HomeMy WebLinkAbout2020 Annual Comprehensive Financial Report
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LAKE ELMO, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2020
Prepared By: Finance Department
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CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting7
Principal City Officials 9
Organization Chart 10
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 31
Statement of Activities Statement 2 32
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 34
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position Statement 4 35
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 5 36
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balance of Governmental Funds to the Statement of Activities Statement 6 37
Statement of Net Position - Proprietary Funds Statement 7 38
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 8 39
Statement of Cash Flows - Proprietary Funds Statement 9 40
Notes to Financial Statements 41
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 80
Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 11 84
Schedule of Proportionate Share of Net Pension Liability -
General Employees Retirement Fund Statement 12 85
Schedule of Pension Contributions -
General Employees Retirement Fund Statement 13 86
Schedule of Proportionate Share of Net Pension Liability -
Public Employees Police and Fire Fund Statement 14 87
Schedule of Pension Contributions -
Public Employees Police and Fire Fund Statement 15 88
Schedule of Changes in the Net Pension Liability and Related Ratios -
Lake Elmo Firefighters Relief Association Statement 16 89
Schedule of Contributions -
Lake Elmo Firefighters Relief Association Statement 17 90
Notes to RSI 91
Combining and Individual Nonmajor Fund Financial Statements:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 19 97
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 98
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 21 99
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 22 100
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 23 104
Balance Sheet - Debt Service Fund by Bond Issue Statement 24 108
Statement of Revenues, Expenditures and Changes in
Fund Balance - Debt Service Fund by Bond Issue Statement 25 110
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Financial Trends:
Net Position by Component Table 1 116
Changes in Net Position Table 2 118
Fund Balances, Governmental Funds Table 3 122
Changes in Fund Balances, Governmental Funds Table 4 124
Revenue Capacity:
Tax Capacity and Estimated Actual Value of Taxable Property Table 5 127
Direct and Overlapping Property Tax Rates Table 6 128
Principal Property Taxpayers Table 7 129
Property Tax Levies and Collections Table 8 130
Water and Sanitary Sewer Charges by Customer Table 9 133
Debt Capacity:
Ratios of Outstanding Debt by Type Table 10 134
Ratios of Net General Bonded Debt Table 11 136
Direct and Overlapping Governmental Activities Debt Table 12 138
Legal Debt Margin Information Table 13 139
Pledged Revenue Coverage Table 14 140
Demographic and Economic Information:
Demographic and Economic Statistics Table 15 141
Principal Employers Table 16 143
Operating Information:
Full-Time Equivalent Employees By Function/Program Table 17 144
Operating Indicators by Function/Program Table 18 146
Capital Asset Statistics by Function/Program Table 19 148
STATISTICAL SECTION (UNAUDITED)
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INTRODUCTORY SECTION
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June 4, 2021
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
comprehensive annual financial report of the City of Lake Elmo, MN for the fiscal year ended
December 31, 2020.
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, 2020 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, 2020 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, 2020 as the City’s federal expenditures did not meet
the single audit threshold for this additional independent audit.
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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 2019 population of 11,105 which represents 3,902 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 budget for
submission to the Finance Committee for their consideration. The Finance Committee then meets
with the Department Heads to better understand their proposed budgets to later submit a budget
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 2020 Adopted Budget and final property tax levy was required to be adopted by
and submitted to Washington County by December 28, 2019. 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
Finance Committee and 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.
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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 2020, the city saw the construction of the first apartment development in the City
with 300 units. Two additional senior living facilities also began construction in 2020. The City’s
highway infrastructure continues to make Lake Elmo a desirable residential location. Rapid growth
is further reflected in 2019 population estimates of 11,105 or an increase of 38% since the 2010
census.
New housing starts in 2020 numbered 309 with a total value of $98,294,609 and an average value
of $318,105. There were 34 new Commercial construction projects in 2020, and a number of
remodels and expansions. All these new starts have been built in 2020 or will be finished in 2021,
which will greatly strengthen the existing tax base of the City.
LONG TERM FINANCIAL PLANNING
Total unassigned General Fund balance as of December 31, 2020 was 86% 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 2019 and 2020. In their assessment of the City, Moody’s noted the
following:
Strong financial operations supported by healthy reserves and liquidity
Healthy unassigned fund balance
Affluent tax base favorably located in Twin Cities metropolitan area
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.
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MAJOR INITIATIVES
2020 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 2020 infrastructure projects included the following:
The Old Village Improvement project is well underway and preliminary survey work began on
Phases V & VI of the project which are under construction starting 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.
The City began work on seven 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 benefiting
property owners. Additionally, well 5 was under construction in 2020 and completed in 2021.
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.
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, 2019. 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 Comprehensive Annual 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 Comprehensive Annual 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, 2020. 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
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lake Elmo
Minnesota
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
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CITY OF LAKE ELMO, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2020
Term Expires
Mayor: Mike Pearson December 31, 2020
Councilmembers: Justin Bloyer December 31, 2020
Christine Nelson December 31, 2020
Dale Dorschner December 31, 2022
Lisa McGinn December 31, 2022
Appointed Officials
City Administrator:Kristina Handt Appointed
Finance Director:Sam Magureanu Appointed
City Clerk:Julie Johnson Appointed
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=Citizen Appointees=Contractor RelationshipPublic Works OperatorsPublic Works DirectorFire ChiefPlannerBuilding Inspector (2)Accountant Deputy Clerk Lead Worker Assistant ChiefCaptainsInternPermit TechnicianAssessorInternUtility Billing ClerkCitizens of Lake ElmoCity AdministratorCity AttorneySheriff's Office - Sargent (1) - Deputy (4)Park CommissionEconomic DevelopmentAuthorityCommissionsCommitteesSeasonal Public WorksFireFighters (POC, PT)City EngineerORGANIZATION CHART 2020Planning DirectorBuilding Official Finance DirectorAssistant AdministratorCity ClerkEnvironmentalFinanceHuman ResourcesMaintenance AdvisoryPublic SafetyPlanning CommissionCity Council10
FINANCIAL SECTION
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55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 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 Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of Lake
Elmo, Minnesota as of and for the year ended December 31, 2020, 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.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota, as of
December 31, 2020, 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.
Report on Summarized Comparative Information
We have previously audited the City of Lake Elmo, Minnesota’s 2019 financial statements, and we
expressed an unmodified audit opinion 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 26, 2020. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2019 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
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, 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.
Other 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
introductory section, combining and individual nonmajor fund financial statements, and statistical
section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
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The combining and individual nonmajor fund financial statements are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements are fairly stated in all material respects in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
June 4, 2021 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 4, 2021
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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, 2020. 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 $106,100,028 (net
position). Of this amount, $23,863,204 (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 $18,919,224.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $12,183,751, an increase of $883,812. Of this amount, $5,814,832
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 $5,233,641. Unassigned
fund balance for the General Fund was $5,212,435, or 86% of the next year’s total General
Fund expenditures and other financing uses.
Total outstanding debt decreased by $3,170,000 during 2020. There was no new debt issued
in 2020.
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.
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Management’s Discussion and Analysis
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
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.
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Management’s Discussion and Analysis
The City maintains three 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
Vehicle Acquisition
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.
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 23.
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Management’s Discussion and Analysis
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 $106,100,028 at the close of the most recent
fiscal year.
The largest portion of the City’s net position ($74,065,663, or 70%) 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
2020 2019 2020 2019 2020 2019
Assets:
Current and other assets $18,815,135 $18,130,671 $20,448,133 $18,043,809 $39,263,268 $36,174,480
Capital assets 45,484,720 42,520,593 64,643,579 54,588,238 110,128,299 97,108,831
Total assets 64,299,855 60,651,264 85,091,712 72,632,047 149,391,567 133,283,311
Deferred outflows of resources 389,102 629,643 41,513 19,191 430,615 648,834
Liabilities:
Long-term liabilities outstanding 17,125,639 18,898,928 20,453,002 21,680,463 37,578,641 40,579,391
Other liabilities 3,996,027 4,047,165 1,717,425 1,366,492 5,713,452 5,413,657
Total liabilities 21,121,666 22,946,093 22,170,427 23,046,955 43,292,093 45,993,048
Deferred inflows of resources 417,445 735,627 12,616 22,666 430,061 758,293
Net position:
Net investment in capital assets 29,694,288 24,771,065 44,371,375 33,052,649 74,065,663 57,823,714
Restricted 8,171,161 8,596,759 - - 8,171,161 8,596,759
Unrestricted 5,284,397 4,231,363 18,578,807 16,528,968 23,863,204 20,760,331
Total net position $43,149,846 $37,599,187 $62,950,182 $49,581,617 $106,100,028 $87,180,804
Governmental Activities Business-Type Activities Totals
$8,171,161 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
($23,863,204) 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.
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Management’s Discussion and Analysis
Governmental Activities
Net position of governmental activities increased $5,550,659 during the year. The primary
reasons for the increase were developer contributed infrastructure in the amount of
$3,937,057, as well as increased revenues from services, operating grants and contributions,
general property tax revenue and investment earnings.
Business-Type Activities
Net position of business-type activities increased $13,368,565 during the year. The most
significant reason for the increase was developer contributed infrastructure in the amount of
$6,946,150. The City also received $3,572,097 of connection charge revenue, for which the
offsetting expense is recognized in future years as depreciation expense.
21
Management’s Discussion and Analysis
City of Lake Elmo’s Changes in Net Position
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $2,901,761 $2,356,070 $2,041,676 $1,648,689 $4,943,437 $4,004,759
Operating grants and contributions 1,039,823 795,483 21,893 122,350 1,061,716 917,833
Capital grants and contributions 4,823,628 11,076,353 15,636,661 14,114,787 20,460,289 25,191,140
General revenues:
General property taxes 4,960,342 4,181,914 - - 4,960,342 4,181,914
Grants and contributions not
restricted to specific programs 4,337 4,956 - - 4,337 4,956
Unrestricted investment earnings 348,766 331,010 286,350 411,206 635,116 742,216
Gain on disposal of assets 13,805 44,927 - - 13,805 44,927
Extraordinary item - - - 4,552,179 - 4,552,179
Total revenues 14,092,462 18,790,713 17,986,580 20,849,211 32,079,042 39,639,924
Expenses:
General government 1,008,916 1,181,219 - - 1,008,916 1,181,219
Public safety 2,681,784 2,058,419 - - 2,681,784 2,058,419
Public works 4,012,661 3,728,247 - - 4,012,661 3,728,247
Culture and recreation 428,083 361,730 - - 428,083 361,730
Economic development authority 46,371 71,609 - - 46,371 71,609
Interest on long-term debt 363,988 395,106 - - 363,988 395,106
Water - - 2,383,252 1,940,148 2,383,252 1,940,148
Sewer - - 1,481,586 1,082,997 1,481,586 1,082,997
Storm sewer - - 753,177 469,765 753,177 469,765
Total expenses 8,541,803 7,796,330 4,618,015 3,492,910 13,159,818 11,289,240
Change in net position 5,550,659 10,994,383 13,368,565 17,356,301 18,919,224 28,350,684
Net position - January 1 37,599,187 26,604,804 49,581,617 32,225,316 87,180,804 58,830,120
Net position - December 31 $43,149,846 $37,599,187 $62,950,182 $49,581,617 $106,100,028 $87,180,804
Business-Type Activities TotalsGovernmental Activities
22
Management’s Discussion and Analysis
Governmental Activities
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
23
Management’s Discussion and Analysis
Business-Type Activities
Below are specific graphs which provide comparisons of the business-type activities
revenues and expenses:
24
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 $12,183,751. Approximately 48% of this total amount ($5,814,832)
constitutes fund balance restricted by external constraints established by creditors, grantors,
contributors, or by state statutory provisions. $21,206 of fund balance is not in a spendable
form, $7,691 has been committed, $2,653,503 has been assigned, and $3,686,519 is
unassigned.
The fund balance of the General Fund increased by $919,457 in 2020, while the City
anticipated no change in General Fund balance. The primary reason for the increase relates
to transfers into the General Fund of $765,079 out of fund 251 to pay for CARES related
expenditures. Fund 251 was created by the city to record and keep track of the CARES
revenues and expenditures during 2020. The remaining General Fund increase was caused by
a net positive variance of revenues over expenditures of $115,039 more than budgeted.
The Debt Service fund balance decreased by $153,347, primarily relating to debt service
payments that were higher than the collected revenues from property taxes and special
assessments.
The Vehicle Acquisition fund balance increased by $454,819. This increase was the result of
budgeted transfers from the General Fund of $1,003,847 to pay for budgeted capital outlay
expenditures. During the year the City incurred a total of $596,409 of capital outlay
expenditures within the fund, $297,090 for the purchase of SCBA equipment and vehicles for
public safety and $299,319 for the purchase of two plow truck vehicles for public works.
The combined fund balance of other governmental funds decreased $337,117 during 2020.
The primary reason for the decrease relates to capital outlay expenditures for public works of
$1,250,434. Some of the larger expenditures related to capital improvements that started in
2020 that will be financed with collections in 2021 from bonding and MSA funding.
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 $33,651,272, of which $7,170,096 is
unrestricted. The increase in net position of $7,951,736 was primarily due to capital
contributions of $2,426,220, intergovernmental revenues of $4,774,955 and $1,732,800 of
connection charges. The increase was partially offset by a net operating loss and interest and
fees on long-term debt.
25
Management’s Discussion and Analysis
The sewer fund has total net position at year-end of $19,388,161, of which $10,038,770 is
unrestricted. The increase in net position of $3,496,113 was primarily due to capital
contributions of $2,246,394 and connection charges of $1,839,297. The increase was
partially offset by a net operating loss and interest and fees on long-term debt.
The storm sewer fund has total net position at year-end of $9,910,749, of which $1,369,941
is unrestricted. The increase in net position of $1,920,716 was almost entirely due to capital
contributions of $2,273,536. 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 $919,457.
Revenues were $466,045 over budget for the year. This is mainly due to licenses and
permits, which were over budget by $374,320, and charges for services, which were over
budget by $247,339.
Expenditures came in over budget by $351,006 due to building inspection charges for other
services and charges $718,136 over budget. This was a direct result of the city contracting for
inspection services during 2020.
26
Management’s Discussion and Analysis
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, 2020, amounted to $110,128,299 (net of accumulated
depreciation), an increase of $13,019,468 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, $10,883,207, is due to 2020
capital contributions from private sources.
