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HomeMy WebLinkAbout2023 ACFRCity of Saint Anthony Saint Anthony, Minnesota 2023 Annual Comprehensive Financial Report YEAR ENDED DECEMBER 31, 2023 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, 2023 Prepared By: Finance Department Deborah Maloney 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 11 Independent Auditor's Report 15 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 99 Schedule of Changes in the Net Pension Liability and Related Ratios - St. Anthony Fire Department Relief Association Statement 16 100 Schedule of Contributions - St. Anthony Fire Department Relief Association Statement 17 102 Notes to RSI 103 Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 110 II. FINANCIAL SECTION CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 19 111 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 116 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 21 117 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 120 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 23 121 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 124 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 25 125 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Police Forfeiture Fund Statement 26 126 HRA Fund Statement 27 127 Supplementary Financial Information: Street Improvement Debt Service Fund: Balance Sheet Exhibit 1 130 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 2 132 HRA TIF Improvements Fund: Balance Sheet Exhibit 3 134 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 4 135 Street Improvement Project Fund: Balance Sheet Exhibit 5 136 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 6 137 HRA TIF Debt Service Fund Balance Sheet Exhibit 7 138 Schedule of Revenues, Expenditures and Changes in Fund Balance Exhibit 8 139 Water/Sewer/Water Plant Enterprise Fund: Schedule of Revenues, Expenses and Changes in Fund Net Position Exhibit 9 140 CITY OF ST. ANTHONY, MINNESOTA TABLE OF CONTENTS Page Reference No. Financial Trends: Net Position by Component Table 1 142 Changes in Net Position Table 2 144 Fund Balances - Governmental Funds Table 3 148 Changes in Fund Balances - Governmental Funds Table 4 150 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 152 Direct and Overlapping Property Tax Rates Table 6 153 Principal Property Taxpayers Table 7 154 Property Tax Levies and Collections Table 8 155 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 156 Direct and Overlapping Governmental Activities Debt Table 10 159 Legal Debt Margin Information Table 11 160 Pledged Revenue Coverage Table 12 162 Demographic and Economic: Demographic and Economic Statistics Table 13 165 Principal Employers Table 14 167 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 15 168 Operating Indicators by Function/Program Table 16 170 Capital Asset Statistics by Function/Program Table 17 172 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 28, 2024    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, 2023.  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, 2023.  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  2022/2023 enrollment of approximately 1,816, 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 322 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, Parks Infrastructure, 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 its goal of a stabilized debt ley. The debt levy amount has remained at  the same amount for the years 2020‐2024.  55       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 have begun the transition to Infrastructure levy support of construction projects. The  Infrastructure Levy will fund a greater 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 DEI committee has representatives from each department and meets monthly. The  committee discusses how the City can continue to be a welcoming place to work and live for all.  The committee continually challenges us to evaluate, educate and implement opportunities to  be more diverse, equitable and inclusive.  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 2023 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. Ramsey County Safe and Sober Grant.  B. Minnesota Board of Firefighter Training & Education Grant.  C. Hennepin County Recycling Grant.  D. Minnesota Department of Natural Recourses Emerald Ash Borer Grant.  E. GameTime Community Champions™Playground 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    Deborah Maloney  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: Deborah Maloney Appointed December 31, 2023 9 - This page intentionally left blank - 10 Engineer ‐ WSB & AssociatesFull‐Time Positions =  58Financial ‐ Ehlers & AssociatesPart‐Time Positions (average) = 49Legal ‐ Dorsey & WhitneyPublic Works Seasonal=10Planner ‐ Grittman ConsultingPolice 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 Employee2023ADMINISTRATION7 Full time Employees24 Part time EmployeesMAYOR AND COUNCIL MEMBERSPlanning CommissionAssistant to the City ManagerPOLICEConsultantsParks & Environmental CommissionCity Manager6 Full time Employees25 Part time EmployeesFINANCE 11 - This page intentionally left blank - 12 II. FINANCIAL SECTION 13 - This page intentionally left blank - 14 400 Robert Street North, Suite 1600, St. Paul, MN, 55101   651.426.7000 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, 2023, 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, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City 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. Report on Summarized Comparative Information We have previously audited the City of St. Anthony, Minnesota’s 2022 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 15 remaining fund information in our report dated June 30, 2023. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2022 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. 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. 16  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. 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 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 17 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 28, 2024 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, LLC St. Paul, Minnesota June 28, 2024 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, 2023. 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 $53,918,885 (net position).  The City’s total net position increased by $3,908,936 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 $20,325,431, an increase of $1,603,186 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 $4,460,649 or 53.8% of total General Fund Budget expenditures.  The City’s total bonded debt decreased by $3,200,000 during the current fiscal year due to principal retirement. 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 fees and charges (business-type activities). The governmental activities of the City include 19 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 $53,918,885 at the close of the most recent fiscal year. 21 City of St. Anthony, Minnesota’s Net Position Governmental Activities Business-Type Activities Totals 2023 2022 2023 2022 2023 2022 Current and other assets $26,060,490 $26,047,257 $6,599,590 $5,725,835 $32,660,080 $31,773,092 Capital assets 31,648,215 33,424,119 25,468,394 25,139,457 57,116,609 58,563,576 Total assets $57,708,705 $59,471,376 $32,067,984 $30,865,292 $89,776,689 $90,336,668 Total deferred outflows of resources $7,122,388 $8,535,806 $0 $0 $7,122,388 $8,535,806 Long term liabilities outstanding $31,546,560 $42,011,324 $355,733 $480,976 $31,902,293 $42,492,300 Other liabilities 1,733,577 3,704,030 315,681 412,879 2,049,258 4,116,909 Total liabilities $33,280,137 $45,715,354 $671,414 $893,855 $33,951,551 $46,609,209 Total deferred inflows of resources $9,028,641 $2,253,316 $0 $0 $9,028,641 $2,253,316 Net position: Invested in capital assets net of related debt $11,876,010 $10,898,178 $25,313,018 $24,834,573 $37,189,028 $35,732,751 Restricted 6,417,966 6,103,190 - - 6,417,966 6,103,190 Unrestricted 4,228,339 3,037,144 6,083,552 5,136,864 10,311,891 8,174,008 Total net position $22,522,315 $20,038,512 $31,396,570 $29,971,437 $53,918,885 $50,009,949 The City’s net position increased by $3,908,936 in 2023. The increase was primarily due to the reduction in long term debt liabilities and unearned revenue liability. City of St. Anthony, Minnesota’s Changes in Net Position Governmental Activities Business-Type Activities Totals 2023 2022 2023 2022 2023 2022 Revenues: Program revenue: Charges for services $2,190,191 $1,981,023 $10,248,497 $9,961,909 $12,438,688 $11,942,932 Operating grants and contributions 926,803 610,856 - - 926,803 610,856 Capital grants and contributions 75,165 633,832 - - 75,165 633,832 General revenue: Property taxes 8,835,497 8,462,357 - - 8,835,497 8,462,357 Tax increment taxes 3,091,945 2,272,455 - - 3,091,945 2,272,455 Grants and contributions not restricted to specific programs 1,147,322 1,002,881 158,891 - 1,306,213 1,002,881 Other 948,504 (240,336) 224,271 (84,471) 1,172,775 (324,807) Total revenues 17,215,427 14,723,068 10,631,659 9,877,438 27,847,086 24,600,506 Expenses: General government 1,558,834 1,380,846 - - 1,558,834 1,380,846 Public safety 6,591,967 5,853,162 - - 6,591,967 5,853,162 Public works 2,897,194 3,135,972 - - 2,897,194 3,135,972 Parks and recreation 530,990 546,537 - - 530,990 546,537 Housing and redevelopment 1,284,871 1,412,758 - - 1,284,871 1,412,758 Nondepartmental 88,013 45,609 - 88,013 Interest on long-term debt 637,825 697,886 - - 637,825 697,886 Liquor - 6,728,047 6,601,179 6,728,047 6,601,179 Water - 1,783,913 1,632,017 1,783,913 1,632,017 Sewer - 1,237,453 1,305,957 1,237,453 1,305,957 Stormwater - 599,043 419,510 599,043 419,510 Total expenses 13,589,694 13,072,770 10,348,456 9,958,663 23,938,150 23,031,433 Excess before transfers 3,625,733 1,650,298 283,203 (81,225) 3,908,936 1,569,073 Transfers (1,141,930) (749,963) 1,141,930 749,963 - - Increase (decrease) in net position 2,483,803 900,335 1,425,133 668,738 3,908,936 1,569,073 Net position - January 1 20,038,512 19,138,177 29,971,437 29,302,699 50,009,949 48,440,876 Net position - December 31 $22,522,315 $20,038,512 $31,396,570 $29,971,437 $53,918,885 $50,009,949 22 Governmental Activities. Governmental activities increased the City’s net position by $2,483,803 compared to prior year increase of $900,335. The key elements of this change are an increase in unrestricted investment earnings of $1,476,819 and an increase in tax increment taxes of $819,490. Charges for services 13% Operating grants and contributions 5% Capital grants and contributions 0%Property taxes 51% Other taxes 18% Grants and contributions not restricted to specific programs 7%Other 6% Revenues by Source - Governmental Activities 23 Business-type Activities. Business-type activities increased net position by $1,425,133. There was net $1,141,930 transfers to cash and a decrease in general revenues of $467,633. 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 $20,325,431 an increase of $1,603,186 from the prior year. The ending fund balance is classified as follows: Nonspendable $199,419 Restricted 8,692,356 Committed 1,010,290 Assigned 6,061,683 Unassigned 4,361,683 Total $20,325,431 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 $4,460,649, while total fund balance reached $5,057,260. 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 52.9% of total General Fund expenditures and total fund balance represents 60.1% of that same amount. During the current fiscal year, the fund balance in the General Fund increased by $1,052,403 due to an increase in revenues over expenses of $1,074,653 and along with an decrease in other financing uses of $22,250. The Community Center Fund increased by $14,561 due to other net financing sources $45,950 exceeding revenues under expenditures of $31,389. The Street Improvement Debt Service Fund increased by $45,188 mainly due to $291,041 in closing transfers from street improvement funds along with using cash on hand to lower existing debt levied. 24 The HRA TIF Improvement Fund increased by $1,410,347, substantially due to a increase in revenues over expenses of $1,181,597 and an decrease in accounts payable. The Street Improvement Project Funds decreased by $370,181 due to other financing uses of $235,041 exceeding revenues under expenditures of $135,140. The Public Utilities Infrastructure Fund increased by $65,513 substantially due to investment income of $159,242 and expenditures of $97,129. Non-major Special Revenue Funds increased by $91,733 resulting in an ending balance of $900,971 substantially due increase in investment earnings and a decrease in HRA expenditures of $11,821. Non-major Debt Service Funds had a total fund balance of $769,624, 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 $87,370, substantially due to the planned use of fund balance to support the debt service associated with the Public Facilities Revenue Bonds and Tax Abatement bonds. Non-major Capital Project Funds had a total fund balance of $2,296,456, a decrease of $678,507 from prior year, substantially due to expenses over revenues of $713,090 and net transfers in of $34,583. 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 $31,616,353. The total net position for each fund was: Liquor – $2,936,622; Water and Sewer – $19,162,405; Stormwater Utility - $9,517,326. 25 General Fund Budgetary Highlights Variances from actual to budget can be briefly summarized as follows:  Licenses and permits were $372,710 greater than budget primarily due to higher level of construction related permit activity.  Intergovernmental revenues were $401,501 greater than budget primarily due one time receipt of public safety aid.  Protective inspections expenditures were $211,004 greater than budget primarily due to higher level of building permit activity and its related increase in inspections activity  Transfers out were $105,950 greater than budget due to excess fund balance transfers made in accordance with the fund balance policy.  Investment Income was $189,705 greater than budget due to higher interest rates.  Public Safety Fire personal services expenditures were $178,069 less than budget due to postponing planned hires to 2024.  Public Safety Police expenditures were $117,216 less than budget due to position vacancies. 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, 2023 amounts to $57,116,609 (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) decreased 2.5%. Major capital asset events during the current fiscal year included the following:  The 2022 Street and Utility Improvement project construction was finalized in 2023.  The city purchased a new fire engine, the majority of which was paid for in 2023.  The feasibility study for the 2024 Street and Utility Improvement project took place in 2023. 