HomeMy WebLinkAbout#03 - Audit Presentation
STAFF REPORT
DATE: July 1, 2025
REGULAR
AGENDA ITEM: Presentation & Acceptance of the 2024 Annual Comprehensive Financial
Report (ACFR)
FROM: Clarissa Hadler, Finance Director
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community ☒ Efficient, reliable, innovative services
☒ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future
☐ Managed Growth ☐ Resilient Infrastructure
BACKGROUND:
Annually, the City engages the services of an independent outside audit firm to audit and assist with the
preparation of the financial statements. The auditors are asked to assure that the financial statements are
free from material misstatement in accordance with U.S. Generally Accepted Accounting Principles
(GAAP). The firm also performs testing and makes inquiries to help ensure that proper internal controls
are in place.
The City has retained the services of Schlenner Wenner to perform the City of Lake Elmo’s audit for 2024.
The 2024 Annual Comprehensive Financial Report (ACFR) and Management Reports will be presented to
the City Council by Mr. Ryan Schmidt – Partner, from Schlenner Wenner with the opportunity to ask
questions of both Mr. Schmidt and City Staff.
ISSUE BEFORE THE CITY COUNCIL:
1) Does the City Council have any questions regarding the 2024 ACFR?
DISCUSSION:
Mr. Ryan Schmidt will present information regarding the 2024 Audit and answer any questions the City
Council may have pertaining to the 2024 Audit and the 2024 ACFR.
The City received an unmodified audit opinion, meaning the Financial Statements are fairly stated in all
material respects. There were no findings related to Minnesota Legal Compliance. One finding related to
Internal Controls over Financial Reporting is noted in the report - Lack of Ideal Segregation of Duties.
As of December 31, 2024, the unassigned fund balance of the General Fund was $ 10,324,572 or 130% of
2025 budgeted expenditures and transfers.
FISCAL IMPACT:
Overall sound policies, fiscal management, effective operational, capital, and long-range planning are all
integral parts of City business leading up to the audit and completion of the ACFR. As such, continued
investment in financial systems will help position the City to continue to provide quality, efficient, timely
and cost-effective services to the constituents of the community.
RECOMMENDATION:
No formal action is required, but the City Council at its discretion may accept the results of the 2024 Audit
and 2024 ACFR.
MOTION:
“Motion to accept the 2024 Annual Comprehensive Financial Report.”
ATTACHMENTS:
1) 2024 Annual Comprehensive Financial Report (ACFR)
2) Schlenner Wenner Report to the Members of Governance
City of Lake Elmo,
Minnesota
Annual Comprehensive
Financial Report
For The Year Ended December 31, 2024
Prepared by:
Finance Department
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS
INTRODUCTORY SECTION:
Letter Of Transmittal ..................................................................................................................................................... 2
Certificate Of Achievement For
Excellence In Financial Reporting ........................................................................................................................... 7
City Council And Officials ............................................................................................................................................ 8
Organizational Chart ..................................................................................................................................................... 9
FINANCIAL SECTION:
INDEPENDENT AUDITOR’S REPORT ................................................................................................................. 11
REQUIRED SUPPLEMENTARY INFORMATION:
Management’s Discussion and Analysis ................................................................................................................ 15
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements
Statement of Net Position ............................................................................................................................... 26
Statement of Activities ................................................................................................................................... 27
Fund Financial Statements
Balance Sheet – Governmental Funds ............................................................................................................ 28
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position .............................................................................................................. 30
Statement of Revenues, Expenditures, and
Changes in Fund Balances – Governmental Funds ................................................................................... 31
Reconciliation of Changes in Fund Balances of Governmental Funds
to the Statement of Activities .................................................................................................................. 33
Statement of Net Position – Proprietary Funds................................................................................................ 34
Statement of Revenues, Expenses, and
Changes in Net Position – Proprietary Funds ........................................................................................... 35
Statement of Cash Flows – Proprietary Funds ................................................................................................. 36
Notes to the Basic Financial Statements ................................................................................................................ 38
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule – General Fund .................................................................................................. 73
Schedule of City’s Proportionate Share of the Net Pension Liability ...................................................................... 75
Schedule of City Pension Contributions ................................................................................................................ 76
Schedule of Changes in Net Pension Liability (Asset) – Firefighters Relief Association ......................................... 77
Schedule of Changes in City’s Net OPEB Liability ............................................................................................... 78
Schedule of City OPEB Contributions ................................................................................................................... 79
Notes to the Required Supplementary Information ................................................................................................ 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
Schedule of Indebtedness .................................................................................................................................... 104
STATISTICAL SECTION (UNAUDITED):
Financial Trends
Net Position by Component ................................................................................................................................ 107
Changes in 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
Principal Property 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
Legal Debt Margin Information .......................................................................................................................... 125
Pledged Revenue Coverage ................................................................................................................................. 126
Demographic and Economic Information
Demographic and Economic Statistics................................................................................................................. 127
Principal Employers ........................................................................................................................................... 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
Government Auditing Standards ......................................................................................................................... 135
Schedule of Findings and Responses .......................................................................................................................... 137
Corrective Action Plans ............................................................................................................................................. 138
1
INTRODUCTORY
SECTION
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 | Lake Elmo | MN 55042 | (651) 747-3900 | lakeelmo.gov
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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 financ ial
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 thi s
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 renderi ng
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 | Lake Elmo | MN 55042 | (651) 747-3900 | lakeelmo.gov
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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 carryi ng
out the policies and ordinances of the governing council and overseeing the day-to-day operations of the city. The Council is
elected on a non-partisan basis. The Mayor serves a four-year term and council members serve a four-year staggered term, with
two of these positions elected every two years. The Mayor and the Council are elected at-large.
The City of Lake Elmo provides a full range of Services including fire protection services, construction and maintenance of
streets and infrastructure; recreational facilities; and water, sanitary sewer and storm water utility services. The City con tracts
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 platt ed
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 ye ars
continue, including:
• Royal Golf 5th Addition – 43 New Single-Family Homes
• Royal Golf 6th Addition – 46 New Single-Family Homes
• Northstar 1st 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 | Lake Elmo | MN 55042 | (651) 747-3900 | lakeelmo.gov
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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 Aa1, 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 | Lake Elmo | MN 55042 | (651) 747-3900 | lakeelmo.gov
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RELEVANT FINANCIAL POLICIES
Trends of the past decade, changes in state tax law, and recent legislation indicate that the City will have a greater relian ce 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 cut s
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 certifica te
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 | Lake Elmo | MN 55042 | (651) 747-3900 | lakeelmo.gov
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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 Elmo’s finances.
Respectfully submitted,
Nicole Miller
City Administrator
Clarissa Hadler
Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lake Elmo
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2023
Executive Director/CEO
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CITY OF LAKE ELMO, MINNESOTA
CITY COUNCIL AND OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2024
CITY COUNCIL Term Expires
Charles Cadenhead Mayor January 1, 2025
Katrina Beckstrom Council Member January 1, 2025
Nick Dragisich Council Member January 1, 2025
Matt Hirn Council Member January 1, 2027
Jeff Holtz Council Member January 1, 2025
APPOINTED CITY OFFICIALS
Nicole Miller City Administrator Appointed
Clarissa Hadler Finance Director Appointed
Nina Kraemer Finance Coordinator Appointed
Julie Johnson City Clerk Appointed
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ORGANIZATIONAL CHART
FOR THE YEAR ENDED DECEMBER 31, 2024
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FINANCIAL
SECTION
11
www.schlennerwenner.cpa
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Lake Elmo, 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 evide nce
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, w hether
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.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assuranc e
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 essentia l
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 m anagement 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 sta tements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficie nt
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.
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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. O ur
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 th e
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
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REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
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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 Activiti es
(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.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
16
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 Cit y 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 bas is 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 financi al
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 particula r
purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City’s t wo
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 ac counting, 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.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
17
THE CITY AS A WHOLE
The City’s combined net position increased $32,331,958 from a year ago. Our analysis below focuses on the net position
(Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities.
Table 1
Net Position
Governmental Business-Type Total
Activities Activities Government
2024 2023 2024 2023 2024 2023
Current and Other Assets 34,849,746$ 31,241,789$ 24,775,850$ 25,155,915$ 59,625,596$ 56,397,704$
Net Capital Assets 104,806,610 87,653,206 110,083,564 99,382,500 214,890,174 187,035,706
Total Assets 139,656,356 118,894,995 134,859,414 124,538,415 274,515,770 243,433,410
Deferred Outflows of Resources 1,209,375 1,100,857 73,516 116,538 1,282,891 1,217,395
Current Liabilities 4,890,355 5,122,759 1,443,233 2,213,887 6,333,588 7,336,646
Noncurrent Liabilities 35,907,834 34,161,649 27,665,367 29,627,608 63,573,201 63,789,257
Total Liabilities 40,798,189 39,284,408 29,108,600 31,841,495 69,906,789 71,125,903
Deferred Inflows of Resources 2,708,949 2,687,021 155,407 142,323 2,864,356 2,829,344
Net Position:
Net Investment in
Capital Assets 71,683,376 54,209,637 82,708,847 69,826,808 154,392,223 124,036,445
Restricted 15,985,561 11,658,502 - - 15,985,561 11,658,502
Unrestricted 9,689,656 12,156,284 22,960,076 22,844,327 32,649,732 35,000,611
Total Net Position 97,358,593$ 78,024,423$ 105,668,923$ 92,671,135$ 203,027,516$ 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 $12,997,788 (14.03 percent) from the prior year. Such
increase can be attributed primarily to the capital contributions of infrastructure assets that were received from private
developers during the year.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
18
THE CITY AS A WHOLE (Continued)
Table 2
Changes in Net Position
Governmental Business-Type Total
Activities Activities Government
2024 2023 2024 2023 2024 2023
REVENUE
Charges for Services 3,109,811$ 2,280,874$ 3,072,782$ 3,343,405$ 6,182,593$ 5,624,279$
Operating Grants and
Contributions 542,462 1,102,707 100,000 - 642,462 1,102,707
Capital Grants and
Contributions 17,900,192 9,895,930 17,238,838 11,353,274 35,139,030 21,249,204
Property Taxes 8,905,064 7,822,031 - - 8,905,064 7,822,031
Franchise Taxes 86,955 68,884 - - 86,955 68,884
Intergovernmental 102,914 246,056 10,470 46 113,384 246,102
Investment Earnings (Losses)1,050,711 1,137,908 704,216 604,235 1,754,927 1,742,143
Other 8,079 46,528 - - 8,079 46,528
Total Revenues 31,706,188 22,600,918 21,126,306 15,300,960 52,832,494 37,901,878
PROGRAM EXPENSES
General Government 1,513,163 1,220,552 - - 1,513,163 1,220,552
Public Safety 3,853,006 3,228,801 - - 3,853,006 3,228,801
Public Works 5,376,826 4,627,872 - - 5,376,826 4,627,872
Parks and Recreation 848,199 526,835 - - 848,199 526,835
Economic Development 7,074 - - - 7,074 -
Interest and Other Charges 881,870 815,944 - - 881,870 815,944
Water - - 3,946,949 3,982,238 3,946,949 3,982,238
Sewer - - 2,996,505 2,524,280 2,996,505 2,524,280
Storm Sewer - - 1,185,064 1,057,111 1,185,064 1,057,111
Total Expenses 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.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
19
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 functio ns.
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 de crease 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.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
20
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 $3,695,622 from the prior year. Operations were comparable to the prior
year, with the exception of an increase in property taxes, intergovernmental revenues, and charges for services (park dedication
fees). Additionally, the City incurred fewer capital outlay expenditures, due to the City Hall and Fire Station building project
being completed in 2024. Financial information specific to the governmental funds is detailed on the following page. Such
information was derived from the fund financials.
Increase
2024 2023 (Decrease)
General 10,324,572$ 8,920,580$ 1,403,992$
Fund Balance December 31,
Major Funds
The fund balance of the General Fund increased by $1,403,992 compared to 2023. Details of the General Fund’s revenues and
expenditures are displayed below:
General Fund Revenues
Property Taxes
Franchise Taxes
Licenses, Permits, and Fees
Intergovernmental
Charges for Services
Fines
Investment Earnings
Lease Interest
Miscellaneous
The City received the majority of its funding in the General Fund in the form of grants and funding received from property
taxes (65.35 percent), licenses, permits, and fees (11.16 percent), charges for services (9.98 percent), and other governmental
agencies (5.48 percent). Overall, the City’s General Fund revenues were comparable to the prior year , with the exception of
property taxes that increased as planned with the 2024 levy.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
21
THE CITY’S FUNDS (Continued)
General Fund Expenditures
General Government
Public Safety
Public Works
Parks and Recreation
Capital Outlay
A significant portion of the City’s General Fund expenditures are used for public safety (54.84 percent). Remaining
expenditures are used primarily for public works (15.64 percent) and general government (21.02 percent). Expenditures are
comparable to the prior year.
Increase
2024 2023 (Decrease)
Fund Balance December 31,
Major Funds
Debt Service 5,678,193$ 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.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
22
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 $12,997,788 from the prior year. The following is a summary of the City’s major proprietary funds:
Increase
2024 2023 (Decrease)
Water 56,335,050$ 50,291,225$ 6,043,825$
Net Position December 31,
Major Funds
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
23
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 $1.9 million.
2024 2023 2024 2023 2024 2023
Land 3,453,979$ 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$
Table 4
Capital Assets Net of Depreciation and Amortization
Governmental
Activities
Business-Type
Activities Totals
Debt
At year-end, the City had $62,066,968 in gross debt versus $62,093,296 last year (a decrease of 0.04 percent), as shown in
Table 5. See additional information regarding these issuances in Note 2.D. to the financial statements.
2024 2023 2024 2023 2024 2023
G.O. Improvement Bonds 31,535,000$ 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$
Table 5
Outstanding Debt at Year-End
Governmental
Activities
Business-Type
Activities Totals
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2024
24
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 sel l 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.
25
BASIC FINANCIAL STATEMENTS
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2024
See accompanying notes. 26
Governmental
Activities
Business-Type
Activities Totals
ASSETS
Cash, Cash Equivalents, and Investments 28,531,867$ 17,576,688$ 46,108,555$
Property Taxes Receivable 107,450 - 107,450
Assessments Receivable 3,853,119 4,938,307 8,791,426
Accounts Receivable 36,173 870,552 906,725
Interest Receivable 90,950 64,976 155,926
Due from Other Governments 5,004 1,325,327 1,330,331
Leases Receivable 1,568,508 - 1,568,508
Capital Assets Not Being Depreciated/Amortized 6,312,353 4,280,562 10,592,915
Capital Assets Being Depreciated/Amortized (Net) 98,494,257 105,803,002 204,297,259
Net Pension Asset 656,675 - 656,675
TOTAL ASSETS 139,656,356 134,859,414 274,515,770
DEFERRED OUTFLOWS OF RESOURCES
Pensions 1,209,375 73,516 1,282,891
LIABILITIES
Accounts Payable 1,240,016 464,954 1,704,970
Salaries Payable 48,346 29,941 78,287
Construction Contracts Payable 320,084 - 320,084
Deposits Payable 2,509,232 - 2,509,232
Due to Other Governments - 50,488 50,488
Payroll Deductions and Employer Contributions 25,391 - 25,391
Unearned Revenue 318,300 575,000 893,300
Accrued Interest Payable 428,986 322,850 751,836
Compensated Absences Payable:
Due Within One Year 143,398 38,748 182,146
Due After One Year 47,799 12,916 60,715
Bonds and Subscriptions:
Due Within One Year 2,965,000 2,424,872 5,389,872
Due After One Year 31,484,390 24,949,845 56,434,235
Net OPEB Liability:
Due After One Year 47,176 14,816 61,992
Net Pension Liability:
Due After One Year 1,220,071 224,170 1,444,241
TOTAL LIABILITIES 40,798,189 29,108,600 69,906,789
DEFERRED INFLOWS OF RESOURCES
Pensions 1,261,384 155,407 1,416,791
Leases 1,447,565 - 1,447,565
TOTAL DEFERRED INFLOWS OF RESOURCES 2,708,949 155,407 2,864,356
NET POSITION
Net Investment in Capital Assets 71,683,376 82,708,847 154,392,223
Restricted for:
Debt Service 9,010,313 - 9,010,313
2024 Street & Utility Improvement 368,438 - 368,438
Hudson Blvd Imp-Seg A-InwdHdrx 1,219,181 - 1,219,181
Park Dedication 3,185,344 - 3,185,344
Heritage Farms Street & Utility Improvements 242,783 - 242,783
City Hall / Fire Station Bldg Project 1,462,461 - 1,462,461
Tamarack Farm Estates Street Improvements 128,269 - 128,269
2022 Street Improvements 368,772 - 368,772
Unrestricted 9,689,656 22,960,076 32,649,732
TOTAL NET POSITION 97,358,593$ 105,668,923$ 203,027,516$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2024
See accompanying notes. 27
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities:
General Government 1,513,163$ 391,056$ 81,805$ -$ (1,040,302)$ -$ (1,040,302)$
Public Safety 3,853,006 1,563,841 124,477 - (2,164,688) - (2,164,688)
Public Works 5,376,826 60,485 250,869 17,900,192 12,834,720 - 12,834,720
Parks and Recreation 848,199 1,094,429 36,500 - 282,730 - 282,730
Economic Development 7,074 - 48,811 - 41,737 - 41,737
Interest and Other Charges 881,870 - - - (881,870) - (881,870)
Total Governmental Activities 12,480,138 3,109,811 542,462 17,900,192 9,072,327 - 9,072,327
Business-Type Activities:
Water 3,946,949 1,522,996 - 8,270,173 - 5,846,220 5,846,220
Sewer 2,996,505 876,248 100,000 4,970,000 - 2,949,743 2,949,743
Storm Sewer 1,185,064 673,538 - 3,998,665 - 3,487,139 3,487,139
Total Business-Type Activities 8,128,518 3,072,782 100,000 17,238,838 - 12,283,102 12,283,102
TOTALS 20,608,656$ 6,182,593$ 642,462$ 35,139,030$ 9,072,327 12,283,102 21,355,429
General Revenues:
Property Taxes 8,905,064 - 8,905,064
Franchise Taxes 86,955 - 86,955
Intergovernmental 102,914 10,470 113,384
Investment Earnings (Losses)1,050,711 704,216 1,754,927
Gain (Loss) on Sale of Assets 108,120 - 108,120
Miscellaneous 8,079 - 8,079
Total General Revenues 10,261,843 714,686 10,976,529
CHANGE IN NET POSITION 19,334,170 12,997,788 32,331,958
NET POSITION - BEGINNING OF YEAR 78,024,423 92,671,135 170,695,558
NET POSITION - END OF YEAR 97,358,593$ 105,668,923$ 203,027,516$
Functions/Programs
Program Revenues Net (Expense) Revenue and Changes in Net Position
Primary Government
CITY OF LAKE ELMO, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2024
See accompanying notes. 28
General Fund
Debt Service
Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd Imp-
Seg A-InwdHdrx
Fund
Total Nonmajor
Governmental
Funds
Total
Governmental
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 14,829,484$ 9,439,299$ 473,165$ 2,078,488$ 8,293,262$ 35,113,698$
LIABILITIES
Accounts Payable 283,913$ -$ 104,727$ 772,848$ 78,528$ 1,240,016$
