 2.00% - 2.50% 12/01/30 $2,810,000 2014A Improvement bonds 07/15/14 2.00% - 3.50% 01/15/30 2,160,000 2015A Improvement bonds 08/13/15 2.00% - 3.00% 01/15/31 850,000 2016A Improvement bonds 06/01/16 2.00% 01/15/32 5,220,000 2017A Improvement bonds 06/01/17 2.50% - 3.00% 01/15/33 3,710,000 2019A Improvement bonds 10/24/19 2.00% - 3.00% 02/01/35 1,135,000 2021A Improvement bonds 12/07/21 1.75% - 3.00% 02/01/37 6,310,000 Total general obligation revenue bonds 22,195,000 Unamortized bond premiums 646,659 Compensated absences payable 28,340 Total business-type activities $22,869,999 58 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 CHANGES IN LONG-TERM DEBT The following is a schedule of changes in City indebtedness for the year ended December 31, 2021: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities: G.O. Improvement bonds $13,695,000 $15,675,000 $2,665,000 $26,705,000 $1,770,000 G.O. Equipment certificates 850,000 - 95,000 755,000 100,000 Taxable lease revenue bonds 881,000 - 881,000 - - Unamortized bond premiums 364,432 548,115 47,994 864,553 - Compensated absences payable 109,369 98,864 122,526 85,707 64,280 Total governmental activities $15,899,801 $16,321,979 $3,811,520 $28,410,260 $1,934,280 Business-type activities: G.O. Revenue bonds $19,710,000 $6,310,000 $3,825,000 $22,195,000 $1,345,000 Unamortized bond premiums 395,366 321,617 70,324 646,659 - Compensated absences payable 27,714 33,284 32,658 28,340 21,255 Total business-type activities $20,133,080 $6,664,901 $3,927,982 $22,869,999 $1,366,255 DEBT SERVICE REQUIREMENTS Future principal and interest payments required to retire long-term debt are as follows: Years Ending December 31 Principal Interest Principal Interest Principal Interest 2022 $1,770,000 $500,458 $100,000 $19,036 $1,345,000 $468,989 2023 2,380,000 577,122 100,000 16,336 1,810,000 487,575 2024 2,325,000 514,001 105,000 13,568 1,815,000 443,165 2025 2,295,000 450,550 110,000 10,665 1,865,000 397,603 2026 2,155,000 389,642 110,000 7,695 1,900,000 350,665 2027-2031 7,305,000 1,218,260 230,000 6,207 9,515,000 1,002,286 2032-2036 4,555,000 619,745 - - 3,635,000 160,595 2037-2041 3,295,000 225,314 - - 310,000 3,100 2042 625,000 6,641 - - - - Total $26,705,000 $4,501,733 $755,000 $73,507 $22,195,000 $3,313,977 General ObligationGeneral Obligation General Obligation Revenue BondsImprovement Bonds Equipment Certificates It is not practicable to determine the specific year for payment of long-term compensated absences payable. For governmental activities, compensated absences are liquidated by the General Fund. 59 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 DEFERRED AD VALOREM TAX LEVIES – BONDED DEBT General obligation bonds are backed by the full faith and credit of the City, including special assessment and revenue bond issues. General Obligation improvement bond issues are financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. The future scheduled tax levies are not shown as assets in the accompanying financial statements. CURRENT REFUNDINGS On December 7, 2021, the City issued General Obligation Improvement, CIP, and Refunding Bonds in the amount of $21,985,000. On December 7, 2021, $2,280,000 of the bonds, along with a bond premium, were used to advance refund the 2022 through 2033 maturities of the 2013A General Obligation Bonds in the amount of $2,370,000. The refunding will reduce the City’s total debt service payments over the last twelve years of the bond by $313,674 and obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) by $315,814. On December 7, 2021, the City issued General Obligation Improvement, CIP, and Refunding Bonds in the amount of $21,985,000. On December 20, 2021, $815,000 of the bonds, along with a bond premium, were used to advance refund the 2022 through 2034 maturities of the 2018A Taxable Lease Revenue Bonds in the amount of $834,000. The refunding will reduce the City’s total debt service payments over the last thirteen years of the bond by $149,393 and obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) by $153,251. 60 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: Remaining Principal Pledged Term of Principal and Interest Revenue Bond Issue Use of Proceeds Type Pledge and Interest Paid Received 2010A G.O. Improvement Infrastructure improvements 2011 - 2020 $ - $76,050 $6,774 2010B G.O. CIP Refunding Infrastructure improvements Ad valorem taxes 2011 - 2024 $776,345 $194,841 $207,338 2011A G.O. Improvement Infrastructure improvements 2012 - 2021 $91,035 $93,105 $5,345 2012A G.O. Refunding Water system improvements Water usage charges 2012 - 2030 $3,139,758 $270,644 $1,711,596 2012B G.O. Improvement Infrastructure improvements 2013 - 2022 $193,611 $94,375 $83,674 2013A G.O. Improvement Infrastructure improvements 2014 - 2033 $ - $3,662,081 $2,266,092 Ad valorem taxes, 2014A G.O. Improvement Infrastructure improvements Special assessments,2015 - 2029 $4,288,380 $543,178 $2,510,777 Water & Sewer charges Ad valorem taxes, 2015A G.O. Improvement Infrastructure improvements Special assessments,2016 - 2030 $1,839,113 $288,864 $2,341,746 Water & Sewer charges Ad valorem taxes, 2016A G.O. Improvement Infrastructure improvements Special assessments,2017 - 2031 $7,591,550 $834,800 $3,068,346 Water, Sewer, & Storm charges Ad valorem taxes, 2017A G.O. Improvement Infrastructure improvements Special assessments,2018 - 2032 $7,950,121 $879,891 $3,193,725 Water, Sewer, & Storm charges 2018A G.O. Equipment Certificates Purchase of fire truck, dump truck Ad valorem taxes 2019 - 2027 $828,507 $116,668 $123,848 2018A Taxable Lease Revenue Purchase of city hall Lease revenues 2018 - 2033 $ - $935,747 $ - Ad valorem taxes, 2019A G.O. Improvement Special assessments,2020 - 2034 $4,265,035 $406,056 $3,118,970 Water, Sewer, & Storm charges Ad valorem taxes, 2021A G.O. Improvement Special assessments,2021-2042 $26,580,762 $ - $2,745,863 Water & Sewer charges Current YearRevenue Pledged Infrastructure improvements, capital equipment New city hall, fire station, law enforcement facilitiy and public works addition, and infrastructure improvements Ad valorem taxes, Special assessments Ad valorem taxes, Special assessments Ad valorem taxes, Special assessments Special assessments, Water & Sewer charges 61 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 7 DEFINED BENEFIT PENSION PLANS – PERA A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to PERA. B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 1. GERF Benefits Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA’s Coordinated members. Members hired prior to July 1, 1989 receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% of average salary for each of the first ten years of service and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7% of average salary for all years of service. For members hired prior to July 1, 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or 62 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. 1. GERF Contributions Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year 2021 and the City was required to contribute 7.5% for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2021 were $120,362. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Police and Fire members were required to contribute 11.80% of their annual covered salary in fiscal year 2021 and the City was required to contribute 17.70%. The City’s contributions to the PEPFF for the year ended December 31, 2021 were $47,658. The City’s contributions were equal to the required contributions as set by state statute. D. PENSION COSTS 1. GERF Pension Costs At December 31, 2021, the City reported a liability of $862,631 for its proportionate share of GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer 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 $26,322. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 63 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 2020 through June 30, 2021, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0202% at the end of the measurement period and 0.0207% for the beginning of the period. City's proportionate share of the net pension liability $862,631 State of Minnesota’s proportionate share of the net pension liability associated with the City 26,322 Total $888,953 For the year ended December 31, 2021, the City recognized pension expense of $31,156 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $2,124 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. At December 31, 2021, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $5,235 $26,399 Changes in actuarial assumptions 526,704 19,007 Net collective difference between projected and actual investment earnings 747,065 Changes in proportion 43,128 20,758 Contributions paid to PERA subsequent to the measurement date 66,136 - Total $641,203 $813,229 The $66,136 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension December 31, Expense 2022 ($20,175) 2023 (582) 2024 (13,639) 2025 (203,766) 2026 - Thereafter - 64 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 2. PEPFF Pension Costs At December 31, 2021, the City reported a liability of $127,363 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2021 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2020 through June 30, 2021, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0165% at the end of the measurement period and 0.0171% for the beginning of the period. The State of Minnesota also contributed $18 million to PEPFF during the plan fiscal year ended June 30, 2021. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The direct state aid was paid on October 1, 2020. Thereafter, by October 1 of each year, the state will pay $9 million to the PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of these state contributions, although we do not anticipate them to be phased out during the fiscal year ending 2022. The State of Minnesota is included as a non-employer contributing entity in the PEPFF Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid. PEPFF employers need to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2021, the City recognized pension expense of $3,692 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized an additional $1,040 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 million to the PEPFF. The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City also recognized $1,485 for the year ended December 31, 2021 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund. 65 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 At December 31, 2021, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $24,281 $ - Changes in actuarial assumptions 187,190 63,630 Net collective difference between projected and actual investment earnings - 242,760 Changes in proportion 85,453 42,535 Contributions paid to PERA subsequent to the measurement date 27,686 - Total $324,610 $348,925 The $27,686 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as outflows: Year Ending Pension December 31, Expense 2022 ($65,431) 2023 19,338 2024 (15,692) 2025 (30,110) 2026 39,894 Thereafter - For governmental activities, the net pension liability for GERF and PEPFF will be liquidated by the General Fund. E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2021 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.25% per year Investment Rate of Return 6.50% The long-term investment rate of return is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates deemed to be reasonable by the actuary. An investment return of 6.50% was deemed to be within that range of reasonableness for financial reporting purposes. Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of service to 3.0% after 29 years of service and 6.0% per year thereafter. In the PEPFF, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. 66 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality rates for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Cost of living benefit increases after retirement are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF. Actuarial assumptions for GERF are reviewed every four years. The most recent four-year experience study for GERF was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for PEPFF was completed in 2020 and adopted by the Board and became effective with the July 1, 2021 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2021: General Employees Fund Changes in Actuarial Assumptions:  The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes.  The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. Police and Fire Fund Changes in Actuarial Assumptions:  The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes.  The inflation assumption was changed from 2.50% to 2.25%.  The payroll growth assumption was changed from 3.25% to 3.00%.  The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020.  Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 experience study. The changes result in a decrease in gross salary increase rates, 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% to 70%. 67 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic equity 33.5% 5.10% International equity 16.5% 5.30% Fixed income 25% 0.75% Private markets 25% 5.90% Total 100% F. DISCOUNT RATE The discount rate used to measure the total pension liability in 2021 was 6.5%. 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 GERF and the PEPFF was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (5.5%) Discount Rate (6.5%) Discount Rate (7.5%) Proportionate share of the GERF net pension liability $1,759,326 $862,631 $126,837 Proportionate share of the PEPFF net pension liability $404,354 $127,363 ($99,702) H. PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. 68 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 I. PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2021 is as follows: GERF $33,280 PEPFF 4,732 Fire Pension Plan (Note 8)(5,294) Total $32,718 Note 8 DEFINED BENEFIT PENSION PLAN – LAKE ELMO FIREFIGHTERS RELIEF ASSOCIATION A. PLAN DESCRIPTION The Lake Elmo Firefighters Relief Association (the Association) is the administrator of a single employer Public Employee Retirement System (PERS) defined benefit pension plan established to provide benefits for members of the Lake Elmo Fire Department. The plan was established and is administered in accordance with Minnesota Statutes. As of the January 1, 2021 valuatioin date, plan participants consisted of the following: Retired members entitled to benefits, but have not received them 5 Current members: Fully vested (20 years or more) 1 Partially vested (10 years to 19 years) 8 Nonvested (less than 10 years)11 Total 25 B. BENEFITS PROVIDED Twenty Year Service Pension Each member who is at least 50 years of age; has retired from the Lake Elmo Fire Department; has served at least twenty (20) years of active service with such department before retirement; and, has been a member of the Association in good standing at least 10 years prior to such retirement; shall be entitled to a pro-rated lump sum service pension in the amount of $5,850 for each completed full year of service and pro-rated monthly for fractional years of service but not exceeding the maximum amount per year of service allowed by law for the minimum average amount of available financing per firefighter as prescribed by law. Members with 10 years of service receive partial vesting at 60% of the 20 year rate and 4% is added for every one year of service beyond ten years up to 20 years. 69 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Death Benefits Upon the death of an active or deferred member, the beneficiaries of deceased members shall be paid a death benefit depending on the number of years of service: Up to 10 years $5,850 10 years to 30 years That amount the deceased had earned as retirement benefit had she/he retired on the date of death and been fifty (50) years of age. State Supplemental Benefits Minnesota Statute 424A.10 provides for the payment of a supplemental benefit equal to ten percent of a regular lump sum distribution up to a maximum of $1,000. The supplemental benefit is in lieu of a State income tax exclusion for lump sum distributions and will no longer be available if State tax law is modified to exclude lump sum distributions from State income tax. The Association qualifies for these benefits. C. CONTRIBUTIONS Minnesota Statute Chapter 424A.092 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from state aid are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a ten-year period. The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are no covered payroll percentage calculations). Contributions totaling $76,608 were made by the State of Minnesota for the year ended December 31, 2020. D. CHANGES IN THE NET PENSION ASSET The net pension libility (asset) was measured using a one-year lookback as of December 31, 2020. The total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of January 1, 2021 by applying an actuarial formula to specific census data certified by the fire department. 70 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 At December 31, 2021, the City reported a net pension asset of $505,422. The following table presents the changes in net pension asset during the year: Plan Net Total Fiduciary Pension Pension Net Liability Liability Position (Asset) (a)(b)(a-b) Balance at December 31, 2019 $724,844 $1,097,917 ($373,073) Changes for the year: Service cost 38,225 - 38,225 Interest cost 39,743 - 39,743 Assumption changes - - - Plan Changes - - - Projected investment earnings - - - Contributions - State of MN - 76,608 (76,608) Asset (gain) / loss (21,722) 118,822 (140,544) Benefit payments - - - Administrative expenses (6,057)(12,892)6,835 Net changes 50,189 182,538 (132,349) Balance at December 31, 2020 $775,033 $1,280,455 ($505,422) For the year ended December 31, 2021, the City recognized a reduction to pension expense in the amount of $5,294. At December 31, 2021, the City reported deferred outflows and inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between projected and actual investment earnings $ - $60,830 Assumption changes 11,665 - Liability gains - 95,744 Total $11,665 $156,574 71 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension December 31, Expense 2022 ($34,633) 2023 (15,352) 2024 (41,370) 2025 (26,043) 2026 (14,135) Thereafter (13,376) E. ACTUARIAL ASSUMPTIONS The total pension asset was determined by an actuarial valuation as of December 31, 2020 using the following actuarial assumptions, applied to all periods in the measurement: Valuation date 1/1/2021 Measurement date (assets and funded status)12/31/2020 Actuarial cost method Entry age normal Amortization method Level dollar amount Closed 5 year period Asset valuation method Market value Actuarial assumptions: Investment rate of return 5.25% 20-year municipal bond yield N/A Projected salary increases 2.50% Includes inflation at N/A Cost-of-living adjustments N/A Age of service retirement 50 Post retirement benefit increase N/A Mortality Due to a small sample size, assumed no pre-retirement mortality. Post-retirement mortality does not apply as the benefit structure and form of payment do not reflect lifetime benefits. The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of return by weighting the expected future real rates of return by the current asset allocation percentage (or target allocation, if available) and by adding expected inflation. All results are then rounded to the nearest quarter percentage point. 72 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 The best-estimate of expected future real rates of return were developed by aggregating data from several published capital market assumption surveys and deriving a single best-estimate based on the average survey values. These capital market assumptions reflect both historical market experience as well as diverse views regarding anticipated future returns. The expected inflation assumptions was developed based on an analysis of historical experience blended with forward-looking expectations available in market data. Best estimates of geometric real and nominal rates of return for each major asset class included in the pension plan’s asset allocation as of the measurement date are summarized in the following table: Portfolio Expected Asset Class Weight Class Return Cash 15%1.80% Fixed income 22%3.00% Equities 62%6.80% Other 1%7.00% Total (weighted avg., rounded to 1/4%) 100%5.25% F. DISCOUNT RATE The discount rate used to measure the total pension liability was 5.25%. The liability discount rate was developed using the alternative method described in paragraph 43 of GASB 67, which states that “if the evaluations required by paragraph 41 can be made with sufficient reliability without a separate projection of cash flows into and out of the pension plan, alternative methods may be applied in making the evaluations.” The determination of the discount rate assumed that the plan’s current overfunded status, combined with Minnesota statutory funding requirements, provide sufficient reliability that projected plan assets will be adequate to pay future retiree benefits. Therefore, the plan’s long-term expected return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY (ASSET) SENSITIVITY The following presents the City’s net pension asset for the plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were calculated using a discount rate 1% lower or 1% higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (4.25%) Discount Rate (5.25%) Discount Rate (6.25%) Net pension asset ($472,425)($505,422)($537,234) H. PENSION PLAN FIDUCIARY NET POSITION Detailed information about the Association plan’s fiduciary net position is available in a separately- issued financial report that includes financial statements and required supplementary information. That report may be obtained by contacting the Finance Director for the City of Lake Elmo. 73 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 7 and 8, the City provides post- employment health care benefits, as defined in paragraph B, through its group health insurance plan (the plan). The plan is a single-employer defined benefit OPEB plan administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. B. BENEFITS PROVIDED RETIREES At retirement, employees of the City receiving a retirement or disability benefit, or eligible to receive a benefit, from a Minnesota public pension plan may continue to participate in the City’s group insurance plan. Vesting requirements of three years if hired before July 1, 2010 or five years if hired on or after July 1, 2010 generally apply. DISABLED POLICE AND FIREFIGHTERS The City continues to pay the employer’s contribution toward health coverage for firefighters disabled in the line of duty and deceased firefighter’s dependents if the firefighter was killed in the line of duty, per Minnesota Statute 299A.465, until age 65. Dependent coverage is included, if the dependents were covered at the time of the disability. During 2021, no benefits were paid for firefighters disabled or killed in the line of duty. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan becomes secondary. C. PARTICIPANTS As of the December 31, 2019 actuarial valuation, participants of the plan consisted of: Active employees 23 Inactive employees or beneficiaries currently receiving benefits 0 Total 23 74 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $99,789 was measured as of December 31, 2020 and was determined by an actuarial valuation as of December 31, 2019. Changes in the total OPEB liability during 2021 were: Balance - beginning of year $79,303 Changes for the year: Service cost 13,859 Interest 2,541 Changes of benefit terms - Differences between expected and actual experience - Changes in assumptions 5,583 Benefit payments (1,497) Net changes 20,486 Balance - end of year $99,789 For governmental activities, the OPEB liability is liquidated by the General Fund. The estimated amount due within one year is immaterial, and therefore, is not separately presented on the Statement of Net Position. E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS All costs and liabilities under the plan were determined in accordance with the Alternative Measurement Method prescribed by GASB Statement No. 75 for employers with under 100 plan participants. The total OPEB liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary increases 2.50% Discount rate 2.00% Investment rate of return 2.00% Healthcare cost trend rates 6.20% for 2020; gradually decreasing over several decades to an ultimate rate of 4.00% for 2075 and later years Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return was based on the Fidelity 20-Year Municipal GO AA Index as of December 31, 2020. 40% of the employees currently electing coverage are assumed to elect coverage in the same plan and coverage level at retirement, continue coverage to age 65 and then waive coverage. Employees currently waiving coverage are assumed to waive coverage at retirement. Retirement age is assumed to be the latest of age 62, plan eligibility or current age. For retirees, actual disability status was used. 100% of current and future retirees under age 65 are assumed to become Medicare eligible at the later of age 65 or retirement. Actual Medicare status was used for retired members. 75 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Changes in actuarial assumptions since the previous valuation include:  The discount rate was changed from 2.75% to 2.00% F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE 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% lower (1.00%) or 1% higher (3.00%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (1.00%)(2.00%)(3.00%) Total OPEB liability $107,805 $99,789 $92,427 G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES 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% lower (5.2% decreasing to 3.0%) or 1% higher (7.2% decreasing to 5.0%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (5.2% decreasing to 3.0%) (6.2% decreasing to 4.0%) (7.2% decreasing to 5.0%) Total OPEB liability $88,082 $99,789 $114,292 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2021, the City recognized $20,486 of OPEB expense. In accordance with the Alternative Measurement Method, gains and losses due to experience and assumption changes are recognized immediately. In addition, there were no contributions between the measurement date and reporting date because the City has no retirees and no active employees who were expected to retire during 2021. Therefore, there are no deferred outflows or inflows of resources related to OPEB as of December 31, 2021. 76 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 10 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. DEFICIT FUND BALANCES The following funds reported a deficit fund balance at December 31, 2021: Deficit Fund Balance Nonmajor Governmental Funds: CSAH 19 / Hudson Blvd Interchange (425) ($137,281) CSAH 13 Phase 2 (427) (18,885) Inwood and 5th Street Stoplight (429) (28,202) CSAH 15 Manning Avenue Phase 3 (433) (3,525) CSAH 15 Manning Avenue and 30th Street (438) (7,541) TH36 Lake Elmo Avenue Improvements (440) (1,702) 2022 Street Improvements (441) (48,868) The City intends to fund these deficits during 2022 with bond proceeds, MSA revenue, and transfers from the General Fund. B. EXPENDITURES IN EXCESS OF BUDGET The following is a listing of departments within the General Fund that exceeded budget appropriations: Final Budget Actual Overage General government: Elections $3,150 $5,112 $1,962 City facilities 22,963 27,347 4,384 Planning and zoning 275,408 301,327 25,919 Public safety: Building inspection 926,142 1,231,520 305,378 Animal control 13,000 14,161 1,161 All expenditure overages were approved by the City Council through the disbursement approval process. Also of note, General Fund license and permit revenue exceeded budgeted by $472,158. 77 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 11 DUE FROM AND DUE TO OTHER FUNDS Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances at year-end. All balances are expected to be eliminated within one year. A summary of due from and due to balances at December 31, 2021 is as follows: Due From Due To Other Funds Other Funds Major Funds: General Fund $222,457 $ - Nonmajor Funds: CSAH 19 / Hudson Blvd Interchange - 137,281 CSAH 13 Phase 2 - 18,722 Inwood and 5th Street Stoplight - 28,202 CSAH 15 Manning Avenue Phase 3 - 3,525 CSAH 15 Manning Avenue and 30th Street - 7,476 TH36 Lake Elmo Avenue Improvements - 1,507 2022 Street Improvements - 25,744 $222,457 $222,457 Note 12 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2021 are as follows: Transfer In Transfer Out Major Funds: General Fund $ - $699,482 Debt Service Fund 113,792 - Vehicle Acquisition 260,746 - City Hall/Fire Station Building Project 5,250,000 - Water Fund - 3,750,000 Sewer Fund - 1,500,000 Nonmajor Funds: Economic Development Authority 30,000 - Infrastructure Reserve - 69,446 Village Project 378,736 - CSAH 15/CSAH 14 Realignment 16,904 - Old Village Phase 4 - 23,774 2018 Street Improvements - 90,018 Manning Corridor and Safety Management 3,086 - 2019 Street and Utility Project 5,731 Inwood and 79th Street Stoplight 73,725 - Total $6,132,720 $6,132,720 During 2021, transfers were made to provide financing for economic development, debt service, capital expenditures, and to close out unused funds. These transfers are routine and consistent with past practices. 78 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 13 FUND BALANCE At December 31, 2021, a summary of the governmental fund balance classifications is as follows: Heritage Farms City Hall / Other Park Vehicle Street & Utility Fire Station Governmental General Debt Service Dedication Acquistion Improvements Building Project Funds Total Nonspendable: Prepaid items $ - $ - $ - $ - $ - $ - $ - $ - Restricted for: Debt service - 3,890,901 - - - - - 3,890,901 Capital improvements - - - - 131,951 9,963,112 448,765 10,543,828 Park improvements: Ball parks - - 1,000,000 - - - - 1,000,000 Other parks improvements - - 2,024,220 - - - - 2,024,220 Total restricted 0 3,890,901 3,024,220 0 131,951 9,963,112 448,765 17,458,949 Committed for: Lions Park - - - - - - 7,673 7,673 Assigned for: Vehicle Acquisition - - - 1,558,215 - - - 1,558,215 City Hall/Fire Station Building Project - - - - - 5,257,054 - 5,257,054 American Rescue Plan Act - - - - - - 2,444 2,444 Economic Development Authority - - - - - - 12,056 12,056 Infrastructure Reserve - - - - - - 563,997 563,997 City Facilities - - - - - - 96,655 96,655 Manning and Hudson Future Stoplight - - - - - - 11,197 11,197 Railroad Crossing Improvements - - - - - - 68,219 68,219 Manning and Highway 36 Interchange - - - - - - 1,664 1,664 Total assigned 0 0 0 1,558,215 0 5,257,054 756,232 7,571,501 Unassigned 5,618,812 - - - - - (246,004) 5,372,808 Total fund balance $5,618,812 $3,890,901 $3,024,220 $1,558,215 $131,951 $15,220,166 $966,666 $30,410,931 The City Council has formally adopted a fund balance policy for the General Fund. The City’s policy is to maintain unassigned fund balance in the General Fund with a target floor of 50-60% of the subsequent budgeted fiscal year expenditures. At December 31, 2021, actual unassigned fund balance of the General Fund was 78% of 2022 budgeted expenditures. Note 14 COMMITMENTS AND CONTINGENCIES A. LITIGATION Existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance, of an immaterial amount, or, in the judgment of the City’s management, remotely recoverable by plaintiffs. B. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2021. 79 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 C. COMMITTED CONTRACTS At December 31, 2021, the City had commitments of $19,362,667 for uncompleted construction contracts. In addition, the City has entered into construction contracts totaling approximately $13,564,000 during 2022 for various projects. Note 15 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. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance 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 if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. 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. 80 CITY OF LAKE ELMO, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 16 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Board (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after June 15, 2021. Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods beginning after June 15, 2021. Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 96 Subscription – Based Information Technology Arrangements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 99 Omnibus 2022. The provisions of this Statement contain multiple effective dates, the first being for reporting periods beginning after June 15, 2022. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statement No. 87 may have a material impact. 81 - This page intentionally left blank - 82 REQUIRED SUPPLEMENTARY INFORMATION 83 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 4 For The Year Ended December 31, 2021 With Comparative Actual Amounts For The Year Ended December 31, 2020 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) 2020 Actual Amounts Original Final Revenues: General property taxes $3,824,879 $3,824,879 $3,865,164 $40,285 $3,534,627 Licenses and permits: Business 42,870 42,870 80,857 37,987 60,816 Non-business 970,630 970,630 1,404,801 434,171 1,364,879 Total licenses and permits 1,013,500 1,013,500 1,485,658 472,158 1,425,695 Intergovernmental: MSA - maintenance 151,755 151,755 163,776 12,021 173,566 Fire state aid 64,000 64,000 80,470 16,470 76,608 Other state aid 4,820 4,820 10,983 6,163 23,020 County and local 1,500 1,500 11,951 10,451 - Total intergovernmental 222,075 222,075 267,180 45,105 273,194 Charges for services 757,664 757,664 1,064,375 306,711 1,022,028 Fines and forfeits 35,000 35,000 45,749 10,749 33,584 Special assessments - - 930 930 164,236 Investment income (loss)77,000 77,000 (13,605) (90,605) 164,236 Miscellaneous 133,500 133,500 177,000 43,500 183,711 Total revenues 6,063,618 6,063,618 6,892,451 828,833 6,801,311 See accompanying notes to the required supplementary information. 84 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 4 For The Year Ended December 31, 2021 With Comparative Actual Amounts For The Year Ended December 31, 2020 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) 2020 Actual Amounts Original Final Expenditures: General government: Mayor and city council: Current: Personal services $27,786 $27,786 $27,774 $12 $27,792 Supplies 4,757 4,757 4,132 625 1,755 Other services and charges 24,750 24,750 22,724 2,026 19,994 Total mayor and city council 57,293 57,293 54,630 2,663 49,541 Finance and Administration: Current: Personal services 339,918 339,918 331,656 8,262 261,246 Supplies 6,600 6,600 4,611 1,989 2,128 Other services and charges 292,426 292,426 257,858 34,568 341,927 Total finance and administration 638,944 638,944 594,125 44,819 605,301 Elections: Current: Personal services - - 1,606 (1,606) 9,655 Other services and charges 3,150 3,150 3,506 (356) 3,093 Total elections 3,150 3,150 5,112 (1,962) 12,748 Communications: Current: Personal services 38,627 38,627 34,967 3,660 33,183 Other services and charges 11,139 11,139 9,475 1,664 9,721 Total communications 49,766 49,766 44,442 5,324 42,904 City Facilities: Current: Supplies 900 900 127 773 124 Other services and charges 22,063 22,063 27,220 (5,157) 28,202 Total city facilities 22,963 22,963 27,347 (4,384) 28,326 Engineering: Current: Other services and charges 40,000 40,000 30,000 10,000 30,000 Total engineering 40,000 40,000 30,000 10,000 30,000 Planning and Zoning: Current: Personal services 230,934 230,934 201,391 29,543 205,566 Supplies 150 150 2,092 (1,942)110 Other services and charges 44,324 44,324 97,844 (53,520) 30,758 Total planning and zoning 275,408 275,408 301,327 (25,919) 236,434 Total general government 1,087,524 1,087,524 1,056,983 30,541 1,005,254 See accompanying notes to the required supplementary information. 85 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 4 For The Year Ended December 31, 2021 With Comparative Actual Amounts For The Year Ended December 31, 2020 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) 2020 Actual Amounts Original Final Expenditures (continued): Public safety: Police: Current: Contracted services $920,183 $920,183 $901,120 $19,063 $761,969 Other services and charges 1,800 1,800 - 1,800 - Total police 921,983 921,983 901,120 20,863 761,969 Fire protection: Current: Personal services 598,939 598,939 486,897 112,042 406,657 Fire state aid 64,000 64,000 80,470 (16,470) 76,608 Supplies 45,279 45,279 50,199 (4,920) 29,640 Other services and charges 175,594 175,594 187,584 (11,990) 206,047 Total fire protection 883,812 883,812 805,150 78,662 718,952 Building inspection: Current: Personal services 550,584 550,584 427,955 122,629 319,006 Supplies 5,700 5,700 4,423 1,277 2,821 Other services and charges 369,858 369,858 799,142 (429,284) 776,664 Capital outlay - - - - - Total building inspection 926,142 926,142 1,231,520 (305,378) 1,098,491 Animal control: Current: Other services and charges 13,000 13,000 14,161 (1,161) 13,066 Prosecution: Current: Other services and charges 51,000 51,000 50,212 788 48,392 Emergency communications: Current: Other services and charges 3,350 3,350 1,514 1,836 900 Total public safety 2,799,287 2,799,287 3,003,677 (204,390) 2,641,770 See accompanying notes to the required supplementary information. 86 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 4 For The Year Ended December 31, 2021 With Comparative Actual Amounts For The Year Ended December 31, 2020 1508682 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) 2020 Actual Amounts Original Final Expenditures (continued): Public works: Current: Personal services $632,569 $632,569 $523,942 $108,627 $538,411 Supplies 184,700 184,700 160,759 23,941 188,759 Other services and charges 793,925 793,925 803,747 (9,822) 748,929 Total public works 1,611,194 1,611,194 1,488,448 122,746 1,476,099 Culture and Recreation: Parks: Current: Personal services 121,944 121,944 126,603 (4,659) 148,001 Supplies 18,300 18,300 18,798 (498) 20,183 Other services and charges 134,623 134,623 113,289 21,334 141,882 Total culture and recreation 274,867 274,867 258,690 16,177 310,066 Total expenditures 5,772,872 5,772,872 5,807,798 (34,926) 5,433,189 Revenue over (under) expenditures 290,746 290,746 1,084,653 793,907 1,368,122 Other financing (uses): Transfers in - - - - 765,079 Transfers out (290,746) (290,746) (699,482) (408,736) (1,049,508) Total other financing (uses) (290,746) (290,746) (699,482) (408,736) (284,429) Net change in fund balance $ - $ - 385,171 $385,171 919,457 Fund balance, January 1 5,233,641 4,314,184 Fund balance, December 31 $5,618,812 $5,233,641 See accompanying notes to the required supplementary information. 87 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS For The Last Ten Years 2021 2020 2019 2018 Total OPEB liability: Service cost $13,859 $9,793 $9,525 $8,200 Interest 2,541 3,101 2,431 2,264 Changes of benefit terms - - - - Differences between expected and actual experience - (14,291) - - Changes in assumptions 5,583 6,912 (2,098)2,246 Benefit payments (1,497) - - - Net change in total OPEB liability 20,486 5,515 9,858 12,710 Total OPEB liability - beginning 79,303 73,788 63,930 51,220 Total OPEB liability - ending $99,789 $79,303 $73,788 $63,930 Covered-employee payroll $1,455,967 $1,831,326 $1,605,997 $1,483,782 Total OPEB liability as a percentage of covered-employee payroll 6.9%4.3%4.6%4.3% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to show a ten year trend. Additional years will be added as they become available. See accompanying notes to the required supplementary information. 