Further, the City substantially completed the Stonegate Street & Utility Improvements, Well
#5 construction/Well #1 sealing projects and began work on the Hamlet on Sunfish Lake
Sanitary Sewer project as well as Old Village Phases 5 and 6.
City of Lake Elmo’s Capital Assets
(Net of Depreciation)
2020 2019 2020 2019 2020 2019
Land $3,453,979 $3,453,979 $3,668,869 $3,668,869 $7,122,848 $7,122,848
Construction in progress 637,739 618,039 5,843,234 236,301 6,480,973 854,340
Buildings 3,084,801 3,176,258 - - 3,084,801 3,176,258
Other improvements 1,546,483 1,364,127 - - 1,546,483 1,364,127
Machinery and equipment 2,811,392 2,375,168 168,092 89,981 2,979,484 2,465,149
Infrastructure 33,950,326 31,533,022 54,963,384 50,593,087 88,913,710 82,126,109
Total $45,484,720 $42,520,593 $64,643,579 $54,588,238 $110,128,299 $97,108,831
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 5 to the financial
statements.
27
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $35,136,000, a decrease of $3,170,000, which was the amount of principal
retired during the year.
City of Lake Elmo’s Outstanding Debt
2020 2019 2020 2019 2020 2019
G.O. Improvement bonds $13,695,000 $15,350,000 $19,710,000 $21,090,000 $33,405,000 $36,440,000
G.O. Equipment certificates 850,000 940,000 - - 850,000 940,000
Taxable lease revenue bonds 881,000 926,000 - - 881,000 926,000
Total $15,426,000 $17,216,000 $19,710,000 $21,090,000 $35,136,000 $38,306,000
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.
28
BASIC FINANCIAL STATEMENTS
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30
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2020
With Comparative Totals For December 31, 2019
Governmental Business-Type
Activities Activities 2020 2019
Assets:
Cash and investments $15,760,221 $15,991,507 $31,751,728 $28,911,068
Accrued interest receivable 36,118 32,836 68,954 95,994
Due from other governmental units 3,305 787,363 790,668 609,828
Accounts receivable - net 131,664 617,950 749,614 667,123
Prepaid items 21,206 419,684 440,890 47,319
Property taxes receivable 99,649 - 99,649 55,894
Special assessments receivable 2,257,550 2,598,793 4,856,343 5,414,181
Net pension asset 505,422 - 505,422 373,073
Capital assets - nondepreciable 4,091,718 9,512,103 13,603,821 7,977,188
Capital assets - net of accumulated depreciation 41,393,002 55,131,476 96,524,478 89,131,643
Total assets 64,299,855 85,091,712 149,391,567 133,283,311
Deferred outflows of resources related to pensions 389,102 41,513 430,615 648,834
Liabilities:
Accounts payable 258,815 329,758 588,573 211,390
Due to other governmental units - 234,894 234,894 347,242
Salaries and benefits payable 52,307 6,867 59,174 102,250
Contracts and retainage payable - 166,838 166,838 136,547
Deposits payable 3,232,294 - 3,232,294 3,168,417
Accrued interest payable 181,381 200,069 381,450 396,081
Unearned revenue 271,230 779,000 1,050,230 1,051,730
Compensated absences payable:
Due within one year 82,027 20,785 102,812 63,383
Due in more than one year 27,342 6,929 34,271 21,128
Bonds payable:
Due within one year 1,997,000 1,455,000 3,452,000 3,170,000
Due in more than one year 13,793,432 18,650,366 32,443,798 35,978,570
Other postemployment benefits:
Due in more than one year 65,397 13,906 79,303 73,788
Net pension liability:
Due in more than one year 1,160,441 306,015 1,466,456 1,272,522
Total liabilities 21,121,666 22,170,427 43,292,093 45,993,048
Deferred inflows of resources related to pensions 417,445 12,616 430,061 758,293
Net position:
Net investment in capital assets 29,694,288 44,371,375 74,065,663 57,823,714
Restricted for:
Debt service 6,532,176 - 6,532,176 7,057,638
Vehicle acquisition - - - 447,848
Park improvements 1,193,853 - 1,193,853 734,100
Street improvements 84,619 - 84,619 84,619
Fire Relief Association pension plan 360,513 - 360,513 272,554
Unrestricted 5,284,397 18,578,807 23,863,204 20,760,331
Total net position $43,149,846 $62,950,182 $106,100,028 $87,180,804
Primary Government
Total
The accompanying notes are an integral part of these financial statements.
31
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $1,008,916 $421,792
Public safety 2,681,784 2,146,319
Public works 4,012,661 243,060
Culture and recreation 428,083 2,812
Economic development authority 46,371 87,778
Interest and fees on long-term debt 363,988 -
Total governmental activities 8,541,803 2,901,761
Business-type activities:
Water 2,383,252 1,239,404
Sewer 1,481,586 432,583
Storm sewer 753,177 369,689
Total business-type activities 4,618,015 2,041,676
Total primary government $13,159,818 $4,943,437
The accompanying notes are an integral part of these financial statements.
32
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities 2020 2019
$56,348 $ - ($530,776) $ - ($530,776) ($588,078)
797,084 - 261,619 - 261,619 (401,768)
173,566 4,109,070 513,035 - 513,035 8,018,853
12,825 714,558 302,112 - 302,112 (230,406)
- - 41,407 - 41,407 28,081
- - (363,988) - (363,988) (395,106)
1,039,823 4,823,628 223,409 0 223,409 6,431,576
21,893 8,945,013 - 7,823,058 7,823,058 4,975,362
- 4,402,788 - 3,353,785 3,353,785 3,718,199
- 2,288,860 - 1,905,372 1,905,372 3,699,355
21,893 15,636,661 0 13,082,215 13,082,215 12,392,916
$1,061,716 $20,460,289 223,409 13,082,215 13,305,624 18,824,492
General revenues:
General property taxes 4,960,342 - 4,960,342 4,181,914
Grants and contributions not
restricted to specific programs 4,337 - 4,337 4,956
Unrestricted investment earnings 348,766 286,350 635,116 742,216
Gain on disposal of capital assets 13,805 - 13,805 44,927
Extraordinary item - - - 4,552,179
Total general revenues and
extraordinary item 5,327,250 286,350 5,613,600 9,526,192
Change in net position 5,550,659 13,368,565 18,919,224 28,350,684
Net position - January 1 37,599,187 49,581,617 87,180,804 58,830,120
Net position - December 31 $43,149,846 $62,950,182 $106,100,028 $87,180,804
Program Revenues Net (Expense) Revenue and Changes
in Net Position - Primary Government
Total
The accompanying notes are an integral part of these financial statements.
33
CITY OF LAKE ELMO, MINNESOTA
BALANCE SHEET Statement 3
GOVERNMENTAL FUNDS
December 31, 2020
Debt Vehicle Other
General Fund Service Acquisition Governmental
(101) (300s) (410) Funds
Assets 2020 2019
Cash and investments $7,052,419 $4,573,126 $1,702,959 $2,431,717 $15,760,221 $14,490,025
Accrued interest receivable 17,778 9,585 3,519 5,236 36,118 42,978
Due from other governmental units 3,305 - - - 3,305 551,456
Accounts receivable - net 21,424 - 9,805 100,435 131,664 29,255
Prepaid items 21,206 - - - 21,206 28,162
Due from other funds 1,481,225 - - 16,059 1,497,284 1,185,555
Property taxes receivable:
Due from county 33,620 11,208 - - 44,828 14,282
Delinquent 54,821 - - - 54,821 41,612
Special assessments receivable:
Due from county - 1,055 - - 1,055 1,247
Delinquent 295 1,597 - - 1,892 2,963
Deferred 61,170 2,175,600 - 17,833 2,254,603 2,555,618
Total assets $8,747,263 $6,772,171 $1,716,283 $2,571,280 $19,806,997 $18,943,153
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $187,735 $ - $ - $71,080 $258,815 $167,028
Due to other governmental units - - - - - 41,925
Salaries and benefits payable 52,307 - - - 52,307 86,263
Contracts and retainage payable - - - - - 121,103
Due to other funds - 41,437 - 1,455,847 1,497,284 1,185,555
Deposits payable 3,157,294 - - 75,000 3,232,294 3,168,417
Unearned revenue - - - 271,230 271,230 272,730
Total liabilities 3,397,336 41,437 0 1,873,157 5,311,930 5,043,021
Deferred inflows of resources:
Unavailable revenue 116,286 2,177,197 - 17,833 2,311,316 2,600,193
Fund balance:
Nonspendable 21,206 - - - 21,206 28,162
Restricted - 4,536,360 - 1,278,472 5,814,832 5,973,451
Committed - - - 7,691 7,691 24,070
Assigned - 17,177 1,716,283 920,043 2,653,503 1,746,202
Unassigned 5,212,435 - - (1,525,916) 3,686,519 3,528,054
Total fund balance 5,233,641 4,553,537 1,716,283 680,290 12,183,751 11,299,939
Total liabilities, deferred inflows
of resources, and fund balance $8,747,263 $6,772,171 $1,716,283 $2,571,280 $19,806,997 $18,943,153
With Comparative Totals For December 31, 2019
Total Governmental Funds
The accompanying notes are an integral part of these financial statements.
34
CITY OF LAKE ELMO, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2020
With Comparative Totals For December 31, 2019
2020 2019
Fund balance - total governmental funds (Statement 3) $12,183,751 $11,299,939
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 45,484,720 42,520,593
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 54,821 41,612
Delinquent special assessments receivable 1,892 2,963
Deferred special assessments receivable 2,254,603 2,555,618
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 (15,426,000) (17,216,000)
Unamortized bond premiums (364,432) (412,425)
Accrued interest payable (181,381) (189,699)
Compensated absences payable (109,369) (62,748)
Other postemployment benefits (65,397) (61,316)
Net pension liability (1,160,441) (1,146,439)
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 389,102 629,643
Deferred inflows of resources (417,445) (735,627)
Net position of governmental activities (Statement 1)$43,149,846 $37,599,187
The accompanying notes are an integral part of these financial statements.
35
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND Statement 5
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Debt Vehicle Other
General Fund Service Acquisition Governmental
(101) (300s) (410) Funds
Revenues:2020 2019
General property taxes $3,534,627 $1,412,506 $ - $ - $4,947,133 $4,182,327
Licenses and permits 1,425,695 - - - 1,425,695 1,055,038
Intergovernmental 273,194 - - 749,999 1,023,193 2,819,961
Charges for services 1,022,028 - - 251,213 1,273,241 1,079,342
Fines and forfeits 33,584 - - - 33,584 36,696
Special assessments - 474,099 - - 474,099 649,487
Park dedication fees - - - 714,558 714,558 123,500
Investment income 164,236 82,990 33,576 67,964 348,766 331,010
Miscellaneous 183,711 - - - 183,711 201,494
Total revenues 6,637,075 1,969,595 33,576 1,783,734 10,423,980 10,478,855
Expenditures:
Current:
General government 1,005,254 - - - 1,005,254 1,136,908
Public safety 2,641,770 - - - 2,641,770 1,948,269
Public works 1,476,099 - - 17,271 1,493,370 1,875,606
Culture and recreation 310,066 - - - 310,066 265,260
Economic development authority - - - 46,371 46,371 71,609
Capital outlay:
Public safety - - 297,090 - 297,090 880,832
Public works - - 299,319 1,250,434 1,549,753 3,267,970
Culture and recreation - - - - - 205,841
Debt service:
Principal - 1,790,000 - - 1,790,000 1,615,000
Interest and fiscal charges - 418,599 - 1,700 420,299 454,814
Total expenditures 5,433,189 2,208,599 596,409 1,315,776 9,553,973 11,722,109
Revenues over (under) expenditures 1,203,886 (239,004) (562,833) 467,958 870,007 (1,243,254)
Other financing sources (uses):
Transfers in 765,079 85,657 1,003,847 45,661 1,900,244 1,181,173
Transfers out (1,049,508) - - (850,736) (1,900,244) (786,573)
Issuance of debt - - - - - 2,860,000
Bond premium - - - - - 168,168
Proceeds from sale of capital assets - - 13,805 - 13,805 44,927
Total other financing sources (uses)(284,429) 85,657 1,017,652 (805,075) 13,805 3,467,695
Net change in fund balance 919,457 (153,347) 454,819 (337,117) 883,812 2,224,441
Fund balance - January 1 4,314,184 4,706,884 1,261,464 1,017,407 11,299,939 9,075,498
Fund balance - December 31 $5,233,641 $4,553,537 $1,716,283 $680,290 $12,183,751 $11,299,939
Total Governmental Funds
The accompanying notes are an integral part of these financial statements.
36
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, 2020
With Comparative Totals For The Year Ended December 31, 2019
2020 2019
Net change in fund balance - total governmental funds (Statement 5)$883,812 $2,224,441
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 (2,294,552) (1,481,392)
Capital outlay 1,846,843 4,354,643
Capital outlay not capitalized (525,221) (555,917)
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 3,937,057 8,843,797
Contributions of infrastructure to business-type activities - (394,600)
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 13,209 (413)
Change in delinquent special assessments receivable (1,071)1,487
Change in deferred special assessments receivable (301,015) (582,736)
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 - (2,860,000)
Premium on bonds issued - (168,168)
Repayment of principal 1,790,000 1,615,000
Amortization of bond premiums 47,993 62,797
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 8,318 (3,089)
Change in compensated absences payable (46,621)7,912
Change other post employment benefits liability (4,081)(7,295)
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.195,988 (62,084)
Change in net position of governmental activities (Statement 2)$5,550,659 $10,994,383
The accompanying notes are an integral part of these financial statements.