Salaries Payable 48,346 - - - - 48,346
Payroll Deductions and
Employer Contributions 25,391 - - - - 25,391
Construction Contracts Payable - - - 86,459 233,625 320,084
Deposits Payable 2,509,232 - - - - 2,509,232
Due to Other Funds - - - - 920,627 920,627
Unearned Revenue 68,300 - - - 250,000 318,300
Total Liabilities 2,935,182 - 104,727 859,307 1,482,780 5,381,996
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Property Taxes 56,052 - - - - 56,052
Special Assessments 66,113 3,761,106 - - 19,808 3,847,027
Leases 1,447,565 - - - - 1,447,565
Total Deferred Inflows of Resources 1,569,730 3,761,106 - - 19,808 5,350,644
Capital Project Funds
CITY OF LAKE ELMO, MINNESOTA
BALANCE SHEET (Continued)
GOVERNMENTAL FUNDS
DECEMBER 31, 2024
See accompanying notes. 29
General Fund
Debt Service
Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd Imp-
Seg A-InwdHdrx
Fund
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
Capital Project Funds
FUND BALANCES
Restricted -$ 5,678,193$ 368,438$ 1,219,181$ 5,387,629$ 12,653,441$
Committed - - - - 27,239 27,239
Assigned - - - - 2,363,472 2,363,472
Unassigned 10,324,572 - - - (987,666) 9,336,906
Total Fund Balances 10,324,572 5,678,193 368,438 1,219,181 6,790,674 24,381,058
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 14,829,484$ 9,439,299$ 473,165$ 2,078,488$ 8,293,262$ 35,113,698$
CITY OF LAKE ELMO, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2024
See accompanying notes. 30
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$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
See accompanying notes. 31
General Fund
Debt Service
Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd Imp-
Seg A-InwdHdrx
Fund
City Hall / Fire
Station Bldg
Project Fund
2023 Street
Improvements
Fund
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
REVENUES
Property Taxes 5,977,668$ 2,923,830$ -$ -$ -$ 8,901,498$
Franchise Taxes 86,955 - - - - 86,955
Special Assessments - 1,114,353 - - 1,160 1,115,513
Licenses, Permits, and Fees 1,020,801 - - - - 1,020,801
Intergovernmental 500,860 - - 1,436,000 390,044 2,326,904
Charges for Services 912,893 - - - 1,094,429 2,007,322
Fines 55,286 - - - - 55,286
Investment Earnings (Losses)444,440 149,678 205 17,041 375,534 986,898
Lease Interest 63,813 - - - - 63,813
Miscellaneous 84,046 - - - 23,559 107,605
TOTAL REVENUES 9,146,762 4,187,861 205 1,453,041 1,884,726 16,672,595
EXPENDITURES
Current:
General Government 1,437,156 - - - - 1,437,156
Public Safety 3,749,563 - - - - 3,749,563
Public Works 1,069,092 - 530 296 431,554 1,501,472
Parks and Recreation 492,788 - - - - 492,788
Economic Development - 7,035 - - 39 7,074
Capital Outlay 88,888 - 1,924,908 2,031,217 2,703,050 6,748,063
Debt Service:
Principal - 2,705,000 - - - 2,705,000
Interest and Other Charges - 916,406 38,924 26,293 8,690 990,313
TOTAL EXPENDITURES 6,837,487 3,628,441 1,964,362 2,057,806 3,143,333 17,631,429
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,309,275 559,420 (1,964,157) (604,765) (1,258,607) (958,834)
Capital Project Funds Formerly Major Funds
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued)
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
See accompanying notes. 32
General Fund
Debt Service
Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd Imp-
Seg A-InwdHdrx
Fund
City Hall / Fire
Station Bldg
Project Fund
2023 Street
Improvements
Fund
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
Capital Project Funds Formerly Major Funds
OTHER FINANCING SOURCES (USES)
Sale of Assets -$ -$ -$ -$ 109,573$ 109,573$
Bond Issuance - 92,061 2,201,722 1,730,226 170,991 4,195,000
Premium on Bond Issuance - - 187,755 147,547 14,581 349,883
Transfers In 67,910 - - - 1,473,193 1,541,103
Transfers Out (973,193) - - - (567,910) (1,541,103)
TOTAL OTHER FINANCING
SOURCES (USES)(905,283) 92,061 2,389,477 1,877,773 1,200,428 4,654,456
NET CHANGE IN FUND BALANCES 1,403,992 651,481 425,320 1,273,008 (58,179) 3,695,622
FUND BALANCES - BEGINNING 8,920,580 5,026,712 - - 1,448,996 287,830 5,001,318 20,685,436
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - - (56,882) (53,827) (1,448,996) (287,830) 1,847,535 -
FUND BALANCES - BEGINNING 8,920,580 5,026,712 (56,882) (53,827) - - 6,848,853 20,685,436
(As Adjusted)
FUND BALANCES - ENDING 10,324,572$ 5,678,193$ 368,438$ 1,219,181$ -$ -$ 6,790,674$ 24,381,058$
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
See accompanying notes. 33
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$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2024
See accompanying notes. 34
Water Fund Sewer Fund
Storm Sewer
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$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
See accompanying notes. 35
Water Fund Sewer Fund
Storm Sewer
Fund Totals
OPERATING REVENUES
Charges for Services 1,517,017$ 869,151$ 657,030$ 3,043,198$
OPERATING EXPENSES
Wages and Benefits 377,288 221,325 126,124 724,737
Materials and Supplies 196,660 27,097 10,831 234,588
Repairs and Maintenance 63,358 28,864 23,153 115,375
Professional Services 167,667 131,631 58,161 357,459
Insurance 24,606 14,308 4,117 43,031
Utilities 133,870 794,270 957 929,097
Miscellaneous 48,754 26,704 14,135 89,593
Depreciation and Amortization 2,595,622 1,422,605 911,665 4,929,892
TOTAL OPERATING EXPENSES 3,607,825 2,666,804 1,149,143 7,423,772
NET OPERATING INCOME (LOSS)(2,090,808) (1,797,653) (492,113) (4,380,574)
NONOPERATING INCOME (EXPENSE)
Intergovernmental 6,600 2,596 1,274 10,470
Investment Earnings (Losses)191,005 457,855 55,356 704,216
Miscellaneous 5,979 107,097 16,508 129,584
Interest and Other Charges (339,124) (329,701) (35,921) (704,746)
TOTAL NONOPERATING
INCOME (EXPENSE)(135,540) 237,847 37,217 139,524
CHANGE IN NET POSITION PRIOR
TO CONTRIBUTIONS AND TRANSFERS (2,226,348) (1,559,806) (454,896) (4,241,050)
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital Contributions:
Capital Contributions from Private Sources 3,608,962 3,230,468 3,998,524 10,837,954
Special Assessments 10,552 158,632 141 169,325
Intergovernmental 2,991,659 - - 2,991,659
Connection Fees 1,659,000 1,580,900 - 3,239,900
TOTAL CAPITAL CONTRIBUTIONS
AND TRANSFERS 8,270,173 4,970,000 3,998,665 17,238,838
CHANGE IN NET POSITION 6,043,825 3,410,194 3,543,769 12,997,788
NET POSITION - BEGINNING OF YEAR 50,291,225 27,604,510 14,775,400 92,671,135
NET POSITION - END OF YEAR 56,335,050$ 31,014,704$ 18,319,169$ 105,668,923$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
See accompanying notes. 36
Water Fund Sewer Fund
Storm Sewer
Fund Totals
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Received from Customers 1,442,722$ 821,327$ 606,186$ 2,870,235$
Cash Paid to Suppliers (518,791) (1,032,154) (113,549) (1,664,494)
Cash Paid to Employees (447,514) (248,285) (128,213) (824,012)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 476,417 (459,112) 364,424 381,729
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Taxes and Intergovernmental 6,600 2,596 1,274 10,470
Other Receipts from Customers 5,979 107,098 16,508 129,585
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING
ACTIVITIES 12,579 109,694 17,782 140,055
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Connection Fees 1,529,800 1,444,100 - 2,973,900
Special Assessments 212,886 669,148 40,836 922,870
Intergovernmental and Other 1,348,274 - - 1,348,274
Purchases of Capital Assets (4,332,455) (523,301) (202,361) (5,058,117)
Payments on Bond Principal (1,150,000) (950,000) (215,000) (2,315,000)
Payments on Subscription Liabilities (4,235) - - (4,235)
Proceeds from Debt Issuance 499,270 - - 499,270
Cash Paid for Interest and Other Charges (384,994) (397,494) (43,737) (826,225)
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED FINANCING
ACTIVITIES (2,281,454) 242,453 (420,262) (2,459,263)
CASH FLOWS FROM INVESTING
ACTIVITIES
Investment Income 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$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2024
See accompanying notes. 37
Water Fund Sewer Fund
Storm Sewer
Fund Totals
RECONCILIATION OF NET OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING
ACTIVITIES
Net Operating Income (Loss)(2,090,808)$ (1,797,653)$ (492,113)$ (4,380,574)$
Adjustments to Reconcile Net Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Depreciation and Amortization Expense 2,595,622 1,422,605 911,665 4,929,892
Changes in Assets, Liabilities,
and Deferrals:
Accounts Receivable (48,513) (29,768) (29,483) (107,764)
Special Assessments (25,782) (18,056) (21,361) (65,199)
Accounts Payable 116,124 (9,013) (2,195) 104,916
Due to Other Governments - (267) - (267)
Salaries Payable (15,661) (6,691) 6,004 (16,348)
Compensated Absences 5,932 4,055 3,386 13,373
Net OPEB Liability (6,258) (1,439) (838) (8,535)
Net Pension Liability (90,280) (36,471) (17,120) (143,871)
Deferred Outflows of
Resources - Pensions 27,634 10,648 4,740 43,022
Deferred Inflows of
Resources - Pensions 8,407 2,938 1,739 13,084
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 476,417$ (459,112)$ 364,424$ 381,729$
SCHEDULE OF NONCASH CAPITAL
AND RELATED FINANCING
ACTIVITIES
Contribution of Capital Assets from
Private Sources 3,608,962$ 3,230,468$ 3,998,524$ 10,837,954$
Change in Capital Assets Due To
Changes in Related Payables (272,612)$ (85,155)$ -$ (357,767)$
Right-Of-Use Capital Assets Acquired
via IT Subscription Arrangement 92,653$ -$ -$ 92,653$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
38
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.
1.A. 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 describe d 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 compo se 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 direc tors
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 p ortion
of the costs of the Association’s pension benefits is included in the general fund under public safety.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
39
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
40
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.B. 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.
1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basi s
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
41
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.C. 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.
1.D. 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.
1.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 fro m
those estimates.
1.F. 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 an d
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. Purchase s
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
42
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.F. 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.”
Interfund 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. Allowance s 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 agree ment,
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
43
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.F. 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 us ed
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
44
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.F. 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 o n 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 ele ment
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
45
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.F. 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. The re 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.F. 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.
1.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 th e
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 th e extent
they are collected within 60 days of year-end.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
46
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.G. 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 prepaym ents 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 g o
delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties, and expe nses of
sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full am ount 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 pr operty
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 reporte d.
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
47
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1.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.H. 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 vari ous
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;
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
48
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 Ba nk,
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 rate d
“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 rati ng
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 high est
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 $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York,
or certain Minnesota securities broker-dealers. The City does not have any investment policies that would further limit
investment choices.
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles general ly
accepted in the United State of America. The hierarchy is based on the valuation inputs used to measure the fair value of the
asset. Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt
and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued ba sed
on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors for
similar debt securities in active markets; equity securities are valued using fair value per share for each fund for identical equity
securities in inactive markets. Certificates of deposit classified in level 2 are valued using broker quotes that utilize obs ervable
market inputs for similar certificates in active markets. Securities classified as Level 3 have limited trade inform ation, these
securities are priced using the last trade price or estimated using recent trade prices.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
49
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Investment balances at December 31, 2024 are as follows:
S & P's
Credit Fair Value Fair Less
Investment Type Rating Level Value Than 1 1 - 5 6 - 10
Money Market Funds N/A N/A 1,157,483$ 1,157,483$ -$ -$
U.S. Government Bonds AA+ to AAA Level 2 6,258,074 1,032,101 5,225,973 -
Municipal Bonds A to AAA Level 2 10,288,535 511,407 7,769,914 2,007,214
Brokered Certificates of Deposit NR Level 2 2,036,399 878,369 1,158,030 -
Totals 19,740,491$ 3,579,360$ 14,153,917$ 2,007,214$
Investment Maturities (in Years)
The investments of the City are subject to the following risks:
• 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 118A, annually appointing all financial institutions where investments are held,
and diversifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization.
• 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 $500,000 through SIPC. Each broker-
dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate
limits applied to all of the broker-dealer’s accounts.
• Concentration of Credit Risk is the risk associated with the magnitude of the City’s investments (considered five
percent or more) in the investments of a single issuer, excluding U.S. guaranteed investments (such as treasuries),
investment pools, and mutual funds. The City’s investment policy allows no more than 5 percent of the overall
portfolio to be invested in a single issuer, except for the securities of the U.S. Government, or a maximum of 25
percent with any individual counter party in an external investment pool. At December 31, 2024, the City did not have
a significant concentration of credit risk.
• Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The
City’s investment policy states that extended maturities may be utilized to take advantage of higher yields; however
no more than 25 percent of total investments should extend beyond five years and in no circumstance should any
extend beyond ten years. The City’s investment portfolio is structured so that securities mature to meet cash
requirements for ongoing operations.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
50
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
Deposits and Investments Summary
A reconciliation of cash and investments as shown on the Statements of Net Position for the City follows:
Carrying Amount of Deposits 26,368,064$
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 Total Annual Interest Maturity Remaining
Description Amount Lease Payment Rate(s)Date Amount
Wireless Site Lease 548,874$ $2,500 - $55,902 5.50%11/30/2047 547,901$
Wireless Site Lease 696,030 $27,987 - $55,425 3.25%6/30/2043 647,217
Land Lease 400,078 $21,012 - $31,847 3.25%12/31/2043 373,390
Total Governmental Activities Lease Receivables 1,568,508$
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 $155,831.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
51
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2024 is as follows:
Balance at Balance at
01/01/24 Additions Disposals Transfers 12/31/24
Governmental Activities
Capital Assets not Being
Depreciated or Amortized
Land 3,453,979$ -$ -$ -$ 3,453,979$
Construction In Progress 18,614,757 5,350,199 - (21,106,582) 2,858,374
Total Capital Assets not Being
Depreciated or Amortized 22,068,736 5,350,199 - (21,106,582) 6,312,353
Capital Assets Being Depreciated
and Amortized
Buildings 4,330,670 - - 14,813,929 19,144,599
Other Improvements 3,621,479 242,023 - 423,064 4,286,566
Machinery and Equipment 10,503,903 887,770 (723,265) 50,056 10,718,464
Infrastructure 68,427,205 14,841,351 - 5,819,533 89,088,089
Total Capital Assets Being
Depreciated and Amortized 86,883,257 15,971,144 (723,265) 21,106,582 123,237,718
Less: Accumulated Depreciation
Buildings (1,516,365) (90,166) - - (1,606,531)
Other Improvements (1,529,444) (136,441) - 50,056 (1,615,829)
Machinery and Equipment (3,579,939) (565,839) 716,812 (50,056) (3,479,022)
Infrastructure (14,673,039) (3,369,040) - - (18,042,079)
Total Accumulated Depreciation (21,298,787) (4,161,486) 716,812 - (24,743,461)
Total Capital Assets Being
Depreciated and Amortized, Net 65,584,470 11,809,658 (6,453) 21,106,582 98,494,257
Capital Assets, Net 87,653,206$ 17,159,857$ (6,453)$ -$ 104,806,610$
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$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
52
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.C. CAPITAL ASSETS (Continued)
Balance at Balance at
01/01/24 Additions Disposals Transfers 12/31/24
Business-Type Activities
Capital Assets not Being
Depreciated or Amortized
Land 3,668,869$ -$ -$ -$ 3,668,869$
Construction In Progress 11,204,477 3,999,413 - (14,592,197) 611,693
Total Capital Assets not Being
Depreciated or Amortized 14,873,346 3,999,413 - (14,592,197) 4,280,562
Capital Assets Being Depreciated
and Amortized
Machinery and Equipment 413,699 700,937 - - 1,114,636
Infrastructure 106,520,024 10,837,955 - 14,592,197 131,950,176
IT Subscription - 92,653 - - 92,653
Total Capital Assets Being
Depreciated and Amortized 106,933,723 11,631,545 - 14,592,197 133,157,465
Less: Accumulated Depreciation
Machinery and Equipment (330,042) (18,848) - - (348,890)
Infrastructure (22,094,527) (4,901,933) - - (26,996,460)
Less: Accumulated Amortization
IT Subscription - (9,113) - - (9,113)
Total Accumulated Depreciation
and Amortization (22,424,569) (4,929,894) - - (27,354,463)
Total Capital Assets Being
Depreciated and Amortized, Net 84,509,154 6,701,651 - 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 bot h
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
53
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 Final Maturity Balance
Issue Amount Rates Date Outstanding
Governmental Activities
General Obligation Improvement Bonds:
GO Refunding Bonds, Series 2010B 1,970,000$ 1.00 - 3.20%2025 190,000$
GO Improvement Bonds, Series 2014A 2,850,000 2.00 - 3.50%2030 930,000
GO Improvement Bonds, Series 2015A 1,620,000 2.00 - 3.00%2026 325,000
GO Improvement Bonds, Series 2016A 2,690,000 2.00 - 2.00%2027 855,000
GO Improvement Bonds, Series 2017A 4,565,000 2.50 - 2.50%2028 1,940,000
GO Improvement Bonds, Series 2019A 2,860,000 2.00 - 3.00%2035 1,795,000
GO Improvement Bonds, Series 2021A 15,675,000 1.75 - 3.00%2042 14,195,000
GO Improvement Bonds, Series 2022A 3,895,000 3.00 - 5.00%2038 3,700,000
GO Improvement Bonds, Series 2023A 3,410,000 4.00 - 5.00%2034 3,410,000
GO Improvement Bonds, Series 2024A 4,195,000 4.00 - 5.00%2039 4,195,000
Total General Obligation Improvement Bonds 31,535,000
General Obligation Equipment Certificates:
GO Equipment Certificates, Series 2018A 940,000 2.70 - 2.70%2028 450,000
General Obligation Tax Abatement Bonds:
GO Tax Abatement Bonds, Series 2022A 1,010,000 3.00 - 5.00%2033 930,000
Total Governmental Activities Debt 32,915,000$
Business-Type Activities
General Obligation Revenue Bonds:
GO Refunding Bonds, Series 2012A 4,035,000$ 2.00 - 2.50%2030 1,940,000$
GO Improvement Bonds, Series 2014A 3,385,000 2.00 - 3.50%2030 1,495,000
GO Improvement Bonds, Series 2015A 1,195,000 2.00 - 3.00%2031 610,000
GO Improvement Bonds, Series 2016A 6,855,000 2.00 - 2.00%2032 3,910,000
GO Improvement Bonds, Series 2017A 4,480,000 2.50 - 3.00%2033 2,880,000
GO Improvement Bonds, Series 2019A 1,195,000 2.00 - 3.00%2035 925,000
GO Improvement Bonds, Series 2021A 6,310,000 1.75 - 3.00%2037 5,465,000
GO Improvement Bonds, Series 2022A 7,590,000 3.00 - 5.00%2037 6,700,000
GO Improvement Bonds, Series 2023A 2,000,000 4.00 - 5.00%2038 1,875,000
GO Improvement Bonds, Series 2024A 470,000 4.00 - 5.00%2039 470,000
Total Business-Type Activities - GO Bonds 26,270,000
Subscription Liabilities:
Sensus Analytics 92,653 8.50%2029 88,418
Total Business-Type Activities Debt 26,358,418$
Description
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
54
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:
Amounts Due
Balance Balance Within
Type of Debt 01/01/24 Additions Deductions 12/31/24 One Year
Governmental Activities
G.O. Improvement Bonds 29,860,000$ 4,195,000$ (2,520,000)$ 31,535,000$ 2,770,000$
G.O. Equipment Certificates 555,000 - (105,000) 450,000 110,000
G.O. Tax Abatement Bonds 1,010,000 - (80,000) 930,000 85,000
Unamortized Bond Premium 1,321,965 349,883 (137,458) 1,534,390 -
Compensated Absences 110,115 81,082 - 191,197 143,398
Total 32,857,080$ 4,625,965$ (2,842,458)$ 34,640,587$ 3,108,398$
Business-Type Activities
G.O. Revenue Bonds 28,115,000$ 470,000$ (2,315,000)$ 26,270,000$ 2,385,000$
Unamortized Bond Premium 1,082,925 29,270 (95,896) 1,016,299 -
Subscription Liabilities - 92,653 (4,235) 88,418 39,872
Compensated Absences 38,291 13,373 - 51,664 38,748
Total 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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
55
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, i ncluding principal and interest and
excluding compensated absences payable and net pension and OPEB liabilities, are as follows:
Years Ending
December 31, Principal Interest Total Principal Interest Total
2025 2,770,000$ 937,681$ 3,707,681$ 110,000$ 10,665$ 120,665$
2026 2,990,000 854,829 3,844,829 110,000 7,695 117,695
2027 2,920,000 754,775 3,674,775 115,000 4,658 119,658
2028 2,700,000 656,328 3,356,328 115,000 1,552 116,552
2029 2,295,000 565,256 2,860,256 - - -
2030-2034 10,505,000 1,688,256 12,193,256 - - -
2035-2039 5,520,000 449,101 5,969,101 - - -
2040-2042 1,835,000 59,022 1,894,022 - - -
Totals 31,535,000$ 5,965,248$ 37,500,248$ 450,000$ 24,570$ 474,570$
Governmental Activities
G.O. Improvement Bonds G.O. Equipment Certificates
Years Ending
December 31, Principal Interest Total Principal Interest Total
2025 85,000$ 39,575$ 124,575$ 2,385,000$ 758,194$ 3,143,194$
2026 90,000 35,200 125,200 2,435,000 685,708 3,120,708
2027 95,000 30,575 125,575 2,505,000 610,114 3,115,114
2028 95,000 25,825 120,825 2,590,000 531,226 3,121,226
2029 100,000 20,950 120,950 2,640,000 449,875 3,089,875
2030-2034 465,000 32,975 497,975 10,010,000 1,176,096 11,186,096
2035-2039 - - - 3,705,000 194,952 3,899,952
Totals 930,000$ 185,100$ 1,115,100$ 26,270,000$ 4,406,165$ 30,676,165$
G.O. Tax Abatement Bonds G.O. Revenue Bonds
Business-Type ActivitiesGovernmental Activities
Years Ending
December 31, Principal Interest Total
2025 39,872$ 4,853$ 44,725$
2026 14,301 3,520 17,821
2027 16,123 2,233 18,356
2028 18,122 784 18,906
Totals 88,418$ 11,390$ 99,808$
Business-Type Activities
Subscription Liabilities
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
56
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 $789,537 in the Statement of Revenues, Expenses,
and Changes in Net Position – Proprietary Funds (included in the line Interest and Other Charges).