26 City of St. Anthony, Minnesota’s Capital Assets Governmental Activities Business-Type Activities Totals 2023 2022 2023 2022 2023 2022 Land $1,062,883 $1,062,882 $2,089,954 $2,089,954 $3,152,837 $3,152,836 Permanent easements 73,984 73,984 57,695 57,695 131,679 - Land improvements 638,031 584,800 1,062,122 1,062,122 1,700,153 1,646,922 Buildings and structures 10,736,937 10,571,734 9,011,803 8,985,360 19,748,740 19,557,094 Furniture and fixtures 6,123,009 4,928,320 5,473,649 5,459,355 11,596,658 10,387,675 Software intangibles 72,117 56,823 62,894 62,894 135,011 119,717 Infrastructure/streets 46,564,031 43,420,366 13,985,966 12,981,818 60,549,997 56,402,184 Storm sewers 428,469 428,469 - - 428,469 428,469 Storm water - - 8,182,924 7,810,879 8,182,924 7,810,879 Less accumulated depreciation (34,247,189) (32,435,686) (14,458,613) (13,370,620) (48,705,802) (45,806,306) Construction in progress 195,943 4,732,427 - - 195,943 4,732,427 Total $31,648,215 $33,424,119 $25,468,394 $25,139,457 $57,116,609 $58,431,897 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 $23,655,000. Of this amount, $18,730,000 comprises debt backed by special assessments and the full faith and credit of the City, $4,375,000 is backed by tax increments, $395,000 is backed by lease revenue sources, and $155,000 is backed by revenues sources from the City’s water/sewer funds. In addition, the City’s debt represents the liability for compensated absences $714,753, net pension liability of $5,857,913, and OPEB liability of $924,615. City of St. Anthony, Minnesota’s Outstanding Debt General Obligation and Revenue Bonds Governmental Activities Business-Type Activities Totals 2023 2022 2023 2022 2023 2022 General obligation bonds $18,730,000 $21,050,000 $ - $ - $18,730,000 $21,050,000 G.O. revenue bonds 395,000 780,000 155,000 300,000 550,000 1,080,000 G.O. tax increment bonds 4,375,000 4,870,000 - - 4,375,000 4,870,000 Issuance premiums (discounts) 709,584 828,269 376 4,884 709,960 833,153 - - Total $24,209,584 $27,528,269 $155,376 $304,884 24,364,960 $27,833,153 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 2023 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, 2023 With Comparative Totals For December 31, 2022 Governmental Business-Type Activities Activities 2023 2022 Assets: Cash and investments $21,148,986 $4,801,216 $25,950,202 $25,602,679 Accrued interest 99,154 - 99,154 49,357 Due from other governmental units 73,992 - 73,992 124,741 Accounts receivable - net 89,746 821,913 911,659 876,003 Internal balances 219,783 (219,783) - - Property taxes receivable 99,324 - 99,324 133,160 Prepaid items 177,199 100,471 277,670 180,770 Inventories - at cost 22,220 1,095,773 1,117,993 1,077,558 Loans receivable 665 - 665 2,205 Special assessments receivable 1,429,098 - 1,429,098 1,673,181 Lease receivable 1,893,254 - 1,893,254 1,277,549 Land held for resale 409,188 - 409,188 378,008 Capital assets - net: Nondepreciable 1,332,810 2,147,649 3,480,459 8,016,941 Depreciable 30,315,405 23,320,745 53,636,150 50,546,635 Net pension asset 397,881 - 397,881 397,881 Total assets 57,708,705 32,067,984 89,776,689 90,336,668 Deferred outflows of resources: Related to other post employment benefits 482,359 - 482,359 541,286 Related to pensions 6,640,029 - 6,640,029 7,994,520 Total deferred outflows of resources 7,122,388 - 7,122,388 8,535,806 Liabilities: Accounts payable 1,057,674 163,748 1,221,422 2,480,374 Due to other governmental units 36,358 87,806 124,164 135,368 Salaries payable 173,964 56,442 230,406 223,659 Contracts payable 25,397 - 25,397 118,341 Deposits payable 170,692 47,570 218,262 183,855 Accrued interest payable 269,492 167 269,659 321,808 Unearned revenue - - - 653,504 Other post employment benefits: Due within one year 55,980 - 55,980 50,378 Due in more than one year 868,635 - 868,635 957,188 Long-term liabilities: Due within one year 3,442,968 208,277 3,651,245 3,605,279 Due in more than one year 21,321,064 107,404 21,428,468 25,016,595 Net pension liability: Due in more than one year 5,857,913 - 5,857,913 12,862,860 Total liabilities 33,280,137 671,414 33,951,551 46,609,209 Deferred inflows of resources: Related to leases 1,893,254 - 1,893,254 1,277,549 Related to other post employment benefits 506,832 - 506,832 459,129 Related to pensions 6,628,555 - 6,628,555 516,638 Total deferred inflows of resources 9,028,641 - 9,028,641 2,253,316 Net position: Net investments in capital assets 11,876,010 25,313,018 37,189,028 35,732,751 Restricted for: Debt service 5,446,428 - 5,446,428 5,612,586 Capital projects 113,111 - 113,111 - Pensions 397,881 - 397,881 421,414 Public safety 460,546 - 460,546 69,190 Unrestricted 4,228,339 6,083,552 10,311,891 8,174,008 Total net position $22,522,315 $31,396,570 $53,918,885 $50,009,949 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, 2023 With Comparative Totals For December 31, 2022 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $1,558,834 $777,184 Public safety 6,591,967 972,743 Public works 2,897,194 223,037 Parks and recreation 530,990 217,182 Nondepartmental 88,013 - Housing and redevelopment 1,284,871 45 Interest on long-term debt 637,825 - Total governmental activities 13,589,694 2,190,191 Business-type activities: Liquor 6,728,047 7,065,954 Water/water plant 1,783,913 1,513,076 Sewer 1,237,453 1,440,378 Stormwater 599,043 229,089 Total business-type activities 10,348,456 10,248,497 Total primary government $23,938,150 $12,438,688 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 2023 2022 $15,354 $ - ($766,296) $ - ($766,296) ($744,418) 752,987 - (4,866,237) - (4,866,237) (4,453,742) 117,618 75,165 (2,481,374) - (2,481,374) (2,175,771) 40,844 - (272,964) - (272,964)(316,976) - - (88,013) - (88,013)(45,609) - - (1,284,826) - (1,284,826) (1,412,657) - - (637,825) - (637,825)(697,886) 926,803 75,165 (10,397,535) - (10,397,535) (9,847,059) - - - 337,907 337,907 440,511 - - - (270,837)(270,837)(335,637) - - - 202,925 202,925 98,214 - - - (369,954)(369,954)(199,842) - - - (99,959)(99,959)3,246 $926,803 $75,165 (10,397,535)(99,959) (10,497,494) (9,843,813) General revenues: General property taxes 8,835,497 - 8,835,497 8,462,357 Tax increment taxes 3,091,945 - 3,091,945 2,272,455 Grants and contributions not restricted to specific programs 1,147,322 158,891 1,306,213 1,002,881 Unrestricted investment earnings 896,704 198,617 1,095,321 (381,498) Gain on disposal of capital assets 38,516 - 38,516 1,400 Other 13,284 25,654 38,938 55,291 Transfers (1,141,930) 1,141,930 - - Total general revenues and transfers 12,881,338 1,525,092 14,406,430 11,412,886 Change in net position 2,483,803 1,425,133 3,908,936 1,569,073 Net position - January 1 20,038,512 29,971,437 50,009,949 48,440,876 Net position - December 31 $22,522,315 $31,396,570 $53,918,885 $50,009,949 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, 2023 With Comparative Totals For December 31, 2022 Street Community Improvement General Fund Center Fund Debt Service Fund Assets Cash and investments $5,150,240 $165,095 $3,572,833 Accrued interest 99,154 - - Due from other governmental units 62,192 - - Accounts receivable - net 73,458 16,156 - Property taxes receivable: - Delinquent 13,183 - 3,112 Due from county 26,123 - 9,694 Prepaid items 172,890 3,084 - Inventories - at cost 22,220 - - Loans receivable - - - Special assessments receivable 6,285 - 1,375,486 Interfund loan receivable - - - Lease receivable 1,195,069 698,185 - Land held for resale - - - Total assets $6,820,814 $882,520 $4,961,125 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $267,645 $10,142 $2,222 Due to other governmental units 22,426 - - Salaries payable 167,859 1,573 - Contracts payable - - - Deposits payable 91,087 - 8,848 Unearned revenue - - - Interfund loan payable - - - Total liabilities 549,017 11,715 11,070 Deferred inflows of resources: Related to leases 1,195,069 698,185 - Unavailable revenue 19,468 - 1,378,598 Total deferred inflows of resources 1,214,537 698,185 1,378,598 Fund balance: Nonspendable 195,110 3,084 - Restricted 401,501 - 3,571,457 Committed - 169,536 - Assigned - - - Unassigned 4,460,649 - - Total fund balance 5,057,260 172,620 3,571,457 Total liabilities, deferred inflows of resources, and fund balance $6,820,814 $882,520 $4,961,125 The accompanying notes are an integral part of these financial statements. 34 Statement 3 Street Other HRA TIF Improvement Public Utilities Governmental Improvement Fund Project Fund Infrastructure Fund Funds 2023 2022 $4,913,995 $202,956 $2,409,467 $4,434,485 $20,849,071 $21,268,336 - - - - 99,154 49,357 11,800 - - - 73,992 124,741 - - - 132 89,746 82,488 10,876 - - 3,872 31,043 87,586 26,718 - - 5,746 68,281 45,574 554 - - 671 177,199 145,159 - - - - 22,220 24,178 - - - 665 665 2,205 - 36,610 - 10,717 1,429,098 1,673,181 - - 1,156,225 - 1,156,225 1,157,180 - - - - 1,893,254 1,277,549 409,188 - - - 409,188 378,008 $5,373,131 $239,566 $3,565,692 $4,456,288 $26,299,136 $26,315,542 $550,708 $23,227 $655 $203,075 $1,057,674 $2,256,157 3,292 - - 10,640 36,358 56,583 - - - 4,532 173,964 164,487 - 25,397 - - 25,397 118,341 70,757 - - - 170,692 134,525 - - - - - 653,504 959,326 - - 196,899 1,156,225 1,157,180 1,584,083 48,624 655 415,146 2,620,310 4,540,777 - - - - 1,893,254 1,277,549 10,876 36,610 - 14,589 1,460,141 1,774,971 10,876 36,610 - 14,589 3,353,395 3,052,520 554 - - 671 199,419 169,337 3,777,618 113,111 - 828,669 8,692,356 7,102,437 - - - 840,754 1,010,290 895,109 - 140,187 3,565,037 2,356,459 6,061,683 6,715,192 - (98,966) - - 4,361,683 3,840,170 3,778,172 154,332 3,565,037 4,026,553 20,325,431 18,722,245 $5,373,131 $239,566 $3,565,692 $4,456,288 $26,299,136 $26,315,542 Fund balance reported above $20,325,431 $18,722,245 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.31,648,215 33,424,119 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable in the funds.1,460,141 1,774,971 Net pension asset and corresponding deferred outflows and inflows of resources related to the Saint Anthony Fire Department pension plan.433,414 421,414 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.(24,479,076)(27,848,702) 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.(6,865,810)(6,455,535) Net position of governmental activities $22,522,315 $20,038,512 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, 2023 With Comparative Totals For December 31, 2022 Street Community Improvement HRA TIF General Fund Center Fund Debt Service Fund Improvement Fund Revenues: General property taxes $5,678,378 $ - $1,994,274 $ - Tax increment collections - - - 3,089,129 Licenses, fees and permits 687,640 - - - Intergovernmental 1,530,633 - - - Special assessments 5,990 - 291,316 - Charges for services 1,164,210 127,300 - - Cable franchise fees 89,882 - - - Fines and forfeits 101,713 - - - Investment income (loss)190,205 6,653 84,065 223,205 Contributions and donations 1,000 - - - Refunds and reimbursements 6,725 - - - Miscellaneous 13,284 - - - Total revenues 9,469,660 133,953 2,369,655 3,312,334 Expenditures: Current: General government 1,299,114 - - 27,721 Public safety 5,763,413 - - - Public works 919,739 - 6,652 - Parks and recreation 324,728 165,342 - - Housing and redevelopment - - - 10,716 Nondepartmental 88,013 - - - Capital outlay - - - - Debt service: - Principal - - 2,065,000 - Interest - - 537,787 93,150 Other costs - - 3,177 - Construction/acquisition costs - - - - Developer incentives - - - 1,123,986 Total expenditures 8,395,007 165,342 2,612,616 1,255,573 Revenues over (under) expenditures 1,074,653 (31,389)(242,961)2,056,761 Other financing sources (uses): Bonds issued - - - - Premium on bonds issued - - - - Sale of capital assets - - - - Transfers in 290,000 165,950 291,041 - Transfers out (312,250)(120,000)(2,892)(646,414) Total other financing sources (uses)(22,250)45,950 288,149 (646,414) Net change in fund balance 1,052,403 14,561 45,188 1,410,347 Fund balance - January 1 4,004,857 158,059 3,526,269 2,367,825 Fund balance - December 31 $5,057,260 $172,620 $3,571,457 $3,778,172 The accompanying notes are an integral part of these financial statements. 36 Statement 4 Street Other Improvement Public Utilities Governmental Project Fund Infrastructure Fund Funds 2023 2022 $ - $ - $1,222,203 $8,894,855 $8,438,461 - - - 3,089,129 2,273,952 - - - 687,640 530,924 - - 494,614 2,025,247 1,471,972 20,179 - 1,763 319,248 460,873 - 3,400 - 1,294,910 1,221,419 - - - 89,882 96,099 - - 9,276 110,989 118,558 32,013 159,242 184,953 880,336 (288,249) - - 50,844 51,844 6,174 - - 45 6,770 14,023 - - - 13,284 55,291 52,192 162,642 1,963,698 17,464,134 14,399,497 - - 81,212 1,408,047 1,226,942 - - 142,842 5,906,255 5,312,282 - 56,392 49,455 1,032,238 971,898 - - 13,587 503,657 516,460 - - 145,618 156,334 358,780 - - - 88,013 45,609 - 40,737 1,628,027 1,668,764 1,669,930 - - 1,135,000 3,200,000 3,170,000 - - 176,514 807,451 815,417 - - 2,910 6,087 87,435 187,332 - - 187,332 2,063,945 - - - 1,123,986 1,046,435 187,332 97,129 3,375,165 16,088,164 17,285,133 (135,140)65,513 (1,411,467)1,375,970 (2,885,636) - - - - 2,385,000 - - - - 15,093 - - 38,516 38,516 608,497 - - 975,131 1,722,122 2,877,068 (235,041) - (216,825)(1,533,422)(2,557,000) (235,041) - 796,822 227,216 3,328,658 (370,181)65,513 (614,645)1,603,186 443,022 524,513 3,499,524 4,641,198 18,722,245 18,279,223 $154,332 $3,565,037 $4,026,553 $20,325,431 $18,722,245 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, 2023 With Comparative Amounts For The Year Ended December 31, 2021 2023 2022 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)$1,603,186 $443,022 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.(358,974) 1,356,696 Transfer out of governmental capital assets contributed to Enterprise Funds.(1,416,930) (1,156,331) 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) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.(314,830) 143,860 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.3,369,626 887,438 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 (loss) attributable to governmental activities.(410,275) (204,201) 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).12,000 60,712 Change in net position of governmental activities (Statement 2)$2,483,803 $900,335 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, 2023 With Comparative Totals For December 31, 2022 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund Assets:2023 2022 Current assets: Cash and cash equivalents $1,486,054 $2,914,231 $400,931 $4,801,216 $4,014,769 $299,915 Accounts receivable - net 5,429 810,859 5,625 821,913 793,515 - Prepaid items 13,309 87,162 - 100,471 35,611 - Inventories - at cost 980,155 115,618 - 1,095,773 1,053,380 - Total current assets 2,484,947 3,927,870 406,556 6,819,373 5,897,275 299,915 Noncurrent assets: Capital assets: Land - 5,653 2,084,301 2,089,954 2,089,954 - Permanent easements - - 57,695 57,695 57,695 - Land improvements - - 1,062,122 1,062,122 1,062,122 - Buildings and structures 1,888,593 7,123,210 - 9,011,803 8,985,360 - Furniture, fixtures and equipment 476,643 4,771,788 225,218 5,473,649 5,459,355 - Distribution and collection system - 13,985,966 8,182,924 22,168,890 20,792,697 - Software intangibles 62,894 - - 62,894 62,894 - Total capital assets 2,428,130 25,886,617 11,612,260 39,927,007 38,510,077 - Less: Allowance for depreciation (1,688,876) (10,316,002) (2,453,735) (14,458,613) (13,370,620) - Net capital assets 739,254 15,570,615 9,158,525 25,468,394 25,139,457 - Total assets 3,224,201 19,498,485 9,565,081 32,287,767 31,036,732 299,915 Deferred outflows of resources: Related to OPEB - - - - - 482,359 Related to pensions - - - - - 6,460,732 Total deferred outflows of resources - - - - - 6,943,091 Liabilities: Current liabilities: Accounts payable 100,687 15,306 47,755 163,748 224,217 - Due to other governmental units 82,765 5,041 - 87,806 78,785 - Salaries payable 27,401 29,041 - 56,442 59,172 - Accrued interest payable - 167 - 167 1,375 - Refundable deposits - 47,570 - 47,570 49,330 - Compensated absences payable - current 25,320 27,581 - 52,901 58,111 182,968 Bonds and notes payable - current - 155,376 - 155,376 145,000 - Other post employment benefits liability - current - - - - - 55,980 Total current liabilities 236,173 280,082 47,755 564,010 615,990 238,948 Noncurrent liabilities: Compensated absences payable - noncurrent 51,406 55,998 - 107,404 117,981 371,480 Bonds and notes payable - noncurrent - - - - 159,884 - Other post employment benefits liability - noncurrent - - - - - 868,635 Net pension liability - - - - - 5,857,913 Total noncurrent liabilities 51,406 55,998 - 107,404 277,865 7,098,028 Total liabilities 287,579 336,080 47,755 671,414 893,855 7,336,976 Deferred inflows of resources: Related to OPEB - - - - - 506,832 Related to pensions - - - - - 6,484,791 Total deferred inflows of resources - - - - - 6,991,623 Net position: Net investments in capital assets 739,254 15,415,239 9,158,525 25,313,018 24,834,573 - Unrestricted 2,197,368 3,747,166 358,801 6,303,335 5,308,304 (7,085,593) Total net position $2,936,622 $19,162,405 $9,517,326 $31,616,353 $30,142,877 ($7,085,593) Net position reported above $31,616,353 $30,142,877 Adjustment to report the cumulative internal balance for the net effect of activity between the internal service fund and the enterprise funds over time.(219,783) (171,440) Net position of business-type activities (Statement 1)$31,396,570 $29,971,437 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, 2023 With Comparative Totals For December 31, 2022 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund 2023 2022 Sales $7,065,954 $ - $ - $7,065,954 $7,040,797 $ - Cost of sales (5,246,548) - - (5,246,548) (5,212,277) - Gross profit 1,819,406 - - 1,819,406 1,828,520 - Operating revenues: Customer billings - 2,953,454 229,089 3,182,543 2,896,237 - Charges for services - - - - - 738,984 Total operating revenues - 2,953,454 229,089 3,182,543 2,896,237 738,984 Total gross profit and operating revenues 1,819,406 2,953,454 229,089 5,001,949 4,724,757 738,984 Operating expenses: Personal services 903,409 963,986 - 1,867,395 1,781,037 1,311,508 Supplies 383,575 163,941 527 548,043 514,881 - Contracted services 82,832 189,075 269,711 541,618 373,212 - Treatment charges (MCES) - 760,026 - 760,026 711,020 - Other 7,827 234,716 6,875 249,418 240,441 - Total operating expenses, excluding depreciation 1,377,643 2,311,744 277,113 3,966,500 3,620,591 1,311,508 Depreciation 80,143 688,452 319,398 1,087,993 1,042,367 - Total operating expenses 1,457,786 3,000,196 596,511 5,054,493 4,662,958 1,311,508 Operating income (loss)361,620 (46,742) (367,422) (52,544) 61,799 (572,524) Nonoperating revenues (expenses): Investment income 63,934 124,189 10,494 198,617 (85,871) 16,368 Intergovernmental revenue - - 158,891 158,891 - 11,239 Interest expense - 928 - 928 (2,300) - Gain on disposal of asset - - - - 1,400 - Miscellaneous 831 5,796 19,027 25,654 24,875 - Total nonoperating revenues (expenses)64,765 130,913 188,412 384,090 (61,896) 27,607 Income (loss) before contributions and transfers 426,385 84,171 (179,010) 331,546 (97) (544,917) Contributions and transfers: Capital contributions - 1,044,885 372,045 1,416,930 1,156,331 - Transfers in - - - - 30,535 86,300 Transfers out (275,000) - - (275,000) (436,903) - Total contributions and transfers (275,000) 1,044,885 372,045 1,141,930 749,963 86,300 Change in net position 151,385 1,129,056 193,035 1,473,476 749,866 (458,617) Net position - January 1 2,785,237 18,033,349 9,324,291 30,142,877 29,393,011 (6,626,976) Net position - December 31 $2,936,622 $19,162,405 $9,517,326 $31,616,353 $30,142,877 ($7,085,593) Change in net position reported for business-type activities above $1,473,476 $749,866 Transfer in of capital assets from governmental activities 1,416,930 1,156,331 Transfers in reported as contribution revenue reported above (1,416,930) (1,156,331) Adjustment for the net effect of the current year activity between the internal service fund and the enterprise funds.