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04/11/2023
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 Ordei and Business of the City Council Unless so ordered by the Mayor, citizen participation is limited to the tunes indicated and always within the prescribed i ules of conduct for public input at meetings. 1. CALL TO ORDER THE LAUDERDALE CITY COUNCIL MEETING 2. ROLL CALL APPROVALS a. Agenda b. Minutes of the March 28, 2023 City Council Meetings c. Claims Totaling $54 733.01 4. CONSENT 5. SPECIAL ORDER OF BUSINESS/RECOGNITIONS/PROCLAMATIONS 6. INFORMATIONAL PRESENTATIONS / REPORTS a. 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. Annual Audit Presentation by Abdo b. Resolution No. 041123A — Adopting Reduced Speed Limit on Streets over which the City has Jur indiction as the Road Author ity c. Resolution No. 041123B — Supporting No Mow May Initiative 2023 d. Road Condition and Pothole Repair 9. ITEMS REMOVED FROM THE CONSENT AGENDA 10. ADDITIONAL ITEMS 11. SET AGENDA FOR NEXT MEETING a. March Financial Report b. Ramsey County Public Works — Eustis Street Cost -Sharing c. Annual Police Department Update d. Zoning Ordinance Discussion (May 9) e. Conversation with County Commission Mary Jo McGuire (May 23) 12. WORK SESSION LAUDERDALE CITY COUNCIL MEETING AGENDA 7:00 P.M. TUESDAY, APRIL 11, 2023 LAUDERDALE CITY HALL, 1891 WALNUT STREET 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 Ordei and Business of the City Council Unless so ordered by the Mayor, citizen participation is limited to the tunes indicated and always within the prescribed i ules of conduct for public input at meetings. 1. CALL TO ORDER THE LAUDERDALE CITY COUNCIL MEETING 2. ROLL CALL APPROVALS a. Agenda b. Minutes of the March 28, 2023 City Council Meetings c. Claims Totaling $54 733.01 4. CONSENT 5. SPECIAL ORDER OF BUSINESS/RECOGNITIONS/PROCLAMATIONS 6. INFORMATIONAL PRESENTATIONS / REPORTS a. 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. Annual Audit Presentation by Abdo b. Resolution No. 041123A — Adopting Reduced Speed Limit on Streets over which the City has Jur indiction as the Road Author ity c. Resolution No. 041123B — Supporting No Mow May Initiative 2023 d. Road Condition and Pothole Repair 9. ITEMS REMOVED FROM THE CONSENT AGENDA 10. ADDITIONAL ITEMS 11. SET AGENDA FOR NEXT MEETING a. March Financial Report b. Ramsey County Public Works — Eustis Street Cost -Sharing c. Annual Police Department Update d. Zoning Ordinance Discussion (May 9) e. Conversation with County Commission Mary Jo McGuire (May 23) 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 three (3) minutes or less. If the majoiity 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 permitted 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 To provide public comments, join us via Zoom. You are invited to a Zoom webinar. When: Apr 11, 2023 07:00 PM Central Time (US and Canada) Topic: April 11, 2023 City Council Webinar Please click the link below to join the webinar: https://us02web zoom.us/j/83684593642?pwd=WVRmaEVZRkoyUONyYXROdE1Mci9VQT09 Passcode 628544 Or One tap mobile : US +13092053325„8368459364211 or +13126266799„83684593642# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 309 205 3325 or +1 312 626 6799 or +1 646 558 8656 or +1 646 931 3860 or +1 301 715 8592 or +1 305 224 1968 or +1 719 359 4580 or +1 253 205 0468 or +1 253 215 8782 or +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 669 444 9171 or +1 669 900 9128 or +1 689 278 1000 or 877 853 5247 (Toll Free) or 888 788 0099 (Toll Free) or 833 548 0276 (Toll Free) or 833 548 0282 (Toll Free) Webinar ID: 836 8459 3642 International numbers available: https://us02web.zoom.us/u/ko5ni45pn LAUDERDALE CITY COUNCIL MF I4;TING MINUThS Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 1 of 3 March 28, 2023 Call to Order Mayor Gaasch called the Regular City Council meeting to order at 7:02 p.m. Roll Call Councilors present: Jeff Dains, Duane Pulford, Sharon Kelly, Evan Sayre, and Mayor Mary Gaasch. Councilors absent: None. Staff present: Heather Butkowski, City Administrator; and Miles Cline, Deputy City Clerk. Approvals Mayor Gaasch asked if there were any additions to the meeting agenda. There being none, Councilor Dains moved and seconded by Counciloi Kelly to approve the agenda. Motion carried unanimously. Mayor Gaasch asked if there were corrections to the minutes of the March 14, 2023 city council meeting. There being none, Councilor Pulford moved and seconded by Councilor Sayre to approve the minutes of the March 14, 2023 city council meeting. Motion carried unanimously. Mayor Gaasch asked if there were any questions on the claims. There being none, Councilor Sayre moved and seconded by Councilor Pulford to approve the claims totaling $31,150.98. Motion carried unanimously. Consent Councilor Dains moved and seconded by Councilor Kelly to approve the Consent Agenda thereby acknowledging the February financial report and approving the street sweeping service agreement with Mike McPhillips, Inc. Informational Presentations/Reports A. Carbon Free Futures MN Coalition Presentation by Dan King, Xcel Fnergy Dan King, Policy and Outreach Managei at Xcel Energy, approached the dais and provided a PowerPoint presentation on the work of the Carbon Free Future Minnesota Coalition. Xcel hnergy's goal is to achieve carbon free energy by 2050. Part of this effort is asking likeminded businesses, government agencies, civic groups, and individuals to join their Carbon Free Future Minnesota Coalition. Some cities have supported this work by adopting a resolution. Based on the discussion, the Council can decide if they would like to do that at a future meeting. After a question and answer session between King and the Council Mayor Gaasch stated that she would like to discuss this matter further before making a final decision on the resolution to support the coalition. LAUDhRDALE CITY COUNCIL MFFTING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 P age 2 of 3 March 28, 2023 B . City Council Updates Councilor Pulford shared that Nine North is doing a small reorganization and looking for interns interested in broadcasting careers. He continued to say that potholes in the alleys are worsening. Discussion/Action Item A. Resolution No. 032823A — Authorizing Application for and Execution of the Municipal Infiltration and Inflow Grant The Metropolitan Council received state bonding funds to distribute to cities to work on eliminating inflow and infiltration (I/I) from the sanitary sewer system. Storm water is clean water and does not need to be treated at a wastewater plant which is costly. The City entered into the grant program in 2020 and now needs to close out the paperwork to receive the funds The giant offsets the cost of the cured -in-place lining project that was done in 2021 and 2022. In order to complete the grant, the Council needs to adopt a resolution, and staff will submit the necessary paperwork detailing the costs and logistics prepared by the City engineer. Councilor Kelly made a motion to adopt Resolution No. 032823A A Resolution Authorizing Application for and hxecution of the Municipal Infiltiation and Inflow Grant. This was seconded by Counciloi Sayre and carried unanimously. B . Proposal for Purchase of a Replacement Mower through the State Contract Public Woiks needs a replacement mower. This was in the City's CIP for 2023 replacement, and the City can purchase one from the state bid at a significant discount. The total cost of the equipment is $47,738.08. Staff are not requesting to buy any attachments as this time, and we have been told our John Deere broom is compatible with the new mower. The dealer is offering the City $7,100 for the trade in of the old mower. Staff would complete the ordering process in anticipation of the next time John Deere takes orders. Much like trying to buy a new pickup truck, the process is complicated by more demand than supply. Councilor Pulford made a motion directing staff to purchase the mower at the state bid price through Minnesota hquipment. This was seconded by Councilor Sayre and carried unanimously. Set Agenda for Next Meeting Butkowski stated that the April 11 council meeting might include the revisited speed study and the annual audit presentation. Work Session A. Community Development Update B utkowski shared there is a legislative proposal to extend early voting throughout the state that staff sent letters opposing. She said staff received a quote for signage for the city-wide speed reduction for consideration at the next meeting. The Rice Creek Watershed District is proposing a boundary change that would give 25% of their Lauderdale jurisdiction to the Mississippi LAUDERDALE CITY COUNCIL MEETING MINUTES Lauderdale City Hall 1891 Walnut Street Lauderdale, MN 55113 Page 3 of 3 March 28, 2023 Watershed Management Organization. The City is working to secure pricing to repair potholes in town. The Nada Chair building has been sold to a remodeling company. Our AmeriCorps member Maggie Duerwachter is leaving for a full-time job opportunity. Finally, the Council engaged in a discussion regarding Ramsey County's Eustis Street open house event and the different options for repairing Eustis Street. B. Opportunity for the Public to Address the City Council Mayor Gaasch opened the floor to those in attendance interested in addressing the Council. There being nobody interested in speaking, Mayor Gaasch closed the floor. Adj ournment Councilor Pulford moved and seconded by Councilor Dains to adjourn the meeting at 9:00 p.m. Motion carried unanimously. Respectfully submitted, 1 • °Atka., Miles Cline Deputy City Clerk To: From: Meeting Date: Subject: CITY OF LAUDERDALE LAUDERDALE CITY HALL 1 891 WALNUT STREET LAUDERDALE, MN 55113 651-792-7650 651-6312066 FAx Request for Council Action Mayor and City Council City Administrator April 11, 2023 List of Claims The claims totaling $54,733.01 are provided for City Council review and approval that includes check numbers 28367 to 28384. Accounts Payable Checks by Date - Detail by Check Date User: Printed: heather.butkowski 4/6/2023 4:02 PM Check No Vendor No Vendor Name Invoice No Description Check Date Reference Check Amount ACH 43 ACH 44 ACH 45 ACH 46 28367 13 10331 28368 383 S1474681-040123 28369 33 23-08 28370 25 RISK -002228 28371 40 2023002113345 Public Employees Retirement Association PR Batch 50700.03.2023 PERA Coordinated PR Batch 50700.03.2023 PERA Coordinated 03/31/2023 PR Batch 50700.03.2023 PER PR Batch 50700.03.2023 PER Total for this ACH Check for Vendor 43: Minnesota Department of Revenue PR Batch 50700.03.2023 State Income Tax 03/31/2023 PR Batch 50700.03.2023 Stat, Total for this ACH Check for Vendor 44: ICMA Retirement Corporation PR Batch 50700.03.2023 Deferred Comp 03/31/2023 PR Batch 50700.03.2023 Def( Total for this ACH Check for Vendor 45: Internal Revenue Service PR Batch 50700.03.2023 FICA Employer Portio PR Batch 50700.03.2023 FICA Employee Portio PR Batch 50700.03.2023 Medicare Employer Po PR Batch 50700.03.2023 Federal Income Tax PR Batch 50700.03.2023 Medicare Employee Pc 03/31/2023 PR Batch 50700.03.2023 FIC. PR Batch 50700.03.2023 FIC. PR Batch 50700.03.2023 Med PR Batch 50700.03.2023 Fed( PR Batch 50700.03.2023 Med Total for this ACH Check for Vendor 46: Total for 3/31/2023: 8th Day Landscaping LLC 04/11/2023 March 2023 Snow Removal Total for Check Number 28367: Aspen Waste Systems of Minnesota Inc April Refuse Service City of Falcon Heights Snow Plowing January 1 - April 15, 2023 County of Ramsey April Insurance Processing Fee Custom Truck One Source Plow Repairs 04/11/2023 Total for Check Number 28368: 04/11/2023 Total for Check Number 28369: 04/11/2023 Total for Check Number 28370: 04/11/2023 1,260.27 1,092.23 2,352.50 732.55 732.55 1,655.77 1,655.77 1,051.21 1,051.21 245.85 1,762.89 245.85 4,357.01 9,097.83 680.00 680.00 397.61 397.61 12,150.00 12,150.00 25.00 25.00 137.04 AP Checks by Date - Detail by Check Date (4/6/2023 4:02 PM) Page 1 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount 28372 61 3030536 28373 82 042023 28374 134 00130 28375 23 1NV2247586 28376 387 1180 28377 99 1520 28378 24 0001154510 Gopher State One Call March Locates Home Depot New Window Blinds Katrina Joseph February & March Legal Services Metro Sales Inc 1Q23 Copy Charges Metro -INET April IT Services Total for Check Number 28371: 04/11/2023 Total for Check Number 28372: 04/11/2023 Total for Check Number 28373: 04/11/2023 Total for Check Number 28374: 04/11/2023 Total for Check Number 28375: 04/11/2023 Total for Check Number 28376: Metropolitan Area Management Association 04/11/2023 Luncheon Meeting - HB Metropolitan Council May Waste Water 28379 84 North Star Bank Cardmember Services 042023 U of M - GB Tree Exam 042023 March Costco Fuel 042023 March Costco Fuel 042023 Oil and Filters 042023 Costco - Trash Bags & Paper Towels 042023 Gertens - Flowers for City Hall 042023 March Costco Fuel 042023 Walmart - Floor Cleaner & Degreaser 28380 10 0001503068 28381 37 I029793 28382 26 2063553 2063553 Total for Check Number 28377: 04/11/2023 Total for Check Number 28378: 04/11/2023 Total for Check Number 28379: On Site Sanitation Inc 03/18/2023 - 04/14/2023 Park Portable Restroon Park Service Inc Truck Repairs Stantec Consulting Services Inc Eustis St Reconstruct