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HomeMy WebLinkAbout2022 ACFRCity of Saint Anthony Saint Anthony, Minnesota 2022 Annual Comprehensive Financial Report YEAR ENDED DECEMBER 31, 2022 Prepared By: Finance Department Our mission is to promote a high quality of life to those we serve through outstanding city services. - This page intentionally left blank - ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF ST. ANTHONY, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2022 Prepared By: Finance Department Shelly Rueckert, Finance Director - This page intentionally left blank - CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Letter of Transmittal 3 Organization 9 Organizational Chart 10 Independent Auditor's Report 13 Management's Discussion and Analysis 19 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 31 Statement of Activities Statement 2 32 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 34 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds Statement 4 36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds Statement 5 38 Statement of Net Position - Proprietary Funds Statement 6 39 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 40 Statement of Cash Flows - Proprietary Funds Statement 8 41 Notes to Financial Statements 43 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 88 Budgetary Comparison Schedule - Community Center Fund Statement 10 93 Schedule of Changes in the City's Total OPEB Liability and Related Ratios Statement 11 94 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 95 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 96 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 14 97 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 98 Schedule of Changes in the Net Pension Liability and Related Ratios - St. Anthony Fire Department Relief Association Statement 16 99 Schedule of Contributions - St. Anthony Fire Department Relief Association Statement 17 100 Notes to RSI 101 II. FINANCIAL SECTION CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 109 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 19 110 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 115 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 21 116 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 119 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 23 120 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 122 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 25 123 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Police Forfeiture Fund Statement 26 124 HRA Fund Statement 27 125 Supplementary Financial Information: Street Improvement Debt Service Fund: Balance Sheet Exhibit 1 128 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 130 HRA TIF Improvements Fund: Balance Sheet Exhibit 3 132 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 133 Street Improvement Project Fund: Balance Sheet Exhibit 5 134 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 6 135 HRA TIF Debt Service Fund Balance Sheet Exhibit 7 136 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 8 137 Water/Sewer/Water Plant Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Position Exhibit 9 138 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Financial Trends: Net Position by Component Table 1 140 Changes in Net Position Table 2 142 Fund Balances - Governmental Funds Table 3 146 Changes in Fund Balances - Governmental Funds Table 4 148 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 150 Direct and Overlapping Property Tax Rates Table 6 151 Principal Property Taxpayers Table 7 152 Property Tax Levies and Collections Table 8 153 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 154 Direct and Overlapping Governmental Activities Debt Table 10 157 Legal Debt Margin Information Table 11 158 Pledged Revenue Coverage Table 12 160 Demographic and Economic: Demographic and Economic Statistics Table 13 163 Principal Employers Table 14 165 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 15 166 Operating Indicators by Function/Program Table 16 168 Capital Asset Statistics by Function/Program Table 17 170 III. STATISTICAL SECTION (Unaudited) - This page intentionally left blank - I. INTRODUCTORY SECTION 1 - This page intentionally left blank - 2 Our mission is to be a progressive and welcoming Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com June 30, 2023  To the Honorable Mayor, Members of the City Council, and Citizens of the City of St. Anthony,  Minnesota:  State law requires that all general‐purpose local governments publish, within six months of the  close of each fiscal year, a complete set of audited financial statements.  This report is published  to fulfill that requirement for the fiscal year ended December 31, 2022.  Management assumes full responsibility for the completeness and reliability of the information  contained in this report, based upon a comprehensive framework of internal controls that have  been established for this purpose.  Because the cost of internal controls should not exceed  anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that  the financial statements are free of any material misstatements.  Redpath and Company, Ltd., Certified Public Accountants, have issued an unmodified opinion  on the City of St. Anthony’s financial statements for the year ended December 31, 2022.  The  independent auditor’s report is located at the front of the financial section of this report.    Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s  report and provides a narrative introduction, overview, and analysis of the basic financial  statements.  The MD&A complements this letter of transmittal and therefore should be read in  conjunction.  Profile of the City  The City of St. Anthony, incorporated in 1945, is located near Northeast Minneapolis and is a  first ring northern suburb of the Minneapolis‐St. Paul metropolitan area.  The City is a  completely developed community and is bordered on all sides by the communities of  Minneapolis, Columbia Heights, New Brighton and Roseville.  Approximately two‐thirds of the  City is located in northeastern Hennepin County and one‐third is located in the northwest  corner of Ramsey County.  The City encompasses a land area of 2.35 square miles and serves a  population of 9,257.  The City is located 10 minutes north of downtown Minneapolis and 15 minutes northwest of  downtown St. Paul.  City residents and businesses have easy access to all parts of the  Minneapolis‐St. Paul metropolitan area by the use of Interstate 35W, Interstate 694 and  Highway 280.  3 Our mission is to be a progressive and welcoming Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com The City is served by Independent School District (ISD) #282 (St. Anthony), which has a  2021/2022 enrollment of approximately 1,800, operates one elementary school, a middle school  and senior high in the City.  In addition, a private school, St. Charles Borromeo, offers K‐8 grade  education with enrollment of approximately 310 students.   The City operates as a statutory Council‐Manager form of government.  Policy‐making and  legislative authority are vested in the City Council consisting of one elected mayor and four  elected council members.  The City Council is responsible, among other things, for passing  ordinances, adopting the budget, appointing committees, and hiring the City Manager.  The  City Manager is responsible for carrying out the policies and ordinances of the City Council,  overseeing the day‐to‐day operations of the City, and appointing the heads of the various  departments.  The Council is elected on a non‐partisan basis.  Council members serve four‐year  staggered terms, with two council members elected every two years.  The Mayor is elected to  serve a four‐year term.  The City of St. Anthony provides a full range of services including administrative services;  police protection; fire suppression, prevention and medical responses; construction of capital  improvements; reconstruction and maintenance of city streets and other infrastructure;  distribution of water; sanitary sewer collection; storm water drainage; parks and recreational  activities; forestry maintenance; and environmental sustainability programs.    The St. Anthony Firefighters’ Relief Association is a separate legal entity, and accordingly is  excluded from this report.  The St. Anthony Housing and Redevelopment Authority (HRA), an  entity legally separate from the City, is governed by a board which includes the City Council.   Its sole purpose is to promote economic development within the City of St. Anthony.  The HRA  is a component unit of the City and its financial transactions have been included in these  financial statements as a blended component unit.  Additional information on both of these  legally separate entities can be found in Note 1(A) & 7(B) in the notes to the financial  statements.    The annual budget serves as the foundation for the City of St. Anthony’s financial planning and  control.  All departments of the City of St. Anthony submit requests for appropriations to the  City Manager in June of each year.  The City Manager uses these requests as the starting point  for developing the recommended budget.  The City Manager then presents the recommended  budget to the City Council for their review prior to the certification of the proposed levy to the  County Auditors by September 30th.  The City Council is required to hold public hearings on  the proposed budget and to adopt a final budget by December 31, the close of the City of St.  Anthony’s fiscal year.  4 Our mission is to be a progressive and welcoming Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com The appropriated budget is prepared for the General Fund by function (e.g., public safety), and  department (e.g., police), and object code (e.g., salaries). Transfers of appropriations between  departments require the approval of the City Council.  Budget‐to‐actual comparisons are  provided on Statement 9 as required supplementary information to the basic financial  statements for the governmental funds.  Factors Affecting Financial Condition  The information presented in the financial statements is perhaps best understood when it is  considered from the broader perspective of the specific environment within which the City of  St. Anthony operates.  Local economy:  The Minneapolis‐St. Paul metropolitan area has continued to experience a  relatively stable economy.  The market place for local products and services remains strong.  St.  Anthony is a fully developed City.  However, continued long‐term growth is anticipated as St.  Anthony experiences redevelopment activity in commercial and industrial areas, along with the  construction of additional multi‐family residential units.   Capital Asset planning:  The City maintains five capital funds for the replacement of  equipment and various infrastructure assets. Each fund is managed by a comprehensive 15 year  capital planning document. These documents include the City’s current buildings, park  improvements, operating equipment and fleet, along with future street, water, sanitary sewer  and stormwater improvements. These plans estimate the replacement dates and cost for current  and prospective equipment. Additionally the plans include projected future street, water,  sanitary sewer and stormwater reconstruction costs. The plans also identify the funding sources  for these capital expenditures. These sources include Capital and Building Improvement levies,  Enterprise funds operating income transfers, parkland dedication fees, stormwater charges,  water and sewer connection fees, grants and donations, State aids, cost sharing agreements,  bond proceeds and assessments.   The City combines the use of goal setting and a comprehensive budget process to identify and  prioritize City improvement projects.  The 15‐year capital plans are updated annually by staff  and are approved by the City Council.    Debt Levy:  In 2014, the City began a debt levy reduction program to stabilize the debt levy  growth, while continuing annual street reconstruction projects. The first phase of the debt levy  program has achieved it goal of a stabilized debt ley. The debt levy amount has remained at the  same amount for the years 2020‐2023.  5 Our mission is to be a progressive and welcoming Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com The City has entered second phase of its debt levy reduction program. During this phase future  street improvement will be performed every two out of three years. This modified pace of street  improvements will result in a reduction in the reliance on bond (debt) financing. Debt levy  reductions will be transition to Infrastructure levy support of construction projects. Then the  Infrastructure Levy will fund a great portion of construction costs versus Bond financing over  time.  Resulting in a significantly reduced amount of cumulative debt in the next 15 years. The  model also provides flexibility for unexpected levy demands in the future.  Cash management policies and practices:  The City’s initial investment objective is to preserve  capital.  Secondary considerations are liquidity and lastly yield.  Accordingly, deposits are  either insured by federal depository insurance or collateralized.  Temporary cash surpluses  during the year are invested in various securities defined by Minnesota Statutes.  The City’s  policy is to invest available monies at competitive interest rates in accordance with the City’s  over‐all fiscal plan and coordinate them with operating needs and programs projected over the  ensuing 12 months.   Risk Management:  The City uses a proactive approach to limit its liability risk and insurance  costs. To assist employees who are injured while on duty, Managed Care Program is used to  reduce medical expenses and other costs relating to workplace injuries.  The program assists  employees with a treatment plan which reduces lost workdays, replacement workers, etc.    In addition, a safety committee consisting of employees from every department meets monthly  throughout the year to discuss safety related items, review accident reports and provide  recommendations to reduce the City’s exposure to liability.     The City’s general liability insurance is with the League of Minnesota Cities Insurance Trust.  In  order to reduce the cost of insurance, a $10,000 per occurrence/$50,000 aggregate deductible is  maintained and funded through insurance dividends paid by the League of Minnesota Cities.  SHARED SERVICES  Grants:  Each year, the City actively participates in Federal, State and County administered  grants.  In 2022 the Police, Fire, Public Works and Administration received a variety of public  safety, operating, equipment and infrastructure construction grants.  A list of the grants  includes:  6 Our mission is to be a progressive and welcoming Village that is walkable, sustainable and safe 3301 Silver Lake Road, St. Anthony, MN 55418 612‐782‐3301 | www.savmn.com A.Federal Government  American Rescue Act Funds. B.Ramsey County Safe and Sober Grant. C.Minnesota Board of Firefighter Training & Education Grant. D.Hennepin County Recycling Grant. E. Minnesota Department of Natural Recourses Emerald Ashe Boer Grant. F.Gary Sinise Foundation Grant. G.Metropolitan Council Environmental Services I&I Grant. Partnerships and Colleagues:  The City partners with local businesses, civic organizations,  School District 282, Community Services and the Chamber of Commerce to provide a variety of  community safety and education programs. The City also has formed partnerships with  colleagues in other jurisdictions. These relationships include providing financial and human  resource services to the Middle Mississippi Water Management Organization, utility billing  services to the City of Birchwood Village and police services to the City of Lauderdale and  North Suburban Cable Commission as a financial services customer.   Acknowledgements:  Finally, we would like to express our gratitude to the Mayor and the City Council.  Their  unfailing support for maintaining the highest standard of professionalism in the management  of the City of St. Anthony’s finances results in a fiscally sustainable City government.  Respectfully submitted,  _________________________________ Charlie Yunker Shelly Rueckert  City Manager Finance Director   7 - This page intentionally left blank - 8 CITY OF ST. ANTHONY, MINNESOTA ORGANIZATION Term Expires Mayor: Randy Stille December 31, 2023 Council Members: Jan Jenson December 31, 2025 Thomas Randle December 31, 2023 Bernard Walker December 31, 2023 Wendy Webster December 31, 2025 City Manager: Charlie Yunker Appointed Finance Director: Shelly Rueckert Appointed December 31, 2022 9  Engineer ‐ WSB & Associates  Full‐Time Positions =  58Financial ‐ Ehlers & AssociatesPart‐Time Positions (average) = 49Legal ‐ Dorsey & WhitneyPublic Works Seasonal=10Planner ‐ Northwest Associated Constultants, Inc. Police Reserves (Unpaid) = 12Building Inspections ‐ MNSPECTPUBLIC WORKS14 Full time EmployeesFIRE10 Seasonal Employees             St. Anthony Organizational ChartLIQUOR OPERATIONSHuman Resources/Deputy City Clerk23 Full time Employees5 Full time Employees12 Reserve OfficersCommunications Coordinator1 Shared Employee2022ADMINISTRATION7 Full time Employees24 Part time EmployeesMAYOR AND COUNCIL MEMBERSPlanning CommissionAssistant to the City ManagerPOLICEConsultantsParks & Environmental CommissionCity Manager6 Full time Employees25 Part time EmployeesFINANCE 10 II. FINANCIAL SECTION 11 - This page intentionally left blank - 12 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of St. Anthony, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Anthony, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City of St. Anthony, Minnesota's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Anthony, Minnesota, as of December 31, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and the Community Center 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of St. Anthony, Minnesota 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. 13 Report on Summarized Comparative Information We have previously audited the City of St. Anthony, Minnesota’s 2021 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated June 17, 2022. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2021 is consistent, in all material respects, with the audited financial statements from which it has been derived. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of St. Anthony, Minnesota’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 generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 14 In performing an audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of St. Anthony, Minnesota's internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of St. Anthony, Minnesota'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. Change in Accounting Principle As described in Note 17 to the financial statements, the City of St. Anthony, Minnesota adopted new accounting guidance for the year ended December 31, 2022, Governmental Accounting Standards Board Statement No. 87, Leases. Our opinions are not modified with respect to this matter. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, and the schedules of OPEB and pension information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required 15 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 of St. Anthony, Minnesota's basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedules and supplementary financial information 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 nonmajor fund financial statements and schedules and supplementary financial information are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or 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. 16 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2023 on our consideration of the City of St. Anthony, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of St. Anthony, Minnesota’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Anthony, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 30, 2023 17 - This page intentionally left blank - 18 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of St. Anthony, 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. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the Introductory Section of this report. 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 $50,009,949 (net position).  The City’s total net position increased by $1,569,073 from the prior year’s stated net position.  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $18,722,245, an increase of $443,022 in comparison with the prior year stated fund balances.  At the end of the current fiscal year, unassigned fund balance for the General Fund was $3,840,170 or 49% of total General Fund Budget expenditures.  The City’s total bonded debt decreased by $785,000 during the current fiscal year. The key factors in this decrease were: 1) principal retirement of $3,170,000 and 2) the issuance of $2,385,000 of 2022A General Obligation Bonds. 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 supplementary information in addition to the basic financial statements themselves. 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 liabilities, with the difference between the two 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). 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 19 fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works, parks and recreation, services to other cities and HRA activities. The business-type activities of the City include the operation of water and sewer utilities and the municipal off-sale liquor stores. The government-wide financial statements include not only the City of St. Anthony itself (known as the primary government), but also a legally separate Housing and Redevelopment Authority (HRA) for which the City of St. Anthony is financially accountable. The HRA functions for all practical purposes as a department of the City of St. Anthony, and therefore has been included as an integral part of the primary government. The government-wide financial statements can be found on Statements 1 and 2 of this report. Fund financial statements. A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, 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 City’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 of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 27 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 balance for the General, Community Center, Street Improvement Debt Service, HRA TIF Improvements, Street Improvement Projects and Public Utilities Infrastructure, all of which are considered to be major funds. Data from the other 21 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining and sub- combining statements and schedules elsewhere in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on Statements 3 through 5 of this report. 20 Proprietary funds. The City maintains two different types of proprietary funds. 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 water and sewer, storm water, and municipal liquor operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City various functions. The City uses an internal service fund to account for its compensated absences, OPEB and pension benefits. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. 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 the water and sewer, storm water, and municipal liquor operations, which are considered to be major funds of the City. The basic proprietary fund financial statements can be found on Statements 6 through 8 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 can be found following Statement 8 of this report. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on budgetary comparisons, OPEB and pension information. Combining and individual fund statements and schedules can be found on Statements 18 through 25 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a City’s financial position. Assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $50,009,949 at the close of the most recent fiscal year. 21 City of St. Anthony, Minnesota’s Net Position Governmental Activities Business-Type Activities Totals 2022 2021 2022 2021 2022 2021 Current and other assets $26,047,257 $23,891,135 $5,725,835 $5,379,427 $31,773,092 $29,270,562 Capital assets 33,424,119 33,854,615 25,139,457 25,013,354 58,563,576 58,867,969 Total assets $59,471,376 $57,745,750 $30,865,292 $30,392,781 $90,336,668 $88,138,531 Total deferred outflows of resources $8,535,806 $4,479,130 $0 $0 $8,535,806 $4,479,130 Long term liabilities outstanding $42,011,324 $32,992,744 $480,976 $625,283 $42,492,300 $33,618,027 Other liabilities 3,704,030 3,319,733 412,879 464,799 4,116,909 3,784,532 Total liabilities $45,715,354 $36,312,477 $893,855 $1,090,082 $46,609,209 $37,402,559 Total deferred inflows of resources $2,253,316 $6,774,226 $0 $0 $2,253,316 $6,774,226 Net position: Invested in capital assets net of related debt $10,898,178 $10,068,970 $24,834,573 $24,563,962 $35,732,751 $34,632,932 Restricted 6,103,190 6,655,391 - - 6,103,190 6,655,391 Unrestricted 3,037,144 2,413,816 5,136,864 4,738,737 8,174,008 7,152,553 Total net position $20,038,512 $19,138,177 $29,971,437 $29,302,699 $50,009,949 $48,440,876 The City’s net position increased by $1,569,073 in 2022. The increase was primarily due to constructing and capitalizing assets during the current year which will be depreciated in future years. City of St. Anthony, Minnesota’s Changes in Net Position Governmental Activities Business-Type Activities Totals 2022 2021 2022 2021 2022 2021 Revenues: Program revenue: Charges for services $1,981,023 $3,041,161 $9,961,909 $10,098,794 $11,942,932 $13,139,955 Operating grants and contributions 610,856 741,397 - - 610,856 741,397 Capital grants and contributions 633,832 624,283 - - 633,832 624,283 General revenue: Property taxes 8,462,357 8,083,595 - - 8,462,357 8,083,595 Tax increment taxes 2,272,455 2,470,757 - - 2,272,455 2,470,757 Grants and contributions not restricted to specific programs 1,002,881 640,386 - - 1,002,881 640,386 Other (240,336) 96,705 (84,471) (5,291) (324,807) 91,414 Total revenues 14,723,068 15,698,284 9,877,438 10,093,503 24,600,506 25,791,787 Expenses: General government 1,380,846 1,349,129 - - 1,380,846 1,349,129 Public safety 5,853,162 4,840,277 - - 5,853,162 4,840,277 Public works 3,135,972 2,947,640 - - 3,135,972 2,947,640 Parks and recreation 546,537 646,257 - - 546,537 646,257 Housing and redevelopment 1,412,758 1,217,386 - - 1,412,758 1,217,386 Nondepartmental 45,609 - 45,609 Interest on long-term debt 697,886 695,343 - - 697,886 695,343 Liquor - - 6,601,179 6,765,260 6,601,179 6,765,260 Water - - 1,632,017 1,377,483 1,632,017 1,377,483 Sewer - - 1,305,957 1,240,813 1,305,957 1,240,813 Stormwater - - 419,510 337,796 419,510 337,796 Total expenses 13,072,770 11,696,032 9,958,663 9,721,352 23,031,433 21,417,384 Excess before transfers 1,650,298 4,002,252 (81,225) 372,151 1,569,073 4,374,403 Transfers (749,963) (1,137,269) 749,963 1,137,269 - - Increase (decrease) in net position 900,335 2,864,983 668,738 1,509,420 1,569,073 4,374,403 Net position - January 1 19,138,177 16,273,194 29,302,699 27,793,279 48,440,876 44,066,473 Net position - December 31 $20,038,512 $19,138,177 $29,971,437 $29,302,699 $50,009,949 $48,440,876 22 Governmental Activities. Governmental activities increased the City’s net position by $900,335 compared to prior year increase of $2,864,983. The key elements of this change are a decrease of $1,181,130 in Governmental program revenues, an increase in general revenues of $205,915 and an increase of $1,376,738 in governmental activities expenses. Charges for services 13% Operating grants and contributions 4% Capital grants and contributions 4% Property taxes 56% Other taxes 15% Grants and contributions not restricted to specific programs 7% Other -3% Revenues by Source - Governmental Activities 23 Business-type Activities. Business-type activities increased net position by $668,738. There was net $749,963 transfers to cash and a decrease in general revenues of $216,065. Financial Analysis of the City’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. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $18,722,245 an increase of $18,279,223 from the prior year. The ending fund balance is classified as follows: Nonspendable $169,337 Restricted 7,102,437 Committed 895,109 Assigned 6,715,192 Unassigned 3,840,170 Total $18,722,245 The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $3,840,170, while total fund balance reached $4,004,857. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 49% of total General Fund expenditures and total fund balance represents 51% of that same amount. During the current fiscal year, the fund balance in the General Fund increased by $128,071 due to a decrease in revenues over expenses of $40,362 and along with an increase in other financing uses of $310,363. The Community Center Fund increased by $5,954 due to other net financing sources $65,000 exceeding revenues under expenditures of $59,046. The Street Improvement Debt Service Fund decreased by $495,548 mainly due to $447,048 in closing transfers from bond funds to the Infrastructure fund along with using cash on hand to lower new debt issues and existing debt levied. 24 The HRA TIF Improvement Fund increased by $235,951, substantially due to a decrease in revenues over expenses of $439,877 and an increase in transfers of $17,725. The Street Improvement Project Funds increased by $282,885 due to other financing sources of $2,240,342 exceeding revenues under expenditures of $1,957,457. The Public Utilities Infrastructure Fund decreased by $717,979 substantially due to investment losses of $20,716 and capital outlay of $699,070. Non-major Special Revenue Funds increased by $582,868 resulting in an ending balance of $582,868 substantially due revenue over expenditures of $70,877 and plus net transfers in of $511,991. Non-major Debt Service Funds had a total fund balance of $856,994, all of which is restricted for the payment of debt service. The net decrease in fund balance during the current year in the non- major debt service funds was $175,757, substantially due to the planned use of fund balance to support the debt service associated with the Public Facilities Revenue Bonds. Non-major Capital Project Funds had a total fund balance of $2,378,389, an increase of $596,577 from prior year, substantially due to expenses over revenues of $625,650 and net transfers in of $1,125,721. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Total net position in the Liquor Operations, Water and Sewer Funds, and Stormwater Utility Fund at the end of the year combined was $30,142,877. The total net position for each fund was: Liquor – $2,785,237; Water and Sewer – $18,033,349; Stormwater Utility - $9,324,291. 25 General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows:  General property taxes were $172,564 greater than budget due to a higher percentage of current tax levy collections were received than was budgeted.  Licenses and permits were $230,952 greater than budget primarily due to higher level of construction related permit activity.  Intergovernmental revenues were $394,978 greater than budget primarily due to the use of ARPA funds.  Public safety expenditures were $85,639 greater than budget primarily due to higher level of building permit activity and its related increase in inspections activity  Transfers out were $663,456 greater than budget due to excess fund balance transfers made in accordance with the fund balance policy. 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 $58.563.576 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads and infrastructure. The City’s investment in capital assets (net) increased 2.5%. Major capital asset events during the current fiscal year included the following:  The 2022 Street and Utility Improvement project construction began and significant progress was made. The remaining construction activities will be completed in 2023.  The City’s Water Tower was refurbished and painted in 2022. This project was completed in 2022. 26 City of St. Anthony, Minnesota’s Capital Assets Governmental Activities Business-Type Activities Totals 2022 2021 2022 2021 2022 2021 Land $1,062,882 $1,662,883 $2,089,954 $2,089,954 $3,152,836 $3,752,837 Permanent easements 131,678 73,984 - - 131,678 - Land improvements 584,800 587,187 1,062,122 1,038,687 1,646,922 1,625,874 Buildings and structures 10,571,734 10,321,564 8,985,359 8,482,703 19,557,093 18,804,267 Furniture and fixtures 4,928,320 4,731,993 5,459,355 5,396,420 10,387,675 10,128,413 Software intangibles 56,823 56,823 62,894 62,894 119,717 119,717 Infrastructure/streets 43,420,366 43,240,017 18,539,550 18,006,505 61,959,916 61,246,522 Storm sewers 428,469 428,469 - - 428,469 428,469 Storm water - - 2,253,147 2,253,147 2,253,147 2,253,147 Less accumulated depreciation (33,481,813) (30,373,380) (13,370,621) (12,328,253) (46,852,434) (42,701,633) Construction in progress 4,732,427 3,125,075 - 11,297 4,732,427 3,136,372 Total $32,435,686 $33,854,615 $25,081,760 $25,013,354 $57,517,446 $58,793,985 Additional information on the City’s capital assets can be found in Note 5. Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $27,000,000. Of this amount, $21,050,000 comprises debt backed by special assessments and the full faith and credit of the City, $4,870,000 is backed by tax increments, $780,000 is backed by lease revenue sources, and $300,000 is backed by revenues sources from the City’s water/sewer funds. In addition, the City’s debt represents the liability for compensated absences $736,421, net pension liability of $12,862,860, and OPEB liability of $1,007,566. City of St. Anthony, Minnesota’s Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-Type Activities Totals 2022 2021 2022 2021 2022 2021 General obligation bonds $21,050,000 $20,990,000 $ - $ - $21,050,000 $20,990,000 G.O. revenue bonds 780,000 1,150,000 300,000 440,000 1,080,000 1,590,000 G.O. tax increment bonds 4,870,000 5,345,000 - - 4,870,000 5,345,000 Issuance premiums (discounts)828,269 929,779 4,884 9,392 833,153 939,171 - - Total $27,528,269 $28,414,779 $304,884 $449,392 27,833,153 $28,864,171 The City’s total bonded debt decreased by $785,000 during the current fiscal year. The key factors in this decrease were: 1) principal retirement of $3,170,000 and 2) the issuance of $2,385,000 of 2022A General Obligation Bonds. The City maintains an “AA” rating from Standard and Poor’s for general obligation debt. State statutes limit the amount of general obligation debt the City may issue to 3% of its total market value. The current debt limitation for the City is $38,649,915, which is in excess of the City’s applicable debt. Additional information on the City’s long-term debt can be found in Note 6. 27 Bond Rating comments on Economic Factors, Financial management and Budgets Healthy economic metrics, including incomes and wealth levels, in a Twins Cities suburb, supported by consistent valuation growth. Solid financial position with very strong available reserves, resulting from positive operational performance. Good financial policies and practices under our Financial Management Assessment (FMA) methodology, and strong institutional framework. Weak debt and liabilities profile with elevated debt costs, but a manageable pension and OPEB burden and rapid amortization of debt. Strong operational performance lending to consistent growth in available reserves. These factors were considered in preparing the City’s budget for the 2022 fiscal year and beyond. Requests for Information This financial report is designed to provide a general overview of the City of St. Anthony, Minnesota’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, City of St. Anthony, Minnesota, 3301 Silver Lake Road, St. Anthony, Minnesota, 55418. 28 BASIC FINANCIAL STATEMENTS 29 - This page intentionally left blank - 30 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2022 With Comparative Totals For December 31, 2021 Governmental Business-Type Activities Activities 2022 2021 Assets: Cash and investments $21,587,910 $4,014,769 $25,602,679 $24,450,614 Accrued interest 49,357 - 49,357 19,340 Due from other governmental units 124,741 - 124,741 74,291 Accounts receivable - net 82,488 793,515 876,003 839,916 Internal balances 171,440 (171,440) - - Property taxes receivable 133,160 - 133,160 137,112 Prepaid items 145,159 35,611 180,770 197,332 Inventories - at cost 24,178 1,053,380 1,077,558 1,022,751 Loans receivable 2,205 - 2,205 5,786 Special assessments receivable 1,673,181 - 1,673,181 1,566,643 Lease receivable 1,277,549 - 1,277,549 1,395,905 Land held for resale 378,008 - 378,008 370,356 Capital assets - net: Nondepreciable 5,869,292 2,147,649 8,016,941 6,963,193 Depreciable 27,554,827 22,991,808 50,546,635 51,904,776 Net pension asset 397,881 - 397,881 586,421 Total assets 59,471,376 30,865,292 90,336,668 89,534,436 Deferred outflows of resources: Related to other post employment benefits 541,286 - 541,286 109,026 Related to pensions 7,994,520 - 7,994,520 4,370,104 Total deferred outflows of resources 8,535,806 0 8,535,806 4,479,130 Liabilities: Accounts payable 2,256,157 224,217 2,480,374 1,420,862 Due to other governmental units 56,583 78,785 135,368 104,388 Salaries payable 164,487 59,172 223,659 198,332 Contracts payable 118,341 - 118,341 997,559 Deposits payable 134,525 49,330 183,855 222,008 Accrued interest payable 320,433 1,375 321,808 323,903 Unearned revenue 653,504 - 653,504 517,480 Other post employment benefits: Due within one year 50,378 - 50,378 30,213 Due in more than one year 957,188 - 957,188 662,033 Long-term liabilities: Due within one year 3,402,168 203,111 3,605,279 3,582,990 Due in more than one year 24,738,730 277,865 25,016,595 26,092,887 Net pension liability: Due in more than one year 12,862,860 - 12,862,860 3,249,904 Total liabilities 45,715,354 893,855 46,609,209 37,402,559 Deferred inflows of resources: Related to leases 1,277,549 - 1,277,549 1,395,905 Related to other post employment benefits 459,129 - 459,129 304,301 Related to pensions 516,638 - 516,638 6,469,925 Total deferred inflows of resources 2,253,316 - 2,253,316 8,170,131 Net position: Net investments in capital assets 10,898,178 24,834,573 35,732,751 34,632,932 Restricted for: Debt service 5,612,586 - 5,612,586 6,255,605 Pensions 421,414 - 421,414 360,702 Public safety 69,190 - 69,190 39,084 Unrestricted 3,037,144 5,136,864 8,174,008 7,152,553 Total net position $20,038,512 $29,971,437 $50,009,949 $48,440,876 Total Primary Government The accompanying notes are an integral part of these financial statements. 31 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $1,380,846 $624,833 Public safety 5,853,162 920,841 Public works 3,135,972 211,849 Parks and recreation 546,537 223,399 Nondepartmental 45,609 - Housing and redevelopment 1,412,758 101 Interest on long-term debt 697,886 - Total governmental activities 13,072,770 1,981,023 Business-type activities: Liquor 6,601,179 7,041,690 Water/water plant 1,698,217 1,362,580 Sewer 1,239,757 1,337,971 Stormwater 419,510 219,668 Total business-type activities 9,958,663 9,961,909 Total primary government $23,031,433 $11,942,932 The accompanying notes are an integral part of these financial statements. 32 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2022 2021 $11,595 $ - ($744,418) $ -($744,418)($83,366) 443,342 35,237 (4,453,742)-(4,453,742) (3,619,613) 149,757 598,595 (2,175,771)-(2,175,771) (1,521,559) 6,162 -(316,976)-(316,976)(152,154) - - (45,609)- (45,609) - - -(1,412,657)-(1,412,657) (1,217,156) - - (697,886)-(697,886)(695,343) 610,856 633,832 (9,847,059)0 (9,847,059) (7,289,191) - - - 440,511 440,511 495,330 - - - (335,637)(335,637)(65,872) - - - 98,214 98,214 73,472 - - - (199,842)(199,842)(125,488) 0 0 0 3,246 3,246 377,442 $610,856 $633,832 (9,847,059)3,246 (9,843,813) (6,911,749) General revenues: General property taxes 8,462,357 -8,462,357 8,083,595 Tax increment taxes 2,272,455 -2,272,455 2,470,757 Grants and contributions not restricted to specific programs 1,002,881 -1,002,881 640,386 Unrestricted investment earnings (295,627)(85,871)(381,498)35,509 Gain on disposal of capital assets - 1,400 1,400 6,620 Other 55,291 - 55,291 49,285 Transfers (749,963)749,963 - - Total general revenues and transfers 10,747,394 665,492 11,412,886 11,286,152 Change in net position 900,335 668,738 1,569,073 4,374,403 Net position - January 1 19,138,177 29,302,699 48,440,876 44,066,473 Net position - December 31 $20,038,512 $29,971,437 $50,009,949 $48,440,876 Program Revenues Total Primary Government Changes in Net Position Net (Expense) Revenue and The accompanying notes are an integral part of these financial statements. 33 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 General Fund Community Center Fund Street Improvement Debt Service Fund Assets Cash and investments $4,706,343 $162,071 $3,534,742 Accrued interest 49,357 - - Due from other governmental units 69,275 - - Accounts receivable - net 38,659 8,331 - Interfund loan receivable - - - Property taxes receivable: - Delinquent 49,803 - 18,112 Due from county 31,129 - 8,622 Prepaid items 140,509 2,679 - Inventories - at cost 24,178 - - Loans receivable - - - Special assessments receivable 6,555 - 1,606,663 Lease receivable 474,697 802,852 - Land held for resale - - - Total assets $5,590,505 $975,933 $5,168,139 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $120,212 $13,365 $8,411 Due to other governmental units 51,787 - 1,003 Salaries payable 158,799 1,657 - Contracts payable - - - Deposits payable 56,086 - 7,681 Unearned revenue 653,504 - Interfund loan payable - - - Total liabilities 1,040,388 15,022 17,095 Deferred inflows of resources: Related to leases 474,697 802,852 - Unavailable revenue 70,563 - 1,624,775 Total deferred inflows of resources 545,260 802,852 1,624,775 Fund balance (deficit): Nonspendable 164,687 2,679 - Restricted - - 3,526,269 Committed - 155,380 - Assigned - - - Unassigned 3,840,170 - - Total fund balance (deficit)4,004,857 158,059 3,526,269 Total liabilities, deferred inflows of resources, and fund balance (deficit)$5,590,505 $975,933 $5,168,139 The accompanying notes are an integral part of these financial statements. 34 Statement 3 HRA TIF Improvements Street Improvement Project Fund Public Utilities Infrastructure Other Governmental Funds Intra-Activity Eliminations 2022 2021 $5,067,037 $587,960 $2,400,865 $4,809,318 $ - $21,268,336 $20,456,481 - - - - - 49,357 19,340 - 55,466 - - - 124,741 74,291 - - - 35,498 - 82,488 96,164 - - 1,157,180 - (1,157,180) - - 8,060 - - 11,611 - 87,586 65,184 1,265 - - 4,558 - 45,574 71,928 552 - - 1,419 - 145,159 168,984 - - - - - 24,178 13,549 - - - 2,205 - 2,205 5,786 - 56,789 - 3,174 - 1,673,181 1,566,643 - - - - 1,277,549 1,395,905 378,008 - - - - 378,008 370,356 $5,454,922 $700,215 $3,558,045 $4,867,783 ($1,157,180)$25,158,362 $22,908,706 $2,046,127 $572 $58,521 $8,949 $ - $2,256,157 $1,151,001 2,826 - - 967 - 56,583 18,397 - - - 4,031 - 164,487 144,162 - 118,341 - - - 118,341 997,559 70,758 - - - - 134,525 169,773 - - - - - 653,504 517,480 959,326 - - 197,854 (1,157,180) - - 3,079,037 118,913 58,521 211,801 (1,157,180)3,383,597 2,998,372 - - - - - 1,277,549 1,395,905 8,060 56,789 - 14,784 - 1,774,971 1,631,111 8,060 56,789 - 14,784 - 3,052,520 3,027,016 552 - - 1,419 - 169,337 182,533 2,367,273 282,711 - 926,184 - 7,102,437 7,396,858 - - - 739,729 - 895,109 337,173 - 241,802 3,499,524 2,973,866 - 6,715,192 6,632,453 - - - - - 3,840,170 3,730,206 2,367,825 524,513 3,499,524 4,641,198 0 18,722,245 18,279,223 $5,454,922 $700,215 $3,558,045 $4,867,783 ($1,157,180)$25,158,362 $22,908,706 Fund balance reported above $18,722,245 $18,279,223 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds.33,424,119 33,854,615 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable in the funds.1,774,971 1,631,111 Net pension asset related to the Saint Anthony Fire Department pension plan.397,881 586,421 Deferred outflows of resources related to the Saint Anthony Fire Department pension plan.167,297 12,295 Deferred inflows of resources related to the Saint Anthony Fire Department pension plan.(143,764)(238,014) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.(27,848,702)(28,736,140) Internal service funds are used by management to charge the cost of employee vacation, severance, pension benefits, and other post employment benefits to individual funds. The assets and liabilities are included in the governmental activities on the statement of net position.(6,455,535)(6,251,334) Net position of governmental activities $20,038,512 $19,138,177 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 35 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 General Fund Community Center Fund Street Improvement Debt Service Fund Revenues: General property taxes $5,303,007 $ - $1,967,927 Tax increment collections - - - Licenses, fees and permits 530,924 - - Intergovernmental 1,441,506 - - Special assessments 5,935 - 301,212 Charges for services 1,083,919 127,300 - Cable franchise fees 96,099 - - Fines and forfeits 74,027 - - Investment income (loss)(92,847)(2,852)(52,739) Contributions and donations 6,162 - - Refunds and reimbursements 9,652 - - Miscellaneous 42,264 - - Total revenues 8,500,648 124,448 2,216,400 Expenditures: Current: General government 1,199,026 - - Public safety 5,299,570 - - Public works 918,512 - 3,263 Parks and recreation 319,630 183,494 - Nondepartmental 45,609 - - Housing and redevelopment - - - Capital outlay - - - Debt service: - Principal - - 2,075,000 Interest - - 519,068 Other costs - - 5,615 Construction/acquisition costs - - - Developer incentives - - - Total expenditures 7,782,347 183,494 2,602,946 Revenues over (under) expenditures 718,301 (59,046)(386,546) Other financing sources (uses): Bonds issued - - 49,849 Refunding bonds issued - - - Payment to refunding bond escrow agent - - - Premium on bonds issued - - - Sale of capital assets - - - Transfers in 290,000 170,474 375,066 Transfers out (880,230)(105,474)(533,917) Total other financing sources (uses)(590,230)65,000 (109,002) Net change in fund balance 128,071 5,954 (495,548) Fund balance - January 1 3,876,786 152,105 4,021,817 Fund balance - December 31 $4,004,857 $158,059 $3,526,269 The accompanying notes are an integral part of these financial statements. 36 Statement 4 HRA TIF Improvements Street Improvement Project Fund Public Utilities Infrastructure Other Governmental Funds Intra-Activity Eliminations 2022 2021 $ - $ - $ - $1,167,527 $ - $8,438,461 $8,089,661 2,273,952 - - - - 2,273,952 2,474,570 - - - - - 530,924 1,116,447 - 30,466 - - - 1,471,972 1,066,555 - 151,880 - 1,846 - 460,873 520,805 - - 10,200 - - 1,221,419 1,679,720 - - - - - 96,099 103,768 - - - 44,531 - 118,558 120,694 (31,356)(10,410)(20,716)(77,329) - (288,249)48,456 - - - 12 - 6,174 263,635 2,320 - - 2,051 - 14,023 20,532 - 13,027 - - - 55,291 49,285 2,244,916 184,963 (10,516)1,138,638 0 14,399,497 15,554,128 27,916 - - - - 1,226,942 1,188,512 - - - 12,712 - 5,312,282 5,437,381 - - - 50,123 - 971,898 878,009 - - - 13,336 - 516,460 635,920 - - - - - 45,609 33,949 201,842 - - 156,938 - 358,780 250,492 - - 699,070 970,860 - 1,669,930 778,766 - - - 1,095,000 - 3,170,000 3,155,000 93,150 - - 203,199 - 815,417 858,152 - 78,957 - 2,863 - 87,435 92,835 409 2,063,463 73 - - 2,063,945 2,943,077 1,046,435 - - - - 1,046,435 975,485 1,369,752 2,142,420 699,143 2,505,031 0 17,285,133 17,227,578 875,164 (1,957,457)(709,659)(1,366,393)0 (2,885,636)(1,673,450) - 2,335,151 - - - 2,385,000 2,085,000 - - - - - - 885,000 - - - - - - (885,000) - 15,093 - - - 15,093 137,040 - - - 608,497 - 608,497 19,091 - 170,223 - 1,871,305 (2,440,165)436,903 250,000 (639,213)(280,125)(8,320)(109,721)2,440,165 (116,835)(86,300) (639,213)2,240,342 (8,320)2,370,081 0 3,328,658 2,404,831 235,951 282,885 (717,979)1,003,688 0 443,022 731,381 2,131,874 241,628 4,217,503 3,637,510 - 18,279,223 17,547,842 $2,367,825 $524,513 $3,499,524 $4,641,198 $0 $18,722,245 $18,279,223 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 37 CITY OF ST. ANTHONY, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS For The Year Ended December 31, 2022 With Comparative Amounts For The Year Ended December 31, 2021 2022 2021 Amounts reported for governmental activities in the statement of activities (Statement 2) are different because: Net changes in fund balances - total governmental funds (Statement 4) $443,022 $731,381 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capitalized capital outlays exceeded depreciation in the current period. 1,356,696 1,379,459 Transfer out of governmental capital assets contributed to Enterprise Funds. (1,156,331) (1,387,269) The statement of activities reports losses arising from the trade-in or disposal of existing capital assets to acquire new capital assets. Conversely, governmental funds do not report any gain or loss on a trade-in of capital assets. (630,861) (23,242) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 143,860 44,879 The issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items.887,438 1,095,769 Internal Service Funds are used by management to charge the cost of severance pension, and other post employment expenses to individual funds. This amount is the net income attributable to governmental activities. (204,201) 910,328 Governmental funds report pension contributions as expenditures, however, pension expense is reported in the statement of activities. This is the amount by which pension expense differed from pension contributions for the St. Anthony Fire Department pension plan (Note 8). 60,712 113,678 Change in net position of governmental activities (Statement 2) $900,335 $2,864,983 The accompanying notes are an integral part of these financial statements. 