37
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION Statement 7
PROPRIETARY FUNDS
December 31, 2020
Storm
Water (601) Sewer (602) Sewer (603) 2020 2019
Assets:
Current assets:
Cash and investments $7,062,772 $7,836,634 $1,092,101 $15,991,507 $14,421,043
Accrued interest receivable 14,695 16,005 2,136 32,836 53,016
Due from other governmental units 787,363 - - 787,363 58,372
Accounts receivable - net 194,410 92,412 331,128 617,950 637,868
Prepaid items - 419,684 - 419,684 19,157
Total current assets 8,059,240 8,364,735 1,425,365 17,849,340 15,189,456
Noncurrent assets:
Special assessments receivable 297,870 2,268,524 32,399 2,598,793 2,854,353
Capital assets:
Land 3,668,869 - - 3,668,869 3,668,869
Construction in progress 5,342,278 500,956 - 5,843,234 236,301
Machinery and equipment 340,696 73,003 - 413,699 318,113
Infrastructure 36,454,657 17,621,908 12,523,379 66,599,944 59,646,533
Total capital assets 45,806,500 18,195,867 12,523,379 76,525,746 63,869,816
Less: Allowance for depreciation (8,329,282) (2,442,026) (1,110,859) (11,882,167) (9,281,578)
Net capital assets 37,477,218 15,753,841 11,412,520 64,643,579 54,588,238
Total assets 45,834,328 26,387,100 12,870,284 85,091,712 72,632,047
Deferred outflows of resources related to pensions 22,020 12,062 7,431 41,513 19,191
Liabilities:
Current liabilities:
Accounts payable 140,708 185,745 3,305 329,758 44,362
Due to other governmental units 572 234,322 - 234,894 305,317
Salaries and benefits payable 4,736 1,554 577 6,867 15,987
Contracts and retainage payable 159,828 7,010 - 166,838 15,444
Accrued interest payable 93,248 80,131 26,690 200,069 206,382
Unearned revenue 779,000 - - 779,000 779,000
Compensated absences payable - current portion 10,514 6,198 4,073 20,785 16,322
Bonds payable - current portion 790,000 465,000 200,000 1,455,000 1,380,000
Total current liabilities 1,978,606 979,960 234,645 3,193,211 2,762,814
Noncurrent liabilities:
Compensated absences payable - noncurrent portion 3,505 2,066 1,358 6,929 5,441
Bonds payable - noncurrent portion 10,046,214 5,932,440 2,671,712 18,650,366 20,140,145
Other postemployment benefits 7,740 3,953 2,213 13,906 12,472
Net pension liability 162,319 88,916 54,780 306,015 126,083
Total noncurrent liabilities 10,219,778 6,027,375 2,730,063 18,977,216 20,284,141
Total liabilities 12,198,384 7,007,335 2,964,708 22,170,427 23,046,955
Deferred inflows of resources related to pensions 6,692 3,666 2,258 12,616 22,666
Net position:
Net investment in capital assets 26,481,176 9,349,391 8,540,808 44,371,375 33,052,649
Unrestricted 7,170,096 10,038,770 1,369,941 18,578,807 16,528,968
Total net position $33,651,272 $19,388,161 $9,910,749 $62,950,182 $49,581,617
With Comparative Totals For December 31, 2019
Business-Type Activities - Enterprise Funds
Total
The accompanying notes are an integral part of these financial statements.
38
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Storm
Water (601) Sewer (602) Sewer (603) 2020 2019
Operating revenues:
Charges for services $1,050,274 $354,947 $314,959 $1,720,180 $1,495,104
Water meter sales 155,675 - - 155,675 97,342
Other operating revenue 33,455 77,636 54,730 165,821 56,243
Total operating revenues 1,239,404 432,583 369,689 2,041,676 1,648,689
Operating expenses:
Personal services 347,372 179,315 103,739 630,426 351,493
Materials and supplies 185,341 20,716 7,833 213,890 139,611
Professional services 117,046 73,029 49,087 239,162 247,555
Repairs and maintenance 20,907 11,493 36,653 69,053 125,967
Utilities 86,655 244,776 - 331,431 264,924
Depreciation 1,340,250 762,451 497,888 2,600,589 1,823,049
Other 40,846 24,601 3,962 69,409 45,732
Total operating expenses 2,138,417 1,316,381 699,162 4,153,960 2,998,331
Operating income (loss)(899,013) (883,798) (329,473) (2,112,284) (1,349,642)
Nonoperating revenues (expenses):
Investment income 128,678 142,328 15,344 286,350 411,206
Intergovernmental revenue 21,893 - - 21,893 122,350
Interest and fees on long-term debt (244,835) (165,205) (54,015) (464,055) (488,301)
Gain (loss) on disposal of capital assets - - - - (6,278)
Total nonoperating operating revenues (expenses)(94,264) (22,877) (38,671) (155,812) 38,977
Income (loss) before contributions and transfers (993,277) (906,675) (368,144) (2,268,096) (1,310,665)
Contributions, transfers and extraordinary item:
Capital contributions:
Intergovernmental revenue 4,774,955 - - 4,774,955 138,894
Special assessments 11,038 93,482 15,324 119,844 121,912
Refunds and reimbursements - 223,615 - 223,615 -
Capital contributions from private sources 2,426,220 2,246,394 2,273,536 6,946,150 11,845,548
Capital contributions from governmental activities - - - - 394,600
Connection charges 1,732,800 1,839,297 - 3,572,097 2,008,433
Transfer out - - - - (394,600)
Extraordinary item - - - - 4,552,179
Total contributions, transfers and extraordinary item 8,945,013 4,402,788 2,288,860 15,636,661 18,666,966
Change in net position 7,951,736 3,496,113 1,920,716 13,368,565 17,356,301
Net position - January 1 25,699,536 15,892,048 7,990,033 49,581,617 32,225,316
Net position - December 31 $33,651,272 $19,388,161 $9,910,749 $62,950,182 $49,581,617
CHANGES IN FUND NET POSITION
Business-Type Activities - Enterprise Funds
Total
The accompanying notes are an integral part of these financial statements.
39
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS Statement 9
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
With Comparative Totals For The Year Ended December 31, 2019
Storm
Water (601) Sewer (602) Sewer (603) 2020 2019
Cash flows from operating activities:
Receipts from customers and users $1,301,705 $433,610 $406,544 $2,141,859 $1,579,815
Payments to suppliers (344,883) (668,655) (94,961) (1,108,499) (825,503)
Payments to employees (298,468) (121,365) (64,768) (484,601) (330,899)
Net cash flows provided by (used in) operating activities 658,354 (356,410) 246,815 548,759 423,413
Cash flows from capital and related financing activities:
Intergovernmental revenue 3,987,592 - - 3,987,592 138,894
Special assessments 12,717 309,960 52,727 375,404 432,727
Refunds and reimbursements - 223,615 - 223,615 -
Connection charges 1,782,800 1,839,297 - 3,622,097 2,083,433
Extraordinary item - - - - 1,132,179
Proceeds from issuance of bonds - - - - 1,237,879
Principal paid on long-term debt (770,000) (435,000) (175,000) (1,380,000) (1,360,000)
Interest and fees paid on long-term debt (266,888) (179,651) (58,612) (505,151) (530,797)
Acquisition of capital assets (5,087,281) (521,101) - (5,608,382) (678,913)
Transfer out - - - - (394,600)
Net cash flows provided by (used in)
capital and related financing activities (341,060) 1,237,120 (180,885) 715,175 2,060,802
Cash flows from investing activities:
Investment earnings 137,471 150,912 18,147 306,530 388,469
Net increase (decrease) in cash and cash equivalents 454,765 1,031,622 84,077 1,570,464 2,872,684
Cash and cash equivalents - January 1 6,608,007 6,805,012 1,008,024 14,421,043 11,548,359
Cash and cash equivalents - December 31 $7,062,772 $7,836,634 $1,092,101 $15,991,507 $14,421,043
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss)($899,013) ($883,798) ($329,473) ($2,112,284) ($1,349,642)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Intergovernmental revenue 21,893 - - 21,893 122,350
Depreciation 1,340,250 762,451 497,888 2,600,589 1,823,049
Changes in assets and liabilities:
Decrease (increase) in receivables 40,408 1,027 36,855 78,290 (191,224)
Decrease (increase) in prepaid items - (400,527) - (400,527) (5,044)
Decrease (increase) in deferred outflows of resources (7,898) (8,685) (5,739) (22,322) 17,489
Increase (decrease) in payables 105,912 106,487 2,574 214,973 3,330
Increase (decrease) in salaries and benefits payable (5,329) (2,534) (1,257) (9,120) 7,183
Increase (decrease) in compensated absences 1,752 2,373 1,826 5,951 1,917
Increase (decrease) in other post employment benefits 827 386 221 1,434 2,563
Increase (decrease) in net pension liability 69,539 66,732 43,661 179,932 882
Increase (decrease) in deferred inflows of resources (9,987)(322)259 (10,050) (9,440)
Total adjustments 1,557,367 527,388 576,288 2,661,043 1,773,055
Net cash provided by (used in) operating activities $658,354 ($356,410) $246,815 $548,759 $423,413
Noncash investing, capital and financing activities:
Capital asset contributions $2,426,220 $2,246,394 $2,273,536 $6,946,150 $12,240,148
Extraordinary item - value of land received $ - $ - $ - $ - $3,420,000
Loss on disposal of capital assets $ - $ - $ - $ - ($6,278)
Total
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
40
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
RELATED ORGANIZATION
The Lake Elmo Firefighters Relief Association (the Association) is organized as a nonprofit
organization, legally separate from the City, by its members to provide pension and other benefits to
such members in accordance with Minnesota Statutes. The Association’s Board of Trustees is appointed
by the membership of the Association and not by the City Council. All funding is conducted in
accordance with Minnesota Statutes, whereby state aid flows to the Association, tax levies are
determined by the Association and the Association pays benefits directly to its members. The
Association may certify tax levies to Washington County directly if the City does not carry out this
function. Because the Association is fiscally independent of the City, the financial statements of the
Association have not been included within the City’s reporting entity.
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.
41
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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.
Vehicle Acquisition Fund accounts for the accumulation of resources for the purchase of vehicles to
be used by various City departments.
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
42
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
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.
43
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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
44
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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.
45
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
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.
46
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 position 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 position
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.
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.
47
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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, 2019 from which the summarized information was
derived.
48
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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, 2020, the bank balance of the City’s deposits with financial institutions was
$6,422,711 and the carrying amount was $5,464,434. All deposits were covered by federal
depository insurance or by collateral pledged and held in the City’s name.
B. INVESTMENTS
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.
49
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
At December 31, 2020, 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 $8,769,429 $6,218,527 $2,305,522 $245,380
Federal Farm Credit Bank notes Aaa 1,040,586 - 539,951 500,635
Federal Home Loan Bank notes Aaa 1,260,254 - 1,260,254 -
Municipal bonds (1)3,908,451 575,400 1,460,643 1,872,408
External investment pool - 4M Fund Not rated 8,466,655 8,466,655 - -
Money market funds Not rated 2,840,171 2,840,171 - -
Total $26,285,546 $18,100,753 $5,566,370 $2,618,423
(1) $1,087,220 are rated AAA, $172,324 are rated Aa1,Total investments $26,285,546
$307,735 are rated Aa2, $631,693 are rated Aa3,Deposits 5,464,434
$362,445 are rated AA+, $924,382 are rated AA, Petty cash 1,748
$211,422 are rated AA+, and $211,230 are rated A Total cash and investments $31,751,728
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, 2020:
Investment Type 12/31/2020 Level 1 Level 2 Level 3
Investments at fair value:
Brokered certificates of deposit $8,769,429 $ - $8,769,429 $ -
Municipal bonds 3,908,451 172,324 3,736,127 -
Federal Farm Credit Bank notes 1,040,586 - 1,040,586 -
Federal Home Loan Bank notes 1,260,254 - 1,260,254 -
14,978,720 $172,324 $14,806,396 $0
Investments not categorized:
External investment pool - 4M Fund 8,466,655 `
Money market funds 2,840,171
Total investments $26,285,546
Fair Value Measurement Using
50
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
The 4M Fund is an external investment pool investment which is regulated by Minnesota Statutes and
the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the
position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio
weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value
(NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB
Statement No. 79. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest
on the amount withdrawn.
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, 2020, the City did not have 5% or more of its
investments in any one issuer.
