HomeMy WebLinkAbout07-07-26 City Council Meeting PacketCity Council Meeting
Tuesday, July 7, 2026 7:00 p.m.
City of Lake Elmo | 3880 Laverne Avenue North
AGENDA
Call To Order/Pledge Of Allegiance
Approval Of Agenda
Presentations
Wash Co. Middle St Croix Valley To Phalen -Keller Regional Trail Long -Range Plan
Washington County Planner II Andrea Rehm presenting
COUNCIL MEMO - PHALEN KELLER TRAIL.PDF
PRESENTATION - WASHINGTON COUNTY MSTCV-PK RT LRP.PDF
Public Comments/Inquiries
Approval Of Minutes
06 -02 -26 CITY COUNCIL MEETING MINUTES.PDF
06 -16 -26 CITY COUNCIL MEETING MINUTES.PDF
Consent Agenda
Approve Payments And Disbursements
APPROVE PAYMENTS AND DISBURSEMENTS.PDF
Appoint 2026 Election Judges
STAFF REPORT - APPOINT ELECTION JUDGES.PDF
RESOLUTION APPOINTING ELECTION JUDGES.PDF
2026 ELECTION JUDGE LIST.PDF
Approve Full Time Firefighter Hire
STAFF REPORT FULL TIME FF HIRE -A LILLY.PDF
Accept Donation To The Fire Department From Dairy Queen
STAFF REPORT -DQ DONATION -7 -726 CONSENT.PDF
RESOLUTION 2026 -045 DQ DONATION.PDF
Approve Lake Elmo Elementary Development Agreement –First Amendment
Contract Planner Nathan Fuerst presenting
CC REPORT -LEE DA AMENDMENT 1.PDF
Approve Oak Land Middle School -Site Improvement Agreement First Amendment
Contract Planner Nathan Fuerst presenting
CC REPORT -OAK LAND SIA AMENDMENT 1.PDF
Approve Pay Request #1 For Test Well 6
STAFF REPORT -TEST WELL 6 PAY REQ 1.PDF
PAY REQUEST LETTER 1.PDF
Accept Bids And Award A Contract For The 2026 Seal Coat Project
COUNCIL MEMO -2026 SEAL COAT AWARD CONTRACT - CORRECTED.PDF
LETTER OF RECOMMENDATION -2026 SEAL COAT.PDF
LOCATION MAP -2026 SEAL COAT MAP.PDF
PROJECT SCHEDULE -2026 STREET MAINTENENCE PROJECT.PDF
Accept Quotes And Award A Contract For The 2026 Striping Project
COUNCIL MEMO -2026 STRIPING AWARD CONTRACT.PDF
PROPOSAL -SIR LINES A LOT QUOTE PROPOSAL.PDF
LOCATION MAP -2026 STRIPING.PDF
Approve Release Of Warranty Security For The Ebertz Addition (Drake Motor Partners,
LLC)
COUNCIL MEMO -EBERTZ NORTH - RELEASE WARRANTY SECURITY.PDF
REDUCTION WRKSHT -EBERTZ NORTH (DRAKE) SECURITY.PDF
Approve Cooperative Agreement Payment #1 For TH36 -Lake Elmo Avenue Improvements
STAFF REPORT - TH36 -CSAH17 PAY REQ 1.PDF
PR1 -INVOICE 236361 -COOPERATIVE AGREEMENT 18223.PDF
Regular Agenda
Presentation & Acceptance Of The 2025 Annual Comprehensive Financial Report
Ryan Schmidt, Partner, Schlenner Wenner presenting
1 - STAFF REPORT -2025 REPORT AND AUDIT.PDF
2025 AUDITED FINANCIAL STATEMENTS - LAKE ELMO.PDF
2025 REPORT TO THE MEMBERS OF GOVERNANCE - LAKE ELMO.PDF
2025 AUDIT PRESENTATION - LAKE ELMO.PDF
Purchasing Policy Revisions
Finance Director Clarissa Hadler presenting
STAFF REPORT - PURCHASING POLICY.PDF
CITY OF LAKE ELMO PURCHASING POLICY - REDLINED.PDF
CITY OF LAKE ELMO PURCHASING POLICY - FINAL.PDF
VENDOR TOTALS OVER 15K.PDF
INVOICES OVER 15K.PDF
Highpointe Crossing Final Plat
Contract Planner Nathan Fuerst presenting
CC REPORT - HIGHPOINTE CROSSING FINAL PLAT.PDF
Highpointe Crossing Development Agreement
Contract Planner Nathan Fuerst presenting
CC SR - HIGHPOINTE CROSSING DA.PDF
Mayor And Councilmember Salaries
Administrative Services Director Jennifer Doyle presenting
STAFF REPORT - COUNCIL PAY.PDF
ORDINANCE 2026 -08 SETTING SALARIES OF MAYOR AND
COUNCILMEMBERS.PDF
Engineering Services For South Water Treatment Plant
Senior Project Manager Jack Griffin presenting
STAFF REPORT - SOUTH WTP ENGINEERING SERVICES
DISCUSSION.PDF
Stormwater Utility Code Review
City Engineer Nate Stanley presenting
COUNCIL MEMO -STORMWATER UTILITY CODE REVIEW.PDF
FINANCE - PW - MEMO RE APPEALS PROGRAM.PDF
EXISTING CITY CODE STORMWATER MANAGEMENT UTILITY.PDF
LAKE ELMO - STORMWATER UTILITY RESEARCH AND
RECOMMENDATIONS - 06302026.PDF
STORMWATER UTILITY CODE REVIEW PRESENTATION.PDF
Council Reports
Staff Reports
Future Agenda Items
FUTURE AGENDA ITEMS.PDF
Adjourn
In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate
remotely via interactive technology.
Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership
with our Community
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City Council MeetingTuesday, July 7, 2026 7:00 p.m.City of Lake Elmo | 3880 Laverne Avenue NorthAGENDACall To Order/Pledge Of AllegianceApproval Of AgendaPresentationsWash Co. Middle St Croix Valley To Phalen -Keller Regional Trail Long -Range PlanWashington County Planner II Andrea Rehm presentingCOUNCIL MEMO - PHALEN KELLER TRAIL.PDFPRESENTATION - WASHINGTON COUNTY MSTCV-PK RT LRP.PDFPublic Comments/InquiriesApproval Of Minutes06-02 -26 CITY COUNCIL MEETING MINUTES.PDF06-16 -26 CITY COUNCIL MEETING MINUTES.PDFConsent AgendaApprove Payments And DisbursementsAPPROVE PAYMENTS AND DISBURSEMENTS.PDFAppoint 2026 Election Judges
STAFF REPORT - APPOINT ELECTION JUDGES.PDF
RESOLUTION APPOINTING ELECTION JUDGES.PDF
2026 ELECTION JUDGE LIST.PDF
Approve Full Time Firefighter Hire
STAFF REPORT FULL TIME FF HIRE -A LILLY.PDF
Accept Donation To The Fire Department From Dairy Queen
STAFF REPORT -DQ DONATION -7 -726 CONSENT.PDF
RESOLUTION 2026 -045 DQ DONATION.PDF
Approve Lake Elmo Elementary Development Agreement –First Amendment
Contract Planner Nathan Fuerst presenting
CC REPORT -LEE DA AMENDMENT 1.PDF
Approve Oak Land Middle School -Site Improvement Agreement First Amendment
Contract Planner Nathan Fuerst presenting
CC REPORT -OAK LAND SIA AMENDMENT 1.PDF
Approve Pay Request #1 For Test Well 6
STAFF REPORT -TEST WELL 6 PAY REQ 1.PDF
PAY REQUEST LETTER 1.PDF
Accept Bids And Award A Contract For The 2026 Seal Coat Project
COUNCIL MEMO -2026 SEAL COAT AWARD CONTRACT - CORRECTED.PDF
LETTER OF RECOMMENDATION -2026 SEAL COAT.PDF
LOCATION MAP -2026 SEAL COAT MAP.PDF
PROJECT SCHEDULE -2026 STREET MAINTENENCE PROJECT.PDF
Accept Quotes And Award A Contract For The 2026 Striping Project
COUNCIL MEMO -2026 STRIPING AWARD CONTRACT.PDF
PROPOSAL -SIR LINES A LOT QUOTE PROPOSAL.PDF
LOCATION MAP -2026 STRIPING.PDF
Approve Release Of Warranty Security For The Ebertz Addition (Drake Motor Partners,
LLC)
COUNCIL MEMO -EBERTZ NORTH - RELEASE WARRANTY SECURITY.PDF
REDUCTION WRKSHT -EBERTZ NORTH (DRAKE) SECURITY.PDF
Approve Cooperative Agreement Payment #1 For TH36 -Lake Elmo Avenue Improvements
STAFF REPORT - TH36 -CSAH17 PAY REQ 1.PDF
PR1 -INVOICE 236361 -COOPERATIVE AGREEMENT 18223.PDF
Regular Agenda
Presentation & Acceptance Of The 2025 Annual Comprehensive Financial Report
Ryan Schmidt, Partner, Schlenner Wenner presenting
1 - STAFF REPORT -2025 REPORT AND AUDIT.PDF
2025 AUDITED FINANCIAL STATEMENTS - LAKE ELMO.PDF
2025 REPORT TO THE MEMBERS OF GOVERNANCE - LAKE ELMO.PDF
2025 AUDIT PRESENTATION - LAKE ELMO.PDF
Purchasing Policy Revisions
Finance Director Clarissa Hadler presenting
STAFF REPORT - PURCHASING POLICY.PDF
CITY OF LAKE ELMO PURCHASING POLICY - REDLINED.PDF
CITY OF LAKE ELMO PURCHASING POLICY - FINAL.PDF
VENDOR TOTALS OVER 15K.PDF
INVOICES OVER 15K.PDF
Highpointe Crossing Final Plat
Contract Planner Nathan Fuerst presenting
CC REPORT - HIGHPOINTE CROSSING FINAL PLAT.PDF
Highpointe Crossing Development Agreement
Contract Planner Nathan Fuerst presenting
CC SR - HIGHPOINTE CROSSING DA.PDF
Mayor And Councilmember Salaries
Administrative Services Director Jennifer Doyle presenting
STAFF REPORT - COUNCIL PAY.PDF
ORDINANCE 2026 -08 SETTING SALARIES OF MAYOR AND
COUNCILMEMBERS.PDF
Engineering Services For South Water Treatment Plant
Senior Project Manager Jack Griffin presenting
STAFF REPORT - SOUTH WTP ENGINEERING SERVICES
DISCUSSION.PDF
Stormwater Utility Code Review
City Engineer Nate Stanley presenting
COUNCIL MEMO -STORMWATER UTILITY CODE REVIEW.PDF
FINANCE - PW - MEMO RE APPEALS PROGRAM.PDF
EXISTING CITY CODE STORMWATER MANAGEMENT UTILITY.PDF
LAKE ELMO - STORMWATER UTILITY RESEARCH AND
RECOMMENDATIONS - 06302026.PDF
STORMWATER UTILITY CODE REVIEW PRESENTATION.PDF
Council Reports
Staff Reports
Future Agenda Items
FUTURE AGENDA ITEMS.PDF
Adjourn
In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate
remotely via interactive technology.
Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership
with our Community
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City Council MeetingTuesday, July 7, 2026 7:00 p.m.City of Lake Elmo | 3880 Laverne Avenue NorthAGENDACall To Order/Pledge Of AllegianceApproval Of AgendaPresentationsWash Co. Middle St Croix Valley To Phalen -Keller Regional Trail Long -Range PlanWashington County Planner II Andrea Rehm presentingCOUNCIL MEMO - PHALEN KELLER TRAIL.PDFPRESENTATION - WASHINGTON COUNTY MSTCV-PK RT LRP.PDFPublic Comments/InquiriesApproval Of Minutes06-02 -26 CITY COUNCIL MEETING MINUTES.PDF06-16 -26 CITY COUNCIL MEETING MINUTES.PDFConsent AgendaApprove Payments And DisbursementsAPPROVE PAYMENTS AND DISBURSEMENTS.PDFAppoint 2026 Election JudgesSTAFF REPORT - APPOINT ELECTION JUDGES.PDFRESOLUTION APPOINTING ELECTION JUDGES.PDF2026 ELECTION JUDGE LIST.PDFApprove Full Time Firefighter HireSTAFF REPORT FULL TIME FF HIRE -A LILLY.PDFAccept Donation To The Fire Department From Dairy QueenSTAFF REPORT -DQ DONATION -7 -726 CONSENT.PDFRESOLUTION 2026 -045 DQ DONATION.PDFApprove Lake Elmo Elementary Development Agreement –First AmendmentContract Planner Nathan Fuerst presentingCC REPORT -LEE DA AMENDMENT 1.PDFApprove Oak Land Middle School -Site Improvement Agreement First AmendmentContract Planner Nathan Fuerst presentingCC REPORT -OAK LAND SIA AMENDMENT 1.PDFApprove Pay Request #1 For Test Well 6STAFF REPORT -TEST WELL 6 PAY REQ 1.PDFPAY REQUEST LETTER 1.PDFAccept Bids And Award A Contract For The 2026 Seal Coat ProjectCOUNCIL MEMO -2026 SEAL COAT AWARD CONTRACT - CORRECTED.PDFLETTER OF RECOMMENDATION -2026 SEAL COAT.PDFLOCATION MAP -2026 SEAL COAT MAP.PDFPROJECT SCHEDULE -2026 STREET MAINTENENCE PROJECT.PDFAccept Quotes And Award A Contract For The 2026 Striping ProjectCOUNCIL MEMO -2026 STRIPING AWARD CONTRACT.PDF
PROPOSAL -SIR LINES A LOT QUOTE PROPOSAL.PDF
LOCATION MAP -2026 STRIPING.PDF
Approve Release Of Warranty Security For The Ebertz Addition (Drake Motor Partners,
LLC)
COUNCIL MEMO -EBERTZ NORTH - RELEASE WARRANTY SECURITY.PDF
REDUCTION WRKSHT -EBERTZ NORTH (DRAKE) SECURITY.PDF
Approve Cooperative Agreement Payment #1 For TH36 -Lake Elmo Avenue Improvements
STAFF REPORT - TH36 -CSAH17 PAY REQ 1.PDF
PR1 -INVOICE 236361 -COOPERATIVE AGREEMENT 18223.PDF
Regular Agenda
Presentation & Acceptance Of The 2025 Annual Comprehensive Financial Report
Ryan Schmidt, Partner, Schlenner Wenner presenting
1 - STAFF REPORT -2025 REPORT AND AUDIT.PDF
2025 AUDITED FINANCIAL STATEMENTS - LAKE ELMO.PDF
2025 REPORT TO THE MEMBERS OF GOVERNANCE - LAKE ELMO.PDF
2025 AUDIT PRESENTATION - LAKE ELMO.PDF
Purchasing Policy Revisions
Finance Director Clarissa Hadler presenting
STAFF REPORT - PURCHASING POLICY.PDF
CITY OF LAKE ELMO PURCHASING POLICY - REDLINED.PDF
CITY OF LAKE ELMO PURCHASING POLICY - FINAL.PDF
VENDOR TOTALS OVER 15K.PDF
INVOICES OVER 15K.PDF
Highpointe Crossing Final Plat
Contract Planner Nathan Fuerst presenting
CC REPORT - HIGHPOINTE CROSSING FINAL PLAT.PDF
Highpointe Crossing Development Agreement
Contract Planner Nathan Fuerst presenting
CC SR - HIGHPOINTE CROSSING DA.PDF
Mayor And Councilmember Salaries
Administrative Services Director Jennifer Doyle presenting
STAFF REPORT - COUNCIL PAY.PDF
ORDINANCE 2026 -08 SETTING SALARIES OF MAYOR AND
COUNCILMEMBERS.PDF
Engineering Services For South Water Treatment Plant
Senior Project Manager Jack Griffin presenting
STAFF REPORT - SOUTH WTP ENGINEERING SERVICES
DISCUSSION.PDF
Stormwater Utility Code Review
City Engineer Nate Stanley presenting
COUNCIL MEMO -STORMWATER UTILITY CODE REVIEW.PDF
FINANCE - PW - MEMO RE APPEALS PROGRAM.PDF
EXISTING CITY CODE STORMWATER MANAGEMENT UTILITY.PDF
LAKE ELMO - STORMWATER UTILITY RESEARCH AND
RECOMMENDATIONS - 06302026.PDF
STORMWATER UTILITY CODE REVIEW PRESENTATION.PDF
Council Reports
Staff Reports
Future Agenda Items
FUTURE AGENDA ITEMS.PDF
Adjourn
In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate
remotely via interactive technology.
Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership
with our Community
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City Council MeetingTuesday, July 7, 2026 7:00 p.m.City of Lake Elmo | 3880 Laverne Avenue NorthAGENDACall To Order/Pledge Of AllegianceApproval Of AgendaPresentationsWash Co. Middle St Croix Valley To Phalen -Keller Regional Trail Long -Range PlanWashington County Planner II Andrea Rehm presentingCOUNCIL MEMO - PHALEN KELLER TRAIL.PDFPRESENTATION - WASHINGTON COUNTY MSTCV-PK RT LRP.PDFPublic Comments/InquiriesApproval Of Minutes06-02 -26 CITY COUNCIL MEETING MINUTES.PDF06-16 -26 CITY COUNCIL MEETING MINUTES.PDFConsent AgendaApprove Payments And DisbursementsAPPROVE PAYMENTS AND DISBURSEMENTS.PDFAppoint 2026 Election JudgesSTAFF REPORT - APPOINT ELECTION JUDGES.PDFRESOLUTION APPOINTING ELECTION JUDGES.PDF2026 ELECTION JUDGE LIST.PDFApprove Full Time Firefighter HireSTAFF REPORT FULL TIME FF HIRE -A LILLY.PDFAccept Donation To The Fire Department From Dairy QueenSTAFF REPORT -DQ DONATION -7 -726 CONSENT.PDFRESOLUTION 2026 -045 DQ DONATION.PDFApprove Lake Elmo Elementary Development Agreement –First AmendmentContract Planner Nathan Fuerst presentingCC REPORT -LEE DA AMENDMENT 1.PDFApprove Oak Land Middle School -Site Improvement Agreement First AmendmentContract Planner Nathan Fuerst presentingCC REPORT -OAK LAND SIA AMENDMENT 1.PDFApprove Pay Request #1 For Test Well 6STAFF REPORT -TEST WELL 6 PAY REQ 1.PDFPAY REQUEST LETTER 1.PDFAccept Bids And Award A Contract For The 2026 Seal Coat ProjectCOUNCIL MEMO -2026 SEAL COAT AWARD CONTRACT - CORRECTED.PDFLETTER OF RECOMMENDATION -2026 SEAL COAT.PDFLOCATION MAP -2026 SEAL COAT MAP.PDFPROJECT SCHEDULE -2026 STREET MAINTENENCE PROJECT.PDFAccept Quotes And Award A Contract For The 2026 Striping ProjectCOUNCIL MEMO -2026 STRIPING AWARD CONTRACT.PDFPROPOSAL-SIR LINES A LOT QUOTE PROPOSAL.PDFLOCATION MAP -2026 STRIPING.PDFApprove Release Of Warranty Security For The Ebertz Addition (Drake Motor Partners, LLC)COUNCIL MEMO -EBERTZ NORTH - RELEASE WARRANTY SECURITY.PDFREDUCTION WRKSHT -EBERTZ NORTH (DRAKE) SECURITY.PDFApprove Cooperative Agreement Payment #1 For TH36 -Lake Elmo Avenue ImprovementsSTAFF REPORT - TH36 -CSAH17 PAY REQ 1.PDFPR1 -INVOICE 236361 -COOPERATIVE AGREEMENT 18223.PDFRegular AgendaPresentation & Acceptance Of The 2025 Annual Comprehensive Financial ReportRyan Schmidt, Partner, Schlenner Wenner presenting1 - STAFF REPORT -2025 REPORT AND AUDIT.PDF2025 AUDITED FINANCIAL STATEMENTS - LAKE ELMO.PDF2025 REPORT TO THE MEMBERS OF GOVERNANCE - LAKE ELMO.PDF2025 AUDIT PRESENTATION - LAKE ELMO.PDFPurchasing Policy RevisionsFinance Director Clarissa Hadler presentingSTAFF REPORT - PURCHASING POLICY.PDFCITY OF LAKE ELMO PURCHASING POLICY - REDLINED.PDFCITY OF LAKE ELMO PURCHASING POLICY - FINAL.PDFVENDOR TOTALS OVER 15K.PDFINVOICES OVER 15K.PDFHighpointe Crossing Final PlatContract Planner Nathan Fuerst presentingCC REPORT - HIGHPOINTE CROSSING FINAL PLAT.PDFHighpointe Crossing Development AgreementContract Planner Nathan Fuerst presenting
CC SR - HIGHPOINTE CROSSING DA.PDF
Mayor And Councilmember Salaries
Administrative Services Director Jennifer Doyle presenting
STAFF REPORT - COUNCIL PAY.PDF
ORDINANCE 2026 -08 SETTING SALARIES OF MAYOR AND
COUNCILMEMBERS.PDF
Engineering Services For South Water Treatment Plant
Senior Project Manager Jack Griffin presenting
STAFF REPORT - SOUTH WTP ENGINEERING SERVICES
DISCUSSION.PDF
Stormwater Utility Code Review
City Engineer Nate Stanley presenting
COUNCIL MEMO -STORMWATER UTILITY CODE REVIEW.PDF
FINANCE - PW - MEMO RE APPEALS PROGRAM.PDF
EXISTING CITY CODE STORMWATER MANAGEMENT UTILITY.PDF
LAKE ELMO - STORMWATER UTILITY RESEARCH AND
RECOMMENDATIONS - 06302026.PDF
STORMWATER UTILITY CODE REVIEW PRESENTATION.PDF
Council Reports
Staff Reports
Future Agenda Items
FUTURE AGENDA ITEMS.PDF
Adjourn
In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate
remotely via interactive technology.
Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership
with our Community
A.B.C.1.Documents:D.E.Documents:F.1.Documents:2.Documents:3.Documents:4.Documents:5.Documents:6.Documents:7.Documents:8.Documents:9.Documents:10.Documents:11.Documents:G.1.Documents:2.Documents:3.Documents:4.
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STAFF REPORT
DATE: July 7th 2026
Discussion
TO: Mayor and Councilmembers
FROM: Adam Swnanepoel – Assistant Public Works Director
AGENDA ITEM: Phalen-Keller Regional Trail Long-Range Plan
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance☒
☐ Managed Growth
☐ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
Over the past three years, Washington County has provided the Parks Commission with regular updates on the
development of the county’s regional trail system. The Phalen-Keller Trail is a key component of this network,
serving as an important connection between the city, neighboring communities, and the regional park system.
Once fully developed, the Phalen-Keller Trail will function as a central arterial route within Washington County’s
regional trail network, linking multiple communities and providing an additional option for both recreation and
transportation. It will also connect to the Central Greenway Regional Trail, giving residents direct access to three
premier regional park facilities: Big Marine Park Reserve, Lake Elmo Park Reserve, and Cottage Grove Ravine
Regional Park. In addition, the trail will provide a safe, separated off-road corridor that integrates with local trail
systems and other recreational amenities, enhancing regional connectivity and accessibility.
ISSUE BEFORE COUNCIL:
Are there any questions for the County Planner regarding the future trail?
PROPOSAL DETAILS/ANALYSIS:
The development of the Phalen-Keller Regional Trail through the City of Lake Elmo will be a significant asset for
both the local community and trail users throughout Washington County. As a key segment of the regional trail
network, the trail will enhance connectivity between neighborhoods, parks, and surrounding communities while
providing residents and visitors with safe, accessible opportunities for recreation and active transportation.
Previous community engagement done by the city has consistently demonstrated the importance of trails to
Lake Elmo residents. Survey results indicate that 45% of current trail users utilize the city's trail system for
walking and biking, highlighting the value of multi-use trails in supporting healthy, active lifestyles. In addition,
biking ranked as respondents' second most preferred trail activity, with 41% identifying it as a primary use. The
growing demand for high-quality trail infrastructure which accommodates a variety of users, including
pedestrians, cyclists, runners, and families.
The completion of the Greenway trail will help meet this demand by expanding recreational opportunities,
improving regional connectivity, and providing a safe, separated corridor for non-motorized travel. Beyond its
recreational benefits, the trail will encourage active transportation, improve access to parks and other
community destinations, and contribute to the overall quality of life for residents while supporting Washington
County's long-term vision for a connected regional trail system.
FISCAL IMPACT:
The city will need to consider funding for this project. Currently the Parks CIP has allotted $520,00 in to help
support the trail. Current cost or the city’s share of the project is unknow at this time.
ATTACHMENTS:
-Phalen Keller county trail presentation
Middle St Croix Valley to Phalen-Keller
Regional Trail Long-Range Plan
Lake Elmo City Council –July 7, 2026
2
Agenda
•Project Overview
•Community Engagement
•Next Steps
3
Project Overview
4
Regional Trail Long-Range Plans
Regional Trails
•“Tree trunks” or "highways" of system
•Standard: 10 ft wide paved trail, with
10 ft buffer
•Quality signage and amenities
Long-Range Plans
•Guidance on future alignment,
development, management
•Eligible for funding
•Engagement with partners and public
5
Regional Trail Project Timeline
Community
Vision
Long-Range
Plan
•Develop high-
level concept
•Identify areas
for additional
study
Feasibility
Study /
Preliminary
Design
•Reengage
stakeholders
•Work through
challenges,
refine designs
and costs
Final Design
•Finalize
design
•Formalize
funding and
agreements
Construction
• Construction
coordination,
likely in phases Open to
Public
Stakeholder Engagement
6
Corridor Background
•~9 mile east-west
arterial trail
•West terminus: County
line
•East terminus: CSAH 21
(Middle St Croix Valley
Regional Trail)
•Link between 8
communities
•Build on existing plans &
studies, including Central
Greenway Regional Trail
7
Engagement Structure
KEY STAKEHOLDERS
PROJECT LEADERSHIP
PMT
Planning
Parks
Engineering
Consultant
TAC
GENERAL
PUBLIC
Pop-up Tables
City & Town
Meetings
Open Houses
County Staff
State/Fed Agencies
City/Townships
Parks Commission
8
Long-Range Plan Timeline
Winter – Spring
2026
•Visioning &
Site Analysis
Summer – Fall
•Engagement
& Data
Collection
Fall - Winter
•Route
Development &
Plan Drafting
Spring –
Summer 2027
•Final Draft &
Approval
Process
9
Community Engagement
Community Engagement
•Open House #1 (June 24, 2026)
•Online Survey
•Pop -ups in Lake Elmo
•National Night Out
•Bluegrass Festival
•Others?
•Agency staff engagement
•Commission and Council engagement
11
Next Steps
12
Next Steps
•Continued public and agency engagement
•Route alternative development and
evaluation
Andrea Rehm
Planner II
651-430-4332
andrea.rehm@washingtoncountymn.gov
Page 1 | 5
CITY OF LAKE ELMO
CITY COUNCIL MINUTES
June 2, 2026
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Mayor Cadenhead called the meeting to order at 7:00 pm.
PRESENT: Mayor Charles Cadenhead and Councilmembers Nick Dragisich, Matt Hirn, Jeff Holtz,
and Nick Kragness.
Staff present: Administrator Miller, City Attorney Sonsalla, City Engineer Stanley, Public Works
Director Tholen, Community Development Director Stopa, Senior Planner Jensen, Contract
Planner Fuerst and Planning Assistant Moulis.
APPROVAL OF AGENDA
Councilmember Holtz, seconded by Councilmember, Kragness moved TO APPROVE THE
AGENDA AS PRESENTED. Motion passed 5 – 0.
ACCEPT MINUTES
Councilmember Hirn, seconded by Councilmember Dragisich, moved TO ACCEPT THE MINUTES
OF THE MAY 19, 2026 CITY COUNCIL MEETING AS PRESENTED. Motion passed 5 – 0.
CONSENT AGENDA
1. Approve Payment of Disbursements
2. Approve Hire of New Public Works Operator III
3. Approve Hire of Fire Captain Hathaway
4. Approve Hire of Fire Captain Priester
5. Approve Hire of Fire Captain Wagner
6. Approve Community Development Intern Posting
7. Approve Public Works Lawn Mower Purchase
8. Approve Security Reduction for Lake Elmo Townhomes 8 (At Home Apartments)
9. Approve 2025 State Performance Measures Data
Councilmember Holtz, seconded by Councilmember Kragness, moved TO APPROVE THE
CONSENT AGENDA AS PRESENTED. Motion passed 5 - 0.
Page 2 | 5
REGULAR AGENDA
ITEM 1: Old Village Garden Improvements Phase 2
Public Works Director Tholen and Patrick O’Keefe, HKGi, presented a project overview of phase
two which included tree planting. Director Tholen reviewed the tree species chosen for
planting and the budgeted cost. Discussion was held regarding phase 1 improvements and
replacement of damaged tulip bulbs. Councilmember Hirn stated that he was not in favor of
spending additional funds on the project.
Councilmember Kragness, seconded by Councilmember Holtz, moved TO APPROVE THE 2026
HKGI PROPOSAL FOR COORDINATION, CONSTRUCTION DRAWINGS, CONTRACTOR
SELECTION, BIDDING AND CONSTRUCTION ADMINISTRATION FOR THE IMPLEMENTATION OF
NEW AND REPLACEMENT TREES ALONG LAKE ELMO AVE. NOT TO EXCEED $16,470 IN 2026.
Motion passed 4 – 1 (Hirn – nay).
ITEM 2: Lions Park Master Plan
Assistant Public Works Director Swanepoel presented a draft scope and RFQ to seek a
consultant for preparation of a master plan for Lions Park future improvements.
Councilmember Hirn expressed concern regarding public perception of the timing of
implementation of recommendations in the plan, noting that improvements could be delayed
due to development of the 76 acre park site. Councilmember Holtz agreed that the timing of
planning for Lions Park is premature. Mayor Cadenhead offered a friendly amendment to the
motion to delay the Lions Park Master Plan until a plan for the 76 acre parcel is complete.
Councilmember Dragisich, seconded by Councilmember Kragness, moved approve the outlined
scope and RFQ and seek a consultant for the Lions Park Master Plan upon the completion of
the 76 acre parcel proposal. Motion passed 5 – 0.
ITEM 3: Water Transfer Station Repairs
Assistant Public Works Director Swanepoel reviewed the need for repairs to the water transfer
station due to pump failure.
Councilmember Dragisich, seconded by Councilmember HIrn, moved to approve making the
necessary repairs to the booster station pump not to exceed $30,000. Motion passed 5 – 0.
Page 3 | 5
ITEM 4: 9960 57th St – Front Yard Setbacks Variance
Planning Assistant Moulis presented the request for construction of an accessory building,
noting site constraints that limit location of the building. Findings of fact, conditions of
approval and recommendations for approval were reviewed.
Councilmember Holtz, seconded by Councilmember Dragisich, moved to approve Resolution
2026-040, approving the variance request to reduce accessory structure front yard setback
requirement to 98.7 feet in the Residential Estate Zoning district for the property located at
9960 57th St N with the conditions of approval and findings of fact listed in the staff report.
Motion passed 5 – 0.
ITEM 5: Lake Elmo Medical Center Conditional Use Permit & Variance – 8650 Hudson Blvd. N.
Planning Assistant Moulis presented the request for a CUP and variance to allow an addition to
the existing 65,000 square foot building for a total of about 114,100 square feet of medical
facility and office space and expansion of the parking lot. Findings of fact, conditions of
approval and recommendations for approval were reviewed.
Councilmember Holtz, seconded by Councilmember Dragisich, moved to approve Resolution
2026-037, approving a conditional use permit for a medical facility at the property located at
8650 Hudson Blvd N based on the findings of fact and subject to the conditions listed in the
staff report. Motion passed 5 – 0.
Councilmember Holtz, seconded by Councilmember Dragisich, moved to approve Resolution
2026-038, approving a variance request to reduce the West side yard setback to 27 feet at the
property located at 8650 Hudson Blvd N based on the findings of fact and subject to the
conditions listed in the staff report. Motion passed 5 – 0.
ITEM 6: Authorize Preliminary Design, Geotechnical Services and Feasibility Report for the
2027 Street and Utility Improvements
City Engineer Stanley reviewed the proposed project area, current conditions, scope of
improvements, proposed project schedule and anticipated costs.
Councilmember Hirn, seconded by Councilmember Kragness, moved to approve Resolution
No. 2026-036, ordering preparation of Preliminary Design and Feasibility Report for the 2027
Street and Utility Improvements. Motion passed 5 – 0.
Page 4 | 5
Councilmember Dragisich, seconded by Councilmember Holtz, moved to authorize the City
Administrator the authority to sign a geotechnical services agreement in an amount not to-
exceed $25,000. Motion passed 5 – 0.
ITEM 7: OP-LRD Update
Contract Planner Fuerst provided an update on the development of a new zoning district that
would enable new rural development types, create publicly accessible open space and work
around community septic issues. Planner Fuerst asked Council for their feedback on the
project. Residential density, access to sewer and open space were discussed. Council
expressed interest in continuing to develop the new zoning district.
ITEM 8: Sketch Plan Review – Summergate Assemblage
Contract Planner Fuerst presented a sketch plan from Summergate Development for the
development of 117 acres accessible from Highway 10, east of Keats Avenue. Planner Fuerst
noted than an environmental assessment would be required due to the number units proposed
and outlined issues associated with developing the area before the 2040 comp plan update.
Brian Tucker, Summergate Development, stated that they are planning starting the project in
2028 and commented on market conditions related to lot size. Casey Wollschlager,
Summergate Development, commented on timing for the project.
Discussion was held regarding infrastructure and the comp plan process.
COUNCIL REPORTS
Mayor Cadenhead: Reported on feedback received on the downtown plantings.
Councilmember Holtz: Thanked the Chamber of Commerce for holding a ribbon cutting at Lions
Park for the new playground.
STAFF REPORTS AND ANNOUNCEMENTS
City Administrator Miller: Reported on street light banners for downtown and asked for input
on the process for selecting the banner design.
Fire Chief Kalis: Noted fundraiser to be held at Dairy Queen to benefit the Fire Department.
Page 5 | 5
Councilmember Holtz, seconded by Councilmember Hirn, moved to enter closed session
pursuant to MN Stat. Section 13.05D, subdivision 3 (a) for the purposes of the City
Administrator performance review. Motion passed 5 – 0.
Meeting adjourned at 8:55 p.m.
LAKE ELMO CITY COUNCIL
ATTEST:
______________________________
Charles Cadenhead, Mayor
_______________________________
Julie Johnson, City Clerk
Page 1 | 3
CITY OF LAKE ELMO
CITY COUNCIL MINUTES
JUNE 16, 2026
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Mayor Cadenhead called the meeting to order at 7:00 pm.
PRESENT: Mayor Charles Cadenhead and Councilmembers Nick Dragisich, Jeff Holtz, and Nick
Kragness. ABSENT: Councilmember Matt Hirn.
Staff present: Administrator Miller, City Attorney Sonsalla, City Engineer Stanley, Senior Planner
Jensen, Contract Planner Fuerst and Senior Project Manager Griffin.
APPROVAL OF AGENDA
Councilmember Holtz, seconded by Councilmember Kragness, moved TO APPROVE THE
AGENDA AS PRESENTED. Motion passed 4 – 0.
PUBLIC COMMENTS / INQUIRIES
Connect Lake Elmo member Tara Cadenhead and intern Kaleigh Ligday provided an update on
the 4th of July Parade event and upcoming plans for the city’s celebration of the 250th
anniversary of the United States. Businesses were also thanked for their continued support.
ACCEPT MINUTES
Councilmember Holtz, seconded by Councilmember Dragisich, moved TO ACCEPT THE
MINUTES OF THE MAY 5, 2026 CITY COUNCIL MEETING AS PRESENTED. Motion passed 4 – 0.
CONSENT AGENDA
1. Approved Payment of Disbursements
2. Approve Metropolitan Council Water Efficiency Grant Agreement
3. Approve Massage Therapy License Renewal
4. Approve Northport 1st, 2nd, and 3rd Addition Landscape Security Release
5. Accept Bids and Award Contract for Elmo's Pup Park Parking Lot Improvements
6. Approve Lake Elmo Baseball Special Event Permit and Temporary Liquor License
7. Approve Chama Mission, LLC-License Agreement for Entering Lions Park
8. Approve Pay Request 1 for the 2026 Street and Utility Improvements
9. Accept Quotes and Award a Contract for the 2026 Crack Seal Project
10. Approve the Local Road Improvement Program Grant Agreement Terms and Conditions
for the Trunk Highway (TH) 36 and Lake Elmo Avenue (CSAH 17) Improvements
Page 2 | 3
Councilmember Kragness, seconded by Councilmember Dragisich, moved TO APPROVE THE
CONSENT AGENDA AS PRESENTED. Motion passed 4 - 0.
REGULAR AGENDA
ITEM 1: Inwood Commercial Preliminary Plat
Senior Planner Jensen presented the request for preliminary plat approval for a commercial
development on approximately 17 acres that would be divided into individual lots for future
development. Discussion was held regarding neighbors’ concerns regarding screening.
Councilmember Kragness, seconded by Councilmember Holtz, moved TO ADOPT RESOLUTION
2026- 041 APPROVING THE PRELIMINARY PLAT REQUESTED BY VADNAIS ASSOCIATES ON THE
SUBJECT PROPERTY BASED ON THE FINDINGS OF FACT AND RECOMMENDED CONDITIONS OF
APPROVAL LISTED IN THE STAFF REPORT. Motion passed 4 – 0.
ITEM 2: Sketch Plan Review – Bridgewater Village Townhomes
Contract Planner Fuerst presented a request from Pulte Homes for review of a concept plan for
a PUD consisting of 82 attached townhomes on approximately 16 acres. Planner Fuerst
reviewed the flexibilities requested, performance standards, utilities, roads, access and park
dedication. Discussion was held regarding allowing one hundred percent attached townhomes
versus the current maximum of twenty five percent. Discussion was also held regarding the
exterior design elements of the buildings.
ITEM 3: 2040 Comprehensive Plan Update for Community Forecasts
Contract Planner Fuerst reviewed the background of the 2040 Comprehensive Plan update and
discussed proposed amendments.
Councilmember Holtz, seconded by Councilmember Dragisich, moved TO ADOPT RESOLUTION
2026-043 APPROVING THE AMENDMENTS PROPOSED TO THE FORECASTS FOUND IN THE
LAKE ELMO 2040 COMPREHENSIVE PLAN WITH THE FINDINGS AND CONDITIONS THEREIN.
Motion passed 4 – 0.
ITEM 4: Approve the Revised Crosswalk Policy and 2026 Crosswalk Improvements
Page 3 | 3
Municipal Sr. Project Manager Jack Griffin provided a brief review of the resident request for
crosswalk improvements and noted the three intersections identified for improvement
recommendations, including 5th Street and Ivywood Avenue, 5th Street and Julia Avenue, and
at Village Parkway and Lower 31st Street. Chris Brown, SRF, reviewed preliminary layouts
including recommendations for signage, pavement markings and pedestrian ramp
improvements for ADA compliance. Enhanced treatments such as raised median extensions,
curb extensions, turn lane elimination, and RRFBs were also discussed.
Councilmember Holtz, seconded by Councilmember Kragness, moved TO APPROVE THE LAKE
ELMO CROSSWALK POLICY -REVISED JUNE 2026. Motion passed 4 – 0.
Councilmember Holtz, seconded by Councilmember Kragness, moved TO AUTHORIZE DESIGN
AND CONSTRUCTION PHASE ENGINEERING SERVICES FOR THE 2026 CROSSWALK
IMPROVEMENTS, INCLUDING OPTION 1 FOR VILLAGE PARKWAY AND LOWER 31ST STREET, IN
THE ESTIMATED AMOUNT OF $18,000. Motion passed 4 – 0.
COUNCIL REPORTS
Councilmember Holtz: Reported on meeting with members of Connect Lake Elmo and city
communications staff.
Meeting adjourned at 8:55 p.m.
LAKE ELMO CITY COUNCIL
ATTEST:
______________________________
Charles Cadenhead, Mayor
_______________________________
Julie Johnson, City Clerk
STAFF REPORT
DATE: 07/07/2026
CONSENT
TO: Mayor and Councilmembers
FROM: Clarissa Hadler, Finance Director, Mike Kuehn, Finance
AGENDA ITEM: Payments & Disbursements
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
The City of Lake Elmo maintains a fiduciary responsibility to conduct normal business operations. Below is a
summary of current claims scheduled for disbursement and payment in full compliance with applicable state
statutes and City policies and procedures.
ISSUE BEFORE COUNCIL:
Should the Council approve “Payments & Disbursements”.
FISCAL IMPACT:
Claim # Amount Description
ACH/Chks $ 201,230.86 Payroll 06/25/2026
ACH/Chks $ 16,705.67 Accounts Payable – CC Payment
ACH/Chks $ 786,715.41 Accounts Payable
TOTAL $ 1,004,651.94
RECOMMENDATION: (if pulled from Consent)
“Motion to approve the aforementioned disbursements in the amount of $ 1,004,651.94
ATTACHMENTS:
1. Invoice DistribuƟon Report (CC Payment, 7 Pgs)
2. Invoice DistribuƟon Report (Regular AP, 24 Pgs)
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: ZORO.COM
Fund: 101 GENERAL FUND
Department: 5200 Parks & Recreation
101-5200-42150 PW_FLAGGING TAPE ZORO.COM PW_FLAGGING TAPE 17.88 None
101-5200-42210 PW_MATERIALS/PARTS ZORO.COM PW_MATERIALS/PARTS 44.97 None
Total Department 5200 Parks & Recreation 62.85
Total Fund 101 GENERAL FUND 62.85
Fund: 601 WATER
Department: 9400 WATER
601-9400-42150 PW_FLAGGING TAPE ZORO.COM PW_FLAGGING TAPE 17.88 None
Total Department 9400 WATER 17.88
Total Fund 601 WATER 17.88
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-42150 PW_FLAGGING TAPE ZORO.COM PW_FLAGGING TAPE 17.88 None
Total Department 9500 SURFACE WATER 17.88
Total Fund 603 STORMWATER 17.88
Total Vendor ZORO.COM:98.61
Vendor: Amazon Capital Services
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-42000 OFFICE WHITE BOARD Amazon Capital Services OFFICE WHITE BOARD 209.80 None
101-2220-42000 OFFICE WHITE BOARD SUPPLIE Amazon Capital Services OFFICE WHITE BOARD SUPPLIES 36.69 None
101-2220-42400 RESCUE BOAT ANCHOR Amazon Capital Services RESCUE BOAT ANCHOR 151.35 None
101-2220-42400 RESCUE BOAT ANCHOR PARTS Amazon Capital Services RESCUE BOAT ANCHOR PARTS 149.53 None
101-2220-44040 B2 REVERSE LIGHT REPLACEME Amazon Capital Services B2 REVERSE LIGHT REPLACEMENT 34.42 None
Total Department 2220 Fire 581.79
Department: 3100 Public Works
101-3100-44375 CHAINSAW CHAPS APRON Amazon Capital Services CHAINSAW CHAPS APRON 20.01 None
Total Department 3100 Public Works 20.01
Department: 5200 Parks & Recreation
101-5200-42000 PW_OFFICE SUPPLIES Amazon Capital Services PW_OFFICE SUPPLIES 4.04 None
101-5200-42150 PW_TRAILER HITCH Amazon Capital Services PW_TRAILER HITCH 12.32 None
101-5200-42150 PW_PINTLE HOOK Amazon Capital Services PW_PINTLE HOOK 263.27 None
101-5200-44040 MOWER_REPLACEMENT RIM Amazon Capital Services MOWER_REPLACEMENT TIRE 98.99 None
101-5200-44040 MOWER_REPLACEMENT TIRE Amazon Capital Services MOWER_REPLACEMENT TIRE 127.60 None
101-5200-44040 PW_TOWING MIRROR Amazon Capital Services PW_TOWING MIRROR 129.99 None
101-5200-44375 CHAINSAW CHAPS APRON Amazon Capital Services CHAINSAW CHAPS APRON 19.99 None
Total Department 5200 Parks & Recreation 656.20
Total Fund 101 GENERAL FUND 1,258.00
Fund: 601 WATER
Department: 9400 WATER
601-9400-42000 PW_OFFICE SUPPLIES Amazon Capital Services PW_OFFICE SUPPLIES 4.04 None
601-9400-42150 PW_TRAILER HITCH Amazon Capital Services PW_TRAILER HITCH 12.34 None
601-9400-42150 PW_PINTLE HOOK Amazon Capital Services PW_PINTLE HOOK 263.27 None
Total Department 9400 WATER 279.65
07/01/2026 10:57 AM Page:1/7
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Amazon Capital Services
Fund: 601 WATER
Total Fund 601 WATER 279.65
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-42000 PW_OFFICE SUPPLIES Amazon Capital Services PW_OFFICE SUPPLIES 4.04 None
Total Department 9450 SEWER 4.04
Total Fund 602 SEWER 4.04
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-42000 PW_OFFICE SUPPLIES Amazon Capital Services PW_OFFICE SUPPLIES 4.05 None
603-9500-42150 PW_TRAILER HITCH Amazon Capital Services PW_TRAILER HITCH 12.32 None
603-9500-42150 PW_PINTLE HOOK Amazon Capital Services PW_PINTLE HOOK 263.27 None
603-9500-44375 CHAINSAW CHAPS APRON Amazon Capital Services CHAINSAW CHAPS APRON 19.99 None
Total Department 9500 SURFACE WATER 299.63
Total Fund 603 STORMWATER 299.63
Total Vendor Amazon Capital Services:1,841.32
Vendor: American Planning Association
Fund: 101 GENERAL FUND
Department: 1910 Planning & Zoning
101-1910-44330 CC PAYMENT CD INTERN POST American Planning Associat CC PAYMENT CD INTERN POST 25.00 None
101-1910-44330 APA MEMBERSHIP - AM American Planning Associat APA MEMBERSHIP - AM 398.40 None
Total Department 1910 Planning & Zoning 423.40
Total Fund 101 GENERAL FUND 423.40
Total Vendor American Planning Association:423.40
Vendor: CK HOLIDAY
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44300 MONTHY VEHICLE WASH CK HOLIDAY MONTHY VEHICLE WASH 70.41 None
Total Department 2220 Fire 70.41
Total Fund 101 GENERAL FUND 70.41
Total Vendor CK HOLIDAY:70.41
Vendor: CRAGUNS RESORT
Fund: 101 GENERAL FUND
Department: 1520 Finance
101-1520-44370 MNGFOA CONFERENCE HOTEL CRAGUNS RESORT MNGFOA CONFERENCE HOTEL 415.53 None
Total Department 1520 Finance 415.53
Total Fund 101 GENERAL FUND 415.53
Total Vendor CRAGUNS RESORT:415.53
Vendor: ELAN CC FEES & INTEREST
Fund: 101 GENERAL FUND
Department: 1520 Finance
101-1520-44300 CC INTEREST ELAN CC FEES & INTEREST CC INTEREST 245.17 None
07/01/2026 10:57 AM Page:2/7
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: ELAN CC FEES & INTEREST
Fund: 101 GENERAL FUND
Department: 1520 Finance
Total Department 1520 Finance 245.17
Total Fund 101 GENERAL FUND 245.17
Total Vendor ELAN CC FEES & INTEREST:245.17
Vendor: Gerten Greenhouses
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-42270 PW MISC_OATS Gerten Greenhouses PW MISC_OATS 15.99 None
Total Department 9500 SURFACE WATER 15.99
Total Fund 603 STORMWATER 15.99
Total Vendor Gerten Greenhouses:15.99
Vendor: Greater Stillwater Chamber
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-44370 LEADERSHIP IN THE VALLEY -Greater Stillwater Chamber LEADERSHIP IN THE VALLEY - 2026-2027 30.00 None
101-1320-44370 LEADERSHIP IN THE VALLEY -Greater Stillwater Chamber LEADERSHIP IN THE VALLEY - 2026-2027 1,595.00 None
Total Department 1320 Administration 1,625.00
Total Fund 101 GENERAL FUND 1,625.00
Total Vendor Greater Stillwater Chamber:1,625.00
Vendor: League of MN Cities
Fund: 101 GENERAL FUND
Department: 1110 Mayor & Council
101-1110-44370 2026 LMC CONFERENCE REG - League of MN Cities 2026 LMC CONFERENCE REGISTRATION - NK 475.00 None
Total Department 1110 Mayor & Council 475.00
Total Fund 101 GENERAL FUND 475.00
Total Vendor League of MN Cities:475.00
Vendor: LINDE GAS AND EQUIPMENT INC
Fund: 101 GENERAL FUND
Department: 5200 Parks & Recreation
101-5200-42150 PW OPERTAING SUPPLIES LINDE GAS AND EQUIPMENT IN PW OPERTAING SUPPLIES 54.20 None
Total Department 5200 Parks & Recreation 54.20
Total Fund 101 GENERAL FUND 54.20
Fund: 601 WATER
Department: 9400 WATER
601-9400-42150 PW OPERTAING SUPPLIES LINDE GAS AND EQUIPMENT IN PW OPERTAING SUPPLIES 54.19 None
Total Department 9400 WATER 54.19
Total Fund 601 WATER 54.19
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-42150 PW OPERTAING SUPPLIES LINDE GAS AND EQUIPMENT IN PW OPERTAING SUPPLIES 54.19 None
Total Department 9450 SEWER 54.19
07/01/2026 10:57 AM Page:3/7
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: LINDE GAS AND EQUIPMENT INC
Fund: 602 SEWER
Total Fund 602 SEWER 54.19
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-42150 PW OPERTAING SUPPLIES LINDE GAS AND EQUIPMENT IN PW OPERTAING SUPPLIES 54.19 None
Total Department 9500 SURFACE WATER 54.19
Total Fund 603 STORMWATER 54.19
Total Vendor LINDE GAS AND EQUIPMENT INC:216.77
Vendor: MINUTE KEY
Fund: 101 GENERAL FUND
Department: 2400 Building Inspection
101-2400-42000 KEYS FOR THE PARKS BUILDIN MINUTE KEY KEYS - OLD CITY HALL - PARKS BLDG 6.53 None
101-2400-42000 KEYS FOR OLD CITY HALL MINUTE KEY KEYS - OLD CITY HALL - PARKS BLDG 13.07 None
Total Department 2400 Building Inspection 19.60
Total Fund 101 GENERAL FUND 19.60
Total Vendor MINUTE KEY:19.60
Vendor: Plan It Software LLC
Fund: 101 GENERAL FUND
Department: 1520 Finance
101-1520-43190 PLANIT CIP SOFTWARE Plan It Software LLC PLANIT CIP SOFTWARE 4,725.00 None
101-1520-43190 PLANIT CIP SOFTWARE Plan It Software LLC PLANIT CIP SOFTWARE - WEB BOOK 1,500.00 None
Total Department 1520 Finance 6,225.00
Total Fund 101 GENERAL FUND 6,225.00
Total Vendor Plan It Software LLC:6,225.00
Vendor: Regents of the University of Minnesota
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-44370 STREET SIGN TRAINING / MB Regents of the University STREET SIGN TRAINING / MIKE BELDE, LU 150.00 None
Total Department 3100 Public Works 150.00
Total Fund 101 GENERAL FUND 150.00
Total Vendor Regents of the University of Minnesota:150.00
Vendor: RESTORATION AND REPAIR INC
Fund: 101 GENERAL FUND
Department: 5200 Parks & Recreation
101-5200-44040 PW_P3 NEW COVER AND PAD RESTORATION AND REPAIR INC PW_P3 NEW COVER AND PAD 506.13 None
Total Department 5200 Parks & Recreation 506.13
Total Fund 101 GENERAL FUND 506.13
Total Vendor RESTORATION AND REPAIR INC:506.13
Vendor: SHURE - RETAIL SOLUTIONS LLC
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-45700 CC DAIS MICROPHONE SHURE - RETAIL SOLUTIONS L CC DAIS MICROPHONE 375.00 None
07/01/2026 10:57 AM Page:4/7
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: SHURE - RETAIL SOLUTIONS LLC
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
Total Department 0000 General 375.00
Total Fund 703 CITY CENTER OPERATIONS (ISF)375.00
Total Vendor SHURE - RETAIL SOLUTIONS LLC:375.00
Vendor: T&T TOOLS INC
Fund: 601 WATER
Department: 9400 WATER
601-9400-42150 INSULATED METAL SOIL PROBE T&T TOOLS INC INSULATED METAL SOIL PROBE 109.34 None
Total Department 9400 WATER 109.34
Total Fund 601 WATER 109.34
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-42150 INSULATED METAL SOIL PROBE T&T TOOLS INC INSULATED METAL SOIL PROBE 109.33 None
Total Department 9450 SEWER 109.33
Total Fund 602 SEWER 109.33
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-42150 INSULATED METAL SOIL PROBE T&T TOOLS INC INSULATED METAL SOIL PROBE 109.33 None
Total Department 9500 SURFACE WATER 109.33
Total Fund 603 STORMWATER 109.33
Total Vendor T&T TOOLS INC:328.00
Vendor: TIRES PLUS
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-44040 TIRE REPLACEMENT_P4_ 22 FO TIRES PLUS TIRE REPLACEMENT_ P4_22 FORD RANGER X 1,348.63 None
101-3100-44040 TIRE REPLACEMENT_ W3_21 RA TIRES PLUS TIRE REPLACEMENT_ W3_21 RAM 1,053.59 None
Total Department 3100 Public Works 2,402.22
Total Fund 101 GENERAL FUND 2,402.22
Total Vendor TIRES PLUS:2,402.22
Vendor: Verizon
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-43210 WIRELESS CHARGES 84206596 Verizon VERIZON - MAY 76.80 None
Total Department 1320 Administration 76.80
Department: 1910 Planning & Zoning
101-1910-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - MAY 38.40 None
Total Department 1910 Planning & Zoning 38.40
Department: 2400 Building Inspection
101-2400-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - MAY 176.84 None
Total Department 2400 Building Inspection 176.84
Department: 3100 Public Works
07/01/2026 10:57 AM Page:5/7
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Verizon
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - MAY 192.00 None
Total Department 3100 Public Works 192.00
Department: 5200 Parks & Recreation
101-5200-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - MAY 115.20 None
Total Department 5200 Parks & Recreation 115.20
Total Fund 101 GENERAL FUND 599.24
Fund: 601 WATER
Department: 9400 WATER
601-9400-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - MAY 243.66 None
Total Department 9400 WATER 243.66
Total Fund 601 WATER 243.66
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - MAY 196.10 None
Total Department 9450 SEWER 196.10
Total Fund 602 SEWER 196.10
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - MAY 20.02 None
Total Department 9500 SURFACE WATER 20.02
Total Fund 603 STORMWATER 20.02
Total Vendor Verizon:1,059.02
Vendor: Washington County - WACO Public Works Dept
Fund: 101 GENERAL FUND
Department: 1910 Planning & Zoning
101-1910-43220 MAILING LABELS 180 ACRES Washington County - WACO P MAILING LABELS 180 ACRES 113.50 None
Total Department 1910 Planning & Zoning 113.50
Total Fund 101 GENERAL FUND 113.50
Fund: 408 STREET MAINTENANCE
Department: 3100 Public Works
408-3100-43150 4TH OF JULY ROW PERMIT Washington County - WACO P 4TH OF JULY ROW PERMIT 100.00 None
Total Department 3100 Public Works 100.00
Total Fund 408 STREET MAINTENANCE 100.00
Total Vendor Washington County - WACO Public Works Dept:213.50
07/01/2026 10:57 AM Page:6/7
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
--- TOTALS BY FUND ---
101 GENERAL FUND 14,645.25
408 STREET MAINTENANCE 100.00
601 WATER 704.72
602 SEWER 363.66
603 STORMWATER 517.04
703 CITY CENTER OPERATIONS (ISF)375.00
Total For All Funds:16,705.67
07/01/2026 10:57 AM Page:7/7
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Advanced Graphix Inc
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44300 LOCKER NAMEPLATE Advanced Graphix Inc LOCKER NAMEPLATE 7.50 None
Total Department 2220 Fire 7.50
Total Fund 101 GENERAL FUND 7.50
Total Vendor Advanced Graphix Inc:7.50
Vendor: Aid Electric Corporation
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44010 EXHAUST FAN RELAYS Aid Electric Corporation EXHAUST FAN RELAYS 487.48 None
Total Department 2220 Fire 487.48
Total Fund 101 GENERAL FUND 487.48
Total Vendor Aid Electric Corporation:487.48
Vendor: Amazon Capital Services
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-42002 NETWORK CABLE Amazon Capital Services NETWORK CABLE 16.68 None
Total Department 1320 Administration 16.68
Total Fund 101 GENERAL FUND 16.68
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-42210 LIFT STATION CABINET AIR F Amazon Capital Services LIFT STATION FILTERS 87.98 None
Total Department 9450 SEWER 87.98
Total Fund 602 SEWER 87.98
Total Vendor Amazon Capital Services:104.66
Vendor: American Test Center
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44040 ANNUAL AERIAL INSPECTION L American Test Center ANNUAL AERIAL INSPECTION L1 726.00 None
Total Department 2220 Fire 726.00
Total Fund 101 GENERAL FUND 726.00
Total Vendor American Test Center:726.00
Vendor: ANCOM Communications
Fund: 407 FIRE EQUIPMENT & PROJECT
Department: 2220 Fire
407-2220-43230 ENGINE 1 - HEADSETS AND IN ANCOM Communications ENGINE 1 - HEADSETS AND INSTALL 4,986.95 None
Total Department 2220 Fire 4,986.95
Total Fund 407 FIRE EQUIPMENT & PROJECT 4,986.95
Total Vendor ANCOM Communications:4,986.95
Vendor: AT HOME APTS
Fund: 803 ESCROW FUND
07/02/2026 12:34 PM Page:1/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: AT HOME APTS
Fund: 803 ESCROW FUND
Department: 0000 General
803-0000-22910 ESCROW RELEASE - AT HOME A AT HOME APTS ESCROW RELEASE - AT HOME APTS - POND 6,986.00 None
Total Department 0000 General 6,986.00
Total Fund 803 ESCROW FUND 6,986.00
Total Vendor AT HOME APTS:6,986.00
Vendor: AutoZone Inc
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-44040 PW -TRUCK P1 AutoZone Inc PW -TRUCK P1 14.24 None
101-3100-44040 PW -TRUCK P1 AutoZone Inc PW -TRUCK P1 34.91 None
Total Department 3100 Public Works 49.15
Total Fund 101 GENERAL FUND 49.15
Total Vendor AutoZone Inc:49.15
Vendor: Bound Tree Medical LLC
Fund: 407 FIRE EQUIPMENT & PROJECT
Department: 2220 Fire
407-2220-42080 AIRWAY MANAGEMENT TRAINER Bound Tree Medical LLC AIRWAY MANAGEMENT TRAINER 2,119.99 None
Total Department 2220 Fire 2,119.99
Total Fund 407 FIRE EQUIPMENT & PROJECT 2,119.99
Total Vendor Bound Tree Medical LLC:2,119.99
Vendor: Braun Intertec Corporation
Fund: 451 2026 STREET & UTILITY IMPROVEMENTS
Department: 8138 2026 STREET & UTILITY IMPROVEMENTS
451-8138-43030-8138 2026 STREET IMPROVEMENTS 2 Braun Intertec Corporation 2026 STREET IMPROVEMENTS 25X.139309 4,747.50 None
Total Department 8138 2026 STREET & UTILITY IMPROVEMENTS 4,747.50
Total Fund 451 2026 STREET & UTILITY IMPROVEMENTS 4,747.50
Fund: 601 WATER
Department: 8126 SOUTH AREA PROD WELLS/TREATMT
601-8126-43150-8126 SOUTH PFAS WTP/WELLS 24X.1 Braun Intertec Corporation SOUTH PFAS WTP/WELLS 24X.137233 4,834.50 None
Total Department 8126 SOUTH AREA PROD WELLS/TREATMT 4,834.50
Total Fund 601 WATER 4,834.50
Total Vendor Braun Intertec Corporation:9,582.00
Vendor: BS&A Software LLC
Fund: 601 WATER
Department: 9400 WATER
601-9400-44377 CREDIT CARD FEES - MAY BS&A Software LLC CREDIT CARD FEES - MAY 2,642.68 None
Total Department 9400 WATER 2,642.68
Total Fund 601 WATER 2,642.68
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-44377 CREDIT CARD FEES - MAY BS&A Software LLC CREDIT CARD FEES - MAY 2,490.24 None
07/02/2026 12:34 PM Page:2/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: BS&A Software LLC
Fund: 602 SEWER
Department: 9450 SEWER
Total Department 9450 SEWER 2,490.24
Total Fund 602 SEWER 2,490.24
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-44377 CREDIT CARD FEES - MAY BS&A Software LLC CREDIT CARD FEES - MAY 1,106.35 None
Total Department 9500 SURFACE WATER 1,106.35
Total Fund 603 STORMWATER 1,106.35
Total Vendor BS&A Software LLC:6,239.27
Vendor: Catalyst Graphics Inc
Fund: 601 WATER
Department: 9400 WATER
601-9400-42000 Irrigation Door Hangers Catalyst Graphics Inc Irrigation Door Hangers 323.00 None
Total Department 9400 WATER 323.00
Total Fund 601 WATER 323.00
Total Vendor Catalyst Graphics Inc:323.00
Vendor: Century Power Equipment
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-44040 MAINTENANCE/PARTS_ MOWER Century Power Equipment MAINTENANCE/PARTS_ MOWER 32.03 None
101-3100-44040 MAINTENANCE/PARTS_ MOWER_A Century Power Equipment MAINTENANCE/PARTS_ MOWER_ANTI SCALP R 32.66 None
101-3100-44040 MAINTENANCE/PARTS_ MOWER_A Century Power Equipment RETURN - MAINT/PARTS_ MOWER_ANTI SCAL (32.66)None
101-3100-44040 MAINTENANCE/PARTS_NOTCHED Century Power Equipment MAINTENANCE/PARTS_NOTCHED BLADE 89.97 None
Total Department 3100 Public Works 122.00
Department: 5200 Parks & Recreation
101-5200-44040 MAINTENANCE/PARTS_ MOWER Century Power Equipment MAINTENANCE/PARTS_ MOWER 32.03 None
101-5200-44040 MAINTENANCE/PARTS_ MOWER_A Century Power Equipment MAINTENANCE/PARTS_ MOWER_ANTI SCALP R 32.66 None
101-5200-44040 MAINTENANCE/PARTS_ MOWER_A Century Power Equipment RETURN - MAINT/PARTS_ MOWER_ANTI SCAL (32.66)None
Total Department 5200 Parks & Recreation 32.03
Total Fund 101 GENERAL FUND 154.03
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-44040 MAINTENANCE/PARTS_ MOWER Century Power Equipment MAINTENANCE/PARTS_ MOWER 32.04 None
603-9500-44040 MAINTENANCE/PARTS_ MOWER_A Century Power Equipment MAINTENANCE/PARTS_ MOWER_ANTI SCALP R 32.66 None
603-9500-44040 MAINTENANCE/PARTS_ MOWER_A Century Power Equipment RETURN - MAINT/PARTS_ MOWER_ANTI SCAL (32.66)None
Total Department 9500 SURFACE WATER 32.04
Total Fund 603 STORMWATER 32.04
Total Vendor Century Power Equipment:186.07
Vendor: Cintas Corp
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-42150 RUGS/SOAP/RAGS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 41.11 None
07/02/2026 12:34 PM Page:3/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Cintas Corp
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-42150 RUGS/SOAP/RAGS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 70.84 None
101-3100-42150 RUGS/SOAP/RAGS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 163.42 None
101-3100-44170 PW - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 173.77 None
101-3100-44170 PW - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 94.24 None
101-3100-44170 PW - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 141.55 None
Total Department 3100 Public Works 684.93
Department: 5200 Parks & Recreation
101-5200-44170 PARK & REC - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 40.10 None