(48,343) (81,128) Change in net position of business-type activities (Statement 2)$1,425,133 $668,738 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, 2023 With Comparative Totals For December 31, 2022 Governmental Activities Water/Sewer/ Stormwater Internal Liquor Water Plant Utility Service Fund 2023 2022 Cash flows from operating activities: Receipts from customers and users $7,067,702 $2,921,548 $229,089 $10,218,339 $9,884,366 $ - Receipts from interfund charges for pension benefits - - - - - 738,984 Payment to suppliers (5,849,891) (1,414,151) (240,312) (7,504,354) (7,156,121) - Payment to employees (901,448) (984,464) - (1,885,912) (1,775,834) (861,311) Miscellaneous revenue 831 5,796 19,027 25,654 24,875 - Net cash flows provided by (used in) operating activities 317,194 528,729 7,804 853,727 977,286 (122,327) Cash flows from noncapital financing activities: Transfer from General Fund - - - - 30,535 86,300 Transfer to General Fund (275,000) - - (275,000) (275,000) - Intergovernmental revenue - - 158,891 158,891 - - Net cash flows provided by (used in) noncapital financing activities (275,000) - 158,891 (116,109) (244,465) 86,300 Cash flows from capital and related financing activities: Acquisition of capital assets - - - - (12,139) - Proceeds from disposal of capital assets - - - - 1,400 - Transfer to project Fund - - - - (161,903) - Principal paid on debt - (145,000) - (145,000) (140,000) - Interest paid on debt - (4,788) - (4,788) (7,975) - Net cash flows provided by (used in) capital and related financing activities - (149,788) - (149,788) (320,617) - Cash flows from investing activities: Investment income 63,934 124,189 10,494 198,617 (85,872) 16,368 Net increase (decrease) in cash and cash equivalents 106,128 503,130 177,189 786,447 326,332 (19,659) Cash and cash equivalents - January 1 1,379,926 2,411,101 223,742 4,014,769 3,688,437 319,574 Cash and cash equivalents - December 31 $1,486,054 $2,914,231 $400,931 $4,801,216 $4,014,769 $299,915 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $361,620 ($46,742) ($367,422) ($52,544) $61,799 ($572,524) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenue 831 5,796 19,027 25,654 24,875 - Depreciation 80,143 688,452 319,398 1,087,993 1,042,367 - Changes in assets and liabilities: Decrease (increase) in receivables 1,748 (30,146) - (28,398) (49,763) - Decrease (increase) in prepaid items 6,146 (71,006) - (64,860) (7,263) - Decrease (increase) in inventory (66,620) 24,227 - (42,393) (44,178) - Decrease (increase) in deferred outflows of resources - - - - - 1,425,417 Increase (decrease) in payables (66,674) (41,852) 36,801 (71,725) (50,551) (58,181) Increase (decrease) in OPEB liability - - - - - (82,951) Increase (decrease) in net pension liability - - - - - (6,993,708) Increase (decrease) in deferred inflows of resources - - - - - 6,159,620 Total adjustments (44,426) 575,471 375,226 906,271 915,487 450,197 Net cash provided by (used in) operating activities $317,194 $528,729 $7,804 $853,727 $977,286 ($122,327) Noncash investing, capital and financing activities: Assets in the amount of $1,044,885 and $845,081 were contributed to the Water/Sewer/Water Plant Fund in 2023 and 2022, respectively. Assets in the amount of $372,045 and $311,250 were contributed to the Stormwater Utility Fund in 2023 and 2022, 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, 2023 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. 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. 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. 43 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. 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. 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 44 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. 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. 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. 45 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. 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 Mayor and council $120,143 $121,514 $1,371 General management 203,146 203,952 806 General government buildings 127,308 145,313 18,005 Protective inspections 164,100 375,139 211,039 DARE program - 4,800 4,800 Nondepartmental 87,206 88,013 807 Nonmajor Funds: Special Revenue Funds: Police forfeiture 18,050 22,673 4,623 The over expenditures were funded by available fund balance. 46 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. 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. G. RECEIVABLES The estimated portion of uncollectible property taxes, special assessments, loans and leases receivable is not material and has not been reported. 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. Lease receivables are measured at the present value of lease payments expected to be received during the lease term. The City 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 reported in relation to lease receivables. 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. 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 47 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. 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. 48 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. Capital assets 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 benefits which are attributable to services already rendered, accumulates, and is more likely than not to be used for time off or otherwise paid 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. 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. 49 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. 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 BALANCES AND TRANSACTIONS During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. 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. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund. Such advances are classified as “due to/from other funds.” 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.” 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. 50 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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, 2022, 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. 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. 51 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 ($24,479,076) difference are as follows: Bonds payable ($23,500,000) Accrued interest payable (269,492) Unamortized bond premium (709,584) Net adjustment to reduce fund balance - total governmental funds to arrive at net position - governmental activities. ($24,479,076) 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 ($358,974) difference are as follows: Capital outlay $1,668,764 Construction/acquisition costs 187,332 Capital outlay not capitalized (15) Depreciation expense (2,215,055) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($358,974) 52 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 ($314,830) difference are as follows: Unavailable revenue - general property taxes: At December 31, 2022 ($79,525) At December 31, 2023 20,167 Unavailable revenue - tax increment taxes: At December 31, 2022 (8,060) At December 31, 2023 10,876 Unavailable revenue - special assessments: At December 31, 2022 (1,673,181) At December 31, 2023 1,429,098 Unavailable revenue - intergovernmental: At December 31, 2022 (14,205) At December 31, 2023 - Net adjustments to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. ($314,830) 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 $3,369,626 difference are as follows: Debt issued or incurred: Issuance of general obligation bonds $ - Premium on issued bonds - Principal repayments 3,200,000 Change in accrued interest payable 50,941 Amortization of bond premium 118,685 Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities. $3,369,626 53 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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, 2023, the bank balance of the City’s deposits was covered by federal depository insurance or supplementary collateral. 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, 2023, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 10+ Federal Home Loan Bank AA+$3,316,967 $289,314 $3,027,653 $ - $ - Federal Home Loan Mortgage Corporation AA+95,010 - 95,010 - - Money market funds AAAm 743,637 743,637 - - - External investment pool - 4M Fund Not rated 8,747,844 8,747,844 - - - External investment pool - 4M Plus Fund Not rated 30,124 30,124 - - - External investment pool - 4M Term Series Not rated 1,300,000 1,300,000 - - - Municipal Securities AA+, AAA 716,066 198,185 131,388 286,446 100,047 Brokered Certificates of Deposit Not rated 10,963,761 4,401,380 6,507,080 - 55,301 Total $25,913,409 $15,710,484 $9,761,131 $286,446 $155,348 Total investments $25,913,409 Total deposits 31,363 Petty cash 5,430 Total cash and investments $25,950,202 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. 54 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 The City has the following recurring fair value measurements as of December 31, 2023: Investment Type 12/31/2023 Level 1 Level 2 Level 3 Investments at fair value: Brokered Certificates of Deposit $10,963,761 $ - $10,963,761 $ - Municipal Securities 716,066 - 716,066 - Federal Agencies 3,411,977 - 3,411,977 - Total/Subtotal 15,091,804 $0 $15,091,804 $0 Investments not categorized: External investment pool - 4M, 4M Plus 10,077,968 Money market funds 743,637 Total $25,913,409 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. The 4M Term Series investments are designed to be held to maturity. Withdrawal prior to maturity requires 7 days notice of redemption and is subject to penalties. 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. 55 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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, 2023, 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 – 12.8% Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2023 are as follows: Street Community Improvement HRA TIF Nonmajor General Center Debt Service Improvements Funds Total Special assessments receivable $6,158 $ - $1,198,147 $ - $7,879 $1,212,184 Delinquent property taxes 8,000 - 1,900 - 2,300 12,200 Delinquent tax increment - 8,000 - 6,600 - 14,600 Lease receivable 1,164,060 590,360 - - - 1,754,420 $1,178,218 $598,360 $1,200,047 $6,600 $10,179 $2,993,404 Major Funds LEASE RECEIVABLES The City leases a portion of its water tower for two cellular tower antenna sites. The leases each contain an initial noncancelable period of 5 years, with four renewal periods of 5 years each at the lessee’s option. Options on the first lease extend through 2038. Options on the second lease extend through 2047. The City considers the likelihood of these options being exercised to be greater than 50%. The agreements call for monthly lease payments of $2,534 - $4,066, with increases of 2.5% - 3.0% per year. The lease receivable is measured at the present value of future minimum lease payments expected to be received during the lease term. The City leases space within its City Hall to the school district. The lease is non-cancellable through 2029. The agreement calls for monthly lease payments of $10,608. The lease receivable is measured at the present value of future minimum lease payments expected to be received during the lease term. At December 31, 2023, the City recorded $1,893,254 in lease receivables and deferred inflows of resources for these arrangements. 2023 Amortization of lease-related deferred inflows: Antenna leases $28,340 Community Space leases 104,642 Total revenue recognized in relation to deferred inflow amortization 132,982 Interest revenue 58,420 Total revenue recognized in relation to leased assets $191,402 56 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 Total Major Funds: General Fund $13,183 $6,285 $ - 19,468 Street Improvement Debt Service 3,112 1,375,486 - 1,378,598 HRA TIF Improvements - - 10,876 10,876 Street Improvement Project - 36,610 - 36,610 Nonmajor Funds 3,872 10,717 - 14,589 Total unavailable revenue $20,167 $1,429,098 $10,876 $1,460,141 57 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2023 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $1,062,883 $ - $ - $1,062,883 Permanent easements 73,984 - - 73,984 Construction in progress 4,732,425 284,296 4,820,778 195,943 Total capital assets, not being depreciated 5,869,292 284,296 4,820,778 1,332,810 Capital assets, being depreciated: Buildings and improvements 10,571,734 165,203 - 10,736,937 Land improvements 584,800 53,231 - 638,031 Furniture, fixtures and equipment 4,928,320 1,598,241 403,552 6,123,009 Streets 43,420,367 3,143,664 - 46,564,031 Storm sewers 428,469 - - 428,469 Intangible assets 56,823 15,294 - 72,117 Total capital assets, being depreciated 59,990,513 4,975,633 403,552 64,562,594 Less accumulated depreciation for: Buildings and improvements 6,242,721 335,339 - 6,578,060 Land improvements 464,526 9,270 - 473,796 Furniture, fixtures and equipment 3,344,160 246,828 403,552 3,187,436 Streets 22,112,865 1,615,534 - 23,728,399 Storm sewers 241,827 - - 241,827 Intangible assets 29,587 8,084 - 37,671 Total accumulated depreciation 32,435,686 2,215,055 403,552 34,247,189 Total capital assets being depreciated - net 27,554,827 2,760,578 - 30,315,405 Governmental activities capital assets - net $33,424,119 $3,044,874 $4,820,778 $31,648,215 58 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 s Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated: Land $2,089,954 $ - $ - $2,089,954 Permanent easements 57,695 - - 57,695 Total capital assets, not being depreciated 2,147,649 - - 2,147,649 Capital assets, being depreciated: Buildings and structures 8,985,360 26,443 - 9,011,803 Land improvements 1,062,122 - - 1,062,122 Furniture, fixtures and equipment 5,459,355 14,294 - 5,473,649 Software and intangibles 62,894 - - 62,894 Stormwater 7,810,879 372,045 - 8,182,924 Distribution and collection system 12,981,818 1,004,148 - 13,985,966 Total capital assets, being depreciated 36,362,428 1,416,930 - 37,779,358 Less accumulated depreciation for: Buildings and structures 3,263,465 230,677 - 3,494,142 Land improvements 163,846 43,891 - 207,737 Furniture, fixtures and equipment 1,703,509 224,238 - 1,927,747 Software and intangibles 26,022 10,534 - 36,556 Stormwater 1,055,913 89,349 - 1,145,262 Distribution and collection system 7,157,865 489,304 - 7,647,169 Total accumulated depreciation 13,370,620 1,087,993 - 14,458,613 Total capital assets being depreciated - net 22,991,808 328,937 - 23,320,745 Business-type activities capital assets - net $25,139,457 $328,937 $ - $25,468,394 59 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $125,216 Public safety 224,774 Public works, including depreciation of general infrastructure assets 1,843,395 Parks and recreation 21,670 Total depreciation expense - governmental activities 2,215,055 Business-type activities: Liquor 80,143 Water/Sewer/Water Plant 688,452 Stormwater 319,398 Total depreciation expense - business-type activities 1,087,993 Total depreciation expense $3,303,048 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, 2023. 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. 