51
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2020 are as
follows:
Property Special
Taxes Assessments
Receivable Receivable Total
Major Funds:
General Fund $26,759 $150 $26,909
Debt Service Fund - 1,939,932 1,939,932
Water Fund - 159,580 159,580
Sewer Fund - 2,080,754 2,080,754
Storm Sewer Fund - 830 830
Nonmajor Funds - 17,833 17,833
Total $26,759 $4,199,079 $4,225,838
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 $54,821 $61,465 $116,286
Debt Service Fund - 2,177,197 2,177,197
Nonmajor Funds - 17,833 17,833
Total $54,821 $2,256,495 $2,311,316
52
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020 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 618,039 1,321,623 (1,301,923) 637,739
Total capital assets, not being depreciated 4,072,018 1,321,623 (1,301,923) 4,091,718
Capital assets, being depreciated:
Buildings 4,330,670 - - 4,330,670
Other improvements 2,504,674 275,674 - 2,780,348
Machinery and equipment 5,051,799 724,891 (298,180) 5,478,510
Infrastructure 37,392,240 4,238,414 - 41,630,654
Total capital assets, being depreciated 49,279,383 5,238,979 (298,180) 54,220,182
Less accumulated depreciation for:
Buildings 1,154,412 91,458 - 1,245,870
Other improvements 1,140,547 93,318 - 1,233,865
Machinery and equipment 2,676,631 288,667 (298,180) 2,667,118
Infrastructure 5,859,218 1,821,109 - 7,680,327
Total accumulated depreciation 10,830,808 2,294,552 (298,180) 12,827,180
Total capital assets being depreciated - net 38,448,575 2,944,427 0 41,393,002
Governmental activities capital assets - net $42,520,593 $4,266,050 ($1,301,923) $45,484,720
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land $3,668,869 $ - $ - $3,668,869
Construction in progress 236,301 5,714,305 (107,372) 5,843,234
Total capital assets, not being depreciated 3,905,170 5,714,305 (107,372) 9,512,103
Capital assets, being depreciated:
Machinery and equipment 318,113 95,586 - 413,699
Infrastructure 59,646,533 6,953,411 - 66,599,944
Total capital assets, being depreciated 59,964,646 7,048,997 0 67,013,643
Less accumulated depreciation for:
Machinery and equipment 228,132 17,475 - 245,607
Infrastructure 9,053,446 2,583,114 - 11,636,560
Total accumulated depreciation 9,281,578 2,600,589 0 11,882,167
Total capital assets being depreciated - net 50,683,068 4,448,408 0 55,131,476
Business-type activities capital assets - net $54,588,238 $10,162,713 ($107,372) $64,643,579
53
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $24,823
Public safety 128,682
Public works 2,013,312
Culture & recreation 127,735
Total depreciation expense - governmental activities $2,294,552
Business-type activities:
Water $1,340,250
Sewer 762,451
Storm sewer 497,888
Total depreciation expense - business-type activities $2,600,589
54
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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, 2020 is as follows:
Issue Interest Maturity Payable
Date Rates Date 12/31/2020
Governmental Activities:
General obligation improvement bonds:
2010A Improvement bonds 11/15/10 2.35% - 2.80% 02/01/21 75,000
2010B CIP refunding bonds 11/15/10 2.05% - 3.20% 02/01/25 900,000
2011A Improvement bonds 10/01/11 1.25% - 2.30% 02/01/22 180,000
2012B Improvement bonds 08/16/12 1.25% - 1.90% 02/01/23 280,000
2013A Improvement bonds 10/01/13 2.00% - 3.75% 07/15/28 920,000
2014A Improvement bonds 07/15/14 2.00% - 3.5% 01/15/30 1,825,000
2015A Improvement bonds 08/13/15 2.00% - 3.00% 01/15/26 985,000
2016A Improvement bonds 06/01/16 2.00% 01/15/27 1,940,000
2017A Improvement bonds 06/08/17 2.50% - 3.00% 01/15/28 3,730,000
2019A Improvement bonds 10/24/19 2.00% - 3.00% 02/01/30 2,860,000
Total general obligation improvement bonds 13,695,000
General obligation equipment certificates:
2018A Equipment certificates 10/16/18 2.70% - 2.70% 02/01/28 850,000
Taxable lease revenue bonds:
2018A Taxable lease revenue bonds 06/28/18 4.50% - 4.50% 01/15/24 881,000
Unamortized bond premiums 364,432
Compensated absences payable 109,369
Total governmental activities $15,899,801
Business-Type Activities:
General obligation revenue bonds:
2012A Refunding bonds 08/13/12 2.00% - 2.50% 12/01/30 $3,015,000
2013A Improvement bonds 10/01/13 2.00% - 4.00% 07/15/33 2,585,000
2014A Improvement bonds 07/15/14 2.00% - 3.50% 01/15/30 2,375,000
2015A Improvement bonds 08/13/15 2.00% - 3.00% 01/15/31 925,000
2016A Improvement bonds 06/01/16 2.00% 01/15/32 5,645,000
2017A Improvement bonds 06/01/16 2.50% - 3.00% 01/15/33 3,970,000
2019A Improvement bonds 10/24/19 2.00% - 3.00% 02/01/35 1,195,000
Total general obligation revenue bonds 19,710,000
Unamortized bond premiums 395,366
Compensated absences payable 27,714
Total business-type activities $20,133,080
55
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
CHANGES IN LONG-TERM DEBT
The following is a schedule of changes in City indebtedness for the year ended December 31, 2020:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities:
G.O. Improvement bonds $15,350,000 $ - $1,655,000 $13,695,000 $1,855,000
G.O. Equipment certificates 940,000 - 90,000 850,000 95,000
Taxable lease revenue bonds 926,000 - 45,000 881,000 47,000
Unamortized bond premiums 412,425 - 47,993 364,432 -
Compensated absences payable 62,748 146,035 99,414 109,369 82,027
Total governmental activities $17,691,173 $146,035 $1,937,407 $15,899,801 $2,079,027
Business-type activities:
G.O. Revenue bonds $21,090,000 $ - $1,380,000 $19,710,000 $1,455,000
Unamortized bond premiums 430,145 - 34,779 395,366 -
Compensated absences payable 21,763 42,165 36,214 27,714 20,785
Total business-type activities $21,541,908 $42,165 $1,450,993 $20,133,080 $1,475,785
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 Principal Interest
2021 $1,855,000 $329,700 $95,000 $21,668 $47,000 $38,588 $1,455,000 $481,694
2022 1,835,000 285,961 100,000 19,036 49,000 36,428 1,560,000 449,804
2023 1,790,000 241,835 100,000 16,336 51,000 34,178 1,565,000 415,069
2024 1,715,000 196,714 105,000 13,568 53,000 31,838 1,585,000 377,784
2025 1,660,000 151,938 110,000 10,665 55,000 29,408 1,630,000 339,197
2026-2030 4,840,000 245,188 340,000 13,902 317,000 106,404 8,670,000 1,063,595
2031-2035 - - - - 309,000 28,548 3,245,000 145,917
Total $13,695,000 $1,451,336 $850,000 $95,175 $881,000 $305,392 $19,710,000 $3,273,060
Improvement Bonds Equipment Certificates
General ObligationGeneral Obligation General Obligation
Revenue Bonds
Taxable Lease
Revenue Bonds
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.
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.
56
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
2009B G.O. Improvement Infrastructure improvements 2010 - 2019 $ - $60,915 $5,284
2010A G.O. Improvement Infrastructure improvements 2011 - 2020 $76,050 $78,150 $65,421
2010B G.O. CIP Refunding Infrastructure improvements Ad valorem taxes 2011 - 2024 $971,106 $194,118 $206,908
2011A G.O. Improvement Infrastructure improvements 2012 - 2021 $184,140 $95,040 $80,382
2012A G.O. Refunding Water system improvements Water usage charges 2012 - 2030 $3,410,402 $279,844 $1,050,274
2012B G.O. Improvement Infrastructure improvements 2013 - 2022 $287,986 $95,905 $81,737
2013A G.O. Improvement Infrastructure improvements 2014 - 2033 $4,312,724 $446,170 $1,411,056
Ad valorem taxes,
2014A G.O. Improvement Infrastructure improvements Special assessments, 2015 - 2029 $4,831,558 $551,778 $1,682,519
Water & sewer charges
Ad valorem taxes,
2015A G.O. Improvement Infrastructure improvements Special assessments, 2016 - 2030 $2,127,977 $288,714 $1,492,078
Water & sewer charges
2016A G.O. Improvement Infrastructure improvements 2017 - 2031 $8,426,350 $823,350 $2,020,930
2017A G.O. Improvement Infrastructure improvements 2018 - 2032 $8,830,012 $892,078 $2,174,978
2018A G.O. Equipment Certificates Purchase of fire truck, dump truck Ad valorem taxes 2019 - 2027 $945,175 $114,165 $128,996
2018A Taxable Lease Revenue Purchase of city hall Lease revenues 2018 - 2033 $1,186,392 $85,658 $87,778
2019A G.O. Improvement Infrastructure improvements, capital equipment 2020 - 2034 $4,671,091 $85,067 $1,912,519
Ad valorem taxes,
Special assmts, Water,
Sewer, Storm charges
Ad valorem taxes,
Special assessments
Ad valorem taxes,
Special assessments
Ad valorem taxes,
Special assessments
Ad valorem taxes,
Special assessments
Special assessments,
Water & Sewer charges
Ad valorem taxes,
Special assmts, Water,
Sewer, Storm charges
Current Year
Ad valorem taxes,
Special assmts, Water,
Sewer, Storm charges
Revenue Pledged
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.
57
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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. Beginning in 2019, 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 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
58
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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. Beginning in 2019, the
postretirement increase will be 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 2020 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, 2020 were $109,289. The City’s
contributions were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Police and Fire member’s contribution rates increased from 11.3% of pay to 11.8% and employer
rates increased from 16.95% to 17.70% on January 1, 2020. The City’s contributions to the PEPFF
for the year ended December 31, 2020 were $27,492. 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, 2020, the City reported a liability of $1,241,060 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 $38,201. The net pension liability was measured as of June 30, 2020, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of
that date. The City’s proportion of the net pension liability was based on the City’s contributions
received by PERA during the measurement period for employer payroll paid dates from July 1,
2019 through June 30, 2020, relative to the total employer contributions received from all of
PERA’s participating employers. The City’s proportionate share was 0.0207% at the end of the
measurement period and 0.0193% for the beginning of the period.
59
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
City's proportionate share of the net pension liability $1,241,060
State of Minnesota’s proportionate share of the net pension
liability associated with the City 38,201
Total $1,279,261
For the year ended December 31, 2020, the City recognized pension expense of $136,691 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$3,325 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, 2020, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $11,331 $4,695
Changes in actuarial assumptions - 46,470
Net collective difference between projected
and actual investment earnings 16,385
Changes in proportion 85,648 -
Contributions paid to PERA
subsequent to the measurement date 54,998 -
Total $168,362 $51,165
The $54,998 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, 2021. 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
2021 ($34,362)
2022 23,715
2023 42,861
2024 29,985
Thereafter -
60
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
2. PEPFF Pension Costs
At December 31, 2020, the City reported a liability of $225,396 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2020 and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s 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, 2019 through June 30, 2020, relative to the total employer contributions
received from all of PERA’s participating employers. The City’s proportionate share was 0.0171%
at the end of the measurement period and 0.0193% for the beginning of the period.
The State of Minnesota also contributed $13.5 million to PEPFF during the plan fiscal year ended
June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the
definition of a special funding situation and $9.0 million in fire state aid that does not meet the
definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019.
Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until
full funding is reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will
continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the
Minnesota State Retirement System) is 90 percent funded, whichever occurs later.
As a result, 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 $4.5 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, 2020, the City recognized pension
expense of $41,159 for its proportionate share of the Police and Fire Plan’s pension expense. In
addition, the City recognized an additional $1,633 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota’s contribution of $4.5 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 fire state aid. The City also
recognized $1,539 for the year ended December 31, 2020 as revenue and an offsetting reduction of
net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions
to the Police and Fire Fund.
61
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
At December 31, 2020, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $9,810 $10,876
Changes in actuarial assumptions 76,750 134,959
Net collective difference between projected
and actual investment earnings 8,804 -
Changes in proportion 140,697 76,487
Contributions paid to PERA
subsequent to the measurement date 14,528 -
Total $250,589 $222,322
The $14,528 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, 2021. 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
2021 $771
2022 (45,666)
2023 50,997
2024 11,346
2025 (3,709)
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, 2020 actuarial valuation was determined using an individual
entry-age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as
appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after
retirement for retirees are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF.
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study for GERF was completed in 2019. The
62
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
The following changes in actuarial assumptions and plan provisions occurred in 2020:
General Employees Fund
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%.
As recommended in the June 30, 2019 experience study, 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.
The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% 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.
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.
Police and Fire Fund
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
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 stocks 35.5% 5.10%
International stocks 17.5% 5.30%
Bonds (fixed income) 20% 0.75%
Alternative assets (private markets) 25% 5.90%
Cash 2% 0.00%
Total 100%
63
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2020 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members and employers
will be made at the rate set in Minnesota statutes. Based on that assumption, 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 for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%)
Proportionate share of the
GERF net pension liability $1,988,988 $1,241,060 $624,079
Proportionate share of the
PEPFF net pension liability $449,247 $225,396 $40,199
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.
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2020 is as follows:
GERF $140,016
PEPFF 42,792
Fire Pension Plan (Note 8)(5,294)
Total $177,514
64
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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) 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 December 31, 2020, 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) 2
Partially vested (10 years to 19 years) 7
Nonvested (less than 10 years) 9
Total 23
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.
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
65
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 in accordance with State Statute requirements for the year ended December 31, 2020.
D. CHANGES IN THE NET PENSION ASSET
At December 31, 2020, the City reported a net pension asset of $505,422. The net pension asset was
measured as of December 31, 2020. The total pension liability used to calculate the net pension asset in
accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census
data certified by the fire department.
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)
Beginning balance 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 end of year December 31, 2020 $775,033 $1,280,455 ($505,422)
For the year ended December 31, 2020, the City recognized a reduction to pension expense in the
amount of $5,294.
66
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
At December 31, 2020, 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
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
2021 ($34,633)
2022 (15,352)
2023 (41,370)
2024 (26,043)
2025 (14,135)
Thereafter (13,376)
67
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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.
68
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 at December 31, 2020 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.
69
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 2020, 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
70
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City’s total OPEB liability of $79,303 was measured as of December 31, 2019 and was determined
by an actuarial valuation as of December 31, 2019. Changes in the total OPEB liability during 2020
were:
Balance - beginning of year $73,788
Changes for the year:
Service cost 9,793
Interest 3,101
Changes of benefit terms -
Differences between expected and actual experience (14,291)
Changes in assumptions 6,912
Benefit payments -
Net changes 5,515
Balance - end of year $79,303
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 2.75%
Investment rate of return 2.75%
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, 2019.
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.
71
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Changes in actuarial assumptions since the previous valuation include:
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.
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 (1.75%) or 1% higher
(3.75%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(1.75%) (2.75%) (3.75%)
Total OPEB liability $85,399 $79,303 $73,695
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 $71,325 $79,303 $89,031
72
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
RELATED TO OPEB
For the year ended December 31, 2020, the City recognized $5,515 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 2020. Therefore, there are no deferred outflows or inflows of resources
related to OPEB as of December 31, 2020.
Note 10 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. DEFICIT FUND BALANCES
The following funds reported a deficit fund balance at December 31, 2020:
Deficit
Fund Balance
Nonmajor Governmental Funds:
Village Project ($378,736)
CSAH 15 / CSAH 14 Realignment (9,547)
Manning Corridor and Safety Management (3,086)
CSAH 19 / Hudson Blvd Interchange (565,561)
2019 Street and Utility Project (5,731)
CSAH 13 Phase 2 (10,635)
Inwood and 5th Street Stoplight (107,630)
Old Village Phases 5 & 6 (251,199)
CSAH 15 Manning Avenue Phase 3 (3,070)
Heritage Farms Street & Utility Improvements (163,866)
Tamarack Farm Estates Street Improvements (14,278)
City Hall / Fire Station Bldg Project (12,577)
2012B GO Improvement Bonds (40,560)
The City intends to fund these deficits during 2021 with bond proceeds, MSA revenue, and transfers
from the General Fund.