38 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund Assets:2022 2021 Current assets: Cash and cash equivalents $1,379,926 $2,411,101 $223,742 $4,014,769 $3,688,437 $319,574 Accounts receivable - net 7,177 780,713 5,625 793,515 743,752 - Prepaid items 19,455 16,156 - 35,611 28,348 - Inventories - at cost 913,535 139,845 - 1,053,380 1,009,202 - Total current assets 2,320,093 3,347,815 229,367 5,897,275 5,469,739 319,574 Noncurrent assets: Capital assets: Land - 5,653 2,084,301 2,089,954 2,089,954 - Permanent easements 57,695 57,695 - - Land improvements - - 1,062,122 1,062,122 1,038,687 - Buildings and structures 1,888,593 7,096,767 - 8,985,360 8,482,703 - Furniture, fixtures and equipment 476,643 4,757,494 225,218 5,459,355 5,396,420 - Distribution and collection system - 12,981,818 7,810,879 20,792,697 20,259,652 - Software intangibles 62,894 - - 62,894 62,894 - Construction in process - - - - 11,297 - Total capital assets 2,428,130 24,841,732 11,240,215 38,510,077 37,341,607 0 Less: Allowance for depreciation (1,608,733) (9,627,550) (2,134,337) (13,370,620) (12,328,253) - Net capital assets 819,397 15,214,182 9,105,878 25,139,457 25,013,354 0 Total assets 3,139,490 18,561,997 9,335,245 31,036,732 30,483,093 319,574 Deferred outflows of resources: Related to OPEB - - - - - 541,286 Related to pensions - - - - - 7,827,222 Total deferred outflows of resources - - - - - 8,368,508 Liabilities: Current liabilities: Accounts payable 177,160 36,103 10,954 224,217 269,861 - Due to other governmental units 74,927 3,858 - 78,785 85,991 - Salaries payable 29,788 29,384 - 59,172 54,170 - Accrued interest payable - 1,375 - 1,375 2,542 - Refundable deposits - 49,330 - 49,330 52,235 - Compensated absences payable - current 23,885 34,226 - 58,111 59,155 202,168 Bonds and notes payable - current - 145,000 - 145,000 140,000 - Other post employment benefits liability - current - - - - - 49,768 Total current liabilities 305,760 299,276 10,954 615,990 663,954 251,936 Noncurrent liabilities: Compensated absences payable - noncurrent 48,493 69,488 - 117,981 116,736 410,461 Bonds and notes payable - noncurrent - 159,884 - 159,884 309,392 - Other post employment benefits liability - noncurrent - - - - - 957,798 Net pension liability - - - - - 12,862,860 Total noncurrent liabilities 48,493 229,372 0 277,865 426,128 14,231,119 Total liabilities 354,253 528,648 10,954 893,855 1,090,082 14,483,055 Deferred inflows of resources: Related to OPEB - - - - - 459,129 Related to pensions - - - - - 372,874 Total deferred inflows of resources - - - - - 832,003 Net position: Net investments in capital assets 819,397 14,909,298 9,105,878 24,834,573 24,563,962 - Unrestricted 1,965,840 3,124,051 218,413 5,308,304 4,829,049 (6,626,976) Total net position $2,785,237 $18,033,349 $9,324,291 $30,142,877 $29,393,011 ($6,626,976) Net position reported above $30,142,877 $29,393,011 Adjustment to report the cumulative internal balance for the net effect of activity between the internal service fund and the enterprise funds over time. 81,128 (90,312) Net position of business-type activities (Statement 1) $30,224,005 $29,302,699 Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 39 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund 2022 2021 Sales $7,040,797 $ - $ - $7,040,797 $7,259,565 $ - Cost of sales (5,212,277) - - (5,212,277) (5,431,563) - Gross profit 1,828,520 0 0 1,828,520 1,828,002 0 Operating revenues: Customer billings - 2,678,069 218,168 2,896,237 2,826,843 - Charges for services - - - - - 718,239 Total operating revenues 0 2,678,069 218,168 2,896,237 2,826,843 718,239 Total gross profit and operating revenues 1,828,520 2,678,069 218,168 4,724,757 4,654,845 718,239 Operating expenses: Personal services 830,985 950,052 - 1,781,037 1,727,629 1,201,781 Supplies 370,593 144,265 23 514,881 460,954 - Contracted services 60,402 210,714 102,096 373,212 271,710 - Treatment charges (MCES) - 711,020 - 711,020 719,437 - Other 9,695 229,621 1,125 240,441 224,569 - Total operating expenses, excluding depreciation 1,271,675 2,245,672 103,244 3,620,591 3,404,299 1,201,781 Depreciation 80,142 650,240 311,985 1,042,367 974,872 - Total operating expenses 1,351,817 2,895,912 415,229 4,662,958 4,379,171 1,201,781 Operating income (loss) 476,703 (217,843) (197,061) 61,799 275,674 (483,542) Nonoperating revenues (expenses): Investment income (27,751) (51,770) (6,350) (85,871) (11,911) (7,377) Intergovernmental revenue - - - - - 119,289 Interest expense - (2,300) - (2,300) (4,064) - Gain on disposal of asset - - 1,400 1,400 6,620 - Miscellaneous 893 22,482 1,500 24,875 12,387 - Total nonoperating revenues (expenses) (26,858) (31,588) (3,450) (61,896) 3,032 111,912 Income (loss) before contributions and transfers 449,845 (249,431) (200,511) (97) 278,706 (371,630) Contributions and transfers: Capital contributions - 845,081 311,250 1,156,331 1,387,269 - Transfers in - - 30,535 30,535 - 86,300 Transfers out (275,000) - (161,903) (436,903) (250,000) - Total contributions and transfers (275,000) 845,081 179,882 749,963 1,137,269 86,300 Change in net position 174,845 595,650 (20,629) 749,866 1,415,975 (285,330) Net position - January 1 2,610,392 17,437,699 9,344,920 29,393,011 27,977,036 (6,341,646) Net position - December 31 $2,785,237 $18,033,349 $9,324,291 $30,142,877 $29,393,011 ($6,626,976) Change in net position reported for business-type activities above $749,866 $1,415,975 Transfer in of capital assets from governmental activities 1,156,331 1,387,269 Transfers in reported as contribution revenue reported above (1,156,331) (1,387,269) Adjustment for the net effect of the current year activity between the internal service fund and the enterprise funds. (81,128) 93,445 Change in net position of business-type activities (Statement 2) $668,738 $1,509,420 Business-Type Activities Enterprise Funds Totals The accompanying notes are an integral part of these financial statements. 40 CITY OF ST. ANTHONY, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund 2022 2021 Cash flows from operating activities: Receipts from customers and users $7,037,715 $2,634,108 $212,543 $9,884,366 $10,033,107 $ - Receipts from interfund charges for pension benefits - - - - - 718,239 Payment to suppliers (5,766,121) (1,284,280) (105,720) (7,156,121) (6,935,388) - Payment to employees (829,017) (946,817) - (1,775,834) (1,753,971) (783,284) Miscellaneous revenue 893 22,482 1,500 24,875 19,653 - Net cash flows provided by (used in) operating activities 443,470 425,493 108,323 977,286 1,363,401 (65,045) Cash flows from noncapital financing activities: Transfer from General Fund - - 30,535 30,535 - 86,300 Transfer to General Fund (275,000) - - (275,000) (250,000) - Net cash flows provided by (used in) noncapital financing activities (275,000)0 30,535 (244,465) (250,000) 86,300 Cash flows from capital and related financing activities: Acquisition of capital assets - - (12,139) (12,139) (279,167) - Proceeds from disposal of capital assets - - 1,400 1,400 - - Transfer to project Fund - - (161,903) (161,903) - - Principal paid on debt - (140,000) - (140,000) (135,000) - Interest paid on debt - (7,975) - (7,975) (15,867) - Net cash flows provided by (used in) capital and related financing activities 0 (147,975) (172,642) (320,617) (430,034)0 Cash flows from investing activities: Investment income (27,752) (51,770) (6,350) (85,872) (11,912) (7,377) Net increase (decrease) in cash and cash equivalents 140,718 225,748 (40,134) 326,332 671,455 13,878 Cash and cash equivalents - January 1 1,239,208 2,185,353 263,876 3,688,437 3,016,982 305,696 Cash and cash equivalents - December 31 $1,379,926 $2,411,101 $223,742 $4,014,769 $3,688,437 $319,574 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $476,703 ($217,843) ($197,061) $61,799 $275,674 ($483,542) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue 893 22,482 1,500 24,875 12,387 - Depreciation 80,142 650,240 311,985 1,042,367 974,872 - Changes in assets and liabilities: Decrease (increase) in receivables (3,082) (41,056) (5,625) (49,763) (42,815) - Decrease (increase) in prepaid items (6,552) (711) - (7,263) 8,615 - Decrease (increase) in inventory (44,956) 778 - (44,178) 110,788 - Decrease (increase) in deferred outflows of resources - - - - - (3,901,673) Increase (decrease) in payables (59,678) 11,603 (2,476) (50,551) 23,880 (23,186) Increase (decrease) in OPEB liability - - - - - 315,320 Increase (decrease) in net pension liability - - - - - 9,732,245 Increase (decrease) in deferred inflows of resources - - - - - (5,704,209) Total adjustments (33,233) 643,336 305,384 915,487 1,087,727 418,497 Net cash provided by (used in) operating activities $443,470 $425,493 $108,323 $977,286 $1,363,401 ($65,045) Noncash investing, capital and financing activities: Assets in the amount of $845,081 and $1,002,344 were contributed to the Water/Sewer/Water Plant Fund in 2022 and 2021, respectively. Assets in the amount of $311,250 and $384,925 were contributed to the Stormwater Utility Fund in 2022 and 2021, respectively. Totals Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. 41 - This page intentionally left blank - 42 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Anthony, Minnesota (the City) operates pursuant to applicable Minnesota laws and statutes under the council-manager plan (Statutory Plan B) as defined by State statutes. The government of the City is directed by a Council composed of an elected mayor and four other elected members. The Council exercises legislative authority and determines matters of policy. The Council appoints the City Manager who is responsible for the administration of all affairs relating to the City. The financial statements of the City have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City (the primary government) and its component units. The component unit discussed below is included in the City's reporting entity because of the significance of their operational or financial relationships with the City. COMPONENT UNITS In conformity with generally accepted accounting principles, the financial statements of the component unit have been included in the financial reporting entity as a blended component unit. The Housing and Redevelopment Authority (HRA) is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's operations because the members of the City Council serve as HRA board members and its activity is confined to the City. The City established the HRA under state statutes to assist and support housing and redevelopment projects undertaken within the City which are under the statutory authority of the HRA. The City reviews and approves tax levies and other financial matters related to the HRA. The City provides major financing of HRA activities and debt issued in connection with HRA projects are general obligations of the City. The activity of the HRA is reported in the HRA TIF Debt Service Fund, the HRA TIF Improvement Fund and the HRA Special Revenue Fund. Separate financial statements are not prepared for the HRA. 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 primary government and its component units. 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 business-type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. 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 business-type activity; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Separate financial statements are provided for governmental funds 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 all revenues, except property taxes and reimbursement grants, to be available if they are collected within 90 days of the end of the current fiscal period. Property taxes are considered available if they are collected within 60 days of the end of the current year. Reimbursement grants are considered available if they are collected within one year 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, special assessments, intergovernmental revenues, charges for services 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. The City reports the following major governmental funds: The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Community Center Fund is used to account for the operation and maintenance of City Hall and Community Services. The Street Improvement Debt Service Fund was established to account for debt associated with a systematic plan to reconstruct substandard residential streets and alleys. Annual debt service payments are funded through special assessments and tax levies. The HRA TIF Improvement Fund was established to account for the construction and redevelopment costs within the City. The Street Improvement Project Fund was established to account for the construction costs associated with a systematic plan to reconstruct substandard residential streets and alleys. The Public Utilities Infrastructure Fund was established to account for costs associated with the City’s utilities infrastructure. 44 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The City reports the following major proprietary funds: The Liquor Fund is an enterprise fund that is used to account for operations of the City’s off-sale liquor operation. The Water/Sewer/Water Plant Fund accounts for the water and sewer service charges which are used to finance the water and sewer system operating expenses, and the operation and maintenance of the City’s water purification plant. The Stormwater Utility Fund accounts for stormwater service charges which are used to finance the construction and operation of the stormwater and flood protection projects. Additionally, the City reports the following fund type: Internal Service Fund - the Employee Benefit Fund accounts for the liability the City has for employee vacation and severance payments, and is also used to provide pension benefits and other post employment benefits to other departments of the City on a cost reimbursement basis. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds 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 liquor, water and sewer enterprise funds 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. BUDGETS Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General and all Special Revenue Funds. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. 45 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1) The City Manager submits to the City Council a proposed operating budget for the upcoming year in August. The operating budget includes proposed revenues and expenditures and the operating levy associated with operations. 2) The City Council and staff meet to review the proposed budget and Council recommends any appropriate changes. 3) Public hearings are conducted in April and December to obtain taxpayer comments and recommendations to the operating budget. 4) The budget and tax levy is legally enacted through the passage of a resolution on a department basis for the General Fund and on a fund basis for Special Revenue and Enterprise Funds that can be expended by each department based upon detailed budget estimates. 5) The City Manager and Finance Director are authorized to transfer appropriations within any department budget. Interdepartmental or interfund appropriations and deletions are authorized by the City Council with fund contingency reserves or additional revenues. 6) Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue, Capital Equipment and Enterprise Funds. The General Fund, Special Revenue Funds and Enterprise Funds all have Council adopted annual budgets. 7) Legal debt obligation indentures determine the appropriation level of debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 8) A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 9) The legal level of budgetary control is at the department level for the General Fund and the fund level for the Special Revenue Funds. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services; materials and supplies; contractual services; and capital outlay) within each program. All amounts over budget have been approved by the City Council through the disbursement process. 10) The City Council may authorize transfer of budgeted amounts between City funds. The City Council made supplemental budgetary appropriations throughout the year. Individual amendments were not material in relation to the original appropriations which were adjusted. 46 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The following is a listing of the General Fund departments and Special Revenue Funds whose expenditures exceed budget appropriations: Final Over Budget Actual Budget Major Fund: General Fund Finance $327,049 $355,806 $28,757 Other public safety - 1,311 1,311 Police protection 3,751,445 3,755,399 3,954 Protective inspections 123,248 239,882 116,634 DARE program - 47 47 Equipment maintenance 207,798 213,888 6,090 Park maintenance 250,760 267,454 16,694 Nonmajor Funds: Special Revenue Funds: Community center 164,882 183,494 18,612 Police forfeiture 8,850 12,712 3,862 The over expenditures were funded by available fund balance. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund balances are eliminated on the government-wide financial statements. Investments are stated at fair value except for investments in external investment pools that meet the GASB 79 requirement, which are stated at amortized cost. Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Funds have original maturities of 90 days or less. Therefore, the entire balance in the Proprietary Funds is considered cash equivalents. 47 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 G. RECEIVABLES AND PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as “interfund receivables/payables.” All short-term interfund receivables and payables at December 31, 2022 are planned to be eliminated in 2022. Long-term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Uncollectible property taxes and special assessments are not material and have not been reported (see Note 1 H and I). Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the county in December (levy/ assessment date) of each year for collection in the following year. The county is responsible for billing and collecting all property taxes for itself, the City, the local school district and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the county and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The county possesses this authority. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to the City the following January) are classified as due from county. Taxes not collected by the county by December 31 are classified as delinquent taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflow of resources because they are not available to finance current expenditures. I. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with state statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the county’s costs of administering all tax forfeit properties. Pursuant to state statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflow of resources. J. INVENTORIES For governmental funds, inventories are valued at cost using the first-in, first-out (FIFO) method. The cost of such inventories are recorded as expenditures when consumed rather than when purchased. Inventories of the Proprietary Funds are stated at weighted average cost, which approximates market, using the first-in, first-out (FIFO) method. K. 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. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and intangible assets such as easements and computer software, 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 and an estimated useful life in excess of one year. 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. 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Property, plant and equipment are depreciated/amortized using the straight-line method over the following estimated useful lives: Assets Buildings and structures 5 – 40 years Furniture, fixtures and equipment (including software) 3 – 20 years Distribution and collection systems 20 – 50 years Streets 20 – 50 years Storm sewers 25 years Stormwater treatment systems 25 – 40 years M. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused personal leave benefits. All personal leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts associated with governmental fund employees is reported in the Internal Service Employee Benefit Fund. No liability is recorded for nonvesting accumulating rights to receive personal leave benefits. However, a liability is recognized for that portion of accumulating personal leave benefits that is vested as severance pay. N. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary funds 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 funds statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium discount. In the governmental fund financial statements, governmental funds recognize bond premiums and discounts 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. O. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by resolution of the City Council. Assigned - consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council policy, the City’s Finance Director and/or City Manager are authorized to establish assignments of fund balance. 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned and 3) unassigned. P. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. Q. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. R. RECLASSIFICATIONS Certain amounts presented in the prior year data has been reclassified in order to be consistent with the current year’s presentation. S. COMPARATIVE TOTALS The basic financial statements, required supplementary information, combining and individual fund financial statements and schedules and supplementary financial information include certain prior-year summarized comparative information in total but not at the level of detail required for presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the City’s financial statements for the year ended December 31, 2021, from which the summarized information was derived. T. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category. They are the pension related deferred outflows of resources and the OPEB related deferred outflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The government has pension and OPEB related deferred inflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position, and reports deferred inflows of resources related to leases in the government-wide Statement of Net Position and the governmental funds Balance Sheet. The government also has a type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, tax increment and intergovernmental revenue. U. DEFINED BENEFIT PENSION PLANS 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 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. V. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds”. The details of this ($27,848,702) difference are as follows: Bonds payable ($26,700,000) Accrued interest payable (320,433) Unamortized bond premium (828,269) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities. ($27,848,702) 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $1,356,696 difference are as follows: Capital outlay $1,669,930 Construction/acquisition costs 2,063,945 Capital outlay not capitalized (184,342) Depreciation expense (2,192,837) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $1,356,696 Another element of that reconciliation states that “revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds”. The details of this $143,860 difference are as follows: Unavailable revenue - general property taxes: At December 31, 2021 ($55,628) At December 31, 2022 79,525 Unavailable revenue - tax increment taxes: At December 31, 2021 (9,557) At December 31, 2022 8,060 Unavailable revenue - special assessments: At December 31, 2021 (1,565,926) At December 31, 2022 1,673,181 Unavailable revenue - intergovernmental: At December 31, 2021 - At December 31, 2022 14,205 Net adjustments to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$143,860 53 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Another element of that reconciliation states that “the issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of principal of the long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position.” The details of this $887,438 difference are as follows: Debt issued or incurred: Issuance of general obligation bonds ($2,385,000) Premium on issued bonds (15,093) Principal repayments 3,170,000 Change in accrued interest payable 928 Amortization of bond premium 116,603 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities.$887,438 W. LEASE RECEIVABLE The City's lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the entity may receive additional variable lease payments that are dependent upon the lessee's revenue/the lessee's usage levels. These variable payments are excluded from the lease receivable. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the commencement of the lease in an amount equal to the initial recording of the lease receivable, and is recognized as revenue over the lease term. Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal at least 110% of deposits not covered by insurance or bonds. Securities pledged as collateral are required to be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. Minnesota Statue 118A.03 identifies allowable forms of collateral. Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. As of December 31, 2022, the bank balance of the City’s deposits was covered by federal depository insurance, however, the City also held $520,908 of cash with its investment custodians that was not covered by federal depository insurance or supplementary collateral. 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 B. INVESTMENTS Subject to rating, yield, maturity and issuer requirements as prescribed by statute, Minnesota Statutes 118A.04 and 118A.05 authorize the City to invest in United States securities, state and local securities, commercial paper, time deposits, temporary general obligation bonds, repurchase agreements, Minnesota joint powers investment trusts and guaranteed investment contracts. As of December 31, 2022, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 Federal Home Loan Bank AAA $3,355,600 $ - $3,355,600 $ - Federal Farm Credit Bank AAA 714,395 714,395 - - Money market funds Aaa-mf 467,994 467,994 - - External investment pool - 4M Fund Not rated 8,128,719 8,128,719 - - External investment pool - 4M Plus Fund Not rated 1,520,961 1,520,961 - - Municipal Securities AA1, AA-, AA+, AAA 845,896 147,854 225,040 473,002 Brokered Certificates of Deposit Not rated 10,042,721 3,666,118 6,111,371 265,232 Total $25,076,286 $14,646,041 $9,692,011 $738,234 Total investments $25,076,286 Total deposits 520,908 Petty cash 5,485 Total cash and investments $25,602,679 Investment Maturities (in Years) 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. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3 investments are valued using inputs that are unobservable. The City has the following recurring fair value measurements as of December 31, 2022: Investment Type 12/31/2022 Level 1 Level 2 Level 3 Investments at fair value: Brokered Certificates of Deposit $10,042,721 $ - $10,042,721 $ - Municipal Securities 845,896 - 845,896 - Federal Agencies 4,069,995 - 4,069,995 - Total/Subtotal 14,958,612 $0 $14,958,612 $0 Investments not categorized: External investment pool - 4M, 4M Plus 9,649,680 Money market funds 467,994 Total $25,076,286 Fair Value Measurement Using The City’s external investment pool investment is with the 4M fund which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an unrated pool and the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1. The pool measures its investments at amortized cost in accordance with Government Accounting Standards Board Statement No. 79. The 4M Liquid Asset Fund has no redemption requirements. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are subject to a penalty equal to 7 days interest on the amount withdrawn. 55 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 C. INVESTMENT RISKS Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy does not address custodial risk. However, investments in securities are held by the City’s broker-dealers of which $500,000 is insured through SIPC. The broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealers’ accounts. Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City’s investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments in commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS 118A.04. The City’s investment policy does not place further restrictions on investment options. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City places no limit on the amount the City may invest in any one issuer. As of December 31, 2022, the following investments subject to concentration of credit risk disclosures were greater than 5% of total investments held by the City:  Federal Home Loan Bank – 13.4% 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2022 are as follows: Street Community Improvement HRA TIF Nonmajor General Center Debt Service Improvements Funds Total Special assessments receivable $ - $ - $1,487,869 $ - $1,638 $1,489,507 Delinquent property taxes 24,200 - 1,600 - 9,000 34,800 Delinquent tax increment - 8,000 - 8,000 - 16,000 Lease receivable 456,433 698,207 - - - 1,154,640 $480,633 $706,207 $1,489,469 $8,000 $10,638 $2,694,947 Major Funds LEASE RECEIVABLES: The City leases a portion of its water tower for a cellular tower antenna site. The lease had an initial noncancelable period of 5 years, with four renewal periods of 5 years each at the lessee's option through 2038. The City considers the likelihood of these options being exercised to be greater than 50%. The agreement calls for monthly lease payments of $2,534-$4,066, with an increase of 3% each year. The lease receivable is measured at the present value of the future minimum lease payments expected to be received during the lease term at a discount rate of 3% which is based on the rate available to finance equipment over the same time period. The City leases space within of its City Hall to the school district. The lease is non-cancelable through 2029. The agreement calls for monthly lease payments of $10,608. The lease receivable is measured at the present value of the future minimum lease payments expected to be received during the lease term at a discount rate of 3% which is based on the rate available to finance equipment over the same time period. At December 31, 2022, the City recorded $1,277,549 in lease receivables and deferred inflows of resources for these arrangements. 2022 Amortization of lease-related deferred inflows: Antenna leases $16,799 Community Space leases 101,557 Total revenue recognized in relation to deferred inflow amortization 118,356 Interest revenue 40,258 Total revenue recognized in relation to leased assets $158,614 57 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 4 UNAVAILABLE REVENUES Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Property Special Tax Taxes Assessments Increment Grants Total Major Funds: General Fund $49,803 $6,555 $ - $14,205 $70,563 Street Improvement Debt Service 18,112 1,606,663 - - 1,624,775 HRA TIF Improvements - - 8,060 - 8,060 Street Improvement Project 56,789 - - 56,789 Nonmajor Funds 11,610 3,174 - - 14,784 Total unavailale revenue $79,525 $1,673,181 $8,060 $14,205 $1,774,971 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2022 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $1,662,883 $ - ($600,000) $1,062,883 Permanent easements 73,984 - - 73,984 Construction in progress 3,125,075 2,390,017 (782,667) 4,732,425 Total capital assets, not being depreciated 4,861,942 2,390,017 (1,382,667) 5,869,292 Capital assets, being depreciated: Buildings and improvements 10,321,564 250,170 - 10,571,734 Land improvements 587,187 7,812 (10,199) 584,800 Furniture, fixtures and equipment 4,731,993 343,755 (147,428) 4,928,320 Streets 43,240,017 180,350 - 43,420,367 Storm sewers 428,469 - - 428,469 Intangible assets 56,823 - - 56,823 Total capital assets, being depreciated 59,366,053 782,087 (157,627) 59,990,513 Less accumulated depreciation for: Buildings and improvements 5,919,891 322,830 - 6,242,721 Land improvements 466,236 8,489 (10,199) 464,526 Furniture, fixtures and equipment 3,247,680 216,812 (120,332) 3,344,160 Streets 20,493,383 1,619,482 - 22,112,865 Storm sewers 224,688 17,139 - 241,827 Intangible assets 21,502 8,085 - 29,587 Total accumulated depreciation 30,373,380 2,192,837 (130,531) 32,435,686 Total capital assets being depreciated - net 28,992,673 (1,410,750) (27,096) 27,554,827 Governmental activities capital assets - net $33,854,615 $979,267 ($1,409,763) $33,424,119 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Beginning Ending Balance Increases Decrease Balance Business-type activities: Capital assets, not being depreciated: Land $2,089,954 $ - $ - $2,089,954 Permanent easements - 57,695 - 57,695 Construction in progress 11,297 23,435 (34,732) - Total capital assets, not being depreciated 2,101,251 81,130 (34,732) 2,147,649 Capital assets, being depreciated: Buildings and structures 8,482,703 502,657 - 8,985,360 Land improvements 1,038,687 23,435 - 1,062,122 Furniture, fixtures and equipment 5,396,420 62,935 - 5,459,355 Software and intangibles 62,894 - 62,894 Stormwater 2,253,147 - 2,253,147 Distribution and collection system 18,006,505 533,045 - 18,539,550 Total capital assets, being depreciated 35,240,356 1,122,072 0 36,362,428 Less accumulated depreciation for: Buildings and structures 3,056,481 206,986 - 3,263,467 Land improvements 124,643 41,547 166,190 Furniture, fixtures and equipment 1,477,664 225,842 - 1,703,506 Software and intangibles 26,022 - - 26,022 Stormwater 966,564 89,349 - 1,055,913 Distribution and collection system 6,676,879 478,643 - 7,155,522 Total accumulated depreciation 12,328,253 1,042,367 0 13,370,620 Total capital assets being depreciated - net 22,912,103 79,705 0 22,991,808 Business-type activities capital assets - net $25,013,354 $160,835 ($34,732) $25,139,457 60 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $125,217 Public safety 204,637 Public works, including depreciation of general infrastructure assets 1,842,094 Parks and recreation 20,889 Total depreciation expense - governmental activities 2,192,837 Business-type activities: Liquor 80,142 Water/Sewer/Water Plant 650,240 Stormwater 311,985 Total depreciation expense - business-type activities 1,042,367 Total depreciation expense $3,235,204 CONSTRUCTION COMMITMENTS At December 31, 2022, the City had commitments of approximately $415,414 for uncompleted construction contracts. Note 6 LONG-TERM DEBT The City issues general obligation bonds to finance its street improvement program, tax increment projects and other City purposes. General obligation bonds are direct obligations of the City and are supported by the full faith and credit of the City. The City has several types of general obligation bonds outstanding at December 31, 2022. Following is a brief description of the different bond types:  Improvement bonds are issued to finance street improvement projects. These bonds are payable primarily from special assessments levied on benefited properties. The costs of these projects are shared by the City; general property taxes levied provide the revenues for these costs.  Tax increment bonds were used to finance redevelopment projects and are payable primarily from incremental property taxes derived from the tax increment districts with any deficiency to be provided from general property taxes.  Tax abatement bonds were issued to finance a portion of park, sidewalk, and traffic signal improvements, and are payable from a special general property tax levy.  Certificates of indebtedness issued to finance various equipment acquisitions are payable from a special general property tax levy.  Revenue bonds are issued to finance business-type activities. These bonds are Utility Revenue Bonds. The liability for these bonds is recorded in the Proprietary Funds. 61 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 As of December 31, 2022, the long-term debt of the City consisted of the following: Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/2022 Governmental Activities: G.O. Improvement Bonds: G.O. Improvement Bonds, Series 2014A 2.00-3.30% 4/10/2014 2/1/2030 $2,070,000 $1,165,000 G.O. Improvement Bonds, Series 2015A 2.00-3.00% 5/19/2015 2/1/2031 2,580,000 1,620,000 G.O. Improvement Bonds, Series 2016A 2.00-2.75% 6/2/2016 2/1/2032 1,455,000 1,010,000 G.O. Improvement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 1,355,000 550,000 G.O. Improvement Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 2,600,000 1,995,000 G.O. Improvement Bonds, Series 2018A 3.00-4.00% 5/15/2018 2/1/2034 2,610,000 2,160,000 G.O. Improvement Refunding Bonds, Series 2019A 2.25-4.00% 7/18/2019 2/1/2027 3,315,000 965,000 G.O. Improvement Bonds, Series 2020A 2.00-3.00% 5/19/2020 2/1/2036 3,000,000 2,850,000 G.O. Improvement Refunding Bonds, Series 2021A 2.00% 5/18/2021 2/1/2029 885,000 775,000 G.O. Improvement Bonds, Series 2021A 1.10-2.00% 5/18/2021 2/1/2037 2,085,000 2,085,000 G.O. Improvement Bonds, Series 2022A 3-3.25% 5/26/2022 2/1/2038 2,385,000 2,385,000 Total improvement bonds 24,340,000 17,560,000 G.O. Tax Increment Revenue Bonds: G.O. Tax Increment Refunding Bonds, Series 2014B 2.00-3.50% 7/24/2014 2/1/2031 3,665,000 2,220,000 G.O. Tax Increment Refunding Bonds, Series 2015B 2.00-3.00% 12/29/2015 2/1/2031 4,310,000 2,650,000 Total tax increment revenue bonds 7,975,000 4,870,000 G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2016B 2.00% 6/2/2016 2/1/2026 1,445,000 370,000 G.O. Tax Abatement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2025 835,000 345,000 G.O. Tax Abatement Refunding Bonds, Series 2019A 3.00-4.00% 7/18/2019 2/1/2035 1,145,000 1,025,000 Total tax abatement bonds 3,425,000 1,740,000 G.O. Lease Revenue Refunding Bonds: G.O. Lease Revenue Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2024 3,995,000 780,000 Other G.O. Bonds: G.O. Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2028 5,440,000 1,130,000 G.O. Street Reconstruction Bonds, Series 2014C 2.00-3.00% 7/24/2014 2/1/2024 1,305,000 315,000 G.O. Equipment Certificate, Series 2017A 3.00% 5/18/2017 2/1/2027 520,000 305,000 Total other G.O. bonds 7,265,000 1,750,000 Unamortized bond premiums N/A 828,269 Total - bonded indebtedness 47,000,000 27,528,269 Compensated absences payable N/A 612,629 Total - governmental activities 47,000,000 28,140,898 Business-type activities Revenue Bonds: G.O. Water and Sewer Revenue Refunding Bonds, Series 2013A 2.00% 4/16/2013 2/1/2024 1,440,000 300,000 Unamortized bond premiums N/A 4,884 Total - bonded indebtedness 1,440,000 304,884 Compensated absences N/A 176,092 Total City indebtedness - business-type activities 1,440,000 480,976 Total City indebtedness $48,440,000 $28,621,874 62 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Annual debt service requirements to maturity for long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest 2023 $1,525,000 $473,303 $495,000 $134,412 2024 1,705,000 413,278 510,000 122,062 2025 1,740,000 362,984 530,000 109,313 2026 1,590,000 314,097 555,000 95,700 2027 1,515,000 269,728 580,000 80,081 2028 1,425,000 229,653 605,000 62,975 2029 1,460,000 190,496 635,000 43,787 2030 1,370,000 151,867 655,000 23,025 2031 1,235,000 117,379 305,000 4,876 2032 1,070,000 87,862 - - 2033 900,000 62,241 - - 2034 665,000 41,934 - - 2035 470,000 28,138 - - 2036 475,000 17,298 - - 2037 255,000 8,519 2038 160,000 2,600 Total $17,560,000 $2,771,377 $4,870,000 $676,231 G.O. Tax Increment BondsG.O. Improvement Bonds Governmental Activities Year Ending December 31 Principal Interest Principal Interest Principal Interest 2023 $265,000 $48,100 $385,000 $13,320 $530,000 $39,907 2024 275,000 40,275 395,000 4,542 375,000 28,155 2025 285,000 32,150 - - 220,000 20,132 2026 160,000 25,700 - - 225,000 14,178 2027 75,000 21,900 - - 230,000 7,919 2028 75,000 19,275 - - 170,000 2,338 2029 80,000 16,950 - - - - 2030 80,000 14,550 - - - - 2031 85,000 12,075 - - - - 2032 85,000 9,525 - - - - 2033 90,000 6,900 - - - - 2034 90,000 4,200 - - - - 2035 95,000 1,425 - - - - Total $1,740,000 $253,025 $780,000 $17,862 $1,750,000 $112,629 Revenue Bonds G.O. LeaseG.O. Tax Abatement Bonds Other General Obligation Bonds Governmental Activities 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Year Ending December 31 Principal Interest 2023 $145,000 $4,550 2024 155,000 1,550 Total $300,000 $6,100 Revenue Bonds Business-Type Activities It is not practicable to determine the specific year for payment of long-term accrued compensated absences. CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2022, was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $16,495,000 $2,385,000 ($1,320,000) $17,560,000 $1,525,000 G.O. tax increment refunding bonds 5,345,000 - (475,000) 4,870,000 495,000 G.O. tax abatement bonds 1,995,000 - (255,000) 1,740,000 265,000 G.O. lease revenue refunding bonds 1,150,000 - (370,000) 780,000 385,000 G.O. refunding bonds 1,675,000 - (545,000) 1,130,000 320,000 G.O. street reconstruction bonds 465,000 - (150,000) 315,000 155,000 G.O. equipment certificates 360,000 - (55,000) 305,000 55,000 Total bonds payable 27,485,000 2,385,000 (3,170,000) 26,700,000 3,200,000 Unamortized bond premiums 929,779 15,093 (116,603) 828,269 - Total bonded indebtedness 28,414,779 2,400,093 (3,286,603) 27,528,269 3,200,000 Compensated absences*635,815 - (23,186) 612,629 202,168 Total governmental activities $29,050,594 $2,400,093 ($3,309,789) $28,140,898 $3,402,168 Business-type activities: Revenue bonds $440,000 $ - ($140,000) $300,000 $145,000 Unamortized bond premiums 9,392 - (4,508) 4,884 - Total bonded indebtedness 449,392 - (144,508) 304,884 145,000 Compensated absences*175,891 201 - 176,092 58,111 Total business-type activities $625,283 $201 ($144,508) $480,976 $203,111 *The change in compensated absences is presented as a net change. All long-term bonded indebtedness outstanding at December 31, 2022 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2022 totaled $5,163. $2,385,000 G.O Road Improvement Bonds On May 26, 2022, the City issued $2,385,000 in G.O Road Improvement Bonds, Series 2022A to finance various public improvements projects within the City. The G.O Bond will have a term of 15 years with an interest rate between 3.0-3.25% and will be repaid with property taxes and special assessments. 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 PLEDGED REVENUE Future revenue pledged for the payment of long-term debt is as follows: Percent of Debt service Remaining Principal Pledged Use of Total as a % of Term of Principal and Interest Revenue Bond Issue Proceeds Type Debt Service Net Revenues Pledge and Interest Paid Received 2021A Road Improvements 2021 road construction Special assessments 17%N/A 2021-2037 2,315,215 43,913 199,879 2021 Mill & Overlay Property tax levy 83% 2021A Refunding of 2013 road construction Special assessments 17%N/A 2013 - 2029 829,950 130,189 129,109 2013B Road Improvements Property tax levy 83% Special assessments 4% 2020A Street Reconstruction 2020 road construction Property tax levy 96%N/A 2020-2036 3,317,650 222,350 260,741 2019A Improvement Refunding Refunding of 2010A Special assessments N/A N/A 2019-2026 1,055,900 232,400 246,475 road reconstruction Property tax levy N/A 2019A Tax Abatement 2019 Utility improvements, trails Tax abatement revenue N/A 2019-2035 1,247,400 95,400 66,226 Special assessments 30%N/A 2018A Improvement 2018 road construction Property tax levy 70%2018-2034 2,600,613 231,375 192,476 2017A Improvements Refunding of 2009A Special assessments 5%N/A Refunding road reconstruction Property tax levy 95%2017-2025 574,900 189,050 198,097 2017A Tax Abatement Refunding of 2009A Tax abatement revenue 100%N/A 2017-2025 360,825 116,925 75,725 Refunding Emerald Park improvements 2017A Improvement 2017 road reconstruction Special assessments 17%N/A 2017 - 2033 2,338,875 217,175 101,931 Property tax levy 83% 2017A Equipment Certificate 2017 Equipment note Property tax levy 100%N/A 2017 - 2033 328,625 64,975 305,385 2016A Improvement 2016 road reconstruction Special assessments 52%N/A 2016 - 2032 1,131,906 113,237 90,251 Property tax levy 48% 2016B Tax Abatement Mirror Lake improvements and Tax abatement revenue 100%N/A 2016 - 2026 384,800 98,300 101,347 pedestrian safety improvements 2015A Road Improvements 2015 road construction Special assessments 19%N/A 2015-2031 1,820,969 206,963 176,479 Property tax levy 81% 2015B Tax Increment Refunding 2006B TIF Bonds Tax Increment 100%N/A 2015-2031 3,003,594 332,813 664,769 2014A Improvement 2014 road construction Special assessments 18%N/A 2014 - 2030 1,315,997 172,312 169,079 Property tax levy 82% 2014B Tax Increment Refunding 2007 TIF Bonds Tax Increment 100%N/A 2015 -2031 2,542,637 288,400 562,748 2014C Road Improvements Refunding of 2008A Property tax levy 100%N/A 2014 - 2024 324,525 161,137 166,147 Sikver Lake Road improvements 2013A G.O. Water/Sewer Refunding 2003B G.O. Charges for services 100%N/A 2013-2024 306,100 146,233 2,678,069 Revenue Refunding Water/Sewer Revenue Bonds 2012 road construction Special assessments 13%N/A 2012A Road Improvements Refunding Road improvement Property tax levy 87%2012 - 2028 1,209,479 578,564 122,542 Bonds 2006A,2007A 2012 building improvements 100%N/A 2012A Lease Revenue Refunding Lease Revenue Property tax levy 2012 - 2024 797,863 391,348 319,795 Bonds 2003A 2022A Road Improvements 2022 road construction Special assessments N/A N/A 2022-2038 3,029,394 - 34,106 2022 Mill & Overlay Property tax levy N/A Revenue Pledged Current Year 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 7 DEFINED BENEFIT PENSION PLANS – CITY A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). 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. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to local relief associations that elected to merge with and transfer assets and administration to PERA. 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. 1. GERF Benefits 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 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% for each of the first ten years of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7% 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 unreduced Social Security benefits capped at 66. 66 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. 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 normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year 2022 and the City was required to contribute 7.5% for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2022 were $197,027. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in fiscal year 2022 and the City was required to contribute 17.70% for Police and Fire Plan members. The City’s contributions to the PEPFF for the year ended December 31, 2022 were $521,212. The City’s contributions were equal to the required contributions as set by state statute. 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 D. PENSION COSTS 1. GERF Pension Costs At December 31, 2022, the City reported a liability of $2,645,291 for its proportionate share of GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $77,599. 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, 2022, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0334% at the end of the measurement period and 0.0333% for the beginning of the period. City's proportionate share of the net pension liability $2,645,291 State of Minnesota’s proportionate share of the net pension liability associated with the City 77,599 Total $2,722,890 For the year ended December 31, 2022, the City recognized pension expense of $330,572 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $11,595 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. At December 31, 2022, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $22,095 $28,262 Changes in actuarial assumptions 598,677 10,775 Net difference between projected and actual investment earnings 45,966 - Changes in proportion 14,046 22,448 Contributions paid to PERA subsequent to the measurement date 99,503 - Total $780,287 $61,485 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The $99,503 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31 Expense 2023 $231,130 2024 231,788 2025 (82,846) 2026 239,227 2027 - Thereafter - 2. PEPFF Pension Costs At December 31, 2022, the City reported a liability of $10,217,569 for its proportionate share of the PEPFF’s net pension liability. 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 proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2021 through June 30, 2022, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.2348% at the end of the measurement period and 0.2368% for the beginning of the period. The State of Minnesota also contributed $18 million to PEPFF during the plan fiscal year ended June 30, 2021. The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The direct state aid was paid on October 1, 2021. Thereafter, by October 1 of each year, the state will pay $9 million to the PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. The State of Minnesota is included as a non-employer contributing entity in the PEPFF Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid. PEPFF employers need to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2022, the City recognized pension expense of $693,305 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized an additional $86,562 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 million to the PEPFF. The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City recognized $21,132 for the year ended December 31, 2022, as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund. 69 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 At December 31, 2022, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $623,754 $ - Changes in actuarial assumptions 6,014,612 60,922 Net difference between projected and actual investment earnings 136,118 - Changes in proportion 3,004 250,467 Contributions paid to PERA subsequent to the measurement date 269,448 - Total $7,046,936 $311,389 The $269,448 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31 Expense 2022 $1,088,341 2023 1,279,502 2024 1,148,913 2025 2,103,011 2026 846,332 Thereafter - The net pension liability will be liquidated by the Employee Benefit Internal Service Fund. E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2022 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.25% per year Investment Rate of Return 6.50% The long-term investment rate of return is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates deemed to be reasonable by the actuary. An investment return of 6.50% was deemed to be within that range of reasonableness for financial reporting purposes. Benefit increases after retirement are assumed to be 1.25% for the GERF. The PEPFF benefit increase is fixed at 1.00% per year and that increase was used in the valuation. 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of service to 3.0% after 27 years of service. In the PEPFF, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality rates for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions for GERF are reviewed every four years. The most recent four-year experience study for GERF was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most recent four-year experience study for PEPFF was completed in 2020 and adopted by the Board and became effective with the July 1, 2021 actuarial valuation. 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. Police and Fire Fund Changes in Actuarial Assumptions:  The single discount rate was changed from 6.50% to 5.40%.  The mortality improvement scale was changed from MP-2020 to MN-2021. 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: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic equity 35.0%5.10% International equity 15.0%5.30% Bonds 45.0%0.75% Unallocated cash 5.0%0.00% Total 100% 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 F. DISCOUNT RATE The discount rate for the GERF used to measure the total pension liability in 2022 was 6.5%. 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 GERF 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. In the PEPFF, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2060. Beginning in fiscal year ended June 30, 2061, projected benefit payments exceed the funds' projected fiduciary net position. Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO AA Index"). The resulting equivalent single discount rate of 5.40% for the PEPFF was determined to give approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 6.5% applied to all years of projected benefits through the point of asset depletion and 3.69% thereafter. G. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate Proportionate share of the GERF net pension liability $4,178,376 $2,645,291 $1,387,925 Proportionate share of the PEPFF net pension liability $15,462,797 $10,217,569 $5,976,968 H. PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately- issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 I. PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2022 is as follows: GERF $342,167 PEPFF 779,867 Fire Relief 7,088 Total $1,129,122 Note 8 DEFINED BENEFIT PENSION PLAN – FIRE DEPARMENT A. PLAN DESCRIPTION The City’s Fire Department participates in the Statewide Volunteer Firefighter Retirement Plan (SVF), an agent multiple-employer lump-sum defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting corporations that have elected to join the plan. At December 31, 2022 (measurement date), the plan covered 23 active firefighters and 10 vested terminated fire fighters whose pension benefits are deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter 353G. B. BENEFITS PROVIDED The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and survivors. Benefits are paid based on the number of years of service multiplied by a benefit level approved by the City. Members are eligible for a lump-sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting schedule that increases from 5 years at 40 percent through 20 years at 100 percent. C. CONTRIBUTIONS The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed $67,800 in fire state aid to the plan for the year ended December 31, 2022. Required employer contributions are calculated annually based on statutory provisions. The City was not statutorily required to make any contributions to the SVF plan for the year ended December 31, 2022. There were no City voluntary contributions to the SVF plan for the year ended December 31, 2022. 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 D. PENSION COSTS At December 31, 2022, the City reported a net pension asset of $397,881 for the SVF plan. The net pension asset was measured as of December 31, 2022. The total pension liability used to calculate the net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data certified by the fire department. The following table presents the changes in net pension liability during the year. Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) (a) (b) (a) - (b) Balance at December 31, 2021 $787,316 $1,373,737 ($586,421) Changes for the year: Service cost 33,436 - 33,436 Interest 49,245 - 49,245 Differences between expected and (32,532) - (32,532) actual experience Changes of assumptions - - - Changes in benefit terms - - - Contributions - employer - - - Contributions - State of MN - 67,800 (67,800) Contributions - employee - - - Net investment income - (205,177) 205,177 Benefit payments - - - Administrative expense - (1,014) 1,014 Net changes 50,149 (138,391) 188,540 Balance at December 31, 2022 $837,465 $1,235,346 ($397,881) Increase (Decrease) There were no benefit provision changes during the measurement period. For the year ended December 31, 2022, the City recognized pension expense of $7,088. At December 31, 2022, the City reported deferred inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $133,883 Changes of assumptions 10,497 9,881 Net differences between projected and actual investment earnings 156,800 - Total $167,297 $143,764 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended Pension December 31 Expense 2023 ($16,487) 2024 (6,994) 2025 19,405 2026 42,515 2027 (8,656) Thereafter (6,250) E. ACTUARIAL ASSUMPTIONS The total pension liability at December 31, 2022, was determined using the entry age normal actuarial cost method and the following actuarial assumptions:  Retirement eligibility at the later of age 50 or 20 years of service  Investment rate of return of 6.0%  Inflation rate of 3.0% F. DISCOUNT RATE The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows used to determine the discount rate assumed that contributions to the SVF plan will be made as specified in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY SENSITIVITY The following presents the City’s net pension asset for the SVF plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were calculated using a discount rate 1% lower or 1% higher than the current discount rate: Current 1% Decrease Discount Rate 1% Increase (5.0%) (6.0%) (7.0%) Net pension liability (asset) ($372,333) ($397,881) ($421,379) 75 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 H. PLAN INVESTMENTS 1. Investment Policy The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota Constitution to invest all state funds. Its membership as specified in the Constitution is comprised of the Governor (who is designated as chair of the Board), State Auditor, Secretary of State and State Attorney General. All investments undertaken by the SBI are governed by the prudent person rule and other standards codified in Minnesota Statutes, Chapter 11A and Chapter 353G. Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the Investment Advisory Council, establishes investment policies for all funds under its control. These investment policies are tailored to the particular needs of each fund and specify investment objectives, risk tolerance, asset allocation, investment management structure and specific performance standards. Studies guide the on-going management of the funds and are updated periodically. 2. Asset Allocation To match the long-term nature of the pension obligations, the SBI maintains a strategic asset allocation for the SVF that includes allocations to domestic equity, international equity, bonds and cash equivalents. The long-term target asset allocation and long-term expected real rate of return is the following: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic equity 35.0%5.10% International equity 15.0%5.30% Bonds 45.0%0.75% Unallocated cash 5.0%0.00% Total 100% The 6% long-term expected rate of return on pension plan investments was determined using a building-block method. Best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class using both long-term historical returns and long-term capital market expectations from a number of investment management and consulting organizations. The asset class estimates and the target allocations were then combined to produce a geometric, long-term expected real rate of return for the portfolio. Inflation expectations were applied to derive the nominal rate of return for the portfolio. 3. Description of Significant Investment Policy Changes During the Year The SBI made no significant changes to their investment policy during fiscal year 2022 for the Volunteer Firefighter Fund. 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 I. PENSION PLAN FIDUCIARY NET POSITION Detailed information about the SVF plan’s fiduciary net position at June 30, 2022 is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) A. PLAN DESCRIPTION The City provides post-employment health care benefits, as defined in paragraph B, through its group health insurance plan (the plan). The plan is a single-employer defined benefit OPEB plan administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. OPEB is funded on a pay-as-you go basis. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The plan does not issue a stand-alone financial report. B. BENEFITS PROVIDED The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Active employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and their eligible dependent(s) under the City’s health benefits program until age 65. The City provides health coverage for peace officers or firefighters disabled or killed in the line of duty in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal to the employer portion of health insurance premiums that would have otherwise been paid if the officer or firefighter was an active employee. During 2022, the City did not have any police officers or firefighters eligible for this benefit. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan becomes secondary. 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 C. PARTICIPANTS As of the January 1, 2022 actuarial valuation, participants of the plan consisted of: Active employees 54 Inactive employees or beneficiaries currently receiving benefits 5 Total 59 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $1,007,566 was measured as of December 31, 2021 and was determined by an actuarial valuation as of January 1, 2022. Changes in the total OPEB liability during 2022 were: Balance - beginning of year $692,246 Changes for the year: Service cost 72,464 Interest 15,890 Changes of benefit terms - Differences between expected and actual experience 479,711 Changes in assumptions (222,336) Benefit payments (30,409) Net changes 315,320 Balance - end of year $1,007,566 Changes in assumptions reflect a change in the discount rate from 2.74% in 2021 to 2.06% in 2022. E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the January 1, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Discount rate 2.06% Investment rate of return NA Healthcare cost trend rates 6.2% for 2022, decreasing each year to an ultimate rate of 3.9% for 2075 and beyond Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, the discount rate was based on the 20-year municipal bond index. Mortality, salary, and retirement rates are the rates used in the PERA plan of which the employee, retiree or beneficiary is a participant. 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 F.SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current discount rate: 1% Decrease Discount Rate 1% Increase Total OPEB liability $1,071,586 $1,007,566 $944,635 G.SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower or 1% higher than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase Total OPEB liability $900,189 $1,007,566 $1,131,699 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2022, the City recognized $37,888 of OPEB expense. At December 31, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Changes of assumptions $61,724 $222,878 Differences between expected and actual experience $429,794 236,251 Contributions subsequent to the measurement date 49,768 - Total $541,286 $459,129 $49,768 reported as deferred outflows of resources resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ended December 31, 2023. 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended OPEB December 31, Expense 2023 ($502) 2024 (502) 2025 (502) 2026 (502) 2027 (502) Thereafter 34,899 Note 10 INTERFUND LOANS AND TRANSFERS Interfund loans receivable and payable balances at December 31, 2022 are as follows: Fund Receivable Payable Purpose Major funds: Public Utilities Infrastructure $1,157,180 $ - HRA TIF Improvements 1,369,416 2,328,742 Provide financing for pay off of Fannie Mae loan Nonmajor funds: Revolving Improvement - 11,240 Provide financing for Arbors Alley Project Park Improvement Fund - 186,614 Provide financing for tennis court maintenance - Total $2,526,596 $2,526,596 Interfund transfers: Street Street Nonmajor Internal General Community Improvement Improvement Governmental Stormwater Service Fund Center Debt Service Project Funds Utility Fund Total Governmental activities: General Fund $ - $170,474 $ - $ - $592,921 $30,535 $86,300 $880,230 Community Center - - - - 105,474 - - 105,474 Street Improvement Debt Service - - 86,870 - 447,047 - - 533,917 HRA TIF Improvements 15,000 - - - 624,213 - - 639,213 Street Improvement Project - - 280,125 - - - - 280,125 Public Utilities Infrastructure - - - 8,320 - - - 8,320 Nonmajor - - 8,071 - 101,650 - - 109,721 Business-type activities: Liquor 275,000 - - - - - - 275,000 Stormwater Utility - - - 161,903 - - - 161,903 Total transfers $290,000 $170,474 $375,066 $170,223 $1,871,305 $30,535 $86,300 $2,993,903 Transfer out Governmental Funds Proprietary Funds Transfer In All 2022 transfers are considered routine and consistent with previous practices. 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 11 DEFICIT FUND BALANCES/NET POSITION The City reported deficit fund balances/net position at December 31, 2022 as follows: Fund Amount Nonmajor funds: Internal Service Fund $6,626,976 The Internal Service Fund includes the state retirement plans and OPEB and the retirement of pension and OPEB deficits are dependent upon variables, including contribution rates, investment earnings, and actuarial assumptions. Note 12 CONTINGENCIES 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 omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. The City has no deductible and a managed care program to assist employees with their rehabilitation plan. Annual employee hours of service are audited and final premiums are then determined. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property, casualty and automobile insurance coverage are provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions. These deductibles are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including liquor liability, employee health and disability insurance. There were no significant reductions in insurance from the previous year. The City did not have significant settlements in excess of insurance coverage for any of the past three fiscal years. B. LITIGATION Existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgement of the City management, remotely recoverable by plaintiffs. 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 C. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements included herein or on the overall financial position of the City at December 31, 2022. D. TAX INCREMENT 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. E. PAY-AS-YOU-GO TAX INCREMENT The City has three tax increment pay-as-you-go agreements. The agreements are not a general obligation of the City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the City. Details of the pay-as-you-go notes are as follows: TIF District #3-5, Landings at Silver Lake Village: Issued in 2004 in the principal sum of $4,464,407 with an interest rate of 6.75% per annum. Principal and interest shall be paid on February 1 and August 1 thereafter to and including February 1, 2029. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2029. The current year abatement amounts to $783,016. At December 31, 2022, the principal amount outstanding on the note was $2,870,221. TIF District #3-5, Phase II Town Homes: Issued in 2006 in the principal sum of $937,520 with an interest rate of 6% per annum. Principal and interest shall be paid on February 1 and August 1 thereafter to and including August 1, 2031. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 95% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on August 1, 2031. The current year abatement amounts to $75,559. At December 31, 2022, the principal amount outstanding on the note was $937,520. 82 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 TIF District # 3-5, The Legends Issued in 2016 in the principal sum of $1,023,000 with an interest rate of 5% per annum. Principal and interest shall be paid on February 1 and August 1 thereafter to and including February 1, 2028. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2028. The current year abatement amounts to $187,890. At December 31, 2022, the principal amount outstanding on the note was $360,360. F. ARBITRAGE The City issued greater than $5 million of bonds in the years 2006, 2007 and 2011 and, therefore, is required to rebate excess investment income relating to these issues to the federal government. The City calculates arbitrage rebate every five years as permitted by arbitrage regulations. The extent of the City’s liability for arbitrage rebates for bond issues not currently requiring five year rebate calculations is not determinable at this time. However, in the opinion of management, any such liability would be immaterial. Note 13 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General obligation bond issues sold by the City are financed by ad valorem tax levies and improvement bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2022. 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 14 FUND BALANCE A. CLASSIFICATIONS At December 31, 2022, a summary of the governmental fund balance classifications are as follows: Street Improvement Street Public Community Debt HRA TIF Improvement Utilities General Fund Center Service Projects Projects Infrastructure Other Funds Total Nonspendable: Prepaid items $140,509 $2,679 $ - $552 $ - $ - $1,419 $145,159 Inventory 24,178 - - - - - - 24,178 Total nonspendable 164,687 2,679 0 552 0 0 1,419 169,337 Restricted for: Tax increment - - - 2,367,273 - - - 2,367,273 Public safety - - - - - - 69,190 69,190 Capital Improvements - - - - 282,711 - - 282,711 Debt service - - 3,526,269 - - - 856,994 4,383,263 Total restricted 0 0 3,526,269 2,367,273 282,711 0 926,184 7,102,437 Committed to: Community Center - 155,380 - - - - - 155,380 Redevelopment activities - - - - - - 739,729 739,729 Total committed 0 155,3800000739,729 895,109 Assigned to: Street improvements/rehab - - - - 241,802 - - 241,802 Building improvements - - - - - - 569,865 569,865 Public utilities infrastructure - - - - - 3,499,524 - 3,499,524 Parks and recreation - - - - - - 264,980 264,980 Other capital improvements - - - - - - 2,139,021 2,139,021 Total assigned 0000241,8023,499,524 2,973,866 6,715,192 Unassigned 3,840,170 - - - - - - 3,840,170 Total $4,004,857 $158,059 $3,526,269 $2,367,825 $524,513 $3,499,524 $4,641,198 $18,722,245 B. MINIMUM UNASSIGNED FUND BALANCE POLICY The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the General Fund. The most significant revenue source of the General Fund is property taxes. This revenue source is received in two installments during the year – June and December. As such, it is the City’s goal to begin each fiscal year with sufficient working capital to fund operations between each semi-annual receipt of property taxes. The policy establishes a year-end targeted unassigned fund balance amount for cash-flow timing needs in the range of 35-50% of the subsequent year’s budgeted operating expenditures (net of expenditures for police and financial services to other cities). At December 31, 2022, the unassigned fund balance of the General Fund was 49% of the subsequent year’s budgeted expenditures. 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 15 CONDUIT DEBT OBLIGATION From time to time, the City has issued Multi-family Housing Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of rental housing deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2022, there was one series of Multi-family Housing Revenue Bonds outstanding. The aggregate issued amount was $16,950,000 which consists of one 2013 issue of $16,950,000. The balance outstanding at December 31, 2022 is $15,780,000. Note 16 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City’s legal debt margin for 2022 and 2021 is computed as follows: December 31, December 31, 2022 2021 Market value: Ramsey County $489,648,800 $428,489,400 Hennepin County 798,681,700 747,604,900 Total market value 1,288,330,500 1,176,094,300 Debt limit percentage 3% 3% Debt limit 38,649,915 35,282,829 Amount of debt applicable to debt limit: Total bonded debt 27,000,000 27,925,000 Less nonapplicable debt: Revenue bonds (water, sewer) (300,000) (440,000) Tax abatement bonds (1,740,000) (1,995,000) Improvement bonds (18,690,000) (18,170,000) Tax increment bonds (4,870,000) (5,345,000) Cash and investments in applicable debt service funds (621,872) (748,130) Total amount of debt applicable to debt limit 778,128 1,226,870 Legal debt margin $37,871,787 $34,055,959 85 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 17 ADOPTION OF NEW ACCOUNTING STANDARD The City implemented GASB Statement No. 87, Leases for the year ended December 31, 2022. As a result, a lease receivable and deferred inflow of resources related to leases are reported on the Statement of Net Position and the Balance Sheet – Governmental Funds. In accordance with GASB 87, prior year comparative amounts have been restated. However, there was no impact on net position or fund balance due to implementing the standard. Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Board (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 96 Subscription – Based Information Technology Arrangements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 99 Omnibus 2022. The provisions of this Statement contain multiple effective dates, the first being for reporting periods beginning after June 15, 2022. Statement No. 100 Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62. The provisions of this Statement are effective for reporting periods beginning after June 15, 2023. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statement No. 87 may have a material impact. 86 REQUIRED SUPPLEMENTARY INFORMATION 87 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5 For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2022 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $5,130,443 $5,130,443 $5,303,007 $172,564 $4,979,581 Special assessments - - 5,935 5,935 5,369 Licenses and permits 299,972 299,972 530,924 230,952 1,116,447 Intergovernmental: Federal: Public safety grants 79,070 79,070 357,065 277,995 44,876 State: Local governement aid 640,386 640,386 649,440 9,054 640,386 Police aid 196,057 196,057 214,782 18,725 205,489 Municipal state aid - street maintenance 93,988 93,988 135,784 41,796 93,988 County: Other 14,210 14,210 13,240 (970) 36,082 Local: Other 22,817 22,817 71,195 48,378 5,064 Total intergovernmental 1,046,528 1,046,528 1,441,506 394,978 1,025,885 Charges for services: Police contracts 802,283 802,283 802,283 -773,218 Antenna rental - water tower 64,598 64,598 62,118 (2,480) 62,401 Other 212,994 212,994 219,518 6,524 191,119 Total charges for services 1,079,875 1,079,875 1,083,919 4,044 1,026,738 Cable franchise fees 97,951 97,951 96,099 (1,852) 103,768 Fines and forfeits 76,914 76,914 74,027 (2,887) 113,163 Contributions and donations 1,000 1,000 6,162 5,162 610 Other revenue: Investment income 11,500 11,500 (92,847) (104,347) (8,752) Refunds and reimbursments 3,500 3,500 9,652 6,152 6,108 Miscellaneous - other 14,804 14,804 42,264 27,460 46,785 Total other revenue 29,804 29,804 (40,931) (70,735) 44,141 Total revenues 7,762,487 7,762,487 8,500,648 738,161 8,415,702 Expenditures: General government: Mayor and council: Current: Personal services 40,320 40,320 40,819 (499) 40,810 Other services and charges 75,172 75,172 73,298 1,874 68,919 Total mayor and council 115,492 115,492 114,117 1,375 109,729 Budgeted Amounts See accompanying notes to the required supplementary information. 88 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 5 For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2022 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Public relations/cable: Current: Personal services $11,093 $11,093 $11,371 ($278) $12,312 Supplies 1,408 1,408 - 1,408 - Other services and charges 40,588 40,588 40,782 (194) 40,370 Total public relations/cable 53,089 53,089 52,153 936 52,682 General management: Current: Personal services 165,088 165,088 164,144 944 127,209 Supplies 250 250 226 24 197 Other services and charges 27,368 27,368 24,297 3,071 18,636 Total general management 192,706 192,706 188,667 4,039 146,042 Elections: Current: Personal services 140,226 140,226 113,944 26,282 118,192 Supplies 2,185 2,185 555 1,630 1,927 Other services and charges 13,145 13,145 16,474 (3,329) 2,916 Total elections 155,556 155,556 130,973 24,583 123,035 Finance: Current: Personal services 199,995 199,995 225,781 (25,786) 180,436 Supplies 9,260 9,260 10,861 (1,601) 8,923 Other services and charges 117,794 117,794 119,164 (1,370) 128,750 Total finance 327,049 327,049 355,806 (28,757) 318,109 Assessing: Current: Personal services 5,102 5,102 4,759 343 4,759 Supplies 125 125 55 70 56 Other services and charges 74,710 74,710 73,000 1,710 71,000 Total assessing 79,937 79,937 77,814 2,123 75,815 Legal: Current: Contracted services 142,250 142,250 76,776 65,474 100,099 Planning and zoning: Current: Personal services 14,084 14,084 13,815 269 14,535 Supplies 125 125 18 107 155 Other services and charges 80,300 80,300 64,459 15,841 73,288 Total planning and zoning 94,509 94,509 78,292 16,217 87,978 Budgeted Amounts See accompanying notes to the required supplementary information. 89 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5 For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2022 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges $137,105 $137,105 $124,428 $12,677 $123,816 Total general government 1,297,693 1,297,693 1,199,026 98,667 1,137,305 Public safety: Civil defense: Current: Personal services 88,266 88,266 87,581 685 85,731 Supplies 570 570 - 570 220 Other services and charges 3,346 3,346 2,142 1,204 2,178 Total civil defense 92,182 92,182 89,723 2,459 88,129 Other public safety Current: Personal services - - 1,311 (1,311) 16,339 Total other public safety 0 0 1,311 (1,311) 16,339 Police protection: Current: Personal services 3,352,077 3,352,077 3,378,024 (25,947) 3,193,187 Supplies 97,803 97,803 95,275 2,528 82,552 Other services and charges 301,565 301,565 282,100 19,465 276,227 Total police protection 3,751,445 3,751,445 3,755,399 (3,954) 3,551,966 Fire protection: Current: Personal services 1,036,081 1,036,081 1,045,835 (9,754) 1,026,687 Supplies 47,926 47,926 62,073 (14,147) 43,386 Other services and charges 163,049 163,049 105,300 57,749 98,193 Total fire protection 1,247,056 1,247,056 1,213,208 33,848 1,168,266 Protective inspections: Current: Personal services 14,212 14,212 14,276 (64) 7,624 Supplies 150 150 161 (11) - Other services and charges 108,886 108,886 225,445 (116,559) 570,893 Total protective inspections 123,248 123,248 239,882 (116,634) 578,517 DARE program: Current: Personal services - - 47 (47) 11,218 Total DARE program 0 0 47 (47) 11,218 Total public safety 5,213,931 5,213,931 5,299,570 (85,639) 5,414,435 Budgeted Amounts See accompanying notes to the required supplementary information. 