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HomeMy WebLinkAbout04/27/2021The City Council is meeting as a legislative body to conduct the business of the City according to Robert's Rules of Order and the Standing Rules of Order and Business of the City Council. Unless so ordered by the Mayor, citizen participation is limited to the times indicated and always within the prescribed rules of conduct for public input at meetings. 1. CALL TO ORDER THE LAUDERDALE CITY COUNCIL MEETING 2. ROLL CALL 3. APPROVALS a. Agenda b. Minutes of the April 13, 2021 City Council Meeting c. Claims Totaling $19,656.37 4. CONSENT a. March Financial Report s. SPECIAL ORDER OF BUSINESS/RECOGNITIONS/PROCLAMATIONS 6. INFORMATIONAL PRESENTATIONS / REPORTS a. Annual Report by Police Chief Jon Mangseth b. Annual Audit Report by Bonnie Schwieger of Abdo, Eick, and Meyers c. City Council Updates 7. PUBLIC HEARINGS Public hearings are conducted so that the public affected by a proposal may have input into the decision. During hearings all affected residents will be given an opportunity to speak pursuant to the Robert's Rules of Order and the standing iules of order and business of the City Council. 8. DISCUSSION / ACTION ITEM a. Resolution No. 042721A — Approving Lot Split for Real Property Located at 1876 Malvern Street b. Zoning Ordinance Revision Proposal from Swanson Haskamp Consulting c. Draft Zoning Ordinance Amendment 9. ITEMS REMOVED FROM THE CONSENT AGENDA LAUDERDALE CITY COUNCIL MEETING AGENDA 7:00 P.M. TUESDAY, APRIL 27, 2021 Due to the coronavirus the city council is holding meetings by teleconference. The public may view the meeting on Lauderdale's public access channel 16 for cable subscribers or online at https://www.ctvnorthsuburbs.org/your-city/lauderdale/. The public may join the meeting using the login instructions at the end of the agenda. The City Council is meeting as a legislative body to conduct the business of the City according to Robert's Rules of Order and the Standing Rules of Order and Business of the City Council. Unless so ordered by the Mayor, citizen participation is limited to the times indicated and always within the prescribed rules of conduct for public input at meetings. 1. CALL TO ORDER THE LAUDERDALE CITY COUNCIL MEETING 2. ROLL CALL 3. APPROVALS a. Agenda b. Minutes of the April 13, 2021 City Council Meeting c. Claims Totaling $19,656.37 4. CONSENT a. March Financial Report s. SPECIAL ORDER OF BUSINESS/RECOGNITIONS/PROCLAMATIONS 6. INFORMATIONAL PRESENTATIONS / REPORTS a. Annual Report by Police Chief Jon Mangseth b. Annual Audit Report by Bonnie Schwieger of Abdo, Eick, and Meyers c. City Council Updates 7. PUBLIC HEARINGS Public hearings are conducted so that the public affected by a proposal may have input into the decision. During hearings all affected residents will be given an opportunity to speak pursuant to the Robert's Rules of Order and the standing iules of order and business of the City Council. 8. DISCUSSION / ACTION ITEM a. Resolution No. 042721A — Approving Lot Split for Real Property Located at 1876 Malvern Street b. Zoning Ordinance Revision Proposal from Swanson Haskamp Consulting c. Draft Zoning Ordinance Amendment 9. ITEMS REMOVED FROM THE CONSENT AGENDA 10. ADDITIONAL ITEMS 11. SET AGENDA FOR NEXT MEETING a. Quarterly Investment Report b. Public Works Management Software 12. WORK SESSION a. Community Development Update b. Opportunity for the Public to Address the City Council Any member of the public may speak at this time on any item not on the agenda. In consideration for the public attending the meeting, this portion of the meeting will be limited to fifteen (15) minutes. Individuals are requested to limit their comments to foul (4) minutes 01 less If the majority of the Council determines that additional time on a specific issue is warranted, then discussion on that issue shall be continued at the end of the agenda. Before addressing the City Council, members of the public are asked to step up to the microphone, give their name, address, and state the subject to be discussed. All remarks shall be addressed to the Council as a whole and not to any member thereof. No person other than members of the Council and the person having the floor shall be peimitted to entei any discussion without permission of the presiding officer. Your participation, as prescribed by the Robert's Rules of Order and the standing rules of order and business of the City Council, is welcomed and your cooperation is greatly appreciated. 13 ADJOURNMENT Meeting Login Instructions: You are invited to a Zoom webinar. When: Apr 27, 2021 07:00 PM Central Time (US and Canada) Topic• April 27, 2021 City Council Webinar Please click the link below to join the webinar: https://us02web.zoom.us/j/83079481902?pwd=STVDQ3FhckxoRDdFbitMM2RURkJDUT09 Passcode 917007 Or One tap mobile : US: +13017158592„83079481902 or +13126266799„83079481902# Or Telephone: Dial(foi higher quality, dial a number based on your current location): US: +1 301 715 8592 01 +1 312 626 6799 or +1 646 558 8656 of +1 253 215 8782 or +1 346 248 7799 or +1 669 900 9128 or 877 853 5247 (Toll Free) or 888 788 0099 (Toll Free) or 833 548 0276 (Toll Free) 01 833 548 0282 (Toll Flee) Webinar ID: 830 7948 1902 International numbers available: https://us02web.zoom.us/u/kbYXHi4is3 LAUDERDALF CITY COUNCIL MEETING MINUThS HELD REMOThLY VIA ThLhCONFFREkCh Page 1 of 3 April 14, 2021 Call to Order Mayor Gaasch called the Regular City Council meeting to order at 7:00 p.m. Roll Call Councilors present: Roxanne Grove, Jeff Dains, Duane Pulford, Andi Moffatt, and Mayor Mary Gaasch. Staff present: Heather Butkowski, City Administrator; Jim Bownik, Assistant to the City Administrator and Miles Cline, Deputy City Clerk. Approvals Mayor Gaasch asked if there were any additions to the meeting agenda. Butkowski asked to add the Grounds Services Agreement with Joe Sax Lawn Service to Additional Items. Councilor Dains moved and seconded by Councilor Pulford to approve the agenda as amended. Motion carried unanimously on a roll call vote. Mayor Gaasch asked if there were any corrections to the March 23, 2021 city council meeting minutes. Theie being none, Councilor Grove moved and seconded by Counciloi Pulford to approve the minutes of the March 23, 2021 city council meeting. Motion carried unanimously on a roll call vote. Mayor Gaasch asked if there were any questions on the claims. There being none, Councilor Pulford moved and seconded by Councilor Dains to approve the claims totaling $108,896.52. Motion carried unanimously on a roll call vote. Consent Councilor Dains moved and seconded by Councilor Grove to approve the Consent Agenda thereby approving the 2021 garbage hauler licenses and acknowledging the February financial report. Motion carried unanimously on a roll call vote. Informational Presentations/Reports A. City Council Updates Mayor Gaasch spoke to the Ramsey County League of Local Governments initiative on mental health awareness which is of utmost importance right now. Gaasch continued to say that she attended a Regional Council of Mayors meeting dealing with racial equity in cities. Discussion/Action Item A. Develop Plans for and Authorize Bidding on the 2021 Seal Coating Project The Council authorized the city engineer to bid the sewer lining project and the bids came back higher than expected. The preliminary understanding was that lining materials were impacted by the Texas storms. The City has 60 -days to decide whether to award the project. Staff are waiting for other projects to be bid to see if the outcome is the same. The shortages are expected to be short- term. If that is the case, we may iebid the project and push back implementation to fall/winter. LAUDhRDALF CITY COUNCIL MF',Fi,TING MINUTF,S HELD REMOTELY VIA ThLFi;CONFEREI\CE, Page 2 of 3 April 14, 2021 However, seal coating bids were corning in better than expected. The spring thaw shows that the streets need patching and a new wear surface The city engineer outlined the process and timeframe for the work. The Council may authorize the design, approval of plans, and the bidding process, with bids due May 19 for summer construction. The funds for the pioject are in the Street Project Fund (Fund 403) but would be augmented by the allocation of excess General Fund money to the Street Fund. Councilor Pulford made a motion to approve the plans and authorize bidding of the 2021 seal coating project. This was seconded by Councilor Dains and carried unanimously on a roll call vote. B. Renewal of Municipal Separate Storm Sewer System (MS4) Permit Staff reviewed the draft MS4 Peimit completed by storm water engineers at Stantec. Staff will submit to the MPCA by the April 15 deadline. C. Resolution No. 041321A — Depositing hxcess Unreserved Fund Balance in the Street Improvement Fund The City has "excess" funds in the general fund at year end relative to the 2021 operating budget. This hasn't happened since 2016 and is the result of a variety of factors related to Covid-19. We had more expenses in some ways and less in others. Historically, the City Council has transfeired this money to capital improvement funds. This has been the primary tool for saving foi capital projects and purchases. The resolution transfers the funds to Fund 403, the Street Project Fund to help pay foi the proposed seal coating project this year. Councilor Pulford made a motion to adopt Resolution 041321A - A Resolution Depositing the hxcess Unreserved Fund Balance in Capital Improvement Funds. This was seconded by Councilor Dains and carried unanimously on a roll call vote. D. Goal Setting for 2021-2022 Due to the pandemic, Council and staff did not track progress in meeting objectives we set for ourselves in 2020. As we close the books on last yeas, and begin to receive information on the opportunities and obligations of the American Rescue Plan Act (ARPA), staff believe it's time to revisit those goals. In spite of COVID-19, a number of priority projects were completed. Some items are on-going and left on oui list to spark discussion. Some items are daunting to undertake on a small budget but the new ARPA might allow us to get over that hurdle. Council and staff worked through the list and added to it. A final copy will be distributed. Additional Items A. Grounds Services Agreement with Joe Sax Lawn Service LAUDERDALE CITY COUNCIL MEETING MINUTES HELD REMOTELY VIA TELECONFERENCE Page 3 of 3 April 14, 2021 Staff received pricing information from Joe Sax for grounds services this summer. Last year Joe Sax and 8t1' Day Landscaping did finish work for us. This year, staff want to bring that under one contract. This contract, in part, makes up for not hiring seasonal staff. Councilor Pulford made a motion to approve the contracting agreement with Joe Sax Lawn Service to perform grounds services in 2021. This was seconded by Councilor Moffatt and carried unanimously on a roll call vote. Set Agenda for Next Meeting The April 28 council meeting may include the March financial report, the quarterly investment report, public works management software, an audit presentation by Abdo, Eick, and Meyers, and the 2020 annual report from Police Chief Mangseth. Work Session A. Community Development Update Butkowski stated that the follow-up vaccination clinic took place at City Hall on April 12, street sweeping will take place at the end of April, Rich Hinrichs is performing restoration work on the baseball fields in the Community Park, and staff are waiting for the list of Lauderdale high school graduates so we can recognize them as we did last year. B. Opportunity for the Public to Address the City Council Mayor Gaasch opened up the floor to anyone in attendance interested in addressing the Council. There being no people interested in speaking, Mayor Gaasch closed the floor. Adjournment Councilor Dains moved and seconded by Councilor Grove to adjourn the meeting at 8:14 p.m. Motion carried unanimously on a roll call vote. Respectfully submitted, Miles Cline Deputy City Clerk To: From: Meeting Date: Subject: CITY OF I AUDERDALE LAUDERDALE CITY HALL 189 1 WALNUT STREET LAUDERDALE, MN 55113 651-792-7650 651-631-2066 FAX Request for Council Action Mayor and City Council City Administrator Apiil 27, 2021 List of Claims The claims totaling $19,656.37 are provided for City Council review and approval that includes check numbers 27385 to 27400. Accounts Payable Checks by Date -Detail by Check Date User: Printed: MILES.CLINE 4/22/2021 12:50 PM Check No Vendor No Vendor Name Invoice No Description Check Date Reference i Check Amount ACH 34 AFSCME MN Council 5 PR Batch 50800.04.2021 Union Dues ACH 43 ACH 44 ACH 45 ACH 46 27385 25 042021 27386 65 17451393 27387 184 4075908921 4075908921 4081206755 4081848373 04/16/2021 PR Batch 50800.04.2021 Uni( Total for this ACH Check for Vendor 34: Public Employees Retirement Association PR Batch 50800.04.2021 PERA Coordinated PR Batch 50800.04.2021 PERA Coordinated 04/16/2021 PR Batch 50800.04.2021 PER PR Batch 50800.04.2021 PER Total for this ACH Check for Vendor 43: Minnesota Department of Revenue PR Batch 50800.04.2021 State Income Tax 04/16/2021 PR Batch 50800.04.2021 Stab Total for this ACH Check for Vendor 44: ICMA Retirement Corporation PR Batch 50800.04.2021 Deferred Comp PR Batch 50800.04.2021 Deferred Comp 04/16/2021 PR Batch 50800.04.2021 Def( PR Batch 50800.04.2021 Deli Total for this ACH Check for Vendor 45: Internal Revenue Service PR Batch 50800.04.2021 Federal Income Tax PR Batch 50800.04.2021 FICA Employee Portio PR Batch 50800.04.2021 Medicare Employee Pc PR Batch 50800.04.2021 Medicare Employer Po PR Batch 50800.04.2021 FICA Employer Portio County of Ramsey 5 Recording Fees Allstream Inc. Fax Line Cintas February Uniforms February Uniforms April Uniforms April Uniforms 04/16/2021 PR Batch 50800.04.2021 Fed( PR Batch 50800.04.2021 FIC. PR Batch 50800.04.2021 Med PR Batch 50800.04.2021 Med PR Batch 50800.04.2021 FIC. Total for this ACH Check for Vendor 46: 04/16/2021 Total for Check Number 27385: Total for 4/16/2021: 04/27/2021 Total for Check Number 27386: 04/27/2021 214.24 214.24 1,056.10 1,218.58 2,274.68 690.57 690.57 1,080.05 1,734.26 2,814.31 1,862.93 1,188.86 278.07 278.07 1,188.86 4,796.79 230.00 230.00 11,020.59 53.40 53.40 5.52 5.51 11.03 11.03 AP Checks by Date - Detail by Check Date (4/22/2021 12:50 PM) Page 1 Check No Vendor No Invoice No Vendor Name Check Date Description Reference Check Amount 27388 327 IN21040065 27389 192 120438154 27390 25 RISK -002103 27391 19 86630 27392 31 160524 27393 185 042021 042021 042021 27394 30 340506 27395 307 TU00958-IN 27396 5 619861-03-21 27397 91 042021 27398 90 9876651674 9876651674 9876651674 Total for Check Number 27387: CleanRiver Recycling Solutions 04/27/2021 Trash/Recycling Receptacles for Community Par Total for Check Number 27388: Comcast Holdings Corporation 04/27/2021 March Internet County of Ramsey PR Batch 50800.04.2021 Long Term Disability PR Batch 50800.04.2021 Life Insurance PR Batch 50800.04.2021 Short Term Disability April Insurance Processing Fee Total for Check Number 27389: 04/27/2021 PR Batch 50800.04.2021 Lon. PR Batch 50800.04.2021 Life PR Batch 50800.04.2021 Shoi Total for Check Number 27390: Ehlers and Associates Inc 04/27/2021 1795 Eustis Redevelopment Total for Check Number 27391: Kennedy & Graven Chartered 04/27/2021 March Legal Advice Lauderdale Certified Auto Repair Inc March Fuel March Fuel March Fuel League of Minnesota Cities MN Cities Stormwater Coalition Contributions NESCO LLC Plow Repairs Premium Waters Inc March Water Bottles Suburban Ace Hardware Key Copy Verizon Wireless March Cell Phone March Cell Phone March Cell Phone Total for Check Number 27392: 04/27/2021 Total for Check Number 27393: 04/27/2021 Total for Check Number 27394: 04/27/2021 Total for Check Number 27395: 04/27/2021 Total for Check Number 27396: 04/27/2021 Total for Check Number 27397: 04/27/2021 33.09 3,569.70 3,569.70 413.00 413.00 94.47 295.06 64.67 25.00 479.20 73.75 73.75 666.00 666.00 54.66 255.08 54.66 364.40 420.00 420.00 1,011.20 1,011.20 20.49 20.49 2.59 2.59 16.95 33.90 16.95 AP Checks by Date - Detail by Check Date (4/22/2021 12:50 PM) Page 2 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount 27399 7 8813172-0500-6 27400 74 726212811 726223872 726548391 726579364 726579364 726579364 726595659 726728052 726728052 726728052 726728052 Waste Management Inc May Public Works Xcel Energy Larpenteur Bridge Lights 2430 Larpenteur Avenue March Street Lighting 1891 Walnut Street 1795 Eustis Street 1891 Walnut Street Larpenteur Avenue 1885 Fulham Street 1917 Walnut Street 1885 Fulham Street 1917 Walnut Street Total for Check Number 27398: 04/27/2021 Total for Check Number 27399: 04/27/2021 Total for Check Number 27400: Total for 4/27/2021: Report Total (21 checks): 67.80 464.03 464.03 31.92 14.98 421.87 140.05 45.06 136.47 50.33 30.65 37.99 35.80 52.01 997.13 8,635.78 19,656.37 AP Checks by Date - Detail by Check Date (4/22/2021 12:50 PM) Page 3 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent X Public Hearing Discussion Action Resolution Work Session Meeting Date April 27, 2021 ITEM NUMBFR March Financial Report STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Every month, staff provide the Council with an updated copy of the city's finances. Follow- ing are the revenue expense and cash balance reports for March 2021. OPTIONS: STAFF RECOMMENDATION: By approving the consent agenda, the Council acknowledges the city's financial report for March 2021. General Ledger Cash Balances User: heather.butkowski Printed: 4/22/2021 12:48:32 PM Period 03 - 03 Fiscal Year 2021 Description Account Beg Bal MTD Debit MTD Credit Current Balance Cash Change Fund Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cui rent Assets Petty Cash Petty Cash 101-00000-000-10100 101-00000-000-10300 226-00000-000-10100 227-00000-000-10100 305-00000-000-10100 306-00000-000-10100 401-00000-000-10100 403-00000-000-10100 404-00000-000-10100 414 00000-000-10100 416-00000-000-10100 602-00000-00040100 603-00000-000-10100 101-00000-000-10200 Investments - Fair Value 101-00000-000-10410 Adj Investments Grand Total -2,873,221.49 100.00 12,416.14 66,360.36 14,314.27 111,391.76 159,776.22 446,282.87 486,243.41 366,460.50 93,964.51 998,384.03 436,172.11 318,644.69 300.00 300.00 3,526,497.51 3,526,497.51 3,845,442.20 268,542.32 0.00 780.94 5,827.94 4.59 38.42 55.11 7,217.65 121.48 126.40 0.00 46,852.34 14,055.86 343,623.05 0.00 0.00 1,221.13 1,221.13 344, 844.18 126,505.73 0.00 1,429.30 8,552.90 1,000.00 0.00 0.00 2,098.00 134,060.00 0.00 0.00 20,428.16 10,385.17 304,459.26 0.00 0.00 250,000.00 250,000.00 554,459.26 -2,731,184.90 100.00 11,767.78 63,635.40 13,318.86 111,430.18 159,831.33 451,402.52 352,304.89 366,586.90 93,964.51 1,024,808.21 439,842.80 357,808.48 300.00 300.00 3,277,718.64 3,277,718.64 3,635,827.12 GL - Cash Balances (04/22/2021 2:48 PM) Page 1 % ExpendCollect YTD Balance Current Period O N CCCOrn O 0 CDet00 0 et VDN CT 0 N O O H O V) .-I V7 O O N kr; 1-4 O p e -i 1 O 1 CV r+ N N O OOOCn CT p N O V'1 O O M Vl O 7 • N 0000 N 00 0 N le OO N O N OO CT CV V) O cn un CTM lit) .--ANN rmi O OOONQ) OI N O V)O O\O V) p er. 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[t Cl vD 00 C\ O O r-1 YTD Balance Current Period • M N N • 41 r V1 CV<7 CN ITT M 00 irk • N tin 00 CY 4lo 't O vl ti N H CN 00 rP to O Vl • Cl '-1 GD 7 N'O O C\ 00 00 00 O N N tO t 1 41 CN O O\ M C\ 00 00 M N 00 !NI '1-4"11.,1 Description az Jiftmo Z O Alwa O 0 En'E® O l0 al Fei O a ti GL - Revenue vs Expense (04/22/2021 - 12:49 PM) LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion Action Resolution Work Session Meeting Date April 27, 2021 ITEM NUMBER 2020 Police Report STAFF INITIAL \\tb APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Chief Jon Mangseth will be at the meeting virtually to present the annual police report. If council members have questions in advance of the meeting, I can send them to him so he can be prepared to answer. OPTIONS: STAFF RECOMMENDATION: St Anthony Annual Report 4/26/2021 2020 Lauderdale Police Department Annual Report Jon Mangseth Police Chief ctya Lives e-a,Ie n1 a.�..( 5.7•t I at -Ma. t .n. rs 35111 T... sir en r it w..1 *mama !t. iialay 7.a. ten -..e t Oa.. nI •>.talte aor-sip tar: 7 �...._..R..—.— .-..,.,m.a.N, •rfor -v..+,.._....- et sa< Police Department ANNUAL REPORT! Department Summary Department Strength • 20 - Full Time Police Officers (4 contract) • 14 -Volunteer Reserve Officers • 1 - Full Time Community S ervice Officer • 2 - Full Time Civilian S upport Staff Department Fleet • 6 - Marked Squads • 1 - Marked Reserve Unit • 1 - Marked CSO Unit • 5 - Unmarked Units 1 St Anthony Annual Report 4/26/2021 Lauderale Part 1 Crimes 40 35 - 30 - 25 20 - 15 - 10 5 0 ❑Murder ❑Rape o Robbery 38/: 2019 13 38 0 1 0 2020 0 0 2 OAgg Asti ■Burglary 2 10 ❑Theft 38 ®MV Theft 6 ['Arson 0 1 13 38 6 0 oMurde r ❑Rape ❑Robbe ry oAgg Aslt o Bur& o ry ()Theft Df.1V Theft °Arson ST, ANTHONY POLICE Lauderdale Part 11 Crimes 12 10 2019 11 2020 oAssaults °Property Damage 7 3 O Forgery 0 11 10 0 oDOC 4 D Liquor 1 5 0 °Weapons 1 1 D Drugs 8 5 OAssau!ts nProrperty Myna go ororgory °DOC °liquor DWeapons °Drugs yt ANTHONY rS POLICE 2 St Anthony Annual Report 4/26/2021 Calls for Service 3000 2500 2000 1500 1000 500 0 Calls for Service 2637 2279 I 2145 2018 2019 2020 Ca'is fir Serrce Cats for Service ST,RATHOiy • ep, , POLICE Patrol Review • 836 Stops for Moving 561 Speeding 8 Stop Sign 45 Semaphore • 113 Parking Violations • 243 Traffic Arrests • 31 DWI Arrest g[. ANTHONY { ; POLICE 3 St Anthony Annual Report 4/26/2021 Investigation Review • Total Criminal Cases 129 • Total Cases Cleared 57 • Total Cases Cleared by Arrest 46 • Total Cases Cleared by Other 11 CLEARANCE RATE 44% 5t, AN,[HONY 11) POLICE Education Summary • The Police Department completed 1932 hours of training Training included: Annual Post License Requirements 21% — Crisis/Conflict/Community Diversity 24% Department Policy 20% OSHA 12% Elected 14% — SWAT/Negotiator 9% Provide continued professional development, enhance safety of officers and community & foster unity of purpose and cooperation with the community St Anthony Annual Report 4/26/2021 Police Reserves Although the program was put on hold for several months due to COVID-19, members still logged over 500 hours in 2020. • Patrolling parks, schools, business & neighborhoods • Assisted with traffic control • Assist with transports as needed • Continuing to recruit for new reserves officers. sts IIxtfOKy O POLICE Social Media Social Media Team: Officers use social media as a method of effectively informing the public about department services, issues, investigations and other relevant events. 3 different social media platforms are managed by 4 officers. Views have increased over the past year. Two of the most viewed posts involved an update on a lost animal and when we thanked our essential workers. The most notable Twitter increase has been the Virtual Ride Along. vilj :1_Poor3s ••• IRD)ATr_ Th, As 11•142 t•» • N }» rnthet .',-om::accntc.:ve, htr fs rat t.