88 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years State's City's City's City's Proportionate Proportionate Proportionate Proportionate Share (Amount) Share of the Net Plan Fiduciary Share Share (Amount) of the Net Pension Liability Net Position as a Measurement Fiscal Year (Percentage) of of the Net Pension Liability as a Percentage Percentage of the Date Ending the Net Pension Pension Associated with Covered of its Covered Total Pension June 30, December 31, Liability Liability (a) City (b) Total (a+b) Payroll (c) Payroll ((a+b)/c) Liability 2014 2014 0.0191%$897,222 $ - $897,222 $979,703 91.6%78.2% 2015 2015 0.0169%875,846 - 875,846 975,250 89.8%78.2% 2016 2016 0.0159%1,291,001 16,853 1,307,854 1,041,540 125.6%68.9% 2017 2017 0.0189%1,206,564 15,173 1,221,737 1,209,466 101.0%75.9% 2018 2018 0.0191%1,059,590 34,710 1,094,300 1,283,088 85.3%79.5% 2019 2019 0.0193%1,067,054 33,165 1,100,219 1,364,625 80.6%80.2% 2020 2020 0.0207%1,241,060 38,201 1,279,261 1,476,621 86.6%79.1% 2021 2021 0.0202%862,631 26,322 888,953 1,456,866 61.0%87.0% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2014 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 89 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess)Payroll Covered December 31,(a)Contribution (b)(a-b)(c)Payroll (b/c) 2014 $73,182 $73,182 $ - $1,009,407 7.25% 2015 70,582 70,582 - 941,092 7.5% 2016 85,649 85,649 - 1,141,987 7.5% 2017 95,794 95,794 - 1,276,944 7.5% 2018 96,960 96,960 - 1,294,100 7.5% 2019 108,779 108,779 - 1,450,387 7.5% 2020 109,289 109,289 - 1,457,195 7.5% 2021 120,362 120,362 - 1,609,407 7.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2014 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 90 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage Date Ending the Net Pension Pension Covered Covered of the Total June 30, December 31, Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability 2014 2014 0.0090%$97,204 $84,098 115.6%87.1% 2015 2015 0.0090%102,261 86,600 118.1%86.6% 2016 2016 0.0090%361,186 87,111 414.6%63.9% 2017 2017 0.0100%135,012 105,846 127.6%85.4% 2018 2018 0.0163%173,741 172,287 100.8%88.8% 2019 2019 0.0193%205,468 203,030 101.2%89.3% 2020 2020 0.0171%225,396 194,511 115.9%87.2% 2021 2021 0.0165%127,363 194,379 65.5%93.7% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2014 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 91 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 15 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess)Payroll Covered December 31,(a)Contribution (b) (a-b)(c)Payroll (b/c) 2014 $13,035 $13,035 - $85,195 15.30% 2015 14,257 14,257 - 88,005 16.20% 2016 13,967 13,967 - 86,216 16.20% 2017 20,327 20,327 - 125,475 16.20% 2018 30,990 30,990 - 191,350 16.20% 2019 39,225 39,225 - 231,416 16.95% 2020 27,492 27,492 - 155,365 17.70% 2021 47,658 47,658 - 269,254 17.70% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2014 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 92 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 16 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - LAKE ELMO FIREFIGHTERS RELIEF ASSOCIATION For The Last Ten Years Fiscal year ending - December 31,2021 2020 2019 2018 2017 2016 Measurement date - December 31,2020 2019 2018 2017 2016 2015 Total pension liability: Service cost $38,225 $37,293 $28,420 $27,727 $27,579 $28,520 Interest 39,743 42,177 36,119 35,544 36,976 37,130 Changes of assumptions - - 8,730 - 11,690 - Plan changes - - 325,127 - - - Gain or loss (27,779) - (80,312) - (46,403) - Benefit payments - (253,525) (100,987) - - (191,582) Net change in total pension liability 50,189 (174,055) 217,097 63,271 29,842 (125,932) Total pension liability - beginning 724,844 898,899 681,802 618,531 588,689 714,621 Total pension liability - ending (a) $775,033 $724,844 $898,899 $681,802 $618,531 $588,689 Plan fiduciary net position: Contributions - State of Minnesota $76,608 $69,975 $65,533 $61,147 $59,136 $61,166 Net Investment income (loss) 118,822 127,902 (61,227) 156,879 70,101 (48,240) Benefit payments - (253,525) (100,987) - - (191,582) Administrative expense (12,892) (15,741) (13,392) (14,093) (17,419) (13,314) Net change in plan fiduciary net position 182,538 (71,389) (110,073) 203,933 111,818 (191,970) Plan fiduciary net position - beginning 1,097,917 1,169,306 1,279,379 1,075,446 963,628 1,155,598 Plan fiduciary net position - ending (b) $1,280,455 $1,097,917 $1,169,306 $1,279,379 $1,075,446 $963,628 Net pension liability/(asset) - ending (a) - (b) ($505,422) ($373,073) ($270,407) ($597,577) ($456,915) ($374,939) Plan fiduciary net position as a percentage of the total pension liability 165.2% 151.5% 130.1% 187.6% 173.9% 163.7% Covered payroll*N/A N/A N/A N/A N/A N/A Net pension liability as a percentage of covered employee payroll N/A N/A N/A N/A N/A N/A *The Relief Association is comprised of volunteers, therefore, there are no payroll expenditures. (i.e., there are no covered payroll amounts or percentage calculations.) The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2016 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 93 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 17 SCHEDULE OF CONTRIBUTIONS - LAKE ELMO FIREFIGHTERS RELIEF ASSOCIATION For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll* Covered* December 31,(a)Contribution (b)(a-b)(c)Payroll (b/c) 2016 $ - $61,166 ($61,166) N/A N/A 2017 - 59,136 (59,136) N/A N/A 2018 - 61,147 (61,147) N/A N/A 2019 - 65,533 (65,533) N/A N/A 2020 - 69,975 (69,975) N/A N/A 2021 - 76,608 (76,608) N/A N/A *The Relief Association is comprised of volunteers, therefore, there are no payroll expenditures. (i.e., there are no covered payroll amounts or percentage calculations.) The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2016 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 94 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2021 Note A LEGAL COMPLIANCE – BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the department level for the General Fund. Note B OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. 2021 Changes in Actuarial Assumptions:  The discount rate was changed from 2.75% to 2.00%. 2020 Changes in Actuarial Assumptions:  The discount rate was changed from 3.71% to 2.75% based on updated 20-year municipal bond rates.  Healthcare trend rates were reset to reflect updated cost increase expectations, including the repeal of the Affordable Care Act’s Excise Tax on high-cost health insurance plans. In addition, the medical trend rate adjustments to reflect the projected effect of the Affordable Care Act’s Excise Tax on high-cost health insurance plans was removed because the tax was repealed.  Medical per capita claims costs were updated to reflect recent experience.  Salary increase rates were updated from the rates used in the July 1, 2017 PERA General Employees Plan valuation to the rates used in the July 1, 2019 valuation.  Mortality rates were updated from the RP-2014 tables to the rates used in the July 1, 2019 PERA General Employees Plan actuarial valuation.  The inflation assumption was changed from 2.75% to 2.50% based on an updated historical analysis of inflation rates and forward-looking market expectations. 2019 Changes in Actuarial Assumptions:  The discount rate was changed from 3.31% to 3.71%. Note C PENSION INFORMATION PERA – General Employees Retirement Fund 2021 Changes in Actuarial Assumptions:  The investment return and single discount rates were changed from 7.50% to 6.50% 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% to 2.25%.  The payroll growth assumption was decreased from 3.25% to 3.00%.  Assumed salary increase rates were decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination and disability were also changed.  Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments. 95 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2021  The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.  The 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% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. 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 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. 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 the Plan Provisions:  The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2015 to MP-2017.  The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year thereafter to 1.25% per year. 2017 Changes in Actuarial Assumptions:  The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member liability.  The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. 2016 Changes in Actuarial Assumptions:  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%.  Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 96 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2021 PERA – Public Employees Police and Fire Fund 2021 Changes in Actuarial Assumptions:  The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes.  The inflation assumption was changed from 2.50% to 2.25%.  The payroll growth assumption was changed from 3.25% to 3.00%.  The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020.  Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 experience study. The changes result in a decrease in gross salary increase rates, 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% to 70%. 2020 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2018 to MP-2019. 2019 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2017 to MP-2018. 2018 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2016 to MP-2017. 2017 Changes in Actuarial Assumptions:  The single discount rate was changed from 5.6% to 7.5%.  Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34% lower than the previous rates.  Assumed rates of retirement were changed, resulting in fewer retirements.  The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2 percent for non-vested 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% 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% to 60%.  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. 97 CITY OF LAKE ELMO, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2021  The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% per year through 2064 and 2.50% thereafter. 2016 Changes in Actuarial Assumptions:  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% per year thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%.  The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Single Employer – Fire Division 2018 Changes Changes in Benefit Terms:  The benefit level increased from $3,400 to $5,850 for each year of service. 98 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS 99 CITY OF LAKE ELMO, MINNESOTA COMBINING BALANCE SHEET Statement 18 NONMAJOR GOVERNMENTAL FUNDS December 31, 2021 Special Capital Revenue Project Assets 2021 2020 Cash and investments $517,589 $1,585,106 $2,102,695 $2,431,717 Accrued interest receivable 361 1,149 1,510 5,236 Accounts receivable - - - 100,435 Due from other funds - - - 16,059 Special assessments receivable: Deferred - 17,833 17,833 17,833 Total assets $517,950 $1,604,088 $2,122,038 $2,571,280 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $19,200 $44,884 $64,084 $71,080 Contracts and retainage payable - 28,191 28,191 - Due to other funds - 222,457 222,457 1,455,847 Deposits payable - 75,000 75,000 75,000 Unearned revenue 476,577 271,230 747,807 271,230 Total liabilities 495,777 641,762 1,137,539 1,873,157 Deferred inflows of resources: Unavailable revenue - 17,833 17,833 17,833 Fund balance: Restricted - 448,765 448,765 1,278,472 Committed 7,673 - 7,673 7,691 Assigned 14,500 741,732 756,232 920,043 Unassigned - (246,004) (246,004) (1,525,916) Total fund balance 22,173 944,493 966,666 680,290 Total liabilities, deferred inflows of resources, and fund balance $517,950 $1,604,088 $2,122,038 $2,571,280 With Comparative Totals For December 31, 2020 Total Nonmajor Governmental Funds 100 CITY OF LAKE ELMO, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 Special Capital Revenue Project Revenues:2021 2020 Intergovernmental $26,668 $428,280 $454,948 $749,999 Charges for services 57,539 30,000 87,539 251,213 Park dedication fees - - - 714,558 Investment income (loss) 806 (1,306) (500) 67,964 Total revenues 85,013 456,974 541,987 1,783,734 Expenditures: Current: General government - - - 4,289 Public works - - - 12,982 Economic development authority 53,264 - 53,264 46,371 Capital outlay: General government 26,668 - 26,668 - Public works - 1,717,634 1,717,634 1,250,434 Debt service: Principal 881,000 - 881,000 - Interest and fiscal charges 61,389 - 61,389 1,700 Total expenditures 1,022,321 1,717,634 2,739,955 1,315,776 Revenues over (under) expenditures (937,308) (1,260,660) (2,197,968) 467,958 Other financing sources: Transfers in 30,000 478,182 508,182 45,661 Transfers out - (183,238) (183,238) (850,736) Issuance of debt 815,000 2,215,460 3,030,460 - Bond premium 45,450 100,900 146,350 - Total other financing sources 890,450 2,611,304 3,501,754 (805,075) Net change in fund balance (46,858) 1,350,644 1,303,786 (337,117) Fund balance - January 1 69,031 (406,151) (337,120) 1,017,407 Fund balance - December 31 $22,173 $944,493 $966,666 $680,290 Reconciliation of beginning fund balance to prior year ending fund balance: Prior year ending fund balance reported above $680,290 Reclassification of the Park Dedication (404) fund balance, now presented as major (1,193,853) Reclassification of the Heritage Farms Street & Utility Improvements (434) fund balance, now presented as major 163,866 Reclassification of the City Hall / Fire Station Bldg Project (437) fund balance, now presented as major 12,577 Fund balance - January 1, 2021 as reported on this statement ($337,120) Governmental Funds Total Nonmajor 101 CITY OF LAKE ELMO, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 20 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2021 Economic Lions Park Development ARPA Sign Program Authority Fund (207) (221) (252) Assets 2021 2020 Cash and investments $7,668 $15,420 $494,501 $517,589 $69,506 Accrued interest receivable 5 3 353 361 321 Total assets $7,673 $15,423 $494,854 $517,950 $69,827 Liabilities and Fund Balance Liabilities: Accounts payable $ - $3,367 $15,833 $19,200 $796 Unearned revenue - - 476,577 476,577 - Total liabilities 0 3,367 492,410 495,777 796 Fund balance: Committed 7,673 - - 7,673 7,691 Assigned - 12,056 2,444 14,500 61,340 Total fund balance 7,673 12,056 2,444 22,173 69,031 Total liabilities and fund balance $7,673 $15,423 $494,854 $517,950 $69,827 With Comparative Totals For December 31, 2020 Total Nonmajor Special Revenue Funds 102 CITY OF LAKE ELMO, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 21 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 Economic Lions Park Development ARPA Sign Program Authority Fund (207) (221) (252) Revenues:2021 2020 Intergovernmental $ - $ - $26,668 $26,668 $749,999 Charges for services - 57,539 - 57,539 87,778 Investment income (loss) (18) (1,620) 2,444 806 22,638 Total revenues (18) 55,919 29,112 85,013 860,415 Expenditures: Current: General government - - - - 4,289 Economic development authority - 53,264 - 53,264 46,371 Capital outlay: General government - - 26,668 26,668 - Debt service: Principal - 881,000 - 881,000 - Interest and fiscal charges - 61,389 - 61,389 1,700 Total expenditures 0 995,653 26,668 1,022,321 52,360 Revenues over (under) expenditures (18) (939,734) 2,444 (937,308) 808,055 Other financing sources (uses): Transfers in - 30,000 - 30,000 30,000 Transfers out - - - - (850,736) Issuance of debt - 815,000 - 815,000 - Bond premium - 45,450 - 45,450 - Total other financing sources (uses) 0 890,450 0 890,450 (820,736) Net change in fund balance (18) (49,284) 2,444 (46,858) (12,681) Fund balances - January 1 7,691 61,340 - 69,031 81,712 Fund balances - December 31 $7,673 $12,056 $2,444 $22,173 $69,031 Special Revenue Funds Total Nonmajor 103 - This page intentionally left blank - 104 CITY OF LAKE ELMO, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 22 NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2 December 31, 2021 Manning and CSAH 19 / Infrastructure Hudson Future Hudson Blvd Reserve City Facilities Stoplight Interchange (409)(411)(423)(425) Assets Cash and investments $563,577 $96,586 $261,011 $ - Accrued interest receivable 420 69 186 - Accounts receivable - - - - Due from other funds - - - - Special assessments receivable: Deferred 17,833 - - - Total assets $581,830 $96,655 $261,197 $0 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - Contracts and retainage payable - - - - Due to other funds - - - 137,281 Deposits payable - - - - Unearned revenue - - 250,000 - Total liabilities 0 0 250,000 137,281 Deferred inflows of resources: Unavailable revenue 17,833 - - - Fund balance (deficit): Restricted - - - Assigned 563,997 96,655 11,197 - Unassigned - - - (137,281) Total fund balance (deficit)563,997 96,655 11,197 (137,281) Total liabilities, deferred inflows of resources, and fund balance $581,830 $96,655 $261,197 $0 With Comparative Totals For December 31, 2020 105 CITY OF LAKE ELMO, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2021 With Comparative Totals For December 31, 2020 Inwood and Railroad CSAH 13 5th Street Crossing Old Village Phase 2 Stoplight Improvements Phases 5 & 6 (427)(429)(430)(431) Assets Cash and investments $ - $ - $89,568 $370,152 Accrued interest receivable - - 64 264 Accounts receivable - - - - Due from other funds - - - - Special assessments receivable: Deferred - - - - Total assets $0 $0 $89,632 $370,416 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $163 $ - $183 $18,908 Contracts and retainage payable - - - 28,191 Due to other funds 18,722 28,202 - - Deposits payable - - - - Unearned revenue - - 21,230 - Total liabilities 18,885 28,202 21,413 47,099 Deferred inflows of resources: Unavailable revenue - - - - Fund balance (deficit): Restricted - - - 323,317 Assigned - - 68,219 - Unassigned (18,885)(28,202) - - Total fund balance (deficit)(18,885)(28,202)68,219 323,317 Total liabilities, deferred inflows of resources, and fund balance $0 $0 $89,632 $370,416 106 Statement 22 Page 2 of 2 CSAH 15 Manning and Tamarack Farm CSAH 15 TH36 Lake Manning Avenue Highway 36 Estates Street Manning Avenue Elmo Avenue 2022 Street Phase 3 Interchange Improvements and 30th Street Improvements Improvements (433) (435) (436) (438) (440) (441) 2021 2020 $ - $76,609 $127,603 $ - $ - $ - $1,585,106 $2,362,211 - 55 91 - - - 1,149 4,915 - - - - - - - 100,435 - - - - - - - 16,059 - - - - - - 17,833 17,833 $0 $76,664 $127,694 $0 $0 $0 $1,604,088 $2,501,453 $ - $ - $2,246 $65 $195 $23,124 $44,884 $70,284 - - - - - - 28,191 - 3,525 - - 7,476 1,507 25,744 222,457 1,455,847 - 75,000 - - - - 75,000 75,000 - - - - - - 271,230 271,230 3,525 75,000 2,246 7,541 1,702 48,868 641,762 1,872,361 - - - - - - 17,833 17,833 - - 125,448 - - - 448,765 1,278,472 - 1,664 - - - - 741,732 858,703 (3,525) - - (7,541) (1,702) (48,868) (246,004) (1,525,916) (3,525) 1,664 125,448 (7,541) (1,702) (48,868) 944,493 611,259 $0 $76,664 $127,694 $0 $0 $0 $1,604,088 $2,501,453 Capital Project Funds Total Nonmajor 107 CITY OF LAKE ELMO, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 CSAH 15 / Infrastructure CSAH 14 Reserve City Facilities Village Project Realignment (409)(411)(413)(414) Revenues: Intergovernmental $ - $ - $ - $ - Charges for services - - - - Park dedication fees - - - - Investment income (loss)(598)(219) - - Total revenues (598)(219)0 0 Expenditures: Current: Public works - - - - Capital outlay: Public works (150) - - 7,357 Total expenditures (150)0 0 7,357 Other financing sources (uses): Transfers in - - 378,736 16,904 Transfers out (69,446) - - - Issuance of debt - - - - Bond premium - - - - Total other financing sources (uses)(69,446)0 378,736 16,904 Net change in fund balance (69,894)(219)378,736 9,547 Fund balances - January 1 633,891 96,874 (378,736)(9,547) Fund balances - December 31 $563,997 $96,655 $0 $0 108 Statement 23 Page 1 of 2 Manning and Manning Corridor CSAH 19 /2019 Street Old Village 2018 Street Hudson Future and Safety Hudson Blvd and Utility Phase 4 Improvements Stoplight Management Interchange Project (421)(422)(423)(424)(425)(426) $ - $ - $ - $ - $428,280 $ - - - - - - - - - - - - - (81)(309)(591) - - - (81)(309)(591)0 428,280 0 - - - - - - - - - - - - 000000 - - - 3,086 - 5,731 (23,774)(90,018) - - - - - - - - - - - - - - - - (23,774)(90,018)0 3,086 0 5,731 (23,855)(90,327)(591)3,086 428,280 5,731 23,855 90,327 11,788 (3,086)(565,561)(5,731) $0 $0 $11,197 $0 ($137,281)$0 109 CITY OF LAKE ELMO, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 Inwood and Railroad CSAH 15 CSAH 13 5th Street Crossing Old Village Manning Avenue Phase 2 Stoplight Improvements Phases 5 & 6 Phase 3 (427)(429)(430)(431)(433) Revenues: Intergovernmental $ - $ - $ - $ - $ - Charges for services - 30,000 - - - Park dedication fees - - - - - Investment income (loss) - - (313)728 - Total revenues 0 30,000 (313)728 0 Expenditures: Current: Public works - - - - - Capital outlay: Public works 8,250 24,297 16,217 942,020 455 Total expenditures 8,250 24,297 16,217 942,020 455 Other financing sources (uses): Transfers in - 73,725 - - - Transfers out - - - - - Issuance of debt - - - 1,449,780 - Bond premium - - - 66,028 - Total other financing sources (uses)0 73,725 0 1,515,808 0 Net change in fund balance (8,250)79,428 (16,530)574,516 (455) Fund balances - January 1 (10,635)(107,630)84,749 (251,199)(3,070) Fund balances - December 31 ($18,885)($28,202)$68,219 $323,317 ($3,525) 110 Statement 23 Page 2 of 2 Manning and Tamarack Farm CSAH 15 TH36 Lake Highway 36 Estates Street Manning Avenue Elmo Avenue 2022 Street Interchange Improvements and 30th Street Improvements Improvements (435)(436)(438)(440)(441) 2021 2020 $ - $ - $ - $ - $ - $428,280 $ - - - - - - 30,000 163,435 - - - - - - 714,558 (174)251 - - - (1,306)45,326 (174)251 0 0 0 456,974 923,319 - - - - - - 12,982 - 661,077 7,541 1,702 48,868 1,717,634 1,250,434 0 661,077 7,541 1,702 48,868 1,717,634 1,263,416 - - - - - 478,182 15,661 - - - - - (183,238) - - 765,680 - - - 2,215,460 - - 34,872 - - - 100,900 - 0 800,552 0 0 0 2,611,304 15,661 (174)139,726 (7,541)(1,702)(48,868)1,350,644 (324,436) 1,838 (14,278) - - - (406,151)935,695 $1,664 $125,448 ($7,541)($1,702)($48,868)$944,493 $611,259 Reconciliation of beginning fund balance to prior year ending fund balance: Prior year ending fund balance reported above $611,259 Reclassification of the Park Dedication (404) fund balance, now presented as major (1,193,853) Reclassification of the Heritage Farms Street & Utility Improvements (434) fund balance, now presented as major 163,866 Reclassification of the City Hall / Fire Station Bldg Project (437) fund balance, now presented as major 12,577 Fund balance - January 1, 2021 as reported on this statement ($406,151) Capital Project Funds Total Nonmajor 111 CITY OF LAKE ELMO, MINNESOTA BALANCE SHEET DEBT SERVICE FUND BY BOND ISSUE December 31, 2021 2010B GO 2011A GO 2012B GO 2014A GO CIP Bonds Improvement Improvement Improvement (318) Bonds (319) Bonds (321) Bonds (323) Assets Cash and investments $191,086 $181,262 $70,620 $1,008,700 Accrued interest receivable 136 181 - 719 Property taxes receivable: Due from county - - - - Special assessments receivable: Due from county - - 179 323 Delinquent - - 170 - Deferred - 10,293 33,868 148,826 Total assets $191,222 $191,736 $104,837 $1,158,568 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Due to other funds $ - $ - $ - $ - Deferred inflows of resources: Unavailable revenue - 10,293 34,038 148,826 Fund balance (deficit): Restricted 191,222 181,443 70,799 1,009,742 Assigned - - - - Total fund balance (deficit) 191,222 181,443 70,799 1,009,742 Total liabilities, deferred inflows of resources, and fund balance $191,222 $191,736 $104,837 $1,158,568 With Comparative Totals For December 31, 2020 112 Statement 24 2015A GO 2016A GO 2017A GO 2019 2018A GO 2021A GO Improvement Improvement Improvement Improvement Equipment Cert. Improvement Bonds (324) Bonds (326) Bonds (327) Bonds (329) Bonds (330) Bonds (331) 2021 2020 $142,250 $694,051 $307,101 $722,288 $22,145 $547,363 $3,886,866 $4,573,126 101 495 219 434 16 395 2,696 9,585 - - - - - - - 11,208 - - 837 - - - 1,339 1,055 538 - - - - - 708 1,597 324,520 578,213 453,270 311,482 - 1,269,112 3,129,584 2,175,600 $467,409 $1,272,759 $761,427 $1,034,204 $22,161 $1,816,870 $7,021,193 $6,772,171 $ - $ - $ - $ - $ - $ - $ - $41,437 325,058 578,213 453,270 311,482 - 1,269,112 3,130,292 2,177,197 142,351 694,546 308,157 722,722 22,161 547,758 3,890,901 4,536,360 - - - - - - - 17,177 142,351 694,546 308,157 722,722 22,161 547,758 3,890,901 4,553,537 $467,409 $1,272,759 $761,427 $1,034,204 $22,161 $1,816,870 $7,021,193 $6,772,171 Total Debt Service Fund 113 CITY OF LAKE ELMO, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE DEBT SERVICE FUND BY BOND ISSUE For The Year Ended December 31, 2021 With Comparative Totals For The Year Ended December 31, 2020 2009B GO 2010A GO 2010B GO 2011A GO 2012B GO 2013A GO 2014A GO Improvement Improvement CIP Bonds Improvement Improvement Improvement Improvement Bonds (316) Bonds (317) (318) Bonds (319) Bonds (321) Bonds (322) Bonds (323) Revenues: General property taxes $ - $ - $207,338 $ - $67,313 $ - $205,117 Special assessments 140 6,774 - 5,345 16,361 4,929 44,497 Investment income (loss) (254) (1,858) 307 (940) - (6,972) (2,997) Total revenues (114) 4,916 207,645 4,405 83,674 (2,043) 246,617 Expenditures: Debt service: Principal - 75,000 170,000 90,000 90,000 920,000 215,000 Interest and fiscal charges - 1,050 25,255 3,600 4,870 37,816 47,988 Total expenditures 0 76,050 195,255 93,600 94,870 957,816 262,988 Revenues over (under) expenditures (114) (71,134) 12,390 (89,195) (11,196) (959,859) (16,371) Other financing sources (uses): Transfers in - - - - 122,555 - - Transfers out (17,063) (11,646) - - - (93,846) - Issuance of debt - - - - - - - Total other financing sources (uses)(17,063) (11,646)0 0 122,555 (93,846)0 Net change in fund balance (17,177) (82,780) 12,390 (89,195) 111,359 (1,053,705) (16,371) Fund balances - January 1 17,177 82,780 178,832 270,638 (40,560) 1,053,705 1,026,113 Fund balances - December 31 $0 $0 $191,222 $181,443 $70,799 $0 $1,009,742 114 Statement 25 2015A GO 2016A GO 2017A GO 2019 2018A GO 2021A GO Improvement Improvement Improvement Improvement Equipment Cert. Improvement Interfund Bonds (324) Bonds (326) Bonds (327) Bonds (329) Bonds (330) Bonds (331) Elimination 2021 2020 $12,722 $188,999 $339,904 $293,148 $123,848 $ - $ - $1,438,389 $1,412,506 67,861 105,560 80,034 52,035 - 478,300 - 861,836 474,099 (2,235) (2,285) (3,086) (2,290) 57 2,689 - (19,864) 82,990 78,348 292,274 416,852 342,893 123,905 480,989 0 2,280,361 1,969,595 170,000 265,000 430,000 240,000 95,000 - - 2,760,000 1,790,000 20,437 36,150 87,874 76,850 21,668 850 - 364,408 418,599 190,437 301,150 517,874 316,850 116,668 850 0 3,124,408 2,208,599 (112,089) (8,876) (101,022) 26,043 7,237 480,139 - (844,047) (239,004) - - - 113,792 - - (122,555) 113,792 85,657 - - - - - - 122,555 - - - - - - - 67,619 - 67,619 - 0 0 0 113,792 0 67,619 0 181,411 85,657 (112,089) (8,876) (101,022) 139,835 7,237 547,758 0 (662,636) (153,347) 254,440 703,422 409,179 582,887 14,924 - - 4,553,537 4,706,884 $142,351 $694,546 $308,157 $722,722 $22,161 $547,758 $0 $3,890,901 $4,553,537 Total Debt Service Fund 115 - This page intentionally left blank - 116 STATISTICAL SECTION (UNAUDITED) 117 - This page intentionally left blank - 118 This part of the City of Lake Elmo, Minnesota's Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City's overall financial health. Table Number Financial Trends Tables 1-4 These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Tables 5-9 These tables contain information to help the reader assess the City's most significant local revenue source, property taxes, as well as water and sanitary sewer rates and gallons sold. Debt Capacity Tables 10-14 These tables present information to help the reader assess 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 Tables 15-16 These tables offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information Tables 17-19 These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. STATISTICAL SECTION (UNAUDITED) Contents 119 CITY OF LAKE ELMO, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2021 2020 2019 2018 Governmental activities: Net investment in capital assets $34,784,806 $29,694,288 $24,771,065 $15,396,520 Restricted 10,249,092 8,171,161 8,596,759 10,121,648 Unrestricted 12,101,304 5,284,397 4,231,363 1,086,636 Total governmental activities net position $57,135,202 $43,149,846 $37,599,187 $26,604,804 Business-type activities: Net investment in capital assets $53,867,479 $44,371,375 $33,052,649 $18,382,934 Restricted - - - - Unrestricted 19,888,783 18,578,807 16,528,968 13,842,382 Total business-type activities net position $73,756,262 $62,950,182 $49,581,617 $32,225,316 Primary government: Net investment in capital assets $88,652,285 $74,065,663 $57,823,714 $33,779,454 Restricted 10,249,092 8,171,161 8,596,759 10,121,648 Unrestricted 31,990,087 23,863,204 20,760,331 14,929,018 Total primary government net position $130,891,464 $106,100,028 $87,180,804 $58,830,120 GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. GASB 75 was implemented in 2018. Net position was restated for 2017 to reflect the reporting of the OPEB liability and OPEB related deferred inflows of resources. Net position for years prior to 2017 was not restated. 120 Table 1 2017 2016 2015 2014 2013 2012 $8,883,320 $9,032,535 $8,723,329 $7,957,840 $9,056,353 $8,782,840 5,057,169 4,704,133 3,446,142 1,106,200 1,225,849 4,205,247 4,818,383 4,136,292 3,942,646 5,405,920 4,593,463 918,996 $18,758,872 $17,872,960 $16,112,117 $14,469,960 $14,875,665 $13,907,083 $12,180,378 $12,506,474 $10,170,351 $10,567,418 $6,855,807 $6,788,377 2,695,734 1,473,164 1,876,119 2,387,312 2,612,569 39,153 9,151,417 6,400,375 3,577,285 1,100,422 1,846,681 1,105,847 $24,027,529 $20,380,013 $15,623,755 $14,055,152 $11,315,057 $7,933,377 $21,063,698 $21,539,009 $18,893,680 $18,525,258 $15,912,160 $15,571,217 7,752,903 6,177,297 5,322,261 3,493,512 3,838,418 4,244,400 13,969,800 10,536,667 7,519,931 6,506,342 6,440,144 2,024,843 $42,786,401 $38,252,973 $31,735,872 $28,525,112 $26,190,722 $21,840,460 121 CITY OF LAKE ELMO, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2021 2020 2019 2018 Expenses Governmental activities: General government $1,052,188 $1,008,916 $1,181,219 $1,266,269 Public safety 3,091,321 2,681,784 2,058,419 2,161,082 Public works 3,735,767 4,012,661 3,728,247 2,192,092 Culture and recreation 391,240 428,083 361,730 524,445 Economic Development Authority 53,264 46,371 71,609 47,702 Interest and fees on long-term debt 353,256 363,988 395,106 352,376 Total governmental activities expenses 8,677,036 8,541,803 7,796,330 6,543,966 Business-type activities: Water 2,665,708 2,383,252 1,940,148 2,068,178 Sewer 1,563,008 1,481,586 1,082,997 846,032 Storm sewer 830,044 753,177 469,765 315,967 Total business-type activities expenses 5,058,760 4,618,015 3,492,910 3,230,177 Total primary government expenses $13,735,796 $13,159,818 $11,289,240 $9,774,143 Program revenues Governmental activities: Charges for services: General government $485,785 $421,792 $553,870 $379,378 Public safety 2,199,655 2,146,319 1,574,359 1,938,163 Public works 104,817 243,060 126,721 - Culture and recreation 25 2,812 1,430 - Economic Development Authority 57,539 87,778 99,690 78,573 Operating grants and contributions 279,690 1,039,823 795,483 248,915 Capital grants and contributions 8,981,866 4,823,628 11,076,353 4,970,565 Total governmental activities program revenues 12,109,377 8,765,212 14,227,906 7,615,594 Business-type activities: Charges for services: Water 1,711,596 1,239,404 962,003 951,985 Sewer 549,567 432,583 306,041 252,614 Storm sewer 512,624 369,689 380,645 322,700 Operating grants and contributions 35,635 21,893 122,350 - Capital grants and contributions 18,326,363 15,636,661 14,114,787 7,466,627 Total business-type activities 21,135,785 17,700,230 15,885,826 8,993,926 Total primary government program revenues $33,245,162 $26,465,442 $30,113,732 $16,609,520 122 Table 2 Page 1 of 2 2017 2016 2015 2014 2013 2012 $1,503,251 $1,358,370 $1,134,132 $1,072,888 $1,103,337 $1,093,204 1,528,253 1,308,360 1,344,282 1,530,609 1,277,798 1,302,857 2,800,044 1,698,566 1,377,969 1,032,426 1,273,977 891,169 1,299,551 660,947 639,006 448,361 424,687 362,432 - - - - - - 225,910 178,266 215,611 165,028 133,694 316,039 7,357,009 5,204,509 4,711,000 4,249,312 4,213,493 3,965,701 2,022,446 1,409,832 1,363,043 1,069,511 958,870 872,786 1,030,058 380,650 250,866 353,438 119,370 53,903 213,514 150,302 103,536 149,887 86,989 73,590 3,266,018 1,940,784 1,717,445 1,572,836 1,165,229 1,000,279 $10,623,027 $7,145,293 $6,428,445 $5,822,148 $5,378,722 $4,965,980 $206,856 $51,009 $42,706 $45,161 $32,778 $48,476 2,101,890 1,752,522 866,708 496,916 414,472 379,557 - - 3,615 - 2,647 3,256 - - 26,214 10,753 17,000 9,341 - - - - - - 229,960 235,214 249,094 204,462 208,276 160,060 2,290,265 1,452,469 2,038,940 557,601 1,364,622 160,444 4,828,971 3,491,214 3,227,277 1,314,893 2,039,795 761,134 2,628,848 1,801,228 1,850,240 1,291,091 596,421 699,159 2,435,749 1,315,948 1,523,067 741,054 53,142 65,737 289,375 213,233 229,252 214,915 191,087 171,229 - - - - - - 1,489,922 3,464,567 - 1,159,222 3,781,528 115,127 6,843,894 6,794,976 3,602,559 3,406,282 4,622,178 1,051,252 $11,672,865 $10,286,190 $6,829,836 $4,721,175 $6,661,973 $1,812,386 123 CITY OF LAKE ELMO, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2021 2020 2019 2018 Net (expense) revenue: Governmental activities $3,432,341 $223,409 $6,431,576 $1,071,628 Business-type activities 16,077,025 13,082,215 12,392,916 5,763,749 Total primary government, net 19,509,366 13,305,624 18,824,492 6,835,377 General revenues and other changes in net position: Governmental activities: General property taxes 5,294,950 4,960,342 4,181,914 3,610,106 Unrestricted grants and contributions 4,639 4,337 4,956 6,868 Unrestricted investment earnings (loss) (13,874) 348,766 331,010 115,583 Miscellaneous - - - - Gain on disposal of capital assets 17,300 13,805 44,927 8,991 Transfers 5,250,000 - - 840 Total governmental activities 10,553,015 5,327,250 4,562,807 3,742,388 Business-type activities: Unrestricted grants and contributions - - - 956 Unrestricted investment earnings (loss)(20,945)286,350 411,206 96,425 Extraordinary item - - 4,552,179 - Transfers (5,250,000) - - (840) Total business-type activities (5,270,945)286,350 4,963,385 96,541 Total primary government $5,282,070 $5,613,600 $9,526,192 $3,838,929 Change in net position: Governmental activities $13,985,356 $5,550,659 $10,994,383 $4,814,016 Business-type activities 10,806,080 13,368,565 17,356,301 5,860,290 Total primary government change in net position $24,791,436 $18,919,224 $28,350,684 $10,674,306 GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated. GASB 75 was implemented in 2018. OPEB expense for years prior to 2018 was not restated. 