60 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 As of December 31, 2023, the long-term debt of the City consisted of the following: Interest Issue Maturity Original Payable Rates Date Date Issue 12/31/2023 Governmental Activities: G.O. Improvement Bonds: G.O. Improvement Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2028 $5,440,000 $810,000 G.O. Improvement Bonds, Series 2014A 2.00-3.00% 4/10/2014 2/1/2030 2,070,000 1,030,000 G.O. Improvement Bonds, Series 2015A 2.00-3.00% 5/19/2015 2/1/2031 2,580,000 1,450,000 G.O. Improvement Bonds, Series 2016A 2.00-2.75% 6/2/2016 2/1/2032 1,455,000 915,000 G.O. Improvement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 1,355,000 370,000 G.O. Improvement Bonds, Series 2017A 3.00% 5/18/2017 2/1/2033 2,600,000 1,835,000 G.O. Improvement Bonds, Series 2018A 3.00-4.00% 5/15/2018 2/1/2034 2,610,000 2,005,000 G.O. Improvement Refunding Bonds, Series 2019A 2.25-4.00% 7/18/2019 2/1/2027 3,315,000 765,000 G.O. Improvement Bonds, Series 2020A 2.00-3.00% 5/19/2020 2/1/2036 3,000,000 2,675,000 G.O. Improvement Refunding Bonds, Series 2021A 2.00% 5/18/2021 2/1/2029 885,000 670,000 G.O. Improvement Bonds, Series 2021A 1.10-2.00% 5/18/2021 2/1/2037 2,085,000 1,935,000 G.O. Improvement Bonds, Series 2022A 3-3.25% 5/26/2022 2/1/2038 2,385,000 2,385,000 Total improvement bonds 29,780,000 16,845,000 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 1,995,000 G.O. Tax Increment Refunding Bonds, Series 2015B 2.00-3.00% 12/29/2015 2/1/2031 4,310,000 2,380,000 Total tax increment revenue bonds 7,975,000 4,375,000 G.O. Tax Abatement Bonds: G.O. Tax Abatement Bonds, Series 2016B 2.00% 6/2/2016 2/1/2026 1,445,000 280,000 G.O. Tax Abatement Refunding Bonds, Series 2017A 3.00% 5/18/2017 2/1/2025 835,000 235,000 G.O. Tax Abatement Refunding Bonds, Series 2019A 3.00-4.00% 7/18/2019 2/1/2035 1,145,000 960,000 Total tax abatement bonds 3,425,000 1,475,000 G.O. Lease Revenue Refunding Bonds: G.O. Lease Revenue Refunding Bonds, Series 2012A 2.00-2.75% 4/25/2012 2/1/2024 3,995,000 395,000 Other G.O. Bonds: G.O. Street Reconstruction Bonds, Series 2014C 2.00-3.00% 7/24/2014 2/1/2024 1,305,000 160,000 G.O. Equipment Certificate, Series 2017A 3.00% 5/18/2017 2/1/2027 520,000 250,000 Total other G.O. bonds 1,825,000 410,000 Unamortized bond premiums N/A 709,584 Total - bonded indebtedness 47,000,000 24,209,584 Compensated absences payable N/A 554,448 Total - governmental activities 47,000,000 24,764,032 Business-type activities Revenue Bonds: G.O. Water and Sewer Revenue Refunding Bonds, Series 2013A 2.00% 4/16/2013 2/1/2024 1,440,000 155,000 Unamortized bond premiums N/A 376 Total - bonded indebtedness 1,440,000 155,376 Compensated absences N/A 160,305 Total City indebtedness - business-type activities 1,440,000 315,681 Total City indebtedness $48,440,000 $25,079,713 61 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 Annual debt service requirements to maturity for long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest 2024 $1,860,000 $433,308 $510,000 $122,062 2025 1,900,000 378,316 530,000 109,313 2026 1,750,000 325,349 555,000 95,700 2027 1,680,000 276,672 580,000 80,081 2028 1,595,000 231,990 605,000 62,975 2029 1,460,000 190,495 635,000 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 87,861 - - 2033 900,000 62,240 - - 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 $16,845,000 $2,353,966 $4,375,000 $541,819 G.O. Improvement Bonds Governmental Activities G.O. Tax Increment Bonds Year Ending December 31 Principal Interest Principal Interest Principal Interest 2024 $275,000 $40,275 $395,000 $4,542 $220,000 $9,000 2025 285,000 32,150 - - 60,000 4,800 2026 160,000 25,700 - - 65,000 2,925 2027 75,000 21,900 - - 65,000 975 2028 75,000 19,275 - - - - 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 $1,475,000 $204,925 $395,000 $4,542 $410,000 $17,700 Revenue Bonds G.O. LeaseG.O. Tax Abatement Bonds Other General Obligation Bonds Governmental Activities Business-Type Activities Year Ending Revenue Bonds December 31 Principal Interest 2024 $155,000 $1,550 62 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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, 2023, was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $18,520,000 $ - $1,675,000 $16,845,000 $1,860,000 G.O. tax increment refunding bonds 4,870,000 - 495,000 4,375,000 510,000 G.O. tax abatement bonds 1,740,000 - 265,000 1,475,000 275,000 G.O. lease revenue refunding bonds 780,000 - 385,000 395,000 395,000 G.O. refunding bonds 170,000 - 170,000 - - G.O. street reconstruction bonds 315,000 - 155,000 160,000 160,000 G.O. equipment certificates 305,000 -55,000 250,000 60,000 Total bonds payable 26,700,000 - 3,200,000 23,500,000 3,260,000 Unamortized bond premiums 828,269 - 118,685 709,584 - Total bonded indebtedness 27,528,269 - 3,318,685 24,209,584 3,260,000 Compensated absences*612,629 -58,181 554,448 182,968 Total governmental activities $28,140,898 $ - $3,376,866 $24,764,032 $3,442,968 Business-type activities: Revenue bonds $300,000 $ - $145,000 $155,000 $155,000 Unamortized bond premiums 4,884 -4,508 376 376 Total bonded indebtedness 304,884 - 149,508 155,376 155,376 Compensated absences*176,092 -15,787 160,305 52,901 Total business-type activities $480,976 $ - $165,295 $315,681 $208,277 *The change in compensated absences is presented as a net change. All long-term bonded indebtedness outstanding at December 31, 2023 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2023 totaled $2,915. 63 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 2022A Road Improvements 2022 road construction Special assessments 13% N/A 2022-2038 2,942,921 86,473 266,222 2022 Mill & Overlay Property tax levy 87% 2021A Road Improvements 2021 road construction Special assessments 17% N/A 2021-2037 2,130,205 185,010 198,931 2021 Mill & Overlay Property tax levy 83% 2021A Refunding of 2013 road construction Special assessments 17% N/A 2013 - 2029 710,500 119,450 89,184 2013B Road Improvements Property tax levy 83% 2020A Street Reconstruction 2020 road construction Special assessments 4% N/A 2020-2036 3,075,175 242,475 200,908 Property tax levy 96% 2019A Improvement Refunding of 2010A Special assessments N/A N/A 2019-2026 821,300 234,600 220,832 Refunding road reconstruction Property tax levy 2019A Tax Abatement 2019 Utility improvements, trails Tax abatement revenue 100% N/A 2019-2035 1,149,500 97,900 81,630 2018A Improvement 2018 road construction Special assessments 30% N/A 2018-2034 2,375,437 225,175 168,118 Property tax levy 70% 2017A Improvements Refunding of 2009A Refunding road reconstruction Special assessments 5% N/A 2017-2025 381,100 193,800 194,524 Property tax levy 95% 2017A Tax Abatement Refunding of 2009A Tax abatement revenue 100% N/A 2017-2025 242,125 118,700 68,428 Refunding Emerald Park improvements 2017A Improvement 2017 road reconstruction Special assessments 17% N/A 2017 - 2033 2,122,300 217,450 222,107 Property tax levy 83% 2017A Equipment Certificate 2017 Equipment note Property tax levy 100% N/A 2017 - 2033 265,300 63,325 338,954 2016A Improvement 2016 road reconstruction Special assessments 52% N/A 2016 - 2032 1,015,519 116,388 83,672 Property tax levy 48% 2016B Tax Abatement Mirror Lake improvements and Tax abatement revenue 100% N/A 2016 - 2026 288,300 96,500 105,898 pedestrian safety improvements 2015A Road Improvements 2015 road construction Special assessments 19% N/A 2015-2031 1,612,356 208,613 178,238 Property tax levy 81% 2015B Tax Increment Refunding 2006B TIF Bonds Tax Increment 100% N/A 2015-2031 2,665,981 337,613 1,054,548 2014A Improvement 2014 road construction Special assessments 18% N/A 2014 - 2030 1,147,128 168,870 167,781 Property tax levy 82% 2014B Tax Increment Refunding 2007 TIF Bonds Tax Increment 100% N/A 2015 -2031 2,250,838 291,800 890,334 2014C Road Improvements Refunding of 2008A Property tax levy 100% N/A 2014 - 2024 162,400 162,125 103,497 Sikver Lake Road improvements 2013A G.O. Water/Sewer Refunding 2003B G.O. Charges for services 100% 5% 2013-2024 156,550 149,550 2,953,454 Revenue Refunding Water/Sewer Revenue Bonds 2012 road construction 2012A Road Improvements Refunding Road improvement Special assessments 13% N/A 2012 - 2028 865,021 344,458 130,125 Bonds 2006A,2007A Property tax levy 87% 2012 building improvements 2012A Lease Revenue Refunding Lease Revenue Property tax levy 100% N/A 2012 - 2024 399,543 398,320 325,183 Bonds 2003A Revenue Pledged Current Year 64 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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. 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. In 2023, legislation repealed the statute delaying increases for members retiring before full retirement age. 65 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 2023 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, 2023 were $209,206. 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 2023 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, 2023 were $532,143. The City’s contributions were equal to the required contributions as set by state statute. D. PENSION COSTS 1. GERF Pension Costs At December 31, 2023, the City reported a liability of $1,906,834 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 $52,505. The net pension liability was measured as of June 30, 2023, 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, 2022 through June 30, 2023, relative to the total employer contributions received from all of PERA’s participating employers. The 66 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 City’s proportionate share was 0.0341% at the end of the measurement period and 0.0334% for the beginning of the period. City’s proportionate share of the net pension liability $1,906,834 State of Minnesota’s proportionate share of the net pension liability associated with the City 52,505 Total $1,959,339 For the year ended December 31, 2023, the City recognized pension expense of $297,401 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $236 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, 2023, 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 $62,621 $13,271 Changes in actuarial assumptions 311,732 522,647 Net difference between projected and actual investment earnings - 74,954 Changes in proportion 36,015 12,834 Contributions paid to PERA subsequent to the measurement date 105,488 - Total $515,856 $623,706 The $105,488 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, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension December 31 Expense 2024 $49,323 2025 (274,451) 2026 53,156 2027 (41,366) 2028 - Thereafter - 67 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 2. PEPFF Pension Costs At December 31, 2023, the City reported a liability of $3,951,079 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2023 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, 2022 through June 30, 2023, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.2288% at the end of the measurement period and 0.2348% for the beginning of the period. The State of Minnesota contributed $18 million to PEPFF during the plan fiscal year ended June 30, 2023. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state aid was paid on October 1, 2022. 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’s proportionate share of the net pension liability associated with the City totaled $159,208. City’s proportionate share of the net pension liability $3,951,079 State of Minnesota’s proportionate share of the net pension liability associated with the City 159,208 Total $4,110,287 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, 2023, the City recognized pension expense of $938,001 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized an additional ($9,589) 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 $20,592 for the year ended December 31, 2023, 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. 68 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 At December 31, 2023, 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 $1,087,774 $ - Changes in actuarial assumptions 4,574,695 5,554,548 Net difference between projected and actual investment earnings - 177,404 Changes in proportion 12,736 129,133 Contributions paid to PERA subsequent to the measurement date 269,671 - Total $5,944,876 $5,861,085 The $269,671 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, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension December 31 Expense 2024 $139,763 2025 16,414 2026 938,268 2027 (286,086) 2028 (994,239) Thereafter 5 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, 2023 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 7.00% 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 7.00% 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 and 1.00% for the PEPFF. 69 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 2022. The assumption changes were adopted by the Board and become effective with the July 1, 2023 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 2023: General Employees Fund Changes in Actuarial Assumptions:  The investment return assumption and single discount rate were changed from 6.50% to 7.00%. Changes in Plan Provisions:  An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023.  The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service.  The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.  A one-time, non-compounding benefit increase of 2.50% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. Police and Fire Fund Changes in Actuarial Assumptions:  The investment return assumption was changed from 6.50% to 7.00%.  The single discount rate changed from 5.40% to 7.00%. Changes in Plan Provisions:  An additional one-time direct state aid contribution of $19.4 million was contributed to the Plan on October 1, 2023.  Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years.  A one-time, non-compounding benefit increase of 3.00% will be payable in a lump sum for calendar year 2024 by March 31, 2024.  Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation.  The total and permanent duty disability benefit was increased, effective July 1, 2023. 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. 70 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 33.5% 5.10% International equity 16.5% 5.30% Bonds 25% 0.75% Unallocated cash 25% 5.90% Total 100% F. DISCOUNT RATE The discount rate used to measure the total pension liability in 2023 was 7.00%. 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 and PEPFF were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 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 $3,373,342 $1,906,834 $700,575 Proportionate share of the PEPFF net pension liability $7,839,411 $3,951,079 $754,349 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. 71 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 I. PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2023 is as follows: GERF $297,637 PEPFF 928,412 Fire Relief 72,289 Total $1,298,338 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. As of December 31, 2022 (measurement date), the plan covered 23 active firefighters and 10 vested terminated firefighters 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 $72,289 in fire state aid to the plan for the year ended December 31, 2023. 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, 2023. The City’s contributions were equal to the required contributions as set by state statute, if applicable. In addition, the City made voluntary contributions of $12,000 to the plan. D. PENSION COSTS At December 31, 2023, the City reported a net pension asset of $397,881 for the SVF plan. 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 net pension asset was measured as of December 31, 2022. Previously, the City’s fiscal year-end and the measurement date were the same. However current year SVF plan information from PERA is not available. 72 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 The effect of re-reporting SVF plan information is not considered material to the financial statements. The following table presents the changes in net pension asset during the year. Total Pension Plan Fiduciary Net Pension Liability Net Position Asset (a) (b) (b) - (a) 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, 2023, the City recognized pension expense of $72,289. At December 31, 2023, the City reported deferred outflows and inflows of resources related to pensions 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 - Contributions paid subsequent to the measurement date 12,000 - Total $179,297 $143,764 73 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 The $12,000 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as an increase to the net pension asset in the year ending December 31, 2024. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension December 31 Expense 2024 ($16,487) 2025 (6,994) 2026 19,405 2027 42,515 2028 (8,656) Thereafter (6,250) E. ACTUARIAL ASSUMPTIONS The total pension liability, which was measured as of 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% There were no changes in actuarial assumptions during 2022 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 asset $372,333 $397,881 $421,379 74 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 33.5% 5.10% International equity 16.5% 5.30% Bonds 25% 0.75% Unallocated cash 25% 5.90% 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. 75 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 I. PENSION PLAN FIDUCIARY NET POSITION Detailed information about the SVF plan’s fiduciary net position at December 31, 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 2023, 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. 76 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 C. PARTICIPANTS As of the December 31, 2021 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 $924,615 was measured as of December 31, 2022 and was determined by an actuarial valuation as of December 31, 2021. Changes in the total OPEB liability during the measurement period were: Balance - beginning of year $1,007,566 Changes for the year: Service cost 79,666 Interest 21,820 Changes of benefit terms - Differences between expected and actual experience 2,116 Changes in assumptions (130,573) Benefit payments (55,980) Net changes (82,951) Balance - end of year $924,615 Changes in assumptions reflect a change in the discount rate from 2.06% for the measurement date of December 31, 2021 to 4.05% for the measurement date of December 31, 2022. E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the December 31, 2021 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 4.05% 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. 77 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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: Current 1% Decrease Discount Rate 1% Increase Total OPEB liability $988,987 $924,615 $863,355 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: Current Healthcare Cost 1% Decrease Trend Rates 1% Increase Total OPEB liability $824,223 $924,615 $1,040,602 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2023, the City recognized $23,679 of OPEB expense. At December 31, 2023, 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 $52,042 $307,775 Differences between expected and actual experience 374,337 199,057 Contributions subsequent to the measurement date 55,980 - Total $482,359 $506,832 $55,980 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, 2024. 