101-5200-44170 PARK & REC - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 21.75 None
101-5200-44170 PARK & REC - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 32.67 None
Total Department 5200 Parks & Recreation 94.52
Total Fund 101 GENERAL FUND 779.45
Fund: 601 WATER
Department: 9400 WATER
601-9400-44170 WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 32.08 None
601-9400-44170 WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 17.40 None
601-9400-44170 WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 26.13 None
Total Department 9400 WATER 75.61
Total Fund 601 WATER 75.61
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-44170 SEWER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 13.37 None
602-9450-44170 SEWER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 7.25 None
602-9450-44170 SEWER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 10.89 None
Total Department 9450 SEWER 31.51
Total Fund 602 SEWER 31.51
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-44170 SURFACE WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 8.02 None
603-9500-44170 SURFACE WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 4.35 None
603-9500-44170 SURFACE WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 6.53 None
Total Department 9500 SURFACE WATER 18.90
Total Fund 603 STORMWATER 18.90
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-42110 JANITORIAL SUPPLIES Cintas Corp JANITORIAL / RUGS 269.16 None
703-0000-42110 JANITORIAL SUPPLIES Cintas Corp JANITORIAL / RUGS 268.21 None
703-0000-44011 RUGS Cintas Corp JANITORIAL / RUGS 159.70 None
703-0000-44011 RUGS Cintas Corp JANITORIAL / RUGS 159.70 None
Total Department 0000 General 856.77
Total Fund 703 CITY CENTER OPERATIONS (ISF)856.77
Total Vendor Cintas Corp:1,762.24
07/02/2026 12:34 PM Page:4/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: City of Bloomington - Civic Plaza
Fund: 601 WATER
Department: 9400 WATER
601-9400-43150 WATER SAMPLE TESTING City of Bloomington - Civi WATER SAMPLE TESTING 140.00 None
Total Department 9400 WATER 140.00
Total Fund 601 WATER 140.00
Total Vendor City of Bloomington - Civic Plaza:140.00
Vendor: CleanRiver Recycling Solutions
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-42600 PARK GARBAGE/RECYCLE CAN U CleanRiver Recycling Solut CLE009 - PARK GARBAGE/RECYCLE CAN UPD 9,630.00 None
Total Department 1320 Administration 9,630.00
Total Fund 101 GENERAL FUND 9,630.00
Total Vendor CleanRiver Recycling Solutions:9,630.00
Vendor: Comcast
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-43210 INTERNET - ACCT # 98105250 Comcast COMCAST MONTHLY_JUNE 26_ PW INTERNET 110.80 None
Total Department 3100 Public Works 110.80
Department: 5200 Parks & Recreation
101-5200-43210 INTERNET - ACCT # 98105250 Comcast COMCAST MONTHLY_JUNE 26_ PW INTERNET 110.79 None
Total Department 5200 Parks & Recreation 110.79
Total Fund 101 GENERAL FUND 221.59
Fund: 601 WATER
Department: 9400 WATER
601-9400-43210 INTERNET - ACCT # 98105250 Comcast COMCAST MONTHLY_JUNE 26_ PW INTERNET 110.79 None
Total Department 9400 WATER 110.79
Total Fund 601 WATER 110.79
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43210 INTERNET - ACCT # 98105250 Comcast COMCAST MONTHLY_JUNE 26_ PW INTERNET 110.79 None
Total Department 9450 SEWER 110.79
Total Fund 602 SEWER 110.79
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-43210 INTERNET - ACCT # 98105250 Comcast COMCAST MONTHLY_JUNE 26_ PW INTERNET 110.79 None
Total Department 9500 SURFACE WATER 110.79
Total Fund 603 STORMWATER 110.79
Total Vendor Comcast:553.96
Vendor: CONCRETE LIFTING INC
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-44010 CITY CENTER-CONCRETE REPAI CONCRETE LIFTING INC CITY CENTER-CONCRETE REPAIR 1,650.00 None
07/02/2026 12:34 PM Page:5/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: CONCRETE LIFTING INC
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
Total Department 0000 General 1,650.00
Total Fund 703 CITY CENTER OPERATIONS (ISF)1,650.00
Total Vendor CONCRETE LIFTING INC:1,650.00
Vendor: Coordinated Business Systems
Fund: 101 GENERAL FUND
Department: 2400 Building Inspection
101-2400-44040 HP DESIGNJET T2600 MAINT T Coordinated Business Syste HP DESIGNJET T2600 MAINT THRU 06/19/2 2,889.66 None
Total Department 2400 Building Inspection 2,889.66
Total Fund 101 GENERAL FUND 2,889.66
Total Vendor Coordinated Business Systems:2,889.66
Vendor: CORE & MAIN LP
Fund: 601 WATER
Department: 9400 WATER
601-9400-42150 OPERATING SUPPLIES - HACH CORE & MAIN LP OPERATING SUPPLIES - HACH SPADNS 2 259.17 None
Total Department 9400 WATER 259.17
Total Fund 601 WATER 259.17
Total Vendor CORE & MAIN LP:259.17
Vendor: DAVID LESSARD
Fund: 601 WATER
Department: 0000 General
601-0000-11500 OVERPAYMENT DAVID LESSARD UB REFUND FOR ACCOUNT: 04-00000243-00 75.00 None
Total Department 0000 General 75.00
Total Fund 601 WATER 75.00
Total Vendor DAVID LESSARD:75.00
Vendor: Eckberg Lammers
Fund: 101 GENERAL FUND
Department: 2150 Prosecution
101-2150-43045 MONTHLY PRO SVCS PROS Eckberg Lammers MONTHLY PROSECUTION SERVICES -JUN 4,415.25 None
Total Department 2150 Prosecution 4,415.25
Total Fund 101 GENERAL FUND 4,415.25
Total Vendor Eckberg Lammers:4,415.25
Vendor: Electric Pump Inc
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43150 Sanitary Lift Station Annu Electric Pump Inc Sanitary Lift Station Annual Maint 2,500.00 None
Total Department 9450 SEWER 2,500.00
Total Fund 602 SEWER 2,500.00
Total Vendor Electric Pump Inc:2,500.00
07/02/2026 12:34 PM Page:6/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Electro Watchman Inc
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-44040 ANNUAL FIRE ALARM MONITORI Electro Watchman Inc ANNUAL FIRE ALARM MONITORING 659.40 None
Total Department 0000 General 659.40
Total Fund 703 CITY CENTER OPERATIONS (ISF)659.40
Total Vendor Electro Watchman Inc:659.40
Vendor: Emergency Apparatus Maint Inc
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44040 LADDER1 ANNUAL MAINTENANCE Emergency Apparatus Maint LADDER1 ANNUAL MAINTENANCE & PUMP TES 4,386.71 None
101-2220-44040 BRUSH 1 ANNUAL MAINTENANCE Emergency Apparatus Maint BRUSH 1 ANNUAL MAINTENANCE & PUMP TES 844.10 None
101-2220-44040 RESCUE 1 ANNUAL MAINTENANC Emergency Apparatus Maint RESCUE 1 ANNUAL MAINTENANCE & PUMP TE 2,355.62 None
101-2220-44040 ENGINE1 1 ANNUAL MAINTENAN Emergency Apparatus Maint ENGINE1 1 ANNUAL MAINTENANCE & PUMP T 2,114.46 None
101-2220-44040 TANKER 2 ANNUAL MAINTENANC Emergency Apparatus Maint TANKER 2 ANNUAL MAINTENANCE & PUMP TE 2,407.00 None
101-2220-44040 TENDER 1 ANNUAL MAINTENANC Emergency Apparatus Maint TENDER 1 ANNUAL MAINTENANCE & PUMP TE 1,828.78 None
Total Department 2220 Fire 13,936.67
Total Fund 101 GENERAL FUND 13,936.67
Total Vendor Emergency Apparatus Maint Inc:13,936.67
Vendor: Ferguson Waterworks #2518
Fund: 601 WATER
Department: 9400 WATER
601-9400-42300 WATER METER SUPPLIES/FLANG Ferguson Waterworks #2518 WATER METER SUPPLIES 1,327.20 None
Total Department 9400 WATER 1,327.20
Department: 9401 WELL 2 TREATMENT O&M
601-9401-42210 WATER_REPAIR MAINTENANCE S Ferguson Waterworks #2518 WATER_REPAIR MAINTENANCE SUPPLIES 646.28 None
Total Department 9401 WELL 2 TREATMENT O&M 646.28
Total Fund 601 WATER 1,973.48
Total Vendor Ferguson Waterworks #2518:1,973.48
Vendor: Festival Production Services
Fund: 101 GENERAL FUND
Department: 1110 Mayor & Council
101-1110-44300 MOBILE STAGE 2026 CITY STR Festival Production Servic MOBILE STAGE 2026 CITY STREET DANCE 3,605.00 None
Total Department 1110 Mayor & Council 3,605.00
Total Fund 101 GENERAL FUND 3,605.00
Total Vendor Festival Production Services:3,605.00
Vendor: Fire Catt LLC
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44040 ANNUAL HOSE TESTING DAY 1 Fire Catt LLC ANNUAL HOSE TESTING DAY 1 1,441.00 None
101-2220-44040 ANNUAL HOSE TESTING DAY 2 Fire Catt LLC ANNUAL HOSE TESTING DAY 2 3,377.00 None
Total Department 2220 Fire 4,818.00
Total Fund 101 GENERAL FUND 4,818.00
07/02/2026 12:34 PM Page:7/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Fire Catt LLC
Total Vendor Fire Catt LLC:4,818.00
Vendor: Fire Equipment Specialties
Fund: 410 VEHICLE REPLACEMENT
Department: 2220 Fire
410-2220-45500-8144 T2 REPLACEMENT EQUIPMENT Fire Equipment Specialties T2 REPLACEMENT EQUIPMENT 298.00 None
Total Department 2220 Fire 298.00
Total Fund 410 VEHICLE REPLACEMENT 298.00
Total Vendor Fire Equipment Specialties:298.00
Vendor: First State Tire Recycling
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-44300 TIRE DISPOSAL First State Tire Recycling TIRE DISPOSAL 110.68 None
Total Department 9500 SURFACE WATER 110.68
Total Fund 603 STORMWATER 110.68
Total Vendor First State Tire Recycling:110.68
Vendor: FOREVER FABRICATION
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44040 T2 LADDER RACK REPAIR FOREVER FABRICATION T2 LADDER RACK REPAIR 300.00 None
Total Department 2220 Fire 300.00
Total Fund 101 GENERAL FUND 300.00
Fund: 410 VEHICLE REPLACEMENT
Department: 2220 Fire
410-2220-45500 UTV 1 REPLACEMENT - TRAILE FOREVER FABRICATION UTV 1 TRAILER RAMP REINFORCEMENT 710.00 None
Total Department 2220 Fire 710.00
Total Fund 410 VEHICLE REPLACEMENT 710.00
Total Vendor FOREVER FABRICATION:1,010.00
Vendor: GreatAmerica Financial Services
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-44040 Monthly Copier-Adm-020-184 GreatAmerica Financial Ser MONTHLY COPIER INVOICE - 020-1863070-272.86 None
Total Department 1320 Administration 272.86
Department: 1520 Finance
101-1520-44040 MONTHLY COPIER-FINA-020-18 GreatAmerica Financial Ser MONTHLY COPIER INVOICE - 020-1863070-272.85 None
Total Department 1520 Finance 272.85
Department: 1910 Planning & Zoning
101-1910-44040 MONTHLY COPIER-PLNG-020-18 GreatAmerica Financial Ser MONTHLY COPIER INVOICE - 020-1863070-285.06 None
Total Department 1910 Planning & Zoning 285.06
Department: 2400 Building Inspection
101-2400-44040 MONTHLY COPIER-BLDG-020-18 GreatAmerica Financial Ser MONTHLY COPIER INVOICE - 020-1863070-285.03 None
Total Department 2400 Building Inspection 285.03
Total Fund 101 GENERAL FUND 1,115.80
07/02/2026 12:34 PM Page:8/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: GreatAmerica Financial Services
Total Vendor GreatAmerica Financial Services:1,115.80
Vendor: Hailies Cleaning Svcs LLC
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-44011 CITY HALL MONTHLY CLEANING Hailies Cleaning Svcs LLC MONTHLY CLEANING SERVICES-JUN 1,980.00 None
Total Department 0000 General 1,980.00
Total Fund 703 CITY CENTER OPERATIONS (ISF)1,980.00
Total Vendor Hailies Cleaning Svcs LLC:1,980.00
Vendor: Hawkins Inc
Fund: 601 WATER
Department: 9400 WATER
601-9400-42160 WELL CHEMICALS Hawkins Inc WELL CHEMICALS 100.00 None
601-9400-42160 WELL CHEMICALS Hawkins Inc WELL CHEMICALS 40.00 None
601-9400-42160 WELL CHEMICALS Hawkins Inc WELL CHEMICALS 3,411.97 None
Total Department 9400 WATER 3,551.97
Total Fund 601 WATER 3,551.97
Total Vendor Hawkins Inc:3,551.97
Vendor: Hoisington Koegler Group Inc
Fund: 101 GENERAL FUND
Department: 1910 Planning & Zoning
101-1910-43150 GENERAL Hoisington Koegler Group I 1,922.50 None
Total Department 1910 Planning & Zoning 1,922.50
Total Fund 101 GENERAL FUND 1,922.50
Fund: 209 TREE FUND
Department: 3250 Tree Program
209-3250-43150 BLVD TREES Hoisington Koegler Group I 1,019.00 None
Total Department 3250 Tree Program 1,019.00
Total Fund 209 TREE FUND 1,019.00
Fund: 803 ESCROW FUND
Department: 9001 E001 - 39TH ST-PRAIRIE SKY
803-9001-43150 PRAIRIE SKY Hoisington Koegler Group I 116.25 None
Total Department 9001 E001 - 39TH ST-PRAIRIE SKY 116.25
Department: 9011 E011 - BRIDGEWATER VILLAGE (FKA NORTHSHO
803-9011-43150 BV Hoisington Koegler Group I 2,239.48 None
803-9011-43150 BANK SITE Hoisington Koegler Group I 333.75 None
Total Department 9011 E011 - BRIDGEWATER VILLAGE (FKA NORTHSHO 2,573.23
Department: 9017 E017 - ENTERPRISE
803-9017-43150 ENT Hoisington Koegler Group I 21.25 None
Total Department 9017 E017 - ENTERPRISE 21.25
Department: 9021 E021 - INWOOD 9TH
803-9021-43150 INWOOD COMM Hoisington Koegler Group I 387.50 None
Total Department 9021 E021 - INWOOD 9TH 387.50
07/02/2026 12:34 PM Page:9/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Hoisington Koegler Group Inc
Fund: 803 ESCROW FUND
Department: 9023 E023 - LAKE ELMO ELEMENTARY
803-9023-43150 LE ELEM Hoisington Koegler Group I 360.45 None
803-9023-43150 LE ELEM Hoisington Koegler Group I 116.25 None
Total Department 9023 E023 - LAKE ELMO ELEMENTARY 476.70
Department: 9026 E026 - LAKEWOOD CROSSING - STARBUCKS
803-9026-43150 STARBUCKS Hoisington Koegler Group I 648.73 None
Total Department 9026 E026 - LAKEWOOD CROSSING - STARBUCKS 648.73
Department: 9028 E028 - LEGACY AT NORTHSTAR 2ND
803-9028-43150 L NS 2 Hoisington Koegler Group I 57.50 None
Total Department 9028 E028 - LEGACY AT NORTHSTAR 2ND 57.50
Department: 9029 E029 - LEGACY AT NORTHSTAR 3RD
803-9029-43150 L NS 3 Hoisington Koegler Group I 57.50 None
Total Department 9029 E029 - LEGACY AT NORTHSTAR 3RD 57.50
Department: 9032 E032 - LIL EXPLORERS DAYCARE (39TH ST) -
803-9032-43150 MILESTONE DAYCARE Hoisington Koegler Group I 21.25 None
Total Department 9032 E032 - LIL EXPLORERS DAYCARE (39TH ST) -21.25
Department: 9033 E033 - LIMERICK VILLAGE
803-9033-43150 LV Hoisington Koegler Group I 348.75 None
Total Department 9033 E033 - LIMERICK VILLAGE 348.75
Department: 9035 E035 - NORTHPORT 1ST
803-9035-43150 NP 1 Hoisington Koegler Group I 210.00 None
Total Department 9035 E035 - NORTHPORT 1ST 210.00
Department: 9036 E036 - NORTHPORT 2ND
803-9036-43150 NP 2 Hoisington Koegler Group I 153.35 None
Total Department 9036 E036 - NORTHPORT 2ND 153.35
Department: 9037 E037 - NORTHPORT 3RD
803-9037-43150 NP3 Hoisington Koegler Group I 90.00 None
Total Department 9037 E037 - NORTHPORT 3RD 90.00
Department: 9043 E043 - ROYAL GOLF 3RD
803-9043-43150 RG3 Hoisington Koegler Group I 768.47 None
Total Department 9043 E043 - ROYAL GOLF 3RD 768.47
Department: 9045 E045 - ROYAL GOLF 5TH - LIFT STATION
803-9045-43150 RG5 Hoisington Koegler Group I 38.75 None
Total Department 9045 E045 - ROYAL GOLF 5TH - LIFT STATION 38.75
Department: 9046 E046 - ROYAL GOLF 6TH
803-9046-43150 RG6 Hoisington Koegler Group I 93.75 None
Total Department 9046 E046 - ROYAL GOLF 6TH 93.75
Department: 9055 E055 - UNION PARK 2ND
803-9055-43150 UP E 2 Hoisington Koegler Group I 353.88 None
Total Department 9055 E055 - UNION PARK 2ND 353.88
Department: 9058 E058 - WILDFLOWER 3RD
803-9058-43150 WF 3 Hoisington Koegler Group I 606.43 None
07/02/2026 12:34 PM Page:10/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Hoisington Koegler Group Inc
Fund: 803 ESCROW FUND
Department: 9058 E058 - WILDFLOWER 3RD
Total Department 9058 E058 - WILDFLOWER 3RD 606.43
Department: 9060 E060
803-9060-43150 DQ Hoisington Koegler Group I 2,201.61 None
Total Department 9060 E060 2,201.61
Department: 9061 E061
803-9061-43150 NS 3 Hoisington Koegler Group I 285.38 None
Total Department 9061 E061 285.38
Department: 9066 E066
803-9066-43150 BW TH Hoisington Koegler Group I 116.25 None
Total Department 9066 E066 116.25
Total Fund 803 ESCROW FUND 9,626.53
Total Vendor Hoisington Koegler Group Inc:12,568.03
Vendor: Innovative Office Solutions LLC
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-42000 COPY PAPER, FRAME Innovative Office Solution COPY PAPER, FRAME 58.08 None
Total Department 1320 Administration 58.08
Department: 1910 Planning & Zoning
101-1910-42000 COPY PAPER Innovative Office Solution COPY PAPER, FRAME 45.99 None
Total Department 1910 Planning & Zoning 45.99
Total Fund 101 GENERAL FUND 104.07
Total Vendor Innovative Office Solutions LLC:104.07
Vendor: IUOE Local 49 Fringe Benefit Fund
Fund: 101 GENERAL FUND
Department: 0000 General
101-0000-21713 LOCAL 49 MONTHLY HEALTH IN IUOE Local 49 Fringe Benef LOCAL 49 MONTHLY HEALTH INS PREM-AUG 16,750.00 None
101-0000-21713 LUKE SWELLAND JULY PREM IUOE Local 49 Fringe Benef LOCAL 49 MONTHLY HEALTH INS PREM-AUG 1,675.00 None
Total Department 0000 General 18,425.00
Total Fund 101 GENERAL FUND 18,425.00
Total Vendor IUOE Local 49 Fringe Benefit Fund:18,425.00
Vendor: JIM & MICHELLE BOHLIG
Fund: 601 WATER
Department: 0000 General
601-0000-11500 OVERPAYMENT JIM & MICHELLE BOHLIG UB REFUND FOR ACCOUNT: 01-00024311-01 11.68 None
Total Department 0000 General 11.68
Total Fund 601 WATER 11.68
Total Vendor JIM & MICHELLE BOHLIG:11.68
Vendor: K&S Engraving LLC
Fund: 101 GENERAL FUND
Department: 2220 Fire
07/02/2026 12:34 PM Page:11/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: K&S Engraving LLC
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-42400 UPDATED ENGINE PASSPORTS K&S Engraving LLC UPDATED ENGINE PASSPORTS 33.50 None
Total Department 2220 Fire 33.50
Total Fund 101 GENERAL FUND 33.50
Total Vendor K&S Engraving LLC:33.50
Vendor: Kath Fuel Oil Service Co
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-42120 FIRE - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 600.57 None
Total Department 2220 Fire 600.57
Department: 2400 Building Inspection
101-2400-42120 BUILDING - UNLEADED FUEL Kath Fuel Oil Service Co UNLEADED FUEL 82.80 None
Total Department 2400 Building Inspection 82.80
Department: 3100 Public Works
101-3100-42120 STREET - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 415.82 None
101-3100-42120 STREET - ON ROAD Kath Fuel Oil Service Co ON ROAD 148.95 None
101-3100-42120 STREET - UNLEADED FUEL Kath Fuel Oil Service Co UNLEADED FUEL 564.90 None
Total Department 3100 Public Works 1,129.67
Department: 5200 Parks & Recreation
101-5200-42120 PARKS - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 155.93 None
101-5200-42120 PARKS- ON ROAD Kath Fuel Oil Service Co ON ROAD 55.86 None
101-5200-42120 PARKS - UNLEADED FUEL Kath Fuel Oil Service Co UNLEADED FUEL 211.84 None
Total Department 5200 Parks & Recreation 423.63
Total Fund 101 GENERAL FUND 2,236.67
Fund: 601 WATER
Department: 9400 WATER
601-9400-42120 WATER - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 207.91 None
601-9400-42120 WATER - ON ROAD Kath Fuel Oil Service Co ON ROAD 74.47 None
601-9400-42120 WATER - UNLEADED FUEL Kath Fuel Oil Service Co UNLEADED FUEL 282.45 None
Total Department 9400 WATER 564.83
Total Fund 601 WATER 564.83
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-42120 SEWER - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 207.91 None
602-9450-42120 SEWER - ON ROAD Kath Fuel Oil Service Co ON ROAD 74.47 None
602-9450-42120 SEWER - UNLEADED FUEL Kath Fuel Oil Service Co UNLEADED FUEL 282.45 None
Total Department 9450 SEWER 564.83
Total Fund 602 SEWER 564.83
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-42120 STORMWATER - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 51.99 None
603-9500-42120 STORMWATER - ON ROAD Kath Fuel Oil Service Co ON ROAD 18.62 None
603-9500-42120 STORMWATER - UNLEADED FUEL Kath Fuel Oil Service Co UNLEADED FUEL 70.61 None
07/02/2026 12:34 PM Page:12/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Kath Fuel Oil Service Co
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
Total Department 9500 SURFACE WATER 141.22
Total Fund 603 STORMWATER 141.22
Total Vendor Kath Fuel Oil Service Co:3,507.55
Vendor: Kodiak Power Solutions
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-43150 DIAGNOSTICS_OIL LEAK Kodiak Power Solutions DIAGNOSTICS_OIL LEAK 212.50 None
Total Department 3100 Public Works 212.50
Total Fund 101 GENERAL FUND 212.50
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43150 ROYAL NORTH LS GENERATOR R Kodiak Power Solutions ROYAL NORTH LS GENERATOR REPAIRS 501.36 None
Total Department 9450 SEWER 501.36
Total Fund 602 SEWER 501.36
Total Vendor Kodiak Power Solutions:713.86
Vendor: Lake Elmo Repair
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-44040 PW _W4_F20 REPAIR/MAINT Lake Elmo Repair PW _W4_F20 REPAIR/MAINT 288.90 None
Total Department 3100 Public Works 288.90
Total Fund 101 GENERAL FUND 288.90
Total Vendor Lake Elmo Repair:288.90
Vendor: LARKIN HOFFMAN PUBLIC AFFAIRS, INC.
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-43150 LEGISLATIVE REPRESENTATION LARKIN HOFFMAN PUBLIC AFFA LEGISLATIVE REPRESENTATION THROUGH MA 5,000.00 None
Total Department 1320 Administration 5,000.00
Total Fund 101 GENERAL FUND 5,000.00
Total Vendor LARKIN HOFFMAN PUBLIC AFFAIRS, INC.:5,000.00
Vendor: LEE, JOHN DONALD
Fund: 101 GENERAL FUND
Department: 1110 Mayor & Council
101-1110-44300 BAND 2026 CITY CELEBRATION LEE, JOHN DONALD BAND FOR CITY CELEBRATION 2026 2,400.00 None
Total Department 1110 Mayor & Council 2,400.00
Total Fund 101 GENERAL FUND 2,400.00
Total Vendor LEE, JOHN DONALD:2,400.00
Vendor: LRS Portables LLC
Fund: 101 GENERAL FUND
Department: 5200 Parks & Recreation
07/02/2026 12:34 PM Page:13/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: LRS Portables LLC
Fund: 101 GENERAL FUND
Department: 5200 Parks & Recreation
101-5200-44120 PARKS PORTABLE RENTALS LRS Portables LLC PARKS PORTABLE RENTALS 1,425.00 None
Total Department 5200 Parks & Recreation 1,425.00
Total Fund 101 GENERAL FUND 1,425.00
Total Vendor LRS Portables LLC:1,425.00
Vendor: MAINSTREET DESIGNS INC
Fund: 101 GENERAL FUND
Department: 1110 Mayor & Council
101-1110-44300 PATRIOTIC BANNERS AND BRAC MAINSTREET DESIGNS INC PATRIOTIC BANNERS AND BRACKETS FOR LE 3,265.00 None
Total Department 1110 Mayor & Council 3,265.00
Total Fund 101 GENERAL FUND 3,265.00
Total Vendor MAINSTREET DESIGNS INC:3,265.00
Vendor: Martin Marietta Materials
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-42240 POTHOLE MIX Martin Marietta Materials POTHOLE MIX 300.12 None
101-3100-42240 POTHOLE MIX Martin Marietta Materials POTHOLE MIX 336.60 None
101-3100-42240 POTHOLE MIX Martin Marietta Materials POTHOLE MIX 92.91 None
101-3100-42240 POTHOLE MIX Martin Marietta Materials POTHOLE MIX 347.19 None
101-3100-42240 POTHOLE MIX Martin Marietta Materials POTHOLE MIX 234.72 None
101-3100-42240 POTHOLE MIX Martin Marietta Materials POTHOLE MIX 90.47 None
101-3100-42240 POTHOLE MIX Martin Marietta Materials POTHOLE MIX 335.78 None
Total Department 3100 Public Works 1,737.79
Total Fund 101 GENERAL FUND 1,737.79
Total Vendor Martin Marietta Materials:1,737.79
Vendor: Menards - Oakdale
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-42150 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 19.99 None
101-3100-42400 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 13.30 None
Total Department 3100 Public Works 33.29
Department: 5200 Parks & Recreation
101-5200-42150 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 37.97 None
101-5200-42210 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 181.44 None
101-5200-42210 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 74.97 None
101-5200-42400 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 13.29 None
101-5200-44030 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 100.00 None
101-5200-44040 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 11.99 None
Total Department 5200 Parks & Recreation 419.66
Total Fund 101 GENERAL FUND 452.95
Fund: 601 WATER
Department: 9400 WATER
601-9400-42210 MATERIALS/SUPPLIES_IRRIGAT Menards - Oakdale MATERIALS/SUPPLIES_IRRIGATION ON 5TH 58.61 None
07/02/2026 12:34 PM Page:14/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Menards - Oakdale
Fund: 601 WATER
Department: 9400 WATER
601-9400-42400 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 13.29 None
Total Department 9400 WATER 71.90
Total Fund 601 WATER 71.90
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-42400 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 13.30 None
Total Department 9450 SEWER 13.30
Total Fund 602 SEWER 13.30
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-42150 MATERIALS/SUPPLIES Menards - Oakdale MATERIALS/SUPPLIES 19.99 None
603-9500-42400 MATERIALS_MORTAR MIX Menards - Oakdale MATERIALS_PUTTY KNIFE 5.99 None
Total Department 9500 SURFACE WATER 25.98
Total Fund 603 STORMWATER 25.98
Total Vendor Menards - Oakdale:564.13
Vendor: MINNESOTA RECREATION & PARK ASSOC
Fund: 101 GENERAL FUND
Department: 5200 Parks & Recreation
101-5200-44370 CERT PLAYGROUND SAFETY INS MINNESOTA RECREATION & PAR CERT PLAYGROUND SAFETY INSPECTOR COUR 1,740.00 None
Total Department 5200 Parks & Recreation 1,740.00
Total Fund 101 GENERAL FUND 1,740.00
Total Vendor MINNESOTA RECREATION & PARK ASSOC:1,740.00
Vendor: MIRIAM BERGMARK
Fund: 601 WATER
Department: 0000 General
601-0000-11500 OVERPAYMENT MIRIAM BERGMARK UB refund for account: 01-00031181-00 100.00 None
Total Department 0000 General 100.00
Total Fund 601 WATER 100.00
Total Vendor MIRIAM BERGMARK:100.00
Vendor: MN Dept of Labor & Industry
Fund: 101 GENERAL FUND
Department: 0000 General
101-0000-20801 Q2 STATE SURCHARGE MN Dept of Labor & Industr QUARTERLY STATE SURCHARGE - BUILDING 7,732.31 None
Total Department 0000 General 7,732.31
Total Fund 101 GENERAL FUND 7,732.31
Total Vendor MN Dept of Labor & Industry:7,732.31
Vendor: MN Fire Service Cert Board
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-44370 AERIAL APPRATUS OPERATOR E MN Fire Service Cert Board AERIAL APPRATUS OPERATOR EXAM FEE IA,951.00 None
07/02/2026 12:34 PM Page:15/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: MN Fire Service Cert Board
Fund: 101 GENERAL FUND
Department: 2220 Fire
Total Department 2220 Fire 951.00
Total Fund 101 GENERAL FUND 951.00
Total Vendor MN Fire Service Cert Board:951.00
Vendor: MUTUAL OF OMAHA
Fund: 101 GENERAL FUND
Department: 0000 General
101-0000-21707 DENTAL INSURANCE PREM - JU MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 2,451.50 None
101-0000-21708 STD/LTD INSURANCE PREM - J MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 958.03 None
101-0000-21708 LIFE/AD&D INSUR PREM - JUL MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 1,015.40 None
101-0000-21718 VISION INSURANCE PREM - JU MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 130.44 None
Total Department 0000 General 4,555.37
Total Fund 101 GENERAL FUND 4,555.37
Total Vendor MUTUAL OF OMAHA:4,555.37
Vendor: Northland Bond Services
Fund: 323 2014A GO BONDS
Department: 7000 Debt Service
323-7000-46110 2014A GO Bond Interest Northland Bond Services 2014A GO Bond Interest 10,037.50 None
Total Department 7000 Debt Service 10,037.50
Total Fund 323 2014A GO BONDS 10,037.50
Fund: 326 2016A GO BONDS
Department: 7000 Debt Service
326-7000-46110 2016A GO Bond Interest Northland Bond Services 2016A GO BOND INTEREST 1,200.00 None
326-7000-46110 2016A GO BOND INTEREST Northland Bond Services 2016A GO BOND INTEREST 1,700.00 None
Total Department 7000 Debt Service 2,900.00
Total Fund 326 2016A GO BONDS 2,900.00
Fund: 327 2017A GO BONDS
Department: 7000 Debt Service
327-7000-46110 2017A GO BOND INTEREST Northland Bond Services 2017A GO BOND INTEREST 11,812.50 None
327-7000-46110 2017A GO Bond Interest Northland Bond Services 2017A GO BOND INTEREST 437.50 None
Total Department 7000 Debt Service 12,250.00
Total Fund 327 2017A GO BONDS 12,250.00
Fund: 601 WATER
Department: 9400 WATER
601-9400-46110 2014A GO Bond Interest Northland Bond Services 2014A GO Bond Interest 12,172.00 None
601-9400-46110 2017A GO Bond Interest Northland Bond Services 2017A GO BOND INTEREST 11,600.00 None
601-9400-46110 2016A GO BOND INTEREST Northland Bond Services 2016A GO BOND INTEREST 14,050.00 None
601-9400-46110 2015A GO Bond Interest Northland Bond Services 2015A GO BOND INTEREST 5,175.00 None
Total Department 9400 WATER 42,997.00
Total Fund 601 WATER 42,997.00
Fund: 602 SEWER
Department: 9450 SEWER
07/02/2026 12:34 PM Page:16/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Northland Bond Services
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-46110 2014A GO Bond Interest Northland Bond Services 2014A GO Bond Interest 3,953.00 None
602-9450-46110 2017A GO Bond Interest Northland Bond Services 2017A GO BOND INTEREST 18,993.75 None
602-9450-46110 2016A GO BOND INTEREST Northland Bond Services 2016A GO BOND INTEREST 3,750.00 None
602-9450-46110 2015A GO BOND INTEREST Northland Bond Services 2015A GO BOND INTEREST 1,500.00 None
Total Department 9450 SEWER 28,196.75
Total Fund 602 SEWER 28,196.75
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-46110 2017A GO Bond Interest Northland Bond Services 2017A GO BOND INTEREST 1,037.50 None
603-9500-46110 2016A GO BOND INTEREST Northland Bond Services 2016A GO BOND INTEREST 12,050.00 None
Total Department 9500 SURFACE WATER 13,087.50
Total Fund 603 STORMWATER 13,087.50
Total Vendor Northland Bond Services:109,468.75
Vendor: Nuss Truck & Equipment
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-44040 EQUIPEMENT REPAIR Nuss Truck & Equipment EQUIPEMENT REPAIR 42.19 None
101-3100-44041 MAC TRUCK REPAIRS Nuss Truck & Equipment MAC TRUCK REPAIRS 2,418.69 None
Total Department 3100 Public Works 2,460.88
Department: 5200 Parks & Recreation
101-5200-44040 EQUIPEMENT REPAIR Nuss Truck & Equipment EQUIPEMENT REPAIR 42.19 None
Total Department 5200 Parks & Recreation 42.19
Total Fund 101 GENERAL FUND 2,503.07
Total Vendor Nuss Truck & Equipment:2,503.07
Vendor: Performance Plus LLC
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-43050 ANNUAL MEDICAL PHYSICALS Performance Plus LLC ANNUAL MEDICAL PHYSICALS 11,711.00 None
101-2220-43050 NEW HIRE PHYSICAL - KP Performance Plus LLC NEW HIRE PHYSICAL - KP 479.00 None
Total Department 2220 Fire 12,190.00
Total Fund 101 GENERAL FUND 12,190.00
Total Vendor Performance Plus LLC:12,190.00
Vendor: PIONEER LANDSCAPING LLC
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-43150 STREETS - MOWING SERVICE PIONEER LANDSCAPING LLC MOWING SERVICE 1,846.06 None
Total Department 3100 Public Works 1,846.06
Department: 5200 Parks & Recreation
101-5200-43150 PARKS - MOWING SERVICE PIONEER LANDSCAPING LLC MOWING SERVICE 4,446.86 None
Total Department 5200 Parks & Recreation 4,446.86
Total Fund 101 GENERAL FUND 6,292.92
07/02/2026 12:34 PM Page:17/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: PIONEER LANDSCAPING LLC
Fund: 601 WATER
Department: 9400 WATER
601-9400-43150 WATER - MOWING SERVICE PIONEER LANDSCAPING LLC MOWING SERVICE 466.38 None
Total Department 9400 WATER 466.38
Total Fund 601 WATER 466.38
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43150 SEWER - MOWING SERVICE PIONEER LANDSCAPING LLC MOWING SERVICE 187.30 None
Total Department 9450 SEWER 187.30
Total Fund 602 SEWER 187.30
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-44013 CITY HALL - MOWING SERVICE PIONEER LANDSCAPING LLC MOWING SERVICE 122.38 None
Total Department 0000 General 122.38
Total Fund 703 CITY CENTER OPERATIONS (ISF)122.38
Total Vendor PIONEER LANDSCAPING LLC:7,068.98
Vendor: PollardWater
Fund: 601 WATER
Department: 9400 WATER
601-9400-42210 4" GAUGE 160 PSI & HYETT S PollardWater 4" GAUGE 160 PSI AND HYETT SEAL SIL @ 955.69 None
Total Department 9400 WATER 955.69
Total Fund 601 WATER 955.69
Total Vendor PollardWater:955.69
Vendor: Pomp's Tire Service Inc
Fund: 407 FIRE EQUIPMENT & PROJECT
Department: 2220 Fire
407-2220-44040 RESCUE 1 TIRE REPLACEMENT Pomp's Tire Service Inc RESCUE 1 TIRE REPLACEMENT 5,909.56 None
Total Department 2220 Fire 5,909.56
Total Fund 407 FIRE EQUIPMENT & PROJECT 5,909.56
Total Vendor Pomp's Tire Service Inc:5,909.56
Vendor: PreCise MRM LLC
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-43190 PRECISE FLEET MGMT SOFTWAR PreCise MRM LLC PRECISE FLEET MGMT SOFTWARE 220.00 None
Total Department 3100 Public Works 220.00
Total Fund 101 GENERAL FUND 220.00
Total Vendor PreCise MRM LLC:220.00
Vendor: Robert Thomas Homes
Fund: 803 ESCROW FUND
Department: 0000 General
803-0000-22900 ESCROW RELEASE - 10950 37T Robert Thomas Homes ESCROW RELEASE - 10950 37TH ST N - 20 10,000.00 None
803-0000-22900 ESCROW RELEASE - 10931 37T Robert Thomas Homes ESCROW RELEASE - 10931 37TH ST N - 20 10,000.00 None
07/02/2026 12:34 PM Page:18/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Robert Thomas Homes
Fund: 803 ESCROW FUND
Department: 0000 General
803-0000-22900 ESCROW RELEASE - 10973 37T Robert Thomas Homes ESCROW RELEASE - 10973 37TH ST N - 20 10,000.00 None
Total Department 0000 General 30,000.00
Total Fund 803 ESCROW FUND 30,000.00
Total Vendor Robert Thomas Homes:30,000.00
Vendor: Safebuilt LLC
Fund: 101 GENERAL FUND
Department: 2400 Building Inspection
101-2400-43150 INSPECTOR CONTRACT SERVICE Safebuilt LLC JUNE INVOICE 26 - BLDG INSPECTION SVC 812.50 None
Total Department 2400 Building Inspection 812.50
Total Fund 101 GENERAL FUND 812.50
Total Vendor Safebuilt LLC:812.50
Vendor: SALSBURY INDUSTRIES
Fund: 407 FIRE EQUIPMENT & PROJECT
Department: 2220 Fire
407-2220-42400 CAPTAINS DORM LOCKERS SALSBURY INDUSTRIES CAPTAINS DORM LOCKERS 2,800.98 None
Total Department 2220 Fire 2,800.98
Total Fund 407 FIRE EQUIPMENT & PROJECT 2,800.98
Total Vendor SALSBURY INDUSTRIES:2,800.98
Vendor: Schindler Elevator Corporation
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-44040 ANNUAL ELEVATOR MAINTENANC Schindler Elevator Corpora ANNUAL ELEVATOR MAINTENANCE AND SERVI 3,287.02 None
Total Department 0000 General 3,287.02
Total Fund 703 CITY CENTER OPERATIONS (ISF)3,287.02
Total Vendor Schindler Elevator Corporation:3,287.02
Vendor: Schlenner Wenner & Co
Fund: 101 GENERAL FUND
Department: 1520 Finance
101-1520-43010 2025 AUDIT & YEAR END ASSI Schlenner Wenner & Co 2025 AUDIT & YEAR END ASSISTANCE 5,000.00 None
Total Department 1520 Finance 5,000.00
Total Fund 101 GENERAL FUND 5,000.00
Fund: 601 WATER
Department: 9400 WATER
601-9400-43010 2025 AUDIT & YEAR END ASSI Schlenner Wenner & Co 2025 AUDIT & YEAR END ASSISTANCE 5,000.00 None
Total Department 9400 WATER 5,000.00
Total Fund 601 WATER 5,000.00
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43010 2025 AUDIT & YEAR END ASSI Schlenner Wenner & Co 2025 AUDIT & YEAR END ASSISTANCE 5,000.00 None
07/02/2026 12:34 PM Page:19/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Schlenner Wenner & Co
Fund: 602 SEWER
Department: 9450 SEWER
Total Department 9450 SEWER 5,000.00
Total Fund 602 SEWER 5,000.00
Fund: 603 STORMWATER
Department: 9500 SURFACE WATER
603-9500-43010 2025 AUDIT & YEAR END ASSI Schlenner Wenner & Co 2025 AUDIT & YEAR END ASSISTANCE 5,000.00 None
Total Department 9500 SURFACE WATER 5,000.00
Total Fund 603 STORMWATER 5,000.00
Total Vendor Schlenner Wenner & Co:20,000.00
Vendor: Schwickert's Tecta America
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43150 LISBON LIFT STATION AIR CI Schwickert's Tecta America LISBON LIFT STATION AIR CIRCULATION P 830.00 None
Total Department 9450 SEWER 830.00
Total Fund 602 SEWER 830.00
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-44040 CITY HALL _ AIR CONDITIONE Schwickert's Tecta America CITY HALL _ AIR CONDITIONER REPAIR 1,480.00 None
703-0000-44040 CITY HALL _ AIR CONDITIONE Schwickert's Tecta America CITY HALL _ AIR CONDITIONER MAINT 4,673.00 None
703-0000-44040 CITY HALL _ CO-NO2 SENSOR Schwickert's Tecta America CITY HALL _ CO-NO2 SENSOR TESTING 230.00 None
Total Department 0000 General 6,383.00
Total Fund 703 CITY CENTER OPERATIONS (ISF)6,383.00
Total Vendor Schwickert's Tecta America:7,213.00
Vendor: Shred Right
Fund: 101 GENERAL FUND
Department: 1320 Administration
101-1320-43150 Monthly Shredding Services Shred Right SHREDDING SERVICES 54.45 None
Total Department 1320 Administration 54.45
Total Fund 101 GENERAL FUND 54.45
Total Vendor Shred Right:54.45
Vendor: Stantec Consulting Services Inc
Fund: 101 GENERAL FUND
Department: 8142 SALE OF OLD FIRE HALL
101-8142-43150-8142 ENVIRONMENTAL TESTING Stantec Consulting Service OLD FIRE HALL - SOIL TESTING 3,218.51 None
Total Department 8142 SALE OF OLD FIRE HALL 3,218.51
Total Fund 101 GENERAL FUND 3,218.51
Fund: 601 WATER
Department: 8126 SOUTH AREA PROD WELLS/TREATMT
601-8126-43150-8126 SOUTH AREA PROD WELLS/TREA Stantec Consulting Service SOUTH AREA PROD WELLS/TREATMT SVCS 212.00 None
Total Department 8126 SOUTH AREA PROD WELLS/TREATMT 212.00
Department: 8141 TEST WELL 6/ SOUTH TREATMENT -NONREIMBUR
07/02/2026 12:34 PM Page:20/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Stantec Consulting Services Inc
Fund: 601 WATER
Department: 8141 TEST WELL 6/ SOUTH TREATMENT -NONREIMBUR
601-8141-43030-8141 TEST WELL 6 ENGINEERING Stantec Consulting Service SOUTH AREA PROD WELLS/TREATMT SVCS 5,619.38 None
Total Department 8141 TEST WELL 6/ SOUTH TREATMENT -NONREIMBUR 5,619.38
Total Fund 601 WATER 5,831.38
Total Vendor Stantec Consulting Services Inc:9,049.89
Vendor: T-Mobile
Fund: 101 GENERAL FUND
Department: 2220 Fire
101-2220-43210 CAD DATA / CELL T-Mobile CAD DATA / CELL 390.12 None
Total Department 2220 Fire 390.12
Total Fund 101 GENERAL FUND 390.12
Total Vendor T-Mobile:390.12
Vendor: Traut Companies
Fund: 601 WATER
Department: 8141 TEST WELL 6/ SOUTH TREATMENT -NONREIMBUR
601-8141-43150-8141 SOUTH PFAS WTP & WELLS-TES Traut Companies SOUTH PFAS WTP & WELLS-TEST WELL 6 138,141.40 None
Total Department 8141 TEST WELL 6/ SOUTH TREATMENT -NONREIMBUR 138,141.40
Total Fund 601 WATER 138,141.40
Total Vendor Traut Companies:138,141.40
Vendor: Tri State Bobcat
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-44040 E5 SKID STEER HYDRAULIC RE Tri State Bobcat E5 SKID STEER HYDRAULIC REPAIR 497.74 None
101-3100-44130 RENTAL Tri State Bobcat RENTAL 488.75 None
Total Department 3100 Public Works 986.49
Total Fund 101 GENERAL FUND 986.49
Total Vendor Tri State Bobcat:986.49
Vendor: Twin Town Plumbing
Fund: 601 WATER
Department: 8140 CSAH 14 (17-LAYTON) WATERMAIN IMPROVE
601-8140-44300-8140 WATER MAIN WORK Twin Town Plumbing WATER MAIN WORK 1,441.00 None
Total Department 8140 CSAH 14 (17-LAYTON) WATERMAIN IMPROVE 1,441.00
Total Fund 601 WATER 1,441.00
Total Vendor Twin Town Plumbing:1,441.00
Vendor: Uline
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-45700 IT STORAGE SHELVING AND BI Uline IT STORAGE SHELVING AND BINS 474.58 None
Total Department 0000 General 474.58
Total Fund 703 CITY CENTER OPERATIONS (ISF)474.58
07/02/2026 12:34 PM Page:21/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Uline
Total Vendor Uline:474.58
Vendor: USS Minnesota One MT LLC
Fund: 601 WATER
Department: 9400 WATER
601-9400-43810 US SOLAR SUNSCRPTN-MNTHLY USS Minnesota One MT LLC USSOLR - MONTHLY - MAY STMT 1,954.78 None
Total Department 9400 WATER 1,954.78
Total Fund 601 WATER 1,954.78
Total Vendor USS Minnesota One MT LLC:1,954.78
Vendor: Washington County - WACO Public Works Dept
Fund: 440 TH36-LAKE ELMO AVE IMPROVEMENT
Department: 8112 TH36-Lake Elmo Ave Improvement
440-8112-45900-8112 TH36-CSAH 17 LAKE ELMO AVE Washington County - WACO P TH36-CSAH 17 LAKE ELMO AVE IMP #18223 243,400.00 None
Total Department 8112 TH36-Lake Elmo Ave Improvement 243,400.00
Total Fund 440 TH36-LAKE ELMO AVE IMPROVEMENT 243,400.00
Fund: 601 WATER
Department: 9400 WATER
601-9400-43150 CSAH 13 FINAL BILLING - IN Washington County - WACO P CSAH 13 FINAL BILLING - INV 236215 - 2,742.71 None
Total Department 9400 WATER 2,742.71
Total Fund 601 WATER 2,742.71
Total Vendor Washington County - WACO Public Works Dept:246,142.71
Vendor: Washington County Prop Records/Taxpayer Svcs
Fund: 101 GENERAL FUND
Department: 1520 Finance
101-1520-44300 99.099.99.00.0792 Washington County Prop Rec 2026 PROPERTY TAXES - DAVID SEE LEASE 3,552.12 None
101-1520-44300 99.099.99.00.0795 Washington County Prop Rec 2026 PROPERTY TAXES - DAVID SEE LEASE 4,055.40 None
Total Department 1520 Finance 7,607.52
Total Fund 101 GENERAL FUND 7,607.52
Fund: 601 WATER
Department: 9400 WATER
601-9400-44300 99.099.99.00.0796 Washington County Prop Rec 2026 PROPERTY TAXES - DAVID SEE LEASE 11,409.12 None
Total Department 9400 WATER 11,409.12
Total Fund 601 WATER 11,409.12
Total Vendor Washington County Prop Records/Taxpayer Svcs:19,016.64
Vendor: White Bear Locksmith
Fund: 601 WATER
Department: 9400 WATER
601-9400-43150 LOCK REPAIR - SERVICE WATE White Bear Locksmith LOCK REPAIR - SERVICE WATER TOWER #4 157.00 None
Total Department 9400 WATER 157.00
Total Fund 601 WATER 157.00
Total Vendor White Bear Locksmith:157.00
Vendor: Xcel Energy
07/02/2026 12:34 PM Page:22/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
Vendor: Xcel Energy
Fund: 101 GENERAL FUND
Department: 3100 Public Works
101-3100-43811 3014 JAMLEY AVE N - STREET Xcel Energy 51-4572945-7 32.31 None
101-3100-43811 51-0012718950-5 - 179 KEAT Xcel Energy 51-0012718950-5 83.24 None
101-3100-43811 51-0013811065-2 - 689 INWO Xcel Energy 51-0013811065-2 57.33 None
Total Department 3100 Public Works 172.88
Total Fund 101 GENERAL FUND 172.88
Fund: 601 WATER
Department: 9400 WATER
601-9400-43810 51-0013315481-4 - 4525 LIL Xcel Energy 51-0013315481-4 5,629.29 None
601-9400-43810 51-0014032224-4 - Wat Towe Xcel Energy 51-0014032224-4 281.80 None
601-9400-43810 51-0014032232-4 - 3418 LA Xcel Energy 51-0014032232-4 18.60 None
601-9400-43810 2576 INWOOD BOOSTER STATIO Xcel Energy 51-0011431737-7 2,591.79 None
Total Department 9400 WATER 8,521.48
Total Fund 601 WATER 8,521.48
Fund: 602 SEWER
Department: 9450 SEWER
602-9450-43810 9956 TAPESTRY RD LIFT STAT Xcel Energy 51-0014133900-7 135.19 None
602-9450-43810 10845 32ND ST LIFT STATION Xcel Energy 51-0013680215-5 214.32 None
Total Department 9450 SEWER 349.51
Total Fund 602 SEWER 349.51
Fund: 703 CITY CENTER OPERATIONS (ISF)
Department: 0000 General
703-0000-43810 ELEC UTIL 3880 LAVERNE AVE Xcel Energy 51-0013935424-9 3,577.39 None
Total Department 0000 General 3,577.39
Total Fund 703 CITY CENTER OPERATIONS (ISF)3,577.39
Total Vendor Xcel Energy:12,621.26
07/02/2026 12:34 PM Page:23/24
INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO
GL Number
Invoice
Line Desc Vendor Name
Invoice
Description Amount
Check
Number
--- TOTALS BY FUND ---
101 GENERAL FUND 135,083.28
209 TREE FUND 1,019.00
323 2014A GO BONDS 10,037.50
326 2016A GO BONDS 2,900.00
327 2017A GO BONDS 12,250.00
407 FIRE EQUIPMENT & PROJECT 15,817.48
410 VEHICLE REPLACEMENT 1,008.00
440 TH36-LAKE ELMO AVE IMPROVEMENT 243,400.00
451 2026 STREET & UTILITY IMPROVEMENTS 4,747.50
601 WATER 234,352.55
602 SEWER 40,863.57
603 STORMWATER 19,633.46
703 CITY CENTER OPERATIONS (ISF)18,990.54
803 ESCROW FUND 46,612.53
Total For All Funds:786,715.41
07/02/2026 12:34 PM Page:24/24
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: City Clerk Julie Johnson
AGENDA ITEM: Appoint 2026 Election Judges
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
Pursuant to Section 204B.21 of the Minnesota Election Laws,election judges shall be appointed by the
municipality.The appointments shall be made at least 25 days before the election at which the judges will serve.
The election judges are required to receive compensation equal to at least the prevailing Minnesota minimum
wage for each hour spent carrying out duties at the polling place and attending training.
ISSUE BEFORE COUNCIL: Should the Council approve the recommended list of judges?
PROPOSAL DETAILS/ANALYSIS:
Staff is requesting the individuals listed on the attached Election Judges List be appointed to serve as election
judges for the August 11,2026 Primary Election and November 3,2026 General and City Election at the hourly
rate of $14.00 for election judges and $15.00 for head election judges.
The attached list of Election Judges is not conclusive and may be amended as needed by the City Clerk up to 25
days prior to the Primary and General elections.
FISCAL IMPACT: Election judge wages have been included in the 2026 budget.
OPTIONS: Approve the list as presented, or amend and approve the list.
RECOMMENDATION: (if pulled from Consent)
“Motion to adopt Resolution 2026-050 Appointing 2026 Election Judges”
ATTACHMENTS:
Resolution 2026-050
Election list
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2026-050
A RESOLUTION APPOINTING ELECTION JUDGES FOR THE
2026 PRIMARY AND GENERAL ELECTION
WHEREAS, pursuant to Section 2014B.21 of the Minnesota Election Laws, Election judges
shall be appointed by the municipality; and
WHEREAS, the appointments shall be made at least 25 days before the election at which
the judges will serve; and
WHEREAS, election judges and election judge trainees shall receive at least the prevailing
Minnesota minimum wage for each hour spent carrying out duties at the polling place and attending
training.
WHEREAS, the City of Lake Elmo is dependent upon and appreciative of citizen
assistance for its election process and,
WHEREAS, the Lake Elmo 2026 Primary and General Election Judge appointments
consist of individuals recommended by the City Clerk with the approval by majority of the City
Council and,
WHEREAS, the list of Election Judges may be amended by the City Clerk as needed up to
25 days prior to the Primary or General Election.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo
that the individuals listed on the attached Election Judges List are appointed to serve as election
judges for the August 11, 2026 Primary Election and the November 3, 2026 General and City
Election at the hourly rate of $14.00 for election judges and $15.00 for head election judges.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF LAKE ELMO THIS 7th DAY
OF JULY, 2026.
ATTEST:
By:
Charles Cadenhead,
Mayor
Julie Johnson,
City Clerk
(SEAL)
Linda Wagner
Mark D Hartmann
Dan Pommerenke
Judy Sell
Kim Learn
Elmer Kasperson
Jamie Campbell
Michael Burress
Jan Kiefner
Hazel Vetterick
Becky Fremont
James Altier
Janice Roth
Barb Duerr
Ken Gildner
Michelle East
Barb Diederichs
Pat Lovelette
John Krueger
Shane Zako
Barb Diederichs
Mark Sandstrom
Ella Menendez
Annette Kasperson
Barbara Williams
Dan Beck
Diane Hinz
Shannon McMahon
Bob Callahan
Sally Altier
Marilyn JoAnn Ward
David Lilja
Charles Dennis
Neil Contardi
Joseph Ward
Mark Wiederich
202 6 Election Judges
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: Dustin Kalis, Fire Chief and Jennifer Doyle, Administrative Services Director
AGENDA ITEM: Full Time Firefighter Hire
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☒ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
One of our Full-Time Firefighters was promoted to Captain, vacating a full-time Firefighter position.
ISSUE BEFORE COUNCIL:
Should the council approve the hire of Andrew Lilly as a full-time Firefighter.
PROPOSAL DETAILS/ANALYSIS:
Interviews to fill the FT Firefighter position took place on June 22nd-23rd. The interview panel consisted of the Fire Chief,
Assistant Fire Chief, Administrative Assistant PW/Fire and the Administrative Services Director and six applicants were
interviewed. After careful consideration, the recommendation of the panel is to hire Andrew Lilly who has served as a
Paid-On-Call Firefighter with Lake Elmo since 2023 at a Grade 5, Step 2 and vacation accrual at 2+ years of government
service.
FISCAL IMPACT:
N/A- The position is in the 2026 budget.
OPTIONS:
Approve the hire of Andrew Lilly to full-time Firefighter.
Do not approve the hire of Andrew Lilly to full-time Firefighter.
RECOMMENDATION: (if pulled from Consent)
“Motion to approve hiring Andrew Lilly to the full-time Firefighter position at Grade 5, Step 2 and vacation accrual
rate of 2+ years of service.”
ATTACHMENTS:
None.
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: Dustin Kalis, Fire Chief
AGENDA ITEM: Donation to the Fire Department from DQ
CORE STRATEGIES:
☒ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
State statute requires that cities accept donations via resolution.
ISSUE BEFORE COUNCIL:
Should Council accept the donation of $491.00?
PROPOSAL DETAILS/ANALYSIS:
BKT Operations (DQ Grill & Chill, Lake Elmo) presented the City with a donation of $491.00 for the Lake Elmo
Fire Department from proceeds from a fundraiser on June 3, 2026. Included in your packet for acceptance as
part of the Consent Agenda is a resolution for the Council to officially accept the donation.
FISCAL IMPACT:
There is no impact to the 2026 budget as these funds were not anticipated.
OPTIONS:
1)Approve Resolution
2)Amend and then Approve Resolution
3)Do not accept the donation
RECOMMENDATION: (if pulled from Consent)
Motion to approve Resolution 2026-045
ATTACHMENTS:
•Resolution 2026-045
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2026-045
A RESOLUTION ACCEPTING DONATED FUNDS FROM
BKT OPERATIONS (DQ GRILL & CHILL, LAKE ELMO)
WHEREAS, Minnesota Statues Section 465.03 provides that donations to the City
be accepted by resolution of the City Council; and
WHEREAS, BKT Operations (DQ Grill & Chill, Lake Elmo) had proposed
contributing $491.00 to the Lake Elmo Fire Department from proceeds from a fundraiser;
and
WHEREAS, the City Council of the City of Lake Elmo agrees that said
contribution would be of benefit to the citizens of Lake Elmo; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Lake Elmo, Minnesota, does hereby acknowledges and agrees to accept said donation of
$491.00 from BKT Operations (DQ Grill & Chill, Lake Elmo) on behalf of the citizens of
Lake Elmo.
APPROVED by the Lake Elmo City Council on this 7th day of July, 2026.
By: __________________________
Charles Cadenhead
Mayor
ATTEST:
________________________________
City Clerk
STAFF REPORT
DATE: July 7, 2026
REGULAR
TO: Mayor and Councilmembers
FROM: Nathan Fuerst, Consulting Planner
REVIEWED BY: Jason Stopa, Community Development Director
Sarah Sonsalla, City Attorney
AGENDA ITEM: Lake Elmo Elementary Development Agreement – First Amendment
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance
☐ Managed Growth
☒ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
Since final approvals of the Lake Elmo Elementary project in February of 2025, the Stillwater School District has
been working towards their goal of having the school project completed in time for the 2026-2027 school year.
Construction has progressed on site and the school district now feels confident that they will have the school
building and site improvements largely completed by the end of July. As such, the school district is hoping to
allow staff to enter and begin use of the facility in late July or early August to prepare for the start of school.
The City’s standard form of Development Agreement does not permit any certificates of occupancy (including
temporary) until the Subdivision Improvements (as defined in the agreement, which include most of the physical
site improvements) are completed and accepted by the City. City staff expect that while the school building will
be complete and site improvements will be satisfactorily completed for occupancy, the City may not be in a
position to consider the Subdivision Improvements complete and may therefore be unable to allow occupancy
of the building on the School District’s preferred timeline.
The Stillwater School District has therefore requested an amendment to the Development Agreement to allow
for the City to issue a temporary certificate of occupancy while site improvements and punch list items are
wrapped up.
ISSUE BEFORE COUNCIL:
Should the City amend the Development Agreement for the Lake Elmo Elementary site to allow a temporary
certificate of occupancy to be granted?
PROPOSAL DETAILS/ANALYSIS:
The City and School teams have resumed regular coordination meetings to discuss building and site
improvement progress. At this time, City staff are confident that the site improvements will be generally
complete, but do feel that items such as final landscaping acceptance and punch list items like as built submittal
could go into late summer and early fall before a Certificate of Occupancy could be granted under the
Development Agreement as presently written.
The School District construction team has generally been proactive on scheduling building and fire inspections.
School District staff have also communicated they understand that all safety inspections, such as for building and
fire codes, must be conducted and relevant final inspections passed before a temporary occupancy could be
issued.
Proposed Amendment:
Section 22.C of the 10th and Lake Elmo School Addition Development Agreement would be modified to allow for
a temporary certificate of occupancy to be issued by the City of Lake Elmo provided satisfactory progress has
been made on the Subdivision Improvements.
FISCAL IMPACT:
There are no anticipated costs to the City for this request at this time.
OPTIONS:
Approve or deny the proposed amendment.
RECOMMENDATION:
City Staff recommend approval of the proposed amendment to the 10th and Lake Elmo School Addition
Development Agreement.
Approval is recommended on the consent agenda or through the following example motion:
“Move to adopt Resolution 2026-046 approving the first amendment to the Development Agreement for the
10th and Lake Elmo Addition project with the findings and conditions therein.”
ATTACHMENTS:
1. Letter request from Stillwater Area Schools
2. Resolution 2026-046
3. First Amendment to 10th and Lake Elmo School Addition Development Agreement
4. Development Agreement – 10th and Lake Elmo School Addition
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2026-046
A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT
AGREEMENT FOR 10TH AND LAKE ELMO SCHOOL ADDITION
WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing
under the laws of the State of Minnesota; and
WHEREAS, Stillwater Area Schools, Independent School District 834, (the “Applicant”)
has previously submitted an application to the City of Lake Elmo (the “City”) for a final plat for
10th and Lake Elmo School Addition; and
WHEREAS, the Lake Elmo City Council adopted Resolution No 2025-015 on February
4th 2025 approving the final plat for 10th and Lake Elmo School Addition; and
WHEREAS, the Lake Elmo City Council adopted Resolution No 2025-031 on March 18th
2025 approving the Development Agreement for 10th and Lake Elmo School Addition; and
WHEREAS, the Applicant and the City have agreed to amend the Development
Agreement for 10th and Lake Elmo School Addition a first time in order to allow a temporary
certificate of occupancy to be issued by the City prior to City approval and acceptance of the
Subdivision Improvements as described in the staff report to City Council dated July 7, 2026; and
NOW, THEREFORE, based on the information received, the City Council of the City of
Lake Elmo does hereby approve the First Amendment to Development Agreement for 10th and
Lake Elmo School Addition, authorize the City Attorney to draft the First Amendment to the
Development Agreement to include provisions to allow issuance of a temporary certificate of
occupancy prior to City approval and acceptance of the Subdivision Improvements as proposed in
the staff report dated July 7, 2026, and authorize the Mayor and City Clerk to execute the First
Amendment to Development Agreement.