124 Table 2 Page 2 of 2 2017 2016 2015 2014 2013 2012 ($2,528,038) ($1,713,295) ($1,483,723) ($2,934,419) ($2,173,698) ($3,204,567) 3,577,876 4,854,192 1,885,114 1,833,446 3,456,949 50,973 1,049,838 3,140,897 401,391 (1,100,973) 1,283,251 (3,153,594) 3,040,413 3,226,739 3,204,119 3,200,291 3,231,609 3,183,078 2,749 8,584 2,749 2,749 2,749 - 48,987 43,228 46,589 87,586 35,259 111,705 158,350 52,479 73,738 125,400 1,833 42,599 - - - - 8,979 - - 143,105 220,842 (887,312) - - 3,250,499 3,474,135 3,548,037 2,528,714 3,280,429 3,337,382 - 748 - - - - 46,757 44,423 39,757 19,337 30,346 10,282 - - - - - - - (143,105)(220,842)887,312 - - 46,757 (97,934)(181,085)906,649 30,346 10,282 $3,297,256 $3,376,201 $3,366,952 $3,435,363 $3,310,775 $3,347,664 $722,461 $1,760,840 $2,064,314 ($405,705)$1,106,731 $132,815 3,624,633 4,756,258 1,704,029 2,740,095 3,487,295 61,255 $4,347,094 $6,517,098 $3,768,343 $2,334,390 $4,594,026 $194,070 125 CITY OF LAKE ELMO, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2021 2020 2019 2018 General Fund: Nonspendable $ - $21,206 $28,162 $18,951 Committed - - - - Unassigned 5,618,812 5,212,435 4,286,022 4,756,695 Total general fund 5,618,812 5,233,641 4,314,184 4,775,646 All other governmental funds: Nonspendable - - - 395 Restricted 17,458,949 5,814,832 5,973,451 6,133,168 Committed 7,673 7,314 24,070 11,003 Assigned 7,571,501 2,653,880 1,746,202 1,198,909 Unassigned (246,004)(1,525,916)(757,968)(3,043,623) Total all other governmental funds 24,792,119 6,950,110 6,985,755 4,299,852 Total governmental funds $30,410,931 $12,183,751 $11,299,939 $9,075,498 126 Table 3 2017 2016 2015 2014 2013 2012 $410,193 $409,222 $432,306 $638,963 $859,072 $1,024,433 200,000 200,000 - - - - 3,499,133 3,279,815 2,754,976 2,542,038 2,318,310 2,414,692 4,109,326 3,889,037 3,187,282 3,181,001 3,177,382 3,439,125 675,000 - 3,908 - - - 2,849,956 3,248,230 2,477,730 717,781 743,976 3,959,111 - - - - - - 1,307,216 1,504,656 1,768,742 2,943,525 2,252,931 1,244,900 (681,681)(418,169)(431,755)(693,904)(885,360)(1,670,915) 4,150,491 4,334,717 3,818,625 2,967,402 2,111,547 3,533,096 $8,259,817 $8,223,754 $7,005,907 $6,148,403 $5,288,929 $6,972,221 127 CITY OF LAKE ELMO, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years 2021 2020 2019 2018 Revenues: General property taxes $5,303,553 $4,947,133 $4,182,327 $3,610,508 Licenses and permits 1,485,658 1,425,695 1,055,038 1,317,648 Intergovernmental 722,128 1,023,193 2,819,961 247,178 Charges for services 1,151,914 1,273,241 1,079,342 899,808 Fines and forfeits 45,749 33,584 36,696 49,203 Special assessments 862,766 474,099 649,487 1,398,155 Park dedication fees 1,845,371 714,558 123,500 502,802 Investment earnings (13,874) 348,766 331,010 115,583 Miscellaneous 177,000 183,711 201,494 129,455 Total revenues 11,580,265 10,423,980 10,478,855 8,270,340 Expenditures: Current: General government 1,056,983 1,005,254 1,136,908 1,208,145 Public safety 3,003,677 2,641,770 1,948,269 1,644,159 Public works 1,488,448 1,493,370 1,875,606 1,227,521 Culture and recreation 258,690 310,066 265,260 241,761 Economic Development Authority 53,264 46,371 71,609 47,702 Debt service: Principal 3,641,000 1,790,000 1,615,000 1,175,000 Interest and fiscal charges 425,797 420,299 454,814 230,822 Capital outlay 4,915,641 1,846,843 4,354,643 4,552,089 Total expenditures 14,843,500 9,553,973 11,722,109 10,327,199 Excess (deficiency) of revenues over expenditures (3,263,235)870,007 (1,243,254)(2,056,859) Other financing sources (uses): Issuance of debt 6,126,989 - 2,860,000 1,866,000 Premium on issuance of debt (876,989) - 168,168 - (Discount) on issuance of debt 15,675,000 - - - Proceeds from sale of capital assets 548,115 13,805 44,927 8,991 Transfers in - 1,900,244 1,181,173 56,209 Transfers out 17,300 (1,900,244)(786,573)(173,190) Total other financing sources (uses) 21,490,415 13,805 3,467,695 1,758,010 Net change in fund balance $18,227,180 $883,812 $2,224,441 ($298,849) Debt service as a percentage of noncapital expenditures 40.9% 26.8% 26.1% 24.2% Debt service as a percentage of total expenditures 27.4% 23.1% 17.7% 13.6% 128 Table 4 2017 2016 2015 2014 2013 2012 $3,042,074 $3,231,674 $3,222,216 $3,203,111 $3,231,609 $3,221,733 2,046,462 1,713,918 828,494 451,953 374,974 330,819 1,023,864 282,874 296,902 413,968 1,704,178 237,254 137,920 38,608 35,796 30,192 6,113 5,726 41,418 49,505 48,739 48,647 52,110 58,385 455,493 897,323 1,316,239 115,424 180,023 136,150 265,783 171,708 138,158 274,257 - - 48,987 43,228 46,415 87,467 35,127 111,737 265,133 77,491 99,055 165,319 57,260 87,562 7,327,134 6,506,329 6,032,014 4,790,338 5,641,394 4,189,366 1,502,904 1,358,306 1,094,723 1,046,906 1,527,732 1,034,712 1,470,726 1,262,040 1,203,765 1,198,546 1,174,145 1,109,937 1,185,828 893,644 686,401 585,071 614,270 446,541 603,292 500,689 457,749 368,276 301,404 260,404 - - - - - - 910,000 826,219 667,342 585,000 3,348,000 406,000 463,570 242,392 226,611 157,649 179,018 309,081 5,860,917 3,126,782 2,729,512 2,881,437 1,784,914 1,428,856 11,997,237 8,210,072 7,066,103 6,822,885 8,929,483 4,995,531 (4,670,103) (1,703,743) (1,034,089) (2,032,547) (3,288,089) (806,165) 4,565,000 2,690,000 1,620,000 2,850,000 1,604,797 865,000 166,068 102,877 32,137 31,520 - - (26,302) (14,392) (11,386) - - - 1,400 - 30,000 - - - - 143,105 220,842 10,501 - - - - - - - - 4,706,166 2,921,590 1,891,593 2,892,021 1,604,797 865,000 $36,063 $1,217,847 $857,504 $859,474 ($1,683,292) $58,835 22.4% 21.0% 20.6% 18.8% 49.4% 20.0% 11.4% 13.0% 12.7% 10.9% 39.5% 14.3% 129 - This page intentionally left blank - 130 CITY OF LAKE ELMO, MINNESOTA TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Table 5 Last Ten Fiscal Years Total % of Tax Taxable Total Adjusted City Capacity to Payable Market Real Personal Tax Tax Urban Tax Total Estimated Year Value Property Property Capacity Capacity (1) Rate Market Value 2012 $1,037,557,100 $11,525,623 $229,157 $11,754,780 $11,555,676 27.271 1.13% 2013 1,028,011,400 11,392,876 237,584 11,630,460 11,384,320 29.259 1.13% 2014 1,046,031,000 11,504,611 238,764 11,743,375 11,393,889 27.761 1.12% 2015 1,184,578,800 12,938,515 243,104 13,181,619 13,072,105 23.798 1.11% 2016 1,224,463,300 13,386,725 266,218 13,652,943 13,441,204 23.121 1.12% 2017 1,316,618,700 14,520,320 292,938 14,813,258 14,631,062 20.018 1.13% 2018 1,452,554,500 16,054,044 326,744 16,380,788 15,359,350 22.442 1.13% 2019 1,648,277,500 18,184,317 345,172 18,529,489 18,249,623 22.927 1.12% 2020 1,901,067,300 20,907,484 345,800 21,253,284 20,021,726 23.476 1.12% 2021 2,009,618,900 21,975,125 374,464 22,349,589 21,116,953 23.638 1.11% (1) Tax Capacity adjusted for captured tax increment, fiscal disparities, and transmission lines. Valuations are determined as of January 1 of year preceding tax collection year. The County determines a property's tax capacity by multiplying a property's estimated market value times the property's class rate which is determined by its use. The total City tax levy divided by the total City tax capacity determines a percentage, the City tax rate, that is applied to each parcel's tax capacity to determine the tax amount. Tax Capacity 131 CITY OF LAKE ELMO, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES Table 6 Last Ten Fiscal Years (Percent of Tax Capacity) Operating Debt Total Special Fiscal Tax Service Tax Washington Taxing Year Rate Tax Rate Rate County Districts 2012 23.679 (1) 3.592 27.271 22.333 - 38.360 31.939 2.340 - 4.906 2.909 86.792 105.385 2013 23.555 5.704 29.259 22.017 - 37.104 31.548 0.779 - 5.306 4.857 88.460 108.074 2014 23.472 4.289 27.761 23.150 - 39.770 30.243 0.761 - 5.066 4.641 86.556 107.481 2015 20.121 3.677 23.798 21.120 - 35.860 27.691 0.692 - 4.769 4.183 77.484 96.301 2016 18.184 4.937 23.121 19.849 - 35.569 27.860 0.075 - 5.111 4.568 75.473 96.229 2017 14.083 5.934 20.017 20.390 - 34.093 27.852 0.839 - 5.275 4.345 73.443 91.582 2018 16.107 (2) 6.335 22.442 19.349 - 32.161 29.709 0.819 - 5.021 3.072 75.391 92.405 2019 16.258 (2) 6.670 22.927 18.442 - 31.894 29.305 0.808 - 5.263 3.994 75.476 93.383 2020 16.777 (2) 6.700 23.477 15.321 - 29.926 28.610 0.766 - 4.850 3.738 71.911 90.600 2021 17.178 (2) 6.460 23.638 17.277 - 29.554 27.244 0.742 - 4.835 3.593 72.494 88.864 Source: Washington County Taxation Division The City's direct property tax rate is determined by dividing the amount of tax levied by the City Council by the City's total tax capacity Overlapping rates are those of local and county governments that apply to property owners within the City of Lake Elmo. Not all overlapping rates apply to all City of Lake Elmo property owners. Although the property tax rates apply to all city property owners, some city properties lie within the geographical boundaries of different school and watershed districts. (1) Includes Library Levy component effective 1/1/2012 due to pulling out of Washington County (2) Excludes Library Levy component effective 1/1/2018 due to going back to Washington County Watershed Districts Overlapping Rates Range of Total Direct and Overlapping Tax Rates City Direct Rate Range of Tax Rates for ISD's 622, 832 & 834 Range of Tax Rates for 132 CITY OF LAKE ELMO, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Table 7 Current Year and Nine Years Ago Percentage Percentage of Total of Total Taxable City Tax Taxable City Tax Tax Capacity Tax Capacity Taxpayer Capacity Rank Value Capacity Rank Value Xcel Energy $268,750 1 1.20% $204,686 2 1.76% Dakota Upreit LP 240,344 2 1.08% - - Bremer Financial Services Inc 220,998 3 0.99% 197,474 3 1.70% MLL High Pointe LLC 200,950 4 0.90% - - Eagle Point Medical Building LLC 144,160 5 0.65% - - HOA Hotels LLC 143,396 6 0.64% - - Auto-Owners Life Insurance Co. 99,104 7 0.44% - - HSRE Lake Elmo LLC 97,436 8 0.44% - - HC Golf Land LLC 117,489 9 0.53% - - MHC Cimarron LLC 139,482 10 0.62% - - IRET Properties - - 205,342 1 1.77% MHC Cimarron LLC - - 134,090 4 1.15% United Land LLC - - 121,976 5 1.05% Tartan Park LLC - - 100,643 6 0.87% HOA Hotels - - 89,880 7 0.77% Danate Proper Inv I LLC - - 76,762 8 0.66% Eagle Point II LLC - - 71,064 9 0.61% Davis Estates LTD - - 64,912 10 0.56% Total $1,672,109 7.48%$1,266,829 10.89% Source: Washington County Taxation Division 2021 2012 133 CITY OF LAKE ELMO, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Collected within the Taxes Levied Net Tax Levy Fiscal Year of the Levy Fiscal for the for the Percentage Year Fiscal Year Fiscal Year (1)Amount of Net Levy 2012 $3,113,017 $3,110,478 $3,071,202 98.74% 2013 3,163,359 3,160,524 3,133,764 99.15% 2014 3,163,359 3,160,285 3,128,695 99.00% 2015 3,113,017 3,133,137 3,112,989 99.36% 2016 3,112,204 3,112,204 3,068,116 98.58% 2017 2,950,426 2,950,426 2,935,173 99.48% 2018 3,596,601 3,592,491 3,574,859 99.51% 2019 4,179,840 4,175,590 4,149,059 99.36% 2020 4,949,823 4,945,184 4,864,708 98.37% 2021 5,263,268 5,258,656 5,205,793 98.99% (1) Tax Levy adjusted for powerline and market value credits and AG program credits prior to 2016 134 Table 8 Collections in Total Collections to Date Outstanding Delinquent Taxes Subsequent Percentage Delinquent as a Percentage of Years Amount of Net Levy Taxes Total Net Tax Levy $39,267 $3,110,469 100.00% - 0.00% 26,760 3,160,524 100.00% - 0.00% 31,590 3,160,285 100.00%1,507 0.00% 19,874 3,132,863 99.99%1,644 0.01% 42,044 3,110,160 99.93%2,087 0.07% 12,485 2,947,183 99.89%2,331 0.11% 13,239 3,586,447 99.83%2,990 0.17% 19,244 4,149,059 99.36%4,103 0.64% 43,075 4,907,782 99.24%37,402 0.76% 50,910 5,256,703 99.96%1,953 0.04% 135 - This page intentionally left blank - 136 CITY OF LAKE ELMO, MINNESOTA WATER AND SANITARY SEWER CHARGES BY CUSTOMER Table 9 Last Ten Fiscal Years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Water (in millions of gallons): Residential 323,632 203,453 173.925 96.882 93.513 98.044 84.007 98.573 120.676 154.747 Commercial service 202,586 157,170 87.935 22.189 16.603 29.379 21.653 12.156 8.253 10.405 Total gallons 526,218 360,623 261.860 119.071 110.116 127.423 105.660 110.729 128.929 165.152 Total direct rate per 1,000 gallons: Residential 2.14 2.12 2.12 2.06 2.00 2.14 2.14 2.14 2.14 2.14 Commercial service 3.33 3.30 3.30 3.20 3.11 3.11 3.11 3.11 3.11 3.11 Sanitary Sewer (in millions of gallons): Residential (1)75,550 46,170 41.003 32.409 38.340 6.812 3.794 - - - Commercial service 16,021 11,779 12.943 12.267 6.807 9.125 8.179 6.532 6.149 6.172 Total gallons 91,571 57,949 53.946 44.676 45.147 15.937 11.973 6.532 6.149 6.172 Total direct rate per 1,000 gallons 4.70 4.65 4.60 4.55 4.50 4.50 4.50 4.50 4.50 4.50 (1) City did not have any residential sanitary sewer customers in 2014 and prior 137 CITY OF LAKE ELMO, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years G.O. G.O. G.O. Capital Other Fiscal Improvement Equipment Improvement Notes and Year Bonds Certificates Plan Bonds Bonds 2012 $3,100,092 $150,000 $4,969,153 $ - 2013 4,436,967 102,000 1,941,135 - 2014 6,919,568 52,000 1,808,024 - 2015 8,095,288 - 1,687,803 21,219 2016 10,210,038 - 1,537,530 - 2017 14,151,671 - 1,382,249 - 2018 13,185,126 940,000 1,226,928 926,000 2019 14,697,425 940,000 1,065,000 926,000 2020 13,159,432 850,000 900,000 881,000 2021 26,839,553 755,000 730,000 - Details regarding the City's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. Governmental Activities 138 Table 10 Business-Type Activities Total G.O. Utility Percentage Governmental Revenue Total Primary of Personal Per Activities Bonds Government Income Capita $8,219,245 $8,314,837 $16,534,082 3.9%$2,049 6,480,102 12,476,920 18,957,022 4.5%2,349 8,779,592 15,530,642 24,310,234 6.8%3,013 9,804,310 12,622,484 22,426,794 6.0%2,779 11,747,568 18,990,395 30,737,963 8.2%3,809 15,533,920 22,866,787 38,400,707 8.8%3,990 16,278,054 21,680,126 37,958,180 7.6%3,608 17,628,425 21,520,145 39,148,570 6.5%3,525 15,426,000 20,105,366 35,136,000 5.4%3,164 28,324,553 22,841,659 51,166,212 6.0%4,043 139 CITY OF LAKE ELMO, MINNESOTA RATIOS OF NET GENERAL BONDED DEBT Last Ten Fiscal Years G.O. G.O. G.O. Capital G.O. Utility Fiscal Improvement Equipment Improvement Revenue Year Bonds Certificates Plan Bonds Bonds 2012 $3,100,092 $150,000 $4,969,153 $8,314,837 2013 4,436,967 102,000 1,941,135 12,476,920 2014 6,919,568 52,000 1,808,024 15,530,642 2015 8,095,288 - 1,687,803 12,622,484 2016 10,210,038 - 1,537,530 18,990,395 2017 14,151,671 - 1,382,249 22,866,787 2018 13,185,126 940,000 1,226,928 21,680,126 2019 14,697,425 940,000 1,065,000 21,520,145 2020 13,159,432 850,000 900,000 20,105,366 2021 26,839,553 755,000 730,000 22,841,659 Details regarding the City's outstanding debt can be found in the notes to the financial statements. See Table 5 for taxable market value See Table 15 for population data * Net of crossover debt General Bonded Debt Outstanding 140 Table 11 Percentage Less: Amounts Net General of Actual Available in Debt Bonded Debt Taxable Value Per Total*Service Funds Outstanding of Property Capita (Net) $16,534,082 ($3,500,799)$13,033,283 1.26%1,615 18,957,022 (729,753) 18,227,269 1.77%2,259 24,310,234 (691,700) 23,618,534 2.26%2,927 22,405,575 (2,477,730) 19,927,845 1.68%2,470 30,737,963 (3,215,590) 27,522,373 2.25%3,411 38,400,707 (3,524,956) 34,875,751 2.65%3,623 37,032,180 (4,461,692) 32,570,488 2.24%3,096 38,222,570 (4,716,520) 33,506,050 2.03%3,017 34,255,000 (4,530,993) 29,724,007 1.56%2,677 51,166,212 (3,893,266) 47,272,946 2.35%3,566 141 CITY OF LAKE ELMO, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 12 As of December 31, 2021 Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable*Debt Overlapping debt: Independent School District # 622 $443,420,000 (1) 38%$170,094,887 Independent School District # 832 39,990,000 (1) 81%32,514,367 Independent School District # 834 80,735,000 (1) 18%14,282,589 Washington County 113,905,000 (1) 5%6,116,439 Metropolitan Council 1,897,693,968 (1) 7%126,147,543 Total overlapping debt 349,155,825 City direct debt $28,324,553 100%28,324,553 Total direct and overlapping debt $377,480,378 *For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 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. Sources: Taxable value data used to estimate applicable percentages provided by Washington County. Debt outstanding data provided by each governmental unit. 142 CITY OF LAKE ELMO, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table 13 Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2021 Market value $2,009,618,900 Applicable percentage 3% Debt limit 60,288,567 Debt applicable to limit: Total bonded debt 51,166,212 Less: Special assessment bonds (26,839,553) Utility revenue bonds (22,841,659) Amount set aside for repayment of G.O. debt (213,231) 1,271,769 Legal debt margin $59,016,798 Net Debt Net Debt Legal Amount of Debt Applicable Fiscal Debt Applicable to Debt Applicable to to Limit Year Population Limit Limit Margin Debt Limit Per Capita 2012 8,069 $32,054,064 $2,099,369 $29,954,695 6.55% $260 2013 8,069 32,470,203 1,894,510 30,575,693 5.83% 235 2014 8,069 35,537,364 1,757,421 33,779,943 4.95% 218 2015 8,069 36,733,899 1,572,289 35,161,610 4.28% 195 2016 8,069 38,035,233 2,102,343 35,932,890 5.53% 261 2017 9,625 38,556,774 1,846,657 36,710,117 4.79% 192 2018 10,521 43,576,635 2,018,280 41,558,355 4.63% 192 2019 11,105 49,448,325 1,839,548 47,608,777 3.72% 166 2020 11,105 57,032,019 850,000 56,182,019 1.49% 77 2021 12,655 60,288,567 1,485,000 58,803,567 2.46% 117 Legal Debt Margin Calculation for Fiscal Years 2012 Through 2021 143 CITY OF LAKE ELMO, MINNESOTA PLEDGED REVENUE COVERAGE Table 14 Last Ten Fiscal Years Net Payable Gross Operating Available Year Revenue (1) Expenses (2) Revenue Principal Interest Coverage 2012 $946,407 $426,118 $520,289 $40,000 $221,129 199% 2013 3,501,321 504,648 2,996,673 165,000 300,789 643% 2014 2,266,397 678,394 1,588,003 365,000 424,080 201% 2015 3,642,316 627,977 3,014,339 4,165,000 456,782 65% 2016 3,407,097 757,862 2,649,235 615,000 380,969 266% 2017 6,651,513 1,505,420 5,146,093 705,000 513,768 422% 2018 5,767,128 1,279,347 4,487,781 625,000 312,660 479% 2019 4,190,240 1,175,282 3,014,958 1,360,000 509,863 161% 2020 6,243,582 1,553,371 4,690,211 1,380,000 504,661 249% 2021 9,147,164 1,680,527 7,466,637 3,825,000 514,210 172% (1) Gross revenue includes investment earnings, infrastructure charges and special assessments. (2) Operating expenses do not include interest, depreciation, or amortization expense. (3) Details regarding the City's outstanding debt can be found in the notes to the financial statements. G.O. Utility Revenue Bonds Debt Service (3) 144 CITY OF LAKE ELMO, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Table 15 Last Ten Fiscal Years Personal Per Income (4)Capita State City Fiscal (thousands Personal Unemployment Unemployment Year Population (1)of dollars)Income (2) Rate (3) Rate (3) 2012 8,069 $420,242 $52,081 5.4%4.9% 2013 8,069 420,879 52,160 4.6%4.0% 2014 8,069 357,723 44,333 3.8%3.7% 2015 8,069 371,602 46,053 3.2%2.9% 2016 8,069 374,345 46,393 3.8%3.3% 2017 9,625 438,563 45,565 3.3%3.3% 2018 10,521 497,896 47,324 2.8%2.7% 2019 11,105 601,991 54,209 3.5%2.8% 2020 11,105 652,352 58,744 4.9%4.0% 2021 12,655 851,277 67,268 2.6%2.2% Sources: (1) Metropolitan Council 2000/2010-Census Bureau; updated for staff estimate starting in 2017 (2) United States Census Bureau (3) Estimate based on County unemployment rate provided by Minnesota Department of Employment and Economic Development (4) The estimated personal income for the City of Lake Elmo is calculated by taking the per capita income and multiplying it by the City's population. 145 - This page intentionally left blank - 146 CITY OF LAKE ELMO, MINNESOTA PRINCIPAL EMPLOYERS Table 16 Current Year and Nine Years Ago Percentage of Percentage of Total City Total City Employer Employees Rank Employment(1)Employees Rank Employment(1) 3M Company (Maplewood)11,000 1 47.3% 9,500 1 56.3% Andersen Corp (Bayport)4,500 2 19.3% 1,850 2 11.0% ISD No. 622 ( North St. Paul-Maplewood-Oakdale) 1,830 3 7.9% - Woodwinds Health (Woodbury)1,500 4 6.4% 1,070 4 6.3% ISD 834 (Stillwater)1,162 5 5.0% 1,037 5 6.2% HealthEast Care/St. John's Hospital (Maplewood)973 6 4.2% - Washington County (Stillwater)940 7 4.0% 1,138 3 6.7% Presbyterian Homes/Boutwells (Oak Park Heights) 500 8 2.1% - Ecowater Systems, Inc. (Woodbury)440 9 1.9% 440 7 2.6% Bremer Bank Operations Ctr (Lake Elmo)425 10 1.8% 400 8 2.4% MN Correctional Facility ( Oak Park Hts) - - - 725 6 4.3% Imation Corp (Oakdale) - - - 390 9 2.3% SunAmerica Financial Group (Woodbury) - - - 310 10 1.8% (1)City staff estimate 2021 2012 147 CITY OF LAKE ELMO, MINNESOTA FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years 2021 2020 2019 2018 General Government: Administration 1.93 1.98 2.70 2.70 Finance 0.82 0.72 1.05 1.05 Planning and Zoning 1.95 1.95 2.10 2.10 Total General Government 4.70 4.65 5.85 5.85 Public Safety: Fire 1.42 1.42 3.80 3.80 Building Inspections 4.91 4.91 4.20 4.20 Total Public Safety 6.33 6.33 8.00 8.00 Public Works: Streets and Roadways 6.47 4.80 4.80 4.80 Parks and Recreation: Parks 1.01 2.25 2.20 2.20 Communications 0.42 0.42 0.50 0.50 Total Governmental Activities 18.93 18.45 21.35 21.35 Business-type Activities: Water Utility 2.98 2.75 2.50 2.50 Sewer Utility 1.05 1.40 1.15 1.15 Storm Sewer Utility 0.54 0.90 0.80 0.80 Total Business-Type Activities 4.57 5.05 4.45 4.45 Total 23.50 23.50 25.80 25.80 Source: City's Adopted Budgets Full-Time-Equivalent Employees as of December 31, 148 Table 17 2017 2016 2015 2014 2013 2012 2.45 2.45 3.20 3.55 3.55 3.15 1.20 1.20 0.80 1.25 1.25 0.50 2.21 2.21 2.75 2.70 2.95 1.55 5.86 5.86 6.75 7.50 7.75 5.20 3.80 3.80 1.50 1.55 2.05 1.60 4.21 4.21 3.15 1.55 1.30 0.95 8.01 8.01 4.65 3.10 3.35 2.55 4.55 4.55 3.90 3.20 3.21 3.05 3.00 3.00 1.85 3.30 2.74 2.52 - - 0.70 0.35 0.40 0.15 21.42 21.42 17.85 17.45 17.45 13.47 2.00 2.00 2.45 2.60 2.10 1.85 1.66 1.66 1.30 0.70 0.70 0.30 0.80 0.00 0.00 0.00 0.00 0.00 4.46 3.66 3.75 3.30 2.80 2.15 25.88 25.08 21.60 20.75 20.25 15.62 Full-Time-Equivalent Employees as of December 31, 149 CITY OF LAKE ELMO, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2021 2020 2019 2018 Planning and Zoning: Conditional use permits 1 1 6 6 Interim use permits - - - - Minor subdivisions 2 - 1 1 Plats / planned unit developments 7 5 13 13 Rezonings 8 1 4 4 Site plans - 3 - - Variances 6 5 6 6 Fire: Total emergency responses 568 546 461 461 EMS responses 355 317 317 317 Fire responses 213 229 144 144 Building Inspections: Residential permit valuations (thousands of dollars)$128,265 $88,038 $113,913 $113,913 Commercial permit valuations (thousands of dollars $12,548 $11,761 $3,217 $3,217 New residential units (1)297 263 245 245 New commercial units 5 19 - - Water Utility: Number of customers 4,229 3,559 2,317 2,317 Average quarterly consumption (2)89 76 56 56 (millions of gallons) Sanitary Sewer Utility: Number of customers 2,971 2,363 1,253 1,253 Average quarterly flow (3)19 18 11 11 (millions of gallons) Sources: Various City Department's annual financial report statistics (1) Excludes fire/demolition rebuilds (2) Residential and Commercial; rate increase effective 1/1/2010 to encourage conservation (3) Billed and measured based on water usage; new developer homes built in 2015 but not yet sold/occupied so no impact to flow 150 Table 18 2017 2016 2015 2014 2013 2012 5 3 2 4 2 3 2 2 1 1 1 - 1 2 2 - 2 1 10 11 9 17 1 - 5 3 2 11 2 7 1 1 - - 2 1 6 4 2 2 5 4 456 430 429 358 448 399 313 268 274 237 280 262 143 162 32 21 28 28 $86,710 $119,301 $50,401 $23,032 $19,979 $20,320 $1,185 $2,003 $1,952 $7,309 $966 $2,351 299 240 140 41 32 31 1 1 1 3 - - 1,727 1,538 1,234 1,073 1,051 1,016 28 18 18 19 21 15 712 321 96 45 29 29 12 14 74 77 77 75 151 CITY OF LAKE ELMO, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 19 Last Ten Fiscal Years 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Fire: Stations 2 2 2 2 2 2 2 2 2 2 Public Works: Bituminous streets (miles)94.80 92 112 112 103 103 65 65 63 63 Gravel streets (miles)0.5 0.5 0.5 1 2 2 2 2 2 2 Storm sewer (miles)50 48 33 33 30 30 25 25 25 25 Parks & Recreation: Acres of parkland 517 427 427 427 420 420 420 420 420 420 Number of parks 24 24 24 24 17 17 17 17 17 17 Water Utility: Water towers 3 3 3 3 3 3 3 3 2 2 Miles of watermain 75 73 58 58 50 50 43 40 39 37 Number of fire hydrants 735 707 559 559 415 415 378 351 293 280 Sanitary Sewer Utility: Miles of sanitary sewer 33 32 29 29 8 8 4 3 3 3 Lift Stations 6 7 5 5 4 4 4 4 3 3 Sources: Various City Department's annual financial report statistics 152 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com 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 Honorable Mayor and Members of the City Council City of Lake Elmo, Minnesota We have audited, in accordance with the 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 Lake Elmo, Minnesota, as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City of Lake Elmo, Minnesota's basic financial statements, and have issued our report thereon dated June 14, 2022. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Lake Elmo, Minnesota'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 of Lake Elmo, Minnesota's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Lake Elmo, Minnesota's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and responses, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. 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 entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency described in the accompanying schedule of findings and responses as item 2021-01 to be a material weakness. 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 Page 2 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. We consider the deficiency described in the accompanying schedule of findings and responses as item 2021-02 to be a significant deficiency. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Lake Elmo, Minnesota’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of Lake Elmo, Minnesota’s Responses to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City of Lake Elmo, Minnesota’s responses to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City of Lake Elmo, Minnesota’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Lake Elmo, Minnesota’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 of Lake Elmo, Minnesota’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 14, 2022 CITY OF LAKE ELMO, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2021 2021-01 Financial Statement Corrections Criteria: A City’s internal controls should allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. Condition: Audit procedures detected material misstatements relating to accounts receivable, construction in progress / project expenses, retainage payable and MPCA grant revenue. All misstatements occurred in the water, sewer and storm sewer enterprise funds. Cause: The error relating to accounts receivable occurred because the 4th quarter utility billing report was not reconciled to the general ledger. Other misstatements likely occurred due to the complexities of properly accounting for all project costs and related grant revenue. Effect: Inadequate controls over the year-end closing process results in an increased risk that financial statement misstatements may occur and not be detected on a timely basis. Recommendation: We recommend staff continue their efforts to appropriately account for the transactions and account balances of the City. Views of Responsible Officials and Corrective Action Plan: It is the intent of the City’s staff to minimize the number of audit adjustments needed each year. CITY OF LAKE ELMO, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2021 2021-02 Lack of Ideal Segregation of Duties Criteria: Generally, a system of internal control contemplates segregation of duties such that no individual has responsibility to execute a transaction, has physical access to the related assets, and has responsibility or authority to record the transaction. Condition: The same employee is responsible for preparing and reviewing bank reconciliations, as well as recording and approving adjusting journal entries. Cause: This condition is common to organizations of this size due to a limited number of staff in the finance department. Effect: The lack of ideal segregation of duties subjects the City to a higher risk that errors or fraud could occur and not be detected in a timely manner. Recommendation: Any modifications of internal controls in this area must be viewed from a cost/benefit perspective. Views of Responsible Officials and Corrective Action Plan: Due to limited number of employees it is not possible to provide for the complete segregation of duties. The City has established other safeguards to compensate for this, such as establishing procedures and processes that require multiple checks and balances. 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Council City of Lake Elmo, Minnesota 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 of Lake Elmo, Minnesota for the year ended December 31, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing or our audit. We have communicated such information in our letter to you dated April 26, 2022. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of Lake Elmo, Minnesota are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2021. We noted no transactions entered into by the City of Lake Elmo, Minnesota 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. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements are estimates used to calculate the net pension asset and liability, the pension related deferred outflows and inflows of resources, and pension expense. These estimates are based on actuarial studies. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole. City of Lake Elmo, Minnesota Communication With Those Charged With Governance Page 2 Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we believe the disclosures most likely to be considered sensitive are Note 6 – Long-Term Debt and Note 10 – Stewardship, Compliance and Accountability. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. The following material misstatements detected as a result of audit procedures were corrected by management:  Accounts receivable of the water, sewer and storm sewer funds were understated by $172,137.  Construction in progress of the water and sewer funds was understated, and project costs were overstated, by $324,992.  MPCA grant revenue of the water fund was understated by $212,311. Disagreements with Management For purposes of this letter, 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. City of Lake Elmo, Minnesota Communication With Those Charged With Governance Page 3 Management Representations We have requested certain representations from management that are included in the management representation letter dated June 14, 2022. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City of Lake Elmo, Minnesota’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 of Lake Elmo, Minnesota’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, the budgetary comparison schedule, and the schedules of OPEB and pension information, as listed in the table of contents, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual nonmajor fund financial statements, which accompany the financial statements but are 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 City of Lake Elmo, Minnesota Communication With Those Charged With Governance Page 4 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 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. Restriction on Use This information is intended solely for the information and use of the City Council and management of the City of Lake Elmo, Minnesota and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 14, 2022 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of Lake Elmo, 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 Lake Elmo, Minnesota, as of and for the year ended December 31, 2021, and the related notes to the financial statements, which collectively comprise the City of Lake Elmo, Minnesota’s basic financial statements, and have issued our report thereon dated June 14, 2022. In connection with our audit, nothing came to our attention that caused us to believe that the City of Lake Elmo, Minnesota failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statute §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 of Lake Elmo, Minnesota’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. 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 communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 14, 2022 1 STAFF REPORT DATE: 06/21/2022 REGULAR TO: City Council FROM: Molly Just, Planning Director AGENDA ITEM: Consideration of increased building setbacks in certain locations in the South Planning Area BACKGROUND: The City Council directed the Planning Department to pursue amendments to the Medium Density Residential (MDR) and High Density Residential (HDR) zoning districts. As development has been proposed and occurred along the new 5th Street in the South Planning Area, some buildings have been located closer to the public way than others. With the varying land use densities and intensities planned for 5th Street this is an opportunity to guide building placement along this new local street which includes more than just the MDR and HDR zoning districts. It may also be an appropriate time to consider building placement on other roads in the South Planning Area. At the May 23, 2022 meeting the Planning Commission suggested bringing forward for public hearing and consideration language to establish a 40 foot setback along 5th Street, Hudson Boulevard, Inwood Avenue, Keats Avenue, Lake Elmo Avenue and Manning Avenue. Staff suggested a 40 foot setback based on an analysis of existing and proposed development along the east side of 5th Street. The Zoning Map and Comprehensive Plan Future Land Use Maps are attached to understand the variety of existing and planned land uses for the South Planning Area. A review of building placement in medium and high density districts in other communities in Washington County yields the following information for consideration. Note that the examples below are exceptions to the setback standards meaning that the greater setback would not apply to most parcels but is intended to address the possible impacts on livability of being close to a major road. The subject codes are attached for reference. The City of Stillwater has a greater minimum setback for all building types (principal and accessory) from all yards (front, side, rear) from portions of Trunk Hwy 96, County Roads 12 and 15, McKusick Road and railroads. The City of Forest Lake has greater minimum front yard setbacks for principal buildings based on roadway type (arterial, collector, local street, existing private street, and internal street). Side and rear yard setbacks are not based on roadway type. The City of Woodbury has a greater minimum setback for principal buildings from all yards (front, side, rear) from existing or future collectors. PROPOSED CHANGES: Based on this research and considering the planned and built environment in the South Planning Area, staff suggests an approach similar to Stillwater and Woodbury in which the greater setback would apply to all yards and to both principal and accessory buildings. This would lead to a more pleasant built environment for residents and pedestrians and create a consistent and greater separation between vehicles and residents. As to whether to follow the Stillwater or Woodbury approach, staff is inclined to take the Stillwater approach as it is more surgical. For that reason, both approaches are provided and the City Council is asked to decide on which to take. 2 Section 105.12.720 Urban Residential Districts Lot Dimensions and Building Bulk Requirements GC LDR MDR HDR i. The minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or i. The minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue 3 Section 105.12.930 Commercial Districts Lot Dimension and Bulk Building Requirements LC CC C BP e. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or e. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue 4 Section 105.12.880 Mixed-Use Commercial and Mixed Use Business Park Districts Lot Dimensions and Building Bulk Requirements MU-C MU-BP L. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or L. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue 5 PUBLIC COMMMENT: A hearing notice was published in the Stillwater Gazette on June 3, 2022. No public comment was received and there was no public comment during the Planning Commission public hearing on June 13th. The Planning Commission discussed the intent of the amendments and the implication of the amendments. After consideration the Planning Commission voted 4-1 (Graen - Nay) to recommend adoption of the subject amendments basing the setback from specific streets and not types of streets. FISCAL IMPACT: None. RECOMMENDATION: Staff recommends that the City Council adopt the subject amendments to increase building setbacks along 5th Street North, Inwood Avenue, Keats Avenue, Lake Elmo Avenue, Manning Avenue and Hudson Boulevard in Lake Elmo. If the City Council chooses to base the increased setback requirement on specific roads then two suggested motions are provided below. “Motion to adopt the zoning text amendments to incorporate an increased building setback from Hudson Boulevard, 5th Street (planned and existing), Inwood Avenue, Keats Avenue, Lake Elmo Avenue and Manning Avenue” AND “Motion to approve summary publication of Ordinance 2022-08 (the Zoning Ordinance amendments) with approval of Resolution 2022-065” If the City Council chooses to base the increased setback requirement on road classification then two suggested motions are provided below. “Motion to adopt the zoning text amendments to incorporate an increased building setback from existing and planned collector and arterial streets” AND “Motion to approve summary publication of Ordinance 2022-08 (the Zoning Ordinance amendments) with approval of Resolution 2022-065” ATTACHMENTS: Ordinance 2022-08 Resolution 2022-065 Map of 40-foot setback from Hudson Boulevard, 5th Street (planned and existing), Inwood Avenue, Keats Avenue, Lake Elmo Avenue and Manning Avenue. Stillwater Setbacks Forest Lake Setbacks Woodbury Setbacks Zoning Map Future Land Use Map CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 2022-08 AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE BY AMENDING SECTION 1. The City Council of the City of Lake Elmo hereby ordains that Title 105 Zoning; Chapter 105.12: Zoning Code, Sections 105.12.720, 105.12.930, and 105.12.880 are hereby amended by changing the following section (Proposed language is underlined, deleted language is shown with strikethrough): SECTION 105.12.720 URBAN RESIDENTIAL DISTRICTS LOT DIMENSIONS AND BUILDING BULK REQUIREMENTS GC LDR MDR HDR i. The minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or i. The minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue SECTION 105.12.930 COMMERCIAL DISTRICTS LOT DIMENSION AND BULK BUILDING REQUIREMENTS LC CC C BP e. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or e. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue SECTION 105.12.880 MIXED-USE COMMERCIAL AND MIXED USE BUSINESS PARK DISTRICTS LOT DIMENSIONS AND BUILDING BULK REQUIREMENTS MU-C MU-BP L. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or L. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue SECTION 2. Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. SECTION 3. Adoption Date. This Ordinance 2022-08 was adopted on this 21st day of June, 2022, by a vote of __ Ayes and ___Nays. LAKE ELMO CITY COUNCIL _________________________________ Charles Cadenhead, Mayor ATTEST: _________________________________ Julie Johnson, City Clerk This Ordinance 2022-08 was published on the ____ day of ___________________, 2022. CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2022-065 RESOLUTION AUTHORIZING PUBLICATION OF A SUMMARY OF ORDINANCE 2022-08 WHEREAS, the Lake Elmo City Council has adopted Ordinance No. 2022-08, an ordinance that amends the City’s Zoning Code Section 105.12.720 Urban Residential Districts Lot Dimensions and Building Bulk Requirements, Section 105.12.930 Commercial Districts Lot Dimensions and Bulk Building Requirements, and Section 105.12.880 Mixed-Use Commercial and Mixed-Use Business Park Districts Lot Dimensions and Building Bulk Requirements. WHEREAS, the ordinance is lengthy; and WHEREAS, Minnesota Statutes, section 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo that the City Clerk shall cause the following summary of Ordinance No. 2022-08 to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Lake Elmo has adopted Ordinance No. 2022-08, an ordinance that amends the City Code language in the Zoning Ordinance. This ordinance alters language in the City Code to add an increased building setback along certain roads or road types. The following is a summary of the adopted ordinance language: Ordinance 2022-08 includes the following elements to amend Code Section 105.12.720, Section 105.12.930 and Section 105.12.880: The full text of Ordinance 2022-08 is available for inspection at Lake Elmo City Offices during regular business hours. Section 105.12.720 Urban Residential Districts. New Note i i. The minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or i. The minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue Section 105.12.930 Commercial Districts. New note e. e. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or e. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue Section 105.12.880 Mixed-Use Commercial and Mixed Use Business Park Districts. New note L. L. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts an existing or planned collector or arterial street. Planned streets are identified in the Lake Elmo Comprehensive Plan. Or L. For residential uses, the minimum front, rear, or side yard setback for accessory and principal buildings shall be 40 feet when the yard abuts any of the following roadways: a. Hudson Boulevard b. 5th Street (planned and existing) c. Inwood Avenue d. Keats Avenue e. Lake Elmo Avenue f. Manning Avenue BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City Administrator keep a copy of the ordinance at City Hall for public inspection and that a full copy of the ordinance be placed in a public location within the City. Dated: June 21, 2022 ____________________________________ Charles Cadenhead, Mayor ATTEST: ____________________________________ Julie Johnson, City Clerk (SEAL) Future 5th St. Existing 5th St.Manning Ave.Inwood Ave.Keats Ave.Lake Elmo Ave.Created By: Lake Elmo Planning Dept.Map Created: June, 2022 0 10.5 Miles ± Hudson Blvd. 10th St. 40Feet 40ft. Setback and Structure Proximity Analysis Buffer Structures Parcels Area of Intrest 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 1/5 (a) (b) (1) (2) Sec. 31-310. - TH townhouse residential district. Allowable uses. See Table in Section 31-315 for the allowable uses within the TH district. Massing regulations. Minimum standards. Lot area per unit 5,000 square feet Front yard setback Residence 20 feet Garage front facing 25 feet Garage side facing 20 feet Side yard setback 25 feet Rear yard setback 25 feet Building separation 15 feet Height 2½ stories, not to exceed 35 feet Additional setback standards. Trunk Highway 96 (Stonebridge Trail to Co Rd. 15)100 feet McKusick Road (Neal Ave. to Co Rd. 15)100 feet County Rd. 12 (Northland Ave. to Co Rd. 15)100 feet County Rd. 15 (Trunk Highway 36 to Trunk Highway 96)100 feet Railroad 75 feet 1 2 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 2/5 (c) (a) (1) (b) (1) (2) Design review. Design review is required for all permitted and specially permitted buildings or uses. All standards are minimum requirements unless otherwise noted. Measured from the right-of-way line. Sec. 31-312. - RCL low density multiple-family residential district. Allowable uses. See Table in Section 31-315 for the allowable uses within this district. Massing regulations. Minimum standards. Lot area 20,000 square feet Lot area per unit 7,000 square feet Open space per unit 1,500 square feet Front setback 35 feet Side setback 50 feet Rear setback 50 feet Principal building separation 50 feet Building Height 35 feet maximum Additional setback standards. Trunk Highway 96 (Stonebridge Trail to Co Rd. 15)100 feet McKusick Road (Neal Ave. to Co Rd. 15)100 feet 1 2 1 2 2 2 3 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 3/5 (c) (d) (1) (2) (3) (a) (1) (b) (1) County Rd. 12 (Northland Ave. to Co Rd. 15)100 feet County Rd. 15 (Trunk Highway 36 to Trunk Highway 96)100 feet Railroad 75 feet Recreation facilities. Ten percent of the gross project area shall be specifically designed, developed and maintained for recreational purposes such as: Children's play apparatus, swimming and wading pools, game areas such as tennis and horseshoe courts, picnicking and outdoor cooking facilities, etc. In addition, the city council at its discretion may require that the developer provide public park space according to the city park dedication requirements. Landscaping and screening. Landscaping and screening shall be as follows: All sites when fully developed shall be completely graded so as to adequately drain and dispose of all surface water, stormwater and groundwater in such a manner as to preclude large scale erosion and unwanted ponding. All sites when fully developed shall be landscaped according to a plan approved by the city council. The landscaping plan shall specify the size, type and location of all trees and shrubbery and the location of all sodded areas. Parking areas containing four or more spaces which are adjacent to or across the street from a residential district shall be screened to a height of at least four feet by shrubbery, wood or masonry materials. All standards are minimum requirements unless otherwise noted. Principal and accessory structures must meet this setback standard. Measured from the right-of-way line. Sec. 31-313. - RCM medium density multiple-family residential district. Allowable uses. See Table in Section 31-315 for the allowable uses within this district. Massing regulations. Minimum standards. Lot area 12,000 square feet 1 2 3 1 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 4/5 i. a. b. (2) Lot area per unit 2,800 square feet Maximum lot coverage 30 percent Maximum oor area ratio 0.75 Front setback Principal building 35 feet Accessory building 45 feet Side setback Principal building 20 feet Accessory building 10 feet Rear setback Principal building 45 feet Accessory building 10 feet Principal building separation 35 feet Building Height 3 stories maximum Exceptions: One- and two-family dwellings may be allowed to conform to the RB district setback requirements. When the adjacent buildings are located with a setback less than is required above, a multiple dwelling may be permitted to be located up to the point of the lesser setback requirement. Additional setback standards. 2 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 5/5 (c) (d) (1) (2) (3) Trunk Highway 96 (Stonebridge Trail to Co Rd. 15)100 feet McKusick Road (Neal Ave. to Co Rd. 15)100 feet County Rd. 12 (Northland Ave. to Co Rd. 15)100 feet County Rd. 15 (Trunk Highway 36 to Trunk Highway 96)100 feet Railroad 75 feet Recreation facilities. There shall be 200 square feet per dwelling unit or ten percent of the gross project area, whichever is greater, specifically designed, developed and maintained by the owner for recreation purposes in the RCM district such as follows: Children's play apparatus, swimming and wading pools, game areas, such as tennis and horseshoe courts, picnicking and outdoor cooking facilities, etc. In addition, the city council at its discretion may require that the developer provide public park space according to the city park dedication requirements. Landscaping and screening. Landscaping and screening shall be as follows: All sites when fully developed shall be completely graded so as to adequately drain and dispose of all surface water, stormwater and groundwater in such a manner as to preclude large scale erosion and unwanted ponding. All sites when fully developed shall be landscaped according to a plan approved by the city council. The landscaping plan shall specify the size, type and location of all trees and shrubbery and the location of all sodded areas. Parking areas containing four or more spaces which are adjacent to or across the street from a residential district shall be screened to a height of at least four feet by shrubbery, wood or masonry materials. All standards are minimum requirements unless otherwise noted. Measured from the right-of-way line. 1 2 § 153.322 MIXED RESIDENTIAL (MXR-3) DISTRICT. (A) Purpose. The Mixed Residential (MXR-3) District is intended to provide areas offering a variety of housing types, including single-family attached and detached dwellings and multi-family structures to retain the environment and character of less intensive styles of multiple-family residence areas by establishing building and lot area requirements; to broaden the choice of residential living styles in the city; and to promote quality development by following a thorough application, review, and approval process. (B) Permitted uses. Subject to applicable provisions of this chapter, the following are permitted uses in the MXR-3 District: (1) Dwelling, single-family detached; (2) Dwelling, single-family attached - 8 units per building maximum with each unit having a separate entrance; (3) Recreation, public. (C) Accessory uses. Subject to applicable provisions of this chapter, the following accessory uses in the MXR-3 District are allowed only when it is an accessory to an existing principal permitted use on the same lot. All accessory uses must meet the procedures set forth in and regulated by §§ 153.110et seq. (1) Detached accessory structures (detached single-family and dwelling apartment only); (2) Day care facility, licensed - serving 6 or fewer persons; (3) Kennel, private - 3 or fewer pets (single-family detached lots only); (4) Residential facility, licensed - serving 6 or fewer persons; (5) Other uses customarily associated with but subordinate to a permitted use, as determined by the city; (6) Amateur radio antenna (subject to the amateur radio antenna standards in § 153.096(II)(9)). (D) Certificate of compliance. Subject to applicable provision of this chapter, the following are uses in the MXR-3 District that require approval with a certificate of compliance as set forth in and regulated by § 153.029. (1) Accessory uses. (a) Accessory apartment (single-family detached dwellings only); (b) Day care facility, licensed - serving 7 to 14 persons; (c) Home occupations (single-family detached dwellings only); (d) Residential facility, licensed - serving 7 to 10 persons; (e) Solar energy systems, either roof or ground-mounted (meeting accessory structure requirements) according to § 153.307. (E) Conditional uses. Subject to applicable provisions of this chapter, the following are conditional uses in the MXR-3 District (requires a conditional use permit based upon procedures set forth in and regulated by § 153.034). (1) Principal uses. (a) Dwelling, apartment/condominium; (b) Essential services, governmental buildings and storage; (c) Essential services, utility substation; (d) Place of worship; (e) School. (2) Accessory uses. (a) Columbarium - accessory to place of worship; (b) Day care facility, licensed - serving more than 14 persons; (c) Residential facility, licensed - serving more than 10 persons; (3) Other uses similar to those permitted in this section as determined by the Planning Commission and City Council. (4) New wireless support structures and small wireless facilities located within the public right-of-way and meeting the requirements of Chapter 98, and subject to the conditions found in § 153.096(PP). (F) Interim uses. Subject to applicable provisions of this chapter, the following are interim uses in the MXR-3 District (requires an interim use permit based upon procedures set forth in and regulated by § 153.035). (1) Agricultural uses; (2) Uses as determined by the Planning Commission and City Council. (G) Lot size, setback, and height requirements. The following minimum requirements shall be observed in an MXR-3 District subject to additional requirements, exceptions, and modifications as set forth in this chapter. (1) Minimum lot requirements. (a) Lot area. 1. Detached single-family: 9,000 square feet; 2. Attached townhouse: 7,500 square feet per unit, or no minimum lot size if common site area owned and maintained by a homeowner’s association. 3. Apartment/condominium dwelling: 43,560 square feet or 1 acre; (b) Lot width. 1. Detached single-family: 60 feet; 2. Multiple-family dwelling: 100 feet. 3. Attached townhouse: no established minimum. (2) Setbacks. (a) Principal structure. 1. Front yard: a. Arterials, as designated in the Comprehensive Plan: 75 feet from the right-of-way line or 150 feet from the centerline of the street, whichever is greater; b. Collector street: 30 feet from the public right-of-way; c. Local street: 30 feet from the public right-of-way; d. Existing private street: 30 feet from the back of the curb or edge of pavement; e. Internal: 20 feet between attached or multi-family principal structures separated by common area. 2. Side yard: a. Single-family dwelling: 10 feet (unless abutting a side street 25 feet); b. Attached townhome: 10 feet; c. Multiple-family dwelling: 30 feet. 3. Side street: a. Single-family dwelling: 25 feet; b. Attached townhome: 25 feet; c. Multiple-family dwelling: 20 feet. 4. Rear yard: 30 feet. 5. Internal: 20 feet between principal structures. (b) Detached accessory structure. 1. Front yard: 30 feet and cannot be located between the principal structure and the street. 2. Side street: 25 feet and cannot be located between the principal structure and the street. 3. Side yard: 10 feet. 4. Rear yard: 10 feet. (3) Building height. (a) Principal structures: shall be limited to a maximum height of: 1. Single-family detached: 35 feet; 2. Attached townhome: 35 feet or 3 stories, whichever is less; 3. Apartment and condominiums (stacked units): 45 feet or 3 stories, whichever is less. (b) Detached accessory structures: shall be limited to 1 story with a maximum sidewall height of 10 feet measured from the floor surface to the underside of the ceiling member. (Ord. 537, passed 11-8-2004; Am. Ord. 549, passed 5-22-2006; Am. Ord. 596, passed 2-8-2010; Am. Ord. 651, passed 3- 14-2016; Am. Ord. 676, passed 7-9-2018; Am. Ord. 694, passed 2-10-2020) § 153.323 MULTIPLE-FAMILY RESIDENTIAL (MF) DISTRICT. (A) Purpose. The Multiple-Family Residential (MF) District is intended to establish areas for the development of multiple dwelling structures with a maximum density of 15 units per net acre; to maintain a residential character in areas with a high density, multiple-family development; to broaden the choice of residential living styles in the city; to set limitations on housing development density; and to promote quality development by following a thorough application, review, and approval process. (B) Permitted uses. Subject to applicable provisions of this chapter, the following are permitted uses in the MF District: (1) Dwelling, multiple-family (apartment, condominium, cooperative); (2) Dwelling, single-family, existing prior to the date of adoption of this chapter. All setback requirements for principal structures and detached accessory structures shall comply with the standards in the MXR-1 District; (3) Recreation, public. (C) Accessory uses. Subject to applicable provisions of this chapter, the following accessory uses in the MF District are allowed only when it is an accessory to an existing principal permitted use on the same lot. All accessory uses must meet the procedures set forth in and regulated by §§ 153.110et seq. (1) Detached accessory structure; (2) Detached accessory structure, existing single-family shall comply with the standards in the MXR-1 District. (3) Day care facility, licensed - serving 6 or fewer persons in an existing single-family dwelling only; (4) Residential facility, licensed - serving 6 or fewer persons in an existing single-family dwelling only; (5) Other uses customarily associated with but subordinate to a permitted use as determined by the city; (6) Amateur radio antenna (subject to the amateur radio antenna standards in § 153.096(II)(9)). (D) Certificate of compliance. (1) Subject to applicable provision of this chapter, the following are uses in the MF District that require approval with a certificate of compliance as set forth in and regulated by § 153.029. (2) Accessory uses. (a) Day care facility, licensed - serving 7 to 14 persons in an existing single-family dwelling only; (b) Home occupations in an existing single-family dwelling only unless otherwise approved by the city and property owner; (c) Residential facility, licensed - serving 7 to 10 persons in an existing single-family dwelling only; (d) Solar energy systems, either roof or ground mounted (meeting accessory structure requirements) according to § 153.307. (E) Conditional uses. Subject to applicable provisions of this chapter, the following are conditional uses in the MF District (requires a conditional use permit based upon procedures set forth in and regulated by § 153.034). (1) Principal uses. (a) Essential services, governmental buildings and storage; (b) Essential services, utility substations; (c) Manufactured home park; (d) Nursing home. (2) Accessory uses. (a) Day care facility, licensed - serving more than 14 persons in an existing single-family home only; (b) Residential facility, licensed - serving more than 10 persons in an existing single-family home only; (3) Other uses similar to those permitted in this section as determined by the Planning Commission and City Council. (F) Interim uses. Subject to applicable provisions of this chapter, the following are interim uses in the MF District (requires an interim use permit based upon procedures set forth in and regulated by § 153.035). (1) Uses as determined by the Planning Commission and City Council. (G) Lot size, setback, and height requirements. The following minimum requirements shall be observed in an MF District subject to additional requirements, exceptions, and modifications set forth in this chapter. (1) Minimum lot requirements. (a) Lot area: 43,560 square feet (or 1 acre); (b) Lot width: 100 feet. (2) Setbacks. (a) Principal structure. 1. Front yard: a. Arterials as designated in the Comprehensive Plan: 75 feet from the right-of-way line or 150 feet from the centerline of the street, whichever is greater; b. Collector street: 30 feet from the public right-of-way; c. Local street: 30 feet from the public right-of-way; d. Existing private street: 30 feet from the back of curb or edge of pavement. 2. Side yard: 30 feet. 3. Rear yard: 30 feet. 4. Internal: 20 feet between principal structures. (b) Accessory structure. 1. Front yard: 30 feet and cannot be located between the principal structure and the street. 2. Side yard: 10 feet. 3. Rear yard: 10 feet. (3) Maximum height. (a) Principal structure: shall be limited to a maximum height of 4 stories and 45 feet, whichever is less. (b) Accessory structures: shall be limited to 1 story with a maximum sidewall height of 10 feet, measured from the floor surface to the underside of the ceiling member. (H) Design standards for Townhome and Multiple-Family Structures. (1) Design requirements: row style, multi-story (not stacked) or 1 level attached. (2) Design character. A high quality of building design is an important way to bring larger buildings into a traditional neighborhood scale. In addition, site design, landscaping, and pedestrian amenities will help to create a comfortable, livable district and a shared sense of ownership among residents. (a) Subdivision requests. Building elevations and floor plans shall be furnished with subdivision requests illustrating exterior building material and colors to demonstrate compliance with this section. Building floor plans shall identify the interior storage space within each unit. (b) Decks or porches. Provision shall be made for possible decks, porches, or additions as part of the initial dwelling unit building plans. The unit lot shall be configured and sized to include decks or porches. (c) Minimum overhang. In case of a gable roof, a minimum 12 inch soffit shall be required. (d) Exterior building finish. The exterior of attached/townhome dwelling units shall include a variation in building materials which are to be distributed throughout the building facades and coordinated into the architectural design of the structure to create an architecturally balanced appearance. In addition, attached/townhome dwelling structures shall comply with the following requirements: 1. A minimum of 25% of the combined area of all building facades of a structure shall have an exterior finish of brick, stucco, and/or natural or artificial stone. 2. Except for brick, stucco, and/or natural or artificial stone, no single building facade shall have more than 75% of 1 type of exterior finish. 3. Except for brick, stucco, and/or natural or artificial stone, no townhome dwelling structure shall have more than 60% of all building facades of 1 type of exterior finish. 4. For the purpose of this section and material calculations: a. The area of the building facade shall not include area devoted to windows, entrance doors, garage doors, or roof areas. b. Variations in texture or style (i.e., lap siding versus shake shingle siding) shall be considered as different materials meeting the requirements of this section. c. Integral colored split face (rock face) concrete block shall not qualify for meeting the brick, stucco, and/or natural or artificial stone material requirements. d. Multiple unit buildings in proximity to each other shall not look alike in terms of color of siding, accent and roofing materials. The building under consideration will be compared to 2 homes on 2 lots on either side of it and to the 3 homes directly facing it. e. Outside storage shall be allowed only in designated areas which are screened in accordance with § 153.146 of this chapter and under the ownership of the property owners’ association subject to other applicable provisions of this chapter. (3) Building design and materials, multi-family (stacked). (a) Design character: The scale of multi-family dwellings makes the buildings highly visible and it is critical to incorporate high quality architecture. All buildings shall be designed to accomplish the goals and policies of the Comprehensive Plan. Building materials shall be attractive in appearance, durable, and of a quality which is both compatible with adjacent structures and consistent with the city’s standards for the district in which it is located. All buildings shall be of good aesthetic and architectural quality, as demonstrated by the inclusion of elements such as accent materials, entrance and window treatments, contrasting colors, irregular building shapes and rooflines, or other architectural features in the overall architectural concept. (b) A minimum of 50% of the combined area of all building facades of a structure shall contain the following permitted major exterior materials: face brick (glazed or unglazed), clay faced tile, and/or stone masonry (granite, limestone, marble, slate, sandstone, or quartzite). (c) Accent materials may include: finished texture stucco (cement or synthetic), exterior finished wood siding (painted, stained, or weather sealed), exterior finished metal siding (not including sheet metal of any kind), exterior finished vinyl siding or fiber cement siding in lap or panel design (color impregnated or painted). Panel seam lines shall be architecturally integrated into the building design so that they are not visible. Seam lines can either be filled, covered with accent material or some other method to make seam lines invisible. Accenting materials and design shall be included on all facades. (d) All building and roofing materials shall meet current accepted industry standards and tolerances, and shall be subject to review and approval by the city for quality, durability, and aesthetic appeal. The applicant shall submit to the city product samples, color building elevations, and associated drawings which illustrate the construction techniques to be used in the installation of such materials. (e) If complementary building styles, materials, and color schemes are proposed for a development, the developer shall submit to the city a plan showing the distribution of the styles, materials, and colors throughout the development. (Ord. 537, passed 11-8-2004; Am. Ord. 596, passed 2-8-2010; Am. Ord. 651, passed 3-14-2016) 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 1/4 (a) (b) (c) Sec. 24-134. - R-4 urban residential district. Purpose and scope. This section applies to the R-4 urban residential district. This district is created to provide an adequate amount of land to meet the demand for urban residential development. These areas will require public sewer and water systems which will be extended to encourage staged and orderly growth in the city in conformance to the comprehensive plan or amendments thereto. These lands are shown as "Places to Live, High Density Residential", "Places to Live, Medium Density Residential" or "Places to Live, Low Density Residential" on the comprehensive plan or amendments thereto. Maximum density shall be consistent with the base density in the comprehensive plan unless increased using a density bonus through an approved planned unit development. Permitted uses. Permitted uses are as follows: Agricultural building existing on April 14, 1971. Agricultural use existing on April 14, 1971. Essential services including power lines under 35 KV. Historic site. Open space, public or private. Residential care facility serving six or fewer persons. Single-family detached dwelling on a platted lot. Single-family detached dwelling on an unplatted lot not less than 20 acres with a width of not less than 500 feet. Single-family detached dwelling on an unplatted lot of record less than 20 acres in existence as of September 12, 2012. Permitted accessory uses. Permitted accessory uses are as follows: Accessory structures in accordance with section 24-281. Common property to a multiple family complex or planned unit development. Daycare, home-based and licensed, serving 12 or fewer persons. Ground source heat pump systems in accordance with section 24-404. Home business in accordance with section 24-263. Retail sales accessory to golf course/driving range, ice arena or park facility. 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 2/4 (d) (e) Satellite dish for residential use. Solar energy system in accordance with section 24-406. Temporary seasonal roadside stand not to exceed one per farm selling only products grown on that farm. Wind energy system on lots at least 20 acres in size up to 45 feet in height in accordance with section 24-405. Conditional uses. Conditional uses are as follows: Accessory uses for a place of worship or school in addition to those listed as permitted may be allowed as a conditional use. Assisted living facility serving 16 or more persons. Cemetery in existence as of September 26, 2012. Daycare, accessory to a place of worship or school. Daycare, home-based and licensed, serving from 13 to 16 persons. Daycare, licensed, serving more than 16 persons along a collector or arterial street. Golf course, driving range. Government use. Historic reuse ancillary to the primary residential use limited to: tearoom with scheduled events; indoor or outdoor wedding receptions and socials as scheduled events; bed and breakfast; and catering kitchen. Multiple-family dwelling in accordance with section 24-309. Place of worship in accordance with section 24-303. Planned unit development in accordance with article IV. Residential care facility serving from seven to 16 persons. Single-family attached dwelling. School in accordance with section 24-303. Interim conditional uses. Interim conditional uses are as follows: Farmers' market in accordance with section 24-265. 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 3/4 (f) (1) a. b. c. 1. 2. 3. 4. (i) (ii) (iii) (iv) (2) (3) (4) (5) (6) (7) (8) a. b. c. d. e. Telecommunications tower in accordance with article VI, division 4. Wind energy system on lots at least 20 acres in size up to 75 feet in height in accordance with section 24-405. Zoning district standards. Minimum lot area: Single-family detached dwellings, unplatted: 20 acres. Single-family detached dwellings, platted: 10,000 square feet with a minimum buildable area of 4,000 square feet. Single-family attached dwellings: Duplex: An average of 6,000 square feet per unit. Townhouse: An average of 4,500 square feet per unit. Quadplex: An average of 4,500 square feet per unit. Multiple-family dwellings: Efficiency: 2,300 square feet (maximum five percent efficiency units). One-bedroom: 2,925 square feet. Two-bedroom: 3,600 square feet. Three-bedroom: 4,275 square feet. Minimum lot width: 80 feet. Minimum lot depth: 125 feet unless the rear lot line abuts a collector or arterial street then the minimum lot depth shall be 160 feet. Maximum lot depth: The depth of any lot in a subdivision shall not exceed three times the lot's width. Access: Maximum of two accesses per residential lot on a public street. Maximum height: Three stories or 40 feet. Minimum front yard setback: 35 feet, unless the front yard abuts an existing or future collector or arterial street, then the minimum front yard shall be 50 feet from the anticipated future right-of-way. Minimum side yard setback: From residential street: 20 feet. From major road (collector or arterial street): 50 feet. From interior lot line: Ten feet. From interior lot line: If a garage, five feet. When the garage and the living unit align, or a portion of the living unit is above the 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 4/4 (9) (10) garage, the side yard setback to the structure on the garage side shall be five feet. Minimum rear yard setback: 35 feet unless the rear yard abuts an existing or future collector or arterial street, then the minimum rear yard shall be 50 feet from the anticipated future right-of-way. Maximum building coverage: 35 percent. (Ord. No. 1858, § 1858.01, 9-26-2012; Ord. No. 1957 , § 4, 12-12-2018) !!!! !! !!!!!! !!!!!! !!!!!! !!!!!! !! !! !! !! !! !!!!! !!!!! !!!!! !!!!! !!!!! !!!!! !!!!! !!!!! !!! !!! !!! !!! !!! !!! !!! !!! !! !! !! !!!! !!!! !!!! !!!!!!!! !!!! !!!! !!!! !!! !!! !!!! !!!! !!!! !!!! !! !! !! !!!! !!!! !!!! !!!! !!!! !!!! !!!!!!! !!!!!!! !! !! !! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!!!!! !!! !!!!!!! !!!! !!!! !!!! !!!! !!!! !!!! !!! !!! !!! !!! !!! !!! !!! ! ! !!!! !!!! !!!!!!! !!!!!!! !!!!!!! !! !! !!!! !!!! !!!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !! !! !! !!!!!!! !!!!!!! !!!!!!! !!!!!!! !!! !!! !!! !! !! !!!!!!!!!!!! ! ! ! !! !! !! !! ! ! !!! !!! !!! !!! !! !! !!!!!!! !!!!!!! !!!!!!! !!!!!!! !!!!!!! !! !!! ! !! !! !!!!!!!!!! ! ! ! !! !! ! ! ! !!! ! ! !! !! !! !! !! !! ! ! ! ! ! ! ! ! !! !!!!!!!!!!!!!!!!!!! !! !! !!! !!! !!!!! !! !! !!!!!!!!!! ! !!!!! !! !! !!!! !! !! !! !! !! !! !! !! !! !! !! !! !!! !!! !!! ! ! !! !! ! !!!! !!! !!! !!! !!! !!! ! ! !! !!!! !! !!! !! ! ! !! !! ! !! !! !! !!!! !! !! !! !! !! !! ! ! !! !! ! ! ! !! !!!!!!!!!!! !! !! !!!!!!!!! !! !!! !! !! !! !!!! !!!!! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !!! !!! !!! !!! !!! !!! !! !! !! !! !!!! !! !! !! !! !! !! ! ! !!!!!! ! !!! !!! !!! !! !! !! !! !! !!! !!! !!! !!!!! !!!!! !!!!! !!!!! !!!!! ! !!!! !! !! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !! !! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !!!! !! !! !! !! !! !! !! !! !!!! !! !! !!! !! !! !! !! ! ! ! ! !! !! !! !! !! !!!!!!!!!!!!! !! !! !! !! !!!!!!!!!! !! ! ! ! ! ! ! ! ! ! ! !! !! !! !! !! !! !! !!!!!!!!!!!!!! ! !! !! !! !! ! ! ! !!!!!! ! ! ! ! ! ! ! !! !! !! !! ! ! ! !!!!!!!!!!! !! !! !!!!!!!!!!!!!!!!!! !! !! !! ! ! ! ! ! ! !!!!!!!!!!!! !! ! ! ! ! !! !! ! ! !! !!! !! !!!!!!! !! !! !! !! ! ! !! !!!! !! !!!!!! !! !!!! !! !! !! !!!! !!!! !!!!´ Lake Elmo Zoning Map Data Source: Washington CountyMap Created By: Planning Dept.Map Updated: April 2022 City ofOak ParkHeights BaytownTownship WestLakelandTownship City of Afton City ofOakdale City ofPine Springs Union Pacific RR City of Woodbury City of Grant LakeElmo LakeJane RoseLakeGooseLake LakeOlson LakeDeMontreville HorseshoeLake SunfishLake Bald EagleLake DownsLake KraemerLake ArmstrongLake ClearLake Goetschel'sPond 0 10.5 Miles City ofOakdale LegionPond 59th St.Hytrail Ave.H ighlands Trl.Hillt op Ave . 5 3 rd S t.Hill Trl. 50th St.Demontreville Trl.55th St.Isle Ave.Jamaca Ave.J a n e R d.Julep Way57th St. 55th St. 53rd St.Jerome Ave,4 9 t h St. 51st St. 59th St.Kelvin Ave.57th St. 56th Pl.Jasper Ave.57th St.57th St. Cir.Lake Elmo Ave.Keats Ave.50th St.Kirkwood Ave.47th St.Julep Ave Lake J ane Trl. 45th St. Highway 36 50th St.Lily Ave.Linden Trl. Tapestry Rd. 55th St.Stillwater Blvd.Linden Ave.56th St.58th St.Manning Ave.Linden Trl.Lilac Ln.Lilac Pl.Lilac Way Lake Elmo Ave.47th St.Little Blue Stem Trl.44th St.Stillwater W ayStillwater Blvd. Kirkwood Ln.Blazingstar Ln.Prairieview Trl. 41st St.Wildflower Dr.39th St.Laverne Ave.Manning Ave.43rd St.Tapestry Bnd.Layton Ave.Kimbro Ave.Kindred WayStillwater Blvd.Kelvin Ave.Jamaca Ave.Birch BarkTrl.Hidden Bay Trl.Deer Pond Trl.Ol s o n La k e Trl.Ideal Ave.Lake Jane Trl. 39th St. 38th St.Innsdale Ave.Irish Ct.Irvin Ct.Isle Ave.Ivy Ct.Iris Ave.37th St.36th St. 35th St. Jamaca Ct.Lake Elmo Ave.U p p e r 3 3 r d S t .3 6 th S t.32nd St.Klondike Ave.31st St. 30th St.Langly Ct.32nd St.Village Pkwy.Linden Ave.32nd St. 3 5 t h St. Lisbon Ave. Ct.Legion Ave.24th St.Legion Ave.20th St.Legion Ln.Manning Trl.21st St. Palmer Dr. A n nik a D r. 14th St. 10th St.10th St. Lee w ard A ve.Laverne Ave.Layton Ave.11th St. Cimmaron 6th St. 5th St. 3rd St.4th St.Lake Elmo Ave.3rd St. Hudson Blvd.Hudson Blvd.I-94Keats Ave.Royal Blvd.Julia Ave.Marquess Trl.Inwood Ave.Imperial Ave.27th St. 26th St. 27th St. 28th St. Ironwood Trl.27th St. Ct.Ivy Ave.Jamley Ave.3 1 s t S t .Jonquil Ave.Jonquil Trl. 22nd St. 21st St.Inwood Ave.15th St.Ivy Ave.Ivory Ave.Whistling Valley TrlWhistling Valley Rd.9th St. Julip Ave. Jewel Ave.Island Trl.5th St. 7th St. E a g le P o in t B lv d .Ivywood Ct.Irving Blvd. 9th Pl. 7th St. Jade Ct.Jade Trl.4th St.Jean Ave.Junco Rd.8th St.Juniper Ave.6th St.James Ave.5th St. Ln. 5th St. 3 4 t h S t .3 5 t h S t. Lake Elmo Park Reserve Sunfish LakePark Reid ParkRidge ParkZoning Districts RT - Rural Transitional RR - Rural Residential RE - Residential Estate LDR - Low Density Residential MDR - Medium Density Residential HDR - High Density Residential R2 - One & Two-Family Residential V-LDR - Village Low Density Residential RS - Rural Single Family GCC - Golf Course Community OP - Open Space PUD LC - Limited Commercial C - Commercial CC - Convenience Commercial BP - Business Park MU-BP - Mixed-Use Business Park MU-C - Mixed-Use Commercial V-MX - Village Mixed Use A - Agricultural PF - Public Facilities Water Body Closed Landfill Browns Creek South Washington Valley Branch Shoreland Overlay District Hatching Represents Planned Unit Developments (PUD) !!!! !!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 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Oakdale Inwood Avenue North10th Street North 5th Street North Eagle Point BoulevardLakeOlson Lake Jane LakeElmoSunfish LakeE a gle P oint L a k e DownsLake 0 1800 3600 5400 7200Ft ´ Future Land Use Map 2040 Future Land Use Map Date: January 2021 Planned Roadway (Parkway)MUSA Boundary C Closed Landfill Institutional ParkBP LB V-HDR V-MU PSP ROW AP RAD RSF RSFS GC LDR MDR HDR MU-BP MU-C V-LDR V-MDR 1 STAFF REPORT DATE: 6/21/2022 REGULAR TO: City Council FROM: Molly Just, Planning Director AGENDA ITEM: Recommend minimum requirement for mixed-use in MU-C and MU-BP districts BACKGROUND: The City Council has directed the Planning Department to pursue amendments to the Mixed Use Commercial (MU-C) and Mixed Use Business Park (MU-BP) zoning districts. The purpose of the MU-C district is to promote mixed use development that supports a mix of retail, commercial and residential uses that benefit from their proximity to each other. Similarly, MU-BP promotes development in the city that will have a mix of general business, business park and residential uses which allows for better integration of uses and more flexibility to respond to market demands. The current zoning code for the MU-C and MU-BP districts does not require a mix of uses within proposed developments. The city is seeing an abundance of 100% residential development proposals in these districts which is the opposite of what was anticipated when the districts were written. They were written to require at least 50% residential. The current development pattern is not in accordance with the spirit and intent of the MU-C and MU-BP zoning districts. The Planning Department is proposing the following changes to better align future development with the intent of these districts. This should better “market proof” the districts while still enabling flexibility for developers. ISSUE BEFORE CITY COUNCIL: Should the City Council adopt zoning code amendments to require a minimum mix of uses in the Mixed Use-Commercial and Mixed-Use Business Park Districts? PROPOSED CHANGES The Planning Department is recommending a requirement that plats and PUDs within the MU-C and MU-BP districts include a minimum of two primary uses from different primary use types from Section 105.12.110 Zoning Use Types and Classifications. In order to qualify as a primary use, the use must occupy a minimum of 20 percent of the floor area in the plat/PUD. This would be a fairly modest requirement and leaves the choice of uses with the developer. An example of a community that uses this minimum requirement is Woodbury. The Lake Elmo Code has 12 different primary use types and there are sub-types within the use types. The uses must be allowed in the district. The proposed amendments are depicted using strike-thru (deletion) and underline (addition). 105.12.850 Purpose And District Descriptions a) MU-C Mixed-Use Commercial. 1. The purpose of the mixed-use commercial district is to provide areas in the city for and promote mixed-use development that supports a sustainable mix of retail, commercial and residential uses that will benefit from proximity and adjacency to one another. It is the intent of the district to require a minimum mix of uses with each plat and PUD. The mixed-use commercial district will serve as a transitional district between more intense highway-oriented development and less intense 2 rural or medium density residential uses. The intent of the mixed-use commercial district is to permit flexibility in the use of the land, while providing a set of minimum development standards in site design, spatial relationships, building architecture and landscape design that will allow property owners to design and construct development projects that respond both to market needs and to city goals and policies. The placement and treatment of buildings, parking, signage, landscaping and pedestrian spaces are essential elements in creating a livable environment in a mixed-use area. The transitional aspect of development in this district requires projects that are designed with a special focus on mitigating any negative impacts on existing and future development in the area. The city will evaluate new development proposals for their consistency with this goal these goals and the city may require developers to amend or change development proposals. The city may deny proposals when the city finds them to be inconsistent with the goals and policies of the city. 2. To meet the requirement for a mix of uses within each plat or PUD the plat or PUD must include at least two (2) primary uses from Section 105.12.110 (b) Use Types and Classifications. To be considered a primary use, the use must occupy a minimum of 20 percent of the floor area within the plat or PUD. 3. The district promotes attractive, inviting, high-quality retail shopping and service areas that are conveniently and safely accessible by multiple travel modes. Development shall incorporate creative design and buffering techniques to ensure smooth transitions between different types of development or different intensities of uses. At least 50 percent of the net developable area of a proposed mixed-use commercial development is to be residential, and residential development within these areas shall occur at a density range of ten to 15 units per acre. If a proposed development does not include at least 50 percent of the net developable land area in residential development, the city will require the applicant to provide a ghost plat (build-out plans) during sketch plan review that proposes how the parcel or area adjacent to the proposed development will be used in order to meet the requirement for at least 50 percent of the project site with residential land uses. This method of subdivision (by showing future land use and subdivision) and development review is a front-loading process that preserves land for future residential use. The city will use the ghost plat or sketch plan as an official document to establish land use consistent with the comprehensive plan. b) MU-BP Mixed-Use Business Park. 1. The purpose of the mixed-use business park district is to provide areas in the city that will have a mix of general business, business park and residential uses. Having a mixture of land uses within the district allows for better integration of uses and more flexibility to respond to market demands. It is the intent of the district to require a minimum mix of uses with each plat and PUD. The district promotes high standards of site design, spatial relationships, building architecture and landscape design that will foster compact developments with pedestrian convenience and human scale and will preserve and strengthen existing businesses and land uses. The placement and treatment of buildings, parking, signage, landscaping and pedestrian spaces are essential elements in creating a livable environment in a mixed-use area. The city will evaluate new development proposals for their consistency with this goal these goals and the city may require developers to amend or change development proposals. The city may deny proposals when the city finds them to be inconsistent with the goals and policies of the city. 2. To meet the requirement for a mix of uses within each plat and PUD it must include at least two (2) primary uses from Section 105.12.110 (b) Use Types and Classifications. To be considered a primary use, the use must occupy a minimum of 20 percent of the floor area within the plat or PUD. 3. The city allows light industrial and limited manufacturing in this district with the city approval of a conditional use permit. All business activities and storage in this district are to be conducted inside buildings that are of high quality and attractive. The city will require developers and builders in the district to provide open space, quality landscaping and berming as part of their projects. Development in this district shall incorporate creative design and buffering techniques to ensure smooth transitions between different types of development or different intensities of uses. At least 3 50 percent of the net developable area of a proposed mixed-use business park development is to be residential, and residential development within these areas shall occur at a density range of six to ten units per acre. If a proposed development does not include at least 50 percent of the net developable land area in residential development, the city will require the applicant to provide a ghost plat (build-out plans) during sketch plan review that proposes how the parcel or area adjacent to the proposed development will be used in order to meet the requirement for at least 50 percent of the project site with residential land uses. This method of subdivision (by showing future land use and subdivision) and development review is a front-loading process that preserves land for future residential use. The city will use the ghost plat or sketch plan as an official document to establish land use consistent with the comprehensive plan. PUBLIC COMMENT: A hearing notice was published in the Stillwater Gazette on June 3, 2022. No public comment was received and no member of the public spoke during the public hearing. The Planning Commission discussed the intent of the mixed use districts and the larger planning objectives for the South Planning Area. There was concern over limiting development in this way. The motion to recommend adoption of the proposed amendments failed 2 – 3 (Risner, Graen, Vrieze – Nay). FISCAL IMPACT: More non-residential development should have a positive fiscal impact. RECOMMENDATION: Staff recommends that the City Council adopt the subject amendments to Section 105.12.850 Purpose And District Descriptions. “Motion to adopt the zoning text amendments to require a minimum mix of uses in the Mixed Use Commercial and Mixed Use Business Park zoning districts” “Motion to approve summary publication of Ordinance 2202-09 (the Zoning Ordinance amendments) with approval of Resolution 2022-066” ATTACHMENT: Ordinance 2022-09 Resolution 2022-066 Section 105.12.110 (b) Use Types and Classifications Woodbury Mixed Use District Requirements CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 2022-09 AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE BY AMENDING SECTION 1. The City Council of the City of Lake Elmo hereby ordains that Title 105 Zoning; Chapter 105.12: Zoning Code, Article XIV Section 105.12.850 is hereby amended by changing the following section (Proposed language is underlined, deleted language is shown with strikethrough): 105.12.850 Purpose And District Descriptions a) MU-C Mixed-Use Commercial. 