2.E. INTERFUND TRANSACTIONS AND BALANCES
Operating transfers consist of the following for the year ended December 31, 2024:
Nonmajor
Transfers Capital Project
Out General Funds Total
General 973,193$ -$ 973,193$ 973,193$
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$
Major Fund
Major Funds
Transfers In
Nonmajor Funds
Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the fund that statut e 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:
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 -$
Short-Term Balances
Interfund balances are to be repaid as cash flows become available.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
57
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.F. FUND EQUITY
At December 31, 2024, governmental fund equity consists of the following:
Restricted Committed Assigned Unassigned
General Fund
Unassigned -$ -$ -$ 10,324,572$
Debt Service Fund
Restricted for Debt Service 5,678,193$ -$ -$ -$
2024 Street & Utility Improvement Fund
Restricted for Capital Improvements 368,438$ -$ -$ -$
Hudson Blvd Imp-Seg A-InwdHdrx Fund
Restricted for Capital Improvements 1,219,181$ -$ -$ -$
Nonmajor Governmental Funds
Restricted for Park Improvements 2,185,344$ -$ -$ -$
Restricted for the Development of Ball Parks 1,000,000 - - -
Restricted for Heritage Farms Street and Utility Improvements 242,783 - - -
Restricted for City Hall/Fire Station Project 1,462,461 - - -
Restricted for Tamarack Farm Estates Street Improvements 128,269 - - -
Restricted for 2022 Street Improvements 368,772 - - -
Committed for Lions Park - 27,239 - -
Assigned for Economic Development Authority - - 12,853 -
Assigned for Vehicle Acquisition - - 697,318 -
Assigned for Infrastructure Reserve - - 694,028 -
Assigned for City Facilities - - 102,867 -
Assigned for Manning and Hudson Future Stoplight - - 27,984 -
Assigned for Manning and Highway 36 Interchange - - 2,677 -
Assigned for 2023 Street Improvements - - 270,602 -
Assigned for 15th Street N Improvement - - 60,277 -
Assigned for Fire Equipment & Projects 346,447
Assigned for Street Maintenance 148,419
Unassigned - - - (987,666)
Total Nonmajor Governmental Funds Balance 5,387,629$ 27,239$ 2,363,472$ (987,666)$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
58
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
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)$
Nonmajor Governmental Funds
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
59
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 o f
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 appli ed 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 th e 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 rec eive
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 o n
or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years. After five y ears,
vesting increase by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fir e
Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a ful l
retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if the y
were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417 p ercent
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. Recipie nts
that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the inc rease
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
60
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 wa s 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 $39,513 for the year ended December 31, 2024 as revenue and an offsetting
reduction of net pension liability for its proportionate share of the State of Minnesota’s on -behalf contributions to the General
Employees Fund.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
61
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
At December 31, 2024, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected
and actual economic experience 78,853$ -$
Changes in actuarial assumptions 4,188 304,296
Difference between projected
and actual investment earnings - 211,857
Changes in proportionate share 117,138 79,200
Contributions paid to PERA subsequent
to the measurement date 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 proportion ate 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 Octo ber
1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2 048, whichever
is earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded, or until the State Pa trol
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
62
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 $607,785
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 $12,638 for the year ended December 31, 2024 as revenue and
an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on -behalf contributions to
the Police and Fire Fund.
At December 31, 2024, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected
and actual economic experience 152,905$ -$
Changes in actuarial assumptions 328,931 472,367
Difference between projected
and actual investment earnings - 156,628
Changes in proportionate share 324,395 40,839
Contributions paid to PERA subsequent
to the measurement date 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$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
63
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 alloca tion
and best estimates of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
Target Allocation
Long-Term Expected Real
Rate of Return
Domestic Equity 33.50% 5.10%
International Equity 16.50% 5.30%
Fixed Income 25.00% 0.75%
Private Markets 25.00% 5.90%
Total 100%
Actuarial Methods and Assumptions
The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June
30, 2024, using the entry age normal actuarial cost method. The long-term rate of return on pension plan investments used to
determine the total liability is 7.0 percent. The 7.0 percent assumption is based on a review of inflation and investment ret urn
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
64
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, ca lculated
using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pe nsion
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:
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
65
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
6.00% $ 1,875,700 6.00%1,383,574$
7.00%858,774$ 7.00%585,467$
8.00%22,259$ 8.00%(69,945)$ 1% Increase in Discount Rate
Current Discount Rate
1% Decrease in Discount Rate
Sensitivity Analysis
Net Pension Liability (Asset) at Different Discount Rates
General Employees Fund Police and Fire Fund
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report
that includes financial statements and required supplementary information. That report may be obtained on the Internet at
www.mnpera.org.
NOTE 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 c alculations).
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
66
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:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected
and actual economic experience -$ 140,050$
Changes in actuarial assumptions 5,248 11,554
Difference between projected
and actual investment earnings 124,232 -
Total Deferred Outflows/Inflows 129,480$ 151,604$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
67
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, Pension Expense
2025 (2,109)$
2026 9,793$
2027 22,692$
2028 (17,603)$
2029 (17,449)$
2030 (17,448)$
Actuarial Assumptions
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
Interest on Deferred Amounts
2.50%
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 Fire fighters 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:
1% Decrease in 1% Increase in
Discount Rate (4.75%)Discount Rate (5.75%)Discount Rate (6.75%)
Net Pension Asset (626,641)$ (656,675)$ (683,882)$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
68
NOTE 4 DEFINED BENEFIT PENSION PLAN – FIREFIGHTERS RELIEF ASSOCIATION (Continued)
Plan Investments
Asset Allocation
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:
Long-Term Expected
Asset Class Target Allocation Real Rate of Return
Cash 12.00% 2.00%
Fixed Income 28.00% 3.10%
Equities 60.00% 7.90%
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in a separately issued financial report tha t
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
69
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
70
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 7/1/2023 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.
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 omi ssions;
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 financi al
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2024
71
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.D. 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 bid s 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 $2,000,000 interfund loan from the Sewer Fund.
72
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF LAKE ELMO, MINNESOTA
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2024
73
Actual Variance with
Amounts Budget
Budgetary Over
Original Final Basis (Under)
REVENUES
Taxes
Property Taxes 5,998,212$ 5,998,212$ 5,977,165$ (21,047)$
Franchise Taxes 65,000 65,000 86,955 21,955
Gravel Tax - - 503 503
Total Taxes 6,063,212 6,063,212 6,064,623 1,411
Licenses and Permits 933,580 933,580 1,020,801 87,221
Intergovernmental Revenue
State Revenue
Market Value Credit - - 4,651 4,651
Police and Fire Aid - - 145,484 145,484
Other State Grants and Aids 216,587 216,587 321,227 104,640
County Revenue
Other County Grants and Aids 16,756 16,756 29,498 12,742
Total Intergovernmental Revenue 233,343 233,343 500,860 267,517
Charges for Services
General Government 283,615 283,615 353,936 70,321
Other Public Safety 487,000 487,000 554,104 67,104
Streets and Highways 2,000 2,000 4,853 2,853
Total Charges for Services 772,615 772,615 912,893 140,278
Fines and Forfeitures 30,000 30,000 55,286 25,286
Miscellaneous Revenue
Investment Earnings (Losses)80,000 80,000 444,440 364,440
Lease Interest - - 63,813 63,813
Refunds and Reimbursements 5,000 5,000 23,702 18,702
Contributions and Donations 11,000 11,000 49,964 38,964
Other Miscellaneous 10,500 10,500 10,380 (120)
Total Miscellaneous Revenue 106,500 106,500 592,299 485,799
TOTAL REVENUES 8,139,250 8,139,250 9,146,762 1,007,512
Budgeted Amounts
CITY OF LAKE ELMO, MINNESOTA
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2024
74
Actual Variance with
Amounts Budget
Budgetary Over
Original Final Basis (Under)
EXPENDITURES
General Government
Mayor and Council 66,121$ 66,121$ 46,144$ (19,977)$
Administration and Finance 941,392 940,483 892,505 (47,978)
Other General Government 524,772 521,861 498,507 (23,354)
Total General Government 1,532,285 1,528,465 1,437,156 (91,309)
Public Safety
Police
Current 1,310,573 1,308,160 1,305,884 (2,276)
Fire
Current 1,483,038 1,527,380 1,560,948 33,568
Capital Outlay 65,000 65,000 48,226 (16,774)
Building Inspections
Current 1,103,590 1,108,812 803,693 (305,119)
Other Public Safety
Current 69,000 69,000 79,038 10,038
Total Public Safety 4,031,201 4,078,352 3,797,789 (280,563)
Public Works
Street Maintenance and Storm Sewers 906,959 906,959 892,719 (14,240)
Snow and Ice Removal 97,000 97,000 76,456 (20,544)
Street Engineering 16,000 16,000 34,763 18,763
Street Lighting 65,000 65,000 65,154 154
Capital Outlay - Other 36,500 36,500 40,662 4,162
Total Public Works 1,121,459 1,121,459 1,109,754 (11,705)
Culture and Recreation
Parks and Recreation
Current 451,977 486,977 492,788 5,811
TOTAL EXPENDITURES 7,136,922 7,215,253 6,837,487 (377,766)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,002,328 923,997 2,309,275 1,385,278
OTHER FINANCING SOURCES (USES)
Transfers
From Other Funds - - 67,910 67,910
To Other Funds (967,328) (967,328) (973,193) (5,865)
TOTAL OTHER FINANCING SOURCES (USES)(967,328) (967,328) (905,283) 62,045
NET CHANGE IN FUND BALANCE 35,000$ (43,331)$ 1,403,992 1,447,323$
FUND BALANCE - BEGINNING 8,920,580
FUND BALANCE - ENDING 10,324,572$
Budgeted Amounts
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY’S PROPORTIONATE
SHARE OF THE NET PENSION LIABILITY
75
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%
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY PENSION CONTRIBUTIONS
LAST TEN YEARS (Presented Prospectively)
76
Contributions in
Relation to the Contributions as
For the Fiscal Statutorily Statutorily Contribution City's a Percentage of
Year Ended Required Required Deficiency Covered Covered
December 31, Contribution Contribution (Excess) Payroll 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
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CHANGES IN NET PENSION LIABILITY (ASSET)
FIREFIGHTERS RELEIF ASSOCIATION
LAST TEN YEARS (Presented Prospectively)
77
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.
Measurement Year Ended December 31,
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CHANGES IN CITY’S NET OPEB LIABILITY
LAST TEN YEARS (Presented Prospectively)
78
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%
Measurement Year Ended December 31,
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.
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY OPEB CONTRIBUTIONS
LAST TEN YEARS (Presented Prospectively)
79
Contributions in
Relation to the Contributions as
For the Contractually Contractually Contribution City's a Percentage of
Year Ended Required Required Deficiency Covered Covered
December 31, Contribution Contribution (Excess) Payroll 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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
80
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
81
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
82
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
83
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
84
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
85
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
86
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 .
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
87
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 7/1/2022 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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2024
88
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.
89
SUPPLEMENTARY INFORMATION
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERMENTAL FUNDS
DECEMBER 31, 2024
90
Total Nonmajor
Special Revenue
Funds
Total Nonmajor
Capital Project
Funds
Total Nonmajor
Governmental
Funds
ASSETS
Cash, Cash Equivalents, and Investments 39,955$ 8,170,016$ 8,209,971$
Assessments Receivable - 19,809 19,809
Accounts Receivable - 32,110 32,110
Interest Receivable 137 31,235 31,372
TOTAL ASSETS 40,092$ 8,253,170$ 8,293,262$
LIABILITIES
Accounts Payable -$ 78,528$ 78,528$
Construction Contracts Payable - 233,625 233,625
Due to Other Funds - 920,627 920,627
Unearned Revenue - 250,000 250,000
Total Liabilities - 1,482,780 1,482,780
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Special Assessments - 19,808 19,808
FUND BALANCES
Restricted - 5,387,629 5,387,629
Committed 27,239 - 27,239
Assigned 12,853 2,350,619 2,363,472
Unassigned - (987,666) (987,666)
Total Fund Balances 40,092 6,750,582 6,790,674
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 40,092$ 8,253,170$ 8,293,262$
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
91
Total Nonmajor
Special Revenue
Funds
Total Nonmajor
Capital Project
Funds
Total Nonmajor
Governmental
Funds
REVENUES
Special Assessments -$ 1,160$ 1,160$
Intergovernmental 53,489 336,555 390,044
Charges for Services 6,000 1,088,429 1,094,429
Investment Earnings (Losses)5,235 370,299 375,534
Miscellaneous - 23,559 23,559
TOTAL REVENUES 64,724 1,820,002 1,884,726
EXPENDITURES
Current:
Public Works - 431,554 431,554
Economic Development - 39 39
Capital Outlay - 2,703,050 2,703,050
Debt Service:
Interest and Other Charges - 8,690 8,690
TOTAL EXPENDITURES - 3,143,333 3,143,333
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 64,724 (1,323,331) (1,258,607)
OTHER FINANCING SOURCES (USES)
Sale of Assets - 109,573 109,573
Bond Issuance - 170,991 170,991
Premium on Bond Issuance - 14,581 14,581
Transfers In - 1,473,193 1,473,193
Transfers Out (67,910) (500,000) (567,910)
TOTAL OTHER FINANCING
SOURCES (USES)(67,910) 1,268,338 1,200,428
NET CHANGE IN FUND BALANCES (3,186) (54,993) (58,179)
FUND BALANCES - BEGINNING 43,278 4,958,040 5,001,318
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Nonmajor Funds - 1,847,535 1,847,535
FUND BALANCES - BEGINNING 43,278 6,805,575 6,848,853
(As Adjusted)
FUND BALANCES - ENDING 40,092$ 6,750,582$ 6,790,674$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2024
92
Lions Park Sign
Program Fund
Economic
Development
Authority Fund ARPA Fund
Total Nonmajor
Special Revenue
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$
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
93
Lions Park Sign
Program Fund
Economic
Development
Authority Fund ARPA Fund
Total Nonmajor
Special Revenue
Funds
REVENUES
Intergovernmental -$ -$ 53,489$ 53,489$
Charges for Services 6,000 - - 6,000
Investment Earnings (Losses)905 498 3,832 5,235
TOTAL REVENUES 6,905 498 57,321 64,724
OTHER FINANCING SOURCES (USES)
Transfers Out - - (67,910) (67,910)
NET CHANGE IN FUND BALANCES 6,905 498 (10,589) (3,186)
FUND BALANCES - BEGINNING 20,334 12,355 10,589 43,278
FUND BALANCES - ENDING 27,239$ 12,853$ -$ 40,092$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2024
94
Park Dedication
Fund
Vehicle
Acquisition Fund
Heritage Farms
Street & Utility
Improvements
Fund
City Hall / Fire
Station Bldg
Project Fund
Infrastructure
Reserve Fund
City Facilities
Fund
Manning &
Hudson Future
Stoplight Fund
CSAH 13 Phase
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$ -$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2024
95
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
Assigned
Unassigned
Total Fund Balance
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
Railroad
Crossing
Improvements
Fund
Old Village
Phases 5 & 6
Fund
CSAH 15
Manning Avenue
Phase 3 Fund
Manning &
Highway 36
Interchange Fund
Tamarack Farm
Estates Street
Improvements
Fund
CSAH 15
Manning Avenue
& 30th Street
Fund
TH36 Lake
Elmo Avenue
Improvements
Fund
2022 Street
Improvements
Fund
Old Village
Phase 7 Fund
-$ -$ -$ 2,667$ 127,806$ -$ -$ 367,440$ -$
- - - - - - - - -
- - - - - - - - -
54 - - 10 463 - - 1,332 78
54$ -$ -$ 2,677$ 128,269$ -$ -$ 368,772$ 78$
45,504$ 237$ -$ -$ -$ -$ 471$ -$ 1,280$
- - - - - - - - -
10,001 272,305 3,525 - - 14,113 11,119 - 44,361
- - - - - - - - -
55,505 272,542 3,525 - - 14,113 11,590 - 45,641
- - - - - - - - -
- - - - 128,269 - - 368,772 -
- - - 2,677 - - - - -
(55,451) (272,542) (3,525) - - (14,113) (11,590) - (45,563)
(55,451) (272,542) (3,525) 2,677 128,269 (14,113) (11,590) 368,772 (45,563)
54$ -$ -$ 2,677$ 128,269$ -$ -$ 368,772$ 78$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2024
96
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
Assigned
Unassigned
Total Fund Balance
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
2023 Street
Improvements
Fund
CSAH 15
(Manning Ave)
Phase 3 Fund
15th Street N
Improvement
Fund
30th St N Gap
Segmt
Improvement
Fund