Passed and duly adopted this ____ day of _________2026 by the City Council of the City of
Lake Elmo, Minnesota.
__________________________________
Charles Cadenhead, Mayor
ATTEST:
________________________________
Julie Johnson, City Clerk
1
LA515\147\1102601.v1
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (10TH AND LAKE ELMO
SCHOOL ADDITION)
THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “First
Amendment”) is entered into this ___ day of _____________, 2026, by Independent School
District No. 834, Stillwater Area Public Schools, a Minnesota body corporate and politic (the
“Developer”) and the City of Lake Elmo, a Minnesota municipal corporation (the “City”).
R E C I T A L S
WHEREAS, the City and the Developer entered into that certain Development Agreement
on March 18, 2025, recorded as Document No. ________ (the “Agreement”), relating to the
development of Lake Elmo Elementary School, the property of which is legally described on the
attached Exhibit A; and
WHEREAS, the Developer has requested that the Agreement be amended to allow for the
issuance of a temporary certificate of occupancy for the start of school operations, including full
access to the building and site by the Developer’s staff and students prior to completion and City
acceptance of all Subdivision Improvements; and
WHEREAS, the City and the Developer desire to amend the Agreement to include
provisions to allow a temporary certificate of occupancy to be issued prior to completion and City
acceptance of all Subdivision Improvements; and
NOW, THEREFORE, in consideration of the foregoing and the covenants and obligations
contained in this Amendment and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is agreed by and between the City and the
Developer as follows:
1. Section 22 of the Development Agreement shall be deleted in its entirety and be
amended to read as follows:
22. BUILDING PERMITS/CERTIFICATES OF OCCUPANCY.
A. The City will issue building permits for buildings provided that the final plat has been
recorded with Washington County and all required fees are paid by the Developer.
B. Before the City issues any building permits, the Developer shall install wetland buffer
monuments in accordance with the City’s zoning ordinance. The monument design shall
2
LA515\147\1102601.v1
be approved by the City Planning Department.
C. The City will not schedule a final building inspection or issue a permanent certificate of
occupancy for the building to be constructed until all Subdivision Improvements have been
installed and have been installed by the Developer and are accepted by the City in
accordance with Section 19 of this Agreement. The City may issue a temporary certificate
of occupancy for the building prior to the Subdivision Improvements being installed by the
Developer and accepted by the City. This is provided that all safety inspections, such as
for building and fire codes have been conducted by the City and passed by the Developer.
D. Breach of the terms of this Agreement by the Developer, including nonpayment of billings
from the City, shall be grounds for denial of building permits, certificates of occupancy,
and withholding of other permits, inspection or actions and the halting of a ll work on the
Property.
E. If the City issues a building permit prior to the acceptance of the Subdivision Improvements
by the City, the Developer assumes all liability and costs resulting in delays in completion
of the Subdivision Improvements and damage to the Subdivision Improvements caused by
the City, the Developer, the Developer’s contractors, subcontractors, materialmen,
employees, agents, or any third parties.
2. Amendment Controls; Ratification and Affirmation. In the event that the terms of
this Amendment and the Agreement are held to be inconsistent, the terms of this Amendment shall
control. The parties each agree and warrant that, in all other respects, the Agreement is
unmodified, in full force and effect, and each party hereby ratifies and affirms the Agreement and
any terms contained therein not otherwise modified by this Amendment.
3. Counterparts. This Amendment may be executed in counterparts, each of which
shall be deemed an original but all of which, taken together, shall constitute one and the same
instrument. Each party may rely upon facsimile or electronic mail counterparts of this Amendment
signed by the other party with the same effect as if such party had received an original counterpart
signed by such other party.
3
LA515\147\1102601.v1
IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date
first written above.
DEVELOPER:
Independent School District No. 834,
Stillwater Area Public Schools
By: _____________________________________
Its: Board Chair
By: ____________________________________
Its: Board Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this ____ day of ________________,
2026, by __________________ and ________________ the Board Chair and Board Clerk,
respectively, of Independent School District No. 834, Stillwater Area Public Schools, a Minnesota
body corporate and politic, on behalf of the district.
________________________________________
Notary Public
4
LA515\147\1102601.v1
CITY:
City of Lake Elmo
By:
Charles Cadenhead
Its: Mayor
By:
Julie Johnson
Its: City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this _____ day of __________________,
2026, by Charles Cadenhead and Julie Johnson, the Mayor and City Clerk, respectively, of the
City of Lake Elmo, a Minnesota municipal corporation on behalf of the City.
________________________________________
Notary Public
This instrument was drafted by:
Kennedy & Graven, Chartered (SJS)
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
5
LA515\147\1102601.v1
EXHIBIT A
Legal Description of the Property
Lot 1, Block 1, 10TH AND LAKE ELMO SCHOOL ADDITION, according to the recorded plat
thereof, County of Washington, State of Minnesota.
Abstract Property
STAFF REPORT
DATE: July 7, 2026
REGULAR
TO: Mayor and Councilmembers
FROM: Nathan Fuerst, Consulting Planner
REVIEWED BY: Jason Stopa, Community Development Director
Sarah Sonsalla, City Attorney
AGENDA ITEM: Lake Elmo Elementary Development Agreement – First Amendment
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance
☐ Managed Growth
☒ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
Since final approvals of the Oak Land Middle School Expansion project in October of 2024, the Stillwater School
District has been working towards their goal of having the school expansion project completed in time for the
2026-2027 school year. The project included the addition of a new gymnasium and classroom wings. While the
new gymnasium and related remodeling are expected to be complete prior to the school year start, the new
classroom wings were delayed due to a steel supply contractor going out of business. The School District expects
to have the building partially complete when the school year begins but may not be fully completed with certain
areas of the buildings. The school district is hoping to allow staff to enter and begin use of the completed areas
of the school building in late July or early August to prepare for the start of school.
The City’s standard form of Site Improvement Agreement does not permit any certificates of occupancy
(including temporary) until the Subdivision Improvements (as defined in the agreement, which include most of
the physical site improvements) are completed and accepted by the City. City staff expect that while most areas
of the school building will be complete and site improvements will be satisfactorily completed for occupancy,
the City may not be in a position to consider the Subdivision Improvements complete and may therefore be
unable to allow occupancy of the building on the School District’s preferred timeline.
The Stillwater School District has therefore requested an amendment to the Site Improvement Agreement to
allow for the City to issue a temporary certificate of occupancy while site improvements and punch list items are
wrapped up.
ISSUE BEFORE COUNCIL:
Should the City amend the Site Improvement Agreement for the Oak Land Elementary site to allow a temporary
certificate of occupancy to be granted?
PROPOSAL DETAILS/ANALYSIS:
The City and School teams have resumed regular coordination meetings to discuss building and site
improvement progress. At this time, City staff are confident that the site improvements will be generally
complete, but do feel that items such as final landscaping acceptance and punch list items like as built submittal
could go into late summer and early fall before a Certificate of Occupancy could be granted under the Site
Improvement Agreement as presently written.
The School District construction team has generally been proactive on scheduling building and fire inspections.
School District staff have also communicated they understand that all safety inspections, such as for building and
fire codes, must be conducted and relevant final inspections passed before a temporary occupancy could be
issued.
The City may issue separate certificates of occupancy for the different areas of the building under construction.
This would allow for the School District to maintain use of the completed portions of the building while
restricting access to the areas under construction while work is ongoing. City inspection staff have identified key
requirements such as ingress and egress, signage, and related considerations to manage life and safety concerns
while the building work continues.
Proposed Amendment:
Section 21.B of the Oak-Land Middle School Addition Site Improvement Agreement would be modified to allow
for a temporary certificate of occupancy to be issued by the City of Lake Elmo provided satisfactory progress has
been made on the Site Improvements.
The proposed amendment is to allow site improvements outside of the building to be completed to an
acceptable level and will not impact any building or fire code requirements. Requirements of the building and
fire codes must still be met in full prior to any temporary or full occupancy.
FISCAL IMPACT:
There are no anticipated costs to the City for this request at this time.
OPTIONS:
Approve or deny the proposed amendment.
RECOMMENDATION:
City Staff recommend approval of the proposed amendment to the 10th and Lake Elmo School Addition
Development Agreement.
Approval of this item on the consent agenda or through the following example motion is recommended:
“Move to adopt Resolution 2026-047 approving the first amendment to the Site Improvement Agreement for
the Oak-Land Middle School Addition project with the findings and conditions therein.”
ATTACHMENTS:
1. Letter request from Stillwater Area Schools
2. Resolution 2026-047
3. Site Improvement Agreement First Amendment – Oak Land Middle School Addition
4. Site Improvement Agreement – Oak-Land Middle School Addition
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2026-047
A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE DEVELOPMENT
AGREEMENT FOR OAK-LAND MIDDLE SCHOOL ADDITION
WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing
under the laws of the State of Minnesota; and
WHEREAS, Stillwater Area Schools, Independent School District 834, (the “Applicant”)
has previously submitted an application to the City of Lake Elmo (the “City”) for a minor
subdivision for Oak-Land Middle School Addition; and
WHEREAS, the Lake Elmo City Council adopted Resolution No 2024-105 on October
1st, 2024 approving the minor subdivision for Oak-Land Middle School Addition; and
WHEREAS, the Applicant and the City have agreed to amend the Site Improvement
Agreement for Oak-Land Middle School Addition a first time in order to allow a temporary
certificate of occupancy to be issued by the City prior to City approval and acceptance of the Site
Improvements as described in the staff report to City Council dated July 7, 2026; and
NOW, THEREFORE, based on the information received, the City Council of the City of
Lake Elmo does hereby approve the First Amendment to the Site Improvement Agreement for
Oak-Land Middle School Addition, authorize the City Attorney to draft the First Amendment to
the Site Improvement Agreement to include provisions to allow issuance of a temporary certificate
of occupancy prior to City approval and acceptance of the Site Improvements as proposed in the
staff report dated July 7, 2026, and authorize the Mayor and City Clerk to execute the First
Amendment to Site Improvement Agreement.
Passed and duly adopted this ____ day of _________2026 by the City Council of the City of
Lake Elmo, Minnesota.
__________________________________
Charles Cadenhead, Mayor
ATTEST:
________________________________
Julie Johnson, City Clerk
1
LA515\145\1102735.v2
FIRST AMENDMENT TO SITE IMPROVEMENT AGREEMENT (OAK-LAND
MIDDLE SCHOOL ADDITION)
THIS FIRST AMENDMENT TO SITE IMPROVEMENT AGREEMENT (this “First
Amendment”) is entered into this ___ day of _____________, 2026, by Independent School
District No. 834, Stillwater Area Public Schools, a Minnesota body corporate and politic (the
“Developer”) and the City of Lake Elmo, a Minnesota municipal corporation (the “City”).
R E C I T A L S
WHEREAS, the City and the Developer entered into that certain Site Improvement
Agreement on April 25, 2025, recorded as Document No. ________ (the “Agreement”), relating
to the redevelopment and expansion of Oak-Land Middle School, the property of which is legally
described on the attached Exhibit A; and
WHEREAS, the Developer has requested that the Agreement be amended to allow for the
issuance of a temporary certificate of occupancy for the start of school operations for certain
portions of the expansion project, including access to the new gymnasium addition by the
Developer’s staff and students prior to completion of the new classroom addition and City
acceptance of all Improvements; and
WHEREAS, the City and the Developer desire to amend the Agreement to include
provisions to allow one or more temporary certificates of occupancy for various portions of the
phased expansion project to be issued prior to completion of all portions of the expansion project
and City acceptance of all Improvements; and
NOW, THEREFORE, in consideration of the foregoing and the covenants and obligations
contained in this Amendment and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is agreed by and between the City and the
Developer as follows:
1. Section 21 of the Site Improvement Agreement shall be deleted in its entirety and
be amended to read as follows:
21. BUILDING PERMITS/CERTIFICATES OF OCCUPANCY.
A. The City will issue building permits for buildings provided that the final plat has been
recorded with Washington County.
2
LA515\145\1102735.v2
B. The City will not schedule a final building inspection or issue a certificate of occupancy
for the new buildings to be constructed until all Improvements have been installed and have
been accepted by the City in accordance with Section 19 of this Agreement. The City may
issue one or more temporary certificates of occupancy for the phased expansion project
prior to the completion of all portions of the expansion project and all Improvements being
installed by the Developer and accepted by the City. This is provided that all safety
inspections, such as for building and fire codes have been conducted by the City and passed
by the Developer for the portion of the expansion project that the Developer wishes to
utilize.
C. Breach of the terms of this Agreement by the Developer, including nonpayment of billings
from the City, shall be grounds for denial of building permits, certificates of occupancy,
and withholding of other permits, inspection or actions and the halting of a ll work on the
Property.
D. If the City issues a building permit prior to the acceptance of the Improvements by the City,
the Developer assumes all liability and costs resulting in delays in completion of the
Improvements and damage to the Improvements caused by the City, the Developer, the
Developer’s contractors, subcontractors, materialmen, employees, agents, or any third
parties.
2. Amendment Controls; Ratification and Affirmation. In the event that the terms of
this Amendment and the Agreement are held to be inconsistent, the terms of this Amendment shall
control. The parties each agree and warrant that, in all other respects, the Agreement is
unmodified, in full force and effect, and each party hereby ratifies and affirms the Agreement and
any terms contained therein not otherwise modified by this Amendment.
3. Counterparts. This Amendment may be executed in counterparts, each of which
shall be deemed an original but all of which, taken together, shall constitute one and the same
instrument. Each party may rely upon facsimile or electronic mail counterparts of this Amendment
signed by the other party with the same effect as if such party had received an original counterpart
signed by such other party.
3
LA515\145\1102735.v2
IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date
first written above.
DEVELOPER:
Independent School District No. 834,
Stillwater Area Public Schools
By: _____________________________________
Its: Board Chair
By: ____________________________________
Its: Board Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this ____ day of ________________,
2026, by __________________ and ________________ the Board Chair and Board Clerk,
respectively, of Independent School District No. 834, Stillwater Area Public Schools, a Minnesota
body corporate and politic, on behalf of the district.
________________________________________
Notary Public
4
LA515\145\1102735.v2
CITY:
City of Lake Elmo
By:
Charles Cadenhead
Its: Mayor
By:
Julie Johnson
Its: City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this _____ day of __________________,
2026, by Charles Cadenhead and Julie Johnson, the Mayor and City Clerk, respectively, of the
City of Lake Elmo, a Minnesota municipal corporation on behalf of the City.
________________________________________
Notary Public
This instrument was drafted by:
Kennedy & Graven, Chartered (SJS)
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
5
LA515\145\1102735.v2
EXHIBIT A
Legal Description of the Property
Lot 1, Block 1, OAK-LAND MIDDLE SCHOOL ADDITION, according to the recorded plat
thereof, Washington County, Minnesota.
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: Jack Griffin, Senior Project Manager
AGENDA ITEM: Approve Pay Request #1 for Test Well 6
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☒ Resilient Infrastructure
BACKGROUND: On December 16, 2025, the City Council awarded a contract to Traut Companies for the
construction of Test Well 6. The well drilling has been completed with water quality test results pending.
ISSUE BEFORE COUNCIL: Should the City Council approve Pay Request No. 1 for Test Well 6?
PROPOSAL DETAILS/ANALYSIS: Traut Companies has submitted Partial Pay Request No. 1 in the amount of
$138,141.40. The request has been reviewed and payment is recommended in the amount requested. In
accordance with the contract documents, the City has retained 5% of the total work completed. The amount
retained as of this pay request is $7,270.60.
FISCAL IMPACT:The partial payment in the amount of $138,141.40 is in accordance with the Contract for the
project.Payment remains within the authorized scope and budget.Construction costs for Test Well 6 is estimated
to be $171,187.00.
The project costs will be fully funded through the Water Core Fund.Construction and Engineering costs
associated with the Test Well are not grant reimbursable,as they are deemed to be associated with population
growth.
RECOMMENDATION: (if pulled from Consent): Motion to approve Pay Request #1 in the amount of
$138,141.40 to Traut Companies for Test Well 6.
ATTACHMENTS:
1.Partial Pay Estimate No. 1
Stantec Consulting Services Inc.
733 Marquette Avenue Suite 1000, Minneapolis, Mn 55402
June 12, 2026
File: 173420169
Attention: Jack Griffin, Senior Project Manager
City of Lake Elmo
3880 Laverne Avenue North
Lake Elmo, MN 55402
Reference: Test Well No. 6 Construction
Stantec Project No. 173420169
Dear Mr. Griffin,
Enclosed Is an electronic copy of Pay Request No. 1 for the drilling of Test Well No. 6. This Pay
Request represents work completed through May 31, 2026. We have reviewed the Request for
Payment from Traut Companies and recommend payment for $138,141.40.
This pay request is for site preparation, mobilization, drilling, and development of Test Well No. 6.
Test pumping and water quality sampling will be invoiced in a future pay request.
Please distribute signed and executed copies of the pay request to Traut Companies, copying
Stantec on the communication. Please call me at the number below if you have any questions or
comments.
Regards,
STANTEC CONSULTING SERVICES INC.
Mark Janovec
Senior Scientist
Phone: (651) 775-6532
mark.janovec@stantec.com
Attachment: Pay Request No. 1
Owner: Date: June 11, 2026
For Period:Request No:1
Contractor:
CONTRACTOR'S REQUEST FOR PAYMENT
TEST WELL NO. 6
STANTEC PROJECT NO. 173420169
SUMMARY
1 Original Contract Amount $ 178,537.00
2 Change Order - Addition $ 0.00
3 Change Order - Deduction $ 0.00
4 Revised Contract Amount $ 178,537.00
5 Value Completed to Date $ 145,412.00
6 Material on Hand $0.00
7Amount Earned $ 145,412.00
8 Less Retainage 5%$ 7,270.60
9 Subtotal $ 138,141.40
10 Less Amount Paid Previously $ 0.00
11 Liquidated damages - $0.00
12 AMOUNT DUE THIS REQUEST FOR PAYMENT NO. 1 $ 138,141.40
Recommended for Approval by:
STANTEC
Approved by Contractor: Approved by Owner:
Specified Contract Completion Date: Date:
Traut Companies, 32640 County Rd. 133, St. Joseph, MN 56374
City of Lake Elmo, 3880 Laverne Avenue North, MN 55042
4/1/2026 to 5/31/2026
TRAUT COMPANIES CITY OF LAKE ELMO
173420169REQ1.xlsm
Contract Unit Current Quantity Amount
No.Item Unit Quantity Price Quantity to Date to Date
BASE BID
1 MOBILIZATION LS 1 30,367.00 1 1 $30,367.00
2 FURNISH, INSTALL, REMOVE SILT FENCE, HEAVY DUTY
LF 100 10.00 100 100 $1,000.00
3 DRILL/DRIVE 10" CASING LF 80 210.00 164 164 $34,440.00
4 DRILL OPEN HOLE FOR 6" CASING LF 325 140.00 241 241 $33,740.00
5 PLACE 6" CASING (INCLUDING3' STICKUP)LF 408 60.00 408 408 $24,480.00
6 DRILL 6" OPEN HOLE LF 95 90.00 74 74 $6,660.00
7 GROUT ANNULAR SPACES CY 12 975.00 9 9 $8,775.00
8 AIR DEVELOPMENT HR 16 600.00 4.75 4.75 $2,850.00
9 FURNISH, INSTALL, REMOVE TEST PUMP AND
DISCHARGE PIPING LS 1 8,700.00 0 0 $0.00
10 TEST PUMPING HR 24 300.00 0 0 $0.00
11 WATER QUALITY SAMPLING EA 1 4,190.00 0 0 $0.00
12 GAMMA LOG LOG EA 1 2,250.00 1 1 $2,250.00
13 FINISH WELLHEAD, FURNISH AND INSTALL LOCKING
CAP EA 1 850.00 1 1 $850.00
WORK COMPLETED TO DATE:$145,412.00
173420169REQ1.xlsm
PROJECT PAYMENT STATUS
OWNER
CONTRACTOR
CHANGE ORDERS
No. Date Description Amount
Total Change Orders
PAYMENT SUMMARY
No. From To Payment Retainage Completed
1 04/01/2026 05/31/2026
Material on Hand
Total Payment to Date Original Contract $178,537.00
Retainage Pay No. 1 Change Orders
Total Amount Earned Revised Contract $178,537.00
$138,141.40
7,270.60
$145,412.00
145,412.00138,141.40 7,270.60
CITY OF LAKE ELMO
TRAUT COMPANIES
STANTEC PROJECT NO. 173420169
173420169REQ1.xlsm
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: Mike Rusenovich, Project Engineer
AGENDA ITEM: Accept Bids and Award a Contract for the 2026 Seal Coat Project
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☒ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☒ Resilient Infrastructure
BACKGROUND: In accordance with the City’s annual street maintenance program, certain streets have been
scheduled to be seal coated in 2026. See a0ached Loca2on Map. The street maintenance work programmed in
2026 was reviewed jointly by Public Works and Engineering to confirm the work to be completed. The project
was adver2sed on QuestCDN and in the S2llwater Gaze0e in accordance with Minnesota compe22ve bidding
requirements.
ISSUE BEFORE COUNCIL: Should the City Council accept bids and award a contract for the 2026 Seal Coat
Project?
PROPOSAL DETAILS/ANALYSIS: Plans and specifica2ons were completed for the 2026 Seal Coat Project and
contractor bids were received, publicly opened, and read aloud on Friday, June 26, 2026. An Engineer’s Le0er
of Recommenda2on and a Tabula2on of Bids has been prepared and a0ached. The City received two bids for
this project, with Pearson Bros, Inc. providing the lowest bid in the amount of $279,404.16. Following review
and verifica2on of the bid tabula2ons, the City Engineer and Design Engineer are recommending that the City
Council award the contract to the lowest responsible bidder, Pearson Bros, Inc., as outlined in the a0ached
le0er.
FISCAL IMPACT: Approval of this resolu2on commits the City to enter into a construc2on contract for the
project in the amount of $279,404.16. The project will be funded through the 2026 Street Maintenance Funds.
OPTIONS:
· Accept the Bids and Award a Contract to Pearson Bros, Inc.
· Do not move forward with this project.
RECOMMENDATION: (if pulled from Consent): Mo2on to approve Accep2ng Bids and Awarding a Contract to
Pearson Bros, Inc. for the amount of $279,404.16 for the 2026 Seal Coat Project.
ATTACHMENTS:
1. Engineer’s Le0er of Award Recommenda2on and Tabula2on of Bids
2. 2026 Seal Coat Project Loca2on Map
3. 2026 Seal Coat Project Schedule
June 29, 2026
Nate Stanley, P.E.
City Engineer
City of Lake Elmo
3880 Laverne Avenue N
Lake Elmo, Minnesota 55042
RE: 2026 Seal Coat Project
City of Lake Elmo, MN
City Project No. 142139
BMI Project No. 26X.142139
Dear Mr. Stanley,
Attached is the bid abstract for the project referenced above. Two bids were received at 10:00 a.m. on
Friday, June 26, 2026. The following is a summary of the bids received:
Bidder Total Bid
Pearson Bros, Inc. $279,404.16
Allied Blacktop Company $345,269.98
We have reviewed the bids and recommend awarding this bid to Pearson Bros, Inc. in the amount of
$279,404.16.
Sincerely,
Bolton & Menk, Inc.
Michael Rusenovich, P.E.
Project Engineer
Enclosure
ABSTRACT OF BIDS2026 SEAL COAT PROJECTCITY PROJECT NO. 26X.142139CITY OF LAKE ELMO, MNBID DATE: 6/26/2026TIME: 10:00 AM 1 2ITEM APPROX.NO. ITEM QUANT. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT1BITUMINOUS SEAL COAT WITH 1/8" DRESSER TRAP ROCK AND CRS-2P EMULSIFIED ASPHALT149,314 SY $1.64 $244,874.96 $2.07 $309,079.982 PROTECT EXISTING THERMOPLASTIC PAVEMENT MARKING (TURN ARROW) 10 EA $150.00 $1,500.00 $200.00 $2,000.003PROTECT EXISTING THERMOPLASTIC PAVEMENT MARKING (ADA STALL SYMBOL)3 EA $300.00 $900.00 $200.00 $600.004 PROTECT EXISTING STRIPING - CROSSWALK 200 LF $5.00 $1,000.00 $25.00 $5,000.00$248,274.96 $316,679.98PART 2 - SEAL COAT LAKE ELMO CITY FACILITIES5BITUMINOUS SEAL COAT WITH 1/8" DRESSER TRAP ROCK AND CRS-2P EMULSIFIED ASPHALT11,196 SY $2.70 $30,229.20 $2.50 $27,990.006PROTECT EXISTING THERMOPLASTIC PAVEMENT MARKING (ADA STALL SYMBOL)3 EA $300.00 $900.00 $200.00 $600.00$31,129.20 $28,590.00TOTAL AMOUNT BID : $279,404.16 $345,269.98PART 1 - SEAL COAT LAKE ELMO STREETSTOTAL PART 1 - SEAL COAT LAKE ELMO STREETSTOTAL PART 2 - SEAL COAT LAKE ELMO CITY FACILITIESALLIED BLACKTOP COMPANYPEARSON BROS, INC.
CITY OF LAKE ELMO
Feet
0 2500 5000
2026 STREET
MAINTENANCE
MAP
LEGEND
2026 CRACK SEAL & SEAL COAT
WELL #2
PUMPHOUSE
WELL #5
WELLHOUSE
WELL #4
WELLHOUSE
INWOOD BOOSTER
STATION
TAPESTRY
LIFT STATION
32ND STREET
LIFT STATION
ROYAL GOLF NE
LIFT STATION
ROYAL GOLF W
LIFT STATION
ROYAL GOLF S
LIFT STATION
CITY HALL
PARKING
LOT
INWOOD WATER
TOWER
GOOSE LAKE PARK
PARKING LOT
3507 High Point Drive North
Bldg. 1 – Suite E130
Oakdale, MN 55128
Phone: (651) 704-9970
Bolton-Menk.com
2026 Street Maintenance Project
Lake Elmo, MN
Project No.: 26X.142139.000
CRACK SEAL PROJECT
May 22, 2026 Solicit Quotations
June 5, 2026 Receive Contractor Quotes (Two Weeks)
June 16, 2026 Council awards Contract
July 6, 2026 Contractor begins work
July 31, 2026 Substantial completion of work
SEAL COAT PROJECT
June 5, 2026 Ad for Bid, QuestCDN Project Posted
June 26, 2026 Receive Contractor Bids (21-day bidding period)
July 7, 2026 Council accepts bids and awards Contract
August 10, 2026 Contractor begins work (Or sooner if crack seal schedule allows)
September 4, 2026 Substantial completion of work
September 25, 2026 Final completion of work
STRIPING PROJECT
June 5, 2026 Solicit Quotations
June 19, 2026 Receive Contractor Quotes (2-weeks)
July 7, 2026 Council awards Contract
September 25, 2026 Contractor begins work
October 23, 2026 Final completion of work
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: Mike Rusenovich, Project Engineer
AGENDA ITEM: Accept Quotes and Award a Contract for the 2026 Striping Project
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☒ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☒ Resilient Infrastructure
BACKGROUND: In accordance with the City’s annual street maintenance program, certain streets have been
scheduled to be seal coated in 2026. Streets that have existing pavement markings must be restriped after the
seal coat work is complete. See attached Location Map. The street maintenance work programmed in 2026
was reviewed jointly by Public Works and Engineering to confirm the work to be completed.
ISSUE BEFORE COUNCIL: Should the City Council accept quotes and award a contract for the 2026 Striping
Project?
PROPOSAL DETAILS/ANALYSIS: Quotes for striping were solicited from three qualified contractors and one
quote was received on June 19, 2026.
Sir Lines-a-Lot, LLC provided the quote of $12,719.70. Following review and verification of the quote, the City
Engineer and Design Engineer are recommending that the City Council award the contract to Sir Lines-A-Lot,
LLC as outlined in the attached letter.
FISCAL IMPACT: Approval of this resolution commits the City to enter into a construction contract for the
project in the amount of $12,719.70. The project will be funded through the 2026 Street Maintenance Funds.
OPTIONS:
Accept the Quote and Award a Contract to Sir Lines-A-Lot, LLC.
Do not move forward with this project.
RECOMMENDATION: (if pulled from Consent): Motion to approve Accepting Quotes and Awarding a Contract
to Sir Lines-A-Lot, LLC for the amount of $12,719.70 for the 2026 Striping Project.
ATTACHMENTS:
1.Sir Lines-A-Lot Quote
2.2026 Striping Project Location Map
CITY OF LAKE ELMO
Feet
0 2500 5000
2026 STREET
STRIPING MAP
LEGEND
2026 STRIPING
2. UPPER 33RD ST N
4. JUNCO ROAD N
(CROSSWALKS)
1. 41ST STREET N
(LEGACY AT
NORTHSTAR 3RD)
3. ROYAL BLVD N
5. HUDSON BLVD N
6. GOOSE LAKE PARK
PARKING LOT
7. LAKE ELMO CITY HALL
PARKING LOT
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: Mike Rusenovich, Project Engineer
AGENDA ITEM: Release Warranty Security for the Ebertz Addition (Drake Motor Partners, LLC)
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☒Managed Growth
☐ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☒ Resilient Infrastructure
BACKGROUND: Drake Motor Partners LE LLC entered into a development agreement with the City for the
Ebertz Addition (Ebertz North) on June 13, 2023. The public improvement warranty period ended on August
20, 2025. The sanitary sewer and watermain warranty period ended on April 29, 2026.
ISSUE BEFORE COUNCIL: Should the City Council approve release of warranty security for the Ebertz Addition
(Ebertz North)?
PROPOSAL DETAILS/ANALYSIS: Staff has received and processed a request to release the development
security for the Ebertz Addition (Ebertz North). The warranty period for sanitary sewer and watermain has
expired. Twenty-five percent (25%) of the original security was retained through the warranty period. A
warranty walk-through was completed by city staff and all warranty punch list items have since been
addressed by the developer.
With release of the warranty security the overall development security may be released as shown below:
Current Security Amount Proposed Security Amount
1. Ebertz Addition (Ebertz North)$167,937 $84,187
Twenty-five percent (25%) of the landscaping security amount will be retained.
FISCAL IMPACT: Release of the warranty security closes out the public improvement portion of the
development. The operation and maintenance of the public facilities become the responsibility of the city
going forward.
RECOMMENDATION: (if pulled from Consent): Motion to approve release of warranty security for the Ebertz
Addition as detailed in the Security Reduction Worksheet, contingent on the developer being current with all
payments and obligations in accordance with the Development Agreement, including a positive escrow
balance as may be required by the City.
ATTACHMENTS:
1.Security Reduction Worksheet – Ebertz Addition.
EBERTZ NORTH (DRAKE)Time of Performance: October 31, 2024SITE IMPROVEMENT AGREEMENT AMOUNTSCATEGORYCOST125%REMARKS#1#2#3#4#5#6Grading$118,600$148,250100%$148,250Sanitary Sewer$56,000$70,000100%$52,500$17,500Watermain$212,000$265,000100%$198,750$66,250Storm Sewer (w/pond structures)$386,563$483,204100%$362,403$120,801Street and Sidewalks$788,000$985,000100%$738,750$246,250Bituminous Trails$36,000$45,000100%$33,750$11,250Surface Water Facilities (ponds, infiltration basins, other BMPS)$200,240 $250,300100%$187,725 $62,575Street Lighting$10,000$12,500100%$9,375$3,125Street Signs and Traffic Control SignsNANAPrivate Utilities (electricity, natural gas, telephone, and cable)NANALandscaping$121,107$151,38475%$113,538Tree Preservation and Restoration$148,290$185,36375%$139,022Tree Replacement$9,880$12,350100%$12,350Wetland Mitigation and Buffers$7,500$9,375100%$7,031$2,344Monuments$5,400$6,750100%$5,063$1,688Erosion Control and Restoration$53,520$66,900100%$50,175$16,725Record Drawings$10,000$12,500100%$9,375$3,125TOTALS$2,163,100$2,703,875RELEASED AMOUNTS:$1,654,897$413,160$467,882$83,750CUMMULATIVE AMOUNTS:$1,654,897$2,068,056$2,535,938$2,619,688SECURITY AMOUNT REMAINING:$1,048,978$635,819$167,937$84,187DATE: 8/20/2024 9/17/2024 9/16/20257/7/2026REDUCTIONS
STAFF REPORT
DATE: July 7, 2026
CONSENT
TO: Mayor and Councilmembers
FROM: Jack Griffin, Senior Project Manager
AGENDA ITEM: Approve Cooperative Agreement Payment #1 for TH36-Lake Elmo Avenue Improvements
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☒ Resilient Infrastructure
BACKGROUND: On May 5, 2026, the City of Lake Elmo approved Cooperative Agreement No. 18223 with
Washington County for the cost sharing of the interchange and frontage road improvements on Trunk
Highway (TH) 36 and County State Aid Highway (CSAH) 17 (Lake Elmo Avenue), the “Project”. The Project will
be constructed in 2026 and 2027.
ISSUE BEFORE COUNCIL: Should the City Council approve Payment No. 1 for the Project in accordance with
Washington County Invoice No. 236361?
PROPOSAL DETAILS/ANALYSIS: In accordance with the payment schedule outlined in the Agreement,
Washington County has submitted Invoice #236361 in the amount of $243,400.00. The amount requested
reflects 10% of the City’s share of the total estimated Project costs as outlined in Table 1 of the Agreement.
The invoice has been reviewed and payment is recommended in the amount requested.
FISCAL IMPACT:No additional fiscal impact.The partial payment amount of $243,400.00 is in accordance Project
Cooperative Agreement No. 13753 with Washington County, Agreement No. 236361.
RECOMMENDATION: (if pulled from Consent): Motion to approve Payment No. 1 for the Project in accordance
with Washington County Invoice No. 236361, in the amount of $243,400.00.
ATTACHMENTS:
1.Washington County Invoice No. 236361.
WACO PUBLIC WORKS DEPT
11660 MYERON RD N
STILLWATER MN 55082 Invoice
Invoice Number:236361
Account Number:223776
Due Date 7/17/26
Amount Enclosed: $ ___________
Federal Tax Id:41-6005919
To: CITY OF LAKE ELMO
3880 LAVERNE AVE N
LAKE ELMO MN 55042
Please return top portion with payment. Thank You.
Invoice
Date Number Type Due Date Remark Amount
6/17/26 236361 Invoice 7/17/26 CSAH 17 TH 36 Initial Billing $243,400.00
I declare under the penalties of law that this account claim or demand, is just and correct
and no part of it has been paid.
Please make check payable to Washington County and mail to the address above.
Invoice Total $243,400.00
Sales Tax
Balance Due $243,400.00
CSAH 17 & TH 36 InterchangeCity of Lake ElmoCounty/City Cooperative Agreement #18223Initial Billing6/17/2026City Cost (per Bid Abstract)City ShareFunding AppliedCost Per Agreement Initial INV - 10%Construction27,313,659.44$ 4,667,400.00$ 3,190,000.00$ 1,477,400.00$ 147,740.00$ Design Engineering3,131,400.00$ 532,300.00$ -$ 532,300.00$ 53,230.00$ Construction Engineering/Contract Administration2,194,700.00$ 373,400.00$ -$ 373,400.00$ 37,340.00$ Right-of Way9,950,000.00$ 4,750,000.00$ 4,750,000.00$ -$ -$ County Furnished Materials203,700.00$ 50,900.00$ -$ 50,900.00$ 5,090.00$ TOTAL42,793,459.44$ 10,374,000.00$ 7,940,000.00$ 2,434,000.00$ 243,400.00$
STAFF REPORT
DATE: July 7, 2026
REGULAR
AGENDA ITEM:Presentation & Acceptance of the 2025 Annual Comprehensive Financial
Report
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 2025.
The 2025 Annual Comprehensive Financial Report 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 2025 Annual Comprehensive Financial?
DISCUSSION:
Mr. Ryan Schmidt will present information regarding the 2025 Audit and answer any questions the City
Council may have pertaining to the 2025 Audit and the 2025 Financial Statements.
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 Segregation of Duties.
As of December 31, 2025, the unassigned fund balance of the General Fund was $ 12,605,632 or 140.5%
of 2026 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 2025 Audit
and 2025 ACFR.
MOTION:
“Motion to accept the 2025 Annual Comprehensive Financial Report.”
ATTACHMENTS:
1)2025 Annual Comprehensive Financial Report (ACFR)
2)Schlenner Wenner Report to the Members of Governance
City of Lake Elmo,
Minnesota
Audited Financial Statements
For The Year Ended
December 31, 2025
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS
INTRODUCTORY SECTION:
CITY COUNCIL AND OFFICIALS ................................................................................................................................ 2
FINANCIAL SECTION:
INDEPENDENT AUDITOR’S REPORT ........................................................................................................................ 4
REQUIRED SUPPLEMENTARY INFORMATION:
Management’s Discussion and Analysis ....................................................................................................................... 8
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements
Statement of Net Position ..................................................................................................................................... 19
Statement of Activities ......................................................................................................................................... 20
Fund Financial Statements
Balance Sheet – Governmental Funds .................................................................................................................. 21
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position .................................................................................................................... 22
Statement of Revenues, Expenditures, and
Changes in Fund Balances – Governmental Funds ....................................................................................... 23
Reconciliation of Changes in Fund Balances of Governmental Funds
to the Statement of Activities ........................................................................................................................ 25
Statement of Net Position – Proprietary Funds .................................................................................................... 26
Statement of Revenues, Expenses, and
Changes in Net Position – Proprietary Funds ................................................................................................ 27
Statement of Cash Flows – Proprietary Funds ..................................................................................................... 28
Notes to the Basic Financial Statements ..................................................................................................................... 30
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule – General Fund ....................................................................................................... 64
Schedule of City’s Proportionate Share of the Net Pension Liability .......................................................................... 66
Schedule of City Pension Contributions ...................................................................................................................... 67
Schedule of Changes in Net Pension Liability (Asset) – Firefighters Relief Association ........................................... 68
Schedule of Changes in City’s Net OPEB Liability .................................................................................................... 69
Schedule of City OPEB Contributions ........................................................................................................................ 70
Notes to the Required Supplementary Information ..................................................................................................... 71
SUPPLEMENTARY INFORMATION:
Combining Balance Sheet – Nonmajor Governmental Funds ..................................................................................... 82
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances – Nonmajor Governmental Funds ............................................................................. 83
Combining Balance Sheet – Nonmajor Special Revenue Funds ................................................................................. 84
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances – Nonmajor Special Revenue Funds ......................................................................... 85
Combining Balance Sheet – Nonmajor Capital Project Funds .................................................................................... 86
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances – Nonmajor Capital Project Funds ............................................................................ 90
Supplemental Combining Balance Sheet – Debt Service Fund ................................................................................... 95
Supplemental Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balance – Debt Service Fund ................................................................................................... 97
Schedule of Indebtedness ............................................................................................................................................ 99
CITY OF LAKE ELMO, MINNESOTA
TABLE OF CONTENTS (Continued)
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 ............................................................................................................................... 101
Schedule of Findings and Responses ................................................................................................................................ 103
Corrective Action Plans .................................................................................................................................................... 104
1
INTRODUCTORY
SECTION
2
CITY OF LAKE ELMO, MINNESOTA
CITY COUNCIL AND OFFICIALS
FOR THE YEAR ENDED DECEMBER 31, 2025
CITY COUNCIL Term Expires
Charles Cadenhead Mayor January 1, 2029
Nick Dragisich Council Member January 1, 2029
Matt Hirn Council Member January 1, 2027
Jeff Holtz Council Member January 1, 2029
Nick Kragness Council Member January 1, 2027
APPOINTED CITY OFFICIALS
Nicole Miller City Administrator Appointed
Clarissa Hadler Finance Director Appointed
Nina Kraemer Finance Coordinator Appointed
Julie Johnson City Clerk Appointed
3
FINANCIAL
SECTION
4
www.swco.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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position
of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Lake Elmo, Minnesota, as of December 31, 2025, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit
of the Financial Statements” section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in
the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the
financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
5
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 essential
part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s
basic financial statements. The accompanying introductory section, 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.
6
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 introductory section and schedule of indebtedness have not been subjected to the auditing procedures applied in the audit
of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 25, 2026 on our consideration
of the City of Lake Elmo’s internal control over financial reporting and on our tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the
scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the effectiveness of the City of Lake Elmo’s internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of
Lake Elmo’s internal control over financial reporting and compliance.
SCHLENNER WENNER & CO.
St. Cloud, Minnesota
June 25, 2026
7
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
8
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, 2025. Please read it in conjunction with the independent auditor’s report on page 4
and the City’s financial statements, which begin on page 19.
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 $237,888,497 (net position). The unrestricted portion of net position, the portion used
to meet the City’s ongoing obligations to citizens and creditors, is $36,963,605.
• The City’s total net position increased $34,860,981 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 $23,110,851, which is a decrease of $1,270,207 in comparison with the prior year. The overall
unassigned fund balance is $7,716,711.
• At the end of the current fiscal year, unrestricted fund balance for the General Fund was $12,443,449, which is 160
percent of total 2025 General Fund expenditures and 140 percent of budgeted 2026 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 $7,923,777 (37.51 percent) and program expenses increased
$1,253,836 (15.43 percent). These changes are discussed in greater detail throughout the following pages.
• Total cost of all of the City’s governmental activities’ departments increased $2,762,617 (or 22.14 percent) in
aggregate.
• The City’s General Fund generated more revenue than budgeted of $2,281,861, excluding transfers in from other
funds. Expenditures were less than budgeted by $97,040, excluding transfers to other funds. See additional details on
page 64.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities
(on pages 19 and 20) 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 21. 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, 2025
9
USING THIS ANNUAL REPORT (Continued)
Reporting the City as a Whole
Our analysis of the City as a whole begins on page 10. One of the most important questions asked about the City’s finances is,
“Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the
Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this
question. These statements include all assets, deferred outflows/inflows of resources, and liabilities using the accrual basis of
accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and
expenses are taken into account regardless of when cash is received or paid.
These two statements report the City’s net position and changes in net position. You can think of the City’s net position (assets
plus deferred outflows, less liabilities plus deferred inflows) as one way to measure the City’s financial health, or financial
position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is
improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s
property tax base, costs associated with current and future construction projects, and the condition of the City’s roads, to assess
the overall health of the City.
In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:
• Governmental Activities - Most of the City’s basic services are reported here, including the police, fire, public works,
parks, and planning and zoning departments, along with general administration. Property taxes, charges for services, and
licenses, permits and fees 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 13. The fund financial statements begin on page 21 and provide detailed
information about the most significant funds - not the City as a whole. Some funds are required to be established by State law
and by bond covenants. However, the City Council may establish other funds to help it control and manage money for particular
purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City’s two
kinds of funds (governmental and proprietary) use different accounting approaches.
• Governmental Funds - Most of the City’s basic services are reported in governmental funds, which focus on how
money flows into and out of those funds and the balances left at year-end that are available for spending. These funds
are reported using an accounting method called modified accrual accounting, which measures cash and all other
financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the City’s general government operations and the basic services it provides. Governmental fund information
helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance
the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the
Statement of Net Position and the Statement of Activities) and governmental funds in reconciliations following the
governmental fund financial statements.
• Proprietary Funds - When the City charges customers for the services it provides, these services are generally reported
in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement
of Net Position and the Statement of Activities. In fact, the City’s proprietary funds are the same as the business-type
activities we report in the government-wide statements but provide more detail and additional information, such as
cash flows, for proprietary funds.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
10
THE CITY AS A WHOLE
The City’s combined net position increased $34,860,981 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.
The net position of the City’s governmental activities increased by $15,524,001 (15.95 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) increased by $359,736 compared to the prior year.
The net position of the City’s business-type activities increased by $19,336,980 (18.30 percent) from the prior year. Such
increase can be attributed primarily to the capital contributions of infrastructure assets that were received from private
developers during the year.
Table 1
Net Position
Governmental Business-Type Total
Activities Activities Government
2025 2024 2025 2024 2025 2024
Current and Other Assets 41,244,886$ 34,849,746$ 28,776,311$ 24,775,850$ 70,021,197$ 59,625,596$
Net Capital Assets 121,001,271 104,806,610 122,909,527 110,083,564 243,910,798 214,890,174
Total Assets 162,246,157 139,656,356 151,685,838 134,859,414 313,931,995 274,515,770
Deferred Outflows of Resources 1,408,924 1,209,375 78,773 73,516 1,487,697 1,282,891
Current Liabilities 12,867,222 4,890,355 1,492,302 1,443,233 14,359,524 6,333,588
Noncurrent Liabilities 35,040,472 35,907,834 25,136,245 27,665,367 60,176,717 63,573,201
Total Liabilities 47,907,694 40,798,189 26,628,547 29,108,600 74,536,241 69,906,789
Deferred Inflows of Resources 2,864,793 2,708,949 130,161 155,407 2,994,954 2,864,356
Net Position:
Net Investment in
Capital Assets 87,686,507 71,683,376 98,091,690 82,708,847 185,778,197 154,392,223
Restricted 15,146,695 15,985,561 - - 15,146,695 15,985,561
Unrestricted 10,049,392 9,689,656 26,914,213 22,960,076 36,963,605 32,649,732
Total Net Position 112,882,594$ 97,358,593$ 125,005,903$ 105,668,923$ 237,888,497$ 203,027,516$
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
11
THE CITY AS A WHOLE (Continued)
The City’s total revenues increased by $6,586,596 (12.47 percent). The total cost of all programs and services increased by
$4,016,453 (19.49 percent). Our following analysis separately considers the operations of governmental and business-type
activities.
Table 2
Changes in Net Position
Governmental Business-Type Total
Activities Activities Government
2025 2024 2025 2024 2025 2024
REVENUE
Charges for Services 3,656,528$ 3,109,811$ 3,941,958$ 3,072,782$ 7,598,486$ 6,182,593$
Operating Grants and
Contributions 647,890 542,462 - 100,000 647,890 642,462
Capital Grants and
Contributions 14,079,256 17,900,192 24,261,293 17,238,838 38,340,549 35,139,030
Property Taxes 9,956,835 8,905,064 - - 9,956,835 8,905,064
Franchise Fees 374,335 86,955 - - 374,335 86,955
Intergovernmental 33,853 102,914 221 10,470 34,074 113,384
Investment Earnings (Losses)1,591,090 1,050,711 846,611 704,216 2,437,701 1,754,927
Other 29,220 8,079 - - 29,220 8,079
Total Revenues 30,369,007 31,706,188 29,050,083 21,126,306 59,419,090 52,832,494
PROGRAM EXPENSES
General Government 2,008,193 1,513,163 - - 2,008,193 1,513,163
Public Safety 5,186,570 3,853,006 - - 5,186,570 3,853,006
Public Works 6,880,833 5,376,826 - - 6,880,833 5,376,826
Parks and Recreation 280,702 848,199 - - 280,702 848,199
Economic Development 2,382 7,074 - - 2,382 7,074
Interest and Other Charges 884,075 881,870 - - 884,075 881,870
Water - - 4,666,700 3,946,949 4,666,700 3,946,949
Sewer - - 3,255,756 2,996,505 3,255,756 2,996,505
Storm Sewer - - 1,459,898 1,185,064 1,459,898 1,185,064
Total Expenses 15,242,755 12,480,138 9,382,354 8,128,518 24,625,109 20,608,656
Increase (Decrease) in Net Position
Before Transfers/Other Items 15,126,252 19,226,050 19,667,729 12,997,788 34,793,981 32,223,838
Gain (Loss) on Disposal of Assets 67,000 108,120 - - 67,000 108,120
Transfers 330,749 - (330,749) - - -
Change in Net Position 15,524,001 19,334,170 19,336,980 12,997,788 34,860,981 32,331,958
Net Position - Beginning of Year 97,358,593 78,024,423 105,668,923 92,671,135 203,027,516 170,695,558
Net Position - End of Year 112,882,594$ 97,358,593$ 125,005,903$ 105,668,923$ 237,888,497$ 203,027,516$
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
12
THE CITY AS A WHOLE (Continued)
Governmental Activities
Revenue for the City’s governmental activities decreased by $1,337,181 (4.22 percent). This decrease in revenue is primarily
due to a decrease in capital grants and contributions, resulting from significant contributions of infrastructure from developers
during 2024. Total expenses increased $2,762,617 (22.14 percent), primarily due to increased expenses for public safety and
public works costs. Such changes in expenses are reviewed in greater detail below.
Table 3 presents the cost of each of the City’s programs - general government, public safety, public works, parks and recreation,
economic development, and Interest and Other Charges - as well as each program’s net cost (total cost less revenues generated
by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.
Activities (net of capital outlay which is excluded from Table 3) were generally comparable to the prior year as operations
remained fairly consistent with the prior year, with the exception of:
• Public safety net cost of services increased $351,536 primarily due to an increase in personnel costs and building
inspection costs.
• Public works net cost of services increased $5,342,853 primarily due to an increase in street maintenance expenditures,
along with a decrease in revenues recognized from contributed infrastructure previously discussed.
Table 3
Governmental Activities
Total Cost Net Cost
of Services of Services
2025 2024 2025 2024
General Government 2,008,193$ 1,513,163$ 1,581,960$ 1,040,302$
Public Safety 5,186,570 3,853,006 2,516,224 2,164,688
Public Works 6,880,833 5,376,826 (7,491,867) (12,834,720)
Parks and Recreation 280,702 848,199 (487,299) (282,730)
Economic Development 2,382 7,074 (144,012) (41,737)
Interest and Other Charges 884,075 881,870 884,075 881,870
Totals 15,242,755$ 12,480,138$ (3,140,919)$ (9,072,327)$
Business-type Activities
Revenues of the City’s business-type activities (see Table 2) increased by $7,923,777 (37.51 percent) and program expenses
increased by $1,253,836 (15.43 percent). The increase in revenues is due primarily to an increase in contributions of
infrastructure from developers during 2025. 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 2025, due to various projects being finalized and placed into service.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
13
THE CITY’S FUNDS
Governmental Funds
As the City completed the year, its governmental funds (as presented in the balance sheet on page 21) reported a combined
fund balance of $23,110,851. This is a decrease of $1,270,207 from the prior year. Operations were comparable to the prior
year, with the exception of an increase in property taxes along with a decrease in state grants. Additionally, the City experienced
an increase in capital outlay expenditures related to the ballfield project and various street projects in the current year. Financial
information specific to the governmental funds is detailed on the following page. Such information was derived from the fund
financials.
Increase
2025 2024 (Decrease)
General 12,605,632$ 10,324,572$ 2,281,060$
Fund Balance December 31,
Major Funds
The fund balance of the General Fund increased by $2,281,060 compared to 2024. Details of the General Fund’s revenues and
expenditures are displayed below:
General Fund Revenues
The City received the majority of its funding in the General Fund in the form of grants and funding received from property
taxes (53.71 percent), licenses, permits, and fees (16.71 percent), charges for services (11.70 percent), and interest earnings
(8.63 percent). Overall, the City’s General Fund revenues were comparable to the prior year, with the exception of increases
in licenses, permits, and fees, as well as investment earnings.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
14
THE CITY’S FUNDS (Continued)
General Fund Expenditures
General Government
Public Safety
Public Works
Parks and Recreation
A significant portion of the City’s General Fund expenditures are used for public safety (56.59 percent). Remaining
expenditures are used primarily for general government (22.67 percent), public works (14.69 percent), and parks and recreation
(6.05 percent). Expenditures are comparable to the prior year, with the exception of an increase in public safety expenditures
due to increased personnel and building inspection costs.
Increase
2025 2024 (Decrease)
Fund Balance December 31,
Major Funds
Debt Service 6,120,873$ 5,678,193$ 442,680$
The Debt Service fund balance increased as a result of an increase in property tax and investment earnings revenue, which
exceeded the principal and interest payments.
Ballfield (1,927,723)$ -$ (1,927,723)$
The Ballfield fund balance decreased due to the capital expenditures to-date for the Ballfield Improvements project exceeding
the transfers in from other funds to finance the project.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
15
THE CITY’S FUNDS (Continued)
General Fund Budgetary Highlights
The City’s General Fund generated more revenue than budgeted by $2,281,861, excluding transfers in from other funds.
Revenues in excess of budgeted amounts were primarily the result of the City collecting more investment income, state aid,
and charges for services than were anticipated. Expenditures were less than those budgeted by $97,040, excluding transfers to
other funds. Expenditure deviations were mostly distributed across departments but resulted most significantly from parks and
recreation expenditures being less than anticipated.
Proprietary Funds
As the City completed the year, its business-type activities reported a combined net position of $125,005,903. This is an
increase of $19,336,980 from the prior year. The following is a summary of the City’s major proprietary funds:
Increase
2025 2024 (Decrease)
Water 63,025,555$ 56,335,050$ 6,690,505$
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, $4,111,874 of which was recognized in this fund.
Sewer 38,174,061$ 31,014,704$ 7,159,357$
The Sewer Fund net position increased due to the City receiving developer contributed infrastructure during the year,
$4,655,034 of which was recognized in this fund. Connection fees in the Sewer Fund also increased $1,024,100 from that of
the prior year.
Storm Sewer 23,806,287$ 18,319,169$ 5,487,118$
The Storm Sewer Fund net position increased due to the City receiving developer contributed infrastructure during the year,
$6,193,185 of which was recognized in this fund.
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
16
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2025, the City had a net investment of $243,910,798 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 $29,020,624 (13.50 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:
• 76 acre land purchase exceeded $2.9 million in total.
• Developer contributions of infrastructure exceeded $28.2 million in total.
• Costs incurred during the year for the 2025 Street & Utility Improvements project exceeded $1.8 million.
• Costs incurred during the year for the Stillwater Area School District Utility Improvements project exceeded $1.3
million.
• Costs incurred during the year for the Well #2 Construction project exceeded $1.6 million.
• Costs incurred during the year for the I-94 Lift Station Force Main Improvements project exceeded $1.3 million.
2025 2024 2025 2024 2025 2024
Land 6,400,256$ 3,453,979$ 3,668,869$ 3,668,869$ 10,069,125$ 7,122,848$
Construction In Progress 7,257,055 2,858,374 2,010,235 611,693 9,267,290 3,470,067
Buildings 17,151,624 17,538,068 - - 17,151,624 17,538,068
Other Improvements 2,784,573 2,670,737 - - 2,784,573 2,670,737
Machinery and Equipment 7,006,628 7,239,442 797,848 765,746 7,804,476 8,005,188
Infrastructure 80,401,135 71,046,010 116,367,262 104,953,716 196,768,397 175,999,726
IT Subscription - - 65,313 83,540 65,313 83,540
Totals 121,001,271$ 104,806,610$ 122,909,527$ 110,083,564$ 243,910,798$ 214,890,174$
Table 4
Capital Assets Net of Depreciation and Amortization
Governmental
Activities
Business-Type
Activities Totals
CITY OF LAKE ELMO, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2025
17
CAPITAL ASSET AND DEBT ADMINISTRATION (Continued)
Debt
At year-end, the City had $58,323,531 in gross debt versus $61,824,107 last year (a decrease of 5.66 percent), as shown in
Table 5. See additional information regarding these issuances in Note 2.D. to the financial statements.
2025 2024 2025 2024 2025 2024
G.O. Improvement Bonds 30,790,000$ 31,535,000$ 23,885,000$ 26,270,000$ 54,675,000$ 57,805,000$
G.O. Equipment Certificates 340,000 450,000 - - 340,000 450,000
G.O. Tax Abatement Bonds 845,000 930,000 - - 845,000 930,000
Unamortized Bond Premium 1,496,535 1,534,390 918,450 1,016,299 2,414,985 2,550,689
Subscription Liabilities - - 48,546 88,418 48,546 88,418
Totals 33,471,535$ 34,449,390$ 24,851,996$ 27,374,717$ 58,323,531$ 61,824,107$
Table 5
Outstanding Debt at Year-End
Governmental
Activities
Business-Type
Activities Totals
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 planned
capital expenses such as roads and equipment for a 10-year period. 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 staff to meet the needs of
a growing community, and funding capital needs while maintaining a fund balance above the City’s policy of 50-60
percent of next year’s expenses.
• The City’s Long-Range Financial Management Plan for utilities was updated in early 2026. For 2026, water rates
increased 20 percent, sewer rates increased 15 percent, and stormwater rates increased 8 percent.
• Market interest rates on investments have fallen slightly in 2025 and 2026. The City is holding various investments
that were purchased prior to 2022 that have lower rates of return due to the aforementioned increases. As a result,
these investments have some unrealized losses that would only be recognized if the City had to sell them before
maturity. The City has sufficient cash and does not anticipate selling before maturity.
• The City is currently exploring sites for two new wells. These wells will need a treatment plant for PFAS which are
planned to be funded by 3M settlement dollars via MPCA grants. 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) will be opening the new Elementary
School in 2026 and the expansion of the existing Middle School in Lake Elmo was completed, 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.