90 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5 For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2022 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Public works: Street maintenance: Current: Personal services $507,298 $507,298 $463,671 $43,627 $405,363 Supplies 24,890 24,890 22,012 2,878 22,414 Other services and charges 132,258 132,258 169,655 (37,397) 124,088 Total street maintenance 664,446 664,446 655,338 9,108 551,865 Equipment maintenance: Current: Personal services 51,831 51,831 51,962 (131) 48,565 Supplies 94,564 94,564 94,727 (163) 74,291 Other services and charges 61,403 61,403 67,199 (5,796) 56,977 Total equipment maintenance 207,798 207,798 213,888 (6,090) 179,833 Tree and weed care: Current: Personal services 48,026 48,026 47,485 541 46,239 Other services and charges 4,664 4,664 1,801 2,863 2,245 Total tree and weed care 52,690 52,690 49,286 3,404 48,484 Total public works 924,934 924,934 918,512 6,422 780,182 Parks and recreation: Park maintenance: Current: Personal services 175,066 175,066 183,378 (8,312) 156,574 Supplies 17,500 17,500 18,654 (1,154) 18,005 Other services and charges 58,194 58,194 65,422 (7,228) 64,413 Total park maintenance 250,760 250,760 267,454 (16,694) 238,992 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 302,936 302,936 319,630 (16,694) 291,168 Budgeted Amounts See accompanying notes to the required supplementary information. 91 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 5 For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2022 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Nondepartmental: Supplies $67,500 $67,500 $40,250 $27,250 $24,599 Insurance deductible costs 15,000 15,000 5,359 9,641 9,350 Total nondepartmental 82,500 82,500 45,609 36,891 33,949 Total expenditures 7,821,994 7,821,994 7,782,347 39,647 7,657,039 Revenues over (under) expenditures (59,507) (59,507) 718,301 777,808 758,663 Other financing sources (uses): Transfers in 265,000 265,000 290,000 25,000 274,729 Transfers out (191,774) (191,774) (880,230) (688,456) (554,596) Total other financing sources (uses) 73,226 73,226 (590,230) (663,456) (279,867) Net change in fund balance $13,719 $13,719 128,071 $114,352 478,796 Fund balance - January 1 3,876,786 3,397,990 Fund balance - December 31 $4,004,857 $3,876,786 Budgeted Amounts See accompanying notes to the required supplementary information. 92 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - COMMUNITY CENTER FUND For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2021 Original Final Actual Actual Revenues: Charges for services: Rental receipts $127,300 $127,300 $127,300 $127,300 Investment income 50 50 (2,852) (539) Total revenues 127,350 127,350 124,448 126,761 Expenditures: Parks and recreation: Current: Personal services 48,026 48,026 49,425 43,449 Supplies 5,500 5,500 5,592 4,850 Contractual services 111,356 111,356 128,477 115,202 Total expenditures 164,882 164,882 183,494 163,501 Revenues over (under) expenditures (37,532) (37,532) (59,046) (36,740) Other financing sources (uses): Transfer in 105,474 105,474 170,474 183,602 Transfer out (105,474) (105,474) (105,474) (60,000) Total other financing sources (uses) 0 0 65,000 123,602 Net change in fund balance ($37,532) ($37,532) 5,954 86,862 Fund balance (deficit) - January 1 152,105 65,243 Fund balance (deficit) - December 31 $158,059 $152,105 2022 Budgeted Amounts 93 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS For The Year Ended December 31, 2022 2022 2021 2020 2019 2018 Total OPEB liability: Service cost $72,464 $62,011 $49,034 $66,821 $60,682 Interest 15,890 18,122 36,179 29,763 28,711 Changes of benefit terms - - - - Differences between expected and actual experience 479,711 8,294 (347,833) - - Changes in assumptions (222,336) 19,545 52,159 (43,327) 21,006 Benefit payments (30,409) (30,213) (21,165) (11,075) (10,672) Net change in total OPEB liability 315,320 77,759 (231,626) 42,182 99,727 Total OPEB liability - beginning 692,246 614,487 846,113 803,931 704,204 Total OPEB liability - ending $1,007,566 $692,246 $614,487 $846,113 $803,931 Covered-employee payroll $4,900,000 $4,600,000 $4,500,000 $4,897,999 $4,627,624 Total OPEB liability as a percentage of covered-employee payroll 20.6% 15.0% 13.7% 17.3% 17.4% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to show a ten year trend. Additional years will be added as they become available. See accompanying notes to the required supplementary information. 94 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years St. Anthony's Proportionate State's Share of the Plan Proportionate Net Pension Fiduciary St. Anthony's St. Anthony's Share (Amount) Liability Net Position Proportionate Proportionate of the Net as a as a Share Share (Amount) Pension Percentage Percentage Measurement Fiscal Year (Percentage) of of the Net Liability of its covered of the Total Date Ending the Net Pension Pension Associated with Covered Payroll Pension June 30 December 31 Liability Liability (a) St. Anthony (b) Total (a+b) Payroll (c) ((a+b)/c) Liability 2015 2015 0.0343% $1,777,604 $ - $1,777,604 $2,012,851 88.3% 78.2% 2016 2016 0.0353%2,866,185 37,474 2,903,659 2,192,080 132.5% 68.9% 2017 2017 0.0338%2,157,770 27,098 2,184,868 2,174,769 100.5% 75.9% 2018 2018 0.0345%1,913,919 62,724 1,976,643 2,318,754 85.2% 79.5% 2019 2019 0.0334%1,846,611 57,331 1,903,942 2,363,174 80.6% 80.2% 2020 2020 0.0341%2,044,451 62,951 2,107,402 2,431,586 86.7% 79.1% 2021 2021 0.0333%1,422,059 43,405 1,465,464 2,398,987 61.1% 87.0% 2022 2022 0.0334%2,645,291 77,599 2,722,890 2,499,959 108.9% 76.7% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 95 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll Covered December 31 (a) Contribution (b) (a-b) (c) Payroll (b/c) 2015 $161,326 $161,326 $ - $2,151,016 7.50% 2016 160,607 160,607 - 2,141,425 7.50% 2017 167,798 167,798 - 2,237,307 7.50% 2018 175,748 175,748 - 2,343,317 7.50% 2019 179,816 179,816 - 2,397,523 7.50% 2020 184,656 184,656 - 2,462,125 7.50% 2021 178,190 178,190 - 2,375,875 7.50% 2022 197,027 197,027 - 2,627,030 7.50% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 96 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage Date Ending the Net Pension Pension Covered Covered of the Total June 30 December 31 Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability 2015 2015 0.2770% $3,147,368 $2,535,887 124.1% 86.6% 2016 2016 0.2920% 11,718,468 2,816,408 416.1% 63.9% 2017 2017 0.2650% 3,577,815 2,722,821 131.4% 85.4% 2018 2018 0.2426% 2,585,866 2,553,675 101.3% 88.8% 2019 2019 0.2442% 2,599,756 2,576,175 100.9% 89.2% 2020 2020 0.2369% 3,122,595 2,672,439 116.8% 87.2% 2021 2021 0.2368% 1,827,845 2,798,746 65.3% 93.7% 2022 2022 0.2348% 10,217,569 2,851,986 358.3% 70.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 97 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 15 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess)Payroll Covered December 31 (a)Contribution (b) (a-b)(c)Payroll (b/c) 2015 $435,571 $435,571 $ - $2,688,709 16.20% 2016 447,527 447,527 - 2,762,512 16.20% 2017 424,887 424,887 - 2,622,760 16.20% 2018 419,242 419,242 - 2,587,918 16.20% 2019 440,545 440,545 - 2,599,085 16.95% 2020 488,862 488,862 - 2,761,934 17.70% 2021 498,302 498,302 - 2,815,267 17.70% 2022 521,212 521,212 - 2,944,701 17.70% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 98 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 16 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - ST. ANTHONY FIRE DEPARTMENT RELIEF ASSOCIATION For The Last Ten Years Fiscal Year Ending and Measurement date December 31, 2022 December 31, 2021 December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015 Total pension liability: Service cost $33,436 $28,986 $28,181 $40,799 $37,633 $37,542 $47,233 $44,095 Interest 49,245 48,237 46,153 42,195 40,951 44,308 31,829 30,759 Changes in benefit terms - - - 35,173 26,091 - - - Differences between expected and actual experience (32,532) (58,248) (33,785) (71,654) - (35,041) - - Changes of assumptions - - 15,462 - 2,699 (36,075) - Benefit payments (13,240) - (27,928) (144,500) (7,260) (80,200) (25,472) Net change in total pension liability 50,149 5,735 40,549 34,047 (39,825) 42,248 (37,213) 49,382 Total pension liability - beginning 787,316 781,581 741,032 706,985 746,810 704,562 741,775 692,393 Total pension liability - ending (a) $837,465 $787,316 $781,581 $741,032 $706,985 $746,810 $704,562 $741,775 Plan fiduciary net position: Contributions - employer $7,890 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 Contributions - State of Minnesota 67,800 60,530 58,407 54,716 53,083 51,206 51,174 48,725 Contributions - employee - - - - - - - Net investment income (205,177) 117,572 150,122 98,394 (54,281) 93,511 39,971 (23,129) Benefit payments - (13,240) - (27,928) (144,500) (7,260) (80,200) (25,472) Administrative expense (1,014) (2,919) (12,185) (11,640) (11,547) (11,829) (8,653) (10,561) Net change in plan fiduciary net position (138,391) 169,833 202,344 119,542 (151,245) 131,628 8,292 (4,437) Plan fiduciary net position - beginning 1,373,737 1,203,904 1,001,560 882,018 1,033,263 901,635 893,343 897,780 Plan fiduciary net position - ending (b) $1,235,346 $1,373,737 $1,203,904 $1,001,560 $882,018 $1,033,263 $901,635 $893,343 Net pension liability (asset) - ending (a) - (b) ($397,881) ($586,421) ($422,323) ($260,528) ($175,033) ($286,453) ($197,073) ($151,568) Plan fiduciary net position as a percentage of the total pension liability 147.5% 174.5% 154.0% 135.2% 124.8% 138.4% 128.0% 120.4% Covered-employee payroll* NA NA NA NA NA NA NA NA Net pension liability as a percentage of covered employee payroll* NA NA NA NA NA NA NA NA Pension benefit per year of service $3,800 $3,800 $3,800 $3,800 $3,500 $3,300 $3,300 $3,300 Number of plan participants 34 31 33 30 33 35 32 32 *The Relief Association is comprised of volunteers, therefore there are no payroll expenditures. GASB 68 was implemented in 2015. Information prior to 2015 is not available. See accompanying notes to the required supplementary information. 99 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 17 SCHEDULE OF CONTRIBUTIONS - ST. ANTHONY FIRE DEPARTMENT RELIEF ASSOCIATION For The Last Ten Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll* Covered December 31 (a) Contribution (b) (a-b) (c) Payroll* (b/c) 2015 $22,977 $22,977 $ - $ - NA 2016 - 6,000 (6,000) - NA 2017 - 6,000 (6,000) - NA 2018 - 6,000 (6,000) - NA 2019 - 6,000 (6,000) - NA 2020 - 6,000 (6,000) - NA 2021 - 7,890 (7,890) - NA 2022 - - - - NA *The Relief Association is comprised of volunteers, therefore, there are no payroll expenditures. (i.e., there are no covered payroll amounts or percentage calculations.) GASB 68 was implemented in 2015. Information prior to 2015 is not available. See accompanying notes to the required supplementary information. 100 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2022 Note A LEGAL COMPLIANCE – BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the department level for the General Fund. Note B OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. There are no factors that affect trends in the amounts reported. Note C PENSION INFORMATION PERA – General Employees Retirement Fund 2022 Changes in Actuarial Assumptions:  The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 Changes in Actuarial Assumptions:  The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes.  The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2020 Changes in Actuarial Assumptions:  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 decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination and disability were also changed.  Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments.  The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.  The 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. 2020 Changes in Plan Provisions:  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 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2017 to MP-2018. 2019 Changes in the Plan Provisions:  The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 101 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2022 2018 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2015 to MP-2017.  The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year thereafter to 1.25% per year. 2017 Changes in Actuarial Assumptions:  The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member liability.  The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. 2016 Changes in Actuarial Assumptions:  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%.  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% to 3.25% for payroll growth and 2.50% for inflation. PERA – Public Employees Police and Fire Fund 2022 Changes in Actuarial Assumptions:  The single discount rate changed from 6.50% to 5.4%.  The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 Changes in Actuarial Assumptions:  The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes.  The inflation assumption was changed from 2.50% to 2.25%.  The payroll growth assumption was changed from 3.25% to 3.00%.  The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020.  Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 experience study. The changes result in a decrease in gross salary increase rates, slightly more unreduced retirements and fewer assumed early retirements.  Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations.  Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities.  Assumed percent married for active female members was changed from 60% to 70%. 2020 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2018 to MP-2019. 102 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2022 2019 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2017 to MP-2018. 2018 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2016 to MP-2017. 2017 Changes in Actuarial Assumptions:  The single discount rate was changed from 5.6% to 7.5%.  Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34% lower than the previous rates.  Assumed rates of retirement were changed, resulting in fewer retirements.  The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2 percent for non-vested members.  The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP- 2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.  Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.  Assumed percentage of married female members was decreased from 65% to 60%.  Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females.  The assumed percentage of female members electing Joint and Survivor annuities was increased.  The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00% per year through 2064 and 2.50% thereafter. 2016 Changes in Actuarial Assumptions:  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% per year thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%.  The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Statewide Volunteer Firefighter Retirement Plan* 2020 Changes in Actuarial Assumptions:  The assumed investment return and discount rate were changed from 5.25% to 6.00%. 2019 Changes in Actuarial Assumptions:  The assumed investment return and discount rate were changed from 5.75% to 5.25%. 2018 Changes in Actuarial Assumptions:  None 103 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2022 2017 Changes in Actuarial Assumptions:  The assumed investment return and discount rate were changed from 6.00% to 5.75%. 2016 Changes in Actuarial Assumptions:  The assumed investment return and discount rate were changed from 4.25% to 6.00%. *The St. Anthony Fire Department joined the Statewide Volunteer Firefighter Retirement Plan during December 2019. Changes in actuarial assumptions prior to 2020 occurred when the Fire Department’s pension plan assets were held in a special pension trust fund of the St. Anthony Fire Department Relief Association. 104 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 105 - This page intentionally left blank - 106 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs on long-term debt. CAPITAL PROJECT FUNDS Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). 107 - This page intentionally left blank - 108 CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET Statement 18 NONMAJOR GOVERNMENTAL FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 Special Debt Capital Revenue Service Project 2022 2021 Assets Cash and investments $809,757 $857,490 $3,142,071 $4,809,318 $3,981,575 Due from other governmental units - - - - 2,194 Accounts receivable - net 132 - 35,366 35,498 18,195 Property taxes receivable: Delinquent 2,674 4,957 3,980 11,611 9,234 Due from county 1,086 1,801 1,671 4,558 9,224 Prepaid items 319 - 1,100 1,419 35,425 Loans receivable 2,205 - - 2,205 5,786 Special assessments receivable - - 3,174 3,174 4,760 Lease receivable - - - - 904,409 Total assets $816,173 $864,248 $3,187,362 $4,867,783 $4,066,393 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $1,825 $7,124 $8,949 $42,829 Due to other governmental units 230 472 265 967 - Salaries payable 4,031 - - 4,031 5,243 Deposits payable - - - - 15,789 Interfund loan payable - - 197,854 197,854 198,923 Total liabilities 4,261 2,297 205,243 211,801 262,784 Deferred inflows of resources: Related to leases - - - - 904,409 Unavailable revenue 2,674 4,957 7,153 14,784 13,994 Total deferred inflows 2,674 4,957 7,153 14,784 13,994 Fund balance (deficit): Nonspendable 319 - 1,100 1,419 35,425 Restricted 69,190 856,994 - 926,184 1,071,835 Committed 739,729 - - 739,729 337,173 Assigned - - 2,973,866 2,973,866 2,345,182 Total fund balance (deficit) 809,238 856,994 2,974,966 4,641,198 3,789,615 Total liabilities, deferred inflows of resources, and fund balance $816,173 $864,248 $3,187,362 $4,867,783 $4,066,393 Total Nonmajor Governmental Funds 109 CITY OF ST. ANTHONY, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Special Debt Capital Revenue Service Project 2022 2021 Revenues: General property taxes $208,746 $496,867 $461,914 $1,167,527 $1,196,838 Intergovernmental - - - - 12,996 Special assessments - - 1,846 1,846 2,095 Charges for services - - - - 131,082 Fines and forfeits 44,531 - - 44,531 7,531 Investment income (loss) (12,851) (12,863) (51,615) (77,329) (11,854) Contributions and donations - - 12 12 263,025 Refunds and reimbursements 101 - 1,950 2,051 704 Total revenues 240,527 484,004 414,107 1,138,638 1,602,417 Expenditures: Current: General government - - - - 19,414 Public safety 12,712 - - 12,712 22,946 Public works - - 50,123 50,123 93,199 Parks and recreation - - 13,336 13,336 344,752 Housing and redevelopment 156,938 - - 156,938 130,471 Capital outlay - - 970,860 970,860 334,011 Debt service: Principal - 1,095,000 - 1,095,000 1,050,000 Interest - 197,761 5,438 203,199 225,148 Paying agent fees - 2,863 - 2,863 3,073 Total expenditures 169,650 1,295,624 1,039,757 2,505,031 2,223,014 Revenues over (under) expenditures 70,877 (811,620) (625,650) (1,366,393) (620,597) Other financing sources: Sale of capital assets 511,991 - 96,506 608,497 19,091 Transfers in - 635,863 1,235,442 1,871,305 1,292,234 Transfers out - - (109,721) (109,721) (383,907) Total other financing sources 511,991 635,863 1,222,227 2,370,081 927,418 Net change in fund balance 582,868 (175,757) 596,577 1,003,688 306,821 Fund balance - January 1 226,370 1,032,751 2,378,389 3,637,510 3,482,794 Fund balance - December 31 $809,238 $856,994 $2,974,966 $4,641,198 $3,789,615 Reconciliation of beginning fund balance to prior year ending fund balance: Prior year ending fund balance reported above $3,789,615 Less fund balance of Community Center Fund reported as nonmajor in prior year, major in current year (152,105) Current year beginning fund balance $3,637,510 Total Nonmajor Governmental Funds 110 NONMAJOR GOVERNMENTAL FUNDS 111 - This page intentionally left blank - 112 NONMAJOR SPECIAL REVENUE FUNDS The City’s Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City of St. Anthony, Minnesota had the following Special Revenue Funds during the year: Police Forfeiture Fund (230) is used to account for revenue and expenditures related to the forfeiture of property. HRA Fund (301) was established to oversee the commercial and residential redevelopment activities in the community. 113 - This page intentionally left blank - 114 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 20 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 Police Forfeiture Fund HRA Fund 2022 2021 Assets Cash and investments $69,215 $740,542 $809,757 $386,557 Accounts receivable - net - 132 132 16,085 Property taxes receivable: Delinquent - 2,674 2,674 3,124 Due from county - 1,086 1,086 1,689 Prepaid items - 319 319 2,218 Lease receivable - - - 904,409 Loans receivable - 2,205 2,205 5,786 Total assets $69,215 $746,958 $816,173 $415,459 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $12,828 Due to other governments 25 205 230 - Deposits payable - - - 15,789 Salaries payable - 4,031 4,031 5,243 Total liabilities 25 4,236 4,261 33,860 Deferred inflows of resources: Related to leases - - - 904,409 Unavailable revenue - 2,674 2,674 3,124 Total deferred inflows - 2,674 2,674 907,533 Fund balance (deficit): Nonspendable - 319 319 2,218 Restricted 69,190 - 69,190 39,084 Committed - 739,729 739,729 337,173 Total fund balance (deficit)69,190 740,048 809,238 378,475 Total liabilities, deferred inflows of resources, and fund balance $69,215 $746,958 $816,173 $415,459 Total Nonmajor Special Revenue Funds 115 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 21 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Police Forfeiture Fund HRA Fund 2022 2021 Revenues: General property taxes $ - $208,746 $208,746 $197,712 Intergovernmental - - - 12,996 Charges for services: Administrative fees - - - 3,782 Rental receipts - - - 127,300 Fines and forfeits 44,531 - 44,531 7,531 Investment income (loss) (1,713) (11,138) (12,851) (1,190) Refunds and reimbursements - 101 101 230 Total revenues 42,818 197,709 240,527 348,361 Expenditures: Current: General government - - - 19,414 Public safety 12,712 - 12,712 22,946 Parks and recreation - - - 163,501 Housing and redevelopment - 156,938 156,938 130,471 Total expenditures 12,712 156,938 169,650 336,332 Revenues over (under) expenditures 30,106 40,771 70,877 12,029 Other financing sources (uses): Sale of city property - 511,991 511,991 - Transfers in - - - 183,602 Transfers out - - - (69,729) Total other financing sources (uses)0 511,991 511,991 113,873 Net change in fund balance 30,106 552,762 582,868 125,902 Fund balance (deficit) - January 1 39,084 187,286 226,370 252,573 Fund balance (deficit) - December 31 $69,190 $740,048 $809,238 $378,475 Reconciliation of beginning fund balance to prior year ending fund balance: Prior year ending fund balance reported above $378,475 Less fund balance of Community Center Fund reported as nonmajor in prior year, major in current year (152,105) Current year beginning fund balance $226,370 Total Nonmajor Special Revenue Funds 116 NONMAJOR DEBT SERVICE FUNDS The City's Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs of long-term debt other than proprietary fund debt. The City of St. Anthony, Minnesota had the following nonmajor Debt Service Funds during the year. Public Facilities Revenue Bonds (311) accounts for debt service for the public works building and fire station. Tax Abatement Fund (502) was established to account for debt service payments associated with the improvements to City parks. Equipment Certificates Fund (402) was established to account for the debt service related to the 2018 purchase of a fire engine. HSIP Tax Abatement Fund (536) was established to account for debt service for sidewalks and signal light improvements. HRA TIF Debt Service Fund (335/336) was established to account for debt associated with Tax Increment Financing Districts of the City. 117 - This page intentionally left blank - 118 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 22 NONMAJOR DEBT SERVICE FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement HRA TIF Debt Service 2022 2021 Assets Cash and investments $449,855 $232,341 $5,871 $164,463 $4,960 $857,490 $1,030,470 Property taxes receivable: Delinquent 3,095 909 - 953 - 4,957 3,634 Due from county 1,158 276 - 367 - 1,801 4,221 Total assets $454,108 $233,526 $5,871 $165,783 $4,960 $864,248 $1,038,325 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $175 $125 $100 $475 $950 $1,825 $1,940 Due to other governments 279 112 - 81 - 472 - Total liabilities $454 $237 $100 $556 $950 $2,297 $1,038,325 Deferred inflows of resources: Unavailable revenue 3,095 909 - 953 - 4,957 3,634 Fund balance: Restricted 450,559 232,380 5,771 164,274 4,010 856,994 1,032,751 Total liabilities, deferred inflows of resources, and fund balance $454,108 $233,526 $5,871 $165,783 $4,960 $864,248 $1,038,325 Total Nonmajor Debt Service Funds 119 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 23 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement HRA TIF Debt Service 2022 2021 Revenues: General property taxes $319,795 $75,725 $ - $101,347 $ - $496,867 $573,309 Investment income (loss) (5,759) (4,301) (128) (2,341) (334) (12,863) (2,248) Total revenues 314,036 71,424 (128) 99,006 (334) 484,004 571,061 Expenditures: Debt service: Principal 370,000 105,000 55,000 90,000 475,000 1,095,000 1,050,000 Interest 21,348 11,925 9,975 8,300 146,213 197,761 221,903 Paying agent fees 349 298 273 648 1,295 2,863 3,073 Total expenditures 391,697 117,223 65,248 98,948 622,508 1,295,624 1,274,976 Revenues over (under) expenditures (77,661) (45,799) (65,376) 58 (622,842) (811,620) (703,915) Other financing sources (uses): Transfers in - - 11,650 - 624,213 635,863 673,938 Total other financing sources (uses) 0 0 11,650 0 624,213 635,863 673,938 Net change in fund balance (77,661) (45,799) (53,726) 58 1,371 (175,757) (29,977) Fund balance - January 1 528,220 278,179 59,497 164,216 2,639 1,032,751 1,062,728 Fund balance - December 31 $450,559 $232,380 $5,771 $164,274 $4,010 $856,994 $1,032,751 Total Nonmajor Debt Service Funds 120 NONMAJOR CAPITAL PROJECT FUNDS The City’s Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). The City of St. Anthony, Minnesota had the following Capital Project Funds during the year: Infrastructure Improvement Fund (509) was established to provide funding for street improvement projects. Park Improvement Fund (501) accounts for the revenues and expenditures associated with the renovations and refurbishing of the City’s park system. Capital Equipment Fund (401) is used by all City Departments and accounts for the annual purchases of capital equipment. Building Improvement Fund (510) was established to provide funding for existing City owned building improvements and renovations. 