Fire Equipment
& Project Fund
Street
Maintenance
Fund
2025 Street &
Utility Imprvmts
Fund
Stillwater Area
Sch Dist Util
Fund
Total Nonmajor
Capital Project
Funds
269,387$ -$ 61,163$ -$ 356,569$ 148,343$ -$ 218$ 8,170,016$
- - - - - - - - 19,809
- - - - - - - - 32,110
1,215 - - - - 207 - - 31,235
270,602$ -$ 61,163$ -$ 356,569$ 148,550$ -$ 218$ 8,253,170$
-$ 73$ 886$ 18,508$ 10,122$ 131$ 1,098$ 218$ 78,528$
- - - - - - - - 233,625
- 4,027 - 451,629 - - 61,158 - 920,627
- - - - - - - - 250,000
- 4,100 886 470,137 10,122 131 62,256 218 1,482,780
- - - - - - - - 19,808
- - - - - - - - 5,387,629
270,602 - 60,277 - 346,447 148,419 - - 2,350,619
- (4,100) - (470,137) - - (62,256) - (987,666)
270,602 (4,100) 60,277 (470,137) 346,447 148,419 (62,256) - 6,750,582
270,602$ -$ 61,163$ -$ 356,569$ 148,550$ -$ 218$ 8,253,170$
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
97
Park Dedication
Fund
Vehicle
Acquisition Fund
Heritage Farms
Street & Utility
Improvements
Fund
City Hall / Fire
Station Bldg
Project Fund
Infrastructure
Reserve Fund
City Facilities
Fund
Manning &
Hudson Future
Stoplight Fund
CSAH 13 Phase
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)$
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
98
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 BALANCE - BEGINNING
(As Adjusted)
FUND BALANCES - ENDING
Railroad
Crossing
Improvements
Fund
Old Village
Phases 5 & 6
Fund
CSAH 15
Manning Avenue
Phase 3 Fund
Manning &
Highway 36
Interchange Fund
Tamarack Farm
Estates Street
Improvements
Fund
CSAH 15
Manning Avenue
& 30th Street
Fund
TH36 Lake
Elmo Avenue
Improvements
Fund
2022 Street
Improvements
Fund
Old Village
Phase 7 Fund
-$ -$ -$ -$ -$ -$ -$ -$ -$
- - - - - - - - -
- - - - - - - - -
1,256 - - 105 4,986 - - 14,431 3,575
- - - - - 399 - - -
1,256 - - 105 4,986 399 - 14,431 3,575
- - - - - - - - -
- - - - - - - - -
96,004 14,569 - - 158 - 5,741 - 68,020
- - - - - - - - -
96,004 14,569 - - 158 - 5,741 - 68,020
(94,748) (14,569) - 105 4,828 399 (5,741) 14,431 (64,445)
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
(94,748) (14,569) - 105 4,828 399 (5,741) 14,431 (64,445)
39,297 (257,973) (3,525) 2,572 123,441 (14,512) (5,849) 354,341 18,882
- - - - - - - - -
39,297 (257,973) (3,525) 2,572 123,441 (14,512) (5,849) 354,341 18,882
(55,451)$ (272,542)$ (3,525)$ 2,677$ 128,269$ (14,113)$ (11,590)$ 368,772$ (45,563)$
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
99
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 BALANCE - BEGINNING
(As Adjusted)
FUND BALANCES - ENDING
2023 Street
Improvements
Fund
CSAH 15
(Manning Ave)
Phase 3 Fund
15th Street N
Improvement
Fund
30th St N Gap
Segmt
Improvement
Fund
Fire
Equipment &
Project Fund
Street
Maintenance
Fund
2025 Street &
Utility
Imprvmts Fund
Stillwater
Area Sch Dist
Util Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd
Imp-Seg A-
InwdHdrx Fund
Total Nonmajor
Capital Project
Funds
-$ -$ -$ -$ -$ -$ -$ -$ 1,160$
- - 330,000 - - - - - 336,555
- - - - - - - - 1,088,429
15,013 - - - - 1,389 - - 370,299
- - - - - - - - 23,559
15,013 - 330,000 - - 1,389 - - 1,820,002
17,044 - 536 258 138,085 275,644 - - 431,554
- - - - - - - - 39
15,197 2,548 421,037 444,447 21,332 177,326 62,256 - 2,703,050
- - 8,690 - - - - - 8,690
32,241 2,548 430,263 444,705 159,417 452,970 62,256 - 3,143,333
(17,228) (2,548) (100,263) (444,705) (159,417) (451,581) (62,256) - (1,323,331)
- - - - - - - - 109,573
- - 170,991 - - - - - 170,991
- - 14,581 - - - - - 14,581
- - - - 505,864 600,000 - - 1,473,193
- - - - - - - - (500,000)
- - 185,572 - 505,864 600,000 - - 1,268,338
(17,228) (2,548) 85,309 (444,705) 346,447 148,419 (62,256) - (54,993)
- (1,552) (25,032) (25,432) - - - - (56,882) (53,827) 4,958,040
287,830 - - - - - - - 56,882 53,827 1,847,535
287,830 (1,552) (25,032) (25,432) - - - - - - 6,805,575
270,602$ (4,100)$ 60,277$ (470,137)$ 346,447$ 148,419$ (62,256)$ -$ -$ -$ 6,750,582$
Formerly Nonmajor Funds
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING BALANCE SHEET
DEBT SERVICE FUND
DECEMBER 31, 2024
100
2010B GO CIP
Bonds Fund
2012B GO
Improvement
Bonds Fund
2014A GO
Improvement
Bonds Fund
2015A GO
Improvement
Bonds Fund
2016A GO
Improvement
Bonds Fund
2017A GO
Improvement
Bonds Fund
2019
Improvement
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$
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING BALANCE SHEET (Continued)
DEBT SERVICE FUND
DECEMBER 31, 2024
101
ASSETS
Cash, Cash Equivalents, and Investments
Assessments Receivable
Interest Receivable
TOTAL ASSETS
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Special Assessments
FUND BALANCE
Restricted
TOTAL DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
2018A GO
Equipment
Cert. Bonds
Fund
2021A GO
Improvement
Bonds Fund
2022A GO
Improvement
Bonds Fund
2023A GO
Improvement
Bonds Fund
2024A GO
Improvement
Bonds Fund
Total Debt
Service Fund
44,154$ 1,790,764$ 199,509$ 650,046$ 503,497$ 5,657,531$
- 1,050,233 260,704 702,722 704,224 3,767,197
- 4,621 292 1,586 461 14,571
44,154$ 2,845,618$ 460,505$ 1,354,354$ 1,208,182$ 9,439,299$
-$ 1,048,847$ 259,653$ 700,420$ 704,224$ 3,761,106$
44,154 1,796,771 200,852 653,934 503,958 5,678,193
44,154$ 2,845,618$ 460,505$ 1,354,354$ 1,208,182$ 9,439,299$
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
102
2010B GO CIP
Bonds Fund
2012B GO
Improvement
Bonds Fund
2014A GO
Improvement
Bonds Fund
2015A GO
Improvement
Bonds Fund
2016A GO
Improvement
Bonds Fund
2017A GO
Improvement
Bonds Fund
2019
Improvement
Bonds Fund
REVENUES
Property Taxes 205,884$ -$ 103,597$ -$ 187,529$ 340,954$ 298,661$
Special Assessments - 304 37,400 126,916 75,704 61,319 45,081
Investment Earnings (Losses)4,977 - 32,813 - 20,737 - 24,594
TOTAL REVENUES 210,861 304 173,810 126,916 283,970 402,273 368,336
EXPENDITURES
Current:
Economic Development - 5 90 56 279 215 127
Debt Service:
Principal 185,000 - 230,000 155,000 280,000 465,000 285,000
Interest and Other Charges 9,443 - 32,870 10,364 20,395 54,313 52,375
TOTAL EXPENDITURES 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$
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
103
2018A GO
Equipment Cert.
Bonds Fund
2021A GO
Improvement
Bonds Fund
2022A GO
Improvement
Bonds Fund
2023A GO
Improvement
Bonds Fund
2024A GO
Improvement
Bonds Fund
Total Debt
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
7,416 159,493 (135,050) 329,726 503,958 651,481
36,738 1,637,278 335,902 324,208 - 5,026,712
44,154$ 1,796,771$ 200,852$ 653,934$ 503,958$ 5,678,193$
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
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF INDEBTEDNESS
FOR THE YEAR ENDED DECEMBER 31, 2024
(UNAUDITED)
104
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%2/1/2025 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%2/1/2038 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%2/1/2034 3,410,000 3,410,000 - - 3,410,000 270,000
2024A G.O. Improvement Bonds 8/15/2024 4.00 - 5.00%2/1/2039 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%2/1/2028 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%2/1/2033 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%2/1/2035 1,195,000 1,000,000 - 75,000 925,000 75,000
2021A G.O. Improvement Bonds 12/7/2021 1.75 - 3.00%2/1/2037 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%2/1/2037 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%2/1/2039 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$
105
STATISTICAL SECTION
(UNAUDITED)
CITY OF LAKE ELMO, MINNESOTA
STATISTICAL SECTION
(UNAUDITED)
106
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.
CITY OF LAKE ELMO, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN YEARS
107
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.
CITY OF LAKE ELMO, MINNESOTA
NET POSITION BY COMPONENT (Continued)
LAST TEN YEARS
108
Governmental Activities:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Governmental Activities Net Position
Business-Type Activities:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Business-Type Activities Net Position
Primary Government:
Net Investment in Capital Assets
Restricted
Unrestricted
Total Primary Government Net Position
2019 2018 2017 2016 2015
24,771,065$ 15,396,520$ 8,883,320$ 9,032,535$ 8,723,329$
8,596,759 10,121,648 5,057,169 4,704,133 3,446,142
4,231,363 1,086,636 4,818,383 4,136,292 3,942,646
37,599,187$ 26,604,804$ 18,758,872$ 17,872,960$ 16,112,117$
33,052,649$ 18,382,934$ 12,180,378$ 12,506,474$ 10,170,351$
- - 2,695,734 1,473,164 1,876,119
16,528,968 13,842,382 9,151,417 6,400,375 3,577,285
49,581,617$ 32,225,316$ 24,027,529$ 20,380,013$ 15,623,755$
57,823,714$ 33,779,454$ 21,063,698$ 21,539,009$ 18,893,680$
8,596,759 10,121,648 7,752,903 6,177,297 5,322,261
20,760,331 14,929,018 13,969,800 10,536,667 7,519,931
87,180,804$ 58,830,120$ 42,786,401$ 38,252,973$ 31,735,872$
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION
LAST TEN YEARS
109
2024 2023 2022 2021 2020
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$
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION (Continued)
LAST TEN YEARS
110
Expenses
Governmental Activities:
General Government
Public Safety
Public Works
Parks and Recreation
Economic Development Authority
Debt Service
Total Governmental
Activities Expenses
Business-Type Activities:
Water
Sewer
Storm Sewer
Total Business-Type
Activities Expenses
Total Primary Government
Expenses
Program Revenues
Governmental Activities:
Charges for Services:
General Government
Public Safety
Public Works
Parks and Recreation
Economic Development Authority
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities
Program Revenues
Business-Type Activities:
Charges for services:
Water
Sewer
Storm Sewer
Operating Grants and Contributions
Capital Grants and Contributions
Total Business-Type Activities
Total Primary Government
Program Revenues
2019 2018 2017 2016 2015
1,181,219$ 1,266,269$ 1,503,251$ 1,358,370$ 1,134,132$
2,058,419 2,161,082 1,528,253 1,308,360 1,344,282
3,728,247 2,192,092 2,800,044 1,698,566 1,377,969
361,730 524,445 1,299,551 660,947 639,006
71,609 47,702 - - -
395,106 352,376 225,910 178,266 215,611
7,796,330 6,543,966 7,357,009 5,204,509 4,711,000
1,940,148 2,068,178 2,022,446 1,409,832 1,363,043
1,082,997 846,032 1,030,058 380,650 250,866
469,765 315,967 213,514 150,302 103,536
3,492,910 3,230,177 3,266,018 1,940,784 1,717,445
11,289,240$ 9,774,143$ 10,623,027$ 7,145,293$ 6,428,445$
553,870$ 379,378$ 206,856$ 51,009$ 42,706$
1,574,359 1,938,163 2,101,890 1,752,522 866,708
126,721 - - - 3,615
1,430 - - - 26,214
99,690 78,573 - - -
795,483 248,915 229,960 235,214 249,094
11,076,353 4,970,565 2,290,265 1,452,469 2,038,940
14,227,906 7,615,594 4,828,971 3,491,214 3,227,277
962,003 951,985 2,628,848 1,801,228 1,850,240
306,041 252,614 2,435,749 1,315,948 1,523,067
380,645 322,700 289,375 213,233 229,252
122,350 - - - -
14,114,787 7,466,627 1,489,922 3,464,567 -
15,885,826 8,993,926 6,843,894 6,794,976 3,602,559
30,113,732$ 16,609,520$ 11,672,865$ 10,286,190$ 6,829,836$
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION (Continued)
LAST TEN YEARS
111
2024 2023 2022 2021 2020
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.
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN NET POSITION (Continued)
LAST TEN YEARS
112
Net (Expense) Revenue:
Governmental Activities
Business-Type Activities
Total Primary Government, net
General Revenues and Other
Changes in Net Position:
Governmental Activities:
General Property Taxes
Unrestricted Grants
and Contributions
Unrestricted Investment
Earnings (Losses)
Miscellaneous
Gain (Loss) on Disposal of
Capital Assets
Transfers
Total Governmental Activities
Business-Type Activities:
Unrestricted Grants
and Contributions
Unrestricted Investment
Earnings (Losses)
Extraordinary Item
Transfers
Total Business-Type Activities
Total Primary Government
Change in Net Position:
Governmental Activities
Business-Type Activities
Total Primary Government
Change in Net Position
2019 2018 2017 2016 2015
6,431,576$ 1,071,628$ (2,528,038)$ (1,713,295)$ (1,483,723)$
12,392,916 5,763,749 3,577,876 4,854,192 1,885,114
18,824,492 6,835,377 1,049,838 3,140,897 401,391
4,181,914 3,610,106 3,040,413 3,226,739 3,204,119
4,956 6,868 2,749 8,584 2,749
331,010 115,583 48,987 43,228 46,589
- - 158,350 52,479 73,738
44,927 8,991 - - -
- 840 - 143,105 220,842
4,562,807 3,742,388 3,250,499 3,474,135 3,548,037
- 956 - 748 -
411,206 96,425 46,757 44,423 39,757
4,552,179 - - - -
- (840) - (143,105) (220,842)
4,963,385 96,541 46,757 (97,934) (181,085)
9,526,192$ 3,838,929$ 3,297,256$ 3,376,201$ 3,366,952$
10,994,383$ 4,814,016$ 722,461$ 1,760,840$ 2,064,314$
17,356,301 5,860,290 3,624,633 4,756,258 1,704,029
28,350,684$ 10,674,306$ 4,347,094$ 6,517,098$ 3,768,343$
CITY OF LAKE ELMO, MINNESOTA
FUND BALANCES – GOVERNMENTAL FUNDS
LAST TEN YEARS
113
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$
CITY OF LAKE ELMO, MINNESOTA
FUND BALANCES – GOVERNMENTAL FUNDS (Continued)
LAST TEN YEARS
114
General Fund:
Nonspendable
Committed
Unassigned
Total General Fund
All Other Governmental Funds:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all Other Governmental Funds
Total Governmental Funds
2019 2018 2017 2016 2015
28,162$ 18,951$ 410,193$ 409,222$ 432,306$
- - 200,000 200,000 -
4,286,022 4,756,695 3,499,133 3,279,815 2,754,976
4,314,184 4,775,646 4,109,326 3,889,037 3,187,282
- 395 675,000 - 3,908
5,973,451 6,133,168 2,849,956 3,248,230 2,477,730
24,070 11,003 - - -
1,746,202 1,198,909 1,307,216 1,504,656 1,768,742
(757,968) (3,043,623) (681,681) (418,169) (431,755)
6,985,755 4,299,852 4,150,491 4,334,717 3,818,625
11,299,939$ 9,075,498$ 8,259,817$ 8,223,754$ 7,005,907$
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
LAST TEN YEARS
115
2024 2023 2022 2021 2020
Revenues:
General Property Taxes 8,988,453$ 7,888,556$ 7,562,013$ 5,303,553$ 4,947,133$
Licenses and Permits 1,020,801 1,148,190 1,646,539 1,485,658 1,425,695
Intergovernmental 2,326,904 1,331,531 1,121,633 722,128 1,023,193
Charges for Services 2,007,322 1,081,606 1,170,762 1,151,914 1,273,241
Fines and Forfeits 55,286 45,402 34,711 45,749 33,584
Special Assessments 1,115,513 909,054 570,486 862,766 474,099
Park Dedication Fees - - - 1,845,371 714,558
Investment Earnings (Losses)986,898 1,072,572 (419,853) (13,874) 348,766
Lease Interest 63,813 65,336 39,196 - -
Miscellaneous 107,605 86,193 150,426 177,000 183,711
Total Revenues 16,672,595 13,628,440 11,875,913 11,580,265 10,423,980
Expenditures:
Current:
General Government 1,437,156 1,213,697 1,017,210 1,056,983 1,005,254
Public Safety 3,749,563 3,037,244 2,701,216 3,003,677 2,641,770
Public Works 1,501,472 1,355,217 1,763,030 1,488,448 1,493,370
Parks And Recreation 492,788 410,492 282,789 258,690 310,066
Economic Development Authority 7,074 - - 53,264 46,371
Debt service:
Principal 2,705,000 2,480,000 1,870,000 3,641,000 1,790,000
Interest and Fiscal Charges 990,313 863,089 611,636 425,797 420,299
Capital Outlay 6,748,063 11,806,496 14,912,731 4,915,641 1,846,843
Total Expenditures 17,631,429 21,166,235 23,158,612 14,843,500 9,553,973
Excess (Deficiency) of Revenues
Over Expenditures (958,834) (7,537,795) (11,282,699) (3,263,235) 870,007
Other Financing Sources (Uses):
Issuance of Debt 4,195,000 3,410,000 4,905,000 6,126,989 -
Premium on Issuance of Debt 349,883 317,037 326,200 (876,989) -
(Discount) on Issuance of Debt - - - 15,675,000 -
Proceeds from Sale of Capital Assets 109,573 60,600 76,162 548,115 13,805
Transfers In 1,541,103 466,799 252,074 - 1,900,244
Transfers Out (1,541,103) (466,799) (252,074) 17,300 (1,900,244)
Total Other Financing
Sources (Uses)4,654,456 3,787,637 5,307,362 21,490,415 13,805
Net Change in Fund Balance 3,695,622$ (3,750,158)$ (5,975,337)$ 18,227,180$ 883,812$
Debt Service as a Percentage of
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.
CITY OF LAKE ELMO, MINNESOTA
CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS (Continued)
LAST TEN YEARS
116
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
2019 2018 2017 2016 2015
4,182,327$ 3,610,508$ 3,042,074$ 3,231,674$ 3,222,216$
1,055,038 1,317,648 2,046,462 1,713,918 828,494
2,819,961 247,178 1,023,864 282,874 296,902
1,079,342 899,808 137,920 38,608 35,796
36,696 49,203 41,418 49,505 48,739
649,487 1,398,155 455,493 897,323 1,316,239
123,500 502,802 265,783 171,708 138,158
331,010 115,583 48,987 43,228 46,415
- - - - -
201,494 129,455 265,133 77,491 99,055
10,478,855 8,270,340 7,327,134 6,506,329 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%
CITY OF LAKE ELMO, MINNESOTA
TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN YEARS
117
Total % of Tax
Taxable Total Adjusted City Capacity to
Payable Market Real Personal Tax Tax Urban Tax Total Estimated
Year Value Property Property Capacity Capacity (1)Rate Market Value
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.
Tax Capacity
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.
CITY OF LAKE ELMO, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN YEARS
118
Operating Debt Total Special
Fiscal Tax Service Tax Washington Taxing
Year Rate Tax Rate Rate County Districts
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
Range of Total
Direct and Overlapping
Tax Rates
City Direct Rate
Range of Tax
Rates for ISD's
622, 832 & 834
Range of Tax
Rates for
Watershed Districts
Overlapping Rates
CITY OF LAKE ELMO, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
119
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 LLC 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
2024 2015
CITY OF LAKE ELMO, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN YEARS
120
Taxes Levied Net Tax Levy Collections in Outstanding Delinquent Taxes
Fiscal for the for the Percentage Subsequent Percentage Delinquent as a Percentage of
Year Fiscal Year Fiscal Year (1)Amount of Net Levy Years Amount of Net Levy Taxes Total Net Tax Levy
2015 3,113,017$ 3,133,137$ 3,112,989$ 99.36%19,874$ 3,132,863$ 99.99%274$ 0.01%
2016 3,112,204 3,112,204 3,068,116 98.58%42,044 3,110,160 99.93%2,044 0.07%
2017 2,950,426 2,950,426 2,935,173 99.48%12,485 2,947,658 99.91%2,768 0.09%
2018 3,596,601 3,592,491 3,574,859 99.51%13,239 3,588,098 99.88%4,393 0.12%
2019 4,179,840 4,175,590 4,149,059 99.36%19,244 4,168,303 99.83%7,287 0.17%
2020 4,949,823 4,945,184 4,864,708 98.37%43,074 4,907,782 99.24%37,402 0.76%
2021 5,263,268 5,258,656 5,205,793 98.99%50,910 5,256,703 99.96%1,953 0.04%
2022 7,468,748 7,463,868 7,372,100 98.77%61,909 7,434,009 99.60%29,859 0.40%
2023 7,798,403 7,793,724 7,738,743 99.29%47,873 7,786,616 99.91%7,108 0.09%
2024 8,922,042 8,917,228 8,811,084 98.81%49,418 8,860,502 99.36%56,726 0.64%
(1) Tax Levy adjusted for powerline and market value credits and AG program credits prior to 2016
Fiscal Year of the Levy
Collected within the
Total Collections to Date
CITY OF LAKE ELMO, MINNESOTA
WATER AND SANITARY SEWER CHARGES BY CUSTOMER
LAST TEN YEARS
121
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
CITY OF LAKE ELMO, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN YEARS
122
Business-Type
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 $32,915,000 26,270,000 59,185,000 5.3%4,171
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for personal income and population data.