18
BASIC FINANCIAL STATEMENTS
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2025
See accompanying notes. 19
Governmental
Activities
Business-Type
Activities Totals
ASSETS
Cash, Cash Equivalents, and Investments 37,108,563$ 20,956,916$ 58,065,479$
Property Taxes Receivable 78,296 - 78,296
Assessments Receivable 3,672,804 4,441,693 8,114,497
Accounts Receivable 156,663 948,857 1,105,520
Interest Receivable 119,024 63,020 182,044
Internal Balances (2,000,000) 2,000,000 -
Due from Other Governments 8,927 365,825 374,752
Leases Receivable 1,537,234 - 1,537,234
Capital Assets Not Being Depreciated/Amortized 13,657,311 5,679,104 19,336,415
Capital Assets Being Depreciated/Amortized (Net) 107,343,960 117,230,423 224,574,383
Net Pension Asset 563,375 - 563,375
TOTAL ASSETS 162,246,157 151,685,838 313,931,995
DEFERRED OUTFLOWS OF RESOURCES
Pensions 1,408,924 78,773 1,487,697
LIABILITIES
Accounts Payable 561,617 490,987 1,052,604
Salaries Payable 100,240 38,271 138,511
Construction Contracts Payable 265,983 65,794 331,777
Deposits Payable 11,201,836 4,788 11,206,624
Due to Other Governments - 23,033 23,033
Payroll Deductions and Employer Contributions 55,158 - 55,158
Unearned Revenue 250,000 575,000 825,000
Accrued Interest Payable 432,388 294,429 726,817
Compensated Absences Payable:
Due Within One Year 221,615 52,887 274,502
Due After One Year 73,872 17,629 91,501
Bonds and Subscriptions:
Due Within One Year 3,190,000 2,449,301 5,639,301
Due After One Year 30,281,535 22,402,695 52,684,230
Net OPEB Liability:
Due After One Year 49,679 17,819 67,498
Net Pension Liability:
Due After One Year 1,223,771 195,914 1,419,685
TOTAL LIABILITIES 47,907,694 26,628,547 74,536,241
DEFERRED INFLOWS OF RESOURCES
Pensions 1,489,742 130,161 1,619,903
Leases 1,375,051 - 1,375,051
TOTAL DEFERRED INFLOWS OF RESOURCES 2,864,793 130,161 2,994,954
NET POSITION
Net Investment in Capital Assets 87,686,507 98,091,690 185,778,197
Restricted for:
Debt Service 9,270,974 - 9,270,974
Lawful Gambling Purposes 7,215 - 7,215
Park Dedication 2,664,799 - 2,664,799
Heritage Farms Street & Utility Improvements 247,465 - 247,465
City Hall / Fire Station Bldg Project 1,500,015 - 1,500,015
Tamarack Farm Estates Street Improvements 134,883 - 134,883
Other Street & Utility Improvements 1,321,344 - 1,321,344
Unrestricted 10,049,392 26,914,213 36,963,605
TOTAL NET POSITION 112,882,594$ 125,005,903$ 237,888,497$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2025
See accompanying notes. 20
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities:
General Government 2,008,193$ 352,805$ 73,428$ -$ (1,581,960)$ -$ (1,581,960)$
Public Safety 5,186,570 2,551,512 118,834 - (2,516,224) - (2,516,224)
Public Works 6,880,833 38,020 255,424 14,079,256 7,491,867 - 7,491,867
Parks and Recreation 280,702 714,191 53,810 - 487,299 - 487,299
Economic Development 2,382 - 146,394 - 144,012 - 144,012
Interest and Other Charges 884,075 - - - (884,075) - (884,075)
Total Governmental Activities 15,242,755 3,656,528 647,890 14,079,256 3,140,919 - 3,140,919
Business-Type Activities:
Water 4,666,700 2,114,990 - 9,317,090 - 6,765,380 6,765,380
Sewer 3,255,756 1,142,721 - 8,750,857 - 6,637,822 6,637,822
Storm Sewer 1,459,898 684,247 - 6,193,346 - 5,417,695 5,417,695
Total Business-Type Activities 9,382,354 3,941,958 - 24,261,293 - 18,820,897 18,820,897
TOTALS 24,625,109$ 7,598,486$ 647,890$ 38,340,549$ 3,140,919 18,820,897 21,961,816
General Revenues:
Property Taxes 9,956,835 - 9,956,835
Franchise Fees 374,335 - 374,335
Intergovernmental 33,853 221 34,074
Investment Earnings (Losses)1,591,090 846,611 2,437,701
Gain (Loss) on Sale of Assets 67,000 - 67,000
Miscellaneous 29,220 - 29,220
Total General Revenues 12,052,333 846,832 12,899,165
Transfers 330,749 (330,749) -
Total General Revenues and Transfers 12,383,082 516,083 12,899,165
CHANGE IN NET POSITION 15,524,001 19,336,980 34,860,981
NET POSITION - BEGINNING OF YEAR 97,358,593 105,668,923 203,027,516
NET POSITION - END OF YEAR 112,882,594$ 125,005,903$ 237,888,497$
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, 2025
See accompanying notes. 21
Capital Project
General Fund
Debt Service
Fund Ballfield Fund
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash, Cash Equivalents, and Investments 21,462,653$ 6,098,692$ 70,757$ 9,476,461$ 37,108,563$
Property Taxes Receivable 78,296 - - - 78,296
Assessments Receivable 66,113 3,587,622 - 19,069 3,672,804
Accounts Receivable 9,769 - - 146,894 156,663
Interest Receivable 67,344 17,048 1,520 33,112 119,024
Due from Other Governments 8,927 - - - 8,927
Due from Other Funds 2,568,487 - - - 2,568,487
Leases Receivable 1,537,234 - - - 1,537,234
TOTAL ASSETS 25,798,823$ 9,703,362$ 72,277$ 9,675,536$ 45,249,998$
LIABILITIES
Accounts Payable 301,689$ -$ -$ 259,928$ 561,617$
Salaries Payable 100,240 - - - 100,240
Payroll Deductions and
Employer Contributions 55,158 - - - 55,158
Construction Contracts Payable - - - 265,983 265,983
Deposits Payable 11,201,836 - - - 11,201,836
Due to Other Funds - - - 2,568,487 2,568,487
Unearned Revenue - - - 250,000 250,000
Advances from Other Funds - - 2,000,000 - 2,000,000
Total Liabilities 11,658,923 - 2,000,000 3,344,398 17,003,321
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Property Taxes 93,104 - - - 93,104
Special Assessments 66,113 3,582,489 - 19,069 3,667,671
Leases 1,375,051 - - - 1,375,051
Total Deferred Inflows of Resources 1,534,268 3,582,489 - 19,069 5,135,826
FUND BALANCES
Nonspendable 162,183 - - - 162,183
Restricted - 6,120,873 - 5,875,721 11,996,594
Committed - - - 37,322 37,322
Assigned - - - 3,198,041 3,198,041
Unassigned 12,443,449 - (1,927,723) (2,799,015) 7,716,711
Total Fund Balances 12,605,632 6,120,873 (1,927,723) 6,312,069 23,110,851
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 25,798,823$ 9,703,362$ 72,277$ 9,675,536$ 45,249,998$
CITY OF LAKE ELMO, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2025
See accompanying notes. 22
Total Fund Balances - Governmental Funds 23,110,851$
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 151,214,664$
Accumulated Depreciation (30,213,393)
Capital Assets (Net) 121,001,271
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 (31,975,000)
Bond Premium, Net of Accumulated Amortization (1,496,535)
Compensated Absences (295,487)
(33,767,022)
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 (49,679)
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 563,375
Net Pension Liability (1,223,771)
Deferred Outflows - Pensions 1,408,924
Deferred Inflows - Pensions (1,489,742)
(741,214)
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:(432,388)
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 93,104
Special Assessments Receivable 3,667,671
3,760,775
TOTAL NET POSITION OF GOVERNMENTAL ACTIVITIES 112,882,594$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2025
See accompanying notes. 23
Capital Project
General Fund
Debt Service
Fund Ballfield Fund
2024 Street &
Utility
Improvement Fund
Hudson Blvd Imp-
Seg A-InwdHdrx
Fund
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
REVENUES
Property Taxes 5,424,723$ 3,251,727$ -$ 1,243,333$ 9,919,783$
Franchise Fees 85,459 - - 288,876 374,335
Special Assessments - 953,319 - 1,130 954,449
Licenses, Permits, and Fees 1,687,800 - - - 1,687,800
Intergovernmental 673,737 - - 20,333 694,070
Charges for Services 1,181,734 - - 714,191 1,895,925
Fines 66,081 - - - 66,081
Investment Earnings (Losses)871,385 225,416 18,555 413,222 1,528,578
Lease Interest 62,512 - - - 62,512
Miscellaneous 47,403 - - 21,619 69,022
TOTAL REVENUES 10,100,834 4,430,462 18,555 2,702,704 17,252,555
EXPENDITURES
Current:
General Government 1,768,061 - - - 1,768,061
Public Safety 4,414,133 - - 9,244 4,423,377
Public Works 1,146,286 - - 4,487 1,150,773
Parks and Recreation 472,294 - - 192,540 664,834
Economic Development - 2,354 - 28 2,382
Capital Outlay - - 2,946,278 6,106,278 9,052,556
Debt Service:
Principal - 2,965,000 - - 2,965,000
Interest and Other Charges - 1,020,428 - 44,926 1,065,354
TOTAL EXPENDITURES 7,800,774 3,987,782 2,946,278 6,357,503 21,092,337
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,300,060 442,680 (2,927,723) (3,654,799) (3,839,782)
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, 2025
See accompanying notes. 24
OTHER FINANCING SOURCES (USES)
Sale of Assets -$ -$ -$ 67,000$ 67,000$
Bond Issuance - - - 2,025,000 2,025,000
Premium on Bond Issuance - - - 146,826 146,826
Transfers In - - 1,000,000 1,349,749 2,349,749
Transfers Out (19,000) - - (2,000,000) (2,019,000)
TOTAL OTHER FINANCING
SOURCES (USES)(19,000) - 1,000,000 1,588,575 2,569,575
NET CHANGE IN FUND BALANCES 2,281,060 442,680 (1,927,723) (2,066,224) (1,270,207)
FUND BALANCES - BEGINNING 10,324,572 5,678,193 - 368,438$ 1,219,181$ 6,790,674 24,381,058
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - - - (368,438) (1,219,181) 1,587,619 -
FUND BALANCES - BEGINNING 10,324,572 5,678,193 - - - 8,378,293 24,381,058
(As Adjusted)
FUND BALANCES - ENDING 12,605,632$ 6,120,873$ (1,927,723)$ -$ -$ 6,312,069$ 23,110,851$
Capital Project
General Fund
Debt Service
Fund Ballfield Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd Imp-
Seg A-InwdHdrx
Fund
Total Nonmajor
Governmental
Funds
Total
Governmental
Funds
Formerly Major Funds
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, 2025
See accompanying notes. 25
Net Change in Fund Balances - Total Governmental Funds (1,270,207)$
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 8,506,988$
Depreciation Expense (5,596,157)
Capital Assets Acquired via Developers 13,283,830
16,194,661
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 2,965,000
Bond Issuance (2,025,000)
Premium on Bond Issuance (146,826)
Amortization of Bond Premium 184,681
977,855
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: (3,402)
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 37,052
Special Assessments (179,356)
(142,304)
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 (104,290)
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 (2,503)
Net Pension Asset/Liability and Deferred Outflows/Inflows of Resources (125,809)
(128,312)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 15,524,001$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2025
See accompanying notes. 26
Water Fund Sewer Fund
Storm Sewer
Fund Totals
ASSETS
Current Assets:
Cash and Cash Equivalents 7,359,360$ 12,243,151$ 1,354,405$ 20,956,916$
Assessments Receivable 61,433 315,423 21,804 398,660
Accounts Receivable 317,308 298,333 333,216 948,857
Interest Receivable 19,253 38,589 5,178 63,020
Due from Other Governments 365,825 - - 365,825
Total Current Assets 8,123,179 12,895,496 1,714,603 22,733,278
Noncurrent Assets:
Capital Assets Not Being Depreciated/Amortized 3,967,748 1,411,334 300,022 5,679,104
Capital Assets Being Depreciated/Amortized (Net)63,093,671 30,462,574 23,674,178 117,230,423
Assessments Receivable 348,330 3,693,607 1,096 4,043,033
Advances to Other Funds - 2,000,000 - 2,000,000
Total Noncurrent Assets 67,409,749 37,567,515 23,975,296 128,952,560
TOTAL ASSETS 75,532,928 50,463,011 25,689,899 151,685,838
DEFERRED OUTFLOWS OF RESOURCES
Pensions 46,144 20,554 12,075 78,773
LIABILITIES
Current Liabilities:
Accounts Payable 376,829 100,508 13,650 490,987
Salaries Payable 15,548 10,366 12,357 38,271
Construction Contracts Payable - 65,794 - 65,794
Deposits Payable 4,788 - - 4,788
Due to Other Governments - 23,033 - 23,033
Unearned Revenue 575,000 - - 575,000
Accrued Interest 131,758 146,101 16,570 294,429
Compensated Absences 32,306 13,474 7,107 52,887
Bonds and Subscriptions Due Within One Year 1,249,301 975,000 225,000 2,449,301
Total Current Liabilities 2,385,530 1,334,276 274,684 3,994,490
Noncurrent Liabilities:
Compensated Absences 10,769 4,491 2,369 17,629
Bonds and Subscriptions Due After One Year 9,950,945 10,883,728 1,568,022 22,402,695
Net OPEB Liability 11,677 3,982 2,160 17,819
Net Pension Liability 116,918 49,885 29,111 195,914
Total Noncurrent Liabilities 10,090,309 10,942,086 1,601,662 22,634,057
TOTAL LIABILITIES 12,475,839 12,276,362 1,876,346 26,628,547
DEFERRED INFLOWS OF RESOURCES
Pensions 77,678 33,142 19,341 130,161
NET POSITION
Net Investment in Capital Assets 55,861,173 20,049,339 22,181,178 98,091,690
Unrestricted 7,164,382 18,124,722 1,625,109 26,914,213
TOTAL NET POSITION 63,025,555$ 38,174,061$ 23,806,287$ 125,005,903$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2025
See accompanying notes. 27
Water Fund Sewer Fund
Storm Sewer
Fund Totals
OPERATING REVENUES
Charges for Services 2,055,993$ 1,125,450$ 647,504$ 3,828,947$
OPERATING EXPENSES
Wages and Benefits 386,194 243,284 160,393 789,871
Materials and Supplies 46,528 20,707 13,319 80,554
Repairs and Maintenance 120,833 40,486 26,827 188,146
Professional Services 149,137 85,675 84,205 319,017
Insurance 25,212 15,953 4,112 45,277
Utilities 188,331 805,746 472 994,549
Miscellaneous 28,490 23,992 11,551 64,033
Depreciation and Amortization 3,413,106 1,722,736 1,127,793 6,263,635
TOTAL OPERATING EXPENSES 4,357,831 2,958,579 1,428,672 8,745,082
NET OPERATING INCOME (LOSS)(2,301,838) (1,833,129) (781,168) (4,916,135)
NONOPERATING INCOME (EXPENSE)
Intergovernmental 132 56 33 221
Investment Earnings (Losses)255,742 521,479 69,390 846,611
Miscellaneous 58,997 17,271 36,743 113,011
Interest and Other Charges (308,869) (297,177) (31,226) (637,272)
TOTAL NONOPERATING
INCOME (EXPENSE)6,002 241,629 74,940 322,571
CHANGE IN NET POSITION PRIOR
TO CONTRIBUTIONS AND TRANSFERS (2,295,836) (1,591,500) (706,228) (4,593,564)
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital Contributions:
Capital Contributions from Private Sources 4,111,874 4,655,034 6,193,185 14,960,093
Special Assessments 171,567 1,490,823 161 1,662,551
Intergovernmental 2,383,749 - - 2,383,749
Connection Fees 2,649,900 2,605,000 - 5,254,900
Operating Transfers Out (330,749) - - (330,749)
TOTAL CAPITAL CONTRIBUTIONS
AND TRANSFERS 8,986,341 8,750,857 6,193,346 23,930,544
CHANGE IN NET POSITION 6,690,505 7,159,357 5,487,118 19,336,980
NET POSITION - BEGINNING OF YEAR 56,335,050 31,014,704 18,319,169 105,668,923
NET POSITION - END OF YEAR 63,025,555$ 38,174,061$ 23,806,287$ 125,005,903$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2025
See accompanying notes. 28
Water Fund Sewer Fund
Storm Sewer
Fund Totals
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash Received from Customers 2,012,240$ 1,029,673$ 638,124$ 3,680,037$
Cash Paid to Suppliers (616,179) (948,457) (128,362) (1,692,998)
Cash Paid to Employees (413,473) (246,932) (158,040) (818,445)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 982,588 (165,716) 351,722 1,168,594
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Taxes and Intergovernmental 132 56 33 221
Other Receipts from Customers 58,997 17,271 36,743 113,011
Net Operating Subsidies and
Transfers from (to) Other Funds (330,749) - - (330,749)
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING
ACTIVITIES (271,620) 17,327 36,776 (217,517)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Connection Fees 2,649,900 2,605,000 - 5,254,900
Special Assessments 248,139 1,963,556 22,863 2,234,558
Intergovernmental and Other 3,343,251 - - 3,343,251
Purchases of Capital Assets (2,414,109) (1,349,580) (300,022) (4,063,711)
Issuance of Interfund Advances - (2,000,000) - (2,000,000)
Payments on Bond Principal (1,215,000) (950,000) (220,000) (2,385,000)
Payments on Subscription Liabilities (39,872) - - (39,872)
Cash Paid for Interest and Other Charges (363,604) (360,850) (39,088) (763,542)
NET CASH PROVIDED (USED) BY
CAPITAL AND RELATED FINANCING
ACTIVITIES 2,208,705 (91,874) (536,247) 1,580,584
CASH FLOWS FROM INVESTING
ACTIVITIES
Investment Income 253,909 525,253 69,405 848,567
Net Change in Cash and Cash Equivalents 3,173,582 284,990 (78,344) 3,380,228
Cash and Cash Equivalents - Beginning of Year 4,185,778 11,958,161 1,432,749 17,576,688
Cash and Cash Equivalents - End of Year 7,359,360$ 12,243,151$ 1,354,405$ 20,956,916$
CITY OF LAKE ELMO, MINNESOTA
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2025
See accompanying notes. 29
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)(2,301,838)$ (1,833,129)$ (781,168)$ (4,916,135)$
Adjustments to Reconcile Net Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Depreciation and Amortization Expense 3,413,106 1,722,736 1,127,793 6,263,635
Changes in Assets, Liabilities,
and Deferrals:
Special Assessments (32,339) (21,399) (21,655) (75,393)
Accounts Receivable (16,202) (74,378) 12,275 (78,305)
Due to Other Governments - (27,455) - (27,455)
Deferred Outflows of
Resources - Pensions (683) (2,001) (2,573) (5,257)
Accounts Payable (57,648) 71,557 12,124 26,033
Salaries Payable 4,371 3,997 (38) 8,330
Deposits Payable 4,788 - - 4,788
Compensated Absences 11,103 5,342 2,407 18,852
Net OPEB Liability 2,605 118 280 3,003
Net Pension Liability (24,390) (5,707) 1,841 (28,256)
Deferred Inflows of
Resources - Pensions (20,285) (5,397) 436 (25,246)
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 982,588$ (165,716)$ 351,722$ 1,168,594$
SCHEDULE OF NONCASH CAPITAL
AND RELATED FINANCING
ACTIVITIES
Contribution of Capital Assets from
Private Sources 4,111,874$ 4,655,034$ 6,193,185$ 14,960,093$
Change in Capital Assets Due To
Changes in Related Payables -$ 65,794$ -$ 65,794$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
30
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 described above and whose governing
body is the same or substantially the same as the City Council or the component unit provides services entirely to the City.
These component units’ funds are blended into those of the City’s by appropriate activity type to compose the primary
government presentation. Currently, the City has the following blended component unit:
Economic Development Authority of the City of Lake Elmo
The Economic Development Authority (EDA) of Lake Elmo is an entity legally separate from the City. The EDA
provides services solely to the City of Lake Elmo and the City Council appoints the EDA’s board members. Therefore,
the EDA has been reported as a blended component unit of the City. The EDA does not issue its own separate financial
statements.
The financial activity of the Authority is performed by the City of Lake Elmo and treated as routine City business.
Discretely Presented Component Units
Discretely presented component units are separate legal entities that meet the component unit criteria described above but do
not meet the criteria for blending. Currently, the City has no discretely presented component units.
Affiliated Organizations
The Lake Elmo Firefighters Relief Association (the Association) is organized as a non-profit organization, legally separate
from the City, to provide pension and other benefits to its members in accordance with Minnesota Statutes. Its board of directors
is appointed by the membership of the Association and not by the City Council and the Association issues its own set of
financial statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby State aids flow to
the Association, and the Association pays benefits directly to its members. Because the Association is fiscally independent of
the City, the financial statements of the Association have not been included within the City’s reporting entity. The City’s portion
of the costs of the Association’s pension benefits is included in the general fund under public safety.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
31
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 Ballfield Fund is a capital project fund used to account for financial resources related to the ballfield improvement
project that initiated in 2025.
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, 2025
32
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 that are intended to be used for a specific purpose,
other than debt service or capital projects.
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, 2025:
• 2024 Street & Utility Improvement Fund
• Hudson Blvd Imp-Seg A-InwdHdrx Fund
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. Basis
of accounting refers to “when” transactions are recorded regardless of the measurement focus applied.
Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type
activities are presented using the economic resources measurement focus as defined in the second bullet point below.
In the fund financial statements, the current financial resources measurement focus or the economic resources measurement
focus is used as appropriate:
• All governmental funds utilize a current financial resources measurement focus. Only current financial assets and
liabilities are generally included on their balance sheets. Their operating statements present sources and uses of
available financial resources during a given period. These funds use fund balance as their measure of available
financial resources at the end of the period.
• The government-wide financial statements and proprietary funds utilize an economic resources measurement focus.
The accounting objectives of this measurement focus are the determination of operating income, changes in net
position (or cost recovery), financial position, and cash flows. All assets, deferred outflows, liabilities, and deferred
inflows (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is
classified as net position.
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-type activities
are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recorded when the liability is incurred, or economic asset used. Revenues, expenses, gains, losses,
assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
33
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 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 from
those estimates.
1.F. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY
Cash and Cash Equivalents
For purposes of the Statement 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. Purchases
and sales of securities are recorded on a trade-date basis.
See Note 2.A. for additional information related to Cash, Cash Equivalents, and Investments.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
34
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 amounts due from other governments. Business-type activities report utility charges and assessments as their major
receivables.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as taxes,
assessments, other intergovernmental revenues, fines, and charges for services since they are usually both measurable and
available. Revenues collectible but not available are deferred in the fund financial statements in accordance with the modified
accrual basis, but are not deferred in the government-wide financial statements in accordance with the accrual basis. Interest
and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable
and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility
accounts receivable and assessments compose the majority of proprietary fund receivables. Allowances for uncollectible
accounts receivable are based upon historical trends and the periodic aging of accounts receivable. No allowances are deemed
necessary at year end.
Leases Receivable
Lease receivables are determined based on future lease payments to be received under each corresponding lease agreement
over the lease term, discounted using the interest rate applied to the leasing arrangement. If not defined in the lease agreement,
implicit interest rates are determined based on the estimated incremental borrowing rate. Collections under the leasing
arrangements are recorded as a reduction to the corresponding lease receivable, as well as lease interest revenues.
Upon initial execution of lease, a corresponding deferred inflow of resources balance is recorded. This balance is amortized on
a straight-line basis over the term of the lease, resulting in the recognition of lease revenues.
Capital Assets
The accounting treatment over property, plant, and equipment (capital assets) depends on whether the assets are used in
governmental or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.
Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, sidewalks, and similar items), and
subscription-based assets 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, 2025
35
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 and subscription-based assets is recorded as an allocated expense in
the Statement of Activities, with accumulated depreciation/amortization reflected in the Statement of Net Position.
Depreciation/amortization is provided over the assets’ estimated useful lives using the straight-line method.
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay
expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for
the same as in the government-wide statements.
Accounts Payable
Payables in the governmental and proprietary funds are composed almost entirely of payables to vendors.
Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered
by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used
as time off or settled (paid) during or upon separation from employment. Based on the criteria, PTO, compensatory leave, and
sick leave balances accumulated by City employees qualify for liability recognition as compensated absences. The liability for
compensated absences is reported as incurred in the proprietary fund and government-wide financial statements. The liability
for compensated absences includes salary-related benefits, where applicable.
Long-Term Debt
The accounting treatment of long-term debt and other long-term 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, 2025
36
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 on the same basis as they are reported by PERA. For
this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments, and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Deferred Outflows/Inflows of Resources
In addition to assets, the Statements of Net Position report a separate section for deferred outflows of resources. This element
represents a consumption of net position 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 position or fund balance 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, 2025
37
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 nonspendable fund balances at December 31, 2025 consist of leases
receivables.
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 percent to 60 percent 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 previously.
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 the
subsequent year during the month of December. Washington County is the collecting agency for the levy and remits the
collections to the City. In the fund financial statements, property taxes are recorded as revenue in the period levied to the extent
they are collected within 60 days of year-end.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
38
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 prepayments paid directly
to the City. The County collects all taxes and assessments, except as noted above. The County mails copies of all real estate
and personal property tax statements. Each year, property owners are required to pay one half of their real estate taxes by May
15 and the balance by October 15. Penalties and interest are assessed to property owners who do not pay their property taxes
and special assessments by the due dates.
Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by deferred inflows
of resources for taxes not received within 60 days after year end in the fund financial statements.
Special Assessments
Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment
improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years
usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by
the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future
installments without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is
made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go
delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties, and expenses of
sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a
tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property
is subject to such sale after five years.
Within the government-wide financial statements, the City recognizes special assessment revenue in the period that the
assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported.
Within the governmental 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, 2025
39
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.
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
The following notes present detailed information to support the amounts reported in the basic financial statements for its various
assets, liabilities, deferred outflows/inflows of resources, equity, revenues, and expenditures/expenses.
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS
Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City
Council. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market
value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (100 percent if collateral
pledged is irrevocable standby letters of credit issued by the Federal Home Loan Bank). The City complies with such laws.
Authorized collateral in lieu of a corporate surety bond includes:
• United States Government Treasury bills, Treasury notes, Treasury bonds;
• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service
available to the government entity;
• A general obligation of a state or local government, with taxing powers, rated “A” or better;
• A revenue obligation of a state or local government, with taxing powers, rated “AA” or better;
• 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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
40
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
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, 2025, the City’s deposits, including certificates of deposit, were not exposed to custodial credit risk. The
City’s deposits were sufficiently covered by federal depository insurance or by collateral held by the City’s agent in the City’s
name.
Investments
The City may also invest idle funds as authorized by Minnesota Statutes as follows: direct obligations guaranteed by the United
States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that
received the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of
the investments have a final maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated
“AA” or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of
United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States
corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating
agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank,
domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest
categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified
as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization
exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York,
or certain Minnesota securities broker-dealers. The City does not have any investment policies that would further limit
investment choices.
The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally
accepted in the United State of America. The hierarchy is based on the valuation inputs used to measure the fair value of the
asset. Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt
and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based
on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors for
similar debt securities in active markets; equity securities are valued using fair value per share for each fund for identical equity
securities in inactive markets. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable
market inputs for similar certificates in active markets. Securities classified as Level 3 have limited trade information, these
securities are priced using the last trade price or estimated using recent trade prices.
Investment balances at December 31, 2025 are as follows:
S & P's
Credit Fair Value Fair Less
Investment Type Rating Level Value Than 1 1 - 5 6 - 10
Money Market Funds N/A N/A 483,476$ 483,476$ -$ -$
U.S. Government Bonds AA+ to AAA Level 2 6,598,284 5,399,500 800,576 398,208
Municipal Bonds A to AAA Level 2 16,073,143 531,904 13,267,939 2,273,300
Brokered Certificates of Deposit NR Level 2 3,573,958 691,219 2,390,911 491,828
Totals 26,728,861$ 7,106,099$ 16,459,426$ 3,163,336$
Investment Maturities (in Years)
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
41
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued)
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 $500,000 through SIPC. Each broker-
dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate
limits applied to all of the broker-dealer’s accounts.
• Concentration of Credit Risk is the risk associated with the magnitude of the City’s investments (considered five
percent or more) in the investments of a single issuer, excluding U.S. guaranteed investments (such as treasuries),
investment pools, and mutual funds. The City’s investment policy allows no more than 5 percent of the overall
portfolio to be invested in a single issuer, except for the securities of the U.S. Government, or a maximum of 25
percent with any individual counter party in an external investment pool. At December 31, 2025, the City did not have
a significant concentration of credit risk.
• Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The
City’s investment policy states that extended maturities may be utilized to take advantage of higher yields; however
no more than 25 percent of total investments should extend beyond five years and in no circumstance should any
extend beyond ten years. The City’s investment portfolio is structured so that securities mature to meet cash
requirements for ongoing operations.
Deposits and Investments Summary
A reconciliation of cash and investments as shown on the Statements of Net Position for the City follows:
Carrying Amount of Deposits 31,336,618$
Investments 26,728,861
Total 58,065,479$
Government-wide
Cash, Cash Equivalents, and Investments 58,065,479$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
42
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
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 - $55,902 5.50%11/30/2047 545,936$
Wireless Site Lease 696,030 $27,987 - $55,425 3.25%6/30/2043 628,285
Land Lease 400,078 $21,012 - $31,847 3.25%12/31/2043 363,013
Total Governmental Activities Lease Receivables 1,537,234$
During the year ended December 31, 2025, the City recognized revenues from leasing activities under the arrangements above
within governmental activities in the amount of $135,026.
2.C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2025 is as follows:
Balance at Balance at
01/01/25 Additions Disposals Transfers 12/31/25
Governmental Activities
Capital Assets not Being
Depreciated or Amortized
Land 3,453,979$ 2,946,277$ -$ -$ 6,400,256$
Construction In Progress 2,858,374 4,948,578 (79,088) (470,809) 7,257,055
Total Capital Assets not Being
Depreciated or Amortized 6,312,353 7,894,855 (79,088) (470,809) 13,657,311
Capital Assets Being Depreciated
and Amortized
Buildings 19,144,599 - - - 19,144,599
Other Improvements 4,286,566 275,342 - - 4,561,908
Machinery and Equipment 10,718,464 415,879 (126,225) - 11,008,118
Infrastructure 89,088,089 13,283,830 - 470,809 102,842,728
Total Capital Assets Being
Depreciated and Amortized 123,237,718 13,975,051 (126,225) 470,809 137,557,353
Less: Accumulated Depreciation
Buildings (1,606,531) (386,444) - - (1,992,975)
Other Improvements (1,615,829) (161,506) - - (1,777,335)
Machinery and Equipment (3,479,022) (648,693) 126,225 - (4,001,490)
Infrastructure (18,042,079) (4,399,514) - - (22,441,593)
Total Accumulated Depreciation (24,743,461) (5,596,157) 126,225 - (30,213,393)
Total Capital Assets Being
Depreciated and Amortized, Net 98,494,257 8,378,894 - 470,809 107,343,960
Capital Assets, Net 104,806,610$ 16,273,749$ (79,088)$ -$ 121,001,271$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
43
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.C. CAPITAL ASSETS (Continued)
Depreciation is charged to governmental activities as follows:
General Government 169,925$
Public Safety 359,982
Public Works 4,884,921
Parks and Recreation 181,329
Total Depreciation Expense 5,596,157$
Balance at Balance at
01/01/25 Additions Disposals Transfers 12/31/25
Business-Type Activities
Capital Assets not Being
Depreciated or Amortized
Land 3,668,869$ -$ -$ -$ 3,668,869$
Construction In Progress 611,693 3,807,173 (26,793) (2,381,838) 2,010,235
Total Capital Assets not Being
Depreciated or Amortized 4,280,562 3,807,173 (26,793) (2,381,838) 5,679,104
Capital Assets Being Depreciated
and Amortized
Machinery and Equipment 1,114,636 104,653 - - 1,219,289
Infrastructure 131,950,176 15,204,565 (15,842) 2,381,838 149,520,737
IT Subscription 92,653 - - - 92,653
Total Capital Assets Being
Depreciated and Amortized 133,157,465 15,309,218 (15,842) 2,381,838 150,832,679
Less: Accumulated Depreciation
Machinery and Equipment (348,890) (72,551) - - (421,441)
Infrastructure (26,996,460) (6,172,857) 15,842 - (33,153,475)
Less: Accumulated Amortization
IT Subscription (9,113) (18,227) - - (27,340)
Total Accumulated Depreciation
and Amortization (27,354,463) (6,263,635) 15,842 - (33,602,256)
Total Capital Assets Being
Depreciated and Amortized, Net 105,803,002 9,045,583 - 2,381,838 117,230,423
Capital Assets, Net 110,083,564$ 12,852,756$ (26,793)$ -$ 122,909,527$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
44
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
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.
As of December 31, 2025, 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 Improvement Bonds, Series 2014A 2,850,000$ 2.00 - 3.50%2030 785,000$
GO Improvement Bonds, Series 2015A 1,620,000 2.00 - 3.00%2026 165,000
GO Improvement Bonds, Series 2016A 2,690,000 2.00%2027 575,000
GO Improvement Bonds, Series 2017A 4,565,000 2.50%2028 1,465,000
GO Improvement Bonds, Series 2019A 2,860,000 2.00 - 3.00%2035 1,500,000
GO Improvement Bonds, Series 2021A 15,675,000 1.75 - 3.00%2042 13,445,000
GO Improvement Bonds, Series 2022A 3,895,000 3.00 - 5.00%2038 3,495,000
GO Improvement Bonds, Series 2023A 3,410,000 4.00 - 5.00%2034 3,140,000
GO Improvement Bonds, Series 2024A 4,195,000 4.00 - 5.00%2039 4,195,000
GO Improvement Bonds, Series 2025A 2,025,000 4.00 - 5.00%2036 2,025,000
Total General Obligation Improvement Bonds 30,790,000
General Obligation Equipment Certificates:
GO Equipment Certificates, Series 2018A 940,000 2.70%2028 340,000
General Obligation Tax Abatement Bonds:
GO Tax Abatement Bonds, Series 2022A 1,010,000 3.00 - 5.00%2033 845,000
Total Governmental Activities Debt 31,975,000$
Description
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
45
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.D. NONCURRENT LIABILITIES (Continued)
Original Interest Final Maturity Balance
Issue Amount Rates Date OutstandingDescription
Business-Type Activities
General Obligation Revenue Bonds:
GO Refunding Bonds, Series 2012A 4,035,000$ 2.00 - 2.50%2030 1,630,000$
GO Improvement Bonds, Series 2014A 3,385,000 2.00 - 3.50%2030 1,260,000
GO Improvement Bonds, Series 2015A 1,195,000 2.00 - 3.00%2031 530,000
GO Improvement Bonds, Series 2016A 6,855,000 2.00%2032 3,455,000
GO Improvement Bonds, Series 2017A 4,480,000 2.50 - 3.00%2033 2,590,000
GO Improvement Bonds, Series 2019A 1,195,000 2.00 - 3.00%2035 850,000
GO Improvement Bonds, Series 2021A 6,310,000 1.75 - 3.00%2037 5,045,000
GO Improvement Bonds, Series 2022A 7,590,000 3.00 - 5.00%2037 6,310,000
GO Improvement Bonds, Series 2023A 2,000,000 4.00 - 5.00%2038 1,775,000
GO Improvement Bonds, Series 2024A 470,000 4.00 - 5.00%2039 440,000
Total Business-Type Activities - GO Bonds 23,885,000
Subscription Liabilities:
Sensus Analytics 92,653 8.50%2029 48,546
Total Business-Type Activities Debt 23,933,546$
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, 2025:
Amounts Due
Balance Balance Within
Type of Debt 01/01/25 Additions Deductions 12/31/25 One Year
Governmental Activities
G.O. Improvement Bonds 31,535,000$ 2,025,000$ (2,770,000)$ 30,790,000$ 2,990,000$
G.O. Equipment Certificates 450,000 - (110,000) 340,000 110,000
G.O. Tax Abatement Bonds 930,000 - (85,000) 845,000 90,000
Unamortized Bond Premium 1,534,390 146,826 (184,681) 1,496,535 -
Compensated Absences 191,197 104,290 - 295,487 221,615
Total 34,640,587$ 2,276,116$ (3,149,681)$ 33,767,022$ 3,411,615$
Business-Type Activities
G.O. Revenue Bonds 26,270,000$ -$ (2,385,000)$ 23,885,000$ 2,435,000$
Unamortized Bond Premium 1,016,299 - (97,849) 918,450 -
Subscription Liabilities 88,418 - (39,872) 48,546 14,301
Compensated Absences 51,664 18,852 - 70,516 52,887
Total 27,426,381$ 18,852$ (2,522,721)$ 24,922,512$ 2,502,188$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
46
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.D. NONCURRENT LIABILITIES (Continued)
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. Subscription liabilities in business-type activities are funded
through the Water Fund. The changes in compensated absences displayed on the previous page have been presented on a net
basis.
Annual Debt Service Requirements
At December 31, 2025, the estimated annual debt service requirements to maturity, including principal and interest and
excluding compensated absences payable and net pension and OPEB liabilities, are as follows:
Years Ending
December 31, Principal Interest Total Principal Interest Total
2026 2,990,000$ 945,437$ 3,935,437$ 110,000$ 7,695$ 117,695$
2027 3,045,000 845,656 3,890,656 115,000 4,658 119,658
2028 2,875,000 739,706 3,614,706 115,000 1,552 116,552
2029 2,475,000 639,756 3,114,756 - - -
2030 2,475,000 544,368 3,019,368 - - -
2031-2035 11,040,000 1,533,722 12,573,722 - - -
2036-2040 4,655,000 336,485 4,991,485 - - -
2041-2042 1,235,000 26,404 1,261,404 - - -
Totals 30,790,000$ 5,611,534$ 36,401,534$ 340,000$ 13,905$ 353,905$
Governmental Activities
G.O. Improvement Bonds G.O. Equipment Certificates
Years Ending
December 31, Principal Interest Total Principal Interest Total
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 110,000 15,700 125,700 2,690,000 364,994 3,054,994
2031-2035 355,000 17,275 372,275 8,505,000 908,277 9,413,277
2036-2039 - - - 2,520,000 97,790 2,617,790
Totals 845,000$ 145,525$ 990,525$ 23,885,000$ 3,647,984$ 27,532,984$
G.O. Tax Abatement Bonds G.O. Revenue Bonds
Business-Type ActivitiesGovernmental Activities
Years Ending
December 31, Principal Interest Total
2026 14,301$ 3,520$ 17,821$
2027 16,123 2,233 18,356
2028 18,122 784 18,906
Totals 48,546$ 6,537$ 55,083$
Business-Type Activities
Subscription Liabilities
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
47
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.D. NONCURRENT LIABILITIES (Continued)
Interest expense totals $1,631,140 in the Statement of Activities (included in Debt Service, Water, Sewer, and Storm Sewer
lines). Interest expenditures total $990,961 for the Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds (included in the line Interest and Other Charges) and $636,777 in the Statement of Revenues, Expenses,
and Changes in Net Position – Proprietary Funds (included in the line Interest and Other Charges).
2.E. INTERFUND TRANSACTIONS AND BALANCES
Operating transfers consist of the following for the year ended December 31, 2025:
Nonmajor
Transfers Capital Project
Out Ballpark Fund Funds Total
General 19,000$ -$ 19,000$ 19,000$
Water 330,749 - 330,749 330,749
Nonmajor Capital Project Funds 2,000,000 1,000,000 1,000,000 2,000,000
2,349,749$ 1,000,000$ 1,349,749$ 2,349,749$
Major Fund
Major Fund
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 statute or
budget requires to expend them and to (b) use unrestricted revenues collected in the General Fund to finance various programs
accounted for in other funds in accordance with budgetary authorizations.
Interfund balances at year-end are as follows:
Due To Fund Due From Fund Amount Purpose
General Fund CSAH 13 Phase 2 Fund 48,389$ Eliminate negative cash
General Fund Old Village Phases 5 & 6 Fund 272,542 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 39,958 Eliminate negative cash
General Fund Old Village Phase 7 Fund 52,276 Eliminate negative cash
General Fund CSAH 15 (Manning Ave) Phase 3 Fund (444)4,212 Eliminate negative cash
General Fund Hudson Blvd Imp-Seg A-InwdHdrx Fund 259,391 Eliminate negative cash
General Fund 30th ST N Cap Segmt Improvement Fund 470,808 Eliminate negative cash
General Fund Stillwater Area Sch Dist Util Fund 1,299,473 Eliminate negative cash
General Fund 2025 Street & Utility Improvements Fund 103,800 Eliminate negative cash
Total Short-Term Interfund Balance 2,568,487
Short-Term Balances
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
48
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.E. INTERFUND TRANSACTIONS AND BALANCES (Continued)
Advance From Fund Advance to Fund
Ballfield Fund Sewer Fund 2,000,000$ Project Financing
Total Interfund Balances 4,568,487
Government Fund Elimination (2,568,487)
Government-wide Internal Balances 2,000,000$
Long-Term Balances
Interfund balances are to be repaid as cash flows become available. The interfund advance noted above bears a 5 percent interest
rate and is to be repaid in annual installments through 2035. Property taxes are to be levied to facilitate the repayment.
2.F. FUND EQUITY
At December 31, 2025, governmental fund equity consists of the following:
Nonspendable Restricted Committed Assigned Unassigned
General Fund
Nonspendable - Leases (Net)162,183$ -$ -$ -$ -$
Unassigned - - - - 12,443,449
Total General Fund Balance 162,183$ -$ -$ -$ 12,443,449$
Debt Service Fund
Restricted for Debt Service -$ 6,120,873$ -$ -$ -$
Ballfield Fund
Unassigned -$ -$ -$ -$ (1,927,723)$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
49
NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued)
2.F. FUND EQUITY (Continued)
Nonspendable Restricted Committed Assigned Unassigned
Deficit fund balances in individual funds at December 31, 2025 consist of the following:
Fund
Deficit
CSAH 13 Phase 2 Fund (48,389)$
Old Village Phases 5 & 6 (273,005)$
CSAH 15 Manning Avenue Phase 3 Fund (3,525)$
CSAH 15 Manning Avenue & 30th Street Fund (14,113)$
TH36 Lake Elmo Avenue Improvements Fund (53,586)$
Old Village Phase 7 Fund (52,276)$
CASH 15 (Manning Ave) Phase 3 Fund (4,212)$
30th St N Gap Segmt Improvement Fund (470,808)$
Stillwater Area Sch Dist Util Fund (1,359,395)$
Hudson Blvd Imp-Seg A-InwdHdrx Fund (367,297)$
2026 Street & Utility Improvements (152,409)$
Nonmajor Governmental Funds
Fund deficits are expected to be recovered through future assessments, tax levies, tax increment, or transfers.
Nonmajor Governmental Funds
Restricted for Lawful Gambling Eligible Purposes -$ 7,215$ -$ -$ -$
Restricted for Park Improvements - 2,664,799 - - -
Restricted for Heritage Farms Street and Utility Improv.- 247,465 - - -
Restricted for City Hall/Fire Station Project - 1,500,015 - - -
Restricted for Tamarack Farm Estates Street Improv.- 134,883 - - -
Restricted for 2022 Street Improvements - 386,450 - - -
Restricted for 2024 Street & Utility Improvements - 715,748 - - -
Restricted for 2025 Street & Utility Improvements - 219,146 - - -
Committed for Lions Park - - 37,322 - -
Assigned for Economic Development Authority - - - 13,470 -
Assigned for Vehicle Acquisition - - - 939,407 -
Assigned for Infrastructure Reserve - - - 965,872 -
Assigned for City Facilities - - - 107,798 -
Assigned for Manning and Hudson Future Stoplight - - - 41,310 -
Assigned for Railroad Crossing Improvements - - - 111,401 -
Assigned for Manning and Highway 36 Interchange - - - 2,806 -
Assigned for 2023 Street Improvements - - - 283,869 -
Assigned for 15th Street N Improvement - - - 62,493 -
Assigned for Fire Equipment & Projects - - - 178,655 -
Assigned for Street Maintenance - - - 160,473 -
Assigned for City Center Reserve - - - 34,296 -
Assigned for Park Reserve - - - 246,154 -
Assigned for Trees - - - 50,037 -
Unassigned - - - - (2,799,015)
Total Nonmajor Governmental Funds Balance -$ 5,875,721$ 37,322$ 3,198,041$ (2,799,015)$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
50
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 Retirement 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.
Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be
modified by the State Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet,
are bound by the provisions in effect at the time they last terminated their public service. When a member is “vested,” they
have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible
retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify
for a retirement benefit.
General Employees Plan Benefits
General Employees Plan requires three years of service to vest. Benefits are based on a member’s highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level
formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members
receive 1.20 percent of the highest average salary for each of the first 10 years of service and 1.70 percent for each additional
year. Under the Level formula, General Plan members receive 1.70 percent of highest average salary for all years of service.
For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of service equal 90 and normal
retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of
service. Early retirement benefits are reduced by 0.25 percent for each month under age 65. Members with 30 or more years of
service can retire at any age with a reduction of 0.25 percent for each month the member is younger than age 62. The Level
formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989
or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to
the benefit.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost-
of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.50
percent. The 2025 annual increase was 1.25 percent. Recipients that have been receiving the annuity or benefit for at least a
full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity
or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive
a prorated increase.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
51
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
Police and Fire Plan Benefits
Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on
or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years. After five years,
vesting increase by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fire
Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a full
retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if the y
were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417 percent
each month members are younger than age 55.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. Recipients
that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase
will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of
the June 30 before the effective date of the increase will receive a prorated increase.
Contributions
Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution
rates can only be modified by the State Legislature.
General Employees Fund Contributions
General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2025 and the City
was required to contribute 7.50 percent for General Plan members. The City’s contributions to the General Employees Fund
for the year ended December 31, 2025, were $171,776. 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 2025 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, 2025, were $144,921. 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, 2025, the City reported a liability of $823,399 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 $19,863.
City’s proportionate share of the net pension liability $823,399
State of Minnesota’s proportionate share of the net pension
liability associated with the City 19,863
Total $843,262
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
52
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was b ased
on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024
through June 30, 2025, relative to the total employer contributions received from all of PERA's participating employers. The
City’s proportionate share was 0.0248 percent at the end of the measurement period and 0.0232 percent for the beginning of
the period.
For the year ended December 31, 2025, the City recognized pension expense of $35,419 for its proportionate share of the
General Employees Plan’s pension expense. In addition, the City recognized an additional $3,975 as pension expense (and
grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees
Fund.
At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected
and actual economic experience 78,452$ -$
Changes in actuarial assumptions 19,839 189,461
Difference between projected
and actual investment earnings - 327,637
Changes in proportionate share 134,635 29,951
Contributions paid to PERA subsequent
to the measurement date 87,065 -
Total Deferred Outflows/Inflows 319,991$ 547,049$
The $87,065 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year ended
December 31, Pension Expense
2026 (66,762)$
2027 (99,391)$
2028 (89,443)$
2029 (58,528)$
Police and Fire Fund Pension Costs
At December 31, 2025, the City reported a liability of $596,286 for its proportionate share of the Police and Fire Fund’s net
pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of that date. The City’s 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, 2024 through June 30, 2025, relative to the total employer contributions received from all of PERA’s
participating employers. The City’s proportionate share was 0.0509 percent at the end of the measurement period and 0.0445
percent for the beginning of the period.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
53
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2025. The
contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in
supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state aid was paid
on October 1, 2024. The direct state aid payment will increase by $17.7 million which was paid on October 1, 2025. Thereafter,
by October 1 of each year, the state will pay $26.7 million to the Police and Fire Fund until the fund is 110 percent funded for
a minimum of three consecutive years (on an actuarial value of assets basis). The $9 million in supplemental state aid will
continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100 percent
funded for three consecutive years (on an actuarial value of assets basis). The State of Minnesota’s proportionate share of the
net pension liability associated with the City totaled $20,670.
City’s proportionate share of the net pension liability $596,286
State of Minnesota’s proportionate share of the net pension
liability associated with the City 20,670
Total $616,956
For the year ended December 31, 2025, the City recognized pension expense of $234,216 for its proportionate share of the
Police and Fire Plan’s pension expense. The City recognized $4,580 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 $9 million in supplemental state aid because this contribution was not considered to meet the
definition of a special funding situation. The City recognized $13,588 for the year ended December 31, 2025 as revenue and
an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to
the Police and Fire Fund.
At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected
and actual economic experience 275,503$ -$
Changes in actuarial assumptions 452,176 747,122
Difference between projected
and actual investment earnings - 266,131
Changes in proportionate share 368,879 10,376
Contributions paid to PERA subsequent
to the measurement date 71,148 -
Total Deferred Outflows/Inflows 1,167,706$ 1,023,629$
The $71,148 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
54
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense
as follows:
Year ended
December 31, Pension Expense
2026 233,107$
2027 (37,292)$
2028 (217,625)$
2029 60,790$
2030 33,949$
Aggregate Pension Expense
The total pension expense for all plans recognized by the City for the year ended December 31, 2025 was negative $24,252.
Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a
regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected
future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term
rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation
and best estimates of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class
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, 2025, 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 7.00 percent. The 7.00 percent assumption is based on a review of inflation and investment return
assumptions from a number of national investment consulting firms. The review provided a range of investment return rates
considered reasonable by the actuary. An investment return of 7.00 percent is within that range.
• Inflation is assumed to be 2.25 percent for the General Employees Plan and Police & Fire Plan.
• Benefit increases after retirement are assumed to be 1.50 percent for the General Employees Plan and 1.00 percent for
the Police & Fire Plan.
Salary growth assumptions in the General Employees Plan range in annual increments from 11.50 percent after one year of
service to 3.00 percent after 27 years of service. In the Police & Fire Plan, salary growth assumptions range in annual increments
from 10.75 percent after one year of service to 3.00 percent after 23 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates
for the Police & Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly
to fit PERA’s experience.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
55
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
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. The assumption changes were adopted by the board and became
effective with the July 1, 2025 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2025:
General Employees Fund
Changes in Actuarial Assumptions:
• The combined service annuity loading factors increased from 15 percent to 19 percent for vested terminated members
and from 3 percent to 44 percent for non-vested, terminated members.
• The assumed post-retirement benefit increase changed from 1.25 percent to 1.5 percent.
Changes in Plan Provisions:
• The post-retirement benefit increase formula changed to 100 percent of the Social Security annual increase, between
1 percent and 1.75 percent, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less
than 85 percent for the last two consecutive annual valuations or is less than 80 percent in the most recent actuarial
valuation, the maximum is reduced to 1.5 percent. Previously, the benefit increase was 50 percent of the Social
Security annual increase, between 1 percent and 1.5 percent.
• The 1 percent additional employer contribution is eliminated when the plan reaches 98 percent funded status (on an
actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100 percent
funded status.
Police and Fire Fund
Changes in Actuarial Assumptions:
• Assumed rates of salary increases were reduced slightly.
• Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an
overall increase in reduced (early) retirements.
• Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first
few years of employment.
• Assumed rates of disabled retirement were significantly increased, especially for ages over age 30.
• Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience.
• Percent married assumption for female retirees lowered from 70 percent to 65 percent.
• Minor changes were made to form of payment assumptions for retirees.
• Minor changes were made to assumptions made with respect to missing participant data.
• The combined service annuity load changed from 33 percent to 13 percent for vested, terminated members and from
2 percent to 38 percent for non-vested, terminated members.
Changes in Plan Provisions:
• The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from
36 months to 24 months for a full increase).
• The January 1, 2026 benefit increase changed from 1 percent to 3 percent; subsequent January 1 increases will be 1
percent.
• The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90 percent
funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100 percent funded for
both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis).
• The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048
or 100 percent funded for a minimum of three consecutive years to 110 percent funded for a minimum of three
consecutive years (on an actuarial value of assets basis).
• An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through
June 30, 2048.
• Join and survivor actuarial equivalent factors were updated to reflect changes in assumptions.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
56
NOTE 3 DEFINED BENEFIT PENSION PLANS – STATEWIDE (Continued)
Discount Rate
The discount rate used to measure the total pension liability in 2025 was 7.00 percent. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota
Statutes. Based on these assumptions, the fiduciary net position of the General Employees and the Police and Fire Plans were
projected to be available to make all projected future benefit payments of current plan members. The long-term expected rate
of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension
liability.
Pension Liability Sensitivity
The following table presents the City's proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension
liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the
current discount rate:
6.00% $ 1,999,906 6.00%1,562,396$
7.00%823,399$ 7.00%596,286$
8.00%(131,014)$ 8.00%(197,043)$ 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 STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN
Plan Description
The Lake Elmo Firefighters Relief Association participates in the Statewide Volunteer Firefighter Retirement Plan (accounted
for in the Volunteer Firefighter Fund), an agent multiple-employer lump-sum defined benefit pension plan administered by the
Public Employees Retirement Association of Minnesota (PERA). The Volunteer Firefighter Plan covers volunteer firefighters
of municipal fire departments or independent nonprofit firefighting corporations that have elected to join the plan. As of
December 31, 2024, the plan covered 29 active firefighters and 10 vested terminated firefighters whose pension benefits are
deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter 353 G.
Benefits Provided
The Volunteer Firefighter Plan provides retirement, death, and supplemental benefits to covered firefighters and survivors.
Benefits are paid based on the number of years of service multiplied by a benefit level approved by the City. Members are
eligible for a lump-sum retirement benefit at 50 years of age with either five or ten years of service, depending on the vesting
schedule selected. Plan provisions include a pro-rated vesting schedule that increases from 5 years at 40 percent through 20
years at 100 percent.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
57
NOTE 4 STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN (Continued)
Contributions
The Volunteer Firefighter Plan is funded by fire state aid, investment earnings and, if necessary, employer contributions as
specified in Minnesota Statutes, and voluntary City contributions. The State of Minnesota contributed $171,565 in fire state
aid to the fund for the year ended December 31, 2024. Required employer contributions are calculated annually based on
statutory provisions. The City’s contributions were equal to the required contributions as set by state statute, if applicable. The
City did not make any voluntary contributions to the plan.
Pension Costs
At December 31, 2025, the City of Lake Elmo reported a net pension asset of $563,375 for the Volunteer Firefighter Fund.
The net pension asset was measured as of December 31, 2024. The total pension liability used to calculate the net pension asset
in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data certified by the
fire department. The following table presents the changes in net pension liability during the year.
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Beginning Balance 12/31/23 742,166$ 1,398,841$ (656,675)$
Adjustment for Transition to SVF 181,960 (56,775) 238,735
Service Cost 90,387 - 90,387
Interest on Pension Liability 59,664 - 59,664
Projected Investment Earnings - 83,822 (83,822)
Contributions (Employer)- 34,500 (34,500)
Contributions (State)- 117,613 (117,613)
Asset (Gain)/Loss - 61,531 (61,531)
Benefit Payments (40,215) (40,215) -
Administrative Fee - (1,980) 1,980
Net Changes 291,796 198,496 93,300
Balance End of Year 12/31/24 1,033,962$ 1,597,337$ (563,375)$
For the year ended December 31, 2025, the City recognized pension expense of $66,449.
At December 31, 2025, the City of Lake Elmo reported deferred inflows of resources and deferred outflows of resources for
contributions made after the measurement date related to pensions from the following sources:
Deferred Outflows of Deferred Inflows of
Resources Resources
Differences between expected
and actual economic experience -$ 49,225$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
58
NOTE 4 STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN (Continued)
Other 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
2026 (12,306)$
2027 (12,306)$
2028 (12,306)$
2029 (12,307)$
Actuarial Assumptions
The total pension asset at the December 31, 2024 measurement date was determined using the entry age normal actuarial cost
method and the following actuarial assumptions:
• Retirement eligibility at the later of age 50 or when fully vested
• Investment rate of return of 6.00 percent
Discount Rate
The discount rate used to measure the total pension liability was six percent. The projection of cash flows used to determine
the discount rate assumed that contributions to the Volunteer Firefighter Fund will be made at a rate equal to the actuarially
determined contribution rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension
liability.
Pension Liability Sensitivity
The following presents the City’s net pension asset for the Volunteer Firefighter Fund, 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 (5.00%)Discount Rate (6.00%)Discount Rate (7.00%)
Net Pension Asset (519,819)$ (563,375)$ (603,951)$
Plan Investments
Investment Policy:
The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota Constitution to invest all state
funds. Its membership as specified in the Constitution is comprised of the governor (who is designated as chair of the board),
state auditor, secretary of state and state attorney general.
All investments undertaken by the SBI are governed by the prudent person rule and other standards codified in Minnesota
Statutes, Chapter 11A and Chapter 353G.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
59
NOTE 4 STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN (Continued)
Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the Investment Advisory Council,
establishes investment policy for all funds under its control. These investments policies are tailored to the particular needs of
each fund and specify investment objectives, risk tolerance, asset allocation, investment management structure and specific
performance standards. Studies guide the on-going management of the funds and are updated periodically.
Asset Allocation:
To match the long-term nature of the pension obligations, the SBI maintains a strategic asset allocation for the Volunteer
Firefighter Plan that includes allocations to domestic equity, international equity, bonds and cash equivalents. The long-term
target asset allocation and long-term expected real rate of return is the following:
Long-Term Expected
Asset Class Target Allocation Real Rate of Return
Domestic Stocks 35% 5.10%
International Stocks 15% 5.30%
Bonds 45% 0.75%
Unallocated Cash 5% 0.00%
The six percent long-term expected rate of return on pension plan investments was determined using a building-block method.
Best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset cl ass
using both long-term historical returns and long-term capital market expectations from a number of investment management
and consulting organizations. The asset class estimates and the target allocations were then combined to produce a geometric,
long-term expected real rate of return for the portfolio. Inflation expectations were applied to derive the nominal rate of return
for the portfolio.
Description of significant investment policy changes during the year:
The SBI made no significant changes to their investment policy during calendar year 2024 for the Volunteer Firefighter Fund.
Pension Plan Fiduciary Net Position
Detailed information about the Volunteer Firefighter Fund’s fiduciary net position as of June 30, 2024, is available in a
separately-issued PERA financial report that includes financial statements and required supplementary information. That report
may be obtained at www.mnpera.org.
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
60
NOTE 5 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued)
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, 2025, the City did not make any direct contributions to the
plan.
Net OPEB Liabilities, OPEB Expense, and Deferred Outflows/Inflows of Resources
At December 31, 2025, the City reported a net OPEB liability of $67,498 for the City’s plan. The net OPEB liability was
measured as of December 31, 2024, based on an actuarial valuation as of December 31, 2023.
For the year ended December 31, 2025, the City recognized OPEB expense of $5,506.
In accordance with the Alternative Measurement Method, gains and losses due to experience and assumption changes are
recognized immediately. In addition, there were no contributions between the measurement date and reporting date because
the City has no retirees and no active employees who were expected to retire during 2025. Therefore, there are no deferred
outflows or inflows of resources related to OPEB as of December 31, 2025.
Changes in the Net OPEB Liability
The following table summarizes changes in the net OPEB liability for the year ended December 31, 2025:
Changes in Total OPEB Liability (TOL)
Balance at January 1st 61,992$
Service Cost 9,208
Interest Cost 2,599
Changes in Assumptions (1,780)
Benefit Payments (4,521)
Balance at December 31st 67,498$
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
61
NOTE 5 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued)
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, 2024
Actuarial Cost Method Entry Age Normal level percentage of pay
Actuarial Assets None
Actuarial Assumptions:
Discount Rate 4.08%
Inflation 2.50%
Bond Yield 4.08%
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.
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 3.77 percent to 4.08 percent based on updated 20-year municipal bonds rates.
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 5.08% $62,118
Current Discount Rate 4.08% $67,498
1% Decrease in Discount Rate 3.08% $73,439
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 $77,376
Current Healthcare Trend Rates $67,498
1% Decrease in Healthcare Trend Rates $59,373
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
DECEMBER 31, 2025
62
NOTE 6 OTHER NOTES
6.A. RISK MANAGEMENT
Claims and Judgements
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions;
injuries to employees; and natural disasters. To manage these risks, the City purchases commercial insurance. The City retains
risk for the deductible portions of the insurance. The amounts of these deductibles are considered immaterial to the financial
statements. There were no significant reductions in insurance from the previous year settlements in excess of insurance for any
of the past two years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Liabilities, if any, include an amount for claims that have been incurred but not reported. The City’s management is not aware
of any incurred but not reported claims.
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 $3,299 for the year ended December 31, 2025.
6.C. COMMITMENTS
During the year, the City entered into a contract for a 2027 F-009 Fire Truck purchase totaling $1,120,924.
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 bids for two construction
projects, totaling $2,257,791.
63
REQUIRED SUPPLEMENTARY
INFORMATION
CITY OF LAKE ELMO, MINNESOTA
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 2025
64
Actual Variance with
Amounts Budget
Budgetary Over
Original Final Basis (Under)
REVENUES
Taxes
Property Taxes 5,588,958$ 5,588,958$ 5,424,661$ (164,297)$
Franchise Fees 65,000 65,000 85,459 20,459
Gravel Tax - - 62 62
Total Taxes 5,653,958 5,653,958 5,510,182 (143,776)
Licenses and Permits 1,011,995 1,011,995 1,687,800 675,805
Intergovernmental Revenue
State Revenue
Market Value Credit - - 4,975 4,975
Police and Fire Aid - - 171,565 171,565
Other State Grants and Aids 222,835 222,835 453,978 231,143
County Revenue
Other County Grants and Aids 17,273 17,273 43,219 25,946
Total Intergovernmental Revenue 240,108 240,108 673,737 433,629
Charges for Services
General Government 285,712 285,712 337,665 51,953
Other Public Safety 487,500 487,500 839,724 352,224
Streets and Highways 2,000 2,000 4,345 2,345
Total Charges for Services 775,212 775,212 1,181,734 406,522
Fines and Forfeitures 30,000 30,000 66,081 36,081
Miscellaneous Revenue
Investment Earnings (Losses)83,200 83,200 871,385 788,185
Lease Interest - - 62,512 62,512
Refunds and Reimbursements 5,500 5,500 6,622 1,122
Contributions and Donations 8,500 8,500 25,971 17,471
Other Miscellaneous 10,500 10,500 14,810 4,310
Total Miscellaneous Revenue 107,700 107,700 981,300 873,600
TOTAL REVENUES 7,818,973 7,818,973 10,100,834 2,281,861
Budgeted Amounts
CITY OF LAKE ELMO, MINNESOTA
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (Continued)
FOR THE YEAR ENDED DECEMBER 31, 2025
65
Actual Variance with
Amounts Budget
Budgetary Over
Original Final Basis (Under)
EXPENDITURES
General Government
Mayor and Council 73,328$ 73,328$ 96,285$ 22,957$
Administration and Finance 1,154,622 1,154,122 1,082,008 (72,114)
Other General Government 676,533 678,533 589,768 (88,765)
Total General Government 1,904,483 1,905,983 1,768,061 (137,922)
Public Safety
Police
Current 1,396,730 1,395,230 1,379,916 (15,314)
Fire
Current 1,540,193 1,540,193 1,863,220 323,027
Building Inspections
Current 1,084,079 1,084,079 1,094,060 9,981
Other Public Safety
Current 69,000 69,000 76,937 7,937
Total Public Safety 4,090,002 4,088,502 4,414,133 325,631
Public Works
Street Maintenance and Storm Sewers 1,113,817 1,113,817 1,033,949 (79,868)
Snow and Ice Removal 15,000 15,000 13,420 (1,580)
Street Engineering 20,000 20,000 30,447 10,447
Street Lighting 67,000 67,000 68,470 1,470
Total Public Works 1,215,817 1,215,817 1,146,286 (69,531)
Culture and Recreation
Parks and Recreation
Current 687,512 687,512 472,294 (215,218)
TOTAL EXPENDITURES 7,897,814 7,897,814 7,800,774 (97,040)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (78,841) (78,841) 2,300,060 2,378,901
OTHER FINANCING SOURCES (USES)
Sale of Assets 132,842 132,842 - (132,842)
Transfers
To Other Funds (19,000) (19,000) (19,000) -
TOTAL OTHER FINANCING SOURCES (USES)113,842 113,842 (19,000) (132,842)
NET CHANGE IN FUND BALANCE 35,001$ 35,001$ 2,281,060 2,246,059$
FUND BALANCE - BEGINNING 10,324,572
FUND BALANCE - ENDING 12,605,632$
Budgeted Amounts
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY’S PROPORTIONATE
SHARE OF THE NET PENSION LIABILITY
LAST TEN YEARS
66
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
2025 0.0248%823,399$ 19,863$ 843,262$ 2,250,320$ 37.5%90.8%
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%
Public Employees Police and Fire Pension Plan
2025 0.0509%596,286$ 20,670$ 616,956$ 772,379$ 79.9%91.8%
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%
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CITY PENSION CONTRIBUTIONS
LAST TEN YEARS
67
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
2025 171,776$ 171,776$ -$ 2,290,347$ 7.5%
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%
Public Employees Police and Fire Pension Plan
2025 144,921$ 144,921$ -$ 818,763$ 17.7%
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%
Statewide Volunteer Firefighter Pension Plan
2025 -$ -$ -$ N/A N/A
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
68
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Changes in Total Pension Liability (TPL)
Balance at January 1st 742,166$ 708,203$ 864,850$ 775,033$ 724,844$ 898,899$ 681,802$ 618,531$ 588,689$ 714,621$
Adjustment for Transition to SVF 181,960 - - - - - - - - -
Service Cost 90,387 39,919 47,844 46,677 38,225 37,293 28,420 27,727 27,579 28,520
Interest on the TPL 59,664 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 - - -
Gain or Loss - - (124,184) - (27,779) - (80,312) - (46,403) -
Benefit Payments (40,215) (47,604) (109,933) - - (253,525) (100,987) - - (191,582)
Balance at December 31st 1,033,962$ 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 1,398,841$ 1,273,445$ 1,462,205$ 1,280,455$ 1,097,917$ 1,169,306$ 1,279,379$ 1,075,446$ 963,628$ 1,155,598$
Adjustment for Transition to SVF (56,775) - - - - - - - - -
Fire State Aid 117,613 118,613 101,778 80,470 76,608 69,975 65,533 61,147 59,136 61,166
Municipal Contributions 34,500 - - - - - - - - -
Projected Investment Income 83,822 75,039 76,145 68,948 - - - - - -
Gain or Loss 61,531 (12,802) (241,246) 47,138 118,822 127,902 (61,227) 156,879 70,101 (48,240)
Total Additions 240,691 180,850 (63,323) 196,556 195,430 197,877 4,306 218,026 129,237 12,926
Benefit Payments (40,215) (47,604) (109,933) - - (253,525) (100,987) - - (191,582)
Administrative Expenses (1,980) (7,850) (15,504) (14,806) (12,892) (15,741) (13,392) (14,093) (17,419) (13,314)
Total Reductions (42,195) (55,454) (125,437) (14,806) (12,892) (269,266) (114,379) (14,093) (17,419) (204,896)
Balance at December 31st 1,597,337$ 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 (563,375)$ (656,675)$ (565,242)$ (597,355)$ (505,422)$ (373,073)$ (270,407)$ (597,577)$ (456,915)$ (374,939)$
PFNP as a Percentage of TPL 154%188%180%169%165%151%130%188%174%164%
Measurement Period Ending December 31,
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF CHANGES IN CITY’S NET OPEB LIABILITY
LAST TEN YEARS (Presented Prospectively)
69
2024 2023 2022 2021 2020 2019 2018 2017
Changes in Total OPEB Liability (TOL)
Balance at January 1st 61,992$ 89,125$ 96,581$ 99,789$ 79,303$ 73,788$ 63,930$ 51,220$
Service Cost 9,208 11,395 14,941 15,989 13,859 9,793 9,525 8,200
Interest on the TPL 2,599 3,919 1,987 2,300 2,541 3,101 2,431 2,264
Assumption Changes (1,780) (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 (4,521) (7,486) (7,086) (1,576) (1,497) - - -
Balance at December 31st 67,498$ 61,992$ 89,125$ 96,581$ 99,789$ 79,303$ 73,788$ 63,930$
Covered Payroll for Active Members 2,900,739$ 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 2.3%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)
70
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
2025 -$ -$ -$ 2,987,761$ 0.00%
2024 -$ -$ -$ 2,900,739$ 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, 2025
71
NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND
2025 Changes
Changes in Actuarial Assumptions
• The combined service annuity loading factors increased from 15 percent to 19 percent for vested terminated members
and from 3 percent to 44 percent for non-vested, terminated members.