GIS Updates 04/11/2023 Total for Check Number 28380: 04/11/2023 Total for Check Number 28381: 04/11/2023 137.04 1.35 1.35 30.45 30.45 1,850.00 1,850.00 138.30 138.30 2,190.00 2,190.00 25.00 25.00 12,824.43 12,824.43 50.00 345.98 74.14 87.35 116.63 79.80 74.14 53.13 881.17 101.00 101.00 603.89 603.89 2,943.25 3,553.00 AP Checks by Date - Detail by Check Date (4/6/2023 4:02 PM) Page 2 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount 2063554 2063556 Create Seal Coating Record Plans Speed Study and Analysis Total for Check Number 28382: 28383 4 The Neighborhood Recycling Company Inc 04/11/2023 SI006373 March Multi -Family Recycling SI006373 March Single Unit Dwelling 28384 3 497718882 Total for Check Number 28383: US National Equipment Finance Inc 04/11/2023 April Copier Lease Total for Check Number 28384: Total for 4/11/2023: Report Total (22 checks): 1,590.25 1,890.50 9,977.00 420.21 3,026.73 3,446.94 176.00 176.00 45,635.18 54,733.01 AP Checks by Date - Detail by Check Date (4/6/2023 4:02 PM) Page 3 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action Resolution Work Session X Meeting Date April 11, 2023 ITEM NUMBER Audit Materials STAFF INITIAL HB APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: I 'ach year, a representative of Abdo presents the findings of the audit to the City Council. This yeas Bonnie Schwiegei 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. COUNCIL ACTION: Lighting the path forward Li Oki r 1777 (i) LL 1 (1) w 0ErnLL L_ 7 (1) 0 C!O t• M 01 W �= EA EVE as zas•- O - on 0 , c 0 u,cn SftafteM,S51tu:S t:==. w 0 co •J • 0) At it 0 0) 0 coc ® 0 0 c 0 .t_ r (41 D rir 1 p� Cr) kes Lo l LO d' 05 O LO i. 0 0 0 N <1> 0 0 0 Itzt. CO LO 0 0 O <1> 0 C) co 0 CDCD- "q• " 0') N 0 N N cNiO N N N O N 1' a) -o ozi U 4.3 as) CO CCSc C 0) 0 U 0 c on Q N L t L() Oo 0 00 00 N N N 1/40 1/401 (0 Lf) Ln 0) r 0 00 00 C o CO rn 00 00 Oo v' co 00 Net Change in Fund Balances M 00 cf. M CO Fund Balances, January 1 0 00 00 0- v' oom Fund Balances, December 31 0) °CU Ci02) 1 I O O 0 0 0 0 0 0 0 0 O O 0 0 0 0 0 0 0 0 O O O O O O O O O O 0 0 0 0 0 0 0 0 0 O GI CO L d' CO N r- -U} -U} {/} -CO <1> -U} -CO -U} <1> a) 0 C 03 LL O ntergovernmenta N O N r - O N N O N 11 1 CO v(Jo rt Transfers Out o 0 0 0 0 o 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 CD N 0 00o 'd' N 1-- -U} -CO- -C.0--U} U} • Government N N N 13 N N N 0 N L-1 • Cid) Irt4, L J CO Fund Balances December 31, 0) cD 22 U a) 0 r— N 0 N N 0 N c LL <C} 0 CY) N N d- Cr CO O CO cB N CO CO co0' CO0') a 00 <1) 0 Cr) O O 0 0 0 0 0 0 O o U, O O o 0 0 O 0 0 0 0 c O O O O O o O O o 0 0 O o 0 O O O 0 O 0 O 0 rn 00 f� LC) 'Cr(Y) N r--• CO U r-- <1> <1) -00 -C/} <1> -CO <0 -U? <1> • - Cr -C/? 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N ON 10 CO (NI CO Lr) eo� eor o� o� o� O O O O O O O O (3 O O O O O O o Lr) d' co N r 0 Cities in Ramsey County O o- o\ o\ (NJ CI‘ CO 0 O �-- CO CO N co Lr) M e o_ e (NJ CO CO Lr) (0 Class 4 Cites 1' 0 0U w co c 0 D 1 O c ai w 0 c u ca VJ "r w cu Q) W Debt per Capita 1 O N 0 M co ec)z)00 00 t�yy- M M M LC) M M 0 0..‹) 0 0 0 0 0 0 0 O O O O O O O 0 0 0 O O O O O O O O O O o O o Lf� O Ltj O LC) O Ltj O LtD O Ln 'Cl" M M N N r-- �-- O O O O O O O O O O Lt) O LC) O Lt) </? N o CO N 0" 0 M 0 0 O in Ramsey County LC) CO O 0' 0 0 - CO (-Nj r- N </} </? O O CO In LC) N d r- CO N <!> <N/? </? 0' N p Lf) O LC) NCM <C/? <1> 0 Cities in Ramsey County LC) r-- 0 L 0 1 Expenditure per Capita Current Expenditure per Capita O 0 0 0 0 0 O O O 0 0 0 (NI 0 CO kr) —4• N <0 -CO- -c/} "CO N a' cmN N <11 � -CO O c CO 0 N (NJ �) �-- O c L() N (NI -CO <1) -CO r— p N N CD ^ 'f' N N <1> C 1 (NI c N x- 0 00 N -(J)- 0") 0)- 0 Cities in Ramsey County 0') ' r— N O L N o t� oo N -CO -CO -CO O L rn N N L) M N o '0 00 r� N u? <1} <1> C LO c M 0\ 03 okfj N {1} -Cf)- 0 1> 0 0 0 0 0 0 0 0 0 N0'0�NNo <%> 00 'cr c <0 <1) -CO- <1? <10 <1> <1> -CO- <1) CD co L CD 4- 0 O U Class 4 Cities Cities in Ramsey County Adam Owens 11 bA 0 Bonnie Schwieger, CPA Andy Berg, CPA Senior Associate Senior Manager 0 c t CO 0 adam.owens@abdosolutions.com utions.com uke.vogt@abdoso E O U O 0 CO0 0 0) N U E O U O a -47740 0 ('3 L N ID 0 V c Chv �II. 1 c c_,,, c_, C c=: Lauderdale, Minnesota For the year ended December 31, 2022 4_ \Akit Lighting the path forward Edina Offtce 5201 Eden Avenue, Ste 250 Edina, MN 55436 952.835.9090 0)\\77,711,11 Mankato Office 100 Warren Street, Ste 600 Mankato, MN 56001 507.625.2727 ri Scottsdale Office 14500 N Northsight Blvd, Ste 233 Scottsdale, AZ 85260 480.864.5579 /10%An %dr 16411 April 4, 2023 Management, Honorable Mayor and City Council City of Lauderdale, Minnesota AbdoSolutions.com We have audited the 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) for the year ended December 31, 2022 and have issued out report thereon dated April 4, 2023. 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 December 21, 2022 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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. • Lighting the path forward 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, 2022 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 e stimates affecting the financial statements are included below: 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 n eutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional 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 o r 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 e ntries is completed internally. AbdoSolutions.com 3 Disagreements 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. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 4, 2023. 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 W e 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 W e 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. W e 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. AbdoSolutions.com 4 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: 0) GASB Statement No. 94 - Public -Private and Public -Public Partnerships and Availability Payment Arrangements Summary 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. PPPs 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). How 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 PPPs and evaluate a government's future obligations and assets resulting from PPPs. AbdoSolutions.com 5 Future Accounting Standard Changes (Continued) GASB Statement No. 96 - Subscription -Based Information Technology Arrangements Summary 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 SBITA; 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. Under 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 e ssential 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 e nhance 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. AbdoSolutions.com 6 Future Accounting Standard Changes (Continued) GASB Statement No. 98 - The Annual Comprehensive Financial Report Summary This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. This Statement was developed in response to concerns raised by stakeholders that the common pronunciation of the acronym for comprehensive annual financial report sounds like a profoundly objectionable racial slur. This Statement's introduction of the new term is founded on a commitment to promoting inclusiveness. Effective Date and Transition The requirements of this Statement are effective for fiscal years ending after December 15, 2021. Earlier application is encouraged. GASB Statement No. 99 - Omnibus 2022 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 (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows: Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives o Clarification of provisions in Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and public -public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset Clarification of provisions in Statement No. 96, Subscription -Based Information Technology Arrangements, related to the subscription -based information technology arrangement (SBITA) term, classification of a SBITA as a short- term SBITA, and recognition and measurement of a subscription liability o Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt o Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP) Disclosures related to nonmonetary transactions Pledges of future revenues when resources are not received by the pledging government AbdoSolutions.com 7 Future Accounting Standard Changes (Continued) o Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government -wide financial statements Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position Terminology used in Statement 53 to refer to resource flows statements. Effective Date and Transition The requirements of this Statement that are effective as follows: ® The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of n onmonetary transactions pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective u pon issuance. The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The Board considered the effective dates for the requirements of this Statement in light of the COVID-19 pandemic and in concert with Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. 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. Consistent authoritative literature enables governments and other stakeholders to more easily locate and apply the correct accounting and financial reporting provisions, which improves the consistency with which such provisions are applied. The comparability of financial statements also will improve as a result of this Statement. Better consistency and comparability improve the usefulness of information for users of state and local government financial statements. GASB Statement No. 100 - Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62 Summary The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements. • AbdoSolutions.com 8 Future Accounting Standard Changes (Continued) This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements. This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated. Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles. Effective Date and Transition The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter Earlier application is encouraged. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections. GASB Statement No. 101 - Compensated Absences Summary The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences. AbdoSolutions.com 9 Future Accounting Standard Changes (Continued) This Statement requires that a liability for certain types of compensated absences including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used. This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary -related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. Effective Date and Transition The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter Earlier application is encouraged. How the Changes in This Statement Will Improve Accounting and Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences (1) Note From GASB Pronouncements Summaries. Copyright 2022 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. liar Abdo Minneapolis, Minnesota April 4, 2023 AbdoSolutions.com 10 ``‘ Ns1/4 Nt 41/4 Aiheiww-escart LITT (ty of LaLJidcrda Lauderdale, Minnesota For the year ended December 31, 2022 1 %)) *Lighting the path forward 0 c r : • 0 C� 'r Edina Office Jank ato Office 5201 Eden Avenue, Ste 250 Edina, MN 55436 P 952.835.9090 1 952.835.3261 100 Warren Street, Ste 600 Mankato, MN 56001 507.625.2727 50/388.9139 THIS PAGE IS LEFT BLANK INTENTIONALLY City of Lauderdale, Minnesota Annual Financial Report Table of Contents For the Year Ended December 31, 2022 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 Recycling Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 40 P roprietary Funds Statement of Net Position 41 Statement of Revenues, Expenses and Changes in Net Position 42 Statement of Cash Flows 43 Notes to the Financial Statements 45 Required Supplementary Information Schedule 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 - G eneral 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 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Communications Fund 72 N onmajor Capital Projects Funds Combining Balance Sheet 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 74 G eneral Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 75 Summary Financial Report Revenues and Expenditures for General Operations 78 Other Required Report Independent Auditor's Report on Minnesota Legal Compliance 3 81 THIS PAGE IS LEFT BLANK INTENTIONALLY INTRODUCTORY SECTION CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 5 THIS PAGE IS LEFT BLANK INTENTIONALLY Name Mary Gaasch Jeff Dains Duane Pulford Sharon Kelly Evan Sayre Heather Butkowski City of Lauderdale, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2022 ELECTED Title Mayor Council Member Council Member Council Member Council Member APPOINTED City Administrator Term Expires 12/31/22 12/31/24 12/31/24 12/31/26 12/31/26 THIS PAGE IS LEFT BLANK INTENTIONALLY FINANCIAL SECTION CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 9 THIS PAGE IS LEFT BLANK INTENTIONALLY i•% o INDEPENDENT AUDITOR'S REPORT Honorable Mayor and City Council City of Lauderdale, Minnesota Report on the Financial Statements Opinions AbdoSolutions.com 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, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2022, and the respective changes in financial position, cash flows, where applicable, and the budgetary comparison for the General fund and Recycling fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. Lighting the path forward 11 The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. © Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. o Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. o Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. ® Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. AbdoSolutions:com 12 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. ilar Abdo Minneapolis, Minnesota April 4, 2023 AbdoSolutions.com 13 THIS PAGE IS LEFT BLANK INTENTIONALLY 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 2022 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 $10,805,155 (net position). Of this amount $3,073,609 (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 $470,883. Most of the increase can be attributed to a sale of land and development related activity. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $2,708,730 a decrease of $697 323 in comparison with the prior year. Approximately 31.1 percent of this total amount $842,938, is unassigned fund balance. • At the end of the current fiscal year, unassigned fund balance for the General fund was $842,938, or 54.2 percent of 2022 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 1 Basic Financial Statements Fund Financial Statements Required Supplementary Information at • • • • Notes to the Financial Statements 0 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 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). 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 e 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 accounting and economic resources focus 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 resources up resources the capital deferred outflows of expected to be used and deferred inflows of that come due during year or soon thereafter; no 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 received during or soon end of the year; expenditures when goods or services been received and payment due during the year thereafter cash is after have or soon the is All revenues and expenses during the year, regardless of when cash is received or paid 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). 17 Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, 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. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact 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 various 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, Park Dedication fund, ARPA fund, 2018A / 2021A G.0 Tax Increment Revenue Refunding Bond, Recycling fund, Development fund. and the 2019A G 0. 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. Proprietary 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 41 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements start on page 45 of this report. Other Information. The combining and individual fund financial statements and schedules are presented following the notes to the financial statements and start on page 70 of this report. 18 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 $10,805,155 at the close of the most recent fiscal year. The largest portion of the City s net position (66.6 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 uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Assets Current and other assets Capital assets Total Assets Deferred Outflows of Resources Deferred pension resources Liabilities Long-term liabilities outstanding Other liabilities Total Liabilities City of Lauderdale's Summary of Net Position Governmental Activities Increase 2022 2021 (Decrease) Business -type Activities Increase 2022 2021 (Decrease) $ 3,376,563 $ 3,965,845 $ (589,282) 5,854,688 6,052,998 (198,310) 9,231,251 10,018,843 (787,592) $ 1,283,266 $ 1,399,906 $ (116,640) 1,833,015 1,743,745 89,270 3,116,281 3,143,651 (27,370) 98,522 129,841 (31,319) 1,201,658 345,644 1,547,302 2,514,294 172,822 2,687,116 (1,312,636) 172,822 (1,139,814) 30,609 43,078 (12,469) 112,949 290 113,239 73,963 12,173 86,136 38,986 (11,883) 27,103 Deferred Inflows of Resources Deferred pension resources 8,371 170,884 Net Position Net investment in capital assets Restricted Unrestricted 5,039,522 859,009 1,875,569 (162,513) 2,596 57,005 (54,409) 5,135,499 484,228 1,670,957 (95,977) 1,833,015 374,781 204,612 1,198,040 1,743,745 1,299,843 89,270 (101,803) Total Net Position $ 7,774,100 $ 7,290,684 $ 483,416 $ 3,031,055 $ 3,043,588 $ (12,533) The remaining balance of unrestricted net position ($3,073,609) 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 $483,416 and business -type decreased the City's net position by $12,533. Key elements of the changes are as follows: Revenues P rogram Revenues Charges for services O perating grants and contributions Capital grants and contributions G eneral Revenues Property taxes G rants and contributions not restricted to specific programs Investment earnings (loss) G ain on sale of held for resale Total Revenues Expenses G eneral government Public safety Public works Sanitation and recycling Culture and recreation Miscellaneous Debt service Sewer Storm sewer Total Expenses Change in Net Position N et Position, January 1 N et Position, December 31 City of Lauderdale's Changes in Net Position Governmental Activities Increase 2022 2021 (Decrease) Business -type Activities Increase 2022 2021 (Decrease) $ 273,473 $ 143,818 360,038 966,226 616,927 (21,565) 264,510 2,603,427 163,690 $ 10,583 15,557 917,667 562,964 (4,758) 1,665,703 109,783 $ 442,220 $ 442,140 $ 133,235 344,481 - 48,559 - - 53,963 (16,807) 264,510 458 (8,737) 937,724 433,941 483,841 1,036,656 316,368 70,189 186,725 1,892 24,340 limb 397,586 914,573 448,897 68,109 138,655 9,007 69,603 Mil 86,255 122,083 (132,529) 2,080 48,070 (7,115) (45,263) 2,120,011 $ 483,416 7,290,684 7,774,100 2,046,430 (380,727) 7,671,411 $ 7,290,684 73,581 864,143 (380,727) $ 483,416 HMI imp gmli I. 324,632 121,842 446,474 151 (2,636) 2,167 441,822 80 307 (6,101) (2,167) (7,881) PM Mil limb 318,690 164,497 483,187 illi OMR SIM 5,942 (42,655) (36,713) (12,533) (41,365) 3,043,588 3,084,953 $ 3,031,055 $ 3,043,588 28,832 (41,365) $ (12,533) 20 Overall, the financial position of governmental activities remained relatively close to the prior year. $1,200,000 $1,000,000 • $800,000 - $600,000 $400,000 - $200,000 Expenses and Program Revenues - Governmental Activities General Public Safety Public Works Sanitation and Culture and Miscellaneous Interest on long Government Recycling Recreation term debt Investment Earni (loss), -0.8% Grants and Contributions Not Restricted to Specific Programs, 23.7% ■Expense 11 Program Revenue Revenues by Source - Governmental Activities Gain on Sale of Land Held for Resale, 10.2% 1 Charges for Services, 10.5% Operating Grants and Contributions, 5.5% Capital Grants and Contributions, 13.8% Taxes, 37.1 % Business -type Activities. Business type activities decreased the City's net position by $12,533. The decrease can be attributed to an increase in expenses. 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 $2,708,730, a decrease of $697,323 in comparison with the prior year. Approximately 31.1 percent of this total amount $842 938 constitutes unassigned fund balance, which is available for spending at the City s discretion The remainder of fund is nonspendable $25, restricted $669,083, committed $71 360, or assigned $1 125,324. 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 $842,938. 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 48.7 percent of total General fund expenditures and 54.2 percent of the 2022 budget The fund balance of the City's General fund increased by $8,790 during the current fiscal year due to earning more revenues than budgeted. The Street Improvement fund has a total fund balance of $414,957, a decrease of $23 from the previous year. The Park Dedication fund ended the year with a total fund balance of $339,524 due to park dedication fees collected. The Development fund had a total fund balance of $362,004, an increase of $66,914 due to revenues exceeding expenditures. The 2019A G.O. Improvement Bonds fund has a total fund balance of $237,978, an increase of $20,905 from the previous year due to transfers in. The 2018A / 2021A G.0 Tax Increment Revenue Refunding Bond fund has a total fund balance of $0, a decrease of $10,699 from the prior year due to the repayment of the bond funded with transfers in The ARPA fund balance is zero but has unearned revenue for future eligible expenditures. The Recycling fund had a total fund balance of $68,166 a decrease of $2,223 due to charges for services exceeding operating costs. 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 $842,451. The total decrease in net position for the fund was $4,301. The Storm Sewer fund unrestricted net position amounted to $355,589. The total decrease in net position for the fund was $8,232 The factors concerning the finances of these funds have already been addressed in the discussion of the City's business - type activities. 22 General Fund Budgetary Highlights The original budget was not amended during the 2022 fiscal year. Revenues were more than budget by $182,255 and expenditures were more than budget by $173 465. As a result, the City experienced an overall favorable budget variance. Capital Asset and Debt Administration Capital Assets. The City's investment in capital assets for its governmental and business -type activities as of December 31, 2022, amounts to $7,687,703, (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 0.1 percent (a 1.9 percent decrease for governmental activities and a 4.9% percent increase for business -type activities). City of Lauderdale's Capital Assets (Net of Depreciation) Land Construction in Progress Buildings Improvements other than Buildings Machinery and Equipment Infrastructure Total Governmental Activities Business -type Activities 2022 2021 Increase (Decrease) Increase 2022 2021 (Decrease) $ 322,040 $ 322,040 $ - $ aild OMNI 33,042 70,448 201,555 5,227,603 34,517 (1,475) 88,138 196,137 5,412,166 (17,690) 5,418 (184,563) $ - $ 142,600 (142,600) 1,833,015 1,601,145 231,870 $ 5,854,688 $ 6,052,998 $ (198,310) $ 1,833,015 $ 1,743,745 $ 89,270 Additional information on the City's capital assets can be found in Note 3B starting on page 55 of this report. Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding as follows. City of Lauderdale's Outstanding Debt Governmental Activities Increase 2022 2021 (Decrease) Business Activities Increase 2022 2021 (Decrease) Bonds Payable $ 800,000 $ 2,265,000 $ (1,465,000) $ - $ - $ Additional information on the City's long-term debt can be found in Note 3D starting on page 56 of this report. Economic Factors and Next Year's Budgets and Rates ® The City sold 1795 Eustis Street for redevelopment in July 2022 for affordable senior housing that will open in fall 2023. The City does not anticipate any major new economic development in 2023. 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 THIS PAGE IS LEFT BLANK INTENTIONALLY GOVERNMENT -WIDE FINANCIAL STATEMENTS CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 25 THIS PAGE IS LEFT BLANK INTENTIONALLY City of Lauderdale, Minnesota Statement of Net Position December 31 2022 Assets Cash and temporary investments Receivables Accounts Delinquent taxes Interest Special assessments Due from other governments P repaid items Capital assets Land and construction in progress Depreciable buildings, property and equipment, net Total Assets Deferred Outflows of Resources Deferred pension resources Liabilities Accounts payable Salaries payable Accrued Interest payable D ue to other governments U nearned revenue Current liabilities - due within one year Compensated absences payable Bonds payable N oncurrent liabilities - due in more than one year Compensated absences payable Bonds payable N et pension liability Total Liabilities D eferred Inflows of Resources D eferred pension resources N et Position Net investment in capital assets Restricted for D ebt service Tax increments P ark dedication Unrestricted Total Net Position Governmental Activities $ 3,005,453 15,315 15,428 8,942 329,116 2,284 25 322,040 5,532,648 9,231,251 98,522 77,705 11,568 7,813 755 247,803 32,303 100,000 16,382 715,166 337,807 1,547,302 8,371 5,039,522 427,904 91,581 339,524 1,875,569 Business -type Activities $ 1,195,462 70,283 17,521 Mir 1,833,015 3,116,281 30,609 290 7,204 MIE 105,745 113,239 2,596 1,833,015 Mir 1,198,040 $ 7,774,100 $ The notes to the financial statements are an integral part of this statement. 