Governmental Activities
CITY OF LAKE ELMO, MINNESOTA
RATIOS OF NET GENERAL BONDED DEBT
LAST TEN YEARS
123
Percentage
G.O.G.O.G.O. Capital Other G.O. Utility Less: Amounts Net General of Actual
Fiscal Improvement Equipment Improvement Notes and Revenue Available in Debt Bonded Debt Taxable Value Per
Year Bonds Certificates Plan Bonds Bonds Bonds Total*Service Funds Outstanding of Property Capita (Net)
2015 8,095,288$ -$ 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
General Bonded Debt Outstanding
CITY OF LAKE ELMO, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2024
124
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable*Debt
Overlapping Debt:
Independent School District # 622 167,920,089$ (1)10.8%18,139,325$
Independent School District # 832 41,390,000 (1)2.1%882,286
Independent School District # 834 167,695,000 (1)15.2%25,492,133
Washington County 112,695,000 (1)6.0%6,792,349
Metropolitan Council 1,558,153,207 (1)0.1%1,088,311
Total Overlapping Debt 52,394,404
City Direct Debt $32,915,000 100%32,915,000
Total Direct and Overlapping Debt 85,309,404$
Sources: Taxable value data used to estimate applicable percentages provided by Washington County.
Debt outstanding data provided by each governmental unit.
*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.
CITY OF LAKE ELMO, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN YEARS
125
Pay 2024 Market Value 3,186,775,200$
Applicable Percentage 3%
Debt Limit 95,603,256
Debt Applicable to Limit:
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$
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
Legal Debt Margin Calculation for Fiscal Years 2015 Through 2024
Legal Debt Margin Calculation for Fiscal Year 2024
CITY OF LAKE ELMO, MINNESOTA
PLEDGED REVENUE COVERAGE
LAST TEN YEARS
126
Net
Payable Gross Operating Available
Year Revenue (1)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.
G.O. Utility Revenue Bonds
Debt Service (3)
CITY OF LAKE ELMO, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN YEARS
127
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.
CITY OF LAKE ELMO, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
128
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 Homes/Boutwells (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
(1)City staff estimate
2024 2015
CITY OF LAKE ELMO, MINNESOTA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN YEARS
129
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:
EngineeringStreets 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
Full-Time-Equivalent Employees as of December 31,
CITY OF LAKE ELMO, MINNESOTA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM (Continued)
LAST TEN YEARS
130
General Government:
Administration
Finance
Planning and Zoning
Total General Government
Public Safety:
Fire
Building Inspections
Total Public Safety
Public Works:
EngineeringStreets and Roadways
Parks and Recreation:
Parks
Communications
Total Governmental Activities
Business-type Activities:
Water Utility
Sewer Utility
Storm Sewer Utility
Total Business-Type Activities
Total
2019 2018 2017 2016 2015
2.70 2.70 2.45 2.45 3.20
1.05 1.05 1.20 1.20 0.80
2.10 2.10 2.21 2.21 2.75
5.85 5.85 5.86 5.86 6.75
3.80 3.80 3.80 3.80 1.50
4.20 4.20 4.21 4.21 3.15
8.00 8.00 8.01 8.01 4.65
4.80 4.80 4.55 4.55 3.90
2.20 2.20 3.00 3.00 1.85
0.50 0.50 - - 0.70
21.35 21.35 21.42 21.42 17.85
2.50 2.50 2.00 2.00 2.45
1.15 1.15 1.66 1.66 1.30
0.80 0.80 0.80 - -
4.45 4.45 4.46 3.66 3.75
25.80 25.80 25.88 25.08 21.60
Full-Time-Equivalent Employees as of December 31,
CITY OF LAKE ELMO, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN YEARS
131
2024 2023 2022 2021 2020
Planning and Zoning:
Conditional use permits 7 2 7 1 1
Interim use permits - 2 - - -
Minor subdivisions 2 2 - 2 -
Plats / planned unit developments 4 10 5 7 5
Rezonings 5 8 2 8 1
Site plans - - - - 3
Variances 8 5 10 6 5
Other (new in 2023)- 9
Fire:
Total emergency responses 1,137 1,047 790 568 546
EMS responses 681 652 493 355 317
Fire responses 456 395 297 213 229
Building Inspections:
Residential permit valuations (thousands of dollars)72,852$ 55,067$ 69,557$ 100,189$ 98,294$
Commercial permit valuations (thousands of dollars)18,899$ 14,577$ 25,189$ 12,548$ 11,761$
New residential units (1)210 195 200 297 309
New commercial units 5 3 6 5 11
Water Utility:
Number of customers 3,607 3,466 3,196 2,863 2,522
Average quarterly consumption (2)80 108 100 89 76
(millions of gallons)
Sanitary Sewer Utility:
Number of customers 2,632 2,504 2,206 1,937 1,612
Average quarterly flow (3)34 32 29 19 18
(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
CITY OF LAKE ELMO, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM (Continued)
LAST TEN YEARS
132
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)
2019 2018 2017 2016 2015
5 6 5 3 2
- - 2 2 1
1 1 1 2 2
8 13 10 11 9
4 4 5 3 2
- - 1 1 -
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
CITY OF LAKE ELMO, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN YEARS
133
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 of watermain 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
134
OTHER REQUIRED REPORTS
AND SCHEDULES
135
www.schlennerwenner.cpa
INDEPENDENT AUDITOR’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
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 no t
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.
136
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.
SCHLENNER WENNER & CO.
St. Cloud, Minnesota
June 23, 2025
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31, 2024
137
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.
CITY OF LAKE ELMO, MINNESOTA
CORRECTIVE ACTION PLANS
FOR THE YEAR ENDED DECEMBER 31, 2024
138
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.
City of Lake Elmo,
Minnesota
Report to the Members of
Governance
June 23, 2025
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS
Introductory Letter ............................................................................................................................................... 1
Required Communications ................................................................................................................................... 2
Exhibit A – Representation Letter
1
www.schlennerwenner.cpa
Members of Governance
City of Lake Elmo, Minnesota
We are pleased to present this report related to our audit of the basic financial statements of the City of Lake Elmo
(the City) as of and for the year ended December 31, 2024. This report summarizes certain matters required by
professional standards to be communicated to you in your oversight responsibility for the City’s financial reporting
process.
This report is intended solely for the information and use of the members of governance and management and is
not intended to be, and should not be, used by anyone other than these specified parties. It will be our pleasure to
respond to any questions you have regarding this report. We appreciate the opportunity to continue to be of service
to the City.
SCHLENNER WENNER & CO.
St. Cloud, Minnesota
June 23, 2025
CITY OF LAKE ELMO, MINNESOTA
REQUIRED COMMUNICATIONS
2
Auditing standards generally accepted in the United States of America (AU-C 260, The Auditor’s Communication
With Those Charged With Governance) require the auditor to promote effective two-way communication between
the auditor and those charged with governance. Consistent with this requirement, the following summarizes our
responsibilities regarding the financial statement audit as well as observations arising from our audit that are
significant and relevant to your responsibility to oversee the financial and related compliance reporting process.
Our Responsibilities With Regard to the Financial Statement and Compliance Audit
Our responsibilities under auditing standards generally accepted in the United States of America and Government
Auditing Standards issued by the Comptroller General of the United States have been described to you in our
engagement letter dated December 8, 2022. Our audit of the basic financial statements does not relieve management
or those charged with governance of their responsibilities, which are also described in that letter.
Overview of the Planned Scope and Timing of the Financial Statement Audit
We have issued a separate communication dated April 5, 2025, regarding the planned scope and timing of our audit
and identified significant risks.
Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under accounting principles generally accepted in the United States of America, in certain circumstances,
management may select among alternative accounting practices. In our view, in such circumstances, management
has selected the preferable accounting practice.
Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of the accounting policies used by the City.
The City did not adopt any significant new accounting policies, nor have there been any changes in existing
significant accounting policies during the current period.
Significant Accounting Policies
We did not identify any significant accounting policies in controversial or emerging areas for which there is a lack
of authoritative guidance or consensus.
Significant Unusual Transactions
We did not identify any significant unusual transactions.
Management’s Judgments and Accounting Estimates
Accounting estimates are an integral part of the preparation of financial statements and are based upon
management's current judgment. The process used by management encompasses their knowledge and experience
about past and current events and certain assumptions about future events. You may wish to monitor throughout the
year the process used to determine and record these accounting estimates. The only estimates we have deemed
significant to the financial statements are estimates associated with the following balances reported at year-end:
• Net OPEB liability and related deferred outflows/inflows of resources
• Net pension asset/liability and related deferred outflows/inflows of resources
CITY OF LAKE ELMO, MINNESOTA
REQUIRED COMMUNICATIONS
3
Audit Adjustments and Uncorrected Misstatements
Audit adjustments, other than those that are clearly trivial, proposed by us and recorded by the City are shown
following the attached representation letter at Exhibit A.
We are not aware of any uncorrected misstatements other than misstatements that are clearly trivial.
Other Information Included in Annual Reports
Our responsibility for other information included in annual reports is to read the information and consider whether
its content or the manner of its presentation is materially inconsistent with the financial information covered by our
auditor’s report, whether it contains a material misstatement of fact or whether the other information is otherwise
misleading. We read the City’s introductory and statistical sections included in the annual report. We did not identify
material inconsistencies with the audited financial statements.
Observations About the Audit Process
Disagreements with Management
We encountered no disagreements with management over the application of significant accounting principles, the
basis for management’s judgments on any significant matters, the scope of the audit, or significant disclosures to
be included in the basic financial statements.
Consultations with Other Accountants
We are not aware of any consultations management had with other accountants about accounting or auditing
matters.
Significant Issues Discussed with Management
No significant issues arising from the audit were discussed or were the subject of correspondence with management.
Significant Difficulties Encountered in Performing the Audit
We did not encounter any significant difficulties in dealing with management during the audit.
Difficult or Contentious Matters That Required Consultation
We did not encounter any significant and difficult or contentious matters that required consultation outside the
engagement team.
Shared Responsibilities for Independence
Independence is a joint responsibility and is managed most effectively when management, audit committees (or
their equivalents), and audit firms work together in considering compliance with American Institute of Certified
Public Accountants (AICPA) and Government Accountability Office (GAO) independence rules. For Schlenner
Wenner & Co. to fulfill its professional responsibility to maintain and monitor independence, management, the
audit committee (when applicable), and Schlenner Wenner & Co. each play an important role.
Our Responsibilities
• AICPA and GAO rules require independence both of mind and in appearance when providing audit and
other attestation services. Schlenner Wenner & Co. is to ensure that the AICPA and GAO’s General
Requirements for performing non-attest services are adhered to and included in all letters of engagement.
• Maintain a system of quality control over compliance with independence rules and firm policies.
CITY OF LAKE ELMO, MINNESOTA
REQUIRED COMMUNICATIONS
4
The City’s Responsibilities
• Timely inform Schlenner Wenner & Co., before the effective date of transactions or other changes, of the
following:
o New affiliates, members of governance, or person in financial reporting and compliance oversight
roles.
o Changes in the reporting entity impacting affiliates such as related entities, investments, joint
ventures, component units, and jointly governed organizations.
• Provide necessary affiliate information such as new or updated structure charts, as well as financial
information required to perform materiality calculations needed for making affiliate determinations.
• Understand and conclude on the permissibility, prior to the City and its affiliates, members of governance,
or persons in a decision-making capacity, engaging in business relationships with Schlenner Wenner & Co.
• Not entering into arrangements of non-audit services resulting in Schlenner Wenner & Co. being involved
in making management decisions on behalf of the City.
• Not entering into relationships resulting in Schlenner Wenner & Co., Schlenner Wenner & Co. covered
persons or their close family members, temporarily or permanently acting as a member of governance or
person in an accounting, financial reporting or compliance oversight role at the City.
Internal Control and Compliance Matters
We have separately communicated matters related to internal control and compliance over financial reporting
identified during our audit of the basic financial statements, as required by Government Auditing Standards. This
communication is included within the compliance section of the City’s financial report for the year ended December
31, 2024.
Significant Written Communications Between Management and Our Firm
Copies of significant written communications between our firm and the management of the City of Lake Elmo,
including the representation letter provided to us by management, are attached as Exhibit A.
EXHIBIT A
REPRESENTATION LETTER
CITY OF LAKE ELMO, MINNESOTA
June 23, 2025
Schlenner Wenner & Co.
St. Cloud, MN 56302
This representation letter is provided in connection with your audit of the basic financial statements of the City of
Lake Elmo, Minnesota (the City), as of and for the year ended December 31, 2024 for the purpose of expressing
an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with
accounting principles generally accepted in the United States of America (U.S. GAAP).
We confirm, to the best of our knowledge and belief, that as of June 23, 2025:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated December 8,
2022, for the preparation and fair presentation of the financial statements referred to above in accordance with
U.S. GAAP.
2. We acknowledge our responsibility 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.
3. We acknowledge our responsibility for the design, implementation and maintenance of controls to prevent
and detect fraud.
4. The methods, data, and significant assumptions used by us in making accounting estimates and their related
disclosures are appropriate to achieve recognition, measurement, or disclosure that is reasonable in the
context of U.S. GAAP, and reflect our judgment based on our knowledge and experience about past and
current events, and our assumptions about conditions we expect to exist and courses of action we expect to
take.
5. Related-party transactions have been recorded in accordance with the economic substance of the transaction
and appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. Types of
related party transactions engaged in by the City include:
a. Those with component units for which the City is accountable.
b. Those with other organizations for which the nature and significance of their relationship with the City
are such that exclusion would cause the City’s financial statements to be misleading or incomplete.
c. Interfund transactions, including interfund accounts and advances receivable and payable, sale and
purchase transactions, interfund transfers, long-term loans, leasing arrangements and guarantees.
6. All funds that meet the quantitative criteria in GASB Statement No. 34; Basic Financial Statements—and
Management’s Discussion and Analysis—for State and Local Governments, as amended, and No. 37, Basic
Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments:
Omnibus—an amendment of GASB Statements No. 21 and No. 34, for presentation as major are identified and
presented as such and all other funds that are presented as major are particularly important to financial
statement users.
7. The financial statements properly classify all funds and activities in accordance with GASB Statement No.
54, Fund Balance Reporting and Governmental Fund Type Definitions, as amended.
8. The City followed either its established accounting policy regarding which resources (that is, restricted,
committed, assigned or unassigned) are considered to be spent first for expenditures for which more than one
resource classification is available or followed paragraph 18 of GASB Statement No. 54 to determine the fund
balance classifications for financial reporting purposes.
9. If applicable, the financial statements include all fiduciary activities required by GASB Statement No. 84,
Fiduciary Activities, as amended.
10. All events subsequent to the date of the financial statements, and for which U.S. GAAP requires adjustment
or disclosure, have been adjusted or disclosed.
11. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in
accordance with U.S. GAAP.
12. Management has followed applicable laws and regulations in adopting, approving and amending budgets.
13. If applicable, risk disclosures associated with deposit and investment securities and derivative transactions are
presented in accordance with GASB requirements.
14. If applicable, provisions for uncollectible receivables have been properly identified and recorded.
15. If applicable, capital assets, including infrastructure, intangible assets, and right of use assets are properly
capitalized, reported and, if applicable, depreciated or amortized.
16. If applicable, the City has properly separated information in debt disclosures related to direct borrowings and
direct placements of debt from other debt and disclosed any unused lines of credit, collateral pledged to
secure debt, terms in the debt agreements related to significant default or termination events with finance-
related consequences and significant subjective acceleration clauses in accordance with GASB Statement No.
88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements.
17. Components of net position (net investment in capital assets, restricted, and unrestricted) and classifications
of fund balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if
applicable, approved.
18. Revenues are appropriately classified in the statement of activities within program revenues and general
revenues.
19. Expenses have been appropriately classified in or allocated to functions and programs in the statement of
activities, and allocations have been made on a reasonable basis.
20. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported.
21. The City’s policy regarding whether to first apply restricted or unrestricted resources when an expense is
incurred for purposes for which both restricted and unrestricted net position is available and appropriately
disclosed and that net position is properly recognized under the policy.
22. If applicable, the City disclosed the names of entities with which it has a tax abatement agreement, the total
gross amount of taxes abated during the period, the specific taxes that were abated and whether any
commitments other than to reduce taxes were made as part of any tax abatement agreement as required by
GASB Statement No. 77, Tax Abatement Disclosures.
23. If applicable, the City disclosed tax abatements entered into by other governments that affect its revenues,
including the names of the governments that entered into the agreements, the specified taxes being abated,
and the gross dollar amount of taxes abated during the period, as required by GASB Statement No. 77.
24. If applicable, leases have been properly identified, recorded and disclosed in accordance with GASB
Statement No. 87, Leases.
25. If applicable, subscription-based technology information arrangements (SBITAs) have been properly
identified, recorded and disclosed in accordance with GASB Statement No. 96, Subscription-Based
Information Technology Arrangements.
26. We have no direct or indirect legal or moral obligation for any debt of any organization, public or private, that
is not disclosed in the financial statements.
27. We have complied with all aspects of laws, regulations and provisions of contracts and agreements that would
have a material effect on the financial statements in the event of noncompliance. In connection therewith, we
specifically represent that we are responsible for determining that we are not subject to the requirements of
the Single Audit Act because we have not received, expended or otherwise been the beneficiary of the
required amount of federal awards during the period of this audit.
28. If applicable, the government has properly disclosed or recognized conduit debt obligations and/or certain
arrangements associated with conduit debt obligations in accordance with GASB Statement No. 91, Conduit
Debt Obligations.
29. We have reviewed the GASB Statements effective for the fiscal year ending December 31, 2024, and
concluded the implementation of the following Statements did not have a material impact on the basic
financial statements:
a. GASB Statement No. 101, Compensated Absences
30. We believe the implementation of the GASB Statement listed below is appropriate:
a. GASB Statement No. 100, Accounting Changes and Error Corrections – The standard prescribes and
clarifies the accounting and financial reporting for changes in accounting principles, changes in
accounting estimates, and changes to or within the financial reporting entity.
31. We have no knowledge of any uncorrected misstatements in the financial statements.
32. We have requested an unsecured electronic copy of the auditor’s report and basic financial statements and
agree that the auditor’s report and basic financial statements will not be modified in any manner.
Information Provided
33. We have provided you with:
a. Access to all information of which we are aware that is relevant to the preparation and fair presentation of
the basic financial statements such as records, documentation and other matters.
b. Additional information that you have requested from us for the purpose of the audit.
c. Unrestricted access to persons within the City from whom you determined it necessary to obtain audit
evidence.
d. Minutes of the meetings of the City Council, or summaries of actions of recent meetings for which
minutes have not yet been prepared.
34. All transactions have been recorded in the accounting records and are reflected in the basic financial
statements.
35. We have disclosed to you the results of our assessment of risk that the basic financial statements may be
materially misstated as a result of fraud.
36. We have no knowledge of allegations of fraud or suspected fraud affecting the City’s basic financial
statements involving:
a. Management.
b. Employees who have significant roles in internal control.
c. Others where the fraud could have a material effect on the basic financial statements.
37. We have no knowledge of any allegations of fraud or suspected fraud affecting the City’s basic financial
statements received in communications from employees, former employees, analysts, regulators, or others.
38. We have no knowledge of noncompliance or suspected noncompliance with laws and regulations.
39. We are not aware of any pending or threatened litigation, claims or assessments; unasserted claims or
assessments that are probable of assertion and must be disclosed in accordance with Government Accounting
Standards Board (GASB) Codification Section C50, Claims and Judgements; or other matters, including gain
or loss contingencies, whose effects should be considered when preparing the financial statements. Neither we
nor the City or other acting on behalf of the City have consulted a lawyer concerning litigation, claims,
assessments or other matters affecting the City.