• The assumed post-retirement benefit increase changed from 1.25 percent to 1.5 percent.
Changes in Plan Provisions
• The post-retirement benefit increase formula changed to 100 percent of the Social Security annual increase, between
1 percent and 1.75 percent, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less
than 85 percent for the last two consecutive annual valuations or is less than 80 percent in the most recent actuarial
valuation, the maximum is reduced to 1.5 percent. Previously, the benefit increase was 50 percent of the Social
Security annual increase, between 1 percent and 1.5 percent.
• The 1 percent additional employer contribution is eliminated when the plan reaches 98 percent funded status (on an
actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100 percent
funded status.
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
72
NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND (Continued)
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.
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
73
NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND (Continued)
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.
• 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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
74
NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND (Continued)
• 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.
NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND
2025 Changes
Changes in Actuarial Assumptions
• Assumed rates of salary increases were reduced slightly.
• Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an
overall increase in reduced (early) retirements.
• Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first
few years of employment.
• Assumed rates of disabled retirement were significantly increased, especially for ages over age 30.
• Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience.
• Percent married assumption for female retirees lowered from 70 percent to 65 percent.
• Minor changes were made to form of payment assumptions for retirees.
• Minor changes were made to assumptions made with respect to missing participant data.
• The combined service annuity load changed from 33 percent to 13 percent for vested, terminated members and from
2 percent to 38 percent for non-vested, terminated members.
Changes in Plan Provisions
• The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from
36 months to 24 months for a full increase).
• The January 1, 2026 benefit increase changed from 1 percent to 3 percent; subsequent January 1 increases will be 1
percent.
• The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90 percent
funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100 percent funded for
both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis).
• The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048
or 100 percent funded for a minimum of three consecutive years to 110 percent funded for a minimum of three
consecutive years (on an actuarial value of assets basis).
• An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through
June 30, 2048.
• Join and survivor actuarial equivalent factors were updated to reflect changes in assumptions.
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
75
NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued)
• 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.
• 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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
76
NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued)
• 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
• Annual 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.
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
77
NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued)
• 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 annual 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 annual 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.
NOTE 3 STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN
2024 Changes
Changes in Actuarial Assumptions
• Administrative Expenses were updated to $60 per participant beginning in plan year 2025.
Changes in Plan Provisions
• The benefit level changed from $7,000 per year of service in the December 31, 2024 valuation to $8,000 per year of
service in this valuation.
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
78
NOTE 3 STATEWIDE VOLUNTEER FIREFIGHTER RETIREMENT PLAN (Continued)
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.
NOTE 4 OTHER POSTEMPLOYMENT BENEFIT PLAN
2025 Changes
Changes in Actuarial Assumptions:
• The discount rate was changed from 3.77 percent to 4.08 percent based on updated 20-year municipal bonds rates.
Changes in Plan Provisions:
• There were no changes in plan provisions since the prior valuation.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
79
NOTE 4 OTHER POSTEMPLOYMENT BENEFIT PLAN (Continued)
2024 Changes
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 percent to 20 percent to reflect
recent plan experience.
Changes in Plan Provisions:
• There were no changes in plan provisions since the prior valuation.
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.
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.
CITY OF LAKE ELMO, MINNESOTA
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
DECEMBER 31, 2025
80
NOTE 4 OTHER POSTEMPLOYMENT BENEFIT PLAN (Continued)
• 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.
81
SUPPLEMENTARY INFORMATION
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERMENTAL FUNDS
DECEMBER 31, 2025
82
Total Nonmajor
Special Revenue
Funds
Total Nonmajor
Capital Project
Funds
Total Nonmajor
Governmental
Funds
ASSETS
Cash, Cash Equivalents, and Investments 108,676$ 9,367,785$ 9,476,461$
Assessments Receivable - 19,069 19,069
Accounts Receivable - 146,894 146,894
Interest Receivable 251 32,861 33,112
TOTAL ASSETS 108,927$ 9,566,609$ 9,675,536$
LIABILITIES
Accounts Payable 883$ 259,045$ 259,928$
Construction Contracts Payable - 265,983 265,983
Due to Other Funds - 2,568,487 2,568,487
Unearned Revenue - 250,000 250,000
Total Liabilities 883 3,343,515 3,344,398
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Special Assessments - 19,069 19,069
FUND BALANCES
Restricted 7,215 5,868,506 5,875,721
Committed 37,322 - 37,322
Assigned 63,507 3,134,534 3,198,041
Unassigned - (2,799,015) (2,799,015)
Total Fund Balances 108,044 6,204,025 6,312,069
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 108,927$ 9,566,609$ 9,675,536$
CITY OF LAKE ELMO, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2025
83
Total Nonmajor
Special Revenue
Funds
Total Nonmajor
Capital Project
Funds
Total Nonmajor
Governmental
Funds
REVENUES
Property Taxes -$ 1,243,333$ 1,243,333$
Franchise Fees - 288,876 288,876
Special Assessments - 1,130 1,130
Intergovernmental - 20,333 20,333
Charges for Services 58,500 655,691 714,191
Investment Earnings (Losses)3,226 409,996 413,222
Miscellaneous 7,109 14,510 21,619
TOTAL REVENUES 68,835 2,633,869 2,702,704
EXPENDITURES
Current:
Public Safety - 9,244 9,244
Public Works - 4,487 4,487
Parks and Recreation - 192,540 192,540
Economic Development - 28 28
Capital Outlay 883 6,105,395 6,106,278
Debt Service:
Interest and Other Charges - 44,926 44,926
TOTAL EXPENDITURES 883 6,356,620 6,357,503
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 67,952 (3,722,751) (3,654,799)
OTHER FINANCING SOURCES (USES)
Sale of Assets - 67,000 67,000
Bond Issuance - 2,025,000 2,025,000
Premium on Bond Issuance - 146,826 146,826
Transfers In - 1,349,749 1,349,749
Transfers Out - (2,000,000) (2,000,000)
TOTAL OTHER FINANCING
SOURCES (USES)- 1,588,575 1,588,575
NET CHANGE IN FUND BALANCES 67,952 (2,134,176) (2,066,224)
FUND BALANCES - BEGINNING 40,092 6,750,582 6,790,674
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - 1,587,619 1,587,619
FUND BALANCES - BEGINNING 40,092 8,338,201 8,378,293
(As Adjusted)
FUND BALANCES - ENDING 108,044$ 6,204,025$ 6,312,069$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
DECEMBER 31, 2025
84
Lions Park Sign
Program Fund
Economic
Development
Authority Fund Tree Fund
Lawful Gambling
Fund
Total Nonmajor
Special Revenue
Funds
ASSETS
Cash, Cash Equivalents, and Investments 37,201$ 13,424$ 50,845$ 7,206$ 108,676$
Interest Receivable 121 46 75 9 251
TOTAL ASSETS 37,322$ 13,470$ 50,920$ 7,215$ 108,927$
LIABILITIES
Accounts Payable -$ -$ 883$ -$ 883$
FUND BALANCES
Restricted - - - 7,215 7,215
Committed 37,322 - - - 37,322
Assigned - 13,470 50,037 - 63,507
Total Fund Balances 37,322 13,470 50,037 7,215 108,044
TOTAL LIABILITIES AND
FUND BALANCES 37,322$ 13,470$ 50,920$ 7,215$ 108,927$
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, 2025
85
Lions Park Sign
Program Fund
Economic
Development
Authority Fund Tree Fund
Lawful Gambling
Fund
Total Nonmajor
Special Revenue
Funds
REVENUES
Charges for Services 8,500$ -$ 50,000$ -$ 58,500$
Investment Earnings (Losses)1,583 617 920 106 3,226
Miscellaneous - - - 7,109 7,109
TOTAL REVENUES 10,083 617 50,920 7,215 68,835
EXPENDITURES
Capital Outlay - - 883 - 883
NET CHANGE IN FUND BALANCES 10,083 617 50,037 7,215 67,952
FUND BALANCES - BEGINNING 27,239 12,853 - - 40,092
FUND BALANCES - ENDING 37,322$ 13,470$ 50,037$ 7,215$ 108,044$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2025
86
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 2,655,654$ 937,252$ 253,553$ 1,551,460$ 902,337$ 107,430$ 290,316$ -$
Assessments Receivable - - - - 19,069 - - -
Accounts Receivable - - - 14,510 66,192 - - -
Interest Receivable 9,145 2,155 (6,088) 12,472 2,631 368 994 -
TOTAL ASSETS 2,664,799$ 939,407$ 247,465$ 1,578,442$ 990,229$ 107,798$ 291,310$ -$
LIABILITIES
Accounts Payable -$ -$ -$ 78,427$ 5,288$ -$ -$ -$
Construction Contracts Payable - - - - - - - -
Due to Other Funds - - - - - - - 48,389
Unearned Revenue - - - - - - 250,000 -
Total Liabilities - - - 78,427 5,288 - 250,000 48,389
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue:
Special Assessments - - - - 19,069 - - -
FUND BALANCES
Restricted 2,664,799 - 247,465 1,500,015 - - - -
Assigned - 939,407 - - 965,872 107,798 41,310 -
Unassigned - - - - - - - (48,389)
Total Fund Balance 2,664,799 939,407 247,465 1,500,015 965,872 107,798 41,310 (48,389)
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 2,664,799$ 939,407$ 247,465$ 1,578,442$ 990,229$ 107,798$ 291,310$ -$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2025
87
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
ASSETS
Cash, Cash Equivalents,
and Investments 141,567$ -$ -$ 2,796$ 133,961$ -$ -$ 385,132$
Assessments Receivable - - - - - - - -
Accounts Receivable - - - - - - - -
Interest Receivable 1,803 (463) - 10 922 - - 1,318
TOTAL ASSETS 143,370$ (463)$ -$ 2,806$ 134,883$ -$ -$ 386,450$
LIABILITIES
Accounts Payable 4,663$ -$ -$ -$ -$ -$ 13,628$ -$
Construction Contracts Payable 27,306 - - - - - - -
Due to Other Funds - 272,542 3,525 - - 14,113 39,958 -
Unearned Revenue - - - - - - - -
Total Liabilities 31,969 272,542 3,525 - - 14,113 53,586 -
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue:
Special Assessments - - - - - - - -
FUND BALANCES
Restricted - - - - 134,883 - - 386,450
Assigned 111,401 - - 2,806 - - - -
Unassigned - (273,005) (3,525) - - (14,113) (53,586) -
Total Fund Balance 111,401 (273,005) (3,525) 2,806 134,883 (14,113) (53,586) 386,450
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 143,370$ (463)$ -$ 2,806$ 134,883$ -$ -$ 386,450$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2025
88
Old Village
Phase 7 Fund
2023 Street
Improvements
Fund
CSAH 15
(Manning Ave)
Phase 3 Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd
Imp-Seg A-
InwdHdrx Fund
15th Street N
Improvement
Fund
30th St N Gap
Segmt
Improvement
Fund
Fire Equipment
& Project Fund
ASSETS
Cash, Cash Equivalents,
and Investments -$ 282,901$ -$ 713,357$ -$ 62,280$ -$ 177,875$
Assessments Receivable - - - - - - - -
Accounts Receivable - - - - - - - -
Interest Receivable - 968 - 2,391 2,632 213 - 780
TOTAL ASSETS -$ 283,869$ -$ 715,748$ 2,632$ 62,493$ -$ 178,655$
LIABILITIES
Accounts Payable -$ -$ -$ -$ 94$ -$ -$ -$
Construction Contracts Payable - - - - 110,444 - - -
Due to Other Funds 52,276 - 4,212 - 259,391 - 470,808 -
Unearned Revenue - - - - - - - -
Total Liabilities 52,276 - 4,212 - 369,929 - 470,808 -
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue:
Special Assessments - - - - - - - -
FUND BALANCES
Restricted - - - 715,748 - - - -
Assigned - 283,869 - - - 62,493 - 178,655
Unassigned (52,276) - (4,212) - (367,297) - (470,808) -
Total Fund Balance (52,276) 283,869 (4,212) 715,748 (367,297) 62,493 (470,808) 178,655
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES -$ 283,869$ -$ 715,748$ 2,632$ 62,493$ -$ 178,655$
CITY OF LAKE ELMO, MINNESOTA
COMBINING BALANCE SHEET (Continued)
NONMAJOR CAPITAL PROJECT FUNDS
DECEMBER 31, 2025
89
Street
Maintenance
Fund
2025 Street &
Utility Imprvmts
Fund
Stillwater Area
Sch Dist Util
Fund
City Center
Reserve Fund
Park Reserve -
Levied/Franchise
Fees Only Fund
2026 Street &
Utility
Improvements
Fund
Total Nonmajor
Capital Project
Funds
ASSETS
Cash, Cash Equivalents,
and Investments 255,365$ 300,432$ -$ 34,296$ 179,821$ -$ 9,367,785$
Assessments Receivable - - - - - - 19,069
Accounts Receivable - - - - 66,192 - 146,894
Interest Receivable 211 258 - - 141 - 32,861
TOTAL ASSETS 255,576$ 300,690$ -$ 34,296$ 246,154$ -$ 9,566,609$
LIABILITIES
Accounts Payable 95,103$ 10,872$ 2,361$ -$ -$ 48,609$ 259,045$
Construction Contracts Payable - 70,672 57,561 - - - 265,983
Due to Other Funds - - 1,299,473 - - 103,800 2,568,487
Unearned Revenue - - - - - - 250,000
Total Liabilities 95,103 81,544 1,359,395 - - 152,409 3,343,515
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue:
Special Assessments - - - - - - 19,069
FUND BALANCES
Restricted - 219,146 - - - - 5,868,506
Assigned 160,473 - - 34,296 246,154 - 3,134,534
Unassigned - - (1,359,395) - - (152,409) (2,799,015)
Total Fund Balance 160,473 219,146 (1,359,395) 34,296 246,154 (152,409) 6,204,025
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES 255,576$ 300,690$ -$ 34,296$ 246,154$ -$ 9,566,609$
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, 2025
90
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
REVENUES
Property Taxes -$ 400,000$ -$ -$ 93,333$ -$
Franchise Fees - - - - 144,438 -
Special Assessments - - - - 1,130 -
Intergovernmental - - - - 20,333 -
Charges for Services 655,691 - - - - -
Investment Earnings (Losses)124,982 32,238 4,682 82,575 35,061 4,931
Miscellaneous - - - 14,510 - -
TOTAL REVENUES 780,673 432,238 4,682 97,085 294,295 4,931
EXPENDITURES
Current:
Public Safety - - - - - -
Public Works - - - - - -
Parks and Recreation 176,836 - - - - -
Economic Development - - - - 28 -
Capital Outlay 124,382 257,149 - 59,531 22,423 -
Debt Service:
Interest and Other Charges - - - - - -
TOTAL EXPENDITURES 301,218 257,149 - 59,531 22,451 -
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES 479,455 175,089 4,682 37,554 271,844 4,931
OTHER FINANCING
SOURCES (USES)
Sale of Assets - 67,000 - - - -
Bond Issuance - - - - - -
Premium on Bond Issuance - - - - - -
Transfers In - - - - - -
Transfers Out (1,000,000) - - - - -
TOTAL OTHER FINANCING
SOURCES (USES)(1,000,000) 67,000 - - - -
NET CHANGE IN FUND BALANCES (520,545) 242,089 4,682 37,554 271,844 4,931
FUND BALANCES - BEGINNING 3,185,344 697,318 242,783 1,462,461 694,028 102,867
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - - - - - -
FUND BALANCES - BEGINNING 3,185,344 697,318 242,783 1,462,461 694,028 102,867
(As Adjusted)
FUND BALANCES - ENDING 2,664,799$ 939,407$ 247,465$ 1,500,015$ 965,872$ 107,798$
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, 2025
91
Manning &
Hudson Future
Stoplight Fund
CSAH 13 Phase
2 Fund
Railroad
Crossing
Improvements
Fund
Old Village
Phases 5 & 6
Fund
CSAH 15
Manning Avenue
Phase 3 Fund
Manning &
Highway 36
Interchange Fund
REVENUES
Property Taxes -$ -$ -$ -$ -$ -$
Franchise Fees - - - - - -
Special Assessments - - - - - -
Intergovernmental - - - - - -
Charges for Services - - - - - -
Investment Earnings (Losses)13,326 - 22,065 (463) - 129
Miscellaneous - - - - - -
TOTAL REVENUES 13,326 - 22,065 (463) - 129
EXPENDITURES
Current:
Public Safety - - - - - -
Public Works - - - - - -
Parks and Recreation - - - - - -
Economic Development - - - - - -
Capital Outlay - - 855,213 - - -
Debt Service:
Interest and Other Charges - - - - - -
TOTAL EXPENDITURES - - 855,213 - - -
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES 13,326 - (833,148) (463) - 129
OTHER FINANCING
SOURCES (USES)
Sale of Assets - - - - - -
Bond Issuance - - - - - -
Premium on Bond Issuance - - - - - -
Transfers In - - 1,000,000 - - -
Transfers Out - - - - - -
TOTAL OTHER FINANCING
SOURCES (USES)- - 1,000,000 - - -
NET CHANGE IN FUND BALANCES 13,326 - 166,852 (463) - 129
FUND BALANCES - BEGINNING 27,984 (48,389) (55,451) (272,542) (3,525) 2,677
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - - - - - -
FUND BALANCES - BEGINNING 27,984 (48,389) (55,451) (272,542) (3,525) 2,677
(As Adjusted)
FUND BALANCES - ENDING 41,310$ (48,389)$ 111,401$ (273,005)$ (3,525)$ 2,806$
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, 2025
92
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
2023 Street
Improvements
Fund
REVENUES
Property Taxes -$ -$ -$ -$ -$ -$
Franchise Fees - - - - - -
Special Assessments - - - - - -
Intergovernmental - - - - - -
Charges for Services - - - - - -
Investment Earnings (Losses)6,614 - - 17,678 93 13,267
Miscellaneous - - - - - -
TOTAL REVENUES 6,614 - - 17,678 93 13,267
EXPENDITURES
Current:
Public Safety - - - - - -
Public Works - - - - - -
Parks and Recreation - - - - - -
Economic Development - - - - - -
Capital Outlay - - 41,996 - 6,806 -
Debt Service:
Interest and Other Charges - - - - - -
TOTAL EXPENDITURES - - 41,996 - 6,806 -
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES 6,614 - (41,996) 17,678 (6,713) 13,267
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 6,614 - (41,996) 17,678 (6,713) 13,267
FUND BALANCES - BEGINNING 128,269 (14,113) (11,590) 368,772 (45,563) 270,602
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - - - - - -
FUND BALANCES - BEGINNING 128,269 (14,113) (11,590) 368,772 (45,563) 270,602
(As Adjusted)
FUND BALANCES - ENDING 134,883$ (14,113)$ (53,586)$ 386,450$ (52,276)$ 283,869$
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, 2025
93
CSAH 15
(Manning Ave)
Phase 3 Fund
2024 Street &
Utility
Improvement
Fund
Hudson Blvd
Imp-Seg A-
InwdHdrx Fund
15th Street N
Improvement
Fund
30th St N Gap
Segmt
Improvement
Fund
Fire Equipment
& Project Fund
REVENUES
Property Taxes -$ -$ -$ -$ -$ -$
Franchise Fees - - - - - -
Special Assessments - - - - - -
Intergovernmental - - - - - -
Charges for Services - - - - - -
Investment Earnings (Losses)- 28,848 4,160 2,605 - 9,523
Miscellaneous - - - - - -
TOTAL REVENUES - 28,848 4,160 2,605 - 9,523
EXPENDITURES
Current:
Public Safety - - - - - 9,244
Public Works - - - - - 2,730
Parks and Recreation - - - - - -
Economic Development - - - - - -
Capital Outlay 112 12,287 590,638 389 671 184,341
Debt Service:
Interest and Other Charges - - - - - -
TOTAL EXPENDITURES 112 12,287 590,638 389 671 196,315
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES (112) 16,561 (586,478) 2,216 (671) (186,792)
OTHER FINANCING
SOURCES (USES)
Sale of Assets - - - - - -
Bond Issuance - - - - - -
Premium on Bond Issuance - - - - - -
Transfers In - 330,749 - - - 19,000
Transfers Out - - (1,000,000) - - -
TOTAL OTHER FINANCING
SOURCES (USES)- 330,749 (1,000,000) - - 19,000
NET CHANGE IN FUND BALANCES (112) 347,310 (1,586,478) 2,216 (671) (167,792)
FUND BALANCES - BEGINNING (4,100) - - 60,277 (470,137) 346,447
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - 368,438 1,219,181 - - -
FUND BALANCES - BEGINNING (4,100) 368,438 1,219,181 60,277 (470,137) 346,447
(As Adjusted)
FUND BALANCES - ENDING (4,212)$ 715,748$ (367,297)$ 62,493$ (470,808)$ 178,655$
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, 2025
94
Street
Maintenance
Fund
2025 Street &
Utility Imprvmts
Fund
Stillwater Area
Sch Dist Util
Fund
City Center
Reserve Fund
Park Reserve -
Levied/
Franchise Fees
Only Fund
2026 Street &
Utility
Improvements
Fund
Total Nonmajor
Capital Project
Funds
REVENUES
Property Taxes 600,000$ -$ -$ 50,000$ 100,000$ -$ 1,243,333$
Franchise Fees - - - - 144,438 - 288,876
Special Assessments - - - - - - 1,130
Intergovernmental - - - - - - 20,333
Charges for Services - - - - - - 655,691
Investment Earnings (Losses)2,823 3,143 - - 1,716 - 409,996
Miscellaneous - - - - - - 14,510
TOTAL REVENUES 602,823 3,143 - 50,000 246,154 - 2,633,869
EXPENDITURES
Current:
Public Safety - - - - - - 9,244
Public Works 672 712 169 - - 204 4,487
Parks and Recreation - - - 15,704 - - 192,540
Economic Development - - - - - - 28
Capital Outlay 590,097 1,847,929 1,359,226 - - 152,205 6,105,395
Debt Service:
Interest and Other Charges - 44,926 - - - - 44,926
TOTAL EXPENDITURES 590,769 1,893,567 1,359,395 15,704 - 152,409 6,356,620
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES 12,054 (1,890,424) (1,359,395) 34,296 246,154 (152,409) (3,722,751)
OTHER FINANCING
SOURCES (USES)
Sale of Assets - - - - - - 67,000
Bond Issuance - 2,025,000 - - - - 2,025,000
Premium on Bond Issuance - 146,826 - - - - 146,826
Transfers In - - - - - - 1,349,749
Transfers Out - - - - - - (2,000,000)
TOTAL OTHER FINANCING
SOURCES (USES)- 2,171,826 - - - - 1,588,575
NET CHANGE IN FUND BALANCES 12,054 281,402 (1,359,395) 34,296 246,154 (152,409) (2,134,176)
FUND BALANCES - BEGINNING 148,419 (62,256) - - - - 6,750,582
(As Previously Reported)
ADJUSTMENTS AND RESTATEMENTS
Adjustment - Change in Major Funds - - - - - - 1,587,619
FUND BALANCES - BEGINNING 148,419 (62,256) - - - - 8,338,201
(As Adjusted)
FUND BALANCES - ENDING 160,473$ 219,146$ (1,359,395)$ 34,296$ 246,154$ (152,409)$ 6,204,025$
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING BALANCE SHEET
DEBT SERVICE FUND
DECEMBER 31, 2025
95
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 42,817$ (22,588)$ 984,540$ (161,071)$ 640,428$ (151,625)$ 817,137$
Assessments Receivable - 798 752 87,616 313,274 280,426 164,607
Interest Receivable 147 - 3,025 - 1,797 - 2,348
TOTAL ASSETS 42,964$ (21,790)$ 988,317$ (73,455)$ 955,499$ 128,801$ 984,092$
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue:
Special Assessments -$ 798$ 438$ 87,598$ 312,155$ 277,263$ 164,607$
FUND BALANCE
Restricted 42,964 (22,588) 987,879 (161,053) 643,344 (148,462) 819,485
TOTAL DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE 42,964$ (21,790)$ 988,317$ (73,455)$ 955,499$ 128,801$ 984,092$
CITY OF LAKE ELMO, MINNESOTA
SUPPLEMENTAL COMBINING BALANCE SHEET (Continued)
DEBT SERVICE FUND
DECEMBER 31, 2025
96
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
2025A GO
Improvement
Bonds Fund
Total Debt
Service Fund
52,157$ 1,969,237$ 56,582$ 725,823$ 910,738$ 234,517$ 6,098,692$
- 933,603 223,202 614,714 619,030 349,600 3,587,622
37 5,251 - 1,864 2,377 202 17,048
52,194$ 2,908,091$ 279,784$ 1,342,401$ 1,532,145$ 584,319$ 9,703,362$
-$ 933,603$ 223,186$ 614,713$ 618,528$ 349,600$ 3,582,489$
52,194 1,974,488 56,598 727,688 913,617 234,719 6,120,873
52,194$ 2,908,091$ 279,784$ 1,342,401$ 1,532,145$ 584,319$ 9,703,362$
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, 2025
97
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 -$ -$ 183,303$ -$ 186,899$ 362,868$ 294,618$
Special Assessments - 299 49,531 38,338 68,554 50,953 34,391
Investment Earnings (Losses)2,358 - 40,434 - 24,182 - 31,392
TOTAL REVENUES 2,358 299 273,268 38,338 279,635 413,821 360,401
EXPENDITURES
Current:
Economic Development - 6 87 48 264 207 117
Debt Service:
Principal 190,000 - 145,000 160,000 280,000 475,000 295,000
Interest and Other Charges 3,040 - 27,245 6,620 14,793 43,058 44,590
TOTAL EXPENDITURES 193,040 6 172,332 166,668 295,057 518,265 339,707
NET CHANGE IN FUND BALANCE (190,682) 293 100,936 (128,330) (15,422) (104,444) 20,694
FUND BALANCE - BEGINNING 233,646 (22,881) 886,943 (32,723) 658,766 (44,018) 798,791
FUND BALANCE - ENDING 42,964$ (22,588)$ 987,879$ (161,053)$ 643,344$ (148,462)$ 819,485$
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, 2025
98
REVENUES
Property Taxes
Special Assessments
Investment Earnings (Losses)
TOTAL REVENUES
EXPENDITURES
Current:
Economic Development
Debt Service:
Principal
Interest and Other Charges
TOTAL EXPENDITURES
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING
FUND BALANCE - ENDING
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
2025A GO
Improvement
Bonds Fund
Total Debt
Service Fund
128,258$ 1,022,884$ 279,523$ 353,288$ 440,086$ -$ 3,251,727$
- 150,131 48,870 122,208 133,444 256,600 953,319
447 69,596 348 24,637 29,553 2,469 225,416
128,705 1,242,611 328,741 500,133 603,083 259,069 4,430,462
- 300 108 255 962 - 2,354
110,000 750,000 290,000 270,000 - - 2,965,000
10,665 314,594 182,887 156,124 192,462 24,350 1,020,428
120,665 1,064,894 472,995 426,379 193,424 24,350 3,987,782
8,040 177,717 (144,254) 73,754 409,659 234,719 442,680
44,154 1,796,771 200,852 653,934 503,958 - 5,678,193
52,194$ 1,974,488$ 56,598$ 727,688$ 913,617$ 234,719$ 6,120,873$
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF INDEBTEDNESS
FOR THE YEAR ENDED DECEMBER 31, 2025
(UNAUDITED)
99
Initial Outstanding Outstanding Principal
Issue Interest Maturity Authorized Balance Balance Due Within
Dates Rates Dates Issue 01/01/25 Issued Paid 12/31/25 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$ 190,000$ -$ 190,000$ -$ -$
2014A G.O. Improvement Bonds 7/15/2014 2.00 - 3.50%1/15/2030 2,850,000 930,000 - 145,000 785,000 150,000
2015A G.O. Improvement Bonds 8/13/2015 2.00 - 3.00%1/15/2026 1,620,000 325,000 - 160,000 165,000 165,000
2016A G.O. Improvement Bonds 6/8/2016 2.00%1/15/2027 2,690,000 855,000 - 280,000 575,000 285,000
2017A G.O. Improvement Bonds 6/8/2017 2.50%1/15/2028 4,565,000 1,940,000 - 475,000 1,465,000 485,000
2019A G.O. Improvement Bonds 10/24/2019 2.00 - 3.00%2/1/2035 2,860,000 1,795,000 - 295,000 1,500,000 300,000
2021A G.O. Improvement Bonds 12/7/2021 1.75 - 3.00%2/1/2042 15,675,000 14,195,000 - 750,000 13,445,000 770,000
2022A G.O. Improvement Bonds 8/16/2022 3.00 - 5.00%2/1/2038 3,895,000 3,700,000 - 205,000 3,495,000 215,000
2023A G.O. Improvement Bonds 7/6/2023 4.00 - 5.00%2/1/2034 3,410,000 3,410,000 - 270,000 3,140,000 285,000
2024A G.O. Improvement Bonds 8/15/2024 4.00 - 5.00%2/1/2039 4,195,000 4,195,000 - - 4,195,000 335,000
2025A G.O. Improvement Bonds 8/14/2025 4.00 - 5.00%2/1/2036 2,025,000 - 2,025,000 - 2,025,000 -
45,755,000 31,535,000 2,025,000 2,770,000 30,790,000 2,990,000
General Obligation Equipment Certificates
2018A G.O. Equipment Certificates 10/16/2018 2.70%2/1/2028 940,000 450,000 - 110,000 340,000 110,000
General Obligation Tax Abatement Bonds
2022A G.O. Tax Abatement Bonds 8/16/2022 3.00 - 5.00%2/1/2033 1,010,000 930,000 - 85,000 845,000 90,000
TOTAL GOVERNMENTAL DEBTS 47,705,000 32,915,000 2,025,000 2,965,000 31,975,000 3,190,000
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 1,940,000 - 310,000 1,630,000 305,000
2014A G.O. Improvement Bonds 7/15/2014 2.00 - 3.50%1/15/2030 3,385,000 1,495,000 - 235,000 1,260,000 240,000
2015A G.O. Improvement Bonds 8/13/2015 2.00 - 3.00%1/15/2031 1,195,000 610,000 - 80,000 530,000 85,000
2016A G.O. Improvement Bonds 6/8/2016 2.00%1/15/2032 6,855,000 3,910,000 - 455,000 3,455,000 470,000
2017A G.O. Improvement Bonds 6/8/2017 2.50 - 3.00%1/15/2033 4,480,000 2,880,000 - 290,000 2,590,000 300,000
2019A G.O. Improvement Bonds 10/24/2019 2.00 - 3.00%2/1/2035 1,195,000 925,000 - 75,000 850,000 75,000
2021A G.O. Improvement Bonds 12/7/2021 1.75 - 3.00%2/1/2037 6,310,000 5,465,000 - 420,000 5,045,000 425,000
2022A G.O. Improvement Bonds 8/16/2022 3.00 - 5.00%2/1/2037 7,590,000 6,700,000 - 390,000 6,310,000 410,000
2023A G.O. Improvement Bonds 7/6/2023 4.00 - 5.00%2/1/2038 2,000,000 1,875,000 - 100,000 1,775,000 100,000
2024A G.O. Improvement Bonds 8/15/2024 4.00 - 5.00%2/1/2039 470,000 470,000 - 30,000 440,000 25,000
37,515,000 26,270,000 - 2,385,000 23,885,000 2,435,000
IT Subscriptions
Sensus Analytics 7/3/2024 8.50%7/3/2029 92,653 88,418 - 39,872 48,546 14,301
TOTAL BUSINESS-TYPE DEBTS 37,607,653 26,358,418 - 2,424,872 23,933,546 2,449,301
TOTAL INDEBTEDNESS 85,312,653$ 59,273,418$ 2,025,000$ 5,389,872$ 55,908,546$ 5,639,301$
100
OTHER REQUIRED REPORTS
AND SCHEDULES
101
www.swco.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 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, 2025, 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 25, 2026.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Lake Elmo's internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in
the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A
material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility
that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not
designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified
certain deficiencies in internal control, described in the accompanying Schedule of Findings and Responses as item 2025-001
that we consider to be a significant deficiency.
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.
102
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 and Corrective Action
Plans. 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 25, 2026
CITY OF LAKE ELMO, MINNESOTA
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31, 2025
103
FINANCIAL STATEMENT FINDINGS IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Finding 2025-001 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
approve 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, 2025
104
FINANCIAL STATEMENT FINDINGS IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Finding 2025-001 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, 2026.
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 25, 2026
CITY OF LAKE ELMO, MINNESOTA
REQUIRED COMMUNICATIONS
June 25, 2026
Members of Governance
City of Lake Elmo, Minnesota
To the Members of Governance,
This letter has been prepared to assist you with your review of the financial statements as of and for the period ending December
31, 2025. We look forward to meeting with you and discussing the matters outlined below.
The Auditor’s Responsibilities With Regard to the Financial Statement Audit
Our Responsibilities
As your independent auditor, our responsibilities include:
• Planning and performing the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement. Reasonable assurance is a high level of assurance.
• Assessing the risks of material misstatement of the financial statements, whether due to fraud or error. Included in that
assessment is a consideration of the City’s internal control over financial reporting.
• Performing appropriate procedures based upon our risk assessment.
• Evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting
estimates made by management.
• Forming and expressing an opinion based on our audit about whether the financial statements prepared by
management with the oversight of those charged with governance:
o Are free from material misstatement
o Are presented fairly, in all material respects and in accordance with accounting principles generally accepted
in the United States of America
• Performing an audit in accordance with the standards for financial audits contained in auditing standards generally
accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of
the United States including reporting on:
o Internal control over financial reporting
o Compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statements amounts
• Our audit does not relieve management or those charged with governance of their responsibilities.
We are also required to communicate significant matters related to our audit that are relevant to the responsibilities of tho se
charged with governance, including:
• Internal control matters
• Qualitative aspects of the City’s accounting practice including policies, accounting estimates and financial statement
disclosures
• Significant unusual transactions
• Significant difficulties encountered
• Disagreements with management
• Circumstances that affect the form and content of the auditors’ report
• Audit consultations outside the engagement team
• Corrected and uncorrected misstatements
• Other audit findings or issues
Independence
We are not aware of any relationships between Schlenner Wenner & Co. and the City that, in our professional judgment, may
reasonably be thought to bear on our independence.
CITY OF LAKE ELMO, MINNESOTA
REQUIRED COMMUNICATIONS
Audit Plan
Scope and Timing of the Audit
Based on our understanding of the City and the environment in which you operate, we focused our audit on the following key
areas:
• Internal control over financial reporting
• Consideration of fraud risks
• Areas with significant estimates
• Review, recompute and substantiate financial statements amounts and disclosures
• Review application and disclosures for new accounting standards adopted
• Fair value measurements and disclosures (including alternative investments)
• Revenue recognition
• Existence and accuracy of payroll and other expenses
Our areas of audit focus were informed by, among other things, our assessment of materiality. Materiality in the context of our
audit was determined based on specific qualitative and quantitative factors combined with our expectations about the City's
current year results.
Significant changes to the audit plan
There were no significant changes made to either our planned audit strategy or to the significant risks and other areas of
emphasis identified during the performance of our risk assessment procedures.
Key Areas of Focus and Significant Issues
Significant risks of material misstatement
A significant risk is an identified and assessed risk of material misstatement that, in the auditors’ professional judgment,
requires special audit consideration. Significant risks identified and focused on during the audit were communicated to you in
a separate communication dated April 3, 2026.
Other areas of emphasis
We also focused on other areas that did not meet the definition of a significant risk but were determined to require specific
awareness and a unique audit response.
Qualitative Aspect of Accounting Practices
Accounting policies: Management is responsible for the selection and use of appropriate accounting policies. In accordance
with the terms of our engagement letter, we have advised management about the appropriateness of accounting policies and
their application.
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.
Accounting estimates: Accounting estimates, including fair value estimates, are an integral part of the financial statements
prepared by management and are based on management's knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements, the degree of subjectivity involved in their development and because of the possibility that future events
affecting them may differ significantly from those expected.
The following significant estimates/judgments are contained in the financial statements:
• Net pension liabilities/assets and related deferred outflows and inflows of resources
• Net Other Post Employment Benefit (OPEB) liabilities and related deferred outflows and inflows of resources
CITY OF LAKE ELMO, MINNESOTA
REQUIRED COMMUNICATIONS
Based on audit work performed, we are satisfied with the estimates made by management.
There have been no significant changes made by management to either the processes used to develop the particularly sensitive
accounting estimates, or to the significant assumptions used to develop the estimates, noted above.
Financial statement disclosures: The disclosures in the financial statements are neutral, consistent and clear.
Significant Unusual Transactions
There have been no significant transactions that are outside the normal course of business for the City or that otherwise appear
to be unusual due to their timing, size or nature.
Significant Difficulties Encountered
We encountered no significant difficulties in dealing with management and completing our audit.
Disagreements with Management
Professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction,
concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the
auditors' report. We are pleased to report that no such disagreements arose during the course of our audit.
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, 2025.
We encountered no other audit findings or issues that require communication at this time.
Uncorrected Misstatements
We are not aware of any uncorrected misstatements other than misstatements that are clearly trivial.
Opinion Unit Corrected Misstatements
Since all members of governance are not also part of management, we are required to communicate material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
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.
Management’s Consultations with other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management
informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing or accounting
matters.
Other Matters
We have not identified any other significant findings or issues that we wish to bring to your attention at this time.
Audit Consultations Outside the Engagement Team
We encountered no difficult or contentious matters for which we consulted outside of the engagement team.
Going Concern
Pursuant to professional standards, we are required to communicate to you, when applicable, certain matters relating
to our evaluation of 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. No such matters or conditions
have come to our attention during our engagement.
Fraud
We did not identify any known or suspected fraud during our audit.
CITY OF LAKE ELMO, MINNESOTA
REQUIRED COMMUNICATIONS
Related Parties
We did not have any significant issues arise during the audit in connection with the City’s related parties.
Required Supplementary Information
We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial
statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express
an opinion or provide any assurance on the RSI.
Supplementary Information
With respect to the supplementary information accompanying the financial statements, we made certain inquiries of
management and evaluated the form, content, and methods of preparing the information to determine that the information
complies with accounting principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare
the financial statements or the financial statements themselves.
Nonattest Services
The following nonattest services were provided by the firm:
1. Preparation of the City’s financial statements and related GASB 34 conversion entries
2. Preparation and submission of the Annual Reporting Form for the Office of the State Auditor
Written Representations
In a separate communication, as attached, we have requested a number of written representations from management in respect
to their responsibility for the preparation of the financial statements in accordance with accounting principles generally accepted
in the United States.
Other Audit Matters of Governance Interest
We did not identify any other matters to bring to your attention at this time.
Closing
We would like to thank management and staff for the assistance they provided to us during the audit.
We hope the information in this audit findings letter will be useful. We would be pleased to discuss them with you and respond
to any questions you may have.
This letter was prepared for the sole use of the Members of Governance of the City of Lake Elmo to carry out and discharge
their responsibilities. The content should not be disclosed to any third party without our prior written consent, and we assume
no responsibility to any other person.
Sincerely,
SCHLENNER WENNER & CO.
St. Cloud, Minnesota
EXHIBIT A
REPRESENTATION LETTER
City of Lake Elmo, Minnesota
Presentation of the Audited Financial Statements
Fiscal Year Ended December 31, 2025
Audit Process and Opinion
Unmodified (Clean) Opinion
General Procedures
Obtain
Records Inquiries Analytical
Procedures Sampling Detail
Testing
Required
Communications
Audit went smoothly
Positive Working Relationship with
Management
Nothing unusual noted in terms of
recorded transactions or accounting
policies/treatments
Significant estimates for
-Net Pension Liability/Balances
-Net OPEB Liability/Balances
Controls and Compliance
AUDIT ADJUSTMENTS INTERNAL CONTROLS MINNESOTA LEGAL COMPLIANCE
•Audit adjustments
were not material /
pervasive
•Lack of segregation
of duties identified
for certain accounting
functions
•No instances of
noncompliance were
identified
Revenues exceeded budget by
$2,281,861
Expenditures were below
budget by $97,040
2024 2025 2025 Budget
Revenues 9,146,762$ 10,100,834$ 7,818,973$
Expenditures 6,837,487 7,800,774 7,897,814
Other Uses (905,283) (19,000) 113,842
Change in Fund Balance 1,403,992 2,281,060 35,001
Fund Balance 10,324,572$ 12,605,632$ N/A
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2021 2022 2023 2024 2025 2025 Budget
General Fund - Trend Analysis & Budgetary Comparison
Revenues Expenditures Fund Balance
Detailed Revenue AnalysisGeneral
Fund
Taxes &
Assessments
Licenses,
Permits and
Fees
Inter-
governmental
Charges for
Services Fines Investment
Gains/Losses Miscell.
2024 $6,064,623 $1,020,801 $500,860 $912,893 $55,286 $444,440 $147,859
2025 Final Budget $5,653,958 $1,011,995 $240,108 $775,212 $30,000 $83,200 $24,500
2025 $5,510,182 $1,687,800 $673,737 $1,181,734 $66,081 $871,385 $109,915
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Detailed Expenditure AnalysisGeneral
Fund
General Government Public Safety Public Works Culture and Recreation Capital Outlay
2024 $1,437,156 $3,749,563 $1,069,092 $492,788 $88,888
2025 Final Budget $1,905,983 $4,088,502 $1,215,817 $687,512 $-
2025 $1,768,061 $4,414,133 $1,146,286 $472,294 $-
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Fund balance policy sets a target floor/minimum fund
balance equal to approximately 50% to 60% of the
following year’s budgeted operating expenditures
Year Percentage
2021 97.3%
2022 103.9%
2023 109.0%
2024 129.8%
2025 140.5%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
2021 2022 2023 2024 2025
Unassigned Fund Balance as a Percentage of Next Year's Budget
Cash Trend AnalysisGeneral
Fund
2021 2022 2023 2024 2025
General $9,577,831 $10,744,465 $12,190,097 $12,115,282 $21,462,653
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Financial Highlights
Other Governmental Funds
*Financial data for individual nonmajor governmental funds can be found beginning on page 82 in the Audited Financial Statements.
Debt Service
Fund
Capital Projects
Fund
Revenues 4,430,462$ 2,652,424$
Expenditures 3,987,782 9,302,898
Other Sources/Transfers - 2,588,575
Change in Fund Balance 442,680 (4,061,899)
Fund Balance 6,120,873$ 4,276,302$ -
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Debt Service Fund Capital Projects Funds
Revenues Expenditures Other Sources/Transfers
Cash Trend Analysis
Other Governmental Funds
2021 2022 2023 2024 2025
Debt Service $3,886,866 $4,532,084 $5,011,444 $5,657,531 $6,098,692
Capital Projects $21,630,450 $14,633,366 $7,792,520 $10,719,099 $9,438,542
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Historical TrendsWater
Fund
2021 2022 2023 2024 2025
Operating Revenues 1,711,596$ 1,761,364$ 1,932,608$ 1,517,017$ 2,055,993$
Operating Expenses 2,442,438 2,934,238 3,629,498 3,607,825 4,357,831
Operating Income (730,842) (1,172,874) (1,696,890) (2,090,808) (2,301,838)
Nonoperating Revenues & Transfers In 11,138,056 11,221,712 5,892,999 8,473,757 9,631,961
Nonoperating Expenses & Transfers Out (3,984,842) (3,674,626) (352,740) (339,124) (639,618)
Change In Net Position 6,422,372$ 6,374,212$ 3,843,369$ 6,043,825$ 6,690,505$
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2021 2022 2023 2024 2025
Operating Revenues Operating Expenses Op Rev + Connection Fees
Historical TrendsSewer
Fund
2021 2022 2023 2024 2025
Operating Revenues 549,567$ 671,474$ 760,781$ 869,151$ 1,125,450$
Operating Expenses 1,417,524 1,764,912 2,167,556 2,666,804 2,958,579
Operating Income (Loss)(867,957) (1,093,438) (1,406,775) (1,797,653) (1,833,129)
Nonoperating Revenues & Transfers In 5,618,245 4,351,815 4,069,814 5,537,548 9,289,663
Nonoperating Expenses & Transfers Out (1,652,819) (445,812) (356,724) (329,701) (297,177)
Change In Net Position 3,097,469$ 2,812,565$ 2,306,315$ 3,410,194$ 7,159,357$
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2021 2022 2023 2024 2025
Operating Revenues Operating Expenses Op Rev + Connection Fees
Historical Trends
Storm Sewer Fund
2021 2022 2023 2024 2025
Operating Revenues 512,624$ 510,061$ 580,896$ 657,030$ 647,504$
Operating Expenses 780,685 907,794 1,016,549 1,149,143 1,428,672
Operating Income (268,061) (397,733) (435,653) (492,113) (781,168)
Nonoperating Revenues & Transfers In 1,605,697 2,028,444 2,484,344 4,071,803 6,299,512
Nonoperating Expenses & Transfers Out (51,397) (60,428) (40,562) (35,921) (31,226)
Change In Net Position 1,286,239$ 1,570,283$ 2,008,129$ 3,543,769$ 5,487,118$
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
2021 2022 2023 2024 2025
Operating Revenues Operating Expenses
Cash Trend AnalysisProprietary
Funds
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2021 2022 2023 2024 2025
Sewer Utility
Water Utility
Storm Sewer
Utility
Government-Wide Assets
0 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000
2021
2022
2023
2024
2025
2021 2022 2023 2024 2025
Current Assets 60,427,247 59,851,619 54,215,682 57,400,413 67,920,588
Capital/Noncurrent 130,229,184 164,134,162 189,217,728 217,115,357 246,011,407
Government-Wide Liabilities
0 20,000,000 40,000,000 60,000,000 80,000,000
2021
2022
2023
2024
2025
2021 2022 2023 2024 2025
Current Liabilities 10,354,210 13,345,224 12,467,950 11,905,606 14,359,524
Debt/Noncurrent 48,079,513 56,401,284 57,051,117 56,556,942 58,757,032
Net Pension Liability 989,994 2,951,458 1,606,836 1,444,241 1,419,685
Government-Wide Assets & Liabilities
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
2021 2022 2023 2024 2025
Assets vs Liabilities - Trend Analysis
Total Assets Total Liabilities Net (Assets - Liabilities)
Governmental FundsFuture Debt
Payments
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
Governmental Funds Future Debt Payments
Principal Payments Interest Payments
Proprietary FundsFuture Debt
Payments
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Proprietary Funds Future Debt Payments
Principal Payments Interest Payments
Questions?
Ryan Schmidt, CPA
Partner
rschmidt@swco.cpa
320-251-0286
STAFF REPORT
DATE: July 7, 2026
Regular Agenda
TO: Mayor and Councilmembers
FROM: Nicole Miller, City Administrator and Clarissa Hadler, Finance Director
AGENDA ITEM: Purchasing Policy Revisions
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance☒
☐ Managed Growth
☒ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
The City’s Purchasing Policy was last reviewed in 2018. City policies are reviewed at regular intervals to ensure
alignment with internal practices, current Council goals, and state statute. The Council discussed our initial
changes at the May workshop (packet is available at this link). Staff is bringing back a few changes as discussed
in that meeting.
ISSUE BEFORE COUNCIL:
Should the Council adopt the attached revisions to the Purchasing Policy?
PROPOSAL DETAILS/ANALYSIS:
The attached, red-lined version of the City’s Purchasing Policy shows changes currently recommended by staff
and some revisions discussed at the May Workshop. (Highlighted sections are changes made after that
workshop.)
Some of the initial changes to note:
• Removed processes that do not align with practices, are laid out in other policy or process documents, or
are not purchasing related, such as cash receipting, payment vouchers, authorization forms.
• Added a Quick Reference Guide to clarify the options for procurement at various purchasing amounts
and the approvals necessary.
• Consolidated the Construction, Contract Services, and Purchase Contracts and the Professional Services
sections into one section.
• Added a definition of the term “contract” and approval authority clarification.
• Clarified which purchases are delegated to the City Administrator.
• Clarified Lease language.
• Added clarifying language regarding Uniform Municipal Contracting Law and aligned purchasing
thresholds with UMCL.
• Added clarifying language regarding the RFP process.
Since that meeting the following revisions were made:
• Changed the purchasing thresholds to align with Council direction from the workshop.
• Added language requiring the report of disbursements made based on delegations to staff. (Note: Prior
to this, disbursements generally went through Council prior to payment and this report was not
necessary. We plan to utilize this delegated authority more in the future and break out the AP reporting
appropriately. See additional information below.)
• Added language describing the level of budgetary control and encouraging budget amendments.
Accounts Payable Process & Reporting
One of the questions or concerns we heard at the Council workshop was the need to wade through so many
pages of A/P. In an effort to simplify Council A/P approvals, we have broken down our regular A/P into more
batches: those items that Department Heads and the City Administrator are authorized to pay without Council
approval (per the purchasing policy), and those that require Council approval.
Items that require Council approval are those that are over $10,000 (changing to $15,000 if revisions are
adopted) and are not routine purchases. The following is a list of payments that are delegated to the City
Administrator for payment:
• Payroll and payroll-related expenses
• Insurance premiums
• Routine operations (utilities, supplies, cleaning services, routine maintenance, escrow expenses, etc.)
• Increases up to an individual’s authorization limit for a previously Council-approved item
• Discretionary purchases within the purchasing authority and budgets of a department
• Building & Development Escrow Releases (new in current revision and would not include any security
reductions that require Council approval)
• Payments due to other units of government or payments required to be made before the next regular
meeting of the Council to avoid endangering public safety, public or private property, or interrupting City
services.
The attached vendor and invoice reports provide additional insight into which items are considered routine or
not. Staff welcomes Council discussion or direction on any changes.
Possible Increased Budgetary Controls
At the 5/12 workshop, the Council discussed the possibility of adding a policy wherein a line-item budget may
not exceed 105% of the adopted budget without Council approval. To this discussion staff provides the
following additional context:
• GASB (Governmental Accounting Standards Board) - The scope and method of state and local
government budgetary practices are generally outside the scope of financial reporting standards.
Budgetary accounting (line-items) is considered an interim management control technique used to
ensure that functions or funds (which we must report on according to GASB) overall perform within set
appropriation levels. One way to look at this is: the appropriation at fund or function is the policy, the
line-item budget is a management control.
• Other Cities – In polling other cities, all of them establish budgeting controls at the department level.
Adding the discussed line-item control would be outside normal budgetary practices.
• Budget Process –
The Budget process is started a full year and a half prior to when some expenses actually occur.
Staff use their best judgement with the information that they have available to estimate what their
department needs will be for the following year.
Unforeseen expenses occur regularly, such as unplanned maintenance, staffing changes, activities
that occur only occasionally, etc.
We have quite a few expenses that are divided between various departments. Over time, some of
those allocations may change as we become aware of them and move toward an allocation we feel
is more appropriate given new information or analysis.
• It is relatively uncommon for our departments to be over-budget by a substantive amount. The
attached reports show the following:
The General Fund budget was under budget by 3%.
4 of 14 Department budgets exceeded 105% as seen below:
Department Amount
Over
% of
Budget
Notes
Mayor & Council $23,000 131% 100 year celebration
Engineering $13,500 139% Due largely to the change from Focus to BMI.
Fire $170,500 111%
Animal Control $8,000 155% Underbudgeted compared to prior years.
• Of the 288 General Fund line-item expenses, just 24% were over budget, while 76% were on or below
budget. (An experienced colleague suggested that a good rule of thumb was that your line items be at
or under budget around 2/3 of the time, so ours exceed that expectation.)
• Some of the unintended consequences of a policy that caps line-items at 105% may be:
Departments may anticipate higher expenses in each line item in order to avoid going over, causing
the overall department budget to rise, causing the overall budget to increase substantially.
Additional paperwork to submit numerous purchase approvals/budget amendments throughout
the year. Each of these minor approvals ends up adding work to a minimum of 4 people,
department head, finance director, city administrator and city clerk.
Departments may forego or postpone certain activities if they feel they will be judged harshly for
unplanned expenses.
• We have been purposefully tightening up our budgeting process in the past 2 years in order to decrease
the amount of overbudgeting that was occurring in the past. Adding this policy will cause us to move
backward with our budgeting practices.
If Council determines they would like to move forward with additional controls, suggested language is as
follows:
• The level of budgetary control is generally established at the department level. Expenditures for
departments that exceed appropriations are not authorized unless additional revenue sources, unspent
appropriations, or fund balances are identified and available. However, within any department, should a
line-item budget exceed 105%, Council approval for purchases and a Budget Amendment shall be
necessary.
RECOMMENDATION:
Motion to adopt revisions to the City of Lake Elmo Purchasing Policy.
ATTACHMENTS:
Purchasing Policy – redlined
Purchasing Policy - final
Vendor/Invoice Routine Purchase Analysis
LA515\1\1093668.v1
Purchasing
Policy
May 15, 2018
__________, 2026
2
LA515\1\1093668.v1
Table of Contents
City of Lake Elmo Purchasing Procedures ................................................................................................... 3
General Purchasing Procedures .................................................................................................................. 3
Construction, Contract Services, and Purchase (Goods) Contracts ................................................... 6
Authorization Thresholds and Requirements ....................................................................................... 7
Over $100,000 ($175,000 effective August 1, 2018) with labor - Performance Bond ....... 98
Awarding Contracts ......................................................................................................................................... 9
Best Value Procurement Alternative ......................................................................................................... 9
Cooperative Purchasing Procedures ......................................................................................................... 9
Change Orders ................................................................................................................................................. 10
Other Bidding Requirements ..................................................................................................................... 11
Purchase or Lease of Used Public Safety Equipment ....................................................................... 11
Leases and Lease Purchases ...................................................................................................................... 11
Real Estate ........................................................................................................................................................ 11
Online Purchases ....................................................................................................................................... 1211
Withholding Certificates ........................................................................................................................ 1211
Ethics and Acceptance of Gifts .................................................................................................................. 12
Public Purpose Expenditures ............................................................................................................... 1312
Professional Service & Consultant Contracts .......................................................................................... 14
Disposition or Donation of Surplus Assets ............................................................................................... 16
Government to Government Sales ........................................................................................................... 16
Trade-ins ........................................................................................................................................................... 17
Electronic Sales ............................................................................................................................................... 17
Restrictions....................................................................................................................................................... 17
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City of Lake Elmo Purchasing Procedures
Effective May 15______July 7, 20182026
These purchasing procedures are intended to provide a consistent manner of purchasing goods and services
Citywide. Employees should secure the best balance between quantity, quality, and price when purchasing
for the City.
General Purchasing Procedures
• The City of Lake Elmo has a “decentralized” purchasing program; purchasing is the responsibility of
each Department Director or designated individual.
• The level of budgetary control is established at the department level. Expenditures for departments
that exceed appropriations are not authorized unless additional revenue sources, unspent
appropriations, or fund balances are identified and available. Budget Amendments should be
submitted for review and approval by the City Council as appropriate.
• The Finance Department normally processes payments twice per month, which is the week preceding
the City Council meeting and invoices are paid by due date. Fully completed Payment Voucher forms
must be submitted by 4:30 pm on the Tuesday before the City Council packet is due. This will ensure
inclusion in the packet for which the City Council will consider at the subsequent meeting. Additional
payment batches may occur within the limits of this policy and will be reported at the next available
City Council meeting.
• Payments will be made only from invoices, or expense reimbursement forms., which should be
attached to completed Payment Voucher forms.
• Persons authorizing payments are responsible for verifying that goods are received, services
provided, that they are necessary, and that no duplicate payments occurred. Signature(s) are
required by authorized individual(s) in order to be processed for payment.
• Persons authorizing payments are responsible for coding invoices and ensuring that correct account
codes are used. If there are questions regarding coding, contact the Finance Department for
assistance.
• Contracts to which the City is a party,party shall be brought to the City Council for consideration and
if approved, will be signed by the Mayor and the City Clerk on behalf of the City. to be executed.
• Generally, accepted accounting principles will be followed. For the end of each year, invoices that
are received early the next year which are for goods or services received the previous year will usually
be charged against the previous year. At year-end, invoices received early in the following year for goods
or services provided in the previous year will typically be charged to the prior year. The year to which an
4
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invoice will be charged is based on the financial statement/audit cut -off date and the materiality of
the item. If you have any questions about this, please contact a member of the Finance Department.
• Employees will not make any purchases for personal use through the City.
• Minnesota State Statutes Sections §471.87 and §471.88 prohibit the purchase of goods and
services wherever a conflict of interest may exist. The City of Lake Elmo requires employees to
disclose to their immediate supervisor any personal financial interest in the selling or buying of
goods or services for the City. No purchase orders, contracts or service agreements shall be given
to an employee of the City or to a partnership or corporation of which an employee is a major
stockholder or principal. No employee shall enter into athe relationship with a vendor where the
employee's actions are, or could reasonably be viewed as, not in the best interests of the City. If
any employee becomes involved in a possible conflict of interest situation, the employee shall
disclose the nature of the possible conflict to his or her supervisor and to the City Administrator.
The City Administrator shall promptly notify the individual in writing of an approval or disapproval
of the activity. If disapproved, the employee shall remove himself or herself from the conflict of
interest situation.
• Minnesota Statutes Section §12.37 gives the City the ability to declare an emergency situation for
a limited period of time. During such an emergency, the City is not required to use the typically
mandated procedures for purchasing and contracts. Emergency purchases require approval by
the City Administrator, or Finance Director, and when necessary because of the dollar amount,
formal City Council action. An emergency purchase is defined as one where an immediate
response is required to protect the health, welfare or safety of the public or public property.
• The City has a credit card program available for employees who frequently purchase items for the
City. Employees using a City credit card must adhere to the City’sA separate Credit Card Policy is
available.
• Travel-related purchases should be made following the City’s travel guidelines in the Personnel Policy.
• Provisions of this Policy do not apply to previously City Council approved routine
expenditures/expenses such as utilities, payroll and related expenditures, insurance premiums, MCES
charges for sewer, bond payments, etc.
Petty Cash Procedures
Below are some key process for petty cash advances or reimbursements. The entire Petty Cash Procedures
document is available by contacting the Finance Department
Receipting of Transactions:
1. On the log sheet, fill out date, vendor, description, amount and dep artment
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2. Fill out the receipt in the yellow receipt book, attach receipt, and attach appropriate
documentation.
3. At month end, reconcile the cash and receipts.
• The staff person reconciling petty cash signs off on the log sheet verifying they have
reconciled the petty cash box, which should include documentation for all cash payments
received.
• After reconciliation, have another staff person review for internal controls. This should be
the Accountant, Finance Director, Deputy City Clerk or Permit Technician.
• If the petty cash balance has more than the $500 base amount, a deposit should be
prepared to reduce the balance back to $500.
• If the petty cash balance has less than the $500 base amount, a check request with
appropriate documentation for the amount needed to replenish the fund should be sent to
Finance.
This process will be revised upon completion of the software implementation for the City.
Cash Advance or Employee Expense Reimbursement:
1. Cash Advance - If requesting a cash advance for an eligible City expenditure/expense, have the staff
person fill out a “Petty Cash Advance or Reimbursement Form” outlining the advance and verified
by the appropriate staff person. After the purchase is made, provide the appropriate
documentation; amend the form for the actual amount and add the transaction to the log sheet.
2. Cash Reimbursement – If requesting a cash rRequest for reimbursement from for an eligible City
expenditure/expense, have the requesting individual fill out a “Petty Cash Advance ormust bey made
via filling out the Employee Reimbursement Form”. Attach appropriate documentation must be
attached. , and the authorized individual will reimburse the individual, upon which both people should
sign the form acknowledging receipt and payment.. Reimbursements are paid through the payroll
process on the next available payroll if submitted to Finance by the prior Thursday. system.
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Purchasing Guidelines &
Construction, Contract Services, and Purchase (Goods) ContractsProcurement Options
Supplies, Materials, Equipment or Equipment Rental, and
Construction, Alteration, or Repair & Maintenance of Property
The Uniform Municipal Contracting Llaw sets outestablishes procedures that cities must follow for contracts
to sell, purchase or rent supplies, materials, or equipment, or to construct, alter, repair or maintain real or
personal property.
Below isare the procurement options depending based on the estimated amount of the contract.
For purposes of this Policy, aA contract is defined as a formal agreement that establishes binding long-term
obligations, conditions, and risk allocations between the City and another party. Contracts include
provisions that extend beyond routine purchasing terms—such as insurance requirements, indemnification,
liability allocation, and other legal protections that may impact the City’s financial or legal exposure over
time.
Approval Authority
• City Council Approval is Required:
For aAny contractagreement that includes or modifies long-term contractual conditions—such as
insurance, indemnification, or other legal risk provisions—must be reviewed and approved by the
City Council.
• Administrative (Staff) Approval:
Agreements that are limited to standard purchasing terms, do not alter long-term contractual
conditions, and fall within an already approved budget or authorized spending threshold may be
executed by City staff without additional Council approval.
Quick Reference Guide
Required Approvals
Contract or
Purchase Amount
Procurement Options Director City
Admin.
City
Council
Less than $5,02,500 • Open Market
• Direct Negotiations X
$5,02,500 -
$150,000
• Open Market
• Direct Negotiation w/ 2 quotations obtained
whenever possible.
X X
$150,000
but not more than
$175,000
• Sealed Bids
• Direct Negotiation
• Cooperative Purchasing Contracts
• Request for ProposalsFP
X X
X
(unless
delegated)
$50,000
and greater
if being assessed
• Sealealed Bids per M.S. 471.345, Subd. 3
• Cooperative pPurchasing cContracts that comply with
the bidding process.
X X X
$100,000 • Cooperative Purchasing Contracts X X X
7
LA515\1\1093668.v1
and greater
for Professional
Services
• RFP (not more frequenno more frequentlyt than
every 5 years for long-term professional services
contracts).
$175,000
and greater
• Sealed Bids per M.S. 471.345, Subd. 3
• Cooperative Purchasing Contracts that comply with
the bidding process.