27 3,031,055 Total $ 4,200,915 85,598 15,428 8,942 346,637 2,284 25 322,040 7,365,663 12,347,532 129,131 77,995 11,568 7,813 755 247,803 39,507 100,000 16,382 715,166 443,552 1,660,541 10,967 6,872,537 427,904 91,581 339,524 3,073,609 $ 10,805,155 Functions/Programs Governmental Activities Current G eneral government Public safety P ublic works Sanitation and recycling Culture and recreation Economic development Interest on long term debt Total Governmental Activities City of Lauderdale, Minnesota Statement of Activities For the Year Ended December 31, 2022 Business -type Activities Sewer Storm sewer Total Business -type Activities Total Expenses Program Revenues Charges for Services $ 483,841 $ 9,677 1,036,656 200,948 316,368 70,189 62,362 186,725 486 1,892 24,340 WM Operating Grants and Contributions Capital Grants and Contributions Man 6,118 137,700 2,120,011 273,473 143,818 324,632 121,842 446,474 326,090 116,130 442,220 EMEI WM 18,038 342,000 WM 360,038 Mad WPM $ 2,566,485 $ 715,693 $ 143,818 $ 360,038 General Revenues and Transfers Taxes Property taxes, levied for general purposes Franchise tax G rants and contributions not restricted to specific programs Investment earnings (loss) G ain on sale of land held for resale Total General Revenues and Transfers Change in Net Position Net Position, January 1 Net 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 $ (474,164) $ (835,708) (298,330) (1,709) 155,761 135,808 (24,340) (1,342,682) (1,342,682) 401011 MEM 1,458 (5,712) (4,254) (4,254) Total $ (474,164) (835,708) (298,330) (1,709) 155,761 135,808 (24,340) (1,342,682) 1,458 (5,712) (4,254) (1,346,936) 950,228 15,998 616,927 (21,565) 264,510 1,826,098 WPM 458 (8,737) (8,279) 483,416 7,290,684 7,774,100 $ (12,533) 3,043,588 3,031,055 950,228 15,998 617,385 (30,302) 264,510 1,817,819 470,883 10,334,272 $ 10,805,155 The notes to the financial statements are an integral part of this statement. 29 THIS PAGE IS LEFT BLANK INTENTIONALLY FUND FINANCIAL STATEMENTS CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 31 Assets Cash and temporary investments Receivables Accounts Delinquent taxes Interest Special assessments Due from other governments Prepaid items Total Assets Liabilities Accounts payable D ue to other governments Salaries payable U nearned revenue Total Liabilities Deferred Inflows of Resources U navailable revenue - property taxes Unavailable revenue - special assessments Total Deferred Inflows of Resources Fund Balances N onspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balances City of Lauderdale, Minnesota Balance Sheet Governmental Funds December 31, 2022 Special Revenue General ARPA Recycling $ 891,724 $ 247,803 $ 11,487 15,428 8,942 7,586 2,209 25 ilmir Capital Projects Street Improvement Park Dedication Development 70,433 $ 419,915 $ 339,524 $ 362,004 73,430 $ 937,401 $ 247,803 $ 143,863 $ 68,777 755 11,568 81,100 6,220 7,118 13,338 25 842,938 842,963 247,803 247,803 EM il 401. 4011 46,613 75 $ 466,603 $ 339,524 $ 362,004 3,385 $ 5,033 $ 3,385 72,312 72,312 68,166 68,166 $ 937,401 $ 247,803 $ 143,863 The notes to the financial statements are an integral part of this statement. 32 5,033 46,613 46,613 414,957 414,957 339,524 339,524 362,004 362,004 $ 466,603 $ 339,524 $ 362,004 Debt Service 2019A G.O. Improvement Bonds 2018A / 2021A G.0 Tax Increment Revenue Refunding Bond $ 234,230 $ 201,487 $ 435,717 197,739 197,739 237,978 237,978 $ 435,717 AMP Other Governmental Funds $ 439,820 3,828 Odd Total Governmental Funds $ 3,005,453 15,315 15,428 8,942 329,116 2,284 25 $ 443,648 $ 3,376,563 $ 510 510 91,581 3,194 348,363 443,138 $ 77,705 755 11,568 247,803 337,831 6,220 323,782 330,002 25 669,083 71,360 1,125,324 842,938 2,708,730 $ 443,648 $ 3,376,563 The notes to the financial statements are an integral part of this statement. 33 THIS PAGE IS LEFT BLANK INTENTIONALLY City of Lauderdale, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2022 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 Net pension liability Bonds 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. Special 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. G overnmental funds do not report long-term amounts related to pensions. Deferred outflows of pension resources Deferred inflows of pension resources G overnmental 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 $ 2,708,730 8,800,695 (2,946,007) (48,685) (337,807) (800,000) (15,166) 6,220 323,782 9 8, 522 (8,371) (7,813) $ 7,774,100 City of Lauderdale, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2022 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest on investments (loss) Miscellaneous Total Revenues Expenditures Current General government Public safety Public works Sanitation and recycling Culture and recreation Capital outlay Debt service Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Gain on sale of land held for resale Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 General $ Special Revenue ARPA 950,968 $ 123,169 524,591 27,697 59,844 23,644 2,892 (7,939) 61,778 1,738,947 463,149 1,033,352 115,344 118,312 1,730,157 8,790 OR 1. HMI IIMR 27,697 Eimil NMI 41111 Emir MM 27,697 27,697 8,790 834,173 $ 842,963 $ The notes to the financial statements are an integral part of this statement. 36 Capital Projects Street Recycling Improvement Park Dedication Development $ 6,118 62,362 (514) 67,966 70,189 70,189 (2,223) (2,223) 70,389 $ 68,166 75 8,003 (3,068) 5,010 M. limb 5,033 5,033 342,000 (2,476) 339,524 Mai EMI (23) 339,524 (23) 414,980 $ 414,957 $ ildgm ilmir (2,643) 137,700 135,057 135,057 (68,143) (68,143) 339,524 66,914 295,090 $ 339,524 $ 362,004 Debt Service 2019A G.O. Improvement Bonds 79,267 (1,709) 77,558 100,000 24,796 124,796 (47,238) 68,143 68,143 20,905 217,073 $ 237,978 2018A / 2021A G.0 Tax Increment Revenue Refunding Bond OMR (61) (61) Emir IMP 1,365,000 4,208 1,369,208 (1,369,269) 1,358,570 1,358,570 (10,699) 10,699 Other Governmental Funds 15,998 (3,155) 12,843 Ma OMR 22,758 16,536 39,294 (26,451) (1,358,570) 264,510 (1,094,060) (1,120,511) 1,563,649 $ 443,138 Total Governmental Funds $ 966,966 123,169 558,481 464,206 23,644 90,162 (21,565) 199,478 2,404,541 463,149 1,033,352 115,344 70,189 141,070 49,266 1,465,000 29,004 3,366,374 (961,833) 1,426,713 (1,426,713) 264,510 264,510 (697,323) 3,406,053 $ 2,708,730 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, 2022 Amounts reported for governmental activities in the statement of activities are different because Total Net Change in Fund Balances - Governmental Funds $ (697,323) 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 Depreciation expense 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. Bond principal paid 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. Special assessments Property 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 Change in Net Position - Governmental Activities The notes to the financial statements are an integral part of this statement. 38 27,697 (226,007) 1,465,000 2,333 2,331 (22,334) 1,488 (66,372) (740) (2,657) $ 483,416 City of Lauderdale, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2022 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest (loss) on investments Miscellaneous Total Revenues Expenditures Current General government Public safety Public works Culture and recreation Economic development Total Expenditures Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 Budgeted Amounts Original Final $ 950,351 36,650 524,591 11,100 25,000 4,000 4,000 1,000 1,556,692 409,996 939,101 91,487 108,108 8,000 1,556,692 WE 834,173 $ 834,173 $ 950,351 36,650 524,591 11,100 25,000 4,000 4,000 1,000 1,556,692 409,996 939,101 91,487 108,108 8,000 1,556,692 834,173 $ 834,173 The notes to the financial statements are an integral part of this statement. 39 Actual Amounts Variance with Final Budget $ 950,968 $ 123,169 524,591 59,844 23,644 2,892 (7,939) 61,778 1,738,947 463,149 1,033,352 115,344 118,312 1,730,157 8,790 834,173 617 86,519 48,744 (1,356) (1,108) (11,939) 60,778 182,255 (53,153) (94,251) (23,857) (10,204) 8,000 (173,465) 8,790 $ 842,963 $ 8,790 City of Lauderdale, Minnesota Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Recycling Fund For the Year Ended December 31, 2022 Revenues Intergovernmental County Charges for services Sanitation Interest (loss) on investments Total Revenues Expenditures Current Sanitation and recycling Personal services Other services and charges Total Expenditures Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 Budgeted Amounts Actual Original Final Amounts $ 6,118 $ 6,118 $ 55,419 55,419 800 800 Variance with Final Budget 6,118 $ 62,362 (514) 62,337 25,376 41,016 62,337 25,376 41,016 66,392 66,392 (4,055) (4,055) 70,389 70,389 67,966 25,699 44,490 70,189 (2,223) 70,389 66,334 $ 66,334 $ 40 68,166 6,943 (1,314) 5,629 (323) (3,474) (3,797) 1,832 $ 1,832 Assets Current Assets Cash and temporary investments Receivables Accounts receivable Special assessments Total Current Assets N oncurrent Assets Capital assets Infrastructure Less accumulated depreciation Total Noncurrent Assets Total Assets Deferred Outflows of Resources Deferred pensions resources Liabilities Current Liabilities Accounts payable Compensated absences payable Total Current Liabilities N oncurrent Liabilities Net pension liability Total Liabilities Deferred Inflows of Resources Deferred pension resources N et Position Investment in capital assets Unrestricted Total Net Position City of Lauderdale, Minnesota Statement of Net Position Proprietary Funds December 31, 2022 Business -type Activities Sewer $ 821,625 48,917 17,521 888,063 2,556,858 (723,843) 1,833,015 2,721,078 16,482 145 3,602 3,747 56,948 60,695 1,399 1,833,015 842,451 $ 2,675,466 The notes to the financial statements are an integral part of this statement. 41 Storm Sewer Total $ 373,837 $ 1,195,462 21,366 Emli 395,203 NM 395,203 14,127 145 3,602 3,747 48,797 52,544 1,197 355,589 $ 355,589 70,283 17,521 1,283,266 2,556,858 (723,843) 1,833,015 3,116,281 30,609 290 7,204 7,494 105,745 113,239 2,596 1,833,015 1,198,040 $ 3,031,055 City of Lauderdale, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2022 O perating Revenues Charges for services O perating Expenses Personal services Supplies Other services and charges Repair and maintenance Depreciation Total Operating Expenses O perating Income (Loss) N onoperating Revenues Other revenue Interest income (loss) Total Nonoperating Revenues Change in Net Position N et Position, January 1 N et Position, December 31 Business -type Activities Sewer Storm Sewer $ 326,090 $ 116,130 74,926 802 189,572 ME 59,332 324,632 1,458 248 (6,007) (5,759) (4,301) 2,679,767 2,675,466 The notes to the financial statements are an integral part of this statement. 42 64,246 801 26,895 29,900 121,842 (5,712) 210 (2,730) (2,520) (8,232) 363,821 $ 355,589 Total $ 442,220 139,172 1,603 216,467 29,900 59,332 446,474 (4,254) 458 (8,737) (8,279) (12,533) 3,043,588 $ 3,031,055 City of Lauderdale, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2022 Sewer Business -type Activities Storm Sewer Cash Flows from Operating Activities Receipts from tenants and users $ 321,006 Payments to suppliers (178,645) Payments to employees (76,463) Net Cash Provided (Used) by Operating Activities 65,898 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (160,300) Cash Flows from Investing Activities Interest on investments Net Increase (decrease) 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 (Used) 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 Special Assessments D eferred pension resources Increase (decrease) in liabilities/deferred inflows Accounts payable D ue to other governments payable Compensated absences payable N et pension liability Deferred pension resources (6,007) (100,409) 922,034 $ 821,625 1,458 59,332 248 39 11,864 (5,123) 6,790 (115) (20) (2,673) 23,495 (29,397) Net Cash Provided (Used) by Operating Activities $ Noncash Capital and Related Financing Activities Disposal of capital assets $ 65,898 $ 116,084 (57,397) (65,205) (6,518) MEI (2,730) (9,248) 383,085 $ 373,837 Total $ 437,090 (236,042) (141,668) 59,380 (160,300) (8,737) (109,657) 1,305,119 1,195,462 $ (5,712) $ 210 (46) 249 5,679 (50) (2,167) 20,331 (25,012) (4,254) 59,332 458 (7) 12,113 (5,123) 12,469 (165) (20) (4,840) 43,826 (54,409) $ (6,518) $ 15,000 $ The notes to the financial statements are an integral part of this statement. 43 59,380 THIS PAGE IS LEFT BLANK INTENTIONALLY City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 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. Separate financial statements are provided for governmental and proprietary funds. Major individual governmental funds and major individual enterprise 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. Property 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. 45 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 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 Park Dedication fund accounts for park dedication related expenditures. The Development fund accounts for development related revenues and expenditures. The 2018A / 2021A G.O. Tax Increment Revenue Refunding Bonds fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of the fund. 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 ARPA fund accounts for the activity related to how the ARPA funds are collected and spent. The Recycling fund accounts for the financial activity associated with city's recycling program. 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. 46 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 1: Summary of Significant Accounting Policies (Continued) 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. 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. 3. 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 5. 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. 