- }i4] til f t611 01161.3 Y .oa ee,g 011f1•rcr A:`ck- :'C 1.1. : yr, ANTI4O,yp'. •. t POLICE 5 St Anthony Annual Report 4/26/2021 Community Engagement • Engagement programs were planned, but cancelled due to C OV I D-19 . • Team focuses on: Developing relationships with the community Informing the community related to the department, police work and crime Educating the community Increasing transparency Earning trust 0, !tT !ON POLICE Community Engagement • Team meets quarterly to plan events, establish goals and objectives • The team also manages the social media account • Intend to work with CTV to produce video contact that will be broadcast for CTV and social media yt,AHTHOkr Wit POLICE 6 St Anthony Annual Report 4/26/2021 Body Worn Camera Program • Second full year of the BWC Program All officers and CSO wear cameras • Video often disseminated to county and city attorney's as part of a criminal complaint • Videos are reviewed as part of all use —of -force incidents • Videos are utilized in any alleged officer misconduct • Monthly internal compliance checks to ensure they are being utilized according to policy Progress Report Worked with Ramsey Co Attorney's Office and LE Partners on creating and implementing officer training based on protocols for investigating sexual assault Continued to send personnel through MN POST Board approved 40 hour Crisis Intervention Team (CIT) Training Program — Continue to review and explore training that emphasized officer skill development area associated to mental health concerns, de-escalation strategies and community relations All officers completed League of MN Cities, MN POST Board approved 2020 Patrol Online training for officers Continued to focus on data driven strategies that focus on identified technical assistance priorities within strategic plan 7 St Anthony Annual Report 4/26/2021 Progress Report alMa Added Officer Wellness component to the department strategic plan goals and objectives Review employee evaluation content and process Created a new documentation and reported tool for implementation in 2021 Continued to meet expanding training needs of officer staff for proper coding and report for the new NIBRES Crime Report System. Implemented the use of Business Watch International (BWI) a national database of pawn records Implemented the use of ProTechDNA which is an APP for residence to mark their property (replacing operation ID program) What's On Deck Continue training and employee development related to the department Continue to send personnel through the MN POST Board approved Crisis Intervention Training. Long term goal to have all officers certified. Continue to review and explore training that emphasizes officer skill development associated with mental health, de-escalation and community relations Continue to review, implement and potentially expand community engagement initiates Create an interface that allows the automated transfer to digital media to the Ramsey County Attorney's office an city attorneys Maintain membership with city wide involvement in Government Alliance on Race and Equity yr, ANTNONY POLICE 8 St Anthony Annual Report 4/26/2021 Stay Connected — Updates provided via the Lauderdale website Email us at police(ahsavmn.com — Attend future Open Houses and other community meetings — Call us at 612-782-3350 to arrange for a meeting via phone or in person ciati POLICE 9 City of Lauderdale 1891 Walnut Street Lauderdale, Minnesota 55113 This is a summary of the activities and development of the St. Anthony Police Department over the past year. This report includes an executive summary, patrol review, investigative review, crime prevention efforts, crime statistics, and a variety of other police department details Police Department ANNUAL REPORT 2020 r Erq City of Lauderdale 1891 Walnut Street Lauderdale, MN 55113 Table of Contents I. Message from the Chief 1 II. COVID Response 4 III. Department Summary 7 IV. Crime Statistics 8 V. Patrol Review 13 VI. Investigation Review 16 VII. Administration Review VIII. Police Education Summary IX. Police Reserve Summary X. East Metro SWAT Summary XI. Social Media XII. Community Engagement Summary 19 20 23 21 25 27 XIII. Body Worn Camera Program ...33 XIV. In the Mailbox 35 XV. 2020 Accomplishments 36 XVI. 2021 Work Plan ..38 2020 Annual Report • Police Departfnent • Lauderdale, Minnesota I. Message from the Chief HONORABLE MAYOR, CITY COUNCIL, CITY ADMINISTRATOR AND CITIZENS OF LAUDERDALE: Each year has its defining moments, but how could we have predicted what the year 2020 brought to our attention. From global health pandemic, to civil unrest, to calls for political change and calls for reform and defunding the police, we have all had to weather countless challenges. We began the 2020 calendar year focused on city goal setting, along with furthering goals and objectives housed on our police department strategic plan. As a public safety agency, the St. Anthony Police Department (SAPD) sought to continue to work closely with other city service providers, and our community, to provide a safe place to live, work and play. However, we were soon alerted to an unheard of threat to the well-being of our residents, as communities across the nation, and the world, began efforts in addressing the coronavirus (COVID-19) pandemic. Since then, our front line workers and city services providers have been in an evolving state of adjusting practices and procedures to ensure the safety of our staff and members of the public in accordance with recommendations from the Minnesota Department of Health (MDH), Centers for Disease Control (CDC) and World Health Organization (WHO). This, in addition to remaining focused on the delivery of all day to day city services. I want to express that the SAPD has and will remain committed to community building and increasing both public trust and department transparency. I remain encouraged by the positive effects that a body -worn camera policy and implementation program has had on community relations, and specifically as it relates to a reduction in use -of -force interactions and officer complaints. We consider a body worn camera program as a great tool to more effectively resolve citizen complaints when they are received. As stated on numerous occasions, our officer's wanted Body Worn Camera's (BWC) and they are willing to wear BWC's. Our department provides all police officers with annual training in the use -of -force, which involves a thorough review of Federal and State law, local ordinances, case law, and department policy. Similar reviews take place periodically, throughout the calendar year, at the discretion of patrol supervisors. Additionally, the Minnesota P.O.S.T. Board mandates yearly 1 IPage 2020 Annual Report • Police Department • Lauderdale, Minnesota training for each active peace officer and training records must be maintained by the employing agency, which document compliance. The instruction must be based on learning objectives developed by the P.O.S.T Board and reflected in our department policy. Yearly audits are completed by the P.O.S.T. Board to assure agency compliance. All of our officer's receive on-going training cored in evidence -based police de-escalation trainings. Officers receive training involving Crises Intervention Team Training (C.I.T.) and Integrating Communications, Assessment, and Tactics (I.C.A.T). All officer's complete yearly training in Procedural Justice and Fair and Impartial Policing and research suggests that by increasing public cooperation, the procedural approach to community interaction may enhance the safety of both law enforcement officers and the communities we serve. As a former nationally certified use of force and defensive tactics instructor for this agency, I affirm that throughout my 26+ year career with this police agency, we have always mandated that police officer's document all Police Use of Force and subsequent De -Escalation. In the spirit of community building and increasing public trust and transparency of the department, we have made our entire 1,255 page police policy manual available to the public. To review this document, please visit https://savmn.com/415/Transparency-Data-Sharing and select policy manual. As public servants, policing requires us to have thousands of interactions with the public and the community we serve. We will aim to establish connections with all cornmunity members and rely on positive relationships to solve issues. We are mindful that policing involves a special trust given to us by the public to uphold and enforce the law. Often times, these contacts are during times of crisis and distress and can unfold rapidly and in unforeseen directions. As rooted in policy, we will direct our response towards being fair in processes, transparent in actions, while providing opportunity for voice, and remaining impartial in decision making. Police departments across the nation are indeed listening and reforming their policies to reduce officer use of force by enhancing their training to focus more on de-escalation tactics, while engaging training and resources grounded in mental health initiatives. Whether this will successfully change the perception of police officers from one of warriors to one of guardians is yet to be known. What I can offer is background related to what we have done and how we are continuing to equip our officers to perform with a service mindset. That said, we will focus on serving our community by strictly adhering to our Mission, Vision and Policy, which directly influences our 2 IPage 2020 Annual Report • Police Department • Lauderdale, Minnesota training, hiring and delivery of services. We will continue to build a culture that emphasizes a service mind set. I remain encouraged by the actionable steps being taken to further goals pertaining to increasing community partnerships and inclusion, enhancing professional development, strengthening employee wellness and strengthening the accountability process, as cited in the quarterly 2020 Chief Newsletter Updates. Additionally, I am encouraged by the strides being made to encourage discussion and action in the areas of employee wellness and mental health in both the public and private sectors. I am thankful for the commitment displayed by our personnel, leadership and elected officials as we work to enhance the services that we are able to provide in our community. The sections of our annual report are authored by multiple members of our staff, each with individual skill sets and communication style. This is intentional, to allow readers the opportunity to hear from multiple members of the police department. As Police Chief, I am very proud of our police department and every member of our agency. I am confident that together we can continue to work towards making our agency and community a better place to live, work and play. 3 IPage 2020 Annual Report • Police Department • Lauderdale, Minnesota II. COVID Response As a public safety agency, the St. Anthony Police Department (PD) worked closely with other city service providers and our community to provide a safe place to live, work and play. As communities across the nation and the world focused efforts in addressing the coronavirus (COVID-19), our PD adjusted practices and procedures to ensure the safety of our staff and members of the public in accordance with recommendations from the Minnesota Department of Health (MDH), Center for Disease Control (CDC) and World Health Organization (WHO). We looked to these resources, as well as resources found within law enforcement, fire and emergency management organizations to communicate information, both internally and externally, about the pandemic. MODIFIED POLICING SERVICES DURING COVID-19 Officers continued to respond to all calls for service, while adhering to social distancing practices when practical. As we monitored this situation and made note of ever-changing recommendations from health experts, we continued adjusting in-person services. Residents ultimately encountered situations where low -priority calls were handled over the telephone or through a self -reporting form, in lieu of in person contact. We asked those in our service area to remain aware that these are temporary measures as we worked with healthcare partners, local first responders and emergency management partners, in serving our communities. The following PD services were temporarily suspended during COVID-19: • Citizen fingerprinting. • Citizen use of the PD facility for groups/meetings. • Citizen ride -along events. • Public tours of the PD facility. • Group events at the police department (Girl Scouts, Boy Scouts, etc.) 41 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota We endeavored to remain committed to working cooperatively and innovatively to address the challenges encountered by this viral illness and asked our residents to engage in community hygiene practices as noted in guidelines set forth by the CDC and MDH. Efforts made by our police officers and City staff to monitor compliance related to social distancing, among other orders issued through the Office of the Governor, focused primarily on education, with no enforcement action having to be taken. Our entire staff remained encouraged by the support received from our residents during the time we were obliged to adhere with the Governor's executive orders, direction and recommendations. STAYING CONNECTED AND SHARING GOOD NEWS Our Community Engagement Officers along with our entire staff have put a considerable amount of time and consideration into content for our social media platforms in an effort to stay connected and provide up- to-date information to those in our service area. As a result, our online impact and following has increased. Recently, Lt. Diegnau responded to a call where he and the St. Anthony Village Fire Department (FD) personnel rescued several baby ducks from a storm drain. Lt. Diegnau became aware that a citizen had taken photos of the activity and asked for copies. Those photos were then sent to Officer Rushton who posted them on Facebook. KARE-11 saw the post and highlighted it during their evening newscast. This small yet thoughtful act reflected well on every member of our PD and FD that responded to that call for service. WE VALUE OUR STAFF Not surprisingly, the pandemic created additional stress beyond the traditional levels felt by our staff. A national study reported that the two greatest sources of increased stress among front line workers and first responders were (1) fear of infecting family members or loved ones with the virus and (2) increased enforcement of restrictions on the public. As our first responders navigated the challenges of the pandemic and other trends, the mental and physical well-being of our personnel and their families remained important. We attempted to remain vigilant about monitoring the physical health of staff members during the pandemic, 51Page 2020 Annual Report • Police Department • Lauderdale, Minnesota and attempted to remain mindful to take equal care to monitor the mental health of personnel as stress levels rose as challenges related to the pandemic wore on. WE VALUE OUR COMMUNITIES We want to acknowledge the tough decisions and sacrifices that everyone has had to make in order to protect the health of our community and limit the spread of the COVID-19 virus. As previously stated, our entire staff remained encouraged by the support received from our residents during the time we have been obliged to adhere with the Governor's executive orders, direction and recommendations. Please be assured that our modified level of service will not become the new normal for our agency. We will return to the high-level of personal customer service that we strive to provide as soon it is allowed and safe to do so. 6 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota III. Department Summary The following pages consist of annual statistics, activities, crime reports, investigations, use of resources, and other initiatives during the year starting January 1, 2020 and ending December 31, 2020. DEPARTMENT AUTHORIZED STRENGTH Twenty full time police officers. Four of these officers are employed due to revenues received from our contract city of Lauderdale. • 7 volunteer reserve officers (authorized for 14) • 1 full time community service officer • 2 full time civilian support staff Police Detective Tim Briski announced his intention to retire from the police department June 1st, 2021, with thirty three years with the department as a sworn officer. Officer Braden McNair began employment as a frill time police officer with this agency. Officer Michael Milbrandt deployed, with his MN National Guard Unit, for a one year overseas mission. In June 2020, Elizabeth Villanueva successfully completed her first year with the department, serving in the position of Community Service Officer. ST. ANTHONY POLICE DEPARTMENT BUDGET Total budget for the year 2020, including revenues from our contract city was, $3,463,212. ST. ANTHONY POLICE FLEET • 6 — Marked Squads • 1— Marked Reserve Unit • 1 — Marked CSO Unit • 5 — Passenger vehicles assigned to Chief, Captain, Detective and special detail. • Total 1 Units • 7IPage 2020 Annual Report • Police Department • Lauderdale, Minnesota IV. Crime Statistics LAUDERDALE - PART I AND PART II CRIMES PART 1 Murder Rape Robbery Agg Assault Burglary Theft MV Theft Arson 2020 0 0 2 1 13 38 6 0 2019 0 1 0 2 10 38 6 0 +/- 0 -1 +2 -1 +3 0 0 0 PART II Misd. Assaults Property Damage Forgery DOC Liquor Weapons Drugs 2020 11 10 0 5 0 1 5 2019 7 3 0 4 1 1 8 +/- +3 -12 0 -5 -1 0 -3 *Not inclusive of all Part II Crimes 81 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota PART I AND II CRIMES OVER THE PAST FIVE YEARS 2016 Part I 37 Total 94 Overall Clearances 59% Part II 57 2017 Part I 29 Total 103 Overall Clearances 68% Part II 74 2018 Part I 71 Total 158 Overall Clearances 46% Part II 87 2019 Part I 57 Total 119 Overall Clearances 50% Part II 62 2020 Part I 60 Total 129 Overall Clearances 44% Part II 69 Average Part I and Part II clearance rates for Hennepin County in 2014 was 37% Average Part I and Part II clearance rates for Ramsey County in 2014 was 34% Part I Crimes increased by 3 in 2020 Part II Crimes increased by 7 in 2020 9IPage LAUDERALE PART I CRIMES 40 - 35 - 30 - 25 - 20 - 15 - 10 - 5 0 2020 Annual Report • Police Department • Lauderdale, Minnesota 2019 13 2020 38 ❑ Murder ❑ Rape ❑ Robbery ❑Agg Asit ❑ Burglary ❑ Theft ❑ MV Theft ❑ Arson 0 0 ■ Murder 1 0 ■ Rape 0 2 ■ Robbery 2 1 ■ Agg Aslt 10 13 • Burglary 38 38 ■ Theft •MV Theft 6 6 0 0 ■ Arson ❑ Murder ❑ Rape ❑ Robbery ❑Agg Asit ❑ Burglary ❑ Theft ❑ MV Theft ❑ Arson 2020 Annual Report • Police Department • Lauderdale, Minnesota LAUDERDALE PART II CRIMES 12 10 - 8 6 4 2 2019 2020 7 ❑ Assaults ❑ Property Damage ❑Forgery ❑ DOC ❑ Liquor ❑ Weapons ❑ Drugs 11I.Page Assaults 7 11 ■ Property Damage 3 10 • 0 0 o Forgery 4 5 ■ DOC 1 0 • Liquor 1 1 ® Weapons 8 5 ■ Drugs 7 ❑ Assaults ❑ Property Damage ❑Forgery ❑ DOC ❑ Liquor ❑ Weapons ❑ Drugs 11I.Page 2020 Annual Report • Police Department • Lauderdale, Minnesota OTHER CALLS/INCIDENTS OF INTEREST IN 2020 Total Calls for Police Service 2141 Calls for Service 3000 4-'- 2000 1.50( 1000 500 0 2279 2018 J Domestics 16 Disturbance Calls 37 Suspicious Person/Vehicle 99 Medical 95 Juvenile Runaway 0 Permits to Purchase Handgun 30 2637 2019 ■ Calls for Service 2141 2020 Underage Drinking Arrest Disorderly Conduct DWI False Alarms Juvenile Tobacco Use Calls for Service 1 6 9 33 1 121 Pa ge V. Patrol Review 2020 Annual Report • Police Department • Lauderdale, Minnesota PREPARED BY SERGEANT MARK DOKKEN Patrol is the foundation of the law enforcement profession. The men and women of the St. Anthony Police Department serve the community each day with honor, integrity, and courage. The enforcement of laws and response to emergency calls are only the beginning of what a patrol officer is responsible for on a daily basis. St. Anthony patrol officers are committed to building relationships within the community and working collaboratively with our residents to provide a safe and vibrant community. Though patrol shifts are never routine, the year 2020 brought some unique challenges to our patrol division. A global pandemic, civil unrest, and divisive political elections thrust our patrol officers into functions not previously conducted. Officers worked feverishly to thwart looting and damage during periods of unrest, educated on and encouraged compliance with several statewide Executive Orders, and kept the peace and returned calm to a community uncertain of the future. Though some of these challenges are ongoing, the unwavering commitment of our patrol officers and overwhelming support from our community has provided optimism for a better 2021. Despite the challenges faced in 2020, the patrol division continued with their commitment to community by "patrolling with a purpose." St. Anthony patrol officers pride themselves with a patrol strategy based on data driven facts, recent crime trends, and citizen complaints. This strategy keeps us aligned with our department's overall strategic plan, while adhering to our mission and vision statement. Robbery Assault 2019-0 2019- 9 2020 - 2 2020 12 Criminal Damage to Property Theft 2019 — 3 2019 — 44 2020 -10 2020 — 44 131 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota Domestic Disturbance 2019 -- 14 2020 - 16 One of the most frequent citizen complaints the patrol division receives are reports of aggressive driving. This year, many communities throughout the Minneapolis/St. Paul metropolitan area reported a large increase in sheet racing and dangerous driving behavior. St. Anthony patrol officers worked vigorously to preserve motorist and pedestrian safety by conducting directed patrols that focused on deterring these aggressive drivers. Patrol officers also participated in several weekend collaborative patrols with neighboring agencies that focused on street racing in and around St. Anthony / Lauderdale. Below are 2020 statistics related to traffic violations that most frequently generate concerns from our community members and increase the likelihood of crashes and injures on our roadways. We are committed to our traffic safety objective and the safety of our community: 2020 St. Anthony Traffic Safety Patrol Statistics 1000 500 0 836 113 8 45 4 Jaw "how 31 ;Iv co ea ta co -ccs <>. g ,<,,, oC\ <>-* ci\ \.• 6\ - ,c.Noce \' N'<i> er 4410 g 44~0 4\0 . \O 4\O o����o • s9r e�4�ti� ��o �� 4. ;cos coe5 co\das One of the members of the St. Anthony Police Patrol Division proudly serves in the United States Army National Guard. In June 2020, Officer Mike Milbrandt was deployed for a year to Africa. Though his presence has been deeply missed, we are proud of his service to country and look forward to a safe return. 14 !Page 2020 Annual Report • Police Department • Lauderdale, Minnesota In July, the St. Anthony Police Department welcomed a new Officer to the patrol ranks. Officer Braden McNair was a long time member of our Reserve Program and served a short stint as a Police Officer with the City of Blaine. I am pleased to report that Officer McNair is excelling in his new role and has been a welcomed addition to our agency. Though nobody can predict the challenges that lie ahead in 2021, I'm confident that the patrol officers of the St. Anthony Police Department will once again rise to the occasion and continue to forge forward with optimism and a deep sense of loyalty to our corn 15 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota VI. Investigation Review PREPARED BY CAPTAIN JEFF SPIESS The St. Anthony Police Department Investigations Division has been hard at work again in 2020. The team is supervised by Captain Jeff Spiess, who has served in this role since being promoted to Captain in 2016. Detective Tim Briski has served as the lead detective since 1999 and has an overall 32 years of service as a police officer with the department. Detective Briski's tenure as an officer and detective brings a wealth of knowledge and experience to the position and he has been a valuable asset. As a department and investigative team, we are committed to not only increasing our knowledge and learning from new perspectives, but also providing for career enrichment and learning opportunities for all of our officers. One way we accomplish this goal is through our rotating investigator position. Each year, patrol officers are able to bid a three month period with the investigations team, where the officer serves in the role of a detective. This is not only vital to a well-functioning investigative team, but it also has proven to be a very valuable tool for the officer to bring back to patrol. In 2020, Officers Schlingman, Erdman, and Rushton served as detectives and successfully helped to solve and detect crime, while also bringing a new and fresh perspective to the team. In a smaller police department in a large metro area, it is imperative that all officers act in the role of an investigator. Often, the solvability of a crime hinges on the early work of the first officers on scene and we are proud to say that all of our officers have embraced this role. Officers routinely take witness statements, gather evidence, interview suspects, and take a case well into the investigative stage before handing it off to the investigative team. Our officers have the training, skills, and confidence to do so and know that a successful resolve for victims of crime often depends on them. Another important aspect of solving crime is the proper collection, handling, inventorying, storage and transferring of evidence. While all of our officers are trained in the techniques of evidence collection and handling, we have one officer who has specialized and on-going training to manage and coordinate the large amount of property and evidence that our department receives on a daily basis. Officer Moore has served in the role of Evidence Technician since 2016 and is certified as an Evidence Specialist through the International Association of Property and Evidence. This assignment requires Officer Moore to wear many different hats. Not only does he ensure that all property and evidence is handled according to 161 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota statutory requirements and department policy, the requirements of city and county attorneys, and according to professional standards and best practices, but he also works with officers on an individual basis to provide guidance and updates on new and emerging trends as they relate to evidence collection. Officer Moore is assisted by Captain Spiess and Detective Briski. Our continued partnerships with outside agencies are pivotal as we continue to effectively investigate crimes of all types, to anticipate and evaluate crime trends, and to pair individuals in need with applicable social services. One such partnership is with county and city attorney's offices, who we call upon for charging decisions, assistance with complex cases, and in preparation for courtroom testimony. Detectives also work with the county crime labs and the Minnesota BCA laboratory personnel to assist with DNA and fingerprint analysis, along with other evidence as requested. Detectives have membership and partnerships with the following organizations: Hennepin County Juvenile Advisory Committee, Ramsey County Tobacco Coalition, the Minnesota Organized Retail Crime Association, Crime Stoppers, Hennepin County Criminal Information Sharing and Analysis Unit, State and County Emergency Management teams, Cornerstone Victim Services, among many others. A significant partnership that continued in 2020 was with the Ramsey County Sexual Assault Protocol Team. Detective Briski and Captain Spiess were actively involved with this team, who are comprised of members from every police agency in Ramsey County, the Ramsey County Attorney's Office, and the Ramsey County Sexual Violence Advocacy Center. Some accomplishments to come from this group are a commitment to engage a sexual assault advocate in all incidents of sexual assault, a commitment from the county attorney's office to dedicate an attorney to prosecuting and advising solely on sexual assault cases, a shared investigative checklist, and a list serve to share advice with other investigators and attorneys. The St. Anthony Police Department also received grant funding through this team to update our soft interview room to make it more accommodating to victims of traumatic crimes. The team is ongoing and promises to see even more great results. Our department also partners with the Sexual Violence Center for crimes occurring in St. Anthony — Hennepin County. On a regular basis, detectives encounter individuals who are need of social services and may not have the means or experience to find them. As such, the St. Anthony Police Department works closely with Child Protection Services and Adult Protection Services from both Hennepin and Ramsey Counties. We also partner with mental health professionals from both counties to assist in guidance, referral services, and, on occasion, at the scene of a mental health related call. Additionally, our investigators continued to utilize the contracted services of a community case worker from Northeast Youth and Family Services to better connect community members with 171 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota social services that they need. Our investigative team is also part of the Minnesota Adult Abuse Reporting Center (MAARC) system, which streamlines the reporting of alleged mistreatment of vulnerable adults to multiple investigative entities, including Adult Protection, Human Services, licensing boards, and other police agencies. While our professional partnerships are vast, we know that our most important partners are our community members. We are not only here to serve our community, but we have found them to be our most important asset in solving crimes. Our community knows and reports when there is suspicious activity or they are victims of crime. They are also our witnesses and often provide evidence crucial to solving a crime. The community helps us reach our mission to "...improve the overall quality of life by preserving the peace and safety of the community." The following are statistics of clearance rates for crimes that were committed and investigated during the 2020 year. Though these numbers are an important gauge of our effectiveness as a department and an investigative unit, we are not successful by clearance rates alone. What's also important and paramount to us is that all individuals are treated within the framework of the four pillars of Procedural Justice: Fairness, Voice, Transparency, and Impartiality. In practice, it is our hope and goal that, regardless of outcome, all those that encounter members of our agency leave with a sense that they were treated with dignity and respect, were informed of the process, and that officers worked diligently and without partiality. The 2020 statistics for the criminal investigations unit are as follows: Total Criminal Cases: 129 Total Cases Cleared 57 Total Cases Cleared by Arrest 46 Total Cases Cleared by Other 11 CLEARANCE RATE: 44% As we end 2020, we are honored for the opportunity to serve another year. We know that success depends on our ability to learn, collaborate, partner, and innovate. This new year brings about new opportunities to build upon what we've done, strengthen relationships and continue to be a spoke in the wheel of a great City of Lauderdale. 