HomeMy WebLinkAbout2024 Annual Comprehensive Financial ReportCity of Lake Elmo,
Minnesota
Annual Comprehensive
Financial Report
For The Year Ended December 31, 2024
Prepared by:
Finance Department
THE CITY OF
LAKE ELMO
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS
INTRODUCTORY SECTION:
LetterOf Transmittal..................................................................................................................................................... 2
Certificate Of Achievement For
Excellence In Financial Reporting........................................................................................................................... 7
CityCouncil And Officials............................................................................................................................................ 8
OrganizationalChart ..................................................................................................................................................... 9
FINANCIAL SECTION:
INDEPENDENT AUDITOR'S REPORT....................................................................
REQUIRED SUPPLEMENTARY INFORMATION:
Management's Discussion and Analysis...............................................................................................
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements
Statementof Net Position..............................................................................................................
Statementof Activities..................................................................................................................
Fund Financial Statements
Balance Sheet — Governmental Funds...........................................................................................
Reconciliation of the Balance Sheet — Governmental Funds
to the Statement of Net Position.............................................................................................
Statement of Revenues, Expenditures, and
Changes in Fund Balances — Governmental Funds..................................................................
Reconciliation of Changes in Fund Balances of Governmental Funds
to the Statement of Activities.................................................................................................
Statement of Net Position — Proprietary Funds...............................................................................
Statement of Revenues, Expenses, and
Changes in Net Position — Proprietary Funds..........................................................................
Statement of Cash Flows — Proprietary Funds................................................................................
Notes to the Basic Financial Statements...............................................................................................
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule — General Fund.................................................................................
Schedule of City's Proportionate Share of the Net Pension Liability .....................................................
Schedule of City Pension Contributions...............................................................................................
Schedule of Changes in Net Pension Liability (Asset) — Firefighters Relief Association ........................
Schedule of Changes in City's Net OPEB Liability..............................................................................
Schedule of City OPEB Contributions..................................................................................................
Notes to the Required Supplementary Information...............................................................................
11
15
26
27
28
30
31
33
34
35
36
38
73
75
76
77
78
79
80
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS (Continued)
SUPPLEMENTARY INFORMATION:
Combining Balance Sheet — Nonmajor Governmental Funds................................................................................. 90
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances — Nonmajor Governmental Funds.........................................................................
91
Combining Balance Sheet — Nonmajor Special Revenue Funds.............................................................................
92
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances — Nonmajor Special Revenue Funds......................................................................
93
Combining Balance Sheet — Nonmajor Capital Project Funds................................................................................
94
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances — Nonmajor Capital Project Funds........................................................................
97
Supplemental Combining Balance Sheet — Debt Service Fund.............................................................................
100
Supplemental Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balance — Debt Service Fund.............................................................................................
102
Scheduleof Indebtedness....................................................................................................................................
104
STATISTICAL SECTION (UNAUDITED):
Financial Trends
NetPosition by Component................................................................................................................................
107
Changesin Net Position......................................................................................................................................
109
Fund Balances — Governmental Funds................................................................................................................
113
Changes in Fund Balances — Governmental Funds...............................................................................................
115
Revenue Capacity
Tax Capacity and Estimated Actual Value of Taxable Property...........................................................................
117
Direct and Overlapping Property Tax Rates.........................................................................................................
118
PrincipalProperty Taxpayers..............................................................................................................................
119
Property Tax Levies and Collections...................................................................................................................
120
Water and Sanitary Sewer Charges by Customer.................................................................................................
121
Debt Capacity
Ratios of Outstanding Debt by Type...................................................................................................................
122
Ratios of Net General Bonded Debt....................................................................................................................
123
Direct and Overlapping Governmental Activities Debt........................................................................................
124
LegalDebt Margin Information..........................................................................................................................
125
PledgedRevenue Coverage.................................................................................................................................
126
Demographic and Economic Information
Demographic and Economic Statistics.................................................................................................................
127
PrincipalEmployers...........................................................................................................................................
128
Operating Information
Full -Time Equivalent Employees By Function/Program......................................................................................
129
Operating Indicators by Function/Program..........................................................................................................
131
Capital Asset Statistics by Function/Program......................................................................................................
133
OTHER REQUIRED REPORTS AND SCHEDULES:
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
GovernmentAuditing Standards......................................................................................................................... 135
Scheduleof Findings and Responses.......................................................................................................................... 137
CorrectiveAction Plans............................................................................................................................................. 138
INTRODUCTORY
SECTION
THE CITY OF
LAKE ELMO
June 23, 2025
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, 2024.
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 Schlenner Wenner 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, 2024, 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, 2024, 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, 2024 as the City did not participate in any programs that required this additional independent audit.
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 2024 population of 14,033, which
represents 5,206 households.
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the City's character
in a fiscally responsible manner in partnership with our community.
3880 Laverne Ave N I Lake Elmo I MN 55042 1 (651) 747-3900 1 lakeelmo.gov
THE CITY OF
LAKE ELMO
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 Ehno 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 to
compile a preliminary balanced budget for submission to the City Council. The preliminary balanced budget is presented to
the City Council in September each year so that the preliminary property tax levy can be submitted to Washington County by
the annual due date. The preliminary property tax levy may be decreased but not increased. The 2024 Adopted Budget and
final property tax levy was required to be adopted by and submitted to Washington County by December 28, 2023. 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. Annual
budget appropriations are adopted for the General Fund, Debt Service Funds, and Capital Funds. Quarterly budget to actual
comparison reports are provided to the City Council to keep them apprised of the financial performance of the City.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the broader
perspective of the specific environment within which the City of Lake Elmo operates.
LOCAL ECONOMY
Lake Elmo is home to numerous businesses that are leaders in their respective industries. New residential developments platted
since 2014 numbering approximately 3,243 dwelling units have been approved.
In 2024 and early 2025, the city saw continued interest in residential and commercial growth. Projects started in earlier years
continue, including:
• Royal Golf 5th Addition — 43 New Single -Family Homes
• Royal Golf 6th Addition — 46 New Single -Family Homes
• Northstar 1 st Addition — 107 New Single -Family Homes
• Easton Village 6th and 7th Addition — 27 New Single -Family Homes
• At Home Apartments — 40 Twin homes
• Bridgewater Bank
• Gardner Daycare
• Amira - 146 senior rental apt building
• Carmelite Church is under construction
• Remodel and new accessary building at Royal Park Golf Clubhouse
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the City's character
in a fiscally responsible manner in partnership with our community.
3880 Laverne Ave N I Lake Elmo I MN 55042 1 (651) 747-3900 1 lakeelmo.gov
THE CITY OF
LAKE ELMO
And new applications for building and development continue to come in. Some of which include:
• Bridgewater — 3 Commercial lots and a future apartment site
• Clear Lake — 22 Single -Family Homes
• Prairie Sky — 30 Two -Family Homes
• Lake Elmo Elementary School
• Oakland Middle School Addition
• Limerick Village - 67 single-family unattached homes, 221 townhomes, 271 apartment units, and 120 senior living
unit.
• Roers— 190-unit apartment building
• Inwood 8th - 148 townhomes and a 123-unit apartment building
• Highpointe Crossing — 65 Single -Family Homes
Further, the following commercial building projects were fully completed in 2024:
• Drake Development - Tesla, Dairy Queen
• Milestones Daycare
• DeMontreville Convent
• Jesuit Retreat house
The City's highway infrastructure continues to make Lake Elmo a desirable residential location. Rapid growth is further
reflected in 2023 population estimates of 14,033 or an increase of 24% since the 2020 census.
New housing starts in 2024 numbered 84 with a total permit value of $36,946,000 and an average home value of $439,833.
There was one apartment building with 146 units valued at $32,920,000.
There were 5 new commercial construction projects in 2024, and a number of remodels and expansions. All these new starts
have been built in 2024 or will be finished in 2025, which will greatly strengthen the existing tax base of the City.
LONG TERM FINANCIAL PLANNING
Total unassigned General Fund balance as of December 31, 2024 was 129% 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.
In 2023, the City moved from a 5-year to a 10-year Capital Improvement Plan ("CIP"). The City's 10-year CIP 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 to Aal, and reaffirmed this rating in 2022,
2023, and 2024. In their assessment of the City, Moody's noted the following:
• Very strong financial position
• Full value per capita and resident income levels exceed the median for similarly rated peers nationally
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.
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the City's character
in a fiscally responsible manner in partnership with our community.
3880 Laverne Ave N I Lake Elmo I MN 55042 1 (651) 747-3900 1 lakeelmo.gov
4
THE CITY OF
LAKE ELMO
RELEVANT FINANCIAL POLICIES
Trends of the past decade, changes in state tax law, and recent legislation indicate that the City will have a greater reliance on
property taxes as a source of financing for city operations in the future and less reliance on the intergovernmental revenues
(federal and state) and building permit fees. Changes in state tax law over the past decade have resulted in funding changes
for both schools and local governments. The elimination of the homestead and agricultural credit aids program, and large cuts
in both local government aid and the market value homestead credit programs resulted in revenue losses to the City. In addition,
as the City continues toward full development, we anticipate future decreases in building permit revenues.
MAJOR INITIATIVES
2024 was again an extremely robust year for the City due to continuation of on -going infrastructure upgrades, projects, as well
as oversight of the on -going residential and commercial development activity.
Some of the 2024 infrastructure projects included the following:
• Municipal sewer lines were extended along the city's western border to serve new development on the 180 acres the
city received in a settlement with 3M in 2019. The new area will provider business/industrial, commercial and low -
density housing options. An RFP will be issued in 2025 for the sale of the land to a qualified developer.
• The City continued work on several expedited water main 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 have included water
main extensions, road construction and in some cases the extension of sewer. The Stillwater Boulevard (CSAH 14)
Trunk Watermain Improvements were completed in 2024 using 100% 3M Settlement grant funds
• Use of Park Dedication fees to continue to make improvements to existing and new parks. 2024 Improvements
included additional Pickleball courts in both Pebble Park and Tablyn Park, new playground structures in Pebble Park
and DeMontreville Park, and expanding the parking lot at Tablyn Park. Volleyball courts were also added to Pilot
Park and Carriage Station Park.
• As part of the City's street capital improvement program, neighborhood street and drainage improvements were
completed in Carriage Station and along Jamaca Court. In 2025, street and drainage improvements are being
constructed in Judith Mary Manor, Prairie Hamlet, Rolling Hills Estates, Teal Pass Estates, Lake Elmo Vista and Irish
Court N.
• Also as part of the City's street capital improvement program, the 2024 Collector Roadway Improvements were
constructed, including Hudson Boulevard, from Inwood Avenue (CSAH 13) to Julia Avenue; 15th Street from Inwood
Avenue (CSAH 13) to Oakdale/Lake Elmo city limits; and 30th Street, from Village Parkway to Lisbon Avenue.
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, 2023. This certificate is a
prestigious national award recognizing conformance with the highest standards for preparation for state and local government
financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently
organized Annual Comprehensive Financial Report, whose contents conform to program standards. Such reports must satisfy
both accounting principles generally accepted in the United States of America and applicable legal requirements. A certificate
is valid for one year only.
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the City's character
in a fiscally responsible manner in partnership with our community.
3880 Laverne Ave N I Lake Elmo I MN 55042 1 (651) 747-3900 1 lakeelmo.gov
THE CITY OF
LAKE ELMO
The City of Lake Elmo is pleased to present its Annual Comprehensive Financial Report, which will be submitted to the
Government Finance Officers Association (GFOA) for consideration of a Certificate of Achievement for Excellence in
Financial Reporting for its financial reports for the fiscal year ended December 31, 2024. 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 Ehno's finances.
Respectfully submitted,
1)0�4 44k
Nicole Miller Clarissa Hadler
City Administrator Finance Director
The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the City's character
in a fiscally responsible manner in partnership with our community.
3880 Laverne Ave N I Lake Elmo I MN 55042 1 (651) 747-3900 1 lakeelmo.gov
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lake Elmo
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2023
r i �
Executive Director/CEO
7
CITY COUNCIL
Charles Cadenhead
Katrina Beckstrom
Nick Dragisich
Matt Him
Jeff Holtz
APPOINTED CITY OFFICIALS
Nicole Miller
Clarissa Hadler
Nina Kraemer
Julie Johnson
CITY OF LAKE ELMO, MINNESOTA
CITY COUNCIL AND OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2024
Term Expires
Mayor
January 1, 2025
Council Member
January 1, 2025
Council Member
January 1, 2025
Council Member
January 1, 2027
Council Member
January 1, 2025
City Administrator Appointed
Finance Director Appointed
Finance Coordinator Appointed
City Clerk Appointed
8
Finance Director
Finance Coordinator
Payroll/AP Clerk
Utility Billing Clerk
Contractor Reiadonship
citizens
Direct Report
Indirect Report/technical supervisor
THE CITY OF
LAKE ELMO
ORGANIZATIONAL CHART
FOR THE YEAR ENDED DECEMBER 31, 2024
Commissions
City Council
Planning Commission
Parks Commission
Committees
Economic Development
Capital improvement
Authority
City Administrator
City Attorney
City Engineer
Community Development
Administ ratfve Services
Pub lie Works
Director
DI rector
Director
Building Official Senior Planner
City Clerk
Asst. Public Works Director
Plan Revlewer City Planner
Deputy City Clerk
Lead Worker
-7
Building Inspector Planning Assistant
Permit Terhnkian I Operators 1, 11, 111
Seasonals/Interne
Sheriff's Office
Sergeant(1)
Deputy(6)
Fire Chief
Assista nt Fi re Chief
Captains and Lieutenants
Full-time Firefighters
Paid on Call Firefighters
9
FINANCIAL
SECTION
10
SCHLENNER
WENNELt&Q0.
CERTIFIED PUBLIC ACCOUNTANTS
& BUSINESS CONSULTANTS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Lake Ehno, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Lake Elmo, Minnesota (the City), as of and for the year
ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City's basic
financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position
of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of
the City of Lake Elmo, Minnesota, as of December 31, 2024, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit
of the Financial Statements" section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Managementfor the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in
the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the
financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
11
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance
is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance
with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement
when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial
doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion and
Analysis, Budgetary Comparison Schedule, pension schedules, and OPEB schedules listed in the table of contents be presented
to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's
basic financial statements. The accompanying combining and individual nonmajor fund financial statements and supplemental
schedules, and schedule of indebtedness are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
12
The combining and individual nonmajor fund financial statements and supplemental schedules 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. The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the 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 and supplemental schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The schedule of indebtedness has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the
introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our
opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the basic financial statements, or whether the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected
material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 23, 2025 on our consideration
of the City of Lake Elmo'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'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's internal control over financial reporting and compliance.
SCHLENNER WENNER & CO.
St. Cloud, Minnesota
June 23, 2025
13
REQUIRED SUPPLEMENTARY
INFORMATION
14
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
Our discussion and analysis of the City of Lake Elmo's financial performance provides an overview of the City's financial
activities for the year ended December 31, 2024. Please read it in conjunction with the independent auditor's report on page
11 and the City's financial statements, which begin on page 26.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of the City of Lake Elmo exceeded its liabilities and deferred inflows at the close of
the most recent fiscal year by $203,027,516 (net position). The unrestricted portion of net position, the portion used
to meet the City's ongoing obligations to citizens and creditors, is $32,649,732.
• The City's total net position increased $32,331,958 as a result of this year's operations.
• As of the close of the current fiscal year, the City of Lake Elmo's governmental funds reported a combined ending
fund balance of $24,381,058, which is an increase of $3,695,622 in comparison with the prior year. The overall
unassigned fund balance is $9,336,906.
• At the end of the current fiscal year, unrestricted fund balance for the General Fund was $10,324,572, which is 151
percent of total 2024 General Fund expenditures and 130 percent of budgeted 2025 General Fund expenditures. The
City's Fund Balance policy is to maintain an unassigned fund balance in the General Fund of an amount that is not
less than 50 percent to 60 percent of the next year's budgeted expenditures of the General Fund.
• In the City's business -type activities, revenues increased $5,825,346 (38.07 percent) and program expenses increased
$564,889 (7.47 percent). These changes are discussed in greater detail throughout the following pages.
• Total cost of all of the City's governmental activities' departments increased $2,625,023 (or 14.60 percent) in
aggregate.
• The City's General Fund generated more revenue than budgeted of $1,007,512, excluding transfers in from other
funds. Expenditures were less than budgeted by $377,766, excluding transfers to other funds. See additional details
on page 73.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities
(on pages 26 and 27) provide information about the activities of the City as a whole and present a longer -term view of the
City's finances. Fund financial statements start on page 28. For governmental activities, these statements tell how these services
were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's
operations in more detail than the government -wide statements by providing information about the City's most significant
funds.
15
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
USING THIS ANNUAL REPORT (Continued)
Reporting the City as a Whole
Our analysis of the City as a whole begins on page 17. One of the most important questions asked about the City's finances is,
"Is the City as a whole better off or worse off as a result of the year's activities?" The Statement of Net Position and the
Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this
question. These statements include all assets, deferred outflows/inflows of resources, and liabilities using the accrual basis of
accounting, which is similar to the accounting used by large private -sector companies. All of the current year's revenues and
expenses are taken into account regardless of when cash is received or paid.
These two statements report the City's net position and changes in net position. You can think of the City's net position (assets
plus deferred outflows, less liabilities plus deferred inflows) as one way to measure the City's financial health, or financial
position. Over time, increases or decreases in the City's net position are one indicator of whether its financial health is
improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City's
property tax base, costs associated with current and future construction projects, and the condition of the City's roads, to assess
the overall health of the City.
In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:
• Governmental Activities - Most of the City's basic services are reported here, including the fire, public works, parks, and
planning and zoning departments, along with general administration. Property taxes, special assessments, licenses, permits
and fees, and State aids finance most of these activities.
• Business -type Activities - The City charges a fee to customers to help it cover all or most of the cost of certain services it
provides. The City's water, sewer, and storm sewer systems are reported here.
Reporting the City's Most Significant Funds
Our analysis of the City's funds begins on page 20. The fund financial statements begin on page 28 and provide detailed
information about the most significant funds - not the City as a whole. Some funds are required to be established by State law
and by bond covenants. However, the City Council may establish other funds to help it control and manage money for particular
purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City's two
kinds of funds (governmental and proprietary) use different accounting approaches.
• Governmental Funds - Most of the City's basic services are reported in governmental funds, which focus on how
money flows into and out of those funds and the balances left at year-end that are available for spending. These funds
are reported using an accounting method called modified accrual accounting, which measures cash and all other
financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the City's general government operations and the basic services it provides. Governmental fund information
helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance
the City's programs. We describe the relationship (or differences) between governmental activities (reported in the
Statement of Net Position and the Statement of Activities) and governmental funds in reconciliations following the
governmental fund financial statements.
• Proprietary Funds - When the City charges customers for the services it provides, these services are generally reported
in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement
of Net Position and the Statement of Activities. In fact, the City's proprietary funds are the same as the business -type
activities we report in the government -wide statements but provide more detail and additional information, such as
cash flows, for proprietary funds.
16
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
THE CITY AS A WHOLE
The City's combined net position increased $32,331,958 from a year ago. Our analysis below focuses on the net position
(Table 1) and changes in net position (Table 2) of the City's governmental and business -type activities.
Current and Other Assets
Net Capital Assets
Total Assets
Deferred Outflows of Resources
Current Liabilities
Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources
Net Position:
Net Investment in
Capital Assets
Restricted
Unrestricted
Total Net Position
Table 1
Net Position
Governmental
Activities
2024 2023
$ 34,849,746 $ 31,241,789
104,806,610 87,653,206
139,656,356 118,894,995
1,209,375 1,100,857
4,890,355 5,122,759
35,907,834 34,161,649
40,798,189 39,284,408
2,708,949 2,687,021
71,683,376 54,209,637
15,985,561 11,658,502
9,689,656 12,156,284
$ 97,358,593 $ 78,024,423
Business -Type
Activities
Total
Government
2024 2023 2024 2023
$ 24,775,850 $ 25,155,915 $ 59,625,596 $ 56,397,704
110,083,564 99,382,500 214,890,174 187,035,706
134,859,414 124,538,415 274,515,770 243,433,410
73,516
116,538
1,282,891
1,217,395
1,443,233
2,213,887
6,333,588
7,336,646
27,665,367
29,627,608
63,573,201
63,789,257
29,108,600
31,841,495
69,906,789
71,125,903
155,407
142,323
2,864,356
2,829,344
82,708,847 69,826,808
22,960,076 22,844,327
$105,668,923 $ 92,671,135
154,392,223
15,985,561
32,649,732
$ 203,027,516
124,036,445
11,658,502
35,000,611
$170,695,558
The net position of the City's governmental activities increased by $19,334,170 (24.78 percent). Unrestricted net position (the
part of net position that can be used to finance day-to-day operations without constraints established by debt covenants, enabling
legislation, or other legal requirements) decreased by $2,466,628 compared to the prior year.
The net position of the City's business -type activities increased by $12,997,788 (14.03 percent) from the prior year. Such
increase can be attributed primarily to the capital contributions of infrastructure assets that were received from private
developers during the year.
17
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
THE CITY AS A WHOLE (Continued)
REVENUE
Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Property Taxes
Franchise Taxes
Intergovernmental
Investment Earnings (Losses)
Other
Total Revenues
PROGRAM EXPENSES
General Government
Public Safety
Public Works
Parks and Recreation
Economic Development
Interest and Other Charges
Water
Sewer
Storm Sewer
Total Expenses
Table 2
Changes in Net Position
Governmental Business -Type Total
Activities Activities Government
2024 2023 2024 2023 2024 2023
$ 3,109,811 $ 2,280,874 $ 3,072,782 $ 3,343,405 $ 6,182,593 $ 5,624,279
542,462
1,102,707
100,000
-
642,462
1,102,707
17,900,192
9,895,930
17,238,838
11,353,274
35,139,030
21,249,204
8,905,064
7,822,031
-
-
8,905,064
7,822,031
86,955
68,884
-
-
86,955
68,884
102,914
246,056
10,470
46
113,384
246,102
1,050,711
1,137,908
704,216
604,235
1,754,927
1,742,143
8,079
46,528
-
-
8,079
46,528
31,706,188
22,600,918
21,126,306
15,300,960
52,832,494
37,901,878
1,513,163
1,220,552
-
-
1,513,163
1,220,552
3,853,006
3,228,801
-
-
3,853,006
3,228,801
5,376,826
4,627,872
-
-
5,376,826
4,627,872
848,199
526,835
-
-
848,199
526,835
7,074
-
-
-
7,074
-
881,870
815,944
-
-
881,870
815,944
-
-
3,946,949
3,982,238
3,946,949
3,982,238
-
-
2,996,505
2,524,280
2,996,505
2,524,280
-
-
1,185,064
1,057,111
1,185,064
1,057,111
12,480,138
10,420,004
8,128,518
7,563,629
20,608,656
17,983,633
Increase (Decrease) in Net Position
Before Transfers/Other Items 19,226,050 12,180,914 12,997,788 7,737,331 32,223,838 19,918,245
Gain (Loss) on Disposal of Assets 108,120 (221,202) - - 108,120 (221,202)
Capital Asset Transfers - (420,482) - 420,482 - -
Change in Net Position 19,334,170 11,539,230 12,997,788 8,157,813 32,331,958 19,697,043
Net Position - Beginning of Year 78,024,423 66,485,193 92,671,135 84,513,322 170,695,558 150,998,515
Net Position - End of Year $ 97,358,593 $ 78,024,423 $105,668,923 $ 92,671,135 $203,027,516 $170,695,558
The City's total revenues increased by $14,930,616 (39.39 percent). The total cost of all programs and services increased by
$2,625,023 (14.60 percent). Our following analysis separately considers the operations of governmental and business -type
activities.
18
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
THE CITY AS A WHOLE (Continued)
Governmental Activities
Revenue for the City's governmental activities increased by $9,105,270 (40.29 percent). This increase in revenue is primarily
due to an increase in revenues from capital grants and contributions, resulting from significant contributions of infrastructure
from developers during 2024. The City also received supplemental aid from the State in the current year. Total expenses
increased $2,060,134 (19.77 percent), primarily due to increased expenses for public safety and public works costs. Such
changes in expenses have been reviewed in greater detail below.
Table 3 presents the cost of each of the City's programs - general government, public safety, public works, parks and recreation,
economic development, and Interest and Other Charges - as well as each program's net cost (total cost less revenues generated
by the activities). The net cost shows the financial burden that was placed on the City's taxpayers by each of these functions.
Activities (net of capital outlay which is excluded from Table 3) were generally comparable to the prior year as operations
remained fairly consistent with the prior year, with the exception of.
• Public safety net cost of services increased $1,202,174 primarily due to an increase in personnel costs and building
inspection fees, along with a decrease in corresponding State aid.
Gross costs for public works did increase by $748,954, primarily due to additional depreciation expense being
recognized for large capital asset infrastructure recently placed into service. However, on a net basis, public works
cost of services decreased $7,282,824, due to an increase in revenues recognized from contributed infrastructure
previously discussed.
Table 3
Governmental Activities
Total Cost
Net Cost
of Services
of Services
2024
2023
2024
2023
General Government $
1,513,163 $
1,220,552 $
1,040,302 $
672,353
Public Safety
3,853,006
3,228,801
2,164,688
962,514
Public Works
5,376,826
4,627,872
(12,834,720)
(5,551,896)
Parks and Recreation
848,199
526,835
(282,730)
241,578
Economic Development
7,074
-
(41,737)
-
Interest and Other Charges
881,870
815,944
881,870
815,944
Totals $
12,480,138 $
10,420,004 $
(9,072,327) $
(2,859,507)
Business -type Activities
Revenues of the City's business -type activities (see Table 2) increased by $5,825,346 (38.07 percent) and program expenses
increased by $564,889 (7.47 percent). The increase in revenues is due primarily to an increase in contributions of infrastructure
from developers during 2024. Additionally, revenues from water and sewer access fees also increased significantly from those
of the prior year. The increase in expenses is due largely to an increase in depreciation expense being recognized in 2024, due
to various projects being finalized and placed into service. Additionally, the City incurred additional costs related to sewer
utilities.
19
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
THE CITY'S FUNDS
Governmental Funds
As the City completed the year, its governmental funds (as presented in the balance sheet on page 28) reported a combined
fund balance of $24,381,058. This is an increase of $3,695,622 from the prior year. Operations were comparable to the prior
year, with the exception of an increase in property taxes, intergovernmental revenues, and charges for services (park dedication
fees). Additionally, the City incurred fewer capital outlay expenditures, due to the City Hall and Fire Station building project
being completed in 2024. Financial information specific to the governmental funds is detailed on the following page. Such
information was derived from the fund financials.