7. 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. 47 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 1: Summary of Significant Accounting Policies (Continued) 9. 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). The City has the following recurring fair value measurements as of December 31, 2022: • Negotiable certificates of deposit of $2,140,746 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 2022. 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 48 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 1: Summary of Significant Accounting Policies (Continued) 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. 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, 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. 49 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 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, 2022 was $55,913 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. 50 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 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: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. 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. 51 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 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 2022. B. Excess of Expenditures Over Appropriations For the year ended December 31, 2022 expenditures exceeded appropriations in the following funds. Fund General Recycling Budget Excess of Expenditures Over Actual Appropriations $ 1,556,692 $ 1,730,157 66,392 70,189 The excess expenditures were funded by revenues in excess of expectations or available fund balance. Note 3: Detailed Notes on All Funds A. Deposits and Investments Deposits $ 173,465 3,797 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. 52 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 3: Detailed Notes on All Funds (Continued) 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 $269,040 and the bank balance was $275,458. 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. Investments At year end, the City's investment balances were as follows: Type of Investment Credit Quality/ Ratings (1) Segmented Time Distribution (2) Amount Fair Value Measurement Using Level 1 Level 2 Level 3 Pooled Investments at Amortized B roker Money Market 4M Fund Costs N/A P1 Non -pooled Investments at Fair Value N egotiable Certificates of Deposit N egotiable Certificates of Deposit Total Investments N/A N/A less than 6 months $ 1,501,373 $ less than 6 months 289,756 less than 1 year 1 to 5 Years 1,890,810 1,8901810 249,936 249,936 $ 3,931,875 $ - $ 2,140,746 $ (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. 53 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 3: Detailed Notes on All Funds (Continued) 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. 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 Reporting Entity $ 269,040 3,931,875 Total Cash and Temporary Investments $ 4,200,915 54 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 3: Detailed Notes on All Funds (Continued) B. Capital Assets Capital asset activity for the year ended December 31, 2022 was as follows: Governmental Activities Capital Assets not being Depreciated Land Capital Assets, being Depreciated Buildings Improvements other than buildings Machinery and equipment Infrastructure Total Capital Assets being Depreciated Less Accumulated Depreciation for Buildings Improvements other than buildings Machinery and equipment Infrastructure Total Accumulated Depreciation Total Capital Assets being Depreciated, Net Governmental Activities Capital Assets, Net Business -type Activities Capital Assets not being Depreciated Construction in progress Capital Assets being Depreciated Infrastructure Less Accumulated Depreciation for Infrastructure Total Capital Assets Being Depreciated, Net Business -type Activities Capital Assets, Net Beginning Balance $ 322,040 241,031 340,801 399,778 7,469,348 8,450,958 (206,514) (252,663) (203,641) (2,057,182) (2,720,000) 5,730,958 Increases IMIM 27,697 27,697 (1,475) (17,690) (22,279) (184,563) (226,007) (198,310) $ 6,052,998 $ Beginning Balance (198,310) Increases $ 142,600 $ 2,265,656 291,202 (664,511) 1,601,145 $ 1,743,745 $ 55 (59,332) 231,870 231,870 Decreases $ WM WM iMila $ Ending Balance $ 322,040 241,031 340,801 427,475 7,469,348 8,478,655 (207,989) (270,353) (225,920) (2,241,745) (2,946,007) 5,532,648 - $ 5,854,688 Decreases Ending Balance $ (142,600) $ - 2,556,858 (723,843) 1,833,015 $ (142,600) $ 1,833,015 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 3: Detailed Notes on All Funds (Continued) Depreciation expense was charged to functions/programs of the City as follows: G overnmental Activities General government $ 6,493 Public works 192,142 Culture and recreation 27,372 Total Depreciation Expense - Governmental Activities B usiness -type Activities Sewer C. Interfund Receivables, Payables and Transfers The City made transfer during the fiscal year 2022 as shown and described below: Fund $ 226,007 $ 59,332 Transfer In 2019A 2018A / 2021A G.O. G.0 Tax Increment Improvement Revenue Bonds Refunding Bond Total Transfer Out Development $ 68,143 $ - $ 68,143 Other governmental funds - 1,358,570 1,358,570 Total Transfers Out $ 68,143 $ 1,358,570 $ 1,426,713 Transfers were made for the following purposes: ® $68,143 was transferred from the Development fund to the other 2019A GO Improvement Bonds fund to fund debt service requirements. ® $1 358,570 was transferred from the TIF District No. 1-2 fund to the 2021A G.O. Tax Increment Revenue Refunding Bond fund for the early repayment of the 2021 A G.O. Tax Increment Revenue Refunding Bond. D . Long-term Debt G eneral 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 $ 900,000 1.50 - 3.00 % 06/26/19 02/01/30 $ 800,000 56 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 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, Principal Governmental Activities Interest Total 2023 $ 100,000 $ 17,937 $ 117,937 2024 100,000 16,313 116,313 2025 100,000 14,625 114,625 2026 100,000 12,875 112,875 2027 100,000 10,500 110,500 2028-2030 300,000 13,500 313,500 Total $ 800,000 $ 85,750 $ 885,750 Changes in Long-term Liabilities Long-term liability activity for the year ended December 31, 2022, was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental Activities Bonds Payable G .O. improvement bonds G .O. tax increment bonds Total Bonds Payable $ 900,000 $ 1,365,000 2,265,000 ME $ (100,000) $ 800,000 $ 100,000 (1,365,000) IMIE (1,465,000) 800,000 100,000 Unamortized Premium on Bonds 17,499 - (2,333) 15,166 Compensated Absences Payable 46,028 34,960 (32,303) 48,685 32,303 Governmental Activity Long-term Liabilities $ 2,328,527 $ 34,960 $ (2,964,636) $ 863,851 $ 132,303 Business -type Activities Compensated Absences Payable $ 12,044 $ 2,364 $ (7,204) $ 7,204 $ 7,204 57 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 3: Detailed Notes on All Funds (Continued) E. Components of Fund Balance At December 31, 2022, 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 Other governmental funds 2019A G.O. Improvement Bonds Park Dedication Fund 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 Note 4: Defined Benefit Pension Plan - Statewide A. Plan Description Purpose Prepaid items Tax increments Debt service Park dedication Cable access Recycling Street capital Capital purchases Development Park capital Amount 25 91,581 237,978 339,524 669,083 3,194 68,166 71,360 414,957 147,622 362,004 200,741 1,125,324 842,938 $ 2,708,730 The City participates in the following cost-sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA) PERA's defined benefit pension plans are established and administered in accordance with Minnesota statutes, chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan All full-time and certain part-time employees of the City are covered by the General Employees Plan. General Employees Plan members belong to the Coordinated Plan Coordinated Plan members are covered by Social Security. 58 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 4: Defined Benefit Pension Plan - Statewide B. Benefits Provided PERA provides retirement, disability and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. G eneral 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 PERA'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. Benefit increases are provided to benefit recipients each January. Beginning in 2020, the postretirement increase is equal to 50 percent of the cost -of -living adjustment (COLA) announced by the SSA with a minimum increase of at least 1 percent and a maximum of 1.5 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 until n ormal 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. G eneral Employees Fund Contributions Coordinated Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2022 and the City was required to contribute 7.50 percent for Coordinated Plan members. The City's contributions to the General Employees Fund for the year ending December 31 2022 2021 and 2020 were $31,231, $31,987, and 30,623, respectively. The City's contributions were equal to the required contributions for each year as set by state statute. D . Pension Costs G eneral Employees Fund Pension Costs At December 31, 2022, the City reported a liability of $443,552 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 2022. 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 $13,084. The net pension liability was measured as of June 30, 2022, 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, 2021 through June 30, 2022relative to the total employer contributions received from all of PERA s participating employers. At June 30 2022, the City's proportionate share was 0.0056 percent and 0.0058 percent at the beginning of the period. 59 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 4: Defined Benefit Pension Plan - Statewide (Continued) City's Proportionate Share of the Net Pension Liability $ 443,552 State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 13,084 Total $ 456,636 For the year ended December 31, 2022, the City recognized pension expense of $53 958 for its proportionate share of the General Employees Plan's pension expense. In addition, the City recognized an additional $1,955 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, 2022, 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 eferred Deferred O utflows Inflows of Resources of Resources Differences between Expected and Actual Economic Experience $ 3,705 $ 4,892 Changes in Actuarial Assumptions 103,853 1,804 Net Difference between Projected and Actual Earnings on Plan Investments 1,632 Changes in Proportion 4,549 4,271 Contributions Paid to PERA Subsequent to the Measurement Date 15,392 WM Total $ 129,131 $ 10,967 The $15,392 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 December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2023 $ 40,813 2024 38,001 2025 (16,152) 2026 40,110 E. Long -Term Expected Return on Investment The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return us ng 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: 60 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 4: Defined Benefit Pension Plan - Statewide (Continued) Asset Class Domestic Equity Alternative Assets (Private Markets) Bonds (Fixed Income) International Equity Total F. Actuarial Assumptions Target Allocation 33.5 25.0 25.0 16.5 100.00 % Long-term Expected Real Rate of Return 5.10 5.90 0.75 5.30 The total pension liability in the June 30, 2022 actuarial valuation was determined using an individual entry -age normal actuarial cost method The long-term rate of return on pension plan investments used in the determination of the total liability is 6.5 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of 6.5 percent was deemed to be within that range of reasonableness for financial reporting purposes. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to 3.0 percent after 27 years of service. Mortality rates for the General Employees Plan are based on the Pub - 2010 General Employee Mortality Table. The tables are adjusted slightly to fit PERA's experience. Actuarial assumptions used in the June 30, 2022 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 following changes in actuarial assumptions and plan provisions occurred in 2022: General Employees Fund Changes in Actuarial Assumptions • The mortality improvement scale was changed from Scale MP -2020 to Scale MP -2021 Changes in Plan Provisions • There were no changes in plan provisions since the previous valuation. 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: 61 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 Note 4: Defined Benefit Pension Plan - Statewide (Continued) G. Discount Rate The discount rate used to measure the total pension liability in 2022 was 6.50 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. H. 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 Pension Plan Fiduciary Net Position City Proportionate Share of NPL 1 Percent 1 Percent Decrease (5.50%) Current (6.50%) Increase (7.50%) $ 700,566 $ 443,552 $ 232,706 Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.orq. 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 e stimated. 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. 