18 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota VII. Administration Review PREPARED BY OFFICE MANAGER KIM BRAZIL Due to FBI requirements for crime reporting, we changed our coding system to the National Incident Based Reporting System (NIBRS). Office staff completed training and three months of testing. We passed the testing phase and are compliant with the reporting requirements. This year we partnered with Business Watch International (BWI) and ProtechDNA. The pawn system operated by Minneapolis Police Department was discontinued and BWI is our new provider for access to pawn information. BWI is a national data base of pawn records. Not only can officers search pawn shops for stolen property, but this program also allows officers to put alerts on property or people and look for pawning trends. As a part of the partnership, we are also now partnered with ProtechDNA. ProtechDNA is a replacement for Operation ID. This program allows residents to scan serial numbers and download photos of their property to an app via Apple App Store or Google Play Store. Pawn shops, across the country, will receive owner information when any property in the system is pawned. The St. Anthony Kiwanis provided funding for security pens and brochures to launch this program. Our initial plan was to introduce ProtechDNA, to the community, during Minnesota Night to Unit, but due to COVID-19 we were not able to accomplish this. We are currently working on introducing the program via social media. Minneapolis Police Department converted to a new records management system. Our investigators are now able to access Minneapolis records and obtain copies of any related reports remotely from our office. As with everywhere else, this has been a challenging year. To accommodate the safety of all employees, our office staff rotated between working in the office and at home. Due to this schedule, we have been able to keep the office at the police department open to assist residents and officers. 19 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota VIII. Police Education Summary PREPARED BY LT. DAN DIEGNAU Training for law enforcement officers is a vital and important part of delivering quality and professional police service to the community. The St. Anthony Police Department is committed to delivering training based on the foundation of the department's current and future mission, vision, and goals. The objectives of the training program are to: - Provide for continued professional development of department personnel. - Enhance the safety of officers and the community. - Foster unity of purpose and cooperation with the community that they serve and to enhance the image of the department. -Provide training that has been reviewed for content by the MN P.O.S.T. Board and/or the St. Anthony P.D. command staff to ensure our police officers are receiving training that clearly falls in line with the learning objectives set forth by the department mission. This past year, the pandemic situation changed the way training was delivered. Officers were required to primarily utilize online self -study courses provided by POST certified training venues and venues authorized and consistent with department values. In 2020 a total of 984 hours of POST certified training and 413 hours of non -POST certified training was completed by St. Anthony Officers. The training consisted of a wide variety of topics that have been presented into the below six classifications: - SWAT/NEGOTIATOR TRAINING: Training provided and overseen by the Ramsey Co. Sheriff's Department for St. Anthony Officers assigned to these specialized groups. - ANNUAL POST/LICENSING REQUIREMENTS: The State on Minnesota requires all licensed police officers to complete mandated training annually with a total of 48 hours continuing education credits certified by the Minnesota POST Board every three years. Training topics consisted of, but not limited to: Handgun/Riffle Qualifications, Use of Force, and Emergency Vehicle Operation. - CRISIS/CONFLICT/COMMUNITY DIVERSITY TRAINING: This training shall consist of at least 16 hours of continuing education credits certified by the Minnesota POST Board every 20 !Page 2020 Annual Report • Police Department • Lauderdale, Minnesota three- year licensing cycle. Training topics consisted of: Employee Wellness, Suicide Prevention, Implicit Bias, Autism, De -Escalation, Mental Health and 72 -Hour Crisis Holds. - DEPARTMENT POLICY REQUIREMENTS: Training that is required by department policy or by Standing Order from the Chief of Police. This classification excludes annual POST/licensing requirements. Training topics consisted of, but not limited to: Emergency Medical Responder, Clock Handgun Training, other Handgun/Riffle Training, and LEXIPOL Daily Training Bulletins (DTB's). DTB's is a unique training format consisting of a scenario, analysis, conclusion, and question relating to the Department Policy Manual. - ANNUAL OSHA MANDATED TRAINING: Occupational Safety and Health Administration (OSHA) mandated annual training to consist of: Hazardous Materials Awareness, Blood Borne Pathogens, Respiratory Protection, Personal Protective Equipment, Hearing Conservation, Portable Fire Extinguishers, AWAIR and Employee Right -to -Know. - ELECTED TRAINING: Training that has been reviewed for content by the MN P.O.S.T. Board and/or the St. Anthony P.D. command staff to ensure our officers are receiving training that clearly falls in line with the learning objectives set forth by the department mission. This training consist of, but not limited to: Specialized Training/Assignment, Professional Development, and Supervisory/Command Staff Enhancement. 2020 TRAINING PERCENTAGE ■ SWAT/NEGOTIATOR ■ ANNUAL POST/LICENSE REQUIRMMIENTS ® CRISIS/CONFLICT/COMMU NITY DIVERSITY DEPARTMENT POLICY ■ OSHA n ELECTED 21 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota 400 350 300 250 0 200 x 150 100 50 0 120 2020 TRAINING HOURS 297 336 273 e SOSL CO÷ . 9 \C I Opti \ SOS S CO Ce 1 # S o÷ e S Si co c t 168 0 TOTAL TRAINING HOURS (1932.00) 203 The preceding graphs depict the amount of training hours that went into each training classification. Police department staff will work cooperatively to ensure the police department is actively and continuously working towards the goals and objectives outlined in our strategic plan. This plan will continue to aid in focusing our resources, making data -driven decisions, and evaluating how we receive and channel feedback from all stakeholders. Furthermore, we will continue to identify and prioritize issues that may arise within the department and the community to aid in the professional development of our staff. 221Page 2020 Annual Report • Police Department • Lauderdale, Minnesota IX. Police Reserve Summary PREPARED BY SERGEANT JEREMY SROGA While the St. Anthony Police Reserve Program was put on hold for several months due to COVID-19 concerns, members still logged over 500 hours in 2020. Much of that time was devoted to patrolling the parks, schools, businesses and neighborhoods of St. Anthony and Lauderdale. They also assisted our officers with traffic control and citizen and prisoner transports related to police incidents. The St. Anthony Police Reserve Program anticipates a building year for 2021, as some reserves have left to pursue full-time careers in law enforcement or other adjustments in their lives. SAPD and the remaining reserves look forward to the addition of new police reserves this year. Applications are always being accepted for the program on the city's website at savmn.com. Some requirements of a police reserve are: • Resident of St. Anthony or Lauderdale that is interested in volunteering in the communities with our agency, or a nearby student of law enforcement or equivalent program that would like hands-on experience in the field that they are pursuing. • Ability to pass a comprehensive background check and physical examination. • The availability of providing a minimum of 150 volunteer hours per year to include patrol, training and assistance with community functions in St. Anthony and Lauderdale. We are hopeful that COVID-19 restrictions lessen soon, as our police reserves anxiously anticipate the return of community events like "Villagefest", "Lauderdale Day in the Park" and many others, where they have the opportunity to interact with residents and visitors. Until then, if you see the Reserve Unit travelling through your neighborhood, please give them a thankful wave and a smile, 23 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota X. East Metro SWAT Summary PREPARED BY OFFICER ELLIOT ERDMAN The Special Weapons and Tactics (SWAT) Team is a regional response team composed of highly trained Deputies from the Ramsey County Sheriff's Office and officers from the St. Anthony Police Department, New Brighton Department of Public Safety, Roseville Police Department, Mounds View Police Department, Maplewood Police Department, Metro Transit Police Department, The University of Minnesota Police Department, North St. Paul Police Department and White Bear Lake Police Department. The Ramsey County SWAT team is a collective group of regional stakeholders who are dedicated to the safety and security of our communities. The team's purpose is to bring peaceful resolutions to high risk situations while maintaining the highest regard for human life and property. SWAT Operators are comprised of a group of highly professional Officers and Deputies, dedicated to perpetual self-improvement. This team of individuals, each with their own specialized skill set, work diligently to resolve volatile situations and protect the sanctity of human life. The SWAT Team's tactical Operators and SWAT Negotiators work in concert; collaborating with regional first responders to provide tailored resolutions to dangerous events. Operationally, 2020 was a challenging year for everyone and Ramsey County SWAT assisted in resolving and de-escalating many volatile incidents this year. This included multiple hostage incidents; one of which included assisting our Washington County partners with a father holding his own child as a hostage. The team also assisted in apprehending multiple armed and dangerous suspects, all while maintaining the highest level of courage, restraint, and professionalism. Due to the commitment and dedication of each individual team member, Ramsey County SWAT continues to be relied upon to help deescalate and safely control quickly evolving situations. Despite the challenges of 2020 we remain steadfast in our role of maintaining peace in the communities in which we serve. 241Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XI. Social Media PREPARED BY OFFICER JIM SOUTH 2020 was a year that required all of us to adapt from our "norms". With the onset of a global pandemic, we all faced changes that were not foreseen and definitely not welcomed. It has challenged everyone to think outside the box and figure out ways of making our lives as "normal" as they could be. The one thing that stayed constant and did not go away was the use of social media. Social media is used as a way to communicate in a very safe and socially distanced way. Per department policy, officers may use social media as a method of effectively informing the public about department services, issues, investigations, and other relevant events, while ensuring such use protects the constitutional rights of all. The St. Anthony Police Department embarked on our social media journey in 2017 and has continued to see growth. This year proved to be another year of growth and challenges. We currently have 3 different social media platforms, which are managed by four officers on the department. These officers continually look for fresh ideas for content, all while keeping the community updated on activities inside and outside the police department. We find that our use of social media as a community engagement effort helps to keep our community better informed, and therefore safer, which feeds our department mission of a safe and peaceful community. Over the past year, we have been excited to see a significant increase in the number of people who have chosen to follow our social media platforms for community updates and events, involving the police department and the City of St. Anthony. For example, since January 1, 2020, the department's Facebook page has seen a 28 percent increase in followership and "likes," which means even more people for us to engage with on a regular basis. Additionally, we track the number of views certain posts receive and use that information when we consider future content and delivery methods. Two of our most significantly viewed posts involved an update on a lost animal and another post in which we thanked our essential workers at an area business. 25 I Page 2020 Annual Report • Police Department • Lauderdale, Minnesota Twitter has also seen a significant increase of several hundred followers in 2020. We have used Twitter in several ways, but probably most notable is our Virtual Ride Along (VRA). An officer will use the Twitter platform during the shift to tweet, in near real time, about the calls for service they are engaged with. If possible, the officer may also include photos and video. Often this is a statewide campaign, where several departments throughout the State of Minnesota will hold a VRA event at the same time. The department also uses Twitter as an avenue to interact with media outlets, whom we direct to this platform for press releases and case updates. Our third platform is Instagram, which currently has 1,909 followers. Much like our other platforms, Instagram attracts another segment of our community and we are committed to reaching people where they are. We use Instagram to post relevant photos from our daily operations, as well as public alerts. We are excited to for the future of Instagram and how we can use it to partner with our community. In 2017, we were bold and began our social media existence with four social media platforms, which included Snapchat. While we were hopeful for our success with Snapchat, we found that we fulfilled our mission more effectively on our other platforms and therefore chose to focus our efforts there. As a team committed to success through community partnerships, we are not afraid to make changes and ••IUPDATr.: Thinks lc) Irip I:a^i.Ii ul fe,J out theme.. we mice cents:: wi:h :he pu:; owner. 9r14 a safe t*11eccnib1g is an t:ehlg Cue 1.t ru orr:n/4cdr i; vet.. challenge each other to remain focused on our mission and the best ways to accomplish it. As 2020 draws to an end, we are excited for what the future holds. It wasn't that long ago when we hadn't even heard of "social media," much less know how to use it. What lies ahead it a bit unknown in the world of technology, but we are confident that our team is up to the task. We encourage everyone to stop by one, or all, of our sites, check us out, and say, "Hi." 26 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XII. Community Engagement Summary PREPARED BY SERGEANT MIKE HUDDLE Of all the things that could be said of the year 2020, declaring that connecting and engaging with one another was "difficult" would be a severe understatement. Nor does it give a complete description. In fact, connecting in a close personal way could be dangerous, if not deadly. Our community's businesses suffered, our families suffered loss, already marginalized populations became further isolated, and even our schools halted operations before resuming in very limited capacities. Through all of this, the expectation that police services continued uninterrupted remained. As a police department, we could not stop serving or engaging our community at a high level, even during a pandemic. But, like many organizations, we found we weren't as prepared as we wished we had been to overcome challenges we faced. Members of our Community Engagement Team found frustration with circumstances, but we've looked for ways to work around challenges. We're still working on overcoming many of the obstacles that a pandemic presents for engagement. This report will account for the engagement programs that were planned, but ultimately canceled due to restrictions in place, or out of an abundance of caution to prevent spread of COVID-19. This summary will also touch on strategies and activities we engaged in with the community that allowed us to still engage in a safe way. The St. Anthony Police Department has a team of Officers, the Community Engagement Team (CET), which focuses on developing relationships within the community, educating and informing the public on matters related to the police department, police work and crime, increasing transparency and earning trust, seeking out input from community stakeholders, and reducing crime. CET works in direct support of the Goals and Objective identified in the St. Anthony Police Department Strategic Plan. In 2020, the team consists of five members (Officer Tressa Sunde, Officer Jim South, Officer Jon Schlingman, Officer Kiel Rushton, and Sergeant Mike Huddle). All members of this team have successfully completed a 40 -hour Crime Prevention Specialist course through the BCA. Assignment to this team requires duties above and beyond the duties of their regular assignments. In 2020, all of these Officers were assigned to Patrol as their primary assignment. Officer Sunde stepped down from her role in the 27 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota Community Engagement Team at the end of 2020, completing twenty years of service in community engagement. We look forward to seeing her succeed in her next duty assignment. CET meets on a quarterly basis to plan events, establish goals and objectives, and discuss subject matter that is of concern to members of the community. These meetings are mandatory for all of our members. Our Department offers several community programs throughout the year. Nearly all of them were canceled due to pandemic related restrictions in 2020. These programs are open to all, but some are oriented to youth. These programs include, but are not limited to: The annual Cops vs. Kids Basketball games Summer Survival School, two full days of safety related education for kids in our community Coffee with A Cop, an annual community based event Citizens' Academy These events were planned, scheduled and budgeted, however ultimately canceled due to COVID-19 restrictions. In addition to these programs, Officers had been involved in a student mentorship program through Century College aimed at helping students explore and successfully get into law enforcement careers. Our goal was to connect with and recruit diverse groups of students to work and serve as Police Officers in our community. Officers had also been meeting regularly over coffee and snacks with senior residents at Chandler Place assisted living in St. Anthony. this gave our Officers and our senior community a chance to connect and learn from one another. We found that our seniors had a lot to share and taught our Officers about some of the history of our area over the years. We hope to resume our involvement in both of these worthwhile programs once it is safe to do so. CET also manages the social media accounts for the police department. We have accounts on Facebook, Twitter and Instagram. Social media has grown to become a major component of our community engagement program. It allows us to reach a large segment of the community in a timely manner. We use the accounts to inform the public of crime information, public safety announcements, weather alerts, education on police work, requesting public assistance to resolve crimes under investigation, seeking input from community members, and publishing 28 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota data of interest to the community. Recently, we've placed more focus on creating videos to bring this material to the public in a more interesting, sometimes entertaining, way. It's required an evolving skill set that our Officers are continuing to acquire and polish to bring high quality content to our community. All of our CET Officers are developing this capability and are expected to contribute to content offered to the community. We've made some small investments in technology and gear (such as phone apps and a tablet) to help Officers collaborate more easily and produce material more quickly and efficiently. The Police Department has recently revitalized our relationship with local cable television studio, CTV. We intend to work to produce video content that will be broadcast over the CTV cable channel and our social media outlets. The goal is to reach more community members and make information from the police department more accessible. Our work with CTV began late last year and content is expected to be available in 2021. We have also launched a series of new content on video over our social media accounts focusing on our Collaborative Reform work which the Police department embarked on in 2017 through the Department of Justice Collaborative Reform Initiative — Technical Assistance program (CRI -TA). These videos were released at the end of 2020 and will continue into 2021, highlighting continuing work on collaborative reform. The videos cover topics such as body worn cameras (BWC), traffic stops, our partnership with the Northeast Youth and Family Services Community Advocate program, and de-escalation and crisis intervention team (CIT) techniques. Additional subjects are planned for 2021. The philosophy within the police department is that all St. Anthony Police Officers are community engagement Officers and that each and every interaction with the public is a community engagement opportunity. This means that every Officer has the responsibility to identify the needs of community members at the individual level, offer programs and services as appropriate, and work toward building trust and legitimacy within the community. Our entire Patrol division participates in two programs through traffic and pedestrian safety efforts. The Driver Diversion Program (DDP) offers drivers who have a revoked or canceled driver's license the opportunity to participate in a program designed to allow them to get their license reinstated. Our Officers recognize that driving is a necessary privilege that can cause a 29 IPage 2020 Annual Report • Police Department • Lauderdale, Minnesota hardship if it is revoked or suspended. Officers issue DDP information to drivers with an invalid license on a traffic stop and explain how they may be eligible to participate to get their hcense back and then drive legally. The goal is to educate drivers and get them back to a legal driving status so they can avoid further fines, legal issues, or encounters with law enforcement. We also partner with the "Lights ONE"•,�` • �r�� .= program. This program allows Officers to "'ants4;• el '" elf: : hand out vouchers for free light bulb1�► /AA ` ` �,t nihr el: - - 1 • tzs r ir eis I replacement to those driving a vehicle withrseseza f `� . burned out or defective lighting, such as a'" - •••• igne '��`' '��'"' �.� LI if. S.i•TC•�ra,. OW i .� r. •f iaheadlight or tail light. The program is entirely grant funded and supported by private donations. There is no cost to the City of St. Anthony or to drivers who receive the vouchers. Voucher recipients may redeem the voucher at a participating service station of their choice. The Police Department is proud to offer this benefit to anyone driving through the communities of St. Anthony and Lauderdale. Persons may even stop in to the St. Anthony Police Department to request a voucher from administrative staff during normal business hours. Our office maintains a prescription medication collection receptacle available to the public. Citizens are allowed to dispose of unwanted, unused, or expired household medicines for free in a secure medicine disposal drop box. This program is in addition to our offering the free Deterra medication disposal bags which render prescription medication inert and safe for household disposal. Residents of St. Anthony, Lauderdale and surrounding cities may utilize this prescription medication disposal site during normal business hours, free of charge. The program began in August of 2019, when the St. Anthony Police Department, working collaboratively with the Hennepin County Energy and Environment Department and the Minnesota Pollution Control Agency (MPCA), added a prescription medication disposal site in the police department lobby. During the 2020 calendar year we collected 298 lbs. of pharmaceuticals and pharmaceutical waste, including packaging material. We transported and disposed of these unwanted materials at the Hennepin County Energy Recovery Center (HERC). While most events hosted by the Police Department had to be canceled in 2020, community led / community hosted event, still took place. A short sample of Officer involvement in the community is listed below. Officer N oore assisted a resident on Carl St who was having trouble with his lawnmower. Officer Moore helped to troubleshoot the problem. Now, that's full service. 