73
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 $10,000 $12,748 $2,748
City facilities 21,496 28,326 6,830
Public safety:
Building inspection 570,502 1,098,491 527,989
Animal control 11,000 13,066 2,066
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, 2020 is as follows:
Due From Due To
Other Funds Other Funds
Major Funds:
General Fund $1,481,225 $ -
Debt Service Fund - 41,437
Nonmajor Funds:
Infrastructure Reserve 16,059 -
Village Project - 378,736
CSAH 15 / CSAH 14 Realignment - 9,239
Manning Corridor and Safety Management - 3,024
CSAH 19 / Hudson Blvd Interchange - 565,561
2019 Street and Utility Project - 5,731
CSAH 13 Phase 2 - 10,328
Inwood and 5th Street Stoplight - 107,507
Old Village Phases 5 & 6 - 197,254
CSAH 15 Manning Avenue Phase 3 - 3,070
Heritage Farms Street & Utility Improvements - 160,117
Tamarack Farm Estates Street Improvements - 14,191
City Hall / Fire Station Project - 1,089
$1,497,284 $1,497,284
74
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 12 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2020 are as follows:
Transfer In Transfer Out
Major Funds:
General Fund $765,079 $1,049,508
Debt Service Fund 85,657 -
Vehicle Acquisition 1,003,847 -
Nonmajor funds:
Economic Development Authority 30,000 85,657
CARES Fund 765,079
Infrastrucuture Reserve 15,661 -
Total $1,900,244 $1,900,244
During 2020, transfers were made to provide financing for economic development, debt service and capital
expenditures. These transfers are routine and consistent with past practices. A transfer was also made to move
assets from the CARES fund to the general fund to reimburse the general fund for pandemic related
expenditures.
75
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 13 FUND BALANCE
At December 31, 2020, a summary of the governmental fund balance classifications is as follows:
Other
Vehicle Governmental
General Debt Service Acquistion Funds Total
Nonspendable:
Prepaid items $21,206 $ - $ - $ - $21,206
Restricted for:
Debt service - 4,536,360 - - 4,536,360
Park improvements - - - 1,193,853 1,193,853
Street improvements - - - 84,619 84,619
Total restricted 0 4,536,360 0 1,278,472 5,814,832
Committed for:
Lions Park - - - 7,691 7,691
Assigned for:
Economic development - - - 61,340 61,340
Infrastructure improvements - - - 639,599 639,599
City facilities - - - 96,874 96,874
Old Village Phase 4 - - - 23,855 23,855
Manning & Hudson future stop light - - - 11,788 11,788
Railroad crossing improvements - - - 84,749 84,749
Manning and Highway 36 Interchange - - - 1,838 1,838
Debt service - 17,177 - - 17,177
Vehicle acquistion - - 1,716,283 - 1,716,283
Total assigned 0 17,177 1,716,283 920,043 2,653,503
Unassigned 5,212,435 - - (1,525,916) 3,686,519
Total fund balance $5,233,641 $4,553,537 $1,716,283 $680,290 $12,183,751
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, 2020, actual unassigned fund balance of the General Fund was 86%
of 2021 budgeted expenditures.
76
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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, 2020.
C. COMMITTED CONTRACTS
At December 31, 2020, the City had commitments of $908,307 for uncompleted construction contracts.
In addition, the City has entered into construction contracts totaling approximately $9,610,000 during
2021 for the Heritage Farms Street and Utility Improvements and the Old Village Phase 5 & 6 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.
77
CITY OF LAKE ELMO, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting
periods beginning after December 15, 2021.
Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2021.
Statement No. 93 Replacement of Interbank Offered Rates. The provisions of this Statement contain
multiple effective dates, the first being for reporting periods beginning after June 15, 2020.
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.
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.
78
REQUIRED SUPPLEMENTARY INFORMATION
79
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, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
2019 Actual
Amounts
Original Final
Revenues:
General property taxes $3,817,144 $3,817,144 $3,534,627 ($282,517) $2,966,393
Licenses and permits:
Business 46,175 46,175 60,816 14,641 14,090
Non-business 1,005,200 1,005,200 1,364,879 359,679 1,040,948
Total licenses and permits 1,051,375 1,051,375 1,425,695 374,320 1,055,038
Intergovernmental:
MSA - maintenance 158,582 158,582 173,566 14,984 159,509
Fire state aid 64,000 64,000 76,608 12,608 68,975
Other state aid 4,820 4,820 23,020 18,200 17,673
County and local 21,000 21,000 - (21,000) 23,750
Total intergovernmental 248,402 248,402 273,194 24,792 269,907
Charges for services 774,689 774,689 1,022,028 247,339 884,885
Fines and forfeits 50,000 50,000 33,584 (16,416) 36,696
Investment income 80,000 80,000 164,236 84,236 118,298
Miscellaneous 149,420 149,420 183,711 34,291 192,494
Total revenues 6,171,030 6,171,030 6,637,075 466,045 5,523,711
See accompanying notes to the required supplementary information.
80
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, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
2019 Actual
Amounts
Original Final
Expenditures:
General government:
Mayor and city council:
Current:
Personal services $27,786 $27,786 $27,792 ($6) $27,781
Supplies 1,636 1,636 1,755 (119) 1,078
Other services and charges 23,140 23,140 19,994 3,146 22,613
Total mayor and city council 52,562 52,562 49,541 3,021 51,472
Finance and Administration:
Current:
Personal services 341,413 341,413 261,246 80,167 458,074
Supplies 6,150 6,150 2,128 4,022 85,167
Other services and charges 277,525 277,525 341,927 (64,402) 171,800
Total finance and administration 625,088 625,088 605,301 19,787 715,041
Elections:
Current:
Personal services 7,250 7,250 9,655 (2,405)795
Other services and charges 2,750 2,750 3,093 (343) 1,844
Total elections 10,000 10,000 12,748 (2,748) 2,639
Communications:
Current:
Personal services 36,500 36,500 33,183 3,317 36,823
Other services and charges 10,635 10,635 9,721 914 11,904
Total communications 47,135 47,135 42,904 4,231 48,727
City Facilities:
Current:
Supplies 800 800 124 676 726
Other services and charges 20,696 20,696 28,202 (7,506) 30,263
Total city facilities 21,496 21,496 28,326 (6,830) 30,989
Engineering:
Current:
Other services and charges 40,000 40,000 30,000 10,000 38,482
Total engineering 40,000 40,000 30,000 10,000 38,482
Planning and Zoning:
Current:
Personal services 223,505 223,505 205,566 17,939 202,382
Supplies 200 200 110 90 567
Other services and charges 32,426 32,426 30,758 1,668 46,609
Total planning and zoning 256,131 256,131 236,434 19,697 249,558
Total general government 1,052,412 1,052,412 1,005,254 47,158 1,136,908
See accompanying notes to the required supplementary information.
81
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, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
2019 Actual
Amounts
Original Final
Expenditures (continued):
Public safety:
Police:
Current:
Contracted services $773,255 $773,255 $761,969 $11,286 $702,403
Other services and charges 1,800 1,800 - 1,800 -
Total police 775,055 775,055 761,969 13,086 702,403
Fire protection:
Current:
Personal services 440,438 440,438 406,657 33,781 444,303
Fire state aid 64,000 64,000 76,608 (12,608) 68,975
Supplies 44,875 44,875 29,640 15,235 36,959
Other services and charges 181,121 181,121 206,047 (24,926) 182,753
Total fire protection 730,434 730,434 718,952 11,482 732,990
Building inspection:
Current:
Personal services 506,274 506,274 319,006 187,268 274,337
Supplies 5,700 5,700 2,821 2,879 4,014
Other services and charges 58,528 58,528 776,664 (718,136) 166,256
Capital outlay - - - - 24,000
Total building inspection 570,502 570,502 1,098,491 (527,989) 468,607
Animal control:
Current:
Other services and charges 11,000 11,000 13,066 (2,066) 19,902
Prosecution:
Current:
Other services and charges 49,000 49,000 48,392 608 46,434
Emergency communications:
Current:
Other services and charges 3,350 3,350 900 2,450 1,933
Total public safety 2,139,341 2,139,341 2,641,770 (502,429) 1,972,269
See accompanying notes to the required supplementary information.
82
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, 2020
With Comparative Actual Amounts For The Year Ended December 31, 2019
919148
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
2019 Actual
Amounts
Original Final
Expenditures (continued):
Public works:
Current:
Personal services $489,695 $489,695 $538,411 ($48,716) $572,353
Supplies 245,677 245,677 188,759 56,918 257,440
Other services and charges 775,110 775,110 748,929 26,181 1,039,289
Total public works 1,510,482 1,510,482 1,476,099 34,383 1,869,082
Culture and Recreation:
Parks:
Current:
Personal services 220,434 220,434 148,001 72,433 117,755
Supplies 19,200 19,200 20,183 (983) 17,582
Other services and charges 140,314 140,314 141,882 (1,568) 128,642
Total culture and recreation 379,948 379,948 310,066 69,882 263,979
Total expenditures 5,082,183 5,082,183 5,433,189 (351,006) 5,242,238
Revenue over (under) expenditures 1,088,847 1,088,847 1,203,886 (115,039) 281,473
Other financing (uses):
Transfers in - - 765,079 765,079 -
Transfers out (1,088,847) (1,088,847) (1,049,508) 39,339 (742,935)
Total other financing (uses) (1,088,847) (1,088,847) (284,429) 804,418 (742,935)
Net change in fund balance $ - $ - 919,457 $689,379 (461,462)
Fund balance, January 1 4,314,184 4,775,646
Fund balance, December 31 $5,233,641 $4,314,184
See accompanying notes to the required supplementary information.
83
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
2020 2019 2018
Total OPEB liability:
Service cost $9,793 $9,525 $8,200
Interest 3,101 2,431 2,264
Changes of benefit terms - - -
Differences between expected and actual experience (14,291) - -
Changes in assumptions 6,912 (2,098) 2,246
Benefit payments - - -
Net change in total OPEB liability 5,515 9,858 12,710
Total OPEB liability - beginning 73,788 63,930 51,220
Total OPEB liability - ending $79,303 $73,788 $63,930
Covered-employee payroll $1,831,326 $1,605,997 $1,483,782
Total OPEB liability as a percentage of covered-employee payroll 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.
84
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%
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.
85
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%
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.
86
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%
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.
87
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%
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.
88
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 and measurement date
December 31,
2020
December 31,
2019
December 31,
2018
December 31,
2017
December 31,
2016
December 31,
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 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, 2015 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 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)
2015 $ - $61,166 ($61,166) N/A N/A
2016 - 59,136 (59,136) N/A N/A
2017 - 61,147 (61,147) N/A N/A
2018 - 65,533 (65,533) N/A N/A
2019 - 69,975 (69,975) N/A N/A
2020 - 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, 2015 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
NOTES TO RSI
December 31, 2020
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.
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
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%.
As recommended in the June 30, 2019 experience study, 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.
The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with
adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% 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.
91
CITY OF LAKE ELMO, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2020
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.
92
CITY OF LAKE ELMO, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2020
PERA – Public Employees Police and Fire Fund
2020 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017.
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.
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.
93
CITY OF LAKE ELMO, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2020
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.