X X X
Authorization Thresholds and Requirements:
Less than $500.00 – Authorized Individuals Department Director
Purchases may be obtained through open market or direct negotiations. The City Administrator may grant
purchasing authority to individuals authorized to conduct City business through an Authorization Form kept
on file in Finance. This form outlines spending thresholds, and any exceptions to that threshold.
$500.00 to $2,500.00 5,000 – Authorized Individuals Department Director
Purchases may be obtained through open market or direct negotiation, with two quotations obtained
whenever possible. Quotations must be retained for at least one year. The City Administrator may grant
purchasing authority to individuals authorized to conduct City business through an Authorization Form kept
on file in Finance.
$2,500.01 5,000.01 to $105,000.00 – City Administrator
Purchases may be obtained through open market or direct negotiation, with two quotations obtained
whenever possible. Quotations must be retained for at least one year. The City Administrator may grant
purchasing authority to individuals authorized to conduct City business through an Authorization Form kept
on file in Finance.
$105,000.01 to $100,000 ($175,000 effective August 1, 2018)but not greater than $175,000 – City Council
or City Administrator as Delegated
Purchases may be obtained through sealed bids, or cooperative purchasing contracts, or direct negotiation,
with two quotations obtained whenever possible. Quotations must be retained for at least one year.
Cooperative pPurchasing cContracts should be considered for contracts over $25,000 and may be used in
lieu of sealed bids or quotes. The City Council shouldwould approve purchases in this range, unless except
as delegated to the City Administrator for the following routine budgeted items:;
• Payroll and payroll-related expenses
• Insurance premiums
• Routine oOperations (utilities, supplies, cleaning services, routine maintenance, etc.)
• Building & Development Escrow Releases
• Increases up to an individual’s authorization limit for a previously Council-approved item,
• Payments due to other units of government or payments required to be made before the next regular
meeting of the Council to avoid endangering public safety, public or private property, or interrupting
City services.
8
LA515\1\1093668.v1
Disbursements made under the above delegation shall be reported to Council at the next regular meeting,
per Minnesota Statute 412.271, Subd. 8.
Due to the cost of preparing sealed bids, and the additional length of time required in this process, the use
of sealed bids for this threshold should only be used when deemed necessary.
$100,000 and Greater for Professional Services – City Council
Purchases may be obtained through cooperative purchasing contracts, or direct negotiation , RFP, with two
quotations obtained whenever possible. For long-term professional services, RFPs should not be more
frequent than every 5 years, unless deemed necessary by the City Council.
Greater than $100,000 ($175,000 effective August 1, 2018) $175,000, or Greater than $50,000 if Being
Specially Assessed
Purchases must be obtained by sSealed bids solicited by public notice as are required under Minnesota
Statutes Section.S. 471.345, subdivisionSubd. 3. City staff must Contracts must be awarded to either the
lowest responsible bidder, or the “Best Value Procurement Alternative”. oObtain authorization from the City
Council to prepare plans and specifications for the bids. The City Attorney mustshould review the plans and
specifications including the contract prior to advertisement for bids. Cooperative pPurchasing cContracts
should be considered for contracts over $25,000 and may be used in lieu of sealed bids.
Advertisement for sealed bids must be published in the City’s Official Newspaper and advertised on
QuestCDN at least ten days before the last date for submission of bids.
The published notice must contain the following:
• A description of the project or the purchase
• The availability of specifications including theire location (i.e., located in the , for example, Office of
the City Clerk),
etc.
• The last day for submission of bids and the place where they are due
• The time and place for opening bids
• A statement reserving the right of the City to reject all bids
The bids must be opened and tabulated at the time and place specified in the advertisement for bids.
Preferably, this should be completed approximately 10 businessworking days in advance of the City Council
meeting to allow for a thorough review and tabulation of the bids, and to allow for reference checks as
appropriate.
A recommendation can then be made to the City CouncilCouncil, and the City Council will award or deny the
contract.
Bids rejected by City Ccouncil must be kept on file for 6 years and the accepted bid must be retained for 10
years after completion of the project.
As an alternative to this procurement method, the City may award a contract for construction, alteration,
repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals
9
LA515\1\1093668.v1
as described in Minnesota Statutes Section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph
(c). City staff must be trained in the “best value” procurement method in accordance with Minnesota
Statutes Section 16C.28, subdivision 1d.
Over Greater than $175,000 $100,000 ($175,000 effective August 1, 2018) with labor - Performance and
Payment Bond
For contracts over $100,000 ($175,000 effective August 1, 2018) $175,000, that include labor (ex. road
construction and the purchase and installation of playground equipment) a performance and payment bonds
in an amounts not less than the contract price areis required from the contractorvendor. If change orders
substantially increase the amount of the contract, the City Council has the option to increase the required
amount of the contractor’s bond.
Awarding Contracts
For contracts procured through sealed bids or multiple quotes, the City must award the contract to the lowest
responsible bidder, or Best Value Procurement Alternative, as set forth in the next section outlines . The
bidder who submits the lowest bid or quote in dollars is not necessarily the “lowest responsible bidder.”
Best Value Procurement Alternative
Minnesota Statute 412.311 allows the City to use a Best Value pProcurement aAlternative for contracts for
construction, building, alteration, improvement, or repair work. In that event, the contract may be awarded
to the contractor or vendor offering the “best value” under a request for proposals as described in Minnesota
Statutes Section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c). instead of awarding the
bid to the lowest responsible bidder. Please contact the City Administrator or Finance Director if you wish
to consider using the Best Value Procurement Alternative as training is required prior to initiating
procurement.
Cooperative Purchasing Procedures
Cooperative purchasing contracts provide an opportunity for the City to purchase goods and services at
reduced costs. Employees do not need to obtain quotes or bids if a purchase is made through a national
municipal association purchasing alliance or a cooperative created by a joint powers agreement (of which
the City is a member) that purchases items from more than one source based on competitive bids or
quotations that complies with sState sStatute.
The following is a list of some of the larger purchasing cooperatives of which the City is a member:
1. Cooperative Purchasing Ventures (CPV)
Minnesota Statutes Section 471.345, Subd. 15 requires cities to consider the State’s Cooperative
Purchasing Venture (CPV) for contracts estimated to exceed $25,000. The City of Lake Elmo participates
in the State of Minnesota Cooperative Purchasing Venture (CPV). This enables the City to buy goods and
services under the terms of contracts already negotiated by the State of Minnesota.
Information for this cooperative can be found on the State of Minnesota’s Materials Management
Division website: http://www.mmd.admin.state.mn.us/cpv2.htm
10
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The website can direct employees to the releases and listings of the products/services that can be
purchased usingon the State Cooperative Purchasing Venturestate contract. If it is determined that a
product/services is on a State Cooperative Purchasing Venturestate contract, vendors should be told
that the purchase will be made using that contract. When completing the purchasing paperwork, note
that the purchase is per “state contract” and indicate the contract number.
Vendors will often contend that the City can purchase from them without bidding because they are on
the “state contract” or they will sell at the state contract price. Beware of these approaches. Verify
that both the vendor and the specific product/service is listed on the state contract. It is likely that no t
all of a vendor’s products/services have been selected to be on the state contract. If a vendor is not on
the state contract, but will match the state contract price, this action does not exempt the City from
following the competitive bidding laws.
2. U.S. Communities Government Purchasing Alliance
The City participates in the U.S. Communities Government Purchasing Alliance
http://www.uscommunities.org/.
42. Minnesota State Fire Chiefs Association – Fire Rescue Group Purchasing
The Fire Rescue Group Purchasing is a fire services purchasing program open to all Cities.
53. National Intergovernmental Purchasing Alliance (National IPA) Cooperative Purchasing Programs
The City participates in the National IPA cooperative purchasing organization. At times, the City may
participate in the following purchasing programs;
http://www.nationalipa.org.
• OMNIA Partners - Omniapartners.com
• Sourewell - Sourcewell-mn.gov
• HGAC – hgacbuy.org
64. Joint Powers Member
Any other jJoint pPowers pPurchasing eEntity of which the City is a member that provides for purchases
in accordance with Minnesota Statutes Section 471.345, subdivision 15(b) is also exempt from the quote
or bid process.
In all items outlined pertaining to cooperatives, please contact the City Administrator or Finance Director if
you have any questions.
Change Orders
Change orders may occur due to City driven changes, errors and omissions, field directives,
unforeseen/hidden conditions, regulatory requirements or changes that are contractor driven. Changes that
need to be made during construction often need to be addressed and approved in a timely manner in order
to keep the project on schedule.
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2)1) For a change order less than $100,000, which does not result in exceeding the overall project
budget, the City Administrator may approve these.
3)2) At the discretion of the City Administrator, for a change order less than $100,000, but still
within the scope of the overall project budget , it may be presented to the City Council for
consideration and approval.
4)3) For any change order that results in exceeding the overall project budget, and/or exceeds
$100,000 must be approved by the City Council.
Other Bidding Requirements
• TheA City must notcannot avoid competitive bidding requirements by splitting a contract into several
contracts, each of which is below the minimum amount requiring bids.
• Bid sSpecifications may not be written so as to exclude all but one type or kind of supplies or equipment
unless it is for public safety equipment that is clearly and legitimately limited to a single source of supply.
• The City may not accept a bid that includes a number of items when the advertisement called for separate
bids for each item.
• The City must re-bid the contract if the Citywhen they makes a material change in the specifications of
the contract.
• Minnesota Statutes Chapter 429 (local improvement code) applies to all public improvement contracts
(i.e., sewer, water and streets) being financed with special assessments.
Purchase or Lease of Used Public Safety Equipment
In 2011, cities were granted authority to lease or purchase used public safety equipment (“vehicles and
specialized equipment used by a fire department … in firefighting, ambulance and emergency medical
treatment services, rescue, and hazardous materials response”) without competitively bidding in certain
specified circumstances. Competitive bidding or proposals are not required, “if the equipment is clearly and
legitimately limited to a single source of supply, and the contract price may be best establish ed by direct
negotiation.” See Minnesota Statutes Section 471.3455.
Equipment Leases and Lease- Purchases
All lease agreements require need approval review through by the City Administrator and Finance Director,
and legal counsel and prior to initiating the lease. City Council approval is required for all leases. For the
leasing of equipment,
The Finance Department and applicable Department Directors mustwill obtain at least two quotes to
einsure the best financing rates. Staff will conduct a leavse versus buy analysis to determine the most cost-
effective method. Lease pPerformance bBonds are sometimes prudent for lLease-p Purchases, and as such,
the City Administrator and Finance Director will assist in determining if a lLease pPerformance bBond should
be required.
Real Estate
The lease, purchase, or sale of real property is generally not subject to competitive bidding.
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Online Purchases
Employees mustmay only purchase from vendors that use secure services for e-commerce. The City is
required to paysubmit sales tax for out-of-state purchases.
Withholding Certificates
Before the City makes a final payment to a contractor under a contract requiring payment of employment
for wages to employees, it must make sure the contractor and any subcontractors have complied with
withholding tax laws. Contractors and subcontractors must show compliance by submitting a withholding
affidavit to the MN Department of Revenue. This can be done electronically or by mailing a completed Form
IC134, “Withholding Affidavit for Contractors.” If a contractor or subcontractor has withheld taxes as
required, the Department of Revenue will return an electronic confirmation or sign and return the Form
IC134, certifying compliance. The City must receive this certification of compliance before a final payment
willcan be issued.
Covered contracts are only those under which a contractor undertakes to supply labor or a combination of
labor and materials for specific construction, repairs, rehabilitation or improvements. It does not apply to
contractors for maintenance services or dealers, merchants and suppliers who supply materials only. The
Department of Revenue requires the Form IC134 only be submitted in connection with contractors on
construction projects. Others are not required to submit the form so this paragraph is only applicable toonly
needs to be used on construction contracts.
Federal Purchases
Under uniform grant guidance (2 CFR 200.317 –326) there are additional procurement requirements that
need to be considered when making purchases related to a federal program. Five procurement methods are
identified including: micro-purchase (<$3,500), small purchase procedures (<$150,000), sealed bid
(>$150,000), competitive proposal (>$150,000), and noncompetitive proposal (>$3,500). The general
purchasing policy addresses many of these requirements and the City will also consider the full requirements
in relation to each method as described in 2 CFR. The micro-purchase threshold which is set by Federal
Acquisition Regulation at 48 CFR Subpart 2.1 is subject to change with inflation. The City will follow changes
to thresholds as modifications occur. When practicable, micro-purchasing will be distributed among qualified
suppliers.
Ethics and Acceptance of Gifts
Employees and cCouncil mMembers authorized to make a sale, lease, or contract in theiran official capacity
must not have a personal financial interest in that sale, lease, or contract, or personally benefit financially
from it. (See Minn. Stat. § 471.87)
For non-business related purchases, employees may only take advantage of special pricing offered to
employees of the City if the same pricing is offered to all government employees state or
countrywide. However, special pricing offered to the City by vendors may not be accepted by employees in
a position to make purchasing decisions or recommendations within that same category of goods or services.
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Public Purpose Expenditures
City employees are obligated to conserve and protect City resources for the benefit of public interest. As
good stewards of public funds, City employees must only use City funds for public purpose expenditures.
The expenditure of City fFunds on meals and refreshments for City eEmployees, oOfficials, and vVolunteers
is only authorized by the City Council for certain purposes. These purposes should be conducive to the
accomplishment of employees or officials’’ duties and responsibilities while conducting City business and
therefore provide a public benefit and have a public purpose.
As detailed below, the purchase of meals and refreshments, using City fFunds is authorized in the following
circumstances:
• Those provided immediately before or in conjunction with meetings of the Council, committees or
subgroups that are held over a meal time hour.
• City business meetings at which those in attendance involve non-City employees.
• When a breakfast, lunch or dinner meeting is conducted for official City business when it is the only
practical time to meet and when it involves non-City employee participants.
• In connection with a conference, workshop, seminar or meeting which the employee has been
authorized to attend.
• Department-sponsored meetings, conferences or workshops where invited participants include non-
City employees.
• An organization-wide or department-wide annual, quarterly or monthly staff meeting.
• At regularly scheduled meetings of the City Administrator and key staff.
• Meals for staff involved in election related duties when the performance of their duties prohibits staff
from leaving the building.
• At the discretion of the City Administrator.
If you are unsure whether an item is a public purpose expenditure , please contact the City Administrator or
Finance Director.
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Professional Service & Consultant Contracts
Accountants, Architects, Engineers, Lawyers, Training, Technical/Scientific Services
State Statue does not require advertisement of bids or sealed bids for professional services such as those of
engineers, lawyers, architects, accountants, and other services requiring technical, scientific, or professional
training. It is recommended that proposals be obtained through a request for proposal (RFP) process when
such a process would provide the City with increased quality, a decreased price, or anticipated to exceed
$100,000.
State of Minnesota Bid, Quote, and Contract Requirements
The Uniform Municipal Contracting Law, Minn esota. Statutes. Section§ 471.345 sets out procedures that
cities must follow for contracts to sell, purchase, or rent supplies, materials, or equipment, or to construct,
alter, repair, or maintain real or personal property. The estimated amount of the contract dictates
which procedures apply. Of course, estimates should be reasonable.
Contracts estimated to have a valuevalue of over $175,000 must be made by sealed bids, solicited by public
notice, and awarded to the lowest responsible bidder. Bids should be retained for the period specified in
the City’s records retention schedule.
The requirement that the successful bidder be “responsible” protects cities from having to choose
unqualified or unscrupulous low bidders. It allows a city council to consider factors such as the
bidder’s financial responsibility, integrity, skill and ability, and the likelihood that the bidder will do
satisfactory work. A city can even include evaluation criteria for “responsible” bidders in the bid
specifications.
Request for Proposal (RFP)
State sStatue does not require advertisement of bids or sealed bids for professional services such as those of
engineers, lawyers, architects, accountants, and other services requiring technical, scientific, or professional
training. It is recommended that proposals be obtained through a request for proposal (RFP) process when
the contract is estimated to exceed $175,000.
The City recommends following an RFP process when soliciting professional consulting services greater than
$175,000.
The City Council must approve a the standard professional services agreement.
Long term professional services contracts that rely on specialized expertise, institutional knowledge, and
continuity of service may be procured through a formal RFP or qualification based selection process not more
frequent than every five years.
Recommended sections to include in aan RFP:
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• Background and scope of project.
• Description of the scope of professional services to be provided .
• Schedule for the delivery of services.
• Contract terms. Include and reference as an attachment the City’s “Standard Professional Services
Agreement”, except when using the City’s consulting pool.
• The last day for submission of proposals and the place where they are due.
• If necessary, include a requirement for attendance at a pre-proposal meeting to answer vendor questions
regarding the RFP. This provides fairness to all participants when questions are answered with all
participants present. Request that all questions be submitted in advance by a certain date.
• Proposal evaluation and selection criteria.
• Format required for submitted proposals to provide for consistent submittals.
• Profile questionnaire to obtain general information about the vendor .
• A statement reserving the right of the City to reject all proposals.
At the discretion of the City Administrator, the RFP may be sent to the City attorney for review before it is
sent to selected vendors. RFP’sRFPs should be sent to a reasonable/manageable number of vendors.
While it is not strictly required per se, you may solicit proposals by advertising on the LMC’s website, the
cCity’s website, or in a local newspaper or other appropriate sites.
After the submittal deadline, review pProposals should be reviewed by using a rating sheet, and rate each
pProposal should be evaluated based on the specifiedcations requirements and general informationcriteria.
Follow up with reference checks as appropriate. Select a vendor and make a recommendation to the City
Council.
Standard Professional Services Agreement
The City’s “Standard Professional Services Agreement” (contract) should be used for professional service
contracts exceeding $175,000, except when using the City’s consulting pool.
The City’s consulting pool list is maintained by the Engineering department. Vendors included in the
consulting pool have continuing services agreements in place with the city. When a project is awarded to a
vendor listed in the consulting pool, a task order is executed for the specific project scope, fee and budget
with the general terms and conditions of the standard professional service agreement on file with the city.
The Standard Professional Services Agreement outlines consultant obligations including insurance and
liability coverage requirements, audit disclosure, subcontractors, and termination processes. This contract
should be used for professional service agreements, except when using the City’s consulting pool.
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Disposition or Donation of Surplus Assets
The City Administrator may recommend to the Council that certain property owned by the City is no longer
needed for a municipal purpose and should be sold.
There are three aspects to any disposal of a City asset:
1. Disposal Approval
The City Council must approve the disposal of all property that exceeds an estimated value of greater
than $100.00.
2. Terms of Sale Approval
The sale itself must be approved by the City Council.
3. Proper Municipal Sale Contract
Just as with purchasing, making a sale is considered entering into a contract. After the Council has
declared the property as surplus, and approved its disposal, the City Administrator, or designee, is
authorized to dispose of the property using one of the following methods:
Assets under $25,000
If the value of the surplus property is estimated to be $25,000 or less, the City Administrator, or designee,
may sell it either in the open market, by auction, or by obtaining two market comparisonsquotations, so
far as practical. If the surplus property is sold based upon comparisonsquotation(s), it/they shall be kept
on file for a period of at least one year after receipt.
Assets between $25,000 - $100,000 ($175,000 effective August 1, 2018)
If the value of the surplus property is estimated to exceed $25,000 but not to exceed $100,000 ($175,000
effective August 1, 2018),$175,000, the City Administrator, or designee, may sell the property upon
sealed bids or by direct negotiation, by obtaining two or more quotations market comparisons for the
sale, when possible, or by auction, subject to a minimum of 2 bidders or meeting an auction reserve as
determined by City Council. All comparisonsquotations obtained shall be kept on file for a period of at
least one year after their receipt.
Assets over $100,000 ($175,000 effective August 1, 2018) $175,000
If the value of the surplus property is estimated to exceed $ 175,000 100,000 ($175,000 effective August
1, 2018), the City Administrator, or designee, shall solicit sealed bids by public notice in the manner and
subject to the requirements of the law governing contracts by the City.
Government to Government Sales
The City may transfer real and personal property to another governmental entity for nominal or no
consideration and without following the process set out under “Proper Municipal Sale Contract” ((Iitem #3)
above). Sealed bids or quotes are not required. Council approval of the disposal (Iitem #1 above) and of the
terms of the disposal ((Iitem #2 above) is always required. The Ccouncil may approve both the disposal and
disposal terms in one action.
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Trade-ins
The City Council must approve the disposal of equipment via trade-in to utilize toward the purchase of new
equipment, just as it approves a regular disposal. This approval maycan be done as part of the approval of
the purchase of new equipment.
Electronic Sales
Minn. Stat. 471.345, subd. 17 states that “a city may contract to sell supplies, materials, and equipment which
is surplus, obsolete, or used, using an electronic selling process in which purchasers compete to purchase the
items at the highest purchase price in an open and interactive environment.”
Donations
The City Council approved a Policy for Donation of Surplus Equipment to a Nonprofit Organization on
February 7, 2018, and as such, said policy will govern the rules for donations for surplus equipment to a
nonprofit organization.
Restrictions
No employee of the City who is a member of the administrative staff, department head, a member of the
Council, or an advisor serving the City in a professional capacity may be a purchaser of property sold under
this Section. Other City employees may be purchasers if they are not directly involved in the sale, if they are
the highest responsible bidder, and if at least one (1) week's published or posted notice of sale is given.
Versions:;
May 15, 2018
Updated July 7 , 2026
Purchasing
Policy
July 7, 2026
2
Table of Contents
City of Lake Elmo Purchasing Procedures ................................................................................................... 3
General Purchasing Procedures .................................................................................................................. 3
Construction, Contract Services, and Purchase (Goods) Contracts ................................................... 5
Authorization Thresholds and Requirements ....................................................................................... 6
Over $100,000 ($175,000 effective August 1, 2018) with labor - Performance Bond .......... 7
Awarding Contracts ......................................................................................................................................... 7
Best Value Procurement Alternative ......................................................................................................... 7
Cooperative Purchasing Procedures ......................................................................................................... 8
Change Orders .................................................................................................................................................... 9
Other Bidding Requirements ........................................................................................................................ 9
Purchase or Lease of Used Public Safety Equipment .......................................................................... 9
Leases and Lease Purchases ...................................................................................................................... 10
Real Estate ........................................................................................................................................................ 10
Online Purchases ............................................................................................................................................ 10
Withholding Certificates ............................................................................................................................. 10
Ethics and Acceptance of Gifts .................................................................................................................. 10
Public Purpose Expenditures .................................................................................................................... 11
Professional Service & Consultant Contracts ................................... Error! Bookmark not defined.
Disposition or Donation of Surplus Assets ............................................................................................... 13
Government to Government Sales ........................................................................................................... 14
Trade-ins ........................................................................................................................................................... 14
Electronic Sales ............................................................................................................................................... 14
Restrictions....................................................................................................................................................... 15
3
City of Lake Elmo Purchasing Procedures
Effective July 7, 2026
These purchasing procedures are intended to provide a consistent manner of purchasing goods and services
Citywide. Employees should secure the best balance between quantity, quality, and price when purchasing
for the City.
General Purchasing Procedures
• The City of Lake Elmo has a “decentralized” purchasing program; purchasing is the responsibility of
each Department Director or designated individual.
• The level of budgetary control is established at the department level. Expenditures for departments
that exceed appropriations are not authorized unless additional revenue sources, unspent
appropriations, or fund balances are identified and available. Budget Amendments should be
submitted for review and approval by the City Council as appropriate.
• The Finance Department normally processes payments twice per month, which is the week preceding
the City Council meeting and invoices are paid by due date. Fully completed Payment Voucher forms
must be submitted by 4:30 pm on the Tuesday before the City Council packet is due. This will ensure
inclusion in the packet for which the City Council will consider at the subsequent meeting. Additional
payment batches may occur within the limits of this policy and will be reported at the next available
City Council meeting.
• Payments will be made only from invoices or expense reimbursement forms.
• Persons authorizing payments are responsible for verifying that goods are received, services
provided, that they are necessary, and that no duplicate payments occurred. Signature(s) are
required by authorized individual(s) in order to be processed for payment.
• Persons authorizing payments are responsible for coding invoices and ensuring that correct account
codes are used. If there are questions regarding coding, contact the Finance Department for
assistance.
• Contracts to which the City is a party shall be brought to the City Council for consideration and if
approved, will be signed by the Mayor and the City Clerk on behalf of the City.
• Generally accepted accounting principles will be followed. At year-end, invoices received early in the
following year for goods or services provided in the previous year will typically be charged to the prior year.
The year to which an invoice will be charged is based on the financial statement/audit cut-off date
and the materiality of the item. If you have any questions about this, please contact a member of the
Finance Department.
4
• Employees will not make any purchases for personal use through the City.
• Minnesota Statutes Sections 471.87 and 471.88 prohibit the purchase of goods and services
wherever a conflict of interest may exist. The City of Lake Elmo requires employees to disclose to
their immediate supervisor any personal financial interest in the selling or buying of goods or
services for the City. No purchase orders, contracts or service agreements shall be given to an
employee of the City or to a partnership or corporation of which an employee is a major
stockholder or principal. No employee shall enter into a relationship with a vendor where the
employee's actions are, or could reasonably be viewed as, not in the best interests of the City. If
any employee becomes involved in a possible conflict of interest situation, the employee shall
disclose the nature of the possible conflict to his or her supervisor and to the City Administrator.
The City Administrator shall promptly notify the individual in writing of an approval or disapproval
of the activity. If disapproved, the employee shall remove himself or herself from the conflict of
interest situation.
• Minnesota Statutes Section 12.37 gives the City the ability to declare an emergency for a limited
period of time. During such an emergency, the City is not required to use the typically mandated
procedures for purchasing and contracts. Emergency purchases require approval by the City
Administrator or Finance Director, and when necessary because of the dollar amount, formal City
Council action. An emergency purchase is defined as one where an immediate response is
required to protect the health, welfare or safety of the public or public property.
• The City has a credit card program available for employees who frequently purchase items for the
City. Employees using a City credit card must adhere to the City’s Credit Card Policy.
• Travel-related purchases should be made following the City’s travel guidelines in the Personnel Policy.
Employee Expense Reimbursement:
Reimbursement – Request for reimbursement for an eligible City expenditure/expense, must be made
via the Employee Reimbursement Form. Appropriate documentation must be attached.
Reimbursements are paid through the payroll process on the next available payroll if submitted to
Finance by the prior Thursday.
5
Purchasing Guidelines &
Procurement Options
The Uniform Municipal Contracting Law establishes procedures that cities must follow for contracts to sell,
purchase or rent supplies, materials, or equipment, or to construct, alter, repair or maintain real or personal
property.
Below are the procurement options based on the estimated amount of the contract.
For purposes of this Policy, a contract is defined as a formal agreement that establishes binding obligations,
conditions, and risk allocations between the City and another party. Contracts include provisions that
extend beyond routine purchasing terms—such as insurance requirements, indemnification, liability
allocation, and other legal protections that may impact the City’s financial or legal exposure over time.
Approval Authority
• City Council Approval is Required:
For any contract that includes or modifies contractual conditions—such as insurance,
indemnification, or other legal risk provisions.
• Administrative (Staff) Approval:
Agreements that are limited to standard purchasing terms, do not alter contractual conditions, and
fall within an already approved budget or authorized spending threshold may be executed by City
staff without additional Council approval.
Quick Reference Guide
Required Approvals
Contract or
Purchase Amount
Procurement Options Director City
Admin.
City
Council
Less than $5,000 • Open Market
• Direct Negotiation X
$5,000 - $15,000 • Open Market
• Direct Negotiation w/ 2 quotations obtained
whenever possible.
X X
$15,000
but not more than
$175,000
• Sealed Bids
• Direct Negotiation
• Cooperative Purchasing Contracts
• Request for Proposals
X X
X
(unless
delegated)
$50,000
and greater
if being assessed
• Sealed Bids per M.S. 471.345, Subd. 3
• Cooperative purchasing contracts that comply with
the bidding process.
X X X
$100,000
and greater
for Professional
Services
• Cooperative Purchasing Contracts
• RFP (no more frequently than every 5 years for long-
term professional services contracts). X X X
$175,000
and greater
• Sealed Bids per M.S. 471.345, Subd. 3
• Cooperative Purchasing Contracts that comply with
the bidding process.
X X X
6
Authorization Thresholds and Requirements:
Less than $500.00 – Department Director
Purchases may be obtained through open market or direct negotiations.
$500.00 to $5,000 – Department Director
Purchases may be obtained through open market or direct negotiation, with two quotations obtained
whenever possible. Quotations must be retained for at least one year.
$5,000.01 to $15,000.00 – City Administrator
Purchases may be obtained through open market or direct negotiation, with two quotations obtained
whenever possible. Quotations must be retained for at least one year.
$15,000.01 but not greater than $175,000 – City Council or City Administrator as Delegated
Purchases may be obtained through sealed bids, or cooperative purchasing contracts, or direct negotiation,
with two quotations obtained whenever possible. Quotations must be retained for at least one year.
Cooperative purchasing contracts should be considered for contracts over $25,000 and may be used in lieu
of sealed bids or quotes. The City Council should approve purchases in this range, except as delegated to the
City Administrator for the following routine budgeted items:
• Payroll and payroll-related expenses
• Insurance premiums
• Routine operations (utilities, supplies, cleaning services, routine maintenance, etc.)
• Building & Development Escrow Releases
• Increases up to an individual’s authorization limit for a previously Council-approved item,
• Payments due to other units of government or payments required to be made before the next regular
meeting of the Council to avoid endangering public safety, public or private property, or interrupting
City services.
Disbursements made under the above delegation shall be reported to Council at the next regular meeting,
per Minnesota Statute 412.271, Subd. 8.
Due to the cost of preparing sealed bids, and the additional length of time required in this process, the use
of sealed bids for this threshold should only be used when deemed necessary.
$100,000 and Greater for Professional Services – City Council
Purchases may be obtained through cooperative purchasing contracts, or direct negotiation , RFP, with two
quotations obtained whenever possible. For long-term professional services, RFPs should not be more
frequent than every 5 years, unless deemed necessary by the City Council.
Greater than $175,000, or Greater than $50,000 if Being Specially Assessed
Purchases must be obtained by sealed bids solicited by public notice as required under Minnesota Statutes
Section 471.345, subdivision 3. City staff must obtain authorization from the City Council to prepare plans
and specifications for the bids. The City Attorney must review the plans and specifications including the
7
contract prior to advertisement for bids. Cooperative purchasing contracts should be considered for
contracts over $25,000 and may be used in lieu of sealed bids.
Advertisement for sealed bids must be published in the City’s Official Newspaper and advertised on
QuestCDN at least ten days before the last date for submission of bids.
The published notice must contain the following:
• A description of the project or the purchase
• The availability of specifications including their location (i.e., located in the Office of the City
Clerk)
• The last day for submission of bids and the place where they are due
• The time and place for opening bids
• A statement reserving the right of the City to reject all bids
The bids must be opened and tabulated at the time and place specified in the advertisement for bids.
Preferably, this should be completed approximately 10 business days in advance of the City Council meeting
to allow for a thorough review and tabulation of the bids, and to allow for reference checks as appropriate.
A recommendation can then be made to the City Council, and the City Council will award or deny the contract.
Bids rejected by City Council must be kept on file for 6 years and the accepted bid must be retained for 10
years after completion of the project.
As an alternative to this procurement method, the City may award a contract for construction, alteration,
repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals
as described in Minnesota Statutes Section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph
(c). City staff must be trained in the “best value” procurement method in accordance with Minnesota
Statutes Section 16C.28, subdivision 1d.
Greater than $175,000 - Performance and Payment Bond
For contracts over $175,000, performance and payment bonds in amounts not less than the contract price
are required from the contractor. If change orders substantially increase the amount of the contract, the
City Council has the option to increase the required amount of the contractor’s bond.
Awarding Contracts
For contracts procured through sealed bids or multiple quotes, the City must award the contract to the lowest
responsible bidder. The bidder who submits the lowest bid or quote in dollars is not necessarily the “lowest
responsible bidder.”
Best Value Procurement Alternative
Minnesota Statute 412.311 allows the City to use a Best Value procurement alternative for contracts for
construction, building, alteration, improvement, or repair work. In that event, the contract may be awarded
to the contractor or vendor offering the “best value” under a request for proposals as described in Minnesota
Statutes Section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c). Please contact the City
8
Administrator or Finance Director if you wish to consider using the Best Value Procurement Alternative as
training is required prior to initiating procurement.
Cooperative Purchasing Procedures
Cooperative purchasing contracts provide an opportunity for the City to purchase goods and services at
reduced costs. Employees do not need to obtain quotes or bids if a purchase is made through a national
municipal association purchasing alliance or a cooperative created by a joint powers agreement (of which
the City is a member) that purchases items from more than one source based on competitive bids or
quotations that complies with state statute.
The following is a list of some of the larger purchasing cooperatives of which the City is a member:
1. Cooperative Purchasing Ventures (CPV)
Minnesota Statutes Section 471.345, Subd. 15 requires cities to consider the State’s Cooperative
Purchasing Venture (CPV) for contracts estimated to exceed $25,000. The City of Lake Elmo participates
in the State of Minnesota Cooperative Purchasing Venture (CPV). This enables the City to buy goods and
services under the terms of contracts already negotiated by the State of Minnesota.
Information for this cooperative can be found on the State of Minnesota’s Materials Management
Division website: http://www.mmd.admin.state.mn.us/cpv2.htm
The website can direct employees to the releases and listings of the products/services that can be
purchased using the State Cooperative Purchasing Venture. If it is determined that a product/service is
on a State Cooperative Purchasing Venture, vendors should be told that the purchase will be made using
that contract. When completing the purchasing paperwork, note that the purchase is per “state
contract” and indicate the contract number.
Vendors will often contend that the City can purchase from them without bidding because they are on
the “state contract” or they will sell at the state contract price. Beware of these approaches. Verify
that both the vendor and the specific product/service is listed on the state contract. It is likely that no t
all of a vendor’s products/services have been selected to be on the state contract. If a vendor is not on
the state contract, but will match the state contract price, this action does not exempt the City from
following the competitive bidding laws.
2. Minnesota State Fire Chiefs Association – Fire Rescue Group Purchasing
The Fire Rescue Group Purchasing is a fire services purchasing program open to all Cities.
3. Cooperative Purchasing Programs
At times, the City may participate in the following purchasing programs;
• OMNIA Partners - Omniapartners.com
• Sourewell - Sourcewell-mn.gov
• HGAC – hgacbuy.org
9
4. Joint Powers Member
Any other joint powers purchasing entity of which the City is a member that provides for purchases in
accordance with Minnesota Statutes Section 471.345, subdivision 15(b) is also exempt from the quote
or bid process.
In all items outlined pertaining to cooperatives, please contact the City Administrator or Finance Director if
you have any questions.
Change Orders
Change orders may occur due to City driven changes, errors and omissions, field directives,
unforeseen/hidden conditions, regulatory requirements or changes that are contractor driven. Changes that
need to be made during construction often need to be addressed and approved in a timely manner in order
to keep the project on schedule.
1) For a change order less than $100,000, which does not result in exceeding the overall project budget,
the City Administrator may approve these.
2) At the discretion of the City Administrator, for a change order less than $100,000, but still within the
scope of the overall project budget, it may be presented to the City Council for consideration and
approval.
3) For any change order that results in exceeding the overall project budget, and/or exceeds $100,000
must be approved by the City Council.
Other Bidding Requirements
• The City must not avoid competitive bidding requirements by splitting a contract into several contracts,
each of which is below the minimum amount requiring bids.
• Bid specifications may not be written so as to exclude all but one type or kind of supplies or equipment
unless it is for public safety equipment that is clearly and legitimately limited to a single source of supply.
• The City may not accept a bid that includes a number of items when the advertisement called for separate
bids for each item.
• The City must re-bid the contract if the City makes a material change in the specifications of the contract.
• Minnesota Statutes Chapter 429 (local improvement code) applies to all public improvement contracts
(i.e., sewer, water and streets) being financed with special assessments.
Purchase or Lease of Used Public Safety Equipment
In 2011, cities were granted authority to lease or purchase used public safety equipment (“vehicles and
specialized equipment used by a fire department … in firefighting, ambulance and emergency medical
treatment services, rescue, and hazardous materials response”) without competitively bidding in certain
specified circumstances. Competitive bidding or proposals are not required, “if the equipment is clearly and
10
legitimately limited to a single source of supply, and the contract price may be best established by direct
negotiation.” See Minnesota Statutes Section 471.3455.
Equipment Leases and Lease-Purchases
All lease agreements require review by the Finance Director, and legal counsel and City Council approval is
required for all leases. For the leasing of equipment, Department Directors must obtain at least two quotes
to ensure the best financing rates. Staff will conduct a lease versus buy analysis to determine the most cost-
effective method. Lease performance bonds are sometimes prudent for lease-purchases, and as such, the
City Administrator and Finance Director will assist in determining if a lease performance bond should be
required.
Real Estate
The lease, purchase, or sale of real property is generally not subject to competitive bidding.
Online Purchases
Employees must only purchase from vendors that use secure services for e-commerce. The City is required
to pay sales tax for out-of-state purchases.
Withholding Certificates
Before the City makes a final payment to a contractor under a contract requiring payment of wages to
employees, it must make sure the contractor and any subcontractors have complied with withholding tax
laws. Contractors and subcontractors must show compliance by submitting a withholding affidavit to the
MN Department of Revenue. This can be done electronically or by mailing a completed Form IC134,
“Withholding Affidavit for Contractors.” If a contractor or subcontractor has withheld taxes as required, the
Department of Revenue will return an electronic confirmation or sign and return the Form IC134, certifying
compliance. The City must receive this certification of compliance before a final payment will be issued.
Covered contracts are only those under which a contractor undertakes to supply labor or a combination of
labor and materials for specific construction, repairs, rehabilitation or improvements. It does not apply to
contractors for maintenance services or dealers, merchants and suppliers who supply materials only. The
Department of Revenue requires the Form IC134 only be submitted in connection with contractors on
construction projects. Others are not required to submit the form so this paragraph is only applicable to
construction contracts.
Ethics and Acceptance of Gifts
Employees and council members authorized to make a sale, lease, or contract in their official capacity must
not have a personal financial interest in that sale, lease, or contract, or personally benefit financially from it.
(See Minn. Stat. § 471.87)
For non-business related purchases, employees may only take advantage of special pricing offered to
employees of the City if the same pricing is offered to all government employees state or
countrywide. However, special pricing offered to the City by vendors may not be accepted by employees in
a position to make purchasing decisions or recommendations within that same category of goods or services.
11
Public Purpose Expenditures
City employees are obligated to conserve and protect City resources for the benefit of public interest. As
good stewards of public funds, City employees must only use City funds for public purpose expenditures.
The expenditure of City funds on meals and refreshments for City employees, officials, and volunteers is only
authorized by the City Council for certain purposes. These purposes should be conducive to the
accomplishment of employees or officials’ duties and responsibilities while conducting City business and
therefore provide a public benefit and have a public purpose.
As detailed below, the purchase of meals and refreshments, using City funds is authorized in the following
circumstances:
• Those provided immediately before or in conjunction with meetings of the Council, committees or
subgroups that are held over a meal time hour.
• City business meetings at which those in attendance involve non-City employees.
• When a breakfast, lunch or dinner meeting is conducted for official City business when it is the only
practical time to meet and when it involves non-City employee participants.
• In connection with a conference, workshop, seminar or meeting which the employee has been
authorized to attend.
• Department-sponsored meetings, conferences or workshops where invited participants include non-
City employees.
• An organization-wide or department-wide annual, quarterly or monthly staff meeting.
• At regularly scheduled meetings of the City Administrator and key staff.
• Meals for staff involved in election related duties when the performance of their duties prohibits staff
from leaving the building.
• At the discretion of the City Administrator.
If you are unsure whether an item is a public purpose expenditure , please contact the City Administrator or
Finance Director.
12
State of Minnesota Bid, Quote, and Contract Requirements
The Uniform Municipal Contracting Law, Minn esota Statutes Section 471.345 sets out procedures that
cities must follow for contracts to sell, purchase, or rent supplies, materials, or equipment, or to construct,
alter, repair, or maintain real or personal property. The estimated amount of the contract dictates
which procedures apply. Of course, estimates should be reasonable.
Contracts estimated to have a value of over $175,000 must be made by sealed bids, solicited by public
notice, and awarded to the lowest responsible bidder. Bids should be retained for the period specified in
the City’s records retention schedule.
The requirement that the successful bidder be “responsible” protects cities from having to choose
unqualified or unscrupulous low bidders. It allows a city council to consider factors such as the
bidder’s financial responsibility, integrity, skill and ability, and the likelihood that the bidder will do
satisfactory work. A city can even include evaluation criteria for “responsible” bidders in the bid
specifications.
Request for Proposal (RFP)
State statue does not require advertisement of bids or sealed bids for pr ofessional services such as those of
engineers, lawyers, architects, accountants, and other services requiring technical, scientific, or professional
training. It is recommended that proposals be obtained through a request for proposal (RFP) process when
the contract is estimated to exceed $175,000.
The City recommends following an RFP process when soliciting professional consulting services greater than
$175,000.
The City Council must approve the standard professional services agreement.
Long term professional services contracts that rely on specialized expertise, institutional knowledge, and
continuity of service may be procured through a formal RFP or qualification based selection process not more
frequent than every five years.
Recommended sections to include in an RFP:
• Background and scope of project.
• Description of the scope of professional services to be provided .
• Schedule for the delivery of services.
• Contract terms. Include and reference as an attachment the City’s “Standard Professional Services
Agreement”, except when using the City’s consulting pool.
• The last day for submission of proposals and the place where they are due.
13
• If necessary, include a requirement for attendance at a pre-proposal meeting to answer vendor questions
regarding the RFP. This provides fairness to all participants when questions are answered with all
participants present. Request that all questions be submitted in advance by a certain date.
• Proposal evaluation and selection criteria.
• Format required for submitted proposals to provide for consistent submittals.
• Profile questionnaire to obtain general information about the vendor .
• A statement reserving the right of the City to reject all proposals.
At the discretion of the City Administrator, the RFP may be sent to the City attorney for review before it is
sent to selected vendors. RFPs should be sent to a reasonable/manageable number of vendors.
While it is not strictly required, you may solicit proposals by advertising on the LMC’s website, the City’s
website, or in a local newspaper or other appropriate sites.
After the submittal deadline, proposals should be reviewed by using a rating sheet, and each proposal should
be evaluated based on the specified requirements and general criteria. Follow up with reference checks as
appropriate. Select a vendor and make a recommendation to the City Council.
Standard Professional Services Agreement
The City’s “Standard Professional Services Agreement” (contract) should be used for professional service
contracts except when using the City’s consulting pool.
The City’s consulting pool list is maintained by the Engineering department. Vendors included in the
consulting pool have continuing services agreements in place with the city. When a project is awarded to a
vendor listed in the consulting pool, a task order is executed for the specific project scope, fee and budget
with the general terms and conditions of the standard professional service agreement on file with the city.
The Standard Professional Services Agreement outlines consultant obligations including insurance and
liability coverage requirements, audit disclosure, subcontractors, and termination processes.
Disposition or Donation of Surplus Assets
The City Administrator may recommend to the Council that certain property owned by the City is no longer
needed for a municipal purpose and should be sold.
There are three aspects to any disposal of a City asset:
1. Disposal Approval
The City Council must approve the disposal of all property that exceeds an estimated value of greater
than $100.00.
2. Terms of Sale Approval
The sale itself must be approved by the City Council.
14
3. Proper Municipal Sale Contract
Just as with purchasing, making a sale is considered entering into a contract. After the Council has
declared the property as surplus, and approved its disposal, the City Administrator, or designee, is
authorized to dispose of the property using one of the following methods:
Assets under $25,000
If the value of the surplus property is estimated to be $25,000 or less, the City Administrator, or designee,
may sell it either in the open market, by auction, or by obtaining two market comparisons, so far as
practical. If the surplus property is sold based upon comparisons, it/they shall be kept on file for a period
of at least one year after receipt.
Assets between $25,000 - $175,000
If the value of the surplus property is estimated to exceed $25,000 but not to exceed $175,000, the City
Administrator, or designee, may sell the property upon sealed bids or by direct negotiation, by obtaining
two or more market comparisons for the sale, when possible, or by auction, subject to a minimum of 2
bidders or meeting an auction reserve as determined by City Council. All comparisons obtained shall be
kept on file for a period of at least one year after their receipt.
Assets over $175,000
If the value of the surplus property is estimated to exceed $ 175,000), the City Administrator, or designee,
shall solicit sealed bids by public notice in the manner and subject to the requirements of the law
governing contracts by the City.
Government to Government Sales
The City may transfer real and personal property to another governmental entity for nominal or no
consideration and without following the process set out under “Proper Municipal Sale Contract” (Item #3
above). Sealed bids or quotes are not required. Council approval of the disposal (Item #1 above) and of the
terms of the disposal (Item #2 above) is always required. The Council may approve both the disposal and
disposal terms in one action.
Trade-ins
The City Council must approve the disposal of equipment via trade-in to utilize toward the purchase of new
equipment, just as it approves a regular disposal. This approval may be done as part of the approval of the
purchase of new equipment.
Electronic Sales
Minn. Stat. 471.345, subd. 17 states that “a city may contract to sell supplies, materials, and equipment which
is surplus, obsolete, or used, using an electronic selling process in which purchasers compete to purchase the
items at the highest purchase price in an open and interactive environment.”
Donations
The City Council approved a Policy for Donation of Surplus Equipment to a Nonprofit Organization on
February 7, 2018, and as such, said policy will govern the rules for donations for surplus equipment to a
nonprofit organization.
15
Restrictions
No employee of the City who is a member of the administrative staff, department head, a member of the
Council, or an advisor serving the City in a professional capacity may be a purchaser of property sold under
this Section. Other City employees may be purchasers if they are not directly involved in the sale, if they are
the highest responsible bidder, and if at least one week's published or posted notice of sale is given.
Versions:
May 15, 2018
Updated July 7, 2026
Vendor Report
Vendors whose total payments exceed $15,000 YTD. (thru 5/20/26)
Category was manually assigned by staff to show the types of purchases.
Vendor YTD for Vendor Category Note
Alex Air Apparatus 2 LLC 33,712 CIP Item & Routine Tender 2 Equip & Other Equip
Bolton & Menk, Inc 465,624 Routine City Engineer
Braun Intertec Corporation 54,598 CIP Items CIP Project Engineering
BS&A Software LLC 122,391 CIP Item Financial Software
CivicPlus LLC 43,739 Routine Website / Asset Mgmt Software
Cloudpermit Inc 16,250 Routine Permitting Software
Creative Homes Inc 22,926 Routine Escrow Releases
Eckberg Lammers 17,682 Routine Criminal Attorney
Emergency Apparatus Maint Inc 19,171
Routine & Budgeted Non-
Routine Fire Truck Repairs
HEALTHEQUITY INC 35,282 Routine Payroll - Benefits
Hoisington Koegler Group Inc 16,461 Routine Landscape Architect
Internal Revenue Service 283,862 Routine Payroll - Taxes
IUOE Local 49 Fringe Benefit Fund 76,060 Routine Payroll - Benefits
Kath Fuel Oil Service Co 26,571 Routine Fuel
Kennedy & Graven Chartered 17,215 Routine City Attorney
Lake Elmo Bank 115,369 Routine Bond Payment
League of MN Cities 20,394 Routine Membership
League of MN Cities Insur Trust 331,616 Routine Insurance
Lennar Minnesota 195,000 Routine Escrow Releases
METRO - INET 60,967 Routine IT Support
Metropolitan Council 451,549 Routine Sewer
MILESTONES 103,748 Routine Escrow Releases
MN DEPT OF REVENUE 56,584 Routine Payroll - Taxes
MN PEIP 136,690 Routine Payroll - Benefits
MN State Retirement System 27,371 Routine Payroll - Benefits
MUTUAL OF OMAHA 29,358 Routine Payroll - Benefits
Northland Bond Services 2,317,786 Routine/Pre-Approved Bond Payments
Pearson Bros Inc 26,000 Routine Escrow Releases
PERA 218,605 Routine Payroll - Benefits
Pulte Homes of MN LLC 22,791 Routine Escrow Releases
Robert Engstrom Companies 20,953 Routine Escrow Releases
Rosenbauer Minnesota LLC 507,150 CIP Tender 2
Schlenner Wenner & Co 30,597 Routine Audit
SRF Consulting Group Inc 18,638 Routine Engineer - Crosswalk Reviews
Tri State Bobcat 16,593
Routine & Budgeted Non-
Routine Repairs/Supplies & New Lawnmower
US BANK 3,706,859 Routine/Pre-Approved Bond Payments
Xcel Energy 131,154 Routine Utilities
Invoice Report
Invoices Exceeding $15,000. (as of 5/20/26)
Category was manually assigned by staff to show the types of purchases.
Approval Levels are Staff's interpretation of proposed policy.
Vendor Name Invoice Number Invoice Amount Category Note Purchase Approval Level / Basis Disbursement Approval Level / Basis
I
n 15K +175K+
Creative Homes Inc LEB 2025-01353 REF 22,926 Routine Escrow Releases City Admin - Delegated / Policy City Admin Yes No
HEALTHEQUITY INC REMIT 31,044 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 29,544 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 29,014 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 35,170 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 29,315 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 32,568 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 28,098 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 35,077 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 37,751 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
Internal Revenue Service REMIT 35,037 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
League of MN Cities 441870 16,319 Routine Membership City Admin - Delegated / Policy City Admin Yes No
League of MN Cities Insur Trust 10002726-WC 101,382 Routine Insurance City Admin - Delegated / Policy City Admin Yes No
League of MN Cities Insur Trust 10003136 - PREM 2026 165,808 Routine Insurance City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 20260228 SAC 22,141 Routine SAC Remittance City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 20260430 SAC 22,241 Routine SAC Remittance City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 20260331 SAC 41,823 Routine SAC Remittance City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 1199364 69,223 Routine Sewer City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 1199759 69,223 Routine Sewer City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 1202617 69,223 Routine Sewer City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 1204428 69,223 Routine Sewer City Admin - Delegated / Policy City Admin Yes No
Metropolitan Council 1205720 69,223 Routine Sewer City Admin - Delegated / Policy City Admin Yes No
MN DEPT OF REVENUE REMIT 56,584 Routine Payroll - Taxes City Admin - Delegated / Policy City Admin Yes No
MN PEIP 1599535 23,757 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
MN PEIP 1622994 27,552 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
MN PEIP 1629581 27,552 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
MN PEIP 1591960 27,919 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
MN PEIP 1613941 29,910 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
MN State Retirement System REMIT 27,371 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
Pearson Bros Inc 6411 26,000 Routine Escrow Releases City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 23,676.12 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 22,941.29 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 23,946.65 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 24,613.93 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 24,169.39 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 24,073.41 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 24,754.70 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 24,089.92 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
PERA REMIT 24,723.09 Routine Payroll - Benefits City Admin - Delegated / Policy City Admin Yes No
Xcel Energy 963644326 29,557 Routine Utilities City Admin - Delegated / Policy City Admin Yes No
MILESTONES 20260107 LOC RED 103,748 Routine Dev Escrow Release Comm. Dev. Director (City Code 105.12.1250)City Admin Yes No
Pulte Homes of MN LLC 20260107 ESCREL 22,791 Routine Dev Escrow Release Comm. Dev. Director (City Code 105.12.1250)City Admin Yes No
Robert Engstrom Companies 20260129 ESC RED 20,953 Routine Dev Escrow Release Comm. Dev. Director (City Code 105.12.1250)City Admin Yes No
Alex Air Apparatus 2 LLC INV-53783 19,140 CIP Item Tender 2 Equip & Other Equip Council Council Yes No
Braun Intertec Corporation IN1003362 38,676 CIP Item CIP Project Engineering Council Council Yes No
BS&A Software LLC 164990 36,995 CIP Item Financial Software Council Council Yes No
BS&A Software LLC 165926 64,355 CIP Item Financial Software Council Council Yes No
CivicPlus LLC 374467 21,855 Routine Website / Asset Mgmt Software (new contract)Council Council Yes No
Cloudpermit Inc INV902035 16,000 Routine Permitting Software Council Council Yes No
Bolton & Menk, Inc 388432 27,011 Routine City Engineer Council City Admin Yes No
Bolton & Menk, Inc 386494 31,710 Routine City Engineer Council City Admin Yes No
Bolton & Menk, Inc 388466 34,497 Routine City Engineer Council City Admin Yes No
Rosenbauer Minnesota LLC 87151 507,150 CIP Item Tender 2 Council Council Yes Yes
IUOE Local 49 20260301 15,075 Routine Payroll - Benefits Council (prior contracts)City Admin Yes No
IUOE Local 49 20260401 15,075 Routine Payroll - Benefits Council (prior contracts)City Admin Yes No
IUOE Local 49 Fringe Benefit Fund20260601 15,075 Routine Payroll - Benefits Council (prior contracts)City Admin Yes No
IUOE Local 49 Fringe Benefit Fund20260501 16,750 Routine Payroll - Benefits Council (prior contracts)City Admin Yes No
Lake Elmo Bank 2018EQUIP CERT 119,180 Routine Bond Payment Council (prior contracts)City Admin Yes No
Schlenner Wenner & Co 339866 30,000 Routine Audit Council (prior contracts)City Admin Yes No
US BANK 3091756 404,703 Routine/Pre-Approved Bond Payments Council (prior contracts)City Admin (prior contract delegation)Yes Yes
US BANK 3093881 469,700 Routine/Pre-Approved Bond Payments Council (prior contracts)City Admin (prior contract delegation)Yes Yes
US BANK 3024224 499,050 Routine/Pre-Approved Bond Payments Council (prior contracts)City Admin (prior contract delegation)Yes Yes
US BANK 3091830 927,216 Routine/Pre-Approved Bond Payments Council (prior contracts)City Admin (prior contract delegation)Yes Yes
US BANK 3091820 1,405,616 Routine/Pre-Approved Bond Payments Council (prior contracts)City Admin (prior contract delegation)Yes Yes
STAFF REPORT
DATE: 7/7/26
REGULAR
TO: Mayor and Councilmembers
FROM: Nathan Fuerst, Consulting Planner
REVIEWED BY: Jason Stopa, Community Development Director
Sophia Jensen, Senior City Planner
AGENDA ITEM: Final Plat – Highpointe Crossing
CORE STRATEGIES:
☒ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance
☒ Managed Growth
☒ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☒ Resilient Infrastructure
BACKGROUND:
On May 5, 2026, the City Council conditionally approved a request for a Preliminary Plat for 18 single family lots
on approximately 80 acres of land located West of Inwood Avenue between the Lake Elmo Heights and Torre
Pines developments. Rachel Development, the developer, is now requesting approval of a final plat.
ISSUE BEFORE COUNCIL:
Should the City Council approve the final plat for Highpointe Crossing?
PROPOSAL DETAILS/ANALYSIS:
Applicant: Rachel Development, Inc., Paul Robinson, Development Director
Property Owner: Allan Eberhard, Trustee of Caroline M. Eberhard Trust
Location: 2298 Inwood Ave, N. (PID# 21.029.21.32.0001)
Request: Final Plat
Land Use Map Rural Single Family
Zoning Residential Estate
Deadline: Application Complete – 6/11/2026
60 Day Deadline – 8/10/2026
Overall Plat Summary:
Total Site Area 78.24 acres
Wetland Area 2.648 acres
Right-of-Way (ROW) 1.806 acres
Net Site Area 73.786 acres
Number of Units 18
Net Density 0.244 units/acre
This density is consistent with the City’s Comprehensive Plan.
Final Plat Conformance.
The Final Plat is generally consistent with the approved Preliminary Plat. A review of the conditions of approval
from the Preliminary Plat and PUD are provided in this report.
Environmental Review.
The number of unattached residential units in this project does not trigger a mandatory Environmental
Assessment Worksheet under Minnesota Rules 4410.4300.
Plan Review.
Cells in the ‘As Proposed’ cells shaded in green indicate a variance that has been granted from City Code.
Standards (105.12.630) RE Requirement: As Proposed
Minimum Lot Area 2.5 ac 2.56 to 5.21 ac
3.59 ac average
Minimum Lot Width NA NA
Max Impervious Cover 15% per lot 15%
Buildable Lot Area (no floodplain or
easements)
1.25 ac 1.80 to 4.62 ac
2.61 ac average
Lot Shape 250’ diameter/ max. 3:1 lot
length/width ratio
All lots meet requirement
Minimum Setback - Front 100 feet 50’
Minimum Setback - Side 50 feet 50’
Minimum Setback - Corner 80 feet 80’
Minimum Setback - Rear 100 feet 100’
Maximum Height 35 feet Not provided
Driveway Setback from intersection 50 feet from r-o-w 50+ feet from ROW
Driveway setback from side lot line 5 feet Driveway locations/widths not
provided
Driveway Width 12-26 feet Driveway locations/widths not
provided
Landscaping per Disturbed Acre 5 trees per disturbed acre 3 trees per lot
Sidewalks Sidewalk on one side of
street
No sidewalks
The proposed development is not a PUD; however, as part of the preliminary plat approval, the City Council
approved three variances as summarized below:
1. Reduced Front Yard Setbacks (LEC 105.12.630). A 50’ front yard setback for all new construction,
and a 20’ front yard setback for the existing home.
2. Landscaping Requirements (LEC 105.12.480,[c,12]). A variance to the required number of
plantings per acre was approved with the condition the Developer plan at least 3 trees per lot.
3. Sidewalks on Ones Side of Street (LEC 103.00.140, [j,5]). The Council approved a variance to this
requirements so no sidewalks are required.
Lot Configuration. All 18 lots appear to meet the City’s bulk standards for area and width, including the unique
requirements found in rural districts for a 250’ diameter circle to fit in the lot. In addition to this, the lots appear
consistent with city standards for subdivisions found in section 103.00.140.
Design and development standards. Specific standards are created for rural developments by City Code Sec.
105.12.650. This development is anticipated to meet applicable standards for dwelling area, on-site sewage
treatment (SSTS) systems, and vehicle parking.
City code contains minimal requirements for design and building materials on single family dwellings, particularly
in rural development. The resulting single family homes are anticipated to exceed applicable design standards.
Subdivision Signs. Section 105.12.430 allows one (1) subdivision sign for this residential development with a
maximum sign area of 32 sq. ft. which must be set back at least 10 feet from the right of way , or 5 feet from the
curb if installed in a median. One development monument sign is proposed with this development in the median
at the development entrance. Signage located within a right of way must be accompanied by a landscaping license
agreement for maintenance. If portions of the sign will exceed 6 feet in height, a variance will be required.
Landscaping and Tree Preservation. A tree preservation plan was submitted and reviewed by the City’s Landscape
Architect. Per the City Landscape Architect’s Memo, the proposed plans generally comply with City requirements,
but still require revisions to comply with City Standards prior to acceptance by the City.
Wetlands. There are 6 wetlands on the development site. Of those, 5 will be preserved through the proposed
development layout. There is one very small wetland (#6) comprising .02 acres which is proposed for de minimis
removal. This has been approved by the Valley Branch Watershed District. Wetland buffer averaging is proposed
around the remaining wetlands. Staff recommend that wetland buffer signage be located on the lots containing a
wetland and a required wetland buffer.
Parking and Driveways. Section 105.12.650 requires two interior spaces per dwelling unit, and two exterior
spaces outside of the side yard setback for the principal structure. This is more restrictive than the standard in
Section 105.12.410 and is therefore the requirement. The home sites appear to accommodate this standard. The
homes will have two or more enclosed stalls with driveways that accommodate additional parking, likely
exceeding 2 spaces per lot. Given the width of the right of way, parking will be limited to one side of the street.
Section 9.16.090 details driveway requirements. Driveways must be at least 5 feet from property side yards and
must be between 12 and 26 feet in width. Driveways are not shown on the project plans, and locations cannot be
verified. As such, driveways must conform to all City standards including location, grade, and surface, when
proposed.
Access. The roadway proposed for this development is a public street, and extends the stub of Imperial Avenue
North in the Lake Elmo Heights 3rd Addition to the south and west to Inwood Avenue North. A cul-de-sac on the
south side of Imperial Avenue North, called Imperial Court, provides access to six of the proposed lots.
Traffic. Inwood Avenue is a collector street and designed to carry large traffic volumes. Washington County has
noted turn lanes will be required as part of this development. A Traffic Impact Report was prepared for the
previously approved 65-lot preliminary plat. The Developer has not submitted a new Traffic Impact Report at this
time although any impacts would be less than any anticipated for the previous plan.
Parks. §103.00.150 Park Land Dedication Requirements. The City Code requires that the project provide a
minimum of at least 5% of the land for parks, or a cash in lieu fee using the estimated fair market value of the
property. The City’s Parks Commission reviewed the concept plan for this development on February 18, 2026, and
provided a recommendation for cash in lieu given the close proximity to Lake Elmo Park Reserve.
Stormwater. The Developer has supplied plans showing 3 new City Owned stormwater ponds and two filtration
basins. The proposed ponds treat stormwater where water typically leaves the site, and utilizes existing
drainageways. Pans and details on the stormwater system must meet the requirements of the City Engineer.
Review Comments:
Conditions of approval for addressing agency review memos has been added to the recommendations. The
Applicant resubmitted a revised set of plans on May 13, 2026 to address the conditions of approval of the
preliminary plat. Additional plans were submitted on June 17, 2026. The plans are currently under review.
Fire Chief Review. The City’s Fire Chief provided a comment memo dated 3/24/2026 which includes comments
on emergency access, signage, hydrants, addressing, and street naming. Comments have not changed on this
project.
Valley Branch Watershed District. The developer has received a permit conditionally approving the project from
VBWD. Before any work can begin on site, the Developer will be required to confirm that changes to the plans
since receipt of the VBWD permit do not necessitate changes to the watershed’s review or approval.
Engineering Review. The City Engineer provided detailed comments on the final plat in a memo dated July 1,
2026. If approved, the development must fully address all City Engineering comments.
Landscape Architect Memo. The City’s Landscape Architect provided a memo dated June 30, 2026, reviewing
the tree preservation and landscape plans. The final landscaping plan shall be revised as required by the memo.
PRELIMINARY PLAT CONDITIONS OF APPROVAL:
Items in grey text below have been addressed, items in black will be addressed by the Applicant concurrent with,
or following, final plat approval:
1. Prior to the City finding any application for a final plat complete, the applicant shall fully address all
comments in the following review memos to the satisfaction of the City:
a. City Engineer’s memo dated 3/24/2026
b. City Landscape Architect’s memo dated 3/31/2026
c. City Fire Chief’s memo dated 3/24/2026
2. Prior to the City finding any application for a final plat complete, the applicant shall fully address any
changes to the plans that may be required by the approval or denial of any requested variances.