Unasserted claims or assessments have been properly disclosed in accordance with GASB Codification
Section C50. There are no other unasserted claims or assessments which are probable of assertion.
40. We have disclosed to you the identity of all of the City’s related parties and all the related-party relationships
and transactions of which we are aware.
41. We have informed you of all deficiencies in internal control over financial reporting, including significant
deficiencies or material weaknesses, in the design or operation of internal controls that could adversely affect
the City 's ability to record, process, summarize and report financial data.
42. There have been no communications from regulatory agencies concerning noncompliance with, or
deficiencies in, financial reporting practices.
43. It is our responsibility to inform you of all current and potential affiliates of the City as defined by the “State
and Local Government Client Affiliates” interpretation. Financial interests in, and other relationships with,
affiliates of the City may create threats to independence. We have:
a. Provided you with all information we are aware of with respect to current and potential affiliates,
including degree of influence assessments and materiality assessments.
b. Notified you of all changes to relevant considerations that may impact our determination of the existence
of current or potential affiliates involving changes in the determination of the materiality of an entity to
the City’s financial statements as a whole, the level of influence the City has over an entity’s financial
reporting process, or the level of control or influence of control or influence the City or a potential or
current affiliate has over an investee that is not trivial or clearly inconsequential, sufficiently in advance
of their effective dates to enable the City and Schlenner Wenner & Co. to identify and eliminate potential
impermissible services and relationships between Schlenner Wenner & Co. or its associated entities and
those potential affiliates, prior to the effective dates.
c. Made you aware, to the best of our knowledge and belief, of any non-audit services that the City or any of
our affiliates has engaged Schlenner Wenner & Co. or any of its associated entities to perform.
44. If applicable, we agree with the findings of the specialists in evaluating the Minnesota Public Employees
Retirement Association net pension liabilities and related balances, as well as the City’s net OPEB balances
and fire relief net pension asset balances, and have adequately considered the qualifications of the specialists
in determining the amounts and disclosures used in the financial statements and underlying accounting
records. We did not give instructions, or cause any instructions to be given, to the specialists with respect to
the values or amounts derived in an attempt to bias their work, and we are not otherwise aware of any matters
that have had an impact on the independence or objectivity of the specialists.
45. If applicable, we believe that the actuarial assumptions and methods used by the actuary for funding purposes
and for determining accumulated Plan benefits are appropriate in the circumstances. We did not give
instructions, or cause any instructions to be given, to the actuary with respect to the values or amounts derived
in an attempt to bias their work, and we are not otherwise aware of any matters that have had an impact on the
independence or objectivity of the Plan’s actuary.
46. If applicable, we believe that the information obtained from the audited financial statements of and other
participant information provided by the Minnesota Public Employees Retirement Association is appropriate in
the circumstances. We did not give instructions, or cause any instructions to be given, to the Plan or its
auditor in an attempt to bias their work, and we are not otherwise aware of any matters that have had an
impact on the independence or objectivity of the Plan or its auditor.
47. During the course of your audit, you may have accumulated records containing data that should be reflected
in our books and records. All such data have been so reflected. Accordingly, copies of such records in your
possession are no longer needed by us.
Supplementary Information
48. With respect to supplementary information presented in relation to the basic financial statements as a whole:
a. We acknowledge our responsibility for the presentation of such information.
b. We believe such information, including its form and content, is fairly presented in accordance with U.S.
GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior period.
d. We have disclosed to you any significant assumptions or interpretations underlying the measurement and
presentation.
e. When supplementary information is not presented with the audited basic financial statements, we will
make the audited basic financial statements readily available to the intended users of the supplementary
information no later than the date of issuance of the supplementary information and the auditor’s report
thereon.
49. With respect to the Management’s Discussion and Analysis section, Budgetary Comparison Schedules,
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, and Schedule of City OPEB Contributions presented as required by the
Governmental Accounting Standards Board to supplement the basic financial statements:
a. We acknowledge our responsibility for the presentation of such required supplementary information.
b. We believe such required supplementary information is measured and presented in accordance with
guidelines prescribed by U.S. GAAP.
c. The methods of measurement or presentation have not changed from those used in the prior period.
d. We have disclosed to you any significant assumptions or interpretations underlying the measurement and
presentation.
50. We understand, as part of your audit, you have prepared a draft of our financial statements and related notes
from the trial balance and other information we provided to you. We have reviewed and approve those
financial statements and have a responsibility to be in a position in fact and appearance to make an informed
judgment on those financial statements and have performed our responsibility to prevent and detect errors.
Further, we have designated a qualified management level individual to be responsible and accountable for
overseeing your services.
51. We are in agreement with the proposed adjusting journal entries you have recommended (as shown in Exhibit
A-1 and A-2), and they have been recorded in the City’s accounting records.
Compliance Considerations
In connection with your audit conducted in accordance with Government Auditing Standards, we confirm that
management:
52. Is responsible for the preparation and fair presentation of the financial statements in accordance with the
applicable financial reporting framework.
53. Is responsible for compliance with the laws, regulations and provisions of contracts and grant agreements
applicable to the auditee.
54. Is not aware of any instances of identified and suspected fraud and noncompliance with provisions of laws,
regulations, contracts, and grant agreements that have a material effect on the financial statements.
55. Is responsible 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.
56. Acknowledges its responsibility for the design, implementation and maintenance of controls to prevent and
detect fraud.
57. If applicable, has taken timely and appropriate steps to remedy identified or suspected fraud or
noncompliance with provisions of laws, regulations, contracts, and grant agreements that the auditor reports.
58. Has a process to track the status of audit findings and recommendations.
EXHIBIT A-1
ADJUSTING JOURNAL ENTRIES
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Adjusting
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
1 12/31/2024 Special Assmt Rec - Stark 331-000-0000-12400 DSF01M 7013 11,873.00
1 12/31/2024 Deferred Revenue 331-000-0000-22200 DSF01M 7013 11,873.00
To adjust for PY2023 AJE 6 coded Recurring Factual
to wrong account.
2 12/31/2024 Cash 601-000-0000-10100 ENT01 5201 7,918.00
2 12/31/2024 Accounts Receivable UB Cert 601-000-0000-11501 ENT01 5201 7,918.00
2 12/31/2024 Cash 602-000-0000-10100 ENT02 5201 3,052.00
2 12/31/2024 Accounts Receivable UB Cert 602-000-0000-11501 ENT02 5201 3,052.00
2 12/31/2024 Cash 603-000-0000-10100 ENT03 5201 4,865.00
2 12/31/2024 Accounts Receivable UB Cert 603-000-0000-11501 ENT03 5201 4,865.00
To allocate out negative Recurring Factual
Delinquent Balances.
3 12/31/2024 Accounts Receivable - Unbilled 101-000-0000-11700 GF01A 6503 48,272.00
3 12/31/2024 Tower Rent 101-410-1320-34120 GF01A 6503 112,085.00
3 12/31/2024 Interest Earnings - Leases 101-410-1320-36215 GF01A 6503 63,813.00
To apply principal portion of Recurring Factual
current year lease collections (revenues) to the receivable balance, and to reclassify
the remainder to interest earnings.
4 12/31/2024 Deferred Inflows- Leases 101-000-0000-22300 GF01A 6503 92,018.00
4 12/31/2024 Lease Revenue (Amortization)101-410-1320-38000 GF01A 6503 92,018.00
To amortize the lease deferral Recurring Factual
balances on a straight-line basis, resulting in lease revenue being recorded.
5 12/31/2024 OPEB Obligation 601-000-0000-21650 ENT01 6355B 6,258.00
5 12/31/2024 OPEB Expense 601-494-9400-41415 ENT01 6355B 6,258.00
5 12/31/2024 OPEB Obligation 602-000-0000-21650 ENT02 6355B 1,439.00
5 12/31/2024 OPEB Expense 602-495-9450-41415 ENT02 6355B 1,439.00
5 12/31/2024 OPEB Obligation 603-000-0000-21650 ENT03 6355B 838.00
5 12/31/2024 OPEB Expense 603-496-9500-41415 ENT03 6355B 838.00
To record current year OPEB Recurring Factual
activity in the proprietary funds.
6 12/31/2024 Investments 101-000-0000-10400 GF01A 11.00
6 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 11.00
6 12/31/2024 Investments 252-000-0000-10400 SRF03 11.00
6 12/31/2024 Interest Earnings 252-000-0000-36210 SRF03 11.00
To reallocate the interest Recurring Factual
earnings in the ARPA Fund, to close out the deficit cash balance.
7 12/31/2024 Deferred Outflows - Pension 601-000-0000-19000 ENT01 6354A 27,634.00
7 12/31/2024 Net Pension Liability 601-000-0000-23950 ENT01 6354A 90,280.00
7 12/31/2024 Deferred Inflows 601-000-0000-23960 ENT01 6354A 8,407.00
7 12/31/2024 PERA Pension Revenue 601-000-0000-33422 ENT01 6354A 6,600.00
7 12/31/2024 Pension Expense - Water 601-000-0000-44910 ENT01 6354A 47,639.00
7 12/31/2024 Deferred Outflows 602-000-0000-19000 ENT02 6354A 10,648.00
7 12/31/2024 Net Pension Liability 602-000-0000-23950 ENT02 6354A 36,471.00
7 12/31/2024 Deferred Inflows 602-000-0000-23960 ENT02 6354A 2,938.00
7 12/31/2024 PERA Pension Revenue 602-000-0000-33422 ENT02 6354A 2,596.00
7 12/31/2024 Pension Expense - Sewer 602-000-0000-44910 ENT02 6354A 20,289.00
7 12/31/2024 Deferred Outflows 603-000-0000-19000 ENT03 6354A 4,740.00
7 12/31/2024 Net Pension Liability 603-000-0000-23950 ENT03 6354A 17,120.00
7 12/31/2024 Deferred Inflows 603-000-0000-23960 ENT03 6354A 1,739.00
7 12/31/2024 PERA Pension Revenue 603-000-0000-33422 ENT03 6354A 1,274.00
7 12/31/2024 Pension Expense - Storm 603-000-0000-44910 ENT03 6354A 9,367.00
To record current year pension Recurring Factual
activity in the proprietary funds.
8 12/31/2024 Due From Other Governments 601-000-0000-13200 ENT01 7001A 75,752.00
8 12/31/2024 Miscellaneous State Grants 601-000-0000-33426 ENT01 7001A 75,752.00
To adjust receivable balances from Recurring Factual
6/23/2025
11:18 AM Page 1
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Adjusting
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
the MPCA to match client schedule.
9 12/31/2024 Special Assessments - Delinq 409-000-0000-12200 CPF05 1,160.00
9 12/31/2024 Deferred Revenue 409-000-0000-22200 CPF05 1,160.00
To write off delinquent assessment Recurring Factual
balance which was actually collected.
10 12/31/2024 Accounts Payable 601-000-0000-20200 ENT01 37,898.00
10 12/31/2024 Engineering Services 601-480-8134-43030 ENT01 37,898.00
To record unrecorded A/P found Recurring Factual
while examining an invoice beyond the 3 month A/P sample range.
11 12/31/2024 Investments 101-000-0000-10400 GF01A 5601 674.00
11 12/31/2024 Market Value Adjustment 101-000-0000-10401 GF01A 5601 825.00
11 12/31/2024 Interest Rec on Investments 101-000-0000-10450 GF01A 5601 84.00
11 12/31/2024 Transfer In 101-000-0000-39210 GF01A 5601 67.00
11 12/31/2024 Investments 252-000-0000-10400 SRF03 5601 674.00
11 12/31/2024 Market Value Adjustment 252-000-0000-10401 SRF03 5601 825.00
11 12/31/2024 Interest Rec on Investments 252-000-0000-10450 SRF03 5601 84.00
11 12/31/2024 Transfer Out 252-000-0000-47200 SRF03 5601 67.00
To zero out the ARPA Fund.Recurring Factual
12 12/31/2024 Machinery and Equipment 601-000-0000-16100 ENT01 5512 183,768.00
12 12/31/2024 Infrastructure 601-000-0000-16400 ENT01 5512 183,768.00
12 12/31/2024 Machinery & Equipment 602-000-0000-16100 ENT02 5512 314,808.00
12 12/31/2024 Infrastructure 602-000-0000-16600 ENT02 5512 314,808.00
12 12/31/2024 Machinery & Equipment 603-000-0000-16100 ENT03 5512 202,361.00
12 12/31/2024 Infrastructure 603-000-0000-16400 ENT03 5512 202,361.00
To reclass CY additions between Recurring Factual
asset classes.
13 12/31/2024 Accumulated Depr. - Mach&Equip 601-000-0000-16110 ENT01 5512 477.00
13 12/31/2024 Depreciation Expense 601-494-9400-43320 ENT01 5512 477.00
To adjust depreciation to match Recurring Factual
audited schedule
14 12/31/2024 Construction in Process 601-000-0000-16900 ENT01 37,890.00
14 12/31/2024 Engineering Services 601-480-8134-43030 ENT01 37,890.00
To reclass the engineering Recurring Factual
expenses in AJE 10 to CIP.
15 12/31/2024 Subscription Asset RTU 601-000-0000-11800 ENT01 6503 92,653.00
15 12/31/2024 SBITA Liability 601-000-0000-22800 ENT01 6503 92,653.00
To record SBITA issuance and Recurring Factual
corresponding RTU asset.
16 12/31/2024 State Fire Aid 101-420-2220-33420 GF01A 145,484.00
16 12/31/2024 Fire State Aid 101-420-2250-44920 GF01A 145,484.00
To record SVF plan revenue and Recurring Factual
expense.
17 12/31/2024 Subscription Accum Amortization 601-000-0000-11851 ENT01 6503 9,113.00
17 12/31/2024 SBITA Liability 601-000-0000-22800 ENT01 6503 4,235.00
17 12/31/2024 SBITA Interest Expense 601-000-9400-46110 ENT01 6503 3,722.00
17 12/31/2024 Amortization Expense 601-494-9400-43321 ENT01 6503 9,113.00
17 12/31/2024 Improvements Other Than Bldgs 601-494-9400-45300 ENT01 6503 7,957.00
To record interest/amortization of Recurring Factual
RTU asset on SBITA.
18 12/31/2024 Compensated Absences - Current 601-000-0000-21601 ENT01 6211 10,419.00
18 12/31/2024 Compensated Absences - Noncurr 601-000-0000-23900 ENT01 6211 56.00
6/23/2025
11:18 AM Page 2
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Adjusting
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
18 12/31/2024 Full-time Salaries 601-494-9400-41010 ENT01 6211 10,475.00
18 12/31/2024 Compensated Absences - Current 602-000-0000-21601 ENT02 6211 3,421.00
18 12/31/2024 Compensated Absences - Noncurr 602-000-0000-23900 ENT02 6211 119.00
18 12/31/2024 Full-time Salaries 602-495-9450-41010 ENT02 6211 3,540.00
18 12/31/2024 Compensated Absences - Current 603-000-0000-21601 ENT03 6211 1,470.00
18 12/31/2024 Compensated Absences - Noncurr 603-000-0000-23900 ENT03 6211 277.00
18 12/31/2024 Full-time Salaries 603-496-9500-41010 ENT03 6211 1,747.00
To adjust compensated absences to Recurring Factual
client schedule
19 12/31/2024 Special Asst Deferred 601-000-0000-12300 ENT01 7012 78,061.00
19 12/31/2024 Special Assessments 601-000-0000-36100 ENT01 7012 78,061.00
19 12/31/2024 Special Assessments - Deferred 602-000-0000-12300 ENT02 7012 47,121.00
19 12/31/2024 Special Assessments 602-000-0000-36100 ENT02 7012 47,121.00
19 12/31/2024 Special Asst Deferred 603-000-0000-12300 ENT03 7012 20,095.00
19 12/31/2024 Special Assessments 603-000-0000-36100 ENT03 7012 20,095.00
To apply principle payments to Recurring Factual
receivable.
1,656,249.00 1,656,249.00
6/23/2025
11:18 AM Page 3
EXHIBIT A-2
OTHER JOURNAL ENTRIES
Includes:
- Entries provided by the City
- Reclassifications for financial statement presentation
- Government-wide conversion entries
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
101 12/31/2024 Fund Balance 101-000-0000-25300 GF01A 2.00
101 12/31/2024 Cleaning Supplies 101-410-1320-42110 GF01A 4.00
101 12/31/2024 Interest Income 221-000-0000-36210 SRF02 1.00
101 12/31/2024 Interest Earnings 252-000-0000-36210 SRF03 1.00
101 12/31/2024 Fund Balance 321-000-0000-25300 DSF01E 1.00
101 12/31/2024 Miscellaneous 321-000-0000-44300 DSF01E 1.00
101 12/31/2024 Fund Balance 323-000-0000-25300 DSF01G 1.00
101 12/31/2024 Miscellaneous 323-000-0000-44300 DSF01G
101 12/31/2024 Miscellaneous 324-000-0000-44300 DSF01H 1.00
101 12/31/2024 Miscellaneous 327-000-0000-44300 DSF01J 1.00
101 12/31/2024 Fund Balance 329-000-0000-25300 DSF01K 1.00
101 12/31/2024 Miscellaneous 329-000-0000-44300 DSF01K 1.00
101 12/31/2024 Miscellaneous 333-000-0000-44300 DSF01O 2.00
101 12/31/2024 Contract Services 404-480-8117-43150 CPF01 1.00
101 12/31/2024 Fund Balance 409-000-0000-25300 CPF05 12.00
101 12/31/2024 Misc. Expenses 409-000-0000-44300 CPF05 11.00
101 12/31/2024 Vehicles 410-420-2220-45500 CPF02 1.00
101 12/31/2024 Interest Earnings 411-000-0000-36210 CPF06 1.00
101 12/31/2024 Fund Balance 423-000-0000-25300 CPF11 1.00
101 12/31/2024 Legal Fees 430-480-8091-43040 CPF17 1.00
101 12/31/2024 Fund Balance 431-000-0000-25300 CPF18 1.00
101 12/31/2024 Legal Services 431-480-8089-43040 CPF18 1.00
101 12/31/2024 Fund Balance 434-000-0000-25300 CPF03 1.00
101 12/31/2024 Interest Earnings 434-000-0000-36210 CPF03 1.00
101 12/31/2024 Interest Earnings 435-000-0000-36210 CPF20 1.00
101 12/31/2024 Fund Balance - Tamarack Farm 436-000-0000-25300 CPF21 1.00
101 12/31/2024 Engineering Services 436-480-8106-43030 CPF21 1.00
101 12/31/2024 Fund Balance - City Hall/Fire 437-000-0000-25300 CPF04 1.00
101 12/31/2024 Legal Fees 437-480-8108-43040 CPF04 1.00
101 12/31/2024 Fund Balance 441-000-0000-25300 CPF24 1.00
101 12/31/2024 Interest Earnings 441-000-0000-36210 CPF24 1.00
101 12/31/2024 Fund Balance 442-000-0000-25300 CPF25 1.00
101 12/31/2024 Engineering Services 442-480-8116-43030 CPF25 2.00
101 12/31/2024 Legal Publishing 446-480-8129-43510 CPF29 2.00
101 12/31/2024 Public Notice 447-480-8130-43510 CPF30 3.00
101 12/31/2024 Engineering Services 449-480-8133-43030 CPF34 1.00
101 12/31/2024 Fund Balance 601-000-0000-25300 ENT01 1.00
101 12/31/2024 Postage 601-494-9400-43220 ENT01 5.00
101 12/31/2024 Postage 602-495-9450-43220 ENT02 2.00
101 12/31/2024 Postage 603-496-9500-43220 ENT03 1.00
To balance funds and tie out Recurring
opening equity. Differences resulting from rounding errors upon TB import.
102 12/31/2024 Contracts Payable 437-000-0000-20500 CPF04 PBC 233,625.00
102 12/31/2024 Contract Services 437-480-8108-43150 CPF04 PBC 233,625.00
PBC - To record City Hall/Fire Recurring
Station building project retainage.