62 City of Lauderdale, Minnesota Notes to the Financial Statements December 31, 2022 N ote 5: Other Information (Continued) 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 2022 was $524,591 for LGA. This accounted for 30 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. N ote 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 no obligation for such debt. Accordingly, the bonds are not reported as liabilities in the financial statements of the City. As of December 31, 2022 the following issues were outstanding: Name Catholic Eldercare Benedictine Health System Catholic Eldercare Mltifamily Housing Revenue Bond 63 Date of Issue 12/1/2014 7/14/2016 11/7/2017 7/6/2022 Original Amount of Issue $ 9,300,000 10,000,000 9,000,000 14,300,000 Balance Outstanding $ 6,882,318 8,141,415 8,628,721 14,300,000 THIS PAGE IS LEFT BLANK INTENTIONALLY REQUIRED SUPPLEMENTARY INFORMATION CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 65 City of Lauderdale, Minnesota Required Supplementary Information December 31, 2022 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 06/30/22 06/30/21 06/29/20 06/30/19 06/30/18 06/30/17 06/29/16 06/29/15 0.0056 0.0058 0.0056 0.0055 0.0055 0.0057 0.0054 0.0054 $ 443,552 $ 247,686 335,746 304,083 305,117 363,884 438,453 279,856 13,084 7,466 10,402 9,500 9,738 Mid 456,636 255,152 346,148 313,583 314,855 363,884 438,453 279,856 Note: Schedule is intended to show 10 -year trend. Additional years will be Schedule of Employer's PERA Contributions - General Employees Fund Year Ending 12/31/22 12/31/21 12/30/20 12/31/19 12/31/18 12/31/17 12/30/16 12/30/15 Statutorily Required Contribution (a) Contributions in Relation to the Statutorily Required Contribution (b) $ 31,231 $ 31,987 30,623 29,770 28,591 27,025 26,561 23,836 426,203 415,003 403,062 389,732 371,496 365,590 348,652 312,684 104.1 % 59.7 83.3 78.0 82 1 99.5 125.8 89.5 reported as they become available. Contribution Deficiency (Excess) (a -b) 31,231 $ 31,987 30,623 29,770 28,591 27,025 26,561 23,836 City's Covered Payroll (c) $ 416,407 426,495 408,312 396,935 381,210 360,337 354,141 317,812 87.0 % 87.0 79.0 80.2 79.5 75.9 68.9 78.2 Contributions as a Percentage of Covered Payroll (b/c) Note: Schedule is intended to show 10 -year trend. Additional years will be reported as they become available. 66 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 City of Lauderdale, Minnesota Required Supplementary Information (Continued) December 31, 2022 Notes to the Required Supplementary Information - General Employees Fund Changes in Actuarial Assumptions 2022 - The mortality improvement scale was changed from Scale MP -2020 to Scale MP -2021 2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP -2019 to Scale MP -2020. 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, 2022 Notes to the Required Supplementary Information - General Employees Fund (Continued) Changes in Plan Provisions 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in plan provisions since the previous valuation. 2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 - 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 State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21 000,000 to $31,000,000 in calendar years 2019 to 2031. The state's contribution changed from $16,000,000 to $6,000 000 in calendar years 2019 to 2031. 2016 - There were no changes in plan provisions since the previous valuation. 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. Upon 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, 2022 69 Assets Cash and temporary investments Receivables Accounts Total Assets Liabilities Accounts payable 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, 2022 70 Special Revenue Communications $ Capital Projects (124) $ 439,944 3,828 MEM 3,704 $ 439,944 510 $ 3,194 3,194 $ 91,581 NW 348,363 439,944 3,704 $ 439,944 Total $ 439,820 3,828 $ 443,648 $ 510 91,581 3,194 348,363 443,138 $ 443,648 City of Lauderdale, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2022 Revenues Taxes Franchise fees Interest (loss) on investments Total Revenues Expenditures Current Culture and recreation Capital outlay Culture and recreation Economic development Total Expenditures Excess (Deficiency) of Revenues Under (Over) Expenditures Other Financing Sources (Uses) Transfers out Gain on sale of land held for resale Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 71 Special Revenue Communications Capital Projects $ 15,998 $ MA 15,998 22,758 22,758 (6,760) WM (6,760) 9,954 $ 3,194 Total Nonmajor Governmental Funds - $ 15,998 (3,155) (3,155) (3,155) 12,843 WM 14,644 1,892 16,536 (19,691) (1,358,570) 264,510 (1,094,060) (1,113,751) 1,553,695 $ 439,944 22,758 14,644 1,892 39,294 (26,451) (1,358,570) 264,510 (1,094,060) (1,120,511) 1,563,649 $ 443,138 City of Lauderdale, Minnesota Communications Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual For the Year Ended December 31, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) Revenues Taxes Franchise fees Interest on investments (loss) Total Revenues Expenditures Current Culture and recreation Personal services Other services and charges Total Expenditures Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 Final Budget $ 18,000 200 18,200 9,917 44,500 54,417 (36,217) 9,954 $ (26,263) 72 2022 Actual Amounts $ 15,998 15,998 10,036 12,722 22,758 Variance with Final Budget 2021 Actual Amounts $ (2,002) $ (200) (2,202) (6,760) 9,954 $ 3,194 (119) 31,778 31,659 17,907 (12) 17,895 9,546 12,914 22,460 29,457 (4,565) - 14,519 $ 29,457 $ 9,954 Assets Cash and temporary investments Fund Balances Restricted Assigned Total Fund Balances City of Lauderdale, Minnesota Nonmajor Capital Projects Funds Combining Balance Sheet December 31, 2022 401 General Capital Improvement 404 Park Improvement $ 147,622 $ 200,741 $ - $ 147,622 200,741 $ 147,622 $ 200,741 73 416 TIF District No. 1-2 $ Total 91,581 $ 439,944 $ 91,581 $ 91,581 348,363 $ 91,581 $ 439,944 City of Lauderdale, Minnesota Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2022 401 404 416 General Capital Park TIF District Improvement Improvement No. 1-2 Total Revenues Interest on investments (loss) $ (1,078) $ (1,467) $ (610) $ (3,155) Expenditures Capital outlay Culture and recreation - 14,644 14,644 Economic development - 1,892 1,892 Total Expenditures 14,644 1,892 16,536 Excess (Deficiency) Of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers out Gain on sale of land held for resale Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 (1,078) (16,111) (2,502) (19,691) IMIM $ (1,358,570) (1,358,570) 264,510 264,510 (1,094,060) (1,094,060) (1,078) (16,111) (1,096,562) (1,113,751) 148,700 216,852 1,188,143 1,553,695 147,622 $ 200,741 $ 91,581 $ 439,944 74 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, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) Revenues Taxes Property taxes Licenses and permits Business Nonbusiness Total licenses and permits Intergovernmental State Local government aid Charges for services General government Culture and recreation Total charges for services Fines and forfeitures Special assessments Interest (loss) on investments Miscellaneous Contributions and donations Other Total miscellaneous Total Revenues 2022 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget $ 950,351 $ 950,351 $ 950,968 $ 4,050 32,600 36,650 524,591 10,500 600 11,100 25,000 4,000 4,000 1,000 1,000 1,556,692 4,050 32,600 36,650 524,591 10,500 600 11,100 25,000 4,000 4,000 1,000 1,000 1,556,692 75 4,527 118,642 123,169 524,591 59,358 486 59,844 23,644 2,892 (7,939) 365 61,413 61,778 1,738,947 2021 Actual Amounts 617 $ 897,291 477 86,042 86,519 NM 48,858 (114) 48,744 (1,356) (1,108) (11,939) 365 60,413 60,778 4,125 25,564 29,689 524,591 7,751 162 7,913 22,615 843 (1,785) 305 29,831 30,136 182,255 1,511,293 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, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) Expenditures Current General government Legislative and executive Personal services Supplies Other services and charges Total legislative and executive 2022 Budgeted Amounts Original Final 17,803 250 6,800 24,853 Administration Personal services 190,281 Supplies 5,600 Other services and charges 45,936 Total administration 241,817 Election, audit, and legal fees Personal services Supplies Other services and charges Total election, audit, and legal fees Planning and zoning Personal services Supplies Other services and charges Total planning and zoning 21,613 3,100 50,850 75,563 23,043 1,000 43,720 67,763 Total general government 409,996 Public safety Police Other services and charges Fire Other services and charges Building inspections Personal services Other services and charges Total building inspections Total public safety 816,683 76,875 14,293 31,250 45,543 939,101 17,803 250 6,800 24,853 190,281 5,600 45,936 241,817 21,613 3,100 50,850 75,563 23,043 1,000 43,720 67,763 409,996 816,683 76,875 14,293 31,250 45,543 939,101 76 Actual Amounts 17,807 239 7,403 25,449 193,031 6,114 45,282 244,427 22,186 2,053 42,334 66,573 23,380 1,236 102,084 126,700 463,149 816,143 77,478 14,363 125,368 139,731 1,033,352 Variance with Final Budget 2021 Actual Amounts (2,750) (514) 654 (2,610) (573) 1,047 8,516 8,990 (337) (236) (58,364) (58,937) (53,153) 540 (603) (70) (94,118) (94,188) (94,251) 17,800 119 5,620 23,539 190,905 3,684 39,090 233,679 16,517 1,167 36,948 54,632 22,076 914 66,647 89,637 401,487 785,422 75,773 49,195 5,437 54,632 915,827 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, 2022 (With Comparative Actual Amounts for the Year Ended December 31, 2021) Expenditures (Continued) Current (continued) Public works Streets and highways Personal services Supplies Other services and charges Total streets and highways 2022 Budgeted Amounts Original Final $ 51,987 $ 4,000 29,500 85,487 51,987 4,000 29,500 Actual Variance with Amounts Final Budget $ 55,175 $ 7,464 44,855 85,487 107,494 Street lighting Other services and charges 6,000 6,000 Total public works 91,487 91,487 Culture and recreation Parks and recreation Personal services Supplies Other services and charges Total culture and recreation 98,808 1,500 7,800 108,108 98,808 1,500 7,800 108,108 Economic development Other services and charges 8,000 8,000 Total Expenditures 1,556,692 1,556,692 Net Change in Fund Balances Fund Balances, January 1 Fund Balances, December 31 ME 834,173 $ 834,173 7,850 115,344 102,388 5,081 10,843 118,312 WIN 1,730,157 8,790 834,173 834,173 $ 834,173 $ 77 842,963 2021 Actual Amounts (3,188) $ (3,464) (15,355) (22,007) (1,850) (23,857) (3,580) (3,581) (3,043) (10,204) 8,000 52,052 5,194 33,938 91,184 6,324 97,508 75,115 1,044 12,400 88,559 3,331 (173,465) 1,506,712 8,790 4,581 829,592 $ 8,790 $ 834,173 City of Lauderdale, Minnesota Summary Financial Report Revenues and Expenditures For General Operations Governmental Funds For the Years Ended December 31, 2022 and 2021 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Special assessments Interest (loss) on investments Miscellaneous Total Revenues Per Capita Expenditures Current General government Public safety Public works Sanitation and recycling Economic development Culture and recreation Capital outlay Debt service Principal Interest and bond issuance costs Total Expenditures Per Capita Total Long-term Indebtedness Per Capita General Fund Balance - December 31 Per Capita Total 2022 $ 966,966 123,169 558,481 464,206 23,644 90,162 (21,565) 199,478 2021 $ 915,198 29,689 570,842 62,227 22,615 57,787 (4,758) 38,948 $ 2,404,541 $ 1,692,548 $ 1,070 $ 745 $ 463,149 1,033,352 115,344 70,189 141,070 49,266 1,465,000 29,004 $ 3,366,374 $ 1,498 $ 800,000 356 $ 842,963 375 $ 401,487 915,827 97,508 68,109 3,331 111,019 179,453 1,395,000 81,377 $ 3,253,111 $ 1,432 $ 2,265,000 997 $ 834,173 367 Percent Increase (Decrease) 5.66 % 314.86 (217) 645.99 4.55 56.02 353.24 41216 42 07 % 43.58 % 15.36 % 12.83 18.29 3.05 (100.00) 27.07 (72 55) N /A (64 36) 3.48 % 4.59 % N /A N /A 1 05 % 213 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. 78 OTHER REQUIRED REPORT CITY OF LAUDERDALE LAUDERDALE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 79 THIS PAGE IS LEFT BLANK INTENTIONALLY INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Lauderdale, Minnesota AbdoSolutions.com 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, 2022, 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 4, 2023. 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 contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. 