3. Prior to the City finding any application for final plat complete, the applicant shall demonstrate that the
plans reflect compliance with Valley Branch Watershed (VBWD) review requirements and that the
applicant provide the City evidence that all conditions attached to a VBWD permit will be met before the
starting any grading activity on the site.
4. The applicant shall obtain all necessary permits including but not limited to all applicable City permits
(building, grading, sign, etc.), Washington County ISTS permits, NPDES/SWPPP permits and Valley Branch
Watershed District approval before starting any grading or construction activities.
5. Wetland buffer signage in the City’s standard form shall be placed on all lots with wetland buffer areas.
6. The applicant/developer is responsible for a cash in lieu fee to cover all trees not planted but required by
the City’s Ordinance.
7. The applicant/developer is responsible, at their own expense, for installing all required right of way and
pedestrian improvements.
8. Storm water ponds shall be placed on separate outlots and conveyed to the City through a warranty
deed in a form acceptable to the City.
9. The applicant/developer shall provide the City a fee in lieu of park land dedication as required by Section
103.00.150 to be paid prior to recording of the final plat.
10. All easements as requested by the City Engineer and Public Works Department shall be documented on
the Final Plat before the execution of the final plat by City Officials.
11. If necessary, the applicant shall provide the City with a copy of written permission for any off-site grading
work and storm sewer discharges to adjacent properties before starting any site work, grading and as
part of any final plat application.
12. If applicable, a storm water maintenance and easement agreement in a form acceptable to the City shall
be executed and recorded with the final plat.
13. Before the execution and recording of a final plat for the development, the developer or applicant shall
enter into a Developer’s Agreement or a Site Work Agreement with the City. Such an Agreement must be
approved by the City Attorney and by the City Council. The Agreement shall delineate who is responsible
for the design, construction and payment for the required improvements with financial guarantees
therefore.
14. The applicant or developer shall enter into a separate grading agreement with the City before starting
any grading activity in advance of final plat approval. The City Engineer shall review any grading plan
that is submitted in advance of a final plat, and said plan shall document the extent of any proposed
grading on the site.
RECOMMENDED FINDINGS OF APPROVAL:
The City Council will be required to make findings in support of a decision to approve or deny the Applicant’s
request. The following findings could be made by the City to approve the development.
Staff recommends approval of the Final Plat for PID 21.029.21.32.0001 based on the following findings:
1. That all the requirements of City Code Section 103.00.100 related to the Final Plans and Final
Plat have been met by the Applicant.
2. That the Highpointe Crossing Final Plat consists of 18 attached single-family lots plus outlots
intended for stormwater management.
3. That the Highpointe Crossing Final Plat is generally consistent with the Preliminary Plat as
approved by the City of Lake Elmo on May 5, 2026.
4. That the Highpointe Crossing Final Plat is consistent with the intent of the 2040 Lake Elmo
Comprehensive Plan and the 2040 Land Use Map for this area.
5. That the Highpointe Crossing Final Plat complies with the general intent of the Residential
Estate (RE) zoning district with the approved variances.
6. That the Highpointe Crossing Final Plat generally complies with the Lake Elmo Design Guidelines
and Standards Manual.
7. That the Highpointe Crossing Final Plat generally complies with the City’s Subdivision
regulations.
8. That the Highpointe Crossing Final Plat generally complies with the City’s Zoning Code with the
exceptions provided for in the approved variances.
9. That the Highpointe Crossing Final Plat is generally consistent with the City’s engineering
standards with the exceptions noted by the City Engineer in their review comments to the City
dated March 24, 2026, and as otherwise identified in future reviews.
RECOMMENDED CONDITIONS OF APPROVAL
Staff recommends the City Council approve of the Preliminary Plat request with the following conditions:
1. Prior to the City Council signing or approving recording the final plat, the applicant shall fully address all
comments in the following review memos, or any subsequent review memos, to the satisfaction of the
City:
a. City Engineer’s memo dated 7/1/2026
b. City Landscape Architect’s memo dated 6/30/2026
c. City Fire Chief’s memo dated 3/24/2026
2. Prior to the City Council signing or approving recording the final plat, the applicant shall demonstrate
that the plans reflect compliance with Valley Branch Watershed (VBWD) review requirements and that
the applicant provide the City evidence that all conditions attached to a VBWD permit will be met before
the starting any grading activity on the site.
3. The applicant shall provide the power line corridor easement encroachment agreement to the City for
review and approval of the terms of said agreement.
4. The applicant shall obtain all necessary permits including but not limited to all applicable City permits
(building, grading, sign, etc.), Washington County ISTS permits, NPDES/SWPPP permits and Valley Branch
Watershed District approval before starting any grading or construction activities.
5. Wetland buffer signage in the City’s standard form shall be placed on all lots with wetland buffer areas.
6. The applicant/developer is responsible, at their own expense, for installing all required right of way and
pedestrian improvements.
7. Storm water ponds shall be placed on separate outlots and conveyed to the City through a warranty
deed in a form acceptable to the City.
8. The applicant/developer shall provide the City a fee in lieu of park land dedication as required by Section
103.00.150 to be paid prior to recording of the final plat.
9. All easements as requested by the City Engineer and Public Works Department shall be documented on
the Final Plat before the execution of the final plat by City Officials.
10. If necessary, the applicant shall provide the City with a copy of written permission for any off-site grading
work and storm sewer discharges to adjacent properties before starting any site work, grading and as
part of any final plat application.
11. If applicable, a storm water maintenance and easement agreement in a form acceptable to the City shall
be executed and recorded with the final plat.
12. Before the execution and recording of a final plat for the development, the developer or applicant shall
enter into a Developer’s Agreement. Such an Agreement must be approved by the City Attorney and by
the City Council. The Agreement shall delineate who is responsible for the design, construction and
payment for the required improvements with financial guarantees therefore.
13. The applicant or developer shall enter into a separate grading agreement with the City before starting
any grading activity in advance of final plat approval. The City Engineer shall review any grading plan
that is submitted in advance of a final plat, and said plan shall document the extent of any proposed
grading on the site.
14. That the Applicant must record the final plat within 180 days after City Council approval or the final plat
shall be considered void unless a request for a time extension is submitted in writing and approved by
the City Council.
FISCAL IMPACT:
Prior to recording the Final Plat, the Applicant will pay the City fees for utility connections and Parkland Dedication.
Building Permit fees will be collected at the time of permit issuance.
The City is not providing financial assistance as part of this project.
OPTIONS:
The City Council may:
• Approve the requests.
• Approve the requests with conditions.
• Deny the requests, citing findings of fact.
RECOMMENDATION:
Should the City Council agree with staff’s recommendations and findings, it should conditionally approve the
proposed Final Plat for the subject property with the recommended findings and conditions of approval listed in
the staff report.
EXAMPLE MOTION:
“Move to adopt Resolution 2026-48 approving the final plat for Highpoint Crossing, as requested by Rachel
Development for the subject property based on the findings and conditions listed therein.”
ATTACHMENTS:
1. Resolution 2026-048 Approving Final Plat
2. Final Plat and Project Plans
3. City Engineer Memo
4. Fire Chief Memo
5. Landscape Architect Memo
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2026-048
RESOLUTION APPROVING THE FINAL PLAT REQUEST FOR HIGHPOINTE CROSSING
WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under
the laws of the State of Minnesota; and
WHEREAS, the City of Lake Elmo has established a Comprehensive Plan that includes
background data, policy statements, standards, and maps that help to guide the future physical,
social, and economic development of the City; and
WHEREAS, Rachel Development, Inc., (the “Applicant) has requested a Final Plat for
Highpointe Crossing, on property legally described on Exhibit A attached hereto (the “Property”)
WHEREAS, the application for Highpointe Crossing Final Plat was submitted to the City
on May 13, 2026, along with subsequent revisions; and
WHEREAS, the application for Highpointe Crossing Final Plat was not found by the city to
be complete until June 11, 2026; and
WHEREAS, the Lake Elmo City Council reviewed the Highpointe Crossing Final Plat
request at its meeting held on July 7, 2026 and voted to approve the item with the following
findings of fact:
1. That all the requirements of City Code Section 103.00.100 related to the Final Plans and
Final Plat have been met by the Applicant.
2. That the Highpointe Crossing Final Plat consists of 18 attached single-family lots plus
outlots intended for stormwater management.
3. That the Highpointe Crossing Final Plat is generally consistent with the Preliminary Plat as
approved by the City of Lake Elmo on May 5, 2026.
4. That the Highpointe Crossing Final Plat is consistent with the intent of the 2040 Lake Elmo
Comprehensive Plan and the 2040 Land Use Map for this area.
5. That the Highpointe Crossing Final Plat complies with the general intent of the Residential
Estate (RE) zoning district with the approved variances.
6. That the Highpointe Crossing Final Plat generally complies with the Lake Elmo Design
Guidelines and Standards Manual.
7. That the Highpointe Crossing Final Plat generally complies with the City’s Subdivision
regulations.
8. That the Highpointe Crossing Final Plat generally complies with the City’s Zoning Code
with the exceptions provided for in the approved variances.
9. That the Highpointe Crossing Final Plat is generally consistent with the City’s engineering
standards with the exceptions noted by the City Engineer in their review comments to the
City dated March 24, 2026, and as otherwise identified in future reviews.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council does hereby approve
Highpoint Crossing Final Plat subject to the following conditions:
1. Prior to the City Council signing or approving recording the final plat, the applicant shall fully
address all comments in the following review memos, or any subsequent review memos, to the
satisfaction of the City:
a. City Engineer’s memo dated 7/1/2026
b. City Landscape Architect’s memo dated 6/30/2026
c. City Fire Chief’s memo dated 3/24/2026
2. Prior to the City Council signing or approving recording the final plat, the applicant shall
demonstrate that the plans reflect compliance with Valley Branch Watershed (VBWD) review
requirements and that the applicant provide the City evidence that all conditions attached to a
VBWD permit will be met before the starting any grading activity on the site.
3. The applicant shall provide the power line corridor easement encroachment agreement to the City for
review and approval of the terms of said agreement.
4. The applicant shall obtain all necessary permits including but not limited to all applicable City
permits (building, grading, sign, etc.), Washington County ISTS permits, NPDES/SWPPP permits
and Valley Branch Watershed District approval before starting any grading or construction activities.
5. Wetland buffer signage in the City’s standard form shall be placed on all lots with wetland buffer
areas.
6. The applicant/developer is responsible, at their own expense, for installing all required right of way
and pedestrian improvements.
7. Storm water ponds shall be placed on separate outlots and conveyed to the City through a warranty
deed in a form acceptable to the City.
8. The applicant/developer shall provide the City a fee in lieu of park land dedication as required by
Section 103.00.150 to be paid prior to recording of the final plat.
9. All easements as requested by the City Engineer and Public Works Department shall be documented
on the Final Plat before the execution of the final plat by City Officials.
10. If necessary, the applicant shall provide the City with a copy of written permission for any off-site
grading work and storm sewer discharges to adjacent properties before starting any site work,
grading and as part of any final plat application.
11. If applicable, a storm water maintenance and easement agreement in a form acceptable to the City
shall be executed and recorded with the final plat.
12. Before the execution and recording of a final plat for the development, the developer or applicant
shall enter into a Developer’s Agreement. Such an Agreement must be approved by the City
Attorney and by the City Council. The Agreement shall delineate who is responsible for the design,
construction and payment for the required improvements with financial guarantees therefore.
13. The applicant or developer shall enter into a separate grading agreement with the City before starting
any grading activity in advance of final plat approval. The City Engineer shall review any grading
plan that is submitted in advance of a final plat, and said plan shall document the extent of any
proposed grading on the site.
14. That the Applicant must record the final plat within 180 days after City Council approval or the final
plat shall be considered void unless a request for a time extension is submitted in writing and
approved by the City Council.
Passed and duly adopted this 7th day of July 2026 by the Lake Elmo Minnesota City Council.
____________________________________
Charles Cadenhead, Mayor
ATTEST:
____________________________________
Julie Johnson, City Clerk
Resolution 2026-048
Exhibit A
Legal Description of Subject Property
The North 1 /2 of the SW 1/4 of Section 21, Township 29, Range 21, Washington County,
Minnesota; Except: All that part of the North 75.00 feet of the East 150.00 feet of the North 1/2 of
the SW 1/4 of Section 21, Township 29 North, Range 21 West, Washington County, Minnesota,
which lies westerly of the west line of Parcel 3 of the Washinton County Highway Right of Way
Plat No. 98 - C.S.A.H. l3, according to the recorded plat thereof.
SITESHEET 1 OF 5 SHEETSHIGHPOINTE CROSSINGSRRGNNE ENIG EDESIENN SATHRE-BERGQUIST, INC.SUSSYRS OER EVRPLAKNOW ALL PERSONS BY THESE PRESENTS: That Rachel Development, Inc., a Minnesota corporation, owner of the following described property situated in the County ofWashington, State of Minnesota, to wit:The North Half of the Southwest Quarter of Section 21, Township 29, Range 21, Washington County, Minnesota.ExceptAll that part of the North 75.00 feet of the East 150.00 feet of the North Half of the Southwest Quarter of Section 21, Township 29 North, Range 21 West, Washington County, Minnesota,which lies westerly of the west line of Parcel 3 of the Washington County Highway Right of Way Plat No. 98 - C.S.A.H. 13, according to the recorded plat thereof.Has caused the same to be surveyed and platted as HIGHPOINTE CROSSING and does hereby dedicate to the public for public use the public ways and the drainage and utility easementsas created by this plat.In witness whereof said Rachel Development, Inc., a Minnesota corporation, has caused these presents to be signed by its proper officerthis day of , 20____.Signed: Rachel Development, Inc.Donald Rachel, Chief Executive OfficerSTATE OF MINNESOTA, COUNTY OF This instrument was acknowledged before me this day of , 20_____, by Donald Rachel, Chief Executive Officer of Rachel Development,Inc., a Minnesota corporation, on behalf of the corporation.My Commission Expires:Notary Public,, Minnesota (Signature) (Notary Printed Name)SURVEYORS CERTIFICATION I Colyn M. Tvete do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in the State of Minnesota; that this plat is acorrect representation of the boundary survey; that all mathematical data and labels are correctly designated on this plat; that all monuments depicted on this plat have been set, or will becorrectly set within one year; that all water boundaries and wet lands, as defined in Minnesota Statutes, Section 505.01, Subd. 3, as of the date of this certificate are shown and labeled onthis plat; and all public ways are shown and labeled on this plat.Dated this day of , 20_____.Colyn M. Tvete, Licensed Land Surveyor,Minnesota Licence No. 62269STATE OF MINNESOTA, COUNTY OF HENNEPINThis instrument was acknowledged before me on this day of , 20_____, by Colyn M. Tvete.My Commission Expires:Notary Public, Hennepin County, MinnesotaPrinted NameLAKE ELMO, MINNESOTAThis plat was approved by the City Council of the City of Lake Elmo, Minnesota, this day of , 20_____, and hereby certifies compliancewith all requirements as set forth in Minnesota Statutes, Section 505.03, Subd. 2.By: By: Mayor ClerkCOUNTY SURVEYORPursuant to Chapter 820, Laws of Minnesota, 1971, and in accordance with Minnesota Statutes, Section 505.021, Subd. 11, this plat has been reviewed and approvedthis day of , 20_____.By: By: Washington County SurveyorCOUNTY AUDITOR/TREASURERPursuant to Minnesota Statutes, Section 505.021, Subd. 9, and Section 272.12, taxes payable in the year 20 , on the real estate hereinbefore described, have been paid; and there are nodelinquent taxes, and transfer has been entered on this day of , 20_____.By: By: Washington County Auditor/Treasurer DeputyCOUNTY RECORDERDocument Number ______________________I hereby certify that this instrument was recorded in the Office of the County Recorder for record on this day of , 20_____,at o'clock . M. and was duly recorded in Washington County Records.By: By: Washington County Recorder DeputyVICINITY MAPSECTION 21, TOWNSHIP 29N, RANGE 21W(NOT TO SCALE)NORTH
Overall Boundary8OUTLOT
AINSET C(SEE SHEET 5 OF 5 SHEETS)INSET B(SEE SHEET 4 OF 5 SHEETS)INSET A(SEE SHEET 3 OF 5 SHEETS)Δ
ΔΔΔ OUTLOT COUTLOT AΔ11(C.S.A.H. NO. 13)INWOOD AVE. N.0SCALE IN FEET1005050100200SHEET 2 OF 5 SHEETSSRRGNNE ENIG EDESIENN SATHRE-BERGQUIST, INC.SUSSYRS OER EVRPLANORTHHIGHPOINTE CROSSINGThe basis for the bearing system is the eastline of the North 1/2 of the SW 1/4 of Section 21,Township 29, Range 21,which is assumed to bearSouth 00 degrees 00 minutes 35 seconds East.Denotes found Washington County cast iron monumentDenotes a 1/2 inch pipe found and marked by LicenseNo. 47481.Denotes a 1/2 inch by 14 inch iron pipe set and markedby License No. 62269 in accordance with MinnesotaState Statute 505.021, Subd. 10.Denotes a PK-Nail and disc set and marked by LicenseNo. 62269 in accordance with Minnesota State Statute505.021, Subd. 10.
89107OUTLOT B
OUTLOT C
OUT
LO
T
B
Δ
ΔΔΔΔ
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Δ 61Δ11ΔΔΔΔΔΔΔΔΔΔΔ
Δ
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23Δ ΔΔΔ
I
MP
E
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ALAVE
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N O R T H
IMPERIALCIRCLENORTH2ΔΔΔΔΔΔΔIMPERIAL AVE N13OUTLOT C0SCALE IN FEET60303060120SHEET 3 OF 5 SHEETSSRRGNNE ENIG EDESIENN SATHRE-BERGQUIST, INC.SUSSYRS OER EVRPLANO R T HNOT TO SCALE10 1010Being 10 feet in width and adjoining side lot lines and being 10 feet inwidth and adjoining public ways, unless otherwise indicated on this plat.10 DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS:HIGHPOINTE CROSSINGDenotes found Washington County cast iron monumentDenotes a 1/2 inch by 14 inch iron pipe set and markedby License No. 62269 in accordance with MinnesotaState Statute 505.021, Subd. 10.The basis for the bearing system is the eastline of the North 1/2 of the SW 1/4 of Section 21,Township 29, Range 21,which is assumed to bearSouth 00 degrees 00 minutes 35 seconds East.(SEE SHEET 2 OF 5 SEETS)DETAILNO R T H0SCALE IN FEET2010102040DETAILINSET A(FROM SHEET 2 OF 5 SHEETS)
5Δ234IMPERIALA V E N U EN O R T HΔΔΔΔΔΔΔ
Δ 3234SHEET 4 OF 5 SHEETSSRRGNNE ENIG EDESIENN SATHRE-BERGQUIST, INC.SUSSYRS OER EVRPLAHIGHPOINTE CROSSING0SCALE IN FEET60303060120NO R T HNOT TO SCALE10 1010Being 10 feet in width and adjoining side lot lines and being 10 feet inwidth and adjoining public ways, unless otherwise indicated on this plat.10 DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS:Denotes a 1/2 inch by 14 inch iron pipe set and markedby License No. 62269 in accordance with MinnesotaState Statute 505.021, Subd. 10.The basis for the bearing system is the eastline of the North 1/2 of the SW 1/4 of Section 21,Township 29, Range 21,which is assumed to bearSouth 00 degrees 00 minutes 35 seconds East.(SEE SHEET 2 OF 5 SEETS)INSET B(FROM SHEET 2 OF 5 SHEETS)
OUTLOT D
1ΔΔ
Δ65ΔΔΔ
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I M P E R I A L
INWOOD AVE NA
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Δ (C.S.A.H NO. 13)0SCALE IN FEET60303060120SHEET 5 OF 5 SHEETSSRRGNNE ENIG EDESIENN SATHRE-BERGQUIST, INC.SUSSYRS OER EVRPLANO R T H
HIGHPOINTE CROSSINGThe basis for the bearing system is the eastline of the North 1/2 of the SW 1/4 of Section 21,Township 29, Range 21,which is assumed to bearSouth 00 degrees 00 minutes 35 seconds East.NOT TO SCALE10 1010Being 10 feet in width and adjoining side lot lines and being 10 feet inwidth and adjoining public ways, unless otherwise indicated on this plat.10 DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS:Denotes a 1/2 inch pipe found and marked by LicenseNo. 47481.Denotes a 1/2 inch by 14 inch iron pipe set and markedby License No. 62269 in accordance with MinnesotaState Statute 505.021, Subd. 10.Denotes a PK-Nail and disc set and marked by LicenseNo. 62269 in accordance with Minnesota State Statute505.021, Subd. 10.INSET C(FROM SHEET 2 OF 5 SHEETS)
MEMORANDUM
Date: July 1, 2026
To: Sophia Jensen, Senior Planner Re: Highpointe Crossing
Nathan Fuesrt, Planning Consultant Final Plat-Construction Plans
Jason Stopa, Community Development Director
Pete Tholen, Public Works Director
Nate Stanley, City Engineer
Chad Isakson, Assistant City Engineer
From: Jack Griffin, Sr. Project Manager
An engineering review has been completed for the Highpointe Crossing Addition Final Plat/Plans received
on June 22, 2026. The review consisted of the following documentation:
· Highpointe Crossing Final Plat, not dated (PDF file dated June 9, 2026).
· Highpointe Crossing Construction Plans dated June 18, 2026.
· Highpointe Crossing Project Manual-Specifications dated June 11, 2026.
· Highpointe Crossing Stormwater Management Plan dated April 10, 2026.
· Highpointe Crossing Landscape Plans dated May 19, 2026.
STATUS/FINDINGS: Engineering review comments have been provided in two separate memos; one for
Final Plat approval and one to assist with the completion of the Final Construction Plans. Please see the
following review comments relating to the Final Plat application.
FINAL PLAT AND EASEMENTS
1. The Final Plat shall not be recorded until the City Engineer approves the Final Construction Plans.
2. All easements as required by the City Engineer and Public Works Director shall be documented on
the Final Plat prior to the release of the Final Plat for recording. Revisions to the Final Plat may be
necessary as the Construction Plans are reviewed and finalized.
3. All easement areas must be free from all encroachments other than those approved by the City
Engineer and upon execution of an easement encroachment agreement. Prohibited
encroachments include, but are not limited to trees, landscaping, fences, retaining walls, graded
slopes, and building structures.
4. Small/dry utility corridors along all public right-of-way must be reserved for the installation of
small/dry utilities. It will be the responsibility of the developer to ensure that the utilities are
installed within the dedicated corridors and locations. Installations by private utility companies
outside of the dedicated areas will be subject to relocation at the developers’ cost.
5. Right-of-way dedication. Final Plat approval must be contingent upon the dedication of right-of-
way along Inwood Avenue (CSAH 13) as required by Washington County and consistent with the
Page: 2
approved Preliminary Plat, including a minimum of 75-feet from the existing roadway centerline.
Right-of-way dedication has been addressed on the Final Plat as required.
6. Access Management. Site access is shown from a new residential street (Imperial Avenue)
extending west into the subdivision from Inwood Avenue (CSAH 13). The Access location is subject
to final approval by Washington County.
7. Intersection Improvements. The applicant will be responsible for constructing all intersection and
turn lane improvements at the new access location of Imperial Avenue and Inwood Avenue (CSAH
13). Turn lanes must be designed and constructed as part of the subdivision improvements and
as required by Washington County. Turn Lane improvements have been shown on the Final
Construction Plans and will be subject to revisions per County approvals.
8. Secondary access is shown as required with a connection to Imperial Avenue in the existing Lake
Elmo Heights residential neighborhood.
9. Outlots are shown on the Final Plat as required and consistent with the approved Preliminary Plat.
Outlot A will be dedicated to the City for stormwater management (Pond 2 and Pond 3).
Outlot B will be dedicated to the City for stormwater management (Filtration Basin 1SW).
Outlot C will be dedicated to the City for stormwater management (Pond 5).
Outlot D will be dedicated to the City for stormwater management (Filtration Basin 1E).
10. The public streets are proposed as a rural section at 28-ft wide within a 70-ft right-of-way. The
public streets within this subdivision must be constructed consistent with City Standard Detail 804
and City Standard Detail 413.
11. The proposed subdivision improvements are subject to a Stormwater Management Plan (SWMP)
meeting State, Valley Branch Watershed District (VBWD) and City rules. A VBWD permit has been
obtained. Storm water facilities proposed as part of the subdivision to meet State and watershed
permitting requirements must be constructed in accordance with the City Engineering Design
Standards.
12. All wetlands and wetland buffers located on Rural Estate Residential Lots must be protected by
easement. When wetlands are present on private lots, each lot must have a minimum of 1.25
acres of land above the wetland 100-year HWL elevation and free of any drainage easements.
13. The subdivision will be connected to municipal water, including a connection to the existing
watermain along Inwood Avenue and a second connection located at the existing watermain at
Imperial Avenue. A pressure reducing valve will be required at the connection location to Imperial
Avenue. All water system improvements must be constructed in accordance with the City
Engineering Design Standards, and as approved by the City.
14. The proposed development is located outside of the City designated Municipal Urban Service Area
(MUSA) for sanitary sewer service. The subdivision will be served by individual on-site septic
systems to be privately owned by each Lot (SSTS). Individual on-site septic systems are permitted
by Washington County and must contain both a primary and secondary site located on each Lot.
15. Minimum 30-foot easements centered over the watermain pipe/hydrant and storm sewer
pipe/structures is required throughout the subdivision, consistent with the approved Preliminary
Plat and Plans. Easements must be free from all encroachments, including retaining walls, trees,
fences, small/dry utilities, or storm water management BMPs. Dedicated easements must be
shown on all site, grading, utility, and landscape plans. Plan revisions may be required to meet
City design standards and to mitigate all encroachments.
FINAL CONSTRUCTION PLANS & SPECIFICATIONS
1. Final Construction Plans and Specifications must be prepared in accordance with the latest version
of the City Engineering Design Standards Manual dated January 2026, using City standard details,
plan notes and specifications and meeting City Engineering Design Guidelines, unless otherwise
approved by the City.
Page: 3
2. The Final Construction Plans dated June 18, 2026 and Project Manual/Specifications dated June
11, 2026 must be revised in accordance with the construction plan engineering review
memorandum dated July 1, 2026.
3. No construction on the Project, other than mass grading work as authorized by the City under
separate review, approval and Agreement, may begin until the applicant has received City
Engineer approval for the Final Construction Plans; the applicant has obtained and submitted to
the City all applicable permits, easements and permissions needed for the project; and a
preconstruction meeting has been held by the City’s engineering department.
LAKE ELMO FIRE DEPARTMENT – OFFICE OF THE FIRE MARSHAL
Fire Prevention, Code Enforcement, and Public Education
March 24, 2026
Sophia Jensen, Planner
City of Lake Elmo
Re: Highpointe Crossing
Prepared by: Anthony Svoboda, Fire Marshal
Applicable Codes:
• 2020 Minnesota State Fire Code
• 2020 Minnesota State Building Code
• Lake Elmo Fire Department Fire Code Policies
• NFPA 13, 2016 edition
• NFPA 13D, 2016 edition
Fire Department Comments:
1) All roads and drive lanes shall meet the Lake Elmo Fire Department requirements for widths and turning
radiuses.
2) Approved fire apparatus roads shall be provided and maintained in coordination with engineering, public works,
planning, and fire departments. In accordance with MSFC D104.2, two fire apparatus access roads shall be
required and always maintained.
3) Project construction phasing shall always accommodate emergency access to the entire construction zone,
generally meaning two separate means of entrance/exit as defined in the code. Phasing plan to be approved by
the fire department prior to construction.
4) An approved signage and marking plan shall be determined for all No Parking and Fire Lane access roads. On-
street parking shall be provided in approved locations following review by Engineering and Public Works. Parking
shall be prohibited on both sides of private driving lanes.
5) Street names and addressing shall be consistent with the Washington County Uniform Street Naming and
Property Numbering System.
6) Fire hydrants and watermains shall be provided in approved locations following review by Engineering and
Public Works.
7) Building address numbers shall be plainly visible from the street fronting the property and shall be contrasting
color from the background. Size and placement of address numbers shall be approved by the fire and planning
departments.
LAKE ELMO FIRE DEPARTMENT – OFFICE OF THE FIRE MARSHAL
Fire Prevention, Code Enforcement, and Public Education
“Proudly Serving Neighbors and Friends”
8) All gates, whether manual or electric, shall be accompanied by either a KNOX lock or KNOX gate control switch
for rapid access.
9) All parking areas shall be capable of supporting the imposed load of fire apparatus weighing up to 75,000
pounds.
Questions, clarifications, or the request to provide code documents can be made using the contact information listed
below.
Respectfully,
Memorandum
800 Washington Avenue North, Suite 207
Minneapolis, MN 55401
June 30, 2026
TO : SOPHIA JENSEN
FROM: SARAH EVENSON, PLA
RE: CITY OF LAKE ELMO LANDSCAPE AND TREE PRESERVATION PLAN REVIEW:
HIGHPOINTE CROSSING
SUBMITTALS
1. Rachel Development Sketch Plan dated 9/21/23 and Landscape Theming Concept dated 9/18/23.
Both received 9/25/23.
2. Preliminary Plat/PUD Submittal dated 6/7/2024.
3. Preliminary Plat Submittal dated 2/26/2026.
4. Revised Submittal addressing City and Watershed Comments dated 4/8/2026
5. Final Plat Submittal dated 6/11/2026.
REVIEW HISTORY
Initial sketch plan review on September 29, 2023.
Preliminary Plat / PUD review on June 26, 2024.
Preliminary Plat review on March 31, 2026.
Review of revised landscape plan on 4/24/2026.
Review of Final Plat submittal on 6/30/2026.
LOCATION: PID# 2102921320001 The North ½ of the SW ¼, Section 21, Township 29, Range 21,
Washington County Except all that part of the North 75.00 feet of the East 150.00 feet of the North ½ of
the SW ¼ of Section 21, Township 29 North, Range 21 West, Washington County, MN. Address: 2298
Inwood Ave. N., Lake Elmo MN 55042
CURRENT LAND USE CATEGORY: Rural Residential (RR). Proposed zoning: Residential Estate (RE)
ADJACENT AND SURROUNDING LAND USE: RE- Residential Estate to the North and South,
PF—Public Facilities to the East, City of Oakdale R4—Middle Density to the West (south) and R2-Low
Density to the West (north).
SPECIAL LANDSCAPE PROVISIONS: Proposed variance for flexibility to total landscaping
requirements recommended by Planning Commission, pending City Council approval at 5/5 meeting.
June 30, 2026
Highpointe Crossing
Memorandum 2
TREE PRESERVATION PLAN: 105. 12. 470
» The tree preservation plan meets code and may be approved.
LANDSCAPE PLAN: 105.12.480
» A variance for flexibility in meeting landscape requirements was approved by City Council at their 5/5/26
meeting. The proposed 119 trees plus three builder-planted trees per lot are acceptable.
» Landscape plans have been submitted that require the following adjustments prior to approval:
- Provide a plan sheet that illustrates seeding, sodding, and ground cover materials across all disturbed
portions of the site. I could not locate a sheet showing ground cover restoration within this submittal.
RECOMMENDATION:
The landscape plan does not yet meet criteria for approval. Prepare and resubmit landscape plans as outlined
in this memo for future review.
Sarah Evenson, PLA (MN)
City of Lake Elmo Municipal Landscape Architect
P: (262) 391-7653
E: Sarah@hkgi.com
STAFF REPORT
DATE: July 7, 2026
REGULAR
TO: Mayor and Councilmembers
FROM: Nathan Fuerst, Consulting Planner
REVIEWED BY: Jason Stopa, Community Development Director
Sarah Sonsalla, City Attorney
Jack Griffin, Sr. Municipal Engineering Manager
AGENDA ITEM: Highpointe Crossing Development Agreement
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance
☒ Managed Growth
☐ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
On July 7, 2026, the Lake Elmo City Council approved the final plat for Highpointe Crossing. An executed
developer’s agreement is a condition of final plat approval and is required prior to recording the final plat with
Washington County.
ISSUE BEFORE COUNCIL:
Should the City Council approve the Development Agreement for Highpointe Crossing?
PROPOSAL DETAILS/ANALYSIS:
A condition of approval of the Highpointe Crossing final plat is that the developer, Rachel Development, enter
into a Developer’s Agreement prior to release of the final plat for recording at Washington County. The key
aspects of the agreement include the following components:
• That all public improvements to be completed by October 31, 2027.
• That the Developer provide a letter of credit in the amount to be determined once all construction costs
are reviewed related to the cost of the proposed improvements.
• Parkland Dedication and other City fees and escrows be paid to the City prior to work beginning on site.
• That the Developer deed stormwater pond outlots to the City for maintenance.
Upon execution of this Agreement, receipt of all fees and securities, receipt of final plan approval, submittal of
other required information of documentation, recording of the final plat, and completion of a Preconstruction
meeting with the City, construction can commence.
FISCAL IMPACT:
The future financial impacts include maintenance of public infrastructure and other public financial
responsibilities typically associated with a new development. The City will collect any necessary building permit
fees including utility connection charges at the time of building permit application for the individual lots.
OPTIONS:
The City Council is being asked to consider the approval of the developer’s agreement and has the following
options:
1. Adopt Resolution 2026-049 approving the developer agreement for Highpointe Crossing; or
2. Direct Staff to amend the draft developer agreement to bring back to a future City Council meeting.
RECOMMENDATION:
Staff recommends the City Council approve this item adopting Resolution 2026-049 with the following example
motion:
“Move to adopt Resolution 2026-049 approving the developer’s agreement for
Highpointe Crossing”
ATTACHMENTS:
• Resolution 2026-049
• Highpointe Crossing Development Agreement
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CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2026-049
A RESOLUTION APPROVING THE DEVELOPMENT AGREEMENT FOR HIGHPOINTE
CROSSING
WHEREAS, the City of Lake Elmo (the “City”) is a municipal corporation organized and
existing under the laws of the State of Minnesota; and
WHEREAS, Rachel Development, Inc., a Minnesota corporation (the “Applicant”)
submitted an application to the City for the Highpointe Crossing final plat; and
WHEREAS, the Lake Elmo City Council adopted Resolution No. 2026-048 on July 7,
2026 approving the final plat for Highpointe Crossing (the “Resolution”); and
WHEREAS, the conditions of approval of the final plat in the Resolution included a
requirement that the Applicant enter into a development agreement acceptable to the City Attorney
and approved by the City Council that delineates who is responsible for the design, construction,
and payment of the required improvements with financial guarantees therefore; and
NOW, THEREFORE, the City Council of the City of Lake Elmo hereby:
1. Approves the Development Agreement for Highpointe Crossing and authorizes the
Mayor and City Clerk to execute it. The City Attorney is authorized to insert or modify
improvement costs and Exhibits of the Development Agreement as needed.
Passed and duly adopted this 7th day of July, 2026 by the City Council of the City of Lake Elmo,
Minnesota.
__________________________________
Charles Cadenhead, Mayor
ATTEST:
________________________________
Julie Johnson, City Clerk
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(reserved for recording information)
DEVELOPMENT AGREEMENT
(Public water)
Highpointe Crossing
THIS DEVELOPMENT AGREEMENT is dated ______________, 2____, by and between the
CITY OF LAKE ELMO, a Minnesota municipal corporation (the “City”) and Rachel Development,
Inc., a Minnesota corporation (the “Developer”).
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a
plat for Highpointe Crossing (referred to in this Agreement as the “Subdivision”). The property
being platted is situated in the County of Washington, State of Minnesota, and is legally described
on Exhibit A (the “Property”).
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the Subdivision on
condition that the Developer enter into this Agreement, furnish the security required by it, and
record the plat with the County Recorder or Registrar of Titles no later than 180 days after the
City Council approves the plat.
3. RIGHT TO PROCEED. This Agreement is intended to regulate the development of the
Property and the construction therein of certain public and private improvements. Unless
separate written approval has been granted by the City, within the plat or land to be platted, the
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Developer may not grade or otherwise disturb the earth, remove trees, or construct public or
private improvements or any buildings within the Subdivision until all the following conditions
precedent have been satisfied:
A. this Agreement has been executed by the Developer and the City;
B. the Developer has prepared warranty deeds conveying fee title of Outlots A, B, C, and D
to the City and provided copies of the executed deeds to the City for recording with
Washington County;
C. All public trails shall be located within outlots that are at least 30 feet in width and deeded
to the City by warranty deed;
D. the Developer has executed and recorded with Washington County all drainage and
utility easements required for the Subdivision by the City Engineer and Public Works
Director in the City’s standard form or the easements have been dedicated to the City on
the plat;
E. final plat, PUD, construction plans and specifications, and final landscape plans have
been revised to comply with any conditions of approval and submitted by the Developer
and approved by the City;
F. the PUD ordinance has been adopted and published prior to recording the final plat;
G. All issues set forth in the City Attorney’s plat opinion letter dated June 18, 2026 must be
addressed to the satisfaction of the City;
H. all homeowners’ association declarations, covenants, and restrictions have been
submitted for review and approval by the City Attorney. Said declarations, covenants,
and restrictions shall be in compliance with the conditions set forth in City Council
Resolution No. 2026-048. Where there are inconsistencies between this Development
Agreement and City Council Resolution No. 2026-048, the terms and conditions of this
Development Agreement shall control; and
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I. the required Security (as hereinafter defined) has been received by the City from or on
behalf of the Developer;
J. the Developer has paid the City for all legal, engineering, and administrative expenses
incurred by the City regarding the City approvals and has given the City the additional
City Engineering Administration Escrow required by this Agreement;
K. The Developer has entered into a Landscape License Agreement with the City in the
City’s standard form that clarifies the individuals or entities responsible for maintenance
of any landscaping installed in areas outside of land dedicated as public park and open
space on the final plat. Final construction plans and specifications and final landscape
plans must have been submitted by the Developer and approved by the City Engineer,
Fire Chief, and the City’s Landscape Architect;
L. If applicable, the Developer shall provide the City with a copy of all temporary
construction and permanent easements from adjacent or nearby properties, necessary
to construct the Subdivision Improvements, including all off-site public improvements, off-
site grading work, or storm sewer discharges;
M. a title insurance policy has been issued in the amount of $100,000 in favor of the City
insuring Outlots A, B, C and D, and the City’s easement interests as they appear on the
plat;
N. the Developer has provided the City with a certificate of insurance required by this
Agreement;
O. the Developer has paid any outstanding assessments and taxes for the Subdivision
property;
P. the Developer has escrowed money with the City in amount sufficient to pay the
estimated property taxes attributable to Outlots A, B, C, and D for 2026 if the City does
not take ownership of the outlots before July 1, 2026.
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Q. the Developer has fulfilled any park dedication requirements as specified under this
Agreement;
R. the Developer has received all necessary permits from the MPCA, MDH, DNR, MnDOT,
the applicable watershed, Washington County, and any other agency having jurisdiction
over the Subdivision;
S. the Developer has entered into an easement encroachment agreement regarding the
power line corridor and the City has reviewed and approved the terms of the agreement;
T. the Developer has installed tree protection fencing or additional measures per approved
Tree Preservation Plan and the City has inspected and approved the protections;
U. the Developer or the Developer’s engineer and the Developer’s contractor(s) have
initiated and attended a preconstruction meeting with the City Engineer and City staff;
V. the final plat has been recorded with Washington County; and
W. the City has issued a written notice that all above conditions have been satisfied and that
the Developer may proceed.
4. PRELIMINARY PLAT STATUS. If the Subdivision is a phase of a multi-phased
preliminary plat, the preliminary plat approval for all phases not final platted shall lapse and be
void unless final platted into lots and blocks, not outlots, within five (5) years after preliminary plat
approval.
5. CHANGES IN OFFICIAL CONTROLS. For five (5) years from the date of this
Agreement, no amendments to the City's Comprehensive Plan or official controls shall apply to
or affect the use, development density, lot size, lot layout, or dedications of the approved final plat
unless required by state or federal law or agreed to in writing by the City and the Developer.
Thereafter, notwithstanding anything in this Agreement to the contrary, to the full extent permitted
by state law, the City may require compliance with any changes to the City's Comprehensive Plan,
official controls, platting, or dedication requirements enacted after the date of this Agreement.
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6. DEVELOPMENT PLANS. The Developer agrees to develop the Property in
accordance with the City approvals, including the terms and conditions of approval of the final plat
as detailed in City Council Resolution No. 2026-048, and to construct all improvements in
accordance with the approved construction plans and specifications (collectively, the “Plans”)
prepared by a professional engineer registered in the State of Minnesota at its sole expense. All
terms and conditions of the City approvals are hereby incorporated by reference into this
Agreement. The Plans may not be modified by the Developer without the prior written approval
of the City.
7. IMPROVEMENTS. In developing the Subdivision in accordance with the Plans, the
Developer shall make or install at its sole expense the following public and private improvements
(collectively, the “Subdivision Improvements”):
A. Grading and erosion control;
B. Water system improvements;
C. Stormwater improvements (storm sewer pipe, control structures, ponds, BMPs,
etc.);
D. Streets;
E. Underground private utilities;
F. Builder landscape improvements
G. Subdivision landscape improvements;
H. Street lighting and signage;
I. Intersection improvements (turn lanes, by-pass lanes, traffic control, etc.);
J. Tree preservation and reforestation;
K. Wetland mitigation and buffers; and
L. Monuments required by Minnesota Statutes.
All improvements shall be installed in accordance with the approved Plans, the City
approvals, the City Code, the City’s Engineering Design and Construction Standards Manual, the
City’s Landscape Standards, and Stormwater Reuse Irrigation Design Standards. The Developer
shall instruct its engineer to provide adequate field inspection personnel to assure an acceptable
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level of quality control to the extent that the Developer's engineer will be able to certify that the
construction work meets the approved Plans, the City approvals, the City Code, and all applicable
City design standards as a condition of City acceptance. In addition, the City may, at the City's
discretion and at the Developer's expense, have one or more City inspectors or a soil engineer
inspect the Developer’s work on a full or part-time basis. The Developer's engineer shall provide
for on-site project management. The Developer's engineer is responsible for design changes and
contract administration between the Developer and the Developer's contractor.
8. CITY ADMINISTRATION AND CONSTRUCTION OBSERVATION.
Prior to the execution of this Agreement, the Developer shall submit to the City an amount
to be escrowed by the City for costs incurred by the City for administration and construction
observation costs in an amount provided under paragraph 34 of this Agreement - Summary of
Cash Requirements. Thereafter, the Developer shall reimburse the City each month, within thirty
(30) days of receiving an invoice, for all administration and construction observation costs incurred
by the City during the construction of the Subdivision Improvements by the City’s engineering,
public works, planning, and landscape architecture staff and consultants. If the Developer has
not paid the invoices after thirty (30) days of the invoice date, the City may draw upon the escrow
and stop the work on site until the escrow has been replenished in its full amount. City
administration and oversight will include monitoring of construction progress and construction
observation, consultation with the Developer and the Developer’s professionals on status or
problems regarding the project, coordination for testing, final inspection and acceptance, project
monitoring during the warranty period, and processing of requests for reduction in the Security.
Construction observation shall include, at the discretion of the City, part or full time inspection of
proposed public improvements. Services will be billed on an hourly basis.
The direction and review provided by the City through the inspection of the Subdivision
Improvements should not be considered a substitute for the Developer-required management of
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the construction of the Subdivision Improvements. The Developer must require the Developer’s
contractor(s) to furnish the City with a schedule of proposed operations at least five (5) days prior
to the commencement of construction of each type of Subdivision Improvement. The City shall
inspect all Developer-installed Subdivision Improvements during and after construction for
compliance with the Plans, the City approvals, the City Code, and the applicable City Standards.
The Developer will notify the City at such times during construction as the City requires for
inspection purposes. Such inspection is pursuant to the City’s governmental authority, and no
agency or joint venture relationship between the City and the Developer is thereby created.
9. CONTRACTORS/SUBCONTRACTORS. City Council members, City employees,
and City Planning Commission members, and corporations, partnerships, and other entities in
which such individuals have greater than a 25 percent ownership interest or in which they are an
officer or director may not act as contractors or subcontractors for the Subdivision Improvements
identified in Paragraph 7 above.
10. TIME OF PERFORMANCE. The Developer shall install all required Subdivision
Improvements by October 31, 2027, with the exception of the final wear course of asphalt on
streets. The Developer shall install the bituminous wearing course of streets after the first course
has weathered a winter season, consistent with warranty requirements, however, final acceptance
of the Subdivision Improvements by the City will not be granted until all work is completed,
including the final wear course. The Developer may, however, request an extension of time from
the City. If the City grants an extension, it shall be conditioned upon updating the Security posted
by the Developer to reflect cost increases and amending this Agreement if necessary to reflect
the extended completion date. Final wear course placement outside of this time frame must have
the written approval of the City Engineer.
11. MAINTENANCE DURING CONSTRUCTION. The Developer shall be responsible for
all maintenance of the Subdivision Improvements including the snow plowing of the streets, roads,
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alleys, and sidewalks abutting lots not yet sold or transferred, until the Subdivision Improvements
are accepted by the City in writing. The Developer and its contractors must adhere to the City’s
weight restrictions for all streets both inside and outside of the Subdivision, regardless of whether
said streets are included in the City’s map of streets with weight restrictions and regardless of
whether said streets are fully constructed. The Developer also is responsible to locate all
underground utilities until the Subdivision is accepted in writing by the City. Warning signs shall
be placed by the Developer when hazards develop in streets to prevent the public from traveling
on same and to direct attention to detours. If and when streets become impassable, such streets
shall be barricaded and closed by the Developer. In the event residences are occupied prior to
completing streets, the Developer shall maintain a smooth surface and provide proper surface
drainage to ensure that the streets are passable for traffic and emergency vehicles. The
Developer shall be responsible for keeping streets within and without the Subdivision clean and
clear of dirt and debris that may spill, track, or wash onto the street from the Developer’s
operations. The Developer shall contract for street cleaning for streets within and immediately
adjacent to the Subdivision. At a minimum, scraping and sweeping shall take place on a weekly
basis and on a daily basis during heavy tracking days.
Prior to the City’s acceptance of the streets, the City may agree, at the City’s sole
discretion, to keep the streets open during winter months by plowing snow. The City will consider
snow plowing streets on a case by case basis: 1) the Developer must request in writing the streets
it is requesting to be plowed by the City; 2) there must be residences along the street; 3) for
streets that do not have the bituminous wear course placed, the Developer must install paved
wedges along all curb lines and catch basins of the street; 4) gate valves and manholes must be
level with the pavement surface; 5) street curves, center medians, and other protrusions in the
rights-of-way must be delineated with “HI-VIS” fiberglass stakes; 6) a site review must be
scheduled by the Developer and conducted with the City’s Public Works Department with the
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Developer in attendance to review the streets that are being requested to be plowed prior to the
commitment of plowing by the City; 7) the Developer must agree not to hold the City responsible
for any damage caused by snow plowing operations to the streets, curb and gutter, manholes,
catch basins or other infrastructure; and 8) the Developer shall enter into an agreement with the
City for plowing of the streets.
12. LICENSE. The Developer hereby grants the City, its agents, employees, officers, and
contractors a license to enter the Property to perform all work and inspections deemed
appropriate by the City in conjunction with the development of the Property and this Agreement.
13. CONSTRUCTION ACCESS. Construction traffic access and egress for all building and
Subdivision Improvements is restricted to access the Subdivision via Inwood Avenue N. at the
approved designated rock construction entrance per the approved erosion control plans. All
construction parking and staging, including the loading and unloading of equipment and supplies
during the construction of the Subdivision Improvements must be completed interior to the
Subdivision and are not allowed to occur on any adjacent public street or public right-of-way,
including, but not limited to Inwood Ave. N. and the portion of Imperial Ave. N located in the Lake
Elmo Heights subdivision. The Developer and its contractors shall be responsible for the repair and
restoration of any damage to any street, curb, trail, sidewalk, and boulevard caused by the
construction activities. All such repairs shall by inspected by the City and meet all City standards
and specifications.
The Developer must maintain adequate access for emergency vehicles that is acceptable
to the City in its sole discretion at all times during construction.
14. CONSTRUCTION SEQUENCE AND COMPLIANCE. The City will require the
Developer to construct the Subdivision Improvements in a sequence which will allow progress
and compliance points to be measured and evaluated. The Developer and the Developer’s
representatives are required to supervise and coordinate all construction activities for all
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Subdivision Improvements and must notify the City in writing stating when the work is ready for
the inspection at each of the measurable points defined in the following paragraphs.
15. EROSION CONTROL. All construction regarding the Subdivision Improvements shall
be completed in a manner designed to control erosion and in compliance with the approved plans
and specifications for the construction, the City Code, the City’s Engineering Design and
Construction Standards Manual, all watershed district permits, the Minnesota Pollution Control
Agency’s best management practices, and other requirements including the City’s permit with the
Minnesota Pollution Control Agency for the municipal separate storm sewer system program.
Before initiating any work on the site, an erosion control plan must be implemented by the
Developer and inspected and approved by the City. Erosion and sediment control measures shall
be coordinated with the various stages of development. The City may impose additional erosion
control requirements at any stage in development as deemed necessary to maintain a compliant
site. All areas disturbed for site improvements must be reseeded by the Developer promptly after
the work in the area is complete unless construction of the next stage of the Subdivision
Improvements will begin in that area within seven (7) days. The parties recognize that time is of
the essence in controlling erosion.
If the Developer does not comply with the erosion control plan and schedule or
supplementary instructions and warnings received from the City, the City may take such action
as it deems appropriate to control erosion. If the Developer does not reimburse the City for any
cost the City incurred for such work within 10 business days, the City may draw down the Security
to pay any costs. No development, utility or street construction will be allowed, and no building
permits will be issued by the City unless the Subdivision is in full compliance with the approved
erosion control plan.
If the City issues building permits before the acceptance of public Subdivision
Improvements, the Developer assumes all responsibility for erosion control compliance
throughout the Subdivision and the City may take such action as allowed by this Agreement
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against the Developer for any noncompliant issue as stated above. Erosion control plans for
individual lots will be required in accordance with the City’s building permit requirements, or as
required by the City or City Engineer.
16. SITE GRADING. In order to construct the Subdivision Improvements and otherwise
prepare the Property for development, it will be necessary for the Developer to grade the
Subdivision. All grading must be done in compliance with this Agreement and the approved
grading plans. Within thirty (30) days after completion of the grading, the Developer shall provide
the City with an “as built” grading plan and a certification prepared by the Developer’s engineer
as required in the City’s Engineering Design and Construction Standards Manual. Within (5) days
after completion of the grading, the Developer shall request an inspection of tree preservation
compliance from the Planning Department. If additional tree plantings are required, the landscape
plan shall be modified and additional replacement trees planted as approved by the City prior to
the warranty period beginning.
17. STREET AND UTILITY IMPROVEMENTS. All Improvements shall be installed in
accordance with the approved Plans, the City approvals, the City Code, and the City’s
Engineering Design and Construction Standards Manual. Once the work is completed, the
Developer or the Developer’s representative shall submit a written request to the City asking for
an inspection of the initial improvements. The City will then schedule a walk- through to create a
punch list of outstanding items to be fully addressed or corrected by the Developer. Upon receipt
of the written punch list provided by the City, the Developer must complete all items on the punch
list and then notify the City to re-inspect the Improvements. The Developer shall install the final
bituminous wear course after the first bituminous course has weathered a winter season. Prior
to placement of the final bituminous wear course, the Developer shall repair or replace all broken
or failing curbs, sidewalks and damaged or settled streets as determined by the City from a pre-
wear course walk through inspection.
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18. LANDSCAPING AND TREE REPLACEMENT IMPROVEMENTS.
A. Prior to installation of landscaping, the Developer shall notify the Planning
Department and a pre-construction meeting shall be held with the City’s Landscape
Architect to review landscaping requirements, best practices, and inspection
schedules.
B. The Developer agrees to install landscaping in accordance with the approved Plans,
the City approvals, the City Code, the City’s Engineering Design and Construction
Standards Manual, and the City’s Landscape and Irrigation Standards. All
landscaping materials such as trees, shrubs, grasses, or other vegetation installed
by the Developer must be warrantied and maintained for a period of two years, with
the exception of trees planted on lots that have single-family homes, which are not
required to be warrantied. The two-year warranty period for landscaping materials
shall be deemed to start once all required landscaping identified as responsibility of
Developer in the approved Plans for the Subdivision has been field verified and
accepted by the City. The Developer agrees to have the installer of the landscaping
complete an inspection thirty (30) days before the end of the two-year warranty
period and provide the City with a written report identifying the condition of all
landscaping. In the event that any landscaping installed by the Developer is deemed
through this inspection to be in poor condition or dead, the Developer is to replace
the landscaping with like kind materials or as otherwise approved by the City.
C. The Developer shall be responsible for maintaining regular watering, fertilizing, and
over-seeding necessary to establish final lawns and yards as identified in the
approved Plans for outlots, public rights-of-way, and any disturbed areas outside the
Subdivision boundaries according to a landscape maintenance plan approved by the
City. The Developer agrees to achieve “substantial performance” on all seeded or
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sodded lawns and yards disturbed during the construction of Subdivision
Improvements. For the purpose of this Agreement, “substantial performance” shall
be defined for areas seeded or sodded with a turf or lawn mix as “square foot turf
areas with an average blade height of three inches free of eroded, bare, or dead
spots and free from perennial weeds or unwanted grasses with no visible surface
soil.” For areas seeded with a native grass or flower mix “substantial performance,”
shall be defined as “square foot native grass or flower areas with an average height
of eight inches free of eroded, bare, or dead spots and no visible surface soil.”
19. SIGNAGE, STREET LIGHTING AND OTHER UTILITIES. The Developer agrees to
install street signs, traffic and parking signs, and pavement markings within the Subdivision all in
accordance with the approved Plans and the City Engineering Design Standards Manual. Street
and traffic sign details shall be submitted for approval by the City prior to installation. In addition,
the Developer shall be responsible for the cost and all coordination work to extend private utilities
and street lights within the Subdivision all in accordance with the approved plans and right-of-way
permits.
20. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction
required by this Agreement, the Subdivision Improvements lying within public easements shall
become City property. Before acceptance of the public Subdivision Improvements by the City,
the Developer must furnish the City with a complete set of reproducible "record" plans and an
electronic file of the "record" plans in accordance with the City’s Engineering Design and
Construction Standards Manual together with the following affidavits:
- Developer/Developer Engineer’s Certificate
- Land Surveyor’s Certificate
certifying that all construction has been completed in accordance with the terms of this
Agreement. Upon receipt of “record plans” and certificates and upon review and verification by
the City Engineer that the public Subdivision Improvements have been completed in accordance
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with the terms of this Agreement, including all punch list items, the City will accept the completed
public Subdivision Improvements.
21. PARK DEDICATION. The Developer shall pay a cash contribution of $90,000 to satisfy
the City’s park dedication requirements for the Subdivision. The Subdivision park dedication was
calculated as follows: 78.24 gross acres x 5 percent = 3.912 acres. The purchase price of the
property is $23,006.13 per acre.
22. UTILITY CHARGES. The Developer shall be responsible for the payment of all water
availability charges (WAC) with respect to the Subdivision Improvements required by the City and
any state or metropolitan government agency.
The water availability charge (WAC) in the amount of $3,000.00 per REC shall be paid by
the Developer to the City before recording the final plat. The total amount to be paid by the
Developer is $51,000.
In addition, a water connection charge in the amount of $1,000.00 per REC will be payable
by the Developer and collected by the City at the time the City issues a building permit for each
building with the development.
23. STREET LIGHTS. The Developer is responsible for the cost of street light installation
consistent with a street lighting plan approved by the City. Before the City signs the final plat, the
Developer shall post a Security for street light installation consistent with the approved street
lighting plan. The required Security is $40,000 and consists of four (4) decorative lights at $10,000
each. The Developer shall also pay the City $395/light to reimburse the City for the first year
operating costs for the street lights.
24. WETLAND MITIGATION. The Developer shall complete wetland mitigation/restoration
in accordance with the approved Plans and in accordance with any applicable Watershed or
agency permits. If the mitigation work is found to be incomplete or restoration is unsuccessful,
the City may draw down the Security at any time during the warranty period to perform the work
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if the Developer fails to take corrective measures after being provided notice by the City.
25. BUILDING PERMITS/CERTIFICATES OF OCCUPANCY.
A. The City will not issue any building permits for any lot within the Subdivision, or within
a completed phase of the Subdivision in a City preapproved phasing plan, until such
time that water, storm sewer, curbing and one lift of asphalt has been installed and
tested for all public streets; boulevard grading has been completed within the entire
right-of-way (without hold down grading for the future sidewalk or any other
improvements); street and traffic control signs are installed; property monuments
have been installed, grading as-built plans have been submitted and approved by
the City. A “preapproved phasing plan” is defined as a phased construction plan that
has been submitted by the Developer and approved by the City in advance of the
preconstruction meeting for the Subdivision. Once the construction has started, the
City will not consider revisions to the phasing plan for the purpose of issuing building
permits.
B. The City may issue up to a total of Three (3) building permits for a “Model Home” if
authorized by the City Community Development Director before the completion of
the Subdivision Improvements described in paragraph 25 (A) above, however, the
Model Home Lot shall have the following in place before the City will allow
construction of the Model Home to proceed:
1. Adequate safe public access for emergency services and contractors, including
a paved bituminous road to the building pad for the Model Home that is sufficient
to allow construction to proceed;
2. A grading as-built plan approved by the City for the lot identified (the “Model
Home Lot”) to include the Model Home and all downstream drainage facilities;
3. All storm water drainage facilities that include and are downstream from the
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LA515\144\1104319.v2
Model Home Lot are in place, meet the approved project plans, and are verified
by the City; and
4. The Developer shall install adequate parking, and municipal water to the Model
Home Lot.
C. The City will not issue a certificate of occupancy for any Model Home until all
conditions and improvements identified in paragraph 25 (A) above have been
completed and accepted by the City.
D. Before the City issues any building permits, the Developer shall install wetland buffer
monuments in accordance with the City’s zoning ordinance. The monument design
shall be approved by the City Planning Department.
E. Breach of the terms of this Agreement by the Developer, including nonpayment of
billings from the City, shall be grounds for denial of building permits, certificates of
occupancy, and withholding of other permits, inspection or actions and the halting of
all work in the Subdivision.
F. If the City issues building permits before the acceptance of the public Subdivision
Improvements by the City, the Developer assumes all liability and costs resulting in
delays in completion of public Subdivision Improvements and damage to public
Subdivision Improvements caused by the City, the Developer, the Developer’s
contractors, subcontractors, materialmen, employees, agents, or any third parties.
G. No water connection permits may be issued until the streets needed for access have
been paved with a bituminous surface and the utilities are tested and approved by
the City Engineer.
26. RESPONSIBILITY FOR COSTS.
A. In the event that the City receives claims from labor, materialmen, or others that work
required by this Agreement has been performed and the amounts due to them have
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LA515\144\1104319.v2
not been paid, and the laborers, materialmen, or others are seeking payment from
the City, the Developer hereby authorizes the City to commence an Interpleader
action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District
Courts, to draw upon the Security in an amount up to 125 percent of the claim(s) and
deposit the funds in compliance with the Rule, and upon such deposit, the Developer
shall release, discharge, and dismiss the City from any further proceedings as it
pertains to the funds deposited with the District Court, except that the Court shall
retain jurisdiction to determine attorneys' fees pursuant to this Agreement.
B. Except as otherwise specified herein, the Developer shall pay all costs incurred by
it or the City in conjunction with the development of the Subdivision, including but
not limited to legal, planning, engineering, and inspection expenses incurred in
connection with the City’s approval and acceptance of the plat and the Subdivision,
the preparation of this Agreement, the City’s review of construction plans and
documents, and all costs and expenses incurred by the City in monitoring and
inspecting development of the Subdivision. All amounts incurred and due to the City
at the time of the recording of the final plat must be fully paid by the Developer before
the City will execute and release the final plat for recording.
C. The Developer shall hold the City and its officials, employees, and agents harmless
from claims made by itself and third parties for damages sustained or costs incurred
resulting from the City’s approval of the plat and the development of the Subdivision.
The Developer shall indemnify and defend the City and its officials, employees, and
agents for all costs, damages, or expenses which the City may pay or incur in
consequence of such claims, including attorneys' fees.
D. The Developer shall reimburse the City for costs incurred in the enforcement of this
Agreement, including reasonable engineering and attorneys' fees.
E. The Developer shall pay, or cause to be paid when due, and in any event before any
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penalty is attached, all special assessments referred to in this Agreement. This is a
personal obligation of the Developer and shall continue in full force and effect even
if the Developer sells one or more lots, the entire Property, or any portion of it.
F. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Agreement within thirty (30) days after receipt. Bills not paid
within thirty (30) days will be assessed a late fee per the City adopted fee schedule.
Upon request, request, the City will provide copies of detailed invoices of the work
performed by the City and its consultants.
27. MISCELLANEOUS.
A. The Developer must obtain a sign permit from the City Building Official before the
installation of any subdivision identification signs.
B. Prior to the construction of any subdivision identification signs or neighborhood
markers within the development, the Developer shall submit sign plans for review
and obtain a sign permit from the City. Any amendments to the finding regarding
signs indicated in the City Council Resolution shall be subject to a PUD amendment
or variance.
C. The Developer may not assign this Agreement without the written permission of the
City Council. The Developer's obligations hereunder shall continue in full force and
effect even if the Developer sells one or more lots, the entire Property, or any portion
of it.
D. Retaining walls that require a building permit shall be constructed in accordance with
plans and specifications prepared by a professional engineer licensed by the State
of Minnesota. Following construction, a certification signed by the design engineer
shall be filed with the City evidencing that the retaining wall was constructed in
accordance with the approved Plans. All retaining walls identified on the Plans or
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by special conditions referred to in this Agreement shall be constructed before any
other building permit is issued for a lot on which a retaining wall is required to be
built.
E. The Developer shall take out and maintain or cause to be taken out and maintained
until six months after the City has accepted the public Subdivision Improvements: 1)
commercial general liability insurance (CGL) covering bodily injury and property
damage; 2) automobile liability insurance (coverage must apply to owned autos, non-
owned autos, and hired autos); 3) workers’ compensation insurance as required by
state statute; and 4) employer’s liability insurance.
Limits for the commercial general liability insurance policy shall be not less than
$2,000,000 for each occurrence. The City shall be named as an additional insured
on the commercial general liability insurance policy, and the Developer shall file with
the City a certificate of insurance evidencing coverage prior to the City signing this
Agreement. The certificate shall provide that the City must be given thirty (30) days’
advance written notice of the cancellation of the insurance.
F. Third parties shall have no recourse against the City under this Agreement.
G. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Agreement is for any reason held invalid, such decision shall not affect the validity
of the remaining portion of this Agreement.