78 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending OPEB December 31, Expense 2024 ($15,615) 2025 (15,615) 2026 (15,615) 2027 (15,615) 2028 (16,774) Thereafter (1,219) Note 10 INTERFUND LOANS AND TRANSFERS Interfund loans receivable and payable balances at December 31, 2023 are as follows: Fund Receivable Payable Purpose Major funds: Public Utilities Infrastructure $1,156,225 $ - HRA TIF Improvements - 959,326 Provide financing for pay off of Fannie Mae loan Nonmajor funds: Revolving Improvement - 5,620 Provide financing for Arbors Alley Park Improvement Fund - 191,279 Provide financing for tennis court maintenance - Total $1,156,225 $1,156,225 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 $ - $165,950 $ - $ - $60,000 $ - $86,300 $312,250 Community Center - - - - 120,000 - - 120,000 Street Improvement Debt Service - - - - 2,892 - - 2,892 HRA TIF Improvements 15,000 - - - 631,414 - - 646,414 Street Improvement Project - - 235,041 - - - - 235,041 Public Utilities Infrastructure - - - - - - - - Nonmajor - - 56,000 - 160,825 - - 216,825 Business-type activities: Liquor 275,000 - - - - - - 275,000 Stormwater Utility - - - - - - - - Total transfers $290,000 $165,950 $291,041 $0 $975,131 $0 $86,300 $1,808,422 Transfer out Governmental Funds Proprietary Funds Transfer In All 2023 transfers are considered routine and consistent with previous practices. 79 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 Note 11 DEFICIT FUND BALANCES/NET POSITION The City reported deficit fund balances/net position at December 31, 2023 as follows: Fund Amount Nonmajor funds: Internal Service Fund $7,085,593 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. 80 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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, 2023. 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 $907,022. At December 31, 2023, the principal amount outstanding on the note was $834,092. 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, 2023, the principal and unpaid interest amount outstanding on the note was $1,132,475. 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 81 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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 $382,192. At December 31, 2023, the principal amount outstanding on the note was $0. TIF District #3-5, Doran Apartments Issued in 2023 in the principal sum of $1,950,000 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 $27,919. At December 31, 2023, the principal amount outstanding on the note was $966,095. TIF District # 1953, Lowry Grove Issued in 2023 in the principle sum of $2,350,000 with an interest rate of 4.0% per annum. Principal and interest shall be paid on February 1 and august1 thereafter and including February 1, 2032. 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 increments received in the prior six months. The payment reimburses the developer for public improvements The City has no obligation for any unpaid balance of principal and interest that may remain after the final payment on February 1, 2032. The current year abatement amounts to $16,470. At December 31, 2023, the principal and interest amount outstanding on the note was $2,418,782. 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, 2023. 82 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 Note 14 FUND BALANCE A. CLASSIFICATIONS At December 31, 2023, a summary of the governmental fund balance classifications are as follows: Street Improvement Street Public Other Community Debt HRA TIF Improvement Utilities Governmental General Fund Center Service Projects Projects Infrastructure Funds Total Nonspendable: Prepaid items $172,890 $3,084 $ - $554 $ - $ - $671 $177,199 Inventory 22,220 - - - - - - 22,220 Total nonspendable 195,110 3,084 - 554 - - 671 199,419 Restricted for: Tax increment - - - 3,777,618 - - - 3,777,618 Public safety 401,501 - - - - - 59,045 460,546 Capital Improvements - - - - 113,111 - - 113,111 Debt service - - 3,571,457 - - - 769,624 4,341,081 Total restricted 401,501 0 3,571,457 3,777,618 113,111 0 828,669 8,692,356 Committed to: Community Center - 169,536 - - - - - 169,536 Redevelopment activities - - - - - - 840,754 840,754 Total committed 0 169,536 0 0 0 0 840,754 1,010,290 Assigned to: Street improvements/rehab - - - - 140,187 - - 140,187 Building improvements - - - - - - 711,034 711,034 Public utilities infrastructure - - - - - 3,565,037 - 3,565,037 Parks and recreation - - - - - - 215,395 215,395 Other capital improvements - - - - - - 1,430,030 1,430,030 Total assigned 0000140,1873,565,0372,356,4596,061,683 Unassigned 4,460,649 - - - (98,966) - - 4,361,683 Total $5,057,260 $172,620 $3,571,457 $3,778,172 $154,332 $3,565,037 $4,026,553 $20,325,431 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, 2023, the unassigned fund balance of the General Fund was 54% of the subsequent year’s budgeted expenditures. 83 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 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, 2023, there was one series of Multi-family Housing Revenue Bonds outstanding. The aggregate issued amount was $16,950,000. The balance outstanding at December 31, 2023 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 2023 and 2022 is computed as follows: December 31, December 31, 2023 2022 Market value: Ramsey County $489,648,800 $428,489,400 Hennepin County 871,731,200 798,681,700 Total market value 1,361,380,000 1,227,171,100 Debt limit percentage 3% 3% Debt limit 40,841,400 36,815,133 Amount of debt applicable to debt limit: Total bonded debt 23,655,000 27,000,000 Less nonapplicable debt: Revenue bonds (water, sewer) (155,000) (300,000) Tax abatement bonds (1,475,000) (1,740,000) Improvement bonds (13,870,000) (15,445,000) Tax increment bonds (4,375,000) (4,870,000) Total amount of debt applicable to debt limit 3,780,000 4,645,000 Legal debt margin $37,061,400 $32,170,133 84 CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2023 Note 17 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. 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. Statement No. 102 Certain Risk Disclosures. The provisions of this Statement are effective for reporting periods beginning after June 15, 2024. Statement No. 103 Financial Reporting Model Improvements. The provisions of this Statement are effective for fiscal years beginning after June 15, 2025. The effect these standards may have on future financial statements is not determinable at this time. 85 - This page intentionally left blank - 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, 2023 With Comparative Totals For December 31, 2022 Variance with 2023 Final Budget 2022 Actual Positive Actual Original Final Amounts (Negative) Amounts Revenues: General property taxes $5,632,793 $5,632,793 $5,678,378 $45,585 $5,303,007 Special assessments - - 5,990 5,990 5,935 Licenses and permits 314,930 314,930 687,640 372,710 530,924 Intergovernmental: Federal: Public safety grants 210,539 210,539 37,047 (173,492) 357,065 State: Local governement aid 652,707 652,707 652,707 - 649,440 Police aid 204,043 204,043 208,047 4,004 214,782 Municipal state aid - street maintenance 107,826 107,826 104,814 (3,012) 135,784 Public safety aid 401,501 401,501 - Fire aid - - 72,289 72,289 - County: Other 24,384 24,384 40,445 16,061 13,240 Local: Other 24,929 24,929 13,783 (11,146) 71,195 Total intergovernmental 1,224,428 1,224,428 1,530,633 306,205 1,441,506 Charges for services: Police contracts 860,310 860,310 860,310 - 802,283 Antenna rental - water tower 47,903 47,903 66,806 18,903 62,118 Other 226,767 226,767 237,094 10,327 219,518 Total charges for services 1,134,980 1,134,980 1,164,210 29,230 1,083,919 Cable franchise fees 93,053 93,053 89,882 (3,171) 96,099 Fines and forfeits 73,605 73,605 101,713 28,108 74,027 Contributions and donations 1,000 1,000 1,000 - 6,162 Other revenue: Investment income 500 500 190,205 189,705 (92,847) Refunds and reimbursments 3,500 3,500 6,725 3,225 9,652 Miscellaneous - other 19,249 19,249 13,284 (5,965) 42,264 Total other revenue 23,249 23,249 210,214 186,965 (40,931) Total revenues 8,498,038 8,498,038 9,469,660 971,622 8,500,648 Expenditures: General government: Mayor and council: Current: Personal services 40,819 40,819 40,810 9 40,819 Other services and charges 79,324 79,324 80,704 (1,380) 73,298 Total mayor and council 120,143 120,143 121,514 (1,371) 114,117 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, 2023 With Comparative Totals For December 31, 2022 Variance with 2023 Final Budget 2022 Actual Positive Actual Original Final Amounts (Negative) Amounts Expenditures: (continued) General government: (continued) Public relations/cable: Current: Personal services $11,694 $11,694 $11,895 ($201) $11,371 Supplies 700 700 - 700 - Other services and charges 46,015 46,015 43,723 2,292 40,782 Total public relations/cable 58,409 58,409 55,618 2,791 52,153 General management: Current: Personal services 172,607 172,607 177,569 (4,962) 164,144 Supplies 250 250 243 7 226 Other services and charges 30,289 30,289 26,140 4,149 24,297 Total general management 203,146 203,146 203,952 (806) 188,667 Elections: Current: Personal services 130,797 130,797 120,025 10,772 113,944 Supplies 1,910 1,910 1,077 833 555 Other services and charges 12,170 12,170 9,146 3,024 16,474 Total elections 144,877 144,877 130,248 14,629 130,973 Finance: Current: Personal services 255,765 255,765 257,953 (2,188) 227,092 Supplies 9,652 9,652 5,253 4,399 10,861 Other services and charges 126,956 126,956 127,374 (418) 119,164 Total finance 392,373 392,373 390,580 1,793 357,117 Assessing: Current: Personal services 5,281 5,281 4,669 612 4,759 Supplies 200 200 55 145 55 Other services and charges 78,000 78,000 78,000 - 73,000 Total assessing 83,481 83,481 82,724 757 77,814 Legal: Current: Contracted services 142,000 142,000 86,247 55,753 76,776 Planning and zoning: Current: Personal services 14,685 14,685 14,053 632 13,815 Supplies 125 125 68 57 18 Other services and charges 75,195 75,195 68,797 6,398 64,459 Total planning and zoning 90,005 90,005 82,918 7,087 78,292 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, 2023 With Comparative Totals For December 31, 2022 Variance with 2023 Final Budget 2022 Actual Positive Actual Original Final Amounts (Negative) Amounts Expenditures: (continued) General government: (continued) General government buildings: Current: Other services and charges $127,308 $127,308 $145,313 ($18,005) $124,428 Total general government 1,361,742 1,361,742 1,299,114 62,628 1,200,337 Public safety: Emergency management: Current: Personal services 92,281 92,281 86,446 5,835 87,581 Supplies 570 570 - 570 - Other services and charges 3,298 3,298 2,937 361 2,142 Total civil defense 96,149 96,149 89,383 6,766 89,723 Police protection: Current: Personal services 3,581,000 3,581,000 3,463,784 117,216 3,378,024 Supplies 118,949 118,949 132,778 (13,829) 95,275 Other services and charges 336,632 336,632 325,018 11,614 282,100 Total police protection 4,036,581 4,036,581 3,921,580 115,001 3,755,399 Fire protection: Current: Personal services 1,350,677 1,350,677 1,172,608 178,069 1,045,835 Supplies 57,641 57,641 54,307 3,334 62,073 Other services and charges 121,266 121,266 145,596 (24,330) 105,300 Total fire protection 1,529,584 1,529,584 1,372,511 157,073 1,213,208 Protective inspections: Current: Personal services 15,058 15,058 15,243 (185) 14,276 Supplies 150 150 - 150 161 Other services and charges 148,892 148,892 359,896 (211,004) 225,445 Total protective inspections 164,100 164,100 375,139 (211,039) 239,882 DARE program: Current: Personal services - - 4,800 (4,800) 47 Total public safety 5,826,414 5,826,414 5,763,413 63,001 5,298,259 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, 2023 With Comparative Totals For December 31, 2022 Variance with 2023 Final Budget 2022 Actual Positive Actual Original Final Amounts (Negative) Amounts Public works: Street maintenance: Current: Personal services $517,919 $517,919 $475,355 $42,564 $463,671 Supplies 26,800 26,800 29,664 (2,864) 22,012 Other services and charges 127,852 127,852 160,835 (32,983) 169,655 Total street maintenance 672,571 672,571 665,854 6,717 655,338 Equipment maintenance: Current: Personal services 55,286 55,286 55,332 (46) 51,962 Supplies 99,830 99,830 70,344 29,486 94,727 Other services and charges 71,164 71,164 72,625 (1,461) 67,199 Total equipment maintenance 226,280 226,280 198,301 27,979 213,888 Tree and weed care: Current: Personal services 52,228 52,228 51,590 638 47,485 Other services and charges 3,875 3,875 3,994 (119) 1,801 Total tree and weed care 56,103 56,103 55,584 519 49,286 Total public works 954,954 954,954 919,739 35,215 918,512 Parks and recreation: Park maintenance: Current: Personal services 193,264 193,264 196,925 (3,661) 183,378 Supplies 20,352 20,352 16,221 4,131 18,654 Other services and charges 72,180 72,180 59,406 12,774 65,422 Total park maintenance 285,796 285,796 272,552 13,244 267,454 Recreation: Current: Community services 52,176 52,176 52,176 - 52,176 Total parks and recreation 337,972 337,972 324,728 13,244 319,630 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, 2023 With Comparative Totals For December 31, 2022 Variance with 2023 Final Budget 2022 Actual Positive Actual Original Final Amounts (Negative) Amounts Expenditures: (continued) Nondepartmental: Supplies $72,206 $72,206 $50,641 $21,565 $40,250 Insurance deductible costs 15,000 15,000 37,372 (22,372) 5,359 Total nondepartmental 87,206 87,206 88,013 (807) 45,609 Total expenditures 8,568,288 8,568,288 8,395,007 173,281 7,782,347 Revenues over (under) expenditures (70,250) (70,250) 1,074,653 1,144,903 718,301 Other financing sources (uses): Transfers in 290,000 290,000 290,000 - 290,000 Transfers out (206,300) (206,300) (312,250) (105,950) (880,230) Total other financing sources (uses) 83,700 83,700 (22,250) (105,950) (590,230) Net change in fund balance $13,450 $13,450 1,052,403 $1,038,953 128,071 Fund balance - January 1 4,004,857 3,876,786 Fund balance - December 31 $5,057,260 $4,004,857 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, 2023 With Comparative Totals For December 31, 2022 Variance with 2023 Final Budget 2022 Actual Positive Actual Original Final Amounts (Negative) Amounts Revenues: Charges for services: Rental receipts $127,300 $127,300 $127,300 $ - $127,300 Investment income 50 50 6,653 6,603 (2,852) Total revenues 127,350 127,350 133,953 6,603 124,448 Expenditures: Parks and recreation: Current: Personal services 51,675 51,675 52,509 (834) 49,425 Supplies 5,500 5,500 6,418 (918) 5,592 Contractual services 129,650 129,650 106,415 23,235 128,477 Total expenditures 186,825 186,825 165,342 21,483 183,494 Revenues over (under) expenditures (59,475) (59,475) (31,389) 28,086 (59,046) Other financing sources (uses): Transfer in 120,000 120,000 165,950 45,950 170,474 Transfer out (110,000) (110,000) (120,000) (10,000) (105,474) Total other financing sources (uses)10,000 10,000 45,950 35,950 65,000 Net change in fund balance ($49,475) ($49,475) 14,561 $64,036 5,954 Fund balance (deficit) - January 1 158,059 152,105 Fund balance (deficit) - December 31 $172,620 $158,059 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, 2023 2023 2022 2021 2020 2019 2018 Total OPEB liability: Service cost $79,666 $72,464 $62,011 $49,034 $66,821 $60,682 Interest 21,820 15,890 18,122 36,179 29,763 28,711 Changes of benefit terms - - - - - - Differences between expected and actual experience 2,116 479,711 8,294 (347,833) - - Changes in assumptions (130,573) (222,336) 19,545 52,159 (43,327) 21,006 Benefit payments (55,980) (30,409) (30,213) (21,165) (11,075) (10,672) Net change in total OPEB liability (82,951) 315,320 77,759 (231,626) 42,182 99,727 Total OPEB liability - beginning 1,007,566 692,246 614,487 846,113 803,931 704,204 Total OPEB liability - ending $924,615 $1,007,566 $692,246 $614,487 $846,113 $803,931 Covered-employee payroll $5,000,000 $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 18.5% 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% 2023 2023 0.0341%1,906,834 52,505 1,959,339 2,709,607 72.3% 83.1% 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% 2023 209,206 209,206 - 2,789,412 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 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 0.2770% $3,147,368 $ - $3,147,368 $2,535,887 124.1% 86.6% 2016 2016 0.2920% 11,718,468 - 11,718,468 2,816,408 416.1% 63.9% 2017 2017 0.2650%3,577,815 - 3,577,815 2,722,821 131.4% 85.4% 2018 2018 0.2426%2,585,866 - 2,585,866 2,553,675 101.3% 88.8% 2019 2019 0.2442%2,599,756 - 2,599,756 2,576,175 100.9% 89.2% 2020 2020 0.2369%3,122,595 73,538 3,196,133 2,672,439 116.8% 87.2% 2021 2021 0.2368%1,827,845 82,193 1,910,038 2,798,746 65.3% 93.7% 2022 2022 0.2348% 10,217,569 446,256 10,663,825 2,851,986 358.3% 70.5% 2023 2023 0.2288%3,951,079 159,208 4,110,287 3,005,197 131.5% 86.5% 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 - This page intentionally left blank - 98 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% 2023 532,143 532,143 - 3,006,456 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. 