1. The purpose of the mixed-use commercial district is to provide areas in the city for and promote mixed-use development that supports a sustainable mix of retail, commercial and residential uses that will benefit from proximity and adjacency to one another. It is the intent of the district to require a minimum mix of uses with each plat and PUD. The mixed-use commercial district will serve as a transitional district between more intense highway-oriented development and less intense rural or medium density residential uses. The intent of the mixed-use commercial district is to permit flexibility in the use of the land, while providing a set of minimum development standards in site design, spatial relationships, building architecture and landscape design that will allow property owners to design and construct development projects that respond both to market needs and to city goals and policies. The placement and treatment of buildings, parking, signage, landscaping and pedestrian spaces are essential elements in creating a livable environment in a mixed-use area. The transitional aspect of development in this district requires projects that are designed with a special focus on mitigating any negative impacts on existing and future development in the area. The city will evaluate new development proposals for their consistency with this goal these goals and the city may require developers to amend or change development proposals. The city may deny proposals when the city finds them to be inconsistent with the goals and policies of the city. 2. To meet the requirement for a mix of uses within each plat or PUD the plat or PUD must include at least two (2) primary uses from Section 105.12.110 (b) Use Types and Classifications. To be considered a primary use, the use must occupy a minimum of 20 percent of the floor area within the plat or PUD. 3. The district promotes attractive, inviting, high-quality retail shopping and service areas that are conveniently and safely accessible by multiple travel modes. Development shall incorporate creative design and buffering techniques to ensure smooth transitions between different types of development or different intensities of uses. At least 50 percent of the net developable area of a proposed mixed-use commercial development is to be residential, and residential development within these areas shall occur at a density range of ten to 15 units per acre. If a proposed development does not include at least 50 percent of the net developable land area in residential development, the city will require the applicant to provide a ghost plat (build-out plans) during sketch plan review that proposes how the parcel or area adjacent to the proposed development will be used in order to meet the requirement for at least 50 percent of the project site with residential land uses. This method of subdivision (by showing future land use and subdivision) and development review is a front-loading process that preserves land for future residential use. The city will use the ghost plat or sketch plan as an official document to establish land use consistent with the comprehensive plan. b) MU-BP Mixed-Use Business Park. 1. The purpose of the mixed-use business park district is to provide areas in the city that will have a mix of general business, business park and residential uses. Having a mixture of land uses within the district allows for better integration of uses and more flexibility to respond to market demands. It is the intent of the district to require a minimum mix of uses with each plat and PUD. The district promotes high standards of site design, spatial relationships, building architecture and landscape design that will foster compact developments with pedestrian convenience and human scale and will preserve and strengthen existing businesses and land uses. The placement and treatment of buildings, parking, signage, landscaping and pedestrian spaces are essential elements in creating a livable environment in a mixed-use area. The city will evaluate new development proposals for their consistency with this goal these goals and the city may require developers to amend or change development proposals. The city may deny proposals when the city finds them to be inconsistent with the goals and policies of the city. 2. To meet the requirement for a mix of uses within each plat and PUD it must include at least two (2) primary uses from Section 105.12.110 (b) Use Types and Classifications. To be considered a primary use, the use must occupy a minimum of 20 percent of the floor area within the plat or PUD. 3. The city allows light industrial and limited manufacturing in this district with the city approval of a conditional use permit. All business activities and storage in this district are to be conducted inside buildings that are of high quality and attractive. The city will require developers and builders in the district to provide open space, quality landscaping and berming as part of their projects. Development in this district shall incorporate creative design and buffering techniques to ensure smooth transitions between different types of development or different intensities of uses. At least 50 percent of the net developable area of a proposed mixed-use business park development is to be residential, and residential development within these areas shall occur at a density range of six to ten units per acre. If a proposed development does not include at least 50 percent of the net developable land area in residential development, the city will require the applicant to provide a ghost plat (build-out plans) during sketch plan review that proposes how the parcel or area adjacent to the proposed development will be used in order to meet the requirement for at least 50 percent of the project site with residential land uses. This method of subdivision (by showing future land use and subdivision) and development review is a front-loading process that preserves land for future residential use. The city will use the ghost plat or sketch plan as an official document to establish land use consistent with the comprehensive plan. SECTION 2. Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. SECTION 3. Adoption Date. This Ordinance 2022-09 was adopted on this 21st day of June, 2022, by a vote of __ Ayes and ___Nays. LAKE ELMO CITY COUNCIL _________________________________ Charles Cadenhead, Mayor ATTEST: _________________________________ Julie Johnson, City Clerk This Ordinance 2022-09 was published on the ____ day of ___________________, 2022. CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2022-066 RESOLUTION AUTHORIZING PUBLICATION OF A SUMMARY OF ORDINANCE 2022-09 WHEREAS, the Lake Elmo City Council has adopted Ordinance No. 2022-09, an ordinance that amends the City’s Zoning Code Article XIV Section 105.12.850. WHEREAS, the ordinance is lengthy; and WHEREAS, Minnesota Statutes, section 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo that the City Clerk shall cause the following summary of Ordinance No. 2022-09 to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Lake Elmo has adopted Ordinance No. 2022-09, an ordinance that amends the City Code language in the Zoning Ordinance. This ordinance alters language in the purpose statements of the Mixed Use Business Park and Mixed Use Commercial Districts. The following is a summary of the adopted ordinance language: Ordinance 2022-09 includes the following elements to amend Article XIV Mixed Use Commercial and Mixed Use Business Park Districts: The full text of Ordinance 2022-09 is available for inspection at Lake Elmo City Offices during regular business hours. 105.12.850 Purpose and District Descriptions a) Mixed Use Business Park. It is the intent of the district to require a minimum mix of uses with each plat and PUD. To meet the requirement for a mix of uses within each plat and PUD it must include at least two (2) primary uses from Section 105.12.110 (b) Use Types and Classifications. To be considered a primary use, the use must occupy a minimum of 20 percent of the floor area within the plat or PUD. b) Mixed Use Commercial. It is the intent of the district to require a minimum mix of uses with each plat and PUD. To meet the requirement for a mix of uses within each plat and PUD it must include at least two (2) primary uses from Section 105.12.110 (b) Use Types and Classifications. To be considered a primary use, the use must occupy a minimum of 20 percent of the floor area within the plat or PUD. BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City Administrator keep a copy of the ordinance at City Hall for public inspection and that a full copy of the ordinance be placed in a public location within the City. Dated: June 21, 2022 ____________________________________ Charles Cadenhead, Mayor ATTEST: ____________________________________ Julie Johnson, City Clerk (SEAL) 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 1/13 105.12.110 Zoning Use Types And Classifications (a)Rules of interpretation for zoning use types and classifications. (1)Purpose of use types. The purpose of the use types is to establish a classification system for land uses and a consistent set of terms defining uses permitted within various zoning districts. The use types section also facilitates the process of determining the applicable use type of any activity not clearly within any defined use type. (2)Interpretation. In the event of any question as to the appropriate use type of any existing or proposed use or activity, the planning director shall have the authority to determine the appropriate use type. In making such a determination, the planning director shall consider the operational and physical characteristics of the use in question and shall consider the classification contained in the most recent edition of the Standard Industrial Classification Manual published by the U.S. Office of Management and Budget. In addition, the planning director shall consider the specific requirements of the use in common with those included as examples of use types. Those examples, when included in use type descriptions, are intended to be illustrative, as opposed to exclusive lists. The planning director may also determine that a proposed use or activity is sufficiently different from any use type listed below and will require an amendment to the text of this chapter. (3)Determinations in writing. The planning director shall make such determinations of appropriate use types in writing, which shall include an explanation of the reasons for the determination. (4)Appeal. A determination of the planning director may be appealed to the board of adjustment pursuant to the procedures for administrative appeals outlined in LEC 3.08.100. (b)Use types and classifications. (1)Residential and related uses. a.Family living. Live-work unit means a dwelling unit in combination with a shop, office, studio, or other work space within the same unit, where the resident occupant both lives and works. Manufactured home park means a development on a site under a single ownership which consists of two or more spaces for the placement of manufactured homes for dwelling or sleeping purposes, regardless of whether or not a fee is charged for the utilization of such space. Multifamily residential means a building containing three or more dwelling units. The term "multifamily residential" includes cooperative apartments and condominiums, but not condominium-hotels. (See condominium and condominium-hotel under LEC 1.08.) Secondary dwelling means a residential dwelling unit, but not a manufactured home, located on the same lot as a single-family dwelling unit, either within the principal structure or above a detached garage. Single-family, attached, means a building containing one dwelling unit attached to 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 2/13 another building containing only one dwelling unit, with each building on a separate lot. Single-family, detached, means a building containing only one dwelling unit, surrounded by landscape area or yards on all sides. Two-family or duplex means a building on a single lot or adjacent lots containing two dwelling units, either side-by-side or stacked vertically. b.Group living. Congregate housing means a dwelling providing shelter and services for the elderly, which may include meals, housekeeping, and personal care assistance and minor medical services, but not intermediate, long-term, or extended nursing care for residents. Correctional facilities means a public or privately-operated use providing housing and care for individuals legally confined, designed to isolate those individuals from a surrounding community. Group home means a residence shared by six or fewer handicapped persons in addition to resident staff, who live together as a single housekeeping unit and in a long-term, family-like environment in which staff persons provide care, education, and participation in community activities for the residents with the primary goal of enabling the residents to live as independently as possible in order to reach their maximum potential. Group residential facility means a licensed public or private establishment, which, for gain or otherwise, regularly provides one or more dependents with 24-hour a day substitute for the care, food, lodging, training, education, supervision, rehabilitation, and treatment they need, but which for any reason cannot be furnished in the dependent's own home. The term "group residential facility" includes, but is not limited, to state institutions under the control of the commissioner of public welfare, foster homes, maternity shelters, group homes, as defined herein, with seven or more residents, schools for handicapped children, and homes for battered children or battered spouses. Halfway house means an establishment providing accommodations, rehabilitation, counseling, and supervision to persons suffering from alcohol, drug addiction or other similar disorders, or to persons re-entering society after being released from a correctional facility or other institution. Semi-transient accommodations means and includes boardinghouses, roominghouses, fraternity and sorority houses, or lodging rooms, as defined by this chapter. Semi-transient accommodations do not include condominium-hotels, as defined in LEC 1.08. (2)Public and civic uses. Cemetery means land used or intended to be used for the burial of the dead and dedicated for cemetery purposes, including columbarium's, crematories, mausoleums, and mortuaries when operated in conjunction with and within the boundaries of such cemetery. 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 3/13 Colleges and universities means institutions of higher learning which offer courses of general or specialized study leading to a degree or certificate. They are certified by the state board of higher education or by a recognized accrediting agency. Colleges tend to be in campus-like settings or on multiple blocks. Accessory uses include offices, housing for students, food service, laboratories, health and sports facilities, theaters, meeting areas, parking, maintenance facilities, and support commercial. Examples include universities, liberal arts colleges, community colleges, nursing and medical schools not accessory to a hospital, and seminaries. Community services means establishments of a public, nonprofit, or charitable nature generally providing a local service to people of the community. Generally they provide the service on the site or have employees at the site on a regular basis. The service is ongoing, not just for special events. Community centers or facilities may incorporate membership provisions, and are open to the general public to join at any time (for instance, any senior citizen could join a senior center). The use may also provide special counseling, education, or training of a public, non-profit, or charitable nature. Accessory uses may include offices, meeting areas, food preparation areas, parking, health and therapy areas, day care uses, and athletic facilities. Examples include libraries, museums, senior centers, community centers, social service facilities, early childhood learning facilities, and other special educational services. Day care center means any facility operated for the purpose of providing care, protection, and guidance to 14 or more individuals during only part of a 24-hour day. The term "day care center" includes nursery schools, preschools, day care centers for individuals, and other similar uses but excludes public and private educational facilities or any facility offering care to individuals for a full 24-hour period. Public assembly means facilities owned and operated by a public or quasi-public agency accommodating public assembly for non-recreation purposes. Typical uses include auditoriums, convention facilities, exhibition facilities, convention halls, or armories. Religious institutions means establishments that are intended to primarily provide meeting areas for religious activities. Accessory uses include Sunday school facilities, parking, caretaker's housing, and group living facilities such as convents. Examples include churches, temples, synagogues, and mosques. Schools, public and private, means establishments at the primary, elementary, middle, junior high, or high school level that provide state-mandated basic education. Accessory uses include play areas, cafeterias, recreational and sport facilities, auditoriums, and before or after school day care. Examples include public and private day-time schools, boarding schools, and military academies. Exemptions: a.Preschools are classified as day care facilities; and b.Business and trade schools are classified as educational services. (3)Services. Business center means a building or group of buildings planned, constructed, and managed as a total entity, with common on-site parking for a group of commercial service establishments, with office uses also permitted. In the central business district, the requirement for common on-site parking need not be met in order to classify a development as a business center. 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 4/13 Business services means establishments primarily engaged in rendering services to business establishments on a fee or contract basis, such as advertising and mailing, building maintenance, office equipment rental and leasing, photo finishing, business supply services, and computer programming/data processing services. Communication services means establishments primarily engaged in the provision of broadcasting and other information relay services accomplished through the use of electronic and telephone mechanisms. Excluded from this use type are facilities classified as essential services or broadcasting and communications towers. Typical uses include television studios, telecommunications service centers, telegraph service offices or film and sound recording facilities. Educational services means establishments engaged in furnishing specialized academic or technical courses, normally on a fee basis, such as vocational or correspondence schools, barber college, data processing schools, or secretarial schools, along with non- degree granting schools such as post-secondary colleges and universities, martial arts, music, art, ceramic, and dramatic, schools, and dance instruction. Financial institution means provision of financial and banking services to consumers or clients. Walk-in and drive-in services are generally provided on site. Typical uses include banks, savings and loan associations, savings banks, credit unions, lending establishments, and drive-up automatic teller machines (ATMs). Funeral home means establishments engaged in undertaking services such as preparing the dead for burial, and arranging and managing funerals. Typical uses include funeral homes or mortuaries. Lodging. See Transient accommodations. Medical facilities means establishments engaged in providing diagnostic services, extensive medical treatment (including surgical services), and other hospital services, as well as continuous nursing service, including general medical and surgical hospitals, specialty hospitals, medical laboratories, bio-medical research and development, outpatient care facilities, medical schools and associated dormitories, medical appliance sales, and similar uses, but not including animal hospitals. Membership organization means organizations operating on a membership basis for the promotion of the interests of the members included such uses as trade associations, business associations, professional membership organizations, labor unions, civic or fraternal organizations, but not including churches, hospitals, golf and country clubs, or credit unions. Nursing and personal care means establishments primarily engaged in providing intermediate or long-term nursing and health related care to individuals, typically classified as nursing homes. Offices means a building or portion of a building used for office purposes by a business, service, professional, or institutional establishment, including medical offices or clinics, studios for those involved in art, sculpture, music, and the like, and all other establishments similar in character. Personal services means establishments primarily engaged in providing services involving the care of a person or his apparel, such as barber shops, clothing rental, salons 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 5/13 and health clubs, photographic studios, cleaning and garment services (but not including power laundries or dry cleaning plants) or coin-operated laundries. Repair and maintenance shop means establishments engaged in miscellaneous repair services, primarily of household-oriented products such as radios, televisions, washers and dryers, furniture (including re-upholstery), small engine repair, bicycles, or locksmiths. Self-service storage facility means an establishment designed and utilized for the purpose of renting or leasing individual storage spaces to tenants who have sole private access to such space for storing personal property. Trade shop means any lot, land, building, or structure that serves as the headquarters for contractors involved in specialized activities such as plumbing, painting, plastering, masonry, carpentry, roofing, well drilling, landscaping and the like, where tools, equipment and materials used in the business are stored. The category also includes establishments involved in specialized trades such as sheet metal, sign painting, drapers, and exterminators. Transient accommodations, lodging, means establishments in which lodging is provided and offered to the public for compensation, and which is open primarily to transient guests, as distinguished from semi-transient boarding or rooming facilities. Typical uses include hotels, motels, and inns. Meeting and restaurant facilities may be included accessory to this use type. Condominium-hotels shall be considered as a type of transient accommodation. Transportation services means establishments furnishing services related to the arrangement of persons and goods movements, such as freight forwarding, parking services or the rental/leasing of automobiles or two-axle trucks. Veterinary service means establishments engaged in the practice of veterinary medicine, dentistry or surgery, along with those providing animal related services such as kennels, grooming, or breeding services. (4)Food service. Drinking and entertainment means establishments primarily engaged in the selling of drinks for consumption on the premises, where entertainment may be provided and the incidental sale of prepared food for consumption on the premises is permitted. These establishments may often charge a fee or admission charge for the entertainment provided. Included in this category are bars, beer gardens, discotheques, nightclubs, taverns, and dance halls. Drive-in restaurant means an establishment primarily engaged in the preparation of food and beverages, for either take-out, delivery, or table service, served in disposable containers at a counter and a drive-up or drive through service facility or which offers curb service. Fast food restaurant means an establishment primarily engaged in the preparation of food and beverages, for either take-out, delivery, or table service, served in disposable containers at a counter. This use type does not employ a drive-up or drive-through service facility, and does not offer curb service. Standard restaurant means an establishment whose principal business is the sale of food 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 6/13 and/or beverage to customers in a ready to consume state, and whose principal method of operation includes one or both of the following: a.Customers, normally provided with an individual menu, are served their food and beverage by restaurant employees at the same table or counter at which the food and/or beverage are consumed; b.A cafeteria-type operation where food and beverage generally are consumed within the restaurant building. (5)Sales of merchandise. Garden center (retail agriculture) means establishments or places of business primarily engaged in retail or wholesale (bulk) sale, from the premises, of trees, shrubs, seeds, fertilizers, pesticides, and plant materials primarily for agricultural, residential, and commercial consumers. Such establishments typically sell products purchased from others, but may sell some material which they grow themselves. Typical uses include nurseries, retail greenhouses, plant stores, and lawn and garden centers. Neighborhood convenience store means establishments primarily engaged in the provision of frequently or recurrently needed goods for household consumption, such as prepackaged food and beverages, and limited household supplies and hardware. Convenience stores shall not include fuel pumps or the selling of fuel for motor vehicles. Typical uses include neighborhood markets and country stores. Retail trade means establishments engaged in selling goods or merchandise to the general public for personal or household consumption and rendering services incidental to the sale of such goods. These establishments are characterized by the following: a.They buy and receive as well as sell merchandise; b.They may process some products, but such processing is incidental or subordinate to the selling activities; and c.They predominantly sell to customers for their own personal or household use. The term "retail trade" is divided into the following subcategories for the purposes of this chapter: a.General retail. b.Antiques and collectibles store. c.Art gallery. d.Bicycle sales and repair. e.Book store, music store. f.Clothing and accessories. g.Craft or needlework shop. h.Drugstore, pharmacy. i.Electronics and appliance sales and repair. j.Florists. k.Specialty food store, including bakery, butcher shop, delicatessen, and the like. l.Jewelry store. 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 7/13 m.Hardware store. n.Newsstands, magazine sales. o.Pet store. p.Photographic equipment and supplies. q.Picture framing. r.Secondhand store, thrift or consignment store. s.Sporting goods store. t.Stationery store. u.Tobacco store. v.Video rental or sales. w.Building supplies sales. x.Furniture and appliance sales, rental, showrooms. y.Grocery, supermarket. z.Liquor store. aa.Warehouse club sales. Shopping center means a group of commercial establishments planned, constructed, and managed as a total entity with shared access, customer and employee parking provided on-site, provision of goods delivery separated from customer access, aesthetic considerations and protection from the elements. Wholesaling means establishments engaged primarily in selling merchandise to retailers, or to industrial, commercial, institutional, or professional business customers, or to other wholesalers, or on a mail order basis to individuals or firms, or which serve as agents or brokers buying merchandise for, or selling merchandise to, individuals and companies. (6)Automotive/vehicular uses. Automobile maintenance service means repair of automobiles, noncommercial trucks, motorcycles, motor homes, recreational vehicles, or boats, including the sale, installation, and servicing of equipment and parts. Typical uses include tire sales and installation, wheel and brake shops, oil and lubrication services and similar repair and service activities where minor repairs and routine maintenance are conducted. Automobile parts/supply means retail sales of automobile parts and accessories. Typical uses include automobile parts and supply stores which offer new and factory rebuilt parts and accessories, and include establishments, which offer minor automobile repair services as an accessory use. Car wash means washing and cleaning of vehicles. Typical uses include automatic conveyor machines and self-service car washes. Commercial vehicle repair means repair of construction equipment, commercial trucks, agricultural implements and similar heavy equipment, including automobiles, where major engine and transmission repairs are conducted. Typical uses include automobile and truck repair garages, transmission shops, radiator shops, body and fender shops, equipment service centers, machine shops, and other similar uses where major repair 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 8/13 activities are conducted. Gasoline station means any place of business with fuel pumps and underground storage tanks that provide fuels and oil for motor vehicles. A neighborhood convenience store associated with automobile fuel sales shall be considered a gasoline station. Parking facility means any structure associated with a nonresidential use whose purpose is to provide the required off-street parking spaces for a principal use, or any site utilized for parking which constitutes the principal use on a parcel of land. This category also includes community lots, which are established to meet the parking needs in a residential area, and park and ride lots. Sales and storage lots means establishments engaged in the display for sale, lease, and/or rental of automobiles, trucks, machinery, recreational vehicles and manufactured homes, including auto dealerships or the farm commercial storage of privately-owned trailers, boats, campers, or similar vehicles. (7)Outdoor recreation. Campgrounds and trailering means establishments engaged in providing overnight or short-term sites for the placement of recreational vehicles or temporary housing, with or without facilities such as water and electricity. Golf course means a tract of land for playing golf, improved with tees, greens, fairways, hazards, and which may include clubhouses and shelters. Included would be executive or par three golf courses. Specifically excluded are independent driving ranges or miniature golf facilities, which are classified as outdoor recreation facilities. Marina means a facility for storing, servicing, fueling, berthing, and securing and launching of private pleasure craft that may include the sale of fuel and incidental supplies for the boat owners, crews, and guests. Outdoor entertainment means an outdoor facility developed for entertainment, amusement, or tourist purposes which typically involve large areas of land and concentrated traffic peaks oriented towards events at the facility, including drive-in theaters, amphitheaters, outdoor concert halls, or theme parks. Outdoor recreation facility means a commercial recreation facility that is primarily an open-air facility, such as baseball fields, swimming pools, skating rinks, golf driving ranges, or miniature golf facilities. Parks and open areas means uses of land focusing on natural areas, large areas consisting mostly of vegetative landscaping or outdoor recreation, community gardens, or public squares. Lands tend to have few structures. Accessory uses include, but are not limited to, clubhouses, maintenance facilities, concessions, caretaker's quarters, gazebos, pavilions, band shells, and parking. Examples include parks, public squares, plazas, recreational trails, botanical gardens, boat launching areas, nature preserves, and land used for grazing that is not part of a farm or ranch. Restricted recreation means commercial recreation facilities that are of greater nuisance than conventional outdoor athletic facilities because of: a.The noise and traffic volumes they may generate; b.The glare they produce; or 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 9/13 c.The potential danger they may create from flying objects or the use of weapons. This category includes such uses as amusement parks, racetracks (auto, go-cart, motorcycle) or ranges (skeet, rifle, or archery). (8)Indoor recreation/entertainment. Adult establishment. See LEC 11.16.020. Indoor athletic facility means a commercial recreation facility that provides completely enclosed or indoor recreation space, such as racquet clubs, indoor skating rinks, swimming pools, or gymnasiums. Indoor recreation means establishments primarily engaged in activities intended to provide personal amusement, with the largest number of patrons typically during the evening hours or on weekends, and where food and refreshments may be provided as an incidental service, including such uses as bowling alleys, billiard, pool, or bingo parlors, amusement arcades, and indoor theaters (live or motion picture). (9)Agricultural and related uses. Agricultural entertainment business means an agricultural sales business that combines the elements and characteristics of agriculture and tourism, which is not necessarily located in an existing building. Examples of agricultural entertainment include: corn mazes, hay rides, sleigh rides, petting farms, on-farm tours, agricultural related museums, demonstrations of farming practices, techniques and methods, fee-based fishing and hunting, horseback riding, nature trails, haunted barns and similar activities which are related to agriculture. Agricultural production means establishments engaged in the production of crops, plants or vines, including agro forestry, or establishments which are engaged in the keeping, grazing, or feeding of livestock for sale, value increase, or livestock increase. Agricultural sales business means the retail sale of fresh fruits, vegetables, flowers, herbs, trees, or other agricultural, floricultural, or horticultural products. The operation may be indoors or outdoors, include pick-your-own or cut-your-own opportunities, and may involve the ancillary sale of items considered accessory to the agricultural products being sold or accessory sales of unprocessed foodstuffs; home processed food products such as jams, jellies, pickles, sauces; or baked goods and homemade handicrafts. The floor area devoted to the sale of accessory items shall not exceed 25 percent of the total floor area. No commercially packaged handicrafts or commercially processed or packaged foodstuffs shall be sold as accessory items. No activities other than the sale of goods as outlined above shall be allowed as part of the agricultural sales business. Agricultural services means establishments that perform services which support or assist the agricultural community, such as soil preparation services, crop services, farm management services, or breeding services on a fee or contract basis, along with experimental farms for research or educational purposes. This category is intended to apply where agricultural land is located, and may include buildings and other structures that provide office, warehouse, and storage areas for these establishments. Agricultural support means establishments engaged in farm equipment sales and repair, farm produce sales and supply (feed grain, elevators) and small-scale farm product processing, such as cider mills, dairies, poultry or meat processing. 