General
Fund Balance December 31, Increase
Major Funds 2024 2023 (Decrease)
10,324,572 $ 8,920,580 $ 1,403,992
The fund balance of the General Fund increased by $1,403,992 compared to 2023. Details of the General Fund's revenues and
expenditures are displayed below:
General Fund Revenues
■ Property Taxes
■ Franchise Taxes
■ Licenses, Permits, and Fees
■ Intergovernmental
■ Charges for Services
■ Fines
■ Investment Earnings
■ Lease Interest
■ Miscellaneous
The City received the majority of its funding in the General Fund in the form of grants and funding received from property
taxes (65.35 percent), licenses, permits, and fees (11.16 percent), charges for services (9.98 percent), and other governmental
agencies (5.48 percent). Overall, the City's General Fund revenues were comparable to the prior year, with the exception of
property taxes that increased as planned with the 2024 levy.
20
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
THE CITY'S FUNDS (Continued)
General Fund Expenditures
■ General Government
■ Public Safety
■ Public Works
■ Parks and Recreation
■ Capital Outlay
A significant portion of the City's General Fund expenditures are used for public safety (54.84 percent). Remaining
expenditures are used primarily for public works (15.64 percent) and general government (21.02 percent). Expenditures are
comparable to the prior year.
Debt Service
Fund Balance December 31, Increase
Funds 2024 2023 (Decrease)
$ 5,678,193 $ 5,026,712 $ 651,481
The Debt Service fund balance increased as a result of an increase in property tax and assessment revenue, which exceeded the
principal and interest payments.
2024 Street & Utility Improvement $ 368,438 $ (56,882) $ 425,320
The 2024 Street & Utility Improvement fund balance increased due to the City receiving bond proceeds during the year in
relation to their 2024A G.O. Improvement Bond issuance, which exceeded the capital expenditures to -date for the 2024 Street
and Utility Improvements project.
Hudson Blvd Imp-Seg A-InwdHdrx $ 1,219,181 $ (53,827) $ 1,273,008
The Hudson Blvd Imp-Seg A-InwdHdrx fund balance increased due to the City receiving the 2024A G.O. Improvement Bond
proceeds and supplemental aid from the State, which exceeded the capital expenditures to -date for the Hudson Blvd.
Improvements project.
21
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
THE CITY'S FUNDS (Continued)
General Fund Budgetary Highlights
The City's General Fund generated more revenue than budgeted of $1,007,512, excluding transfers in from other funds.
Expenditures were less than those budgeted by $377,766, excluding transfers to other funds. Budgetary deviations were mostly
distributed across departments, but resulted most significantly from state aid and investment earnings being more than
anticipated and expenditures for building inspections being less than anticipated.
Proprietary Funds
As the City completed the year, its business -type activities reported a combined net position of $105,668,923. This is an
increase of $12,997,788 from the prior year. The following is a summary of the City's major proprietary funds:
Water
Net Position December 31, Increase
Major Funds 2024 2023 (Decrease)
56,335,050 $ 50,291,225 $ 6,043,825
The Water Fund net position increased due to an increase in connection fees, as well as revenues being recognized in relation
to infrastructure assets conveyed to the City by local developers, $3,608,962 of which was recognized in this fund.
Sewer
31,014,704 $ 27,604,510 $ 3,410,194
The Sewer Fund net position increased due to the City receiving developer contributed infrastructure during the year,
$3,230,468 of which was recognized in this fund. Connection fees in the Sewer Fund also increased $932,200 from that of the
prior year.
Storm Sewer
18,319,169 $ 14,775,400 $ 3,543,769
The Storm Sewer Fund net position increased due to the City receiving developer contributed infrastructure during the year,
$3,998,524 of which was recognized in this fund.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2024, the City had a net investment of $214,890,174 in a broad range of capital assets, including land, buildings,
improvements, machinery and equipment, IT subscriptions, roads, and water, sewer, and storm sewer infrastructure. This
amount represents a net increase of $27,854,468 (14.89 percent) from last year. More detailed information about the City's
capital assets is presented in Note 2.C. to the financial statements.
Significant capital asset activity from throughout the year included the following:
• Developer contributions of infrastructure exceeded $25.6 million in total.
• Costs incurred during the year for the Stillwater Blvd. (CSAH 14) Trunk Watermain Improvements project exceeded
$2.6 million.
• Costs incurred during the year for the 2024 Street & Utility Improvements project exceeded $2.3 million.
• Costs incurred during the year for the Hudson Blvd. Improvements project exceeded $1.9 million.
Table 4
Capital Assets Net of Depreciation and Amortization
Governmental
Business -Type
Activities
Activities
Totals
2024
2023
2024 2023
2024
2023
Land
$ 3,453,979
$ 3,453,979
$ 3,668,869 $ 3,668,869
$ 7,122,848 $
7,122,848
Construction In Progress
2,858,374
18,614,757
611,693 11,204,477
3,470,067
29,819,234
Buildings
17,538,068
2,814,305
- -
17,538,068
2,814,305
Other Improvements
2,092,035
2,092,035
- -
2,092,035
2,092,035
Machinery and Equipment
7,239,442
6,923,964
765,746 83,657
8,005,188
7,007,621
Infrastructure
71,624,712
53,754,166
104,953,716 84,425,497
176,578,428
138,179,663
IT Subscription
-
-
83,540 -
83,540
-
Totals $ 104,806,610 $ 87,653,206 $ 110,083,564 $ 99,382,500 $ 214,890,174 $ 187,035,706
Debt
At year-end, the City had $62,066,968 in gross debt versus $62,093,296 last year (a decrease of 0.04 percent), as shown in
Table 5. See additional information regarding these issuances in Note 2.D. to the financial statements.
Table 5
Outstanding Debt at Year -End
Governmental
Business -Type
Activities
Activities
Totals
2024
2023
2024 2023
2024
2023
G.O. Improvement Bonds
$ 31,535,000
$ 29,860,000
$ 26,270,000 $ 28,115,000
$ 57,805,000
$ 57,975,000
G.O. Equipment Certificates
450,000
555,000
- -
450,000
555,000
G.O. Tax Abatement Bonds
930,000
1,010,000
- -
930,000
1,010,000
Unamortized Bond Premium
1,534,390
1,321,965
1,016,299 1,082,925
2,550,689
2,404,890
Subscription Liabilities
-
-
88,418 -
88,418
-
Compensated Absences
191,197
110,115
51,664 38,291
242,861
148,406
Totals
$ 34,640,587
$ 32,857,080
$ 27,426,381 $ 29,236,216
$ 62,066,968
$ 62,093,296
23
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• An update to the City's long-range financial management plan was completed in 2023 and now includes inflated
averages for capital expenses such as roads and equipment in the 5-10 year horizon. The City is projected to have
small annual increases in its tax rate over the next 10-year period while still meeting current service needs, adding a
public works position, and funding capital needs while maintaining a fund balance above the City's policy of 50-60%
of next year's expenses.
• The City's Long -Range Financial Management Plan for Utilities was updated in early 2025. For 2025, water and
sewer rates were increased by 10% and stormwater rates had no increase.
• Market interest rates on investments have fallen slightly in 2024 and 2025. The City is holding various investments
that were purchased prior to 2022 that have lower rates of return due to the aforementioned increases. As a result,
these investments have some unrealized losses that would only be recognized if the City had to sell them before
maturity. The City has sufficient cash and does not anticipate selling before maturity.
• The City is currently exploring sites for two new wells. These wells will need a treatment plant for PFAS which will
be funded by 3M settlement dollars. These efforts are likely to take two to three years to complete. Previously expected
funding for trunk main extensions have since been discontinued, which slowed the growth of the water and sewer
funds.
• With its proximity to Minneapolis/St. Paul downtown area, easy access from a number of state highways, exceptional
recreational offerings and low tax rate, Lake Elmo remains an attractive area for new residents and businesses. The
City is seeing an increase in development interest for multi -family housing as well as from commercial and
business/industrial developers. There remain hundreds of acres available for development in both the downtown area
as well as along the I-94 corridor. The Stillwater Area School District (ISD 834) recently broke ground on a new
Elementary School and expansion of the existing Middle School in Lake Elmo, increasing the student capacity at both
schools and providing improved facilities.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general
overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about
this report or need additional financial information, contact City Hall at 3880 Laverne Avenue North, Lake Elmo, Minnesota
55042.
24
BASIC FINANCIAL STATEMENTS
25
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2024
ASSETS
Cash, Cash Equivalents, and Investments
Property Taxes Receivable
Assessments Receivable
Accounts Receivable
Interest Receivable
Due from Other Governments
Leases Receivable
Capital Assets Not Being Depreciated/Amortized
Capital Assets Being Depreciated/Amortized (Net)
Net Pension Asset
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Pensions
LIABILITIES
Accounts Payable
Salaries Payable
Construction Contracts Payable
Deposits Payable
Due to Other Governments
Payroll Deductions and Employer Contributions
Unearned Revenue
Accrued Interest Payable
Compensated Absences Payable:
Due Within One Year
Due After One Year
Bonds and Subscriptions:
Due Within One Year
Due After One Year
Net OPEB Liability:
Due After One Year
Net Pension Liability:
Due After One Year
TOTAL LIABILITIES
Governmental Business -Type
Activities Activities Totals
$ 28,531,867 $
17,576,688 $
46,108,555
107,450
-
107,450
3,853,119
4,938,307
8,791,426
36,173
870,552
906,725
90,950
64,976
155,926
5,004
1,325,327
1,330,331
1,568,508
-
1,568,508
6,312,353
4,280,562
10,592,915
98,494,257
105,803,002
204,297,259
656,675
-
656,675
139,656,356
134,859,414
274,515,770
1,209,375
73,516
1,282,891
1,240,016
464,954
1,704,970
48,346
29,941
78,287
320,084
-
320,084
2,509,232
-
2,509,232
-
50,488
50,488
25,391
-
25,391
318,300
575,000
893,300
428,986
322,850
751,836
143,398
38,748
182,146
47,799
12,916
60,715
2,965,000
2,424,872
5,389,872
31,484,390
24,949,845
56,434,235
47,176
14,816
61,992
1,220,071
224,170
1,444,241
40,798,189
29,108,600
69,906,789
DEFERRED INFLOWS OF RESOURCES
Pensions 1,261,384
Leases 1,447,565
TOTAL DEFERRED INFLOWS OF RESOURCES 2,708,949
NET POSITION
Net Investment in Capital Assets
Restricted for:
Debt Service
2024 Street & Utility Improvement
Hudson Blvd Imp-Seg A-InwdHdrx
Park Dedication
Heritage Farms Street & Utility Improvements
City Hall / Fire Station Bldg Project
Tamarack Farm Estates Street Improvements
2022 Street Improvements
Unrestricted
TOTAL NET POSITION
155,407 1,416,791
- 1,447,565
155,407 2,864,356
71,683,376 82,708,847 154,392,223
9,010,313
- 9,010,313
368,438
- 368,438
1,219,181
- 1,219,181
3,185,344
- 3,185,344
242,783
- 242,783
1,462,461
- 1,462,461
128,269
- 128,269
368,772
- 368,772
9,689,656
22,960,076 32,649,732
$ 97,358,593 $
105,668,923 $ 203,027,516
See accompanying notes. 26
Functions/Programs
Expenses
Governmental Activities:
General Government
$ 1,513,163 $
Public Safety
3,853,006
Public Works
5,376,826
Parks and Recreation
848,199
Economic Development
7,074
Interest and Other Charges
881,870
Total Governmental Activities
12,480,138
Business -Type Activities:
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2024
Program Revenues Net (Expense) Revenue and Changes in Net Position
Operating Capital Primary Government
Charges for Grants and Grants and Governmental Business -Type
Services Contributions Contributions Activities Activities Total
391,056 $
81,805 $
- $ (1,040,302) $
1,563,841
124,477
- (2,164,688)
60,485
250,869
17,900,192 12,834,720
1,094,429
36,500
- 282,730
-
48,811
- 41,737
-
-
- (881,870)
3,109,811
542,462
17,900,192 9,072,327
Water
3,946,949
1,522,996
- 8,270,173
Sewer
2,996,505
876,248
100,000 4,970,000
Storm Sewer
1,185,064
673,538
- 3,998,665
Total Business -Type Activities
8,128,518
3,072,782
100,000 17,238,838
TOTALS
$ 20,608,656 $
6,182,593 $
642,462 $ 35,139,030
General Revenues:
Property Taxes
Franchise Taxes
Intergovernmental
Investment Earnings (Losses)
Gain (Loss) on Sale of Assets
Miscellaneous
Total General Revenues
CHANGE IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
- $ (1,040,302)
(2,164,688)
12,834,720
282,730
41,737
(881,870)
- 9,072,327
- 5,846,220
5,846,220
- 2,949,743
2,949,743
- 3,487,139
3,487,139
- 12,283,102
12,283,102
9,072,327 12,283,102 21,355,429
8,905,064
- 8,905,064
86,955
- 86,955
102,914
10,470 113,384
1,050,711
704,216 1,754,927
108,120
- 108,120
8,079
- 8,079
10,261,843
714,686 10,976,529
19,334,170 12,997,788 32,331,958
78,024,423 92,671,135 170,695,558
$ 97,358,593 $ 105,668,923 $ 203,027,516
See accompanying notes. 27
CITY OF LAKE ELMO, MINNESOTA
BALANCESHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2024
Canital Proiect Funds
2024 Street &
Utility Hudson Blvd Imp- Total Nonmajor Total
Debt Service Improvement Seg A-InwdHdrx Governmental Governmental
General Fund Fund Fund Fund Funds Funds
ASSETS
Cash, Cash Equivalents, and Investments $
12,115,282 $ 5,657,531 $
473,134 $ 2,075,949 $ 8,209,971 $
28,531,867
Property Taxes Receivable
107,450 -
- - -
107,450
Assessments Receivable
66,113 3,767,197
- - 19,809
3,853,119
Accounts Receivable
4,063 -
- - 32,110
36,173
Interest Receivable
42,437 14,571
31 2,539 31,372
90,950
Due from Other Governments
5,004 -
- - -
5,004
Due from Other Funds
920,627 -
- - -
920,627
Leases Receivable
1,568,508 -
- - -
1,568,508
TOTAL ASSETS
LIABILITIES
Accounts Payable
Salaries Payable
Payroll Deductions and
Employer Contributions
Construction Contracts Payable
Deposits Payable
Due to Other Funds
Unearned Revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Property Taxes
Special Assessments
Leases
Total Deferred Inflows of Resources
$ 14,829,484 $ 9,439,299 $ 473,165 $ 2,078,488 $ 8,293,262 $ 35,113,698
$ 283,913 $ - $
48,346 -
25,391 -
2,509,232 -
68,300
2,935,182 -
56,052 -
66,113 3,761,106
1,447,565 -
1,569,730 3,761,106
104,727 $ 772,848 $ 78,528 $ 1,240,016
- - - 48,346
25,391
- 86,459 233,625
320,084
- - -
2,509,232
- - 920,627
920,627
- - 250,000
318,300
104,727 859,307 1,482,780
5,381,996
- - - 56,052
19,808 3,847,027
- - - 1,447,565
- - 19,808 5,350,644
See accompanying notes. 28
FUND BALANCES
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
CITY OF LAKE ELMO, MINNESOTA
BALANCE SHEET (Continued)
GOVERNMENTAL FUNDS
DECEMBER 31, 2024
Capital Proiect Funds
2024 Street &
Utility Hudson Blvd Imp- Total Nonmajor Total
Debt Service Improvement Seg A-InwdHdrx Governmental Governmental
General Fund Fund Fund Fund Funds Funds
$ - $ 5,678,193 $ 368,438 $ 1,219,181 $ 5,387,629 $ 12,653,441
- - - - 27,239 27,239
- - - - 2,363,472 2,363,472
10,324,572 - - - (987,666) 9,336,906
10,324,572 5,678,193 368,438 1,219,181 6,790,674 24,381,058
$ 14,829,484 $ 9,439,299 $ 473,165 $ 2,078,488 $ 8,293,262 $ 35,113,698
See accompanying notes. 29
CITY OF LAKE ELMO, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET — GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2024
Total Fund Balances - Governmental Funds $ 24,381,058
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported as assets in the governmental funds:
Capital Assets $ 129,550,071
Accumulated Depreciation (24,743,461)
Capital Assets (Net) 104,806,610
Long-term liabilities are not due and payable in the current period and, therefore,
are not reported as liabilities in the governmental funds Balance Sheet:
Bond Principal Payable (32,915,000)
Bond Premium, Net of Accumulated Amortization (1,534,390)
Compensated Absences (191,197)
(34,640,587)
The net OPEB liability represents the present value of projected unfunded future
postemployment benefits other than pensions, as determined by an actuary as
of the most recent measurement date. Such liability and related balances do not
represent the impending use of current financial resources and, therefore, are
not reported in the governmental funds:
Net OPEB Liability (47,176)
The net pension asset/liability and related deferred outflows/inflows represent
the allocation of pension obligations to the City. Such balances are not reported
in the governmental funds:
Net Pension Asset
656,675
Net Pension Liability
(1,220,071)
Deferred Outflows - Pensions
1,209,375
Deferred Inflows - Pensions
(1,261,384)
(615,405)
Interest on long-term debt is recognized as an expenditure when due and payable
in the governmental funds. Therefore, interest is not accrued in the governmental
funds Balance Sheet, but is accrued in the Statement of Net Position: (428,986)
Other long-term assets are not available to pay for current -period expenditures
and, therefore, are reported as unavailable in the governmental funds:
Property Taxes Receivable 56,052
Special Assessments Receivable 3,847,027
3,903,079
TOTAL NET POSITION OF GOVERNMENTAL ACTIVITIES $ 97,358,593
See accompanying notes. 30
REVENUES
Property Taxes
Franchise Taxes
Special Assessments
Licenses, Permits, and Fees
Intergovernmental
Charges for Services
Fines
Investment Earnings (Losses)
Lease Interest
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
General Government
Public Safety
Public Works
Parks and Recreation
Economic Development
Capital Outlay
Debt Service:
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
Capital Project Funds Formerly Major Funds
2024 Street &
Utility Hudson Blvd Imp- City Hall / Fire 2023 Street Total Nonmajor Total
Debt Service Improvement Seg A-InwdHdrx Station Bldg Improvements Governmental Governmental
General Fund Fund Fund Fund Project Fund Fund Funds Funds
$ 5,977,668 $
2,923,830 $ - $ -
$ - $
8,901,498
86,955
- -
-
86,955
-
1,114,353 -
1,160
1,115,513
1,020,801
- - -
-
1,020,801
500,860
- 1,436,000
390,044
2,326,904
912,893
- -
1,094,429
2,007,322
55,286
- - -
-
55,286
444,440
149,678 205 17,041
375,534
986,898
63,813
- - -
-
63,813
84,046
- - -
23,559
107,605
9,146,762
4,187,861 205 1,453,041
1,884,726
16,672,595
1,437,156 - -
3,749,563 - -
1,069,092 530 296
492,788 - - -
- 7,035 - -
88,888 - 1,924,908 2,031,217
Principal - 2,705,000 - -
Interest and Other Charges - 916,406 38,924 26,293
TOTAL EXPENDITURES 6,837,487 3,628,441 1,964,362 2,057,806
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,309,275 559,420 (1,964,157) (604,765)
1,437,156
3,749,563
431,554 1,501,472
- 492,788
39 7,074
2,703,050 6,748,063
- 2,705,000
8,690 990,313
3,143,333 17,631,429
(1,258,607) (958,834)
See accompanying notes. 31
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued)
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
Capital Project Funds Formerly Major Funds
2024 Street &
Utility Hudson Blvd Imp• City Hall / Fire 2023 Street Total Nonmajor Total
Debt Service Improvement Seg A-InwdHdrx Station Bldg Improvements Governmental Governmental
General Fund Fund Fund Fund Project Fund Fund Funds Funds
OTHER FINANCING SOURCES (USES)
Sale of Assets
$ - $
- $ - $
-
Bond Issuance
-
92,061 2,201,722
1,730,226
Premium on Bond Issuance
-
- 187,755
147,547
Transfers In
67,910
-
-
Transfers Out
(973,193)
- -
-
TOTAL OTHER FINANCING
SOURCES (USES)
(905,283)
92,061 2,389,477
1,877,773
NET CHANGE IN FUND BALANCES
1,403,992
651,481 425,320
1,273,008
FUND BALANCES - BEGINNING 8,920,580 5,026,712 -
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - (56,882) (53,827) (1,448,996) (287,830) 1,847,535 -
8,920,580 5,026,712 (56,882) (53,827) - - 6,848,853 20,685,436
$ 109,573 $ 109,573
170,991 4,195,000
14,581 349,883
1,473,193 1,541,103
(567,910) (1,541,103)
FUND BALANCES - BEGINNING
(As Adjusted)
FUND BALANCES - ENDING
1,200,428 4,654,456
(58,179) 3,695,622
1,448,996 287,830 5,001,318 20,685,436
$ 10,324,572 $ 5,678,193 $ 368,438 $ 1,219,181 $ - $ - $ 6,790,674 $ 24,381,058
See accompanying notes. 32
CITY OF LAKE ELMO, MINNESOTA
RECONCILIATION OF CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2024
Net Change in Fund Balances - Total Governmental Funds $ 3,695,622
Amounts reported for governmental activities in the Statement of Activities are
different due to the following:
Capital outlays are reported in the governmental funds as expenditures. However,
in the Statement of Activities, the cost of those assets is allocated over the
estimated useful lives as depreciation expense:
Capital Outlay Capitalized - Capital Assets $ 6,474,992
Depreciation Expense (4,161,486)
Capital Assets Acquired via Trade-in 5,000
Capital Assets Acquired via Developers 14,841,351
Loss on Disposal of Assets (6,453)
17,153,404
The issuance of long-term debt provides current financial resources to
governmental funds while the repayment of 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 effect of premiums and discounts when debt is first issued,
whereas these amounts are deferred and amortized in the Statement of
Activities. The amounts below detail the effects of these differences in the
treatment of long-term debt and related items:
Bond Principal Repayments
2,705,000
Bond Issuance
(4,195,000)
Premium on Bond Issuance
(349,883)
Amortization of Bond Premium
137,458
(1,702,425)
Interest on long-term debt in the Statement of Activities differs from the amounts
reported in the governmental funds because interest is recognized as an
expenditure in the funds only when it is due. In the Statement of Activities,
however, interest expense is recognized as the interest accrues, regardless
of when it is due:
(29,015)
Under the modified accrual basis of accounting, certain revenues cannot be
recognized until they are available to liquidate liabilities of the current period:
Property Taxes 3,566
Special Assessments 170,773
174,339
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 the governmental funds:
Compensated Absences (81,082)
Certain liabilities do not represent the impending use of current resources.
Therefore, the change in such liabilities and related deferrals are not
reported in the governmental funds:
Net OPEB Liability and Deferred Outflows/Inflows of Resources 18,598
Net Pension Asset/Liability and Deferred Outflows/Inflows of Resources 104,729
123,327
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 19,334,170
See accompanying notes. 33
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2024
Storm Sewer
Water Fund
Sewer Fund
Fund
Totals
ASSETS
Current Assets:
Cash and Cash Equivalents
$ 4,185,778
$ 11,958,161
$ 1,432,749
$ 17,576,688
Assessments Receivable
61,263
333,160
22,532
416,955
Accounts Receivable
301,106
223,955
345,491
870,552
Interest Receivable
17,420
42,363
5,193
64,976
Due from Other Governments
1,325,327
-
-
1,325,327
Total Current Assets
5,890,894
12,557,639
1,805,965
20,254,498
Noncurrent Assets:
Capital Assets Not Being Depreciated/Amortized
4,258,682
21,880
-
4,280,562
Capital Assets Being Depreciated/Amortized (Net)
59,689,860
27,504,356
18,608,786
105,803,002
Assessments Receivable
392,733
4,127,204
1,415
4,521,352
Total Noncurrent Assets
64,341,275
31,653,440
18,610,201
114,604,916
TOTAL ASSETS
70,232,169
44,211,079
20,416,166
134,859,414
DEFERRED OUTFLOWS OF RESOURCES
Pensions
45,461
18,553
9,502
73,516
LIABILITIES
Current Liabilities:
Accounts Payable
434,477
28,951
1,526
464,954
Salaries Payable
11,177
6,369
12,395
29,941
Due to Other Governments
-
50,488
-
50,488
Unearned Revenue
575,000
-
-
575,000
Accrued Interest
144,531
159,625
18,694
322,850
Compensated Absences
23,979
9,467
5,302
38,748
Bonds Due Within One Year
1,254,872
950,000
220,000
2,424,872
Total Current Liabilities
2,444,036
1,204,900
257,917
3,906,853
Noncurrent Liabilities:
Compensated Absences
7,993
3,156
1,767
12,916
Bonds Due After One Year
11,242,208
11,908,877
1,798,760
24,949,845
Net OPEB Liability
9,072
3,864
1,880
14,816
Net Pension Liability
141,308
55,592
27,270
224,170
Total Noncurrent Liabilities
11,400,581
11,971,489
1,829,677
25,201,747
TOTAL LIABILITIES
13,844,617
13,176,389
2,087,594
29,108,600
DEFERRED INFLOWS OF RESOURCES
Pensions
97,963
38,539
18,905
155,407
NET POSITION
Net Investment in Capital Assets
51,451,462
14,667,359
16,590,026
82,708,847
Unrestricted
4,883,588
16,347,345
1,729,143
22,960,076
TOTAL NET POSITION
$ 56,335,050
$ 31,014,704
$ 18,319,169
$ 105,668,923
See accompanying notes. 34
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
OPERATING REVENUES
Charges for Services
OPERATING EXPENSES
Wages and Benefits
Materials and Supplies
Repairs and Maintenance
Professional Services
Insurance
Utilities
Miscellaneous
Depreciation and Amortization
TOTAL OPERATING EXPENSES
NET OPERATING INCOME (LOSS)
NONOPERATING INCOME (EXPENSE)
Intergovernmental
Investment Earnings (Losses)
Miscellaneous
Interest and Other Charges
TOTAL NONOPERATING
INCOME (EXPENSE)
CHANGE IN NET POSITION PRIOR
TO CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital Contributions:
Capital Contributions from Private Sources
Special Assessments
Intergovernmental
Connection Fees
TOTAL CAPITAL CONTRIBUTIONS
AND TRANSFERS
CHANGE IN NET POSITION
NET POSITION - BEGINNING OF YEAR
NET POSITION - END OF YEAR
Storm Sewer
Water Fund Sewer Fund Fund Totals
$ 1,517,017 $
869,151 $
657,030 $
3,043,198
377,288
221,325
126,124
724,737
196,660
27,097
10,831
234,588
63,358
28,864
23,153
115,375
167,667
131,631
58,161
357,459
24,606
14,308
4,117
43,031
133,870
794,270
957
929,097
48,754
26,704
14,135
89,593
2,595,622
1,422,605
911,665
4,929,892
3,607,825
2,666,804
1,149,143
7,423,772
(2,090,808)
(1,797,653)
(492,113)
(4,380,574)
6,600
2,596
1,274
10,470
191,005
457,855
55,356
704,216
5,979
107,097
16,508
129,584
(339,124)
(329,701)
(35,921)
(704,746)
(135,540)
237,847
37,217
139,524
(2,226,348)
(1,559,806)
(454,896)
(4,241,050)
3,608,962 3,230,468 3,998,524 10,837,954
10,552 158,632 141 169,325
2,991,659 - - 2,991,659
1,659,000 1,580,900 - 3,239,900
8,270,173 4,970,000 3,998,665 17,238,838
6,043,825 3,410,194 3,543,769 12,997,788
50,291,225 27,604,510 14,775,400 92,671,135
$ 56,335,050 $ 31,014,704 $ 18,319,169 $ 105,668,923
See accompanying notes. 35
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Received from Customers
Cash Paid to Suppliers
Cash Paid to Employees
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Taxes and Intergovernmental
Other Receipts from Customers
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING
ACTIVITIES
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Connection Fees
Special Assessments
Intergovernmental and Other
Purchases of Capital Assets
Payments on Bond Principal
Payments on Subscription Liabilities
Proceeds from Debt Issuance
Cash Paid for Interest and Other Charges
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED FINANCING
ACTIVITIES
CASH FLOWS FROM INVESTING
ACTIVITIES
Investment Income
Storm Sewer
Water Fund Sewer Fund Fund Totals
$ 1,442,722 $ 821,327 $ 606,186 $ 2,870,235
(518,791) (1,032,154) (113,549) (1,664,494)
(447,514) (248,285) (128,213) (824,012)
476,417 (459,112) 364,424 381,729
6,600 2,596 1,274 10,470
5,979 107,098 16,508 129,585
12,579 109,694 17,782 140,055
1,529,800
1,444,100
-
2,973,900
212,886
669,148
40,836
922,870
1,348,274
-
-
1,348,274
(4,332,455)
(523,301)
(202,361)
(5,058,117)
(1,150,000)
(950,000)
(215,000)
(2,315,000)
(4,235)
-
-
(4,235)
499,270
-
-
499,270
(384,994)
(397,494)
(43,737)
(826,225)
(2,281,454)
242,453
(420,262)
(2,459,263)
185,759 444,008 53,533 683,300
Net Change in Cash and Cash Equivalents
(1,606,699)
337,043
15,477
(1,254,179)
Cash and Cash Equivalents - Beginning of Year
5,792,477
11,621,118
1,417,272
18,830,867
Cash and Cash Equivalents - End of Year $
4,185,778 $
11,958,161 $
1,432,749 $
17,576,688
See accompanying notes. 36
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
RECONCILIATION OF NET OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING
ACTIVITIES
Net Operating Income (Loss)
Adjustments to Reconcile Net Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Depreciation and Amortization Expense
Changes in Assets, Liabilities,
and Deferrals:
Accounts Receivable
Special Assessments
Accounts Payable
Due to Other Governments
Salaries Payable
Compensated Absences
Net OPEB Liability
Net Pension Liability
Deferred Outflows of
Resources - Pensions
Deferred Inflows of
Resources - Pensions
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
SCHEDULE OF NONCASH CAPITAL
AND RELATED FINANCING
ACTIVITIES
Contribution of Capital Assets from
Private Sources
Change in Capital Assets Due To
Changes in Related Payables
Right -Of -Use Capital Assets Acquired
via IT Subscription Arrangement
Storm Sewer
Water Fund Sewer Fund Fund Totals
$ (2,090,808) $ (1,797,653) $ (492,113) $ (4,380,574)
2,595,622
1,422,605
911,665
4,929,892
(48,513)
(29,768)
(29,483)
(107,764)
(25,782)
(18,056)
(21,361)
(65,199)
116,124
(9,013)
(2,195)
104,916
-
(267)
-
(267)
(15,661)
(6,691)
6,004
(16,348)
5,932
4,055
3,386
13,373
(6,258)
(1,439)
(838)
(8,535)
(90,280)
(36,471)
(17,120)
(143,871)
27,634
10,648
4,740
43,022
8,407
2,938
1,739
13,084
$ 476,417 $
(459,112) $
364,424 $
381,729
$ 3,608,962 $ 3,230,468 $ 3,998,524 $ 10,837,954
$ (272,612) $ (85,155) $ - $ (357,767)
$ 92,653 $ - $ - $ 92,653
See accompanying notes. 37
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Lake Elmo (the City) have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to governmental units. GAAP includes all relevant
Governmental Accounting Standards Board (GASB) pronouncements.