301 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota Officer Rushton was involved in an interview via Zoom with the Battered Women's Justice Project. Officer Sunde took part in a birthday "drive by" parade for a resident celebrating a 102Nd birthday. We'll plan to see you next year for your 103rd. Chief Mangseth and Captain Spiess met with two community members in July to discuss police training and other policing related matters. MN Night To Unite (NTU) is normally held on the first Tuesday in August. Last year, NTU and National Night Out events were postponed to the first Tuesday in October at the recommendation of the MN Crime Prevention Association and the National Association of Town Watch. This is a community planned and led event. Neighborhood organizers determine whether to hold block party, then plan and coordinate the event with their neighbors. The Police Department, as well as other City departments, are often invited to some, but not all of these block parties. The Police Department distributed information on MDH guidelines and state restrictions on gatherings to help neighborhood organizers plan their events. There were three planned NTU block parties in Lauderdale in 2020. By comparison, we've had approximately eight block parties planned for Lauderdale in years past. A new phenomenon in 2020 was the "drive-by parade". Because of gathering restrictions due to COVID-19, many people asked family and friends to drive by their homes in a caravan to show support, congratulate, or celebrate a milestone. Our Officers got the chance to participate in many of these lat year. We drove into neighborhoods and past homes in motorcades of squad cars with lights and sirens on to honor graduates, wedding anniversaries, 100+ year old birthdays, kids' birthdays, new births, and homecomings. It was just a small way we could get to celebrate with you. We'll continue this into the future. An issue of importance that the community has been vocal about recently is street racing. This is not a new trend, however. Our Patrol Officers have been addressing street racing behavior along Hwy 280 in Lauderdale for over ten years. In later years, we've observed much larger groups that gather in nearby communities and travel through Lauderdale along Hwy 280, and now on Hwy 88 in St. Anthony. While there is little actual street racing occurring in Lauderdale or St. Anthony, the groups use our roadways to travel from one gathering point to another, often in large packs of vehicles, causing a disturbance due to vehicle noise. This activity has 31 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota been happening throughout the metro area. With more and more complaints and concern from the public, the street racing problem has received the attention of the local news media. The community has identified and reported street racing as a traffic and pedestrian safety threat. Our entire Patrol staff are aware of it and responsive to it. In 2020, like in years before, we partnered with the Minnesota State Patrol to coordinate enforcement efforts to address street racing in our jurisdiction. Sergeants Dokken and Huddle attended a Lauderdale City Council meeting to report on the Police Department's strategy for reducing and deterring street racing and to answer questions from the Council and community members. 2020 presented many challenges for everyone in our community. The mission of the Community Engagement Team is to improve, make progress and overcome challenges to connect people with the Police Department, as guided by our Department Strategic Plan. Our community will not accept excuses, and neither will our leaders. We're taking lessons learned and becoming better equipped. 321 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XIII. Body Worn Camera Program (BWC) PREPARED BY CAPTAIN JEFF SPIESS The St. Anthony Police Department's Body Worn Camera (BWC) program has just completed As second full year of implementation. All officers, including our Community Service Officer, wear a BWC during nearly all official interactions with the public and upload videos to a server for storage. The BWC's work in concert with the squad car camera system and our facility cameras at the police department, which provides for complete video and audio coverage of an event from the street to the police department. The program has proven to be quite a success and one that is embraced by all of our staff. The BWCs have quickly become an essential part of our everyday operations. Videos are often disseminated to county and city attorney's as part of the criminal complaint process, and have been integral in resolving cases quickly and for providing support to officer testimony. In addition, videos are reviewed as part of all use -of -force incidents, to ensure that officer actions were reasonable and within the scope of department policy. Finally, BWC videos are utilized in any report of alleged officer misconduct. While the department received no formal complaints against officers in 2020, BWC video was vital in exonerating officers of any wrongdoings after two allegations of misconduct in 2019. As part of our commitment to accountability and transparency, we conduct an internal compliance check on a monthly basis to ensure that the BWCs are being utilized according to policy. This is accomplished by supervisors reviewing a specified number of videos for each officer on his/her shift. The supervisor is checking that a video is present for the incident, that it was classified correctly for retention purposes, and that equipment was working properly and consistent with policy. Additionally, supervisors are ensuring that officers are professional and adhering to the tenants of Procedural Justice and Fair 8& Impartial Policing. In 2020, the internal compliance checks yielded a high compliance rate of 98 percent among all personnel. Of the videos that fell out of compliance, there was no pattern of non-compliance by any single officer. Additionally, none of these videos resulted in a negative impact to the department (i.e. the incident was not significant in nature or the incident was viewable from other activated BWCs on scene). Per Minnesota State Statute, the department participated in a biennial auditing of our BWC program by an outside, independent auditor. The auditor evaluates whether data is 33 'Page 2020 Annual Report • Police Department • Lauderdale, Minnesota appropriately classified, how the data is used, and whether the data is destroyed as required by State Statute. Additionally, the auditor reviews department policy and how it relates to the use and viewing of BWC video, dissemination of video, and the maintenance and recordkeeping of data and dissemination. When complete, the final report will be presented to the St. Anthony City Council for review and forwarded to the Legislative Commission on Data Practices and Personal Data Privacy. The St. Anthony Police Department is committed to the City's Strategic Initiative of fostering robust technology and the police department's Strategic Goal of accountability and transparency. Our high BWC compliance rate for 2019 and 2020 illustrates the department's embrace of this relatively new technology, a willingness to learn, and a commitment to transparency. We are eager for what's ahead with technology and learning how it can help us to even better serve, as we fulfill our mission of preserving the peace and safety of our community. 34 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XIV. "In the Mailbox" It is my pleasure to say a big thank you to your officers for helping with the parade for my mother-in-lazv's 101st birthday. She was so please and it was the highlight of her day. 3 squad cars showed up and our wonderful police force had a calming and joke filled conversation with the young man. I just feel the need to appreciate the local authorities for having such a great attitude and handling this in such a positive way. I would like to comment on the ease of coordination in working with each agency. I can speak confidently to the exceptional work that was displayed that day by all who arrived on -scene and provided support after the event had concluded. Thank you for putting on that uniform everyday, thank you for risking your lives to ensure security, and thank you for doing all of this.... Thank you Jor everything you do to protect and serve 0111' city. We are grateful to have wonderful working relationships with our surrounding police departments, Including St. Anthony when it comes to taking care of lost animals. I would like to thank the St. Anthony Police and Fire for their quick and efficient response to a fire. Thank you for your service officers! We appreciate you so much. 35 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XV. 2020 Accomplishments • Completed external independent biennial audit of our BWC data as set forth in MN State Statute 13.825, November 2020. Results pending. • Worked with the Ramsey County Attorney's Office and LE Partners on creating, and implementing officer training based on protocols for investigating sexual assault cases as set forth by the MN POST Board. Training created. Training to begin 2021. • Continued training and employee development related to the department policy/procedure manual. Issue daily training bulletins that will expand officer knowledge and awareness pertaining to policy, applicable State/Federal and changes as a result of case law rulings. • Continued to send personnel through a MN POST Board approved 40 hour Crisis Intervention Team Training (CIT) program. Long term goal to have all officers complete the 40 hour certified training. • Continued to review and explore training that emphasizes officer skill development in areas associated to mental health concerns, de-escalation strategies and community relations. *Completed in house training utilizing CIT curriculum and I.C.A.T. • Continued to review and implement department training utilizing Integrating Communications, Assessment and Tactics (I.C.A.T.) into officer development and training. Focus on training platforms related to Use of Force, Emergency Medical Responder (EMR), Firearms and responding to persons in crisis. • Added Officer Wellness component to the department strategic plan goals and objectives. All department personnel individually met with a mental health professional and received educational resources. Connections developed for future meetings should the resource ever be needed. • Continued professional development of first line supervisors, as well as Office Manager, Lieutenant, Captain & Chief. • All officers completed League of MN Cities, MN POST Board approved, 2020 "Patrol Online" training for officers. • Continue to review, implement and potentially expand community engagement initiatives. Looked to social media and digital outlets to engage community due to restrictions placed due to social distancing. • Continued to focus on data driven strategies that focus on identified technical assistance priorities contained within the department strategic plan. • Evaluate methods for implementing online reporting for selected offenses. Worked with IT services to identify software that could aid in implementation. 36 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XV. 2020 Accomplishments (Continued) • Maintained police department membership with city wide involvement in the Government Alliance on Race and Equity. • Reviewed employee evaluation content and process. Created a new documentation and reported tool for implementation in 2021. • Continued to meet expanding training needs of office staff for proper coding and reporting for the new NIBERS Crime Reporting System (PA). Office staff trained on new system. • Worked to identify gaps and implement changes to arrest/court records to reduce the suspension of records kept off of criminal histories due to various data errors (PA). • Due to Minneapolis discontinuing the Automated Pawn System (APS), we began to implement and train all personnel on the use of Business Watch International (BWI). BWI is a national database of pawn records and offers various search methods (PA). • Implement the use of ProTechDNA which has partnered with BWI. ProTechDNA is a free service, and APP, to residents to mark their property (PA). Today's advanced version of the former Operation ID program. Selected items on the Work Plan had to be carried to 2021 Work Plan due to restrictions that were imposed due to the COVID-19 Pandemic. 371 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XVI. 2021 Work Plan • Review employee evaluation content and process. • Continue BWC internal monthly auditing process. • Implement officer training based on protocols for investigating sexual assault cases as set forth by the MN POST Board. Training created 2020. • Continue training and employee development related to the department policy/procedure manual. Issue daily training bulletins that will expand officer knowledge and awareness pertaining to policy, applicable State/Federal and changes as a result of case law rulings. • Continue to send personnel through a MN POST Board approved 40 hour Crisis Intervention Team Training (CIT) program. Long term goal to have all officers complete the 40 hour certified training. • Continue to review and explore training that emphasizes officer skill development in areas associated to mental health concerns, de-escalation strategies and community relations. • Continue to review and implement department training utilizing Integrating Communications, Assessment and Tactics (I.C.A.T.) into officer development and training. Focus on training platforms related to Use of Force, Emergency Medical Responder (EMR), Firearms and responding to persons in crisis. • Continue professional development of first line supervisors, as well as Office Manager, Lieutenant, Captain & Chief. • All officers will complete League of MN Cities, MN POST Board approved, 2021 "Patrol Online" training for officers. • Continue to review, implement and potentially expand community engagement initiatives. • Continue to focus on data driven strategies that focus on identified technical assistance priorities contained within the department strategic plan. • Create an interface that allows the automated transfer of digital media to the Ramsey County Attorney Office and city attorneys. • Continue to evaluate methods for implementing online reporting for selected offenses. • Maintain police department membership with city wide involvement in the Government Alliance on Race and Equity. • Continue to review employee evaluation content and process. 38 1 Page 2020 Annual Report • Police Department • Lauderdale, Minnesota XVI. 2021 Work Plan (Continued) • Change from Summary Reporting and implement National Information Based Reporting System (NIBRS) Crime Report as required by the Federal Bureau of Investigation (FBI). Police Administration (PA). Year long process training and transferring data. • Meet expanding training needs of office staff for proper coding and reporting for the new NIBERS Crime Reporting System (PA). • Work to identify gaps and implement changes to arrest/court records to reduce the suspension of records kept off of criminal histories due to various data errors (PA). • Due to Minneapolis discontinuing the Automated Pawn System (APS), we began work to implement and train all personnel on the use of Business Watch International (BWI). BWI is a national database of pawn records and offers various search methods (PA). Started in 2020. • Implement the use of ProTechDNA which has partnered with BWI. ProTechDNA is a free service, and APP, to residents to mark their property (PA). Started in 2020. 39 1 P a g e LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action Resolution Work Session X Meeting Date April 27, 2021 ITEM NUMBER Audit Materials STAFF INITIAL HB APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Each year a representative of Abdo, Fick, and Meyers presents the findings to the City Council. This year Bonnie Schwieger will present. Upon conclusion of the presentation the Council should vote to accept the audit reports. OPTIONS: STAFF RECOMMENDATION: Motion to accept the audit reports prepared by Abdo, Eick, and Meyers. 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r— czztee girt ti tet" Debt per Capita IMF NCO �t O 0) N Eft G) N p r- Efl p0 L0 N � Eft Eft CO r N 1-0 O) 0 O O Eft 0 ' O r 1 o(0 Eft N Eft in Ramsey County 0 cnj a) V L a) 0 as I# :Lai . mo :1=11 a) Q W rti CU I— •V VJ .n 0 Q) O 03 o 0 N N- O to N O co 0 0 0 O O O O O O O O 00 cfl d N co N O N N N O O City of Lauderdale d 0v aso ‘it a) %.• Ya c 0 am4 9 to; 0) trZ U (1) CO 0 0 00) D LC) 0 ' U Q) E c a) U Current Expenditure per Capita O CO N tf) O CO N Eft r" r O) CO O 'CO N` CO N ;Eft ET) Eft CO lO CO L() r- O LO CO O CO N Et EA EA Expenditure per Capita cts N` N O Nt' 0 r- N - CO CO O LO N— O N EA EA EA O O O O O O O O O C O O O O O O O O O ER Eft Eft Eft Eft EA Eft EA Ef} Eft (1) Ca >' Q) CD E CO 0 ,.1 C O (/) (i) co pi U U U L1 1 0 O 0 0 0 0 N O CO Cfl d N r- r- Eft EA EA ea (1) Eft 1 O ' N N O r - N Eft N- r O N N O �t N N r W EA r▪ 0 CO ✓ O O Ln N N` O co N— r- N EA Class 4 Cities Cities in Ramsey County 0 Cet rz L ' r c E 0 m mis a) u I—ca � o = 0Q Bonnie Schwieger, CPA Andy Berg, CPA L ct3 C R3 L 43)C t Cl. bonnie.schwieger@aemcpas.com andremberg@aemcpas.com Q alex.trippel@aemcpas.com caydin.wolter@aemcpas.com Annual Financial Report City of Lauderdale Lauderdale, Minnesota For the Year Ended December 31, 2020 ABDO E CK sit ro "\EYE LLP cent !hid Piddle Accountants c • Consultants City of Lauderdale Minnesota Annual Financial Report Table of Contents For the Year Ended December 31, 2020 Page No. Introductory Section Elected and Appointed Officials 7 Financial Section Independent Auditor's Report Management's Discussion and Analysis 11 15 Basic Financial Statements Government -wide Financial Statements Statement of Net Position 27 Statement of Activities 28 Fund Financial Statements Governmental Funds Balance Sheet 32 Reconciliation of the Balance Sheet to the Statement of Net Position 35 Statement of Revenues Expenditures and Changes in Fund Balances 36 Reconciliation of the Statement of Revenues Expenditures and Changes in Fund Balances to the Statement of Activities 38 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 39 Proprietary Funds Statement of Net Position 40 Statement of Revenues, Expenses and Changes in Net Position 41 Statement of Cash Flows 42 N otes to the Financial Statements 43 Required Supplementary Information S chedule of Employer's Share of Public Employees Retirement Association Net Pension Liability - G eneral Employees Retirement Fund 66 Schedule of Employer's Public Employees Retirement Association Contributions - General Employees Retirement Fund 66 N otes to the Required Supplementary Information - General Employee Retirement Fund 67 Combining and Individual Fund Financial Statements and Schedules N onmajor Governmental Funds Combining Balance Sheet 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 71 N onmajor Special Revenue Funds Combining Balance Sheet 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73 S chedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Communications Fund 74 Recycling Fund 75 N onmajor Capital Projects Funds Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 77 General Fund S chedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 79 S ummary Financial Report Revenues and Expenditures for General Operations 82 Other Required Report Independent Auditor's Report on Minnesota Legal Compliance 3 85 INTRODUCTORY SECTION CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 5 Name Mary Gaasch Jeff Dains Kelly Dolphin Roxanne Grove Andi Moffatt Heather Butkowski City of Lauderdale, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2020 ELECTED Title Mayor Council Member Council Member Council Member Council Member APPOINTED City Administrator Term Expires 12/31/20 12/31/20 12/31/20 12/31/22 12/31/22 FINANCIAL SECTION CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 9 ABDO Vit; EICK .11.• & 11w7 LIT C.ertific'cl Public ,lceuuntants Consultants INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Lauderdale, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of Lauderdale, Minnesota (the City), as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2020, and the respective changes in financial position, cash flows, where applicable, and the budgetary comparison for the General fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. 5201 Eden Avenue, Suite 250 Edina, MN 55436 952.835.9090 1 Fax 952.835.3261 11 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis Page 15 and the Schedule of Employer's Shares of the Net Pension Liability and the Schedule of Employer's Contributions and the related note disclosures starting on page 66 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City's basic financial statements as a whole. The introductory section and combining and individual fund financial statements and schedules are presented for the purpose of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the 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 fund financial statements and schedules are fairly stated in all material respects, in relation to the financial statements as a whole. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. OQ» imam, Lue ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 20, 2021 13 Peoj.1e + Process. Vt)111U 13n ( )1 Id the Ntti iil. ) (Mrs Management's Discussion and Analysis As management of the City of Lauderdale, Minnesota (the City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31 2020 Financial Highlights • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $10,756,364 (net position) Of this amount, $3,250,081 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors • The City's total net position increased by $167,607. The majority of the increase can be attributed to an increase in operating grants and contributions. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $3,601,616 an increase of $34,202 in comparison with the prior year. The majority of the increase is due to an debt service revenues collected for future years and an increase in the General fund reserves. Approximately 23 0 percent of this total amount $827,767, is unassigned fund balance. • At the end of the current fiscal year, unassigned fund balance for the General fund was $827,767, or 57 2 percent of 2020 budgeted expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements comprise three components 1) government -wide financial statements 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. 15 The following chart shows how the various parts of this annual report are arranged and related to one another: Figure 1 Required Components of the City's Annual Financial Report • • Management's Discussion and Analysis • Government - wide Financial Statements Summary Basic Financial Statements Fund Financial Statements Required Supplementary Information IF Notes to the Financial Statements Detail The following chart summarizes the major features of the City's financial statements, including the portion of the City's activities they cover and the types of information they contain. The remainder of this overview section of Management's Discussion and Analysis highlights the structure and contents of each of the statements: Figure 2 Major Features of the Government -wide and Fund Financial Statements 17 Fund Financial Statements Government -wide Statements Governmental Funds Proprietary Funds Scope Entire City government (except fiduciary funds) and the City's component units The activities of the City that are not proprietary or fiduciary, such as police fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Required financial statements • Statement of Net Position • Statement of Activities • • Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances • Statements of Net Position • Statements of Revenues, Expenses and Changes in Fund Net Position • Statements of Cash Flows Accounting basis and measurement focus Accrual economic focus accounting and resources Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long- term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short - term and long-term Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows of resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of inflow/outflow information All revenues and expenses during year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid 17 Government -wide Financial Statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). B oth of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, sanitation and recycling, culture and recreation, miscellaneous and interest on bonds. The government -wide financial statements start on page 27 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local government, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. B ecause the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact by the government s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains ten individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Street Improvement fund, TIF District No. 1-2 fund, Park Improvement fund and the 2019A G O. Improvement Bonds fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single aggregated presentation. The City adopts an annual appropriated budget for its General fund and certain special revenue funds. A budgetary comparison statement has been provided for the General fund and certain special revenue funds to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 32 of this report. Proprietary Funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business -type activities in the government—wide financial statements. The City uses enterprise funds to account for its Sewer and Storm Sewer operations. P roprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds which are considered to be major funds of the City. The basic proprietary fund financial statements start on page 40 of this report. 