94
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS
95
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET Statement 18
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2020
Special Capital
Revenue Project
Assets 2020 2019
Cash and investments $69,506 $2,362,211 $2,431,717 $2,146,948
Accrued interest receivable 321 4,915 5,236 7,122
Accounts receivable - 100,435 100,435 -
Due from other governmental units - - - 67,578
Due from other funds - 16,059 16,059 -
Special assessments receivable:
Deferred - 17,833 17,833 17,833
Total assets $69,827 $2,501,453 $2,571,280 $2,239,481
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $796 $70,284 $71,080 $53,560
Contracts and retainage payable - - - 29,727
Due to other funds - 1,455,847 1,455,847 521,122
Deposits payable - 75,000 75,000 75,000
Unearned revenue - 271,230 271,230 272,730
Total liabilities 796 1,872,361 1,873,157 952,139
Deferred inflows of resources:
Unavailable revenue - 17,833 17,833 17,833
Fund balance:
Restricted - 1,278,472 1,278,472 818,719
Committed 7,691 - 7,691 24,070
Assigned 61,340 858,703 920,043 932,586
Unassigned - (1,525,916) (1,525,916) (505,866)
Total fund balance 69,031 611,259 680,290 1,269,509
Total liabilities, deferred inflows
of resources, and fund balance $69,827 $2,501,453 $2,571,280 $2,239,481
With Comparative Totals For December 31, 2019
Total Nonmajor
Governmental Funds
96
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, 2020
With Comparative Totals For The Year Ended December 31, 2019
Special Capital
Revenue Project
Revenues:2020 2019
Intergovernmental $749,999 $ - $749,999 $572,062
Charges for services 87,778 163,435 251,213 150,557
Park dedication fees - 714,558 714,558 123,500
Investment income 22,638 45,326 67,964 57,206
Miscellaneous - - - 9,000
Total revenues 860,415 923,319 1,783,734 912,325
Expenditures:
Current:
Public works 4,289 12,982 17,271 6,524
Culture and recreation - - - 1,281
Economic development authority 46,371 - 46,371 71,609
Capital outlay:
Public works - 1,250,434 1,250,434 805,573
Culture and recreation - - - 205,841
Debt service:
Interest and fiscal charges 1,700 - 1,700 41,449
Total expenditures 52,360 1,263,416 1,315,776 1,132,277
Revenues over (under) expenditures 808,055 (340,097) 467,958 (219,952)
Other financing sources:
Transfers in 30,000 15,661 45,661 424,600
Transfers out (850,736) - (850,736)(43,638)
Issuance of debt - - - 2,156,864
Total other financing sources (820,736)15,661 (805,075) 2,537,826
Net change in fund balance (12,681) (324,436) (337,117) 2,317,874
Fund balance - January 1 81,712 935,695 1,017,407 (1,048,365)
Fund balance - December 31 $69,031 $611,259 $680,290 $1,269,509
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above 1,269,509
Reclassification of the CSAH 19/Hudson Blvd Interchange fund balance, now presented as non-major (252,102)
Fund balance - January 1, 2020 as reported on this statement $1,017,407
Governmental Funds
Total Nonmajor
97
CITY OF LAKE ELMO, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 20
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2020
Economic
Lions Park Development
Sign Program Authority
(207)(221)
Assets 2020 2019
Cash and investments $7,675 $61,831 $69,506 $85,131
Accrued interest receivable 16 305 321 303
Total assets $7,691 $62,136 $69,827 $85,434
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $796 $796 $2,222
Unearned revenue - - - 1,500
Total liabilities 0 796 796 3,722
Fund balance:
Committed 7,691 - 7,691 24,070
Assigned - 61,340 61,340 57,642
Total fund balance 7,691 61,340 69,031 81,712
Total liabilities and fund balance $7,691 $62,136 $69,827 $85,434
With Comparative Totals For December 31, 2019
Total Nonmajor
Special Revenue Funds
98
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, 2020
With Comparative Totals For The Year Ended December 31, 2019
Economic
Lions Park CARES Development
Sign Program Fund Authority
(207) (251) (221)
Revenues:2020 2019
Intergovernmental $ - $749,999 $ - $749,999 $9,236
Charges for services - - 87,778 87,778 108,097
Investment income 137 19,369 3,132 22,638 2,363
Total revenues 137 769,368 90,910 860,415 119,696
Expenditures:
Current:
General government - 4,289 - 4,289 5,616
Culture and recreation - - - - 1,281
Economic development authority - - 46,371 46,371 71,609
Debt service:
Interest and fiscal charges - - 1,700 1,700 1,700
Total expenditures 0 4,289 48,071 52,360 80,206
Revenues over (under) expenditures 137 765,079 42,839 808,055 39,490
Other financing sources (uses):
Transfers in - - 30,000 30,000 30,000
Transfers out - (765,079) (85,657) (850,736) (43,638)
Total other financing sources (uses)0 (765,079) (55,657) (820,736) (13,638)
Net change in fund balance 137 0 (12,818) (12,681) 25,852
Fund balances - January 1 7,554 - 74,158 81,712 55,860
Fund balances - December 31 $7,691 $0 $61,340 $69,031 $81,712
Special Revenue Funds
Total Nonmajor
99
CITY OF LAKE ELMO, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2020
Park Infrastructure
Dedication Reserve City Facilities Village Project
(404) (409) (411) (413)
Assets
Cash and investments $1,191,391 $516,297 $96,674 $ -
Accrued interest receivable 2,462 1,100 200 -
Accounts receivable - 100,435 - -
Due from other governmental units - - - -
Due from other funds - 16,059 - -
Special assessments receivable:
Deferred - 17,833 - -
Total assets $1,193,853 $651,724 $96,874 $0
Liabilities, Deferred Inflows of Resources,
and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ -
Contracts and retainage payable - - - -
Due to other funds - - - 378,736
Deposits payable - - - -
Unearned revenue - - - -
Total liabilities 0 0 0 378,736
Deferred inflows of resources:
Unavailable revenue - 17,833 - -
Fund balance (deficit):
Restricted 1,193,853 - - -
Assigned - 633,891 96,874 -
Unassigned - - - (378,736)
Total fund balance (deficit)1,193,853 633,891 96,874 (378,736)
Total liabilities, deferred inflows
of resources, and fund balance $1,193,853 $651,724 $96,874 $0
With Comparative Totals For December 31, 2019
100
Statement 22
Page 1 of 2
CSAH 15 / Manning and Manning Corridor CSAH 19 / 2019 Street
CSAH 14 Old Village 2018 Street Hudson Future and Safety Hudson Blvd and Utility
Realignment Phase 4 Improvements Stoplight Management Interchange Project
(414) (421) (422) (423) (424) (425) (426)
$ - $23,806 $90,141 $261,248 $ - $ - $ -
- 49 186 540 - - -
- - - - - - -
- - - - - - -
- - - - - - -
-
- - - - - - -
$0 $23,855 $90,327 $261,788 $0 $0 $0
$308 $ - $ - $ - $62 $ - $ -
- - - - - - -
9,239 - - - 3,024 565,561 5,731
- - - - - - -
- - - 250,000 - - -
9,547 0 0 250,000 3,086 565,561 5,731
- - - - - - -
- - 84,619 - - -
- 23,855 5,708 11,788 - - -
(9,547) - - - (3,086) (565,561) (5,731)
(9,547) 23,855 90,327 11,788 (3,086) (565,561) (5,731)
$0 $23,855 $90,327 $261,788 $0 $0 $0
101
CITY OF LAKE ELMO, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
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 $ - $ - $105,975 $ -
Accrued interest receivable - - 219 -
Accounts receivable - - - -
Due from other governmental units - - - -
Due from other funds - - - -
Special assessments receivable:
Deferred - - - -
Total assets $0 $0 $106,194 $0
Liabilities, Deferred Inflows of Resources,
and Fund Balance
Liabilities:
Accounts payable $307 $123 $215 $53,945
Contracts and retainage payable - - - -
Due to other funds 10,328 107,507 - 197,254
Deposits payable - - - -
Unearned revenue - - 21,230 -
Total liabilities 10,635 107,630 21,445 251,199
Deferred inflows of resources:
Unavailable revenue - - - -
Fund balance (deficit):
Restricted - - - -
Assigned - - 84,749 -
Unassigned (10,635) (107,630) - (251,199)
Total fund balance (deficit)(10,635) (107,630) 84,749 (251,199)
Total liabilities, deferred inflows
of resources, and fund balance $0 $0 $106,194 $0
102
Statement 22
Page 2 of 2
CSAH 15 Heritage Farms Manning and Tamarack Farm City Hall /
Manning Avenue Street & Utility Highway 36 Estates Street Fire Station
Phase 3 Improvements Interchange Improvements Bldg Project
(433) (434) (435) (436) (437)
2020 2019
$ - $ - $76,679 $ - $ - $2,362,211 $2,061,817
- - 159 - - 4,915 6,819
- - - - - 100,435 -
- - - - - - 67,578
- - - - - 16,059 -
- - - - - 17,833 17,833
$0 $0 $76,838 $0 $0 $2,501,453 $2,154,047
$ - $3,749 $ - $87 $11,488 $70,284 $51,338
- - - - - - 29,727
3,070 160,117 - 14,191 1,089 1,455,847 521,122
- - 75,000 - - 75,000 75,000
- - - - - 271,230 271,230
3,070 163,866 75,000 14,278 12,577 1,872,361 948,417
- - - - - 17,833 17,833
- - - - - 1,278,472 818,719
- - 1,838 - - 858,703 874,944
(3,070) (163,866) - (14,278) (12,577) (1,525,916) (505,866)
(3,070) (163,866) 1,838 (14,278) (12,577) 611,259 1,187,797
$0 $0 $76,838 $0 $0 $2,501,453 $2,154,047
Capital Project Funds
Total Nonmajor
103
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, 2020
With Comparative Totals For The Year Ended December 31, 2019
Park Infrastructure
Dedication Reserve City Facilities Village Project
(404) (409) (411) (413)
Revenues:
Intergovernmental $ - $ - $ - $ -
Charges for services - 100,435 - -
Park dedication fees 714,558 - - -
Investment income 24,505 8,813 1,717 -
Miscellaneous - - - -
Total revenues 739,063 109,248 1,717 0
Expenditures:
Current:
Public works 880 - - -
Capital outlay:
Public works 278,430 205,006 - -
Culture and recreation - - - -
Debt service:
Interest and fiscal charges - - - -
Total expenditures 279,310 205,006 0 0
Other financing sources (uses):
Transfers in - 15,661 - -
Issuance of debt - - - -
Total other financing sources (uses)0 15,661 0 0
Net change in fund balance 459,753 (80,097)1,717 0
Fund balances - January 1 734,100 713,988 95,157 (378,736)
Fund balances - December 31 $1,193,853 $633,891 $96,874 ($378,736)
104
Statement 23
Page 1 of 2
CSAH 15 / Manning and Manning Corridor CSAH 19 / 2019 Street
CSAH 14 Old Village 2018 Street Hudson Future and Safety Hudson Blvd and Utility
Realignment Phase 4 Improvements Stoplight Management Interchange Project
(414)(421)(422)(423)(424)(425)(426)
$ - $ - $ - $ - $ - $ - $ -
- - - - - - -
- - - - - - -
(564)604 975 4,643 - - -
- - - - - - -
(564)604 975 4,643 0 0 0
- - - - - 12,102 -
7,166 1,681 - - 2,451 301,357 -
- - - - - - -
- - - - - - -
7,166 1,681 0 0 2,451 313,459 0
- - - - - - -
- - - - - - -
0 0 0 0 0 0 0
(7,730) (1,077)975 4,643 (2,451) (313,459)0
(1,817) 24,932 89,352 7,145 (635) (252,102) (5,731)
($9,547) $23,855 $90,327 $11,788 ($3,086) ($565,561) ($5,731)
105
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, 2020
With Comparative Totals For The Year Ended December 31, 2019
Inwood and Railroad
CSAH 13 5th Street Crossing Old Village
Phase 2 Stoplight Improvements Phases 5 & 6
(427) (429) (430) (431)
Revenues:
Intergovernmental $ - $ - $ - $ -
Charges for services - - 63,000 -
Park dedication fees - - - -
Investment income - - 2,688 -
Miscellaneous - - - -
Total revenues 0 0 65,688 0
Expenditures:
Current:
Public works - - - -
Capital outlay:
Public works 6,632 107,630 9,928 188,421
Culture and recreation - - - -
Debt service:
Interest and fiscal charges - - - -
Total expenditures 6,632 107,630 9,928 188,421
Other financing sources (uses):
Transfers in - - - -
Issuance of debt - - - -
Total other financing sources (uses)0 0 0 0
Net change in fund balance (6,632)(107,630)55,760 (188,421)
Fund balances - January 1 (4,003) - 28,989 (62,778)
Fund balances - December 31 ($10,635) ($107,630)$84,749 ($251,199)
106
Statement 23
Page 2 of 2
CSAH 15 Heritage Farms Manning and Tamarack Farm City Hall /
Manning Avenue Street & Utility Highway 36 Estates Street Fire Station
Phase 3 Improvements Interchange Improvements Bldg Project
(433) (434) (435) (436) (437)
2020 2019
$ - $ - $ - $ - $ - $ - $562,826
- - - - - 163,435 42,460
- - - - - 714,558 123,500
- - 1,945 - - 45,326 54,843
- - - - - - 9,000
0 0 1,945 0 0 923,319 792,629
- - - - - 12,982 908
2,350 112,527 - 14,278 12,577 1,250,434 805,573
- - - - - - 205,841
- - - - - - 39,749
2,350 112,527 0 14,278 12,577 1,263,416 1,052,071
- - - - - 15,661 394,600
- - - - - - 2,156,864
0 0 0 0 0 15,661 2,551,464
(2,350) (112,527)1,945 (14,278) (12,577) (324,436) 2,292,022
(720) (51,339)(107) - - 935,695 (1,104,225)
($3,070) ($163,866) $1,838 ($14,278) ($12,577) $611,259 $1,187,797
Reconciliation of beginning fund balance to prior year ending fund balance:
Prior year ending fund balance reported above 1,187,797
Reclassification of the CSAH 19/Hudson Blvd Interchange fund balance, now presented as non-major (252,102)
Fund balance - January 1, 2020 as reported on this statement $935,695
Capital Project Funds
Total Nonmajor
107
CITY OF LAKE ELMO, MINNESOTA
BALANCE SHEET
DEBT SERVICE FUND BY BOND ISSUE
December 31, 2020
2009B GO 2010A GO 2010B GO 2011A GO 2012B GO
Improvement Improvement CIP Bonds Improvement Improvement
Bonds (316) Bonds (317) (318) Bonds (319) Bonds (321)
Assets
Cash and investments $17,005 $80,327 $178,687 $269,496 $ -
Accrued interest receivable 71 363 145 548 -
Property taxes receivable:
Due from county - 2,090 - 594 505
Special assessments receivable:
Due from county 101 - - 372
Delinquent - - - - 177
Deferred 875 6,430 - 15,187 40,860
Total assets $18,052 $89,210 $178,832 $285,825 $41,914
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $ -
Due to other funds - - - - 41,437
Total liabilities 0 0 0 0 41,437
Deferred inflows of resources:
Unavailable revenue 875 6,430 - 15,187 41,037
Fund balance (deficit):
Restricted - 82,780 178,832 270,638 (40,560)
Assigned 17,177 - - - -
Total fund balance (deficit)17,177 82,780 178,832 270,638 (40,560)
Total liabilities, deferred inflows of
resources, and fund balance $18,052 $89,210 $178,832 $285,825 $41,914
With Comparative Totals For December 31, 2019
108
Statement 24
2013A GO 2014A GO 2015A GO 2016A GO 2017A GO 2019 2018A GO
Improvement Improvement Improvement Improvement Improvement Improvement Equipment Cert.
Bonds (322) Bonds (323) Bonds (324) Bonds (326) Bonds (327) Bonds (329) Bonds (330)
2020 2019
$1,051,253 $1,022,479 $253,692 $700,538 $405,053 $580,709 $13,887 $4,573,126 $4,716,520
2,452 2,051 577 1,339 839 1,187 13 9,585 15,756
- 1,583 171 1,545 2,705 991 1,024 11,208 -
- - - - 582 - - 1,055 1,247
- - - 821 599 - - 1,597 2,668
11,220 184,782 376,720 675,626 515,368 348,532 - 2,175,600 2,537,785
$1,064,925 $1,210,895 $631,160 $1,379,869 $925,146 $931,419 $14,924 $6,772,171 $7,273,976
$ - $ - $ - $ - $ - $ - $ - $ - $400
- - - - - - - 41,437 26,239
000000041,437 26,639
11,220 184,782 376,720 676,447 515,967 348,532 - 2,177,197 2,540,453
1,053,705 1,026,113 254,440 703,422 409,179 582,887 14,924 4,536,360 4,706,884
- - - - - - - 17,177 -
1,053,705 1,026,113 254,440 703,422 409,179 582,887 14,924 4,553,537 4,706,884
$1,064,925 $1,210,895 $631,160 $1,379,869 $925,146 $931,419 $14,924 $6,772,171 $7,273,976
Total Debt Service Fund
109
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, 2020
With Comparative Totals For The Year Ended December 31, 2019
2009B GO 2010A GO 2010B GO 2011A GO 2012B GO 2013A GO
Improvement Improvement CIP Bonds Improvement Improvement Improvement
Bonds (316) Bonds (317) (318) Bonds (319) Bonds (321) Bonds (322)
Revenues:
General property taxes $ - $57,151 $206,908 $74,828 $63,669 $ -
Special assessments 5,284 8,270 - 5,554 18,068 5,835
Investment income 240 3,746 502 4,557 - 23,160
Total revenues 5,524 69,167 207,410 84,939 81,737 28,995
Expenditures:
Debt service:
Principal 60,000 75,000 165,000 90,000 90,000 110,000
Interest and fiscal charges 915 3,645 29,612 5,535 6,330 29,706
Total expenditures 60,915 78,645 194,612 95,535 96,330 139,706
Revenues over (under) expenditures (55,391) (9,478) 12,798 (10,596) (14,593) (110,711)
Other financing sources (uses):
Transfers in - - - - - -
Issuance of debt - - - - - -
Bond premium - - - - - -
Total other financing sources (uses)0 0 0 0 0 0
Net change in fund balance (55,391) (9,478) 12,798 (10,596) (14,593) (110,711)
Fund balances - January 1 72,568 92,258 166,034 281,234 (25,967) 1,164,416
Fund balances - December 31 $17,177 $82,780 $178,832 $270,638 ($40,560) $1,053,705
110
Statement 25
2014A GO 2015A GO 2016A GO 2017A GO 2018A Taxable 2019 2018A GO
Improvement Improvement Improvement Improvement Lease Revenue Improvement Equipment Cert.