The City has a mayor -council form of government that is governed by an elected mayor and four -member council. The City
provides the following services: water, sewer, and storm sewer utilities, recreation, public improvements, public safety,
planning and zoning, and general administrative services.
LA. FINANCIAL REPORTING ENTITY
The City's financial reporting entity is comprised of the primary governmental unit of the City of Lake Elmo, Minnesota.
In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 14, The Financial
Reporting Entity, and includes all component units of which the City appointed a voting majority of the units' board; the City
is either able to impose its will on the unit or a financial benefit or burden relationship exists.
Blended Component Units
Blended component units are separate legal entities that meet the component unit criteria described above and whose governing
body is the same or substantially the same as the City Council or the component unit provides services entirely to the City.
These component units' funds are blended into those of the City's by appropriate activity type to compose the primary
government presentation. Currently, the City has the following blended component unit:
Economic Development Authority of the City of Lake Elmo
The Economic Development Authority (EDA) of Lake Elmo is an entity legally separate from the City. The EDA
provides services solely to the City of Lake Elmo and the City Council appoints the EDA's board members. Therefore,
the EDA has been reported as a blended component unit of the City. The EDA does not issue its own separate financial
statements.
The financial activity of the Authority is performed by the City of Lake Elmo and treated as routine City business.
Discretely Presented Component Units
Discretely presented component units are separate legal entities that meet the component unit criteria described above but do
not meet the criteria for blending. Currently, the City has no discretely presented component units.
Affiliated Organizations
The Lake Elmo Firefighters Relief Association (the Association) is organized as a non-profit organization, legally separate
from the City, to provide pension and other benefits to its members in accordance with Minnesota Statutes. Its board of directors
is appointed by the membership of the Association and not by the City Council and the Association issues its own set of
financial statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby State aids flow to
the Association, and the Association pays benefits directly to its members. 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. The City's portion
of the costs of the Association's pension benefits is included in the general fund under public safety.
38
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I.B. BASIS OF PRESENTATION
Government -wide Financial Statements
The Statement of Net Position and Statement of Activities display information about the reporting government as a whole.
They include all funds of the reporting entity except for fiduciary funds (of which the City has none). The statements distinguish
between governmental and business -type activities. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange revenues. Business -type activities are financed in whole or in part by fees
charged to external parties for goods and services.
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate
accounting entity. Each fund is accounted for by providing a separate set of self -balancing accounts that constitute its assets,
deferred outflows, liabilities, deferred inflows, fund equity, revenues, and expenditures/expenses. Funds are organized into
two major categories: governmental and proprietary. An emphasis is placed on major funds within the governmental and
proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
• Total assets and deferred outflows, liabilities and deferred inflows, revenues, or expenditures/expenses of that
individual governmental or proprietary fund are at least 10 percent of the corresponding total for all funds of that
category or type; and
• Total assets and deferred outflows, liabilities and deferred inflows, revenues, or expenditures/expenses of that
individual governmental or proprietary fund are at least 5 percent of the corresponding total for all governmental and
proprietary funds combined.
The City reports the following major governmental funds:
The General Fund is the primary operating fund of the City and is always classified as a major fund. It is used to
account for all activities except those legally or administratively required to be accounted for in other funds.
The Debt Service Fund accounts for the accumulation of financial resources for the payment of interest and principal
on general long-term debt of the City other than debt service payments made by proprietary funds. Ad valorem taxes
and special assessments are used for the payment of principal and interest on the City's indebtedness.
The 2024 Street & Utility Improvement Fund is a capital project fund used to account for financial resources related
to the street & utility improvement project that initiated in 2023.
The Hudson Blvd Imp-Seg A-InwdHdrx Fund is a capital project fund used to account for financial resources related
to the Hudson Blvd. improvement project that initiated in 2023.
The City reports the following major proprietary funds:
The Water Fund accounts for the activities of the City's water distribution operations.
The Sewer Fund accounts for revenues and costs associated with the City's sewer system.
The Storm Sewer Fund accounts for costs associated with the City's storm sewer system. These costs are financed by
the storm sewer surcharge.
39
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LB. BASIS OF PRESENTATION (Continued)
The City reports the following nonmajor governmental fund types:
The Special Revenue Funds account for funds received by the City with a specific purpose.
The Capital Project Funds account for financial resources to be used for the acquisition or construction of capital
projects (other than those financed by proprietary funds).
Changes in Financial Reporting Entity
The following funds were reported as major funds in the prior year, but shifted to a nonmajor fund presentation during the year
ended December 31, 2024:
• City Hall / Fire Station Bldg Project Fund
• 2023 Street Improvements Fund
Additionally, the 2024 Street & Utility Improvement and Hudson Blvd Imp-Seg A-InwdHdrx Funds were presented as
nonmajor funds in the prior year, but have now met the requirements for major fund presentation.
i 1[�d 1 �I:RY11:711u 111►Y r 1]PYI] IITKKIIIIeY 11e[e'
Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis
of accounting refers to "when" transactions are recorded regardless of the measurement focus applied.
Measurement Focus
On the government -wide Statement of Net Position and the Statement of Activities, both governmental and business -type
activities are presented using the economic resources measurement focus as defined in the second bullet point below. In the
fund financial statements, the current financial resources measurement focus or the economic resources measurement focus is
used as appropriate:
• All governmental funds utilize a current financial resources measurement focus. Only current financial assets and
liabilities are generally included on their balance sheets. Their operating statements present sources and uses of
available financial resources during a given period. These funds use fund balance as their measure of available
financial resources at the end of the period.
• The government -wide financial statements and proprietary funds utilize an economic resources measurement focus.
The accounting objectives of this measurement focus are the determination of operating income, changes in net
position (or cost recovery), financial position, and cash flows. All assets, deferred outflows, liabilities, and deferred
inflows (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is
classified as net position.
Basis of Accounting
In the government -wide Statement of Net Position and Statement of Activities, both governmental and business -type activities
are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recorded when the liability is incurred, or economic asset used. Revenues, expenses, gains, losses,
assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place.
40
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LC. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (Continued)
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this
modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing
or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days
after year end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general
obligation bond principal and interest which are reported when due.
All proprietary funds utilize the accrual basis of accounting.
LD. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General Fund, Debt
Service Funds, and occasionally other funds. The appropriated budget is prepared by fund, function, and department. The City
of Lake Elmo's department heads may make transfers of appropriations within a department. Transfers of appropriations
between departments require the approval of the Council. The legal level of budgetary control (i.e., the level at which
expenditures may not legally exceed appropriations) is the department level.
Appropriations in all budgeted funds lapse at the end of the fiscal year. 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.
I.E. USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows,
liabilities, and deferred inflows, and disclosure of contingent assets and liabilities at the date of the financial statements.
Estimates also affect reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
LF. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY
Cash and Cash Equivalents
For purposes of the Statements of Net Position, "cash, cash equivalents, and investments" includes all demand, savings, and
money market savings accounts for the City, as well as certain investments discussed below. For the purpose of the proprietary
fund Statement of Cash Flows, "cash and cash equivalents" include all demand, savings, money market savings accounts, and
highly liquid investments. All investments allocated to the Proprietary Funds have original maturities of 90 days or less and
are therefore considered to be cash equivalents.
Investments
Investments are stated at their fair value as determined in accordance with the fair value hierarchy. Short-term investments are
reported at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of
the credit standing of the issuer or by other factors. Securities traded on a national or international exchange are valued at the
last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated
fair value. Certificates of deposit are stated at cost, plus accrued interest, which approximates fair market value.
Net appreciation (depreciation) in fair value of investments includes net unrealized and realized gains and losses. Purchases
and sales of securities are recorded on a trade -date basis.
See Note 2.A. for additional information related to Cash, Cash Equivalents, and Investments
41
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LF. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY
(Continued)
Interfund Receivables and Payables
During the course of operations, transactions occur between individual funds that may result in amounts owed between funds.
Those related to good and services type transactions are classified as "due to and from other funds." Short-term interfund loans
are reported as "due to and from other funds." Long-term interfund loans are reported as "advances from and to other funds."
Interfimd receivables and payables between funds within governmental activities, as well as interfund receivables and payables
between funds within business -type activities, are eliminated in the Statement of Net Position. See Note 2.E. for details of
interfund transactions, including receivables and payables at year-end.
Prepaid Expenditures/Expenses
Prepaids, if any, represent expenditures/expenses paid during the current year to be recognized in future periods.
Receivables
In the government -wide statements, receivables consist of all revenues earned at year-end and not yet received. Allowances
for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable and not
deemed necessary at year end. Major receivable balances for the governmental activities include taxes, special assessments
and amount due from other governments. Business -type activities report utility charges and assessments as their major
receivables.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as taxes,
assessments, other intergovernmental revenues, fines, and charges for services since they are usually both measurable and
available. Revenues collectible but not available are deferred in the fund financial statements in accordance with the modified
accrual basis, but are not deferred in the government -wide financial statements in accordance with the accrual basis. Interest
and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable
and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility
accounts receivable and assessments compose the majority of proprietary fund receivables. Allowances for uncollectible
accounts receivable are based upon historical trends and the periodic aging of accounts receivable. No allowances are deemed
necessary at year end.
Leases Receivable
Lease receivables are determined based on future lease payments to be received under each corresponding lease agreement
over the lease term, discounted using the interest rate applied to the leasing arrangement. If not defined in the lease agreement,
implicit interest rates are determined based on the estimated incremental borrowing rate. Collections under the leasing
arrangements are recorded as a reduction to the corresponding lease receivable, as well as lease interest revenues.
Upon initial execution of lease, a corresponding deferred inflow of resources balance is recorded. This balance is amortized on
a straight-line basis over the term of the lease, resulting in the recognition of lease revenues.
Capital Assets
The accounting treatment over property, plant, and equipment (capital assets) depends on whether the assets are used in
governmental or proprietary fund operations and whether they are reported in the government -wide or fund financial statements.
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, 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.
42
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LF. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY
(Continued)
The range of estimated useful lives by type of asset is as follows:
Buildings 10-50 years
Other Improvements 10-20 years
Machinery and Equipment 2-25 years
Infrastructure 5-20 years
Government -wide Statements
In the government -wide financial statements, capital outlay expenditures are accounted for as capital assets. All capital assets
are valued at historical cost or estimated historical cost if actual is unavailable, except for donated capital assets which are
recorded at their estimated acquisition value at the date of donation.
Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities,
with accumulated depreciation/amortization reflected in the Statement of Net Position. Depreciation/amortization is provided
over the assets' estimated useful lives using the straight-line method.
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay
expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for
the same as in the government -wide statements.
Accounts Payable
Payables in the governmental and proprietary funds are composed almost entirely of payables to vendors.
Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered
by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used
as time off or settled (paid) during or upon separation from employment. Based on the criteria, PTO, compensatory leave, and
sick leave balances accumulated by City employees qualify for liability recognition as compensated absences. The liability for
compensated absences is reported as incurred in the proprietary fund and government -wide financial statements. The liability
for compensated absences includes salary -related benefits, where applicable.
Long -Term Debt
The accounting treatment of long-term debt and other long-term debt obligations depends on whether the liabilities pertain to
governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund
financial statements.
All long-term debt to be repaid from governmental and business -type resources are reported as liabilities in the government -
wide statements. The long-term debt consists primarily of bonds payable, but also includes various other obligations.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are
reported as other financing sources and payment of principal and interest are reported as expenditures. The accounting for
proprietary funds is the same in the fund statements as it is in the government -wide statements.
43
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LF. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY
(Continued)
Postemployment Benefits Other Than Pensions (OPEB)
Under the provisions of the various employee and union contracts, the City provides health insurance coverage for varying
lengths of time if certain age and minimum years of service requirements are met.
Net Pension Asset/Liability
The net pension asset represents the Lake Elmo Firefighters Relief Association's net pension asset as of the most recent actuarial
measurement date. The net pension liability represents the City's allocation of its pro-rata share of the net pension liabilities
of the Statewide pension plans administered by the Public Employees Retirement Administration (PERA).
PERA
For purposes of measuring the net pension asset and 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. 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.
Deferred Outflows/Inflows of Resources
In addition to assets, the Statements of Net Position report a separate section for deferred outflows of resources. This element
represents a consumption of net assets that applies to future periods and, therefore, will not be recognized as an outflow of
resources (expense) until that time. The City reports deferred outflows of resources in the government -wide and proprietary
fund Statements of Net Position in relation to the activity of the pension funds in which City employees participate.
In addition to liabilities, the Statements of Net Position and Balance Sheet report a separate section for deferred inflows of
resources. This element represents an acquisition of net assets that applies to future periods and, therefore, will not be
recognized as an inflow of resources (revenue) until that time. A previously discussed, the City reports deferred inflows of
resources in both the governmental fund Balance Sheet and the government -wide Statement of Net Position in relation to its
leasing activities. The City also reports property taxes and special assessments as deferred inflows of resources in the
governmental fund financial statements, in accordance with the modified accrual basis of accounting. Accordingly, such
amounts are deferred and recognized as inflows of resources in the period that they become available. In addition, the City
reports deferred inflows of resources in the government -wide and proprietary fund Statements of Net Position in relation to the
activity of pension funds in which City employees participate.
See Notes 3 and 4 for additional information pertaining to the deferred outflows and deferred inflows recorded to account for
pension activities.
Equity Classifications
Government -wide Financial Statements
Equity is classified as net position and displayed in three components:
Net Investment in Capital Assets — Consists of capital assets including restricted capital assets, net of accumulated
depreciation/amortization and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings
that are attributable to the acquisition, construction, or improvement of those assets.
Restricted — The portion of net position for which use is constrained by 1) external groups such as creditors, grantors,
contributors, or laws or regulations of other governments; or 2) law through constitutional provisions or enabling
legislation.
44
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LF. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY
(Continued)
Unrestricted — Remaining balance of net position that does not meet the definition of "restricted" or "net investment
in capital assets."
It is the City's policy to consider restricted net position to its depletion before unrestricted net position is applied.
Governmental Fund Financial Statements
In the fund financial statements, governmental funds report fund balances as either nonspendable, restricted, committed,
assigned, or unassigned. When the City incurs an expenditure for which it may use either restricted or unrestricted fund
balances, it uses restricted fund balances first unless unrestricted fund balances will have to be returned because they were not
used. When the City incurs an expenditure for purposes for which amounts in any unrestricted fund balance classification
could be used, it uses fund balances in the following order: Committed, assigned, unassigned.
Nonspendable — Includes amounts that cannot be spent because they are either not in spendable form, or legally or
contractually required to be maintained intact. There are no nonspendable fund balances at December 31, 2024.
Restricted — That portion of fund balance which is not available for appropriation, or which has been legally segregated
for a specific purpose.
Committed — Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action
(resolution) of the City Council, which is the highest level of decision -making authority. Committed amounts cannot be
used for any other purpose unless the City Council modifies or rescinds the commitment by resolution.
Assigned — Amounts that are constrained by the City's intent to be used for specific purposes but are neither restricted nor
committed. The City Council has delegated the power to assign fund balances to the City Administrator and/or the Finance
Director.
Unassigned — This classification represents fund balance that has not been assigned to other funds and that has not been
restricted, committed, or assigned to specific purposes within the General Fund. The City strives to maintain a minimum
unassigned fund balance in the General Fund of an amount that is not less than 50% to 60% of the next year's budgeted
expenditures of the General Fund.
See Note 2.17. for additional disclosures.
Proprietary Fund Financial Statements
Proprietary fund equity is classified the same as in the government -wide statements, as described on the previous page.
I.G. REVENUES, EXPENDITURES, AND EXPENSES
Property Tax
Under state law, municipalities are limited in their ability to levy a property tax. The City levies its property tax for the
subsequent year during the month of December. Washington County is the collecting agency for the levy and remits the
collections to the City. In the fund financial statements, property taxes are recorded as revenue in the period levied to the extent
they are collected within 60 days of year-end.
45
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
LG. REVENUES, EXPENDITURES, AND EXPENSES (Continued)
The City certifies its levy to the County each year in December, for collection the following year. The County creates the tax
list for all taxable property in the City and applies the applicable tax rate to the tax capacity of individual properties to arrive at
the actual tax for each property. The County also collects all special assessments, except for certain prepayments paid directly
to the City. The County collects all taxes and assessments, except as noted above. The County mails copies of all real estate
and personal property tax statements. Each year, property owners are required to pay one half of their real estate taxes by May
15 and the balance by October 15. Penalties and interest are assessed to property owners who do not pay their property taxes
and special assessments by the due dates.
Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by deferred inflows
of resources for taxes not received within 60 days after year end in the fund financial statements.
Special Assessments
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.
Program Revenues
Program revenues reported in the government -wide financial statements include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided or fines imposed by a given function or segment,
and (2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital
requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally
dedicated resources are reported as general revenues rather than as program revenues.
Operating Revenues and Expenses
Operating revenues and expenses for proprietary funds are those that result from providing services and producing and
delivering goods and/or services. It also includes all revenue and expenses not related to capital and noncapital financing or
investing activities.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I.G. REVENUES, EXPENDITURES, AND EXPENSES (Continued)
Expenditures/Expenses
In the government -wide financial statements, expenses are classified by function for both governmental and business -type
activities.
In the fund financial statements, expenditures are classified as follows:
Governmental Funds - By Character Current (further classified by Function)
Capital Outlay
Debt Service
Proprietary Fund - By Operating and Nonoperating
In the fund financial statements, governmental funds report expenditures of financial resources. Proprietary funds report
expenses relating to use of economic resources.
Interfund Transfers
Permanent reallocation of resources between funds of the reporting entity are classified as interfund transfers. For the purpose
of the Statement of Activities, all interfund transfers between individual governmental funds, as well as all interfund transfers
between individual proprietary funds, have been eliminated. See additional information at Note 2.E.
1.11. RECLASSIFICATIONS
Certain amounts from 2023 have been reclassified to conform to the 2024 presentation in the Management's Discussion and
Analysis section.
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
The following notes present detail information to support the amounts reported in the basic financial statements for its various
assets, liabilities, deferred outflows/inflows of resources, equity, revenues, and expenditures/expenses.
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS
Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City
Council. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market
value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (100 percent if collateral
pledged is irrevocable standby letters of credit issued by the Federal Home Loan Bank). The City complies with such laws.
Authorized collateral in lieu of a corporate surety bond includes:
• United States Government Treasury bills, Treasury notes, Treasury bonds;
• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service
available to the government entity;
• A general obligation of a state or local government, with taxing powers, rated "A" or better;
• A revenue obligation of a state or local government, with taxing powers, rated "AA" or better;
47
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
• Unrated general obligation securities of a local government, with taxing powers, pledged as collateral against funds
deposited by that same local government entity;
• Irrevocable standby letter of credit issued by a Federal Home Loan Bank accompanied by written evidence that the
Federal Home Loan Bank's public debt is rated "AA" or better by Moody's or Standard and Poor's; or
• Time deposits insured by any federal agency.
Minnesota Statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank,
or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the
financial institution furnishing the collateral. The selection should be approved by the City.
At December 31, 2024, the City's deposits, including certificates of deposit, were not exposed to custodial credit risk. The
City's deposits were sufficiently covered by federal depository insurance or by collateral held by the City's agent in the City's
name.
Investments
The City may also invest idle funds as authorized by Minnesota Statutes as follows: direct obligations guaranteed by the United
States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that
received the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of
the investments have a final maturity of 13 months or less; general obligations rated "A" or better; revenue obligations rated
"AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or better; bankers' acceptances of
United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States
corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating
agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank,
domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest
categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified
as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization
exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York,
or certain Minnesota securities broker -dealers. The City does not have any investment policies that would further limit
investment choices.
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally
accepted in the United State of America. The hierarchy is based on the valuation inputs used to measure the fair value of the
asset. Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt
and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based
on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors for
similar debt securities in active markets; equity securities are valued using fair value per share for each fund for identical equity
securities in inactive markets. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable
market inputs for similar certificates in active markets. Securities classified as Level 3 have limited trade information, these
securities are priced using the last trade price or estimated using recent trade prices.
10
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Investment balances at December 31, 2024 are as follows:
Investment Type
Money Market Funds
U.S. Government Bonds
Municipal Bonds
Brokered Certificates of Deposit
Totals
S&P's
Credit
Rating
Investment Maturities (in Y,
Fair Value Fair Less
Level Value Than 1 1-5 6 - 10
N/A N/A $ 1,157,483 $ 1,157,483 $
AA+ to AAA Level 2
A to AAA Level 2
NR Level
The investments of the City are subject to the following risks:
6,258,074 1,032,101
10,288,535 511,407
5,225,973 -
7,769,914 2,007,214
2,036,399 878,369 1,158,030
$ 19,740,491 $ 3,579,360 $ 14,153,917 $ 2,007,214
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are
provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota Statutes
limit the City's investments. The City's policy to minimize credit risk includes limiting investing funds to those
allowable under Minnesota Statute I I8A, 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.
Custodial credit risk is the risk that in the event of a failure of the counterparty to a transaction, a government will not
be able to recover the value of investment or collateral securities that are in the possession of an outside party. The
City's investment policy requires its brokers to 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.
Concentration of Credit Risk is the risk associated with the magnitude of the City's investments (considered five
percent or more) in the investments of a single issuer, excluding U.S. guaranteed investments (such as treasuries),
investment pools, and mutual funds. The City's investment policy allows no more than 5 percent of the overall
portfolio to be invested in a single issuer, except for the securities of the U.S. Government, or a maximum of 25
percent with any individual counter party in an external investment pool. At December 31, 2024, the City did not have
a significant concentration of credit risk.
• Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The
City's investment policy states that extended maturities may be utilized to take advantage of higher yields; however
no more than 25 percent 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.
IK,
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Deposits and Investments Summary
A reconciliation of cash and investments as shown on the Statements of Net Position for the City follows:
Carrying Amount of Deposits
$ 26,368,064
Investments
19,740,491
Total
$ 46,108,555
Government -wide
Cash, Cash Equivalents, and Investments
$ 46,108,555
2.B. LEASE RECEIVABLES
The City has executed various arrangements under which the City leases property to external parties. A summary of the
pertinent terms for these leasing arrangements, as well as the corresponding lease receivables, is presented below:
Governmental Activities
Original
Description
Amount
Wireless Site Lease
$ 548,874
Wireless Site Lease
696,030
Land Lease
400,078
Total Annual Interest Maturity
Lease Payment Rates Date
$2,500 - $55,902 5.50% 11/30/2047
$27,987 - $55,425 3.25% 6/30/2043
$21,012 - $31,847 3.25% 12/31/2043
Total Governmental Activities Lease Receivables
Remaining
Amount
$ 547,901
647,217
373,390
$ 1,568,508
During the year ended December 31, 2024, the City recognized revenues from leasing activities under the arrangements above
within governmental activities in the amount of $155,831.