18 Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements start on page 43 of this report. Other Information. The combining and individual fund financial statements and schedules are presented following the n otes to the financial statements and start on page 70 of this report. Government -wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $10,756,364 at the close of the most recent fiscal year. The largest portion of the City's net position (64.3 percent) reflects its net investment in capital assets (e.g., land, buildings, machinery and equipment); less any related debt used to acquire those assets that is still outstanding. The City u ses these capital assets to provide services to citizens• consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources n eeded to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Lauderdale's Summary of Net Position Governmental Activities Increase 2020 2019 (Decrease) Assets Current and other assets $ 4,250,079 Capital assets 6,270,334 Total Assets 10,520,413 D eferred Outflows of Resources Deferred pension resources 26,173 Liabilities Long-term liabilities outstanding Other liabilities Total Liabilities D eferred Inflows of Resources D eferred pension resources N et Position N et investment in capital assets Restricted U nrestricted 2,618,914 243,638 2,862,552 $ 4,174,249 6,200,696 10,374,945 Business -type Activities Increase 2020 2019 (Decrease) $ 75,830 69,638 145,468 $ 1,593,476 $ 1,509,798 1,663,811 1,645,198 3,257,287 3,154,996 $ 83,678 18,613 102,291 18,063 8,110 8,456 5,812 2,586,838 234,294 2,821,132 32,076 9,344 41,420 12,623 40,036 (27,413) 5,250,502 591,970 1,828,939 5,178,531 562,556 1,790,753 71,971 29,414 38,186 99,747 76,856 176,603 88,962 1,522 90,484 2,644 10,785 75,334 86,119 4,187 13,407 (9,220) 1,663,811 1,421,142 1,645,198 18,613 1,411,719 9,423 Total Net Position $ 7,671,411 $ 7,531,840 $ 139,571 $ 3,084,953 $ 3,056,917 $ 28,036 The remaining balance of unrestricted net position ($3,250,081) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior fiscal year. 19 Governmental Activities. Governmental activities increased the City's net position by $139,571 and business -type increased the City's net position by $28,036. Key elements of the increase are as follows: City of Lauderdale's Changes in Net Position Governmental Activities Increase 2020 2019 (Decrease) Revenues Program Revenues Charges for services O perating grants and contributions Capital grants and contributions General Revenues P roperty taxes G rants and contributions not restricted to specific programs Investment earnings Gain on sale of capital asset Total Revenues Expenses General government P ublic safety P ublic works Sanitation and recycling Culture and recreation Miscellaneous Debt service S ewer Storm sewer Total Expenses Increase in net position before transfers Transfers Change in Net Position N et Position, January 1 N et Position, December 31 175,295 192,195 193,601 862,589 556,042 32,284 2,012,006 481,209 879,792 266,394 63,800 126,000 9,267 45,973 1,872,435 139,571 139,571 7,531,840 $ 7,671,411 $ 225,589 5,742 1,142,723 828,027 545,259 73,592 10,412 2,831,344 463,927 822,429 1,001,808 62,155 136,834 5,620 72,188 $ (50,294) 186,453 (949,122) 34,562 10,783 (41,308) (10,412) (819,338) Business -type Activities Increase 2020 2019 (Decrease) $ 419,691 225 15,303 $ 418,958 $ 23,846 178 28,152 733 (23,846) 47 (12,849) 435,219 17,282 57,363 (735,414) 1,645 (10,834) 3,647 (26,215) 2,564,961 (692,526) 313,326 93,857 407,183 471,134 (35,915) 320,916 85,559 406,475 266,383 32,000 298,383 7,233,457 (126,812) (32,000) (158,812) 298,383 28,036 28,036 3,056,917 64,659 (32,000) PIM (7,590) 8,298 708 (36,623) 32,000 32,659 3,024,258 (4,623) 32,659 $ 7,531,840 $ 139,571 $ 3,084,953 $ 3,056,917 $ 20 28,036 Overall, the financial position of governmental activities remained relatively close to the prior year. $1,000,000 900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Expenses and Program Revenues © Governmental Activities General Government Grants and Contributions Not Restricted to Specific Programs 27.6% 1 1 rim Public Safety Public Works Sanitation and Culture and Miscellaneous Interest on long Recycling Recreation term debt Expense Program Revenue Revenues by Source Governmental Activities Investment Earnings 1.6% Gain on Sale of Capital Asset 0.0% Charges for Seances 8.7% Operating Grants and Contributions 9.6% Capital Grants and Contributions 9.6% Property Taxes 42 9% Business -type Activities. Business -type activities increased the City's net position by $28,036.The increase can be attributed to charges for services over operating costs. Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $3,601,616, an increase of $34,202 in comparison with the prior year. Approximately 23.0 percent of this total amount ($827,767) constitutes unassigned fund balance, which is available for spending at the City's discretion. The remainder of fund is nonspendable ($1,825), restricted ($1,498,181), committed ($90,005) or assigned ($1,183,838). The General fund is the chief operating fund of the City. At the end of the current year, unassigned fund balance of the General fund was $827,767. As a measure of the General fund's liquidity, it may be useful to compare both unrestricted fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 54.6 percent of total General fund expenditures and 57.2 percent of the 2020 budget. The fund balance of the City's General fund increased by $37,254 during the current fiscal year because revenue from property taxes and interest on investments increased from the previous year. The Street Improvement fund has a total fund balance of $526,386, a decrease of $4,445 from the previous year due to an increase in capital outlay expenditures in the current year. The TIF District No. 1-2 fund has a total fund balance of $1,190,097, a decrease of $449 from the previous year due to capital outlay expenditures exceeding revenues from interest on investments. The 2019A G.O. Improvement Bonds fund has a total fund balance of $222,641, an increase of $121,044 from the previous year due to revenue collections for future payments. The Park Improvement fund decreased $59,548 from the previous year due to various park improvements. Proprietary Funds. The City's proprietary fund provides the same type of information found in the government -wide financial statements, but in more detail. The Sewer fund unrestricted net position of the Sewer operation amounted to $1,010,589.The total increase in net position for the fund was $2,469. The Storm Sewer fund unrestricted net position amounted to $410,553. The total increase in net position for the fund was $25,567. The factors concerning the finances of these funds have already been addressed in the discussion of the City's business - type activities. General Fund Budgetary Highlights The original budget was not amended during the 2020 fiscal year. Revenues were more than budgetary estimates by $186,745 and expenditures were more than budgetary estimates by $70,594. As a result the City experienced an overall favorable budget variance. 22 Capital Asset and Debt Administration Capital Assets. The City's investment in capital assets for its governmental and business -type activities as of D ecember 31 2020, amounts to $7,934,145, (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements machinery and equipment, park facilities, roads highways, and bridges. The total decrease in the City's investment in capital assets for the current fiscal year was -1.1 percent (a -1.1 percent decrease for governmental activities and a 1.1 percent increase for business -type activities). Land Construction in Progress Buildings Improvements other than Buildings Machinery and Equipment Infrastructure Total City of Lauderdale's Capital Assets (Net of Depreciation) Governmental Activities Increase 2020 2019 (Decrease) 322,040 $ 322,040 1,736,980 35,992 37,467 108,183 207,390 5,596,729 67,048 85,004 3,952,157 Business -type Activities Increase 2020 2019 (Decrease) $ $ (1,736,980) (1,475) 41,135 122,386 3,333 4,333 (1,000) 1,644,572 1,660,478 1,640,865 19,613 $ 6,270,334 $ 6,200,696 $ 69,638 $ 1,663,811 $ 1,645,198 $ 18,613 Additional information on the City's capital assets can be found in Note 3B starting on page 53 of this report. L ong-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of City of Lauderdale's Outstanding Debt Governmental Activities Bonds Payable 2020 2019 $2,295,000. Business Activities Increase (Decrease) 2020 2019 $ 2,295,000 $ 2,295,000 $ $ Increase (Decrease) Additional information on the City's long-term debt can be found in Note 3D starting on page 55 of this report. E conomic Factors and Next Year's Budgets and Rates • The City closed on the purchase of 1795 Eustis Street in May 2018. The City anticipates selling the property for senior affordable housing in 2021 upon receipt of bonding authority and a tax credit allocation from the State of Minnesota. • Luther Theological Seminary (LTS) previously selected a developer to buy six acres of real estate in Lauderdale. That land sale fell through and LTS is looking for a new buyer. • The City anticipates additional construction of new homes following the trend since 2019. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Administrator, Heather Butkowski, City of Lauderdale, 1891 Walnut Street, Lauderdale, MN 55113. 23 GOVERNMENT -WIDE FINANCIAL STATEMENTS CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 25 City of Lauderdale, Minnesota Statement of Net Position December 31, 2020 Assets Cash and temporary investments Receivables Accounts D elinquent taxes Interest S pecial assessments D ue from other governments P repaid items Land held for resale Capital assets Land and construction in progress D epreciable buildings, property and equipment, net Total Assets D eferred Outflows of Resources D eferred pension resources Liabilities Accounts payable S alaries payable Accrued interest payable D ue to other governments Current liabilities - due within one year Compensated absences payable B onds payable N oncurrent liabilities - due in more than one year Compensated absences payable N et pension liability B onds payable Total Liabilities D eferred Inflows of Resources D eferred pension resources N et Position N et investment in capital assets Restricted for D ebt Service Transportation Street maintenance U nrestricted Total Net Position Governmental Business -type Activities Activities Total $ 2,610,089 $ 1,521,551 $ 29,533 12,422 6,045 423,949 70,083 1,825 1,096,133 322,040 5,948,294 10,520,413 26,173 207,801 6,657 19,585 9,595 28,315 1,395,000 23,730 252,037 919,832 2,862,552 12,623 5,250,502 506,839 52,214 32,917 1,828,939 71,925 1,663,811 3,257,287 8,456 1,670 75,186 16,042 83,705 176,603 4,187 1,663,811 1,421,142 4,131,640 101,458 12,422 6,045 423,949 70,083 1,825 1,096,133 322,040 7,612,105 13,777,700 34,629 209,471 6,657 19,585 84,781 44,357 1,395,000 23,730 335,742 919,832 3,039,155 16,810 6,914,313 506,839 52,214 32,917 3,250,081 $ 7,671,411 $ 3,084,953 $ 10,756,364 The notes to the financial statements are an integral part of this statement. 27 City of Lauderdale, Minnesota Statement of Activities For the Year Ended December 31, 2020 Functions/Programs Governmental Activities Current G eneral government Public safety P ublic works Sanitation and recycling Culture and recreation E conomic development Interest on long term debt Total Governmental Activities Business -type Activities Sewer Storm sewer Total Business -type Activities Total Expenses Program Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions 481,209 $ 41,759 $ 53,887 $ 879,792 31,633 127,007 266,394 63,800 39,559 126,000 62,344 9,267 45,973 1,872,435 175,295 192,195 5,806 525 4,970 313,326 93,857 407,183 304,742 114,949 419,691 64,475 .1010111 115,000 14,126 193,601 $ 2,279,618 $ 594,986 $ 192,195 $ 193,601 General Revenues and Transfers Taxes Property taxes, levied for general purposes Franchise tax Grants and contributions not restricted to specific programs Investment earnings Total General Revenues and Transfers Change in Net Position N et Position, January 1 N et Position, December 31 The notes to the financial statements are an integral part of this statement. 28 Net (Expense) Revenue and Changes in Net Position Governmental Business -type Activities Activities $ (385,563) (721,152) (201,919) (18,435) 51,869 (4,297) (31,847) (1,311,344) (1,311,344) $ MIN (8,584) 21,092 12,508 12,508 Total $ (385,563) (721,152) (201,919) (18,435) 51,869 (4,297) (31,847) (1,311,344) (8,584) 21,092 12,508 (1,298,836) 845,428 17,161 556,042 32,284 1,450,915 139,571 7,531,840 $ 7,671,411 225 15,303 15,528 845,428 17,161 556,267 47,587 1,466,443 28,036 167,607 3,056,917 10,588,757 $ 3,084,953 $ 10,756,364 The notes to the financial statements are an integral part of this statement. 29 FUND FINANCIAL STATEMENTS CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 31 City of Lauderdale, Minnesota Balance Sheet Governmental Funds December 31, 2020 Assets Cash and temporary investments Receivables Accounts D elinquent taxes Interest S pecial assessments D ue from other governments Prepaid items Land held for resale Total Assets Liabilities Accounts payable D ue to other governments S alaries payable Total Liabilities Deferred Inflows of Resources U navailable revenue - property taxes U navailable revenue - special assessments Total Deferred Inflows of Resources Fund Balances N onspendable Restricted Committed Assigned U nassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances Capital Projects Street General Improvement TIF District No. 1-2 Park Improvement 811,968 $ 551,513 $ 94,494 $ 322,603 25,222 12,422 6,045 2,872 58,266 2,388 33,139 1,825 mom $ 862,742 $ 10,584 9,065 6,138 25,787 4,491 2,872 7,363 1,825 827,767 829,592 $ 862,742 1,096,133 28,750 $ 642,918 $ 1,190,627 $ 351,353 58,266 $ 58,266 58,266 58,266 85,131 441,255 530 530 NEIL 1,190,097 526,386 1,190,097 $ 134,060 134,060 217,293 217,293 $ 642,918 $ 1,190,627 $ 351,353 The notes to the financial statements are an integral part of this statement. 32 Debt Service 2019A Other G.O. Governmental Improvement Bonds. Funds $ 219,491 $ 610,020 306,933 4,311 55,878 5,806 Total Governmental Funds $ 2,610,089 29,533 12,422 6,045 423,949 70,083 1,825 1,096,133 $ 526,424 $ 676,015 $ 4,250,079 303,783 303,783 222,641 222,641 $ 4,891 519 5,410 54,998 54,998 312 90,005 525,290 615,607 $ 207,801 9,595 6,657 224,053 4,491 419,919 424,410 1,825 1,498,181 90,005 1,183, 838 827,767 3,601,616 $ 526,424 $ 676,015 $ 4,250,079 The notes to the financial statements are an integral part of this statement. 33 City of Lauderdale, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2020 Amounts reported for governmental activities in the statement of net position are different because Total Fund Balances - Governmental Funds Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental fund. Cost of capital assets Less: accumulated depreciation Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of Compensated absences payable N et pension liability B onds payable Bond premium D elinquent property taxes receivable are not available soon enough to pay for the current periods expenditures, and therefore are reported as deferred inflow of resources in the funds. S pecial assessments receivable are not available soon enough to pay for the current periods expenditures, and therefore are reported as deferred inflow of resources in the funds. Governmental funds do not report long-term amounts related to pensions. D eferred outflows of pension resources D eferred inflows of pension resources Governmental funds do not report a liability for accrued interest until due and payable. Total Net Position - Governmental Activities The notes to the financial statements are an integral part of this statement. 35 $ 3,601,616 8,763,435 (2,493,101) (52,045) (252,037) (2,295,000) (19,832) 4,491 419,919 26,173 (12,623) (19,585) 7,671,411 City of Lauderdale, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2020 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total Revenues Expenditures Current G eneral government P ublic safety P ublic works S anitation and recycling Culture and recreation Economic development Capital outlay Debt service Interest Total Expenditures General Capital Projects Street Improvement TIF District No. 1-2 $ 845,642 $ - $ 36,457 734,565 11,609 24,203 539 15,558 5,558 2,856 33,199 MIN 1,671,429 38,757 437,705 880,976 112,839 81,106 4,652 1,517,278 113,209 113,209 Excess (Deficiency) of Revenues Over (Under) Expenditures 154,151 (74,452) Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 (116,897) 78,897 (116,897) 78,897 37,254 4,445 792,338 $ 829,592 81 81 Ida 530 530 (449) (449) 521,941 1,190,546 Park Improvement 115,000 MEM 3,093 118,093 177,641 IMO 177,641 (59,548) (59,548) 276,841 526,386 $ 1,190,097 $ 217,293 The notes to the financial statements are an integral part of this statement. 36 Debt Service 2019A Other G O. Governmental Improvement Bonds Funds 76,428 1,187 77,615 MIL 24,340 24,340 53,275 67,769 67,769 121,044 101,597 6,331 39,559 6,807 4,970 74,828 63,800 19,990 4,085 25,728 113,603 (38,775) 38,000 (67,769) (29,769) (68,544) 684,151 222,641 $ 615,607 Total Governmental Funds $ 862,803 36,457 855,896 51,168 24,203 76,967 32,284 41,025 1,980,803 437,705 880,976 112,839 63,800 101,096 4,652 295,465 50,068 1,946,601 34,202 184,666 (184,666) 34,202 3,567,414 $ 3,601,616 The notes to the financial statements are an integral part of this statement. 37 City of Lauderdale, Minnesota Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended December 31, 2020 Amounts reported for governmental activities in the statement of activities are different because Total Net Change in Fund Balances - Governmental Funds $ Capital outlays are reported in 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 outlays D epreciation expense The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and dispositions) is to decrease net position. 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 if governmental funds Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Amortization of bond premium Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however interest expense is recognized as the interest accrues, regardless of when it is due. Long-term pension activity is not reported in governmental funds. Pension expense Pension revenue from state contributions Delinquent taxes and special assessment receivables are not available soon enough to pay for the current period's expenditures, and therefore are reported as deferred inflow of resources in the funds. S pecial assessments P roperty taxes Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences 34,202 256,415 (150,687) (36,090) 2,333 1,762 10,597 680 30 737 (214) (10,164) Change in Net Position - Governmental Activities $ 139,571 The notes to the financial statements are an integral part of this statement. 38 City of Lauderdale, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2020 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total Revenues Expenditures Current General government Public safety Public works Culture and recreation Economic development Total Expenditures Excess of Revenues Over Expenditures Other Financing Uses Transfers out Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 Budgeted Amounts Original Final $ 845,614 $ 40,650 549,070 12,350 27,000 6,000 4,000 1,484,684 387,490 846,545 106,148 93,501 13,000 1,446,684 38,000 (38,000) 792,338 $ 792,338 845,614 40,650 549,070 12,350 27,000 Me 6,000 4,000 1,484,684 387,490 846,545 106,148 93,501 13,000 1,446,684 38,000 (38,000) 792,338 $ 792,338 The notes to the financial statements are an integral part of this statement. 39 Actual Amounts $ 845,642 36,457 734,565 11,609 24,203 539 15,558 2,856 1,671,429 437,705 880,976 112,839 81,106 4,652 1,517,278 154,151 (116,897) 37,254 792,338 $ 829,592 Variance with Final Budget $ 28 (4,193) 185,495 (741) (2,797) 539 9,558 (1,144) 186,745 (50,215) (34,431) (6,691) 12395 8,348 (70,594) 116,151 (78,897) 37,254 $ 37,254 Assets Current Assets Cash and temporary investments Accounts receivable Total Current Assets N oncurrent Assets Capital assets Machinery and equipment Infrastructure Less accumulated depreciation Total Noncurrent Assets Total Assets D eferred Outflows of Resources D eferred pensions resources Liabilities Current Liabilities Accounts payable D ue to other governments Compensated absences payable Total Current Liabilities Noncurrent Liabilities N et pension liability Total Liabilities D eferred Inflows of Resources D eferred pension resources N et Position Investment in capital assets U nrestricted Total Net Position City of Lauderdale, Minnesota Statement of Net Position Proprietary Funds December 31, 2020 Business -type Activities Sewer $ 1,095,404 42,658 1,138,062 15,000 2,265,656 (616,845) 1,663,811 2,801,873 4,569 835 75,186 8,528 84,549 45,231 129,780 2,262 1,663,811 1,010,589 $ 2,674,400 The notes to the financial statements are an integral part of this statement. 40 Storm Sewer Total $ 426,147 $ 1,521,551 29,267 71,925 455,414 1,593,476 15,000 2,265,656 (616,845) 1,663,811 455,414 3,257,287 3,887 835 7,514 8,349 38,474 46,823 1,925 410,553 8,456 1,670 75,186 16,042 92,898 83,705 176,603 4,187 1,663,811 1,421,142 410,553 $ 3,084,953 City of Lauderdale, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2020 Operating Revenues Charges for services O perating Expenses Personal services S upplies Other services and charges D epreciation Total Operating Expenses Operating Income (Loss) N onoperating Revenues Other revenue Interest income Total Nonoperating Revenues Change in Net Position N et Position, January 1 N et Position, December 31 Business -type Activities Sewer Storm Sewer $ 304,742 $ 114,949 77,111 626 179,016 56,573 313,326 (8,584) 121 10,932 11,053 65,436 626 27,795 93,857 21,092 104 4,371 4,475 2,469 25,567 2,671,931 384,986 $ 2,674,400 $ 410,553 The notes to the financial statements are an integral part of this statement. 41 Total $ 419,691 142,547 1,252 206,811 56,573 407,183 12,508 225 15,303 15,528 28,036 3,056,917 $ 3,084,953 City of Lauderdale, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2020 Cash Flows from Operating Activities Receipts from tenants and users P ayments to suppliers P ayments to employees Net Cash Provided by Operating Activities Cash Flows from Investing Activities Interest on investments Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, January 1 Cash and Cash Equivalents, December 31 Reconciliation of Operating Income (loss) to Net Cash Provided by Operating Activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation Other income Increase (decrease) in assets/deferred outflows Accounts receivable P repaid items D eferred pension resources Increase (decrease) in liabilities/deferred inflows Accounts payable Compensated absences payable N et pension liability D eferred pension resources Business -type Activities Sewer $ 303,161 (166,226) (77,603) 59,332 10,932 Storm Sewer $ 104,675 (28,068) (65,798) 10,809 4,371 70,264 15,180 1,025,140 410,967 $ 1,095,404 $ 426,147 $ (8,584) $ 56,573 121 (1,581) 13,381 (1,428) 35 1,805 3,994 (4,984) Net Cash Provided by Operating Activities $ 21,092 104 (10,274) 240 (1,216) 113 1,565 3,421 (4,236) 59,332 $ Noncash Capital and Related Financing Activities Capital assets purchased on account $ 10,809 Total $ 407,836 (194,294) (143,401) 70,141 15,303 85,444 1,436,107 $ 1,521,551 $ 12,508 56,573 225 (11,855) 13,621 (2,644) 148 3,370 7,415 (9,220) $ 70,141 75,186 $ $ The notes to the financial statements are an integral part of this statement. 42 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies A. Reporting Entity The City of Lauderdale, Minnesota (the City), operates under the "Optional Plan A" form of government as defined in the State of Minnesota statutes. Under this plan the government of the City is directed by a City Council composed of an elected Mayor and four elected City Council members. The City Council exercises legislative authority and determines all matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City has considered all potential units for which it is financially accountable, and other organizations for which the nature and significance of their relationship with the City are such that exclusion would cause the City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria to be considered in determining financial accountability. These criteria include appointing a voting majority of an organization's governing body, and (1) the ability of the City to impose its will on that organization or (2) the potential for the organization to provide specific benefits to or impose specific financial burdens on the primary government. The City has no component units that meet the GASB criteria. B . Government -wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. S eparate financial statements are provided for governmental and proprietary funds. Major individual governmental funds and major individual enterpnse funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. P roperty taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. 43 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. 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 certain reported amounts and disclosures. Accordingly actual results could differ from those estimates. The City reports the following major governmental funds: The General fund is the City's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Street Improvement fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by proprietary funds. The TIF District No. 1-2 fund accounts for activity related to the tax increment financing district 1-2. The 2019A G.O. Improvement Bonds fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of the fund. The Park Improvement Projects fund accounts for the costs associated with the park projects completed within the City. The City reports the following major proprietary funds: The Sewer fund accounts for the costs associated with the City's sanitary sewer system and to ensure that user charges are sufficient to pay for those costs. The Storm Sewer fund accounts for the costs of the City's storm sewer system, which are financed by the storm sewer surcharge, and to ensure that the user charges are sufficient to pay of those costs. As a general rule, the effect of interfund activity has been eliminated from government -wide financial statements. Exceptions to this general rule are charges between the City's sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise fund are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 44 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from date of acquisition. The proprietary funds' portion in the government - wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statement of cash flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. The City may invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. General obligations of a state or local government with taxing powers rated "A" or better; revenue obligations rated "AA' or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8. Repurchase or reverse repurchase 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. Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City's recurring fair value measurements are listed in detail on page 52 and are valued using a matrix pricing model (Level 2 inputs). 45 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) The City has the following recurring fair value measurements as of December 31, 2020: • Negotiable certificates of deposit of $2,267,129 are valued using a matrix pricing model (Level 2 inputs) The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission (SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City's investment in this pool is valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14 -day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be obtained by contracting RBC Global Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. Property Taxes The City Council annually adopts a tax levy in December and certifies it to the County for collection the following year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected by the County Treasurer and tax settlements are made to the City during January, July and December each year. In the fund financial statements, taxes that remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by deferred inflow of resources, because they are not known to be available to finance current expenditures. Delinquent taxes receivable include the past six years' uncollected taxes. The billings are considered past due 60 days after the respective tax billing date, at which time the applicable property is subject to lien, and penalties and interest are assessed.. Accounts Receivable Accounts receivable include amounts billed for services provided before year end Unbilled utility enterprise fund receivables are also included for services provided in 2020. The City annually certifies delinquent sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. In the fund financial statements, special assessments that remain unpaid at December 31 are classified as delinquent special assessments receivable. All governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e , the current portion of interfund loans) or "advances to/from other funds' (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds.' Any residual balances outstanding between the governmental activities and business type activities are reported in the government -wide financial statements as "internal balances." Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. 46 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) Assets Held for Resale Assets held for resale represent property purchased by the City with the intent to sell in order to increase tax base or to attract new businesses. These assets are stated at the lower of costs or net realizable value. During the year ended December 31, 2019, management has reviewed the cost value reported for these assets and has indicated the properties are fairly presented for financial reporting purposes. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Buildings and Improvements Improvements other than Buildings Machinery and Equipment Infrastructure Deferred Outflows of Resources Useful Lives in Years 7 - 40 15-40 3-20 25 - 50 In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items which qualify for reporting in this category. Accordingly, the items deferred pension resources and deferred other postemployment benefit resources are reported only in the statement of net position These items result from actuarial calculations and current year pension contributions made subsequent to the measurement dates. 47 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate the governmental net pension liability. The total pension expense for the for the year ended December 31, 2020 was $13,595. The components of pension expense are noted in the plan summaries in Note 4. Compensated Absences The City's policy allows for the carryover of unused vacation and sick leave to the next calendar year. Unused vacation and sick leave is accrued to the fund from which it is expected to be liquidated. Half of unused sick leave earned is payable upon separation from the City if the employee has been employed by the City for ten or more years. Three employees met the ten-year requirement at year end. The General fund is typically used to liquidate governmental compensated absences payable. Long-term Obligations In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund type statement of net position. The recognition of bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Inflows of Resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies as needing to be reported in this category. Accordingly the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City has an additional item which qualifies for reporting in this category. The item, deferred pension resources, is reported only in the statements of net position and results from actuarial calculations. 48 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 1: Summary of Significant Accounting Policies (Continued) Fund Balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted Amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City's 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 constrained for specific purposes that are internally imposed. In governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the City Administrator. Unassigned The residual classification for the General fund and also negative residual amounts in other funds. The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. The City's policy is to maintain a minimum unassigned fund balance of an amount not less than 45 percent of budgeted expenditures of the General fund for cash- flow timing needs. Net Position In the government -wide financial statements, net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net position - All other net position balances that do not meet the definition of "restricted" or "net investment in capital assets" When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. 49 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 2: Stewardship, Compliance, and Accountability A. Budgetary Information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund and special revenue funds. All annual appropriations lapse at fiscal year-end. The City does not use encumbrance accounting. In early summer of each year, the City Administrator works with staff to prepare a draft budget that identifies spending priorities. The City Administrator presents to the Council in August for review and discussion. The preliminary levy is established by the Council in September. The City Council holds a public hearing and the final budget and levy is adopted in early December. The appropriated budget is prepared by fund, function, and department. The City's department heads may make transfers of appropriations within a department Transfers of appropriations between departments require the approval of the City Administrator. The legal level of budgetary control (i.e , the level at which expenditures may not legally exceed appropriations) is the department level Budgeted amounts are as originally adopted, or as amended by the City Council. There were no budget amendments in 2020. B. Excess of Expenditures Over Appropriations For the year ended December 31, 2020 expenditures exceeded appropriations in the following funds. Fund General Communications Recycling Budget $ 1,446,684 18,257 63,302 Excess of Expenditures Over Actual Appropriations $ 1,517,278 19,990 63,800 The excess expenditures were funded by revenues in excess of expectations or available fund balance. 50 $ 70,594 1,733 498 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3. Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. 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 with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. 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; • General obligation securities of any state or local government with taxing powers which is rated "A' or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the City. At year end, the City's carrying amount of deposits was $219,877 and the bank balance was $233,992. The bank balance was covered by federal depository insurance and collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. 51 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Investments At year end, the City's investment balances were as follows: Credit Segmented Quality/ Time Fair Value Measurement Using Type of Investment Ratings (1) Distribution (2) Amount Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs Broker Money Market N/A less than 6 months $ 8,108 4M Fund P1 less than 6 months 1,636,526 Non -pooled Investments at Fair Value Negotiable Certificates of Deposit N/A less than 1 year 2,267,129 $ - $ 2,267,129 $ Total Investments $ 3,911,763 $ - $ 2,267,129 $ (1) Ratings provided by Moody's credit rating agency. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available Investment Policy It is the policy of the City to invest public funds in a manner, which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City in accordance with all Minnesota and local statutes governing the investment of public funds. The investments of the City are subject to the following risks: • Credit Risk. 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 and the City's investment policy limit the City's investments. • Custodial Credit Risk. The custodial credit risk for investments is the risk that in the event of the 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 specifically addresses custodial credit risk by limiting the amount that the City may invest in any one financial institution. • Concentration of Credit Risk. The concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The City's investment policy limits investments in any one investment company to a maximum of 60 percent of the investment portfolio or $2,000,000 (whichever) is less. • Interest Rate Risk. The interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment In accordance with its investment policy, the City manages its exposure to declines in fair values by limiting the maturity of its investment portfolio to less than ten years 52 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Cash and Investments Summary A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows: Carrying Amount of Deposits Investments Total Cash and Temporary Investments B. Capital Assets Capital asset activity for the year ended December 31, 2020 was as follows: Total Reporting Entity $ 219,877 3,911,763 $ 4,131,640 Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not being Depreciated Land $ 322,040 $ - $ Construction in progress 1,736,980 (1,736,980) Total Capital Assets not being Depreciated 2,059,020 - (1,736,980) $ 322,040 322,040 Capital Assets, being Depreciated Buildings 241,031 - 241,031 Improvements other than buildings 282,535 58,266 - 340,801 Machinery and equipment 315,840 176,346 (101,971) 390,215 Infrastructure 5,710,565 1,758,783 - 7,469,348 Total Capital Assets being Depreciated 6,549,971 1,993,395 (101,971) 8,441,395 Less Accumulated Depreciation for Buildings (203,564) (1,475) - (205,039) Improvements other than buildings (215,487) (17,131) - (232,618) Machinery and equipment (230,836) (17,870) 65,881 (182,825) Infrastructure (1 758,408) (114,211) - (1 872,619) Total Accumulated Depreciation (2 408,295) (150,687) 65,881 (2,493,101) Total Capital Assets being Depreciated, Net 4,141,676 1,842,708 (36,090) 5,948,294 Governmental Activities Capital Assets, Net $ 6,200,696 $ 1,842,708 $ (1,773,070) $ 6,270,334 53 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Business -type Activities Capital Assets being Depreciated Infrastructure Machinery and equipment Total Capital Assets being Depreciated Less Accumulated Depreciation for Infrastructure Machinery and equipment Total Accumulated Depreciation Beginning Balance Increases $ 2,190,470 $ 15,000 2,205,470 (549,605) (10,667) (560,272) Total Capital Assets Being Depreciated, Net 1,645,198 Business -type Activities Capital Assets, Net Decreases 75,186 $ Ending Balance - $ 2,265,656 - 15,000 75,186 (55,573) (1,000) (56,573) 18,613 $ 1,645,198 $ 18,613 $ Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities General government Public works Culture and recreation Total Depreciation Expense - Governmental Activities 2,280,656 (605,178) (11,667) (616,845) 1,663,811 - $ 1,663,811 $ 2,818 122,274 25,595 $ 150,687 Business -type Activities Sewer $ 56,573 54 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) C. Interfund Receivables, Payables and Transfers The City made transfer during the fiscal year 2020 as shown and described below: Transfer In 2019A G.O. Other Street Improvement Governmental Fund Improvement Bonds Funds Total Transfer Out General $ 78,897 $ - $ 38,000 $ 116,897 Other governmental funds 67,769 67,769 Total Transfers Out $ 78,897 $ 67,769 $ 38,000 $ 184,666 Transfers were made for the following purposes: • $67,769 was transferred from the other governmental funds to the other 2019A GO Improvement Bonds fund to fund debt service requirements. • $38,000 was transferred from the General fund to the other governmental funds to fund capital purchases. • $78,897 was transferred from the General fund to the Street Improvement fund for future street improvement projects. D. Long-term Debt General Obligation Special Assessment Bonds The following bonds were issued to finance various capital improvements and will be repaid from special assessments levied on the properties benefiting from the improvements and from ad valorem tax levies. All special assessment debt is backed by the full faith and credit of the City Each year the combined assessment and tax levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any delinquencies in tax or assessment payments. Description G.O. Improvement Bonds, Series 2019A Authorized Interest Issue Maturity Balance at and Issued Rate Date Date Year End $ 1,000,000 1.50 - 3.00 % 06/26/19 02/01/30 $ 1,000,000 55 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) The annual service requirements to maturity for the general obligation special assessment bonds are as follows: Year Ending December 31, 2021 2022 2023 2024 2025 2026 - 2030 Total General Obligation Tax Increment Bonds Governmental Activities Principal Interest $ 100,000 $ 100,000 100,000 100,000 100,000 500,000 $ 1,000,000 Total 21,000 $ 19,500 17,938 16,312 14,625 36,875 121,000 119,500 117,938 116,312 114,625 536,875 $ 126$ ,250 1,126,250 The following bonds were issued for redevelopment projects. The bonds will be repaid from future net revenues pledged from the additional tax increments resulting from increased tax capacity of the redevelopment properties in the Tax Increment District No. 1-2 or land sale proceeds. Description Authorized and Issued G.O. Tax Increment Revenue Bonds, Series 2018A $ 1,295,000 Interest Rate 1.950 % Issue Date 05/01/18 Maturity Date Balance at Year End 02/01/21 $ 1,295,000 Annual debt service requirements to maturity for general obligation tax increment bonds are as follows: Year Ending December 31, 2021 56 Governmental Activities Principal Interest $ 1,295,000 $ Total 12,626 $ 1,307,626 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Changes in Long-term Liabilities Long term liability activity for the year ended December 31, 2020, was as follows: Governmental Activities B onds Payable G.O. improvement bonds G.O. tax increment bonds Total Bonds Payable Beginning Ending Due Within Balance Increases Decreases Balance One Year $ 1,000,000 $ 1,295,000 2,295,000 $ - $ 1,000,000 $ 100,000 - 1,295,000 1,295,000 2,295,000 1,395,000 U namortized Premium on Bonds 22,165 (2,333) 19,832 Compensated Absences Payable 41,882 38,478 (28,315) 52,045 28,315 Governmental Activity Long-term Liabilities $ 2,359,047 $ 38,478 $ (30,648) $ 2,366,877 $ 1,423,315 B usiness -type Activities Compensated Absences Payable $ 12,672 $ 19,412 $ (16,042) $ 16,042 $ 16,042 57 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) E. Components of Fund Balance At December 31, 2020, portions of the City's fund balance are not available for appropriation due to not being in spendable form (Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent (Assigned). The following is a summary of the components of fund balance: Fund Fund Balance - Nonspendable General Fund Balance - Restricted Transportation TIF District No 1-2 2018A G.O. TIF Revenue Bonds 2019A G.O. Improvement Bonds Street maintenance Total fund balance - Restricted Fund Balance - Committed Communications Recycling Total Fund Balance - Committed Fund Balance - Assigned Capital improvement streets General capital improvement Development Park improvement Total Fund Balance - Assigned Fund Balance - Unassigned General Total Fund Balance 58 Purpose Amount P repaid items Traportation Improvements Tax increments D ebt service D ebt service Street maintenance Cable access Recycling Street capital Capital purchases D evelopment P ark capital 1,825 52,214 1,190,097 312 222,641 32,917 1,498,181 14,519 75,486 90,005 441,255 159,489 365,801 217,293 1,183,838 827,767 $ 3,601,616 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plan - Statewide A. Plan Description The City participates in the following cost-sharing multiple -employer defined benefit pension plans administered by the P ublic Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees P lan members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. B . Benefits Provided P ERA 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. General Employee Plan Benefits G eneral Employees Plan 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 P ERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent of average salary for each of the first 10 years of service and 1.7 percent of average salary for e ach additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for average salary for all years of service. For members hired prior to July 1 1989 a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989 normal retirement age is the age for u nreduced Social Security benefits capped at 66. B enefit increases are provided to benefit recipients each January. Beginning in 2020, the postretirement increase will be 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 1.5 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 For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase will be delayed u ntil normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. C. Contributions Minnesota statutes chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Employees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2019 and the City was required to contribute 7 50 percent for Coordinated Plan members. The City's contributions to the General E mployees Fund for the year ending December 31, 2020 2019 and 2018 were $30,623, $29,770 and $28,591 respectively. The City s contributions were equal to the required contributions for each year as set by state statute. 59 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plan - Statewide (Continued) D. Pension Costs General Employees Fund Pension Costs At December 31, 2020, the City reported a liability of $335,742 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 to the fund in 2020. 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 $10,402. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City s proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2020, the City's proportionate share was 0.0056 percent which was the same as its proportion measured as of June 30,2019. City's Proportionate Share of the Net Pension Liability $ 335,742 State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 10,402 Total $ 346,144 For the year ended December 31, 2020, the City recognized pension expense of $12 690 for its proportionate share of the General Employees Plan's pension expense In addition, the City recognized an additional $905 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, 2020, the City reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources and its contributions subsequent to the measurement date, from the following sources: D ifferences between Expected and Actual Economic Experience Changes in Actuarial Assumptions N et Difference between Projected and Actual Earnings on Plan Investments Changes in Proportion Contributions Paid to PERA Subsequent to the Measurement Date Total 60 D eferred O utflows of Resources $ 3,006 Me Deferred Inflows of Resources $ 1,270 12,322 11,704 4,654 3,218 15,265 - $ 34,629 $ 16,810 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 4: Defined Benefit Pension Plan - Statewide (Continued) The $15,265 reported as deferred outflows of resources related to pensions resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended D ecember 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2021 $ (14,835) 2022 1,348 2023 7,925 2024 8,116 E . Actuarial Assumptions The total pension liability in the June 30, 2020 actuarial valuation was determined using an individual entry -age normal actuarial cost method and the following actuarial assumptions: Inflation 2.50% per year Active Member Payroll Growth 3.25% per year Investment Rate of Return 7.50% S alary increases were based on a service -related table. Mortality rates for active members retirees, survivors and disabilitants were based on RP -2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for General Employees Plan and 1.0 percent per year for Police and Fire Plan. Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees plan was completed in 2019. The most recent four- year experience study for the Police and Fire Plan was completed in 2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions The following changes in actuarial assumptions and plan provisions occurred in 2020: General Employees Fund Changes in Actuarial Assumptions • The mortality projection scale was changed from MP -2017 to MP -2018. Changes in Plan Provisions • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year The state's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 61 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 4. Defined Benefit Pension Plan - Statewide (Continued) 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 D omestic Equity P rivate Markets Fixed Income International Equity Cash Equivalents Total F. Discount Rate Target Allocation 35.5 25.0 20.0 17.5 2.0 100.00 Long-term Expected Real Rate of Return 5A0 5.30 0.75 5.90 The discount rate used to measure the total pension liability in 2020 was 7.50 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 Fund was projected to be available to make all projected future benefit payments of current plan members Therefore the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: General Employees Fund H . Pension Plan Fiduciary Net Position City Proportionate Share of NPL 1 Percent 1 Percent Decrease (6.50%) Current (7.50%) Increase (8.50%) $ 538,084 $ 335,742 $ 168,833 D etailed 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.orq. 62 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 5: Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets' errors and o missions; injuries to employees; and natural disasters for which the City carries commercial insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City's coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $1,000,000 Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City's management is not aware of any incurred but not reported claims. B . Legal Debt Margin The City's statutory debt limit is computed as 3.0 percent of the taxable market value of property within the City. Long- term debt issued and financed partially or entirely by special assessments, tax increments or the net revenues of e nterprise fund operations is excluded from the debt limit computation. The City has no debt which is applied against the statutory debt limit. C. Concentrations The City receives a significant amount of its annual General fund revenue from the State of Minnesota from the Local G overnment Aid (LGA) program. The amount received in 2020 was $548,671 for LGA. This accounted for 33 percent of G eneral fund revenue. D . Tax Increment Financing Districts The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA) Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance, which would have a material effect on the financial statements. Note 6 Conduit Debt Obligations Conduit debt obligations are certain limited -obligation revenue bonds or similar instruments issued for express purpose of providing capital financing for a specific third party. The City has issued revenue bonds to provide funding to private - sector entities for projects deemed to be in public interest. Although these bonds bear the name of the City, the City has n o obligation for such debt. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31, 2020 the following issues were outstanding: Name Original Amount Balance Date of Issue of Issue Outstanding Catholic Eldercare 12/1/2014 $ 9,300,000 $ 7,310,088 Benedictine Health System 7/14/2016 10,000,000 8,744,751 Catholic Eldercare 11/7/2017 9,000,000 8,865,539 63 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2020 Note 7: Subsequent Event On January 27, 2021, the City issued $1,365,000 in Taxable General Obligation Tax Increment Revenue Refunding Bonds, Series 2021A. The bonds will be used to refund the 2018A General Obligation Tax Increment Revenue bonds. Note 8: COVID-19 On January 30, 2020, the World Health Organization ("WHO") announced a global health emergency because of a new strain of coronavirus ("COVID-19') and the risks to the international community as virus spreads globally. On March 11, 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. In response to the pandemic the State of Minnesota has issued stay-at-home orders and other measures aimed at slowing the spread of the coronavirus. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report. Due to the rapid development and fluidity of this situation the City cannot determine the ultimate impact that the COVID-19 pandemic will have on its financial condition, liquidity and future revenue collection, and therefore any prediction as to the ultimate impact on the City's financial condition, liquidity, and future results of its revenue collections is uncertain. 64 REQUIRED SUPPLEMENTARY INFORMATION CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 65 City of Lauderdale, Minnesota Required Supplementary Information December 31, 2020 Schedule of Employer's Share of PERA Net Pension Liability - General Employees Fund Fiscal Year Ending City's Proportion of the Net Pension Liability City's Proportionate Share of the Net Pension Liability (a) State's Proportionate Share of the Net Pension Liability Associated with the City (b) Total (a+b) City's Covered Payroll (c) City's Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll ((a+b)/c) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 06/30/20 06/30/19 06/30/18 06/30/17 06/30/16 06/30/15 0.0056 0.0055 0.0055 0.0057 0.0054 0.0054 $ 335,742 $ 304,081 305,114 363,882 438,453 279,856 10,402 9,500 9,738 4,555 5,757 $346,144 313,581 314,852 368,437 444,210 279,856 $403,062 389,732 371,496 365,590 335,413 318,761 83.3 78.0 82.1 99.5 130.7 87.8 Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. Schedule of Employer's PERA Contributions - General Employees Fund Year Ending 12/31/20 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 Contributions in Relation to the Statutorily Statutorily Contribution Required Required Deficiency Contribution Contribution (Excess) (a) (b) (a -b) $ 30,623 29,770 28,591 27,025 25,156 23,836 30,623 29,770 28,591 27,025 25,156 23,836 City's Covered Payroll (c) 408,307 396,933 381,213 360,333 335,413 317,813 79.0 80.2 79.5 75.9 68.9 78.2 Thntributions a: a Percentage o1 Covered Payrol (b/c) Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. 66 7.5 T5 7.5 7.5 7.5 7.5 OA City of Lauderdale, Minnesota Required Supplementary Information (Continued) December 31, 2020 Notes to the Required Supplementary Information - General Employees Fund Changes in Actuarial Assumptions 2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% 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% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 - The mortality projection scale was changed from MP -2017 to MP -2018. 