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. Abdo Minneapolis, Minnesota April 4, 2023 Lighting the path forward 81 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action X Resolution X Work Session Meeting Date April 11, 2023 ITEM NUMBER Speed Limit Resolution STAFF INITIAL f 1/ APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: In November, the city council asked Stantec, the city's engineering firm, to prepare a speed study to assess appropriate speeds for residential streets in Lauderdale. The conclusion was that residential streets could be posted 20 mph but Eustis Street north of Larpenteur and Roselawn Avenue fiom Fulham Stieet to Eustis Stieet can't be posted 20 mph because they are minor collector streets. In consultation with Adam Capets from Stantec and Ramsey County engineering staff the diagram of proposed signage was revised and is included in the packet. With the exception of one location staff believe signage can be added to existing poles. The cost for signage is $1,149 (see attached quote). In order to change the speed limits, the Council must adopt the following resolution. The expectation is that this would go into effect June 1 unless the Council prefers another date. Staff wouldn't suggest any soon so we have time to order and install the signage and get the word out about the change. The police chief and captain are prepared to discuss the roll out with the Council when they are here to present the annual report on April 25. OPTIONS: STAFF RECOMMENDATION: Motion to adopt Resolution No. 041123A A Resolution Adopting Reduced Speed Limits on Streets over which the City has Jurisdiction as the Road Authority. RESOLUTION NO. 041123A CITY OF LAUDERDALE COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION ADOPTING REDUCED SPEED LIMIT ON STREETS OVER WHICH THE CITY HAS JURISDICTION AS THE ROAD AUTHORITY WHEREAS, beginning in 2019 authority was given to cities to adopt a reduced speed limit on residential roadways under city jurisdiction per Minnesota Statutes, section 169.14; and WHEREAS, the City of Lauderdale is a walkable city, that is sustainable and safe and lowering the speed limits will provide for safer streets and reduce the likelihood of death or life -changing injuries; and WHEREAS, on November 22, 2022 the City Council authorized the city engineer to complete a speed limit study to determine the appropriate speed limits for municipal street; and WHEREAS, the city engineer prepared the City of Lauderdale Speed Limit Study dated January 19, 2023, which indicates that speed limits for low volume municipal streets may be set at 20 MPH and municipal minor collector streets may be set at 25 MPH and WHEREAS, the speed limit for low volume municipal streets has been set in compliance with Minnesota Statutes, section 169.14, subd. 5h. NOW THERFORE BE IT RESOLVED, the City Council of the City of Lauderdale adopts reduced speed limit on municipal streets over which the city has jurisdiction as the road authority per the City of Lauderdale Speed Limit Study; and NOW THERFORE BE IT FURTHER RESOLVED, the reduced speed limits will go into effect on June 1, 2023 after installation of new speed limit signs. ADOPTED this 11th day of April, 2023 by the Lauderdale City Council. Mary Gaasch, Mayor ATThST: Heather Butkowski, City Administrator Earl F. Andersen Division of Safety Signs 19784 Kenrick Avenue Lakeville,MN 55044 (952) 884 7300 www.efa mn.com Quoted To: CITY OF LAUDERDALE 1891 WALNUT ST PAUL MN 55113 Confirm To: HEATHER 651-792-7657 SALES QUOTE Quote Number: Quote Date: Salesperson: Customer Number; Quote Expiration Date: Ship To: CITY OF LAUDERDALE 1891 WALNUT ST PAUL MN 55113 Page: 1 0147411 3/27/2023 HOUSE ACCOUNT 0002122 12/31/5999 Customer P.O SPEED CHANGE S hip VIA B EST F.O.B. Terms NET 30 Item Code Item Description Unit Ordered Price Amount S IGN S IGN S IGN S IGN S IGN R2-1 24X30 B/W 3M HIP S HEETED SPEED LIMIT 20 R2-5AP 24"X6" B/W 3M H IP SHEETED CITYWIDE R2 -5P 24"X18" B/W 3M H IP SHEETED UNLESS OTHERWISE POSTED R2-1 24X30 B/W 3M HIP SHEETED SPEED LIMIT 25 R2-1 24X30 B/W 3M HIP S HEETED SPEED LIMIT 20 EACH EACH EACH EACH EACH 10.00 10.00 10.00 4.00 2.00 SHIPPING TO BE ADDED ONCE SHIPPED CAN BE PICKED UP IN LAKEVILLE WHEN READY. To accept this quote please sign here: THIS QUOTE EXPIRES 15 DAYS FROM DATE OF ISSUE, 43.750 15.000 29.900 43,750 43.750 Net Quote: Freight: Sales Tax: Quote Total: Less Deposit: Quote Balance: 437.50. 150.00 299.00 175.00 87.50 1,149.00 0.00 0.00 1,149.00 0.00 1,149.00 S pecial order items are not returnable. Returns and/or cancelled orders may be subject to a restocking/cancellation charge. A return authorization number is required prior to returning any product. No returns accepted after 60 days from date of original invoice date. CITY OF LAUDERDALE SPEED LIMIT STUDY Conclusions and Next Steps ._R.ya n:S t _ De 9 Lauderdale 41 -co 4 jI 4 Q 1 451 0 -S-pr,ing:St- +; d co ,n .j -pIre 1 ;u) r(ii; (9 r� Il9Larpenteur A [P- i I\ i �` 4 Ij ' Com_o-gye �l Lmner seminary 999 Gateway 20 mph 25 mph Sign Figure 13: Speed Limit Sign Plan 127 $' j Ro.se.law 0- 128 1 0-, 5.3 ENFORCEMENT While enforcement is the last strategy typically considered when changing roadway infrastructure, it is an important step in the process of speed limit reduction and is effective if done fairly and strategically. In its initial phases enforcement (contracted with the Saint Anthony Police Department) can be carried out with increased patrol visibility, increased traffic stops with warnings being issued for a 6 -month period for non - flagrant violations, writing citations for flagrant violations, and with passive means such as using speed trailers at certain locations. As enforcement is conducted over time, the new speed limits will become more credible and respected by drivers. ca u:1193805998Ireportsltechnicalreportslcity of Lauderdale speed hmit study.docx 26 LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action X Resolution X Worlc Session Meeting Date April 11, 2023 ITEM NUMBER No Mow May Program STAFF ,INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: The University of Minnesota Bee Lab website says, ` ...the purpose of No Mow May is to encourage people to let spring floweis in their lawns bloom before mowing. Hibernating pollinators often need a bit more time under the leaves before they can safely emerge Leaves left on the ground provide important insulation for bees hibernating underground and for moths and butterflies that overwinter in the leaves Leaving your leaves where they aie until temperatures are above 50 degrees F for 5 consecutive days will give most of those hi- bernating pollinators the protection that they need." Last year the City supported the ` No Mow May" campaign. Residents were offered win- dow signs if they participated and code enforcement for rank growth was suspended through the end of May. As the Council discussed in February, No Mow May has downsides but the Council didn't want to stand in the way of those that want to participate Like the U of M, the Council encourages residents to plant native and sustainable early spring floweis like violets, pussy toes, serviceberries, and bluebells to provide early spring food for pollinators. To proceed the Council must adopt the following resolution suspending the city code re- quirement that grass and weeds not exceed 8 inches in height during the month of May. No Mow May signs printed on heavy card stock foi windows will be available at City Hall. We encourage residents to buy their prefeired No Mow May / bee habitat yard signs OPTIONS: STAFF RECOMMENDATION: Motion to adopt Resolution No. 041123B A Resolution Supporting No Mow May Initia- tive 2023. RESOLUTION NO. 041123E CITY OF LAUDERDALE COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION SUPPORTING NO MOW MAY INITIATIVE 2023 WHEREAS, the City of Lauderdale City Council has made the environment and sustainability a priority and WHEREAS, recent research suggests that bee pollinators make use of spaces that have not been mowed as key floral resources during early spring in the upper Midwest United States; and WHEREAS, pollinators and floral resources have a positive relationship, where the increase in pollinators can increase the amount of flora and vice versa; and WHEREAS, the Lauderdale City Council finds it in the public interest and consistent with our priorities for the City to demonstrate its commitment to a safe and healthy community environment through the implementation of initiatives that help increase the pollinator population, No Mow May being one of those. NOW THEREFORE BE IT RESOLVED that the Laudeidale City Council proclaims May 1 - May 31, 2023 as `No Mow May" and encourages residents who wish to participate in this initiative to refiain from mowing lawns in May to provide vital early spring flowers for bees that emerge from hibernation and post notice of their participation through signage. BE IT FURTHER RESOLVED that the City temporarily suspends enforcement of Laudeidale City Code requirements regarding grass length and regular cutting of weeds foi No Mow May participants. The temporary suspension will last through June 5, 2023. ADOPTED this 11th day of April, 2023 by the Lauderdale City Council. Mary Gaasch, Mayor ATTEST: Heather Butkowski, City Administrator LAUDERDALE COUNCIL ACTION FORM Action Requested Consent Public Hearing Discussion X Action Resolution Work Session X Meeting Date April 11, 2023 ITEM NUMBER Pothole Repair STAFF INITIAL APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST COUNCIL ACTION: As staff mentioned at the previous meeting, we generally don't have spring potholes to re- pair since we keep up with maintenance. With the age of our loads and the winter we had, we have a couple of problem areas and need to come up with a solution. Staff spoke with Jake Wegscheider from Goodmanson Construction about repair options. He provided two proposals. 1. Repair the road deterioration on Walnut Street ($2,746) and the sinking section of road on Pleasant Street ($13,561) and then repair/patch potholes around town on a time and materials basis not to exceed $5 000. Condition issues are popping up as the snow re- cedes. We can see how far $5,000 goes in repairing potholes. If there are more issues, we can discuss. Staff recommend approving this proposal. 2. The second proposal is for catch basin and manhole structure repairs. We have a few sinking manholes around town that are like driving over potholes There is also a square catch basin in the Pleasant/Lake Street alley with significant condition issues We antic- ipated fixing these with the mill and overlay project in a couple of years but some need repair sooner. Goodmanson suggested repairing with concrete for a permanent fix and then they wouldn't need repairs in 2-3 years. The city engineer said repairing with con- crete is becoming more and more common as they hold up better/ don't settle. Staff are still gauging how many repairs are needed as the sno'i recedes and will have more in- formation at or in advance of the meeting to share in order to make a final decision on the proposal. Pricing: Since this type of work is hard to get apples to apples quotes for, staff asked the city engineer to compare Goodmanson s pricing to what they are seeing on bigger mill and over- lay projects. They reported the pricing is reasonable with big projects seeing a little lower pricing There is value in completing some of this work now as pricing goes up every year. Staff will continue to work on this item with the expectation we will have answers to our outstanding questions by the council meeting. STAFF RECOMMENDATION: IMANS:N CONSTRUCTION PROPOSAL 1 600 KASOTA AVE SE MINNEAPOLIS, MN 55414 OFFICE: (651) 636-4996 WWW.GOODMANSONCONSTRUCTION.COM Date: 4.5.23 Proposal Submitted To: City of Lauderdale Heather Butkowski 651-792-7657 heather. butkowski@lauderdalemn.org Work To Be Performed At: Skin Patch & Asphalt Replacement Lauderdale, MN 55113 We hereby propose to furnish the materials and per form the labor necessarh for the completion of 1784 Walnut Site Dia_ rfanr 'NtJfAkgmitaisa 1iumisyl{tt1ra. toat■1't _eatuams Ali sun 4 tan J ,. ' rtj 1. . v :_ .. r ,,.::::. .11‘.." ::: .4- • $ toll._ .. . 16., : - '114" I .' '' 11:::11111 4: i. lJ r • 4 r .•• ti — r — • •_ ti- t l- ,:' ` i`'• . i ` i ;,t ,� . . ♦ - {es' • i r,• .• • }• • .1 • • 4•' It ". $ 1.♦ •• •'r '• • - _ t • �' • 'I . ` 2 ASPHALT REPAIR: $2,746.00 (YES) (NO) ***Must approve this job with the Pleasant Street Replacement job for this price*** (PLEASEANT STREET REPLACMENT) We hereby propose to furnish the materials and perform the labor necessary for the completion of ➢ WALNUT STREET SKIN PATCH & MALVERN STREET QUICK PATCH: • 1784 Walnut Street (12' x 20'): ✓ Edge -mill where needed. ✓ Install 2" of SPWEA340B hot asphalt mix by hand. ✓ Compact with vibratory rollers. ✓ Clean out 2' x 2' pot -hole, fill with hot mix and compact. • Malvern St. & Spring Street (1' x 18' asphalt scrape: ✓ Clean out 1' x 18' gouged pot -hole, fill with hot mix and compact. r • Remove (30' x 42') Heaving Asphalt section. Assess & correct aggregate subbase and install asphalt to meet exisitng thickness. 1 • r •• s -- • . • • . • -s resl�•• a �f - • "' S.i • �-I!'i s = '. _•40411114114.I F •f f -• • • (• _• L• fr.:, rr ,rr 1-E •)-5•1 •••• 62,41 • f t • ' • • NIP f• a•,•:••• • • t • P� - • t.• •�^ki• 0 • • •_`a 1 s w • � M•l• t r� a • A ti A •• • �1 j4 LL• tt 5� ON,'r • • • • -_•t..% -1 . • ➢ PLEASANT STREET ASPHALT REMOVE & REPLACE: • 1759 Pleasant St. Heaving Asphalt (30' x 42'): ✓ Set up Traffic Control ✓ Saw -cut, remove, haul away and recycle failing asphalt up to 12" depth (which includes aggregate subbase). ✓ Compact Sub Grade. ✓ Furnish and install 8" of MN/DOT 3138 Class 5 Recycled Aggregate Base ✓ ASPHALT INSTALLATION: Includes Goodmanson Signature Service —with a (1,260 sf) Heavy duty asphalt pavement. 2" (Base course) w/SPWEA340B hot mix asphalt, 2" (Wear course) SPWEA340B hot mix asphalt. 