50
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2024 is as follows:
Balance at
01/01/24 Additions Disposals Transfers
Governmental Activities
Capital Assets not Being
Depreciated or Amortized
Land
Construction In Progress
Total Capital Assets not Being
Depreciated or Amortized
Capital Assets Being Depreciated
and Amortized
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Total Capital Assets Being
Depreciated and Amortized
Less: Accumulated Depreciation
Buildings
Other Improvements
Machinery and Equipment
Infrastructure
Total Accumulated Depreciation
Total Capital Assets Being
$ 3,453,979 $ - $
18,614,757 5,350,199
22,068,736 5,350,199
4,330,670 -
3,621,479 242,023
10,503,903 887,770
68,427,205 14,841,351
86,883,257 15,971,144
Balance at
12/31/24
- $ - $ 3,453,979
(21,106,582) 2,858,374
(21,106,582) 6,312,353
- 14,813,929
19,144,599
- 423,064
4,286,566
(723,265) 50,056
10,718,464
- 5,819,533
89,088,089
(723,265) 21,106,582 123,237,718
(1,516,365)
(90,166) -
- (1,606,531)
(1,529,444)
(136,441) -
50,056 (1,615,829)
(3,579,939)
(565,839) 716,812
(50,056) (3,479,022)
(14,673,039)
(3,369,040) -
- (18,042,079)
(21,298,787)
(4,161,486) 716,812
- (24,743,461)
Depreciated and Amortized, Net 65,584,470 11,809,658 (6,453)
Capital Assets, Net $ 87,653,206 $ 17,159,857 $ (6,453) $
Depreciation is charged to governmental activities as follows:
General Government $ 18,899
Public Safety 205,720
Public Works 3,785,497
Parks and Recreation 151,370
Total Depreciation Expense $ 4,161,486
21,106,582 98,494,257
- $ 104,806,610
51
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.C. CAPITAL ASSETS (Continued)
Business -Type Activities
Capital Assets not Being
Depreciated or Amortized
Land
Construction In Progress
Total Capital Assets not Being
Depreciated or Amortized
Capital Assets Being Depreciated
and Amortized
Machinery and Equipment
Infrastructure
IT Subscription
Total Capital Assets Being
Depreciated and Amortized
Less: Accumulated Depreciation
Machinery and Equipment
Infrastructure
Less: Accumulated Amortization
IT Subscription
Total Accumulated Depreciation
and Amortization
Total Capital Assets Being
Depreciated and Amortized, Net
Balance at
01/01/24
Additions Disposals Transfers
$ 3,668,869 $ - $
11,204,477 3,999,413
14,873,346 3,999,413
413,699 700,937
106,520,024 10, 837,955
- 92,653
106,933,723 11,631,545
(330,042) (18,848)
(22,094,527) (4,901,933)
(9,113)
(22,424,569) (4,929,894)
84,509,154 6,701,651
Balance at
12/31 /24
$ - $ 3,668,869
- (14,592,197) 611,693
(14,592,197) 4,280,562
- 1,114,636
- 14,592,197 131,950,176
- 92,653
- 14,592,197 133,157,465
- - (348,890)
- (26,996,460)
- (9,113)
- (27,354,463)
14,592,197 105,803,002
Capital Assets, Net $ 99,382,500 $ 10,701,064 $ - $ - $ 110,083,564
2.D. NONCURRENT LIABILITIES
The reporting entity's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts
to be repaid from business -type activities.
Debt Detail
General Obligation Bonds and Certificates
The City of Lake Elmo issues general obligation bonds and certificates to finance the acquisition and construction of major
capital facilities and infrastructure throughout the City. General obligation bonds and certificates have been issued for both
activities pertaining to governmental and business -type operations. All bonds are direct obligations of the City and pledge the
full faith and credit of the City.
52
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.D. NONCURRENT LIABILITIES (Continued)
As of December 31, 2024, the long-term debt of the financial reporting entity, excluding compensated absences payable and
the net pension and OPEB liabilities, consists of the following:
Original Interest
Description Issue Amount Rates
Governmental Activities
General Obligation Improvement Bonds:
GO Refunding Bonds, Series 2010B $
GO Improvement Bonds, Series 2014A
GO Improvement Bonds, Series 2015A
GO Improvement Bonds, Series 2016A
GO Improvement Bonds, Series 2017A
GO Improvement Bonds, Series 2019A
GO Improvement Bonds, Series 2021A
GO Improvement Bonds, Series 2022A
GO Improvement Bonds, Series 2023A
GO Improvement Bonds, Series 2024A
Total General Obligation Improvement Bonds
General Obligation Equipment Certificates:
GO Equipment Certificates, Series 2018A
General Obligation Tax Abatement Bonds:
GO Tax Abatement Bonds, Series 2022A
Total Governmental Activities Debt
Business -Type Activities
General Obligation Revenue Bonds:
GO Refunding Bonds, Series 2012A $
GO Improvement Bonds, Series 2014A
GO Improvement Bonds, Series 2015A
GO Improvement Bonds, Series 2016A
GO Improvement Bonds, Series 2017A
GO Improvement Bonds, Series 2019A
GO Improvement Bonds, Series 2021A
GO Improvement Bonds, Series 2022A
GO Improvement Bonds, Series 2023A
GO Improvement Bonds, Series 2024A
Total Business -Type Activities - GO Bonds
Subscription Liabilities:
Sensus Analytics
Total Business -Type Activities Debt
Final Maturity Balance
Date Outstanding
1,970,000
1.00 -
3.20%
2025
$ 190,000
2,850,000
2.00 -
3.50%
2030
930,000
1,620,000
2.00 -
3.00%
2026
325,000
2,690,000
2.00 -
2.00%
2027
855,000
4,565,000
2.50 -
2.50%
2028
1,940,000
2,860,000
2.00 -
3.00%
2035
1,795,000
15,675,000
1.75 -
3.00%
2042
14,195,000
3,895,000
3.00 -
5.00%
2038
3,700,000
3,410,000
4.00 -
5.00%
2034
3,410,000
4,195,000
4.00 -
5.00%
2039
4,195,000
31,535,000
940,000 2.70 - 2.70% 2028 450,000
1,010,000 3.00 - 5.00% 2033 930,000
$ 32,915,000
4,035,000
2.00 - 2.50%
2030
$ 1,940,000
3,385,000
2.00 - 3.50%
2030
1,495,000
1,195,000
2.00 - 3.00%
2031
610,000
6,855,000
2.00 - 2.00%
2032
3,910,000
4,480,000
2.50 - 3.00%
2033
2,880,000
1,195,000
2.00 - 3.00%
2035
925,000
6,310,000
1.75 - 3.00%
2037
5,465,000
7,590,000
3.00 - 5.00%
2037
6,700,000
2,000,000
4.00 - 5.00%
2038
1,875,000
470,000
4.00 - 5.00%
2039
470,000
26,270,000
92,653 8.50% 2029 88,418
$ 26,358,418
53
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.D. NONCURRENT LIABILITIES (Continued)
Changes in Noncurrent Liabilities
The following is a summary of changes in noncurrent liabilities, excluding the net pension and OPEB liabilities, for the year
ended December 31, 2024:
Type of Debt
Governmental Activities
G.O. Improvement Bonds
G.O. Equipment Certificates
G.O. Tax Abatement Bonds
Unamortized Bond Premium
Compensated Absences
Total
Business -Type Activities
G.O. Revenue Bonds
Unamortized Bond Premium
Subscription Liabilities
Compensated Absences
Total
Amounts Due
Balance Balance Within
01/01/24 Additions Deductions 12/31/24 One Year
$ 29,860,000 $ 4,195,000 $ (2,520,000) $ 31,535,000 $ 2,770,000
555,000
- (105,000) 450,000 110,000
1,010,000
- (80,000) 930,000 85,000
1,321,965
349,883 (137,458) 1,534,390 -
110,115
81,082 - 191,197 143,398
$ 32,857,080 $ 4,625,965 $ (2,842,458) $ 34,640,587 $ 3,108,398
$ 28,115,000 $ 470,000 $ (2,315,000) $ 26,270,000 $ 2,385,000
1,082,925 29,270 (95,896) 1,016,299 -
- 92,653 (4,235) 88,418 39,872
38,291 13,373 - 51,664 38,748
$ 29,236,216 $ 605,296 $ (2,415,131) $ 27,426,381 $ 2,463,620
Governmental activity debt is typically funded through the Debt Service Fund. Business -Type activity debt is typically funded
through the Water Fund, Sewer Fund, and Storm Sewer Fund.
54
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.D. NONCURRENT LIABILITIES (Continued)
Annual Debt Service Requirements
At December 31, 2024, the estimated annual debt service requirements to maturity, including principal and interest and
excluding compensated absences payable and net pension and OPEB liabilities, are as follows:
Years Ending
December 31,
2025
2026
2027
2028
2029
2030-2034
2035-2039
2040-2042
Totals
Years Ending
December 31,
2025
2026
2027
2028
2029
2030-2034
2035-2039
Totals
Years Ending
December 31,
2025
2026
2027
2028
Totals
Governmental Activities
G.O. Improvement Bonds
Principal
Interest
Total
$ 2,770,000
$ 937,681 $
3,707,681
2,990,000
854,829
3,844,829
2,920,000
754,775
3,674,775
2,700,000
656,328
3,356,328
2,295,000
565,256
2,860,256
10,505,000
1,688,256
12,193,256
5,520,000
449,101
5,969,101
1,835,000
59,022
1,894,022
G.O. Equipment Certificates
Principal Interest Total
$ 110,000 $ 10,665 $ 120,665
110,000 7,695 117,695
115,000 4,658 119,658
115,000 1,552 116,552
$ 31,535,000 $ 5,965,248 $ 37,500,248 $ 450,000 $ 24,570 $ 474,570
Governmental Activities
G.O. Tax Abatement Bonds
Principal
Interest
Total
$ 85,000
$ 39,575 $
124,575
90,000
35,200
125,200
95,000
30,575
125,575
95,000
25,825
120,825
100,000
20,950
120,950
465,000
32,975
497,975
Business-Tvne Activities
G.O. Revenue Bonds
Principal
Interest
Total
$ 2,385,000
$ 758,194
$ 3,143,194
2,435,000
685,708
3,120,708
2,505,000
610,114
3,115,114
2,590,000
531,226
3,121,226
2,640,000
449,875
3,089,875
10,010,000
1,176,096
11,186,096
3,705,000
194,952
3,899,952
$ 930,000 $ 185,100 $ 1,115,100 $ 26,270,000 $ 4,406,165 $ 30,676,165
Business-Tvne Activities
Subscription Liabilities
Principal Interest Total
$ 39,872 $ 4,853 $ 44,725
14,301 3,520 17,821
16,123 2,233 18,356
18,122 784 18,906
$ 88,418 $ 11,390 $ 99,808
55
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.D. NONCURRENT LIABILITIES (Continued)
Interest expense totals $1,716,128 in the Statement of Activities (included in Debt Service, Water, Sewer, and Storm Sewer
lines). Interest expenditures total $897,576 for the Statement of Revenues, Expenditures and Changes in Fund Balances —
Governmental Funds (included in the line Interest and Other Charges) and $789,537 in the Statement of Revenues, Expenses,
and Changes in Net Position — Proprietary Funds (included in the line Interest and Other Charges).
2.E. INTERFUND TRANSACTIONS AND BALANCES
Operating transfers consist of the following for the year ended December 31, 2024:
Transfers In
Major Fund
Nonmajor
Transfers
Capital Project
Major Funds Out General
Funds
Total
General $ 973,193 $ - $
973,193
$ 973,193
Nonmajor Funds
ARPA 67,910 67,910
-
67,910
Vehicle Acquisition Fund 500,000 -
500,000
500,000
$ 1,541,103 $ 67,910 $
1,473,193
$ 1,541,103
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them
to the fund that statute or
budget requires to expend them and to (b) use unrestricted revenues collected in the
General Fund to
finance various programs
accounted for in other funds in accordance with budgetary authorizations.
Interfund balances at year-end are as follows:
Short -Term Balances
Due To Fund Due From Fund
Amount
Purpose
General Fund CSAH 13 Phase 2 Fund
$ 48,389
Eliminate negative cash
General Fund Railroad Crossing Improvements Fund
10,001
Eliminate negative cash
General Fund Old Village Phases 5 & 6 Fund
272,305
Eliminate negative cash
General Fund CSAH 15 (Manning Ave) Phase 3 Fund (433)
3,525
Eliminate negative cash
General Fund CSAH 15 (Manning Ave & 30th Street) Fund
14,113
Eliminate negative cash
General Fund TH36 Lake Elmo Ave Improvements Fund
11,119
Eliminate negative cash
General Fund Old Village Phase 7 Fund
44,361
Eliminate negative cash
General Fund CSAH 15 (Manning Ave) Phase 3 Fund (444)
4,027
Eliminate negative cash
General Fund 30th ST N Cap Segmt Improvement Fund
451,629
Eliminate negative cash
General Fund 2025 Street & Utility Improvements Fund
61,158
Eliminate negative cash
Total Short -Term Interfund Balance
920,627
Government Fund Elimination
(920,627)
Government -wide Internal Balances
$ -
Interfund balances are to be repaid as cash flows become available.
56
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.F. FUND EQUITY
At December 31, 2024, governmental fund equity consists of the following:
General Fund
Unassigned
Debt Service Fund
Restricted for Debt Service
2024 Street & Utility Improvement Fund
Restricted for Capital Improvements
Hudson Blvd Imp-Seg A-InwdHdrx Fund
Restricted for Capital Improvements
Nonmajor Governmental Funds
Restricted for Park Improvements
Restricted for the Development of Ball Parks
Restricted for Heritage Farms Street and Utility Improvements
Restricted for City Hall/Fire Station Project
Restricted for Tamarack Farm Estates Street Improvements
Restricted for 2022 Street Improvements
Committed for Lions Park
Assigned for Economic Development Authority
Assigned for Vehicle Acquisition
Assigned for Infrastructure Reserve
Assigned for City Facilities
Assigned for Manning and Hudson Future Stoplight
Assigned for Manning and Highway 36 Interchange
Assigned for 2023 Street Improvements
Assigned for 15th Street N Improvement
Assigned for Fire Equipment & Projects
Assigned for Street Maintenance
Unassigned
Total Nonmajor Governmental Funds Balance
Restricted Committed Assigned Unassigned
$ -
$
- $
-
$ 10,324,572
$ 5,678,193
$
- $
-
$ -
$ 368,438
$
- $
-
$ -
$ 1,219,181
$
- $
-
$ -
$ 2,185,344
$
- $
-
$ -
1,000,000
-
-
-
242,783
-
-
-
1,462,461
-
-
-
128,269
-
-
-
368,772
-
-
-
-
27,239
-
-
-
-
12,853
-
-
-
697,318
-
-
-
694,028
-
-
-
102,867
-
-
-
27,984
-
-
-
2,677
-
-
-
270,602
-
-
-
60,277
-
346,447
148,419
-
-
-
(987,666)
$ 5,387,629
$
27,239 $
2,363,472
$ (987,666)
57
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.F. FUND EQUITY (Continued)
Deficit fund balances in individual funds at December 31, 2024 consist of the following:
Fund
Nonmajor Governmental Funds
Deficit
CSAH 13 Phase 2 Fund
$
(48,389)
Railroad Crossing Improvements Fund
$ (55,451)
Old Village Phases 5 & 6
$
(272,542)
CSAH 15 Manning Avenue Phase 3 Fund
$
(3,525)
CSAH 15 Manning Avenue & 30th Street Fund
$
(14,113)
TH36 Lake Elmo Avenue Improvements Fund
$ (11,590)
Old Village Phase 7 Fund
$
(45,563)
CASH 15 (Manning Ave) Phase 3 Fund
$
(4,100)
30th St N Gap Segmt Improvement Fund
$
(470,137)
2025 Street & Utility Improvement Fund
$
(62,256)
Fund deficits are expected to be recovered through future assessments, tax levies, tax increment, or transfers.
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE
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). These plan provisions are established and administered according
to Minnesota Statutes chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes chapter 356 defines each plan's financial
reporting requirements. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal
Revenue Code.
General Employees Retirement Plan (General Plan)
Membership in the General Plan includes employees of counties, cities, townships, schools in non -certified positions, and other
governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any
employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria.
Public Employees Police and Fire Plan (Police and Fire Plan)
Membership in the Police & Fire Plan includes full-time, licensed police officers and firefighters who meet the membership
criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other PERA retirement plan
or a local relief association for the same service. Employers can provide Police & Fire Plan coverage for part-time positions
and certain other public safety positions by submitting a resolution adopted by the entity's governing body. The resolution must
state that the position meets plan requirements.
58
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE (Continued)
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. When a member is "vested," they have
earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible
retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify
for a retirement benefit.
General Employees Plan Benefits
General Employees Plan requires three years of service to vest. Benefits are based on a member's highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level
formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members
receive 1.20 percent of the highest average salary for each of the first 10 years of service and 1.70 percent for each additional
year. Under the Level formula, General Plan members receive 1.70 percent of highest average salary for all years of service.
For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of service equal 90 and normal
retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of
service. Early retirement benefits are reduced by 0.25 percent for each month under age 65. Members with 30 or more years of
service can retire at any age with a reduction of 0.25 percent for each month the member is younger than age 62. The Level
formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989
or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to
the benefit.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost -
of -living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.50
percent. The 2024 annual increase was 1.50 percent. Recipients that have been receiving the annuity or benefit for at least a
full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity
or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive
a prorated increase.
Police and Fire Plan Benefits
Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on
or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years. After five years,
vesting increase by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fire
Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a full
retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they
were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417 percent
each month members are younger than age 55.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. Recipients
that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase
will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of
the June 30 before the effective date of the increase will receive a prorated increase.
Contributions
Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution
rates can only be modified by the State Legislature.
59
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE (Continued)
General Employees Fund Contributions
General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the City
was required to contribute 7.50 percent for General Plan members. The City's contributions to the General Employees Fund
for the year ended December 31, 2024 were $164,366. The City's contributions were equal to the required contributions as set
by State Statute.
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024 and
the City was required to contribute 17.70 percent for Police and Fire Plan members. The City's contributions to the Police and
Fire Fund for the year ended December 31, 2024 were $123,614. The City's contributions were equal to the required
contributions as set by State Statute.
Pension Costs
General Employees Fund Pension Costs
At December 31, 2024, the City reported a liability of $858,774 for its proportionate share of the General Employees Fund'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 $22,206.
City's proportionate share of the net pension liability: $858,774
State of Minnesota's proportionate share of the net pension
liability associated with the City 22,206
Total
880 980
The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The City's proportionate 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, 2023
through June 30, 2024, relative to the total employer contributions received from all of PERA's participating employers. The
City's proportionate share was 0.0232 percent at the end of the measurement period and 0.0212 percent for the beginning of
the period.
For the year ended December 31, 2024, the City recognized pension expense of $72,275 for its proportionate share of the
General Employees Plan's pension expense. In addition, the City recognized an additional $595 as pension expense (and grant
revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund.
During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund.
The State of Minnesota is not included as a non -employer contributing entity in the General Employees Plan pension allocation
schedules for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a
special funding situation. The City recognized $39,513 for the year ended December 31, 2024 as revenue and an offsetting
reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the General
Employees Fund.
60
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE (Continued)
At December 31, 2024, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Differences between expected
and actual economic experience
Changes in actuarial assumptions
Difference between projected
and actual investment earnings
Changes in proportionate share
Contributions paid to PERA subsequent
to the measurement date
Deferred Outflows of Deferred Inflows of
Resources Resources
$ 78,853 $ -
4,188 304,296
- 211,857
117,138 79,200
84,063 -
Total Deferred Outflows/Inflows $ 284,242 $ 595,353
The $84,063 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 ended December 31, 2025. Other
amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year ended
December 31,
Pension Expense
2025
$
(208,701)
2026
$
(46,267)
2027
$
(74,387)
2028
$
(65,819)
Police and Fire Fund Pension Costs
At December 31, 2024, the City reported a liability of $585,467 for its proportionate share of the Police and Fire Fund's net
pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net
pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA's
participating employers. The City's proportionate share was 0.0445 percent at the end of the measurement period and 0.0244
percent for the beginning of the period.
The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024. The
contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one-
time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of
a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. 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 supplemental 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. The State of
Minnesota's proportionate share of the net pension liability associated with the City totaled $22,318.
61
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE (Continued)
City's proportionate share of the net pension liability: $585,467
State of Minnesota's proportionate share of the net pension
liability associated with the City 22,318
Total 1607 885
For the year ended December 31, 2024, the City recognized pension expense of $130,319 for its proportionate share of the
Police and Fire Plan's pension expense. The City recognized $2,496 as grant revenue and pension expense for its proportionate
share of the State of Minnesota's pension expense for the contribution of $9 million to the Police and Fire Fund special funding
situation.
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 $28.4 million in supplemental state aid because this contribution was not considered to meet the
definition of a special funding situation. The City recognized $12,638 for the year ended December 31, 2024 as revenue and
an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to
the Police and Fire Fund.
At December 31, 2024, the City reported its proportionate share of the Police and Fire Plan's deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Differences between expected
and actual economic experience
Changes in actuarial assumptions
Difference between projected
and actual investment earnings
Changes in proportionate share
Contributions paid to PERA subsequent
to the measurement date
Deferred Outflows of Deferred Inflows of
Resources Resources
152,905 $ -
328,931 472,367
- 156,628
324,395 40,839
62,938
Total Deferred Outflows/Inflows $ 869,169 $ 669,834
The $62,938 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 ended December 31, 2025. Other
amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Year ended
December 31,
Pension Expense
2025
$
43,493
2026
$
113,498
2027
$
251
2028
$
(92,192)
2029
$
71,347
62
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE (Continued)
Aggregate Pension Expense
The total pension expense for all plans recognized by the City for the year ended December 31, 2024, including the amortization
of deferred balances, was negative $15,577.
Long -Term Expected Return on Investment
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:
Asset Class
Domestic Equity
International Equity
Fixed Income
Private Markets
Total
Actuarial Methods and Assumptions
Target Allocation
33.50%
16.50%
25.00%
25.00%
100%
Long -Term Expected Real
Rate of Return
5.10%
5.30%
0.75%
5.90%
The total pension liability for each of the cost -sharing defined benefit plans was determined by an actuarial valuation as of June
30, 2024, using the entry age normal actuarial cost method. The long-term rate of return on pension plan investments used to
determine the total liability is 7.0 percent. The 7.0 percent assumption is based on a review of inflation and investment return
assumptions from a number of national investment consulting firms. The review provided a range of investment return rates
considered reasonable by the actuary. An investment return of 7.0 percent is within that range.
Inflation is assumed to be 2.25 percent for the General Employees Plan and Police and Fire Plan. Benefit increases after
retirement are assumed to be 1.25 percent for the General Employees Plan and 1.0 percent for the Police and Fire Plan.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of
service to 3.0 percent after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from 11.75 percent
after one year of service to 3.0 percent after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates
for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly
to fit PERA's experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last
reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023 actuarial
valuation. The Police & Fire Plan was reviewed in 2024. PERA anticipates the experience study will be approved by the
Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation.
63
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE (Continued)
The following changes in actuarial assumptions and plan provisions occurred in 2024:
General Employees Fund
Changes in Actuarial Assumptions:
• Rates of merit and seniority were adjusted, resulting in slightly higher rates.
• Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight
adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2
members.
• Minor increase in assumed withdrawals for males and females.
• Lower rates of disability.
• Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent
experience study.
• Minor changes to form of payment assumptions for male and female retirees.
• Minor changes to assumptions made with respect to missing participant data.
Changes in Plan Provisions
• The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to
reflect the changes in assumptions.
Police and Fire Fund
Changes in Actuarial Assumptions:
• There were no changes made to actuarial assumptions during 2024.
Changes in Plan Provisions:
• The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & Fire Plan and the
State Patrol Retirement Fund attain 90 percent funded status for three consecutive years (on an actuarial value of assets
basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90 percent funded status for
one year.
• The additional $9.0 million contribution will continue until the Police & Fire Plan is fully funded for a minimum of
three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution
was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year
(or July 1, 2048 if earlier).
Discount Rate
The discount rate used to measure the total pension liability in 2024 was 7.00 percent. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota
Statutes. Based on these assumptions, the fiduciary net positions of the General Employees Fund and the Police and Fire Fund
were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
Pension Liability Sensitivity
The following table presents the City's proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension
liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the
current discount rate:
64
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLANS — STATEWIDE (Continued)
Sensitivity Analysis
Net Pension Liabilitv (Asset) at Different Discount Rates
1% Decrease in Discount Rate
Current Discount Rate
1% Increase in Discount Rate
Pension Plan Fiduciary Net Position
General Employees Fund
6.00% $
1,875,700
7.00% $
858,774
8.00% $
22,259
Police and Fire Fund
6.00% $ 1,383,574
7.00% $ 585,467
8.00% $ (69,945)
Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report
that includes financial statements and required supplementary information. That report may be obtained on the Internet at
www.nmpera.org.
NOTE 4 DEFINED BENEFIT PENSION PLAN — FIREFIGHTERS RELIEF ASSOCIATION
Plan Description
Firefighters of the City of Lake Elmo are members of the Lake Elmo Firefighters Relief Association. The Association is the
administrator of the single -employer defined benefit pension plan available to firefighters. The plan is administered pursuant
to Minnesota Statutes Chapter 69, Chapter 424A, and the Association's by-laws. As of the most recent valuation date,
membership includes 19 active participants and 11 inactive members who are entitled to future benefits. The plan issues a
stand-alone financial statement.
Benefits Provided
Each member who is at least 50 years of age, has retired from the Lake Elmo Fire Department, has served at least 20 years of
active service with such department before retirement shall be entitled to a lump sum service pension in the amount of $5,850
for each year of active Fire Department service. Members electing retirement with at least 10 years of service will be eligible
for at least 60 percent of this benefit, increasing by 4 percent for each additional year of service up to 20 years.
If a member of the Association shall become permanently or totally disabled, the Association shall pay the sum $ 5,850 for each
year the member was an active member of the City of Lake Elmo Fire Department. A death benefit is also available, which is
payable to a survivor.
Minnesota Statutes Section 424A.10 provides for the payment of a supplemental benefit equal to 10% of a regular lump sum
distribution up to a maximum of $1,000. The supplemental benefit is in lieu of state income tax exclusion for lump sum
distributions and will no longer be available if State tax law is modified to exclude lump sum distributions from State income
tax. The Association qualifies for these benefits.
Contributions
Minnesota Statutes 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 10-year period. The significant actuarial assumptions used to compute the municipal
support are specified in Minnesota Statutes. The association is comprised of volunteers; therefore, there are no payroll
expenditures (i.e. there are no covered payroll percentage calculations).