Bonds (323) Bonds (324) Bonds (326) Bonds (327) Bonds (328) Bonds (329) Bonds (330)
2020 2019
$199,370 $21,543 $194,564 $340,691 $ - $124,786 $128,996 $1,412,506 $1,215,934
77,928 65,314 106,186 114,107 - 67,553 - 474,099 649,487
17,616 4,189 11,102 6,549 - 11,166 163 82,990 121,530
294,914 91,046 311,852 461,347 0 203,505 129,159 1,969,595 1,986,951
215,000 170,000 255,000 425,000 45,000 - 90,000 1,790,000 1,615,000
52,288 23,838 41,350 98,564 40,657 61,994 24,165 418,599 401,037
267,288 193,838 296,350 523,564 85,657 61,994 114,165 2,208,599 2,016,037
27,626 (102,792) 15,502 (62,217) (85,657) 141,511 14,994 (239,004) (29,086)
- - - - 85,657 - - 85,657 111,497
- - - - - - - - 4,152
- - - - - - - - 168,168
0 0 0 0 85,657 0 0 85,657 283,817
27,626 (102,792) 15,502 (62,217) 0 141,511 14,994 (153,347) 254,731
998,487 357,232 687,920 471,396 - 441,376 (70) 4,706,884 4,452,153
$1,026,113 $254,440 $703,422 $409,179 $0 $582,887 $14,924 $4,553,537 $4,706,884
Total Debt Service Fund
111
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112
STATISTICAL SECTION (UNAUDITED)
113
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114
This part of the City of Lake Elmo, Minnesota's Comprehensive Annual 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
115
CITY OF LAKE ELMO, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2020 2019 2018 2017
Governmental activities:
Net investment in capital assets $29,694,288 $24,771,065 $15,396,520 $8,883,320
Restricted 8,171,161 8,596,759 10,121,648 5,057,169
Unrestricted 5,284,397 4,231,363 1,086,636 4,818,383
Total governmental activities net position $43,149,846 $37,599,187 $26,604,804 $18,758,872
Business-type activities:
Net investment in capital assets $44,371,375 $33,052,649 $18,382,934 $12,180,378
Restricted - - - 2,695,734
Unrestricted 18,578,807 16,528,968 13,842,382 9,151,417
Total business-type activities net position $62,950,182 $49,581,617 $32,225,316 $24,027,529
Primary government:
Net investment in capital assets $74,065,663 $57,823,714 $33,779,454 $21,063,698
Restricted 8,171,161 8,596,759 10,121,648 7,752,903
Unrestricted 23,863,204 20,760,331 14,929,018 13,969,800
Total primary government net position $106,100,028 $87,180,804 $58,830,120 $42,786,401
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.
116
Table 1
2016 2015 2014 2013 2012 2011
$9,032,535 $8,723,329 $7,957,840 $9,056,353 $8,782,840 $8,553,984
4,704,133 3,446,142 1,106,200 1,225,849 4,205,247 2,664,689
4,136,292 3,942,646 5,405,920 4,593,463 918,996 2,555,596
$17,872,960 $16,112,117 $14,469,960 $14,875,665 $13,907,083 $13,774,269
$12,506,474 $10,170,351 $10,567,418 $6,855,807 $6,788,377 $6,422,782
1,473,164 1,876,119 2,387,312 2,612,569 39,153 -
6,400,375 3,577,285 1,100,422 1,846,681 1,105,847 1,449,340
$20,380,013 $15,623,755 $14,055,152 $11,315,057 $7,933,377 $7,872,122
$21,539,009 $18,893,680 $18,525,258 $15,912,160 $15,571,217 $14,976,766
6,177,297 5,322,261 3,493,512 3,838,418 4,244,400 2,664,689
10,536,667 7,519,931 6,506,342 6,440,144 2,024,843 4,004,936
$38,252,973 $31,735,872 $28,525,112 $26,190,722 $21,840,460 $21,646,391
117
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2020 2019 2018 2017
Expenses
Governmental activities:
General government $1,008,916 $1,181,219 $1,266,269 $1,503,251
Public safety 2,681,784 2,058,419 2,161,082 1,528,253
Public works 4,012,661 3,728,247 2,192,092 2,800,044
Culture and recreation 428,083 361,730 524,445 1,299,551
Economic Development Authority 46,371 71,609 47,702 -
Interest and fees on long-term debt 363,988 395,106 352,376 225,910
Total governmental activities expenses 8,541,803 7,796,330 6,543,966 7,357,009
Business-type activities:
Water 2,383,252 1,940,148 2,068,178 2,022,446
Sewer 1,481,586 1,082,997 846,032 1,030,058
Storm sewer 753,177 469,765 315,967 213,514
Total business-type activities expenses 4,618,015 3,492,910 3,230,177 3,266,018
Total primary government expenses $13,159,818 $11,289,240 $9,774,143 $10,623,027
Program revenues
Governmental activities:
Charges for services:
General government $421,792 $553,870 $379,378 $206,856
Public safety 2,146,319 1,574,359 1,938,163 2,101,890
Public works 243,060 126,721 - -
Culture and recreation 2,812 1,430 - -
Economic Development Authority 87,778 99,690 78,573 -
Operating grants and contributions 1,039,823 795,483 248,915 229,960
Capital grants and contributions 4,823,628 11,076,353 4,970,565 2,290,265
Total governmental activities program revenues 8,765,212 14,227,906 7,615,594 4,828,971
Business-type activities:
Charges for services:
Water 1,239,404 962,003 951,985 2,628,848
Sewer 432,583 306,041 252,614 2,435,749
Storm sewer 369,689 380,645 322,700 289,375
Operating grants and contributions 21,893 122,350 - -
Capital grants and contributions 15,636,661 14,114,787 7,466,627 1,489,922
Total business-type activities 17,700,230 15,885,826 8,993,926 6,843,894
Total primary government program revenues $26,465,442 $30,113,732 $16,609,520 $11,672,865
118
Table 2
Page 1 of 2
2016 2015 2014 2013 2012 2011
$1,358,370 $1,134,132 $1,072,888 $1,103,337 $1,093,204 $1,036,038
1,308,360 1,344,282 1,530,609 1,277,798 1,302,857 1,107,050
1,698,566 1,377,969 1,032,426 1,273,977 891,169 1,008,686
660,947 639,006 448,361 424,687 362,432 247,845
- - - - - -
178,266 215,611 165,028 133,694 316,039 266,730
5,204,509 4,711,000 4,249,312 4,213,493 3,965,701 3,666,349
1,409,832 1,363,043 1,069,511 958,870 872,786 845,474
380,650 250,866 353,438 119,370 53,903 73,797
150,302 103,536 149,887 86,989 73,590 142,517
1,940,784 1,717,445 1,572,836 1,165,229 1,000,279 1,061,788
$7,145,293 $6,428,445 $5,822,148 $5,378,722 $4,965,980 $4,728,137
$51,009 $42,706 $45,161 $32,778 $48,476 $22,058
1,752,522 866,708 496,916 414,472 379,557 283,813
- 3,615 - 2,647 3,256 3,058
- 26,214 10,753 17,000 9,341 -
- - - - - -
235,214 249,094 204,462 208,276 160,060 184,476
1,452,469 2,038,940 557,601 1,364,622 160,444 222,488
3,491,214 3,227,277 1,314,893 2,039,795 761,134 715,893
1,801,228 1,850,240 1,291,091 596,421 699,159 575,534
1,315,948 1,523,067 741,054 53,142 65,737 53,012
213,233 229,252 214,915 191,087 171,229 235,252
- - - - - 17,000
3,464,567 - 1,159,222 3,781,528 115,127 75,885
6,794,976 3,602,559 3,406,282 4,622,178 1,051,252 956,683
$10,286,190 $6,829,836 $4,721,175 $6,661,973 $1,812,386 $1,672,576
119
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2020 2019 2018 2017
Net (expense) revenue:
Governmental activities $223,409 $6,431,576 $1,071,628 ($2,528,038)
Business-type activities 13,082,215 12,392,916 5,763,749 3,577,876
Total primary government, net 13,305,624 18,824,492 6,835,377 1,049,838
General revenues and other changes in net position:
Governmental activities:
General property taxes 4,960,342 4,181,914 3,610,106 3,040,413
Unrestricted grants and contributions 4,337 4,956 6,868 2,749
Unrestricted investment earnings 348,766 331,010 115,583 48,987
Miscellaneous - - - 158,350
Gain on disposal of capital assets 13,805 44,927 8,991 -
Transfers - - 840 -
Total governmental activities 5,327,250 4,562,807 3,742,388 3,250,499
Business-type activities:
Unrestricted grants and contributions - - 956 -
Unrestricted investment earnings 286,350 411,206 96,425 46,757
Extraordinary item - 4,552,179 - -
Transfers - - (840) -
Total business-type activities 286,350 4,963,385 96,541 46,757
Total primary government $5,613,600 $9,526,192 $3,838,929 $3,297,256
Change in net position:
Governmental activities $5,550,659 $10,994,383 $4,814,016 $722,461
Business-type activities 13,368,565 17,356,301 5,860,290 3,624,633
Total primary government change in net position $18,919,224 $28,350,684 $10,674,306 $4,347,094
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.
120
Table 2
Page 2 of 2
2016 2015 2014 2013 2012 2011
($1,713,295) ($1,483,723) ($2,934,419) ($2,173,698) ($3,204,567) ($2,950,456)
4,854,192 1,885,114 1,833,446 3,456,949 50,973 (105,105)
3,140,897 401,391 (1,100,973) 1,283,251 (3,153,594) (3,055,561)
3,226,739 3,204,119 3,200,291 3,231,609 3,183,078 2,793,776
8,584 2,749 2,749 2,749 - 10,628
43,228 46,589 87,586 35,259 111,705 94,501
52,479 73,738 125,400 1,833 42,599 20,405
- - - 8,979 - -
143,105 220,842 (887,312) - - (59,637)
3,474,135 3,548,037 2,528,714 3,280,429 3,337,382 2,859,673
748 - - - - -
44,423 39,757 19,337 30,346 10,282 10,789
- - - - - -
(143,105)(220,842)887,312 - - 59,637
(97,934)(181,085)906,649 30,346 10,282 70,426
$3,376,201 $3,366,952 $3,435,363 $3,310,775 $3,347,664 $2,930,099
$1,760,840 $2,064,314 ($405,705)$1,106,731 $132,815 ($90,783)
4,756,258 1,704,029 2,740,095 3,487,295 61,255 (34,679)
$6,517,098 $3,768,343 $2,334,390 $4,594,026 $194,070 ($125,462)
121
CITY OF LAKE ELMO, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2020 2019 2018 2017
General Fund:
Nonspendable $21,206 $28,162 $18,951 $410,193
Committed - - - 200,000
Unassigned 5,212,435 4,286,022 4,756,695 3,499,133
Total general fund 5,233,641 4,314,184 4,775,646 4,109,326
All other governmental funds:
Nonspendable - - 395 675,000
Restricted 5,814,832 5,973,451 6,133,168 2,849,956
Committed 7,314 24,070 11,003 -
Assigned 2,653,880 1,746,202 1,198,909 1,307,216
Unassigned (1,525,916) (757,968) (3,043,623) (681,681)
Total all other governmental funds 6,950,110 6,985,755 4,299,852 4,150,491
Total governmental funds $12,183,751 $11,299,939 $9,075,498 $8,259,817
122
Table 3
2016 2015 2014 2013 2012 2011
$409,222 $432,306 $638,963 $859,072 $1,024,433 $1,206,209
200,000 - - - - -
3,279,815 2,754,976 2,542,038 2,318,310 2,414,692 1,707,711
3,889,037 3,187,282 3,181,001 3,177,382 3,439,125 2,913,920
- 3,908 - - - -
3,248,230 2,477,730 717,781 743,976 3,959,111 4,691,748
- - - - - 7,114
1,504,656 1,768,742 2,943,525 2,252,931 1,244,900 654,358
(418,169)(431,755)(693,904)(885,360) (1,670,915) (1,353,754)
4,334,717 3,818,625 2,967,402 2,111,547 3,533,096 3,999,466
$8,223,754 $7,005,907 $6,148,403 $5,288,929 $6,972,221 $6,913,386
123
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2020 2019 2018 2017
Revenues:
General property taxes $4,947,133 $4,182,327 $3,610,508 $3,042,074
Licenses and permits 1,425,695 1,055,038 1,317,648 2,046,462
Intergovernmental 1,023,193 2,819,961 247,178 1,023,864
Charges for services 1,273,241 1,079,342 899,808 137,920
Fines and forfeits 33,584 36,696 49,203 41,418
Special assessments 474,099 649,487 1,398,155 455,493
Park dedication fees 714,558 123,500 502,802 265,783
Investment earnings 348,766 331,010 115,583 48,987
Miscellaneous 183,711 201,494 129,455 265,133
Total revenues 10,423,980 10,478,855 8,270,340 7,327,134
Expenditures:
Current:
General government 1,005,254 1,136,908 1,208,145 1,502,904
Public safety 2,641,770 1,948,269 1,644,159 1,470,726
Public works 1,493,370 1,875,606 1,227,521 1,185,828
Culture and recreation 310,066 265,260 241,761 603,292
Economic Development Authority 46,371 71,609 47,702 -
Debt service:
Principal 1,790,000 1,615,000 1,175,000 910,000
Interest and fiscal charges 420,299 454,814 230,822 463,570
Capital outlay 1,846,843 4,354,643 4,552,089 5,860,917
Total expenditures 9,553,973 11,722,109 10,327,199 11,997,237
Excess (deficiency) of revenues over expenditures 870,007 (1,243,254) (2,056,859) (4,670,103)
Other financing sources (uses):
Issuance of debt - 2,860,000 1,866,000 4,565,000
Premium on issuance of debt - 168,168 - 166,068
(Discount) on issuance of debt - - - (26,302)
Proceeds from sale of capital assets 13,805 44,927 8,991 1,400
Transfers in 1,900,244 1,181,173 56,209 -
Transfers out (1,900,244) (786,573) (173,190) -
Total other financing sources (uses)13,805 3,467,695 1,758,010 4,706,166
Net change in fund balance $883,812 $2,224,441 ($298,849) $36,063
Debt service as a percentage of noncapital expenditures 26.8%26.1%24.2%22.4%
Debt service as a percentage of total expenditures 23.1%17.7%13.6%11.4%
124
Table 4
2016 2015 2014 2013 2012 2011