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 10/13 Forestry operations means the use of land for the raising and harvesting of timber, pulpwood or other forestry products for commercial purposes, including the temporary operation of a sawmill and/or chipper or grinder to process the timber cut from that parcel or contiguous parcels. Excluded from this definition shall be the cutting of timber associated with land development approved by the city which shall be considered accessory to the development of the property. Greenhouse, non-retail, means a building or structure constructed chiefly of glass, glasslike or translucent material, cloth, or lath, which is devoted to the protection or cultivation of flowers or other tender plants. Wayside stand means a temporary structure or vehicle used for the seasonal retail sale of agricultural goods, floriculture, and horticulture produced by the operator of the wayside stand, which is clearly a secondary use of the premises and does not change the character thereof. (10)Alternative energy. Solar energy system means a device or structural design feature, a primary purpose of which is to provide for the collection, storage, and distribution of solar energy for space heating, cooling, water heating, or for power generation. Solar farm means a commercial facility that converts sunlight into electricity, whether by photovoltaic (PV), concentrating solar thermal devices (CST), or other conversion technology, for the principal purpose of sales of generated electricity to off-site customers. Wind generator means a machine which generates energy/power from the wind. (11)Industrial and extractive uses. Closed landfill management means the use associated with the responsibility and obligation of the state pollution control agency (MPCA) to take necessary response actions on the property as provided in M.S.A. § 115B.412, subd. 4, and M.S.A. §§ 115B.39 to 115B.43. Heavy industrial means establishments involved in the manufacture, fabrication, processing, compounding, or assembling of materials from raw material or previously processed material. These uses have severe potential for adversely affecting surrounding land uses due to potential environmental impacts related to noise, smoke/particulate emissions, vibration, noxious gases, odor, glare/heat, fire/explosion hazards and waste disposal. In addition, these uses may generate large amounts of truck or auto traffic, may involve the use of large unenclosed production areas, or may require large, tall structures that are unsightly. Heavy industrial uses typically involve primary production processes in the area of paper products (pulp mills), food processing (slaughterhouse, meat packing plant), chemicals (manufacture of inorganic chemicals, resins, plastics, paints, fertilizers, explosives, ink), petroleum products (refineries, bulk storage), primary metals (blasting, smelting, rolling), machinery and equipment manufacturer (auto assembly, engines, construction equipment), leather (storing, curing, tanning), gravel based products (manufacture of bricks, concrete, abrasives), and lumber products (saw mills). Landfill means a disposal site employing an engineered method of disposing solid wastes in a manner that minimizes environmental hazards by spreading, compacting to the smallest volume, and applying cover material over all exposed waste at the end of each operating day. 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 11/13 Laundry plant means establishments primarily engaged in the provision of laundering, cleaning, or dyeing services other than those classified as personal services. Typical uses include bulk laundry and cleaning plants, diaper services, and linen supply services. Light industrial means establishments involved in the processing, fabrication, assembly, or compounding of products where the process involved is relatively clean and nuisance free, usually completely enclosed, and with limited environmental effects. These uses can be made compatible with surrounding areas through landscape screening and through separation required by yard and height limitations. Typically, these uses result in the creation of finished products for sale on a wholesale basis to retailers or directly on a retail basis, and include uses in the following areas: lumber products (millwork, cabinet- making), electronics, textiles, printing and publishing services, bottling works, carpet and rug cleaning, furniture manufacture, paper (final processing of stationery, bags, etc., from purchased bulk stock), light metal finishing and light machining, rubber and plastics (compounding processed resins, molding plastics), gravel based products (pottery, cutting, finishing granite, firing and decorating clay products), and ice manufacturing. Motor freight and warehousing means establishments engaged primarily in either the storage or shipment of goods and materials, including terminal facilities for handling freight, and maintenance facilities in which the trucks (including tractor trailer units) involved with the operation of the business are stored, parked and serviced. Materials within a warehouse or terminal facility may be combined, broken down, or aggregated for trans-shipment or storage purposes where the original material is not chemically or physically changed. Non-production industrial means establishments that normally are considered industrial in character even though they are not involved in the manufacturing or processing of products. These uses generate negative impacts largely through their need for outside storage of equipment and materials, the large expanse of land needed for this storage, and the creation of dirt, dust and noise, along with intermittent truck traffic. These uses generally can be made compatible through landscape screening and the imposition of limited performance standards, and thus are not objectionable in most industrial or commercial districts. The types of uses categorized here include contractor's yards, lumberyards, utility yards, and public maintenance shops and yards. Research and testing means establishments or other facilities for carrying on investigation in the natural or physical sciences, or engineering and development as an extension of investigation with the objective of creating end products, on a contract or fee basis, and including pilot plant operation. Resource extraction means a use involving on-site extraction of surface or subsurface mineral products or natural resources. Typical uses are quarries, borrow pits, sand and gravel operations, mining, and soil mining. Specially excluded from this use type shall be grading and removal of dirt associated with an approved site plan or subdivision. Salvage/recyclable center means land or buildings where waste, discarded, salvaged, or recyclable materials are bought, sold, stored, exchanged, sorted, cleaned, packed, disassembled or handled on a commercial basis, including, but not limited to, scrap metal, aluminum, rags, paper, rubber products, glass products, lumber products and products resulting from the wrecking of automobiles or other vehicles. Any site containing two or more unregistered, inoperable motor vehicles is classified as a salvage center. (12)Utilities, transportation and communications. 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 12/13 Air transportation means establishments engaged in domestic, emergency, or foreign transportation of passengers or goods by air, including airports, flying fields, rotorcraft terminals, as well as any associated terminal facilities. Broadcasting or communication means any unstaffed facility for the transmission and/or reception of radio, television, radar, cellular telephone, personal paging device, specialized mobile radio (SMR), and similar services. A broadcasting or communication facility usually consists of an equipment shelter or cabinet, a support tower or other structure used to achieve the necessary elevation, and the transmission or reception devices or antenna. Broadcasting or communication facilities include wireless communications facilities and wireless communications towers as defined in LEC 1.08. Essential services means overhead, above ground or underground electrical, gas, steam or water transmission or distribution systems and structures of collection, communication, supply or disposal systems and structures used by public utilities or governmental departments or commissions or as are required for the protection of the public health, safety or general welfare, including towers, poles, wires, mains, drains, sewer pipes, conduits, cables, fire alarm boxes, police call boxes and accessories in connection therewith but not including buildings. Local transit means establishments primarily engaged in furnishing local and suburban passenger transportation, including taxicabs, passenger charter services, school buses, and terminals (including service facilities) for motor vehicle passenger transportation. Railroad transportation means establishments engaged in domestic freight and passenger transportation by rail, and including railroad yards, freight stations and switching yards. (13)Accessory uses. Bed and breakfast means a private, owner-occupied residence that contains no more than five guestrooms where lodging, with or without meals, is provided for compensation. Guest stays shall be limited to 30 days. Commercial wedding ceremony venue means a use involving a location to conduct wedding ceremonies, not including receptions, and usually operated in exchange for remuneration by providing the venue to the public. Domestic pets means the keeping of small domestic animals, such as dogs, cats, birds, rodents, fish, and the like, not primarily for produce or value increase, but rather for show, sport, or as pets. Family day care means a residence licensed by the state department of human services in which no more than ten children at any one time receive care, maintenance and supervision by someone other than their relatives or legal guardians for less than 24 hours per day. Group family day care means a residence licensed by the state department of human services in which at least 11, but not more than 14, children receive care, maintenance and supervision by someone other than their relatives or legal guardians for less than 24 hours per day. Home occupations means any gainful occupation or profession engaged in by the occupants and up to one non-occupant employee of a dwelling when carried on within a 6/10/22, 8:24 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=105.12.110_Zoning_Use_Types_And_Classifications 13/13 dwelling unit or in an accessory building, provided that no signs other than those allowed by the city's sign regulations regarding home occupations are present. Kennel, private, means the keeping, breeding, raising, showing or training of four or more dogs over six months of age for personal enjoyment of the owner or occupants of the property, and for which commercial gain is not the primary objective. Merchandise parties means private parties held for the purpose of soliciting sales. Merchandise parties shall include but not be limited to Tupperware, Mary Kay, and Avon parties. Stable, private, means the keeping, breeding, or raising of horse or ponies exclusively for the personal use and enjoyment of the owner or occupant of the property or the riding of horses or ponies by the owner or occupant of the property and their guests. Swimming pools means any permanently located pool, used for swimming and/or bathing which is over 24 inches in depth, or which has a surface area exceeding 150 square feet. Temporary sales means any isolated or occasional display and sale of used personal property or home-crafted items conducted on residential premises by the occupant of the residential property. Temporary sales shall include rummage sales, basement sales, yard sales, porch sales, craft sales, garage sales, and seasonal boutiques. HISTORY Amended by Ord. 08-250 on 9/7/2021 Adopted by Ord. 08-253 on 11/3/2021 § 153.322 MIXED RESIDENTIAL (MXR-3) DISTRICT. (A) Purpose. The Mixed Residential (MXR-3) District is intended to provide areas offering a variety of housing types, including single-family attached and detached dwellings and multi-family structures to retain the environment and character of less intensive styles of multiple-family residence areas by establishing building and lot area requirements; to broaden the choice of residential living styles in the city; and to promote quality development by following a thorough application, review, and approval process. (B) Permitted uses. Subject to applicable provisions of this chapter, the following are permitted uses in the MXR-3 District: (1) Dwelling, single-family detached; (2) Dwelling, single-family attached - 8 units per building maximum with each unit having a separate entrance; (3) Recreation, public. (C) Accessory uses. Subject to applicable provisions of this chapter, the following accessory uses in the MXR-3 District are allowed only when it is an accessory to an existing principal permitted use on the same lot. All accessory uses must meet the procedures set forth in and regulated by §§ 153.110et seq. (1) Detached accessory structures (detached single-family and dwelling apartment only); (2) Day care facility, licensed - serving 6 or fewer persons; (3) Kennel, private - 3 or fewer pets (single-family detached lots only); (4) Residential facility, licensed - serving 6 or fewer persons; (5) Other uses customarily associated with but subordinate to a permitted use, as determined by the city; (6) Amateur radio antenna (subject to the amateur radio antenna standards in § 153.096(II)(9)). (D) Certificate of compliance. Subject to applicable provision of this chapter, the following are uses in the MXR-3 District that require approval with a certificate of compliance as set forth in and regulated by § 153.029. (1) Accessory uses. (a) Accessory apartment (single-family detached dwellings only); (b) Day care facility, licensed - serving 7 to 14 persons; (c) Home occupations (single-family detached dwellings only); (d) Residential facility, licensed - serving 7 to 10 persons; (e) Solar energy systems, either roof or ground-mounted (meeting accessory structure requirements) according to § 153.307. (E) Conditional uses. Subject to applicable provisions of this chapter, the following are conditional uses in the MXR-3 District (requires a conditional use permit based upon procedures set forth in and regulated by § 153.034). (1) Principal uses. (a) Dwelling, apartment/condominium; (b) Essential services, governmental buildings and storage; (c) Essential services, utility substation; (d) Place of worship; (e) School. (2) Accessory uses. (a) Columbarium - accessory to place of worship; (b) Day care facility, licensed - serving more than 14 persons; (c) Residential facility, licensed - serving more than 10 persons; (3) Other uses similar to those permitted in this section as determined by the Planning Commission and City Council. (4) New wireless support structures and small wireless facilities located within the public right-of-way and meeting the requirements of Chapter 98, and subject to the conditions found in § 153.096(PP). (F) Interim uses. Subject to applicable provisions of this chapter, the following are interim uses in the MXR-3 District (requires an interim use permit based upon procedures set forth in and regulated by § 153.035). (1) Agricultural uses; (2) Uses as determined by the Planning Commission and City Council. (G) Lot size, setback, and height requirements. The following minimum requirements shall be observed in an MXR-3 District subject to additional requirements, exceptions, and modifications as set forth in this chapter. (1) Minimum lot requirements. (a) Lot area. 1. Detached single-family: 9,000 square feet; 2. Attached townhouse: 7,500 square feet per unit, or no minimum lot size if common site area owned and maintained by a homeowner’s association. 3. Apartment/condominium dwelling: 43,560 square feet or 1 acre; (b) Lot width. 1. Detached single-family: 60 feet; 2. Multiple-family dwelling: 100 feet. 3. Attached townhouse: no established minimum. (2) Setbacks. (a) Principal structure. 1. Front yard: a. Arterials, as designated in the Comprehensive Plan: 75 feet from the right-of-way line or 150 feet from the centerline of the street, whichever is greater; b. Collector street: 30 feet from the public right-of-way; c. Local street: 30 feet from the public right-of-way; d. Existing private street: 30 feet from the back of the curb or edge of pavement; e. Internal: 20 feet between attached or multi-family principal structures separated by common area. 2. Side yard: a. Single-family dwelling: 10 feet (unless abutting a side street 25 feet); b. Attached townhome: 10 feet; c. Multiple-family dwelling: 30 feet. 3. Side street: a. Single-family dwelling: 25 feet; b. Attached townhome: 25 feet; c. Multiple-family dwelling: 20 feet. 4. Rear yard: 30 feet. 5. Internal: 20 feet between principal structures. (b) Detached accessory structure. 1. Front yard: 30 feet and cannot be located between the principal structure and the street. 2. Side street: 25 feet and cannot be located between the principal structure and the street. 3. Side yard: 10 feet. 4. Rear yard: 10 feet. (3) Building height. (a) Principal structures: shall be limited to a maximum height of: 1. Single-family detached: 35 feet; 2. Attached townhome: 35 feet or 3 stories, whichever is less; 3. Apartment and condominiums (stacked units): 45 feet or 3 stories, whichever is less. (b) Detached accessory structures: shall be limited to 1 story with a maximum sidewall height of 10 feet measured from the floor surface to the underside of the ceiling member. (Ord. 537, passed 11-8-2004; Am. Ord. 549, passed 5-22-2006; Am. Ord. 596, passed 2-8-2010; Am. Ord. 651, passed 3- 14-2016; Am. Ord. 676, passed 7-9-2018; Am. Ord. 694, passed 2-10-2020) § 153.323 MULTIPLE-FAMILY RESIDENTIAL (MF) DISTRICT. (A) Purpose. The Multiple-Family Residential (MF) District is intended to establish areas for the development of multiple dwelling structures with a maximum density of 15 units per net acre; to maintain a residential character in areas with a high density, multiple-family development; to broaden the choice of residential living styles in the city; to set limitations on housing development density; and to promote quality development by following a thorough application, review, and approval process. (B) Permitted uses. Subject to applicable provisions of this chapter, the following are permitted uses in the MF District: (1) Dwelling, multiple-family (apartment, condominium, cooperative); (2) Dwelling, single-family, existing prior to the date of adoption of this chapter. All setback requirements for principal structures and detached accessory structures shall comply with the standards in the MXR-1 District; (3) Recreation, public. (C) Accessory uses. Subject to applicable provisions of this chapter, the following accessory uses in the MF District are allowed only when it is an accessory to an existing principal permitted use on the same lot. All accessory uses must meet the procedures set forth in and regulated by §§ 153.110et seq. (1) Detached accessory structure; (2) Detached accessory structure, existing single-family shall comply with the standards in the MXR-1 District. (3) Day care facility, licensed - serving 6 or fewer persons in an existing single-family dwelling only; (4) Residential facility, licensed - serving 6 or fewer persons in an existing single-family dwelling only; (5) Other uses customarily associated with but subordinate to a permitted use as determined by the city; (6) Amateur radio antenna (subject to the amateur radio antenna standards in § 153.096(II)(9)). (D) Certificate of compliance. (1) Subject to applicable provision of this chapter, the following are uses in the MF District that require approval with a certificate of compliance as set forth in and regulated by § 153.029. (2) Accessory uses. (a) Day care facility, licensed - serving 7 to 14 persons in an existing single-family dwelling only; (b) Home occupations in an existing single-family dwelling only unless otherwise approved by the city and property owner; (c) Residential facility, licensed - serving 7 to 10 persons in an existing single-family dwelling only; (d) Solar energy systems, either roof or ground mounted (meeting accessory structure requirements) according to § 153.307. (E) Conditional uses. Subject to applicable provisions of this chapter, the following are conditional uses in the MF District (requires a conditional use permit based upon procedures set forth in and regulated by § 153.034). (1) Principal uses. (a) Essential services, governmental buildings and storage; (b) Essential services, utility substations; (c) Manufactured home park; (d) Nursing home. (2) Accessory uses. (a) Day care facility, licensed - serving more than 14 persons in an existing single-family home only; (b) Residential facility, licensed - serving more than 10 persons in an existing single-family home only; (3) Other uses similar to those permitted in this section as determined by the Planning Commission and City Council. (F) Interim uses. Subject to applicable provisions of this chapter, the following are interim uses in the MF District (requires an interim use permit based upon procedures set forth in and regulated by § 153.035). (1) Uses as determined by the Planning Commission and City Council. (G) Lot size, setback, and height requirements. The following minimum requirements shall be observed in an MF District subject to additional requirements, exceptions, and modifications set forth in this chapter. (1) Minimum lot requirements. (a) Lot area: 43,560 square feet (or 1 acre); (b) Lot width: 100 feet. (2) Setbacks. (a) Principal structure. 1. Front yard: a. Arterials as designated in the Comprehensive Plan: 75 feet from the right-of-way line or 150 feet from the centerline of the street, whichever is greater; b. Collector street: 30 feet from the public right-of-way; c. Local street: 30 feet from the public right-of-way; d. Existing private street: 30 feet from the back of curb or edge of pavement. 2. Side yard: 30 feet. 3. Rear yard: 30 feet. 4. Internal: 20 feet between principal structures. (b) Accessory structure. 1. Front yard: 30 feet and cannot be located between the principal structure and the street. 2. Side yard: 10 feet. 3. Rear yard: 10 feet. (3) Maximum height. (a) Principal structure: shall be limited to a maximum height of 4 stories and 45 feet, whichever is less. (b) Accessory structures: shall be limited to 1 story with a maximum sidewall height of 10 feet, measured from the floor surface to the underside of the ceiling member. (H) Design standards for Townhome and Multiple-Family Structures. (1) Design requirements: row style, multi-story (not stacked) or 1 level attached. (2) Design character. A high quality of building design is an important way to bring larger buildings into a traditional neighborhood scale. In addition, site design, landscaping, and pedestrian amenities will help to create a comfortable, livable district and a shared sense of ownership among residents. (a) Subdivision requests. Building elevations and floor plans shall be furnished with subdivision requests illustrating exterior building material and colors to demonstrate compliance with this section. Building floor plans shall identify the interior storage space within each unit. (b) Decks or porches. Provision shall be made for possible decks, porches, or additions as part of the initial dwelling unit building plans. The unit lot shall be configured and sized to include decks or porches. (c) Minimum overhang. In case of a gable roof, a minimum 12 inch soffit shall be required. (d) Exterior building finish. The exterior of attached/townhome dwelling units shall include a variation in building materials which are to be distributed throughout the building facades and coordinated into the architectural design of the structure to create an architecturally balanced appearance. In addition, attached/townhome dwelling structures shall comply with the following requirements: 1. A minimum of 25% of the combined area of all building facades of a structure shall have an exterior finish of brick, stucco, and/or natural or artificial stone. 2. Except for brick, stucco, and/or natural or artificial stone, no single building facade shall have more than 75% of 1 type of exterior finish. 3. Except for brick, stucco, and/or natural or artificial stone, no townhome dwelling structure shall have more than 60% of all building facades of 1 type of exterior finish. 4. For the purpose of this section and material calculations: a. The area of the building facade shall not include area devoted to windows, entrance doors, garage doors, or roof areas. b. Variations in texture or style (i.e., lap siding versus shake shingle siding) shall be considered as different materials meeting the requirements of this section. c. Integral colored split face (rock face) concrete block shall not qualify for meeting the brick, stucco, and/or natural or artificial stone material requirements. d. Multiple unit buildings in proximity to each other shall not look alike in terms of color of siding, accent and roofing materials. The building under consideration will be compared to 2 homes on 2 lots on either side of it and to the 3 homes directly facing it. e. Outside storage shall be allowed only in designated areas which are screened in accordance with § 153.146 of this chapter and under the ownership of the property owners’ association subject to other applicable provisions of this chapter. (3) Building design and materials, multi-family (stacked). (a) Design character: The scale of multi-family dwellings makes the buildings highly visible and it is critical to incorporate high quality architecture. All buildings shall be designed to accomplish the goals and policies of the Comprehensive Plan. Building materials shall be attractive in appearance, durable, and of a quality which is both compatible with adjacent structures and consistent with the city’s standards for the district in which it is located. All buildings shall be of good aesthetic and architectural quality, as demonstrated by the inclusion of elements such as accent materials, entrance and window treatments, contrasting colors, irregular building shapes and rooflines, or other architectural features in the overall architectural concept. (b) A minimum of 50% of the combined area of all building facades of a structure shall contain the following permitted major exterior materials: face brick (glazed or unglazed), clay faced tile, and/or stone masonry (granite, limestone, marble, slate, sandstone, or quartzite). (c) Accent materials may include: finished texture stucco (cement or synthetic), exterior finished wood siding (painted, stained, or weather sealed), exterior finished metal siding (not including sheet metal of any kind), exterior finished vinyl siding or fiber cement siding in lap or panel design (color impregnated or painted). Panel seam lines shall be architecturally integrated into the building design so that they are not visible. Seam lines can either be filled, covered with accent material or some other method to make seam lines invisible. Accenting materials and design shall be included on all facades. (d) All building and roofing materials shall meet current accepted industry standards and tolerances, and shall be subject to review and approval by the city for quality, durability, and aesthetic appeal. The applicant shall submit to the city product samples, color building elevations, and associated drawings which illustrate the construction techniques to be used in the installation of such materials. (e) If complementary building styles, materials, and color schemes are proposed for a development, the developer shall submit to the city a plan showing the distribution of the styles, materials, and colors throughout the development. (Ord. 537, passed 11-8-2004; Am. Ord. 596, passed 2-8-2010; Am. Ord. 651, passed 3-14-2016) 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 1/5 (a) (b) (1) (2) Sec. 31-310. - TH townhouse residential district. Allowable uses. See Table in Section 31-315 for the allowable uses within the TH district. Massing regulations. Minimum standards. Lot area per unit 5,000 square feet Front yard setback Residence 20 feet Garage front facing 25 feet Garage side facing 20 feet Side yard setback 25 feet Rear yard setback 25 feet Building separation 15 feet Height 2½ stories, not to exceed 35 feet Additional setback standards. Trunk Highway 96 (Stonebridge Trail to Co Rd. 15)100 feet McKusick Road (Neal Ave. to Co Rd. 15)100 feet County Rd. 12 (Northland Ave. to Co Rd. 15)100 feet County Rd. 15 (Trunk Highway 36 to Trunk Highway 96)100 feet Railroad 75 feet 1 2 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 2/5 (c) (a) (1) (b) (1) (2) Design review. Design review is required for all permitted and specially permitted buildings or uses. All standards are minimum requirements unless otherwise noted. Measured from the right-of-way line. Sec. 31-312. - RCL low density multiple-family residential district. Allowable uses. See Table in Section 31-315 for the allowable uses within this district. Massing regulations. Minimum standards. Lot area 20,000 square feet Lot area per unit 7,000 square feet Open space per unit 1,500 square feet Front setback 35 feet Side setback 50 feet Rear setback 50 feet Principal building separation 50 feet Building Height 35 feet maximum Additional setback standards. Trunk Highway 96 (Stonebridge Trail to Co Rd. 15)100 feet McKusick Road (Neal Ave. to Co Rd. 15)100 feet 1 2 1 2 2 2 3 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 3/5 (c) (d) (1) (2) (3) (a) (1) (b) (1) County Rd. 12 (Northland Ave. to Co Rd. 15)100 feet County Rd. 15 (Trunk Highway 36 to Trunk Highway 96)100 feet Railroad 75 feet Recreation facilities. Ten percent of the gross project area shall be specifically designed, developed and maintained for recreational purposes such as: Children's play apparatus, swimming and wading pools, game areas such as tennis and horseshoe courts, picnicking and outdoor cooking facilities, etc. In addition, the city council at its discretion may require that the developer provide public park space according to the city park dedication requirements. Landscaping and screening. Landscaping and screening shall be as follows: All sites when fully developed shall be completely graded so as to adequately drain and dispose of all surface water, stormwater and groundwater in such a manner as to preclude large scale erosion and unwanted ponding. All sites when fully developed shall be landscaped according to a plan approved by the city council. The landscaping plan shall specify the size, type and location of all trees and shrubbery and the location of all sodded areas. Parking areas containing four or more spaces which are adjacent to or across the street from a residential district shall be screened to a height of at least four feet by shrubbery, wood or masonry materials. All standards are minimum requirements unless otherwise noted. Principal and accessory structures must meet this setback standard. Measured from the right-of-way line. Sec. 31-313. - RCM medium density multiple-family residential district. Allowable uses. See Table in Section 31-315 for the allowable uses within this district. Massing regulations. Minimum standards. Lot area 12,000 square feet 1 2 3 1 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 4/5 i. a. b. (2) Lot area per unit 2,800 square feet Maximum lot coverage 30 percent Maximum oor area ratio 0.75 Front setback Principal building 35 feet Accessory building 45 feet Side setback Principal building 20 feet Accessory building 10 feet Rear setback Principal building 45 feet Accessory building 10 feet Principal building separation 35 feet Building Height 3 stories maximum Exceptions: One- and two-family dwellings may be allowed to conform to the RB district setback requirements. When the adjacent buildings are located with a setback less than is required above, a multiple dwelling may be permitted to be located up to the point of the lesser setback requirement. Additional setback standards. 2 6/16/22, 12:24 PM Stillwater, MN Code of Ordinances 5/5 (c) (d) (1) (2) (3) Trunk Highway 96 (Stonebridge Trail to Co Rd. 15)100 feet McKusick Road (Neal Ave. to Co Rd. 15)100 feet County Rd. 12 (Northland Ave. to Co Rd. 15)100 feet County Rd. 15 (Trunk Highway 36 to Trunk Highway 96)100 feet Railroad 75 feet Recreation facilities. There shall be 200 square feet per dwelling unit or ten percent of the gross project area, whichever is greater, specifically designed, developed and maintained by the owner for recreation purposes in the RCM district such as follows: Children's play apparatus, swimming and wading pools, game areas, such as tennis and horseshoe courts, picnicking and outdoor cooking facilities, etc. In addition, the city council at its discretion may require that the developer provide public park space according to the city park dedication requirements. Landscaping and screening. Landscaping and screening shall be as follows: All sites when fully developed shall be completely graded so as to adequately drain and dispose of all surface water, stormwater and groundwater in such a manner as to preclude large scale erosion and unwanted ponding. All sites when fully developed shall be landscaped according to a plan approved by the city council. The landscaping plan shall specify the size, type and location of all trees and shrubbery and the location of all sodded areas. Parking areas containing four or more spaces which are adjacent to or across the street from a residential district shall be screened to a height of at least four feet by shrubbery, wood or masonry materials. All standards are minimum requirements unless otherwise noted. Measured from the right-of-way line. 1 2 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 1/4 (a) (b) (c) Sec. 24-134. - R-4 urban residential district. Purpose and scope. This section applies to the R-4 urban residential district. This district is created to provide an adequate amount of land to meet the demand for urban residential development. These areas will require public sewer and water systems which will be extended to encourage staged and orderly growth in the city in conformance to the comprehensive plan or amendments thereto. These lands are shown as "Places to Live, High Density Residential", "Places to Live, Medium Density Residential" or "Places to Live, Low Density Residential" on the comprehensive plan or amendments thereto. Maximum density shall be consistent with the base density in the comprehensive plan unless increased using a density bonus through an approved planned unit development. Permitted uses. Permitted uses are as follows: Agricultural building existing on April 14, 1971. Agricultural use existing on April 14, 1971. Essential services including power lines under 35 KV. Historic site. Open space, public or private. Residential care facility serving six or fewer persons. Single-family detached dwelling on a platted lot. Single-family detached dwelling on an unplatted lot not less than 20 acres with a width of not less than 500 feet. Single-family detached dwelling on an unplatted lot of record less than 20 acres in existence as of September 12, 2012. Permitted accessory uses. Permitted accessory uses are as follows: Accessory structures in accordance with section 24-281. Common property to a multiple family complex or planned unit development. Daycare, home-based and licensed, serving 12 or fewer persons. Ground source heat pump systems in accordance with section 24-404. Home business in accordance with section 24-263. Retail sales accessory to golf course/driving range, ice arena or park facility. 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 2/4 (d) (e) Satellite dish for residential use. Solar energy system in accordance with section 24-406. Temporary seasonal roadside stand not to exceed one per farm selling only products grown on that farm. Wind energy system on lots at least 20 acres in size up to 45 feet in height in accordance with section 24-405. Conditional uses. Conditional uses are as follows: Accessory uses for a place of worship or school in addition to those listed as permitted may be allowed as a conditional use. Assisted living facility serving 16 or more persons. Cemetery in existence as of September 26, 2012. Daycare, accessory to a place of worship or school. Daycare, home-based and licensed, serving from 13 to 16 persons. Daycare, licensed, serving more than 16 persons along a collector or arterial street. Golf course, driving range. Government use. Historic reuse ancillary to the primary residential use limited to: tearoom with scheduled events; indoor or outdoor wedding receptions and socials as scheduled events; bed and breakfast; and catering kitchen. Multiple-family dwelling in accordance with section 24-309. Place of worship in accordance with section 24-303. Planned unit development in accordance with article IV. Residential care facility serving from seven to 16 persons. Single-family attached dwelling. School in accordance with section 24-303. Interim conditional uses. Interim conditional uses are as follows: Farmers' market in accordance with section 24-265. 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 3/4 (f) (1) a. b. c. 1. 2. 3. 4. (i) (ii) (iii) (iv) (2) (3) (4) (5) (6) (7) (8) a. b. c. d. e. Telecommunications tower in accordance with article VI, division 4. Wind energy system on lots at least 20 acres in size up to 75 feet in height in accordance with section 24-405. Zoning district standards. Minimum lot area: Single-family detached dwellings, unplatted: 20 acres. Single-family detached dwellings, platted: 10,000 square feet with a minimum buildable area of 4,000 square feet. Single-family attached dwellings: Duplex: An average of 6,000 square feet per unit. Townhouse: An average of 4,500 square feet per unit. Quadplex: An average of 4,500 square feet per unit. Multiple-family dwellings: Efficiency: 2,300 square feet (maximum five percent efficiency units). One-bedroom: 2,925 square feet. Two-bedroom: 3,600 square feet. Three-bedroom: 4,275 square feet. Minimum lot width: 80 feet. Minimum lot depth: 125 feet unless the rear lot line abuts a collector or arterial street then the minimum lot depth shall be 160 feet. Maximum lot depth: The depth of any lot in a subdivision shall not exceed three times the lot's width. Access: Maximum of two accesses per residential lot on a public street. Maximum height: Three stories or 40 feet. Minimum front yard setback: 35 feet, unless the front yard abuts an existing or future collector or arterial street, then the minimum front yard shall be 50 feet from the anticipated future right-of-way. Minimum side yard setback: From residential street: 20 feet. From major road (collector or arterial street): 50 feet. From interior lot line: Ten feet. From interior lot line: If a garage, five feet. When the garage and the living unit align, or a portion of the living unit is above the 6/16/22, 12:39 PM Woodbury, MN Code of Ordinances 4/4 (9) (10) garage, the side yard setback to the structure on the garage side shall be five feet. Minimum rear yard setback: 35 feet unless the rear yard abuts an existing or future collector or arterial street, then the minimum rear yard shall be 50 feet from the anticipated future right-of-way. Maximum building coverage: 35 percent. (Ord. No. 1858, § 1858.01, 9-26-2012; Ord. No. 1957 , § 4, 12-12-2018) 6/16/22, 3:58 PM Woodbury, MN Code of Ordinances 1/4 (a) (1) (2) (3) (b) (c) (d) Sec. 24-147. - MX mixed use district. Purpose and scope. This section applies to the MX, mixed use district. The mixed use district provides flexibility to allow two or more compatible Places to Live, Shop and Work uses for properties guided as "Mixed Use" in the comprehensive plan. This zone is established with the following intent: Through the planned unit development conditional use permit process, provide for a mix of complementary and supportive land uses within the project area. Promote higher residential densities and walkable, sustainable development. Establish and maintain high standards of site design, spatial relationships, building architecture and landscape design to create a quality, attractive environment. Prohibited uses. Single-family or two-family homes. Motels. Uses not identified in subsections (c) or (d) that are clearly incompatible with other uses or the purpose or intent of this district as outlined in the comprehensive plan. Permitted uses. Permitted uses are as follows: Bank without drive-through facilities and/or drive-up automated teller machines. Business service. Clinic for human care. Commercial recreation use, 5,000 square feet or less in floor area, when located within a multi-tenant building. Government use. Essential services. Office use. Personal service. Other permitted uses identified as part of an approved planned unit development. Permitted accessory uses. Permitted accessory uses are as follows: Accessory uses customarily incidental and clearly subordinate to the primary use identified as part of an approved planned unit development. 