65
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 4 DEFINED BENEFIT PENSION PLAN — FIREFIGHTERS RELIEF ASSOCIATION (Continued)
The plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to the City
$145,484 in fire state aid, which the City remitted to the Relief Association during the year ended December 31, 2024. Required
employer contributions are calculated annually based on statutory provisions. The City did not have a statutorily -required
contribution to the plan for the year ended December 31, 2024.
Pension Costs
At December 31, 2024, the City of Lake Elmo reported a net pension asset of $656,675 for the Firefighters Relief Association's
plan. The net pension asset was measured as of December 31, 2023, as determined by an actuarial valuation as of January 1,
2023.
For the year ended December 31, 2024, the City recognized pension expense of negative $148,544 for the Association. The
City also recognized $118,613, as pension expense (and grant revenue) for State of Minnesota's contributions to the Association
during the measurement period.
The following table presents the changes in net pension asset during the measurement period.
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability (Asset)
Beginning Balance 12/31/22
$ 708,203
$ 1,273,445
$ (565,242)
Service Cost
39,919
-
39,919
Interest on Pension Liability
41,648
-
41,648
Projected Investment Earnings
-
75,039
(75,039)
Contributions (State)
-
118,613
(118,613)
Asset (Gain)/Loss
-
(12,802)
12,802
Benefit Payouts
(47,604)
(47,604)
-
Administrative Fee
-
(7,850)
7,850
Net Changes
33,963
125,396
(91,433)
Balance End of Year 12/31/23
$ 742,166
$ 1,398,841
$ (656,675)
At December 31, 2024, the City of Lake Elmo reported deferred outflows of resources and deferred inflows of resources related
to the pension from the following sources:
Differences between expected
and actual economic experience
Changes in actuarial assumptions
Difference between projected
and actual investment earnings
Total Deferred Outflows/Inflows
Deferred Outflows of
Resources
5,248
124,232
Deferred Inflows of
Resources
140,050
11,554
$ 129,480 $ 151,604
66
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 4 DEFINED BENEFIT PENSION PLAN — FIREFIGHTERS RELIEF ASSOCIATION (Continued)
Amounts reported as deferred outflows and inflows of resources related to the pension will be recognized in pension expense
as follows:
Year ended
December 31,
2025
2026
2027
2028
2029
2030
Actuarial Assumptions
Pension Expense
$ (2,109)
$ 9,793
$ 22,692
$ (17,603)
$ (17,449)
$ (17,448)
The total pension asset measured at December 31, 2023 was determined using the entry age normal actuarial cost method and
the following actuarial assumptions:
Assumptions Rates
Investment Rate of Return (Discount) 5.75%
Expected Long -Term Rate of Return 5.75%
Salary Increases 2.50%
Interest on Deferred Amounts 0.00%
The following changes in actuarial assumptions and plan provisions occurred in 2024:
Changes in Plan Provisions:
• There were no changes to plan provisions since the prior valuation.
Changes in Actuarial Assumptions:
• There were no changes to actuarial assumptions since the prior valuation.
Pension Liability Sensitivity
The following presents the City's net pension asset for the Firefighters Relief Association's 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 one percent lower or one percent higher than the current discount rate:
Net Pension Asset
1 % Decrease in
Discount Rate (4.75%)
$ (626,641)
Discount Rate (5.75%
(656,675)
1 % Increase in
Discount Rate (6.75%)
$ (683,882)
67
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 4 DEFINED BENEFIT PENSION PLAN — FIREFIGHTERS RELIEF ASSOCIATION (Continued)
Plan Investments
Accet Allncntinn
The long-term expected rate of return on pension plan investments is 5.75 percent. The target allocation and best estimates of
geometric real rates of return for each major asset class of the Association's pension fund investments are summarized in the
following table:
Asset Class
Cash
Fixed Income
Equities
Pension Plan Fiduciary Net Position
Long -Term Expected
Target Allocation Real Rate of Return
12.00% 2.00%
28.00% 3.10%
60.00% 7.90%
Detailed information about the pension plan's fiduciary net position is available in a separately issued financial report that
includes financial statements and required supplementary information. That report may be obtained by contacting the City Hall
at 3880 Laverne Avenue North, Lake Elmo, Minnesota 55042.
NOTE 5 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description
The City administers a single -employer defined benefit plan (the Plan) that provides health insurance to eligible employees and
their spouses through the City's health insurance plan. The OPEB plan has no assets accumulated in a trust that meets the
requirements to be netted against OPEB liabilities. As of the most recent actuarial valuation date, there are 27 active employees
electing coverage, 3 active employees not electing coverage, and no retirees electing coverage. Benefit and eligibility provisions
are established through negotiations between the City and the City's employees. The Plan does not issue a publicly available
financial report.
Benefits Provided
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.
The City is legally required to include any retirees for who it provides health insurance coverage in the same insurance pool as
its active employees until the retiree reaches Medicare eligibility, regardless of whether the premiums are paid by the City or
the retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an "implicit rate
subsidy." This benefit arises from the assumption that the retiree is receiving a more favorable premium rate than they would
otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City's younger
and statistically healthier active employees.
Contributions
The City has historically funded these liabilities on a pay-as-you-go basis, in the amounts contractually required to satisfy the
benefit terms discussed above. For the year ended December 31, 2024, the City did not make any direct contributions to the
plan.
Chi
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 5 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued)
Net OPEB Liabilities, OPEB Expense, and Deferred Outflows/Inflows of Resources
At December 31, 2024, the City reported a net OPEB liability of $61,992 for the City's plan. The net OPEB liability was
measured as of December 31, 2023, based on an actuarial valuation as of December 31, 2023.
For the year ended December 31, 2024, the City recognized OPEB expense of negative $27,133.
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 2024. Therefore, there are no deferred
outflows or inflows of resources related to OPEB as of December 31, 2024.
Changes in the Net OPEB Liability
The following table summarizes changes in the net OPEB liability for the year ended December 31, 2024:
Changes in Total OPEB Liability (TOL)
Balance at January 1st $ 89,125
Service Cost 11,395
Interest Cost 3,919
Changes in Assumptions (56,222)
Differences between Expected and Actual Experience 21,261
Benefit Payments (7,486)
Balance at December 31st $ 61,992
Actuarial Assumptions
The following is a summary of pertinent actuarial assumptions and methods utilized, applied to all periods included in the
measurement, unless otherwise specified:
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
Actuarial Information:
Valuation Date
December 31, 2023
Measurement Date
December 31, 2023
Actuarial Cost Method
Entry Age Normal level percentage of pay
Actuarial Assets
None
Actuarial Assumptions:
Discount Rate 3.77%
Inflation 2.50%
Bond Yield 3.77%
Medical Trend Rate 6.90% for FY2024, gradually decreasing over several decades
to an ultimate rate of 3.90% in FY2075 and later years
Dental Trend Rate None
Mortality rates were based on the Pub-2010 General mortality tables with projected mortality improvements based on scale
MP-2021, and other adjustments.
69
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 5 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued)
Changes in Plan Provisions:
• There were no changes in plan provisions since the prior valuation.
Changes in Actuarial Assumptions:
• The discount rate was changed from 4.05 percent to 3.77 percent based on updated 20-year municipal bonds rates.
• Healthcare trend rates were reset to reflect updated cost increase expectations.
• Medical per capita claims costs were updated to reflect recent experience.
• Withdrawal, mortality, and salary increase rates were added from the 7/l/2023 PERA Police & Fire Plan valuation
for new Police & Fire employees.
• The percent of future retirees assumed to elect coverage at retirement changed from 40% to 20% to reflect recent plan
experience.
Net OPEB Liability Sensitivity
The following presents the net OPEB liability, calculated using the discount rate disclosed in the preceding section, as well as
what the City's net OPEB liability would be if it were calculated using a discount rate one percentage point lower or one
percentage point higher than the current discount rate:
Sensitivity of Net OPEB Liability at Current Single Discount Rate
Rates Amounts
1% Increase in Discount Rate 4.77% $57,130
Current Discount Rate 3.77% $61,992
1% Decrease in Discount Rate 2.77% $67,360
The following presents the net OPEB liability, calculated using the healthcare cost trend rates disclosed in the preceding section,
as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one
percentage point lower or one percentage point higher than the current healthcare cost trend rates:
Sensitivity of Net OPEB Liability at Current Healthcare Cost Trend Rate
Amounts
1% Increase in Healthcare Trend Rates $70,342
Current Healthcare Trend Rates $61,992
1% Decrease in Healthcare Trend Rates $55,122
NOTE 6 OTHER NOTES
6.A. RISK MANAGEMENT
Claims and Judgements
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. To manage these risks, the City purchases commercial insurance. The City retains
risk for the deductible portions of the insurance. The amounts of these deductibles are considered immaterial to the financial
statements. There were no significant reductions in insurance from the previous year settlements in excess of insurance for any
of the past two years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Liabilities, if any, include an amount for claims that have been incurred but not reported. The City's management is not aware
of any incurred but not reported claims.
70
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 6 OTHER NOTES (Continued)
6.B. OTHER EMPLOYEE BENEFITS
The City provides eligible employees future retirement benefits through participation in the Minnesota Deferred Compensation
Plan (MNDCP), which is a Section 457 plan administered by the Minnesota State Retirement System. Eligible employees of
the City may begin participating in the MNDCP commencing on the date of their employment by electing to have a portion of
their pay contributed to the Plan. Certain employees are eligible to receive a City match of employee contributions up to the
qualifying amounts set forth in their employment contracts, and there are no vesting requirements related to such contributions.
The City's contributions to the plan total $3,334 for the year ended December 31, 2024.
6.C. COMMITMENTS
During the year, the City entered into various contracts for construction services. At December 31, 2024, remaining
commitments related to these projects total $358,572.
6.1). CONTINGENCIES
The City has received notice from the Minnesota Department of Natural Resources (DNR) indicating that the volume of water
being drawn from City wells has exceeded the amount appropriated to the City under the corresponding permit. The City is
currently pursuing options for obtaining an increase to this appropriation but may be subject to fines imposed by the DNR. At
this time, the range of such fines cannot be reasonably determined.
6.E. SUBSEQUENT EVENTS
Subsequent to year end but prior to the issuance of these financial statements, the City accepted bids for two construction
projects, totaling $2,073,385.
Additionally, the City purchased land for future park lands and ballfields developments in the amount of $2,930,752. This is
partially being funded by a $2,000,000 interfund loan from the Sewer Fund.
71
REQUIRED SUPPLEMENTARY
INFORMATION
72
CITY OF LAKE ELMO, MINNESOTA
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
REVENUES
Taxes
Property Taxes
Franchise Taxes
Gravel Tax
Total Taxes
Licenses and Permits
Intergovernmental Revenue
State Revenue
Market Value Credit
Police and Fire Aid
Other State Grants and Aids
County Revenue
Other County Grants and Aids
Total Intergovernmental Revenue
Charges for Services
General Government
Other Public Safety
Streets and Highways
Total Charges for Services
Fines and Forfeitures
Miscellaneous Revenue
Investment Earnings (Losses)
Lease Interest
Refunds and Reimbursements
Contributions and Donations
Other Miscellaneous
Total Miscellaneous Revenue
TOTAL REVENUES
Actual
Variance with
Amounts
Budget
Budgeted Amounts
Budgetary
Over
Original
Final
Basis
(Under)
$ 5,998,212 $
5,998,212
$ 5,977,165
$ (21,047)
65,000
65,000
86,955
21,955
-
-
503
503
6,063,212
6,063,212
6,064,623
1,411
933,580
933,580
1,020,801
87,221
-
-
4,651
4,651
-
-
145,484
145,484
216,587
216,587
321,227
104,640
16,756
16,756
29,498
12,742
233,343
233,343
500,860
267,517
283,615
283,615
353,936
70,321
487,000
487,000
554,104
67,104
2,000
2,000
4,853
2,853
772,615
772,615
912,893
140,278
30,000
30,000
55,286
25,286
80,000
80,000
444,440
364,440
-
-
63,813
63,813
5,000
5,000
23,702
18,702
11,000
11,000
49,964
38,964
10,500
10,500
10,380
(120)
106,500
106,500
592,299
485,799
8,139,250
8,139,250
9,146,762
1,007,512
73
CITY OF LAKE ELMO, MINNESOTA
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2024
EXPENDITURES
General Government
Mayor and Council
Administration and Finance
Other General Government
Total General Government
Public Safety
Police
Current
Fire
Current
Capital Outlay
Building Inspections
Current
Other Public Safety
Current
Total Public Safety
Public Works
Street Maintenance and Storm Sewers
Snow and Ice Removal
Street Engineering
Street Lighting
Capital Outlay - Other
Total Public Works
Culture and Recreation
Parks and Recreation
Current
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers
From Other Funds
To Other Funds
TOTAL OTHER FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
Actual
Variance with
Amounts
Budget
Budgeted Amounts
Budgetary
Over
Original
Final
Basis
(Under)
$ 66,121 $
66,121
$ 46,144
$ (19,977)
941,392
940,483
892,505
(47,978)
524,772
521,861
498,507
(23,354)
1,532,285
1,528,465
1,437,156
(91,309)
1,310,573
1,308,160
1,305,884
(2,276)
1,483,038
1,527,380
1,560,948
33,568
65,000
65,000
48,226
(16,774)
1,103,590
1,108,812
803,693
(305,119)
69,000
69,000
79,038
10,038
4,031,201
4,078,352
3,797,789
(280,563)
906,959
906,959
892,719
(14,240)
97,000
97,000
76,456
(20,544)
16,000
16,000
34,763
18,763
65,000
65,000
65,154
154
36,500
36,500
40,662
4,162
1,121,459
1,121,459
1,109,754
(11,705)
451,977
486,977
492,788
5,811
7,136,922
7,215,253
6,837,487
(377,766)
1,002,328
923,997
2,309,275
1,385,278
67,910 67,910
(967,328) (967,328) (973,193) (5,865)
(967,328) (967,328) (905,283) 62,045
$ 35,000 $ (43,331) 1,403,992 $ 1,447,323
8,920,580
$ 10,324,572
74
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY'S PROPORTIONATE
SHARE OF THE NET PENSION LIABILITY
City's
Proportionate
Share of the Net
City's
Pension Liability
Proportionate
Plan
City's
State's
and the State's
Share of the Net
Fiduciary Net
Proportionate
Proportionate
Proportionate
Pension Liability
Position as a
For the
City's
Share of the
Share of the Net
Share of the Net
(Asset) as a
Percentage
Measurement
Proportion of the
Net Pension
Pension Liability
Pension Liability
City's
Percentage of
of the Total
Year Ended
Net Pension
Liability
Associated with
Associated with
Covered
its Covered
Pension
June 30,
Liability (Asset)
(Asset) (a)
the City (b)
the City (a+b)
Payroll (c)
Payroll ((a+b)/c)
Liability
General Employees
Retirement Pension
Plan
2024
0.0232%
$
858,774
$
22,206
$
880,980
$
2,013,373
43.8%
89.1%
2023
0.0212%
$
1,185,480
$
32,703
$
1,218,183
$
1,728,760
70.5%
83.1%
2022
0.0232%
$
1,837,447
$
53,688
$
1,891,135
$
1,776,733
106.4%
76.7%
2021
0.0202%
$
862,631
$
26,322
$
888,953
$
1,456,866
61.0%
87.0%
2020
0.0207%
$
1,241,060
$
38,201
$
1,279,261
$
1,476,621
86.6%
79.1%
2019
0.0193%
$
1,067,054
$
33,165
$
1,100,219
$
1,364,625
80.6%
80.2%
2018
0.0191%
$
1,059,590
$
34,710
$
1,094,300
$
1,283,088
85.3%
79.5%
2017
0.0189%
$
1,206,564
$
15,173
$
1,221,737
$
1,209,466
101.0%
75.9%
2016
0.0159%
$
1,291,001
$
16,853
$
1,307,854
$
1,041,540
125.6%
68.9%
2015
0.0169%
$
875,846
$
-
$
875,846
$
975,250
89.8%
78.2%
Public Employees Police and Fire Pension Plan
2024
0.0445%
$
585,467
$
22,318
$
607,785
$
596,169
101.9%
90.2%
2023
0.0244%
$
421,356
$
16,984
$
438,340
$
301,836
145.2%
86.5%
2022
0.0256%
$
1,114,011
$
48,633
$
1,162,644
$
292,842
397.0%
70.5%
2021
0.0165%
$
127,363
$
5,712
$
133,075
$
194,379
68.5%
93.7%
2020
0.0171%
$
225,396
$
5,309
$
230,705
$
194,511
118.6%
87.2%
2019
0.0193%
$
205,468
$
2,605
$
208,073
$
203,030
102.5%
89.3%
2018
0.0163%
$
173,741
$
1,467
$
175,208
$
172,287
101.7%
88.8%
2017
0.0100%
$
135,012
$
-
$
135,012
$
105,846
127.6%
85.4%
2016
0.0090%
$
361,186
$
-
$
361,186
$
87,111
414.6%
63.9%
2015
0.0090%
$
102,261
$
-
$
102,261
$
86,600
118.1%
86.6%
75
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY PENSION CONTRIBUTIONS
LAST TEN YEARS (Presented Prospectively)
For the Fiscal
Year Ended
December 31,
Statutorily
Required
Contribution
Contributions in
Relation to the
Statutorily
Required
Contribution
Contribution
Deficiency
(Excess)
City's
Covered
Payroll
Contributions as
a Percentage of
Covered
Payroll
General Employees Retirement Pension Plan
2024
$
164,366
$
164,366
$
-
$ 2,191,547
7.5%
2023
$
135,093
$
135,093
$
-
$ 1,801,240
7.5%
2022
$
132,383
$
132,383
$
-
$ 1,765,107
7.5%
2021
$
120,362
$
120,362
$
-
$ 1,609,407
7.5%
2020
$
109,289
$
109,289
$
-
$ 1,457,195
7.5%
2019
$
108,779
$
108,779
$
-
$ 1,450,387
7.5%
2018
$
96,960
$
96,960
$
-
$ 1,294,100
7.5%
2017
$
95,794
$
95,794
$
-
$ 1,276,944
7.5%
2016
$
85,649
$
85,649
$
-
$ 1,141,987
7.5%
2015
$
70,582
$
70,582
$
-
$ 941,092
7.5%
Public Employees
Police and Fire Pension Plan
2024
$
123,614
$
123,614
$
-
$ 698,384
17.7%
2023
$
72,744
$
72,744
$
-
$ 410,983
17.7%
2022
$
49,674
$
49,674
$
-
$ 280,644
17.7%
2021
$
47,658
$
47,658
$
-
$ 269,254
17.7%
2020
$
27,492
$
27,492
$
-
$ 155,365
17.7%
2019
$
39,225
$
39,225
$
-
$ 231,416
16.9%
2018
$
30,990
$
30,990
$
-
$ 191,350
16.2%
2017
$
20,327
$
20,327
$
-
$ 125,475
16.2%
2016
$
13,967
$
13,967
$
-
$ 86,216
16.2%
2015
$
14,257
$
14,257
$
-
$ 88,005
16.2%
Volunteer Fire Relief Association
2024
$
-
$
-
$
-
N/A
N/A
2023
$
-
$
-
$
-
N/A
N/A
2022
$
-
$
-
$
-
N/A
N/A
2021
$
-
$
76,608
$
(76,608)
N/A
N/A
2020
$
-
$
69,975
$
(69,975)
N/A
N/A
2019
$
-
$
65,533
$
(65,533)
N/A
N/A
2018
$
-
$
61,147
$
(61,147)
N/A
N/A
2017
$
-
$
59,136
$
(59,136)
N/A
N/A
2016
$
-
$
61,166
$
(61,166)
N/A
N/A
76
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CHANGES IN NET PENSION LIABILITY (ASSET)
FIREFIGHTERS RELEIF ASSOCIATION
LAST TEN YEARS (Presented Prospectively)
Measurement Year Ended December 31,
2023 2022 2021 2020 2019 2018 2017 2016 2015
Changes in Total Pension Liability (TPL)
Balance at January 1st $ 708,203 $ 864,850 $ 775,033 $ 724,844 $ 898,899 $ 681,802 $ 618,531 $ 588,689 $ 714,621
Service Cost
39,919
47,844
46,677
38,225
37,293
28,420
27,727
27,579
28,520
Interest on the TPL
41,648
45,031
43,140
39,743
42,177
36,119
35,544
36,976
37,130
Assumption Changes
-
(15,405)
-
-
-
8,730
-
11,690
-
Plan Changes
-
-
-
325,127
-
-
-
Actuarial Experience (Gains)/Losses
-
(124,184)
-
(27,779)
-
(80,312)
-
(46,403)
-
Benefit Payments
(47,604)
(109,933)
-
-
(253,525)
(100,987)
-
(191,582)
Balance at December 31st
$ 742,166
$ 708,203
$ 864,850
$ 775,033
$ 724,844
$ 898,899
$ 681,802
$ 618,531
$ 588,689
Plan Fiduciary Net Position (PFNP)
Balance at January 1st
$ 1,273,445
$ 1,462,205
$ 1,280,455
$ 1,097,917
$ 1,169,306
$ 1,279,379
$ 1,075,446
$ 963,628
$ 1,155,598
Fire State Aid
118,613
101,778
80,470
76,608
69,975
65,533
61,147
59,136
61,166
Projected Investment Income
75,039
76,145
68,948
118,822
127,902
(61,227)
156,879
70,101
(48,240)
Gain or Loss
(12,802)
(241,246)
47,138
-
-
-
-
-
-
Total Additions
180,850
(63,323)
196,556
195,430
197,877
4,306
218,026
129,237
12,926
Benefit Payments
(47,604)
(109,933)
-
-
(253,525)
(100,987)
-
-
(191,582)
Administrative Expenses
(7,850)
(15,504)
(14,806)
(12,892)
(15,741)
(13,392)
(14,093)
(17,419)
(13,314)
Total Reductions
(55,454)
(125,437)
(14,806)
(12,892)
(269,266)
(114,379)
(14,093)
(17,419)
(204,896)
Balance at December 31st
$ 1,398,841
$ 1,273,445
$ 1,462,205
$ 1,280,455
$ 1,097,917
$ 1,169,306
$ 1,279,379
$ 1,075,446
$ 963,628
Net Pension Liability (Asset) - December 31st $ (656,675) $ (565,242) $ (597,355) $ (505,422) $ (373,073) $ (270,407) $ (597,577) $ (456,915) $ (374,939)
Plan Fiduciary Net Position as a Percentage of
Total Pension Liability (Asset) 188.5% 179.8% 169.1% 165.2% 151.5% 130.1% 187.6% 173.9% 163.7%
Note: The schedule is provided prospectively with the City's fiscal year ended December 31, 2016 (December 31, 2015 measurement date) and is intended to show a ten year trend. Additional years
will be reported as they become available.
77
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CHANGES IN CITY'S NET OPEB LIABILITY
LAST TEN YEARS (Presented Prospectively)
Measurement Year Ended December 31,
2023 2022 2021 2020 2019 2018 2017
Changes in Total OPEB Liability (TOL)
Balance at January 1st $
89,125 $
96,581 $
99,789 $
79,303 $
73,788 $
63,930 $
51,220
Service Cost
11,395
14,941
15,989
13,859
9,793
9,525
8,200
Interest on the TPL
3,919
1,987
2,300
2,541
3,101
2,431
2,264
Assumption Changes
(56,222)
(17,298)
(4,833)
5,583
6,912
(2,098)
2,246
Differences Between Expected
and Actual Experience
21,261
-
(15,088)
-
(14,291)
-
-
Benefit Payments
(7,486)
(7,086)
(1,576)
(1,497)
-
-
-
Balance at December 31st $
61,992 $
89,125 $
96,581 $
99,789 $
79,303 $
73,788 $
63,930
Covered Payroll for Active Members $
2,146,050 $
1,996,038 $
1,743,100 $
1,455,967 $
1,831,326 $
1,605,997 $
1,483,782
Net OPEB Liability / Covered Payroll
2.9%
4.5%
5.5%
6.9%
4.3%
4.6%
4.3%
Note: The schedule is provided prospectively
beginning with the City's fiscal year
ended December
31, 2018 (December 31, 2017 measurement date) and is intended to
show a ten year trend. Additional years will be reported as they become available.
78
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY OPEB CONTRIBUTIONS
LAST TEN YEARS (Presented Prospectively)
For the
Year Ended
December 31,
Contractually
Required
Contribution
Contributions in
Relation to the
Contractually
Required
Contribution
Contribution
Deficiency
(Excess)
City's
Covered
Payroll
Contributions as
a Percentage of
Covered
Payroll
Other Post -Employment Benefits
2024
$ -
$ -
$ -
$
2,210,432
0.00%
2023
$ -
$ -
$ -
$
2,146,050
0.00%
2022
$ -
$ -
$ -
$
1,996,038
0.00%
2021
$ -
$ -
$ -
$
1,743,100
0.00%
2020
$ -
$ -
$ -
$
1,455,967
0.00%
2019
$ -
$ -
$ -
$
1,831,326
0.00%
2018
$ -
$ -
$ -
$
1,605,997
0.00%
2017
$ -
$ -
$ -
$
1,483,782
0.00%
Note: The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2017 and is intended
to show a ten year trend. Additional years will be reported as they become available.
79
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN — GENERAL EMPLOYEES FUND
2024 Changes
Changes in Actuarial Assumptions
• Rates of merit and seniority were adjusted, resulting in slightly higher rates.
• Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight
adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2
members.
• Minor increase in assumed withdrawals for males and females.
• Lower rates of disability.
• Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent
experience study.
• Minor changes to form of payment assumptions for male and female retirees.
• Minor changes to assumptions made with respect to missing participant data.
Changes in Plan Provisions
• The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to
reflect the changes in assumptions.
2023 Changes
Changes in Actuarial Assumptions
• The investment return assumption and single discount rate were changed from 6.50 percent to 7.00 percent.
Changes in Plan Provisions
• An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1,
2023.
• The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years
of allowable service.
• The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
• A one-time, non -compounding benefit increase of 2.50 percent minus the actual 2024 adjustment will be payable in a
lump sum for calendar year 2024 by March 31, 2024.
2022 Changes
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2021 Changes
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting
purposes.
• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
80
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN — GENERAL EMPLOYEES FUND (Continued)
2020 Changes
Changes in Actuarial Assumptions
• The price inflation assumption was decreased from 2.50 percent to 2.25 percent.
• The payroll growth assumption was decreased from 3.25 percent to 3.00 percent.
• Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect
is assumed rates that average 0.25 percent less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result
in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates
are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results
in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010
General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-
2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with
adjustments.
• The mortality improvement scale was changed from 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 100.00 percent Joint & Survivor option changed from
35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100.00 percent Joint
& Survivor option changed from 15.00 percent to 30.00 percent. The corresponding number of married new retirees
electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
• Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through
December 31, 2023 and 0.00 percent after. Augmentation was eliminated for privatizations occurring after June 30,
2020.