$3,231,674 $3,222,216 $3,203,111 $3,231,609 $3,221,733 $2,790,773
1,713,918 828,494 451,953 374,974 330,819 230,419
282,874 296,902 413,968 1,704,178 237,254 276,638
38,608 35,796 30,192 6,113 5,726 14,691
49,505 48,739 48,647 52,110 58,385 63,819
897,323 1,316,239 115,424 180,023 136,150 153,536
171,708 138,158 274,257 - - -
43,228 46,415 87,467 35,127 111,737 94,066
77,491 99,055 165,319 57,260 87,562 48,217
6,506,329 6,032,014 4,790,338 5,641,394 4,189,366 3,672,159
1,358,306 1,094,723 1,046,906 1,527,732 1,034,712 1,016,898
1,262,040 1,203,765 1,198,546 1,174,145 1,109,937 996,733
893,644 686,401 585,071 614,270 446,541 447,629
500,689 457,749 368,276 301,404 260,404 168,747
- - - - - -
826,219 667,342 585,000 3,348,000 406,000 344,000
242,392 226,611 157,649 179,018 309,081 285,712
3,126,782 2,729,512 2,881,437 1,784,914 1,428,856 1,029,183
8,210,072 7,066,103 6,822,885 8,929,483 4,995,531 4,288,902
(1,703,743) (1,034,089) (2,032,547) (3,288,089)(806,165)(616,743)
2,690,000 1,620,000 2,850,000 1,604,797 865,000 845,000
102,877 32,137 31,520 - - -
(14,392)(11,386) - - - -
- 30,000 - - - -
143,105 220,842 10,501 - - 204,972
- - - - - (315,360)
2,921,590 1,891,593 2,892,021 1,604,797 865,000 734,612
$1,217,847 $857,504 $859,474 ($1,683,292)$58,835 $117,869
21.0%20.6%18.8%49.4%20.0%19.3%
13.0%12.7%10.9%39.5%14.3%14.7%
125
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126
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
2011 $1,142,936,500 $12,678,177 $221,613 $12,899,790 $12,899,790 21.882 1.13%
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%
(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
127
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
2011 19.448 2.384 21.832 20.300 - 34.330 29.772 1.725 - 4.275 2.664 76.293 92.873
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
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
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
Watershed Districts
128
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 $244,108 1 1.15% 171,806 3 1.33%
Dakota Upreit LP 240,344 2 1.13% - -
Bremer Financial Services Inc 220,998 3 1.04% 195,538 2 1.52%
MLL High Pointe LLC 200,950 4 0.95% - -
Eagle Point Medical Building LLC 144,160 5 0.68% - -
HOA Hotels LLC 143,396 6 0.67% - -
MHC Cimarron LLC 139,482 7 0.66% - -
HC Golf Land LLC 134,684 8 0.63% - -
Auto-Owners Life Insurance Co. 99,104 9 0.47% - -
Danate Proper Inv I LLC 81,068 10 0.38% - -
HSRE-MN High Pointe LLC - - 239,610 1 1.86%
Moline Plow - - 139,208 4 1.08%
Lake Elmo Foundation, Inc - - 138,922 5 1.08%
Lakeland Harbor SPE LLC - - 134,090 6 1.04%
United Land LLC - - 119,478 7 0.93%
United Properties Inv, LLC - - 109,468 8 0.85%
Davis Estates LTD - - 81,328 9 0.63%
Bri-mar Co Inc. Etal. - - 63,518 10 0.49%
Total $1,648,294 7.76%$1,392,966 10.80%
Source: Washington County Taxation Division
2020 2011
129
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
2011 $2,789,559 $2,745,785 $2,692,423 98.06%
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 4,907,782 99.24%
(1) Tax Levy adjusted for powerline and market value credits and AG program credits prior to 2016
130
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
$53,348 $2,745,771 100.00%$2 0.00%
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 2,947,658 99.91%2,331 0.09%
13,239 3,588,098 99.88%2,990 0.12%
19,244 4,168,303 99.83%4,103 0.17%
- 4,907,782 99.24%40,177 0.76%
131
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132
CITY OF LAKE ELMO, MINNESOTA
WATER AND SANITARY SEWER CHARGES BY CUSTOMER Table 9
Last Ten Fiscal Years
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Water (in millions of gallons):
Residential 203,453 173.925 96.882 93.513 98.044 84.007 98.573 120.676 154.747 105.290
Commercial service 157,170 87.935 22.189 16.603 29.379 21.653 12.156 8.253 10.405 6.872
Total gallons 360,623 261.860 119.071 110.116 127.423 105.660 110.729 128.929 165.152 112.162
Total direct rate per 1,000 gallons:
Residential 2.12 2.12 2.06 2.00 2.14 2.14 2.14 2.14 2.14 2.14
Commercial service 3.30 3.30 3.20 3.11 3.11 3.11 3.11 3.11 3.11 3.11
Sanitary Sewer (in millions of gallons):
Residential (1) 46,170 41.003 32.409 38.340 6.812 3.794 - - - -
Commercial service 11,779 12.943 12.267 6.807 9.125 8.179 6.532 6.149 6.172 6.961
Total gallons 57,949 53.946 44.676 45.147 15.937 11.973 6.532 6.149 6.172 6.961
Total direct rate per 1,000 gallons 4.65 4.60 4.55 4.50 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
133
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
2011 $2,440,000 $196,000 $5,175,000 $ -
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
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
134
Table 10
Business-Type
Activities
Total G.O. Utility Percentage
Governmental Revenue Total Primary of Personal Per
Activities Bonds Government Income Capita
$7,811,000 $4,640,000 $12,451,000 3.0%$1,543
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
15,790,432 20,105,366 35,895,798 5.4%3,164
135
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
2011 $2,440,000 $196,000 $5,175,000 $4,640,000
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
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
136
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)
$12,451,000 ($3,534,742)$8,916,258 0.78%$1,105
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
35,014,798 (4,530,993) 30,483,805 1.60%2,745
137
CITY OF LAKE ELMO, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 12
As of December 31, 2020
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable*Debt
Overlapping debt:
Independent School District # 622 $366,000,000 38%$140,451,832
Independent School District # 832 42,470,000 81%34,315,760
Independent School District # 834 87,205,000 18%15,260,875
Washington County 123,045,000 5%6,644,430
Metropolitan Council 1,688,625,662 7%113,137,919
Total overlapping debt 309,810,816
City direct debt $15,790,432 100%15,790,432
Total direct and overlapping debt $325,601,248
*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.
138
CITY OF LAKE ELMO, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 13
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2020
Market value $1,901,067,300
Applicable percentage 3%
Debt limit 57,032,019
Debt applicable to limit:
Total bonded debt 35,895,798
Less:
Special assessment bonds (13,159,432)
Lease revenue bonds (881,000)
Utility revenue bonds (20,105,366)
Amount set aside for repayment of G.O. debt (192,574)
1,557,426
Legal debt margin $55,474,593
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
2011 8,069 $31,126,713 $2,148,203 $28,978,510 6.90% $266
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 1,557,426 55,474,593 2.73% 140
Legal Debt Margin Calculation for Fiscal Years 2011 Through 2020
139
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
2011 $891,587 $516,157 $375,430 $40,000 $190,094 163%
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%
(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)
140
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)
2011 8,069 $409,203 $50,713 5.8%5.2%
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%
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.
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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)12,000 1 50.7% 10,100 1 70.3%
Andersen Corp (Bayport)5,000 2 21.1% - - -
Woodwinds Health (Woodbury)1,421 3 6.0% 485 5 3.4%
Washington County (Stillwater)1,258 4 5.3% - - -
ISD 834 (Stillwater)1,143 5 4.8% 1,055 2 7.3%
Healtheast Care/St. Johns Hospital (Maplewood)973 6 4.1% - - -
MN Correctional Facility (Oak Park Heights)515 7 2.2% - - -
Presbyterian Homes/Boutwells (Oak Park Heights) 500 8 2.1% - - -
Ecowater Systems, Inc. (Woodbury)440 9 1.9% 400 7 2.8%
Bremer Bank Operations Ctr (Lake Elmo)425 10 1.8% 400 6 2.8%
The Hartford (Woodbury) - - - 1,021 3 7.1%
Imation (Oakdale) - - - 500 4 3.5%
High Pointe Health Campus (Lake Elmo) - - - 180 8 1.3%
Lake Elmo Inn Inc. - - - 125 10 0.9%
Machine Shed/Wildwood Inn (Lake Elmo) - - - 110 9 0.8%
(1)City staff estimate
2020 2011
143
CITY OF LAKE ELMO, MINNESOTA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2020 2019 2018 2017
General Government:
Administration 1.98 2.70 2.70 2.45
Finance 0.72 1.05 1.05 1.20
Planning and Zoning 1.95 2.10 2.10 2.21
Total General Government 4.65 5.85 5.85 5.86
Public Safety:
Fire 1.42 3.80 3.80 3.80
Building Inspections 4.91 4.20 4.20 4.21
Total Public Safety 6.33 8.00 8.00 8.01
Public Works:
Streets and Roadways 4.80 4.80 4.80 4.55
Parks and Recreation:
Parks 2.25 2.20 2.20 3.00
Communications 0.42 0.50 0.50 -
Total Governmental Activities 18.45 21.35 21.35 21.42
Business-type Activities:
Water Utility 2.75 2.50 2.50 2.00
Sewer Utility 1.40 1.15 1.15 1.66
Storm Sewer Utility 0.90 0.80 0.80 0.80
Total Business-Type Activities 5.05 4.45 4.45 4.46
Total 23.50 25.80 25.80 25.88
Source: City's Adopted Budgets
Full-Time-Equivalent Employees as of December 31,
144
Table 17
2016 2015 2014 2013 2012 2011
2.45 3.20 3.55 3.55 3.15 3.15
1.20 0.80 1.25 1.25 0.50 0.50
2.21 2.75 2.70 2.95 1.55 1.55
5.86 6.75 7.50 7.75 5.20 5.20
3.80 1.50 1.55 2.05 1.60 1.10
4.21 3.15 1.55 1.30 0.95 0.95
8.01 4.65 3.10 3.35 2.55 2.05
4.55 3.90 3.20 3.21 3.05 3.05
3.00 1.85 3.30 2.74 2.52 2.52
- 0.70 0.35 0.40 0.15 0.15
21.42 17.85 17.45 17.45 13.47 12.97
2.00 2.45 2.60 2.10 1.85 1.85
1.66 1.30 0.70 0.70 0.30 0.30
0.00 0.00 0.00 0.00 0.00 0.00
3.66 3.75 3.30 2.80 2.15 2.15
25.08 21.60 20.75 20.25 15.62 15.12
Full-Time-Equivalent Employees as of December 31,
145
CITY OF LAKE ELMO, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2020 2019 2018 2017
Planning and Zoning:
Conditional use permits 1 6 6 5
Interim use permits - - - 2
Minor subdivisions - 1 1 1
Plats / planned unit developments 5 13 13 10
Rezonings 1 4 4 5
Site plans 3 - - 1
Variances 5 6 6 6
Fire:
Total emergency responses 546 461 461 456
EMS responses 317 317 317 313
Fire responses 229 144 144 143
Building Inspections:
Residential permit valuations (thousands of dollars) $88,038 $113,913 $113,913 $86,710
Commercial permit valuations (thousands of dollars)$11,761 $3,217 $3,217 $1,185
New residential units (1)263 245 245 299
New commercial units 19 - - 1
Water Utility:
Number of customers 3,559 2,317 2,317 1,727
Average quarterly consumption (2)123 56 56 28
(millions of gallons)
Sanitary Sewer Utility:
Number of customers 2,363 1,253 1,253 712
Average quarterly flow (3)18 11 11 12
(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 flows
146
Table 18
2016 2015 2014 2013 2012 2011
3 2 4 2 3 -
2 1 1 1 - 3
2 2 - 2 1 -
11 9 17 1 - -
3 2 11 2 7 -
1 - - 2 1 -
4 2 2 5 4 6
430 429 358 448 399 315
268 274 237 280 262 195
162 32 21 28 28 24
$119,301 $50,401 $23,032 $19,979 $20,320 $16,133
$2,003 $1,952 $7,309 $966 $2,351 $2,590
240 140 41 32 31 24
1 1 3 - - -
1,538 1,234 1,073 1,051 1,016 998
18 18 19 21 15 14
321 96 45 29 29 29
14 74 77 77 75 71
147
CITY OF LAKE ELMO, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 19
Last Ten Fiscal Years
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Fire:
Stations 2 2 2 2 2 2 2 2 2 2
Public Works:
Bituminous streets (miles)92 91 88 86 80 71 71 63 63 63
Gravel streets (miles)0.5 0.5 0.5 2 2 2 2 2 2 2
Storm sewer (miles)48 33 33 30 30 25 25 25 25 25
Parks & Recreation:
Acres of parkland 427 427 427 420 420 420 420 420 420 420
Number of parks 24 24 24 17 17 17 17 17 17 17
Water Utility:
Water towers 3 3 3 3 3 3 3 2 2 2
Miles of watermain 73 58 58 50 50 43 40 39 37 37
Number of fire hydrants 707 559 559 415 415 378 351 293 280 280
Number of wells 3 - - - - - - - - -
Number of booster stations 1 - - - - - - - - -
Sanitary Sewer Utility:
Miles of sanitary sewer 32 29 29 8 8 4 3 3 3 3
Lift Stations 7 5 5 4 4 4 4 3 3 3
Sources: Various City Department's annual financial report statistics
148