103 12/31/2024 Accounts Receivable - Unbilled 101-000-0000-11700 GF01A 6503 31,274.00
103 12/31/2024 Lease Receivables - Current 101-000-0000-11701 GF01A 6503 31,274.00
To reclassify the current portion Recurring
of leases receivable.
104 12/31/2024 Bonds Payable - Current SW-000-0000-22500 G34G 6001 260,000.00
104 12/31/2024 Bonds Payable - NonCurrent SW-000-0000-23100 G34G 6001 260,000.00
To reclass current portion of long Recurring
term debt.
105 12/31/2024 Deferred Revenue 101-000-0000-22200 GF01A 7010 GOV LEA 122,165.00
105 12/31/2024 Deferred Revenue - Delinquent Taxes SW-101-000-0000-22200 GF01A 7010 GOV LEA 56,052.00
105 12/31/2024 Deferred Revenue - Delinquent SA SW-101-000-0000-22201 GF01A 7010 GOV LEA 66,113.00
To break out deferred inflows from Recurring
deferred revenue for financial statement presentation purposes
106 12/31/2024 Special Assmts Rec - Due within One Year SW-000-0000-12300 ENT03 7013 21,361.00
106 12/31/2024 Special Assmts Rec - Deferred 321-000-0000-12300 DSF01E 7013 268.00
6/23/2025
11:18 AM Page 1
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
106 12/31/2024 Special Assmts Rec - Deferred 323-000-0000-12300 DSF01G 7013 32,957.00
106 12/31/2024 Special Assessment Deferred 324-000-0000-12300 DSF01H 7013 28,780.00
106 12/31/2024 Special Assmts Rec - Deferred 326-000-0000-12300 DSF01I 7013 49,186.00
106 12/31/2024 Special Assmts - Deferred 327-000-0000-12300 DSF01J 7013 37,309.00
106 12/31/2024 Special Assessments Deferred 329-000-0000-12300 DSF01K 7013 21,193.00
106 12/31/2024 Special Assmts - Deferred 331-000-0000-12300 DSF01M 7013 85,668.00
106 12/31/2024 Special Assess Rec - Deferred 332-000-0000-12300 DSF01N 7013 18,547.00
106 12/31/2024 Special Assess Rec - Deferred 333-000-0000-12300 DSF01O 7013 50,030.00
106 12/31/2024 Special Assess Rec - Deferred 334-000-0000-12300 DSF01P 7013 46,948.00
106 12/31/2024 Special Assessments - Deferred 409-000-0000-12300 CPF05 7013 740.00
106 12/31/2024 Special Asst Deferred 601-000-0000-12300 ENT01 7013 57,774.00
106 12/31/2024 Special Assessments - Deferred 602-000-0000-12300 ENT02 7013 324,272.00
106 12/31/2024 Special Asst Deferred 603-000-0000-12300 ENT03 7013 21,361.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-321-000-0000-12300 DSF01E 7013 268.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-323-000-0000-12300 DSF01G 7013 32,957.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-324-000-0000-12300 DSF01H 7013 28,780.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-326-000-0000-12300 DSF01I 7013 49,186.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-327-000-0000-12300 DSF01J 7013 37,309.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-329-000-0000-12300 DSF01K 7013 21,193.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-331-000-0000-12300 DSF01M 7013 85,668.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-332-000-0000-12300 DSF01N 7013 18,547.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-333-000-0000-12300 DSF01O 7013 50,030.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-334-000-0000-12300 DSF01P 7013 46,948.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-409-000-0000-12300 CPF05 7013 740.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-601-000-0000-12300 ENT01 7013 57,774.00
106 12/31/2024 Special Assmts Rec - Due within One Year SW-602-000-0000-12300 ENT02 7013 324,272.00
To break out special assessments Recurring
receivable due in 2025
107 12/31/2024 Contrib. of Capital Assets 601-000-0000-36231 ENT01 5512 31,086.00
107 12/31/2024 Miscellaneous 601-494-9400-44300 ENT01 5512 31,086.00
To reclass revenues to make the Recurring
Contributions from Developers tie out for the cash flows.
108 12/31/2024 Contracts Payable 437-000-0000-20500 CPF04 PBC 589,040.00
108 12/31/2024 Contract Services 437-480-8108-43150 CPF04 PBC 589,040.00
PBC - To remove "uncommitted"
journal entry that the client deleted.
109 12/31/2024 Office Supplies 101-410-1520-42000 GF01A 3.00
109 12/31/2024 Transfers Out 101-493-9360-47200 GF01A 3.00
109 12/31/2024 Transfer In 319-000-0000-39200 DSF01E 3.00
109 12/31/2024 Miscellaneous 319-000-0000-44300 DSF01E 3.00
To remove $3 transfer from Debt
Service Fund, so presentation in the transfers FN table is not necessary.
110 12/31/2024 Cash 101-000-0000-10100 GF01A 5000 LEAD 920,627.00
110 12/31/2024 Due from Other Funds 101-000-0000-13100 GF01A 5000 LEAD 920,627.00
110 12/31/2024 Cash 427-000-0000-10100 CPF15 5000 LEAD 48,389.00
110 12/31/2024 Due to Other Funds 427-000-0000-20700 CPF15 5000 LEAD 48,389.00
110 12/31/2024 Cash 430-000-0000-10100 CPF17 5000 LEAD 10,001.00
110 12/31/2024 Due to Other Funds 430-000-0000-20700 CPF17 5000 LEAD 10,001.00
110 12/31/2024 Cash 431-000-0000-10100 CPF18 5000 LEAD 272,305.00
110 12/31/2024 Due to Other Funds 431-000-0000-20700 CPF18 5000 LEAD 272,305.00
110 12/31/2024 Cash 433-000-0000-10100 CPF19 5000 LEAD 3,525.00
110 12/31/2024 Due to Other Funds 433-000-0000-20700 CPF19 5000 LEAD 3,525.00
110 12/31/2024 Cash 438-000-0000-10100 CPF22 5000 LEAD 14,113.00
110 12/31/2024 Due to other funds 438-000-0000-20700 CPF22 5000 LEAD 14,113.00
110 12/31/2024 Cash 440-000-0000-10100 CPF23 5000 LEAD 11,119.00
110 12/31/2024 Due to other funds 440-000-0000-20700 CPF23 5000 LEAD 11,119.00
110 12/31/2024 Cash 442-000-0000-10100 CPF25 5000 LEAD 44,361.00
110 12/31/2024 Due to Other Funds 442-000-0000-20700 CPF25 5000 LEAD 44,361.00
110 12/31/2024 Cash 444-000-0000-10100 CPF27 5000 LEAD 4,027.00
110 12/31/2024 Due to Other Funds 444-000-0000-20700 CPF27 5000 LEAD 4,027.00
110 12/31/2024 Cash 448-000-0000-10100 CPF31 5000 LEAD 451,629.00
110 12/31/2024 Due to Other Funds 448-000-0000-20700 CPF31 5000 LEAD 451,629.00
110 12/31/2024 Cash 449-000-0000-10100 CPF34 5000 LEAD 61,158.00
6/23/2025
11:18 AM Page 2
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
110 12/31/2024 Due to Other Funds 449-000-0000-20700 CPF34 5000 LEAD 61,158.00
To elminate negative cash balances Recurring
111 12/31/2024 Deferred Revenue-Other 101-000-0000-22220 GF01A 6500 LEAD 1,631,600.00
111 12/31/2024 Deferred Inflows- Leases 101-000-0000-22300 GF01A 6500 LEAD 1,631,600.00
To reclassify deferred infows for Recurring
leases into proper account.
112 12/31/2024 SBITA Liability 601-000-0000-22800 ENT01 6503 39,872.00
112 12/31/2024 SBITA Current 601-000-0000-22801 ENT01 6503 39,872.00
To reclass current and lt portion Recurring
of lease liability.
113 12/31/2024 Investments 101-000-0000-10400 GF01A 15,967.00
113 12/31/2024 Investments 101-000-0000-10400 GF01A 20,023.00
113 12/31/2024 Investments 101-000-0000-10400 GF01A 78,051.00
113 12/31/2024 Market Value Adjustment 101-000-0000-10401 GF01A 71.00
113 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 71.00
113 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 15,967.00
113 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 20,023.00
113 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 78,051.00
113 12/31/2024 Investments 207-000-0000-10400 SRF01 46.00
113 12/31/2024 Market Value Adjustment 207-000-0000-10401 SRF01
113 12/31/2024 Interest on Investments 207-000-0000-36210 SRF01
113 12/31/2024 Interest on Investments 207-000-0000-36210 SRF01 46.00
113 12/31/2024 Investments 221-000-0000-10400 SRF02 23.00
113 12/31/2024 Market Value Adjustment 221-000-0000-10401 SRF02
113 12/31/2024 Interest Income 221-000-0000-36210 SRF02
113 12/31/2024 Interest Income 221-000-0000-36210 SRF02 23.00
113 12/31/2024 Investments 252-000-0000-10400 SRF03 42.00
113 12/31/2024 Interest Earnings 252-000-0000-36210 SRF03 42.00
113 12/31/2024 Investments 318-000-0000-10400 DSF01C 239.00
113 12/31/2024 Market Value Adjustment 318-000-0000-10401 DSF01C 1.00
113 12/31/2024 Interest on Investments 318-000-0000-36210 DSF01C 1.00
113 12/31/2024 Interest on Investments 318-000-0000-36210 DSF01C 239.00
113 12/31/2024 Investments 323-000-0000-10400 DSF01G 1,476.00
113 12/31/2024 Market Value Adjustment 323-000-0000-10401 DSF01G 7.00
113 12/31/2024 Interest on Investments 323-000-0000-36210 DSF01G 7.00
113 12/31/2024 Interest on Investments 323-000-0000-36210 DSF01G 1,476.00
113 12/31/2024 Investments 326-000-0000-10400 DSF01I 943.00
113 12/31/2024 Market Value Adjustment 326-000-0000-10401 DSF01I 4.00
113 12/31/2024 Interest on Investments 326-000-0000-36210 DSF01I 4.00
113 12/31/2024 Interest on Investments 326-000-0000-36210 DSF01I 943.00
113 12/31/2024 Investments 329-000-0000-10400 DSF01K 1,147.00
113 12/31/2024 Market Value Adjustment 329-000-0000-10401 DSF01K 5.00
113 12/31/2024 Interest Income 329-000-0000-36210 DSF01K 5.00
113 12/31/2024 Interest Income 329-000-0000-36210 DSF01K 1,147.00
113 12/31/2024 Investments 331-000-0000-10400 DSF01M 2,310.00
113 12/31/2024 Market Value Adjustment 331-000-0000-10401 DSF01M 10.00
113 12/31/2024 Interest Income 331-000-0000-36210 DSF01M 10.00
113 12/31/2024 Interest Income 331-000-0000-36210 DSF01M 2,310.00
113 12/31/2024 Investments 332-000-0000-10400 DSF01N 146.00
113 12/31/2024 Market Value Adjustment 332-000-0000-10401 DSF01N 1.00
113 12/31/2024 Interest Income 332-000-0000-36210 DSF01N 1.00
113 12/31/2024 Interest Income 332-000-0000-36210 DSF01N 146.00
113 12/31/2024 Investments 333-000-0000-10400 DSF01O 793.00
113 12/31/2024 Market Value Adjustment 333-000-0000-10401 DSF01O 4.00
113 12/31/2024 Interest Income 333-000-0000-36210 DSF01O 4.00
113 12/31/2024 Interest Income 333-000-0000-36210 DSF01O 793.00
113 12/31/2024 Investments 334-000-0000-10400 DSF01P 231.00
113 12/31/2024 Investments 334-000-0000-10400 DSF01P 3,705.00
113 12/31/2024 Market Value Adjustment 334-000-0000-10401 DSF01P 1.00
113 12/31/2024 Market Value Adjustment 334-000-0000-10401 DSF01P 3,705.00
113 12/31/2024 Interest Income 334-000-0000-36210 DSF01P 1.00
113 12/31/2024 Interest Income 334-000-0000-36210 DSF01P 231.00
113 12/31/2024 Investments 404-000-0000-10400 CPF01 5,602.00
113 12/31/2024 Market Value Adjustment 404-000-0000-10401 CPF01 25.00
6/23/2025
11:18 AM Page 3
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
113 12/31/2024 Interest on Investments 404-000-0000-36210 CPF01 25.00
113 12/31/2024 Interest on Investments 404-000-0000-36210 CPF01 5,602.00
113 12/31/2024 Investments 408-000-0000-10400 CPF33 1,560.00
113 12/31/2024 Market Value Adjustment 408-000-0000-10401 CPF33
113 12/31/2024 Market Value Adjustment 408-000-0000-10401 CPF33 104.00
113 12/31/2024 Market Value Adjustment 408-000-0000-10401 CPF33 1,560.00
113 12/31/2024 Interest on Investments 408-000-0000-36210 CPF33
113 12/31/2024 Interest on Investments 408-000-0000-36210 CPF33 104.00
113 12/31/2024 Investments 409-000-0000-10400 CPF05 1,238.00
113 12/31/2024 Market Value Adjustment 409-000-0000-10401 CPF05 5.00
113 12/31/2024 Interest on Investments 409-000-0000-36210 CPF05 5.00
113 12/31/2024 Interest on Investments 409-000-0000-36210 CPF05 1,238.00
113 12/31/2024 Investments 410-000-0000-10400 CPF02 2,489.00
113 12/31/2024 Market Value Adjustment 410-000-0000-10401 CPF02 11.00
113 12/31/2024 Interest on Investments 410-000-0000-36210 CPF02 11.00
113 12/31/2024 Interest on Investments 410-000-0000-36210 CPF02 2,489.00
113 12/31/2024 Investments 411-000-0000-10400 CPF06 186.00
113 12/31/2024 Market Value Adjustment 411-000-0000-10401 CPF06 1.00
113 12/31/2024 Interest Earnings 411-000-0000-36210 CPF06 1.00
113 12/31/2024 Interest Earnings 411-000-0000-36210 CPF06 186.00
113 12/31/2024 Investment 423-000-0000-10400 CPF11 502.00
113 12/31/2024 Market Value Adjustment 423-000-0000-10401 CPF11 2.00
113 12/31/2024 Interest Income 423-000-0000-36210 CPF11 2.00
113 12/31/2024 Interest Income 423-000-0000-36210 CPF11 502.00
113 12/31/2024 Investments 430-000-0000-10400 CPF17 27.00
113 12/31/2024 Market Value Adjustment 430-000-0000-10401 CPF17
113 12/31/2024 Interest Earnings 430-000-0000-36210 CPF17
113 12/31/2024 Interest Earnings 430-000-0000-36210 CPF17 27.00
113 12/31/2024 Investments 434-000-0000-10400 CPF03 438.00
113 12/31/2024 Market Value Adjustment 434-000-0000-10401 CPF03 2.00
113 12/31/2024 Interest Earnings 434-000-0000-36210 CPF03 2.00
113 12/31/2024 Interest Earnings 434-000-0000-36210 CPF03 438.00
113 12/31/2024 Investments 435-000-0000-10400 CPF20 5.00
113 12/31/2024 Market Value Adjustment 435-000-0000-10401 CPF20
113 12/31/2024 Interest Earnings 435-000-0000-36210 CPF20
113 12/31/2024 Interest Earnings 435-000-0000-36210 CPF20 5.00
113 12/31/2024 Investments 436-000-0000-10400 CPF21 232.00
113 12/31/2024 Market Value Adjustment 436-000-0000-10401 CPF21 1.00
113 12/31/2024 Interest Earnings 436-000-0000-36210 CPF21 1.00
113 12/31/2024 Interest Earnings 436-000-0000-36210 CPF21 232.00
113 12/31/2024 Investments 437-000-0000-10400 CPF04 3,476.00
113 12/31/2024 Market Value Adjustment 437-000-0000-10401 CPF04 15.00
113 12/31/2024 Interest Earnings 437-000-0000-36210 CPF04 15.00
113 12/31/2024 Interest Earnings 437-000-0000-36210 CPF04 3,476.00
113 12/31/2024 Investments 441-000-0000-10400 CPF24 666.00
113 12/31/2024 Market Value Adjustment 441-000-0000-10401 CPF24 3.00
113 12/31/2024 Interest Earnings 441-000-0000-36210 CPF24 3.00
113 12/31/2024 Interest Earnings 441-000-0000-36210 CPF24 666.00
113 12/31/2024 Investments 442-000-0000-10400 CPF25 39.00
113 12/31/2024 Market Value Adjustment 442-000-0000-10401 CPF25
113 12/31/2024 Interest Earnings 442-000-0000-36210 CPF25
113 12/31/2024 Interest Earnings 442-000-0000-36210 CPF25 39.00
113 12/31/2024 Investments 443-000-0000-10400 CPF26 607.00
113 12/31/2024 Market Value Adjustment 443-000-0000-10401 CPF26 3.00
113 12/31/2024 Interest on Investment 443-000-0000-36210 CPF26 3.00
113 12/31/2024 Interest on Investment 443-000-0000-36210 CPF26 607.00
113 12/31/2024 Investments 445-000-0000-10400 CPF28 15.00
113 12/31/2024 Investments 445-000-0000-10400 CPF28 245.00
113 12/31/2024 Market Value Adjustment 445-000-0000-10401 CPF28
113 12/31/2024 Market Value Adjustment 445-000-0000-10401 CPF28 276.00
113 12/31/2024 Interest Rec on Investments 445-000-0000-10450 CPF28 31.00
113 12/31/2024 Interest on Investment 445-000-0000-36210 CPF28
113 12/31/2024 Interest on Investment 445-000-0000-36210 CPF28 15.00
113 12/31/2024 Investments 446-000-0000-10400 CPF29 19,125.00
113 12/31/2024 Market Value Adjustment 446-000-0000-10401 CPF29 6.00
113 12/31/2024 Market Value Adjustment 446-000-0000-10401 CPF29 1,269.00
113 12/31/2024 Market Value Adjustment 446-000-0000-10401 CPF29 21,664.00
113 12/31/2024 Interest Rec on Investments 446-000-0000-10450 CPF29 2,539.00
113 12/31/2024 Interest on Investment 446-000-0000-36210 CPF29 6.00
113 12/31/2024 Interest on Investment 446-000-0000-36210 CPF29 1,269.00
113 12/31/2024 Investments 601-000-0000-10400 ENT01 8,706.00
6/23/2025
11:18 AM Page 4
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
113 12/31/2024 Market Value Adjustment 601-000-0000-10401 ENT01 39.00
113 12/31/2024 Interest on Investments 601-000-0000-36210 ENT01 39.00
113 12/31/2024 Interest on Investments 601-000-0000-36210 ENT01 8,706.00
113 12/31/2024 Investments 602-000-0000-10400 ENT02 21,172.00
113 12/31/2024 Market Value Adjustment 602-000-0000-10401 ENT02 94.00
113 12/31/2024 Interest on Investments 602-000-0000-36210 ENT02 94.00
113 12/31/2024 Interest on Investments 602-000-0000-36210 ENT02 21,172.00
113 12/31/2024 Investments 603-000-0000-10400 ENT03 2,595.00
113 12/31/2024 Market Value Adjustment 603-000-0000-10401 ENT03 11.00
113 12/31/2024 Interest on Investment 603-000-0000-36210 ENT03 11.00
113 12/31/2024 Interest on Investment 603-000-0000-36210 ENT03 2,595.00
113 12/31/2024 Investments 803-000-0000-10400 GF01B 5,200.00
113 12/31/2024 Market Value Adjustment 803-000-0000-10401 GF01B 23.00
113 12/31/2024 Interest on Investments 803-000-0000-36210 GF01B 23.00
113 12/31/2024 Interest on Investments 803-000-0000-36210 GF01B 5,200.00
PBC - To adjust for changes in Recurring
investment schedule
114 12/31/2024 Compensated Absences - Current 601-000-0000-21601 ENT01 7,919.00