2019 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million
per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year
through 2031.
2018 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year
thereafter to 1.25 percent per year.
Changes in Plan Provisions
• The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019,
resulting in actuarial equivalence after June 30, 2024.
• Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.
81
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN - GENERAL EMPLOYEES FUND (Continued)
• Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already
accrued for deferred members will still apply.
• Contribution stabilizer provisions were repealed.
• Annual increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment
of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00
percent and not more than 1.50 percent, beginning January 1, 2019.
• For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal
retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
• The combined service annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for
vested and non -vested deferred members. The revised CSA load are now 0.00 percent for active member liability,
15.00 percent for vested deferred member liability, and 3.00 percent for non -vested deferred member liability.
• The assumed annual increase rate was changed for 1.00 percent per year for all years to 1.00 percent per year through
2044 and 2.50 percent per year thereafter.
Changes in Plan Provisions
• The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and
$6,000,000 thereafter.
• The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from
$21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's contribution changed from $16,000,000 to
$6,000,000 in calendar years 2019 to 2031.
2016 Changes
Changes in Actuarial Assumptions
• The assumed annual increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year
thereafter to 1.00 percent per year for all years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed
from 7.90 percent to 7.50 percent.
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary
increases, payroll growth, and the inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50
percent for inflation.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2015 Changes
Changes in Actuarial Assumptions
• The assumed annual increase rate was changed from 1.00 percent per year through 2030 and 2.50 percent per year
thereafter to 1.00 percent per year through 2035 and 2.50 percent per year thereafter.
Changes in Plan Provisions
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund,
which increased the total pension liability by $1.1 billion and increase the fiduciary plan net position by $892 million.
Upon consolidation, state and employer contributions were revised; the State's contribution of $6 million, which meets
the special funding situation definition, was due September 2015.
82
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN — POLICE AND FIRE FUND
2024 Changes
Changes in Actuarial Assumptions
• There were no changes in actuarial assumptions since the previous valuation.
Changes in Plan Provisions
• The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & Fire Plan and the
State Patrol Retirement Fund attain 90 percent funded status for three consecutive years (on an actuarial value of assets
basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90 percent funded status for
one year.
• The additional $9.0 million contribution will continue until the Police & Fire Plan is fully funded for a minimum of
three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution
was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year
(or July 1, 2048 if earlier).
2023 Changes
Changes in Actuarial Assumptions
• The investment return assumption was changed from 6.50 percent to 7.00 percent.
• The single discount rate changed from 5.40 percent to 7.00 percent.
Changes in Plan Provisions
• Additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023.
• Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a
graded 10-year vesting schedule, with 50.00 percent vesting after five years, increasing incrementally to 100.00
percent after 10 years.
• A one-time, non -compounding benefit increase of 3.00 percent will be payable in a lump sum for calendar year 2024
by March 31, 2024.
• Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a
psychological condition relating to the member's occupation.
• The total and permanent duty disability benefit was increased, effective July 1, 2023.
2022 Changes
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
• The single discount rate changed from 6.50 percent to 5.40 percent.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2021 Changes
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting
purposes.
• The inflation assumption was changed from 2.50 percent to 2.25 percent.
• The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010
Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020.
83
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN — POLICE AND FIRE FUND (Continued)
• The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with
future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality
table (with future mortality improvement according to Scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall
impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result
in slightly more unreduced retirements and fewer assumed early retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service -based rates. The changes result
in more assumed terminations.
• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates
result in more projected disabilities.
• Assumed percent married for active female members was changed from 60.00 percent to 70.00 percent. Minor changes
to form of payment assumptions were applied.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2020 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2019 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2018 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
• Postretirement benefit increases were changed to 1.00 percent for all years, with no trigger.
• An end date of July 1, 2048 was added to the existing $9.0 million state contribution.
• New annual State aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan
reaches 100 percent funding, or July 1, 2048, if earlier.
• Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80
percent of pay, effective January 1, 2020.
• Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019 and 17.70
percent of pay, effective January 1, 2020.
• Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.
• Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already
accrued for deferred members will still apply.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
84
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN — POLICE AND FIRE FUND (Continued)
2017 Changes
Changes in Actuarial Assumptions
• Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is
proposed rates that average 0.34 percent lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The Combined Service Annuity (CSA) load was 30.00 percent for vested and non -vested, deferred members. The
CSA has been changed to 33.00 percent for vested members and 2.00 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 3.00 percent for the first three years of service. Rates beyond the select
period of three years were adjusted, resulting in more expected terminations overall.
• Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent.
• Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years
younger) and female members (husbands assumed to be four years older) to the assumption that males are two years
older than females.
• The assumed percentage of female members electing joint and survivor annuities was increased.
• The assumed postretirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year
through 2064 and 2.50 percent thereafter.
• The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2016 Changes
Changes in Actuarial Assumptions
• The assumed post -retirement benefit increase rate was changed from 1.00 percent per year through 2037 and 2.50
percent thereafter to 1.00 percent per year for all future years.
• The assumed investment return was changed from 7.90 percent to 7.50 percent.
• The single discount rate changed from 7.90 percent to 5.60 percent.
• The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for
payroll growth and 2.50 percent for inflation.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2015 Changes
Changes in Actuarial Assumptions
• The assumed postretirement benefit increase rate was changed from 1.00 percent per year through 2030 and 2.50
percent per year thereafter to 1.00 percent per year through 2037 and 2.50 percent per year thereafter.
Changes in Plan Provisions
• The post -retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from
inflation up to 2.50 percent, to a fixed rate of 2.50 percent.
85
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 3 DEFINED BENEFIT PENSION PLAN — FIREFIGHTERS RELIEF ASSOCIATION
2023 Changes
Changes in Actuarial Assumptions
• There were no changes in actuarial assumptions since the previous valuation.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2022 Changes
Changes in Actuarial Assumptions
• The discount rate changed from 5.25 percent to 5.75 percent.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2021 Changes
Changes in Actuarial Assumptions
• There were no changes in actuarial assumptions since the previous valuation.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2020 Changes
Changes in Actuarial Assumptions
• There were no changes in actuarial assumptions since the previous valuation.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2019 Changes
Changes in Actuarial Assumptions
• There were no changes in actuarial assumptions since the previous valuation.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2018 Changes
Changes in Actuarial Assumptions
• There were no changes in actuarial assumptions since the previous valuation.
Changes in Plan Provisions
• The benefit level increased from $3,400 to $5,850 for each year of service.
86
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 4 OTHER POSTEMPLOYMENT BENEFIT PLAN
2024 Changes
Changes in Plan Provisions:
• There were no changes in plan provisions since the prior valuation.
Changes in Actuarial Assumptions:
• The discount rate was changed from 4.05 percent to 3.77 percent based on updated 20-year municipal bonds rates.
• Healthcare trend rates were reset to reflect updated cost increase expectations.
• Medical per capita claims costs were updated to reflect recent experience.
• Withdrawal, mortality, and salary increase rates were added from the 7/1/2023 PERA Police & Fire Plan valuation
for new Police & Fire employees.
• The percent of future retirees assumed to elect coverage at retirement changed from 40% to 20% to reflect recent plan
experience.
2023 Changes
Changes in Actuarial Assumptions
• The discount rate was changed from 1.84 percent to 4.05 percent based on updated 20-year municipal bonds rates.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2022 Changes
Changes in Actuarial Assumptions
• The discount rate was changed from 2.00 percent to 1.84 percent based on updated 20-year municipal bonds rates.
• Healthcare trend rates were reset to reflect updated cost increase expectations.
• Medical per capita claims costs were updated to reflect recent experience.
• Withdrawal, mortality, and salary increase rates were updated from the rates used in the 7/1/2019 PERA General
Employees Plan valuation to the rates used in the 7/l/2022 valuation.
Changes in Plan Provisions
• Retiree premiums were updated to current levels.
2021 Changes
Changes in Actuarial Assumptions
• The discount rate was changed from 2.75 percent to 2.00 percent.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
87
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
NOTE 4 OTHER POSTEMPLOYMENT BENEFIT PLAN (Continued)
2020 Changes
Changes in Actuarial Assumptions
• The discount rate was changed from 3.71 percent to 2.75 percent 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 percent to 2.50 percent based on an updated historical analysis of
inflation rates and forward -looking market expectations.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
2019 Changes
Changes in Actuarial Assumptions
• The discount rate was changed from 3.31 percent to 3.71 percent.
Changes in Plan Provisions
• There were no changes in plan provisions since the previous valuation.
88
SUPPLEMENTARY INFORMATION
89
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERMENTAL FUNDS
DECEMBER 31, 2024
ASSETS
Cash, Cash Equivalents, and Investments
Assessments Receivable
Accounts Receivable
Interest Receivable
TOTAL ASSETS
LIABILITIES
Accounts Payable
Construction Contracts Payable
Due to Other Funds
Unearned Revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Special Assessments
FUND BALANCES
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES
Total Nonmajor Total Nonmajor Total Nonmajor
Special Revenue Capital Project Governmental
Funds Funds Funds
$ 39,955 $ 8,170,016 $ 8,209,971
- 19,809 19,809
- 32,110 32,110
137 31,235 31,372
$ 40,092 $ 8,253,170 $ 8,293,262
$ - $ 78,528 $ 78,528
- 233,625 233,625
920,627 920,627
250,000 250,000
1,482,780 1,482,780
- 19,808 19,808
-
5,387,629
5,387,629
27,239
-
27,239
12,853
2,350,619
2,363,472
-
(987,666)
(987,666)
40,092
6,750,582
6,790,674
$ 40,092 $
8,253,170 $
8,293,262
90
CITY OF LAKE ELMO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
REVENUES
Special Assessments
Intergovernmental
Charges for Services
Investment Earnings (Losses)
Miscellaneous
TOTAL REVENUES
EXPENDITURES
Current:
Public Works
Economic Development
Capital Outlay
Debt Service:
Interest and Other Charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Sale of Assets
Bond Issuance
Premium on Bond Issuance
Transfers In
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Nonmajor Funds
FUND BALANCES - BEGINNING
(As Adjusted)
FUND BALANCES - ENDING
Total Nonmajor Total Nonmajor Total Nonmajor
Special Revenue Capital Project Governmental
Funds Funds Funds
$ - $
1,160 $
1,160
53,489
336,555
390,044
6,000
1,088,429
1,094,429
5,235
370,299
375,534
-
23,559
23,559
64,724
1,820,002
1,884,726
-
431,554
431,554
-
39
39
-
2,703,050
2,703,050
-
8,690
8,690
-
3,143,333
3,143,333
64,724
(1,323,331)
(1,258,607)
-
109,573
109,573
-
170,991
170,991
-
14,581
14,581
-
1,473,193
1,473,193
(67,910)
(500,000)
(567,910)
(67,910)
1,268,338
1,200,428
(3,186)
(54,993)
(58,179)
43,278
4,958,040
5,001,318
1,847,535 1,847,535
43,278 6,805,575 6,848,853
$ 40,092 $ 6,750,582 $ 6,790,674
91
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2024
Economic
Total Nonmajor
Lions Park Sign
Development
Special Revenue
Program Fund
Authority Fund
ARPA Fund
Funds
ASSETS
Cash, Cash Equivalents, and Investments
$ 27,148
$ 12,807
$ -
$ 39,955
Interest Receivable
91
46
-
137
TOTAL ASSETS
$ 27,239
$ 12,853
$ -
$ 40,092
FUND BALANCES
Committed
$ 27,239
$ -
$ -
$ 27,239
Assigned
-
12,853
-
12,853
TOTAL FUND BALANCES
$ 27,239
$ 12,853
$ -
$ 40,092
ON
CITY OF LAKE ELMO, MINNESOTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
REVENUES
Intergovernmental
Charges for Services
Investment Earnings (Losses)
TOTAL REVENUES
OTHER FINANCING SOURCES (USES)
Transfers Out
NET CHANGE IN FUND BALANCES
FUND BALANCES - BEGINNING
FUND BALANCES - ENDING
Economic Total Nonmajor
Lions Park Sign Development Special Revenue
Program Fund Authority Fund ARPA Fund Funds
$ 53,489 $ 53,489
6,000 - - 6,000
905 498 3,832 5,235
6,905 498 57,321 64,724
- - (67,910) (67,910)
6,905 498 (10,589) (3,186)
20,334 12,355 10,589 43,278
$ 27,239 $ 12,853 $ - $ 40,092
93
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2024
Heritage Farms
Street & Utility City Hall / Fire Manning &
Park Dedication Vehicle Improvements Station Bldg Infrastructure City Facilities Hudson Future CSAH 13 Phase
Fund Acquisition Fund Fund Project Fund Reserve Fund Fund Stoplight Fund 2 Fund
ASSETS
Cash, Cash Equivalents,
and Investments $
3,174,135
$
660,228
$
241,906
$
1,689,130
$
691,549
$
102,495
$
276,980
$ -
Assessments Receivable
-
-
-
-
19,809
-
-
-
Accounts Receivable
-
32,110
-
-
-
-
-
-
Interest Receivable
11,209
4,980
877
6,956
2,478
372
1,004
-
TOTAL ASSETS $
3,185,344
$
697,318
$
242,783
$
1,696,086
$
713,836
$
102,867
$
277,984
$ -
LIABILITIES
Accounts Payable $
-
$
-
$
-
$
-
$
-
$
-
$
-
$ -
Construction Contracts Payable
-
-
233,625
-
-
-
-
Due to Other Funds
-
-
-
-
-
-
48,389
Unearned Revenue
-
-
-
-
-
-
250,000
-
Total Liabilities
-
-
-
233,625
-
-
250,000
48,389
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue:
Special Assessments
-
-
-
-
19,808
-
-
-
FUND BALANCES
Restricted
3,185,344
-
242,783
1,462,461
-
-
-
-
Assigned
-
697,318
-
-
694,028
102,867
27,984
-
Unassigned
-
-
-
-
-
-
-
(48,389)
Total Fund Balance
3,185,344
697,318
242,783
1,462,461
694,028
102,867
27,984
(48,389)
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES $
3,185,344
$
697,318
$
242,783
$
1,696,086
$
713,836
$
102,867
$
277,984
$ -
94
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2024
Railroad
Tamarack Farm
CSAH 15
TH36 Lake
Crossing
Old Village CSAH 15 Manning &
Estates Street
Manning Avenue
Elmo Avenue 2022 Street
Improvements
Phases 5 & 6 Manning Avenue Highway 36
Improvements
& 30th Street
Improvements Improvements Old Village
Fund
Fund Phase 3 Fund Interchange Fund
Fund
Fund
Fund Fund Phase 7 Fund
ASSETS
Cash, Cash Equivalents,
and Investments
$
$ -
$ -
$ 2,667
$
127,806
$
$
$ 367,440
$ -
Assessments Receivable
-
-
-
-
-
-
Accounts Receivable
-
-
-
-
-
-
Interest Receivable
54
-
-
10
463
1,332
78
TOTAL ASSETS
$ 54
$ -
$ -
$ 2,677
$
128,269
$
$ -
$ 368,772
$ 78
LIABILITIES
Accounts Payable
$ 45,504
$ 237
$ -
$ -
$
-
$
$ 471
$ -
$ 1,280
Construction Contracts Payable
-
-
-
-
-
Due to Other Funds
10,001
272,305
3,525
14,113
11,119
-
44,361
Unearned Revenue
-
-
-
-
-
-
Total Liabilities
55,505
272,542
3,525
14,113
11,590
-
45,641
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue:
Special Assessments
-
-
-
-
FUND BALANCES
Restricted
-
-
128,269
368,772
-
Assigned
-
-
-
2,677
-
-
-
-
Unassigned
(55,451)
(272,542)
(3,525)
-
-
(14,113)
(11,590)
-
(45,563)
Total Fund Balance
(55,451)
(272,542)
(3,525)
2,677
128,269
(14,113)
(11,590)
368,772
(45,563)
TOTAL LIABILITIES, DEFERRE_
INFLOWS OF RESOURCES,
AND FUND BALANCES
$ 54
$ -
$ -
$ 2,677
$
128,269
$ -
$ -
$ 368,772
$ 78
95
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2024
30th St N Gap
2023 Street CSAH 15 15th Street N Segmt Street 2025 Street & Stillwater Area Total Nonmajor
Improvements (Manning Ave) Improvement Improvement Fire Equipment Maintenance Utility Imprvmts Sch Dist Util Capital Project
Fund Phase 3 Fund Fund Fund & Project Fund Fund Fund Fund Funds
ASSETS
Cash, Cash Equivalents,
and Investments $ 269,387 $ $ 61,163 $ $ 356,569 $ 148,343 $ - $ 218 $ 8,170,016
Assessments Receivable - - - - - 19,809
Accounts Receivable - - - - 32,110
Interest Receivable 1,215 - - 207 31,235
TOTAL ASSETS $ 270,602 $ - $ 61,163 $ - $ 356,569 $ 148,550 $ - $ 218 $ 8,253,170
LIABILITIES
Accounts Payable $
- $ 73 $
886
$ 18,508 $
10,122 $
131
$ 1,098 $
218 $ 78,528
Construction Contracts Payable
- -
-
-
-
-
-
- 233,625
Due to Other Funds
- 4,027
451,629
-
61,158
920,627
Unearned Revenue
- -
-
-
-
-
-
- 250,000
Total Liabilities
- 4,100
886
470,137
10,122
131
62,256
218 1,482,780
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue:
Special Assessments
-
-
-
19,808
FUND BALANCES
Restricted
-
-
-
-
-
5,387,629
Assigned
270,602 -
60,277
-
346,447
148,419
-
2,350,619
Unassigned
- (4,100)
-
(470,137)
-
-
(62,256)
(987,666)
Total Fund Balance
270,602 (4,100)
60,277
(470,137)
346,447
148,419
(62,256)
6,750,582
TOTAL LIABILITIES, DEFERRE_
INFLOWS OF RESOURCES,
AND FUND BALANCES $
270,602 $ - $
61,163
$ - $
356,569 $
148,550
$ - $
218 $ 8,253,170
96
CITY OF LAKE ELMO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
Heritage Farms
Street & Utility
City Hall / Fire
Manning &
Park Dedication
Vehicle
Improvements
Station Bldg Infrastructure
City Facilities
Hudson Future
CSAH 13 Phase
Fund
Acquisition Fund
Fund
Project Fund Reserve Fund
Fund
Stoplight Fund
2 Fund
REVENUES
Special Assessments
$
$
$
$ $
1,160
$
$
$
Intergovernmental
6,555
Charges for Services
1,088,429
-
Investment Earnings (Losses)
121,183
49,985
9,441
107,584
26,569
3,993
10,789
Miscellaneous
-
-
23,160
-
TOTAL REVENUES
1,209,612
49,985
9,441
107,584
57,444
3,993
10,789
EXPENDITURES
Current:
Public Works
-
-
-
-
(13)
-
-
Economic Development
-
-
-
39
Capital Outlay
448,601
831,695
94,119
-
Debt Service:
Interest and Other Charges
-
-
-
-
TOTAL EXPENDITURES
448,601
831,695
-
94,119
26
-
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES
761,011
(781,710)
9,441
13,465
57,418
3,993
10,789
OTHER FINANCING
SOURCES (USES)
Sale of Assets
-
109,573
-
-
-
-
-
Bond Issuance
-
Premium on Bond Issuance
-
-
Transfers In
367,329
-
Transfers Out
(500,000)
-
TOTAL OTHER FINANCING
SOURCES (USES)
-
(23,098)
-
-
-
-
-
NET CHANGE IN FUND BALANCES
761,011
(804,808)
9,441
13,465
57,418
3,993
10,789
FUND BALANCES- BEGINNING
2,424,333
1,502,126
233,342
-
636,610
98,874
17,195
(48,389)
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Nonmajor Funds
-
-
-
1,448,996
-
-
-
-
FUND BALANCE - BEGINNING
2,424,333
1,502,126
233,342
1,448,996
636,610
98,874
17,195
(48,389)
(As Adjusted)
FUND BALANCES - ENDING
$ 3,185,344
$ 697,318
$ 242,783
$ 1,462,461 $
694,028
$ 102,867
$ 27,984
$ (48,389)
97
CITY OF LAKE ELMO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
Railroad
Tamarack Farm
CSAH 15
TH36 Lake
Crossing
Old Village CSAH 15 Manning & Estates Street
Manning Avenue
Elmo Avenue
2022 Street
Improvements
Phases 5 & 6 Manning Avenue Highway 36 Improvements
& 30th Street
Improvements
Improvements
Old Village
Fund
Fund Phase 3 Fund Interchange Fund Fund
Fund
Fund
Fund
Phase 7 Fund
REVENUES
Special Assessments
$
$ $ $ $
$
$
$
$
Intergovernmental
Charges for Services
Investment Earnings (Losses)
1,256
105 4,986
-
14,431
3,575
Miscellaneous
-
- -
399
TOTAL REVENUES
1,256
105 4,986
399
14,431
3,575
EXPENDITURES
Current:
Public Works
-
- -
-
-
-
Economic Development
-
-
-
Capital Outlay
96,004
14,569 158
5,741
68,020
Debt Service:
Interest and Other Charges
-
- -
-
-
TOTAL EXPENDITURES
96,004
14,569 - 158
-
5,741
-
68,020
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES
(94,748)
(14,569) 105 4,828
399
(5,741)
14,431
(64,445)
OTHER FINANCING
SOURCES (USES)
Sale of Assets
- -
-
-
Bond Issuance
Premium on Bond Issuance
Transfers In
Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
(94,748)
(14,569) 105 4,828
399
(5,741)
14,431
(64,445)
FUND BALANCES- BEGINNING
39,297
(257,973) (3,525) 2,572 123,441
(14,512)
(5,849)
354,341
18,882
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Nonmajor Funds
-
- -
-
-
FUND BALANCE - BEGINNING
39,297
(257,973) (3,525) 2,572 123,441
(14,512)
(5,849)
354,341
18,882
(As Adjusted)
FUND BALANCES - ENDING
$ (55,451)
$ (272,542) $ (3,525) $ 2,677 $ 128,269
$ (14,113)
$ (11,590)
$ 368,772
$ (45,563)
98
CITY OF LAKE ELMO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
Formerly Nonmajor Funds
30th St N Gap
2024 Street &
2023 Street CSAH 15 15th Street N Segmt Fire
Street 2025 Street & Stillwater Utility Hudson Blvd Total Nonmajor
Improvements (Manning Ave) Improvement Improvement Equipment &
Maintenance Utility Area Sch Dist Improvement Imp-Seg A- Capital Project
Fund Phase 3 Fund Fund Fund Project Fund
Fund Imprvmts Fund Util Fund Fund InwdHdrx Fund Funds
REVENUES
Special Assessments $ $ $ - $ $ $ $ $ $ 1,160
Intergovernmental 330,000 336,555
Charges for Services - 1,088,429
Investment Earnings (Losses) 15,013 1,389 370,299
Miscellaneous - - - 23,559
TOTAL REVENUES 15,013 330,000 1,389 1,820,002
EXPENDITURES
Current:
Public Works
17,044
536
258
138,085
275,644
Economic Development
-
- -
-
-
- -
Capital Outlay
15,197
2,548 421,037
444,447
21,332
177,326 62,256
Debt Service:
Interest and Other Charges
-
- 8,690
-
-
- -
TOTAL EXPENDITURES
32,241
2,548 430,263
444,705
159,417
452,970 62,256
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES
(17,228)
(2,548) (100,263)
(444,705)
(159,417)
(451,581) (62,256)
OTHER FINANCING
SOURCES (USES)
S1 fA
a e o ssets -
Bond Issuance 170,991
Premium on Bond Issuance 14,581 - -
Transfers In - 505,864 600,000
Transfers Out - - -
TOTAL OTHER FINANCING
SOURCES (USES) 185,572 505,864 600,000
NET CHANGE IN FUND BALANCES (17,228) (2,548) 85,309 (444,705) 346,447 148,419
FUND BALANCES- BEGINNING - (1,552) (25,032) (25,432) - -
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Nonmajor Funds 287,830 - - -
FUND BALANCE - BEGINNING 287,830 (1,552) (25,032) (25,432)
(As Adjusted)
(62,256)
431,554
39
2,703,050
8,690
3,143,333
(1,323,331)
109,573
170,991
14,581
1,473,193
(500,000)
1,268,338
(54,993)
(56,882) (53,827) 4,958,040
56,882 53,827 1,847,535
- - 6,805,575
FUND BALANCES - ENDING $ 270,602 $ (4,100) $ 60,277 $ (47Q,137) $ 346,447 $ 148,419 $ (62,256) $ - $ $ $ 6,750,582
��
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING BALANCE SHEET
DEBT SERVICE FUND
DECEMBER 31, 2024
2012B GO
2014A GO
2015A GO
2016A GO
2017A GO
2019
2010B GO CIP Improvement
Improvement
Improvement
Improvement
Improvement
Improvement
Bonds Fund Bonds Fund
Bonds Fund
Bonds Fund
Bonds Fund
Bonds Fund
Bonds Fund
ASSETS
Cash, Cash Equivalents, and Investments $ 233,168 $ (22,881) $ 883,703 $ (32,942) $ 656,518 $ (44,065) $ 796,060
Assessments Receivable - 1,066 48,673 121,113 369,903 317,382 191,177
Interest Receivable 478 - 2,952 - 1,886 - 2,295
TOTAL ASSETS $ 233,646 $ (21,815) $ 935,328 $ 88,171 $ 1,028,307 $ 273,317 $ 989,532
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Special Assessments $ - $ 1,066 $ 48,385 $ 120,894 $ 369,541 $ 317,335 $ 190,741
FUND BALANCE
Restricted 233,646 (22,881) 886,943 (32,723) 658,766 (44,018) 798,791
TOTAL DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE $ 233,646 $ (21,815) $ 935,328 $ 88,171 $ 1,028,307 $ 273,317 $ 989,532
100
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING BALANCE SHEET (Continued)
DEBT SERVICE FUND
DECEMBER 31, 2024
2018A GO
Equipment 2021A GO 2022A GO 2023A GO 2024A GO
Cert. Bonds Improvement Improvement Improvement Improvement Total Debt
Fund Bonds Fund Bonds Fund Bonds Fund Bonds Fund Service Fund
ASSETS
Cash, Cash Equivalents, and Investments $ 44,154 $ 1,790,764 $ 199,509 $ 650,046 $ 503,497 $ 5,657,531
Assessments Receivable - 1,050,233 260,704 702,722 704,224 3,767,197
Interest Receivable - 4,621 292 1,586 461 14,571
TOTAL ASSETS $ 44,154 $ 2,845,618 $ 460,505 $ 1,354,354 $ 1,208,182 $ 9,439,299
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Special Assessments $ - $ 1,048,847 $ 259,653 $ 700,420 $ 704,224 $ 3,761,106
FUND BALANCE
Restricted 44,154 1,796,771 200,852 653,934 503,958 5,678,193
TOTAL DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE $ 44,154 $ 2,845,618 $ 460,505 $ 1,354,354 $ 1,208,182 $ 9,439,299
101
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
REVENUES
Property Taxes
Special Assessments
Investment Earnings (Losses)
TOTAL REVENUES
EXPENDITURES
Current:
Economic Development
Debt Service:
Principal
Interest and Other Charges
TOTAL EXPENDITURES
2012B GO
2014A GO
2010B GO CIP
Improvement
Improvement
Bonds Fund
Bonds Fund
Bonds Fund
$ 205,884
$ -
$ 103,597 $
-
304
37,400
4,977
-
32,813 _
210,861
304
173,810
2015A GO 2016A GO
Improvement Improvement
Bonds Fund Bonds Fund
- $ 187,529 $
126,916 75,704
- 20,737 _
126,916 283,970
2017A GO 2019
Improvement Improvement
Bonds Fund Bonds Fund
340,954 $ 298,661
61,319 45,081
- 24,594
402,273 368,336
- 5 90
56
279
215
127
185,000 - 230,000
155,000
280,000
465,000
285,000
9,443 - 32,870
10,364
20,395
54,313
52,375
194,443 5 262,960
165,420
300,674
519,528
337,502
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
16,418
299
(89,150)
(38,504)
(16,704)
(117,255)
30,834
OTHER FINANCING SOURCES (USES)
Bond Issuance
-
-
-
-
-
-
-
NET CHANGE IN FUND BALANCE
16,418
299
(89,150)
(38,504)
(16,704)
(117,255)
30,834
FUND BALANCE - BEGINNING
217,228
(23,180)
976,093
5,781
675,470
73,237
767,957
FUND BALANCE - ENDING $
233,646 $
(22,881) $
886,943 $
(32,723) $
658,766 $
(44,018) $
798,791
102
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (Continued)
DEBT SERVICE FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
REVENUES
Property Taxes
Special Assessments
Investment Earnings (Losses)
TOTAL REVENUES
EXPENDITURES
Current:
Economic Development
Debt Service:
Principal
Interest and Other Charges
TOTAL EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Bond Issuance
2018A GO
2021A GO
2022A GO
2023A GO
2024A GO
Equipment Cert.