6/16/22, 3:58 PM Woodbury, MN Code of Ordinances 2/4 (e) Bicycle racks. Cafeteria not open to the general public. Community room. Clubhouse/recreation building. Ground source heat pump systems in accordance with section 24-404. Off-street parking and loading areas. Refuse and recycling storage area in accordance with 24-252. Solar energy systems in accordance with section 24-406. Underground parking. Permitted accessory uses within a hotel and/or conference center with limited exterior building signage identified as part of an approved planned unit development such as: Convenience retail. Health and fitness center. Meeting/conference/banquet facilities. Motor vehicle leasing not to exceed an inventory of ten vehicles stored outdoors. Office. Personal service. Restaurant (class I or II). Retail. Shuttle service. Theater. Conditional uses. Conditional uses are as follows: Assisted living facility. Banks with drive-through facilities and/or drive-up automated teller machines as part of a multi-story building in accordance with section 24-308. 6/16/22, 3:58 PM Woodbury, MN Code of Ordinances 3/4 (f) (g) (h) (1) (2) (3) (4) Commercial recreation use, greater than 5,000 square feet in floor area or when located in a free-standing building. Daycare facility, licensed. Hotel and/or conference center. Multiple-family dwelling in accordance with section 24-309. Parking deck/ramp in accordance with section 24-312. Planned unit development in accordance with article IV. Restaurant, class I or class II, within or physically connected to another use. Retail use up to 20,000 square feet in floor area. Single-family attached dwelling. Teaching or training facility without outdoor areas, equipment or storage for training or instruction. Theater, excluding drive-ins. Other conditional uses identified as part of an approved planned unit development. Compatible uses. Other uses may be deemed compatible and appropriate by the zoning administrator. Where a question arises as to a use being compatible, the zoning administrator shall refer the issue to the planning commission. The planning commission shall make a recommendation to the city council for a final determination as to whether a proposed use is not to be allowed, is compatible as a permitted use, or is compatible as an accessory use. Mix of uses. Uses may be vertically and/or horizontally mixed within the project area. Proposed planned unit developments in this district shall include a minimum of two primary uses from two different land use categories (places to live, places to shop and places to work). To be considered a primary use the use must occupy a minimum of 20 percent of the floor area within the development. Retail uses shall not exceed 40 percent of the floor area within the development. Zoning district standards. Minimum zoned areas shall closely match areas identified on the comprehensive plan as mixed use. Minimum lot area: Two acres. Minimum height of buildings: Two stories plus roofing height. Maximum height of buildings: Six useable stories plus roofing height. 6/16/22, 3:58 PM Woodbury, MN Code of Ordinances 4/4 (5) (6) (7) (i) (1) a. b. c. d. (2) a. b. (3) Front, side, rear yard: As identified in the planned unit development. Horizontal mixed use residential density shall be a minimum of seven units per acre and a maximum of 15 units per acre and shall be calculated using the proposed horizontal residential land use areas. Vertical mixed use density shall be calculated on the overall net mixed use project area as defined in the planned use development ordinance and the comprehensive plan. Performance standards. Parking. Uses shall provide parking under section 24-242, off-street parking spaces, required by the City Code unless modified as part of a planned unit development. Underground parking and parking ramps and decks shall be allowed eight-foot, nine inches wide parking spaces with the exception of handicapped parking stalls. Personal service and internal retail uses in a residential building serving the immediate neighborhood shall provide parking at a ratio of one space per 250 square feet of net floor space. Surface parking lots shall be minimized through the use of parking structures, underground parking and attached garages. Parking lots shall be extensively screened from public roadways with berms, combination of deciduous and coniferous plant materials and/or building orientation. Architectural criteria. Nonresidential structures shall conform to the commercial standards of the architectural ordinance. Residential structures containing offices or retail or personal services shall use brick in combination with other materials on at least part of the front facades of such buildings that contain the mixed use. Other requirements. The city council may apply additional requirements as necessary to implement the purpose of this district and the comprehensive plan and any amendments thereto. (Ord. No. 1858, § 1858.01, 9-26-2012) 1 STAFF REPORT DATE: 06/21/2022 REGULAR TO: City Council FROM: Molly Just, Planning Director Ben Hetzel, City Planner AGENDA ITEM: Zoning Text Amendment – Article XIII Village Mixed Use District GENERAL BACKGROUND: The City of Lake Elmo Planning Department has initiated a zoning text amendment of Article XIII Village Mixed Use District to incorporate the Village Medium Density Residential (V-MDR) and Village High Density Residential (V-HDR) zoning districts into the City Code. The incorporation of these districts is in implementation of the 2040 Comprehensive Plan. The 2040 Comprehensive Plan recommends creation of strong and vibrant districts in the Village Planning Area so that it becomes a destination for all residents of the community. The addition of these districts is part of a large picture that focuses on what makes specific areas of Lake Elmo unique by providing zoning standards to promote the vitality of places like the Old Village by bringing more people into the Village Planning Area. The V-MDR and V-HDR provide for an area of compact development mutually compatible through a combination of careful planning and urban design. The addition of these districts provides a mixture of uses and level of density and intensity intended to support the level of public infrastructure planned for the area and provide vitality to the Old Village. The criteria and standards outlined in the proposed amendments were derived from Planning Commission’s recommendations and guidance from the 2040 Comprehensive Plan. There is a pending Preliminary Plat and PUD for the V-HDR and V-MDR zoning districts and a conceptual plat and PUD for the V-MDR district. It is critical to adopt these districts at this time. ISSUE BEFORE THE CITY COUNCIL: Should the City Council adopt zoning code text amendments to incorporate the new Village Medium Density Residential and Village High Density Residential Districts into the zoning code to enable the development recommended in the 2040 Comprehensive Plan? SUMMARY OF AMENDMENTS 105.12.770 PURPOSE AND DISTRICT DESCRIPTION V-MDR Village Low Density Residential. The purpose of the V-MDR zoning district is provide an area for greater variety in housing stock and bring more people closer to living within easy access to the Main Street of the Old Village. Appropriate housing types in this area may include single-family detached, duplexes, and townhomes/villa housing types. Residential development within areas zoned V-MDR will occur at a density of 3.01 to 8 units per acre. V-HDR Village High Density Residential. The purpose of the V-HDR zoning district is to provide an area for a variety of higher density housing types in the Village Planning Area and to bring a higher concentration of people closer to Old Village Destinations and amenities. Appropriate housing types in this area include multifamily dwellings. This area is intended to provide for opportunities for more 2 housing at a wider range of price points and to provide lifecycle housing in Lake Elmo. Residential development within areas zoned V-HDR will occur at a density of 8.01 to 12 units per acre. 105.12.780 PERMITTED AND CONDITIONAL USES Amendments to this section include adding the V-MDR and V-HDR districts into Table 11-1 (Permitted and Conditional Uses, Village Districts) and identifying what listed specific uses are allowed for each district. Each use and district correlation was determined with the purpose and intent of each district in mind. 105.12.790 LOT DIMENSTIONS AND BUILDING BULK REQUIREMENTS The V-MDR and V-HDR districts are incorporated into Table 11-2 (Lot Dimensions and Setback Requirements, Village Districts) to establish appropriate dimensional and building bulk requirements for each new district. In addition minor updates were made to the V-LDR and VMX districts. 105.12.820 LOT DEVELOPMENT STANDARDS FOR SPECIFIC USES No additional standards were added to this section. Only the removal of text for better clarification and transparency and inapplicable code references. PUBLIC COMMENT: A hearing notice was published in the Stillwater Gazette on June 3, 2022. On the day of the Planning Commission meeting a letter was received from Brian Zeller. The letter is attached and staff addressed the letter during the staff presentation. Answers are as follows: 1. The proposed amendments do not include the overlay language as it was not ready for adoption. 2. There was no change to Sales and Storage Lots. 3. A mix of uses on one site is still allowed. 4. The VMX District does contemplate a mix of uses so I am not sure if there is an issue. 5. You can always submit an application for a text amendment and propose uses you would like to see. There was no comment during the public hearing. The Planning Commission voted to recommend adoption of the subject text amendments. FISCAL IMPACT: None. Adoption of the new zoning districts to enable development of parcels planned V-MDR and V-HDR is a requirement of the 2040 Comprehensive Plan. RECOMENDATION: Staff recommends that the City Council adopt the subject amendments to Article XIII Village Mixed Use District to incorporate the Village Medium Density Residential (V-MDR) and Village High Density Residential (V-HDR) zoning districts into the City Code. Two separate suggested motions are provided below. “Motion to adopt the amendments to zoning code Article XIII Village Mixed Use District” “Motion to approve summary publication of Ordinance 2022-10 (the Zoning Ordinance amendments) with approval of Resolution 2022-067” ATTACHMENTS: 1. Ordinance 2022-10 2. Resolution 2022-067 3. Letter from Brian Zeller 4. Existing Village Mixed Use District 1 CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA ORDINANCE NO. 2022-10 AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE BY ADDING THE VILLAGE MEDIUM DENSITY RESIDENTIAL DISTRICT AND THE VILLAGE HIGH DENSITY RESIDENTIAL DISTRICT SECTION 1. The City Council of the City of Lake Elmo hereby ordains that Title 105 Zoning; Chapter 105: Article XIII Village Mixed-Use District is hereby amended by changing the following sections (Proposed language is underlined, deleted language is shown with strikethrough): Article XIII Village Districts Article XIII Village Mixed Use District 105.12.770 Purpose And District Description Purpose. The village districts encompass the Lake Elmo Village Planning Area. The village districts provide for an area of compact development including a mix of uses made mutually compatible through a combination of careful planning and urban design and coordinated public and private investment. The mixture of uses and level of density and intensity is intended to support the level of public infrastructure planned for the area. (a) V-LDR Village Low Density Residential. The purpose of the V-LDR zoning district is to provide opportunity for lower density residential development within the Village Planning Area and to create a transition and connectivity between the heart of the Old Village and surrounding rural areas. Appropriate housing types in this area may include single-family detached housing. Residential development within areas zoned V-LDR will occur at a density of 1.5 to 3.0 units per acre. The purpose of the V-LDR zoning district is to provide opportunity for lower density residential development within the Old Village and create a transition and connectivity between the heart of the Old Village and surrounding rural areas. Residential development within areas zoned V-LDR will occur at a density of 1.5 to 3.0 units per acre. (b) V-MDR Village Medium Density Residential. The purpose of the V-MDR is to provide an area for greater variety in housing stock and bring more people closer to living within easy access of Old Village destinations and amenities. Appropriate housing types in this area may include single-family detached, duplexes, and townhomes/villa housing types. Residential development within areas zoned V-MDR will occur at a density of 3.01 to 8 units per acre. (c) V-HDR Village High Density Residential. The purpose of the V-HDR is to provide an area for a variety of higher density housing types in the Village Planning Area and to bring a higher concentration of people closer to Old Village destinations and amenities. This area is intended to provide for opportunities for more housing at a wider range of price points and to provide lifecycle housing in Lake Elmo. Appropriate housing types in this area may include multi-family dwellings. First floor non-residential uses may be appropriate. Residential development within areas zoned V-HDR will occur at a density of 8.01 to 12 units per acre. (d) VMX Village Mixed-Use District. This district is intended to continue the traditional mixed-use development that has occurred in the Old Village by allowing retail, service, office, civic and public uses as well as 2 residential units. The mixture of land uses within the district is essential to establishing the level of vitality and intensity needed to support retail and service uses. Development within areas zoned VMX will occur at a density of 5 - 10 units per acre. Senior congregate care facilities may exceed this density maximum with a range not to exceed a total of 16 units per acre, provided the facility can satisfy all zoning and applicable conditional use permit review criteria. The placement of building edges and treatment of building, parking, landscaping, and pedestrian spaces is essential to creating the pedestrian friendly environment envisioned for the VMX district. The purpose of the VMX district is to provide an area for compact, mixed-use development made mutually compatible through a combination of careful planning and urban design and coordinated public and private investment. This district is intended to continue the traditional mixed-use development that has occurred in the village area by allowing retail, service, office, civic and public uses as well as residential units. The mixture of land uses within the district is essential to establishing the level of vitality and intensity needed to support retail and service uses. Development within areas zoned VMX will occur at a density of six to ten units per acre. Senior congregate care facilities may exceed this density maximum with a range not to exceed a total of 16 units per acre, provided the facility can satisfy all zoning and applicable conditional use permit review criteria. The placement of building edges and treatment of building, parking, landscaping, and pedestrian spaces is essential to creating the pedestrian friendly environment envisioned for the VMX district. The standards in this chapter are intended to implement and effectuate the principles and relationships established in the village master plan, which will be carried out through specific standards related to site planning, signage, architecture, building materials, and landscaping. Renovation and infill of traditional storefront-type buildings is encouraged, and parking standards may be waived to recognize the availability of on-street and shared parking facilities. 105.12.780 Permitted And Conditional Uses Table 11-1 lists all permitted and conditional uses allowed in the village districts urban residential districts. "P" indicates a permitted use, "C" a conditional use. Uses not so indicated shall be considered prohibited. Cross- references listed in the table under "Standards" indicate the location within this section of specific development standards that apply to the listed use. (a) Combinations of uses, village districts. The following use types may be combined on a single parcel: (1) Principal and accessory uses may be combined on a single parcel. (2) Permitted or conditional uses allowed within the district may be combined on a single parcel, provided that a unified and integrated site plan is approved. If one or both of the uses is/are conditional, the entire development must be approved as a conditional use. A principal and secondary dwelling unit may be combined according to the standards of LEC 105.12.740 (c). (b) STOPPED Combination of uses, VMX district. (1) A mixed-use building that combines permitted or conditionally permitted uses may be developed meeting the form standards of this subchapter. (1) Single-family attached or multifamily complexes designed for rental or condominium occupancy, since these typically include multiple units and buildings on a single parcel. (2) Other permitted or conditional uses allowed within the district may be combined on a single parcel, provided that a unified and integrated site plan is approved. If one or both of the uses is/are conditional, the entire development must be approved as a conditional use. (3) A mixed-use building that combines permitted or conditionally permitted residential, service, retail and civic uses may be developed meeting the form standards of this subchapter. Office or studio uses on upper stories are encouraged. (c) Non-Residential Uses: (1) On property zoned V-HDR, permitted on the street level (first floor) only. Such use shall have its primary entrance from the front or side of the building. 3 Table 11-1: Permitted and Conditional Uses, Village Districts V- LD R V-MDR V-HDR V M X Standard Residential Uses: Household Living: Single-family detached dwelling P P - C LEC 105.12.830(a) Two-family dwelling - P* - C* Single-family attached dwelling - C C C LEC 105.12.830(a) Multifamily dwelling - C C C LEC 105.12.830(a) Secondary dwelling C C - C LEC 105.12.830(a) Live-work unit - C - C LEC 105.12.830(b) Group Living: Group home P C - P LEC 105.12.500 Group residential facility - C - C LEC 105.12.500 Congregate housing - C - C LEC 105.12.500 Semi-transient accommodations - - - C LEC 105.12.500 Public and Civic Uses: Community services - - - P LEC 105.12.110 Day care center - C - P LEC 105.12.110 Public assembly - - - C LEC 105.12.110 Religious institutions - - - C LEC 105.12.110 Schools, public and private - - - C LEC 105.12.110 Services: Business services - - C P LEC 105.12.110 Business center - - - P LEC 105.12.110 Offices - - C P LEC 105.12.110 Communications services - - - P LEC 105.12.110 Education services - - C P LEC 105.12.110 Financial institution - - C P LEC 105.12.110, V-HDR First floor only and drive-thru prohibited. VMX Drive-thru by Conditional Use Permit. 4 Funeral home - - - C LEC 105.12.110 Lodging - - C C 154.302(d) Medical facility - - C C LEC 105.12.510 Membership organization - - - C Nursing and personal care - - - C LEC 105.12.510 Personal services - - C P Repair and maintenance shop - - - C LEC 105.12.830 Trade shop - - - C Veterinary services - - - C Food Services: Standard restaurant - - C P Restaurant with drive-through - - C C P In VMX drive through shall be located in rear yard. Drinking and entertainment - - - P LEC 105.12.520 Sales of Merchandise: Retail trade 1 - - - P Farmer's market - - - C Garden center - - - C LEC 105.12.960(g) Neighborhood convenience store - C P P Shopping center - - - C Wayside stand P - - P LEC 105.12.750(d) Automotive/Vehicular Uses: Automobile maintenance service - - - C LEC 105.12.830 Automobile parts/supply - - - C LEC 105.12.830 Gasoline station - - - C LEC 105.12.530(b) Parking facility - C C C LEC 105.12.830(b) Sales and storage lots - - - C LEC 105.12.530(c) Outdoor Recreation: Outdoor recreation facility - C - C LEC 105.12.550(c) Parks and open areas P P P P On public property or as an accessory use to serve residents of a primary use. 5 1Retail Trade in the VMX District includes all uses and activities defined as Retail Trade in LEC 105.12.110(b) (5) with the exception of building supplies sales and warehouse club sales. 105.12.790 Lot Dimensions And Building Bulk Requirements Lot area and setback requirements shall be as specified in Table 11-2, Lot Dimension and Setback Requirements. Table 11-2: Lot Dimension and Setback Requirements, Villages Districts V- LDR V-MDR V-HDR VMX Minimum Lot Area (square feet): a Nonresidential use - - - None Single-family detached dwelling 9,000 7,000 - 9,000 Two-family dwelling (per unit) b - 4,000 - 4,000 3,000 Single-family attached (per unit) c - 2,500 - 3,000 See notes a and h Multifamily dwelling (per unit) - 3,000 1,800 2,800 See notes a and h Secondary dwelling See LEC 105.12.740 (c) - - See LEC 105.12.740 (c) Indoor Recreation/Entertainment: Indoor athletic facility - C C C LEC 105.12.560 Indoor recreation - - - C LEC 105.12.560 Transportation and Communications: Broadcasting or communications facility - - - C Accessory Uses: Home occupation P P P P LEC 105.12.110 Bed and breakfast P - - P LEC 105.04.220(a) Family day care P P - P LEC 105.12.110 Group family day care - - - C Temporary sales P P - P LEC 105.12.870(g) Parking facility - - - P LEC 105.12.830 Solar equipment P P P P Roof mounted only 6 Congregate housing - - - LEC 105.12.500(c) Minimum Lot Width (feet): Single-family detached dwelling 70 50 - 70 50 Two-family dwelling (per unit) b - 30 - 30 Single-family attached per unit (per unit) c - 25 - 25 Multifamily dwelling (per building) - 75 60 75 Live-work unit - 25 - 25 Maximum height (feet/stories) 35 35/3 d 50 35/3 d Maximum Impervious Coverage: Residential lots 35 percent 50 percent 75 percent 75 percent Other - - - No Limit Minimum Building Setbacks (feet): Front yard 25 25 25 Single-Family Detached and attached - 25 Multifamily Dwellings: LEC 105.12.830(a)(6)a Non-Residential Uses: LEC 105.12.830(b) Single-Family Detached, Two-Family, and Single-Family Attached: See LDR standards of LEC 105.12.730 All Other Residential Uses: LEC 105.12.830(a)(7) Interior Side Yard: Principal building 10 10 10 10 e Attached garage or accessory structure 5 5 5 5 Corner side yard 15 15 15 0 f Rear yard 20 20 20 10 g Notes to Village Districts Table: 7 a. No development may exceed the residential density range as specified in the comprehensive plan for the corresponding land use category. b. Two-family units may be side-by-side with a party wall between them (twin) or located on separate floors in a building on a single lot (duplex). The per-unit measurements in this table apply to twin units, whether on a single lot or separate lots. The standards for single-family detached dwelling shall apply to a duplex containing two vertically-separated units on a single lot. c. In the case of single-family attached dwellings that are not situated on individual lots, minimum lot size shall be applied to each unit as a measure of density; i.e., one unit per 2,500 square feet. This standard is also used for multifamily dwellings. d. Buildings up to 45 feet in height may be permitted as part of a PUD in the VMX and V-MDR districts. e. Side yard setbacks in the VMX district apply only along lot lines abutting residentially zoned parcels or those parcels with residential uses as the sole use. f. Corner properties. The side yard facade of a corner building adjoining a public street shall maintain the front setback of the adjacent property fronting upon the same public street, or the required front yard setback, whichever is less. If no structure exists on the adjacent property, and provided required setbacks are not otherwise stated herein, the setback shall be shown in the table. g. Properties zoned V-LDR abutting Stillwater Boulevard North (CSAH 14), Lake Elmo Avenue North (CSAH 17) north of Stillwater Blvd (CSAH 14), and Manning Avenue North (CSAH 15) shall have a minimum structure setback of 50 feet. 105.12.800 Dimensional Requirements and Preservation Of Open Space (a) Averaging of lot area. When lots are clustered within a development to provide common open space, the open space may be used to calculate an average density per lot to determine compliance with the individual lot area requirements. (b) Lot dimension reductions. Other reductions in dimensional standards may be considered as part of a planned unit development if these reductions provide for common open space within a development. (c) Village open space overlay district. Development of areas within the village open space overlay district, as designated by the comprehensive plan, is not allowed. Residential lots shall not encroach on the areas designated as open space per this overlay district, unless berming or screening protected by a landscape easement is provided as an alternative approved by council. 105.12.810 General Site & Building Design Considerations; Village Districts Development of land within the village districts shall follow established standards for traffic circulation, landscape design, and other considerations as specified in the Lake Elmo City Code LEC 105.12, arts V, VI and VII. (a) The Lake Elmo Design Guidelines and Standards shall govern site design and building design. (b) Circulation. (1) New access points to County State Aid Highway 14 may be refused or restricted to right- in, right-out movement if alternatives exist. Internal connections shall be provided between parking areas on adjacent properties wherever feasible. (2) The number and width of curb cuts shall be minimized. To promote pedestrian circulation, existing continuous curb cuts shall be reduced to widths necessary for vehicular traffic, and unnecessary or abandoned curb cuts shall be removed as parcels are developed. (c) Screening of existing residential structures. When a new more intensive residential or non-residential development is proposed adjacent to an existing single-family residential structure, screening shall be provided in accordance with LEC 105.12.480(f). The city may require buffering or screening above and beyond this section in cases where the required screening will not provide an adequate separation between 8 the uses. (d) Sidewalks and/or trails. Where cul-de-sacs are permitted by the city, sidewalks or trails are required to connect the bulb of the cul-de-sac with the nearest through-road or trail. (e) Lake Elmo Theming Study. Elements of the Lake Elmo Theming Study not herein described must be incorporated in to development within village districts where applicable. b)Fencing and screening. Fencing and screening walls visible from the public right-of-way shall be constructed of materials compatible with the principle structure. cLighting design. Lighting shall be integrated into the exterior design of new or renovated structures to create a greater sense of activity, security, and interest to pedestrians, and shall comply with LEC 105.04.050 et seq. dExterior storage. Exterior materials storage must be screened from view from adjacent public streets and adjacent residential properties, by a wing of the principal structure or a screen wall constructed of the same materials as the principal structure. Height of the structure or screen wall must be sufficient to completely conceal the stored materials from view at eye level (measured at six feet above ground level) on the adjacent street or property. 105.12.820 Development Standards For Specific Uses Development of land within the village districts shall follow established standards for traffic circulation, landscape design, and other considerations as specified by the Lake Elmo City Code in LEC 105.12, arts. V, VI and VII. The following standards apply to specific uses. ; other standards related to design and building type may be found at LEC 105.12.830. (a) Residential units, village districts. (1) Single-family detached dwellings, village districts. a. No parking shall be located in the front yard or between the front façade and the street except on a permitted driveway. b. Primary entrances are required to be along the front facade. c. Dwelling units shall be at least 24 feet in width, at least 960 square feet in area, and be placed on a permanent foundation. 1 All residential units, village districts. Residential housing units shall be designed to reflect the general scale and character of the village, including front yard depth, height and roof pitch, primary materials, facade detailing and size and placement of window and door openings. (2) Secondary dwellings, village district. Restricted to lots occupied by single-family detached dwellings, and must meet the standards for secondary dwellings in residential districts, LEC 105.12.740(c) and, in the VMX, must be located within the primary structure. (3) Single-family attached and two-family dwellings, VMX district. a. The primary entrance to each unit shall be located on the facade fronting a public street. b. Common open space for use by all residents or private open space adjacent to each unit shall be provided. Such open space shall compromise of a minimum of 300 square feet in the V-HDR and VMX, and 500 square feet per unit in the V-MDR. c. Unless otherwise specified in this article, single-family attached dwellings in the VMX and V-MDR shall adhere to the MDR district setbacks as specified in LEC 105.12.730. (4) Multifamily dwelling units, VMX district. a. Dwelling units (both condominium and rental) within a mixed-use building are restricted to 9 the upper floors or rear or side ground floors. b. Setback standards for multifamily dwellings not within a mixed-use development shall be determined through the conditional use process. c. Common open space for use by all residents or private open space adjacent to each unit shall be provided. Such open space shall comprise of a minimum of 300 square feet per unit in the V-MDR and 200 square feet per unit in the V-HDR. (b) Nonresidential uses, VMX district. (1) Setbacks, generally. The front yard setback of a new nonresidential building within the VMX district shall maintain the prevailing front yard setback of that block, or a maximum setback of 20 feet, whichever is less. (2) Repair and maintenance shop. No outdoor storage is permitted unless fully screened from public view. (3) Trade shop. Exterior materials storage must be totally screened from view from adjacent public streets and adjacent residential properties by a wall of the principal structure or a screen wall constructed of the same materials as the principal structure. (4) Veterinary services. a. All activities must be conducted within an enclosed building. b. Specific veterinary practices shall be limited to veterinary medicine, surgery, dentistry, and related service for small domestic household pets. (5) Garden center. a. The storage or display of any materials or products shall meet all setback requirements of a structure, and shall be maintained in an orderly manner. Screening along the boundaries of adjacent residential properties may be required, meeting the standards of LEC 105.12.470(f). b. All loading and parking shall be provided off-street. b. The storage of any soil, fertilizer or other loose, unpackaged materials shall be contained so as to prevent any effects on adjacent uses (6) Automobile maintenance service and automobile parts/supply. a. All vehicle repairs shall be conducted in a completely enclosed building. b. The storage or display of inoperable or unlicensed vehicles or other equipment shall meet all setback requirements of a structure, and shall be totally screened from view from adjacent public streets and adjacent residential properties. (7) Live-work unit. The purpose of a live-work unit is to provide a transitional use type between a home occupation and a larger commercial enterprise, and to provide neighborhood-oriented commercial services, while maintaining a generally residential character in which the work space is subordinate to the residential use and the effects of the work space are compatible with a residential use. a. The work space component shall be located on the first floor or basement of the building. b. The dwelling unit component shall maintain a separate entrance. c. The work space component of the unit shall not exceed 30 50 percent of the total gross floor area of the unit. 10 d. A total of two off-street parking spaces shall be provided for a live-work unit, located to the rear of the unit, or underground/enclosed. e. The size and nature of the work space shall be limited so that the building type may be governed by residential building codes. An increase in size or intensity beyond the specified limit on floor area would require the building to be classified as a mixed-use building. f. The business component of the building may include offices, small service establishments, crafts considered accessory to a dwelling unit, limited retailing (by appointment only), or personal services. It may not include a large scale wholesale business, a commercial food service requiring a license, a limousine business or auto service or repair for any vehicles other than those registered to residents of the property. fThe business component of the building may include offices, small service establishments, home crafts which are typically considered accessory to a dwelling unit, or limited retailing (by appointment only) associated with fine arts, crafts, or personal services. It may not include a wholesale business, a commercial food service requiring a license, a limousine business or auto service or repair for any vehicles other than those registered to residents of the property. g. The business of the live-work unit must be conducted by a person who resides on the same lot. The business shall not employ more than two workers on-site at any one time who live outside of the live-work unit. (8) Parking facility. Structured parking is permitted as a ground floor use within a mixed-use building, provided that the entrance is located on side or rear facades, not facing the primary abutting street. The primary street-facing facade shall be designed for retail, office or residential use. (9) Outdoor dining accessory to food services. Outdoor dining is allowed as an accessory use provided that tables do not block the required sidewalk. 9. Outdoor dining accessory to food services. Outdoor dining is allowed as an accessory use in the commercial districts, provided that tables do not block the sidewalk. A minimum of five feet of sidewalk must remain open. 105.12.830 Accessory Uses And Structures 105.12.840 Accessory Uses and Structures Accessory uses are listed in Table 11-1 as permitted or conditional accessory uses. Accessory uses and structures in the village districts shall comply with the following standards and all other applicable regulations of this article: (a) Phasing. No accessory use or structure shall be constructed or established on any lot prior to the time of construction of the principal use to which it is accessory. (b) Incidental to principal use. The accessory use or structure shall be incidental to and customarily associated with the principal use or structure served. (c) Subordinate to principal use. The accessory use or structure shall be subordinate in the area, extent, and purpose to the principal use or structure served. (d) Function. The accessory use or structure shall contribute to the comfort, convenience, or necessity of the occupants of the principal use or structure served. (e) Location. The accessory use or structure shall be located on the same zoning lot as the principal use or structure. (f) Residential accessory structures. (1) Design compatibility. On parcels used for residential structures within the village districts, the design 11 and construction of any garage, carport, or storage building shall be similar to or compatible with the design and construction of the main building. The exterior building materials, roof style, and colors shall be similar to or compatible with the main building or shall be commonly associated with residential construction. (2) Attached structures. An accessory structure shall be considered attached, and an integral part of, the principal structure when it is connected by an enclosed passageway. All attached accessory structures shall be subject to the following requirements: a. The structure shall meet the required yard setbacks for a principal structure, as established for the zoning district in which it is located. b. The structure shall not exceed the height of the principal building to which it is attached. (3) Attached garages. a. Attached garages are encouraged to be side or rear loaded. If facing the primary street, garages shall be designed using one of the following techniques, unless specific physical conditions on the lot in question require a different approach: 1. The front facade of the garage shall be offset from the principal structure by a minimum of two feet from the plane of the public right-of-way. 2. The width of the attached garage shall not exceed 40 percent of the width of the entire principal building facade (including garage) fronting the primary street except that within the V-LDR district where it shall not exceed 60 percent of the width of entire principal building facade (including garage) fronting the primary street. 2The width of the attached garage shall not exceed 40 percent of the width of the entire principal building facade (including garage) fronting the primary street within the VMX district and 60 percent of the width of entire principal building facade (including garage) fronting the primary street within the V-LDR district. b. Attached garages shall not exceed 1,000 square feet in area at the ground floor level except by conditional use permit. c. Garage doors or openings shall not exceed 14 feet in height. (4) Detached structures. Detached accessory structures for permitted residential structures in the village districts must be in accordance with the following requirements: a. Detached accessory structures shall be located to the side or rear of the principal building, and are not permitted within the required front yard or within a side yard abutting a street. b. Detached garages shall not exceed 1,000 square feet at ground floor level and shall not exceed a height of 22 feet or the height of the principal structure, whichever is higher. The maximum size and height may be increased upon approval of a conditional use permit, provided that lot coverage requirements are satisfied. c. Pole barns shall be prohibited. d. No more than 30 percent of the rear yard area may be covered by accessory structures. e. Garage doors or openings shall not exceed 14 feet in height. (g) Exterior storage on residential parcels. All materials and equipment shall be stored within a building or be fully screened so as not to be visible from adjoining properties, except for the following: (1) Laundry drying. (2) Construction and landscaping materials and equipment currently being used on the premises. Materials kept on the premises for a period exceeding six months shall be screened or stored out of view of the primary street on which the house fronts. (3) Agricultural equipment and materials, if these are used or intended for use on the premises. 