1759 ASPHALT REPLACEMENT: $13,561.00 (YES) (NO) 3 We hereby propose to furnish the materials and perform the labor necessary foi' the completion of.' ➢ ADDED ASPHALT STREET PATCH WORK: • Areas to be determined between Lauderdale & Goodmanson: ✓ Clean out various pot -holes that need some patch work done. ✓ Place asphalt in pot -hole and compact. ✓ Cost will be time & Materials with a NOT TO EXCEED (NTE) COST. NOT TO EXCEED: $5,000.00 (YES) (NO) **Exclusions: 1. Relocating/Damage to buried unmarked obstacles (irrigation, utilities, etc). 2. Private Locates if needed (estimate costs: S600-1200.) 3. Engineering/Design. 4. Cost of Permits (estimated cost: $lk to $3k) if needed. 5. Normal work hours 7am-6pm Monday -Friday. Winter Conditions 11/1-4/15 6. Electrical, plumbing, painting, boring, veneering, lighting, landscaping, watering of seed/sod. 7. Any ADDITIONAL sewer or utility work not described in above scope. 8. Hauling or disposal of contaminated materials. 9. Repairs to unforeseen issues during excavation. 10. Any other items not described in above scope. WORK CREW All concrete work to be expertly performed by Goodmanson employees/ACI Certified Finishers. LICENSED BONDED AND INSURED ➢ MN LIC#: BC627075 $9 million umbrella coverage Notes: • Exclusions - Cost of Permits, Electrical, Plumbing, Landscaping, Watering, Railings, Disposing of Contaminated Materials, Damage to Underground Utilities/Irrigation, Private Locates, Design/Engineering/Surveying, Subsoil Correction, Testing, Traffic Control • This proposal may be withdrawn by Goodmanson Construction if not accepted withing 7 days. • (1) Mobilizations Included. For additional mob(s) add $2,500.00 • Any alteration or deviation from specifications involving extra costs, will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance upon above work. Workmen's Compensation and Public Liability Insurance on above work to be taken out by: Goodmanson Construction, Inc. All concrete cracks. Every measure possible will be taken to control cracks so they cannot be seen. Teems of Proposal 4 MN License #BC627075 1 AA/EEO/Vets/Disability Employer Length of Proposal: This proposal may be withdrawn by Goodmanson Construction if not accepted within 7 days. Permits (if necessary): Cost of permit(s), if needed, not included in this proposal. Goodmanson Construction will obtain and asked to be reimbursed. Concrete/Asphalt Removal (if applicable): Cost includes up to 51/2" of existing concrete/asphalt removal. If thicker than 51/2", $0.50 per inch of extra thickness per square foot will be charged following discussion and signed change order from owner. Sub Soil (if applicable) Cost includes up to 6" of recycled concrete base installation. If additional base is required, $0.50 per inch of base per square foot will be charged following discussion and signed change order from owner. Railings (if applicable): Goodmanson does not replace or install railings. We recommend Andrew Laliberte with Dakota Unlimited 651-322-7123. Irrigation Systems/Electrical/Utilities (if applicable): Not responsible for damage to irrigation lines and heads/electrical lines/utilities. Gopher One locates requested by Goodmanson are for the safety of our employees only. Public and private utility locates do not guarantee location of utilities nor guarantee Goodmanson can avoid damage. Goodmanson will use the best care possible to prevent any damage and will repair unexposed services at additional charge. Pulrment Schedule: 10% deposit required to schedule (new customer), Payments Due as Work Progresses, Balance Due Day of Completion 18% per Year (1.5% month) Late Fee Applies' on All Late Payments CASH & CHECK ACCEPTED OR MASTERCARD & VISA WITH 2 % SERVICE FEE Concrete has a natural variation in appearance and color similar to marble, granite and wood. Keep in mind that the color samples shown are an approximation of the final concrete color of the finished concrete. The in-place concrete will be affected by the concrete mixture, materials selected, finishing techniques, curing and sealing methods and weather conditions. Final in-place concrete will NOT look exactly like samples. Any alteration or deviation from specifications involving extra costs, will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond 011/' control. Owner t0 early fire, tornado and other necessary insurance upon above work. Workmen's Compensation and Public Liability insurance on above work to be taken out by: Goodmanson COnstr'llct ion, Inc. All concrete cracks. Every measure possible will be taken to control cracks so they cannot be seen. PRE -LIEN NOTICE: ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE CONTRIBUTIONS. UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS WHO SUPPLY LABOR OR MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE, OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE. CUSTOMER'S THREE-DAY RIGHT TO TERMINATE: CUSTOMER IS ADVISED THAT IF THE WORK INVOLVES THE CUSTOMER'S HOMESTEAD, FEDERAL LAW ALLOWS CUSTOMER TO TERMINATE THIS AGGREEMENT FOR ANY REASON WITHIN THREE (3) DAYS AFTER SIGNING IT. CUSTOMER ACKNOWLEDGES THAT THEY HAVE RECEIVED SUCH NOTICE PURSUANT TO THIS SECTION AND PURSUANT TO THE NOTICE OF RESCISSION ATTACHED HERE TO. ©©FR Lir RCI@ -q ((DP The above prices, specifications and conditions are satisfactory and are hereby accepted. Goodmanson Construction is authorized to do the work as specified. Payment will be made as outlined above. Signature: Date: BILLING INFORMATION Preferred Billing: ❑ Email or ❑ USPS Payment Terms: ❑ Net 15 — subtract 1% from job total ❑ Net 30 — Contract price ❑ Net 45—add 1% to job total ❑ Net 60— add 2.5%to job total Business Name: Accounts Payable Contact: Project Name: Mailing Address: City, State, Zip: Phone Number: E-mail Address: DOCUMENTS NEEDED: ❑ W-9 ❑ Certificate of Insurance ❑ Other ❑ P.O. # Submitted" by: ,lake Wegscf eider Project Estimator/Designer G DMANS N NSTRUCTION 1 600 KASOTA AVE SE MINNEAPOLIS, MN 55414 OFFICE: (651) 636-4996 WWW.GOODMANSONCONSTRUCTION.COM Date: 4.5.23 Proposal Submitted To: City of Lauderdale Heather B utkowski 651-792-7657 heather.butkowskiglauderdalemn.org Work- To Be Performed At: CATCH BASIN WORK 1891 Walnut Street Lauderdale, MN 55113 We hereby propose to furnish the materials and perform the labor necessaj'y for the completion of.' [RECTANGLE Site Diagram) ,-- V . \ %.I r U. • • rZ_ ` _ \ . Saw cut, remove & dispose of asphalt. Assess structure rings of catch basin. Fix damaged rings as needed. Compact aggregate base & pour back (144sf) of 6" thick concrete reinforced with macrofibers. • , 1 •i• • /41 • ,, : y•.•. • • It,.•I J . v • -- 4',81i .,-•r • • • 1.� 1 ire:vi E - �. '-1 ilrr- zia `.y4.1 waZ TSS. ♦•-.1 �. 2 We hereby propose to furnish the materials and perform the labor necessary for the completion of: ➢ CONCRETE CATCH BASIN SURROUND: • ✓ CONCRETE & RECTANGLE STRUCTURE RINGS: Saw cut out 12'x12' section around catch basin, remove, and haul away asphalt. Assess damaged rings & replace. Properly grade and compact base with up to 6" of class 5 rock for grading purposes. Install 6" thick concrete reinforced with 3## per cubic yard macrofibers. 5,000 psi concrete mix. Caulk seam around concrete where asphalt meets concrete. • CONCRETE & CIRCLE STRUCTURE RINGS: ✓ Saw cut out 9'x9' section around catch basin, remove, and haul away asphalt. ✓ Assess damaged rings & replace. ✓ Properly grade and compact base with up to 6" of class 5 rock for grading purposes. ✓ Install 6" thick concrete reinforced with 3# per cubic yard macrofibers. ✓ 5,000 psi concrete mix. ✓ Caulk seam around concrete where asphalt meets concrete. ❖ Extra discounts for signing up to replace 5 or 10+ catch basin surrounds RECTANGLE Surround Catch Basin 144 Sq. Ft: CIRCLE Surround Catch Basin 81 Sq. Ft.: (5) CIRCLE Surround Catch Basin 81 Sq. Ft.: (10+) CIRCLE Surround Catch Basin 81 Sq. Ft.: $5,556.00 $4,587.00 $20,974.00 (YES) (NO) (YES) (NO) $39,097.00 (YES) (NO) (YES) (NO) If a specific number, such as, 7 catch basin surrounds are needed, I can price that out too! **Exclusions: 1. Relocating/Damage to buried unmarked obstacles (irrigation, utilities, etc). 2. Private Locates if needed (estimate costs: $600-900.) 3. Engineering/Design. 4. Cost of Permits (estimated cost: /$lk to $3k) ([needed. 5. Normal work hours 7am-6pm Monday -Friday. Winter Conditions 11/1-4/15 6. Electrical, plumbing, painting, boring, veneering, lighting, landscaping, watering of seed/sod. 7. Any ADDITIONAL sewer or utility work not described in above scope. 8. Hauling or disposal of contaminated materials. 9. Repairs to unforeseen issues during excavation. 10. Any other items not described in above scope. WORK CREW ➢ All concrete work to be expertly performed by Goodinanson employees/ACI Certified Finishers. LICENSED BONDED AND INSURED ➢ MN LIC#: BC627075 ➢ $9 million umbrella coverage 3 We hereby propose to furnish the materials and perform the labor necessary for the completion of: ***Following Pli oro shows fl typical project area*'"" Additional costs may occur after inspection of other locations picked out by the City of Lauderdale (Circle Concrete Surrounds Diagram) 9' 4 11 .,w;:Atte; ;:IV:r �� 1, f • C. - .I ti • 1L' .51 i• ift moil 144 h, '•.et%'l'Yj7 M �.. • 411 tz:4 :r i Rt • • • • T. r 4• '•) 4,S773 1 z y -J t, { w Saw cut, remove & dispose of asphalt. Assess structure rings of catch basin. Fix damaged rings as needed. Compact aggregate base & pour back (8lsf) of 6" thick concrete reinforced with macrofibers. • r 4iia' 3 t• ` $ .R1 4*' .; xj bel t 441, -Pt 44 . r, is i L1���t. Teems of Proposal 4 MN License #BC627075 1 AA/EEO/Vets/Disability Employer Length of Proposal: This proposal may be withdrawn by Goodmanson Construction if not accepted within 7 days. Permits (if necessary): Cost of permit(s), if needed, not included in this proposal. Goodmanson Construction will obtain and asked to be reimbursed. Concrete/Asphalt Removal (if applicable): Cost includes up to 51/2" of existing concrete/asphalt removal. If thicker than 51/2", $0.50 per inch of extra thickness per square foot will be charged following discussion and signed change order from owner. Sub Soil (if applicable) Cost includes up to 6" of recycled concrete base installation. If additional base is required, $0.50 per inch of base per square foot will be charged following discussion and signed change order from owner. Railings (if applicable): Goodmanson does not replace or install railings. We recommend Andrew Laliberte with Dakota Unlimited 651-322-7123. Irrigation Systems/Electrical/Utilities (if applicable): Not responsible for damage to irrigation lines and heads/electrical lines/utilities. Gopher One locates requested by Goodmanson are for the safety of our employees only. Public and private utility locates do not guarantee location of utilities nor guarantee Goodmanson can avoid damage. Goodmanson will use the best care possible to prevent any damage and will repair unexposed services at additional charge. Pawnlent Schedule: 10% deposit required to schedule (new customer), Payments Due as Work Progresses, Balance Due Day of Completion 18% per Year (1.5% month) Late Fee Applies on All Late Payments CASH & CHECK ACCEPTED OR MASTERCARD & VISA WITH 2 % SERVICE FEE Concrete has a natural variation in appearance and color similar to marble, granite and wood. Keep in mind that the color samples shown are an approximation of the final concrete color of the finished concrete. The in-place concrete will be affected by the concrete mixture, materials selected, finishing techniques, curing and sealing methods and weather conditions. Final in-place concrete will NOT look exactly like samples. Any alteration or deviation from specifications involving extra costs, will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner t0 carry fire, tornado and other necessary insurance upon above work. Workmen's Compensation and Public Liability Insurance on above work to be taken out by: Goodmanson Construction, Inc. All concrete cracks. Every measure possible will be taken to control cracks so they cannot be seen. PRE -LIEN NOTICE: ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE CONTRIBUTIONS. UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS WHO SUPPLY LABOR OR MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE, OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE. CUSTOMER'S THREE-DAY RIGHT TO TERMINATE: CUSTOMER IS ADVISED THAT IF THE WORK INVOLVES THE CUSTOMER'S HOMESTEAD, FEDERAL LAW ALLOWS CUSTOMER TO TERMINATE THIS AGGREEMENT FOR ANY REASON WITHIN THREE (3) DAYS AFTER SIGNING IT. CUSTOMER ACKNOWLEDGES THAT THEY HAVE RECEIVED SUCH NOTICE PURSUANT TO THIS SECTION AND PURSUANT TO THE NOTICE OF RESCISSION ATTACHED HERE TO. ig@rq rif RCI@IR COY EC, The above prices, specifications and conditions are satisfactory and are hereby accepted. Goodmanson Construction is authorized to do the work as specified. Payment will be made as outlined above. Signature: Date: BILLING INFORMATION Preferred Billing: ❑ Email or ❑ USPS Payment Terms: ❑ Net 15 - subtract 1% from job total ❑ Net 45 -add 1% to job total Business Name: Net 30 - Contract price Net 60 - add 2.5% to job total Accounts Payable Contact: Project Name: Mailing Address: City, State, Zip: Phone Number: E-mail Address: DOCUMENTS NEEDED: L1 W-9 ❑ Certificate of Insurance ❑ Other P.O. # Submitted" by: ,lake Wegscf eufer Project Estimator/Designer