Improvement
Improvement
Improvement
Improvement Total Debt
Bonds Fund
Bonds Fund
Bonds Fund
Bonds Fund
Bonds Fund Service Fund
$ 125,984 $ 1,025,510 $
283,998 $
351,713 $
- $ 2,923,830
- 148,427
49,320
145,730
424,152 1,114,353
- 47,581
3,687
12,194
3,095 149,678
125,984 1,221,518
337,005
509,637
427,247 4,187,861
-
306
117
5,840
- 7,035
105,000
725,000
275,000
-
- 2,705,000
13,568
336,719
196,938
174,071
15,350 916,406
118,568
1,062,025
472,055
179,911
15,350 3,628,441
7,416
159,493
(135,050)
329,726
411,897 559,420
- 92,061 92,061
NET CHANGE IN FUND BALANCE
7,416
159,493
(135,050)
329,726
503,958 651,481
FUND BALANCE - BEGINNING
36,738
1,637,278
335,902
324,208
- 5,026,712
FUND BALANCE - ENDING $
44,154 $
1,796,771 $
200,852 $
653,934 $
503,958 $ 5,678,193
103
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF INDEBTEDNESS
FOR THE YEAR ENDED DECEMBER 31, 2024
(UNAUDITED)
Initial
Outstanding
Outstanding
Principal
Issue Interest
Maturity
Authorized
Balance
Balance
Due Within
Dates Rates
Dates
Issue
01/01/24
Issued
Paid
12/31/24
One Year
GOVERNMENTAL INDEBTEDNESS
General Obligation Improvement Bonds
2010B G.O. Refunding Bonds
11/30/2010 1.00 - 3.20%
2/l/2025
$ 1,970,000
$ 375,000
$ -
$ 185,000
$ 190,000
$ 190,000
2014A G.O. Improvement Bonds
7/15/2014 2.00 - 3.50%
1/15/2030
2,850,000
1,160,000
-
230,000
930,000
145,000
2015A G.O. Improvement Bonds
8/13/2015 2.00 - 3.00%
1/15/2026
1,620,000
480,000
-
155,000
325,000
160,000
2016A G.O. Improvement Bonds
6/8/2016 2.00%
1/15/2027
2,690,000
1,135,000
-
280,000
855,000
280,000
2017A G.O. Improvement Bonds
6/8/2017 2.50%
1/15/2028
4,565,000
2,405,000
-
465,000
1,940,000
475,000
2019A G.O. Improvement Bonds
10/24/2019 2.00 - 3.00%
2/1/2035
2,860,000
2,080,000
-
285,000
1,795,000
295,000
2021A G.O. Improvement Bonds
12/7/2021 1.75 - 3.00%
2/1/2042
15,675,000
14,920,000
-
725,000
14,195,000
750,000
2022A G.O. Improvement Bonds
8/16/2022 3.00 - 5.00%
2/l/2038
3,895,000
3,895,000
-
195,000
3,700,000
205,000
2023A G.O. Improvement Bonds
7/6/2023 4.00 - 5.00%
2/l/2034
3,410,000
3,410,000
-
-
3,410,000
270,000
2024A G.O. Improvement Bonds
8/15/2024 4.00 - 5.00%
2/l/2039
4,195,000
-
4,195,000
-
4,195,000
-
43,730,000
29,860,000
4,195,000
2,520,000
31,535,000
2,770,000
General Obligation Equipment Certificates
2018A G.O. Equipment Certificates
10/16/2018 2.70%
2/l/2028
940,000
555,000
-
105,000
450,000
110,000
General Obligation Tax Abatement Bonds
2022A G.O. Tax Abatement Bonds
8/16/2022 3.00 - 5.00%
2/l/2033
1,010,000
1,010,000
-
80,000
930,000
85,000
TOTAL GOVERNMENTAL DEBTS
45,680,000
31,425,000
4,195,000
2,705,000
32,915,000
2,965,000
BUSINESS -TYPE INDEBTEDNESS
General Obligation Revenue Bonds
2012A G.O. Water Crossover Refunding Bonds
8/16/2012 2.00 - 2.50%
12/1/2030
4,035,000
2,230,000
-
290,000
1,940,000
310,000
2014A G.O. Improvement Bonds
7/15/2014 2.00 - 3.50%
1/15/2030
3,385,000
1,720,000
-
225,000
1,495,000
235,000
2015A G.O. Improvement Bonds
8/13/2015 2.00 - 3.00%
1/15/2031
1,195,000
690,000
-
80,000
610,000
80,000
2016A G.O. Improvement Bonds
6/8/2016 2.00%
1/15/2032
6,855,000
4,355,000
-
445,000
3,910,000
455,000
2017A G.O. Improvement Bonds
6/8/2017 2.50 - 3.00%
1/15/2033
4,480,000
3,165,000
-
285,000
2,880,000
290,000
2019A G.O. Improvement Bonds
10/24/2019 2.00 - 3.00%
2/l/2035
1,195,000
1,000,000
-
75,000
925,000
75,000
2021A G.O. Improvement Bonds
12/7/2021 1.75 - 3.00%
2/l/2037
6,310,000
5,880,000
-
415,000
5,465,000
420,000
2022A G.O. Improvement Bonds
8/16/2022 3.00 - 5.00%
2/l/2037
7,590,000
7,075,000
-
375,000
6,700,000
390,000
2023A G.O. Improvement Bonds
7/6/2023 4.00 - 5.00%
2/1/2038
2,000,000
2,000,000
-
125,000
1,875,000
100,000
2024A G.O. Improvement Bonds
8/15/2024 4.00 - 5.00%
2/l/2039
470,000
-
470,000
-
470,000
30,000
37,515,000
28,115,000
470,000
2,315,000
26,270,000
2,385,000
IT Subscriptions
Sensus Analytics
7/3/2024 8.50%
7/3/2029
92,653
-
92,653
4,235
88,418
39,872
TOTAL BUSINESS -TYPE DEBTS
37,607,653
28,115,000
562,653
2,319,235
26,358,418
2,424,872
TOTAL INDEBTEDNESS
$ 83,287,653 $ 59,540,000 $ 4,757,653 $ 5,024,235 $ 59,273,418 $ 5,389,872
104
STATISTICAL SECTION
(UNAUDITED)
105
CITY OF LAKE ELMO, MINNESOTA
STATISTICAL SECTION
(UNAUDITED)
This part of the City of Lake Elmo, Minnesota's Annual Comprehensive Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures and required supplementary
information says about the City's overall financial health.
Contents
Pages
Financial Trends 107-117
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 117-122
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 122-127
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 127-129
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 129-134
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.
106
CITY OF LAKE ELMO, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN YEARS
2024
2023
2022
2021
2020
Governmental Activities:
Net Investment in Capital Assets
$ 71,683,376 $
54,209,637 $
39,647,112 $
34,784,806 $
29,694,288
Restricted
15,985,561
11,658,502
12,475,169
10,249,092
8,171,161
Unrestricted
9,689,656
12,156,284
14,362,912
12,101,304
5,284,397
Total Governmental Activities Net Position
$ 97,358,593 $
78,024,423 $
66,485,193 $
57,135,202 $
43,149,846
Business -Type Activities:
Net Investment in Capital Assets $ 82,708,847 $ 69,826,808 $ 59,998,083 $ 53,867,479 $ 44,371,375
Restricted - - - - -
Unrestricted 22,960,076 22,844,327 24,515,239 19,888,783 18,578,807
Total Business -Type Activities Net Position $ 105,668,923 $ 92,671,135 $ 84,513,322 $ 73,756,262 $ 62,950,182
Primary Government:
Net Investment in Capital Assets
$ 154,392,223 $
124,036,445 $
99,645,195 $
88,652,285 $
74,065,663
Restricted
15,985,561
11,658,502
12,475,169
10,249,092
8,171,161
Unrestricted
32,649,732
35,000,611
38,878,151
31,990,087
23,863,204
Total Primary Government Net Position
$ 203,027,516 $
170,695,558 $
150,998,515 $
130,891,464 $
106,100,028
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.
GASB 87 was implemented in 2022. Net position for years prior to 2022 was not restated.
107
CITY OF LAKE ELMO, MINNESOTA
NET POSITION BY COMPONENT (Continued)
LAST TEN YEARS
2019
2018
2017
2016
2015
Governmental Activities:
Net Investment in Capital Assets
$ 24,771,065 $
15,396,520 $
8,883,320 $
9,032,535 $
8,723,329
Restricted
8,596,759
10,121,648
5,057,169
4,704,133
3,446,142
Unrestricted
4,231,363
1,086,636
4,818,383
4,136,292
3,942,646
Total Governmental Activities Net Position
$ 37,599,187 $
26,604,804 $
18,758,872 $
17,872,960 $
16,112,117
Business -Type Activities:
Net Investment in Capital Assets
$ 33,052,649 $ 18,382,934 $ 12,180,378 $
12,506,474 $
10,170,351
Restricted
- - 2,695,734
1,473,164
1,876,119
Unrestricted
16,528,968 13,842,382 9,151,417
6,400,375
3,577,285
Total Business -Type Activities Net Position
$ 49,581,617 $ 32,225,316 $ 24,027,529 $
20,380,013 $
15,623,755
Primary Government:
Net Investment in Capital Assets
$ 57,823,714 $
33,779,454 $
21,063,698 $
21,539,009 $
18,893,680
Restricted
8,596,759
10,121,648
7,752,903
6,177,297
5,322,261
Unrestricted
20,760,331
14,929,018
13,969,800
10,536,667
7,519,931
Total Primary Government Net Position
$ 87,180,804 $
58,830,120 $
42,786,401 $
38,252,973 $
31,735,872
108
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION
LAST TEN YEARS
Expenses
Governmental Activities:
General Government
$ 1,513,163
$ 1,220,552
$ 1,055,405 $
1,052,188
$ 1,008,916
Public Safety
3,853,006
3,228,801
2,939,066
3,091,321
2,681,784
Public Works
5,376,826
4,627,872
4,831,584
3,735,767
4,012,661
Parks and Recreation
848,199
526,835
415,377
391,240
428,083
Economic Development Authority
7,074
-
-
53,264
46,371
Debt Service
881,870
815,944
716,093
353,256
363,988
Total Governmental
Activities Expenses
12,480,138
10,420,004
9,957,525
8,677,036
8,541,803
Business -Type Activities:
Water
3,946,949
3,982,238
3,280,875
2,665,708
2,383,252
Sewer
2,996,505
2,524,280
2,071,858
1,563,008
1,481,586
Storm Sewer
1,185,064
1,057,111
952,799
830,044
753,177
Total Business -Type
Activities Expenses
8,128,518
7,563,629
6,305,532
5,058,760
4,618,015
Total Primary Government
Expenses $
20,608,656
$ 17,983,633
$ 16,263,057
$ 13,735,796
$ 13,159,818
Program Revenues
Governmental Activities:
Charges for Services:
General Government $
391,056
$ 350,081
$ 409,126
$ 485,785
$ 421,792
Public Safety
1,563,841
1,587,586
2,215,965
2,199,655
2,146,319
Public Works
60,485
60,388
58,414
104,817
243,060
Parks and Recreation
1,094,429
282,819
206,340
25
2,812
Economic Development Authority
-
-
24
57,539
87,778
Operating Grants and Contributions
542,462
1,102,707
391,306
279,690
1,039,823
Capital Grants and Contributions
17,900,192
9,895,930
4,783,094
8,981,866
4,823,628
Total Governmental Activities
Program Revenues
21,552,465
13,279,511
8,064,269
12,109,377
8,765,212
Business -Type Activities:
Charges for services:
Water
1,522,996
2,804,479
3,241,839
1,711,596
1,239,404
Sewer
876,248
1,442,607
1,499,393
549,567
432,583
Storm Sewer
673,538
611,219
543,589
512,624
369,689
Operating Grants and Contributions
100,000
-
-
35,635
21,893
Capital Grants and Contributions
17,238,838
9,838,374
15,257,903
18,326,363
15,636,661
Total Business -Type Activities
20,411,620
14,696,679
20,542,724
21,135,785
17,700,230
Total Primary Government
Program Revenues $
41,964,085
$ 27,976,190
$ 28,606,993
$ 33,245,162
$ 26,465,442
109
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION (Continued)
LAST TEN YEARS
2019
2018
2017
2016
2015
Expenses
Governmental Activities:
General Government
$ 1,181,219
$ 1,266,269
$ 1,503,251
$ 1,358,370
$ 1,134,132
Public Safety
2,058,419
2,161,082
1,528,253
1,308,360
1,344,282
Public Works
3,728,247
2,192,092
2,800,044
1,698,566
1,377,969
Parks and Recreation
361,730
524,445
1,299,551
660,947
639,006
Economic Development Authority
71,609
47,702
-
-
-
Debt Service
395,106
352,376
225,910
178,266
215,611
Total Governmental
Activities Expenses
7,796,330
6,543,966
7,357,009
5,204,509
4,711,000
Business -Type Activities:
Water
1,940,148
2,068,178
2,022,446
1,409,832
1,363,043
Sewer
1,082,997
846,032
1,030,058
380,650
250,866
Storm Sewer
469,765
315,967
213,514
150,302
103,536
Total Business -Type
Activities Expenses
3,492,910
3,230,177
3,266,018
1,940,784
1,717,445
Total Primary Government
Expenses $
11,289,240
$ 9,774,143
$ 10,623,027
$ 7,145,293
$ 6,428,445
Program Revenues
Governmental Activities:
Charges for Services:
General Government $
553,870
$ 379,378
$ 206,856
$ 51,009
$ 42,706
Public Safety
1,574,359
1,938,163
2,101,890
1,752,522
866,708
Public Works
126,721
-
-
-
3,615
Parks and Recreation
1,430
-
-
-
26,214
Economic Development Authority
99,690
78,573
-
-
-
Operating Grants and Contributions
795,483
248,915
229,960
235,214
249,094
Capital Grants and Contributions
11,076,353
4,970,565
2,290,265
1,452,469
2,038,940
Total Governmental Activities
Program Revenues
14,227,906
7,615,594
4,828,971
3,491,214
3,227,277
Business -Type Activities:
Charges for services:
Water
962,003
951,985
2,628,848
1,801,228
1,850,240
Sewer
306,041
252,614
2,435,749
1,315,948
1,523,067
Storm Sewer
380,645
322,700
289,375
213,233
229,252
Operating Grants and Contributions
122,350
-
-
-
-
Capital Grants and Contributions
14,114,787
7,466,627
1,489,922
3,464,567
-
Total Business -Type Activities
15,885,826
8,993,926
6,843,894
6,794,976
3,602,559
Total Primary Government
Program Revenues $ 30,113,732 $ 16,609,520 $ 11,672,865 $ 10,286,190 $ 6,829,836
110
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION (Continued)
LAST TEN YEARS
Net (Expense) Revenue:
Governmental Activities $
9,072,327
$ 2,859,507
$ (1,893,256)
$ 3,432,341
$ 223,409
Business -Type Activities
12,283,102
7,133,050
14,237,192
16,077,025
13,082,215
Total Primary Government, net
21,355,429
9,992,557
12,343,936
19,509,366
13,305,624
General Revenues and Other
Changes in Net Position:
Governmental Activities:
General Property Taxes
8,992,019
7,890,915
7,565,922
5,294,950
4,960,342
Unrestricted Grants
and Contributions
102,914
246,056
703,388
4,639
4,337
Unrestricted Investment
Earnings (Losses)
1,050,711
1,137,908
(380,657)
(13,874)
348,766
Miscellaneous
8,079
46,528
23,384
-
-
Gain (Loss) on Disposal of
Capital Assets
108,120
(221,202)
69,985
17,300
13,805
Transfers
-
(420,482)
3,261,225
5,250,000
-
Total Governmental Activities
10,261,843
8,679,723
11,243,247
10,553,015
5,327,250
Business -Type Activities:
Unrestricted Grants
and Contributions
10,470
46
2,146
-
-
Unrestricted Investment
Earnings (Losses)
704,216
604,235
(221,053)
(20,945)
286,350
Extraordinary Item
-
-
-
-
-
Transfers
-
420,482
(3,261,225)
(5,250,000)
-
Total Business -Type Activities
714,686
1,024,763
(3,480,132)
(5,270,945)
286,350
Total Primary Government $
10,976,529
$ 9,704,486
$ 7,763,115
$ 5,282,070
$ 5,613,600
Change in Net Position:
Governmental Activities $ 19,334,170 $ 11,539,230 $ 9,349,991 $ 13,985,356 $ 5,550,659
Business -Type Activities 12,997,788 8,157,813 10,757,060 10,806,080 13,368,565
Total Primary Government
Change in Net Position $ 32,331,958 $ 19,697,043 $ 20,107,051 $ 24,791,436 $ 18,919,224
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.
GASB 87 was implemented in 2022. Lease revenue for years prior to 2022 was not restated.
III
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION (Continued)
LAST TEN YEARS
Net (Expense) Revenue:
Governmental Activities $
6,431,576
$ 1,071,628
$ (2,528,038)
$ (1,713,295)
$ (1,483,723)
Business -Type Activities
12,392,916
5,763,749
3,577,876
4,854,192
1,885,114
Total Primary Government, net
18,824,492
6,835,377
1,049,838
3,140,897
401,391
General Revenues and Other
Changes in Net Position:
Governmental Activities:
General Property Taxes
4,181,914
3,610,106
3,040,413
3,226,739
3,204,119
Unrestricted Grants
and Contributions
4,956
6,868
2,749
8,584
2,749
Unrestricted Investment
Earnings (Losses)
331,010
115,583
48,987
43,228
46,589
Miscellaneous
-
-
158,350
52,479
73,738
Gain (Loss) on Disposal of
Capital Assets
44,927
8,991
-
-
-
Transfers
-
840
-
143,105
220,842
Total Governmental Activities
4,562,807
3,742,388
3,250,499
3,474,135
3,548,037
Business -Type Activities:
Unrestricted Grants
and Contributions
-
956
-
748
-
Unrestricted Investment
Earnings (Losses)
411,206
96,425
46,757
44,423
39,757
Extraordinary Item
4,552,179
-
-
-
-
Transfers
-
(840)
-
(143,105)
(220,842)
Total Business -Type Activities
4,963,385
96,541
46,757
(97,934)
(181,085)
Total Primary Government $
9,526,192
$ 3,838,929
$ 3,297,256
$ 3,376,201
$ 3,366,952
Change in Net Position:
Governmental Activities $ 10,994,383 $ 4,814,016 $ 722,461 $ 1,760,840 $ 2,064,314
Business -Type Activities 17,356,301 5,860,290 3,624,633 4,756,258 1,704,029
Total Primary Government
Change in Net Position $ 28,350,684 $ 10,674,306 $ 4,347,094 $ 6,517,098 $ 3,768,343
112
CITY OF LAKE ELMO, MINNESOTA
FUND BALANCES — GOVERNMENTAL FUNDS
LAST TEN YEARS
2024
2023
2022
2021
2020
General Fund:
Nonspendable
$ -
$ -
$ -
$ -
$ 21,206
Committed
-
-
-
-
-
Unassigned
10,324,572
8,920,580
7,540,239
5,618,812
5,212,435
Total General Fund
10,324,572
8,920,580
7,540,239
5,618,812
5,233,641
All Other Governmental Funds:
Nonspendable
-
-
-
-
-
Restricted
12,653,441
8,468,881
9,933,623
17,458,949
5,814,832
Committed
27,239
20,334
14,120
7,673
7,314
Assigned
2,363,472
3,768,614
7,145,740
7,571,501
2,653,880
Unassigned
(987,666)
(492,973)
(198,128)
(246,004)
(1,525,916)
Total all Other Governmental Funds
14,056,486
11,764,856
16,895,355
24,792,119
6,950,110
Total Governmental Funds
$ 24,381,058
$ 20,685,436
$ 24,435,594
$ 30,410,931
$ 12,183,751
113
CITY OF LAKE ELMO, MINNESOTA
FUND BALANCES — GOVERNMENTAL FUNDS (Continued)
LAST TEN YEARS
2019 2018 2017
2016
2015
General Fund:
Nonspendable
$ 28,162 $ 18,951 $ 410,193 $
409,222 $
432,306
Committed
- - 200,000
200,000
-
Unassigned
4,286,022 4,756,695 3,499,133
3,279,815
2,754,976
Total General Fund
4,314,184 4,775,646 4,109,326
3,889,037
3,187,282
All Other Governmental Funds:
Nonspendable
-
395
675,000
-
3,908
Restricted
5,973,451
6,133,168
2,849,956
3,248,230
2,477,730
Committed
24,070
11,003
-
-
-
Assigned
1,746,202
1,198,909
1,307,216
1,504,656
1,768,742
Unassigned
(757,968)
(3,043,623)
(681,681)
(418,169)
(431,755)
Total all Other Governmental Funds
6,985,755
4,299,852
4,150,491
4,334,717
3,818,625
Total Governmental Funds
$ 11,299,939 $
9,075,498 $
8,259,817 $
8,223,754 $
7,005,907
114
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN YEARS
Revenues:
General Property Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeits
Special Assessments
Park Dedication Fees
Investment Earnings (Losses)
Lease Interest
Miscellaneous
Total Revenues
Expenditures:
Current:
General Government
Public Safety
Public Works
Parks And Recreation
Economic Development Authority
Debt service:
Principal
Interest and Fiscal Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Issuance of Debt
Premium on Issuance of Debt
(Discount) on Issuance of Debt
Proceeds from Sale of Capital Assets
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balance
Debt Service as a Percentage of
$ 8,988,453
$ 7,888,556
$ 7,562,013
$ 5,303,553
$ 4,947,133
1,020,801
1,148,190
1,646,539
1,485,658
1,425,695
2,326,904
1,331,531
1,121,633
722,128
1,023,193
2,007,322
1,081,606
1,170,762
1,151,914
1,273,241
55,286
45,402
34,711
45,749
33,584
1,115,513
909,054
570,486
862,766
474,099
-
-
-
1,845,371
714,558
986,898
1,072,572
(419,853)
(13,874)
348,766
63,813
65,336
39,196
-
-
107,605
86,193
150,426
177,000
183,711
16,672,595
13,628,440
11, 875,913
11, 580,265
10,423,980
1,437,156
1,213,697
1,017,210
1,056,983
1,005,254
3,749,563
3,037,244
2,701,216
3,003,677
2,641,770
1,501,472
1,355,217
1,763,030
1,488,448
1,493,370
492,788
410,492
282,789
258,690
310,066
7,074
-
-
53,264
46,371
2,705,000
2,480,000
1,870,000
3,641,000
1,790,000
990,313
863,089
611,636
425,797
420,299
6,748,063
11, 806,496
14, 912, 731
4,915,641
1,846,843
17,631,429
21,166,235
23,158,612
14,843,500
9,553,973
(958,834)
(7,537,795)
(11,282,699)
(3,263,235)
870,007
4,195,000
3,410,000
4,905,000
6,126,989
-
349,883
317,037
326,200
(876,989)
-
-
-
-
15,675,000
-
109,573
60,600
76,162
548,115
13,805
1,541,103
466,799
252,074
-
1,900,244
(1,541,103)
(466,799)
(252,074)
17,300
(1,900,244)
4,654,456
3,787,637
5,307,362
21,490,415
13,805
$ 3,695,622
$ (3,750,158)
$ (5,975,337)
$ 18,227,180
$ 883,812
Noncapital Expenditures 33.1% 35.1% 28.3% 40.9% 26.8%
Debt Service as a Percentage of
Total Expenditures 21.0% 15.8% 10.7% 27.4% 23.1%
GASB 87 was implemented in 2022. Lease revenue for years prior to 2022 was not restated.