114 12/31/2024 Compensated Absences - Noncurr 601-000-0000-23900 ENT01 1,427.00
114 12/31/2024 Full-time Salaries 601-494-9400-41010 ENT01 7,919.00
114 12/31/2024 Full-time Salaries 601-494-9400-41010 ENT01 1,427.00
114 12/31/2024 Compensated Absences - Current 602-000-0000-21601 ENT02 3,125.00
114 12/31/2024 Compensated Absences - Noncurr 602-000-0000-23900 ENT02 895.00
114 12/31/2024 Full-time Salaries 602-495-9450-41010 ENT02 3,125.00
114 12/31/2024 Full-time Salaries 602-495-9450-41010 ENT02 895.00
114 12/31/2024 Compensated Absences - Current 603-000-0000-21601 ENT03 1,753.00
114 12/31/2024 Compensated Absences - Noncurr 603-000-0000-23900 ENT03 569.00
114 12/31/2024 Full-time Salaries 603-496-9500-41010 ENT03 1,753.00
114 12/31/2024 Full-time Salaries 603-496-9500-41010 ENT03 569.00
PBC - To adjust for change in
compensated absences per Nina's 5/14/25 schedule
115 12/31/2024 Due From Other Governments 101-000-0000-13200 GF01A 325.00
115 12/31/2024 Gravel Tax 101-000-0000-33620 GF01A 325.00
115 12/31/2024 Due From Other Governments 601-000-0000-13200 ENT01 235.00
115 12/31/2024 Miscellaneous State Grants 601-000-0000-33426 ENT01 761.00
115 12/31/2024 Miscellaneous Water Revenue 601-000-0000-36200 ENT01 526.00
PBC - To adjust for changes in Recurring
Journal Entry: 00009-13-2024 made by client after TB was sent over
116 12/31/2024 Cash 101-000-0000-10100 GF01A 125.00
116 12/31/2024 Investments 101-000-0000-10400 GF01A 20,024.00
116 12/31/2024 Investments 101-000-0000-10400 GF01A 78,051.00
116 12/31/2024 Investments 101-000-0000-10400 GF01A 11,889.00
116 12/31/2024 Investments 101-000-0000-10400 GF01A 125.00
116 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 20,024.00
116 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 78,051.00
116 12/31/2024 Interest Earnings 101-410-1320-36210 GF01A 11,889.00
116 12/31/2024 Investments 207-000-0000-10400 SRF01 34.00
116 12/31/2024 Interest on Investments 207-000-0000-36210 SRF01 34.00
116 12/31/2024 Investments 221-000-0000-10400 SRF02 17.00
116 12/31/2024 Interest Income 221-000-0000-36210 SRF02 17.00
116 12/31/2024 Investments 252-000-0000-10400 SRF03 31.00
116 12/31/2024 Interest Earnings 252-000-0000-36210 SRF03 31.00
116 12/31/2024 Investments 318-000-0000-10400 DSF01C 178.00
116 12/31/2024 Interest on Investments 318-000-0000-36210 DSF01C 178.00
116 12/31/2024 Investments 323-000-0000-10400 DSF01G 1,099.00
116 12/31/2024 Interest on Investments 323-000-0000-36210 DSF01G 1,099.00
116 12/31/2024 Investments 326-000-0000-10400 DSF01I 702.00
116 12/31/2024 Interest on Investments 326-000-0000-36210 DSF01I 702.00
116 12/31/2024 Investments 329-000-0000-10400 DSF01K 854.00
116 12/31/2024 Interest Income 329-000-0000-36210 DSF01K 854.00
116 12/31/2024 Investments 331-000-0000-10400 DSF01M 1,720.00
116 12/31/2024 Interest Income 331-000-0000-36210 DSF01M 1,720.00
116 12/31/2024 Investments 332-000-0000-10400 DSF01N 109.00
116 12/31/2024 Interest Income 332-000-0000-36210 DSF01N 109.00
116 12/31/2024 Investments 333-000-0000-10400 DSF01O 590.00
6/23/2025
11:18 AM Page 5
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
116 12/31/2024 Interest Income 333-000-0000-36210 DSF01O 590.00
116 12/31/2024 Investments 334-000-0000-10400 DSF01P 172.00
116 12/31/2024 Interest Income 334-000-0000-36210 DSF01P 172.00
116 12/31/2024 Investments 404-000-0000-10400 CPF01 4,172.00
116 12/31/2024 Interest on Investments 404-000-0000-36210 CPF01 4,172.00
116 12/31/2024 Investments 408-000-0000-10400 CPF33 77.00
116 12/31/2024 Interest on Investments 408-000-0000-36210 CPF33 77.00
116 12/31/2024 Investments 409-000-0000-10400 CPF05 922.00
116 12/31/2024 Interest on Investments 409-000-0000-36210 CPF05 922.00
116 12/31/2024 Investments 410-000-0000-10400 CPF02 1,853.00
116 12/31/2024 Interest on Investments 410-000-0000-36210 CPF02 1,853.00
116 12/31/2024 Investments 411-000-0000-10400 CPF06 138.00
116 12/31/2024 Interest Earnings 411-000-0000-36210 CPF06 138.00
116 12/31/2024 Investment 423-000-0000-10400 CPF11 374.00
116 12/31/2024 Interest Income 423-000-0000-36210 CPF11 374.00
116 12/31/2024 Investments 430-000-0000-10400 CPF17 20.00
116 12/31/2024 Interest Earnings 430-000-0000-36210 CPF17 20.00
116 12/31/2024 Investments 434-000-0000-10400 CPF03 326.00
116 12/31/2024 Interest Earnings 434-000-0000-36210 CPF03 326.00
116 12/31/2024 Investments 435-000-0000-10400 CPF20 4.00
116 12/31/2024 Interest Earnings 435-000-0000-36210 CPF20 4.00
116 12/31/2024 Investments 436-000-0000-10400 CPF21 172.00
116 12/31/2024 Interest Earnings 436-000-0000-36210 CPF21 172.00
116 12/31/2024 Investments 437-000-0000-10400 CPF04 2,589.00
116 12/31/2024 Interest Earnings 437-000-0000-36210 CPF04 2,589.00
116 12/31/2024 Investments 441-000-0000-10400 CPF24 496.00
116 12/31/2024 Interest Earnings 441-000-0000-36210 CPF24 496.00
116 12/31/2024 Investments 442-000-0000-10400 CPF25 29.00
116 12/31/2024 Interest Earnings 442-000-0000-36210 CPF25 29.00
116 12/31/2024 Investments 443-000-0000-10400 CPF26 452.00
116 12/31/2024 Interest on Investment 443-000-0000-36210 CPF26 452.00
116 12/31/2024 Investments 445-000-0000-10400 CPF28 11.00
116 12/31/2024 Interest on Investment 445-000-0000-36210 CPF28 11.00
116 12/31/2024 Investments 446-000-0000-10400 CPF29 945.00
116 12/31/2024 Interest on Investment 446-000-0000-36210 CPF29 945.00
116 12/31/2024 Investments 601-000-0000-10400 ENT01 6,483.00
116 12/31/2024 Interest on Investments 601-000-0000-36210 ENT01 6,483.00
116 12/31/2024 Investments 602-000-0000-10400 ENT02 15,765.00
116 12/31/2024 Interest on Investments 602-000-0000-36210 ENT02 15,765.00
116 12/31/2024 Investments 603-000-0000-10400 ENT03 1,932.00
116 12/31/2024 Interest on Investment 603-000-0000-36210 ENT03 1,932.00
116 12/31/2024 Investments 803-000-0000-10400 GF01B 3,872.00
116 12/31/2024 Interest on Investments 803-000-0000-36210 GF01B 3,872.00
PBC - to adjust interest Recurring
allocations among funds per Nina on 5/27/25
201 12/31/2024 Land SW-000-0000-16000 G34G 5512 3,453,979.00
201 12/31/2024 Machinery and Equipment SW-000-0000-16100 G34G 5512 10,503,903.00
201 12/31/2024 Accumulated Depr. - Machinery and Equipment SW-000-0000-16110 G34G 5512 3,579,939.00
201 12/31/2024 Buildings SW-000-0000-16200 G34G 5512 4,330,670.00
201 12/31/2024 Accumulated Depr. - Buildings SW-000-0000-16210 G34G 5512 1,516,365.00
201 12/31/2024 Other Improvements SW-000-0000-16300 G34G 5512 3,621,479.00
201 12/31/2024 Accumulated Depr. - Other Improvements SW-000-0000-16310 G34G 5512 1,529,444.00
201 12/31/2024 Infrastructure SW-000-0000-16400 G34G 5512 68,427,205.00
201 12/31/2024 Accumulated Depr. - Infrastructure SW-000-0000-16410 G34G 5512 14,673,039.00
201 12/31/2024 Construction in Progress SW-000-0000-16900 G34G 5512 18,614,757.00
201 12/31/2024 Fund Balance SW-000-0000-25300 G34G 5512 87,653,206.00
To record BOY government-wide Recurring
assets.
202 12/31/2024 Machinery and Equipment SW-000-0000-16100 G34G 5512 887,770.00
202 12/31/2024 Buildings SW-000-0000-16200 G34G 5512 14,813,929.00
202 12/31/2024 Other Improvements SW-000-0000-16300 G34G 5512 715,143.00
202 12/31/2024 Infrastructure SW-000-0000-16400 G34G 5512 20,660,884.00
202 12/31/2024 Construction in Progress SW-000-0000-16900 G34G 5512 21,106,582.00
202 12/31/2024 Contrib of Capital Assets SW-000-0000-36231 G34G 5512 14,841,351.00
202 12/31/2024 Capital Outlay - Public Safety (Fire)SW-000-0000-42200 G34G 5512 120,856.00
202 12/31/2024 Capital Outlay - Public Works SW-000-0000-43000 G34G 5512 766,913.00
202 12/31/2024 Capital Outlay - Culture and Recreation SW-000-0000-45000 G34G 5512 242,024.00
6/23/2025
11:18 AM Page 6
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
To record current year capital Recurring
asset additions and capitalized CIP
203 12/31/2024 Machinery and Equipment SW-000-0000-16100 G34G 5512 723,265.00
203 12/31/2024 Accumulated Depr. - Machinery and Equipment SW-000-0000-16110 G34G 5512 716,812.00
203 12/31/2024 Sale of Capital Assets SW-000-0000-39101 G34G 5512 5,000.00
203 12/31/2024 Sale of Capital Assets SW-000-0000-39101 G34G 5512 6,453.00
203 12/31/2024 Capital Outlay - Public Safety (Fire)SW-000-0000-42200 G34G 5512 5,000.00
To record current year capital Recurring
asset disposals, and gain on disposal of SCBA Fill Station.
204 12/31/2024 Compensated Absences - Current SW-000-0000-21601 G34G 1005 82,586.00
204 12/31/2024 Compensated Absences - Noncurrent SW-000-0000-23900 G34G 1005 27,529.00
204 12/31/2024 Fund Balance SW-000-0000-25300 G34G 1005 110,115.00
To record BOY GW compensated Recurring
absences balances.
205 12/31/2024 Compensated Absences - Current SW-000-0000-21601 G34G 6211 60,812.00
205 12/31/2024 Compensated Absences - Noncurrent SW-000-0000-23900 G34G 6211 20,270.00
205 12/31/2024 Comp Abs Expense -Admin SW-000-0000-41500 G34G 6211 6,889.00
205 12/31/2024 Comp Abs Expense -Admin SW-000-0000-41500 G34G 6211 9,271.00
205 12/31/2024 Comp Abs - Fire SW-000-0000-41940 G34G 6211 31,794.00
205 12/31/2024 Comp Abs - Finance SW-000-0000-42300 G34G 6211 5,241.00
205 12/31/2024 Comp Abs - P&Z SW-000-0000-42400 G34G 6211 5,431.00
205 12/31/2024 Comp Abs - Streets SW-000-0000-43100 G34G 6211 16,965.00
205 12/31/2024 Comp Abs - Parks SW-000-0000-45200 G34G 6211 5,491.00
To adjust GW compensated absenses Recurring
to client prepared schedule.
206 12/31/2024 Accumulated Depr. - Machinery and Equipment SW-000-0000-16110 G34G 5512 565,839.00
206 12/31/2024 Accumulated Depr. - Buildings SW-000-0000-16210 G34G 5512 90,166.00
206 12/31/2024 Accumulated Depr. - Other Improvements SW-000-0000-16310 G34G 5512 136,441.00
206 12/31/2024 Accumulated Depr. - Infrastructure SW-000-0000-16410 G34G 5512 3,369,040.00
206 12/31/2024 Depreciation Expense - General Government SW-000-0000-41100 G34G 5512 18,899.00
206 12/31/2024 Depreciation Expense - Public Safety SW-000-0000-42100 G34G 5512 205,720.00
206 12/31/2024 Depreciation Expense - Public Works SW-000-0000-43110 G34G 5512 3,785,497.00
206 12/31/2024 Dpreciation Expense - Culture and Recreation SW-000-0000-45100 G34G 5512 151,370.00
To record current year depreciation Recurring
207 12/31/2024 Construction in Progress SW-000-0000-16900 G34G 5515 5,350,199.00
207 12/31/2024 Capital Outlay - General Government SW-000-0000-41000 G34G 5515 47,060.00
207 12/31/2024 Capital Outlay - Public Safety (Fire)SW-000-0000-42200 G34G 5515 47,060.00
207 12/31/2024 Capital Outlay - Public Works SW-000-0000-43000 G34G 5515 5,256,079.00
To record current year CIP Recurring
additions
208 12/31/2024 Net Pension Asset - Fire SW-000-0000-17000 G34G 6354 GOV LEA 565,242.00
208 12/31/2024 Deferred Outflows - Pension SW-000-0000-19000 G34G 6354 GOV LEA 967,889.00
208 12/31/2024 Deferred Outflows - Fire SW-000-0000-19100 G34G 6354 GOV LEA 132,968.00
208 12/31/2024 Net Pension Liability - Pension SW-000-0000-23950 G34G 6354 GOV LEA 1,238,795.00
208 12/31/2024 Deferred Inflows - Pension SW-000-0000-23960 G34G 6354 GOV LEA 962,106.00
208 12/31/2024 Deferred Inflows - Fire SW-000-0000-23970 G34G 6354 GOV LEA 185,332.00
208 12/31/2024 Fund Balance SW-000-0000-25300 G34G 6354 GOV LEA 720,134.00
To record BOY GW pension balances.Recurring
209 12/31/2024 Deferred Outflows - Pension SW-000-0000-19000 G34G 6354A 112,006.00
209 12/31/2024 Net Pension Liability - Pension SW-000-0000-23950 G34G 6354A 18,724.00
209 12/31/2024 Deferred Inflows - Pension SW-000-0000-23960 G34G 6354A 147,674.00
209 12/31/2024 PERA Pension Revenue SW-000-0000-33422 G34G 6354A 44,774.00
209 12/31/2024 Pension Expense - General Govt SW-000-1320-44910 G34G 6354A 7,246.00
209 12/31/2024 Pension Expense - PEPFF SW-000-2100-44910 G34G 6354A 42,460.00
209 12/31/2024 Pension Expense - Public Safety SW-000-2400-44910 G34G 6354A 5,394.00
6/23/2025
11:18 AM Page 7
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
209 12/31/2024 Pension Expense - Public Works SW-000-3100-44910 G34G 6354A 5,145.00
209 12/31/2024 Pension Expense - Parks & Rec SW-000-5200-44910 G34G 6354A 1,473.00
To record current year pension Recurring
activity on the GW.
210 12/31/2024 Net Pension Asset - Fire SW-000-0000-17000 G34G 6354F 91,433.00
210 12/31/2024 Deferred Outflows - Fire SW-000-0000-19100 G34G 6354F 3,488.00
210 12/31/2024 Deferred Inflows - Fire SW-000-0000-23970 G34G 6354F 33,728.00
210 12/31/2024 State Fire Aid SW-000-0000-33420 G34G 6354F 26,871.00
210 12/31/2024 Pension Expense - Fire SW-000-0000-41945 G34G 6354F 148,544.00
To record FRA pension activitiy.Recurring
211 12/31/2024 OPEB Oligations SW-000-0000-21650 G34G 1005 65,774.00
211 12/31/2024 Fund Balance SW-000-0000-25300 G34G 1005 65,774.00
To record BOY OPEB pension Recurring
balances.
212 12/31/2024 OPEB Oligations SW-000-0000-21650 G34G 6355A 18,598.00
212 12/31/2024 OPEB Expense - Govt SW-000-0000-41415 G34G 6355A 18,598.00
To record current year OPEB Recurring
activity.
213 12/31/2024 Due from Other Funds - Contra SW-000-0000-13100 G34G 5910 FN 920,627.00
213 12/31/2024 Due to Other Funds - Contra SW-000-0000-20700 G34G 5910 FN 920,627.00
To eliminate GW interfund balances Recurring
and activity.
214 12/31/2024 Bonds Payable - Current SW-000-0000-22500 G34G 6001 2,705,000.00
214 12/31/2024 Bonds Payable - NonCurrent SW-000-0000-23100 G34G 6001 28,720,000.00
214 12/31/2024 Fund Balance SW-000-0000-25300 G34G 6001 31,425,000.00
To record BOY debt balances.Recurring
215 12/31/2024 Bonds Payable - NonCurrent SW-000-0000-23100 G34G 6001 2,705,000.00
215 12/31/2024 Bond Principal SW-000-0000-46010 G34G 6001 2,705,000.00
To record current year debt Recurring
activity.
216 12/31/2024 Unamortized Bond Premium SW-000-0000-23400 G34G 6002 1,321,965.00
216 12/31/2024 Unamortized Bond Premium SW-000-0000-23400 G34G 6002 137,458.00
216 12/31/2024 Fund Balance SW-000-0000-25300 G34G 6002 1,321,965.00
216 12/31/2024 Bond Premium Amortization SW-000-0000-46000 G34G 6002 137,458.00
To record BOY bond premium and the Recurring
amortization current year activity.
217 12/31/2024 GW Deferred Revenue (Contra) - Deferred SA SW-000-0000-22200 G34G 7010 GOV LEA 3,847,027.00
217 12/31/2024 GW Deferred Revenue (Contra) - Delinquent Tax SW-000-0000-22202 G34G 7010 GOV LEA 56,052.00
217 12/31/2024 Fund Balance SW-000-0000-25300 G34G 7010 GOV LEA 3,676,254.00
217 12/31/2024 Fund Balance SW-000-0000-25300 G34G 7010 GOV LEA 52,486.00
217 12/31/2024 GW Property Taxes SW-000-0000-31010 G34G 7010 GOV LEA 3,566.00
217 12/31/2024 GW Special Assessments SW-000-0000-36101 G34G 7010 GOV LEA 170,773.00
To eliminate deferrals on the GW Recurring
level.
218 12/31/2024 Accrued Interest Payable SW-000-0000-21800 G34G 6001 399,971.00
218 12/31/2024 Accrued Interest Payable SW-000-0000-21800 G34G 6001 29,015.00
218 12/31/2024 Fund Balance SW-000-0000-25300 G34G 6001 399,971.00
218 12/31/2024 Bond Interest SW-000-0000-46110 G34G 6001 29,015.00
To record BOY accrued interest and Recurring
to adjust for current year activity.
6/23/2025
11:18 AM Page 8
City of Lake Elmo
Year End: December 31, 2024
Journal Entries: Reclassifying
Date: 1/1/2024 To 12/31/2024
Number Date Name Account No Reference Annotation Debit Credit Recurrence Misstatement
219 12/31/2024 Bonds Payable - NonCurrent SW-000-0000-23100 G34G 6001 4,195,000.00
219 12/31/2024 Unamortized Bond Premium SW-000-0000-23400 G34G 6001 349,883.00
219 12/31/2024 Bond Proceeds SW-000-0000-39310 G34G 6001 4,195,000.00
219 12/31/2024 Premium on Bonds Sold SW-000-0000-39320 G34G 6001 349,883.00
To record current year bond Recurring
issuances.
220 12/31/2024 Machinery and Equipment SW-000-0000-16100 G34G 50,056.00
220 12/31/2024 Accumulated Depr. - Machinery and Equipment SW-000-0000-16110 G34G 50,056.00
220 12/31/2024 Other Improvements SW-000-0000-16300 G34G 50,056.00
220 12/31/2024 Accumulated Depr. - Other Improvements SW-000-0000-16310 G34G 50,056.00
To reclassify assets between asset Recurring
classes to tie to PY EOY balance.
210,694,609.00 210,694,609.00
6/23/2025
11:18 AM Page 9