2018 - The morality 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. 2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non -vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non -vested deferred member liability. The assumed post- retirement benefit increase rate was changed from 1 0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7 5 percent. Other assumptions were changed pursuant to the experience study dated June 30 2015 The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter. 67 City of Lauderdale, Minnesota Required Supplementary Information (Continued) December 31, 2020 N otes to the Required Supplementary Information - General Employees Fund (Continued) Changes in Plan Provisions 2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through D ecember 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 - 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 - 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. Postretirement benefit 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 - The States 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. 2015 - On January 1 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. U pon consolidation, state and employer contributions were revised. 68 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 69 Assets Cash and temporary investments Receivables Accounts Special assessments D ue from other goverments Total Assets Liabilities Accounts payable S alaries payable Total Liabilities Deferred Inflows of Resources U navailable revenue - special assessments Fund Balances Restricted Committed Assigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances City of Lauderdale, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2020 Special Revenue $ Debt Service 2018A G.O. TIF Revenue Bonds 84,418 $ 312 4,311 55,878 5,806 $ 150,413 $ 4,891 519 5,410 54,998 90,005 90,005 $ 150,413 70 $ 312 $ 312 312 $ 312 Capital Projects Total $ 525,290 $ 610,020 4,311 55,878 5,806 $ 525,290 $ 676,015 $ IMP 525,290 525,290 $ 4,891 519 5,410 54,998 312 90,005 525,290 615,607 $ 525,290 $ 676,015 City of Lauderdale, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 Debt Service Total 2018A Nonmajor Special G.O. TIF Capital Governmental Revenue Revenue Bonds Projects Funds Revenues Taxes Franchise fees $ 17,161 $ - $ - $ 17,161 Intergovernmental 6,331 6,331 Charges for services 39,559 39,559 Interest on investments 997 12 5,798 6,807 Miscellaneous - 4,970 4,970 Total Revenues 64,048 12 10,768 74,828 E xpenditures Current S anitation and recycling Culture and recreation Capital outlay E conomic development Debt service Interest and other Total Expenditures E xcess (Deficiency) of Revenues Under (Over) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) 63,800 - - 63,800 19,990 19,990 4,085 4,085 25,728 25,728 83,790 25,728 4,085 113,603 (19,742) (25,716) 6,683 (38,775) 38,000 (67,769) (29,769) 38,000 (67,769) (29,769) N et Change in Fund Balances (19,742) (25,716) (23,086) (68,544) Fund Balances, January 1 109,747 26,028 548,376 684,151 Fund Balances, December 31 $ 90,005 $ 312 $ 525,290 $ 615,607 71 Assets Cash and temporary investments Receivables Accounts Special assessments D ue from other governments City of Lauderdale, Minnesota Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2020 226 Communications 227 Recycling $ 11,984 $ 4,311 Total Assets $ 16,295 Liabilities Accounts payable $ S alaries payable Total Liabilities Deferred Inflows of Resources U navailable revenue - special assessments Fund Balances Committed 1,631 145 1,776 Me 14,519 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 16,295 72 Total 72,434 $ 84,418 IIIMP 55,878 5,806 4,311 55,878 5,806 $ 134,118 $ 150,413 $ 3,260 374 3,634 54,998 75,486 $ 4,891 519 5,410 54,998 90,005 $ 134,118 $ 150,413 City of Lauderdale, Minnesota Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 226 227 Communications Recycling Total Revenues Taxes Franchise fees $ 17,161 $ $ 17,161 Intergovernmental 525 5,806 6,331 Charges for services 39,559 39,559 Interest on investments 193 804 997 Total Revenues 17,879 46,169 64,048 Expenditures Current Sanitation and recycling Personal services Other services and charges Culture and recreation Personal services Other services and charges Total Expenditures Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 73 21,147 21,147 42,653 42,653 10,163 - 10,163 9,827 - 9,827 19,990 16,630 $ 63,800 83,790 (17,631) (19,742) 93,117 109,747 14,519 $ 75,486 $ 90,005 City of Lauderdale, Minnesota Communications Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended December 31 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) Revenues Taxes Franchise fees Intergovernmental Interest on investments Total Revenues 2020 2019 Final Actual Variance with Actual Budget Amounts Final Budget Amounts 20,000 $ 17,161 $ (2,839) $ 18,119 525 525 40 193 153 298 20,040 17,879 (2,161) 18,417 Expenditures Current Culture and recreation Personal services 9,957 10,163 (206) 9,706 Other services and charges 8,300 9,827 (1,527) 9,098 Total Expenditures 18,257 19,990 (1,733) 18,804 Net Change in Fund Balances 1,783 (2,111) (3,894) (387) Fund Balances, January 1 16,630 16,630 - 17,017 Fund Balances, December 31 $ 18,413 $ 14,519 $ (3,894) $ 16,630 74 City of Lauderdale, Minnesota Recycling Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended December 31 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) 2020 2019 Final Actual Variance with Actual Budget Amounts Final Budget Amounts Revenues Intergovernmental County $ 5,900 $ 5,806 $ (94) $ 5,742 Charges for services Sanitation 35,115 39,559 4,444 46,256 Interest on investments 1,200 804 (396) 1,863 Total Revenues 42,215 46,169 3,954 53,861 Expenditures Current Sanitation and recycling Personal services 23,830 21,147 2,683 26,532 Other services and charges 39,472 42,653 (3 181) 35,508 Total Expenditures 63,302 63,800 (498) 62,040 Net Change in Fund Balances (21,087) (17,631) 3,456 (8,179) Fund Balances, January 1 93,117 93,117 - 101,296 Fund Balances, December 31 $ 72,030 $ 75,486 $ 3,456 $ 93,117 75 City of Lauderdale, Minnesota Nonmajor Capital Projects Funds Combining Balance Sheet December 31, 2020 414 401 General Capital Development Improvement Total Assets Cash and temporary investments $ 365,801 $ 159,489 $ 525,290 Fund Balances Assigned 76 $ 365,801 $ 159,489 $ 525,290 City of Lauderdale, Minnesota Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 414 401 General Capital Development Improvement Total Revenues Interest on investments $ 4,140 $ 1,658 $ 5,798 Miscellaneous 4,970 4,970 Total Revenues 9,110 1,658 10,768 Expenditures Capital outlay Economic development 4,085 - 4,085 Excess (Deficiency) Of Revenues Over (Under) Expenditures 5,025 1,658 6,683 Other Financing Sources (Uses) Transfers in 38,000 - 38,000 Transfers out (67,769) - (67,769) Total Other Financing Sources (Uses) (29,769) - (29,769) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 77 (24,744) 390,545 1,658 (23,086) 157,831 548,376 $ 365,801 $ 159,489 $ 525,290 City of Lauderdale, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued on the Following Pages) For the Year Ended December 31 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) Revenues Taxes P roperty taxes Licenses and permits B usiness N onbusiness Total licenses and permits Intergovernmental Federal Other Federal Aid State Local government aid Other state grants Local Other local grants Total intergovernmental Charges for services General government Public safety Culture and recreation Total charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Contributions and donations Other Total miscellaneous Total Revenues 2020 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget $ 845,614 $ 845,614 $ 845,642 $ 4,050 36,600 40,650 547,872 1,198 549,070 4,050 36,600 40,650 547,872 1,198 549,070 4,118 32,339 36,457 127,007 548,671 53,887 5,000 734,565 10,750 1,000 600 12,350 27,000 6,000 2,500 1,500 4,000 1,484,684 10,750 1,000 600 12,350 27,000 6,000 2,500 1,500 4,000 1,484,684 79 11,532 35 42 11,609 24,203 539 15,558 55 2,801 2,856 1,671,429 28 68 (4,261) (4,193) 127,007 799 52,689 5,000 185,495 2019 Actual Amounts $ 813,079 4,250 38,525 42,775 539,622 1,198 540,820 782 (965) (558) (741) (2,797) 539 9,558 (2,445) 1,301 (1,144) 186,745 15,295 1,210 700 17,205 29,977 2,303 30,295 2,159 2,994 5,153 1,481,607 City of Lauderdale, Minnesota General Fund Schedule of Revenues Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) Expenditures Current General government Legislative and executive Personal services Supplies Other services and charges Total legislative and executive 2020 Budgeted Amounts Original Final $ 17,803 350 8,370 26,523 Administration Personal services 175,360 S upplies 5,050 Other services and charges 41,400 Total administration 221,810 Election, audit, and legal fees Personal services S upplies Other services and charges Total election, audit, and legal fees 20,830 3,000 43,500 67,330 Planning and zoning Personal services 21,402 S upplies 1,500 Other services and charges 48,925 Total planning and zoning 71,827 Total general government 387,490 Public safety Police Other services and charges Fire Other services and charges 762,463 34,000 Building inspections Personal services 43,982 Other services and charges 6,100 Total building inspections 50,082 Total public safety 846,545 $ Actual Variance with Amounts Final Budget 17,803 $ 350 8,370 26,523 175,360 5,050 41,400 221,810 20,830 3,000 43,500 67,330 21,402 1,500 48,925 71,827 387,490 762,463 34,000 43,982 6,100 50,082 846,545 80 17,811 695 5,701 24,207 179,210 8,358 94,612 282,180 21,206 3,188 58,594 82,988 21,886 627 25,817 48,330 437,705 762,452 64,574 47,232 6,718 53,950 880,976 $ 2019 Actual Amounts (8) $ (345) 2,669 2,316 (3,850) (3,308) (53,212) (60,370) (376) (188) (15,094) (15,658) (484) 873 23,108 23,497 (50,215) 11 (30,574) (3,250) (618) (3,868) (34,431) 17,807 8,473 26,280 171,852 7,502 35,975 215,329 15,358 2,703 48,907 66,968 21,176 1,128 39,746 62,050 37Q627 729,063 42,207 45,080 6,310 51,390 822,660 City of Lauderdale, Minnesota General Fund Schedule of Revenues Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31 2020 (With Comparative Actual Amounts for the Year Ended December 31, 2019) Expenditures (Continued) Current (continued) Public works Streets and highways P ersonal services S upplies Other services and charges Total streets and highways Street lighting Other services and charges Total public works Culture and recreation Parks and recreation Personal services S upplies Other services and charges Total culture and recreation Economic development Other services and charges Total Expenditures Excess of Revenues Over Expenditures Other Financing Sources (Uses) Transfers out Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 2020 Budgeted Amounts Original Final $ 56,148 6,850 37,150 100,148 6,000 106,148 82,501 600 10,400 93,501 13,000 1,446,684 38,000 (38,000) 792,338 $ 792,338 Actual Variance with Amounts Final Budget $ 56,148 $ 6,850 37,150 100,148 6,000 106,148 82,501 600 10,400 93,501 13,000 1,446,684 38,000 (38,000) 792,338 $ 792,338 81 51,443 $ 3,736 51,619 106,798 6,041 112,839 73,327 1,178 6,601 81,106 4,652 1,517,278 154,151 (116,897) 37,254 792,338 $ 829,592 2019 Actual Amounts 4,705 $ 3,114 (14,469) (6,650) (41) (6,691) 9,174 (578) 3,799 12,395 8,348 (70,594) 116,151 (78,897) 37,254 $ 37,254 52,017 4,609 48,769 105,395 6,124 111,519 81,559 1,029 9,858 92,446 1,225 1,398,477 83,130 (38,000) 45,130 747,208 $ 792,338 City of Lauderdale, Minnesota Summary Financial Report Revenues and Expenditures For General Operations Governmental Funds For the Years Ended December 31, 2020 and 2019 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments Miscellaneous Total Revenues Per Capita Expenditures Current G eneral government P ublic safety Public works S anitation and recycling Economic development Culture and recreation Capital outlay Debt service Interest and bond issuance costs Total Expenditures Per Capita Total Long term Indebtedness Per Capita General Fund Balance - December 31 Per Capita Total 2020 2019 862,803 $ 36,457 855,896 51,168 24,203 76,967 32,284 41,025 831,198 42,775 546,562 63,461 29,977 90,433 73,592 758,485 $ 1,980,803 $ 2,436,483 $ 811 $ 1,012 $ 437,705 $ 880,976 112,839 63,800 4,652 101,096 295,465 50,068 $ 1,946,601 $ 797 $ 2,295,000 940 $ 829,592 340 370,627 822,660 112,751 62,155 1,225 111,250 2,503,954 67,791 $ 4,052,413 $ 1,683 $ 2,295,000 953 $ 792,338 329 Percent Increase (Decrease) 3.80 (14.77) 56.60 (19.37) (19.26) (14.89) (56.13) (94.59) (18.70) % (19.83) % 18.10 7.09 0.08 2.65 279.76 (9A3) (88.20) (26.14) (51.96) (52.63) N /A N /A 4.70 3.25 The purpose of this report is to provide a summary of financial information concerning the City of Lauderdale to interested citizens. The complete financial statements may be examined at City Hall, 1891 Walnut Street, Lauderdale, MN 55113. Questions about this report should be directed to Heather Butkowski, City Administrator at (651)792-7650. 82 OTHER REQUIRED REPORT CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2020 83 r ABDO r1,5.141 � � yrs EICK & RS LH' Grt r/i»(1 Public :'1 c'c'U(1111(11tts (,Olt.stll t(111ts INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Lauderdale, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of City of Lauderdale, Minnesota (the City) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated April 20, 2021. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota statute §6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions. This report is intended solely for the information and use of those charged with governance and management of the City of Lauderdale and the State Auditor and is not intended to be, and should not be, used by anyone other than these specified parties. abbiaiNmoiLtio ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 20, 2021 5201 Eden Avenue, Suite 250 Edina, MN 55436 952.835.9090 1 Fax 952.835.3261 85 Management Communication ABDO EICK & MEYE LLP Certified Public Accountants & Consultants City of Lauderdale Lauderdale, Minnesota For the Year Ended December 31, 2020 People +Process, Going 13e �ondu�e Munbers Certified Public Accountants (SC Consultants Management, Honorable Mayor and City Council City of Lauderdale, Minnesota April 20, 2021 We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Lauderdale, Minnesota (the City) for the year ended December 31, 2020 and have issued out report thereon dated April 20, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter dated November 20, 2020. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because an audit is designed to provide reasonably, but not absolute, assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or illegal acts may exist and not be detected by US. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control over financial reporting of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control over financial reporting. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the 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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 5201 Eden Avenue, Suite 250 Edina, MN 55436 952.835.9090 1 Fax 952.835.3261 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported in accordance with Minnesota statutes. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies were not changed during the year ended December 31, 2020 We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were capital asset basis, depreciation, compensated absences, and the liability for the City's pensions. ® Management's estimate of depreciation is based on estimated useful lives of the assets Depreciation is calculated using the straight-line method. • Allocations of gross wages and payroll benefits are approved by the City Council within the City's budget and are derived from each employee's estimated time to be spent servicing the respective function of the City. These allocations are also used in allocating accrued compensated absences payable. ® Management's estimate of its pension liability is based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement. We evaluated the key factors and assumptions used to develop these accounting estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. D ifficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements P rofessional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. We assisted in preparing a number of year end accounting entries. These were necessary to adjust the City's records at year end to correct ending balances. The City should establish more detailed processes and procedures to reduce the total number of entries in each category. The City will receive better and timelier information if the preparation of year end entries is completed internally. D isagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. 3 1'et) )(f + Process Goi11" I3t"suiI 1111 Nttiii 1 )(!tS Management Representations We have requested certain representations from management that are included in the management representation letter dated April 20, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management's Discussion and Analysis, the Schedules of Employer's Share of the Net Pension Liability, the Schedules of Employer's Contributions, which is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information (combining and individual fund financial statements and schedules, and schedule of federal awards), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section which accompany the financial statements but is not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. 4 iIE!!O1 )1C -�- Proccss. Cming 13ei7zidow Nwithers Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: (1) GASB Statement No. 87 - Leases Summary The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should not restate the assets underlying their existing sales -type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. H ow the Changes in This Statement Will Improve Accounting and Financial Reporting This Statement will increase the usefulness of governments' financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision - usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government's leasing arrangements. GASB Statement No. 89 - Accounting for Interest Cost Incurred before the End of a Construction Period S ummary The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. S uch interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - N ovember 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. 5 F!eoj )IP -I I'r'OCCss Nti n bers Future Accounting Standard Changes (Continued) Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2020 Earlier application is encouraged. The requirements of this Statement should be applied prospectively. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business -type activities. GASB Statement No. 91 o Conduit Debt Obligations Summary The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so. An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor's debt service through a voluntary commitment. This Statement also addresses arrangements - often characterized as leases - that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third -party obligors in the course of their activities. Payments from third -party obligors are intended to cover and coincide with debt service payments During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements. This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers' conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged. 6 1hp1e -1 1'r'OCCSS (Joing I3eyOIld the 1u _)eI's Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders' uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers' roles in conduit debt obligations. GASB Statement No. 92 - Omnibus 2020 Summary The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions about the following: • The effective date of Statement No. 87, Leases, and Implementation Guide No 2019-3, Leases, for interim financial reports ® Reporting of intra -entity transfers of assets between a primary government employer and a component unit defined benefit pension plan or defined benefit other postemployment benefit (OPEB) plan • The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets accumulated for postemployment benefits • The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to postemployment benefit arrangements • Measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition • Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers ® Reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature • Terminology used to refer to derivative instruments. 7 1%'oI )Ie + Fi'ocess. ;oiI1 13e\ohlI the withers Future Accounting Standard Changes (Continued) Effective Date and Transition The requirements of this Statement are effective as follows: • The requirements related to the effective date of Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. • The requirements related to intra -entity transfers of assets and those related to the applicability of Statements 73 and 74 are effective for fiscal years beginning after June 15, 2020. • The requirements related to application of Statement 84 to postemployment benefit arrangements and those related to nonrecurring fair value measurements of assets or liabilities are effective for reporting periods beginning after June 15, 2020. • The requirements related to the measurement of liabilities (and assets, if any) associated with AROs in a government acquisition are effective for government acquisitions occurring in reporting periods beginning after June 15, 2020. Earlier application is encouraged and is permitted by topic. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users of state and local government financial statements. GASB Statement No. 93 - Replacement of Interbank Offered Rates Summary The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. This Statement achieves that objective by: • Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument's variable payment • Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate • Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged expected transaction is probable • Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap • Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap • Clarifying the definition of reference rate, as it is used in Statement 53, as amended • Providing an exception to the lease modifications guidance in Statement 87, as amended, for certain lease contracts that are amended solely to replace an IBOR as the rate upon which variable payments depend 8 Future Accounting Standard Changes (Continued) Effective Date and Transition The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2020 Earlier application is encouraged. The exceptions to the existing provisions for hedge accounting termination and lease modifications in this Statement will reduce the cost of the accounting and financial reporting ramifications of replacing IBORs with other reference rates. The reliability and relevance of reported information will be maintained by requiring that agreements that effectively maintain an existing hedging arrangement continue to be accounted for in the same manner as before the replacement of a reference rate. As a result, this Statement will preserve the consistency and comparability of reporting hedging derivative instruments and leases after governments amend or replace agreements to replace an IBOR. H ow the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. More comparable reporting will improve the usefulness of information for users of state and local government financial statements. GASB Statement No. 94 - Public -Private and Public -Public Partnerships and Availability Payment Arrangements S ummary The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public -public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange -like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement. This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange -like transaction. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. P PPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated). H ow the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government's financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government's P PPs and evaluate a government's future obligations and assets resulting from PPPs. 9 IkH*oJ )IC + I'i •ocess Coin°. I3eyoiil i hr Nwillwrs Future Accounting Standard Changes (Continued) GASB Statement No. 95 - Postponement of the Effective Dates of Certain Authoritative Guidance Summary The primary objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. The effective dates of certain provisions contained in the following pronouncements are postponed by one year: • Statement No. 83, Certain Asset Retirement Obligations • Statement No. 84, Fiduciary Activities • Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements • Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period • Statement No. 90, Majority Equity Interests • Statement No. 91, Conduit Debt Obligations • Statement No. 92, Omnibus 2020 • Statement No. 93, Replacement of Interbank Offered Rates • Implementation Guide No 2017-3, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting) • Implementation Guide No 2018-1, Implementation Guidance Update - 2018 • Implementation Guide No. 2019-1, Implementation Guidance Update - 2019 • Implementation Guide No 2019-2, Fiduciary Activities. The effective dates of the following pronouncements are postponed by 18 months: • Statement No. 87, Leases • Implementation Guide No 2019-3, Leases. Effective Date and Transition The requirements of this Statement are effective immediately. H ow the Changes in This Statement Will Improve Accounting and Financial Reporting P roviding governments with sufficient time to apply the authoritative guidance addressed in this Statement will help to safeguard the reliability of their financial statements, which in turn will benefit the users of those financial statements. 10 tiE*oJ )IC + Fi'occss ,. Going 13e)ond oh. Future Accounting Standard Changes (Continued) GASB Statement No. 96 - Subscription -Based Information Technology Arrangements S ummary This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a S BITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. U nder this Statement, a government generally should recognize a right -to -use subscription asset - an intangible asset - and a corresponding subscription liability. A government should recognize the subscription liability at the commencement of the subscription term, - which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term. Future subscription payments should be discounted using the interest rate the SBITA vendor charges the government, which may be implicit, or the government's incremental borrowing rate if the interest rate is not readily determinable. A government should recognize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods. This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum possible term under the SBITA contract of 12 months (or less), including any options to extend, regardless of their probability of being exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources. This Statement requires a government to disclose descriptive information about its SBITAs other than short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of a subscription liability, principal and interest requirements for the subscription liability, and other essential information. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Earlier application is encouraged. Assets and liabilities resulting from SBITAs should be recognized and measured using the facts and circumstances that existed at the beginning of the fiscal year in which this Statement is implemented Governments are permitted, but are not required, to include in the measurement of the subscription asset capitalizable outlays associated with the initial implementation stage and the operation and additional implementation stage incurred prior to the implementation of this Statement. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing u niform guidance for accounting and financial reporting for transactions that meet that definition. That definition and u niform guidance will result in greater consistency in practice Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government's financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government's SBITA activities and evaluate a government's obligations and assets resulting from SBITAs. • 11 Peo1 )le +1'r'occss Ise p(Hiti r�ir \timbers Future Accounting Standard Changes (Continued) GASB Statement No. 97 - Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 Summary The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This Statement requires that for purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution pension plan, a defined contribution OPEB plan, or another employee benefit plan (for example, certain Section 457 plans), the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. This Statement also requires that the financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively. This Statement (1) requires that a Section 457 plan be classified as either a pension plan or another employee benefit plan depending on whether the plan meets the definition of a pension plan and (2) clarifies that Statement 84, as amended, should be applied to all arrangements organized under IRC Section 457 to determine whether those arrangements should be reported as fiduciary activities. This Statement supersedes the remaining provisions of Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, as amended, regarding investment valuation requirements for Section 457 plans. As a result, investments of all Section 457 plans should be measured as of the end of the plan's reporting period in all circumstances. Effective Date and Transition The requirements of this Statement that (1) exempt primary governments that perform the duties that a governing board typically performs from treating the absence of a governing board the same as the appointment of a voting majority of a governing board in determining whether they are financially accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee benefit plans and (2) limit the applicability of the financial burden criterion in paragraph 7 of Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74, respectively, are effective immediately. The requirements of this Statement that are related to the accounting and financial reporting for Section 457 plans are effective for fiscal years beginning after June 15, 2021. For purposes of determining whether a primary government is financially accountable for a potential component unit, the requirements of this Statement that provide that for all other arrangements, the absence of a governing board be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform, are effective for reporting periods beginning after June 15, 2021 Earlier application of those requirements is encouraged and permitted by requirement as specified within this Statement. The Board considered the effective dates for the requirements of this Statement in Tight of the COVID-19 pandemic and in concert with Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. 12 FeojAe + Froccss. G()1I1 Iiewlidthr wit )PT's Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will result in more consistent financial reporting of defined contribution pension plans, defined contribution OPEB plans, and other employee benefit plans, while mitigating the costs associated with reporting those plans. The requirements also will enhance the relevance, consistency, and comparability of (1) the information related to Section 457 plans that meet the definition of a pension plan and the benefits provided through those plans and (2) investment information for all Section 457 plans. (1) Note. From GASB Pronouncements Summaries. Copyright 2020 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. Restriction on Use This purpose of this communication is solely for the information and use of the City Council and management of the City and is not intended to be, and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. Olibs *Am, Luo ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 20, 2021 13 I%*oj + IrOCCSS. VOi 1 log 13eydr i(11 hrn lll n _)ers LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion Action Resolution Work Session X X X Meeting Date April 27, 2021 ITEM NUMBER Lot Division & Assign Address STAFF INITIAL Jim APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: 1876 Malvern Street consists of two forty -foot (40') lots that have been consolidated into one eighty -foot (80') parcel of land. The proposed division would recreate the two originally platted forty -foot (40') lots After dividing the lots, Parcel "A" (the northeily lot) would have a house, and Parcel "B" (the southerly lot) would be a vacant lot. The applicant removed the garage that straddled the underlying property line between the lots. Off-street paiking will be created at 1876 Malvein St. The resolution with survey will be registered with the Ramsey County Recorder. This will ena- ble the City to acquire a PIN (property identification number) for the parcels. OPTIONS: • Approve the lot division and address assignment by adopting the resolution as presented. e Amend the resolution before adopting. • Deny the lot division and address assignment by not adopting the resolution. STAFF RECOMMENDATION: Motion to adopt Resolution 042721A - A Resolution Approving Lot Split of Real Property Lo- cated at 1876 Malvern Street. eittp of £aucteulate LAND USE APPLICATION Fee Escrow Type of Request sos 0 $100 $ 0 $150 $ 0 $200 $ 0 $200 $ 0 $500 $1;000 $500 $1,000 $500 $x,000 Sign Permit Lot Consolidation/Division Variance Conditional Use Lot Line Rearrangement Zoning Amendment Subdivision PUD Applicant Information Name: 7/1-11 /fri"n) Address: / i' r /AAA tni i,� ta. c, s, ziW,✓ s s /4 Phone: A—I-5 977 /3 /7 Email: 7 Email: ✓4 r (,'C; - C4 Signature: MAIN 6511792:7650 Date: 9 I 74,27v Summary of Request t 41"4 tAtiefic,. P 1 Cils# I 0 ere) 7t, /Act I v -exit tit rte • ) 7hNVV Owner Information (if different), Name: cti ;AA et r� Qr --��� l�lLL- l-� -LAi- • Address:q4017i' S %vis , bit:t t �r..• C, S, Z: tct ‘%•0 ftl -57;nA. Phone: * l 7 ` /70 7-s- r5 Email: M Et)' nA.- S U, . cen\-, Signature: crec,N, By signing above, the applicant agrees to pay the application fee and deposit an escrow fee to cover the city's consultants' .costs associated with reviewing the associated request. Prior to having the request considered by the city, the applicant must deposit an escrow fee in an amount that is estimated to cover the city's consultants' costs as determined by the city administrator. If the city's consultants' costs exceed the initial escrow deposited by the applicant, an additional escrow fee will be required to cover the additional costs. The city shall use the applicant's fees to cover the city's actual consultants' costs in reviewing the request regardless of the city's action on the applicant's request. If the applicant's escrow fees exceed the city's actual consultants' costs for reviewing the request, the remaining escrow fees shall be refunded to the applicant. Review Timeline: Alt applications, other than concept plans, must be complete before being formally reviewed. Minnesota Statute provides 15 days to determine the application's completeness. Completeness depends on whether or not the checklist items are fulfilled. Checklist: Please review the checklist for the type of application you are applying for. Fo�..O.ffice Use Onl` .,. PIN#• .•.6 J t r i ‘6:68 •Arti.Q.u nt'Pa�d Date: of C'omplete!..,A.pp,lication ai:1,. I ! Receipt:•## . '' ,,.; ' Da. ei Escrow'•R•eturned: t ' roved e ri;!pd:2P4pPate: . y). 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(� xt• o0 0a co CO w c - us �6 p) C 6 4 x —i •` 1 C Q. ecr) co.ke `(lino O13131ropio l�L'Q In U) c x co� Ica �� jaaals UJAPW� 0 O I Nin (' Al Jo-1tl�Ia 1)0113011)0G ollgnd 1°°d 00.09) 0 0 V) 0 0 1* U) W° Zri�� 0 00 CO CO c 0 , Ti c 0 o E c 0 • 0 c J n, cal°- U N '� W �1 0 0 00 � U1 di C4 ,� o ,� p 0 Cr o Z �' ® :� 0 Z •C b L� � � N cli(_ 0 w U o w �, �, Minn. r� L _ by)C�� .-+ aE I.-( V p V1/2 '� II N Ci �` cd -4(7) cy OU W ccs ° ,- [-� 0 w w N - 'i7 * + A *� Qi 0 �, Ni CO , v) u A , U) o >� , • o ���Nb�, ��� C "w� (4_, r--� ~�T� W orn oU b� c -, • a _ 0 s0-< 0 •_ w h� co ' r; n -1 12. �, .--c o _ H > N )0001( cci _� co a 0 A tl 5 LtTh J • � f- G; Ch O E...4 0 q- R/ r H b y p p \r O \ U '� CC3 CO h+h Fri U nd P ,_L 4-' N%C E �, 6 >1 grAres• C4 fl O W Oi • cr) fj br3 Co) Member introduced the following resolution and moved its adoption: CITY OF LAUDERDALE COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 042721A RESOLUTION APPROVING LOT SPLIT OF REAL PROPERTY LOCATED AT 1876 MALVERN STREET WHEREAS, the City of Lauderdale (the "City") has received a lot split request from Tim Helin and Schumacher Holdings, LLC (the "Applicants") for the real pioperty currently desciibed as: Lots 18 and 19, Block 6, Lauderdale's hast Side Addition to Minneapolis, Ramsey County, Minnesota (the "Property"). and WHEREAS, the proposed legal descriptions for the resulting parcels following the lot split are as follows: and Lot 19, Block 6, Lauderdale's East Side Addition to Minneapolis, Ramsey County, Minnesota (` Parcel A"), and Lot 18, Block 6, Lauderdale's hast Side Addition to Minneapolis, Ramsey County, Minnesota (` Parcel B"). WHEREAS, the lot split will comply with the requiiements of Title 10, Zoning, and Title 11, Subdivision, of the Lauderdale City Code, provided, however, that the Applicants create off-street parking on Parcel A. NOW THEREFORE, BE IT RESOLVED that the Lauderdale City Council approves the lot split of the Property into two separate residential parcels of land, as defined heiein as Parcel A and Parcel B, respectively, on condition that the Applicants create off-stieet parking at 1876 Malvern Street, and this resolution shall be recorded immediately prior to any conveyance of Paicel B to a third party. NOW THEREFORE, BE IT FURTHER RESOLVED by the Lauderdale City Council that following the effectuation of said lot split, the street address for Parcel A shall be 1876 658287.v2 Malvern Street, Lauderdale, Minnesota, and the street address for Parcel B shall be 1872 Malvern Street, Lauderdale, Minnesota. Dated: April 27, 2021 Mary Gaasch, Mayor Attest: Heather Butkowski, City Administrator -Clerk The motion for the adoption of the foregoing resolution was duly seconded by member upon vote being taken thereon, the following voted in favor thereof: . And the following voted against same: Whereupon said resolution was declared duly passed. 658287.v2 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion Action Resolution Work Session Meeting Date April 27, 2021 ITEM NUMBER STAFF INITIAL Zoning Proposal APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Jennifer Haskamp of Swanson Haskamp Consulting will be at the meeting. Before prepar- ing a proposal for the completion of the zoning ordinance update, Jennifer wanted to discuss the process to make sure we were all on the same page about how the work would be com- pleted and especially to discuss the level of community engagement. No discussion is re- quired at this meeting. Please see the attached document. OPTIONS: STAFF RECOMMENDATION: JLU 11?! MEMO To: Mayor and City Council Members Heather Butkowski, City Administrator From: Jennifer Haskamp, AICP, SHC RE: Zoning Ordinance Update ("Project") Date: April 23, 2021 Background and Summary • In 2019 the City formally adopted its 2040 Comprehensive Plan ("Plan") update which identified several implementation steps that includes the task to update the Zoning Ordinance for consistency with the adopted Plan. Minnesota State Statutes require municipalities to update and review their zoning ordinances to support their Plans, including the Future Land Use Plan, and the City is aware that the current ordinance does not adequately address the vision, goals and objectives as established within the Plan. While statute encourages municipalities to update their codes `within 9 -months of Plan adoption, the last year has been challenging with respect to public engagement due to the pandemic. Therefore, the tuning of this Project was delayed to ensure we were able to solicit feedback. Additionally, we know that the City's recently revamped website will allow us to connect more regularly and easily using a virtual platform that we can leverage as part of this update process. The following memo provides a summary of the recommended key Project tasks and engagement to address as part of this update process for your review and comment. Please note that this Project will result in a full re -write and comprehensive review of your Zoning Ordinance, with the exception of recently adopted sections for the High Density Residential — Conservation PUD and PUD sections. Based on the feedback and discussion during the meeting we will prepare a formal scope and proposal for your consideration at an upcoming City Council meeting. Project Tasks and Objectives • Modify and Update the Zoning Ordinance to make it more user-friendly: A comprehensive review and update of the City's ordinance has not been completed in several decades. A primary objective of this process is to create a comprehensive, up to -date and more user-friendly zoning ordinance for residents, business owners, stakeholders, City staff and policymakers. • Mixed -Use Zoning: The zoning ordinance update must include the development of zoning district standards for the Mixed Use - North and Mixed Use - South land use designations adopted as part of the Future Land Use Plan. The current zoning ordinance does not include district provisions that are adequate to support the vision, goals and strategies identified for the areas with this designation (primarily along the Larpenteur corridor and Eustis intersection). • Dimensional Standards of all Zoning Districts — a thorough review of all dimensional standards for each zoning district should be completed and updates made for consistency with the Future Land 1 JL Use Plan. The dimensional review should include, but may not be limited to 1) All setbacks; 2) Lot area coverage; 3) Lot sizes; and 4) Building envelope standards such as massing, height, foundation size, etc. • Use Analysis — An analysis of permitted, conditionally permitted and not -permitted uses should be conducted by zoning district. This analysis should then be codified and demonstrated in tabular form. • Process and Procedures Analysis Update — the code must be updated for appropriate statutory review procedures, while making it easier for residents, business and stakeholders to understand the land use application process. • Review and/or incorporation of performance standards for certain uses — new language should be drafted for specific performance standards that would make it easier for the City's review process. For example, performance standards for uses in the Mixed -Use districts could ensure developments create a more walkable environment and that patios and or porches are street facing while parking areas are designed in the rear of a building, etc. • Subdivision and Platting Processes — review and update the lot split, lot line rearrangement, and small subdivision standards to make process clear and easier to process. Proposed Engagement Tools The Zoning Ordinance development process is highly technical and therefore should include both traditional public engagement at a high-level with a more structured engagement process with a Technical Advisory Group (TAG). To that end we propose the following engagement tools: • Online Surveys or Polls— We have found that residents and stakeholders respond thoroughly to issue -based questions and examples in online surveys. We used an online survey during the development of the HDR -C ordinance, and it was very effective reaching `yell over 10% of your residents. We propose to use a survey to kick-off the process, with the opportunity to create a follow-up survey once language is drafted. If we have specific items that we need feedback throughout the process we can do quick online polls to get immediate feedback using your new website. • Technical Advisory Group — We propose to create a TAG to work through this process. The TAG should include the City Staff members that will use the ordinance most regularly. This group may also include a representative/liaison of the City Council if desired. The TAG will be charged with assisting with the technical aspects of ordnance development. • Virtual Charrette/Open House — We propose to develop an online charrette once the draft ordinance is prepared. The Charette will be available on the website for viewing and will demonstrate how the code applies to certain examples. The Charette will include a series of questions to solicit feedback, which allow us to further refine the ordinance before it is ready for public hearing. • Public Meeting/ Open House or Farmer's Markets — depending on the guidance regarding public meetings and gatherings due to the pandemic there may be an opportunity in the second half of 2021 to gather, present the ordinance draft and solicit feedback. 2 1 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action Resolution Work Session Meeting Date April 27, 2021 ITEM NUMBER STAFF INITIAL Draft Zoning Ordinances APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: Periodically, staff get asked building/zoning related questions that are hard to answer be- cause they were previously addressed through the building code but now are not. Some are just issues that arise with new construction which the City did not regularly have for years but now does While we just discussed the process to update the whole zoning ordinance, decisions regarding these issues have more urgency. Ultimately, decisions made now will help with the full zoning update. The issues area • Minimum widths / lengths • Minimum foundation size • Foundation / basement requirements • Covered off street parking requirements Staff did a quick draft ordinance update for discussion. We spoke briefly with the city attor- ney who understands the need for the changes. He will review the draft after the meeting. OPTIONS: STAFF RECOMMENDATION: LA605 SECTION: 10-4-1: 10-4-2: 10-4-3: 10-4-4: 10-4-5: 10-4-6: CHAPTER 4 GENERAL PROVISIONS Height Regulations Screening Fencing Outdoor Parking And Storage Temporary Structures New Construction Standards 10 4 1: HEIGHT REGULATIONS: 10-4 (1) A. R-1, Suburban Residential District: All structures in the R 1 Suburban Residential District shall be limited to two (2) stories o r twenty five feet (25') in height whichever is higher. B. Other Districts: Structures in all other districts shall not e xceed thirty five feet (35') in height above average ground level unless approved by the Board of Adjustment. C. Variances: The Board may authorize a variance to the height ✓ egulations in any district if, in addition to the other findings it must make: 1. All front, side, and rear yard depths of buildings are increased one foot (1') for each additional one foot (1') of h eight; or 2. The structure is among or similar to any of the following: t elevision and radio towers, church spires, belfries, monuments, t anks, water and fire towers, grain elevators, stage towers and scenery lofts, cooling towers, ornamental towers and spires, chimneys, elevator bulkheads, smokestacks, conveyors, flagpoles, silos, air conditioning and heating units and windmills. 3. There is no maximum height to which the Board is limited in granting such variances. (Zoning Ord. as amd.) 10-4-2: SCREENING: A. Adjacent To Residential Use: Where any business or industrial u se, structure, parking or storage, is adjacent to property zoned o r developed for residential use, that business or industry shall provide screening along the boundary of the residential property. Screening shall also be provided where a business, parking lot, o r industry is across the street or alley from a residential zone, but not on that side of a business or industry considered t o be the front. B. Exterior Storage: All exterior storage shall be screened e xcept materials and equipment presently being used for construction on the premises. LA605 10-4 (2) C. Soecifications: 1. Height: The screening shall consist of a fence or wall not less than six feet (6') high, made of materials approved by the P lanning Commission. 2. Placement: The screening shall be placed along property lines but shall not extend within fifteen feet (15') of any street or d riveway from the street right of way. 3. Vegetation: Planting of a type approved by the Planning Commission may also ee required in addition to or in lieu of fencing. (Zoning Ord. as amd.) 10-4-3: FENCING': A. Rear And Side Yards: Fences seven feet (7') in height or smaller shall be a permitted use in the rear and side yards of all districts. B . Approval Required: Fences higher than seven feet (7') and any fence which extends into a front yard shall be permitted only if approved by the Board of Adjustments. C. Swimming Pools: Swimming pools shall be enclosed by a fence or w all not less than six feet (6') above ground level to prevent u ncontrolled access by children. Location of pools is subject to u tility company approval. (Zoning Ord. as amd.) 10-4-4: OUTDOOR PARKING AND STORAGE: A. Unlawful Parking: 1. Special Permit Required: The outdoor parking or storage of u nlicensed motor vehicles, nonoperating, wrecked, junked, d iscarded or partially dismantled motor vehicles, motor vehicle parts, tractors, house trailers, trucks, truck tractors, truck t railers, and similar vehicles is prohibited in a residence d istrict and on the side of any street at any point where such street abuts upon a residence District, unless a special permit t herefor is first obtained from the Council. 2. Term Of Special Permit: No such special permit shall be issued for a period of more than sixty (60) days 3. Exemption: This suasection shall not be applicable to any such ✓ ehicle parked for a reasonable time for the purpose of loading o r unloading, nor to those light vehicles classified as pickups, panels or sedan deliveries parked on the premises or on the street abutting upon the premises occupied as a residence by the o wner thereof, if such vehicles are licensed and in operating '. See also Title 9, Chapter 7 of this Code. LA605 10-4 (3) condition. B . Unlawful Storage: 1. Special Annual Permit Required: It is unlawful for any person o wning, keeping, driving, or in charge of any a) house trailer, mobile home, vacation trailer, vacation bus, airplane, construction or home occupation machinery, equipment or supplies, o r b) other machinery, equipment, supplies or materials not customarily used or needed in connection with the occupancy of ✓ esidential property for residential purposes, to cause or permit t he same to be stored outside of a building on private property in any residence district any part of three (3) consecutive days o r for a total of more than thirty (30) days during any calendar year without first obtaining a special annual permit to do so. 2. Exemption: Provided, that no special annual permit is required for a house trailer, mobile home or vacation trailer less than t wenty feet (20') in length. House trailers mobile homes, vacation trailers and similar recreational vehicles may be parked in an authorized portion of any public street, alley, public ✓ ight of way, or driveway for the periods of time and subject to t he conditions contained in the parking ordinances of the City. C. Exterior Parking In Front Yards: 1. Limitations: Exterior parking in front yards shall be limited t o the established driveway area by currently licensed and o perable vehicles of nine (9) passengers or less and trucks not e xceeding three-quarter (3/4) ton capacity, with such vehicles being licensed by the regular residents of the property and their o ccasional guests and invitees. 2. Variance Required: The parking of any other type of vehicle which is otherwise permitted to be parked on residential property under the provisions of this Title is prohibited in the front yard of residential property unless a variance therefor is first o btained from the Board of Adjustments. 3. Parking On Boulevards: No vehicles shall be parked on any boulevard adjacent to any public street in the residence d istrict. (Zoning Ord. as amd.) 10-4-5: TEMPORARY STRUCTURES: Temporary structures and trailers used in conjunction with construction work shall be permitted only during the period that t he construction work is in progress. Permits for temporary structures shall be issued initially by the Council for a six (6) month period and may be extended to a maximum of twelve (12) months. (Zoning Ord. as amd.) 10-4-6: New Construction Standards LA605 10-4 (4) All newly constructcc_ homes or homes moved into the city shall conform to the following: 1. The minimum width of the main portion of the structure shall be not less than twenty-four feet, as measured across the narrowest Portion. 2. Have a minimum usable livinc areas of 800 square feet above grade exclusive of mechanical rooms and storm shelters. 3. The exterior walls of all dwellings shall be Placed upon ane secured to a permanent foundation of concrete, masonry or treated wood construction and shall include frost footing, al in accorcance with the State Ruilc_ing Code. 4. Requires the construction of enclosed_ off-street parking for a passenger vehicle in relation to the number of required off-street Parking spaces.