115
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS (Continued)
LAST TEN YEARS
Revenues:
General Property Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeits
Special Assessments
Park Dedication Fees
Investment Earnings (Losses)
Lease Interest
Miscellaneous
Total Revenues
Expenditures:
Current:
General Government
Public Safety
Public Works
Parks And Recreation
Economic Development Authority
Debt service:
Principal
Interest and Fiscal Charges
Capital Outlay
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses):
Issuance of Debt
Premium on Issuance of Debt
(Discount) on Issuance of Debt
Proceeds from Sale of Capital Assets
Transfers In
Transfers Out
Total Other Financing
Sources (Uses)
Net Change in Fund Balance
Debt Service as a Percentage of
Noncapital Expenditures
Debt Service as a Percentage of
Total Expenditures
$ 4,182,327 $ 3,610,508
1,055,038
1,317,648
2,819,961
247,178
1,079,342
899,808
36,696
49,203
649,487
1,398,155
123,500
502,802
331,010
115,583
201,494 129,455
10,478,855 8,270,340
$ 3,042,074 $ 3,231,674
2,046,462
1,713,918
1,023,864
282,874
137,920
38,608
41,418
49,505
455,493
897,323
265,783
171,708
48,987
43,228
265,133 77,491
7,327,134 6,506,329
$ 3,222,216
828,494
296,902
35,796
48,739
1,316,239
138,158
46,415
99,055
6,032,014
1,136,908
1,208,145
1,502,904
1,358,306
1,094,723
1,948,269
1,644,159
1,470,726
1,262,040
1,203,765
1,875,606
1,227,521
1,185,828
893,644
686,401
265,260
241,761
603,292
500,689
457,749
71,609
47,702
-
-
-
1,615,000
1,175,000
910,000
826,219
667,342
454,814
230,822
463,570
242,392
226,611
4,354,643
4,552,089
5,860,917
3,126,782
2,729,512
11,722,109
10,327,199
11,997,237
8,210,072
7,066,103
(1,243,254) (2,056,859) (4,670,103) (1,703,743) (1,034,089)
2,860,000
1,866,000
4,565,000
2,690,000
1,620,000
168,168
-
166,068
102,877
32,137
-
-
(26,302)
(14,392)
(11,386)
44,927
8,991
1,400
-
30,000
1,181,173
56,209
-
143,105
220,842
(786,573)
(173,190)
-
-
-
3,467,695
1,758,010
4,706,166
2,921,590
1,891,593
$ 2,224,441
$ (298,849) $
36,063 $
1,217,847 $
857,504
26.1%
24.2%
22.4%
21.0%
20.6%
17.7%
13.6%
11.4%
13.0%
12.7%
116
CITY OF LAKE ELMO, MINNESOTA
TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN YEARS
Total
% of Tax
Taxable
Tax Capacity
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
2015
$ 1,184,578,800
$ 12,938,515
$ 243,104
$ 13,181,619
$ 13,072,105
23.798
1.11%
2016
1,224,463,300
13,386,725
266,218
13,652,943
13,441,204
23.121
1.12%
2017
1,316,618,700
14,520,320
292,938
14,813,258
14,631,062
20.018
1.13%
2018
1,452,554,500
16,054,044
326,744
16,380,788
15,359,350
22.442
1.13%
2019
1,648,277,500
18,184,317
345,172
18,529,489
18,249,623
22.927
1.12%
2020
1,901,067,300
20,907,484
345,800
21,253,284
20,021,726
23.476
1.12%
2021
2,009,618,900
21,975,125
374,464
22,349,589
21,116,953
23.638
1.11%
2022
2,231,230,900
24,469,045
287,646
24,756,691
23,487,099
30.546
1.11%
2023
2,862,780,200
31,639,649
309,460
31,949,109
30,606,781
24.064
1.12%
2024
3,186,775,200
35,724,938
302,982
36,027,920
34,640,436
24.631
1.13%
(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.
117
CITY OF LAKE ELMO, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN YEARS
City
Direct Rate
Overlapping
Rates
Operating
Debt
Total
Range
of Tax
Range
of Tax
Special
Range of Total
Fiscal
Tax
Service
Tax
Rates for ISD's
Washington
Rates for
Taxing
Direct and Overlapping
Year
Rate
Tax Rate
Rate
622, 832 & 834
County
Watershed Districts
Districts
Tax Rates
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
(1)
6.335
22.442
19.349
- 32.161
29.709
0.819
- 5.021
3.072
75.391
92.405
2019
16.258
(1)
6.669
22.927
18.442
- 31.894
29.305
0.808
- 5.263
3.994
75.476
92.100
2020
16.777
(1)
6.700
23.477
15.321
- 29.926
28.610
0.766
- 4.850
3.738
71.911
91.753
2021
17.178
(1)
6.460
23.638
17.277
- 29.554
27.244
0.742
- 4.835
3.593
72.495
90.389
2022
20.505
(1)
10.041
30.546
19.502
- 32.173
27.526
0.718
- 4.437
3.483
81.775
97.476
2023
15.803
8.261
24.064
17.143
- 29.825
23.620
0.654
- 3.867
2.974
68.456
83.462
2024
16.559
8.072
24.631
22.033
- 29.550
21.987
0.632
- 3.497
2.833
72.116
81.576
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) Excludes Library Levy component effective 1/1/2018 due to going back to Washington County
118
CITY OF LAKE ELMO, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2024
2015
Percentage
Percentage
of Total
of Total
Taxable
City Tax
Taxable
City Tax
Tax
Capacity
Tax
Capacity
Taxpayer
Capacity
Rank
Value
Capacity
Rank
Value
CONTINENTAL 483 FUND LLC
$ 892,543
1
2.48%
$
-
-
DAKOTA UPREIT LP
$ 322,274
2
0.89%
$
179,262
3
1.36%
BREMER FINANCIAL SERVICES INC
$ 269,252
3
0.75%
$
169,652
4
1.29%
MILL HIGH POINTE LLC
$ 221,980
4
0.62%
$
-
-
BOULDER PONDS SENIOR LIVING LLC
$ 217,581
5
0.60%
$
-
-
EAGLE POINT MEDICAL BUILDING LLC
$ 216,802
6
0.60%
$
-
-
MHC CIMARRON LLC
$ 205,833
7
0.57%
$
136,610
5
1.04%
XCEL ENERGY
$ 202,354
8
0.56%
$
223,288
1
1.69%
LAKE ELMO INDEPENDENT LIVING LL(
$ 193,218
9
0.54%
$
-
-
ARBOR GLEN SENIOR LIVING LLC
$ 186,968
10
0.52%
$
-
-
IRET Properties
$ -
-
$
205,342
2
1.56%
Norman James LLC
$
64,976
8
0.49%
HOA Hotels LLC
$ -
-
$
108,150
6
0.82%
Tartan Park LLC
$ -
-
$
100,704
7
0.76%
Danate Proper Inv I LLC
$ -
-
$
59,250
10
0.45%
Davis Estates LTD
$ -
-
$
64,912
9
0.49%
Total
$ 2,928,805
8.13%
$ 1,312,146
9.95%
Source: Washington County Taxation Division
Total Tax Capacity (City) 36,027,920 13,181,619
119
CITY OF LAKE ELMO, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
Collected within the
Taxes Levied
Net Tax Levy
Fiscal Year of the Levy
Collections in
Total Collections to Date
Outstanding
Fiscal
for the
for the
Percentage
Subsequent
Percentage
Delinquent
Year
Fiscal Year
Fiscal Year (1)
Amount
of Net Levy
Years
Amount
of Net Levy
Taxes
2015
$ 3,113,017
$ 3,133,137
$ 3,112,989
99.36%
$ 19,874
$ 3,132,863
99.99%
$ 274
2016
3,112,204
3,112,204
3,068,116
98.58%
42,044
3,110,160
99.93%
2,044
2017
2,950,426
2,950,426
2,935,173
99.48%
12,485
2,947,658
99.91%
2,768
2018
3,596,601
3,592,491
3,574,859
99.51%
13,239
3,588,098
99.88%
4,393
2019
4,179,840
4,175,590
4,149,059
99.36%
19,244
4,168,303
99.83%
7,287
2020
4,949,823
4,945,184
4,864,708
98.37%
43,074
4,907,782
99.24%
37,402
2021
5,263,268
5,258,656
5,205,793
98.99%
50,910
5,256,703
99.96%
1,953
2022
7,468,748
7,463,868
7,372,100
98.77%
61,909
7,434,009
99.60%
29,859
2023
7,798,403
7,793,724
7,738,743
99.29%
47,873
7,786,616
99.91%
7,108
2024
8,922,042
8,917,228
8,811,084
98.81%
49,418
8,860,502
99.36%
56,726
(1) Tax Levy adjusted for powerline and market value credits and AG program credits prior to 2016
Delinquent Taxes
as a Percentage of
Total Net Tax Lew
0.01 %
0.07%
0.09%
0.12%
0.17%
0.76%
0.04%
0.40%
0.09%
0.64%
120
CITY OF LAKE ELMO, MINNESOTA
WATER AND SANITARY SEWER CHARGES BY CUSTOMER
LAST TEN YEARS
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Water (in millions of gallons):
Residential
331.538
399.645
351.923
323.632
203.453
173.925
96.882
93.513
98.044
84.007
Commercial service
33.174
36.773
46.427
50.822
157.170
87.935
22.189
16.603
29.379
21.653
Total gallons
364.712
436.418
398.350
374.454
360.623
261.860
119.071
110.116
127.423
105.660
Total direct rate per 1,000 gallons:
Residential (2)
2.25
2.18
2.16
2.14
2.12
2.12
2.06
2.00
2.14
2.14
Commercial service (2)
3.49
3.39
3.36
3.33
3.30
3.30
3.20
3.11
3.11
3.11
Sanitary Sewer (in millions of gallons):
Residential (1)
85.599
105.255
96.361
75.550
46.170
41.003
32.409
38.340
6.812
3.794
Commercial service
24.384
22.900
20.432
16.021
11.779
12.943
12.267
6.807
9.125
8.179
Total gallons
109.983
128.155
116.793
91.571
57.949
53.946
44.676
45.147
15.937
11.973
Total direct rate per 1,000 gallons
4.99
4.80
4.75
4.70
4.65
4.60
4.55
4.50
4.50
4.50
(1) City did not have any residential sanitary sewer customers in 2014 and prior
(2) City uses tiers, rate represents first tier, up to 15,000 gallons rate
121
CITY OF LAKE ELMO, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN YEARS
Business -Type
Governmental Activities
Activities
G.O.
G.O.
G.O. Capital
Other
Total
G.O. Utility
Percentage
Fiscal
Improvement
Equipment
Improvement
Notes and
Governmental
Revenue
Total Primary
of Personal
Per
Year
Bonds
Certificates
Plan Bonds
Bonds
Activities
Bonds
Government
Income
Capita
2015
$ 8,095,288
$ -
$ 1,687,803
$ 21,219
$ 9,804,310
$ 12,622,484
$ 22,426,794
6.0%
2,779
2016
10,210,038
-
1,537,530
-
11,747,568
18,990,395
30,737,963
8.4%
3,809
2017
14,151,671
-
1,382,249
-
15,533,920
22,866,787
38,400,707
8.4%
3,990
2018
13,185,126
940,000
1,226,928
926,000
16,278,054
21,680,126
37,958,180
6.7%
3,608
2019
14,697,425
940,000
1,065,000
926,000
17,628,425
21,520,145
39,148,570
6.0%
3,525
2020
13,159,432
850,000
900,000
881,000
15,790,432
20,105,366
35,895,798
4.7%
3,167
2021
26,839,553
755,000
730,000
-
28,324,553
22,841,659
51,166,212
5.5%
4,043
2022
29,385,678
655,000
555,000
1,010,000
31,605,678
29,470,720
61,076,398
5.7%
4,519
2023
30,806,965
555,000
375,000
1,010,000
32,746,965
29,197,925
61,944,890
5.6%
4,414
2024
31,345,000
$450,000
190,000
930,000
$32,915,000
26,270,000
59,185,000
5.3%
4,171
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.
122
CITY OF LAKE ELMO, MINNESOTA
RATIOS OF NET GENERAL BONDED DEBT
LAST TEN YEARS
General Bonded Debt Outstanding
Percentage
G.O.
G.O.
G.O. Capital
Other
G.O. Utility
Less: Amounts
Net General
of Actual
Fiscal
Improvement
Equipment
Improvement
Notes and
Revenue
Available in Debt
Bonded Debt
Taxable Value
Per
Year
Bonds
Certificates
Plan Bonds
Bonds
Bonds
Total*
Service Funds
Outstanding
of Property
Capita (Net)
2015
$ 8,095,288
$ -
$ 1,687,803
$ 21,219
$ 12,622,484
$ 22,426,794
$ (2,477,730)
$ 19,949,064
1.68%
2,472
2016
10,210,038
-
1,537,530
-
18,990,395
30,737,963
(3,215,590)
27,522,373
2.25%
3,411
2017
14,151,671
-
1,382,249
-
22,866,787
38,400,707
(3,524,956)
34,875,751
2.65%
3,623
2018
13,185,126
940,000
1,226,928
926,000
21,680,126
37,958,180
(4,461,692)
33,496,488
2.31%
3,184
2019
14,697,425
940,000
1,065,000
926,000
21,520,145
39,148,570
(4,716,520)
34,432,050
2.09%
3,101
2020
13,159,432
850,000
900,000
881,000
20,105,366
35,895,798
(4,530,993)
31,364,805
1.65%
2,767
2021
26,839,553
755,000
730,000
-
22,841,659
51,166,212
(3,893,266)
47,272,946
2.35%
3,736
2022
29,385,678
655,000
555,000
1,010,000
29,470,720
61,076,398
(4,535,578)
56,540,820
2.53%
4,184
2023
30,806,965
555,000
375,000
1,010,000
29,197,925
61,944,890
(5,026,712)
56,918,178
1.99%
4,056
2024
31,345,000
450,000
190,000
930,000
26,270,000
59,185,000
(5,678,193)
53,506,807
1.68%
3,771
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
123
CITY OF LAKE ELMO, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2024
Overlapping Debt:
Independent School District # 622
Independent School District # 832
Independent School District # 834
Washington County
Metropolitan Council
Total Overlapping Debt
City Direct Debt
Total Dircct and Overlapping Debt
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable*
Debt
$ 167,920,089
(1)
10.8%
$ 18,139,325
41,390,000
(1)
2.1%
882,286
167,695,000
(1)
15.2%
25,492,133
112,695,000
(1)
6.0%
6,792,349
1,558,153,207
(1)
0.1%
1,088,311
52,394,404
$32,915,000 100% 32,915,000
$ 85,309,404
*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.
124
CITY OF LAKE ELMO, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN YEARS
Legal Debt Margin Calculation for Fiscal Year 2024
Pay 2024 Market Value
Applicable Percentage
Debt Limit
Debt Applicable to Limit:
$ 3,186,775,200
3%
95,603,256
Series 2010B
Refunding
190,000
Series2017A
Equipment Portion
95,000
Series 2018A
Equipment Cert.
450,000
Series 2019A
Equipment Portion
415,000
Series 2021A
2018A Refunding
655,000
Series 2021A
City Hall
9,485,000
Total debt applicable to debt limit
11,290,000
Legal Debt Margin
$ 84,313,256
Legal Debt Margin Calculation for Fiscal Years 2015 Through 2024
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
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
11,335
57,032,019
850,000
56,182,019
1.49%
75
2021
12,655
60,288,567
1,485,000
58,803,567
2.46%
117
2022
12,655
66,936,927
12,990,000
53,946,927
19.41%
1,026
2023
14,033
85,883,406
12,150,000
73,733,406
14.15%
866
2024
14,191
95,603,256
11,290,000
84,313,256
11.81%
796
125
CITY OF LAKE ELMO, MINNESOTA
PLEDGED REVENUE COVERAGE
LAST TEN YEARS
G.O. Utility Revenue Bonds
Net
Payable Gross Operating Available Debt Service (3)
Year Revenue(l) Expenses (2) Revenue Principal Interest Coverage
2015
$ 3,642,316 $
627,977 $
3,014,339 $
4,165,000 $
456,782
65%
2016
3,407,097
757,862
2,649,235
615,000
380,969
266%
2017
6,651,513
1,505,420
5,146,093
705,000
513,768
422%
2018
5,767,128
1,279,347
4,487,781
625,000
312,660
479%
2019
4,190,240
1,175,282
3,014,958
1,360,000
509,863
161%
2020
6,243,582
1,553,371
4,690,211
1,380,000
504,661
249%
2021
9,147,164
1,680,527
7,466,637
3,825,000
514,210
172%
2022
6,911,305
2,086,151
4,825,154
1,345,000
468,989
266%
2023
5,938,053
2,752,113
3,185,940
2,325,000
775,011
103%
2024
7,156,639
2,493,880
4,662,759
2,315,000
815,119
149%
(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.
126
CITY OF LAKE ELMO, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN YEARS
Personal
Per
Income (4)
Capita
State
City
Fiscal
(thousands
Personal
Unemployment
Unemployment
Year
Population (1)
of dollars)
Income (2)
Rate (3)
Rate (3)
2015
8,069
$ 374,345
$ 46,393
3.2%
2.9%
2016
8,069
367,664
45,565
3.8%
3.3%
2017
9,625
455,494
47,324
3.3%
3.3%
2018
10,521
570,333
54,209
2.8%
2.7%
2019
11,105
652,352
58,744
3.5%
2.8%
2020
11,335
762,483
67,268
4.9%
4.0%
2021
12,655
927,536
73,294
2.6%
2.2%
2022
13,514
1,076,255
79,640
3.4%
2.9%
2023
14,033
1,104,159
78,683
1.9%
1.7%
2024
14,191
1,116,551
78,683
2.9%
2.6%
Sources:
(1) Metropolitan Council; 2022 most recent
(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.
127
CITY OF LAKE ELMO, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2024
2015
Employer Employees Rank Employees Rank
3M Company (Maplewood)
10,000
1
9,100 1
Andersen Corp (Bayport)
5,000
2
2,400 2
ISD No. 622 ( North St. Paul -Maplewood -Oakdale)
1,567
3
Woodwinds Health (Woodbury)
1,473
4
1,100 5
Washington County (Stillwater)
1,386
5
1,600 3
ISD 834 (Stillwater)
1,000
6
1,050 6
HealthEast Care/St. John's Hospital (Maplewood)
973
7
1,200 4
Presbyterian HomesBoutwells (Oak Park Heights)
500
8
Ecowater Systems, Inc. (Woodbury)
440
9
440 7
Bremer Bank Operations Ctr (Lake Elmo)
425
10
425 8
MN Correctional Facility ( Oak Park Hts)
-
-
355 9
Imation Corp (Oakdale)
-
-
SunAmerica Financial Group (Woodbury)
-
-
310 10
(')City staff estimate
128
CITY OF LAKE ELMO, MINNESOTA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN YEARS
Full -Time -Equivalent Employees as of December 31,
2024 2023 2022 2021 2020
General Government:
Administration
2.29
1.93
1.93
1.93
1.98
Finance
1.66
1.66
0.82
0.82
0.72
Planning and Zoning
3.35
4.35
2.75
1.95
1.95
Total General Government
7.30
7.94
5.50
4.70
4.65
Public Safety:
Fire
7.22
7.82
2.32
1.42
1.42
Building Inspections
7.33
6.78
5.21
4.91
4.91
Total Public Safety
14.55
14.60
7.53
6.33
6.33
Public Works:
Streets and Roadways
5.17
5.17
5.64
6.47
4.80
Parks and Recreation:
Parks
1.51
1.46
1.18
1.01
2.25
Communications
-
0.42
0.42
0.42
0.42
Total Governmental Activities
28.53
29.58
20.27
18.93
18.45
Business -type Activities:
Water Utility
4.49
4.49
3.76
2.98
2.75
Sewer Utility
1.92
1.92
1.59
1.05
1.40
Storm Sewer Utility
1.06
1.01
0.89
0.54
0.90
Total Business -Type Activities
7.47
7.42
6.23
4.57
5.05
Total
36.00
37.00
26.50
23.50
23.50
Source: City's Adopted Budgets
129
CITY OF LAKE ELMO, MINNESOTA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM (Continued)
LAST TEN YEARS
Full -Time -Equivalent Employees as of December 31,
2019 2018 2017 2016 2015
General Government:
Administration
2.70
2.70
2.45
2.45
3.20
Finance
1.05
1.05
1.20
1.20
0.80
Planning and Zoning
2.10
2.10
2.21
2.21
2.75
Total General Government
5.85
5.85
5.86
5.86
6.75
Public Safety:
Fire
3.80
3.80
3.80
3.80
1.50
Building Inspections
4.20
4.20
4.21
4.21
3.15
Total Public Safety
8.00
8.00
8.01
8.01
4.65
Public Works:
Streets and Roadways
4.80
4.80
4.55
4.55
3.90
Parks and Recreation:
Parks
2.20
2.20
3.00
3.00
1.85
Communications
0.50
0.50
-
-
0.70
Total Governmental Activities
21.35
21.35
21.42
21.42
17.85
Business -type Activities:
Water Utility
2.50
2.50
2.00
2.00
2.45
Sewer Utility
1.15
1.15
1.66
1.66
1.30
Storm Sewer Utility
0.80
0.80
0.80
-
-
Total Business -Type Activities
4.45
4.45
4.46
3.66
3.75
Total
25.80
25.80
25.88
25.08
21.60
130
CITY OF LAKE ELMO, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN YEARS
2024 2023 2022 2021 2020
Planning and Zoning:
Conditional use permits
7
2
7
Interim use permits
-
2
-
Minor subdivisions
2
2
-
Plats / planned unit developments
4
10
5
Rezonings
5
8
2
Site plans
-
-
-
Variances
8
5
10
Other (new in 2023)
-
9
Fire:
Total emergency responses
1,137
1,047
790
EMS responses
681
652
493
Fire responses
456
395
297
Building Inspections:
Residential permit valuations (thousands of dollars) $
72,852 $
55,067 $
69,557 $
Commercial permit valuations (thousands of dollars) $
18,899 $
14,577 $
25,189 $
New residential units (1)
210
195
200
New commercial units
5
3
6
Water Utility:
Number of customers
3,607
3,466
3,196
Average quarterly consumption (2)
80
108
100
(millions of gallons)
Sanitary Sewer Utility:
Number of customers
2,632
2,504
2,206
Average quarterly flow (3)
34
32
29
(millions of gallons)
Sources: Various City Department's annual financial report statistics
(1) Excludes fire/demolition rebuilds
(2) Residential and Commercial
(3) Billed and measured based on water usage; new developer homes built in 2015
but not yet sold/occupied so no impact to flows
2 -
7 5
8 1
- 3
6 5
568 546
355 317
213 229
100,189 $
98,294
12,548 $
11,761
297
309
5
11
2,863 2,522
89 76
1,937 1,612
19 18
131
CITY OF LAKE ELMO, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM (Continued)
LAST TEN YEARS
2019 2018 2017 2016 2015
Planning and Zoning:
Conditional use permits
Interim use permits
Minor subdivisions
Plats / planned unit developments
Rezonings
Site plans
Variances
Other (new in 2023)
Fire:
Total emergency responses
EMS responses
Fire responses
Building Inspections:
Residential permit valuations (thousands of dollars) $
Commercial permit valuations (thousands of dollars) $
New residential units (1)
New commercial units
Water Utility:
Number of customers
Average quarterly consumption (2)
(millions of gallons)
Sanitary Sewer Utility:
Number of customers
Average quarterly flow (3)
(millions of gallons)
5 6
5
3 2
- -
2
2 1
1 1
1
2 2
8 13
10
11 9
4 4
5
3 2
-
5 6
6
4 2
541
461
456
430
429
383
317
313
268
274
158
144
143
162
32
76,378 $
113,913 $
86,710 $
119,301 $
50,401
3,146 $
3,217 $
1,185 $
2,003 $
1,952
44
245
299
240
140
2
-
1
1
1
2,423
2,317
1,727
1,538
1,234
69
56
28
18
18
1,436 1,253 712 321 96
16 11 12 14 74
132
CITY OF LAKE ELMO, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN YEARS
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fire:
Stations
1
1
2
2
2
2
2
2
2
2
Public Works:
Bituminous streets (miles)
99
97
97
94.80
92
112
112
103
103
65
Gravel streets (miles)
0.5
0.5
0.5
0.5
0.5
0.5
1
2
2
2
Storm sewer (miles)
58.5
56.8
52.5
50
48
33
33
30
30
25
Parks & Recreation:
Acres of parkland
556
526
517
517
427
427
427
420
420
420
Number of parks
26
25
24
24
24
24
24
17
17
17
Water Utility:
Water towers
3
3
3
3
3
3
3
3
3
3
Miles ofwatermain
90.4
89.6
81.6
75
73
58
58
50
50
43
Number of fire hydrants
924
902
812
735
707
559
559
415
415
378
Sanitary Sewer Utility:
Miles of sanitary sewer
42.3
40.1
36.1
33
32
29
29
8
8
4
Lift Stations
10
8
8
6
7
5
5
4
4
4
Sources: Various City Department's annual financial report statistics
133
OTHER REQUIRED REPORTS
AND SCHEDULES
134
SCHLENNER
WENNELR&CO.
CERTIFIED PUBLIC ACCOUNTANTS
& BUSINESS CONSULTANTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
Honorable Mayor and City Council
City of Lake Elmo, Minnesota
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the
United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the City of Lake Elmo (the City), as of and for the year ended December 31, 2024,
and the related notes to the financial statements, which collectively comprise the City of Lake Elmo's basic financial statements
and have issued our report thereon dated June 23, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Lake Elmo's internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in
the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A
material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility
that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not
designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified
certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as item 2024-001
that we consider to be a significant deficiency.
135
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement,
we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Minnesota Legal Compliance
In connection with our audit, nothing came to our attention that caused us to believe that the City of Lake Elmo failed to comply
with the provisions of the contracting - bid laws, depositories of public funds and public investments, conflicts of interest,
public indebtedness, claims and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance
Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting
matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had
we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with
the above referenced provisions, insofar as they relate to accounting matters.
City's Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City of Lake Elmo's response to the
findings identified in our audit and described in the accompanying Schedule of Findings and Responses. The City of Lake
Elmo's response was not subjected to the other auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of
that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
r I /
SCHLENNER WENNER & CO.
St. Cloud, Minnesota
June 23, 2025
136
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31, 2024
FINANCIAL STATEMENT FINDINGS IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Finding 2024-001 Limited Segregation of Duties
Condition: Throughout the year, the same employee was often responsible for preparing bank reconciliations,
as well as recording and approving adjusting journal entries. Additionally, the individual primarily
responsible for completing bank reconciliations was also an authorized signer for the City's
checking account.
Criteria: The City should adopt an internal control structure that properly segregates the various functions of
each accounting cycle. This means no single person should be in a position to both initiate and
approved a transaction, as well as have access to the related physical assets involved with the
transaction. In other words, an employee should not be in a position to both commit an irregularity
and cover it up.
Cause: Limited number of staff members in the finance department.
Effect: The lack of ideal segregation of duties could expose the City to heightened risk that errors or fraud
could occur and not be detected in a timely manner.
Recommendation: We recommend the City review and evaluate current procedures for the purpose of implementing
additional oversight and segregation of duties to the extent that is determined to be feasible.
Views of Responsible
Officials And Planned
Corrective Actions: Management agrees with the recommendation. See corresponding Corrective Action Plan.
137
CITY OF LAKE ELMO, MINNESOTA
CORRECTIVE ACTION PLANS
FOR THE YEAR ENDED DECEMBER 31, 2024
FINANCIAL STATEMENT FINDINGS IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Finding 2024-001 Limited Segregation of Duties
1. Explanation of Disagreement with Audit Finding
There is no disagreement with the audit finding.
2. Actions Planned in Response to Finding
The City will review and evaluate current processes, procedures, and employee roles within the Finance Department.
To the extent possible, the City will implement additional controls to mitigate the lack of segregation of duties.
3. Official Responsible
Nicole Miller, City Administrator, is the official responsible for ensuring corrective action.
4. Planned Completion Date
December 31, 2025.
5. Plan to Monitor Completion
The City Council will be monitoring this Corrective Action Plan.
138