121 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 24 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 Infrastructure Fund Park Improvement Capital Equipment Fund Building Improvement Fund 2022 2021 Assets Cash and investments $1,045,590 $457,433 $1,069,436 $569,612 $3,142,071 $2,564,548 Due from other governmental units - - - - - 2,194 Accounts receivable - net - - 35,366 - 35,366 2,110 Property taxes receivable: - Delinquent 455 27 2,712 786 3,980 2,476 Due from county 232 20 1,104 315 1,671 3,314 Prepaid items - - 1,100 - 1,100 33,207 Special assessment receivable 3,174 - - - 3,174 4,760 Total assets $1,049,451 $457,480 $1,109,718 $570,713 $3,187,362 $2,612,609 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $13 $5,859 $1,252 $ - $7,124 $28,061 Due to other governmental units - - 203 62 265 - Interfund loan payable 11,240 186,614 - - 197,854 198,923 Total liabilities 11,253 192,473 1,455 62 205,243 226,984 Deferred inflows of resources: Unavailable revenue 3,628 27 2,712 786 7,153 7,236 Fund balance (deficit): Nonspendable - - 1,100 - 1,100 33,207 Assigned 1,034,570 264,980 1,104,451 569,865 2,973,866 2,345,182 Total fund balance (deficit)1,034,570 264,980 1,105,551 569,865 2,974,966 2,378,389 Total liabilities, deferred inflows of resources, and fund balance $1,049,451 $457,480 $1,109,718 $570,713 $3,187,362 $2,612,609 Total Nonmajor Capital Project Funds 122 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 25 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Infrastructure Fund Park Improvement Capital Equipment Fund Building Improvement Fund 2022 2021 Revenues: General property taxes $64,380 $4,947 $305,385 $87,202 $461,914 $425,817 Special assessments 1,846 - - - 1,846 2,095 Investment income (loss)(15,636) (7,112) (15,001) (13,866) (51,615) (8,416) Contributions and donations - - 12 - 12 263,025 Refunds and reimbursements - - 1,950 - 1,950 474 Total revenues 50,590 (2,165) 292,346 73,336 414,107 682,995 Expenditures: Current: Public works 50,123 - - - 50,123 93,199 Parks and recereation - 13,336 - - 13,336 181,251 Capital outlay - 4,022 675,978 290,860 970,860 334,011 Debt service: Interest 886 4,552 - - 5,438 3,245 Total expenditures 51,009 21,910 675,978 290,860 1,039,757 611,706 Revenues over (under) expenditures (419) (24,075) (383,632) (217,524) (625,650) 71,289 Other financing sources (uses): Sale of capital assets - - 96,506 - 96,506 19,091 Transfers in 447,047 152,000 530,921 105,474 1,235,442 434,694 Transfers out (98,071) - (11,650) - (109,721) (314,178) Total other financing sources (uses)348,976 152,000 615,777 105,474 1,222,227 139,607 Net change in fund balance 348,557 127,925 232,145 (112,050) 596,577 210,896 Fund balance (deficit) - January 1 686,013 137,055 873,406 681,915 2,378,389 2,167,493 Fund balance (deficit) - December 31 $1,034,570 $264,980 $1,105,551 $569,865 $2,974,966 $2,378,389 Total Nonmajor Capital Project Funds 123 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 230 POLICE FORFEITURE FUND Statement 26 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2021 Original Final Actual Actual Revenues: Forfeiture and confiscation $5,250 $5,250 $44,531 $7,531 Investment income 75 75 (1,713) (248) Total revenues 5,325 5,325 42,818 7,283 Expenditures: Public safety: Current: Supplies 4,350 4,350 8,712 18,530 Other services and charges 4,500 4,500 4,000 4,000 Total expenditures 8,850 8,850 12,712 22,530 Revenues over (under) expenditures ($3,525) ($3,525) 30,106 (15,247) Fund balance - January 1 39,084 54,331 Fund balance - December 31 $69,190 $39,084 2022 Budgeted Amounts 124 CITY OF ST. ANTHONY, MINNESOTA SPECIAL REVENUE FUND - 301 HRA FUND Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2021 Original Final Actual Actual Revenues: General property taxes $205,226 $205,226 $208,746 $197,712 Refunds and reimbursements 500 500 101 230 Investment income 75 75 (11,138) (403) Total revenues 205,801 205,801 197,709 197,539 Expenditures: Housing and redevelopment: Current: Personal services 117,782 117,782 115,681 112,407 Contractual services 54,240 54,240 41,257 18,064 Total expenditures 172,022 172,022 156,938 130,471 Revenues over expenditures 33,779 33,779 40,771 67,068 Other financing sources (uses): Sale of city property - - 511,991 - Total other financing sources (uses) 0 0 511,991 0 Net change in fund balance $33,779 $33,779 552,762 67,068 Fund balance - January 1 187,286 120,218 Fund balance - December 31 $740,048 $187,286 2022 Budgeted Amounts 125 - This page intentionally left blank - 126 SUPPLEMENTARY FINANCIAL INFORMATION 127 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET STREET IMPROVEMENT DEBT SERVICE FUND December 31, 2022 With Comparative Totals For December 31, 2021 Prior to 2008 Street Improvement Bonds Fund 2008 Street Improvement Bond Fund 2009 Street Improvement Bond Fund 2010 Street Improvement Bond Fund 2011 Street Improvement Bond Fund 2012 Street Improvement Bond Fund 2013 Street Improvement Bond Fund Assets Cash and investments $173,796 $166,146 $204,046 $94,965 $155,685 $277,264 $174,180 Property taxes receivable: Delinquent 2,132 1,502 1,699 842 1,075 1,056 954 Due from county 621 601 737 401 442 924 402 Special assessments receivable 9,193 - 23,471 9,969 30,554 116,876 62,850 Total assets $185,742 $168,249 $229,953 $106,177 $187,756 $396,120 $238,386 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $150 $475 $125 $175 $150 $150 $225 Due to other governments - 117 - 36 80 112 65 Deposits payable - - - - - - - Total liabilities 150 592 125 211 230 262 290 Deferred inflows of resources: Unavailable revenue 11,324 1,502 25,171 10,811 31,629 117,932 63,804 Fund balance: Restricted 174,268 166,155 204,657 95,155 155,897 277,926 174,292 Total liabilities, deferred inflows of resources, and fund balance (deficit) $185,742 $168,249 $229,953 $106,177 $187,756 $396,120 $238,386 128 Exhibit 1 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund 2016 Street Improvement Bond Fund 2017 Street Improvement Bond Fund 2018 Street Improvement Bond Fund 2019 Street Improvement Bond Fund 2020 Street Improvement Bond Fund 2021 Street Improvement Bond Fund 2022 Street Improvement Bond Fund 2022 2021 $168,569 $313,608 $239,817 $256,727 $433,165 $102,355 $473,540 $214,488 $86,391 $3,534,742 $4,015,795 - 1,309 1,373 781 874 1,351 700 1,712 752 - 18,112 12,220 633 527 308 240 581 249 848 1,108 - 8,622 17,073 78,377 133,189 27,328 159,369 202,493 - 200,185 286,296 266,513 1,606,663 1,510,851 $248,888 $448,697 $268,234 $417,210 $637,590 $103,304 $676,285 $502,644 $352,904 $5,168,139 $5,555,939 $575 $475 $475 $125 $475 $1,489 $3,097 $250 $ - $8,411 $4,235 89 119 51 118 87 70 59 - - 1,003 - - 7,681 - - - - - - - 7,681 7,534 664 8,275 526 243 562 1,559 3,156 250 0 17,095 11,769 79,686 134,562 28,109 160,243 203,843 700 201,898 287,048 266,513 1,624,775 1,522,353 168,538 305,860 239,599 256,724 433,185 101,045 471,231 215,346 86,391 3,526,269 4,021,817 $248,888 $448,697 $268,234 $417,210 $637,590 $103,304 $676,285 $502,644 $352,904 $5,168,139 $5,555,939 Street Improvement Debt Service Fund 129 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE STREET IMPROVEMENT DEBT SERVICE FUND For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Prior to 2008 Street Improvement Bonds Fund 2008 Street Improvement Bond Fund 2009 Street Improvement Bond Fund 2010 Street Improvement Bond Fund 2011 Street Improvement Bond Fund 2012 Street Improvement Bond Fund 2013 Street Improvement Bond Fund Revenues: General property taxes $104,119 $166,147 $185,815 $111,172 $122,238 $98,701 $111,405 Special assessments 9,155 - 12,282 3,467 9,598 23,841 17,704 Investment income (loss) (11,821) (1,437) (1,865) (552) (1,816) (4,742) (2,298) Total revenues 101,453 164,710 196,232 114,087 130,020 117,800 126,811 Expenditures: Public works: Professional service 65 - 277 201 222 253 219 Debt service: Principal 395,000 150,000 170,000 90,000 100,000 150,000 110,000 Interest 7,789 11,138 19,050 17,600 24,800 25,775 20,189 Paying agent fees 323 647 125 175 150 150 225 Issuance costs - - - - - - - Total expenditures 403,177 161,785 189,452 107,976 125,172 176,178 130,633 Revenues over (under) expenditures (301,724) 2,925 6,780 6,111 4,848 (58,378) (3,822) Other financing sources (uses): Bonds issued - - - - - - - Refunding bonds issued - - - - - - - Payment to refunding bond escrow agent - - - - - - - Premium on bonds issued - - - - - - - Transfers in 86,870 - - - - - - Transfers out (533,917) - - - - - - Total other financing sources (uses) (447,047) 0 0 0 0 0 0 Net change in fund balance (748,771) 2,925 6,780 6,111 4,848 (58,378) (3,822) Fund balance - January 1 923,039 163,230 197,877 89,044 151,049 336,304 178,114 Fund balance - December 31 $174,268 $166,155 $204,657 $95,155 $155,897 $277,926 $174,292 130 Exhibit 2 2014 Street Improvement Bond Fund 2015 Street Improvement Bond Fund 2016 Street Improvement Bond Fund 2017 Street Improvement Bond Fund 2018 Street Improvement Bond Fund 2019 Street Improvement Bond Fund 2020 Street Improvement Bond Fund 2021 Street Improvement Bond Fund 2022 Street Improvement Bond Fund 2022 2021 $153,473 $145,511 $85,040 $65,595 $160,798 $68,553 $235,427 $153,933 $ - $1,967,927 $1,913,242 15,606 30,968 5,211 36,336 31,678 - 25,314 45,946 34,106 301,212 318,182 (1,609) (4,906) (4,317) (4,721) (7,513) (746) (2,283) (2,113) - (52,739) (9,073) 167,470 171,573 85,934 97,210 184,963 67,807 258,458 197,766 34,106 2,216,400 2,222,351 243 431 185 247 244 173 272 231 - 3,263 4,628 135,000 165,000 90,000 155,000 155,000 60,000 150,000 - - 2,075,000 2,105,000 37,313 41,963 23,238 62,175 76,375 35,400 72,350 43,913 - 519,068 539,854 575 475 475 125 475 150 475 423 647 5,615 3,582 - - - - - - - - - - 29,531 173,131 207,869 113,898 217,547 232,094 95,723 223,097 44,567 647 2,602,946 2,682,595 (5,661) (36,296) (27,964) (120,337) (47,131) (27,916) 35,361 153,199 33,459 (386,546) (460,244) - - - - - - - - 49,849 49,849 25,658 - - - - - - - - - - 885,000 - - - - - - - - - - (885,000) - - - - - - - - - - 51,790 - - - - - 41,386 238,739 4,988 3,083 375,066 156,728 - - - - - - - - - (533,917) - 0 0 0 0 0 41,386 238,739 4,988 52,932 (109,002) 234,176 (5,661) (36,296) (27,964) (120,337) (47,131) 13,470 274,100 158,187 86,391 (495,548) (226,068) 174,199 342,156 267,563 377,061 480,316 87,575 197,131 57,159 - 4,021,817 4,247,885 $168,538 $305,860 $239,599 $256,724 $433,185 $101,045 $471,231 $215,346 $86,391 $3,526,269 $4,021,817 Street Improvement Debt Service Fund 131 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 3 HRA TIF IMPROVEMENTS FUND December 31, 2022 With Comparative Totals For December 31, 2021 Chandler Apache Apache Place (Walmart) (Cub Foods)Eliminations 2022 2021 Assets Cash and investments $202,513 $4,431,074 $433,450 $ - $5,067,037 $3,733,601 Property taxes receivable: Delinquent - 8,060 - - 8,060 9,557 Due from county - 1,265 - - 1,265 (149) Prepaid expenses - 552 - - 552 528 Interfund loan receivable 646,850 - 722,566 (1,369,416) - - Land held for resale - 378,008 - - 378,008 370,356 Total assets $849,363 $4,818,959 $1,156,016 ($1,369,416) $5,454,922 $4,113,893 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $750 $2,045,377 $ - $ - $2,046,127 $939,678 Due to other governments - 2,076 750 - 2,826 - Deposits payable - 70,758 - - 70,758 73,458 Interfund loans payable - 2,328,742 - (1,369,416) 959,326 959,326 Total liabilities 750 4,446,953 750 (1,369,416) 3,079,037 1,972,462 Deferred inflows of resources: Unavailable revenue - 8,060 - - 8,060 9,557 Fund balance (deficit): Nonspendable - 552 - - 552 528 Restricted 848,613 363,394 1,155,266 - 2,367,273 2,131,346 Total fund balance (deficit)848,613 363,946 1,155,266 0 2,367,825 2,131,874 Total liabilities, deferred inflows of resources, and fund balance (deficit) $849,363 $4,818,959 $1,156,016 ($1,369,416) $5,454,922 $4,113,893 Tax Increment Financing Districts Improvements Total HRA TIF 132 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES Exhibit 4 IN FUND BALANCE HRA TIF IMPROVEMENTS FUND For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Chandler Apache Apache Place (Walmart) (Cub Foods) 2022 2021 Revenues: Tax increment collections $ - $2,273,952 $ - $2,273,952 $2,474,570 Investment income (loss) 21,713 (72,551) 19,482 (31,356) 47,200 Refunds and reimbursements - 2,320 - 2,320 13,720 Total revenues 21,713 2,203,721 19,482 2,244,916 2,535,490 Expenditures: General government - 27,916 - 27,916 31,793 Housing and redevelopment 4,417 193,009 4,416 201,842 120,021 Debt service: Interest - 93,150 - 93,150 93,150 Construction/acquisition costs - 409 - 409 - Developer incentives - 1,046,435 - 1,046,435 975,485 Total expenditures 4,417 1,360,919 4,416 1,369,752 1,220,449 Revenues over expenditures 17,296 842,802 15,066 875,164 1,315,041 Other financing sources (uses): Transfers out (3,000) (630,213) (6,000) (639,213) (621,488) Net change in fund balance 14,296 212,589 9,066 235,951 693,553 Fund balance (deficit) - January 1 834,317 151,357 1,146,200 2,131,874 1,438,321 Fund balance (deficit) - December 31 $848,613 $363,946 $1,155,266 $2,367,825 $2,131,874 Tax Increment Financing Districts Improvements Total HRA TIF 133 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 5 STREET IMPROVEMENT PROJECT FUND December 31, 2022 With Comparative Totals For December 31, 2021 2019 Street Improvement Project Fund 2020 Street Improvement Project Fund 2021 Street Improvement Project Fund 2022 Street Improvement Project Fund 2022 2021 Assets Cash and investments $ - $ - $222,434 $365,526 $587,960 $1,430,346 Due from other governmental units - - 27,733 27,733 55,466 50,000 Accounts receivable - net - - - - - 2,500 Special assessments receivable - - - 56,789 56,789 45,501 Total assets $0 $0 $250,167 $450,048 $700,215 $1,528,347 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $ - $572 $572 $24,564 Contracts payable - - 24,283 94,058 118,341 997,559 Unearned revenue - - - - - 25,000 Interfund payable - - - - - 194,094 Total liabilities 0 0 24,283 94,630 118,913 1,241,217 Deferred inflows of resources: Unavailable revenue - - - 56,789 56,789 45,502 Fund balance (deficit): Restricted - - - 282,711 282,711 171,860 Assigned - - 225,884 15,918 241,802 69,768 Unassigned - - - - - - Total fund balance (deficit) - - 225,884 298,629 524,513 241,628 Total liabilities and fund balance $0 $0 $250,167 $450,048 $700,215 $1,528,347 Total Street Improvement Project Fund 134 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND Exhibit 6 CHANGES IN FUND BALANCE STREET IMPROVEMENT PROJECT FUND For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2019 Street Improvement Project Fund 2020 Street Improvement Project Fund 2021 Street Improvement Project Fund 2022 Street Improvement Project Fund 2022 2021 Revenues: Intergovernmental $ - $ - $2,733 $27,733 $30,466 $27,674 Special assessments - 19,718 - 132,162 151,880 195,159 Investment income (loss) (14,964) (5,289) 2,245 7,598 (10,410) (582) Miscellaneous 4,497 - 8,530 - 13,027 2,500 Total revenues (10,467) 14,429 13,508 167,493 184,963 224,751 Expenditures: Debt service: Issuance costs - - - 78,957 78,957 56,649 Construction/acquisition costs - 18,122 - 2,045,341 2,063,463 2,909,900 Total expenditures 0 18,122 0 2,124,298 2,142,420 2,966,549 Revenues over (under) expenditures (10,467) (3,693) 13,508 (1,956,805) (1,957,457) (2,741,798) Other financing sources (uses): Bonds issued - - - 2,335,151 2,335,151 2,059,342 Premium on bonds issued - - - 15,093 15,093 85,250 Transfers in - - 59,752 110,471 170,223 - Transfers out (41,386) (238,739) - - (280,125) - Total other financing sources (uses) (41,386) (238,739) 59,752 2,460,715 2,240,342 2,144,592 Net change in fund balance (51,853) (242,432) 73,260 503,910 282,885 (597,206) Fund balance (deficit) - January 1 51,853 242,432 152,624 (205,281) 241,628 838,834 Fund balance (deficit) - December 31 $0 $0 $225,884 $298,629 $524,513 $241,628 Total Street Improvement Project Fund 135 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 7 HRA TIF DEBT SERVICE FUND December 31, 2022 With Comparative Totals For December 31, 2021 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2022 2021 Assets Cash and investments $2,363 $2,597 $4,960 $3,589 Liabilities and Fund Balance Liabilities: Accounts payable $475 $475 $950 $950 Fund balance: Restricted 1,888 2,122 4,010 2,639 Total liabilities and fund balance $2,363 $2,597 $4,960 $3,589 HRA TIF Debt Service Fund Totals 136 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES Exhibit 8 IN FUND BALANCE HRA TIF DEBT SERVICE FUND For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2022 2021 Revenues ($236) ($98) ($334) ($13) Expenditures: Debt service: Principal 260,000 215,000 475,000 450,000 Interest 72,813 73,400 146,213 156,488 Paying agent fees 647 648 1,295 1,328 Total expenditures 333,460 289,048 622,508 607,816 Revenues over (under) expenditures (333,696) (289,146) (622,842) (607,829) Other financing sources (uses): Transfers in 333,813 290,400 624,213 606,488 Net change in fund balance 117 1,254 1,371 (1,341) Fund balance - January 1 1,771 868 2,639 3,980 Fund balance - December 31 $1,888 $2,122 $4,010 $2,639 HRA TIF Debt Service Fund Totals 137 CITY OF ST. ANTHONY, MINNESOTA SCHEDULE OF REVENUES, EXPENSES AND CHANGES Exhibit 9 IN FUND NET POSITION WATER/SEWER/WATER PLANT ENTERPRISE FUND For The Year Ended December 31, 2022 With Comparative Totals For December 31, 2021 Water/Water Plant Sewer 2022 2021 Operating revenues: Charges for services $1,340,098 $1,337,971 $2,678,069 $2,614,535 Total operating revenues 1,340,098 1,337,971 2,678,069 2,614,535 Operating expenses: Personal services 615,377 334,675 950,052 858,238 Supplies 132,419 11,846 144,265 105,440 Contracted services and other 165,492 45,222 210,714 146,449 Treatment charges (MCES) - 711,020 711,020 719,437 Utilities/insurance/other 197,919 31,702 229,621 212,960 Total operating expenses, excluding depreciation 1,111,207 1,134,465 2,245,672 2,042,524 Depreciation 562,192 88,048 650,240 612,059 Total operating expenses 1,673,399 1,222,513 2,895,912 2,654,583 Operating income (loss) ($333,301) $115,458 (217,843) (40,048) Nonoperating revenues (expenses): Investment income (51,770) (7,698) Interest expense (2,300) (4,064) Miscellaneous income 22,482 11,361 Total nonoperating revenues (expenses) (31,588) (401) Income (loss) before capital contributions and transfers (249,431) (40,449) Capital contributions 845,081 1,002,344 Change in net position 595,650 961,895 Net position - January 1 17,437,699 16,475,804 Net position - December 31 $18,033,349 $17,437,699 Operations Totals 138 III. STATISTICAL SECTION (UNAUDITED) This part of the City of St. Anthony, Minnesota’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City of St. Anthony, Minnesota’s overall financial health. Contents Tables Financial Trends These tables contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Tables 1-4 Revenue Capacity These tables contain information to help the reader assess the City’s most significant local revenue source, the property tax. Tables 5-8 Debt Capacity These tables present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Tables 9-12 Demographic and Economic Information These tables offer demographic and economic indicators to help the reader understand the enviornment within which the City’s financial activities take place. Tables 13-14 Operating Information These tables contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. Tables 15-17 Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. 139 CITY OF ST. ANTHONY, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2013 2014 2015 2016 Governmental activities: Net invested in capital assets $16,217,013 $14,953,582 $10,604,121 $10,024,670 Restricted for: Debt service 3,347,895 5,717,140 6,147,172 6,282,913 Redevelopment activity - - 12,411 - Pensions - - - 197,073 Public safety 21,528 23,471 19,283 25,634 Unrestricted (5,239,277) (9,513,189) (10,391,885) 1,689,042 Total governmental activities net position $14,347,159 $11,181,004 $6,391,102 $18,219,332 Business-type activities: Net invested in capital assets $5,605,845 $6,036,192 $12,143,158 $14,011,168 Unrestricted 5,965,067 5,570,360 5,649,685 3,171,781 Total business-type activities net position $11,570,912 $11,606,552 $17,792,843 $17,182,949 Primary government: Net invested in capital assets $21,822,858 $20,989,774 $22,747,279 $24,035,838 Restricted for: Debt service 3,347,895 5,717,140 6,147,172 6,282,913 Redevelopment activity - - 12,411 - Pensions - - - 197,073 Public safety 21,528 23,471 19,283 25,634 Unrestricted 725,790 (3,942,829) (4,742,200) 4,860,823 Total primary government net position $25,918,071 $22,787,556 $24,183,945 $35,402,281 Note: GASB 65 was implemented in 2013. Net position was restated for 2012 to reflect the expensing of bond issuance costs in the year of issuance. Net position for years prior to 2012 was not restated. Note: GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. Note: The City closed the Stormwater Improvement Capital Project Fund during 2015 and transferred the majority of the net position to the Stormwater Utility Fund. Fiscal Year 140 Table 1 2017 2018 2019 2020 2021 2022 $10,274,946 $10,422,047 $9,746,635 $10,349,363 $10,068,970 $10,898,178 6,537,390 7,097,594 6,339,750 6,406,488 6,255,605 5,612,586 - - - - - - 219,561 200,075 177,502 247,024 360,702 421,414 23,865 31,141 39,505 46,912 39,084 69,190 (5,330,379) (5,776,551) (4,223,098) (776,593) 2,413,816 3,037,144 $11,725,383 $11,974,306 $12,080,294 $16,273,194 $19,138,177 $20,038,512 $22,151,578 $23,179,624 $24,525,702 $23,721,266 $24,563,962 $24,834,573 3,529,653 3,483,257 3,569,879 4,072,013 4,738,737 5,136,864 $25,681,231 $26,662,881 $28,095,581 $27,793,279 $29,302,699 $29,971,437 $32,426,524 $33,601,671 $34,272,337 $34,070,629 $34,632,932 $35,732,751 6,537,390 7,097,594 6,339,750 6,406,488 6,255,605 5,612,586 - - - - - - 219,561 200,075 177,502 247,024 360,702 421,414 23,865 31,141 39,505 46,912 39,084 69,190 (1,800,726) (2,293,294) (653,219) 3,295,420 7,152,553 8,174,008 $37,406,614 $38,637,187 $40,175,875 $44,066,473 $48,440,876 $50,009,949 Fiscal Year 141 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2013 (2)2014 2015 2016 Expenses Governmental activities: General government $1,029,147 $1,116,100 $1,342,360 $1,319,451 Public safety 4,488,023 4,644,185 4,757,637 7,053,595 Public works 2,565,860 2,711,291 2,741,411 4,134,783 Parks and recreation 569,254 608,966 592,892 472,436 Services to other cities - - - - Nondepartmental - - - - Housing and redevelopment 565,303 575,738 596,444 793,834 Interest on long-term debt 1,217,646 1,044,635 845,856 794,584 Total governmental activities expenses 10,435,233 10,700,915 10,876,600 14,568,683 Business-type activities: Liquor 6,479,809 5,879,240 5,728,876 5,676,892 Water 859,112 845,396 869,446 1,083,240 Water Filtration and Purification 124,505 239,074 185,964 - Sewer 1,019,421 1,069,876 1,051,261 1,048,937 Stormwater - - - 191,655 Total business-type activities expenses 8,482,847 8,033,586 7,835,547 8,000,724 Total primary government expenses $18,918,080 $18,734,501 $18,712,147 $22,569,407 Program revenues Governmental activities: Charges for services: Services to other cities $ - $ - $ - $ - Other activities 2,506,369 2,374,306 2,414,912 2,212,526 Operating grants and contributions 585,950 499,538 499,126 10,969,360 Capital grants and contributions 780,072 1,070,975 1,367,745 1,643,911 Total governmental activities program revenues 3,872,391 3,944,819 4,281,783 14,825,797 Business-type activities: Charges for services: Liquor 6,908,143 6,078,039 5,893,916 5,822,783 Water 933,051 879,007 900,412 925,577 Water filtration and purification - - 45,655 - Sewer 947,632 921,242 953,568 1,012,979 Stormwater - - - 192,748 Operating grants and contributions - - - 130,932 Capital grants and contributions - - - 1,166,747 Total business-type activities program revenues 8,788,826 7,878,288 7,793,551 9,251,766 Total primary government program revenues $12,661,217 $11,823,107 $12,075,334 $24,077,563 Fiscal Year 142 Table 2 Page 1 of 2 2017 2018 2019 2020 2021 2022 $1,337,698 $1,234,274 $1,587,360 $1,374,449 $1,349,129 $1,380,846 6,018,470 4,886,105 4,789,232 5,125,951 4,840,277 5,853,162 2,988,291 3,005,637 2,960,916 2,915,895 2,947,640 3,135,972 472,700 488,132 536,095 438,126 646,257 546,537 - - - - - - - - - - - 45,609 787,775 1,189,659 975,246 1,276,274 1,217,386 1,412,758 738,914 795,625 803,042 680,448 695,343 697,886 12,343,848 11,599,432 11,651,891 11,811,143 