12 (4) Off-street parking and storage of vehicles and accessory equipment, as regulated in LEC 105.12.410. (5) Storage of firewood shall be kept at least ten feet from any habitable structure and screened from view of adjacent properties. (6) Outdoor parking. (h) Temporary sales. Temporary sales, also known as yard or garage sales, are permitted in all residential districts, limited to two per calendar year per residence, not to exceed four days in length for each event. (i) Accessory uses and structures not listed. Standards for accessory uses and structures that are permitted in all districts, or in all residential buildings in any district, are listed in LEC 105.12, art. VII, specific development standards. These include uses such as family and group family day care, bed and breakfast facilities, and home occupations, and structures such as swimming pools and solar equipment. 105.12.840 Village Districts Design Review 105.12.830 VMX District Design and Demolition Review (a) Review of design. For certain development activity, as specified in the Lake Elmo Design Standards Manual, design review is required as part of the approval process for a building permit, conditional use permit, or certificate of zoning compliance under this section. All projects subject to design review shall be reviewed for conformance with the Lake Elmo Design Standards Manual. A separate process for design review is not established. (1) Review authority and process. Design review shall be facilitated by the planning department and the review shall be conducted by the body or individual authorized to approve the development activity. Design review shall be incorporated in the established review of the development activity. For those applications under this section that require review by the planning commission (i.e., conditional use permits), the planning commission shall consider the standards in the Lake Elmo Design Standards Manual in its recommendation to the city council. 1 Review authority and process. Design review shall be the responsibility of the individual or body authorizing the permit or certificate and shall be incorporated in the established review of the applicable building permit, conditional use permit, or certificate of zoning compliance. For those applications under this section that require review by the planning commission (i.e., conditional use permits), the planning commission shall consider the standards in the Lake Elmo Design Standards Manual as part of its recommendation to the city council. (2) Review by professional. The authorizing body may request review by a design professional of the proposed design or demolition. The cost of review by such design professional shall be the responsibility of the applicant, and shall not exceed $1,000.00 unless otherwise agreed to by the applicant. (3) Development activity defined. a. Development activity consists of new construction and redevelopment activities, including remodeling that expands the footprint of a structure, altering, or repairing a structure in a manner that will change the exterior appearance of said structure. Development activity also includes the construction of a new parking lot and installation of signage. b. Exempt activities. The following activities shall be exempt from review under review of this section: 1. Ordinary repairs and maintenance that will not change the exterior appearance of a structure; 2. Removal of existing signage without replacement unless said signs are an integral part of the building; 3. Emergency repairs ordered by the director of planning in order to protect public 13 health and safety; 4. Exterior alteration, addition, or repair of a structure used as a single-family residence, duplex, or two-family residence; 5. Temporary signage, installed in accordance with the sign regulations of the City CodeLEC 105.12.430, or during which time an application for permanent signage is pending under this section; 6. Maintenance of existing signage advertising an on-site business; 7. Alterations only to the interior of a structure. SECTION 2. Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo. SECTION 3. Adoption Date. This Ordinance 2022-10 was adopted on this ______day of _______, 2022, by a vote of __ Ayes and ___Nays. LAKE ELMO CITY COUNCIL ________________________________ Charles Cadenhead, Mayor ATTEST: ________________________________ CITY OF LAKE ELMO COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 2022-067 RESOLUTION AUTHORIZING PUBLICATION OF A SUMMARY OF ORDINANCE 2022-10 WHEREAS, the Lake Elmo City Council has adopted Ordinance No. 2022-10, an ordinance that amends the City’s Zoning Code Article XIII. WHEREAS, the ordinance is lengthy; and WHEREAS, Minnesota Statutes, section 412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the City Council believes that the following summary would clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo that the City Clerk shall cause the following summary of Ordinance No. 2022-10 to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Lake Elmo has adopted Ordinance No. 2022-10, an ordinance that amends the City Code language in the Zoning Ordinance. This ordinance alters language in the City Code to add a Village Medium Density Residential (V-MDR) district and a Village High Density Residential (V-HDR) district. The following is a summary of the adopted ordinance language: Ordinance 2022-05 includes the following elements to amend Article XIII: The full text of Ordinance 2022-05 is available for inspection at Lake Elmo City Offices during regular business hours. 1. V-MDR Village Low Density Residential. The purpose of the V-MDR zoning district is provide an area for greater variety in housing stock and bring more people closer to living within easy access to the Main Street of the Old Village. Appropriate housing types in this area may include single-family detached, duplexes, and townhomes/villa housing types. Residential development within areas zoned V-MDR will occur at a density of 3.01 to 8 units per acre. 2. V-HDR Village High Density Residential. The purpose of the V-HDR zoning district is to provide an area for a variety of higher density housing types in the Village Planning Area and to bring a higher concentration of people closer to Old Village Destinations and amenities. Appropriate housing types in this area include multifamily dwellings. This area is intended to provide for opportunities for more housing at a wider range of price points and to provide lifecycle housing in Lake Elmo. Residential development within areas zoned V-HDR will occur at a density of 8.01 to 12 units per acre. 3. Permitted and conditional uses are added for V-MDR and V-HDR 4. Lot dimensions and building bulk requirements are added for V-MDR and V-HDR. BE IT FURTHER RESOLVED by the City Council of the City of Lake Elmo that the City Administrator keep a copy of the ordinance at City Hall for public inspection and that a full copy of the ordinance be placed in a public location within the City. Dated: June 21, 2022 ___________________________________ Charles Cadenhead, Mayor ATTEST: ____________________________________ Julie Johnson, City Clerk (SEAL) June 13, 2022 Lake Elmo Planning Commission City Hall 3800 Laverne Avenue North Lake Elmo, MN 55042 Dear Planning Commissioners: We wanted to comment on some of the preliminarily considered zoning changes relating to the Old Village. We only learned about these potential changes after reviewing some older Planning Commission minutes. We cannot attend the meeting. You may wish to consider sending mailed notice to Old Village property owners to enhance public involvement on this subject. Certainly, an informal workshop or two would be helpful. Soliciting input or resources from places that have created mixed-use developments from start to finish would be a good start to collecting resources. 1. It would be necessary to have an explanation, in writing, as what is intended by creating an “overlay district,” especially insofar as it relates to creating “a high-density residential district” in the Lake Elmo Station District. Does this mean that the overlay is then an optional election available to property owners or does it mean something else-where is this function spelled out in the code? 2. It appears that the considered changes suggest eliminating sales and storage lots as an additional use in the VMX District. We would very strongly suggest leaving it as it has been for many years, permitted or, less preferably conditional use with screening, as has long been the case, allows for establishment of reasonable guidelines. 3. It appears (but is not clear) that the potential for a combination of principal and accessory uses on the same parcel is being eliminated as a permitted use and as a conditional use. Please clarify what this change does in practical terms. We would request that that not be done. Some parcels in the area are of sufficient size to essentially require combined uses on them. Additionally, a combination of uses in one location can offer a variety of businesses and services, one consolidated location and, thus, can enhance useability and walkability. 4. With respect to any area which is suggested to have residential uses on it, we suggest that the Planning Commission broaden its consideration of these matters to allow neighborhood service uses adjacent to the residential structures. Many cities recently have refined their codes to consider the value of creating large and uninterrupted blocks of residential parcels and including smaller commercial nodes that are aimed at providing a neighborhood service districts. (Stillwater, for example, has done some work in this area but it’s not the only one). 5. We believe the use chart appears somewhat dated and narrow. We ask that the planning commission continue consideration of how it might be updated—such as by collecting use options from cities who have been active in actually developing mixed-use projects and by using broader categories of uses to account for a changing economy. Again, we appreciate the planning commission’s involvement and we’d suggest a workshop meeting, accompanied by enhanced notice as well as a request that additional mixed-use land use models be collected and illustrated to the Planning Commission. Thank you. CHAMA MISSION, LLC Brian Zeller, CCIM 612-325-3038 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 1/12 ARTICLE XIII VILLAGE MIXED-USE DISTRICT 105.12.770 Purpose And District Description 105.12.780 Permitted And Conditional Uses 105.12.790 Lot Dimensions And Building Bulk Requirements 105.12.800 Dimensional Requirements And Preservation Of Open Space 105.12.810 General Site Design Considerations; Village Districts 105.12.820 Development Standards For Specific Uses 105.12.830 VMX District Design And Demolition Review 105.12.840 Accessory Uses And Structures 105.12.770 Purpose And District Description (a)V-LDR Village Low Density Residential. The purpose of the V-LDR zoning district is to provide opportunity for lower density residential development within the Old Village and create a transition and connectivity between the heart of the Old Village and surrounding rural areas. Residential development within areas zoned V-LDR will occur at a density of 1.5 to 3.00 units per acre. (b)VMX Village Mixed-Use District. The purpose of the VMX district is to provide an area for compact, mixed-use development made mutually compatible through a combination of careful planning and urban design and coordinated public and private investment. This district is intended to continue the traditional mixed-use development that has occurred in the village area by allowing retail, service, office, civic and public uses as well as residential units. The mixture of land uses within the district is essential to establishing the level of vitality and intensity needed to support retail and service uses. Development within areas zoned VMX will occur at a density of six to ten units per acre. Senior congregate care facilities may exceed this density maximum with a range not to exceed a total of 16 units per acre, provided the facility can satisfy all zoning and applicable conditional use permit review criteria. The placement of building edges and treatment of building, parking, landscaping, and pedestrian spaces is essential to creating the pedestrian friendly environment envisioned for the VMX district. The standards in this chapter are intended to implement and effectuate the principles and relationships established in the village master plan, which will be carried out through specific standards related to site planning, signage, architecture, building materials, and landscaping. Renovation and infill of traditional storefront- type buildings is encouraged, and parking standards may be waived to recognize the availability of on-street and shared parking facilities. HISTORY Amended by Ord. 08-245 on 2/16/2021 Adopted by Ord. 08-253 on 11/3/2021 105.12.780 Permitted And Conditional Uses Table 11-1 lists all permitted and conditional uses allowed in the urban residential districts. "P" indicates a permitted use, "C" a conditional use. Uses not so indicated shall be considered prohibited. Cross- references listed in the table under "Standards" indicate the location within this section of specific development standards that apply to the listed use. (a)Combinations of uses, village districts. The following use types may be combined on a single parcel: (1)Principal and accessory uses may be combined on a single parcel. (2)A principal and secondary dwelling unit may be combined according to the standards of LEC 105.12.740(c). 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 2/12 (b)Combination of uses, VMX district. (1)Single-family attached or multifamily complexes designed for rental or condominium occupancy, since these typically include multiple units and buildings on a single parcel. (2)Other permitted or conditional uses allowed within the district may be combined on a single parcel, provided that a unified and integrated site plan is approved. If one or both of the uses is/are conditional, the entire development must be approved as a conditional use. (3)A mixed-use building that combines permitted or conditionally permitted residential, service, retail and civic uses may be developed meeting the form standards of this subchapter. Office or studio uses on upper stories are encouraged. Table 11-1: Permitted and Conditional Uses, Village Districts V- LD R V M X Standard Residential Uses Household Living: Single-family detached dwelling P C* LEC 105.12.830(a)(1), (2), *(4) Two-family dwelling -C* LEC 105.12.830(a)(1), *(4) Single-family attached dwelling -C LEC 105.12.830(a)(1), (5) Multifamily dwelling -C LEC 105.12.830(a)(1), (6) Secondary dwelling C C LEC 105.12.750(c) and LEC 105.12.830(a)(1), (3) Live-work unit -C LEC 105.12.830(b)(6) Group Living: Group home P P LEC 105.12.500(a) Group residential facility -C LEC 105.12.500(b) Congregate housing -C LEC 105.12.500(c) Semi-transient accommodations -C LEC 105.12.500(c) Public and Civic Uses: Community services -P LEC 105.12.110(b) Day care center -P LEC 105.12.110(b) Public assembly -C LEC 105.12.110(b) Religious institutions -C LEC 105.12.110(b)(2) Schools, public and private -C LEC 105.12.510(a) Services: Business services -P LEC 105.12.110(b) 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 3/12 Business center -P LEC 105.12.110(b) Offices -P LEC 105.12.110(b) Communications services -P LEC 105.12.110(b) Education services -P LEC 105.12.510(a), LEC 105.12.110(b) Financial institution -P LEC 105.12.110(b) Funeral home -C LEC 105.12.110(b) Lodging -C 154.302(d) Medical facility -C LEC 105.12.510(b) Membership organization -C Nursing and personal care -C LEC 105.12.510(c) Personal services -P Repair and maintenance shop -C LEC 105.12.830(b)(1) Trade shop -C LEC 105.12.830(b)(2) Veterinary services -C LEC 105.12.830(b)(3) Food Services: Standard restaurant -P Restaurant with drive-through -C LEC 105.12.520(a) Drinking and entertainment -P LEC 105.12.520(b) Sales of Merchandise: Retail trade 1 -P Farmer's market -C Garden center -C LEC 105.12.960(g) Neighborhood convenience store -P Shopping center -C Wayside stand P P LEC 105.12.750(d) Automotive/Vehicular Uses: Automobile maintenance service -C LEC 105.12.830(b)(5) Automobile parts/supply -C LEC 105.12.830(b)(5) Gasoline station -C LEC 105.12.530(b) Parking facility -C LEC 105.12.830(b)(7) Sales and storage lots -C LEC 105.12.530(c) Outdoor Recreation: Outdoor recreation facility -C LEC 105.12.550(c) 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 4/12 Parks and open areas P P Indoor Recreation/Entertainment: Indoor athletic facility -C LEC 105.12.560 Indoor recreation -C LEC 105.12.560 Transportation and Communications: Broadcasting or communications facility -C Mixed-Uses: Combination of principal uses on a single parcel -C/ P LEC 105.12.530(b) Combination of principal and accessory uses on a single parcel P P LEC 105.12.530(a) Accessory Uses: Home occupation P P LEC 105.12.110(l)(5) Bed and breakfast P P LEC 105.04.220(a) Family day care P P LEC 105.12.110(l)(5) Group family day care -C Temporary sales P P LEC 105.12.870(g) Parking facility -P LEC 105.12.830(h)(7) Solar equipment P P LEC 105.04.220(c) Swimming pools, hot tubs, etc. P P LEC 105.08.160(c) Other structures typically incidental and clearly subordinate to permitted uses P P 1Retail Trade in the VMX District includes all uses and activities defined as Retail Trade in LEC 105.12.110(b) (5) with the exception of building supplies sales and warehouse club sales. HISTORY Amended by Ord. 08-243 on 1/5/2021 Adopted by Ord. 08-253 on 11/3/2021 105.12.790 Lot Dimensions And Building Bulk Requirements Lot area and setback requirements shall be as specified in Table 11-2, Lot Dimension and Setback Requirements. Table 11-2: Lot Dimension and Setback Requirements, Villages Districts V- LDR VMX Minimum Lot Area (square feet): a Nonresidential use -None Single-family detached dwelling 9,000 9,000 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 5/12 Two-family dwelling (per unit) b -3,000 Single-family attached (per unit) c -See notes a and h Multifamily dwelling (per unit) -See notes a and h Secondary dwelling -See LEC 105.12.740(c) Live-work unit -3,000 Congregate housing -LEC 105.12.500(c) Other structures -3,500 Maximum Lot Area (acres): Residential lots N/A N/A Other N/A N/A Minimum Lot Width (feet): Single-family detached dwelling 70 50 Two-family dwelling (per unit) b -30 Single-family attached (per unit) c -25 Multifamily dwelling (per building)-75 Live-work unit -25 Maximum height (feet/stories)35 35/3 d Maximum Impervious Coverage: Residential lots 35 perce nt 75 percent Other -No Limit Minimum Building Setbacks (feet): Front yard 25 Single-Family Detached, Two-Family, and Single-Family Attached: See LDR standards of LEC 105.12.730 Multifamily Dwellings: LEC 105.12.830(a)(6)a All Other Residential Uses: LEC 105.12.830(a)(7) Nonresidential Uses: LEC 105.12.830(b)(1) Interior Side Yard: Principal building 10 10 e Attached garage or accessory structure 5 5 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 6/12 Corner side yard 15 0 f Rear yard 20 10 g Notes to Village Districts Table: a. No development may exceed the residential density range as specified in the comprehensive plan for the corresponding land use category. b. Two-family units may be side-by-side with a party wall between them (twin) or located on separate floors in a building on a single lot (duplex). The per-unit measurements in this table apply to twin units, whether on a single lot or separate lots. The standards for single-family detached dwelling shall apply to a duplex containing two vertically-separated units on a single lot. c. In the case of single-family attached dwellings that are not situated on individual lots, minimum lot size shall be applied to each unit as a measure of density; i.e., one unit per 2,500 square feet. This standard is also used for multifamily dwellings. d. Buildings up to 45 feet in height may be permitted as part of a PUD in the VMX district. e. Side yard setbacks in the VMX district apply only along lot lines abutting residentially zoned parcels or those parcels with residential uses as the sole use. f. Corner properties. The side yard facade of a corner building adjoining a public street shall maintain the front setback of the adjacent property fronting upon the same public street, or the required front yard setback, whichever is less. If no structure exists on the adjacent property, and provided required setbacks are not otherwise stated herein, the setback shall be shown in the table. g. Properties zoned V-LDR abutting Stillwater Boulevard North (CSAH 14), Lake Elmo Avenue North (CSAH 17) north of Stillwater Blvd (CSAH 14), and Manning Avenue North (CSAH 15) shall have a minimum structure setback of 50 feet. HISTORY Amended by Ord. 08-244 on 1/5/2021 Adopted by Ord. 08-253 on 11/3/2021 105.12.800 Dimensional Requirements And Preservation Of Open Space (a)Averaging of lot area. When lots are clustered within a development to provide common open space, the open space may be used to calculate an average density per lot to determine compliance with the individual lot area requirements. (b)Lot dimension reductions. Other reductions in dimensional standards may be considered as part of a planned unit development if these reductions provide for common open space within a development. (c)Village open space overlay district. Development of areas within the village open space overlay district, as designated by the comprehensive plan, is not allowed. Residential lots shall not encroach on the areas designated as open space per this overlay district, unless berming or screening protected by a landscape easement is provided as an alternative approved by council. HISTORY Adopted by Ord. 08-253 on 11/3/2021 105.12.810 General Site Design Considerations; Village Districts Development of land within the village districts shall follow established standards for traffic circulation, landscape design, and other considerations as specified in LEC 105.12, arts V, VI and VII. (a)Circulation. 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 7/12 (1)New access points to County State Aid Highway 14 may be refused or restricted to right- in, right-out movement if alternatives exist. Internal connections shall be provided between parking areas on adjacent properties wherever feasible. (2)The number and width of curb cuts shall be minimized. To promote pedestrian circulation, existing continuous curb cuts shall be reduced to widths necessary for vehicular traffic, and unnecessary or abandoned curb cuts shall be removed as parcels are developed. (b)Fencing and screening. Fencing and screening walls visible from the public right-of-way shall be constructed of materials compatible with the principle structure. (c)Lighting design. Lighting shall be integrated into the exterior design of new or renovated structures to create a greater sense of activity, security, and interest to pedestrians, and shall comply with LEC 105.04.050 et seq. (d)Exterior storage. Exterior materials storage must be screened from view from adjacent public streets and adjacent residential properties, by a wing of the principal structure or a screen wall constructed of the same materials as the principal structure. Height of the structure or screen wall must be sufficient to completely conceal the stored materials from view at eye level (measured at six feet above ground level) on the adjacent street or property. (e)Screening of existing residential structures. When a new development is proposed adjacent to an existing single-family residential structure, screening shall be provided in accordance with LEC 105.12.480(f). The city may require buffering or screening above and beyond this section in cases where the required screening will not provide an adequate separation between incompatible uses. (f)Sidewalks and/or trails. Where cul-de-sacs are permitted by the city, sidewalks or trails are required to connect the bulb of the cul-de-sac with the nearest through-road or trail. (g)Lake Elmo Theming Study. Elements of the Lake Elmo Theming Study not herein described must be incorporated in to development within village districts where applicable. HISTORY Adopted by Ord. 08-253 on 11/3/2021 105.12.820 Development Standards For Specific Uses Development of land within the village districts shall follow established standards for traffic circulation, landscape design, parking, signs and other considerations as specified in LEC 105.12, arts. V, VI and VII. The following standards apply to specific uses; other standards related to design and building type may be found at LEC 105.12.830. (a)Residential units, village districts. (1)All residential units, village districts. Residential housing units shall be designed to reflect the general scale and character of the village, including front yard depth, height and roof pitch, primary materials, facade detailing and size and placement of window and door openings. (2)Single-family detached dwellings, village districts. a.No parking shall be located in the front yard or between the front facade and the street except on a permitted driveway. b.Primary entrances are required to be along the front facade. c.Dwelling units shall be at least 24 feet in width, at least 960 square feet in area, and be placed on a permanent foundation. 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 8/12 (3)Secondary dwellings, village district. Restricted to lots occupied by single-family dwellings, and must meet the standards for secondary dwellings in residential districts, LEC 105.12.740(c) and be located within the primary structure. (4)Single-family detached and two-family dwellings, VMX district. Unless otherwise specified in this article, single- and two-family dwellings in the VMX district shall adhere to the LDR district setbacks as specified in LEC 105.12.720. (5)Single-family attached, VMX district. a.The primary entrance to each unit shall be located on the facade fronting a public street; an additional entrance may be provided on the rear or side facade. b.Common open space for use by all residents or private open space adjacent to each unit shall be provided. Such open space shall compromise a minimum of 300 square feet per unit. c.No parking shall be located in the front yard or between the front facade and the street except on a permitted driveway. d.Unless otherwise specified in this article, single-family attached dwellings in the VMX district shall adhere to the MDR district setbacks as specified in LEC 105.12.730. (6)Multifamily dwelling units, VMX district. a.Dwelling units (both condominium and rental) within a mixed-use building are restricted to the upper floors or rear or side ground floors. b.Setback standards for multifamily dwellings not within a mixed-use development shall be determined through the conditional use process. (7)All other residential uses, VMX district. Setbacks for all other residential uses within the village districts not specifically outlined in this section shall be determined by either LEC 105.12.830 or through the conditional use process. (b)Nonresidential uses, VMX district. (1)Setbacks, generally. The front yard setback of a new nonresidential building within the VMX district shall maintain the prevailing front yard setback of that block, or a maximum setback of 20 feet, whichever is less. (2)Repair and maintenance shop. No outdoor storage is permitted unless fully screened from public view. (3)Trade shop. Exterior materials storage must be totally screened from view from adjacent public streets and adjacent residential properties by a wall of the principal structure or a screen wall constructed of the same materials as the principal structure. (4)Veterinary services. a.All activities must be conducted within an enclosed building. b.Specific veterinary practices shall be limited to veterinary medicine, surgery, dentistry, and related service for small domestic household pets. (5)Garden center. a.The storage or display of any materials or products shall meet all setback requirements of a structure, and shall be maintained in an orderly manner. 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 9/12 Screening along the boundaries of adjacent residential properties may be required, meeting the standards of LEC 105.12.470(f). b.All loading and parking shall be provided off-street. c.The storage of any soil, fertilizer or other loose, unpackaged materials shall be contained so as to prevent any effects on adjacent uses. (6)Automobile maintenance service and automobile parts/supply. a.All vehicle repairs shall be conducted in a completely enclosed building. b.The storage or display of inoperable or unlicensed vehicles or other equipment shall meet all setback requirements of a structure, and shall be totally screened from view from adjacent public streets and adjacent residential properties. (7)Live-work unit. The purpose of a live-work unit is to provide a transitional use type between a home occupation and a larger commercial enterprise, and to provide neighborhood-oriented commercial services, while maintaining a generally residential character in which the work space is subordinate to the residential use. a.The work space component shall be located on the first floor or basement of the building. b.The dwelling unit component shall maintain a separate entrance located on the front or side facade and accessible from the primary abutting public street. c.The work space component of the unit shall not exceed 30 percent of the total gross floor area of the unit. d.A total of two off-street parking spaces shall be provided for a live-work unit, located to the rear of the unit, or underground/enclosed. e.The size and nature of the work space shall be limited so that the building type may be governed by residential building codes. An increase in size or intensity beyond the specified limit on floor area would require the building to be classified as a mixed-use building. f.The business component of the building may include offices, small service establishments, home crafts which are typically considered accessory to a dwelling unit, or limited retailing (by appointment only) associated with fine arts, crafts, or personal services. It may not include a wholesale business, a commercial food service requiring a license, a limousine business or auto service or repair for any vehicles other than those registered to residents of the property. g.The business of the live-work unit must be conducted by a person who resides on the same lot. The business shall not employ more than two workers on-site at any one time who live outside of the live-work unit. (8)Parking facility. Structured parking is permitted as a ground floor use within a mixed-use building, provided that the entrance is located on side or rear facades, not facing the primary abutting street. The primary street-facing facade shall be designed for retail, office or residential use. (9)Outdoor dining accessory to food services. Outdoor dining is allowed as an accessory use in the commercial districts, provided that tables do not block the sidewalk. A minimum of five feet of sidewalk must remain open. 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 10/12 HISTORY Adopted by Ord. 08-253 on 11/3/2021 105.12.830 VMX District Design And Demolition Review (a)Review of design. For certain development activity, as specified in the Lake Elmo Design Standards Manual, design review is required as part of the approval process for a building permit, conditional use permit, or certificate of zoning compliance under this section. All projects subject to design review shall be reviewed for conformance with the Lake Elmo Design Standards Manual. A separate process for design review is not established. (1)Review authority and process. Design review shall be the responsibility of the individual or body authorizing the permit or certificate and shall be incorporated in the established review of the applicable building permit, conditional use permit, or certificate of zoning compliance. For those applications under this section that require review by the planning commission (i.e., conditional use permits), the planning commission shall consider the standards in the Lake Elmo Design Standards Manual as part of its recommendation to the city council. (2)Review by professional. The authorizing body may request review by a design professional of the proposed design or demolition. The cost of review by such design professional shall be charged by the applicant, and shall not exceed $1,000.00 unless otherwise agreed to by the applicant. (3)Development activity defined. a.Development activity consists of new construction and redevelopment activities, including remodeling that expands the footprint of a structure, altering, or repairing a structure in a manner that will change the exterior appearance of said structure. Development activity also includes the construction of a new parking lots and installation of signage. b.Exempt activities. The following activities shall be exempt from under review of this section: 1.Ordinary repairs and maintenance that will not change the exterior appearance of a structure; 2.Removal of existing signage without replacement unless said signs are an integral part of the building; 3.Emergency repairs ordered by the director of planning in order to protect public health and safety; 4.Exterior alteration, addition, or repair of a structure used as a single-family residence, duplex, or two-family residence; 5.Temporary signage, installed in accordance with LEC 105.12.430, or during which time an application for permanent signage is pending under this section; 6.Maintenance of existing signage advertising an on-site business; 7.Alterations only to the interior of a structure. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 11/12 105.12.840 Accessory Uses And Structures Accessory uses are listed in Table 11-1 as permitted or conditional accessory uses. Accessory uses and structures in the village districts shall comply with the following standards and all other applicable regulations of this article: (a)Phasing. No accessory use or structure shall be constructed or established on any lot prior to the time of construction of the principal use to which it is accessory. (b)Incidental to principal use. The accessory use or structure shall be incidental to and customarily associated with the principal use or structure served. (c)Subordinate to principal use. The accessory use or structure shall be subordinate in the area, extent, and purpose to the principal use or structure served. (d)Function. The accessory use or structure shall contribute to the comfort, convenience, or necessity of the occupants of the principal use or structure served. (e)Location. The accessory use or structure shall be located on the same zoning lot as the principal use or structure. (f)Residential accessory structures. (1)Design compatibility. On parcels used for residential structures within the village districts, the design and construction of any garage, carport, or storage building shall be similar to or compatible with the design and construction of the main building. The exterior building materials, roof style, and colors shall be similar to or compatible with the main building or shall be commonly associated with residential construction. (2)Attached structures. An accessory structure shall be considered attached, and an integral part of, the principal structure when it is connected by an enclosed passageway. All attached accessory structures shall be subject to the following requirements: a.The structure shall meet the required yard setbacks for a principal structure, as established for the zoning district in which it is located. b.The structure shall not exceed the height of the principal building to which it is attached. (3)Attached garages. a.Attached garages are encouraged to be side or rear loaded. If facing the primary street, garages shall be designed using one of the following techniques, unless specific physical conditions on the lot in question require a different approach: 1.The front facade of the garage shall be offset from the principal structure by a minimum of two feet from the plane of the public right-of-way. 2.The width of the attached garage shall not exceed 40 percent of the width of the entire principal building facade (including garage) fronting the primary street within the VMX district and 60 percent of the width of entire principal building facade (including garage) fronting the primary street within the V-LDR district. b.Attached garages shall not exceed 1,000 square feet in area at the ground floor level except by conditional use permit. c.Garage doors or openings shall not exceed 14 feet in height. 5/5/22, 2:31 PM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=ARTICLE_XIII_VILLAGE_MIXED-USE_DISTRICT 12/12 (4)Detached structures. Detached accessory structures for permitted residential structures in the village districts must be in accordance with the following requirements: a.Detached accessory structures shall be located to the side or rear of the principal building, and are not permitted within the required front yard or within a side yard abutting a street. b.Detached garages shall not exceed 1,000 square feet at ground floor level and shall not exceed a height of 22 feet or the height of the principal structure, whichever is higher. The maximum size and height may be increased upon approval of a conditional use permit, provided that lot coverage requirements are satisfied. c.Pole barns, as defined herein, shall be prohibited. d.No more than 30 percent of the rear yard area may be covered by accessory structures. e.Garage doors or openings shall not exceed 14 feet in height. (g)Exterior storage on residential parcels. All materials and equipment shall be stored within a building or be fully screened so as not to be visible from adjoining properties, except for the following: (1)Laundry drying. (2)Construction and landscaping materials and equipment currently being used on the premises. Materials kept on the premises for a period exceeding six months shall be screened or stored out of view of the primary street on which the house fronts. (3)Agricultural equipment and materials, if these are used or intended for use on the premises. (4)Off-street parking and storage of vehicles and accessory equipment, as regulated in LEC 105.12.410. (5)Storage of firewood shall be kept at least ten feet from any habitable structure and screened from view of adjacent properties. (6)Outdoor parking. (h)Temporary sales. Temporary sales, also known as yard or garage sales, are permitted in all residential districts, limited to two per calendar year per residence, not to exceed four days in length for each event. (i)Accessory uses and structures not listed. Standards for accessory uses and structures that are permitted in all districts, or in all residential buildings in any district, are listed in LEC 105.12, art. VII, specific development standards. These include uses such as family and group family day care, bed and breakfast facilities, and home occupations, and structures such as swimming pools and solar equipment. HISTORY Adopted by Ord. 08-253 on 11/3/2021