99 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION 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 - December 31 2023 & 2022* 2021 2020 Measurement date - December 31 2022 2021 2020 Total pension liability: Service cost $33,436 $28,986 $28,181 Interest 49,245 48,237 46,153 Changes in benefit terms - - - Differences between expected and actual experience (32,532)(58,248)(33,785) Changes of assumptions - - - Benefit payments - (13,240) - Net change in total pension liability 50,149 5,735 40,549 Total pension liability - beginning 787,316 781,581 741,032 Total pension liability - ending (a)$837,465 $787,316 $781,581 Plan fiduciary net position: Contributions - employer $ - $7,890 $6,000 Contributions - State of Minnesota 67,800 60,530 58,407 Contributions - employee - - - Net investment income (205,177)117,572 150,122 Benefit payments - (13,240) - Administrative expense (1,014)(2,919)(12,185) Net change in plan fiduciary net position (138,391)169,833 202,344 Plan fiduciary net position - beginning 1,373,737 1,203,904 1,001,560 Plan fiduciary net position - ending (b)$1,235,346 $1,373,737 $1,203,904 Net pension asset - ending (b) - (a)$397,881 $586,421 $422,323 Plan fiduciary net position as a percentage of the total pension liability 147.5%174.5%154.0% Covered-employee payroll N/A N/A N/A Net pension liability as a percentage of covered employee payroll N/A N/A N/A Pension benefit per year of service $3,800 $3,800 $3,800 Number of plan participants 34 31 33 GASB 68 was implemented in 2015. Information prior to 2015 is not available. N/A - the Relief Association is comprised of paid on-call firefighters whose pay does not meet the definition of covered payroll. * Prior to 2023, the fiscal year end and measurement date were the same. However, 2023 SVF plan information from PERA is not available and therefore, 2022 amounts were re-reported in the City's 2023 ACFR. See accompanying notes to the required supplementary information. 100 Statement 16 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 $40,799 $37,633 $37,542 $47,233 $44,095 42,195 40,951 44,308 31,829 30,759 35,173 26,091 - - - (71,654) - (35,041) - - 15,462 - 2,699 (36,075) - (27,928) (144,500)(7,260)(80,200)(25,472) 34,047 (39,825)42,248 (37,213)49,382 706,985 746,810 704,562 741,775 692,393 $741,032 $706,985 $746,810 $704,562 $741,775 $6,000 $6,000 $6,000 $6,000 $6,000 54,716 53,083 51,206 51,174 48,725 - - - - - 98,394 (54,281)93,511 39,971 (23,129) (27,928) (144,500)(7,260)(80,200)(25,472) (11,640)(11,547)(11,829)(8,653)(10,561) 119,542 (151,245)131,628 8,292 (4,437) 882,018 1,033,263 901,635 893,343 897,780 $1,001,560 $882,018 $1,033,263 $901,635 $893,343 $260,528 $175,033 $286,453 $197,073 $151,568 135.2%124.8%138.4%128.0%120.4% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $3,800 $3,500 $3,300 $3,300 $3,300 30 33 35 32 32 See accompanying notes to the required supplementary information. 101 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 2023 - 12,000 (12,000) - 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. 102 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 2023 Changes in Actuarial Assumptions:  The investment return assumption and single discount rate were changed from 6.50% to 7.00%.   2023 Changes in Plan Provisions:  An additional one‐time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023.  The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service.  The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.  A one‐time, non‐compounding benefit increase of 2.50% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 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. 103 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. 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. 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 2023 Changes in Actuarial Assumptions:  The investment return assumption was changed from 6.50% to 7.00%.  The single discount rate changed from 5.40% to 7.00%. 2023 Changes in Plan Provisions:  An additional one‐time direct state aid contribution of $19.4 million was contributed to the Plan on October 1, 2023.  Vesting requirement for new hires after June 30, 2014, was changed from a graded 20‐year vesting schedule to a graded 10‐year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years.  A one‐time, non‐compounding benefit increase of 3.00% will be payable in a lump sum for calendar year 2024 by March 31, 2024.  Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation.  The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes 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. 104 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2022 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. 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. 105 CITY OF ST. ANTHONY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2022 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 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. 106 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 107 - This page intentionally left blank - 108 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). 109 CITY OF ST. ANTHONY, MINNESOTA COMBINING BALANCE SHEET Statement 18 NONMAJOR GOVERNMENTAL FUNDS December 31, 2023 With Comparative Totals For December 31, 2022 Special Debt Capital Revenue Service Project 2023 2022 Assets Cash and investments $915,830 $767,216 $2,751,439 $4,434,485 $4,809,318 Accounts receivable - net 132 - - 132 35,498 Property taxes receivable: Delinquent 1,383 1,072 1,417 3,872 11,611 Due from county 818 2,408 2,520 5,746 4,558 Prepaid items 671 - - 671 1,419 Loans receivable 665 - - 665 2,205 Special assessments receivable - - 10,717 10,717 3,174 Total assets $919,499 $770,696 $2,766,093 $4,456,288 $4,867,783 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $2,500 $ - $200,575 $203,075 $8,949 Due to other governmental units 10,614 - 26 10,640 967 Salaries payable 4,532 - - 4,532 4,031 Interfund loan payable - - 196,899 196,899 197,854 Total liabilities 17,646 - 397,500 415,146 211,801 Deferred inflows of resources: Unavailable revenue 1,383 1,072 12,134 14,589 14,784 Fund balance: Nonspendable 671 - - 671 1,419 Restricted 59,045 769,624 - 828,669 926,184 Committed 840,754 - - 840,754 739,729 Assigned - - 2,356,459 2,356,459 2,973,866 Total fund balance 900,470 769,624 2,356,459 4,026,553 4,641,198 Total liabilities, deferred inflows of resources, and fund balance $919,499 $770,696 $2,766,093 $4,456,288 $4,867,783 Total Nonmajor Governmental Funds 110 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, 2023 With Comparative Totals For December 31, 2022 Special Debt Capital Revenue Service Project 2023 2022 Revenues: General property taxes $210,381 $499,509 $512,313 $1,222,203 $1,167,527 Intergovernmental - - 494,614 494,614 - Special assessments - - 1,763 1,763 1,846 Fines and forfeits 9,276 - - 9,276 44,531 Investment income (loss) 39,821 20,050 125,082 184,953 (77,329) Contributions and donations - - 50,844 50,844 12 Refunds and reimbursements 45 - - 45 2,051 Total revenues 259,523 519,559 1,184,616 1,963,698 1,138,638 Expenditures: Current: General government - - 81,212 81,212 - Public safety 11,353 - 131,489 142,842 12,712 Public works - - 49,455 49,455 50,123 Parks and recreation - - 13,587 13,587 13,336 Housing and redevelopment 145,618 - - 145,618 156,938 Capital outlay 11,320 - 1,616,707 1,628,027 970,860 Debt service: Principal - 1,135,000 - 1,135,000 1,095,000 Interest - 171,258 5,256 176,514 203,199 Paying agent fees - 2,910 - 2,910 2,863 Total expenditures 168,291 1,309,168 1,897,706 3,375,165 2,505,031 Revenues over (under) expenditures 91,232 (789,609) (713,090) (1,411,467) (1,366,393) Other financing sources: Sale of capital assets - - 38,516 38,516 608,497 Transfers in - 702,239 272,892 975,131 1,871,305 Transfers out - - (216,825) (216,825) (109,721) Total other financing sources - 702,239 94,583 796,822 2,370,081 Net change in fund balance 91,232 (87,370) (618,507) (614,645) 1,003,688 Fund balance - January 1 809,238 856,994 2,974,966 4,641,198 3,637,510 Fund balance - December 31 $900,470 $769,624 $2,356,459 $4,026,553 $4,641,198 Total Nonmajor Governmental Funds 111 - This page intentionally left blank - 112 NONMAJOR GOVERNMENTAL FUNDS 113 - This page intentionally left blank - 114 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. 115 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 20 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2023 With Comparative Totals For December 31, 2022 Police Forfeiture Fund HRA Fund 2023 2022 Assets Cash and investments $59,045 $856,785 $915,830 $809,757 Accounts receivable - net - 132 132 132 Property taxes receivable: Delinquent - 1,383 1,383 2,674 Due from county - 818 818 1,086 Prepaid items - 671 671 319 Loans receivable - 665 665 2,205 Total assets $59,045 $860,454 $919,499 $816,173 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $2,500 $2,500 $ - Due to other governments - 10,614 10,614 230 Salaries payable - 4,532 4,532 4,031 Total liabilities - 17,646 17,646 4,261 Deferred inflows of resources: Unavailable revenue - 1,383 1,383 2,674 Fund balance: Nonspendable - 671 671 319 Restricted 59,045 - 59,045 69,190 Committed - 840,754 840,754 739,729 Total fund balance 59,045 841,425 900,470 809,238 Total liabilities, deferred inflows of resources, and fund balance $59,045 $860,454 $919,499 $816,173 Total Nonmajor Special Revenue Funds 116 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, 2023 With Comparative Totals For December 31, 2022 Police Forfeiture Fund HRA Fund 2023 2022 Revenues: General property taxes $ - $210,381 $210,381 $208,746 Fines and forfeits 9,276 - 9,276 44,531 Investment income (loss) 3,252 36,569 39,821 (12,851) Refunds and reimbursements - 45 45 101 Total revenues 12,528 246,995 259,523 240,527 Expenditures: Current: Public safety 11,353 - 11,353 12,712 Housing and redevelopment - 145,618 145,618 156,938 Capital outlay 11,320 - 11,320 - Total expenditures 22,673 145,618 168,291 169,650 Revenues over (under) expenditures (10,145) 101,377 91,232 70,877 Other financing sources (uses): Sale of city property - - - 511,991 Net change in fund balance (10,145) 101,377 91,232 582,868 Fund balance - January 1 69,190 740,048 809,238 226,370 Fund balance - December 31 $59,045 $841,425 $900,470 $809,238 Total Nonmajor Special Revenue Funds 117 - This page intentionally left blank - 118 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. 119 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 22 NONMAJOR DEBT SERVICE FUNDS December 31, 2023 With Comparative Totals For December 31, 2022 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement HRA TIF Debt Service 2023 2022 Assets Cash and investments $391,003 $188,193 $5,706 $177,483 $4,831 $767,216 $857,490 Property taxes receivable: Delinquent 656 217 - 199 - 1,072 4,957 Due from county 1,565 334 - 509 - 2,408 1,801 Total assets $393,224 $188,744 $5,706 $178,191 $4,831 $770,696 $864,248 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - $ - $ - $1,825 Due to other governments - - - - - - 472 Total liabilities - - - - - - 2,297 Deferred inflows of resources: Unavailable revenue 656 217 - 199 - 1,072 4,957 Fund balance: Restricted 392,568 188,527 5,706 177,992 4,831 769,624 856,994 Total liabilities, deferred inflows of resources, and fund balance $393,224 $188,744 $5,706 $178,191 $4,831 $770,696 $864,248 Total Nonmajor Debt Service Funds 120 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, 2023 With Comparative Totals For December 31, 2022 Public Facilities Revenue Bonds Tax Abatement Fund Equipment Certificates Fund HSIP Tax Abatement HRA TIF Debt Service 2023 2022 Revenues: General property taxes $325,183 $68,428 $ - $105,898 $ - $499,509 $496,867 Investment income (loss)7,646 6,796 287 5,047 274 20,050 (12,863) Total revenues 332,829 75,224 287 110,945 274 519,559 484,004 Expenditures: Debt service: Principal 385,000 110,000 55,000 90,000 495,000 1,135,000 1,095,000 Interest 13,320 8,700 8,325 6,500 134,413 171,258 197,761 Paying agent fees - 377 352 727 1,454 2,910 2,863 Total expenditures 398,320 119,077 63,677 97,227 630,867 1,309,168 1,295,624 Revenues over (under) expenditures (65,491) (43,853) (63,390) 13,718 (630,593) (789,609) (811,620) Other financing sources (uses): Transfers in 7,500 - 63,325 - 631,414 702,239 635,863 Net change in fund balance (57,991) (43,853)(65) 13,718 821 (87,370) (175,757) Fund balance - January 1 450,559 232,380 5,771 164,274 4,010 856,994 1,032,751 Fund balance - December 31 $392,568 $188,527 $5,706 $177,992 $4,831 $769,624 $856,994 Total Nonmajor Debt Service Funds 121 - This page intentionally left blank - 122 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. 123 CITY OF ST. ANTHONY, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 24 NONMAJOR CAPITAL PROJECT FUNDS December 31, 2023 With Comparative Totals For December 31, 2022 Infrastructure Park Capital Building Improvement Improvement Equipment Improvement Fund Fund Fund Fund 2023 2022 Assets Cash and investments $973,899 $406,627 $633,709 $737,204 $2,751,439 $3,142,071 Accounts receivable - net - - - - - 35,366 Property taxes receivable: Delinquent 737 (6) 532 154 1,417 3,980 Due from county 407 47 1,620 446 2,520 1,671 Prepaid items - - - - - 1,100 Special assessment receivable 10,717 - - - 10,717 3,174 Total assets $985,760 $406,668 $635,861 $737,804 $2,766,093 $3,187,362 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $173,959 $26,616 $200,575 $7,124 Due to other governmental units 26 - - - 26 265 Interfund loan payable 5,620 191,279 - - 196,899 197,854 Total liabilities 5,646 191,279 173,959 26,616 397,500 205,243 Deferred inflows of resources: Unavailable revenue 11,454 (6) 532 154 12,134 7,153 Fund balance: Nonspendable - - - - - 1,100 Assigned 968,660 215,395 461,370 711,034 2,356,459 2,973,866 Total fund balance 968,660 215,395 461,370 711,034 2,356,459 2,974,966 Total liabilities, deferred inflows of resources, and fund balance $985,760 $406,668 $635,861 $737,804 $2,766,093 $3,187,362 Capital Project Funds Total Nonmajor 124 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, 2023 With Comparative Totals For December 31, 2022 Infrastructure Park Capital Building Improvement Improvement Equipment Improvement Fund Fund Fund Fund 2023 2022 Revenues: General property taxes $70,125 $10,009 $338,954 $93,225 $512,313 $461,914 Special assessments 1,763 - - - 1,763 1,846 Intergovernmental - - 494,614 - 494,614 - Investment income (loss)49,850 21,286 22,493 31,453 125,082 (51,615) Contributions and donations - 40,844 10,000 - 50,844 12 Refunds and reimbursements - - - - - 1,950 Total revenues 121,738 72,139 866,061 124,678 1,184,616 414,107 Expenditures: Current: General government - - 38,434 42,778 81,212 - Public safety - - 131,489 - 131,489 - Public works 43,949 - 5,506 - 49,455 50,123 Parks and recereation - 11,856 1,731 - 13,587 13,336 Capital outlay - 165,203 1,398,273 53,231 1,616,707 970,860 Debt service: Interest 591 4,665 - - 5,256 5,438 Total expenditures 44,540 181,724 1,575,433 96,009 1,897,706 1,039,757 Revenues over (under) expenditures 77,198 (109,585) (709,372) 28,669 (713,090) (625,650) Other financing sources (uses): Sale of capital assets - - 38,516 - 38,516 96,506 Transfers in 2,892 60,000 90,000 120,000 272,892 1,235,442 Transfers out (146,000) - (63,325) (7,500) (216,825) (109,721) Total other financing sources (uses) (143,108) 60,000 65,191 112,500 94,583 1,222,227 Net change in fund balance (65,910) (49,585) (644,181) 141,169 (618,507) 596,577 Fund balance - January 1 1,034,570 264,980 1,105,551 569,865 2,974,966 2,378,389 Fund balance - December 31 $968,660 $215,395 $461,370 $711,034 $2,356,459 $2,974,966 Total Nonmajor Capital Project Funds 125 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, 2023 With Comparative Totals For December 31, 2022 Variance with Final Budget Positive 2022 Original Final Actual (Negative) Actual Revenues: Forfeiture and confiscation $10,000 $10,000 $9,276 ($724) $44,531 Investment income 50 50 3,252 3,202 (1,713) Total revenues 10,050 10,050 12,528 2,478 42,818 Expenditures: Public safety: Current: Supplies 13,050 13,050 6,353 6,697 8,712 Other services and charges 5,000 5,000 5,000 - 4,000 Capital outlay - - 11,320 (11,320) - Total expenditures 18,050 18,050 22,673 (4,623)12,712 Revenues over (under) expenditures ($8,000) ($8,000) (10,145) $7,101 30,106 Fund balance - January 1 69,190 39,084 Fund balance - December 31 $59,045 $69,190 2023 Budgeted Amounts 126 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, 2023 With Comparative Totals For December 31, 2022 Variance with Final Budget Positive 2022 Original Final Actual (Negative) Actual Revenues: General property taxes $209,414 $209,414 $210,381 $967 $208,746 Refunds and reimbursements 500 500 45 (455) 101 Investment income 500 500 36,569 36,069 (11,138) Total revenues 210,414 210,414 246,995 36,581 197,709 Expenditures: Housing and redevelopment: Current: Personal services 127,087 127,087 120,101 6,986 115,681 Contractual services 71,650 71,650 25,517 46,133 41,257 Total expenditures 198,737 198,737 145,618 53,119 156,938 Revenues over expenditures 11,677 11,677 101,377 (16,538) 40,771 Other financing sources (uses): Sale of city property - - - - 511,991 Net change in fund balance $11,677 $11,677 101,377 ($16,538) 552,762 Fund balance - January 1 740,048 187,286 Fund balance - December 31 $841,425 $740,048 2023 Budgeted Amounts 127 - This page intentionally left blank - 128 SUPPLEMENTARY FINANCIAL INFORMATION 129 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET STREET IMPROVEMENT DEBT SERVICE FUND December 31, 2023 With Comparative Totals For December 31, 2022 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 $ - $160,056 $207,638 $103,609 $141,400 $240,941 $147,394 Property taxes receivable: Delinquent - 369 359 162 241 231 228 Due from county - 508 1,029 519 472 514 371 Special assessments receivable - - 11,603 6,706 20,886 97,960 52,375 Total assets $ - $160,933 $220,629 $110,996 $162,999 $339,646 $200,368 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $75 $ - $ - $ - $ - Due to other governments - - - - - - - Deposits payable - - - - - - - Total liabilities - - 75 - - - - Deferred inflows of resources: Unavailable revenue - 369 11,962 6,869 21,127 98,191 52,603 Fund balance: Restricted - 160,564 208,592 104,127 141,872 241,455 147,765 Total liabilities, deferred inflows of resources, and fund balance (deficit)$ - $160,933 $220,629 $110,996 $162,999 $339,646 $200,368 130 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 2023 2022 $168,819 $290,206 $213,435 $266,241 $388,660 $85,738 $445,324 $468,931 $244,441 $3,572,833 $3,534,742 268 291 172 86 291 140 369 88 (183)3,112 18,112 728 696 383 909 667 391 860 757 890 9,694 8,622 66,378 107,318 24,292 135,906 182,967 - 184,546 256,019 228,530 1,375,486 1,606,663 $236,193 $398,511 $238,282 $403,142 $572,585 $86,269 $631,099 $725,795 $473,678 $4,961,125 $5,168,139 $ - $ - $ - $ - $ - $ - $2,147 $ - $ - $2,222 $8,411 - - - - - - - - - - 1,003 - 8,848 - - - - - - - 8,848 7,681 - 8,848 - - - - 2,147 - - 11,070 17,095 66,646 107,609 24,463 135,992 183,257 140 184,916 256,107 228,347 1,378,598 1,624,775 169,547 282,054 213,819 267,150 389,328 86,129 444,036 469,688 245,331 3,571,457 3,526,269 $236,193 $398,511 $238,282 $403,142 $572,585 $86,269 $631,099 $725,795 $473,678 $4,961,125 $5,168,139 Street Improvement Debt Service Fund 131 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, 2023 With Comparative Totals For December 31, 2022 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 $707 $103,497 $182,011 $108,650 $97,474 $106,662 $76,196 Special assessments 172 - 12,513 3,462 11,246 22,584 12,988 Investment income (loss)95 2,037 3,588 1,162 3,407 7,456 4,261 Total revenues 974 105,534 198,112 113,274 112,127 136,702 93,445 Expenditures: Public works: Professional service 3 - 252 252 302 335 297 Debt service: Principal 170,000 155,000 180,000 95,000 105,000 150,000 105,000 Interest 1,870 7,125 13,800 13,900 20,700 22,588 14,450 Paying agent fees 477 - 125 150 150 250 225 Total expenditures 172,350 162,125 194,177 109,302 126,152 173,173 119,972 Revenues over (under) expenditures (171,376) (56,591)3,935 3,972 (14,025) (36,471) (26,527) Other financing sources (uses): Bonds issued - - - - - - - Transfers in - 51,000 - 5,000 - - - Transfers out (2,892) - - - - - - Total other financing sources (uses)(2,892) 51,000 - 5,000 - - - Net change in fund balance (174,268) (5,591)3,935 8,972 (14,025) (36,471) (26,527) Fund balance - January 1 174,268 166,155 204,657 95,155 155,897 277,926 174,292 Fund balance - December 31 $0 $160,564 $208,592 $104,127 $141,872 $241,455 $147,765 132 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 2023 2022 $151,855 $144,682 $79,538 $192,736 $138,378 $81,630 $178,744 $158,687 $192,827 $1,994,274 $1,967,927 15,926 33,556 4,134 29,371 29,740 - 22,164 40,244 53,216 291,316 301,212 2,898 8,566 7,663 6,216 13,927 1,781 15,139 5,869 - 84,065 (52,739) 170,679 186,804 91,335 228,323 182,045 83,411 216,047 204,800 246,043 2,369,655 2,216,400 325 1,522 727 322 727 427 767 239 155 6,652 3,263 135,000 170,000 95,000 160,000 155,000 65,000 175,000 150,000 - 2,065,000 2,075,000 33,870 38,613 21,388 57,450 70,175 32,900 67,475 35,010 86,473 537,787 519,068 475 475 - 125 - - - 250 475 3,177 5,615 169,670 210,610 117,115 217,897 225,902 98,327 243,242 185,499 87,103 2,612,616 2,602,946 1,009 (23,806) (25,780) 10,426 (43,857) (14,916) (27,195) 19,301 158,940 (242,961) (386,546) - - - - - - - - - - 49,849 - - - - - - - 235,041 - 291,041 375,066 - - - - - - - - - (2,892) (533,917) - - - - - - - 235,041 - 288,149 (109,002) 1,009 (23,806) (25,780) 10,426 (43,857) (14,916) (27,195) 254,342 158,940 45,188 (495,548) 168,538 305,860 239,599 256,724 433,185 101,045 471,231 215,346 86,391 3,526,269 4,021,817 $169,547 $282,054 $213,819 $267,150 $389,328 $86,129 $444,036 $469,688 $245,331 $3,571,457 $3,526,269 Street Improvement Debt Service Fund 133 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 3 HRA TIF IMPROVEMENTS FUND December 31, 2023 With Comparative Totals For December 31, 2022 Chandler Apache Apache Lowry Place (Walmart) (Cub Foods) Grove Eliminations 2023 2022 Assets Cash and investments $230,616 $4,197,410 $472,975 $12,994 $ - $4,913,995 $5,067,037 Property taxes receivable: Delinquent - 10,876 - - - 10,876 8,060 Due from county - 22,245 - 4,473 - 26,718 1,265 Prepaid expenses - 554 - - - 554 552 Due from other governmental units - 11,800 - - - 11,800 - Interfund loan receivable 646,850 - 722,566 - (1,369,416) - - Land held for resale - 409,188 - - - 409,188 378,008 Total assets $877,466 $4,652,073 $1,195,541 $17,467 ($1,369,416) $5,373,131 $5,454,922 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $550,568 $ - $140 $ - $550,708 $2,046,127 Due to other governments - 3,292 - - - 3,292 2,826 Deposits payable - 70,757 - - - 70,757 70,758 Interfund loans payable - 2,328,742 - - (1,369,416) 959,326 959,326 Total liabilities - 2,953,359 - 140 (1,369,416) 1,584,083 3,079,037 Deferred inflows of resources: Unavailable revenue - 10,876 - - - 10,876 8,060 Fund balance: Nonspendable - 554 - - - 554 552 Restricted 877,466 1,687,284 1,195,541 17,327 - 3,777,618 2,367,273 Total fund balance 877,466 1,687,838 1,195,541 17,327 - 3,778,172 2,367,825 Total liabilities, deferred inflows of resources, and fund balance $877,466 $4,652,073 $1,195,541 $17,467 ($1,369,416) $5,373,131 $5,454,922 Improvements Total HRA TIF Tax Increment Financing Districts 134 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, 2023 With Comparative Totals For December 31, 2022 Chandler Apache Apache Lowry Place (Walmart) (Cub Foods) Grove 2023 2022 Revenues: Tax increment collections $ - $3,052,398 $ - $36,731 $3,089,129 $2,273,952 Investment income (loss) 35,810 137,162 50,233 - 223,205 (31,356) Refunds and reimbursements - - - - - 2,320 Total revenues 35,810 3,189,560 50,233 36,731 3,312,334 2,244,916 Expenditures: General government - 27,588 - 133 27,721 27,916 Housing and redevelopment 3,957 - 3,958 2,801 10,716 201,842 Debt service: Interest - 93,150 - - 93,150 93,150 Construction/acquisition costs - - - - - 409 Developer incentives - 1,107,516 - 16,470 1,123,986 1,046,435 Total expenditures 3,957 1,228,254 3,958 19,404 1,255,573 1,369,752 Revenues over expenditures 31,853 1,961,306 46,275 17,327 2,056,761 875,164 Other financing sources (uses): Transfers out (3,000) (637,414) (6,000) - (646,414) (639,213) Net change in fund balance 28,853 1,323,892 40,275 17,327 1,410,347 235,951 Fund balance - January 1 848,613 363,946 1,155,266 - 2,367,825 2,131,874 Fund balance - December 31 $877,466 $1,687,838 $1,195,541 $17,327 $3,778,172 $2,367,825 Improvements Total HRA TIF Tax Increment Financing Districts 135 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 5 STREET IMPROVEMENT PROJECT FUND December 31, 2023 With Comparative Totals For December 31, 2022 2021 Street Improvement Project Fund 2022 Street Improvement Project Fund 2024 Street Improvement Project Fund 2023 2022 Assets Cash and investments $ - $279,081 ($76,125) $202,956 $587,960 Due from other governmental units - - - - 55,466 Special assessments receivable - 36,610 - 36,610 56,789 Total assets $ - $315,691 ($76,125) $239,566 $700,215 Liabilities and Fund Balance Liabilities: Accounts payable $ - $386 $22,841 $23,227 $572 Contracts payable - 25,397 - 25,397 118,341 Total liabilities - 25,783 22,841 48,624 118,913 Deferred inflows of resources: Unavailable revenue - 36,610 - 36,610 56,789 Fund balance (deficit): Restricted - 113,111 - 113,111 282,711 Assigned - 140,187 - 140,187 241,802 Unassigned - - (98,966) (98,966) - Total fund balance (deficit) - 253,298 (98,966) 154,332 524,513 Total liabilities and fund balance $0 $315,691 ($76,125) $239,566 $700,215 Total Street Improvement Project Fund 136 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, 2023 With Comparative Totals For December 31, 2022 2021 Street Improvement Project Fund 2022 Street Improvement Project Fund 2024 Street Improvement Project Fund 2023 2022 Revenues: Intergovernmental $ - $ - $ - $ - $30,466 Special assessments - 20,179 - 20,179 151,880 Investment income (loss) 9,895 22,118 - 32,013 (10,410) Miscellaneous - - - - 13,027 Total revenues 9,895 42,297 - 52,192 184,963 Expenditures: Debt service: Issuance costs - - - - 78,957 Construction/acquisition costs 738 87,628 98,966 187,332 2,063,463 Total expenditures 738 87,628 98,966 187,332 2,142,420 Revenues over (under) expenditures 9,157 (45,331) (98,966) (135,140) (1,957,457) Other financing sources (uses): Bonds issued - - - - 2,335,151 Premium on bonds issued - - - - 15,093 Transfers in - - - - 170,223 Transfers out (235,041) - - (235,041) (280,125) Total other financing sources (uses) (235,041) - - (235,041) 2,240,342 Net change in fund balance (225,884) (45,331) (98,966) (370,181) 282,885 Fund balance - January 1 225,884 298,629 - 524,513 241,628 Fund balance - December 31 $ - $253,298 ($98,966) $154,332 $524,513 Total Street Improvement Project Fund 137 CITY OF ST. ANTHONY, MINNESOTA BALANCE SHEET Exhibit 7 HRA TIF DEBT SERVICE FUND December 31, 2023 With Comparative Totals For December 31, 2022 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2023 2022 Assets Cash and investments $2,293 $2,538 $4,831 $4,960 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $ - $950 Fund balance: Restricted 2,293 2,538 4,831 4,010 Total liabilities and fund balance $2,293 $2,538 $4,831 $4,960 HRA TIF Debt Service Fund Totals 138 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, 2023 With Comparative Totals For December 31, 2022 2015B G.O Tax Increment Refunding Bonds 2014B G.O Tax Increment Refunding Bonds 2023 2022 Revenues $132 $142 $274 ($334) Expenditures: Debt service: Principal 270,000 225,000 495,000 475,000 Interest 67,613 66,800 134,413 146,213 Paying agent fees 727 727 1,454 1,295 Total expenditures 338,340 292,527 630,867 622,508 Revenues over (under) expenditures (338,208) (292,385) (630,593) (622,842) Other financing sources (uses): Transfers in 338,613 292,801 631,414 624,213 Net change in fund balance 405 416 821 1,371 Fund balance - January 1 1,888 2,122 4,010 2,639 Fund balance - December 31 $2,293 $2,538 $4,831 $4,010 HRA TIF Debt Service Fund Totals 139 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, 2023 With Comparative Totals For December 31, 2022 Water/Water Plant Sewer 2023 2022 Operating revenues: Charges for services $1,513,076 $1,440,378 $2,953,454 $2,678,069 Total operating revenues 1,513,076 1,440,378 2,953,454 2,678,069 Operating expenses: Personal services 627,075 336,911 963,986 950,052 Supplies 151,400 12,541 163,941 144,265 Contracted services and other 125,852 63,223 189,075 210,714 Treatment charges (MCES)-760,026 760,026 711,020 Utilities/insurance/other 202,254 32,462 234,716 229,621 Total operating expenses, excluding depreciation 1,106,581 1,205,163 2,311,744 2,245,672 Depreciation 598,332 90,120 688,452 650,240 Total operating expenses 1,771,113 1,229,083 3,000,196 2,895,912 Operating income (loss)($258,037) $211,295 (46,742) (217,843) Nonoperating revenues (expenses): Investment income 124,189 (51,770) Interest expense 928 (2,300) Miscellaneous income 5,796 22,482 Total nonoperating revenues (expenses)130,913 (31,588) Income (loss) before capital contributions and transfers 84,171 (249,431) Capital contributions 1,044,885 845,081 Change in net position 1,129,056 595,650 Net position - January 1 18,033,349 17,437,699 Net position - December 31 $19,162,405 $18,033,349 Operations Totals 140 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. 141 CITY OF ST. ANTHONY, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 Governmental activities: Net invested in capital assets $14,953,582 $10,604,121 $10,024,670 $10,274,946 Restricted for: Debt service 5,717,140 6,147,172 6,282,913 6,537,390 Redevelopment activity - 12,411 - - Pensions - - 197,073 219,561 Public safety 23,471 19,283 25,634 23,865 Unrestricted (9,513,189) (10,391,885) 1,689,042 (5,330,379) Total governmental activities net position $11,181,004 $6,391,102 $18,219,332 $11,725,383 Business-type activities: Net invested in capital assets $6,036,192 $12,143,158 $14,011,168 $22,151,578 Unrestricted 5,570,360 5,649,685 3,171,781 3,529,653 Total business-type activities net position $11,606,552 $17,792,843 $17,182,949 $25,681,231 Primary government: Net invested in capital assets $20,989,774 $22,747,279 $24,035,838 $32,426,524 Restricted for: Debt service 5,717,140 6,147,172 6,282,913 6,537,390 Redevelopment activity - 12,411 - - Pensions - - 197,073 219,561 Public safety 23,471 19,283 25,634 23,865 Unrestricted (3,942,829) (4,742,200) 4,860,823 (1,800,726) Total primary government net position $22,787,556 $24,183,945 $35,402,281 $37,406,614 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 142 Table 1 2018 2019 2020 2021 2022 2023 $10,422,047 $9,746,635 $10,349,363 $10,068,970 $10,898,178 $11,876,010 7,097,594 6,339,750 6,406,488 6,255,605 5,612,586 5,446,428 - - - - - 113,111 200,075 177,502 247,024 360,702 421,414 397,881 31,141 39,505 46,912 39,084 69,190 460,546 (5,776,551)(4,223,098)(776,593)2,413,816 3,037,144 4,228,339 $11,974,306 $12,080,294 $16,273,194 $19,138,177 $20,038,512 $22,522,315 $23,179,624 $24,525,702 $23,721,266 $24,563,962 $24,834,573 $25,313,018 3,483,257 3,569,879 4,072,013 4,738,737 5,136,864 6,083,552 $26,662,881 $28,095,581 $27,793,279 $29,302,699 $29,971,437 $31,396,570 $33,601,671 $34,272,337 $34,070,629 $34,632,932 $35,732,751 $37,189,028 7,097,594 6,339,750 6,406,488 6,255,605 5,612,586 5,446,428 - - - - - 113,111 200,075 177,502 247,024 360,702 421,414 397,881 31,141 39,505 46,912 39,084 69,190 460,546 (2,293,294)(653,219)3,295,420 7,152,553 8,174,008 10,311,891 $38,637,187 $40,175,875 $44,066,473 $48,440,876 $50,009,949 $53,918,885 Fiscal Year 143 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 Expenses Governmental activities: General government $1,116,100 $1,342,360 $1,319,451 $1,337,698 Public safety 4,644,185 4,757,637 7,053,595 6,018,470 Public works 2,711,291 2,741,411 4,134,783 2,988,291 Parks and recreation 608,966 592,892 472,436 472,700 Services to other cities - - - - Nondepartmental - - - - Housing and redevelopment 575,738 596,444 793,834 787,775 Interest on long-term debt 1,044,635 845,856 794,584 738,914 Total governmental activities expenses 10,700,915 10,876,600 14,568,683 12,343,848 Business-type activities: Liquor 5,879,240 5,728,876 5,676,892 5,591,683 Water 845,396 869,446 1,083,240 1,176,102 Water Filtration and Purification 239,074 185,964 - - Sewer 1,069,876 1,051,261 1,048,937 1,144,273 Stormwater - - 191,655 244,135 Total business-type activities expenses 8,033,586 7,835,547 8,000,724 8,156,193 Total primary government expenses $18,734,501 $18,712,147 $22,569,407 $20,500,041 Program revenues Governmental activities: Charges for services: Services to other cities $ - $ - $ - $ - Other activities 2,374,306 2,414,912 2,212,526 2,281,654 Operating grants and contributions 499,538 499,126 10,969,360 630,316 Capital grants and contributions 1,070,975 1,367,745 1,643,911 1,604,844 Total governmental activities program revenues 3,944,819 4,281,783 14,825,797 4,516,814 Business-type activities: Charges for services: Liquor 6,078,039 5,893,916 5,822,783 5,714,000 Water 879,007 900,412 925,577 969,638 Water filtration and purification - 45,655 - - Sewer 921,242 953,568 1,012,979 1,122,738 Stormwater - - 192,748 197,242 Operating grants and contributions - - 130,932 - Capital grants and contributions - - 1,166,747 569,716 Total business-type activities program revenues 7,878,288 7,793,551 9,251,766 8,573,334 Total primary government program revenues $11,823,107 $12,075,334 $24,077,563 $13,090,148 Fiscal Year 144 Table 2 Page 1 of 2 2018 2019 2020 2021 2022 2023 $1,234,274 $1,587,360 $1,374,449 $1,349,129 $1,380,846 $1,558,834 4,886,105 4,789,232 5,125,951 4,840,277 5,853,162 6,591,967 3,005,637 2,960,916 2,915,895 2,947,640 3,135,972 2,897,194 488,132 536,095 438,126 646,257 546,537 530,990 - - - - - - - - - - 45,609 88,013 1,189,659 975,246 1,276,274 1,217,386 1,412,758 1,284,871 795,625 803,042 680,448 695,343 697,886 637,825 11,599,432 11,651,891 11,811,143 11,696,032 13,072,770 13,589,694 5,617,377 5,903,275 6,605,500 6,765,260 6,601,179 6,728,047 1,573,857 1,617,354 1,554,879 1,377,483 1,632,017 1,783,913 - - - - - - 1,243,591 1,253,102 1,202,141 1,240,813 1,305,957 1,237,453 249,911 308,786 367,578 337,796 419,510 599,043 8,684,736 9,082,517 9,730,098 9,721,352 9,958,663 10,348,456 $20,284,168 $20,734,408 $21,541,241 $21,417,384 $23,031,433 $23,938,150 $ - $ - $ - $ - $ - $ - 1,602,792 1,847,264 1,722,036 3,041,161 1,981,023 2,190,191 560,924 494,389 1,211,012 741,397 610,856 926,803 817,077 633,142 1,862,319 624,283 633,832 75,165 2,980,793 2,974,795 4,795,367 4,406,841 3,225,711 3,192,159 5,867,452 6,160,868 7,025,468 7,260,590 7,041,690 7,065,954 1,010,722 999,082 1,133,458 1,311,611 1,362,580 1,513,076 - - - - - - 1,162,167 1,211,209 1,224,881 1,314,285 1,337,971 1,440,378 201,729 206,700 211,360 212,308 219,668 229,089 - - - - - - 126,991 - - - - - 8,369,061 8,577,859 9,595,167 10,098,794 9,961,909 10,248,497 $11,349,854 $11,552,654 $14,390,534 $14,505,635 $13,187,620 $13,440,656 Fiscal Year 145 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2014 2015 2016 2017 Net (expense) revenue: Governmental activities ($6,756,096) ($6,594,817)$257,114 ($7,827,034) Business-type activities (155,298)(41,996)1,251,042 417,141 Total primary government net (expense) revenue (6,911,394)(6,636,813)1,508,156 (7,409,893) General revenues and other changes in net position: Governmental activities: Taxes: Property taxes $6,030,558 $5,893,900 $6,160,156 $6,577,570 Tax increment collections 1,131,896 1,121,627 1,455,090 1,530,093 Grants and contributions 461,964 516,015 530,110 535,422 Unrestricted investment earnings 189,441 146,023 254,396 234,572 Other 104,113 172,913 1,207,375 407,269 Gain on sale of capital assets 33,204 7,653 7,151 34,775 Transfers (17,982)(6,053,216)1,956,838 (7,986,616) Total governmental activities 7,933,194 1,804,915 11,571,116 1,333,085 Business-type activities: Unrestricted investment earnings 111,512 86,407 31,097 21,812 Grants and contributions - - - - Other 61,444 88,664 64,805 72,713 Transfers 17,982 6,053,216 (1,956,838)7,986,616 Total business-type activities 190,938 6,228,287 (1,860,936)8,081,141 Total primary government $8,124,132 $8,033,202 $9,710,180 $9,414,226 Change in net position: Governmental activities $1,177,098 ($4,789,902)$11,828,230 ($6,493,949) Business-type activities 35,640 6,186,291 (609,894)8,498,282 Total primary government $1,212,738 $1,396,389 $11,218,336 $2,004,333 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 146 Table 2 Page 2 of 2 2018 2019 2020 2021 2022 2023 ($8,618,639)($8,677,096)($7,015,776)($7,289,191)($9,847,059)($10,397,535) (315,675)(504,658)(134,931)377,442 3,246 (99,959) (8,934,314)(9,181,754)(7,150,707)(6,911,749)(9,843,813)(10,497,494) $7,128,703 $7,477,523 $7,946,178 $8,083,595 $8,462,357 $8,835,497 1,870,589 2,060,375 2,077,137 2,470,757 2,272,455 3,091,945 559,437 561,062 613,302 640,386 1,002,881 1,147,322 286,519 492,834 318,653 47,420 (295,627)896,704 225,774 15,468 40,768 49,285 55,291 13,284 48,529 - - - 38,516 (1,251,989)(1,824,178)212,638 (1,137,269)(749,963)(1,141,930) 8,867,562 8,783,084 11,208,676 10,154,174 10,747,394 12,881,338 32,771 83,886 45,267 (11,911)(85,871)198,617 - - - - - 158,891 12,565 29,294 - 6,620 1,400 25,654 1,251,989 1,824,178 (212,638)1,137,269 749,963 1,141,930 1,297,325 1,937,358 (167,371)1,131,978 665,492 1,525,092 $10,164,887 $10,720,442 $11,041,305 $11,286,152 $11,412,886 $14,406,430 $248,923 $105,988 $4,192,900 $2,864,983 $900,335 $2,483,803 981,650 1,432,700 (302,302)1,509,420 668,738 1,425,133 $1,230,573 $1,538,688 $3,890,598 $4,374,403 $1,569,073 $3,908,936 Fiscal Year 147 CITY OF ST. ANTHONY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2014 2015 2016 2017 General Fund: Nonspendable $91,136 $107,412 $115,482 $119,651 Restricted - - - - Unassigned 2,384,345 2,338,600 2,204,185 2,280,463 Total general fund $2,475,481 $2,446,012 $2,319,667 $2,400,114 All other governmental funds: Nonspendable $1,631 $2,157 $57,188 $15,339 Restricted 7,627,714 6,491,789 6,907,253 7,002,918 Committed 78,180 94,107 105,503 125,069 Assigned 1,318,583 578,258 13,148,229 6,568,756 Unassigned (2,407,745) (2,062,163) (1,693,729) (1,452,918) Total all other governmental funds $6,618,363 $5,104,148 $18,524,444 $12,259,164 Fiscal Year 148 Table 3 2018 2019 2020 2021 2022 2023 $126,304 $101,105 $159,782 $146,580 $164,687 $195,110 - - - - - 401,501 2,381,460 2,489,685 3,238,208 3,730,206 3,840,170 4,460,649 $2,507,764 $2,590,790 $3,397,990 $3,876,786 $4,004,857 $5,057,260 $97,687 $1,451 $2,969 $35,953 $4,650 $4,309 7,466,883 7,176,386 7,955,365 7,396,858 7,102,437 8,290,855 124,355 102,948 201,822 337,173 895,109 1,010,290 5,374,785 5,502,668 6,513,862 6,632,453 6,715,192 6,061,683 (1,409,874) (892,137) (524,166) - - (98,966) $11,653,836 $11,891,316 $14,149,852 $14,402,437 $14,717,388 $15,268,171 Fiscal Year 149 CITY OF ST. ANTHONY, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2014 2015 2016 2017 Revenues: General property taxes $6,053,119 $5,897,070 $6,161,036 $6,633,308 Tax increment collections 1,117,824 1,106,582 1,476,275 1,541,874 Licenses, fees and permits 351,102 296,465 304,079 358,230 Intergovernmental 1,464,479 1,644,481 2,283,016 1,925,460 Special assessments 491,988 621,931 570,549 589,332 Charges for services 1,787,611 1,879,520 1,701,246 1,732,288 Cable franchise fees 109,009 108,104 113,672 115,079 Fines and forfeits 126,584 130,823 93,529 76,057 Investment income 189,216 145,447 252,830 233,668 Contributions and donations 45,640 15,903 4,120 102,340 Miscellaneous 104,113 172,913 11,637,694 407,269 Total revenues 11,840,685 12,019,239 24,598,046 13,714,905 Expenditures: Current: General government 926,501 948,089 1,066,236 1,119,746 Public safety 4,357,563 4,352,048 5,164,270 5,346,521 Public works 1,001,378 1,043,791 1,051,747 1,034,427 Parks and recreation 463,057 446,684 409,979 406,748 Services to other cities - - - - Nondepartmental 59,265 40,139 38,421 45,095 Housing and redevelopment 143,863 119,294 156,312 132,437 Capital outlay 386,652 398,844 431,511 Debt service: Principal retirement 7,785,000 3,750,000 2,620,000 5,815,000 Interest 1,139,216 1,020,262 820,607 846,526 Paying agent fees 7,853 10,386 14,793 5,760 Professional service 17,104 16,971 16,339 6,677 Issuance costs 185,800 142,682 80,294 104,887 Construction/acquisition costs 2,959,264 3,750,269 4,867,870 9,908,037 Developer incentives 431,875 475,886 627,639 649,910 Total expenditures 19,902,361 16,503,153 17,333,351 25,853,282 Revenues over (under) expenditures (8,061,676) (4,483,914) 7,264,695 (12,138,377) Other financing sources (uses): Bonds issued 2,070,000 2,580,000 2,900,000 3,120,000 Refunding bonds issued 4,970,000 4,310,000 - 2,190,000 Redemption of refunded bonds - - - - Payment to refunded bond escrow agent - (4,332,935) - - Premium on debt issued 158,044 188,693 69,485 302,540 Sale of capital assets 13,390 25,860 15,186 28,244 Transfers in 1,908,166 2,069,259 4,003,953 312,760 Transfers out (1,514,667) (1,900,647) (959,368) - Total other financing sources(uses) 7,604,933 2,940,230 6,029,256 5,953,544 Net change in fund balance ($456,743) ($1,543,684) $13,293,951 ($6,184,833) Debt service as a percentage of noncapital expenditures 54.2% 36.5% 25.7% 41.5% Debt service as percentage of total expenditures 44.8% 28.9% 19.8% 25.8% Fiscal Year 150 Table 4 2018 2019 2020 2021 2022 2023 $7,107,947 $7,484,962 $7,932,488 $8,089,661 $8,438,461 $8,894,855 1,861,251 2,093,697 2,076,472 2,474,570 2,273,952 3,089,129 295,955 268,565 318,232 1,116,447 530,924 687,640 1,136,456 1,595,355 3,181,190 1,066,555 1,471,972 2,025,247 658,532 463,256 377,937 520,805 460,873 319,248 1,097,940 1,153,385 1,186,119 1,679,720 1,221,419 1,294,910 101,612 97,200 95,517 103,768 96,099 89,882 85,538 96,292 87,539 120,694 118,558 110,989 284,452 485,833 313,955 48,456 (288,249) 880,336 16,046 1,550 1,050 263,635 6,174 51,844 217,071 253,239 75,397 69,817 69,314 20,054 12,862,800 13,993,334 15,645,896 15,554,128 14,399,497 17,464,134 1,048,214 1,327,603 1,225,447 1,188,512 1,226,942 1,408,047 4,861,358 4,698,695 5,169,275 5,437,381 5,312,282 5,906,255 1,208,232 1,071,071 944,755 878,009 971,898 1,032,238 431,091 474,430 403,034 635,920 516,460 503,657 - - - 61,262 78,233 28,475 33,949 45,609 88,013 160,255 169,010 499,439 250,492 358,780 156,334 1,037,417 165,581 533,874 778,766 1,669,930 1,668,764 2,895,000 4,910,000 2,900,000 3,155,000 3,170,000 3,200,000 887,798 897,980 842,600 858,152 815,417 807,451 29,308 11,822 10,995 6,655 9,773 6,087 2,823 - - - - - 42,563 71,382 72,756 86,180 77,662 - 2,720,619 1,970,296 2,485,227 2,943,077 2,063,945 187,332 1,029,217 804,391 782,009 975,485 1,046,435 1,123,986 16,415,157 16,650,494 15,897,886 17,227,578 17,285,133 16,088,164 (3,552,357) (2,657,160) (251,990) (1,673,450) (2,885,636) 1,375,970 2,610,000 1,145,000 3,000,000 2,085,000 2,385,000 - - 1,335,000 - 885,000 - - - - - - - - - - - (885,000) - - 92,831 225,916 154,026 137,040 15,093 - 64,754 23,050 - 19,091 608,497 38,516 287,094 335,000 250,000 250,000 436,903 1,722,122 - (86,300) (86,300) (86,300) (116,835) (1,533,422) 3,054,679 2,977,666 3,317,726 2,404,831 3,328,658 227,216 ($497,678) $320,506 $3,065,736 $731,381 $443,022 $1,603,186 29.8% 0.0% 29.1% 29.7% 29.4% 28.2% 23.0% 34.9% 23.5% 5.0% 4.8% 5.1% Fiscal Year 151 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 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% 2023 12,566,717 2,478,695 163,618 15,209,030 (1,539,918) 13,669,112 63.73% 1,361,448,600 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. 152 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 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% 2023 63.73%27.77%8.29%34.54%134.33% Source: 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* 153 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% 311,073 2 3.63% L/L Equinox Associates LLC 420,164 2 3.06% 178,030 5 2.08% Inland Silver Lake Village LLC 420,074 3 3.06% 720,064 1 8.29% Autumn Woods Partners LP 306,875 4 2.23% 185,275 4 2.16% 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% 75,799 9 - St. Anthony Shopping Center 136,250 9 0.99% 99,690 7 1.11% Chandler Place LP 133,659 10 0.97% 101,446 6 1.18% St. Anthony Nursing Home LP - - 78,364 8 0.91% Xcel Energy - - 194,886 3 2.27% Highcrest Manor LP - - 52,395 10 0.61% Total $2,901,393 21.11% $1,997,022 22.24% Total All Property $13,744,262 $8,573,245 Source: Official Statements for the City of St. Anthony Note: 2022 information was not updated to 2023, source unavailable for 2023 20132023 154 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 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%27,498 6,001,747 99.19% 2017 6,450,785 6,400,683 99.22%7,264 6,407,947 99.34% 2018 6,850,011 6,801,704 99.29%3,875 6,805,579 99.35% 2019 7,311,453 7,226,085 98.83%15,655 7,241,740 99.05% 2020 7,609,458 7,611,336 100.02%19,959 7,631,295 100.29% 2021 7,865,595 7,836,798 99.63%(12,146) 7,824,652 99.48% 2022 8,243,092 8,161,743 99.01%15,555 8,177,298 99.20% 2023 8,687,425 8,684,218 99.96% Sources: St. Anthony Finance Department Fiscal Year of the Levy Collected Within The Total Collections to Date Not Available 155 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 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 2023 17,095,000 160,000 4,375,000 395,000 - 1,475,000 23,500,000 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 156 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* 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 5.21%2,980 171.92% 155,000 155,000 65 23,655,000 Not Available Business-Type Activities 157 - This page intentionally left blank - 158 CITY OF ST. ANTHONY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 10 As of December 31, 2023 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 Note: source unavailable for 2023, reused 2022 figures (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. 159 CITY OF ST. ANTHONY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years Market value Debt limit percentage Debt limit Debt applicable to limit: General obligation bonds Legal debt margin 2014 2015 2016 2017 Debt limit $20,226,682 $21,500,127 $24,651,217 $26,027,076 Total net debt applicable to limit 4,031,063 3,615,981 3,176,798 3,244,392 Legal debt margin $16,195,619 $17,884,147 $21,474,419 $22,782,684 Total net debt applicable to the limit as a percentage of debt limit 19.93% 16.82% 12.89% 12.47% Source: Market Value - Hennepin County and Ramsey County, Minnesota Assessor's Offices Legal Debt Margin Calculation for Fiscal Year 2023 160 Table 11 $1,361,380,000 3% 40,841,400 3,780,000 $37,061,400 2018 2019 2020 2021 2022 2023 $27,507,354 $30,710,616 $32,845,230 $35,282,829 $36,815,133 $40,841,400 2,804,561 3,640,000 6,095,000 5,460,000 4,645,000 3,780,000 $24,702,793 $27,070,616 $26,750,230 $29,822,829 $32,170,133 $37,061,400 10.20% 11.85% 18.56% 15.47% 12.62% 9.26% Legal Debt Margin Calculation for Fiscal Year 2023 161 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 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 - - - - - - 2023 - - - - - - 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 162 Table 12 Page 1 of 2 Utility Less Net Service Operating Available Charges Expenses Revenue Principal Interest Coverage 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% 2,953,455 2,311,744 641,367 145,000 4,550 429% Water and Sewer Revenue Bonds Debt Service 163 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 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 2,205,000 540,465 21% 1,476,275 415,000 156,058 259% 589,332 5,430,000 557,511 10% 1,541,873 385,000 190,038 268% 658,532 2,490,000 607,109 21% 1,861,251 405,000 182,238 317% 463,256 4,490,000 629,069 9% 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% 321,491 2,650,000 536,038 10% 3,089,129 495,000 134,413 491% Debt Service Improvement Bonds Debt Service Tax Increment Bonds 164 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) 2013 8,516 326,729,114 38,367 4.70% 2014 8,965 322,264,855 35,947 3.90% 2015 9,234 333,684,413 36,136 3.40% 2016 9,277 338,053,880 36,440 3.30% 2017 9,200 362,710,000 39,425 3.10% 2018 9,067 380,152,109 41,927 2.60% 2019 9,020 372,002,840 41,242 2.80% 2020 9,257 428,136,250 46,250 6.60% 2021 9,175 475,576,950 51,834 3.80% 2022 9,060 512,460,780 56,563 2.40% 2023 Not Available 2.60% 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 165 - This page intentionally left blank - 166 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 20132023 167 CITY OF ST. ANTHONY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2014 2015 2016 2017 General government: Administration 2.00 2.00 2.50 2.60 Finance 4.25 4.50 4.00 4.00 Police: Officers 23.00 23.00 23.00 20.00 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 6.00 Market Place - part-time 6.00 4.50 4.50 4.50 Silver Lake Village - part-time 6.00 4.50 4.00 4.00 Total 87.75 85.00 85.00 82.60 Source: City of St. Anthony Full-Time Equivalent Employees as of December 31, 2022 168 Table 15 2018 2019 2020 2021 2022 2023 2.60 2.60 2.85 3.10 3.10 3.10 4.00 4.00 4.00 4.50 5.00 5.00 20.00 20.00 20.00 20.00 20.00 20.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 12.00 12.00 12.00 12.00 12.00 12.00 7.00 7.00 7.00 7.00 7.00 7.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 6.00 6.00 6.00 6.00 6.00 6.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 6.00 6.00 6.00 6.00 6.00 6.00 4.65 4.65 4.65 4.65 4.65 4.65 4.25 4.25 4.25 4.25 4.25 4.25 82.50 82.50 82.75 83.50 84.00 84.00 Full-Time Equivalent Employees as of December 31, 2022 169 CITY OF ST. ANTHONY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2014 2015 2016 2017 Police: * Moving violations 2,017 2,213 1,488 846 Non-moving violations 321 197 192 65 DWI arrests 39 23 15 21 Traffic arrests 633 661 469 249 Gross and misdemeanor arrests 130 77 50 63 Felony arrests 53 44 51 20 Warrant arrests 25 24 13 20 Fire: Emergency responses 1,363 1,425 1,534 1,621 Medical responses 1,012 1,062 1,113 1,166 Fires 26 26 14 17 Inspections 256 238 173 216 Building inspection: Permits issued 288 533 342 292 Other public works: Street reconstruction/resurfacing (miles) 0.5 1.5 0.5 0.6 Potholes filled (tons) 34 66 23 18 Water: New connections 28 7 1 29 Water mains breaks 8427 Average daily consumption (thousands of gallons) 763 770 715 731 Peak daily consumption (thousands of gallons) 1,635 1,571 1,153 1,453 * Police statistics are for St Anthony only Source: City of St. Anthony Fiscal Year 170 Table 16 2018 2019 2020 2021 2022 2023 1,376 1,944 2,233 1,740 2,061 2,507 394 376 177 246 398 491 39 30 31 29 26 39 292 371 412 305 393 381 86 108 126 154 163 160 59 36 25 30 38 41 22 41 43 40 31 50 1,521 1,538 1,553 1,661 1,668 1,812 1,116 1,140 1,155 1,182 1,149 1,280 16 17 12 23 29 36 210 247 68 204 195 144 261 255 310 322 307 371 0.5 1.2 0.3 1.6 1.3 - 64 53 65 17 100 69 30 32816 4 8 6 346 3 759 702 740 811 777 804 1,764 1,642 1,490 1,750 1,634 1,992 Fiscal Year 171 CITY OF ST. ANTHONY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2014 2015 2016 2017 Police: Stations 1111 Fleet units 14 14 14 13 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 11.4 12.3 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 287 287 288 288 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 1222 Stormwater retention ponds 6666 Storm sewers (miles) 15.0 15.0 15.0 15.0 Source: City of St. Anthony Fiscal Year 172 Table 17 2018 2019 2020 2021 2022 2023 111111 13 13 13 13 13 13 111111 888888 24.7 24.7 24.7 24.7 24.7 24.7 12.3 12.6 12.6 18.3 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 32.0 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 173 - This page intentionally left blank - 174