11,696,032 13,072,770 5,591,683 5,617,377 5,903,275 6,605,500 6,765,260 6,601,179 1,176,102 1,573,857 1,617,354 1,554,879 1,377,483 1,632,017 - - - - - - 1,144,273 1,243,591 1,253,102 1,202,141 1,240,813 1,305,957 244,135 249,911 308,786 367,578 337,796 419,510 8,156,193 8,684,736 9,082,517 9,730,098 9,721,352 9,958,663 $20,500,041 $20,284,168 $20,734,408 $21,541,241 $21,417,384 $23,031,433 $ - $ - $ - $ - $ - $ - 2,281,654 1,602,792 1,847,264 1,722,036 3,041,161 1,981,023 630,316 560,924 494,389 1,211,012 741,397 610,856 1,604,844 817,077 633,142 1,862,319 624,283 633,832 4,516,814 2,980,793 2,974,795 4,795,367 4,406,841 3,225,711 5,714,000 5,867,452 6,160,868 7,025,468 7,260,590 7,041,690 969,638 1,010,722 999,082 1,133,458 1,311,611 1,362,580 - - - - - - 1,122,738 1,162,167 1,211,209 1,224,881 1,314,285 1,337,971 197,242 201,729 206,700 211,360 212,308 219,668 - - - - - - 569,716 126,991 - - - - 8,573,334 8,369,061 8,577,859 9,595,167 10,098,794 9,961,909 $13,090,148 $11,349,854 $11,552,654 $14,390,534 $14,505,635 $13,187,620 Fiscal Year 143 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2013 (2)2014 2015 2016 Net (expense) revenue: Governmental activities ($6,562,842) ($6,756,096)($6,594,817)$257,114 Business-type activities 305,979 (155,298)(41,996)1,251,042 Total primary government net (expense) revenue (6,256,863)(6,911,394)(6,636,813)1,508,156 General revenues and other changes in net position: Governmental activities: Taxes: Property taxes $5,703,707 $6,030,558 $5,893,900 $6,160,156 Tax increment collections 1,405,872 1,131,896 1,121,627 1,455,090 Grants and contributions 26,384 461,964 516,015 530,110 Unrestricted investment earnings 25,914 189,441 146,023 254,396 Other 389,785 104,113 172,913 1,207,375 Gain on sale of capital assets - 33,204 7,653 7,151 Transfers (809,238)(17,982)(6,053,216)1,956,838 Total governmental activities 6,742,424 7,933,194 1,804,915 11,571,116 Business-type activities: Unrestricted investment earnings 51,593 111,512 86,407 31,097 Other 66,478 61,444 88,664 64,805 Transfers 809,238 17,982 6,053,216 (1,956,838) Total business-type activities 927,309 190,938 6,228,287 (1,860,936) Total primary government $7,669,733 $8,124,132 $8,033,202 $9,710,180 Change in net position: Governmental activities $179,582 $1,177,098 ($4,789,902)$11,828,230 Business-type activities 1,233,288 35,640 6,186,291 (609,894) Total primary government $1,412,870 $1,212,738 $1,396,389 $11,218,336 (1) In 2011 the Water Filtration and Purification fund was reclassified to the Water and Sewer Proprietary Fund. (2) In 2013, services to other cities were reclassified to public safety expense. Note: GASB 65 was implemented in 2013. Governmental activity expenses were restated for 2012 to reflect the expensing of bond issuance costs in the year of issuance. Expenses for years prior to 2012 were not restated. Note: GASB 68 was implemented for 2015. Expenses for years prior to 2015 were not restated. Note: The City closed the Stormwater Improvement Capital Project Fund during 2015 and transferred the majority of the net position to the Stormwater Utility Fund. Note: The City closed the Water Filtration and Purification Fund during 2016 and transferred the majority of the net position to governmental activities. Fiscal Year 144 Table 2 Page 2 of 2 2017 2018 2019 2020 2021 2022 ($7,827,034)($8,618,639)($8,677,096)($7,015,776)($7,289,191)($9,847,059) 417,141 (315,675)(504,658)(134,931)377,442 3,246 (7,409,893)(8,934,314)(9,181,754)(7,150,707)(6,911,749)(9,843,813) $6,577,570 $7,128,703 $7,477,523 $7,946,178 $8,083,595 $8,462,357 1,530,093 1,870,589 2,060,375 2,077,137 2,470,757 2,272,455 535,422 559,437 561,062 613,302 640,386 1,002,881 234,572 286,519 492,834 318,653 47,420 (295,627) 407,269 225,774 15,468 40,768 49,285 55,291 34,775 48,529 - - - (7,986,616)(1,251,989)(1,824,178)212,638 (1,137,269)(749,963) 1,333,085 8,867,562 8,783,084 11,208,676 10,154,174 10,747,394 21,812 32,771 83,886 45,267 (11,911)(85,871) 72,713 12,565 29,294 - 6,620 1,400 7,986,616 1,251,989 1,824,178 (212,638)1,137,269 749,963 8,081,141 1,297,325 1,937,358 (167,371)1,131,978 665,492 $9,414,226 $10,164,887 $10,720,442 $11,041,305 $11,286,152 $11,412,886 ($6,493,949)$248,923 $105,988 $4,192,900 $2,864,983 $900,335 8,498,282 981,650 1,432,700 (302,302)1,509,420 668,738 $2,004,333 $1,230,573 $1,538,688 $3,890,598 $4,374,403 $1,569,073 Fiscal Year 145 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2013 2014 2015 2016 General Fund: Nonspendable $74,049 $91,136 $107,412 $115,482 Unassigned 2,074,490 2,384,345 2,338,600 2,204,185 Total general fund $2,148,539 $2,475,481 $2,446,012 $2,319,667 All other governmental funds: Nonspendable $49 $1,631 $2,157 $57,188 Restricted 2,002,737 7,627,714 6,491,789 6,907,253 Committed 33,015 78,180 94,107 105,503 Assigned 1,253,470 1,318,583 578,258 13,148,229 Unassigned (175,561)(2,407,745)(2,062,163)(1,693,729) Total all other governmental funds $3,113,710 $6,618,363 $5,104,148 $18,524,444 Fiscal Year 146 Table 3 2017 2018 2019 2020 2021 2022 $119,651 $126,304 $101,105 $159,782 $146,580 $164,687 2,280,463 2,381,460 2,489,685 3,238,208 3,730,206 3,840,170 $2,400,114 $2,507,764 $2,590,790 $3,397,990 $3,876,786 $4,004,857 $15,339 $97,687 $1,451 $2,969 $35,953 $4,650 7,002,918 7,466,883 7,176,386 7,955,365 7,396,858 7,102,437 125,069 124,355 102,948 201,822 337,173 895,109 6,568,756 5,374,785 5,502,668 6,513,862 6,632,453 6,715,192 (1,452,918) (1,409,874) (892,137) (524,166) - - $12,259,164 $11,653,836 $11,891,316 $14,149,852 $14,402,437 $14,717,388 Fiscal Year 147 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2013 (1) 2014 2015 2016 Revenues: General property taxes $5,657,416 $6,053,119 $5,897,070 $6,161,036 Tax increment collections 1,398,000 1,117,824 1,106,582 1,476,275 Licenses, fees and permits 342,390 351,102 296,465 304,079 Intergovernmental 792,477 1,464,479 1,644,481 2,283,016 Special assessments 587,191 491,988 621,931 570,549 Charges for services 1,932,268 1,787,611 1,879,520 1,701,246 Cable franchise fees 104,089 109,009 108,104 113,672 Fines and forfeits 129,363 126,584 130,823 93,529 Investment income 24,197 189,216 145,447 252,830 Contributions and donations 16,134 45,640 15,903 4,120 Miscellaneous 375,719 104,113 172,913 11,637,694 Total revenues 11,359,244 11,840,685 12,019,239 24,598,046 Expenditures: Current: General government 836,190 926,501 948,089 1,066,236 Public safety 4,174,754 4,357,563 4,352,048 5,164,270 Public works 1,042,876 1,001,378 1,043,791 1,051,747 Parks and recreation 420,826 463,057 446,684 409,979 Services to other cities - - - - Nondepartmental 56,117 59,265 40,139 38,421 Housing and redevelopment 150,070 143,863 119,294 156,312 Capital outlay 284,392 386,652 398,844 Debt service: Principal retirement 4,245,000 7,785,000 3,750,000 2,620,000 Interest 1,308,344 1,139,216 1,020,262 820,607 Paying agent fees 16,387 7,853 10,386 14,793 Professional service 6,682 17,104 16,971 16,339 Issuance costs 66,035 185,800 142,682 80,294 Construction/acquisition costs 1,618,986 2,959,264 3,750,269 4,867,870 Developer incentives 415,233 431,875 475,886 627,639 Total expenditures 14,641,892 19,902,361 16,503,153 17,333,351 Revenues over (under) expenditures (3,282,648) (8,061,676) (4,483,914) 7,264,695 Other financing sources (uses): Bonds issued 1,775,000 2,070,000 2,580,000 2,900,000 Refunding bonds issued - 4,970,000 4,310,000 - Redemption of refunded bonds - - - - Payment to refunded bond escrow agent - - (4,332,935) - Premium on debt issued 42,080 158,044 188,693 69,485 Sale of capital assets 25,244 13,390 25,860 15,186 Transfers in 2,021,913 1,908,166 2,069,259 4,003,953 Transfers out (1,482,913) (1,514,667) (1,900,647) (959,368) Total other financing sources(uses) 2,381,324 7,604,933 2,940,230 6,029,256 Net change in fund balance ($901,324) ($456,743) ($1,543,684) $13,293,951 Debt service as a percentage of noncapital expenditures 43.6% 54.2% 36.5% 25.7% Debt service as percentage of total expenditures 37.9% 44.8% 28.9% 19.8% (1) In 2013, services to other cities were reclassified to public safety expense. Fiscal Year 148 Table 4 2017 2018 2019 2020 2021 2022 $6,633,308 $7,107,947 $7,484,962 $7,932,488 $8,089,661 $8,438,461 1,541,874 1,861,251 2,093,697 2,076,472 2,474,570 2,273,952 358,230 295,955 268,565 318,232 1,116,447 530,924 1,925,460 1,136,456 1,595,355 3,181,190 1,066,555 1,471,972 589,332 658,532 463,256 377,937 520,805 460,873 1,732,288 1,097,940 1,153,385 1,186,119 1,679,720 1,221,419 115,079 101,612 97,200 95,517 103,768 96,099 76,057 85,538 96,292 87,539 120,694 118,558 233,668 284,452 485,833 313,955 48,456 (288,249) 102,340 16,046 1,550 1,050 263,635 6,174 407,269 217,071 253,239 75,397 69,817 69,314 13,714,905 12,862,800 13,993,334 15,645,896 15,554,128 14,399,497 1,119,746 1,048,214 1,327,603 1,225,447 1,188,512 1,226,942 5,346,521 4,861,358 4,698,695 5,169,275 5,437,381 5,312,282 1,034,427 1,208,232 1,071,071 944,755 878,009 971,898 406,748 431,091 474,430 403,034 635,920 516,460 - - - - 45,095 61,262 78,233 28,475 33,949 45,609 132,437 160,255 169,010 499,439 250,492 358,780 431,511 1,037,417 165,581 533,874 778,766 1,669,930 5,815,000 2,895,000 4,910,000 2,900,000 3,155,000 3,170,000 846,526 887,798 897,980 842,600 858,152 815,417 5,760 29,308 11,822 10,995 6,655 9,773 6,677 2,823 - - - - 104,887 42,563 71,382 72,756 86,180 77,662 9,908,037 2,720,619 1,970,296 2,485,227 2,943,077 2,063,945 649,910 1,029,217 804,391 782,009 975,485 1,046,435 25,853,282 16,415,157 16,650,494 15,897,886 17,227,578 17,285,133 (12,138,377)(3,552,357)(2,657,160)(251,990)(1,673,450)(2,885,636) 3,120,000 2,610,000 1,145,000 3,000,000 2,085,000 2,385,000 2,190,000 - 1,335,000 - 885,000 - - - - - - - - - - - (885,000) - 302,540 92,831 225,916 154,026 137,040 15,093 28,244 64,754 23,050 - 19,091 608,497 312,760 287,094 335,000 250,000 250,000 436,903 - - (86,300)(86,300)(86,300)(116,835) 5,953,544 3,054,679 2,977,666 3,317,726 2,404,831 3,328,658 ($6,184,833)($497,678)$320,506 $3,065,736 $731,381 $443,022 41.5%29.8%40.1%29.1%29.7%29.4% 25.8%23.0%34.9%23.5%5.0%4.8% Fiscal Year 149 CITY OF ST. ANTHONY, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Table 5 Last Ten Fiscal Years Commercial/Total Adjustments Adjusted Total Estimated Tax Capacity Payable Residential Industrial All Tax to Tax Tax Capacity Direct Tax Market as a Percent Year Property Property Other Capacity Capacily * Value Rate Value of EMV 2013 5,860,660 2,139,288 83,509 8,083,457 (802,123) 7,281,334 75.46% 721,227,600 1.12% 2014 5,863,304 2,146,080 78,927 8,088,311 (765,126) 7,323,185 77.16% 720,018,700 1.12% 2015 6,286,042 2,172,970 85,325 8,544,337 (607,841) 7,936,496 72.93% 760,404,500 1.12% 2016 7,352,669 2,105,556 94,478 9,552,703 (695,828) 8,856,875 67.64% 860,925,700 1.11% 2017 7,800,780 2,136,787 117,840 10,055,407 (751,642) 9,303,765 69.59% 906,848,000 1.11% 2018 8,225,455 2,301,748 121,376 10,648,579 (708,105) 9,940,474 70.02% 954,111,600 1.12% 2019 8,962,344 2,362,141 119,600 11,444,085 (1,027,837) 10,416,248 70.22% 1,023,687,200 1.12% 2020 9,800,198 2,337,325 118,670 12,256,193 (1,054,049) 11,202,144 68.02% 1,094,841,000 1.12% 2021 10,602,682 2,514,579 130,188 13,247,449 (1,319,311) 11,928,138 66.39% 1,176,094,300 1.13% 2022 11,254,876 2,336,244 153,142 13,744,262 (1,311,643) 12,432,619 63.22% 1,230,732,700 1.12% Source: Official Statements for the City of St. Anthony. (Hennepin and Ramsey Counties Combined) * Includes tax increment tax capacity and net fiscal disparities impact. 150 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES Table 6 Last Ten Fiscal Years City Fiscal Direct School Other Hennepin Year Rate District Districts County Total 2013 75.46% 38.87% 12.70% 49.46% 176.49% 2014 77.16% 33.09% 13.22% 49.96% 173.43% 2015 72.93% 29.95% 12.23% 46.40% 161.51% 2016 67.64% 33.13% 11.63% 45.36% 157.76% 2017 69.59% 33.43% 11.69% 44.09% 158.80% 2018 70.02% 37.56% 11.07% 42.81% 161.45% 2019 70.22% 36.01% 10.63% 41.86% 158.73% 2020 68.02% 33.82% 9.87% 41.08% 152.79% 2021 66.39% 31.31% 9.52% 38.54% 145.76% 2022 63.22% 28.81% 8.68% 34.54% 135.25% Source: Official Statements for the City of St. Anthony (Hennepin County) *Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners; for example, although the county property tax rates apply to all City property owners, other District rates apply only to the approximately one-third of City property owners whose property is located within that District's geographic boundaries. Overlapping Rates* 151 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Table 7 Current Year and Ten Years Ago Percentage of Total City Capacity Value Percentage Tax Tax of Total City Capacity Capacity Capacity Taxpayer Value Rank Value Rank Value St. Anthony Leased Housing Assoc. I $755,350 1 5.50% 315,158 2 3.68% L/L Equinox Associates LLC 420,164 2 3.06% 176,890 4 2.06% Inland Silver Lake Village LLC 420,074 3 3.06% 711,020 1 8.29% Autumn Woods Partners LP 306,875 4 2.23% 188,225 3 2.20% Northern Gopher Enterprises Inc 222,990 5 1.62% - - - St. Anthony Leased Housing Assoc. II 221,443 6 1.61% - - - Autumn Woods III LLC 142,413 7 1.04% - - - Landau - 3925 Pleasant LLC 142,175 8 1.03% - - - St. Anthony Shopping Center 136,250 9 0.99% 95,250 5 1.11% Chandler Place LP 133,659 10 0.97% 82,124 6 0.96% St. Anthony Nursing Home LP - - - 78,364 7 0.91% Landau - 3925 Pleasant LLC - - - 75,097 8 0.88% Herama Properties - - - 59,250 9 0.69% Hannay Harria Real Estate LLC - - - 51,750 10 0.60% Total $2,901,393 21.11% $1,833,128 21.38% Total All Property $13,744,262 $8,573,245 Source: Official Statements for the City of St. Anthony 20122022 152 CITY OF ST. ANTHONY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 8 Last Ten Fiscal Years Fiscal Taxes Collections Year Levied in Ended For The Percentage Subsequent Percentage December 31, Fiscal Year Amount of Levy Years Amount of Levy 2013 $5,426,789 $5,345,759 98.51% $26,941 $5,372,700 99.00% 2014 5,633,007 5,564,141 98.78% (35,583) 5,528,558 98.15% 2015 5,831,737 5,733,450 98.31% (9,206) 5,724,244 98.16% 2016 6,050,812 5,974,249 98.73% 23,753 5,998,002 99.13% 2017 6,450,785 6,400,683 99.22% 4,964 6,405,647 99.30% 2018 6,850,011 6,801,704 99.29% 278 6,801,981 99.30% 2019 7,311,453 7,226,085 98.83% 13,032 7,239,117 99.01% 2020 7,609,458 7,611,336 100.02% 18,468 7,629,804 100.27% 2021 7,865,595 7,836,798 99.63% 1,112 7,837,910 99.65% 2022 8,243,092 8,161,743 99.01% Sources: St. Anthony Finance Department Fiscal Year of the Levy Collected Within The Total Collections to Date Not Available 153 CITY OF ST. ANTHONY, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years G.O. G.O. Tax Lease G.O. Other Total Fiscal Improvement Reconstruction Increment Revenue Revenue G.O. Governmental Year Bonds Bonds Bonds Bonds Bonds Bonds Activities 2013 17,605,000 1,500,000 8,545,000 3,700,000 295,000 1,475,000 33,120,000 2014 16,910,000 2,695,000 7,920,000 3,415,000 150,000 1,285,000 32,375,000 2015 18,010,000 1,305,000 7,865,000 3,125,000 - 1,090,000 31,395,000 2016 19,280,000 1,170,000 7,450,000 2,825,000 - 950,000 31,675,000 2017 18,920,000 1,035,000 7,065,000 2,510,000 - 1,640,000 31,170,000 2018 19,685,000 895,000 6,660,000 2,185,000 - 1,460,000 30,885,000 2019 18,330,000 755,000 6,240,000 1,850,000 - 1,280,000 28,455,000 2020 18,400,000 610,000 5,795,000 1,505,000 - 2,245,000 28,555,000 2021 18,530,000 465,000 5,345,000 1,150,000 - 1,995,000 27,485,000 2022 18,995,000 315,000 4,870,000 780,000 - 1,740,000 26,700,000 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: St. Anthony Finance Department *See Table 13 for Population and Personal Income Data. * See Table 5 for Adjusted Tax Capacity data Governmental Activities 154 Table 9 Sewer/ Water Percentage Sewer/ Total Bonds Total Percentage of Adjusted Water Business-Type Per Primary of Personal Per Tax Capacity Bonds Activities Customer Government Income Capita* 454.86% 1,440,000 1,440,000 626 34,560,000 10.14% 3,889 442.09% 1,330,000 1,330,000 578 33,705,000 10.05% 3,760 395.58% 1,215,000 1,215,000 528 32,610,000 9.41% 3,532 357.63% 1,100,000 1,100,000 478 32,775,000 9.37% 3,533 335.03% 975,000 975,000 424 32,145,000 8.59% 3,494 310.70% 845,000 845,000 367 31,730,000 8.12% 3,500 273.18% 715,000 715,000 311 29,170,000 7.65% 3,234 254.91% 580,000 580,000 242 29,135,000 6.67% 3,147 230.42% 440,000 440,000 183 27,925,000 5.78% 3,044 214.76% 300,000 300,000 125 27,000,000 Not Available Business-Type Activities 155 - This page intentionally left blank - 156 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 10 As of December 31, 2022 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable* Debt Debt repaid with property taxes: (1) School Districts: ISD No. 282 $26,525,000 89.8794% $23,840,511 Counties: Hennepin 1,065,595,000 0.3847% 4,099,344 Ramsey 138,095,000 0.4880%673,904 Other: Metropolitan Council 166,860,000 0.2442%407,472 Three Rivers Park District 51,320,000 0.5499%282,226 Subtotal - overlapping debt 29,303,457 City direct debt (2)26,700,000 Total direct and overlapping debt $56,003,457 Sources: (1) Official Statements for City of St. Anthony (2) St. Anthony Finance Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. *For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 157 CITY OF ST. ANTHONY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Market value Debt limit (3% of market value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin 2013 2014 2015 2016 Debt limit 20,237,210$ 20,226,682$ 21,500,127$ 24,651,217$ Total net debt applicable to limit 4,450,131 4,031,063 3,615,981 3,176,798 Legal debt margin 15,787,079$ 16,195,619$ 17,884,147$ 21,474,419$ Total net debt applicable to the limit as a percentage of debt limit 21.99% 19.93% 16.82% 12.89% Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices Legal Debt Margin Calculation for Fiscal Year 2022 158 Table 11 $1,230,732,700 36,921,981 4,645,000 - 4,645,000 $32,276,981 2017 2018 2019 2020 2021 # 2022 26,027,076$ 27,507,354$ 30,710,616$ 32,845,230$ $35,282,829 36,921,981$ 3,244,392 2,804,561 3,640,000 6,095,000 5,460,000 4,645,000 22,782,684$ 24,702,793$ 27,070,616$ 26,750,230$ $29,822,829 32,276,981$ 12.47% 10.20% 11.85% 18.56% 15.47% 12.58% Legal Debt Margin Calculation for Fiscal Year 2022 159 CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Last Ten Fiscal Years Stormwater Less Net Fiscal Service Operating Available Year Charges Expenses Revenue Principal Interest Coverage 2013 $152,750 $0 $152,750 $135,000 $10,875 105% 2014 146,423 - 146,423 145,000 6,675 97% 2015 9,619 - 9,619 150,000 2,250 6% 2016 - - - - - - 2017 - - - - - - 2018 - - - - - - 2019 - - - - - 2020 - - - - - - 2021 - - - - - - 2022 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation, or amortization expenses. Storm Sewer Revenue Bonds Debt Service 160 Table 12 Page 1 of 2 Utility Less Net Service Operating Available Charges Expenses Revenue Principal Interest Coverage $1,883,034 $1,577,518 $305,516 $1,545,000 $48,458 19% 1,800,249 1,603,359 196,890 110,000 26,783 144% 1,853,980 1,584,133 269,847 115,000 25,450 192% 1,938,556 1,718,418 220,138 115,000 23,150 159% 2,092,376 1,925,773 166,603 125,000 19,708 115% 2,172,889 2,219,507 (46,618) 130,000 18,200 (31%) 2,210,291 2,230,804 (20,513) 130,000 15,600 (14%) 2,355,173 2,156,840 198,333 135,000 12,950 134% 2,614,535 2,042,524 572,011 140,000 10,200 381% 2,678,069 2,245,672 432,397 140,000 7,400 293% Water and Sewer Revenue Bonds Debt Service 161 CITY OF ST. ANTHONY, MINNESOTA PLEDGED REVENUE COVERAGE Table 12 Last Ten Fiscal Years Page 2 of 2 Special Tax Assessment Increment Collections Principal Interest Coverage Collections Principal Interest Coverage $587,191 $3,695,000 $717,234 13% $1,398,000 $415,000 $459,830 160% 491,988 3,350,000 590,257 12% 1,117,824 4,290,000 445,969 24% 621,931 3,355,000 585,636 16% 1,106,582 4,365,000 336,268 24% 570,549 2,070,000 540,465 22% 1,476,275 415,000 156,058 259% 589,332 5,430,000 557,511 10% 1,541,874 385,000 190,038 268% 658,532 2,490,000 607,109 21% 1,861,251 405,000 182,238 317% 463,256 2,620,000 629,069 14% 2,093,697 420,000 173,988 352% 377,937 2,455,000 582,534 12% 2,076,472 445,000 165,438 340% 520,805 3,455,000 590,993 13% 2,474,570 450,000 156,488 408% 460,873 2,545,000 559,476 15% 2,273,952 475,000 146,213 366% Debt Service Improvement Bonds Debt Service Tax Increment Bonds 162 CITY OF ST. ANTHONY, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Table 13 Last Ten Fiscal Years Per Capita Fiscal Personal Personal Unemployment Year Population (1)Income (2)Income(1)Rate(3) 2012 8,417 321,483,107 38,195 5.20% 2013 8,516 326,729,114 38,367 4.60% 2014 8,965 322,264,855 35,947 3.70% 2015 9,234 333,684,413 36,136 3.30% 2016 9,277 338,053,880 36,440 3.40% 2017 9,200 362,710,000 39,425 3.10% 2018 9,067 380,152,109 41,927 2.50% 2019 9,020 372,002,840 41,242 2.60% 2020 9,257 428,136,250 46,250 6.18% 2021 9,175 475,576,950 51,834 3.63% 2022 Not Available 2.48% Sources: (1) Metropolitan Council Estimates for St. Anthony (2) Personal Income calculated from Per Capita Personal Income and Population. (3) Minnesota Department of Employment and Economic Development - Annual Average Unemployment Rate for Hennepin County 163 - This page intentionally left blank - 164 CITY OF ST. ANTHONY, MINNESOTA PRINCIPAL EMPLOYERS Table 14 Current Year and Ten Years Ago Employer Employees Rank Employees Rank ISD No. 282 (St. Anthony - New Brighton) 261 1 300 1 Cub Foods 250 2 250 2 St. Anthony Health Center/Chandler Place 230 3 200 4 City of St Anthony 108 4 132 5 B & F Fastener Supply 100 5 100 6 St. Charles Borromeo Parish 50 6 57 7 Happy's Potato Chip Company 50 7 56 8 Culvers 43 8 43 10 Marshall Manufactruing 40 9 - - Village Pub 35 10 - - Wal-Mart - - 250 3 Applebees - - 45 9 Total 1,167 1,433 20122022 165 CITY OF ST. ANTHONY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2013 2014 2015 2016 General government: Administration 2.00 2.00 2.00 2.50 Finance 4.25 4.25 4.50 4.00 Police: Officers 23.00 23.00 23.00 23.00 Support staff 2.50 2.50 2.50 2.50 Community service officer 1.00 1.00 1.00 1.00 Volunteers (non-paid)12.00 12.00 12.00 12.00 Fire: Firefighters 7.00 7.00 7.00 7.00 Volunteers (paid on call)3.00 3.00 3.00 3.00 Public works: Administration 2.00 2.00 2.00 2.00 Street 6.00 6.00 6.00 6.00 Park 3.00 3.00 3.00 3.00 Water/Sewer 2.00 2.00 2.00 2.00 Mechanic 1.00 1.00 1.00 1.00 Seasonal 2.00 2.00 2.00 2.00 Liquor operations: Off-sale: Full-time 5.00 5.00 5.00 5.00 Market Place - part-time 6.00 6.00 4.50 4.50 Silver Lake Village - part-time 6.00 6.00 4.50 4.00 Total 87.75 87.75 85.00 84.50 Source: City of St. Anthony Full-Time Equivalent Employees as of December 31, 2022 166 Table 15 2017 2017 2018 2019 2020 2021 2022 2.60 2.60 2.60 2.60 2.85 3.10 3.10 4.00 4.00 4.00 4.00 4.00 4.50 5.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 2.50 2.50 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 4.50 4.50 4.65 4.65 4.65 4.65 4.65 4.00 4.00 4.25 4.25 4.25 4.25 4.25 82.60 82.60 82.50 82.50 82.75 83.50 84.00 Full-Time Equivalent Employees as of December 31, 2022 167 CITY OF ST. ANTHONY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2013 2014 2015 2016 Police: * Moving violations 2,068 2,017 2,213 1,488 Non-moving violations 396 321 197 192 DWI arrests 34 39 23 15 Traffic arrests 679 633 661 469 Gross and misdemeanor arrests 244 130 77 50 Felony arrests 67 53 44 51 Warrant arrests 23 25 24 13 Fire: Emergency responses 1,409 1,363 1,425 1,534 Medical responses 1,016 1,012 1,062 1,113 Fires 26 26 26 14 Inspections 88 256 238 173 Building inspection: Permits issued 303 288 533 342 Other public works: Street reconstruction/resurfacing (miles) 1.0 0.5 1.5 0.5 Potholes filled (tons) 39 34 66 23 Water: New connections 122 28 7 1 Water mains breaks 7842 Average daily consumption (thousands of gallons) 822 763 770 715 Peak daily consumption (thousands of gallons) 1,724 1,635 1,571 1,153 * Police statistics are for St Anthony only Source: City of St. Anthony Fiscal Year 168 Table 16 2017 2018 2019 2020 2021 2022 846 1,376 1,944 2,233 1,740 2,061 65 394 376 177 246 398 21 39 30 31 29 26 249 292 371 412 305 393 63 86 108 126 154 163 20 59 36 25 30 38 20 22 41 43 40 31 1,621 1,521 1,538 1,553 1,661 1,668 1,166 1,116 1,140 1,155 1,182 1,149 17 16 17 12 23 29 216 210 247 68 204 195 292 261 255 310 322 307 0.6 0.5 1.2 0.3 1.6 1.3 18 64 53 65 17 100 29 30 3 28 1 6 7 8 634 6 731 759 702 740 811 777 1,453 1,764 1,642 1,490 1,750 1,634 Fiscal Year 169 CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2013 2014 2015 2016 Police: Stations 1111 Fleet units 14 14 14 14 Fire stations 1111 Fleet units 8888 Other public works: City Streets (miles) 24.7 24.7 24.7 24.7 Sidewalks (miles) 11.1 11.1 11.1 11.4 Parks and recreation: Acreage 40 40 40 40 Playgrounds 4444 Baseball/softball diamonds 7777 Soccer/football fields 2222 Community centers 1111 Skate Park 1111 Splash pads 2222 Tennis courts 2222 Seasonal ice rinks 3333 Liquor operations: On/off sale locations 2222 Water: Water mains (miles) 24.7 24.7 24.7 24.7 Fire hydrants 287 287 287 288 Storage capacity (thousands of gallons) 2,250 2,250 2,250 2,250 Wells 3333 Wastewater: Sanitary sewers (miles) 24.7 24.7 24.7 24.7 Lift stations 2222 Stormwater Stormwater reuse 1111 Stormwater treatment systems 1122 Stormwater retention ponds 5666 Storm sewers (miles) 15.0 15.0 15.0 15.0 Source: City of St. Anthony Fiscal Year 170 Table 17 2017 2018 2019 2020 2021 2022 111111 13 13 13 13 13 13 111111 888888 24.7 24.7 24.7 24.7 24.7 24.7 12.3 12.3 12.6 12.6 18.3 18.3 40 40 40 40 40 40 444444 777777 222222 111111 111111 222222 222222 333333 222222 24.7 24.7 24.7 24.7 32.0 32.0 288 288 288 288 288 288 2,250 2,250 2,250 2,250 2,250 2,250 333333 24.7 24.7 24.7 24.7 24.7 24.7 222222 111111 222222 666666 15.0 15.0 15.0 15.0 15.0 15.0 Fiscal Year 171 - This page intentionally left blank - 172