H. The action or inaction of the City shall not constitute a waiver or amendment to the
provisions of this Agreement. To be binding, amendments or waivers shall be in
writing, signed by the parties and approved by written resolution of the City Council.
The City's failure to promptly take legal action to enforce this Agreement shall not be
a waiver or release.
I. This Agreement shall run with the land and will be recorded against the title to the
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Property at the Developer’s expense. The Developer covenants with the City, its
successors and assigns, that the Developer has fee title to the Property being final
platted and has obtained consents to this Agreement, in the form attached hereto,
from all parties who have an interest in the Property, including, but not limited to, the
fee owner and the mortgagees; that there are no unrecorded interests in the Property
being final platted; and that the Developer will indemnify, defend, and hold the City
harmless for any breach of the foregoing covenants.
J. Each right, power or remedy herein conferred upon the City is cumulative and in
addition to every other right, power or remedy, express or implied, now or hereafter
arising, available to City, at law or in equity, or under any other agreement, and each
and every right, power and remedy herein set forth or otherwise so existing may be
exercised from time to time as often and in such order as may be deemed expedient
by the City and shall not be a waiver of the right to exercise at any time thereafter
any other right, power or remedy.
K. The Developer represents to the City that the Subdivision and the Subdivision
Improvements comply or will comply with all City, County, metropolitan, state, and
federal laws and regulations, including but not limited to: subdivision ordinances,
zoning ordinances, and environmental regulations. If the City determines that the
Subdivision is not in compliance, the City may, at its option, refuse to allow
construction or development work in the Subdivision until it is brought into
compliance. Upon the City’s demand, the Developer shall cease work until there is
compliance.
28. EVENTS OF DEFAULT. The following shall be "Events of Default" under this
Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement,
any one or more of the following events:
A. Subject to unavoidable delays, failure by the Developer to commence and complete
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construction of the public Subdivision Improvements pursuant to the terms,
conditions, and limitations of this Agreement.
B. Failure by the Developer to substantially observe or perform any material covenant,
condition, obligation, or agreement on its part to be observed or performed under
this Agreement.
29. REMEDIES ON DEFAULT. Whenever any Event of Default occurs, the City, subject
to any rights of third parties agreed to by the City pursuant to this Agreement, or otherwise by
written, executed instrument of the City, may take any one or more of the following:
A. The City may suspend its performance under the Agreement until it receives
assurances from the Developer, deemed adequate by the City, that Developer will
cure its default and continue its performance under the Agreement. Suspension of
performance includes the right of the City to withhold permits including, but not
limited to, building permits.
B. The City may initiate such action, including legal or administrative action, as is
necessary for the City to secure performance of any provision of this Agreement or
recover any amounts due under this Agreement from the Developer, or immediately
draw on the Security, as set forth in this Agreement.
30. ENFORCEMENT BY CITY; DAMAGES. The Developer acknowledges the right of
the City to enforce the terms of this Agreement against the Developer, by action for specific
performance or damages, or both, or by any other legally authorized means. In the event of a
default by the Developer as to construction or repair of any of the Subdivision Improvements or
any other work or undertaking required by this Agreement, the City may, at its option, perform the
work and the Developer shall promptly reimburse the City for any expense incurred by the City.
This Agreement is a license for the City to act, and it shall not be necessary for the City to seek
an order from any court for permission to enter the Subdivision for such purposes. If the City
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does such work, the City may, in addition to its other remedies, levy special assessments against
the land within the Subdivision to recover the costs thereof. For this purpose, the Developer, for
itself and its successors and assigns, expressly waives any and all procedural and substantive
objections to the special assessments, including, but not limited to, hearing requirements, and
any claim that the assessments exceed the benefit to the land so assessed. The Developer, for
itself and its successors and assigns, also waives any appeal rights otherwise available pursuant
to Minnesota Statutes Section 429.081.
The Developer also acknowledges that its failure to perform any or all of the Developer’s
obligations under this Agreement may result in substantial damages to the City; that in the event
of default by the Developer, the City may commence legal action to recover all damages, losses
and expenses sustained by the City; and that such expenses may include, but are not limited to,
the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement.
31. WARRANTY. During the warranty period, the Developer warrants that all Subdivision
Improvements will be free from defects and that they will continue to meet all technical
specifications and standards. During the warranty period, the Developer agrees to repair or
replace any Subdivision Improvement, or any portion or element thereof, which shows signs of
failure, normal wear and tear excepted. If the Developer fails to repair or replace a defective
Subdivision Improvement during the warranty period, the City may repair or replace the defective
portion and may use the Security to reimburse itself for such costs. The Developer agrees to
reimburse the City fully for the cost of all Subdivision Improvement repair or replacement if the
cost thereof exceeds the remaining amount of the Security. Such reimbursement must be made
within forty-five (45) days of the date upon which the City notifies the Developer of the cost due
under this paragraph. The Developer hereby agrees to permit the City to specially assess any
unreimbursed costs against any lots in the Subdivision which have not been sold to home buyers
if the Developer fails to make required payments to the City. The Developer, on behalf of itself
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LA515\144\1104319.v2
and its successors and assigns, acknowledges the benefit to the lots within the Subdivision of the
repair or replacement of the Subdivision Improvements and hereby consents to such assessment
and waives the right to a hearing or notice of hearing or any appeal thereon under Minnesota
Statutes, Chapter 429.
A. The required warranty period for all work relating to the public water shall be two (2)
years from the date of final written City acceptance of the work.
B. The required warranty period for all work relating to street construction, including
concrete curb and gutter, sidewalks and trails, materials and equipment shall be
subject to one (1) year from the date of final written acceptance of the work.
C. The required warranty period for sod, trees, and landscaping is two (2) years from
the date of final written City acceptance of the installation as provided by LEC
105.12.480(i).
32. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the
terms of this Agreement, payment of special assessments, payment of the costs of all public
Subdivision Improvements, and construction of all public Subdivision Improvements, the
Developer shall furnish the City with an irrevocable letter of credit or a cash escrow or a
combination of a cash escrow and letter of credit (the “Security") in the amount of $_________ or
$___________ with a separately executed grading agreement. The bank originating the letter of
credit shall be determined by the City to be solvent and creditworthy. The letter of credit shall
substantially be in the form attached to this Agreement and must be approved by the City. The
amount of the Security was calculated as itemized on Exhibit B. If at any time the City reasonably
determines that the bank issuing the letter of credit no longer satisfies the City’s requirements
regarding solvency and creditworthiness, the City shall notify the Developer, and the Developer
shall provide to the City within forty-five (45) days a substitute for the letter of credit from another
bank meeting the City’s requirements. If the Developer fails to provide the City within forty-five
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(45) days with a substitute letter of credit from an issuing bank satisfactory to the City, the City
may draw under the existing letter of credit.
This breakdown is for historical reference; it is not a restriction on the use of the Security.
The City may draw down the Security, without notice, for any violation of the terms of this
Agreement or if the Security is allowed to lapse prior to the end of the required term. If the required
public Subdivision Improvements are not completed at least thirty (30) days prior to the expiration
of the Security, the City may also draw it down. If the Security is drawn down, the proceeds shall
be used by the City to cure the default.
33. REDUCTION OF SECURITY. Upon written request by the Developer and upon receipt
of proof satisfactory to the City Engineer that work has been completed in accordance with the
approved Plans and the terms of this Agreement and that all financial obligations to the City have
been satisfied, the City Engineer may approve reductions in the Security in the following
instances:
A. Upon completion of grading operations, including temporary site restoration. If the
Developer has not entered into a separate grading agreement with the City which
contains terms for the release of a grading security, the Developer must submit an as-
built grading survey to the City that at a minimum establishes the as-built grades at all lot
corners and downstream drainage conveyance systems and storm water ponds. Upon
inspection of the site and approval of the as-built survey by the City, the City may release
100 percent, or $550,323, of the Security associated with subdivision grading. This
Security reduction does not include amounts related to erosion and sedimentation
control.
B. Up to 75 percent of the Security associated with the itemization on Exhibit B may be
released upon completion of the following key milestones of the project as determined
by the City Engineer:
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1. Construction Categories 2 and 3: The amount of $326,536 may be released
when all watermain utilities have been installed, all testing has been
successfully completed, and the utilities are considered ready for use by the
City Engineer.
2. Construction Categories 4 and 5: The amount of $877,934 may be released
when all streets and storm sewer have been installed, televised and tested,
and have been found to be complete to the satisfaction of the City Engineer
including all corrective work for any identified punch list items and including
verification of storm sewer as-built inverts, but not including the final wear
course.
3. Construction Categories 6--10 and 15--18: The amount of $478,384 may be
released when the public Subdivision Improvements are accepted by the City
Engineer and the City Council, including all improvements in categories 6-10
and 15-18: (1) bituminous wear course; (2) bio retention and infiltration
facilities; (3) street lighting; (4) street and traffic signs; (5) all private utilities;
(6) iron monuments for lot corners have been installed; (7) turf is established
and all erosion and sedimentation control has been removed; (8) turn lanes
and off-site public improvements; (9) the required "record" plans in the form of
the City standards have been received and approved by the City; (10) all
financial obligations to the City have been satisfied.
4. Construction Category 11: The amount of $____________________may be
released when all Builder Landscaping Subdivision Improvements have been
installed to the satisfaction of the City including all corrective work for any
identified punch list items.
5. Construction Categories 12, 13 and 14: The amount of $________________
may be released when Developer Landscaping Subdivision Improvements,
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Tree Preservation and Restoration work, and Wetland Mitigation and Buffers
have been completed and installed to the satisfaction of the City including all
corrective work for any identified punch list items.
C. Twenty-five percent of the original Security amount for the watermain utilities shall
be retained until: (1) all watermain utilities have been fully completed and accepted
by the City, including all corrective work and warranty punch list items; (2) all
financial obligations to the City have been satisfied; and (3) the warranty period
has expired.
D. Twenty-five percent of the original Security amount for Construction Categories 4-
10 and 15-18 shall be retained until: (1) all Subdivision Improvements have been
fully completed and accepted by the City, including all corrective work and warranty
punch list items; (2) all financial obligations to the City have been satisfied; and (3)
the warranty period has expired.
E. Twenty-five percent of the original Security amount associated with builder
landscaping shall be retained by the City until: (1) all landscaping Subdivision
Improvements have been fully completed and accepted by the City, including all
corrective work and warranty punch list items being completed by the Developer;
(2) all financial obligations to the City have been satisfied; and (3) the warranty
period has expired.
F. Twenty-five percent of the original Security amount associated with Subdivision
landscaping shall be retained by the City until: (1) all landscaping Subdivision
Improvements have been fully completed and accepted by the City, including all
corrective work and warranty punch list items being completed by the Developer;
(2) all financial obligations to the City have been satisfied; and (3) the warranty
period has expired.
G. In addition to the above project milestone based Security reductions, the
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Developer may submit a written request and upon receipt of proof satisfactory to
the City Engineer that work is progressing in accordance with the approved Plans
and the terms of this Agreement and that all financial obligations to the City have
been satisfied, the City Engineer may approve a one-time reduction in the Security
for Construction Categories 2-5 in an amount not to exceed 50 percent of the initial
Security amount. This one-time Security reduction does not apply to Categories 4-
5 if boulevard sidewalks or trails have not been installed.
34. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Agreement that must be paid to the City before recording the final plat:
Water Availability Charge (WAC): $51,000
Park Dedication: $90,000
Street Light Operating Fee: $1580
City Engineering Administration Escrow: $50,000
TOTAL CASH REQUIREMENTS: $192,580
35. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail
at the following address: __________________________ and emailed to Developer at the
Developer’s email address [Developer email Address]. Notices to the City shall be in writing and
shall be either hand delivered to the City Administrator or mailed to the City by certified mail in
care of the City Administrator at the following address: Lake Elmo City Hall, 3880 Laverne Avenue
N., Lake Elmo, Minnesota 55042.
36. EVIDENCE OF TITLE. The Developer shall furnish the City with evidence of fee
ownership of the property being platted by way of a title insurance policy dated not earlier than 30
days prior to the execution of the plat.
37. COMPLIANCE WITH LAWS. The Developer agrees to comply with all laws,
ordinances, regulations, and directives of the state of Minnesota and the City applicable to the
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Subdivision. This Agreement shall be construed according to the laws of the Minnesota.
38. SEVERABILITY. In the event that any provision of this Agreement shall be held invalid,
illegal, or unenforceable by any court of competent jurisdiction, such holding shall pertain only to
such section and shall not invalidate or render unenforceable any other provision of this
Agreement.
39. NON-WAIVER. Each right, power, or remedy conferred upon the City by this Agreement
is cumulative and in addition to every other right, power, or remedy, express or implied, now, or
hereafter arising, or available to the City at law or in equity, or under any other agreement. Each
and every right, power, and remedy herein set forth or otherwise so existing may be exercised
from time to time as often and in such order as may be deemed expedient by the City and shall
not be a waiver of the right to exercise at any time thereafter any other right, power, or remedy.
If either party waives in writing any default or nonperformance by the other party, such waiver
shall be deemed to apply only to such event and shall not waive any other prior or subsequent
default.
40. COUNTERPARTS. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be an original and shall constitute one and the same Agreement.
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CITY OF LAKE ELMO
By: ____________ __________________
Charles Cadenhead
Its: Mayor
By: __________________ _____________
Julie Johnson
Its: City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this ___ day of ________________,
20___, by Charles Cadenhead and Julie Johnson, the Mayor and City Clerk, respectively, of the
City of Lake Elmo, a Minnesota municipal corporation, on behalf of the City and pursuant to the
authority granted by its City Council.
NOTARY PUBLIC
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LA515\144\1104319.v2
RACHEL DEVELOPMENT, INC.
By: ___________________________________
Its: ___________________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ___, day of _________________,
20___, by _______________________, the _______________________of Rachel
Development, Inc., a corporation in the state of Minnesota.
NOTARY PUBLIC
DRAFTED BY:
City of Lake Elmo
3880 Laverne Avenue North
Lake Elmo, MN 55042
(651) 747- 3900
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LA515\144\1104319.v2
FEE OWNER CONSENT TO
DEVELOPMENT AGREEMENT
, fee owners of all or
part of the subject property, the development of which is governed by the foregoing Development
Agreement, affirm and consent to the provisions thereof and agree to be bound by the provisions as the
same may apply to that portion of the subject property owned by them.
Dated this day of , 2 .
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ____ day of _____________,
20___.
NOTARY PUBLIC
DRAFTED BY:
City of Lake Elmo
3880 Laverne Avenue North
Lake Elmo, MN 55042
(651) 747-3900
32
LA515\144\1104319.v2
MORTGAGEE CONSENT TO
DEVELOPMENT AGREEMENT
, which holds a
mortgage on the Property, the development of which is governed by the foregoing Development
Agreement, agrees that the Development Agreement shall remain in full force and effect even if
it forecloses on its mortgage.
Dated this day of , 20______.
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ___ day of ________________,
20____, by _______________________________________________________________.
NOTARY PUBLIC
DRAFTED BY:
City of Lake Elmo
3880 Laverne Avenue North
Lake Elmo, MN 55042
(651) 747-3901
A-1
LA515\144\1104319.v2
EXHIBIT A TO
DEVELOPMENT AGREEMENT
Legal Description of the Property
Pre-Plat Legal Description:
The North Half of the Southwest Quarter of Section 21, Township 29, Range 21,
Washington County, Minnesota.
Except
All that part of the North 75.00 feet of the East 150.00 feet of the North Half of the
Southwest Quarter of Section 21, Township 29 North, Range 21 West, Washington
County, Minnesota, which lies westerly of the west line of Parcel 3 of the
Washington County Highway Right of Way Plat No. 98 - C.S.A.H. 13, according to
the recorded plat thereof.
Abstract Property
Post-Plat Legal Description:
Lot 1, Block 1, Lots 1-11, Block 2, Lots 1-6, Block 3, Lots 1-5, Block 4, Outlots A,
B, C, and D, Highpointe Crossing, according to the recorded plat thereof, County
of Washington, State of Minnesota.
C-1
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EXHIBIT B TO
DEVELOPMENT AGREEMENT
Subdivision Improvements Cost/Security Amount Estimate
CONSTRUCTION CATEGORY COST 125 percent
1 Grading (may be included
in grading agreement security)
$440,259 $550,323
2 Sanitary Sewer
NA NA
3 Watermain
$348,305 $435,381
4 Storm Sewer (includes
pond structures and outfall
pipes)
$339,708 $424,634
5 Streets and Sidewalks
$596,755 $745,944
6 Trails
NA NA
7 Surface Water Facilities
(ponds, infiltration basins,
other BMPs)
$176,659 $220,824
8 Street Lighting
$40,000 $50,000
9 Street and Traffic Signs
$8,300 $10,375
10 Private Utilities (electricity,
natural gas, telephone,
and cable)
NA NA
11 Builder Landscaping
Improvements
$ $
12 Subdivision Landscaping
Improvements
$ $
13 Tree Preservation and
Restoration
$ $
14 Wetland Mitigation and
Buffers
$ $
15 Monuments
$3,600 $4,500
16 Erosion and
Sedimentation Control
$66,083 $82,603
17 County Roadway
Improvements
$204,535 $255,669
C-2
LA515\144\1104319.v2
18 Developer’s Record
Drawings
$8,000 $10,000
TOTALS
$
$
C-3
LA515\144\1104319.v2
FORM OF IRREVOCABLE LETTER OF CREDIT
No.__________________
Date: ________________
TO: City of Lake Elmo
Dear Sir or Madam:
We hereby issue, for the account of (Name of Developer) and in your favor, our
Irrevocable Letter of Credit in the amount of $___________ available to you by your draft drawn on sight
on the undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No.____________, dated ______________, 20___,
of (Name of Bank)" ;
b) Be signed by the Mayor or City Administrator of the City of Lake Elmo.
c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on
November 30, 20___.
We hereby agree that all sight drafts drawn under and in conformity with the terms of this Letter of Credit
will be duly honored if drawn and presented for payment together with the documents required herein to
[INSERT NAME AND ADDRESS OF BANK AND CONTACT PERSON] if presented before _____p.m. on
or before the expiration date. Presentations may be made by certified mail, return receipt requested, or by
Federal Express or any other recognized courier company.
This Letter of Credit shall automatically renew for successive one -year terms unless, at least forty-five (45)
days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers
written notice to the Lake Elmo City Administrator that it intends to modify the terms of, or cancel, this Letter
of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail,
at least forty-five (45) days prior to the next annual renewal date addressed as follows: City Administrator,
City Hall, 3880 Laverne Ave. N, Lake Elmo Minnesota 55042 and is actually received by the City
Administrator at least thirty (30) days prior to the renewal date.
This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended,
amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to
herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be
made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for
Documentary Credits, International Chamber of Commerce Publication No. 600.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored
upon presentation.
By:
Its:
STAFF REPORT
DATE: July 7, 2026
REGULAR
TO: Mayor and Councilmembers
FROM: City Clerk Julie Johnson, Administrative Services Director Jennifer Doyle
AGENDA ITEM: Mayor and Councilmember Salaries
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☒ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☐ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
City Code 3.08.080- Salaries of Mayor and Councilmembers states: “The mayor and councilmembers shall be paid salaries
as determined from time to time by the council and set by ordinance. An ordinance establishing council salaries shall be
adopted before a regular city election and shall not be effective until January 1 following such election.”
Council’s last compensation increase was approved in July of 2012 with an effective date of 1/1/2013. The mayor’s
salary increased from the 2008 approved rate of $3,915 per year to $6,250 and councilmembers’ from $3,130 to $4,860.
As this is an election year, any consideration for an increase to the mayor and council salaries would need to be
approved prior to the November 3rd election.
ISSUE BEFORE COUNCIL:
Should the Council adopt Ordinance 2026-08 setting salaries for the mayor and councilmembers?
PROPOSAL DETAILS/ANALYSIS:
At the June 9, 2026 City Council Workshop, the Council reviewed information on council salaries from neighboring
communities and communities of similar sizes. The Council considered the median salary rates of similar sized cities and
the level of activity in Lake Elmo. Consensus was reached to set annual pay to $7,000 for councilmembers and $9,000
for the mayor with annual cost of living adjustments included in the ordinance. The proposed ordinance update
incorporates council pay rates into the city code for better transparency for citizens.
FISCAL IMPACT:
The first year increase for the pay rates proposed in draft ordinance 2026-08 is $11,310.
OPTIONS:
1)Adopt ordinance 2026-08 as drafted.
2)Amend and adopt ordinance 2026-08.
3)Do not adopt ordinance 2026-08.
RECOMMENDATION: (if pulled from Consent)
“Move to adopt ordinance 2026-08 Setting the Salaries of Mayor and Councilmembers”
ATTACHMENTS:
Ordinance 2026-08
CITY OF LAKE ELMO
COUNTY OF WASHINGTON
STATE OF MINNESOTA
ORDINANCE NO. 2026-08
AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE OF ORDINANCES BY
AMENDING CHAPTER 3.08.080 SALARIES OF MAYOR AND COUNCILMEMBERS
SECTION 1. The City Council of the City of Lake Elmo hereby ordains that Chapter
3.08.080 of the City’s Code of Ordinances is hereby amended to read as follows (proposed
language is underlined, deleted language is shown with strikethrough):
3.08.080 Salaries Of Mayor and Councilmembers
The mayor and councilmembers shall be paid salaries as determined from time to time by the
council and set by ordinance. An ordinance establishing council salaries shall be adopted before
a regular city election and shall not be effective until January 1 following such election.
Effective on January 1, 2027, the annual salary for each councilmember shall be
$7,000 and the annual salary for the mayor shall be $9,000. Effective on each
January 1 thereafter, the salaries for each councilmember and for the mayor shall
be increased by the same annual cost-of-living-adjustment percentage increase
that is given to City employees, who are not members of a collective bargaining
unit, as of January 1 of each year.
SECTION 2. Effective Date. This ordinance shall become effective January 1,
2027.
SECTION 3. Adoption Date. This Ordinance 2026-08 was adopted on this 7th
day of July, 2026, by a vote of __ Ayes and ___Nays.
LAKE ELMO CITY COUNCIL
________________________________
Charles Cadenhead, Mayor
ATTEST:
________________________________
City Clerk
STAFF REPORT
DATE: July 7, 2026
DISCUSSION
TO: Mayor and Councilmembers
FROM: Jack Griffin, Senior Project Manager
AGENDA ITEM: Discuss Engineering Services for South Water Treatment Plant
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐Managed Growth
☐ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☒ Resilient Infrastructure
BACKGROUND: In September 2023, the City of Lake Elmo retained Stantec Consulting Services as the City’s engineering
consultant for PFAS water treatment plant design and authorized Stantec to provide engineering services for the Well 2
PFAS Water Treatment Plant to be operational on an accelerated project schedule. This project has been completed.
In October 2023, the City of Lake Elmo approved a Grant Agreement with the MPCA and retained Stantec to provide
engineering services for the Preliminary Design and Site Evaluation for the South Water Treatment Plant (“the Project”).
The Preliminary Site Investigations are substantially completed including the construction of the test well. The preferred
8.2 acre site was determined to be suitable for the construction of the proposed South Water Treatment Plant (WTP) and
has been confirmed for acquisition by the City.
Water quality testing samples were taken and test results are expected back in the next week or two. The test results will
be used to help inform the scope of treatment required at this facility. The remaining preliminary engineering work
includes the final determination of the water treatment technology, IX or GAC, whether pretreatment is necessary for
iron and manganese, and the capacity phasing of the plant from initial operation to full build-out. The final
recommendations must be reviewed and approved by the 3M Co-Trustees to remain grant eligible.
ISSUE BEFORE COUNCIL: Should the City Council transition the South Water Treatment Plant engineering services to
Bolton-Menk, Inc. (BMI) to complete the Preliminary Design Phase for the Project?
DISCUSSION: The two key Stantec water treatment plant experts leading the Lake Elmo projects have recently been
hired by BMI, beginning employment in late June, 2026. A discussion with the City council is requested to consider
pursuing a transition of the remaining preliminary design work to BMI to maintain access to these key experts, or to
consider other transitional alternatives. Transitioning services to BMI will serve to keep the project on schedule, avoid
rework, and maintain access to water treatment plant designers with significant knowledge and experience working on
projects in the east metro area and using 3M Settlement Programs Funds.
FISCAL IMPACT:No additional fiscal impact.The project costs for the water treatment plant preliminary engineering is
reimbursed through the 3M Settlement Fund Grant.
STAFF REPORT
DATE: July 7, 2026
REGULAR
TO: Mayor and Councilmembers
FROM: Nate Stanley, City Engineer
AGENDA ITEM: Stormwater Management Utility Code Review
CORE STRATEGIES:
☐ Vibrant, inclusive, connected community
☐ Responsive, transparent, adaptive governance
☐ Managed Growth
☐ Efficient, reliable, innovative services
☒ Balanced Finances now and future
☐ Resilient Infrastructure
BACKGROUND:
Earlier this year the City Council authorized an equity review of the Stormwater Utility Ordinance. The review has been
completed and is attached to this memo.
PROPOSAL DETAILS/ANALYSIS:
On May 5, 2026, the City Council approved a scope of services for the City Engineer to complete a high-level equity
review of the City’s Stormwater Utility Code, including the fee calculation methodology, associated land use categories,
and appeals process. The review also included an assessment of situations where Homeowner Associations may be
responsible for maintenance of public stormwater facilities through a Stormwater Maintenance Agreement.
A detailed report has been prepared, but the key findings can be summarized as follows:
1.Lake Elmo has a vast array of different land uses and property classifications, making it difficult to represent all
single-family residential properties within one category. Currently, all single-family residential properties are
charged as a single unit which is a widely accepted approach to assigning stormwater utility fees.
2.The ordinance currently uses Utility Factors (UFs) to differentiate stormwater utility charges among non-
residential land uses. A high-level review suggests the existing UFs are reasonable, although a more data-driven
methodology could further refine the calculations.
3.Opportunities exist to improve proportionality within the stormwater utility rate structure. Incorporating a
representative impervious surface analysis for various land use categories could better align charges with runoff-
generating characteristics while maintaining a relatively simple and understandable fee structure. The
implementation of these options would take time and a varying degree of cost to develop. Each option
presented also requires different levels of staff time to maintain as the city grows and develops.
4.Lake Elmo currently allows single family homes to appeal their stormwater utility fee. If the City wishes to
maintain the current appeal process, opportunities exist to improve the program through clearer application
requirements, eligibility criteria, and guidance for determining fee reductions.
5.No examples were identified where communities provide stormwater utility fee reductions specifically for HOAs
with Stormwater Maintenance Agreements.
6.Stormwater Maintenance Agreements are an effective tool for defining long-term maintenance responsibilities
between the City and Homeowners Associations. Because these agreements are tailored to individual
developments, concerns regarding maintenance obligations are best addressed through case-by-case review. If
a property owner or HOA believes maintenance responsibilities are improperly assigned, the City should
evaluate the agreement and determine whether modifications are warranted.
Lake Elmo’s stormwater utility is founded on sound and widely accepted practices. Targeted updates to the ordinance
and rate methodology could enhance transparency, improve alignment between charges and system demand, and
support the long-term sustainability of the City’s stormwater program and MS4 compliance obligations.
Implementation of a revised stormwater utility rate methodology would require completion of a professional study,
updates to the City’s billing system, public outreach, and coordination with affected property owners. Should the City
Council elect to amend the Stormwater Utility Ordinance, additional planning and implementation time would be
necessary to ensure a smooth transition.
FISCAL IMPACT:
There is no immediate fiscal impact associated with receiving the report. If the City Council directs staff to pursue
ordinance revisions or a revised rate methodology, a professional services proposal and associated costs would be
presented for future consideration.
OPTIONS:
1.Receive the report as presented and take no action at this time.
2.Receive the report and provide staff with directions on steps to take to continue investigating areas of revision
to the Stormwater Ordinance.
RECOMMENDATION:
Staff recommends maintaining the current stormwater utility rate methodology as established in the ordinance. The
existing structure is straightforward, widely accepted, administratively defensible, and generally equitable.
Staff also requests feedback from the City Council regarding the current stormwater utility fee appeal process, including
whether the process should be maintained, modified, or discontinued.
ATTACHMENTS:
1.Current City Code regarding Stormwater Management Utility.
2.Stormwater Utility Code Equity Review.
TO: Mayor and Councilmembers
FROM: Clarissa Hadler, Finance Director
Pete Tholen, Public Works Director
RE:Additional Information regarding Stormwater Appeals
DATE: July 7, 2026
Existing Stormwater Discounts;
There are a total of 25 property owners receiving stormwater discounts.
The total discounts for 2026 will be approximately $33,000.
Min/Max/Averages;
MIN MAX AVERAGE
$ Discounts Per Property Owner $ 23.75 $ 8,315.39 $ 1,222.35
% Discount Per Property Owner 7%100%62%
71.6% of the total of all discounts are received by 3 property owners; Jesuit Retreat House,
Carmelite Nuns, and Cimarron.
Staff has been unable to determine when/why most discounts were applied in the first place. Some
of these may be due to reasons other than the stormwater appeals process. We have found only a
few approvals in past Council packets. There is a chance some of them are related to planning
activities, like Conditional Use Permits.
Process;
We receive just a handful of stormwater appeals applications per year.
Pete has to review each one, visit the property looking for rain barrels, rain gardens, etc., and write
a Council report requesting either an approval or denial, spending roughly an hour on each one.
Ryan then enters the discount into the utility billing software. (Tracking new ones will now be
easier with the new software.)
There is no process to review discounted property at a later date or requirement to reapply.
There is no process or information available to gauge the effectiveness of the program.
Staff does not believe the appeals process is achieving any significant reduction in stormwater run-off; certainly
not in an amount that would warrant the time to manage the program and loss of revenue.
111 Washington Avenue South
Suite 650
Minneapolis, MN 55401
Phone: (612) 416-0220
Bolton-Menk.com
June 30, 2026
Mayor and City Council
City of Lake Elmo, MN
RE: Stormwater Utility Code Equity Review
Lake Elmo, MN
Project No.: 26X.143957.000
Executive Summary
Lake Elmo’s stormwater utility ordinance provides a dedicated funding source for stormwater
infrastructure, MS4 compliance, maintenance operations, and long-term system improvements. The
utility functions as an enterprise fund and uses a land use-based charge to support maintenance, capital
projects, water quality efforts, and credits for private stormwater management. The city’s current rate
structure is straightforward, widely accepted, administratively defensible, and can be considered
generally fair. The existing methodology relies on generalized classifications that may underrepresent
differences among commercial, industrial, institutional, agricultural, and residential properties, which
can limit the City’s ability to align charges with actual system demand. Lake Elmo’s Zoning Code and
Comprehensive Plan identify additional land use distinctions that are not fully captured in the current
ordinance, suggesting that future updates should better integrate local development patterns and
parcel-level variability. Based on this review, the following findings are included:
1. Lake Elmo has a vast array of different land uses and property classifica>ons, and it can be
difficult to represent all residen>al proper>es within one category. Currently, all single-family
residen>al proper>es are charged as a single unit which is a widely accepted approach to
assigning stormwater u>lity fees.
2. Opportunities exist to improve proportionality within the stormwater utility rate structure.
Incorporating a representative impervious surface analysis for various land use categories could
better align charges with runoff-generating characteristics while maintaining a relatively simple
and understandable fee structure.
3. Lake Elmo currently allows single family homes to appeal their stormwater utility fee. If the City
wishes to maintain the current appeal process, opportunities exist to improve the program
through clearer application requirements, eligibility criteria, and guidance for determining fee
reductions.
4. Stormwater Maintenance Agreements are an effective tool for defining long-term maintenance
responsibilities between the City and Homeowners Associations. Because these agreements are
tailored to individual developments, concerns regarding maintenance obligations are best
addressed through case-by-case review. If a property owner or HOA believes maintenance
responsibilities are improperly assigned, the City should evaluate the agreement and determine
whether modifications are warranted.
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 2
Lake Elmo’s stormwater utility is founded on sound and widely accepted practices. Targeted updates to
the ordinance and rate methodology could enhance transparency, improve alignment between charges
and system demand, and support the long-term sustainability of the City’s stormwater program and
MS4 compliance obligations.
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 3
Stormwater Utility Background
Introduction
This report presents a technical evaluation and summary of the City of Lake Elmo’s Stormwater
Management Utility Ordinance (Chapter 5.16). The ordinance establishes the administrative, financial,
and regulatory framework governing the City’s municipal stormwater system. The system is
implemented as a public utility pursuant to Minnesota Statutes § 444.075, enabling the City to collect
revenue and manage stormwater infrastructure and services in a manner analogous to other municipal
utilities.
Stormwater utilities provide an alternative and dedicated source of revenue for communities to fund
stormwater management. The ordinance is structured to support both the operation of existing
infrastructure and the long-term planning and implementation of improvements necessary to maintain
system performance and protect downstream water resources. Funding may also support Municipal
Separate Storm Sewer (MS4) program management, staffing, maintenance equipment, bond payments,
and other stormwater related Capital Improvement Plan (CIP) items such as storm sewer construction,
channel rehabilitation, lift stations, etc. Furthermore, it may support other public education programs
and staff training required by the MS4 permit.
Utility Framework and Program Funding
The City operates its stormwater system as a dedicated enterprise fund, with revenues derived from
user fees assigned to properties throughout the community. These revenues are intended to support a
broad range of activities including system planning, maintenance of drainage infrastructure, capital
improvements, and water quality initiatives. Specifically, the ordinance identifies eligible expenditures
such as maintenance of ditches, culverts, storm sewers, and ponds, in addition to planning activities,
equipment, inventory development, and practices that improve water quality, including vegetation
management. This structure reflects a utility-based funding approach where costs are distributed across
benefited properties rather than funded solely through general taxation.
Rate Methodology and Fee Determination
The ordinance establishes a rate methodology based on a variable termed the Utility Charge (UC), which
is determined periodically by City Council action. The UC serves as the base unit for calculating
stormwater fees across different property classes, with the ordinance defining specific multipliers and
calculation methods that vary by land use. Table 1 summarizes the utility factor calculation.
Table 1: Utility equations for various land uses (Chapter 5.16, Stormwater Management Utility, Adopted 11/03/2021)
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 4
Residential properties are charged on a per-lot basis using a multiplier of one UC per lot. In contrast,
non-residential land uses, including commercial, industrial, and institutional properties, are charged on a
per-acre basis using Utility Factors (UF) intended to approximate relative stormwater runoff
contribution. For example, commercial and industrial properties are assessed at 3.08 times the UC per
acre, while institutional uses such as schools and churches are assessed at a lower, but still elevated,
rate of 1.12 times the UC per acre. Open spaces like vacant non-farmed land and golf courses are
assigned a rate indicating they contribute low levels of runoff. Agricultural land is assessed using a
modified acreage-based formula that distributes the UC across 40-acre increments.
Credits and Fee Adjustments
Property owners may receive fee reductions where they implement practices that retain or reuse
stormwater in a manner that minimizes impacts on the public drainage system or waters of the state.
Eligible practices include structural and non-structural Best Management Practices (BMP) such as rain
barrels, rain gardens, retention ponds, swales, and riparian plantings. Credits are awarded based on
effectiveness and are determined by the City Council following review and recommendation by
administrative and public works staff. The ordinance establishes a general credit range between 25
percent and 75 percent of the assessed fee, depending on the degree of runoff reduction achieved.
In cases where practices are constructed within public right-of-way areas and maintained by adjacent
property owners, the ordinance allows for ongoing credits, typically not exceeding 50 percent of the
annual fee. Additionally, a separate credit provision is included for financial hardship, allowing
reductions of up to 75 percent based on the property owner’s ability to pay.
Exemptions
The ordinance identifies specific land uses that are exempt from the stormwater utility fee. These
exemptions include public rights-of-way, parks, lakes, and railroad property. These exemptions reflect
the City’s determination that such properties either do not impose a typical fee-recoverable burden on
the system or are otherwise publicly managed components of the broader drainage network.
Assessment of Current Stormwater Utility Methodology
The City’s current program is rooted in a comparison of residential impervious values to other land use
types. While this method has similarities to many other stormwater utility charge methodologies, and
impervious values are directly correlated to runoff volumes, Lake Elmo’s focuses on a representative
subset of land use types. Lake Elmo has an extremely varied collection of land uses and types across the
city which creates a challenge from this perspective. That is, the UC calculation table in the ordinance
does not necessarily describe all land uses in Lake Elmo and does not capture the variability within each
land use category.
Assessment of Hydrologic Curve Numbers
One method for calculating stormwater runoff is the use of “Curve Numbers”, which capture land use,
impervious coverage, and soil type in a single empirical value, which is then used in a calculation to
quantify runoff volume. For reference, Table 2 shows the nationally accepted assumed impervious
values. When using “Residential, Medium Density” as a surrogate for the base line UC, the impervious
area ratios can be calculated. Table 2 is purely to illustrate the potential variability of utility factors
when assumed impervious values are used as a blanket value for all similar parcels.
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 5
Table 2: Summary of assumed impervious values from USDA Urban Hydrology for Small Watersheds - TR-55 hydrology and
hydraulic calculations.
Land Use Category
Assumed
Impervious %
Ratio to
Residential
Impervious
Residential, Medium Density, 1/4 ac Lots 38% BASE
Residential, High Density, 1/8 ac Lots 65% 1.71
Residential, Medium-Low Density, 1/2 ac Lots 25% 0.66
Residential, Low Density, 1 ac Lots 20% 0.53
Commercial 85% 2.24
Industrial 72% 1.89
Preliminary Measurement of Impervious Areas
A preliminary assessment of actual impervious areas on a variety of land uses was conducted to verify
and substantiate the city’s current utility factor methodology. This was done by measuring actual
impervious surface areas on several properties throughout the city. This smaller subset of data shows
the potential variability in impervious areas that exist amongst the different land uses. Table 3 below
summarizes the assessment of current land use and the following describe some interesting takeaways.
• On average, the low density residential parcels have the largest lot areas and the largest
corresponding average impervious area. However, they have the lowest average percent
impervious. The opposite is true for high density residential (low per parcel impervious, high
percent impervious).
• Institutional impervious averages and percent total impervious were generally low relative to
the total parcel area indicating that much of those large sites is green space.
• The average commercial and industrial impervious areas followed the hydrologic curve number
assessment, except that commercial areas may have lower average impervious than industrial
areas in Lake Elmo.
• Ratios of average impervious area for these land uses vary widely and do not correlate to the
city’s current utility factor approach. However, when looking at ratios of average percent
impervious, the utility factors are within reason with the current ordinance.
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 6
Table 3: Summary of preliminary assessment of impervious areas for existing land uses.
Land Use Assessed
Number of
Parcels
Assessed
Average
Impervious
Area (sq. ft)
Average
Percent
Impervious
Ratio
Against
Average
Residential
Area (sq. ft)
Ratio
Against
Average
Residential
Area (%)
Residential (high density) 8 4,519 39%
Residential (med density) 6 8,565 18%
Residential (low density) 6 11,486 10%
Residential (Average All) 20 7,823 24%
Institutional 4 264,508 37% 33.8 1.5
Industrial 8 29,973 86% 3.8 3.6
Commercial 20 138,312 68% 17.7 2.8
Zoning Code and Comprehensive Plan Land Use
The City of Lake Elmo’s zoning code (chapter 105) includes provisions for various land uses and zoning
districts. Table 4 represents Table 8-1: Zoning Districts from Article X of Chapter 105. Furthermore,
Table 5 represents Table 3-1: Existing Land Use from the city’s 2040 Comprehensive Plan (Land Use
Chapter, page 3-4). These tables represent the additional variability in how the city classifies its land
use, and in turn, a potential for how a UC calculation may be interpreted. The 2040 Comprehensive Plan
(Table 3-2) describes additional options for rural residential, mixed uses, village areas, and business
districts that may result in variable impervious coverages.
Table 4: Chapter 105, City Code, Table 8-1, Zoning Districts.
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 7
Table 5: 2040 Comprehensive Plan, Table 3-1, Existing Land Use.
Options for Stormwater Utility Rate Charges
There are several accepted approaches for calculating stormwater utility charges, each offering different
levels of simplicity, equity, and administrative effort. Lake Elmo's current rate structure is
straightforward, widely used, and administratively defensible. However, because it relies on broad land
use classifications, it may not fully reflect differences in impervious surfaces and stormwater runoff
among property types.
The following options could improve the relationship between utility charges and stormwater system
demand. Depending on the methodology selected, the City may be able to redistribute charges among
property types and potentially increase overall utility revenue with minimal impact to residential
properties. The financial impacts of any change would require a comprehensive study to determine.
1. Expanded Residential Equivalency Factors (REF)
Lake Elmo currently leverages a version of the REF system, but is limited to a specific subset of
land use categories. In this system, impervious areas would be measured from a sample of
parcels within each land use category and/or zoning district and averaged to get a better
representative data set and reduce the potential variability within each land use type. The rate
is then calculated by either leveraging an average impervious area for the base line residential
land use category, or based on the size of the parcel itself. While easier to calculate than other
directly measured impervious area methodologies and simple to update, it is not as accurate as
other methods.
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 8
While a simplified approach to assigning a single REF to residential properties is widely accepted
and like the approach already adopted by Lake Elmo, an additional expansion of this structure
would be to include a tiered residential structure that further refines the residential land use
categories. The city already has a different calculation for manufactured home parks but could
expand that to other residential categories and/or village classifications.
2. Direct Impervious Area Method
This method physically measures the actual impervious area of each parcel in the city and
charges a rate based on each square foot (or acre) of impervious area. With the advancement
of remote sensing and arial photography resolution, GIS-based assessments work best for this
calculation because it can be automated and replicated when new arial photos are collected.
This method may be the most detailed but is contingent upon the accuracy of the base data and
can be burdensome to maintain.
3. Equivalent Residential Unit (ERU)
Similar to the direct impervious area method, the ERU method delineates impervious areas, but
only for non-residential parcels. This reduces the upfront investment in impervious area
calculations but still provides actual impervious area values. In this case, impervious areas for a
subset of residential parcels would be delineated and averaged to calculate a single ERU. That
is, if the average impervious area for single-family homes in Lake Elmo is 3,000 square feet, then
one ERU is equal to 3,000 square feet of impervious area. For a commercial property with
12,000 square feet of impervious area, that parcel is charged 12,000 / 3,000 = 4 times that of an
average residential property. While less contingent upon data accuracy when compared to the
direct impervious area method, the ERU method can be burdensome to maintain.
No single methodology is inherently "best." The preferred approach depends on the City's goals related
to equity, simplicity, administrative effort, and revenue stability.
Stormwater Utility Fee Appeal Process
The City of Lake Elmo’s stormwater utility ordinance was developed under the guidance of Minnesota
Statute § 444.075, which allows municipalities to establish stormwater fees by ordinance or resolution
under the city’s statutory authority. This allows cities to establish dedicated stormwater funds through
just and reasonable charges based on accepted methodology. Within the statute, where is no
requirement to allow for appeal of the fee and it is not a requirement of a municipality to allow for this.
The ability to appeal is entirely up to the municipality and the process is codified through the local
ordinance.
Lake Elmo currently allows appeals by which a property owner contacts the city with their request, it is
reviewed by the Public Works Director and the Director has authority to reject the request or apply a
credit based on their review, which is capped at a reduction of 50% of the fee. Lake Elmo does provide
some criteria for reducing the fee, including installation of rain gardens, rain barrels, or infiltration
basins, however the ordinance does not include solid rationale to calculate a percentage reduction.
There are also no requirements to maintain the credit, such as annual inspections or re-application.
Research was conducted to review what other metro area cities have for an appeal process. It was
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 9
found that the cities reviewed have a process like Lake Elmo’s and lack guidance or criteria for
reductions or credits. The most commonly observed language in the stormwater utility ordinances
reviewed is that “a property owner can request that their fee be recomputed”. It was also discovered
that some municipalities do not allow properties to appeal the stormwater utility fee or offer a credit or
fee reduction. An application form could be developed to formally memorialize appeals, and updates to
the process including documentation and inspections could be implemented. However, it is important to
consider the staff time associated with these changes.
While a credit system can incentivize individual properties, it is important to remember that stormwater
is still discharged into the City’s infrastructure. Reducing the local risk to the City’s stormwater system
may not reduce the BMP maintenance burden in all areas, the number of staff required to manage the
MS4, regional flooding, or equipment maintenance. Therefore, if a rebate system is used more
widespread, it may reduce the city’s ability to generate enough revenue to manage its stormwater
system wholistically.
Stormwater Maintenance Agreements in Residential Homeowner Associations
As part of this review, Stormwater Maintenance Agreements associated with residential Homeowners
Associations (HOAs) were evaluated to determine whether maintenance obligations assigned to private
property owners may overlap with responsibilities typically associated with public stormwater
infrastructure. A review of stormwater utility programs and ordinances from other communities was
also conducted to identify potential credit programs or formal review processes for these situations.
No examples were identified where communities provide stormwater utility fee reductions specifically
for HOAs with Stormwater Maintenance Agreements.
Lake Elmo contains a diverse range of residential developments, each with unique stormwater
infrastructure and maintenance arrangements. As a result, Stormwater Maintenance Agreements are
tailored to the specific conditions of each development. Given this variability, establishing a
standardized credit program for HOAs would be difficult to administer and may not equitably account
for the unique circumstances of individual neighborhoods.
If a property owner or HOA believes a Stormwater Maintenance Agreement assigns responsibility for
infrastructure that should be maintained by the City, the appropriate course of action is to request a
review of the agreement. The City can then evaluate the specific circumstances and determine whether
the maintenance responsibilities remain appropriate or whether amendments should be considered.
Stormwater Maintenance Agreements remain an effective tool for defining maintenance responsibilities
between the City and HOAs. Because each agreement is development-specific, concerns regarding
maintenance obligations are best addressed through case-by-case review rather than through a
generalized stormwater utility fee reduction program.
Findings and Conclusions
The City of Lake Elmo’s stormwater utility ordinance establishes a comprehensive system for funding
and managing municipal stormwater infrastructure. The ordinance integrates a land use-based rate
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 10
methodology, incentive-based credits for on-site management for residential properties, and district-
based financing mechanisms for regional infrastructure. From a technical perspective, the framework
reflects a balance between administrative simplicity and functional equity, using generalized land use
classifications to approximate runoff contributions while incorporating targeted adjustments and credits
to encourage improved stormwater performance at the parcel level. The inclusion of stormwater area
districts further enables the city to align infrastructure financing with development activity and
watershed-level regulatory requirements.
The following are findings and conclusions of this review:
1. Using a single unit standard for assignment of stormwater utility fees to residential properties is
a straightforward and widely accepted approach, legally defensible, and can be considered fair,
which is how the current ordinance is structured. However, fees can be applied in many ways
with regards to stormwater management. Larger lots generally have more impervious surface
coverage, which is directly proportional to stormwater runoff. The City of Lake Elmo has a vast
array of different land uses and property classifications, and it can be difficult to represent all
single-family residential properties within one category. Additionally, the City’s Comprehensive
Plan and Zoning Ordinances define additional variability in its land use categories. Equity could
be improved by refinement of the rate methodology to better represent actual impervious
conditions through a more data driven impervious area approach.
2. While the city’s current structure uses Utility Factors that help balance generalized land use, (i.e.
commercial and industrial areas have a higher Utility Factor than residential or open spaces)
even commercial and industrial areas vary in the amount of impervious surface they may have.
Delineation of impervious areas from a representative data set of parcels within each land use
category and/or zoning district would reduce the potential variability within each land use type
and strengthen equity. Under a more data driven system the rate can be calculated by
leveraging an average impervious area for the base line residential land use category.
3. The ordinance addresses agricultural, vacant land, and open space uses, such as golf courses,
with lowered Utility Factors, as these areas have very little to no impervious coverage. If there is
a change to the ordinance a nuanced framework should be considered for these land uses, as
while they contribute stormwater to the system, it will be significantly less than comparable
developed areas.
4. The city has an appeals process that offers rebates to the stormwater utility fee. If the
stormwater utility fee appeal process remains in place, it could be strengthened through greater
transparency and consistency. Establishing a formal application process, clear evaluation
criteria, documentation requirements, and periodic verification of approved stormwater
practices would improve administration of the program while helping ensure adequate funding
remains available for system operations, maintenance, and regulatory compliance.
5. Stormwater Maintenance Agreements remain an effective tool for defining long-term
maintenance responsibilities between the City and Homeowners Associations. Because these
agreements are tailored to individual developments, concerns regarding maintenance
obligations are best addressed through case-by-case review. If a property owner or HOA
Title: Stormwater Utility Research and Recommendations
Date: 06/30/2026
Page: 11
believes maintenance responsibilities are improperly assigned, the City should evaluate the
agreement and determine whether modifications are warranted.
Implementation of a revised stormwater utility rate methodology would require completion of a
professional study, updates to the City’s billing system, public outreach, and coordination with affected
property owners. Should the City Council elect to amend the Stormwater Utility Ordinance, additional
planning and implementation time would be necessary to ensure a smooth transition.
If there are any questions about the information in this report, please feel free to contact us.
Sincerely,
Bolton & Menk, Inc.
Nate Stanley, PE Timothy J. Olson, PE
City Engineer Water Resources Engineer
Stormwater Utility Code Equity Review
Stormwater Utility Code Equity
Review
City Council Meeting | July 7, 2026
Stormwater Utility Code Equity Review
Contents
Contents
1. Summary of Existing Ordinance
2. Assessment of Current Methodology
3. Options for Stormwater Utility Rate Charges
4. Stormwater Utility Fee Appeal Process
5. Stormwater Maintenance Agreements in HOA
6. Findings and Conclusions
7. Recommendations
8. Questions and Discussion
Stormwater Utility Code Equity Review
Summary of Existing Ordinance
Summary of Existing Ordinance
•Developed under the guidance of MN Stat 444.075.
•Provides dedicated source of funding for stormwater maintenance, system
management and improvements.
•Existing rate methodology provides base rate for residential properties and
uses Utility Factor multipliers across different property types and land
uses.
•Ordinance allows for appeal of the fee and specifies fee reductions for
residents who install stormwater BMPs.
•Exempt land uses are specified, including public ROW, parks, lakes and
RR property.
Stormwater Utility Code Equity Review
Assessment of Current Methodology
Assessment of Current Methodology
•The current methodology of assigning residential on a unit basis is
consistent with many other communities.
•The existing rate structure is straightforward, widely accepted,
administratively defensible, and can be considered generally fair.
•Lake Elmo has a wide array of residential housing types in several
zoning districts that can be difficult to represent all residential
properties in one category.
Stormwater Utility Code Equity Review
Assessment of Current Methodology
Assessment of Current Methodology
•Current program uses a comparison of residential impervious values to other
land use types. Residential properties are considered a single unit regardless
of lot size or land classification.
•Lake Elmo has a widely varied collection of land uses, and the calculation
categories do not always exactly match. This can be a challenge.
Stormwater Utility Code Equity Review
Assessment of Current Methodology – Curve Numbers
Assessment of Current Methodology –Curve Numbers
•Evaluation of Utility Factors in the equations by using Curve Numbers
was completed.
•Curve Numbers impact runoff and are primarily based on impervious
coverage and soils characteristics.
•For example, a Curve Number for a parking lot is 95, which indicates
high runoff. While a Curve Number for an open meadow could be 50,
indicating more infiltration and lower runoff rate.
Stormwater Utility Code Equity Review
Assessment of Current Methodology – Curve Numbers
Assessment of Current Methodology –Curve Numbers
•Using a baseline of Medium Density Residential as the standard
residential type for Lake Elmo, the results of the Curve Number
analysis show there can be wide variability of impervious values.
•The Ratio to Residential Impervious in the table below represents the
multiplier (similar to Utility Factor).
Land Use Category
Assumed
Impervious %
Ratio to
Residential
Impervious
Residential, Medium Density, 1/4 ac Lots 38%BASE
Residential, High Density, 1/8 ac Lots 65%1.71
Residential, Medium-Low Density, 1/2 ac Lots 25%0.66
Residential, Low Density, 1 ac Lots 20%0.53
Commercial 85%2.24
Industrial 72%1.89
Stormwater Utility Code Equity Review
Assessment of Current Methodology – Measurement of Impervious
Assessment of Current Methodology –Measurement of Impervious
•Evaluation of Utility Factors in the equations was completed by
measuring actual impervious areas.
•GIS computation of varying land uses was completed across
residential, institutional, industrial and commercial properties.
•The number of properties measured was just a “spot-check” and is not
enough to constitute a representative sample across the community.
Stormwater Utility Code Equity Review
Commercial Property Example:
Commercial Property Example:
Stormwater Utility Code Equity Review
Institutional Property Example:
Institutional Property Example:
Stormwater Utility Code Equity Review
Low Density Residential (2.5 Acres):
Low Density Residential (2.5 Acres):
Stormwater Utility Code Equity Review
Low Density Residential (1 Acre):
Low Density
Residential (1 Acre):
Medium Density
Residential (1/4 Acre):
Stormwater Utility Code Equity Review
High Density Residential:
High Density Residential:
Stormwater Utility Code Equity Review
Assessment of Current Methodology – Measurement of Impervious
Assessment of Current Methodology –Measurement of Impervious
•Using the Residential (Average All) as the baseline the results of the
analysis vary based on whether impervious area versus impervious
percent coverage are compared.
•The ratio comparison of impervious percent generally aligns with the
multiplier (Utility Factors) in the ordinance.
Land Use Assessed
Number of
Parcels
Assessed
Average
Impervious
Area (sq. ft)
Average
Percent
Impervious
Ratio
Against
Average
Residential
Area (sq. ft)
Ratio
Against
Average
Residential
Area (%)
Residential (high density)8 4,519 39%
Residential (med density)6 8,565 18%
Residential (low density)6 11,486 10%
Residential (Average All)20 7,823 24%
Institutional 4 264,508 37%33.8 1.5
Industrial 8 29,973 86%3.8 3.6
Commercial 20 138,312 68%17.7 2.8
Stormwater Utility Code Equity Review
Options for Stormwater Utility Rate Charges:
Options for Stormwater Utility Rate Charges:
•Opportunities exist to improve proportionality within the stormwater
utility rate structure.
•Implementation of each option presented will take time and varying
degrees of cost to develop.
•Maintenance of each option is an important consideration as the city
grows and develops.
Stormwater Utility Code Equity Review
Options for Stormwater Utility Rate Charges – Expanded Residential Equivalency Factor (REF)
Options for Stormwater Utility Rate Charges –Expanded
Residential Equivalency Factor (REF)
•Current city ordinance leverages a version of REF system.
•Additional impervious measurement needed to obtain a baseline for average
property types based on land use classifications across the city.
•An expansion could include a tiered system applied to land use categories.
•Develops Utility Factors for each category in the city.
•High-level estimate of cost and time it would take to implement is estimated
$25,000 –$35,000; 2 –4 months.
Description: Impervious directly measured from a sample set for each land
use, REF created based on ratio amongst land uses
Stormwater Utility Code Equity Review
Options for Stormwater Utility Rate Charges – Direct Impervious Area Method
Options for Stormwater Utility Rate Charges –Direct
Impervious Area Method
•Physically measures impervious area of every parcel in the city.
•Rate is charged based on area of impervious.
•Most detailed method, but also the most burdensome system to maintain.
•Requires delineation of all new properties coming on-line.
•High-level estimate of cost and time it would take to implement is estimated
$55,000 –$65,000; 5 –7 months.
Description: Impervious directly measured for every parcel and land use,
utility charged based on each square foot of impervious
Stormwater Utility Code Equity Review
Options for Stormwater Utility Rate Charges – Equivalent Residential Unit (ERU)
Options for Stormwater Utility Rate Charges –Equivalent
Residential Unit (ERU)
•Additional impervious measurement needed of single family residential to
establish baseline ERU.
•All single-family residential parcels are 1 ERU.
•Physically measures impervious area of each non-residential parcel.
•Rate is charged based impervious area/ERU.
•Very widely used methodology.
•High-level estimate of cost and time it would take to implement is estimated
$40,000 –$50,000; 4 –6 months.
Description: Impervious directly measured for every non-residential parcel,
compared to base line residential impervious area
Stormwater Utility Code Equity Review
Options for Stormwater Utility Rate Charges – Comparison
Options for Stormwater Utility Rate Charges –Comparison
Time to
Create
Cost to
Create
Cost to
Maintain Accuracy Defense
Risk Equity
Direct Impervious Area
Method
Equivalent Residential
Unit (ERU)
Residential Equivalency
Factor (REF)
Stormwater Utility Code Equity Review
Options for Stormwater Utility Rate Charges:
Options for Stormwater Utility Rate Charges:
•Staff recommends maintaining the current stormwater utility rate
methodology as established in the ordinance.
•The existing structure is straightforward, widely accepted,
administratively defensible, and generally equitable.
Stormwater Utility Code Equity Review
Stormwater Utility Fee Appeal Process
Stormwater Utility Fee Appeal Process
•MN Statute 444.075 provides guidance for municipalities to establish stormwater
fees by ordinance.
•There is no requirement in the Statute for municipalities to allow appeals. The
city can establish a process by ordinance. Appeals are currently allowed by Lake
Elmo for single family homes.
•Credit system can incentivize individual properties, but they are still contributing
to the system. Widespread rebates may become detrimental.
Stormwater Utility Code Equity Review
Stormwater Utility Fee Appeal Process
Stormwater Utility Fee Appeal Process
•Does the city want to maintain the existing appeal process? Not all municipalities
entertain credits or reduction, especially when fee is assigned based on a unit
basis.
•Opportunities exist to improve the program through clearer application
requirements, eligibility criteria, and guidance for determining fee reductions.
•The process could include development of annual requirements to maintain the
credit such as re-application, maintenance records, and inspections.
•Staff time is important to consider if changes are considered.
Stormwater Utility Code Equity Review
Stormwater Maintenance Agreements in HOA
Stormwater Maintenance Agreements in HOA
•Research completed regarding how to address instances of Stormwater
Maintenance Agreements for HOA overlapping with typical public maintenance.
•No allowances for fee reductions or review mechanisms were discovered in other
city codes researched.
•Lake Elmo has a wide variety of residential subdivisions types and agreements are
tailored and individualized. This makes developing a credit system extremely
difficult to administer.
Stormwater Utility Code Equity Review
Stormwater Maintenance Agreements in HOA
Stormwater Maintenance Agreements in HOA
•Stormwater Maintenance Agreements remain an effective tool for defining
maintenance responsibilities between the City and HOAs.
•Agreements are tailored to individual developments and concerns regarding
maintenance obligations are best addressed through case-by-case review.
•If a property owner or HOA believes maintenance responsibilities are improperly
assigned, the City should evaluate the agreement and determine whether
modifications are warranted.
Stormwater Utility Code Equity Review
Findings and Conclusions
Findings and Conclusions
•Lake Elmo has a vast array of different land uses and property classifications,
making it difficult to represent all single-family residential properties within one
category. Currently, all single-family residential properties are charged as a single
unit which is a widely accepted approach to assigning stormwater utility fees.
•The ordinance currently uses Utility Factors (UFs) to differentiate stormwater utility
charges among non-residential land uses. A high-level review suggests the
existing UFs are reasonable, although a more data-driven methodology could
further refine the calculations.
Stormwater Utility Code Equity Review
Findings and Conclusions
Findings and Conclusions
•The City offers rebates through an appeals process. If this system is maintained,
opportunities exist to improve the program through clearer application
requirements, eligibility criteria, and guidance for determining fee reductions .
•Stormwater Maintenance Agreements are an effective tool for defining long-term
maintenance responsibilities between the City and Homeowners Associations .
•Concerns regarding maintenance obligations are best addressed through case-by -
case review.
•Opportunities exist to improve proportionality within the stormwater utility rate
structure, but changes will require completion of a professional study, updates to
the City’s systems and practices now and into the future.
Stormwater Utility Code Equity Review
Recommendations
Recommendations
•Staff recommends maintaining the current stormwater utility rate methodology as
established in the ordinance. The existing structure is straightforward, widely
accepted, administratively defensible, and generally equitable.
Stormwater Utility Code Equity Review
Questions and Discussion
Questions and Discussion
•Staff is requesting feedback from the City Council regarding the current
stormwater utility fee appeal process, including whether the process should be
maintained, modified, or discontinued.
Date Type Due date for
packet Order Agenda Section Agenda item
7/14/2026 CC Workshop 7/7/26 Discussion Old City Hall
Discussion Street parking Royal Golf
Discussion Draft 2027 - 2036 Capital Improvement Program
Discussion Capitalization Policy
Discussion Strategic Financial Plan - Initial Review of Models, Assumptions, and Strategic Financial Goals
Closed Session before
meeting Sale of Fire Station and Parks Building (tentative)
7/21/2026 CC Meeting 7/14/26
Consent Agenda 2nd Quarter Dashboards and Financials
Regular Agenda Legislative Representation Proposal
Consent Agenda Fund Transfers
Discussion Sports Complex/76 acre Consultant Discussion
Regular Agenda Social host ordinance
Regualr Agenda Order Feasibility Report for 2027 Collector Road Reclaim Project
Regular Agenda Limerick Village Preliminary Plat and PUD
Regular Agenda 2nd Quarter Goals Update
Closed Session before
meeting Ryan Companies offer
Closed Session Discuss sale of 11052 34TH ST N
8/5/2026 CC Meeting 7/30/26 Consent Agenda 180 Acres AUAR Approval (tentative)
Consent Agenda Sunfish Deer Hunting
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Regular Agenda MYP Zoning Text Amendment and Conditional Use Permit
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8/11/2026 CC Workshop 8/4/26
Discussion Draft 2027 Budget & Levy
Discussion CIP F-012 Ladder 1 Replacement Approval
Community Engagement Results - City 180
8/18/2026 CC Meeting 8/11/26
Regualr Agenda CIP F-012 Ladder 1 Replacement Approval
9/1/2026 CC Meeting 8/25/26
9/8/2026 CC Workshop 9/1/26 Annual Water Updates
Fury Site
9/15/2026 CC Meeting 9/8/26 Regular Agenda 2027 Preliminary Levy
Future Council Agenda Items
*Please note: This list is subject to change*
Consent Agenda Appoint Election Judges
10/6/2026 CC Meeting 9/29/26 Consent Agenda 3rd Quarter Dashboards and Financials
Regular Agenda 3rd Quarter Goals Update
10/13/2026 CC Workshop 10/6/26
10/20/2026 CC Meeting 10/13/26
Regular Agenda 3rd Quarter Financials and Dashboard
11/4/2026 CC Meeting Regular Agenda Bonding
11/10/2026 Special Meeting Canvass Election Results
11/10/2026 CC Workshop Employee Policies Updates
11/17/2026 CC Meeting
Regular Agenda
12/1/2026 CC Meeting
Regular Agenda
12/8/2026 CC Workshop Obstructions in ROW
12/15/2026 CC Meeting